WASHINGTON, D.C. (Feb. 2, 2021) – The National Federation of Independent Business (NFIB) sent a letter of opposition to the U.S. House of Representatives and U.S. Senate opposing the Raise the Wage Act of 2021. The legislation would increase the federal minimum wage by more than 30% shortly after enactment and more than double the federal minimum wage to $15 per hour in four years. NFIB previously opposed the Raise the Wage Act of 2019.
“The Raise the Wage Act of 2021 would harm the fragile small business economy and eliminate hundreds of thousands of small business jobs,” said Kevin Kuhlman, NFIB’s Vice President of Federal Government Relations. “Passing this legislation would be a devastating blow at a time when small businesses anticipate problematic economic conditions ahead.”
NFIB has surveyed the impact of the COVID-19 pandemic on small businesses and many are still struggling to survive as economic conditions and business restrictions remain a serious challenge. One-in-four (25%) of small business owners report that they will have to close their doors if economic conditions do not improve soon.
The non-partisan Congressional Budget Office confirms that the previous version of this legislation will damage the small business economy, estimating that 1.3 million workers will become jobless and total real income will be reduced by $9 billion by 2025.