Highlights Need for Greater Understanding of Impact of Minimum Wage Increase
WASHINGTON, D.C. – Today, House Budget Committee Republican Leader Jason Smith (MO-08) sent a letter to Director Phillip Swagel of the Congressional Budget Office (CBO) requesting his agency do a thorough analysis of any minimum wage increase proposals they are asked to evaluate.
“As the country continues to face economic and labor challenges due to almost a year of enduring the COVID-19 pandemic and the glut of state lockdowns that have ravished our economy, it is important that policymakers have a thorough understanding of the impacts of this policy, which is currently being pursued by the new Administration and congressional Democrats. On January 26th, 2021, House Democrats introduced H.R. 603 Raise the Wage Act of 2021, a similar version of H.R. 582 Raise the Wage Act from the 116th Congress. This proposal would have far-reaching economic effects, and it is vital for policymakers to have a detailed understanding of the impacts this policy would have on working-class Americans and the broader economy,” wrote House Budget Committee Republican Leader Smith.
The letter calls on CBO to include information in its analyses and estimates on:
- the amount of lost jobs.
- the additional burden on businesses.
- the higher prices of goods and services placed on consumers.
- the impact on disabled workers.
House Budget Committee Republican Leader Smith concluded, “it is critical that a thorough analysis be done before enacting certain policies, such as increasing the minimum wage, so that Americans, particularly the working-class, seniors, and the most vulnerable, can be aware of how these policies may impact their livelihood and the ongoing economic recovery.”
Read the full letter here.