Chairman Scott Reacts to New CBO Minimum Wage Estimate
WASHINGTON –Chairman Robert C. “Bobby” Scott (VA-03) released the following statement in response to a new report from the Congressional Budget Office (CBO) on the effect of gradually raising the minimum wage to $15 an hour by 2025.
“The CBO’s report strengthens the case for gradually raising the minimum wage through the COVID-19 rescue package. This nonpartisan report shows that increasing the minimum wage will act as a direct and targeted stimulus for struggling workers and their families. At a time when many of our essential workers are still not being paid enough to provide for themselves and their families, we must do everything in our power give these workers a long overdue raise.
“The purpose of American Rescue Plan is to provide relief to hardworking Americans and help build back a better economy. According to the CBO’s report, gradually raising the minimum wage would achieve both of those goals. It reduces income inequality, increases pay for 27 million workers, and pulls nearly 1 million Americans out of poverty.”
According to the CBO report, gradually raising the minimum wage to $15 an hour by 2025 would:
- Increase pay for 27 million low-wage workers and lift nearly 1 million people out of poverty;
- Reduce taxpayer spending on multiple social safety net programs, including nutrition assistance programs and refundable tax credits;
- Put $333 billion in the pockets of affected workers and their families, which studies have shown would accelerate our economic recovery; and
- Have a significant impact on the federal budget, increasing deficits by $54 billion over ten years.
Democratic Press Office, 202-226-0853
Next Article Previous Article