But will workers really see an increase?
On Thursday, July 18, the House of Representatives passed the Raise the Wage Act bill to increase the federal minimum wage from the current $7.25 per hour.
If implemented, the wage will gradually increase the U.S. pay floor to $15 per hour by 2025.
Also, the lower wage that’s paid out to tipped workers (like restaurant servers) will be phased out, and there will no longer be subminimum wages paid out to persons with disabilities.
House Democrats view the legislation as a vital part of their agenda to lift U.S. economic growth and pay. They argue that strong economic growth and a bull market aren’t enough to help American workers who need it most.
Will President Trump Veto It?
The White House warned the House that President Trump would likely veto the measure if it came to his desk.
The Congressional Budget Office issued a report stating that the wage increase would bring 1.3 million Americans out of poverty, but it would also cost the U.S. 1.3 million jobs by 2024.
According to the Trump administration, its policies are “driving economic growth and increasing workers’ take-home pay far more effectively and efficiently” than the Democratic wage plan. The White House also stated it would “eliminate jobs and reduce total wages for American workers.”
Increasing the Federal minimum wage to $15 per hour is a huge issue in the upcoming 2020 presidential race, but some predict that the bill has little chance of becoming law before next November’s election.
