Mick Mulvaney on the fight over the $15 federal minimum wage

A report released Monday from the nonpartisan Congressional Budget Office concluded that raising the minimum wage to $15 an hour by 2025 could add tens of billions of dollars to the federal budget deficit.

That could actually help Democrats pass an increase.

The CBO report showed that the Raise the Wage Act of 2021, which was recently reintroduced in the House, would increase the cumulative budget deficit by $54 billion through 2031. It also said raising the minimum wage to $15 an hour by 2025 would increase net revenue and boost spending on programs such as Medicaid and Medicare while decreasing the cost of others, such as the Supplemental Nutrition Assistance Program, or SNAP.

The report could help Democrats push forward a federal minimum wage increase because it supports the argument that it could be included in any legislation passed via Senate budget reconciliation, meaning that it impacts outlays and revenue and is not an incidental cost.

“This is not just incidental to the budget [the wage hike], it’s key to the budget,” said William Spriggs, an economics professor at Howard University and chief economist for the AFL-CIO, on a Monday call with reporters. It has clear implications when we think about Medicare and Medicaid, which are two very large federal programs, he said.

If Democrats can pass the federal minimum wage boost through reconciliation, it wouldn’t require any Republican support. Instead, they would need only a simple majority in the Senate, with Vice President Kamala Harris casting the tiebreaking vote.

Democrats are preparing to use reconciliation to pass President Joe Biden’s $1.9 trillion coronavirus relief package, which could include a federal minimum wage hike. Recently, Senate Democrats voted to prohibit raising the minimum wage during the pandemic, but through a nonbinding amendment. That means they could add the legislation back later -- and a first draft of the Education and Labor Committee’s part of the coronavirus bill seen Monday does include the $15 federal minimum wage increase.

Bernie Sanders, the independent Vermont senator and chair of the Senate Budget Committee, fully supports using reconciliation to pass an increased federal minimum wage.

“Let’s be clear. We are never going to get 10 Republicans to increase the minimum wage through ‘regular order.’ The only way to increase the minimum wage to $15 an hour now is to pass it with 51 votes through budget reconciliation,” Sanders said in a Monday statement.

“The CBO has demonstrated that increasing the minimum wage would have a direct and substantial impact on the federal budget. What that means is that we can clearly raise the minimum wage to $15 an hour under the rules of budget reconciliation,” he added.

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[courtneyhazelton]

The overriding fear in Mulvaney's voice over the prospect of the people gaining more of a voice is palpable

[keithharalson]

High school kids don't need $15 an hour. It will only raise property taxes..

[CaseyBurnsInvesting]

$15 will usher in unemployment, automation, and inflation. Let’s not lie just because it will help some people. It will hurt some people too.

[tonygarlitz]

Living in Maryland, not the wealthy side unfortunately. 15 and hour would destroy our economy in smaller towns around this country. Skilled workers with actual trade crafts and careers more often than not don't make much more than 15 unless they are part of unions. Its unnerving to think peoples life's would be destroyed because some kid at Mcds wants more money. I'm nobody and my opinion does not matter but some people need to relize the harm over good in these situations. God Bless this country and all who live here!

[FUTUREVIZION]

People can’t live off of less than $15 period.

[MillionaireMindsetClub]

Robots will be widespread sooner than we know if $15/hr salary becomes a norm.

[maiatoinvestimentos]

If you understand the fundamentals of economics, you know that raising the minimum wage to $15, like zero to 100 real quick, doesn’t make sense in this current economic environment( High level of unemployment). Over 100K small businesses closed last year. Raising the minimum wage will have a “me too”effect in the economy - price of services and goods will rise so that businesses can still maintain their profit and cost margins sustainable, this will most likely cause inflation rate to rise as well; for Big and small businesses to cut cost, they will most likely layoff the least productive people. Big businesses will create more AI based jobs because they have the financial means to do so. However, small businesses will sink since they will have to sacrifice certain employees’ jobs, thus affecting the business growth rate negatively. Plus the government has already been talking about increasing taxes, so pretty soon the taxes rates will also be raised. Folks overall, this will cause more harm than good to the economy(the people, services, goods, labor, entrepreneurship). The solution shouldn’t to raise the minimum wage, instead, the solution should be to create better paying jobs, raising the minimum wage doesn’t equal better fulfilling jobs 🤷‍♂️

[jennyph]

Shouldn't the government talk to the AMERICAN PEOPLE!? These people don't know anything about living/working in the middle class or lower. These people are so out of touch, it is unreal! Seriously. They have NO idea what people's expenses are. To cap it at $50k is just ridiculous. Remember that is what you receive PRIOR to taxes, so people aren't really coming home every year with $50k. It is absolutely ridiculous. It is the RICH people wanting to stay RICH and keep everybody else down.

[mikehall]

Breaking News: The Democratic National Headquarters was evacuated today after a suspicious package arrived. It turned out to be a copy of the United States Constitution, which none of them had seen before.

[haitong]

I am a small business owner. If $15 I have to cut 1/3 of my employees or I have to rise my price to my customers or a little of both. If the business fail then I have to close. I am not going to open business at a lost.

[bjoyful]

Thank you Becky! These Republicans make me sick! Why don’t they get out in the street and see how people are really suffering and need this stinkin money!

[Enfiare]

The minimum should be 23 an hour. Renting a room in someone else's place isn't the same as having your own space. Can't have your own place making 15 an hour. Just can't.

[avail.]

More money for people to spend at stores, means Store owners make more profit, this they can pay their employees higher wages. More product sold means more product** to be manufactured to replace that which is sold. That makes more jobs, so the*new replacement products can be made, more ⛽ gas sold to more cars trucks driving to new* jobs and more food purchased out of stores to feed new *working neighbors, shelves full until new* workers with higher wages come and but it on and on and on WHAT A WONDERFUL cycle....Then more new* cars and trucks purchased, T.V.'s etc

[zore]

Hey mic people can’t live on less than $15. We know you don’t get it.

[garydavidson]

Anyone heard an economist say corporations having more $ is bad for the economy but the people are different

[goji]

that will be 2 of the 4 working down the road

[dukelynch]

Small businesses are going to fold If this gets passed.

[deceptivex]

Nobody that gets paid $15/hr or more will end up getting a raise... but the bonus is that they don't have to stay working there anymore at that point... Personally I plan to go push shopping carts at Walmart if they make minimum wage $15/hr because currently I am an IT support Specialist make less than $15/hr and I grow weary of helping people with stupid questions all day long... things that these people should know considering they have worked in an office setting for years (Oh and they all make more $ than me, my workplace acts like IT is not important to the company in any way)!... If minimum wage goes to $15/hr (Over double what it currently is) I am positive they won't double my wage putting me to about $27/hr, they will be like Hey congratulations you make $15/hr now lol.... At that point drooling on myself and saying welcome to Walmart sounds pretty good!

[glbjr]

I don’t understand why you can’t just scale up slowly. Maybe $1 a year?

[debrakennedy]

Words Mick. Trash talk words. Trumpism is over. 60% polls are supporting Biden. Zero Republican bipartisanship. Ever!