Obama to use Executive Order to raise minimum wage to $10.10 across our nation
A new CBO report was recently released and Barack Obama is not going to like it. His regime took a blow when the CBO reported his proposed, and in some cases forced, minimum wage hike from the current federal level of $7.25 to $10.10 would cause a loss of jobs upwards of 1 million. Now, the CBO reports that this increase in minimum wage, which amounts to a 40% increase, will increase the deficit.
The Washington Free Beacon reports on this new finding by the CBO that also detailed the impact of such an increase on both private business and local, state, and federal governments.
Private employers will lose $15 billion through higher wages for workers and smaller tax breaks for reinvesting money into a company, a move the CBO said “mostly affects small- to medium-sized businesses.”
State, local, and federal governments will spend $1 billion more on higher wages and prices over the next ten years. Those cost increases are ten times higher than the thresholds set forth in the Unfunded Mandates Reform Act, which calls on government agencies to avoid deficit increases.
The nonpartisan office found that the Senate’s minimum wage bill would drive up prices the government must pay for goods and services, while also leading to lost tax revenue.
“It would affect the federal budget directly by increasing the wages that the federal government paid to a small number of hourly employees and indirectly by boosting the prices of some goods and services purchased by the government,” the report said. “Federal spending and taxes would also be indirectly affected by increases in income for some people and reductions in income for others.”
The CBO also said that this increase will cost the private sector $15 billion over ten years and increase the deficit by $5 billion over ten years. The Washington Free Beacon also reported that “the CBO said Obama’s gesture was largely symbolic since fewer than 4,000 workers are employed by the federal government at hourly rates below $10.10.”
With Obamacare, Barack Obama promised increased coverage, even for things that you may not want, for reduced cost. With the minimum wage, he is pushing for an increased cost without addressing the real economic impact. This is what happens when you have an elitist academic with no real world experience as president. Unless, this is all part of his fundamental transformation to ruin America. Either way, the American people overall lose.