U.S. Representative Mike Johnson (LA-04) released the following statement regarding the Raise the Wage Act, which increases the federal minimum wage by 107 percent, a move that could eliminate up to 3.7 million jobs:
“The House Democrats’ bill to force a 107 percent increase in the federal minimum wage would actually cause great harm to our economy and to the very people we all want to help. If their idea became law, countless small businesses would be forced to eliminate employees and their available hours. Estimates are that as many as 3.7 million hardworking Americans could lose their jobs. For reference, that is approximately five times the amount of people who live in the 15 parishes of Louisiana’s Fourth Congressional District. Congress should be considering pro-growth policies that create opportunities for all Americans, not legislation that cripples small businesses and increases unemployment.”
According to the Congressional Budget Office (CBO), increasing the federal minimum wage to $15 could eliminate up to 3.7 million jobs by 2025 and reduce total family income by about $9 billion in 2025. In addition, it could also reduce business income and increase consumer prices, since the higher labor costs initially absorbed by business owners would ultimately be passed on to consumers.