Raise the Wage Act to be voted on in House on Thursday
WASHINGTON, D.C. – A hundred and fifty small business owners from Wisconsin and around the nation are in Washington, D.C. this week to meet with their members of Congress and ask them to vote no on the Raise the Wage Act. A floor vote is scheduled in the House of Representatives on Thursday on that bill, H.R. 582. The Raise the Wage Act increases the national minimum wage to $15 over five years and automatically increases that threshold every subsequent year.
The Raise the Wage Act, will eliminate hundreds of thousands of small business jobs. The non-partisan Congressional Budget Office confirms that this legislation will damage the small business economy, estimating that 1.3 million workers will become jobless and total real income will be reduced by $9 billion by 2025.
“Raising the minimum wage is more about the politics of the moment than about the realities of the economy,” said NFIB’s State Director in Wisconsin, Bill G. Smith. “A government mandate to increase the wage rate for entry-level workers may score political points, but it will have a serious negative impact on the ability of our employers to provide meaningful job opportunities for a vital share of our workforce.”
Small businesses would feel the brunt of the impact of the Raise the Wage Act. When employers face steep increases in wages, they face tough choices. They must increase the cost of their product or service or reduce labor costs elsewhere. The mandate will lead to cuts in jobs and employee hours or reduced benefits.
NFIB has just sent a letter to members of Congress explaining that their vote on the Raise the Wage Act is a critical vote for small businesses, and a survey of its members shows they strongly oppose that legislation.
Bill G. Smith
State Director for NFIB in Wisconsin