A Senate Democratic bill gradually increasing the federal minimum wage to $10.10 hourly would require private businesses to spend $15 billion more in salaries when it takes full effect in 2017, the Congressional Budget Office estimated Thursday.
The nonpartisan budget office's estimate could be used as ammunition by Republicans, who largely oppose the measure because they say it would drive up business costs.
But it could also be beneficial to Democrats because the private sector spent $5.4 trillion on wages in 2012, according to the most recent data from the federal Bureau of Labor Statistics. That means the increased pay would boost employers' wage costs by just 0.003 percent, or about one-third of a penny for every dollar spent on salaries.
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Whether the measure would prove to be a job killer has become one of the most hotly contested issues in the debate over raising the federal minimum wage. The budget office has also estimated that the measure would raise earnings for about 16.5 million workers earning under $10.10, but cost about 500,000 others their jobs as employers adjust to higher costs...(emphasis mine)Read the full story HERE.
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