Give America a Raise Act
Summary
The "Give America a Raise Act" proposes incremental increases to the federal minimum wage, ultimately reaching $20.00 per hour, and then adjusting annually based on inflation or GDP growth. It also raises the minimum wage for tipped employees, eventually eliminating the separate wage tier, and phases out the lower minimum wage for newly hired employees under 20. The act also addresses wages for individuals with disabilities, transitioning them to fair wages and phasing out special certificates.
Expected Effects
The Act aims to boost the income of low-wage workers. It will likely increase labor costs for businesses. It could also lead to changes in employment levels and prices.
Potential Benefits
- Increased wages for low-income workers, potentially reducing poverty.
- Automatic adjustments to the minimum wage based on economic indicators.
- Elimination of the separate minimum wage tier for tipped employees, ensuring fair compensation.
- Phasing out the lower minimum wage for young workers, promoting equal pay.
- Transition to fair wages for individuals with disabilities, promoting inclusivity.
Potential Disadvantages
- Potential job losses due to increased labor costs for businesses.
- Possible price increases for goods and services, impacting consumers.
- Increased compliance costs for businesses, especially small businesses.
- Uncertainty regarding the impact of automatic wage adjustments on the economy.
- Potential for reduced competitiveness of businesses in states with already higher minimum wages.
Most Disadvantaged Areas:
Constitutional Alignment
The Act's alignment with the Constitution is rooted in Congress's power to regulate interstate commerce (Article I, Section 8, Clause 3), which has been interpreted to include the power to set a federal minimum wage. The "general Welfare" clause of the Preamble also supports legislation aimed at improving the economic well-being of citizens. However, some may argue that it infringes on states' rights or the freedom of contract.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).