PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

“Raise the Wage Act” will Destroy 1.3 Million – 3.7 Million Jobs – SBE Council Urges a “NO” Vote on H.R. 582

By at 17 July, 2019, 4:22 pm

News

For Immediate Release

Washington, D.C. – On July 18 the U.S. House will vote on H.R. 582, the “Raise the Wage Act,” legislation that hikes the federal minimum wage to $15.00 by 2024. Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan said a mandated straightjacket-approach to wage hikes would hurt the most vulnerable small businesses, workers, and areas of the country that are still trying to recover from the devastation of the great recession and the weak economic recovery.

“Solid economic growth, a competitive labor market, and stronger small business revenues are driving wages higher. A big mandated wage hike from Washington would disrupt the growth and positivity in the economy, and small business jobs would take a big hit. Small business owners are feeling generally confident, but they are still navigating a very competitive environment that  includes uncertainties about trade policy and an endgame with regard to tariffs. Why Democrats in the House would want to harm their small business constituents and workers by adding more uncertainty and financial damage is a real head-scratcher. This big wage hike will indeed cause a lot of pain,” said Kerrigan.

Congressional Budget Office (CBO) analysis of H.R. 582 released on July 8, reported the $15 wage hike would:

● Reduce jobs by between 1.3 million and 3.7 million.

● “Reduce total real income by about $9 billion in 2025.”

● Decrease business owner income by $14 billion.

● Decrease the income of consumers by $39 billion.

“We are finally returning to an environment where more people want to start a business, and existing businesses are taking more risks. A big federal wage hike mandating $15 for the entire country is inappropriate and foolish. It is especially harmful for poorer regions of the country, many of which are low-cost areas. These same areas are still struggling to regain their economic footing.  Washington does not know best when it comes to setting local wages,” added Kerrigan.

SBE Council has voiced opposition to H.R. 582 in letters distributed to Capitol Hill and one-on-one meetings with Members.   The House vote is expected to take place on Thursday, July 18.

Contact:

Karen Kerrigan

e-mail: kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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