Sen. Josh Hawley (R-Mo.) Jumps on the minimum wage and will on Wednesday introduce an alternative to the Democrats ‘proposal that would use federal dollars to increase low-income workers’ incomes, Axios has learned.
Why it matters: Hawley, a Trump-style Republican who is considered a likely 2024 presidential candidate, breaks with the general GOP orthodoxy by suggesting that he believes the federal minimum wage is too low.
- He is now known for his role in objecting to the election of President Biden, but as a likely candidate in 2024, his proposal is worth looking at for what it says about the shifts in Republican ideas.
The politics: Hawley plans to present ‘The Blue Collar Bonus’ as a populist proposal for workers.
- Hawley’s team estimates that it will probably cost about $ 200 billion, something that traditional Republicans will see to it, although it has not been officially achieved.
- Hawley told Axios he would also support a minimum wage of $ 15 for workers from large companies earning at least $ 1 billion in revenue annually.
- The measure would also be beneficial for low-wage workers hard hit by the coronavirus pandemic.
The account: Hawley proposes a three-year program that will increase workers’ wages in 2021, paid for by taxpayers rather than employers.
- Those who earn less than $ 16.50 per hour will receive a refundable tax credit worth 50% of the difference, which is paid out in quarterly installments. The $ 16.50 may rise over time as it will be linked to the Consumer Price Index.
- The credit is only valid for 40 hours or less of weekly work.
- Only U.S. workers with valid Social Security numbers would be eligible, meaning non-U.S. citizens and immigrants would be excluded without documents.
Between the lines: Hawley’s plan will be implemented immediately in the 2021 tax year and expire in 2024.
- The Democrats’ plan to increase the minimum wage to $ 15 per hour will be phased in by 2025. The same goes for a $ 10 per hour proposal made by GOP Sens on Tuesday. Mitt Romney (R-Utah) and Tom Cotton (R-Ark.) Were announced.
- Biden has promised to promote an independent bill to increase the minimum wage.
What he says: “The bill is aimed at people who earn $ 34,000- $ 35,000 a year and less,” Hawley said. “It’s aimed at people who have been hit the hardest, and who are trying to get back on their feet.”
- “Federal policy has helped create levels for wage workers over the past 30-40 years,” he added. “We need to have a wider discussion about some of the policy choices. It has a lot to do with our trade policies and the policies we followed with globalization, which were very bad choices.”
Predictable problems: The subsidy will disproportionately benefit those in countries that have kept their minimum wages low.
- It is also an incredibly complicated bill that can make it difficult for workers to properly estimate their home care.
What’s next: The Senate MP will decide early today whether the provision of the Democrats can be included in the COVID incentive package and what budget reconciliation can be discussed.