Senator Josh Hawley (R-Mo) is jumping to the minimum wage and on Wednesday will introduce an alternative to the Democrat proposal that would use federal dollars to increase the incomes of low-income workers, Axios reported.
Why it’s important: Hawley, a Trump-style Republican who is considered a likely candidate for the 2024 presidency, is breaking with the GOP’s main orthodoxy by suggesting he believes the federal minimum wage is too low.
- He is now known for his role in opposing President Biden’s election certification, but as a likely 2024 candidate, his proposal is worth watching what he says about changes in Republican ideas.
Politics: Hawley plans to present “The Blue Collar Bonus” as a populist, worker-friendly proposal.
- The Hawley team estimates it would probably cost about $ 200 billion, which traditional Republicans will refuse, although it has not been officially obtained.
- Hawley told Axios he would also support a $ 15 minimum wage for workers in large companies that generate at least $ 1 billion in annual revenue.
- The measure would also benefit low-wage workers who have been hard hit by the coronavirus pandemic.
The bill: Hawley proposes a three-year program that would increase workers ’wages in 2021, paid by taxpayers instead of employers.
- Those earning less than $ 16.50 per hour will receive a refundable tax credit worth 50% of the difference, paid in quarterly installments. The $ 16.50 could increase over time as it would be tied to the consumer price index.
- The credit would only apply to 40 hours or less of weekly work.
- Only American workers with valid Social Security numbers would be eligible, that is, non-American citizens and undocumented immigrants would be excluded.
Between lines: Hawley’s plan would be implemented immediately in fiscal year 2021, which would expire in 2024.
- The Democrats’ plan to raise the minimum wage to $ 15 an hour will begin gradually in 2025. The same for a $ 10 per hour proposal released Tuesday by GOP Sens. Mitt Romney (R-Utah) and Tom Cotton (R-Ark.).
- Biden has promised to promote an independent bill to raise the minimum wage.
What it says: “The bill is aimed at people who earn between $ 34,000 and $ 35,000 a year and less,” Hawley said. “This is aimed at the people who have been most affected and who are trying to get back on their feet.”
- “Federal policy has helped create, over the last 30-40 years, fixed wages for blue-collar workers,” he added. “We need to have a broader debate on a number of these policy options. It has a lot to do with our trade policies and the policies we pursued with globalization, which have been very bad choices.”
Predictable issues: The subsidy would disproportionately benefit those in the states that have kept their minimum wages low.
- It is also an incredibly complicated bill, which could make it difficult for workers to properly estimate their retirement.
What follows: The Senate MP will decide today whether the Democrats ’provision can be included in the COVID stimulus package and voted on through budget conciliation.