Federal Worker Wage Increase Costs Taxpayers $500 Million
Growing the Economy is the Better Way to Help Working Families
(Washington, D.C.) – The minimum wage increase ordered by President Obama for federal contractors will cost taxpayers over $500 million by 2019, according to the Obama Administration. Under the executive order issued by the White House in February, employees of federal contractors must make at least $10.10 per hour. The order affects fewer than 200,000 workers, in a domestic U.S. workforce of more than 150 million people. According to the Department of Labor, there will be an additional cost of about $26 million for contractors to "familiarize" themselves with the rule, which will also be paid for by taxpayers.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"According to the nonpartisan experts of the Congressional Budget Office, a minimum wage increase would increase take-home-pay for some, but would also put hundreds of thousands of people out of work. In a similar way, the wage increase that President Obama mandated will help a few – but will force hard-pressed working families to pay hundreds of millions in higher taxes. There's no need for Washington to pit Americans against each other by choosing winners and losers. By growing the economy, we can raise wages and increase economic opportunity – without tax increases or job losses."