About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

S. 1737, Minimum Wage Fairness Act 1 (March 26, 2014)

handle is hein.congrec/cbo1569 and id is 1 raw text is: CONGRESSIONAL BUDGET OFFICE COST ESTIMATE March 26, 2014 S. 1737 Minimum Wage Fairness Act As introduced in the Senate on November 19, 2013 SUMMARY S. 1737 would amend the Fair Labor Standards Act (FLSA) to increase the federal minimum wage in three steps from $7.25 per hour to $10.10 per hour, and to adjust the wage annually thereafter to account for inflation. In addition, the bill would increase the federal minimum cash wage for workers who receive tips by gradually raising that wage until it equals 70 percent of the federal minimum wage for other workers. Finally, S. 1737 would amend the Internal Revenue Code to extend through 2016 an increased limitation on the amount of investment that firms can immediately deduct from their taxable income-a limitation that mostly affects small- to medium-sized businesses. Increasing the minimum wage would have various direct and indirect effects on the federal budget. It would affect the federal budget directly by increasing the wages that the federal government paid to a small number of hourly employees and indirectly by boosting the prices of some goods and services purchased by the government. Federal spending and taxes would also be indirectly affected by increases in income for some people and reductions in income for others. In a previous analysis, taking into account both the direct and indirect effects on the federal budget, CBO concluded that it is unclear whether the net effect for the coming decade would be a small increase or a small decrease in budget deficits.' However, cost estimates that are produced by CBO and used for enforcing Congressional budget rules typically reflect a long-standing convention that macroeconomic variables, such as nominal output and the average price level, remain fixed at the values that they are projected to reach under current law. This cost estimate does not incorporate the effects that an increase in the minimum wage would probably have on the economy and any effects on the budget that would result from them. Instead, the estimate includes only the direct effects of raising the minimum wage on the wages paid by the federal government, as well as the direct effects of the change in the tax code. Those effects are the following: 1.See Congressional Budget Office, The Effects of a Minimum-Wage Increase on Employment and Family Income (February 2014), www.cbo.gov/publication/44995.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most