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Our new report finds that a $15 minimum wage would increase tax revenue by between $7 billion to $13.9 billion and reduce expenditures on public assistance programs by between $13.4 billion to $31 billion. https://www.epi.org/publication/a-15-minimum-wage-would-have-significant-and-direct-effects-on-the-federal-budget/
One requirement that often rules provisions out of the budget reconciliation process is that these provisions must have fiscal impacts that are not just “extraneous.” This report shows clearly that the fiscal effects of a $15 minimum wage are direct & economically significant.
Specifically, earned income tax credit and child tax credit expenditures would decline by between $6.5 billion and $20.7 billion annually with a $15 minimum wage. Reduced annual expenditures on SNAP alone would range from $3.3 billion to $5.4 billion.
In short, higher wages boost tax revenue and lead to workers qualifying less frequently for public benefits. Learn more from @benzipperer, @metaCoop, and @joshbivens_DC: https://www.epi.org/publication/a-15-minimum-wage-would-have-significant-and-direct-effects-on-the-federal-budget/
