By Todd Beamon
President Barack Obama’s plan to raise the federal minimum wage to $10.10 an hour will cost as many as 1 million jobs by late 2016, the Congressional Budget Office said on Tuesday.
WASHINGTON D.C. -If Obama and his fellow Democrats are successful in pushing the measure through, the increase would be fully implemented by the end of 2016. It would raise the rate for 16.5 million Americans.
The current minimum wage is $7.25 an hour. The jump to $10.10 over three years represents a near â€” 40 percent increase.
Obama called for a $10.10 minimum wage in his State of the Union address last month. His plan would see increases this year, next year, and again in 2016 to bring the rate to $10.10. Obama is due to leave the White House in January 2017.
The Senate could begin debating such a bill as early as next month.
Tuesdayâ€™s CBO report marked the second by the office within weeks to throw cold water on the Obama administrationâ€™s claims about the economic benefits on one of its major policies.
Two weeks ago, the CBO reported that Obamacare would cost the economy 2.5 million workers by 2017, primarily because smaller companies would scale back hours to avoid requirements that full-time workers be offered health insurance. The Affordable Care Act is essentially leading businesses and Americans to choose government-sponsored benefits over work, according to the agencyâ€™s report
According to Tuesday’s CBO report, the higher minimum wage rate could reduce U.S. budget deficits by a small amount for several years but then could increase them slightly in later years.