Raise the Wage Act: A Path to Higher Earnings

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The Raise the Wage Act aims to increase the federal minimum wage to $15 per hour by 2027, with annual increases to account for inflation. This would have a significant impact on low-wage workers, who are disproportionately represented in industries such as retail and food service.

The Act would also exempt tipped employees from the minimum wage requirement, as long as their tips bring their total earnings to at least the minimum wage. This is a nod to the reality that many tipped workers rely on customer tips to supplement their income.

Raising the minimum wage would not only increase earnings for low-wage workers but also reduce poverty and income inequality. According to some estimates, increasing the minimum wage to $15 per hour could lift millions of workers out of poverty.

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What is the Raise the Wage Act?

The Raise the Wage Act is a bill that aims to increase the federal minimum wage to a more livable rate. The bill has been reintroduced in the 118th Congress and has the support of President Biden.

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The Raise the Wage Act would gradually raise the federal minimum wage to $17 per hour by 2028 through incremental, annual increases. This means that the minimum wage would increase by a certain amount each year until it reaches $17 per hour.

After 2028, the federal minimum wage would automatically increase annually, tied to the percentage increase in the median wages of all workers. This is called "indexing", and it's a way to ensure that wages keep up with the cost of living.

The bill also proposes phasing out the subminimum wage for tipped workers, which stands at $2.13 per hour at the federal level. This would mean that workers who rely on tips for their income would receive a higher wage.

Here's a breakdown of the proposed phase-out schedule:

Note that this is just a proposal, and the actual phase-out schedule may be different.

A full-time worker earning the current minimum wage of $7.25 per hour would bring in about $15,080 annually. According to the 2025 poverty guidelines, the federal poverty level for a single-person household is $15,650. This means that many workers who rely on the minimum wage would still be living in poverty.

The Raise the Wage Act would also eliminate the lower minimums for youth workers and workers with disabilities. This would mean that all workers would be entitled to the same minimum wage, regardless of their age or disability status.

Importance and Impact

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The Raise the Wage Act is a crucial piece of legislation that has the support of a large majority of voters across the country.

Raising the minimum wage to $15 an hour is not just a matter of fairness, but also a matter of economic necessity. By 2025, $15 an hour will be the bare minimum a single adult with no children will be able to earn to attain a "secure yet modest" standard of living anywhere in the United States.

The current federal minimum wage of $7.25 has remained unchanged since 2010, which is the longest period without an increase since the federal minimum wage was introduced in 1938.

Supporters of the Raise the Wage Act argue that it would help lift millions of workers out of poverty and narrow racial and gender wage gaps. About 22 million workers would see higher pay under the proposal, lawmakers said.

The bill would also tie future increases to median wage growth, allowing the minimum wage to keep pace with broader labor market trends. This means that the minimum wage would continue to increase over time, even if the cost of living does not.

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The Raise the Wage Act would also phase out the degrading "tipped minimum wage" of $2.13 for tipped workers, ensuring that they earn a fair wage for their work.

Raising the minimum wage has been shown to have a positive effect on wages for all workers, and reduces household and child poverty. Increasing the minimum wage reduces employee turnover, increases worker productivity, and raises consumer demand, all of which leads to a healthier economy.

The Raise the Wage Act is not just a matter of politics, but also a matter of human dignity. No one who has a job in America should be living in poverty.

Legislative Process

The Raise the Wage Act has been reintroduced in both the House and Senate multiple times, starting with the 115th Congress in 2017. The bill was first introduced as H.R. 15 in the House and S. 1242 in the Senate, both sponsored by Bobby Scott and Bernie Sanders respectively.

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The bill has been reintroduced in subsequent Congresses, with H.R. 582 being passed in the House in 2019. The bill's sponsors have consistently been Bobby Scott and Bernie Sanders.

Here is a list of the Raise the Wage Act's reintroductions:

Legislative History

The legislative history of the Raise the Wage Act is a fascinating topic. The bill has been introduced in the House of Representatives multiple times, starting with the 115th Congress in 2017.

Bobby Scott (D-VA) introduced the bill, H.R. 15, on May 25, 2017, with 171 cosponsors. Unfortunately, it died in committee. Bernie Sanders (I-VT) also introduced a companion bill, S. 1242, with 31 cosponsors, but it met the same fate.

The bill was reintroduced in the 116th Congress in 2019, again by Bobby Scott (D-VA) as H.R. 582, with 205 cosponsors. This time, it passed the House, but unfortunately, it died in committee in the Senate.

In the 117th Congress, the bill was reintroduced as H.R. 603, with 202 cosponsors, but it died in committee once more. Bernie Sanders (I-VT) introduced a companion bill, S. 53, with 37 cosponsors, but it met the same fate.

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The most recent attempt was in the 118th Congress, where the bill was reintroduced as H.R. 4889, with 172 cosponsors, but it was referred to committees of jurisdiction.

Here's a summary of the legislative history of the Raise the Wage Act:

How to Pass the Bill?

The Raise the Wage Act has been reintroduced in both the House and Senate, so it's essential to make sure your MoCs are cosponsors of the bill (H.R. 603, S. 53).

To pass the bill, Democrats are planning to use budget reconciliation to avoid a Republican filibuster in the Senate, as they did with the COVID-19 relief legislation.

The House should keep the Raise the Wage Act in their version of the American Relief Plan, and pass the most comprehensive version of relief legislation possible.

President Biden included the Raise the Wage Act in his American Rescue Plan, and House Democrats followed suit after some pressure from progressives.

The Senate Parliamentarian may try to strip out the provision under the Byrd Rule, but the House should stand firm and keep the Raise the Wage Act intact.

House Passes Bill, Senate Must Act

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The House has passed the Raise the Wage Act, but now it's up to the Senate to take action. The bill aims to raise the federal minimum wage to $15 an hour over six years, with a plan to automatically increase it in line with the median wage increase of all workers.

The Raise the Wage Act has been reintroduced in both the House and Senate, with sponsors Bobby Scott (D-VA) and Bernie Sanders (I-VT) leading the charge. The bill has gained significant support, with 171 cosponsors in the House and 31 in the Senate.

The House passed the bill, but Senate Majority Leader Mitch McConnell (R-KY) has refused to bring it to a vote. This is despite the fact that raising the minimum wage has the support of a large majority of voters, including white and non-white voters, Independents, and voters across different income levels.

The Raise the Wage Act would benefit almost 32 million workers, including Black and Latino workers, single mothers, and workers close to the poverty line. It would also eliminate the lower, subminimum wages for disabled, youth, and tipped workers, which contribute to wage theft and exacerbate wage gaps.

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Here are the key points of the Raise the Wage Act:

  • Gradually raise the federal minimum wage to $15 an hour by 2025.
  • Automatically increase the minimum wage each year at the same rate that median wages increase.
  • Gradually eliminate the lower, subminimum wages for disabled, youth, and tipped workers.

Now it's time for the Senate to take action and hold a vote on the Raise the Wage Act. As Bernie Sanders said, "No one who has a job in America should be living in poverty. Let the Senate vote."

Next Steps

The Raise the Wage Act of 2025 may face hurdles in Congress. Previous versions have stalled in the Senate, which is a major obstacle.

House Democrats have reintroduced the measure, but it still needs bipartisan backing in the Republican-controlled upper chamber. Without it, the bill's chances of becoming law are slim.

The Senate's role is crucial in determining the bill's fate, and it's unlikely to pass without the support of both parties. The House Democrats' efforts are a good start, but it's just the first step in a long process.

Ramiro Senger

Lead Writer

Ramiro Senger is a seasoned writer with a passion for delivering informative and engaging content to readers. With a keen interest in the world of finance, he has established himself as a trusted voice in the realm of mortgage loans and related topics. Ramiro's expertise spans a range of article categories, including mortgage loans and bad credit mortgage options.

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