Senator Josh Hawley (R-Mo.) Is jumping on the minimum wage cart and will introduce an alternative Wednesday to the Democrats’ proposal that would use federal dollars to increase the income of low-earning workers, Axios has learned.
Why it matters: Hawley, a Trump-style Republican who is considered a likely president by 2024, breaks with mainstream GOP orthodoxy by suggesting that he believes the federal minimum wage is too low.
- He is now known for his role in objecting to the certification of President Biden’s election, but as a likely candidate for 2024, his proposal is worth seeing what it says about the shifts in Republican ideas.
Politics: Hawley plans to pitch “The Blue Collar Bonus” as a populist, pro-worker proposition.
- Hawley’s team estimates it would likely cost around $ 200 billion, which is something traditional Republicans will oppose, although it hasn’t been officially scored.
- Hawley told Axios he would also support a $ 15 minimum wage for employees of large companies generating at least $ 1 billion in annual revenue.
- The measure would also benefit low-paid workers hard hit by the coronavirus pandemic.
The bill: Hawley is proposing a three-year program that would increase workers’ wages by 2021, paid by taxpayers rather than employers.
- Those making less than $ 16.50 an hour would receive a refundable tax credit of 50% of the difference, paid in quarterly installments. The $ 16.50 could rise over time as it would be tied to the consumer price index.
- The credit would only apply to 40 hours or less of weekly work.
- Only US employees with valid Social Security numbers are eligible, which means that non-US citizens and undocumented immigrants would be banned.
Between the lines: Hawley’s plan would be implemented immediately in the 2021 tax year, which ends in 2024.
- The Democrats’ plan to raise the minimum wage to $ 15 an hour would be phased in by 2025. The same goes for a $ 10-an-hour proposal released Tuesday by GOP Sens. Mitt Romney (R-Utah) and Tom Cotton (R-Ark.).
- Biden has pledged to promote a standalone bill to increase the minimum wage.
What he says: “The bill is aimed at people who earn $ 34,000 – $ 35,000 a year and less,” Hawley said. “This is for people who have been hit hardest, who are trying to get back on their feet.”
- “Federal policy has helped create flat wages for workers for the past 30-40 years,” he added. “We need a broader discussion of some of those policy choices. A lot has to do with our trade policy and the policies we were pursuing with globalization, which were very bad choices.”
Foreseeable problems: The subsidy would disproportionately benefit those in states that have kept their minimum wages low.
- It’s also an incredibly complicated bill, which could make it difficult for employees to accurately estimate their return home.
What’s next: The Senate MP will already decide today whether the Democrats’ provision can be included in the COVID stimulus package and whether it can be voted through budget reconciliation.