Congressman Don Bacon (NE-02) today voted no on H.R. 582, Raise the Wage Act, because it is anti-worker, anti-business and would cause the loss of up to 3.7 million jobs. It mandates a 107 percent increase in the federal minimum wage. He issued the following statement regarding the negative effects of the legislation, based on findings by the non-partisan Congressional Budget Office (CBO):
“Americans will only be harmed by this legislation because it forces businesses to reduce hours and cut payrolls, reducing net family income by almost $9 billion meaning lower income families will come out financially worse. In addition, it makes zero sense to use a one-size fits all approach to minimum wage when cost of living varies by state and city by city. Omaha, Papillion, Gretna and the rural areas of our state should not be treated the same as Los Angeles, Seattle or New York City. Nebraskans should decide if and when they raise the minimum wage, and they recently did that.
“The CBO says this legislation disproportionally affects young people between the ages of 16-24 who make up about half of minimum wage workers. Businesses will seek more qualified job applicants to fill entry-level positions that are typically filled by young people to develop the skills they need to progress towards a stable career. I started my first job at age 13 and I learned first-hand how to build my skillset, learn the value of a hard-day’s work, and work from the ground up.
“The best economy in 50 years and the increase in worker’s take home pay has been driven by lower taxes and reduced regulations, and this legislation reverses that progress.
“I voted no to throwing 3.7 million people out of work, reducing work hours, and raising the cost of living on our lowest income earners.”