Senator Josh Hawley (R-Mo.) Is entering the minimum wage movement and will present an alternative to the Democrats’ proposal on Wednesday that would use federal dollars to increase the incomes of low-income workers, Axios found.
Why does it matter: Hawley, a Trump-style Republican who is considered a likely candidate for the presidency in 2024, is breaking with the Republican Party 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 2024 candidate, it is worth watching his proposal to see what it says about changes in Republican ideas.
The politics: Hawley plans to launch “The Blue Collar Bonus” as a populist and pro-worker proposal.
- Hawley’s team estimates that it would probably cost about $ 200 billion, something that traditional Republicans refuse, although it has not been officially scored.
- Hawley told Axios that he would also support a $ 15 minimum wage for workers in large companies that generate at least $ 1 billion in annual revenue.
- The measure would also benefit low-income workers who have been hard hit by the coronavirus pandemic.
The bill: Hawley is proposing a three-year program that would increase workers’ wages in 2021, paid by taxpayers instead of employers.
- Those earning less than $ 16.50 an hour would receive a refundable tax credit in the amount of 50% of the difference, paid in quarterly installments. The $ 16.50 could increase over time, as it would be linked to the Consumer Price Index.
- The credit would apply only to 40 hours or less of weekly work.
- Only American workers with valid Social Security numbers would be eligible, which means that non-American citizens and undocumented immigrants would be excluded.
Between the lines: Hawley’s plan would be implemented immediately in fiscal year 2021, expiring in 2024.
- The Democrats’ plan to raise the minimum wage to $ 15 an hour would be implemented by 2025. The same for a $ 10 an hour proposal launched on Tuesday by GOP Sens. Mitt Romney (R-Utah) and Tom Cotton (R-Ark.).
- Biden promised to promote an autonomous project to raise the minimum wage.
What is he saying: “The project targets people who are earning $ 34,000 to $ 35,000 a year or less,” said Hawley. “This is aimed at the people who have been hit the hardest, who are trying to rise.”
- “Federal policy has helped to create fixed wages for blue collar workers over the past 30-40 years,” he added. “We need to have a broader discussion about several of these policy options. Many of them have to do with our trade policies and the policies we are pursuing with globalization, which have been very bad choices.”
Predictable issues: The subsidy would disproportionately benefit those in states that have kept their minimum wages low.
- It is also an incredibly complicated account, which can make it difficult for workers to properly estimate what they are going to take home.
What is the next: The Senate parliamentarian will decide today whether the Democrats’ provision can be included in the COVID stimulus package and voted through budgetary reconciliation.