How can we solve the problem of minimum wage?

Increasing Earned Income Tax Credits (EITC) offers a solution to minimum wage increases that don’t go far enough to help those who need it most, suggests Harry J. Holzer in ​Time ​magazine. Low-income wage earners receive EITC tax credits and government refunds at tax time to incentivize work.

What is the argument for those who support raising the minimum wage?

Raising the federal minimum wage to $15 an hour would improve the overall standard of living for minimum wage workers. These workers would more easily afford their monthly expenses, such as rent, car payments, and other household expenses.

How raising the minimum wage affects the economy?

The federal minimum wage of $7.25 per hour has not changed since 2009. Increasing it would raise the earnings and family income of most low-wage workers, lifting some families out of poverty—but it would cause other low-wage workers to become jobless, and their family income would fall.

How many people would benefit from minimum wage increase?

A total of 39.7 million workers would benefit, including: This report begins by providing historical context for the current value of the federal minimum wage and the proposed increase to $15 by 2024.

Where can I find information on raising the minimum wage?

Sources: EPI analysis of the Fair Labor Standards Act and amendments and the Raise the Wage Act of 2019. Total economy productivity data from the Bureau of Labor Statistics Labor Productivity and Costs program. Average hourly wages of production nonsupervisory workers from the Bureau of Labor Statistics Current Employment Statistics.

How does the minimum wage affect tipped workers?

Indeed, Sylvia Allegretto and David Cooper have found that in states where tipped workers receive the full regular minimum wage, tipped workers earn a higher median wage, inclusive of tips. As a result, poverty rates are lower for tipped workers in states with a single, equal minimum wage.

Is the federal minimum wage going up in 2025?

On July 18, 2019, the U.S. House of Representatives passed an amended version of the Raise the Wage Act of 2019, which would raise the federal minimum wage to $15 by 2025. EPI published a fact sheet analyzing the impact of raising the federal minimum wage to $15 by 2025.