Yahoo Finance CBO: Minimum wage boost would cost firms $15B
Dems' proposed minimum wage increase would cost private companies $15B, feds $2M, CBO says
WASHINGTON (AP) -- The Congressional Budget Office estimates that a Senate Democratic proposal gradually boosting the minimum wage to $10.10 hourly would force businesses to spend $15 billion more in salaries in 2017.
The nonpartisan budget office says the increase would impose $1 billion in higher salary costs on state and local governments in 2017, when in full effect.
The raise would increase federal salaries by just $2 million over the decade ending in 2024. The federal government has fewer than 4,000 workers earning under $10.10.
Today's minimum is $7.25 hourly.
The Senate is expected to debate the legislation soon. Republicans seem likely to block it.
The budget office earlier estimated the increase would mean $31 billion in higher 2016 earnings for low-paid workers — including many not directly covered by the proposal.
