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The Raise the Wage Act of 2021

The Raise the Wage Act of 2021 mirrors a bill that passed in the House in 2019 and it would phase in the hike from the current $7.25 to $9.50 this year and the full $15.00 by 2025.  House Budget Committee Chairman Yarmuth said Democrats are prepared to try to enact the increase through budget reconciliation that can bypass any filibuster by Senate Republicans.  Supporters of the bill argue that it will increase tax revenue and decrease government spending on food stamps and other support for the poor.  The proposed bill would also raise the tipped minimum wage and youth minimum wage, by phasing both out by 2027.  Per the Department of Labor, “after 2025, the minimum hourly rate would be indexed to national median wage growth.”