How’s that for a headline? Too bad it’s not accurate, intentionally misleading and from a far, really far left organization. At the same time the Congressional Budget Office (CBO) says the impact will be negligible.
Don’t believe me! Follow them in Twitter for a few days.
Some Washington lawmakers are pushing to raise the federal minimum wage to $15 per hour to put more money in workers’ pockets. The wage bump could also eventually provide a boost to their Social Security benefits. The current federal minimum wage of $7.25 has stayed where it is since 2009. At the same time, workers contribute 6.2% on wages of up to $142,800 in 2021 to Social Security. Employers, in turn, match that 6.2% contribution. (If you’re self-employed, you pay 12.4% in Social Security taxes.)
Social Security Works, an advocacy group for expanding Social Security, finds in a new report that the proposed minimum wage hike could help improve retirement security for those workers. “If you look at the workers that earn under $15 an hour now, that is a very strong reason to update it,” said Nancy Altman, president of Social Security Works.
If they claim their Social Security benefits in 2021 at full retirement age (the age at which they are eligible to receive 100% of the benefits they earned), they will receive monthly checks of $979.80, according to Social Security Works.
In contrast, had they earned $15 per hour, their monthly benefit would be $1,409.60.
That would be an annual increase of $5,157.60, according to the report.
There are a number of questionable assumptions in all the above. Only 1% of workers age 25 and older earn the minimum wage. And only 1% are married. Here are the facts on minimum wage workers.
This isn’t about raising the minimum wage which can be justified, it’s about truth presenting the facts and consequences.