Analyzing Census Bureau data, they found that 85 percent of low-income families received no benefit from the most recent federal minimum wage increase—specifically, because these families?
And the 21 states plus Puerto Rico that have no minimum wage or have set their minimum wages at or below the federal minimum should improve their minimum wage to help working families meet basic needs and get ahead.
The earned income tax credit is now the most important transfer program in the US for providing income to poor families and one that the CBO found in to be a more cost-effective way of doing so than increasing the minimum wage.
Minimum Wage Increase No American should still live in poverty if they work full time. A false choice now.
An econometric simulation estimated a modest increase in labor force participation of about 30, individuals, primarily single mothers. In the absence of government tax and transfer programs, such direct interventions were seen as the only means of achieving those goals. Arkansas and Missouri approved minimum wage increases by ballot measure.
In addition, the increase in low-skilled workers drawn into the labor market because of the earned income tax credit will lower wages to some degree, thus allowing employers to capture part of the subsidy.
Increasing both at the same time provides added support to the working families that need it most.