Hawley Introduces Alternative to $15 per Hour Minimum Wage

The $15 per hour national minimum wage has been a hot button issue for several years now. Those who support it say it would help put more money in the pockets of people who live in poverty. Opponents say it is a small business killer and would drive up prices and unemployment.

This plan would deliver meaningful relief for families and working Americans through higher pay while incentivizing and promoting work - U.S. Senator Josh Hawley

U.S. Senator Josh Hawley is working on a solution to a national minimum wage that is alternative to minimum wage hike: a pay raise through tax credits.

Hawley announced today he will introduce new legislation to give blue-collar workers a pay raise through an automatic, advanceable tax credit tied to hours worked. Unlike other proposals to raise wages, this plan does not place a major new burden on small businesses, many of which are still recovering from harmful shutdowns.

“Wages for blue-collar workers have been stagnant for decades. And government made the problem worse by shutting down the economy a year ago. It’s time we give blue-collar workers some respect and a pay raise,” said Hawley. “This plan would deliver meaningful relief for families and working Americans through higher pay while incentivizing and promoting work.”

Senator Hawley believes higher wages for blue-collar workers are long overdue and that’s why he wants to provide a bonus to every worker making below the median wage.

In Hawley’s Blue Collar Bonus Plan the credit is worth 50 percent of the difference between the median wage and the worker’s hourly wage rate. In other words, the credit would boost per hour wages 50 percent closer to the median. The median wage is set at $16.50 per hour and will be indexed to inflation. The credit is allowed for a maximum of 40 hours per week and phases out at the median wage.

American workers who hold a valid social security number and earn below the median wage as calculated on an hourly basis are eligible for the Blue Collar Tax Bonus.

Protections are included to ensure program integrity and would bar those who committed fraud from receiving the credit in the future. The credit would be implemented on a temporary basis to boost take-home pay during the economic recovery and sunset after three years.

KPGZ News – Brian Watts contributed to this story