Natural State News

Sen. Tom Cotton (R-Ark.) issued a counterproposal to raise the minimum hourly wage to $10, opposing the Democrats' push for a $15 minimum. 

The bill announced on Feb. 23 is called the Higher Wages for American Workers Act. Cotton plans to strategically raise the federal minimum wage over a period of four years while at the same time tightening laws and enforcement on employing illegal immigrants thereby ensuring the wage boosts benefit legal workers only.

The bill additionally offers protections for small businesses with an employment base of less than 20 by giving them a longer phase-in period for the increased minimum wage.

President Joe Biden's $15 minimum wage has been rejected by many and statistics prove its negative effects. A recent study by the nonpartisan Congressional Budget Office (CBO) found that increasing the federal minimum wage by 2025 would cost 1.4 million jobs over four years while raising wages for around 27 million people.

The impact of the $10 an hour minimum wage was also examined. In 2019, a study by the CBO revealed that it would have little impact on employment, while boosting the wages of some 3.5 million workers.

“American workers today compete against millions of illegal immigrants for too few jobs with wages that are too low—that’s unfair,” Cotton said in a statement, The Epoch Times reported. “Ending the black market for illegal labor will open up jobs for Americans. Raising the minimum wage will allow Americans filling those jobs to better support their families. Our bill does both.”

The bill makes it mandatory for employers to E-Verify and imposes stricter penalties on those that employ illegal immigrants. 

Cotton's bill is almost similar to that of Sen. Joe Manchin (D-W.Va.) who is requesting a $11 federal minimum wage against President Biden's $15 which is part of the $1.9 trillion stimulus budget.

For Biden's bill to pass without Republicans' support, Manchin will have to vote in his favor, but Manchin has already announced his disapproval of the $15 minimum wage hike. It is unclear also if the proposal could be approved via the budget reconciliation process.

The debate on the hike of minimum wages has been ongoing for years with some economists arguing that raising salaries would boost the economy as spending would increase thereby lifting the economy. On the other hand, other economists argue it will affect businesses and lead to higher unemployment rates.