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What to expect from President Biden's $15/hr minimum wage proposal

President Joe Biden and his Democratic allies in Congress are pushing to include a measure to raise the minimum wage to $15 an hour in the next relief bill. The effort faces an uphill battle in the Senate. Yahoo Finance's Jessica Smith shares the details.

Video Transcript

- Let's bring in Jessica Smith, who is tracking this for us in DC. And Jess, this report just released at the top of the hour right now. We should point out that $54 billion is cumulative deficit over the next 10 years.

JESSICA SMITH: Exactly. And this report also found that 1.4 million jobs will be lost by 2025, when the minimum wage actually goes up to $15 an hour. That's a little bit more than what the CBO predicted last time. The CBO also says that raising the minimum wage would lift 900,000 people out of poverty. That number is a little bit lower than the previous report. 17 million people would see their wages go up, according to this report. And as you mentioned, the deficit would grow by $54 billion over the course of 10 years.

This report is assuming that this bill, the Raise the Wage Act, does go into effect at the end of March. So that's the timeline that they're looking at as they're considering all of these things. The CBO also says that federal revenues would rise, but federal spending would also increase as the cost of goods and services rise, as well. So this is something that lawmakers have been hoping to look at, and Democratic lawmakers and supporters of a wage boost have been hoping that this would bolster their case for including this in a COVID relief package. So we'll be looking to see reaction from lawmakers, what they think about this report and how it impacts these relief negotiations going forward.