On April 22, 2019, CBO published a cost estimate for House Bill 582, Raise the Wage...

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Finance

On April 22, 2019, CBO published a cost estimate forHouse Bill 582, Raise the Wage Act. You can obtain a copy of thereport here. Read the report and answer the followingquestions.
(1) In your own word, why does raising the federalminimum wage DIRECTLY affect the federal budget?
(2) Would the proposed policy have an impact onmandatory spending, and why? If yes, by how much does it change theprojected federal deficit associated with mandatory spending overthe 2020-2029 period?
(3) Would the proposed policy have an impact ondiscretionary spending, and why? If yes, by how much does it changethe projected federal deficit associated with discretionaryspending over the 2020-2029 period?
(4) Why would the proposed policy impose“intergovernmental and private-sector mandates”? What are theestimated annual costs of the policy to subnational governments andprivate-sector organizations respectively? As the report states,spending for the Postal Service is classified as off-budget. Thedistinction between on-budget and off-budget programs is rathersuperficial. In your answer, please consider the overall federalbudget including both on-budget and off-budgetcomponents.

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3.8 Ratings (636 Votes)

1 The federal minimum wage was established in 1938 as part of the Fair Labor Standards Act FLSA to help ensure that all work would be fairly rewarded and that regular employment would provide a decent quality of life In theory Congress makes periodic amendments to the FLSA increasing the federal See Answer

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On April 22, 2019, CBO published a cost estimate forHouse Bill 582, Raise the Wage Act. You can obtain a copy of thereport here. Read the report and answer the followingquestions.(1) In your own word, why does raising the federalminimum wage DIRECTLY affect the federal budget?(2) Would the proposed policy have an impact onmandatory spending, and why? If yes, by how much does it change theprojected federal deficit associated with mandatory spending overthe 2020-2029 period?(3) Would the proposed policy have an impact ondiscretionary spending, and why? If yes, by how much does it changethe projected federal deficit associated with discretionaryspending over the 2020-2029 period?(4) Why would the proposed policy impose“intergovernmental and private-sector mandates”? What are theestimated annual costs of the policy to subnational governments andprivate-sector organizations respectively? As the report states,spending for the Postal Service is classified as off-budget. Thedistinction between on-budget and off-budget programs is rathersuperficial. In your answer, please consider the overall federalbudget including both on-budget and off-budgetcomponents.