Federal minimum wage will be lowered to $5/hr. A federal wage subsidy of $2.50/hr will be made available immediately.
All persons earning at or near their local minimum wage will be immediately eligible for benefits. Persons earning their local minimum wage will receive a federal wage subsidy of $2.50 per hour worked. For each cent above the minimum earned, the subsidy is decreased by half a cent.
Under this policy, everyone currently earning the federal minimum of $7.25 an hour will be immediately eligible for an additional wage subsidy of $1.13 per hour.
Persons entering the job market at the new minimum of $5/hr will recieve a wage subsidy of $2.50, meaning their initial pay will be $0.25 cents more than what they would have earned under the old minimum.
Individuals in areas with higher local minimum wages due to higher expenses will be eligible for the same subsidy amounts adapted to the baseline of their local minimum wage.
This law will be enacted for a one year trial period, pending the evaluation of public and economic response.
Thank you, and have a great day.
