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federal minimum wage history

For details, please see your browser’s Help section (by pressing F1). 4 (1994), pp. In contrast, the average minimum wage worker earns $15,080 a year. As their income rises they lose federal tax credits and assistance. The federal minimum wage was raised to $0.40 an hour, effective October 24, 1945. [28] Department of Labor, Bureau of Labor Statistics, “Characteristics of Minimum Wage Workers – 2012,” Tables 1 and 4, athttp://www.bls.gov/cps/minwage2012tbls.htm. Neumark and Wascher also argue that the many counties compared across state borders have very different economic climates. 262–281; Craig Gundersen, and James Patrick Ziliak, 2004. Higher minimum wages both reduce overall employment and encourage relatively affluent workers to enter the labor force. 2 (2007), pp. Nationwide, the average single parent with one child who participates in all programs for which they are eligible faces an effective marginal tax rate of 91 percent. [11] Heritage Foundation analysis of data from the Current Population Survey (CPS). Get in touch with us. If the federal minimum wage rose to $10.10 an hour ($21,008 a year for a full-time job) benefit reductions would claw back the majority of his or her raise. [25] Testimony of American Samoa Governor Togiola Tulafona before the Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs of the Committee on Natural Resources, U.S. House of Representatives, September 23, 2011. But when confronted with the stories of real people struggling just to make ends meet, they can't hide behind the same old tired excuses. Accessed April 21, 2020. 2002. How long has there been a minimum wage, and is Congress planning on raising it anytime soon? Some columns show the effective tax rates when workers participate in all programs for which they are eligible. Consequently this paper uses the PCE index to adjust for past inflation. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). 5% of women in America earned minimum wage or less, compared to 3% of men. Poverty and family income statistics come from the March supplement to the 2011 and 2012 CPS data. In 2012, that number had dropped to 5%. [20] U.S. Department of Labor, Impact of Increased Minimum Wages on the Economies of American Samoa and the Commonwealth of the Northern Mariana Islands, January 2008. They demonstrate that it takes very specific controls to make the relationship between the minimum wage and job losses disappear. The table of federal minimum wage rates under the Fair Labor Standards Act, 1938 - 2009 is also available in a PDF Version . [6][7][8] Those who do work in minimum-wage jobs fall into two distinct categories: young workers, usually in school, and older workers who have left school. In 2013, House Republicans voted unanimously to defeat a bill to raise the minimum wage in stages to $10.10 per hour. Congress has created many overlapping means-tested benefit programs: the supplemental nutrition assistance program (SNAP, formerly called food stamps), temporary assistance for needy families (TANF), the Earned Income Tax Credit (EITC), child-care subsidies, housing vouchers, and Women, Infants, and Children (WIC) benefits. It has averaged $6.60 an hour in purchasing power in 2013 dollars.

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