If the federal government doubled the minimum wage, how much would this increase the average annual income of families below the poverty line?
A 2019 study by the Congressional Budget office found that raising the minimum wage from $7.25 per hour to $15 would increase the average annual reported cash income of families below the poverty line by about 5.2% or $589. It also found that such a law would give 81% of the resultant salary increases to families above the poverty line and would "increase joblessness, reduce business income, raise prices, and lower total output in the economy." Because reported cash income is roughly one-fifth of all income received by low-income households, doubling the minimum wage would increase their overall income by about 1%. The vast bulk of their income is comprised of unreported cash and non-cash government benefits like Food Stamps, Medicaid, housing, and a wide array of other programs.
DocumentationMinimum Wage Facts