There is merit on both sides of the minimum wage issue.
Supporters of raising the federal minimum wage to $10.20 per hour argue it will increase productivity, lower employee turnover and increase wages for 28 million workers. Critics contend that a higher minimum wage will hurt jobs and consumers. A higher minimum wage raises payroll costs and could cause employers to cut jobs, reduce worker hours, curb summer hiring, lead to opting not to replace workers who leave, lower profits, and increased retail prices.
The CBO report analyzed a proposal to raise the minimum wage to $9 per hour. Its effects would be less pronounced, with an estimated loss of 100,000 jobs and wage increases or an estimated 7.6 million lower wage workers.
If you are a small business owner, how is the increase in minimum wage affecting you?