The Minimum Wage and Means-Tested Benefits: Raising the Wage and Raising the Threshold

This article argues that in the current and ongoing political battle to raise the minimum wage, we must account for the impacts on means-tested benefits. Beginning with a look at how raising the federal minimum wage to $15/hour would improve the financial conditions for people whose income falls at the poverty line, it tackles the arguments against raising the minimum wage and explores means-tested benefits by looking at marginal tax rates and income thresholds. It further engages concerns that raising the minimum wage will negatively impact employment by discussing the Work Opportunity Tax Credit. This article is not an exhaustive analysis of the fight to raise the minimum wage, but it paints a picture of where the movement is headed and what we need to keep in mind on the way there.