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Congressman Phil Roe |
by Congressman Phil Roe - All
Americans deserve to be compensated fairly for the work they do. Having
previously helped to manage a business for over 30 years, I know from
firsthand experience nothing makes you feel better than knowing an
employee will be able to live comfortably and retire with peace of mind
about their financial security.
Washington
needs to get out of the way, keep taxes low, reduce unnecessary
regulations, and pave the way for economic growth and job creation.
That’s why I was proud to support the Tax Cuts and Jobs Act, which
resulted in 3.1 percent GDP growth in 2018. It seems like common sense
to me to keep this going. Instead, House Democrats have a radical
proposal to more than double the minimum wage to $15 per hour as part of
their bill,
H.R. 582, the
Raise the Wage Act of 2019, which I voted against when it was
considered in the House Education and Labor Committee.
According to an
analysis of the bill, this raise will cost two million jobs and will hit
the oldest, youngest, and lowest-skilled employees the hardest. The
worst aspect of this legislation is that it treats small towns and rural
areas as if they have the same labor markets and cost of living as
large metropolitan urban areas. Some estimates indicate the
cost-of-living in Washington, D.C. is
96.1 percent higher than Johnson City, Tennessee. Even within the state of Tennessee, the median home cost in Nashville is
189.4 percent higher than
Newport. Cities and towns across America are different – different
jobs, opportunities and costs-of-living – which is why a national $15
per hour minimum wage is so harmful.
People
are now optimistic about our country’s financial future thanks to the
economic growth rate and record low unemployment over the past two
years. This legislation could undo this progress. In Tennessee, it is
estimated that raising the wage to $15 an hour will cost 66,313 jobs. Even in a large city like Seattle, a
study concluded
that a locally implemented minimum wage of $13 an hour – $2 shy of what
the Democrats proposed – caused reduced hours in low-income jobs. These
proposals all too often hurt the very individuals the bill’s supporters
claim they would help.
Small
businesses are the true backbone of rural America. That’s why I believe
we need to carefully consider the impacts of such a sweeping bill
before allowing it to go into effect. When the House Education and Labor
Committee held a markup on H.R. 582, I offered an amendment that would
delay implementation until the Government Accountability Office –
Congress’ nonpartisan investigative arm – conducts a study to determine
the effects this bill would have on rural areas like East Tennessee. If
more than 200,000 jobs would be lost because of H.R. 582, its
implementation would be halted. While most East Tennesseans think it’s
common sense to stop job-destroying legislation, committee Democrats
defeated my amendment.
Instead
of rushing legislation through the House that will do nothing but limit
opportunity, we should work toward implementing policies that provide
tools for all people to seek jobs with higher wages. In Morristown, the
Tennessee College of Applied Technology provides students with an
education that hosts a 75 percent student completion rate, 99 percent
licensure rate for programs that require licensure and 97 percent rate
of success in employing students in their field of study. Most
impressively, students graduate with no student loan debt. In addition,
in 2020, the University of Tennessee will be providing free tuition to
Tennessee residents that come from a low-income household, encouraging
more individuals to better their future through education. These
students are getting the skills they need at our state to get jobs that
pay much higher than the minimum wage.
Tennessee
has worked hard as a state to help provide opportunities for its
residents to attain the education and training needed to excel in higher
paying jobs. Simply put, arbitrarily increasing the federal minimum
wage to $15 per hour does nothing but inhibit job growth for both
employers and employees. Instead, we should be working on legislation
that promotes economic opportunity for all Americans.