Democrat presidential hopeful and billionaire Tom Steyer has vowed to raise the federal minimum wage to $22 per hour should he defeat other Democrat hopefuls and President Donald Trump in November.
According to a report from Fox News, Steyer made the announcement during a campaign block party on Sunday while campaigning in South Carolina. Both Sen. Bernie Sanders (I-VT) and Sen. Elizabeth Warren (D-MA) have also released plans to raise the minimum wage to $15 per hour.
While many states have independently raised the minimum wage to compete with the cost of living, the current minimum wage sits at $7.25 per hour at a federal level.
According to a July 2019 report from the Congressional Budget Office, a minimum wage hike to $15 per hour could negatively impact the American people, resulting in 1.3 million workers losing their jobs.
The report also detailed how it could impact small businesses.
“A higher minimum wage reduces the family income of business owners to the extent that firms’ profits are reduced,” the CBO report stated. “Real income is also reduced for nearly all people because increases in the prices of goods and services weaken families’ purchasing power.”
The report added, “Over time, as businesses increasingly pass their higher costs on to consumers, the losses in business income diminish and the losses in families’ real income grow.”
According to Real Clear Politics voting averages, Steyer is polling second in South Carolina, following former Vice President Joe Biden. Over the past eight months, Steyer and his campaign have spent $14 million on advertisements throughout the state.