Could a $15 Minimum Wage Save Social Security?
Lawmakers are fighting to raise the minimum wage to $15 an hour as part of a whopping $1.9 trillion coronavirus relief bill. The hope is that in doing so, it will lift more families out of poverty and give them an opportunity to reach a place of financial stability. The current proposal in the works wouldn't boost the minimum wage overnight, but rather, gradually increase it to $15 (up from $7.25) by 2025.
But while a more robust minimum wage would no doubt work wonders for a lot of households, it could also serve a secondary purpose that's extremely important -- saving Social Security.
Social Security gets the bulk of its revenue from payroll taxes. In the coming years, however, that revenue stream is expected to decline as baby boomers leave the workforce in droves and too few replacement workers enter it. The situation is so dire that Social Security may need to slash benefits within 15 years if lawmakers don't intervene and find a way to pump more money into the program.
Source Fool.com
