CCAGW Joins Coalition Opposing Federal Minimum Wage Increase | Council For Citizens Against Government Waste

CCAGW Joins Coalition Opposing Federal Minimum Wage Increase

Letters to Officials

June 23, 2021

Dear Members of Congress,

 We, the undersigned organizations representing millions of Americans nationwide, write in blanket opposition to any increase in the federal minimum wage, especially in such a time when our job market needs maximum flexibility to recover from the havoc wreaked on it by the government's response to the COVID-19 pandemic. Workers must be compensated for their labor based on the value that said labor adds to their employer. Any deviation from this standard is harmful to workers and threatens jobs and employment opportunities for all workers.

 Whether it be to $11, $15, or any other dollar amount, increasing the federal minimum wage further takes away the freedom of two parties to agree on the value of one’s labor to the other’s product. As a result, employment options are restricted and jobs are lost. Instead, the free market should be left alone to work in the best interest of employers and employees alike.

 While proponents of raising the minimum wage often claim to be working in service of low-wage earners, studies have regularly shown that minimum wage increases harm low-skilled workers the most. Higher minimum wages inevitably lead to lay-offs and automation that drives low-skilled workers to unemployment.

 The Congressional Budget Office projected that raising the minimum wage to $15 would directly result in up to 2.7 million jobs lost by 2026. Raising it to $11 in the same time frame - as some Senators are discussing - could cost up to 490,000 jobs, if such a proposal is paired with eliminating the tip credit as well. Even an $11 minimum wage with a $5.50 tipped wage would cost nearly 400,000 jobs. Tipped workers themselves overwhelmingly oppose such efforts. 

Proponents of raising the minimum wage also contend that doing so is the best way to “fight poverty” in America. This couldn’t be further from the truth. 

Research out of Cornell University reveals that minimum wage increases are not related to decreases in poverty rates and cost low-income workers their jobs. Furthermore, other research published in Harvard Business Review demonstrates that minimum wage increases actually lead to lower worker compensation.

 It is no surprise, then, that while the minimum wage was being regularly increased in the period between 1970 and 1997, the poverty rate remained consistently between 11 and 15 percent. 

Moreover, many minimum wage earners receive non-wage benefits, and increasing the federal minimum wage disincentivizes employers from offering these benefits critical to compensation. 

The best way to fight poverty is to allow Americans to secure jobs they need and want, which simply cannot be done if job opportunities and flexibility are stifled by arbitrary, one-size-fits- none minimum wage requirements. The best “living wage” is the one that markets demand.

 For these reasons, we urge you to oppose any increase in the federal minimum wage. 


 Adam Brandon 
President, FreedomWorks 

Seton Motley 
President, Less Government 

Connor Boyack 
President, Libertas Institute 

Andrew Langer 
President, Institute for Liberty 

Ryan Ellis
President, Center for a Free Economy 

David McIntosh
President, Club for Growth 

David Williams 
President, Taxpayers Protection Alliance 

Andrew F. Quinlan 
President, Center for Freedom and Prosperity 

Dr. Robert McClure III 
President & CEO, The James Madison Institute 

Wayne Hoffman 
President, Idaho Freedom Foundation 

Carrie L. Lukas 
President, Independent Women’s Forum 

Heather R. Higgins 
CEO, Independent Women’s Voice 

Vance Ginn, Ph.D. 
Chief Economist, Texas Public Policy Foundation 

James Taylor 
President, The Heartland Institute 

Michael Saltsman 
Managing Director, Employment Policies Institute 

Victor Riches 
President & CEO, Goldwater Institute 

Jon Caldara 
President, Independent Institute 

Grover Norquist
President, Americans for Tax Reform 

Tom Schatz 
President, Council for Citizens Against Government Waste 

Alfredo Ortiz
President, Job Creators Network 

Jenny Beth Martin 
Honorary Chairman, Tea Party Patriots 

Garrett Bess 
Vice President, Heritage Action for America 

Lisa B. Nelson 
CEO, American Legislative Exchange Council 

CJ Szafir 
President, Institute for Reforming Government 

Iain Murray 
Vice President for Strategy, Competitive Enterprise Institute 

Brandon Arnold 
Vice President, National Taxpayers Union 

Mario H. Lopez 
President, Hispanic Leadership Fund 

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Letter Type: 
Coalition Letters

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