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Briefs examine the effects of $15 minimum wage and the lack of a ‘benefits cliff’

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HARRISBURG, DAUPHIN COUNTY (WBRE/WYOU) — New reports show benefits of increased income from raising the minimum wage to $15/hr would greatly outweigh the loss in social benefits and higher tax payments.

The Pennsylvania Budget and Policy Center released two policy briefs today that examine the effects of a minimum wage increase to $15/hour in Pennsylvania ‘benefits cliff’ it could create.

A ‘benefits cliff’ occurs when someone gets a wage increase that causes a reduction in social benefits and an increase in taxes paid, thus resulting in a reduction in a family’s overall standard of living.

According to the briefs released today, for almost all families the increased income that comes from raising the minimum wage is greater, and in most cases, far greater than the loss in benefits and higher taxes they would pay.

READ BRIEF #1 ON EFFECT FOR GENERAL SAFETY NET PROGRAMS AND TAX CREDITS.

READ BRIEF #2 ON EFFECT FOR CHILD CARE WORKS PROGRAM.

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