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               Obama's Minimum Wage Plan Part of Broad US Debate

   U.S. President Barack Obama`s plan to raise the minimum wage for
   federal government contract workers sets the stage for a renewed
   Washington political fight over whether to increase paychecks for
   low-income workers across the country.
   The White House announced Tuesday Mr. Obama would sign an executive
   order increasing the pay floor for new government contractors from
   $7.25 an hour to $10.10. In 2012, the government said 16,000 federal
   workers were paid at or below the minimum wage, so his order would
   affect relatively few workers in the coming months as the government
   signs new contracts with private employers.
   But the broader debate between Mr. Obama, a Democrat in his sixth year
   as president, and his Republican opponents in Congress, is whether to
   increase the national minimum wage. That would affect about 3.6 million
   workers the U.S. says were paid at or below the minimum wage when it
   calculated the figure two years ago.
   The White House said the $10.10 an hour wage for new federal contract
   workers would boost the pay of low-income construction workers and
   military base personnel washing dishes and doing laundry. With an
   annual wage of about $21,000, it would push a family of three above the
   country`s poverty line.
   The White House announced the plan ahead of Mr. Obama`s Tuesday night
   State of the Union address to Congress. It said raising the minimum
   wage nationally would reduce poverty "without jeopardizing employment"
   and improve the morale of low-income workers. It is part of Mr. Obama`s
   call to reduce income inequality in the U.S., to narrow the gap between
   the wealthiest and poorest Americans.
   Some U.S. corporate executives agree with Mr. Obama that the minimum
   wage should be increased. But Congress rebuffed him after he also
   called for a pay boost in his 2013 State of the Union speech.
   Opponents say that increasing the minimum wage hurts businesses and
   curbs job creation. Critics of a minimum wage pay boost say some
   employers could lay off low-wage workers rather than pay them a higher
   salary.
   In the U.S., 20 of the 50 states already have mandated minimum wages
   that are higher than the current $7.25 national requirement, but all
   are below the $10.10 figure Mr. Obama is proposing. A recent CNN survey
   showed 73 percent of those polled said they favor increasing the
   minimum wage across the country.
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   [1]http://www.voanews.com/content/obamas-minimum-wage-plan-part-of-broa
   d-us-debate/1839344.html

References

   1. http://www.voanews.com/content/obamas-minimum-wage-plan-part-of-broad-us-debate/1839344.html