Help Missouri Taxpayers

Raising the minimum wage will increase the incomes of low-wage workers who frequently rely on government programs, thus increasing their self-reliance while reducing the amount of taxpayer-funded assistance they use.

A recent study showed that, because people earning lower wages are forced to make use of government programs, poverty wages for working families in Missouri alone are costing federal taxpayers more than $2.4 billion annually, and Missouri state taxpayers more than $335 million each year1

Furthermore, a 2016 study found that for every $1 increase in the minimum wage, the share of workers receiving public assistance is reduced by just over 3%. That suggests that going from $7.85 per hour to $12 per hour could reduce the share of workers receiving public benefits by close to 10%.2


1 Jacobs, K., MacGillvary. And Perry, J. (2015) The High Public Cost of Low Wages. UC Berkeley Center for Labor Research and Education.
2 Cooper, David. (2016) Balancing paychecks and public assistance. Economic Policy Institute.