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February 18, 2014 AT 2:05 PM
The Congressional Budget Office estimated on Tuesday that raising the federal minimum wage to $10.10, as President Barack Obama and Democrats in Congress are proposing, could result in about 500,000 jobs being lost by late 2016. The non-partisan CBO also said that increasing the hourly wage could reduce budget deficits by a small amount for several years, but then increase them slightly in later years. The current minimum wage is $7.25 an hour.