A look at some of the facts and political circumstances behind President Barack Obama’s claims
A look at some of the facts and political circumstances behind President Barack Obama’s claims in Tuesday’s State of the Union speech:
OBAMA: “We’ll need Congress to protect more than 3 million jobs by finishing transportation and waterways bills this summer. But I will act on my own to slash bureaucracy and streamline the permitting process for key projects, so we can get more construction workers on the job as fast as possible.”
THE FACTS: Cutting rules and regulations doesn’t address what’s holding up most transportation projects, which is lack of money. The federal Highway Trust Fund will run out of money in August without action. To finance infrastructure projects, Obama wants Congress to raise taxes on businesses that keep profits or jobs overseas, but that idea has been a political nonstarter.
OBAMA: “In the coming weeks, I will issue an executive order requiring federal contractors to pay their federally funded employees a fair wage of at least $10.10 an hour, because if you cook our troops’ meals or wash their dishes, you shouldn’t have to live in poverty.”
THE FACTS: This would be a hefty boost in the federal minimum wage, now $7.25, but not many would see it. Most employees of federal contractors already earn more than $10.10. About 10 percent of those workers, roughly 200,000, might be covered by the higher minimum wage. But there are several wrinkles. The increase would not take effect until 2015 at the earliest, and it doesn’t apply to existing federal contracts, only new ones. Renewed contracts also will be exempt from Obama’s order unless other terms of the agreement change, such as the type of work or number of employees needed.
Obama also said he’ll press Congress to raise the federal minimum wage overall. He tried that last year, seeking a $9 minimum, but Congress didn’t act.