1.6% is less than the LGBTXYZ crowd.
A new study by the American Action Forum found that just 1.6 percent of American workers make at or below the federal minimum wage and argues raising the rate would do little to help the working poor.
President Barack Obama is pushing for an increase in the federal minimum wage to $10.10 an hour. However, AAF insists that the Earned Income Tax Credit (EITC) does far more to alleviate poverty.
AAF found that raising the minimum wage would fail to directly assist over 98 percent of all Americans in poverty, according to an analysis released Wednesday.
The EITC, which provides income subsidies through the tax code for low-income working families, is “much more effective at assisting the working poor than the minimum wage,” according to the report.
Those in poverty who actually make the minimum wage are a small minority. In 2012, 58.1 percent of all workers in poverty received the EITC, while only 5.3 percent earned at or below the minimum wage. Of the hourly workers who live in poverty, just 0.2 percent earn the minimum wage.
Overall, only 1.6 percent of American workers earn the federal minimum wage of $7.25 per hour.