Josh Hawley proposes minimum wage 'alternative' that would punish non-citizens and people working two jobs
Sen. Josh Hawley (CSPAN2)

Sen. Josh Hawley (R-MO) has proposed a bill that could kill efforts to increase the federal minimum wage to $15/hour.

Axios reported that Hawley's "alternative" plan would provide a refundable tax credit to people making less than $16.50 per hour. Workers would receive 50% of the difference between their weekly pay and the $16.50 threshold. For example, workers making $8 per hour would receive an additional $4.25 in tax credits.

The complicated plan would place the burden for income increases on the federal government instead of individual business.

The plan also comes with some important caveats. Only U.S. citizens would be eligible for the tax credits, meaning green card holder and undocumented immigrants would lose out.

Additionally, people who work two jobs would see fewer benefits because the plan only applies to 40 hours of work.

Hawley is pitching the proposal as "The Blue Collar Bonus." His team expects the plan to cost $200 billion.