American News Feb 21, 2021 4:27 PM EST

WATCH: Dem Rep admits he doesn't care about independent small businesses

"We don't want low wage businesses, I think most successful small businesses can pay a fair wage," Khanna said.

WATCH: Dem Rep admits he doesn't care about independent small businesses
Noah David Alter Toronto
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Congressman Ro Khanna (D-CA) took to CNN on Sunday morning to discuss the possibility of increasing the minimum wage to $15 per hour.

"They shouldn't be doing it by paying people low wages, we don't want low wage businesses, I think most successful small businesses can pay a fair wage," Khanna said.

Khanna was asked how small businesses which are already struggling to pay their bills would survive a minimum wage increase.

"They shouldn't be doing it by paying people low wages, we don't want low wage businesses, I think most successful small businesses can pay a fair wage," Khanna said.

"If you look at minimum wage, it increased with worker productivity until 1968 and that relationship was severed," Khanna continued. "If workers were actually getting paid for the value they were creating, it would be up to $23."

"I love small businesses, I'm all for it, but I don't want small businesses that underpay employees."

The federal minimum wage in the United States currently sits at $7.25 per hour, although it is higher in some states and individual municipalities. President Joe Biden has expressed a commitment to getting the minimum wage increased to $15 per hour by 2025.

The potential move has been criticized by Republicans, who argue that it would put many Americans out of work as some businesses cannot afford to pay $15 per hour.

Others have also criticized it as a one-size-fits-all approach. Cost of living ranges drastically across American states, and while a $7.25 wage may not be a livable wage in New York City, it is not the same case for a state such as Mississippi.

In a study conducted by the Congressional Budget Office, they found that increasing the minimum wage to $15 per hour would lift 0.9 million people out of poverty, place 1.4 million Americans out of a job, and would increase the US budget deficit by $54 billion.

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