Congressional Democrats have released new details on legislation that would lift the minimum wage to $15 an hour as supported by President Joe Biden in phases over the next four years, writes Eric Morath for The Wall Street Journal.

The minimum wage would first increase to $9.50 an hour the day the proposed law would become effective. After that, annual increases would be implemented until $15 an hour is achieved.

Democrats say that increasing the minimum wage will help lift the lowest-wage workers out of poverty. Many of them currently qualify for government aid despite working full time.

The increase would also give them more spending power which would be beneficial for the overall economy.

However, Republicans are concerned that $15 an hour is too high for rural areas as well as regions with a lower cost of living. They believe that setting a wage floor at that level could result in businesses not hiring or cutting worker hours.

Meanwhile, business lobbying groups that represent small and large businesses are open to an increase, but not as high as $15.

Read more about the proposed minimum wage at The Wall Street Journal by clicking here.