Raising the federal minimum wage to $10.10 from its current $7.25 level would save taxpayers money on programs such as SNAP. This would happen because SNAP is means tested; SNAP benefits decline 30 cents for every $1 increase in family earnings and phase out entirely at about the federal poverty level. But, a minimum wage increase could, some people argue, reduce employment and add to the number of unemployed, which would increase the number of SNAP recipients. Overall though, an analysis of SNAP data from 2012 and current minimum wages reveals that US taxpayers could save approximately $4.6 billion per year, or $46 billion over 10 years, in SNAP costs.
Source: Center for American Progress, 3/5/14, SNAP Savings; 3/4/13, Minimum Wage
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