Posted on 07/28/2006 10:03:38 AM PDT by new yorker 77
Congress would pass an increase in the minimum wage before leaving Washington for vacation, but only as part of a package rolling back taxes on the heirs of multimillionaires, a Senate leadership aide said Friday.
The GOP package would also contain a popular package of expiring tax breaks, including a research and development credit for businesses, and deductions for college tuition and state sales taxes.
The wage would increase from $5.15 to $7.25 per hour, phased in over the next two years, the aide said.
The maneuver is aimed at defusing the wage hike as a campaign issue for Democrats while using its popularity to spur enactment of the Republican Party's long-sought goal of permanently cutting taxes on millionaires' estates.
But it seemed certain to provoke outrage from Democrats clamoring for a measure devoted solely to raising the minimum wage.
"It's outrageous the Republican Congress can't simply help poor people without doing something for their wealthy contributors," said Rep. Tim Ryan (news, bio, voting record), D-Ohio.
House lawmakers were to discuss the package at an early afternoon session, while the Senate GOP aide professed confidence the bill could advance through the chamber next week.
The aide asked not to be identified publicly because of the ongoing closed strategy sessions on the bill.
"It's the one chance for Democrats who want to get a minimum wage increase," the aide said.
The move comes after almost 50 rank-and-file Republican lawmakers pressed House leaders — who strongly oppose the wage hike and have thus far prevented a vote — to schedule the measure for debate. Democrats have been hammering away on the wage hike issue and have public opinion behind them
"We weren't going to be denied," said Rep. Steve LaTourette, R-Ohio, a leader in the effort. "How can you defend $5.15 an hour in today's economy?"
It was a decade ago, during the hotly contested campaign year of 1996, that Congress voted to increase the minimum wage. A person working 40 hours per week at minimum wage makes $10,700, which is below the poverty line for workers with families.
In advancing the tax plan, GOP leaders excluded a measure popular with small businesses that would make it easier for small businesses and the self-employed to band together and buy health insurance plans for employees at a lower cost.
That idea was blasted as a "poison pill" by Democrats and labor unions. The small business health insurance bill exempts new "association health plans" from state regulations requiring insurers to cover treatments such as mental health and maternity care. And opponents fear they would offer inferior prescription drug benefits.
Democrats have made increasing the wage a pillar of their campaign platform and are pushing to raise the wage to $7.25 per hour over two years. In June, the Republican-controlled Senate refused to raise the minimum wage, rejecting a proposal from Democrats.
It's long been clear that there is wide support for the wage increase in the House, but Republican leaders have a general policy of bringing legislation to the floor only if it has support from a majority of Republicans. Perhaps one-fourth of House Republicans support the wage increase.
Inflation has eroded the minimum wage's buying power to the lowest level in about 50 years. Yet lawmakers have won cost-of-living wage increases totaling about $35,000 for themselves over that time.
Lawmakers fear being pounded with 30-second campaign ads over the August recess that would tie Congress' upcoming $3,300 pay increase with Republicans' refusal to raise the minimum wage.
Copyright © 2006 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten or redistributed without the prior written authority of The Associated Press.
Copyright © 2006 Yahoo! Inc. All rights reserved.
FYI
Ugh. This is my congresscritter.
Steve, the fact that almost no one makes minimum wage anymore, not even burger flippers, is a good thing.
HAAAA! Looks like Congressional Republicans are FINALLY learning how to play the game
Personally, I think this is pathetic. I'm tired of seeing pols drown one proposal by attaching something only semi-related to it. Stick to one topic - have one vote on raising the minimum wage, and one vote on estate taxes. If you want to negotiate to strike deals and get votes, that's fine. But tying these things together IMO is done mostly so as to have some bogus claim for campaign commercials ("see, I voted for a minimum wage hike, and my opponent voted against it!" while not mentioning that they made the bill so intolerable to the opponent that there was no way they would vote for it).....
Ok... enough venting... :)
Of course we'll then need a federal budget item for more job training, as many businesses will only be able to afford experienced people and not 'trainee' level help. According to the rhetoric, the US simultaneously has too many people willing to work for low wages, and not enough people willing to work for low wages.
I think I'm going to enjoy my 10% tax cut this year.
This could be a smart move, as long as they never actually enact a minimum wage increase. That would wreak havoc on the economy and force more people out of work.
Hell, if you can't buy a full tank of gasoline these days, you're not a millionaire! With the average new home prices, and all the 401K's, hmmmm... seems like most that are left are on welfare!
I do like the move, and the Ohio Dems would be neutralized from using this in November.
It's very clever.
I just hate seeing economic ignorance from my elected officials. Especially one I'll see in person next month. Maybe I should present him with a book on economic from Thomas Sowell.
The reality is that the rich do not pay the inheritance tax anyway. Just like when taxing the gain on your house existed, no one paid it. So lets be honest about this tax and get rid of it.
Congratulations, America's poor - you're going to get shafted, again.
Minimum wage is 'minimum wage.' Raise it, and you ensure millions around the nation will never rise above that amount, whereas now, they're pushing well over $11 an hour (the 'courtesy' rate for illegal day laborers is $12.50 an hour, $15 if you're in an area where they've been semi-unionized by socialists.)
Leave minimum wage alone. When liberals bring it up, ask everyone - who here wants to earn minimum wage? Wait, raise your hand, if you, someone in your family, or someone you know makes minimum wage. Nope, can't suspect it, you gotta know. Right. Most people don't, because most people today won't accept it, but when this raise goes into effect, that's what they're gonna get.
hehe Good idea.
While I'm not very happy that they are screwing with the minimum wage (there's something just NOT right about having a mandatory wage, this isn't Soviet era Russia after all), but I DO like the prospects of a tax cut if we are going to have to deal with it.
Maybe the Economy will get a boost?
For those keeping score, the libs have tied minimum wage increases to the next congressional pay raise and the republicans are now tieing them to tax cuts. Me thinks this will pass.
I'm certainly not a Gates, but I set up a "family trust" long ago. I own little property these days. I visit a lot of foundation stuff, thought!
I have paid more in taxes than many people earn. I have four children, and 5 grands. They get the use of my meager help! The gum't can get the Mexicans to pay their bills!
"It's outrageous the Republican Congress can't simply help poor people without doing something for their wealthy contributors,"
Hah Hah!
Do you know how the USofA was supposed to be funded?
Then I see this as a done deal. (a bad deal IMO). Less entry/summer jobs, higher costs for consumer.
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