Monday, December 31, 2007

MINIMUM-WAGE HIKE CLEARS HOUSE

The House on January 10 voted 315-116 to approve a bill to increase the nation's minimum wage from $5.15 to $7.25 an hour over two years. All Democrats were joined by 82 Republicans in voting for the measure, which would provide the first increase in a decade; at least 28 states have a minimum wage higher than the federal requirement. Republicans offered an alternative measure to exempt small businesses from paying the wage increase if they provide their employees access to health insurance. Rep. Buck McKeon, R-Calif., noted that Democrats objected when Republicans passed a minimum-wage hike last year as part of a bill that also included elimination of the estate tax. But House Education and Labor Committee Chairman George Miller, D-Calif., replied, "What is it you don't understand about being poor? What is it you don't understand? You are stuck at $5.15 in today's world. You can't buy the gasoline to go to work, the bread to put on the table, the milk out of the refrigerator." In the Senate, where a minimum-wage debate is expected once ethics legislation is wrapped up, Republicans are seeking to add several tax breaks, especially for small businesses. Although the underlying bill is widely expected to pass, the GOP's leverage in the 51-49 Senate may win concessions.

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By Richard E. Cohen

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