Minimum wage increase tied to tax cuts

Well. . .here they go again. . .

Republican leaders are willing to allow the first minimum wage increase in a decade (from $5.15 to $7.25 per hour, phased in over the next three years ) but only if it's coupled with a cut in future inheritance taxes on multimillion-dollar estates. The plan would also renew several popular tax breaks, including a R&D credit for businesses, and deductions for college tuition and state sales taxes. The clear aim of this maneuver is to defuse the minimum wage issue as a campaign issue for Dems , while serving the base with the GOP's long-sought goal of permanently cutting taxes on millionaires' estates.

Democratic senators were quick to fire back:

"It's political blackmail to say the only way that minimum wage workers can get a raise is to give a tax giveaway to the wealthiest Americans.Members of Congress raised their own pay -- no strings attached. Surely, common decency suggests that minimum wage workers deserve the same respect."
- Sen. Edward Kennedy

"It's outrageous the Republican Congress can't simply help poor people without doing something for their wealthy contributors."
- Rep. Tim Ryan

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. In a rare moment of clarity, Rep. Steve LaTourette(R-Ohio)who pushed for the bill, conceded that "We weren't going to be denied. How can you defend $5.15 an hour in today's economy?"

GOP leaders also 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. 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.

Congress last voted to increase the minimum wage during the hotly contested campaign year of 1996. A 40 hours per week job at minimum wage makes $10,700, which is below the poverty line for workers with families. 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.

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.

Repubican 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. As well they should. . .