Congressman Sandy Levin

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For Immediate Release
July 28, 2006
 
 
HOUSE POLITICS: MINIMUM WAGE BILL POISONED
Democrats Object to Political Games of Attaching Fiscally Irresponsible Repeal of the Estate Tax to the Bipartisan Minimum Wage Hike Bill
 

(Washington D.C.)- House Republicans today chose to play politics with the wages of American families by failing to bring a stand-alone Minimum Wage bill to the House floor, instead choosing to combine the needed wage increase with a controversial repeal of the estate tax. U.S. Rep. Sander Levin (D-Royal Oak), speaking in opposition to the poisonous measure, blasted Congressional Republicans on the House Floor for holding hostage a vote on raising the federal minimum wage by attaching it to a measure that would benefit very few at the expense of the needs of many working families.

"Clearly, the goal of the House Republican leadership is to poison the minimum wage increase by linking assistance for working families with additional tax breaks for the very wealthy," claimed U.S. Rep. Levin. "The Republican leadership knows that the Estate Tax can't pass on its own, but a clean Minimum Wage bill would. When you link the two bills, it means no increase in the minimum wage."

The Republican Leadership brought the minimum wage bill to the floor containing a poisonous bill in the form of a repeal of the estate tax only so moderate Republicans can claim they voted in favor of a raise in the minimum wage.

"The Majority's opposition to increasing the minimum wage and the lengths they are going to in order to prevent an increase illustrate their upside down priorities.  They've refused to address the manufacturing jobs crisis while creating giant tax breaks for the rich oil companies, fat deficits, and rising economic insecurity. Now, they want to play politics with the wages of American families by tying the minimum wage to a bill which would benefit a small number of families while hurting a large proportion of working Americans."

Democrats have been pressing the Republican Leadership for months for a vote on raising the minimum wage. Last month, Democrats successfully attached in Committee an amendment to raise the minimum wage to the FY07 Labor, Health and Human Services Appropriations Bill.  The amendment would have gradually increased the minimum wage from $5.15 to $7.25 over two years.  The minimum wage amendment passed in Committee with bipartisan support, but Republican leaders stripped the amendment from the bill indicating the minimum wage would get a vote on its own before August recess. The minimum wage has not been increased since 1997.  Adjusted for inflation, the value of the minimum wage is at its lowest level in more than 50 years, and full-time work for minimum wage generates an income that is 35% below the federal poverty level for a family of three.  In the United States, 15 million people would benefit from a raise in the minimum wage, including 3 million children. Eighty-three percent of the American public support raising the minimum wage.

The poison bill including the repeal of the estate tax will cost the American people $267.5 billion in just the first 10 years, and approximately $700 billion in the 10 years after the tax cuts would take full effect. Democrats support tax relief for small businesses and farmers, while Republicans are slashing taxes for the very wealthy, adding more debt on the backs of our children and grandchildren.  

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