Full Steam Ahead On "100 Hours" Express

House Approves Minimum Wage Hike; Thursday Vote On Stem Cells

(AP)  The House voted to raise the federal minimum wage Wednesday for the first time in a decade, to $7.25 an hour, as majority Democrats marched briskly through their 100-hour agenda at the dawn of a new Congress.

Ebullient Democrats stood and cheered as the final vote - 315-116 - was announced.

"For 10 years the lowest-paid Americans have been frozen out," said Rep. George Miller of California, berating Republicans who had refused for years to allow a vote on a stand-alone minimum wage increase.

"The little guy is not going to be forgotten any longer," said Rep. Bill Pascrell, whose district includes gritty Paterson, N.J. He estimated the increase would mean an additional $4,400 a year for a family of three.

"The small businessmen we are trying to help for the most part are little guys," countered Rep. Howard McKeon, R-Calif. He said Republicans favor an alternative coupling a minimum wage increase with tax breaks for small businesses.

Other Republicans argued that raising the minimum wage would hurt employment chances for the lowest-paid workers.

The legislation, which now goes to the Senate, would raise the current $5.15 minimum to $5.85 effective 60 days after the measure became law. The minimum would go to $6.55 a year later and $7.25 a year after that.

The White House issued a statement of opposition to the legislation as drafted. It called for the increase to be accompanied by "tax and regulatory relief to help small businesses stay competitive and to help the economy keep growing."

Senate Majority Leader Harry Reid, D-Nev., has already signaled that Democrats will accept pro-business changes. Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, told reporters that he and other lawmakers are working on between $8 billion and $10 billion in relief over 10 years.

Businesses that bring in less than $10 million a year would receive relief under one of the provisions in the emerging legislation, and the restaurant industry would be favored under another.

By contrast to the partisan debate on the wage legislation, one of the House's most cherished traditions fell without a struggle.

Speaker Nancy Pelosi, D-Calif., issued an order banning smoking in an ornate lobby just off the House chamber where tobacco smoke and political intrigue have coexisted for generations.

"We can no longer risk the health of colleagues, staff, pages, reporters and others who pass through the Speaker's Lobby each day," Pelosi said, and by midafternoon, the ashtrays were gone. Not so a portrait of John Nance Garner, cigar in hand, one of many past House speakers whose likenesses preside over the room.

There was distress across the Capitol, when 89-year-old Sen. Robert C. Byrd of West Virginia, who walks with the aid of two canes, arrived in the chamber too late to cast a vote.

Reid had cautioned senators he intended to run proceedings more efficiently. But Byrd observed that the Senate also "reveres tradition, seniority, debate, deliberation, experience and common courtesy."

The minimum wage bill is the second of six measures that Democrats intend to pass in the first two weeks of the new Congress. Legislation aimed at making the nation safer from terrorist attacks passed easily on Wednesday. The agenda for Thursday includes a measure to permit expanded federally funded embryonic stem cell research, a bill Bush has threatened to veto.

On Friday, the House is expected to pass legislation directing the administration to negotiate with drug companies for lower prices on prescription drugs for Medicare recipients. Republicans said Wednesday they believed Bush would veto that bill, as well, if it reached his desk as drafted.

Democrats have long claimed the measure would result in significant savings, but congressional budget analysts bluntly disputed that. "We anticipate that the (administration) would be unable to negotiate prices across a broad range of ... drugs that are more favorable than those obtained" under current law, said a letter signed by Donald B. Marron, acting director of the Congressional Budget Office.

The remaining measures on the early Democratic agenda would cut the interest rate on student loans and raise taxes on energy companies to pay for an effort to reduce dependence on foreign oil.

All 233 Democrats voted for the minimum wage measure, along with 82 Republicans. All 116 votes in opposition came from Republicans.

Less than a week after Congress convened under Democratic control, the minimum wage bill offered an early challenge of the party's ability to maneuver in an environment shaped by friendly outside interest groups as well as the White House and Republicans who hold 49 votes in the 100-member Senate.

House Democrats insisted that the bill pass without any relief for small businesses, and the AFL-CIO has lobbied Senate Democrats to go along. Several officials said the issue flared in this week's closed-door caucus of the rank and file, when some liberals challenged Baucus and questioned a strategy that called for early concessions to Republicans.

In response, Reid said Democrats did not have 60 votes that would be needed to pass a stand-alone minimum wage increase over a Republican filibuster, these officials added.

The final measure will be worked out in negotiations between the two houses, and it is likely that Pelosi and House Democrats will ultimately have to accept tax breaks for businesses if they are to get Bush's signature on one of their top priorities.

Under budget rules enacted last week, though, no tax legislation that clears the House can increase the deficit - meaning that the minimum wage bill would have to contain provisions to offset the costs of the tax cuts.

Inflation has eroded the minimum wage's buying power to the lowest level in about 50 years in the time since the last increase took effect. According to Labor Department statistics, 479,000 workers paid by the hour earned exactly $5.15 in 2005, the most recent estimate available. They tend to be under 25 and never married and more likely to be women, minorities and part-time workers.

More than two dozen states and the District of Columbia have minimum wages higher than the federal level. The political potency of the issue was evident last November, when proposals to raise statewide minimums passed in all six states where they came to a vote.

[melodysjazz]

Business owners who say they can't afford to give their employees a fair salary should simply go out of business because they are not being fair to their hard working employees. What business would you operate without your employees? Continue to mistreat and underpay your employees and let's see how long you will remain in business!

[melodysjazz]

In West Virginia, the minimum wage is supposed to be $5.85 currently. However, when I called the Dept of Labor, they informed me that most businesses including major restaurant chains were exempt from this law and that only the federal minimum wage was in effect for most companies which is $5.15. Throughout this state, burger fast food restaurants, which typically net millions of dollars, pay their hard working employees around $5.40 per hour. Many businesses also send their underpaid employees home when business is slow. So how do hard working employees ever get ahead? Who do the politicians think they are dealing with when they pass these laws than pertain to only a few people?

[tigert52]

An increase in minimum wage is great. I am still in high school and minimum wage won't even cover my car insurance payments, gas, and cell phone bill (even if I work 30+ hours a week). However, it will only take full effect in 26 months. By then, inflation should take care of any benefits this increase may provide to young workers like myself.

[xfactoring]

Would anyone care to explain why cbsnews left out
the part where certain businesses in Pelosi's
district are exempt from wage hikes?

[rsayad-2009]

Quite frankly, the minimum wage hike is a purely political ploy & a hidden way to raise taxes and make more money.

When the minimum wage goes up, so do all the other prices!! It may not be immediately noticable, but if you think of just wal-mart for example: If they raise minimum wage, they will raise the rest of their prices. So when their employees buy from them, the raised wage makes no difference due to the rising prices.

So why do the democrats always push for minimum wage?
#1, they get votes because they've managed to snow all those people into thinking they actually care...
#2, the income tax goes up, so the government has more taxes to play with. They get more taxes from the worker, more taxes from the employer who has to match their employees taxes, and more sales tax from the increased prices!!!

Once all this happens, our dollar continues to get inflated and lose it's value in the world market, putting us at a disadvantage... not just in trade, but for the common person that wants to travel as well. Your dollar is now de-valued.

It boggles my mind to think that the American public is too short-sighted to see this!!!

[processor2]

A $2/hour increase times 40 hrs/week times 52 weeks/year equals $4,160 PER employee PER year in extra labor costs.

If you have 11 employees (which I have), that's $45,760 per year increase in labor cost to my business.

THEREFORE, in order to pay for the minimum wage increase, I will have to lay off 3 employees in order to pay for said increase.

[... 3 employees times 7.15/hour(new rate) times 40 hours/week times 52 weeks/year equals 44,616]

IN A NUTSHELL; of my eleven employees, three will be laid off to pay for the raises for the remaining eight.

..........

PS

frankly6 - you have got to be one of the biggest dumb-a-s-s-e-s I' ve ever known. My brother's 6 year-old has more sense than you.

.................

[frankly6]

processor2

Better yet why don't you just close your business down altogether?

[bellal-2009]

If a messy desk is a sign of a cluttered mind, what then is the sign of an empty desk?"
-- Albert Einstein

Posted by truthpeeler at 07:16 PM : Jan 11, 2007

Thank you, I feel much better.

[truthpeeler]

The GOP rant that low paid employees will lose their jobs to make up for any increase in the minimum wage is the most absurd argument yet. That presumes low paid workers today really are not needed and are working only because a business is being nice. Give me a break!

"If a messy desk is a sign of a cluttered mind, what then is the sign of an empty desk?"
-- Albert Einstein

[processor2]

A $2/hour increase times 40 hrs/week times 52 weeks/year equals $4,160 PER employee PER year in extra labor costs.

If you have 11 employees (which I have), that's $45,760 per year increase in labor cost to my business.

THEREFORE, in order to pay for the minimum wage increase, I will have to lay off 3 employees in order to pay for said increase.

[... 3 employees times 7.15/hour(new rate) times 40 hours/week times 52 weeks/year equals 44,616]

IN A NUTSHELL; of my eleven employees, three will be laid off to pay for the raises for the remaining eight.

..........

[randalds]

I can see your point Bella and I must admit that you're one of the few people here that I can agree to disagree with. I think that the idea that a minimum wage raise means that they'll in effect have less buying power however only works as a model if all companies of all sizes in all states paid people the same wages. And since I live in California which has a higher minimum wage itself it really doesn't affect us here much anyway.

Oh and basically I'm much more libertarian then democrat myself.

[doc18d]

The Federal Govt. should stay out of this. As it has been stated, several states already have raised the minimum wage. This is undoubtedly because there cost of living is higher in those areas. As it should be these states are taking care of their people. Why should an employer in the lowest cost of living areas be forced to pay the same wages as one in a high cost area. As usual the sociolibral dems are making sure that big brother takes care of everyone. I personally prefere to take care of myself. If I want a higher paying job I will pay attention in school. I will not blame the school for my failure. I will take responsibility for myself, and I will succeed. By the way, where did you get the business model of "the more employees you have the more money you make". You only prosper if you have the right number of employees to efficiently do the job.

[random_radar]

xccoach1 said,

"Keep up the good work processor because I will hire those people you fire if they are any good"

And if they are not any good, even you will not hire them. And you will decide based upon whether they are worth the minimum wage.

And if you won't hire them, that will leave them on the street earning nothing--which is less than minimum wage.

People earn what they are worth because of competition in the job market for employees. You admitted that by your comment. Minimum wage laws simply keep the worst workers from being able to work at all.

[macusweil]

"tax and regulatory relief to help small businesses stay competitive and to help the economy keep growing."

Great idea GOP!!-- wage increases for the lowest paid & tax relief for the small business. Where were you the past 10 years, oh yes, handing out HUGE tax breaks to the top 1% and BIG business while increasing the cost of living for the entire middle class. Guess now that the FREE golf trips have been cut out the Republicans are starting to think more clearly.

[xccoach]

processor2,
No offense processor, but you must be a pretty poor business man. You do not hire workers to give them jobs, but rather to make more money for yourself/company. That is what ANY good business person does. The rule of thumb is the more people you hire, the more money you will make.

If you fire those people (which I doubt you will), you end up with less productivity, less sales and less customer service.

Now that is how you run a business into the ground....

Keep up the good work processor because I will hire those people you fire if they are any good. More money for me.

[shingles1]

You know, this argument that raising the minimum wage will cause layoffs is trotted out EVERYTIME the topic comes up. Maybe this is true. But does anyone have any REAL any evidence to show that this is actually what happens?

Point #1:
If everybody is forced to raise their wages at the same time then no one suffers a competitive disadvantage.

Point #2:
San Francisco has a minimum wage of $9 YET has a lower unemployment rate than the national average.

Again, I'd be interested in seeing/hearing some actual statistics on this. You constantly hear "the sky will fall" but then never see any evidence that sky really will fall.

[processor2]

A $2/hour increase times 40 hrs/week times 52 weeks/year equals $4,160 PER employee PER year in extra labor costs.

If you have 11 employees (which I have), that's $45,760 per year increase in labor cost to my business.

THEREFORE, in order to pay for the minimum wage increase, I will have to lay off 3 employees in order to pay for said increase.

[... 3 employees times 7.15/hour(new rate) times 40 hours/week times 52 weeks/year equals 44,616]

IN A NUTSHELL; of my eleven employees, three will be laid off to pay for the raises for the remaining eight.

..........

[antoniof123]

I have heard the same argument for over 40 years it is not true. The biggest tax increases have resulted in the lowest unemployment rates. Clinton's tax increase in the 90's. Each time I hear the same argument if you raise the pay then people will be laid off. Hey pull your heads out of the dirt people are being laid off now Ford motor company. Keep up with your silly talk the rich for the last 12 years have been rewarded and like with Home Depot, and how about United Healthcare need I continue. Greed and lack of control on the industries that are the back bone of this country. It started with the Savings and Loans in the 80's did you forget that one. It continues with Enron. Same old same old.

[neocon04]

Which do you think is better? 50 jobs at 5.15 an hour or 35 jobs at 7.50 an hour?

[mjv2944]

We are in a perfect neocon world, which took 12 years to build, where they worship at the altar of greed. Repubs have sold this country down the drain, all for the sake of profit. We need a champion for working people to come forward and lead us out of this dark dark period in our history. Two main goals of repubs have been to kill social security, which they have tried to do since its inception, and to establish two class system, the have and the have nots. Right now their batting .500.