Rangel May OK Tax Cut, Minimum Wage Link

House Ways And Means Chairman Says He Is Willing To Link Cuts To Wage Hike To Get Bill Passed

(AP)  The chairman of the House taxwriting committee said Tuesday he would be willing to link tax breaks for small business to a hike in the minimum wage but that the $8 billion tax package adopted by the Senate was unacceptable.

The comments by Rep. Charles Rangel, D-N.Y., chairman of the House Ways and Means Committee, were the first public acknowledgment by a top House Democrat that some tax cuts might be necessary to win approval of an increase in the federal wage floor.

“I'm prepared to send something over there for (the Senate) to be able to attach a tax package,” Rangel said in an interview with reporters. “The problem, which I can't answer, is what would I accept.”

The House last month approved an increase in the minimum wage from $5.15 to $7.25 over two years. The Senate last week passed the same wage hike but attached tax cuts for businesses that Republicans demanded to win their vote. The two bills would have to be reconciled in a House-Senate conference committee.

House Democrats, encouraged by labor organizations, have been pressing the Senate to pass a “clean bill” without any added provisions. But Senate Democrats argued that they need Republican votes to get the 60 votes required to overcome a filibuster or other procedural delays.

Rangel's view is especially important because constitutional precedents require tax legislation to originate in the House. Without Rangel's cooperation, the Senate tax plan would have a difficult time surviving.

But Rangel left no doubt that he would reject the Senate tax package — worth $8.3 billion over 10 years. He refused to speculate on what types of tax cuts would be acceptable and placed the burden for lowering the tax package on Senate Majority Leader Harry Reid, D-Nev., and the chairman of the Senate Finance Committee, Max Baucus, D-Mont.

“When we start with $8 billion my hearing aid is off,” he said. “I see no reason to waste anybody's time.”

[pakaal]

Republican lawmakers must be so happy to be able to stop lower income workers from getting more pay.

I guess Congressional "Haves," getting more than $170,000 each, figure a $9,888 a year income is plenty for folks (aka "Have Nots") to live on.

[motherjones-2009]

So Congress can't increase the minimum wage after a decade without sneaking more tax cuts into the pot. Just last week, 28 senators (all republicans, of course) voted to completely eliminate the federal mimimum wage. It's a shame that ideology, not decency and common sense, is what drives so many of our elected officials.

[diverinnl]

I don't agree with most of Rangel's politics but I have to admit that he is one of those few who is willing to communicate the issues and at least listen to all points before making a decision. I will give him credit for that.

[dallison7]

YOU GO CHARLIE!