House Tackles Minimum Wage
House Democrats are circulating a petition intended to force a floor vote on a bill to increase the minimum wage by $1 over two years. Republicans insist it can't be done without pro-business tax breaks.
"I think we will have a proposal that will have broad bipartisan support," said Rep. Rick Lazio, R-N.Y., part of a group of lawmakers designing the GOP plan. "We want to increase take-home pay for those at the bottom of the ladder while not punishing the businesses that create their jobs."
But Democrats accused the GOP of stalling on a measure to raise the minimum wage from $5.15 to $6.15 an hour and began circulating a document Tuesday known as a "discharge petition" that would force House floor action if at least 218 members sign on.
"While Americans are putting in overtime, Republicans in Congress are wasting time," said Rep. David Bonior of Michigan, the second-ranking Democrat in the House. "It shouldn't take a discharge petition for Congress to consider this."
Although Democrats don't expect enough Republicans to sign the petition and force floor action, it could turn up political heat for the GOP to act particularly moderates with large blue-collar constituencies.
"Refusing to provide for a decent living wage is part of this Republican Congress' pattern of contempt for working families," said Rep. Charles Rangel, D-N.Y.
Republicans concede that the minimum wage bill would pass if it got to a floor vote. Instead of simply handing Democrats one of their signature issues, Republicans want to put their stamp on it with a tax package filled with business sweeteners.
"A minimum wage vote this year gives you an opportunity to give some small-business tax relief this year," said Rep. Roy Blunt, R-Mo.
The major tax issue to be decided is whether to reduce or begin to phase out the estate tax, a top priority for small business owners. A gradual repeal of the estate tax was part of the 10-year, $792 billion tax cut vetoed by President Clinton.
Other likely candidates include immediate 100 percent deductibility for insurance premiums paid by the self-employed, an increase in the deduction for business meals, several provisions expanding pensions and an increase from $19,000 to $30,000 in the limit on the amount businesses can deduct for certain expenses.
Rangel said most Democrats would oppose the tax package if it spends part of the projected budget surplus, just as they opposed the big GOP tax cut and smaller tax reductions. Mr. Clinton and the Democrats say the surplus should first go to shore up Social Security and Medicare and to ensure adequate spending on important programs.
Voting against a minimum wage increase coupled with the GOP tax package might be politically painful for many Democrats, but Rangel said they would stick to their position that tax cuts must be paid for in other ways.
"If you set a princile and you believe in it, you've got to be consistent," he said.