Sunday, February 04, 2007

The left hand still isn't talking to the other left hand

I told you last week about how the Senate wasn't going to pass a straight minimum wage increase like the House did. Sure enough, they passed a minimum wage increase tied to tax cuts for small businesses. And folks in the House are none too pleased.

At issue are tax breaks, worth $8.3 billion over 10 years, that the Senate included in its bill to help small businesses offset the cost of paying higher wages. The Senate bill passed Thursday by an overwhelming 94-3 vote. A House bill that breezed through last month contained no tax cuts.

How the conflict is resolved remains unclear, though party leaders in the House and Senate said they were certain the minimum wage would ultimately become law.

Senate Democrats say they need the tax cuts to win Republican support to overcome procedural blocks against the legislation. It takes 60 votes in the 100-member Senate to cut off debate on legislation. There are 49 Republicans in the Senate.

House Democrats on Friday continued to hold out for a "clean" bill without tax breaks and urged Senate Democrats to challenge Republicans to vote against a wage-only bill.

"We believe that this bill ought to move on its own merits and be sent to the president," House Majority Leader Steny Hoyer said. "We're hopeful that that will happen."

Hoyer said he was not "drawing a line in the sand" but said the minimum wage and the tax breaks "don't necessarily need to be attached."
Hey, Representative Hoyer, don't attach them. Go ahead and draw that line the in sand. In fact, just move ahead without any tax breaks at all. Please. That way, we'll avoid this minimum wage increase stupidity, and the unemployment rate will remain low.

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