No Minimum Wage Increase . . .

25 01 2007

Filed under: Minimum Wage, Politics, Taxes

. . . Yet.

Pelosi & Friends’ Tazmanian Devil, whirlwind of work, that included a sloppy bill to raise the minimum wage by $2.10 without any tax incentives for small businesses, proves that forcing bills through Congress is going to require Democrats to allow debate with Republicans. The Senate did not pass the bill, despite claims of immense of popularity by Pelosi.

The 54 “yes” votes were six short of the number needed to shut off debate and move on to consideration of the bill, which easily passed in the House two week ago. That bill would increase the wage to $7.25 from the current $5.15 in three steps, but without tax breaks. Today’s vote, while disappointing to those who want to raise the minimum wage at once and with no accompanying tax provisions, was hardly a surprise. A substantial number of senators had indicated they wanted to tie a wage increase to tax breaks for small businesses, to help offset the costs of the increase.

Next, the Senate will debate what kind of tax breaks to attach to a wage increase. Then, the Senate will have to agree with the House. President Bush has signaled that he would sign a bill providing for a wage increase with related tax breaks.

Captain Ed rolls his eyes at the continiuous cycle caused by such socialist ideas:

In the end, both chambers will likely approve an increase with some tax relief attached. The political benefits of doing both, separately or together, are too attractive for politicians to eschew for long. Both parties will claim some measure of victory in the compromise, and the Republic will move onto the next political standoff.

The only result will be the inflation that this will cause and the loss of lower-wage jobs that always accompany these minimum-wage increases and the resultant erosion of buying power — which will prompt the economic meddlers in Washington to insist on another increase in the next three or four years.

I’ve heard it said that the people are only safe when Congress can’t act. And that’s certainly true here. Democrats have the bad reputation of often seeking short-term solutions to long-term problems. They can’t see past the “next paycheck”. Republicans, on the other hand, are more long-term in their thinking. Republicans usually offer short-term “band-aids” and a more complete long-term idea to repair damages and prevent further generations from experiencing hardships.

It’s no secret that minimum wage increases, especially without tax breaks, cause inflation which decreases buying power. But Democrats will snub free enterprise any day because it hinders their socialist agenda. It’s nice to have some Republicans left in office that know this and will force them to come back to mainstream America if they want to get anything accomplished.




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