Senate Rejects Minimum Wage Raise Without Tax Cuts for Businesses

The proposal to raise the minimum wage without cutting taxes for businesses has been defeated in the U.S. Senate. Opponents of the bill filibustered. On January 24, a vote was taken on whether or not to end the filibuster and force a vote on the legislation. Only 54 senators voted in favor of cloture (ending the filibuster) and so the legislation has died.

Now the Senate is considering another proposal to raise the minimum wage, this time with tax-cuts for businesses. As the AFL-CIO explains, this is based on--and perpetuates--the false idea that businesses need tax cuts in order to afford a wage raise.

The Senate is expected to pass minimum wage legislation that includes business tax breaks, probably within a week. However, before any minimum wage legislation can go to President Bush for his approval or his veto, the Senate and House versions must be brought into agreement.

The New York Times predicts that this could be "deadlock" at that point in the process, as a key House leader (Rep. Charles Rangel, chairman of the House Ways and Means committee) is holding firm for a minimum wage increase without business tax breaks.