Senate blocks federal minimum wage bill

[Dos Equis]

Good thing?  Bad thing?

Senate blocks federal minimum wage bill
Published April 30, 2014
FoxNews.com

WASHINGTON –  A bill to increase the federal minimum wage stalled Wednesday in the Senate, in the latest setback for Democrats pushing a set of election-year economic bills.   

Republicans argued that the change would be too expensive for employers and would backfire by costing jobs. Fueling their argument was a Wednesday morning Commerce Department report showing the economy grew at just a 0.1 percent rate in the first quarter.

The bill failed on a 54-42 test vote. It needed 60 to advance.

The bill by Sen. Tom Harkin, D-Iowa, would gradually raise the $7.25 hourly minimum to $10.10 over 30 months and then provide automatic annual increases to account for inflation. Democrats argue that if fully phased in by 2016, it would push a family of three above the federal poverty line -- a level such earners have not surpassed since 1979.

Republicans, though, cited a February study by the nonpartisan Congressional Budget Office that estimated the increase to $10.10 could have the effect of eliminating about 500,000 jobs — but also envisioned higher income for 16.5 million low-earning people.

"Washington Democrats' true focus these days seems to be making the far left happy, not helping the middle class," said Senate Minority Leader Mitch McConnell, R-Ky.

The debate was playing out half a year from this fall's elections, in which Democrats are struggling to retain their Senate majority and the economy remains a marquee issue.

President Obama has made boosting the minimum wage a top priority. Its rejection would mark a defeat for him and the latest setback for a stream of Democratic bills that stress the campaign-season theme of economic fairness.

Continuing that focus, the White House issued a statement urging the bill's passage and saying the administration wants legislation "to build real, lasting economic security for the middle class and create more opportunities for every hardworking American to get ahead."

Obama also praised lawmakers in Hawaii, who voted Tuesday to raise the state's minimum wage to $10.10 per hour over four years. Five other states have enacted increases so far this year, and 21 have minimums above $7.25.

"It's time for Republicans in Congress to listen to the majority of Americans who say it's time to give America a raise," Obama said in a written statement.

Supporters note that the federal minimum wage's buying power has fallen. It reached its peak value in 1968, when it was $1.60 hourly but was worth $10.86 in today's dollars.

The legislation was opposed by business groups including the National Council of Chain Restaurants and the International Franchise Association. The National Restaurant Association has hundreds of members at the Capitol this week lobbying lawmakers on several issues, including opposition to a higher minimum wage.

Also opposed were conservative organizations including Heritage Action and Americans for Prosperity, which is backed by Charles and David Koch. The billionaire brothers are spending millions this year to unseat congressional Democrats, and Senate Majority Leader Harry Reid, D-Nev., and his allies are casting them as unfettered villains.

Underscoring the political value they envisioned from the minimum wage fight, Harkin and other Democrats said earlier if the measure was defeated Wednesday, the Senate would vote on it again this year.

According to the federal Bureau of Labor Statistics, about two-thirds of the 3.3 million people who earned $7.25 an hour or less last year worked in service jobs, mostly food preparation and serving. More than 6 in 10 of those making $7.25 or under were women, and about half were under age 25. Democrats hope their support for a minimum wage boost will draw voters from both groups — who usually lean Democratic — to the polls in November, when Senate control will be at stake. The GOP's hold on the House is not in doubt.

Harkin's bill would also gradually increase the minimum wage for tipped workers like waiters to 70 percent of the minimum for most other workers. It is currently $2.13 hourly, which can be paid as long as their hourly earnings with tips total at least $7.25.

The minimum wage was first enacted in 1938 and set at 25 cents.

Congress has passed nine laws slowly increasing it, including one each decade since the 1980s. The minimum has been $7.25 since 2009.

http://www.foxnews.com/politics/2014/04/30/senate-likely-to-block-bill-to-increase-federal-minimum-wage/

[bears]

Good thing?  Bad thing?

Senate blocks federal minimum wage bill
Published April 30, 2014
FoxNews.com

WASHINGTON –  A bill to increase the federal minimum wage stalled Wednesday in the Senate, in the latest setback for Democrats pushing a set of election-year economic bills.   

Republicans argued that the change would be too expensive for employers and would backfire by costing jobs. Fueling their argument was a Wednesday morning Commerce Department report showing the economy grew at just a 0.1 percent rate in the first quarter.

The bill failed on a 54-42 test vote. It needed 60 to advance.

The bill by Sen. Tom Harkin, D-Iowa, would gradually raise the $7.25 hourly minimum to $10.10 over 30 months and then provide automatic annual increases to account for inflation. Democrats argue that if fully phased in by 2016, it would push a family of three above the federal poverty line -- a level such earners have not surpassed since 1979.

Republicans, though, cited a February study by the nonpartisan Congressional Budget Office that estimated the increase to $10.10 could have the effect of eliminating about 500,000 jobs — but also envisioned higher income for 16.5 million low-earning people.

"Washington Democrats' true focus these days seems to be making the far left happy, not helping the middle class," said Senate Minority Leader Mitch McConnell, R-Ky.

The debate was playing out half a year from this fall's elections, in which Democrats are struggling to retain their Senate majority and the economy remains a marquee issue.

President Obama has made boosting the minimum wage a top priority. Its rejection would mark a defeat for him and the latest setback for a stream of Democratic bills that stress the campaign-season theme of economic fairness.

Continuing that focus, the White House issued a statement urging the bill's passage and saying the administration wants legislation "to build real, lasting economic security for the middle class and create more opportunities for every hardworking American to get ahead."

Obama also praised lawmakers in Hawaii, who voted Tuesday to raise the state's minimum wage to $10.10 per hour over four years. Five other states have enacted increases so far this year, and 21 have minimums above $7.25.

"It's time for Republicans in Congress to listen to the majority of Americans who say it's time to give America a raise," Obama said in a written statement.

Supporters note that the federal minimum wage's buying power has fallen. It reached its peak value in 1968, when it was $1.60 hourly but was worth $10.86 in today's dollars.

The legislation was opposed by business groups including the National Council of Chain Restaurants and the International Franchise Association. The National Restaurant Association has hundreds of members at the Capitol this week lobbying lawmakers on several issues, including opposition to a higher minimum wage.

Also opposed were conservative organizations including Heritage Action and Americans for Prosperity, which is backed by Charles and David Koch. The billionaire brothers are spending millions this year to unseat congressional Democrats, and Senate Majority Leader Harry Reid, D-Nev., and his allies are casting them as unfettered villains.

Underscoring the political value they envisioned from the minimum wage fight, Harkin and other Democrats said earlier if the measure was defeated Wednesday, the Senate would vote on it again this year.

According to the federal Bureau of Labor Statistics, about two-thirds of the 3.3 million people who earned $7.25 an hour or less last year worked in service jobs, mostly food preparation and serving. More than 6 in 10 of those making $7.25 or under were women, and about half were under age 25. Democrats hope their support for a minimum wage boost will draw voters from both groups — who usually lean Democratic — to the polls in November, when Senate control will be at stake. The GOP's hold on the House is not in doubt.

Harkin's bill would also gradually increase the minimum wage for tipped workers like waiters to 70 percent of the minimum for most other workers. It is currently $2.13 hourly, which can be paid as long as their hourly earnings with tips total at least $7.25.

The minimum wage was first enacted in 1938 and set at 25 cents.

Congress has passed nine laws slowly increasing it, including one each decade since the 1980s. The minimum has been $7.25 since 2009.

http://www.foxnews.com/politics/2014/04/30/senate-likely-to-block-bill-to-increase-federal-minimum-wage/

the libs on this board are absolutely, positively, 100% sure that raising the minimum wage will result in a better economy and absolutely, positively, ZERO loss of jobs. 

its a slam dunk. 

its just that the evil republicans won't pass the bill because they hate poor people and want them to starve to death so that they can eat their babies.

[Soul Crusher]

Again - more playing around the edges to pander to the low information lib voter.  Raising the min wage does nothing but hurt the people in the middle and entry level people by diverting resources to the least experienced and qualified on the bottom of the employment ladder.

[bears]

Again - more playing around the edges to pander to the low information lib voter.  Raising the min wage does nothing but hurt the people in the middle and entry level people by diverting resources to the least experienced and qualified on the bottom of the employment ladder.

there are instances where it can give a boost to the economy because it puts money in the hands of people for them to spend.  however, in the situation that we're in with rising taxes and huge deficits, it's not feasible that another hit to small and mid size businesses would help.  a raise in the minimum wage is essentially like raising taxes on small to mid size businesses.  and we just did raise taxes on them already.

[RRKore]

In this case "block" = "filibuster", right?

Interesting.

[240 is Back]

raising minimum age is a bad idea.

it's not politics, it's economics.

[Soul Crusher]

raising minimum age is a bad idea.

it's not politics, it's economics.

all it is , is a tax increase on employers, wage earners, and consumers.

[Bear232]

In this case "block" = "filibuster", right?

Interesting.

No....It didn't get enough votes for cloture.

[bears]

raising minimum age is a bad idea.

it's not politics, it's economics.

there is an argument that it can benefit the economy in certain instances.  but like I said, to think that putting a greater burden on businesses when we've already raised taxes on them is going to be outweighed by some people having more money in their pockets is, in my opinion, ill conceived and careless.

[240 is Back]

there is an argument that it can benefit the economy in certain instances.  but like I said, to think that putting a greater burden on businesses when we've already raised taxes on them is going to be outweighed by some people having more money in their pockets is, in my opinion, ill conceived and careless.

I can't recall it at the moment... I had to do a big project on the minimum wage in my final class of MBA.  It makes political hay, but absolutely doesn't work in the free market.   the market rises to meet what employees are worth.  When underpaid, other market forces will correct it.  Forcing a wage hurts ina  lot of ways. It's been 9 years since I wrote it. 

[2Thick]

Roughly 5% of hourly workers are paid min wage.

The focus needs to be on job creation rather than social or economic "justice".

In places where the oil and gas boom is exploding in the US, you've got 18 year olds with no college degree making 80k a year to drive trucks filled with oil and gas, and you've got people flipping burgers at McD's for nearly $20 an hour. They have more jobs available than workers to fill them, and must pay well to fill positions.

Raising the min wage leads to businesses laying off workers and cutting hours, and will cause at least some businesses to shut down - at least in a fragile economic environment.

Realistically, there will never be an America with no minimum wage. I think it should be tied to an index rather than just set by what bureaucrats with no business experience think is "fair".

[Vince G, CSN MFT]

Again - more playing around the edges to pander to the low information lib voter.  Raising the min wage does nothing but hurt the people in the middle and entry level people by diverting resources to the least experienced and qualified on the bottom of the employment ladder.

Wrong....it actually drains the middle class because if it puts families under the poverty line meaning that more government assistance will be put in.   

[scottt]

The people need the increased income, some need it as an incentive to get off welfare ,but I think a sudden large increase is a scheme to kill small business for the benefit of large corporations. If the government cares about small business why they tax them so much and corporations pay very little tax especially in a global economy where they can run to other countries to avoid them. The upper middle class and below are losing the chess game and the super rich with the help of the government has us pointing fingers at each other while they steal everything.

[Kazan]

Wrong....it actually drains the middle class because if it puts families under the poverty line meaning that more government assistance will be put in.   

With your track record, the smart play is to take the position the opposite of yours.

[dario73]

With your track record, the smart play is to take the position the opposite of yours.

LOL!!

He is still working on converting soft air guns into real guns.

[GigantorX]

What % of the ever shrinking labor force actually makes minimum wage?

The joke on those people is that any hike in the minimum wage will result in min wage earners losing their jobs.

[bears]

What % of the ever shrinking labor force actually makes minimum wage?

The joke on those people is that any hike in the minimum wage will result in min wage earners losing their jobs.

yeah but it wins votes from uneducated liberals whose only knowledge comes from liberal websites giving them little tidbits of info to use as ammunition.  all the while not giving them any real information. 

there are people on this board who believe that raising the minimum wage and extending unemployment benefits are things the government does because they care about poor people.  THEY ACTUALLY BELIEVE THIS TO BE TRUE.  those people need to go back to college and take Econ 100.

[Chadwick The Beta]

yeah but it wins votes from uneducated liberals whose only knowledge comes from liberal websites giving them little tidbits of info to use as ammunition.  all the while not giving them any real information. 

there are people on this board who believe that raising the minimum wage and extending unemployment benefits are things the government does because they care about poor people.  THEY ACTUALLY BELIEVE THIS TO BE TRUE.  those people need to go back to college and take Econ 100.

A lot of them would have to finish high school first.

[Necrosis]

there is an argument that it can benefit the economy in certain instances.  but like I said, to think that putting a greater burden on businesses when we've already raised taxes on them is going to be outweighed by some people having more money in their pockets is, in my opinion, ill conceived and careless.

So those people can then spend more money into the very things these corporations own? you don't understand this is how the economy works? they aren't making a livable wage currently, corps are posting record profits, inequality is as bad in the states as some third world countries. Add to that, that the adjusted for inflation wage is actually lower today then fifty years ago, the education and debt required for a job etc. Also, in places where high minimum wage exists the proof is in the pudding, you are wrong. There is clearly a threshold in which it becomes absurd, but people who work full time jobs should not require subsidies from the government, this again is directly costing you. Business tax is a joke, GE paid an effective tax of zero, why don't you look up the fucking subsidies these corps are getting.

[Necrosis]

What % of the ever shrinking labor force actually makes minimum wage?

The joke on those people is that any hike in the minimum wage will result in min wage earners losing their jobs.

Evidence of this? what you say makes sense in a correlational sense but in practice the evidence isn't there. Australia is probably the best indicator or this, perhaps certain regions of Canada as well.

[Dos Equis]

So those people can then spend more money into the very things these corporations own? you don't understand this is how the economy works? they aren't making a livable wage currently, corps are posting record profits, inequality is as bad in the states as some third world countries. Add to that, that the adjusted for inflation wage is actually lower today then fifty years ago, the education and debt required for a job etc. Also, in places where high minimum wage exists the proof is in the pudding, you are wrong. There is clearly a threshold in which it becomes absurd, but people who work full time jobs should not require subsidies from the government, this again is directly costing you. Business tax is a joke, GE paid an effective tax of zero, why don't you look up the fucking subsidies these corps are getting.

What about the billions in taxes paid by corporations (and other businesses)? 

[Roger Bacon]

Need Syntaxmachine to comment 

[bears]

What about the billions in taxes paid by corporations (and other businesses)?  

they don't want to hear that.  this is all tax accounting shit that journalists know that their readers do not understand.  so they can say whatever they want because to truly understand what you're reading you have to:

1. look at the tax returns in question
2. understand how deferred tax assets and deferred tax liabilities work.
3. understand how passive loss carryovers, NOL carryovers, section 179 carryovers, charitable contribution carryovers, etc. all work in calculating a current tax liability.

it's a 3 hour conversation to really get to the root of whether what they did to calculate their tax provision was fair or not.

but no one is going to take the time to try and understand that what they're doing is well within the law, and if they really looked at the law, they would see that it may very well be a fair tax provision.  there are some provisions that are outdated and unfair.  did GE use one of those?  people throw the phrase "tax loophole" around all the time on here and they don't know what it means.  but snarky journalists use it all the time so they regurgitate what they see on tv and hear on the radio.

[Dos Equis]

they don't want to hear that.  this is all tax accounting shit that journalists know that their readers do not understand.  so they can say whatever they want because to truly understand what you're reading you have to:

1. look at the tax returns in question
2. understand how deferred tax assets and deferred tax liabilities work.
3. understand how passive loss carryovers, NOL carryovers, section 179 carryovers, charitable contribution carryovers, etc. all work in calculating a current tax liability.

it's a 3 hour conversation to really get to the root of whether what they did to calculate their tax provision was fair or not.

but no one is going to take the time to try and understand that what they're doing is well within the law, and if they really looked at the law, they would see that it may very well be a fair tax provision.  there are some provisions that are outdated and unfair.  did GE use one of those?  people throw the phrase "tax loophole" around all the time on here and they don't know what it means.  but snarky journalists use it all the time so they regurgitate what they see on tv and hear on the radio.

True.  It's way too complicated. 

I remember some politician saying several years ago that your tax return should be able to fit on a postcard.  Some advocate for a flat tax.  I wish . . . .

[whork]

raising minimum age is a bad idea.

it's not politics, it's economics.

Why exactly?

More money for the consumers =more consumption.