Senate Democrats move immediately to "Plan B" on minimum wage
Source: CBS News
BY NANCY CORDES, GRACE SEGERS AND JACK TURMAN
FEBRUARY 27, 2021 / 7:13 AM / CBS NEWS
Senate Democrats are racing to finalize a new tax provision that would penalize large companies that pay low wages. The move comes after Senate Parliamentarian Elizabeth MacDonough ruled Thursday night that a $15 minimum wage hike cannot be included in the Senate COVID relief package, which is currently being pushed through the chamber through a process known as budget reconciliation.
The plan being drafted by aides to Senate Finance Committee chair Ron Wyden of Oregon in close consultation with Senate Budget Chair Bernie Sanders of Vermont would impose a 5% payroll tax penalty on "very large" companies that do not pay workers a certain amount. That amount is still unclear: Wyden favors $15 an hour, but is currently seeking feedback from fellow Democrats on that figure and on exactly which companies would face the penalties.
"Everyone in the caucus is envisioning 'very large' companies think Walmart, Amazon," a Senate Democratic aide told CBS News.
Under the proposal, which Senate Democrats hope to finish crafting by early next week, smaller businesses that raise their workers' wages would be eligible for income tax credits equal to 25% of wages up to $10,00 per employer to year tax incentives to increase wages.
Read more: https://www.cbsnews.com/news/minimum-wage-senate-democrats-plan-b/
Loki Liesmith
(4,602 posts)This may have some effects on the margins.
jaxexpat
(6,795 posts)DeminPennswoods
(15,265 posts)Aldi at bit under that, but with generous benefits, BK hiring closers at $12. That nearly double the current minimum wage. Costco just raised their starting wage to 16/hr.
Personally, I wouldn't change the bill except for the deleting the min wage. They can raise the minimum wage by putting it in "must pass" legislation.
We can't let "perfect" be the enemy of the "good".
Bengus81
(6,927 posts)It costs a fortune in a biz to always have a revolving door of help going in and out. Just when you get someone trained and they make the owner money they take off for something that might pay just a little more.
Pay them $12-$15 NOW and keep your trained help. I ran businesses and hired help from 1977-1996 and never paid anyone minimum wage. I was paying a starting wage in one of my biz that is now the minimum wage except I was paying it in 1991--thirty years ago. I had zero time to jack around with the help turning over every week or so.
Using an inflation calculator that's almost $15.00 per hour today. That's for a company doing commercial mowing and landscaping. If I could easily pay it back then so can millionaire franchise holders today.
DeminPennswoods
(15,265 posts)15/hr wage is noted to be up to 10k. That's close to Andrew Yang's basic subsidy of 1k/mo. Might as well leave out the tax break complication and just say the federal gov't will pay 1k/mo subsidy to anyone making under 15/hr.
intrepidity
(7,272 posts)Loki Liesmith
(4,602 posts)Response to Loki Liesmith (Reply #4)
jaxexpat This message was self-deleted by its author.
UGADawg
(501 posts)*
aeromanKC
(3,322 posts)speak easy
(9,171 posts)yaesu
(8,020 posts)blocking it as unconstitutional but hey, if they think is worth holding up passage for another week or so it must be worthwhile, I hope.
SamsDrink
(50 posts)And keep the minimum wage hike in the Covid relief bill. Its time for The Democrats to get a spine and fight for the working people. Put all who oppose on record, its a 2022 Campaign ad ready to be made.
marie999
(3,334 posts)BootinUp
(47,053 posts)IronLionZion
(45,380 posts)I get that GOP are obsessing over independent restaurants and small shops going under but the big ones need to pay their workers more.
cstanleytech
(26,220 posts)has to be over 200% above the federal poverty level.
Federal poverty level for single person in 2020 is 12,760 divided by 54 weeks = 236 a week + 200% = 708 a week divided by 40 hours a week = 17 dollars an hour.
That way it takes the minimum wage out of the hands of the politicians (mostly Republicans) who have been bribed/bought off for decades into opposing raises for the minimum wage.
Miguelito Loveless
(4,451 posts)and grow a spine. The Republicans overruled the Parliamentarian multiple times, so there is ZERO reason for Dems not to do the same thing, citing prior acts by the GOP.
All of this back room, smoke and mirrors, accounting mumbo-jumbo, will NOT be seen by the Dem base as raising the minimum wage.
Failure to keep our promise and raise the minimum wage will result in massive losses in '22.
LiberalLovinLug
(14,164 posts)Obama giving up on the public option
Keeping the Bush Tax Cuts to the wealthy
Funding charter schools over public schools.
Not holding Wall Street CEOs accountable for their avoidable crashing of the economy
- Loses seats in 2010
....
A $1400 cheque instead of a $2000 cheque
No $15 min. wage increase
??? what's next?
Its the cut of a thousand knives. Its cumulative. Not for me, but for a small but significant percent of Democratic voters, it can be "here we go again", and "why should I bother voting in 2022?"
Some will counter with "they couldn't get the Republican support". I say you go for the popular goals, and if it looks like its going to fail because of Republican votes, don't just wheel and deal (ie. capitulate) behind the scenes so you can come up with a watered down version. Because a watered down version benefits Republicans, who will then campaign how THEY helped pass a BIPARTISAN bill to help their constituents......even if they never were for it in the first place, they will claim credit. And for Democrats, it will harm them with their voters as they didn't fulfill their initial promises, and are seen once again as falling to capitulation. Whether these optics reflect the truth or not it doesn't matter!
I'd rather they play the long game, sure, try and make a deal first, but if the Rs want too much, some policies just can't be done at that time, if they can't be done right. But you use social media and every outlet you can to publicize what you wanted for the public, and how Republicans are preventing it. You do this every day, loudly. Making it very clear to the public, if you want these things, they must vote D next time.