Both sides of the aisle in Washington D.C. have claimed victory in a battle over a proposed raise of the federal minimum wage that ended last week with a failed effort by Republicans to cut taxes for multimillion dollar estates.
In Congress, Senate Democrats blocked Republicans from passing a bill that in addition to the minimum wage and estate tax provisions, also included extending some tax breaks for research, development credits for businesses, deductions for college tuition and state sales taxes.
“I have never understood the belief of some that you can love employees and hate employers, but that seems to be what’s driving this,” said Senator Gordon H. Smith, R-Ore., who voted in favor of the bill. Senator Ron Wyden, D-Ore., voted against the bill.
Over a period of three years the bill, HR5970, would have increased federal minimum wage to $7.25 per hour, but minimum-wage workers who receive tips, like waiter, waitresses and bartenders, would have faced big wage cuts. The Democratic minority cited that provision as a major point of contention, and noted that bundling such a proposal to a bill that cut taxes for millionaires was inappropriate.
“If there were ever a clear illustration of who (Republicans) are and who we are, take a look at what happened this week,” Senate Minority Leader Harry Reid, D-Nev., told reporters Friday.
Currently, there are more than 5 million workers earning $5.15 per hour according to federal statistics. Adjusted for inflation, the federal minimum wage is the lowest it’s been in 50 years, although the rate in Oregon stands at $7.50 per hour and is adjusted annually for inflation starting in January 2004.