WIS News 10 - Columbia, South Carolina | Senate clears way for passage of divisive minimum wage bill

Senate clears way for passage of divisive minimum wage bill

(Capitol Hill-AP) January 30, 2007 - The Senate has cleared the way for a vote on a minimum wage increase - but only with tax breaks for businesses attached.

The tax proposal is opposed by House Democrats, but seems to have backing from the White House. A top official says raising the minimum wage will cost jobs, and that it's important to have some tax breaks that will "replace those jobs."

Republicans like Senator Michael Enzi of Wyoming contend that pushing up the pay base will hurt small businesses that rely on minimum wage workers. Enzi says the Senate recognizes that the economy is "interdependent."

But small business and big business are divided over the tax breaks, largely because larger corporations and manufacturers would have to pay for them. The US Chamber of Commerce says the permanent changes that would be made in the tax laws would far outweigh the benefits.

Posted 1:45pm by Bryce Mursch