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January 10, 2007
Balking at Baucus
David Sirota praising Max Baucus? Is it opposite day, or something? meanwhile, I'd caution against getting too gung-ho on Baucus. He gave a decent Iraq speech this morning, but he's spending his day larding up the minimum wage bill with tax breaks for business. It's remarkable that we can't even pass one bill that advantages workers without tossing off giveaways to employers. More here.
January 10, 2007 | Permalink
Comments
The Prospect article cited contains this bit:
What's more, such tax cuts are usually forever, while federal minimum wage increases die a slow death. Since the federal minimum is not indexed to inflation, its value erodes over time -- the real value of the current minimum is at a 50-year low.
The bill being debated in the house contains indexing of the minimum wage, for the first time. So getting it passed, even if it is too small an increase, if very worthwhile.
Yes, I'd like a clean, minimum-wage-only bill, but that would make a Bush veto to easy to explain - and he's said he will. Instead, I'd find some small, but actually helpful biz tax decrease to throw in the bill, and let Bush explain why more is required.
Some Senate GOP votes can probably be obtianed with a token tax cut, and I doubt they'd all insist on a big cut. We just need enough GOP Senators to get to a fiibuster-proof, veto-override level. That means 66 votes are needed, and the Dems probably only have votes in the high 40's.
So what could be offered that would be truly helpful? How about a cut for small biz if they offer to pay some portion of health insurance for their employees under a company-sponsored plan?
Posted by: JimPortlandOR | Jan 10, 2007 1:35:23 PM
Is it opposite day, or something?
It truly is opposite day. In today's L.A. Times, Max Boot argues that Iraq is all Bush's fault.
Posted by: Samba00 | Jan 10, 2007 1:38:45 PM
Oy.
His definition of "small business" is "fewer than 500 employees". That's insane.
Posted by: Nicholas Beaudrot | Jan 10, 2007 2:43:56 PM
It seems your main problem is that the tax cuts aren't targeted correctly. If there was a proposal that would target the tax cuts correctly, would you be opposed to it? Don't you think there are some small businesses who would either have to lay off workers, raise prices, or go out of business, because their profits aren't large enough to handle a minimum wage increase?
Posted by: Jeff | Jan 10, 2007 3:37:03 PM
I think we should have a minimum wage bill, and then, if we want, a small business tax cut bill. One shouldn't be tied to the other.
Posted by: Ezra | Jan 10, 2007 3:40:28 PM
Jeff,
No, I don't. Let's say a small business of 25 people has 20 of them working for the current minimum wage of $5.15 an hour. And along comes the big, bad new minimum wage of $7.25 an hour. That's $2.10 extra an hour per worker. If the average worker puts in 2,000 hours a year, that's $2.10 times 20 workers times 2,000 hours, or an additional cost outlay of $84,000 per year. That is not goig to make or break any business with 25 employees I assure you. I work for a company with 38 employees, and we pulled down $12.5 million last year. $84,000 extra would not make or break us.
Don't just repeat the talking points of the people you think are cool. THINK FOR YOURSELF!
Posted by: Rick | Jan 10, 2007 4:16:18 PM
Actually I was basing that on experience I had working at mom and pop stores when I was younger, who were barely getting by. I knew firsthand their financial hardships, and realized what an increase on the minimum wage would do to them. And while I'm in favor of a minimum wage increase, I'm also concerned about those small, family run businesses that I enjoyed working for.
Posted by: Jeff | Jan 10, 2007 4:32:34 PM
Jeff:
Maybe you didn't understand. Rick's company cleared $12.5 million. This is clear evidence that all small businesses can afford to pay increased wages to people who have already agreed to work for a lower wage.
Rick:
Did your company pay 31 of its 38 employees the minimum wage? That's what I thought.
Posted by: Alex | Jan 11, 2007 12:18:29 PM
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