Closing out their summer by debating an apparently doomed minimum wage/estate tax bill, senators and representatives will return home to flaunt the medals of a defeat.
Democrats say that Republicans have cynically tacked a cut in the estate tax onto a bill increasing the minimum wage to stir up their supporters ahead of November’s elections; Republicans say the Democrats are doing the same thing by offering up the minimum wage bill in the first place.
Under the bill — thrown together and passed by the House on the last day of that body’s summer session — individuals’ estates worth $5 million or less, or couples’ estates worth $10 million or less, would be exempt from inheritance taxes.
Meanwhile, the national minimum wage would go up to $7.25 per hour in three 70-cent steps beginning next year.
Senate Democratic Majority Leader Harry M. Reid, D-Nev., has vowed to block the bill. Republicans and Democrats say privately they doubt the bill will find enough support to overcome a Democratic filibuster.
Even if the bill tanks, each party will go back to it’s voters claiming it supported a crucial plank — and blame the other side for the failure.
Leftbehind are those who support one or the other side of the bill as a matter of principle.
“It’s not just a political statement on minimum wage and estate tax, I think it’s also just bad government — real bad government,” said Gary Bass of the liberal nonprofit group OMB Watch, which favors a minimum wage increase.
Bass said that the bill has also been loaded with “sweeteners” like mining concessions for West Virginia’s delegation and, meanwhile, has left out tax breaks for research and development projects, which had broad support.
“It’s just government at its worst,” Bass said.
Pete Sepp, a spokesman for the Alexandria-based National Taxpayers Union, agreed.
His group wasn’t thrilled with the estate tax bill on offer — they want to abolish “the death tax” — but thought it was better than nothing. Sepp said he’s worried that the compromise bill coming up for a vote Friday is the worst of both worlds.
“If this proposal loses, [supporters] might be in an even weaker position to craft a compromise next year,” Sepp said. “If it wins, sure they’ll come away with a tax system that’s a little less oppressive — but it won’t make much a difference long-term.”
