Democratic Sen. Ron Wyden is working on a “plan B” to get a minimum wage increase into the next coronavirus relief package after the Senate parliamentarian ruled that the measure would fail the upper chamber’s so-called Byrd Rule.
“The American people elected Democrats to get things done, and they aren’t going to accept ‘process’ as an excuse for failing to deliver on an overwhelmingly popular policy,” Wyden said in a statement.
HAWLEY TO INTRODUCE $15 MINIMUM WAGE HIKE FOR BIG BUSINESSES
Instead of a measure that would increase the federal minimum wage from the current $7.25 to $15 over the next five years, Wyden said that he’s considering a tax penalty that would charge big corporations a fee equal to 5% of their total payroll “if any workers earn less than a certain amount.” That amount would be indexed, likely to inflation, and would increase “over time.” Wyden said the proposal would also include measures that prevent companies “from trying to outsource labor to avoid paying living wages.”
I’m exploring a tax penalty for mega-corporations that refuse to pay a living wage. This isn’t over. https://t.co/r78iNFE7sO
— Ron Wyden (@RonWyden) February 26, 2021
“At the same time, I want to incentivize the smallest of small businesses — those with middle-class owners — to raise their workers’ wages,” Wyden added. “My plan would provide an income tax credit equal to 25 percent of wages, up to $10,000 per year per employer to small businesses that pay their workers higher wages.”
Democrats have railed against the parliamentarian’s ruling. Shortly after the ruling was announced, Vermont Sen. Bernie Sanders called the Senate’s rules “obtuse and undemocratic and criticized the parliamentarian for “denying 30 million Americans a pay raise.”
“I strongly disagree with her, and we have the absurd situation — 60% of the American people in polls want to raise the minimum wage,” Sanders said. “House of Representatives has voted to raise the minimum wage to $15 an hour. President of the United States wants a $15 minimum wage. And I believe that in a large package we can barely, but we could do it, get the Senate to approve it. … We’ve got to deal with this. I don’t want anyone out there to think we’re giving up.”
I strongly disagree with the parliamentarian’s ruling about the minimum wage. But the people are demanding an end to starvation wages in America. We will not give up. We must get this done. pic.twitter.com/qt6mYJU7fl
— Bernie Sanders (@BernieSanders) February 26, 2021
Sen. Josh Hawley, a Missouri Republican, announced after the parliamentarian’s decision that he plans to introduce his own minimum wage legislation separate from the coronavirus relief package that would raise the federal minimum wage to $15 an hour — but only for businesses with revenues in excess of $1 billion. The measure would work in tandem with his “Blue Collar Bonus” tax credit that would help those whose hourly wages are below the national median of $16.15 an hour.
