Complain about a product or service

House Passes Minimum Wage Hike

Prospects Doubtful in the Senate

By Joseph S. Enoch
ConsumerAffairs.com Congressional Correspondent

January 10, 2007
The House of Representatives today passed a bill that aims to incrementally increase the national minimum wage.

Rep. George Miller

The bill, H.R. 2, also known as The Fair Minimum Wage Act of 2007, passed by a vote of 315-116. It would increase the current national minimum wage of $5.15 an hour to $7.25 an hour by 2009.

It would increase the national minimum wage to $5.85 an hour 60 days after the bill's passage. One year after that it would increase to $6.55 an hour. A year after that it would increase to $7.25 an hour.

Democrats have tried for a few years to increase the national minimum wage which was last set in 1997. Rep. George Miller (D-Calif.), who tried in vain to pass a similar bill last year, introduced H.R. 2 late last week. Now that Democrats have control of Congress, they have the power to force the vote.

Many Democrats believe the bill would shrink the growing gap between the nation's rich and poor.

"It is simply wrong that men and women who work hard and play by the rules live in poverty," Miller said in a prepared statement. "We must not delay giving a pay raise to millions of hardworking Americans and I hope that the Senate will follow the House in passing a clean increase in the minimum wage."

The wage hike would directly affect the wages of 5.6 million people, according to the Economic Policy Institute, and indirectly affect another 7.4 million people whose wages should see a hike through a ripple effect.

Ten states will not be affected by the bill because they have or will have a state-mandated minimum wage of $7.25 or more. To view all the current state minimum wages, see the Department of Labor's list

Although the mostly partisan bill was co-sponsored by seven Republicans out of 221 total co-sponsors, many Republicans debated the bill's economical ramifications.

"This legislation gets an A in politics and a D- in economics," Rep. Jack Kingston (R-Ga.) said during today's debates. "Most minimum wage workers are well above the poverty line. Fifty two percent are teenagers, have an entry-level job or work part-time."

Republicans also worried that some businesses may struggle to keep up with the raise.

President Bush, who said he would support a raise in the minimum wage, also said he expects the bill to include special tax breaks to aid businesses saddled with the higher salaries. As it's written now, the bill contains no such provisions.

Before this bill can make it to the president's desk, it must first pass in the Senate which may not be as sweeping a victory as it was in the House -- or a victory at all.

"I'm becoming aware of the difficulties of the U.S. Senate in trying to pass a bill with one issue," freshman Sen. Ben Cardin told The Hill newspaper.

Even a few Senate Democrats believe business sweeteners might not be a bad idea.

Senate Majority Leader Harry Reid (D-Nev.) indicated he will back the business breaks. He said the stand-alone minimum wage hike is achievable, but, "I'm not sure I want to do that," he told The Hill.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Back to the top |