 |
|
| VICTORY FOR SMALL BUSINESS IN THE SENATE
&minimum wage issue losing steam
|
March 10, 2005
Washington, D.C. - In a victory for small businesses this week, the U.S. Senate defeated two proposals to raise the Federal starting wage. Amidst the failure of both the Democratic and Republican-backed bills to get the 60 votes necessary for passage, the chance of a minimum wage hike in the next two years remains very unlikely.
Sen. Edward Kennedy's (D-MA) proposal to raise the Federal minimum wage over 40%, to $7.25, was defeated 49-46 in the Senate, while the Republican-proposed legislation fell short as well. The SBE Council strongly opposed the Kennedy amendment, and put Senators on notice that it represented a Key Vote against the interest of small business, and will be counted as such in the organization's 2005 Ratings of Congress.
"This victory demonstrates the faltering status of the "minimum wage" as a political issue and the growing understanding of what every bipartisan commission on the matter has declared since the Carter years - that hiking the starting wage hurts those it is supposed to help. That is, low-skilled workers who need first footing on the economic ladder. We are also pleased to see more federal lawmakers grasping the notion that hiking the starting wage only raises labor costs for small firms," said SBE Council President and CEO Karen Kerrigan.
Increasing the minimum wage is simply not sound economic policy, according to the SBE Council. Low-income workers, who are supposed to be helped by a higher minimum wage, actually lose. Small businesses are hurt as a result of government-mandated wage increases as fewer jobs are created and precious resources are artificially diverted. The SBE Council applauded each member of the U.S. Senate that voted against the Kennedy wage hike for taking a principled stand, and will continue to educate policy makers on this important issue.
|
| |
|
|
