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February 2007 | Volume VI, Issue 2 |
US Senate Passes Minimum Wage BillThe Senate voted overwhelmingly (94-3) Thursday February 1, 2007 to boost the federal minimum wage by $2.10 to $7.25 an hour over two years. The minimum wage bill (H.R.2) was packaged with controversial tax cuts for small businesses and higher taxes for many $1 million-plus executives. Besides increasing the minimum wage from the current $5.15 an hours, the bill would extend for five years a tax credit for businesses that hire the disadvantaged and provide expensing and depreciation advantages to small firms. Senators also adopted an amendment that would bar companies that hire illegal immigrants from obtaining federal contracts. That measure was designed to encourage companies to participate in an employee identification program that can weed out undocumented workers. Anytime the state minimum wage differs from the federal minimum wage, the higher rate applies. For specifics and updates on the minimum wages and regulations in all 50 states and the District of Columbia, see: Click Here from the U.S. Department of labor. It is not clear what procedural action will be taken next, following the Senate’s approval of the bill, since the Constitution requires tax legislation to originate in the House. The bill could be set aside while the House and Senate work out a solution, or the Senate could move to send the bill to a House-Senate conference committee, which would give House Ways and Means Chairman Rangel the right to strip the tax provision and send the bill back to the Senate for a new vote. Although the President supports the Senate-passed version, House Democratic leaders have raised concerns over adding small business tax relief provisions. DataPath will continue to keep you updated on the status of the Minimum Wage bill. |
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LEGAL DISCLAIMER: Material contained in
this newsletter is not legal advice, and should not be construed as
legal advice. If you need legal advice upon which you can rely, you
must seek a legal opinion from your attorney. © DataPath, Inc. 2007 |