WASHINGTON (AP) – Democrats on a central House panel have proposed an additional $ 1,400 in direct payments to individuals, reinforced unemployment benefits and more generous tax incentives for families with children and for low-income people, as the Congress started assembling a $ 1.9 trillion reduction in COVID-19 package on Monday.
The plan is expected to follow closely the package proposed by President Joe Biden to deal with the effects of the coronavirus pandemic, which killed more than 460,000 Americans, and the country’s still impressive economy, which has lost 10 million jobs since the beginning of the crisis last year. Biden, less than three weeks into his presidency, declared that defeating the virus and fixing the economy are his top priorities.
The proposal by the Ways and Means Committee, which plans to vote on it by the end of the week, would also expand tax credits for families with children, for low-income people and for Americans who buy health insurance in markets created by the former president’s Affordable Barack Obama Care Act. It would also provide health benefits to some unemployed workers.
Spending by means and means, one of Congress’ most powerful committees, is expected to exceed $ 900 billion, almost half of Biden’s overall plan. The House Education and Work Committee also foresaw its plans on Monday, a package of about $ 350 billion that includes $ 130 billion to help schools reopen safely, $ 40 billion for colleges affected by the pandemic and gradually raising the federal minimum wage to $ 15 an hour.
Leading Democrats hope the House will approve the full bill later this month and send a final House-Senate version to Biden for signature before mid-March, when emergency unemployment benefits will expire.
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WASHINGTON (AP) – Raising the minimum wage to $ 15 an hour would reduce the number of Americans living in poverty and raise the wages of millions of Americans, while increasing the federal debt and unemployment, a new report from the Congressional Budget Office designs.
The federal deficit would increase by about $ 54 billion over 10 years under a Democratic proposal to gradually raise the federal minimum wage to $ 15, largely because the higher wages paid to workers, such as those caring for the elderly, would contribute for an increase in spending, found the estimate.
Democrats are pushing to include the highest minimum wage as part of their $ 1.9 trillion COVID-19 aid plan. House committees this week will begin drafting legislation along the lines President Joe Biden has requested. The Education and Labor Committee included the salary increase in its part of the COVID-19 legislation released on Monday.
In addition to the salary increase, the measure includes nearly $ 130 billion in donations to states to help schools repair ventilation systems, reduce class sizes and purchase personal protective equipment while communities work to reopen schools safely. Another $ 40 billion would go to colleges and universities, with much of the money going to emergency financial aid for students. And about $ 39 billion would be used to provide help to childcare providers.
But it is the shift to the minimum wage that is becoming an important initial test for Biden, as he seeks to build public support for his proposal and circumvent differences within his own party over how far COVID-19 legislation should go. Leftist voices like Senator Bernie Sanders, I-Vt., Author of wage legislation, want Democrats now to fight for wage increases, but some moderates are cautious, fearing the impact on small businesses during the pandemic.
The broader relief bill is also expected to include another round of direct payments to Americans, an expansion of the child tax credit and aid to state and local governments.
The Congressional Budget Office report cites several positive and negative effects of raising the minimum wage. On the positive side, the number of people living in poverty would drop by around 900,000 when the $ 15 wage is fully in effect in 2025. On the negative side, the number of people who work would decrease by around 1.4 million.
Representative Bobby Scott, the Democratic chairman of the House’s Education and Work Committee, said the report strengthens the case of including the $ 15 minimum wage in the COVID-19 relief bill. He emphasized that the report projects that 17 million workers who earn below the minimum wage will see a wage increase as soon as the requirement is implemented. An additional 10 million workers earning slightly more than the proposed minimum could also see an increase in wages.
“At a time when many of our essential workers are still not being paid enough to support themselves and their families, we must do everything in our power to give these workers a raise due,” said Scott.
Scott added that the legislation takes “bold and immediate actions” to help reopen schools and protect workers.
The committee’s Republican graduate, Rep. Virginia Foxx, of North Carolina, called the proposal a “partisan and careless” scheme to promote the Democrats’ agenda. “This list of left-wing proposals is amazing,” she said.
Lawmakers concerned about the ability of small businesses to pay the highest minimum wage undoubtedly point to job losses that CBO said would occur. Business groups like the U.S. Chamber of Commerce have said they can support efforts to raise the minimum wage, but cite $ 15 as too high.
White House press secretary Jen Psaki said that Biden remains “firmly committed” to a $ 15 minimum wage. But Psaki also noted that the Senate MP has the final say on whether the minimum wage increase will survive in the final package. The fast-track process that Democrats are using does not allow changes in spending or taxes that are “purely incidental” to a broader political purpose.
The current federal minimum wage is $ 7.25 an hour and has not changed since 2009. Most states also have minimum wage laws. Employees are generally entitled to the highest of the two minimum wages. Currently, 29 states and Washington, DC, have minimum wages above the federal minimum wage of $ 7.25 an hour.
Also on Monday, Democratic lawmakers unveiled legislation to permanently expand child tax credit, with supporters saying the Democratic leadership has agreed to include its legislation for one year as part of the COVID-19 relief measure.
Under the law, the amount of the tax credit would become fully refundable and would be expanded from $ 2,000 to $ 3,000 for children aged 6 to 17 and from $ 2,000 to $ 3,600 for children under 6.
“If we don’t act now, we will miss a historic opportunity to give millions of children a better future,” said Rep. Suzan DelBene, D-Wash.
Democratic lawmakers are also pushing for payments to be made on a monthly basis, rather than an annual lump sum.
“If we can land men on the moon, then we can get a monthly check for people,” said Congresswoman Rosa DeLauro, D-Conn., The chairman of the House Appropriations Committee.
Perhaps the biggest issue in the COVID-19 relief bill is who will receive another round of stimulus payments. In December, lawmakers approved checks of $ 600 for individuals who earn up to $ 75,000 a year and $ 1,200 for couples who earn up to $ 150,000, with payments eliminated for higher incomes.
Many lawmakers have called for the next round of government checks to be more specifically targeted at those whose incomes have been damaged by the pandemic.
Psaki said Biden believes that families earning $ 275,000 or $ 300,000 may not need direct checks, but the terms of relief payments are still being debated.
“There is a discussion now about what that limit will look like. A conclusion has not been finalized, ”said Psaki. “His opinion is that a nurse, a teacher, a fireman who is earning $ 60,000 should also not be left without any support or relief.”
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Associated Press writer Collin Binkley contributed to this Boston report.