- An increase in the federal minimum wage was eliminated from the stimulus package on Thursday.
- Senator Bernie Sanders said Democrats would propose to withdraw tax deductions from large corporations that do not pay workers at least $ 15 an hour.
- He also said that they would give incentives to small businesses so they could raise wages.
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Senator Bernie Sanders said Democrats would try to invent a back door to implement a $ 15 minimum wage after a $ 1.9 trillion stimulus package wage increase on Thursday night – a major setback for the progressives.
Senate congresswoman Elizabeth McDonough decided that a $ 15 minimum wage violated the strict guidelines of the reconciliation process. It is the legislative method that Democrats are using to approve the package in a party line vote without Republican support.
In a statement, Sanders criticized McDonough’s decision. “It is difficult for me to understand how oil drilling at the Arctic National Wildlife Refuge was in compliance with Byrd’s rule, but not raising the minimum wage,” said the Vermont Democrat, referring to a part of the law. Republican Party fiscal 2017 allowed through reconciliation.
He then said that he will work with other Senate Democrats on “an amendment to remove tax deductions from large, profitable corporations that do not pay workers at least $ 15 an hour and provide small businesses with the incentives they need to raise taxes.” salary”.
There were early signs of Democratic support for the change on Thursday night. Senator Brian Schatz of Hawaii tweeted “COUNT ME IN” about Sanders’ proposal.
—Brian Schatz (@brianschatz) February 26, 2021
Senator Ron Wyden of Oregon, chairman of the Senate Finance Committee that draws up taxes, also said in a statement: “I am considering a tax penalty for megacorporations that refuse to pay a minimum wage.”
Democrats are rushing to approve the emergency spending package before March 14, the deadline for ending increased unemployment insurance. The House is expected to vote on the aid package, which contains a gradual salary increase to $ 15 an hour, among other provisions, such as stimulus checks, unemployment benefits and vaccine funds.
Spokeswoman Nancy Pelosi said the salary increase would remain in the legislation.
“House Democrats believe that raising the minimum wage is necessary,” Pelosi said in a statement. “Therefore, this provision will remain in the American rescue plan tomorrow.”
Still, designing and securing support for a new pay rise plan can complicate the quick schedule Democrats are looking for. Some centrist Democrats may be reluctant to raise corporate taxes during the economic crisis.
It is unclear whether the proposal would be supported by Senator Joe Manchin, a leading West Virginia Democrat. Sanders’ disposition would also have to approve a set of rules governed by the parliamentarian.
Congress has not raised the minimum wage since 2009, and it is at $ 7.25 an hour. Experts say hourly workers have borne a disproportionate burden of the pandemic, suffering huge job losses in the service and leisure sectors of the economy in particular.
“Black workers, women and younger workers are overrepresented in minimum wage jobs,” said Elizabeth Pancotti, director of policies for Employ America, in a recent interview. “Politically, we have forgotten about these workers in the past ten years and in the greedy crisis. We have not implemented dangerousness, mandatory sick leave or many policies for workers who are still at work.”