Majority leader in the U.S. Senate, Chuck Schumer (D-NY), speaks to reporters in the Senate Reception Room during the second day of Trump’s second impeachment trial in Washington, February 10, 2021.
Brandon Bell | Pool | Reuters
Senate Democrats will abandon plans to help raise workers’ wages through tax penalties and other economic incentives that some lawmakers considered as an alternative to raising the federal minimum wage, according to a person familiar with the matter.
Some lawmakers last week released a “plan B” in President Joe Biden’s $ 1.9 trillion Covid stimulus bill, which would punish companies that pay workers below a certain threshold.
Senators released the backup plan on Thursday and Friday after the Senate congressman decided that raising the proposed federal minimum wage to $ 15 an hour did not meet the requirements that Democrats must follow to approve the bill. stimulus without republican support.
Plan B, advocated by Senate Finance President Ron Wyden, D-Ore., And Senate Budget President Bernie Sanders, I-Vt., Would have punished billions of dollar corporations that did not pay workers enough using various tax incentives.
Lawmakers were considering a variety of penalties, including a 5% fee on a large corporation’s total payroll if any worker earned less than $ 15 an hour.
The fate of the Biden administration’s first major legislation is now in the Senate after the House passed its version of the bill early on Saturday, largely along party lines.
Democratic lawmakers say haste is the key to approving the high-cost stimulus. They are trying to send a final bill to Biden’s desk by March 14, when unemployment benefits are due to expire. The House bill includes direct checks of $ 1,400 for many Americans, funds for vaccine distribution and $ 350 billion in aid to state and local governments.
Senators must seriously consider the bill starting this week and offer amendments to the legislation they received from the House. Given the setback with the congressman and the tight schedule, party leaders are likely to choose to seek an increase in the federal minimum wage in future legislation.
This is likely to appeal to certain outside groups, including unions and the Business Round, which has expressed concerns that a protracted battle over wage increases would delay the relief urgently needed for workers and industries most affected by the coronavirus pandemic.
Given that the lower house approved the bill with a $ 15 hourly minimum wage increase, the Senate is likely to approve a different version of the bill. The two chambers would then have to draft a final proposal on a conference committee.
Democrats, who have a small majority in the House and Senate, decided to pursue the latest stimulus bill without Republican input, using a process known as budgetary reconciliation. Although reconciliation allows a bill to be passed by a simple majority of votes, it also limits provisions that can be included in legislation to those that have a significant impact on the federal deficit.
Some progressive lawmakers urged the Biden government – specifically Vice President Kamala Harris – to override Senate parliamentarian Elizabeth MacDonough’s decision to exclude the minimum wage increase.
While some unions and business groups may be dismissed, any decision to postpone the salary increase is likely to irritate the progressive wing of the party and put it again in conflict with the Democratic leadership.
Progressive Caucus Whip deputy Ro Khanna of California and 22 other lawmakers offered the president and vice president a new incentive on Monday to challenge the congressman’s decision.
“This decision is a bridge too far. We have been asked, politely but firmly, to commit ourselves to almost all of our principles and objectives. Not this time,” Khanna said in a letter. “If we do not annul the Senate congressman, we will be tolerating the wages of poverty for millions of Americans. That is why I am leading my colleagues to urge the Biden government to lean on the clear precedent and to overturn this wrong decision.
Government officials, including White House chief of staff Ron Klain, said there are no plans for Harris to reject the congressman. House Speaker Nancy Pelosi, D-Calif., Said on Friday that she believes the House will “absolutely” pass the relief bill if it returns from the Senate without a raise in the minimum wage.
– CNlan’s Ylan Mui and Jacob Pramuk contributed to this report.