Thursday, January 11, 2007

Minimum Wage, Maximum Taxation?


For the first time in 10 years, the House is weighing a bill to raise the federal minimum wage. As part of the "Six for '06" agenda, Democrats are touting their effort to increase minimum wage by 41 percent, an effort they claim will reduce the burden on the working poor. But despite couching the debate in humanitarian terms, few in Washington truly believe that raising the minimum wage will effectively reduce poverty.

Instead of easing the cost to families, Democrats often dole out dollars only to tax them away. Speaker Nancy Pelosi (D-CA) has already rolled out plans to ease House rules on raising taxes, which could essentially nullify the wage hike. The agenda is not only duplicitous, but as the Heritage Foundation points out, it's also unnecessary.

Two-thirds of workers earning the minimum wage get a raise from their employers within a year. If the new majority is truly concerned about America's families, they will make the expended child tax credit and the elimination of the marriage tax penalty permanent.

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