Sunday, February 28, 2021

House Passes Stimulus Bill, Faces Uncertainty over Minimum Wage

The House of Representatives passed President Biden’s $1.9 trillion stimulus package on Saturday. The bill includes measures related to increased funding for COVID testing, school funding, stimulus checks, and assistance for  rent and food. In addition, it extends unemployment benefits and provides money to states to fund their liabilities.

The bill also contains language to raise the minimum wage to $15 an hour over the next several years. However, this clause will have to be removed if the Senate wishes to pass the bill under reconciliation, which would allow the bill to become law with only 51 votes, rather than the 60 votes needed to end debate and pass the bill. The Senate parliamentarian ruled this past week that the minimum wage increase could not be included in a reconciliation bill because it did not directly affect government revenues and expenses. Proponents of the minimum wage increase, such as Sen. Bernie Sanders (I-VT), argued that the minimum wage increase would increase government revenue through more taxes because of the increased wages paid and is thus eligible.

Republicans in the Senate have signaled opposition to the minimum wage increase, saying it will increase unemployment as employers would lay of workers for whom they could no longer afford their wages. Some moderate Democratic senators have also signaled opposition, such as Joe Manchin of West Virginia, who has said that the $15 minimum is too high for his state’s employers to pay for many of their workers.

President Biden has seemed to concede that the minimum wage clause will not be included in the reconciliation bill, promising to take it up as a stand alone bill in the future.

 

No comments:

Post a Comment