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Friday, July 28, 2006

They Were Against It Before They Weren't Really for It

From PGL at Angry Bear:

GOP Ties Minimum Wage Hike to Tax Cuts: AP reports:

Republican leaders are willing to allow the first minimum wage increase in a decade but only if it's coupled with a cut in future inheritance taxes on multimillion-dollar estates, congressional aides said Friday. A package GOP leaders planned to bring to a vote Friday or Saturday in the House also would renew several popular tax breaks, including a research and development credit for businesses, and deductions for college tuition and state sales taxes, said a spokesman for House Majority Leader John Boehner. The wage would increase from $5.15 to $7.25 per hour, phased in over the next three years, said Kevin Madden, the aide to Boehner, an Ohio Republican. The maneuver is aimed at defusing the wage hike as a campaign issue for Democrats while using its popularity to spur enactment of the Republican Party's long-sought goal of permanently cutting taxes on millionaires' estates.

Let’s be clear about two things. First, all this proposal would do as far as the minimum wage would be to restore it to something barely above 1997 levels in real terms (see Dean Baker) and far below the 1968 level. Secondly, these “tax cuts’ are nothing more than tax shifts. Someone at some point will have to pay down all these deferred tax liabilities.

We won't raise your wages unless you agree to cut taxes on the wealthiest Americans, a strong signal of support for families struggling to survive at the minimum wage. I guess this means if they'd gotten their way earlier and cut the estate tax, they wouldn't even need to bother with the poor. Their only use to the GOP is as a vehicle to cut estate and other taxes.

    Posted by on Friday, July 28, 2006 at 04:29 PM in Economics, Income Distribution, Policy, Politics | Permalink  TrackBack (0)  Comments (5)

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