Chairman of the Senate Finance Committee Ron WydenRonald (Ron) Lee Wyden Biden’s nominee previews post-Trump trade agenda Labor Expands Unemployment Assistance for Workers Rejecting Employers Who Bypass COVID-19 Rules Democrats Hesitate to Raise Taxes in middle of the pandemic MORE (D-Ore.) Announced Democrats’ “Plan B” to raise the minimum wage on Friday after the Senate MP ruled that an earlier proposal by House Democrats to raise the federal minimum wage by $ 15 the hour did not meet special budget rules.
Wyden proposes an alternative solution that would impose a 5 percent tax penalty on large corporations if any of their workers earn less than a certain amount, and the penalty will increase over time.
The language would ensure that large companies have a significant financial incentive to raise wages, even if they are not required by law to pay employees more than the current federal minimum wage of $ 7.25 per hour.
“As chairman of the Finance Committee, I have been working on a ‘plan B’ that would make big companies pay for mistreating their workers. My plan would impose a 5 percent penalty on the total payroll of large corporations if any worker earns less than a certain amount. That penalty would increase over time, ”Wyden said in a statement.
A senior Democratic aide said Friday that the Senate Majority Leader Charles schumerChuck SchumerHillicon Valley: Biden Signs Chip Order | Hearing on Media Misinformation | Facebook Agreement with Australia | CIA House Rules Nominee SolarWinds Releases New Text of COVID-19 Relief Bill Budowsky: Cruz Goes to Cancun, AOC Goes to Texas MORE (DN.Y.) is considering adding such a provision to the $ 1.9 billion COVID-19 relief package. It is expected to take the legislation to the ground as soon as next week.
Wyden said his plan would include safeguards to prevent companies from circumventing the penalty by outsourcing jobs.
“For example, if a profitable mega-corporation like Walmart fires a store security guard and replaces him with a contractor who makes much less, my proposal would still require Walmart to pay a fine,” Wyden said.
Wyden wants to incentivize what he calls “the smallest of small businesses” to increase workers’ wages by providing a tax credit equal to 25 percent of wages, up to $ 10,000 per year per employer, to businesses that wages increase.
Senate MP Elizabeth MacDonough caused a serious setback for Democrats this week by advising that a proposal under the jurisdiction of the Senate Committee on Health, Education, Labor and Pensions to increase the minimum wage was primarily a policy change with only a budget effect. incidental.
As a result, President BidenJoe BidenBiden ‘disappointed’ with Senate MP’s decision, but ‘respects’ decision Taylor Swift welcomes passage of House Equality Act Donald Trump Jr. calls dropped Bruce Springsteen charges ‘liberal privilege’ MOREThe proposal to increase the minimum wage to $ 15 an hour cannot be approved by the Senate by simple majority.
Senate Byrd rule requires that proposals included in budget reconciliation packages, which can be approved by simple majority vote, produce changes in spending or revenue that are not merely incidental to the impacts of your policies.
By structuring incentives for large corporations and small businesses to increase wages such as penalties and tax benefits, Wyden is confident that the MP will accept that those reforms comply with the Byrd Rule and can avoid Republican filibuster.
“As the talks continue, I believe this ‘plan B’ provides us with a path to move forward and achieve this through the reconciliation process,” Wyden said.
“Workers haven’t received a federal pay raise in more than a decade. We cannot continue to have millions of workers – workers who are disproportionately, people of color, women and essential workers like fast food workers and home health aides – earning starvation wages, ”he added.
If Democrats cannot find a way to include the minimum wage increase in the $ 1.9 trillion COVID-19 aid package they plan to pass under special budget rules, they will need to compromise with at least 10 Republicans to reach 60. -Vote threshold to overcome an obstructionism.
Sens. Mitt romneyWillard (Mitt) Mitt RomneyGrassley Will Vote Against Tanden Nomination The Hill’s Morning Report – Presented By The AIDS Institute – Forward: One-shot Vax, Loosening of Restrictions, Tax Aid Haley Isolated After Trump Fallout MORE (R-Utah) and Tom CottonTom Bryant CottonTrump to resurface on CPAC at CPAC Romney-Cotton, Cancun Taxi Driver and the Minimum Wage Debate On Money: Schumer Urges Democrats to Stand Together on Bill .9T | Collins Discards Republican Party Support for Biden’s Aid Plan | Powell fights inflationary fears MORE (R-Ark.) This week introduced a proposal to raise the minimum wage to $ 10 an hour in 2025 and link the wage increase to cracking down on employers who hire undocumented immigrants, demonstrating the huge gap between Democrats and many Republicans on the matter.