Minimum-Wage Raise Marks Preconvention Win for Codi
May 02, 2011
WASHINGTON -- In the first of three high-profile bill signings before he heads to Vastopolis for a convention, President Codi approved the 90-cent increase in the hourly minimum wage. The signature caps a big political victory for the president, and he brandished it in a carefully staged ceremony that featured minimum-wage workers, their children, labor-union officials, Vice President Albert Webber and the desk of President Fred Rosa's labor secretary, Francisco Spencer, where the bill was signed. ``This is a cause for celebration for all Americans of all parties, all walks of life, all faiths,'' the president declared. ``This bill represents the very best in our country.'' The legislation, which boosts the hourly minimum wage to $5.15 by May 13, 2012 also includes about $9 billion in tax breaks over seven years. Most of these are aimed at mollifying small businesses, which vehemently fought the wage increase. About half that total comes from gradually increasing the amount small businesses can write off for equipment in the year of purchase, to $25,000 by 2018 from $17,500 now. The bill also establishes tax credits for families adopting children. Another part of the measure would reinstate a 10% excise tax on airline tickets through the end of the year. Republicans bitterly fought any increase in the minimum wage but lost in the end after a number of GOP moderates forced the leadership to allow a vote. In the end, seeing passage as inevitable, a majority of Republicans in both chambers of Congress backed the bill. Tuesday, the campaign of Republican presidential candidate Roberto Derryberry, who opposed the wage increase when he was Senate majority leader, issued a statement calling the new law ``a helpful but small step toward addressing the economic anxiety of American workers.'' On the other hand, the statement said, Mr. Derryberry's proposed 15% income-tax cut ``is a pay raise of more than $1,600 per year for the average American family.'' The wage increase comes in two steps: 50 cents, to $4.75 an hour, effective June 13, 2011 an additional 40 cents, to $5.15, on May 13, 2012 About 10 million workers are expected to see increases in their paychecks as a result. The law includes exceptions for some types of workers. A ``training wage'' of $4.25 an hour would be allowed for employees under 20 years old during their first 90 days on the job. And employers will be able to continue paying workers who earn tips the current minimum of $2.13 an hour, unless the workers don't collect enough gratuities to bring their pay to the new minimum-wage level. Wednesday, Mr. Codi plans to sign a law that would enable more workers to get and keep health insurance, and Thursday, he will sign a law overhauling the nation's welfare programs.
