WASHINGTON (Bloomberg) — Senate Republicans rejected an effort by Democrats to pass minimum-wage legislation without breaks for small businesses on Wednesday, setting the stage for a potential impasse with the House, where lawmakers are demanding a “clean” bill.þþThe Senate vote of 54 to 43 was six votes short of the 60 needed to move ahead with a wage measure that does not include tax benefits for employers. Earlier this month, the Senate Finance Committee voted to add $8.3 billion in tax breaks to the bill.þþLeaders of the new Democratic-led Congress have said raising the federal minimum wage for the first time in 10 years, to $7.25 an hour from the current $5.15, is a priority. The measure may now be headed for deadlock. Representative Charles B. Rangel, Democrat of New York and chairman of the tax-writing House Ways and Means Committee, has suggested he will block any minimum-wage measure that includes tax provisions.þþA spokesman for Mr. Rangel, Matthew Beck, said Wednesday: “The Senate needs to pass a clean bill. They shouldn’t hold the minimum wage hostage.”þþThe House passed its minimum-wage measure on Jan. 10.þþMr. Rangel notes that the Constitution requires tax-related legislation to originate in the House.þþUnder Congressional rules, Mr. Rangel can block House consideration of the Senate’s minimum-wage measure. Any legislation would have to be reconciled between the two chambers before being sent to President Bush for his signature.þþMr. Bush has said he supports raising the national minimum wage as long as the legislation includes tax relief for small businesses that might face increased labor costs.þþ
Source: NY Times
