WASHINGTON: The Senate overwhelmingly passed an increase in the minimum wage to $5.15 an hour from $4.25 Tuesday, July 9th, in an important election year political victory for President Clinton and the Democrats, The bill, passed by a bipartisan 7424 vote after a month-long fight, must now be reconciled with a similar measure approved earlier in the House. “American workers should get their raise as soon as possible,” Clinton said at a White House Rose Garden news conference, urging Congress to finish quickly, “This is not a time tonic eland dime our workers.” He said that once Congress finishes, “this action will directly benefit millions of hard working Americans… They will now get raise.”

The final vote came after five Republicans joined Democrats to reject, 5210 46, what Clinton had called a “poison pill” amendment barring millions of workers from getting the increase, Clinton said he would have vetoed the bill had it come to him with the amend ment. “The United States Senate spit out the Republicans” poison pill,” said Vice President Al Gore, who presided over the Senate vote. Backers lured some Republicans votes by adding 4 popular, wide-ranging $14 billion, 10year tax cut for small business. It will be paid for in part by reinstating a 10% tax on airline tickets, which applies 10 tickets, purchased seven days after the bill becomes law. But the complete  culling measure —which permits businesses to deduct $25,000 annually for the purchase of new equipment, up from $17,500, and extends individual retirement accounts for nonworking spouses among dozens of provisions played second fiddle politically to the minimum wage.

Early this year Democrats seized on the minimum wage as a way to distinguish their election year agenda from that of the Republicans. Democratic senators forced the Senate to a standstill) and embarrassed the Majority Leader Bob Dole by seeking to attack the minimum wage to one bill after another.

Article extracted from this publication >>  July 10, 1996