Skip to main content

Senior Democrats ditch their backdoor proposal for a $15 minimum wage, throwing wage hike in doubt in $1.9 trillion stimulus package

Bernie Sanders Chuck Schumer Ron Wyden
Sen Bernie Sanders speaks at a news conference alongside other top Democrats.
  • Senior Democrats tossed out a backdoor plan to raise the minimum wage to $15 an hour, per a person familiar with the decision.
  • The proposal was ditched as Democrats appeared reluctant to finalize a complex plan that could delay stimulus passage.
  • Experts said the backup plan risked being inefficient at raising hourly wages.
  • Visit the Business section of Insider for more stories.

Senior Democrats are abandoning their backdoor $15 minimum wage proposal, leaving a wage hike in doubt as they scramble to enact a $1.9 trillion stimulus plan within two weeks.

Sens. Bernie Sanders (I-Vermont) and Ron Wyden (D-Oregon) were in the midst of drafting a plan to levy a 5% tax on the payrolls of large corporations that don't compensate workers below an unspecified wage. It would be paired with tax credits to incentivize small businesses to raise their employees' wages.

The senators ditched their proposal. According to a person familiar with the decision, finalizing the plan and getting every Democrat onboard imperiled the passage of the legislation before the expiration of enhanced unemployment insurance on March 14 for millions of Americans.

The Washington Post first reported the development.

Sanders and Wyden came up with the alternative after the Senate parliamentarian ruled on Thursday evening that a $15 minimum wage provision in the rescue package did not clear the strict guidelines of the reconciliation process. The move blocks the measure from moving ahead under the process Democrats are using, which needs 51 votes in the Senate to bypass Republicans.

Experts said the backup plan risked being inefficient at raising hourly wages. Arindrajit Dube, a professor of economics at the University of Massachusetts, Amherst, wrote in an email to Insider that "the devil is in the details."

Dube noted that most minimum wage workers don't work for large corporations, so the plan may encourage those businesses to accelerate outsourcing to third-party contractors to avoid the tax.

"For these reasons, any tax-based minimum wage scheme should be broad-based in my opinion, in contrast to proposals from Senators Sanders and Wyden as I understand them," Dube said. "Senator Wyden's tax incentive to small businesses are also unlikely to be very effective and will largely go to employers who are already paying higher wages."

The move slashes the odds of a wage increase becoming part of the stimulus plan, with little time left to draft legislation that would comply with the budget reconciliation process.

Still, Democrats such as Sen. Sherrod Brown of Ohio, chair of the Senate Banking Committee, say they will find a way to bump the federal minimum wage, which hasn't increased from $7.25 an hour since 2009.

"Democrats are united in giving a raise. We're going to raise wages," he told NBC's "Meet the Press" on Sunday. "We're going to find a way to. It's just too important not to."

Read the original article on Business Insider


from Business Insider https://ift.tt/3r2R5z6
via IFTTT

Comments

Popular posts from this blog

Instagram accidentally reinstated Pornhub’s banned account

After years of on-and-off temporary suspensions, Instagram permanently banned Pornhub’s account in September. Then, for a short period of time this weekend, the account was reinstated. By Tuesday, it was permanently banned again. “This was done in error,” an Instagram spokesperson told TechCrunch. “As we’ve said previously, we permanently disabled this Instagram account for repeatedly violating our policies.” Instagram’s content guidelines prohibit  nudity and sexual solicitation . A Pornhub spokesperson told TechCrunch, though, that they believe the adult streaming platform’s account did not violate any guidelines. Instagram has not commented on the exact reasoning for the ban, or which policies the account violated. It’s worrying from a moderation perspective if a permanently banned Instagram account can accidentally get switched back on. Pornhub told TechCrunch that its account even received a notice from Instagram, stating that its ban had been a mistake (that message itse...

Colorado police identified the serial killer who murdered 4 women 40 years ago after exhuming his body to analyze a DNA sample

A scientist examines computer images of DNA models. Getty Images Police in Colorado have cracked the cold cases of four women killed 40 years ago. Denver PD said genetic genealogy and DNA analysis helped them identify the serial killer. He had died by suicide in jail in 1981. DNA from his exhumed body matched evidence from the murders. Police in Colorado have cracked the code on four murder cases that went unsolved for 40 years, using DNA from the killer's exhumed body. The cases pertain to four women killed in the Denver metro area between 1978 and 1981. They were 33-year-old Madeleine Furey-Livaudais, 53-year-old Dolores Barajas, 27-year-old Gwendolyn Harris, and 17-year-old Antoinette Parks. The four women were stabbed to death. Denver Police Commander Matt Clark said in a press conference Friday that there was an "underlying sexual component" to the murders but didn't elaborate further. In 2009, a detective reviewed Parks' case and picked several p...

Gemini vs. ChatGPT: Which one planned my wedding better?

I was all about the wedding bells after getting engaged in June, but after seeing some of these wedding venue quotes, it’s more like alarm bells. "Ding-dong" has been remixed to "cha-ching" – and I need help. I don’t even know how to begin wedding planning. What are the first steps? What do I need to prioritize first? Which tasks are pressing – and which can wait a year or two? I decided to enlist the help of an AI assistant. Taking it one step further, I thought it’d be interesting to see which chatbot – Gemini Advanced or ChatGPT Plus (i.e., ChatGPT 4o) – is the better wedding planner. Gemini vs ChatGPT: Create a to-do list I’m planning on have my wedding in the summer of 2026 – sometime between August and September. Besides that, I don’t have anything else nailed down, so I asked both Gemini and ChatGPT to give me a to-do list based on the following prompt: “My wedding is between August 2026 and September 2026. Give me a to-do list of things to do for the...