U.S. Businesses at Odds Over Minimum Wage

[OhioChick]

01.30.07, 3:22 AM ET

America's businesses are at odds over minimum wage legislation, but the rift has little to do with a $2.10 hourly raise.

A Senate bill that could win final passage this week has divided the private sector, pitting small businesses and retailers that would benefit from tax breaks in the bill against the larger corporations and manufacturers that would have to pay for them.

At issue are tax breaks contained in the Senate bill as sweeteners to attract Republican votes for the minimum wage increase. The legislation would increase the federal minimum from $5.15 to $7.25 an hour in three steps over the next two years.

The bill also includes business tax credits, deductions and other tax advantages worth $8.3 billion over 10 years that are designed to help small businesses overcome potentially higher labor costs.

http://www.forbes.com/feeds/ap/2007/01/30/ap3374282.html


<snip> To help pay for the cost of those tax breaks, corporations no longer would be able to deduct the cost of jury verdicts or settlements in liability suits against them and their executives' tax-deferred pay packages would be capped at $1 million a year.