Odds are improving that legislation to raise the minimum wage will be accompanied by tax breaks for small companies, including those in construction. At press time, the Senate Finance Committee was set to vote on a tax incentive package sponsored by the panel’s leaders. It may be added to a minimum-wage measure or move separately. If the Senate clears the plan, it would need to be reconciled with action in the House, which passed a wage bill Jan. 10 without tax provisions. President Bush supports a higher minimum wage, with small-business tax breaks.
The Senate tax proposal, which passed the Finance Committee on Jan. 18, is estimated to cost $8.3 billion over 10 years. Committee Chairman Max Baucus (D-Mont.) says the plan “will help to keep small businesses running strong and employing American workers, and we should do it in a fiscally responsible way.” The cost of the new breaks would be offset by revenue-raising provisions.