[Congressional Record Volume 142, Number 73 (Wednesday, May 22, 1996)]
[Extensions of Remarks]
[Pages E875-E876]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               A WIN-WIN FOR WORKERS AND SMALL BUSINESSES

                                 ______


                          HON. SUSAN MOLINARI

                              of new york

                    in the house of representatives

                        Wednesday, May 22, 1996

  Mr. MOLINARI. Mr. Speaker, we have the opportunity today to enhance 
the earning potential of millions of working Americans and to provide 
important incentives for the small businesses who hire them.
  I am very supportive of the raise in the minimum wage. This amendment 
to H.R. 1227, the Employee Commuting Flexibility Act, is a much needed 
protection for workers who are usually nonunion, have few skills, and 
little negotiating strength. Also, because the fringe benefits earned 
by minimum wage workers are usually less than nonminimum wage 
employees, they get hit twice as hard.
  Not only will an increase in the current minimum wage boost thousands 
of workers and their families above the poverty line, the increase will 
be a tremendous relief to women. Currently, about 59 percent of minimum 
wage workers are woman. A raise in the minimum wage will empower these 
working women with the resources to keep them competitive with their 
male counterparts.
  Often, the downside to minimum wage hikes are a proven loss of jobs 
for small businesses. The Republicans, however, are increasing the 
minimum wage in a responsible way that will actually help small 
business increase jobs. Mr. Goodling's amendment will allow employers 
to pay newly hired employees the current minimum wage for the first 90 
days of employment and it detaches the minimum wage from employees who 
receive tips. Further, it exempts employees of small businesses with 
less than $500,000 in annual gross sales. Clearly these provisions, in 
addition to the Small Business Job Protection Act, will ease any burden 
that may have been placed on small businesses in implementing the 
increased minimum wage.
  The Small Business Job Protection Act will increase, by $7,500, 
expensing for small business, simplify small business pension plans, 
and provide a credit to employers for hiring AFDC recipients, certain 
veterans, disabled workers as well as high-risk and summer youth 
employees. Further, this bill will allow workers to deduct, up to 
$5,250, employer-paid educational assistance from their taxable income. 
It will be retroactive to 1995 and help thousands of hard-working 
Americans in furthering their education, a great benefit to both the 
employee as well as the employer. This specific provision would have a 
direct impact on students who attend Wagner College and the College at 
Staten Island, both of which are in my district. We are now making it 
easier for small businesses to send their employees to college, which 
benefits both employers and their employees, who will get much needed 
assistance in paying for ever-growing tuition costs.

[[Page E876]]

  Wage earners in this country do deserve a raise, and this package 
will give them that raise without costing them their jobs.

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