[Congressional Record Volume 142, Number 100 (Tuesday, July 9, 1996)]
[Senate]
[Pages S7500-S7501]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       JOB PROTECTION ACT OF 1996

 Mrs. MURRAY. Mr. President, I am pleased the Senate passed the 
Small Business Job Protection Act of 1996. However, I am disappointed 
the Senate rejected the Kennedy amendment to the minimum wage increase.
  I cannot sit idly by as I hear of those struggling to live on today's 
minimum wage. I thought, as many of you do, that the typical minimum 
wage earner was someone like my daughter or one of her friends: a 
teenager flipping burgers or taking food orders to earn some extra cash 
for new clothes or a movie.
  That, however, is a grave misperception. The sad fact is that 73 
percent of those earning between $4.25 and $5.14 an hour are over the 
age of 20. That means that 9 million adults this year will have to try 
to live on a salary of $8,840. One-third of these same

[[Page S7501]]

adults are the sole sources of income for their families. If these 
workers were attempting to support a family of three, they would fall 
$2,682 below the Federal poverty line.
  I am extremely concerned that 58 percent of those struggling with a 
minimum wage are women--5.2 million women, many of these single 
mothers, would benefit directly from this increase.
  These single moms are trying. They are trying to raise two kids on a 
below-poverty income. And how does Congress reward a struggling 
parent's hard work? By attacking Medicaid that would have paid for her 
son's asthma medicine. By cutting the child care support that enables 
her to work. By taking away funding for nutrition programs that pay for 
her kids to eat at school or day care. By eliminating her Head Start 
Program that gives her kids a chance at coming to school ready and able 
to learn. By refusing to add 90 cents to her hourly wage--a wage that 
pays for heat, clothing and food.
  Aren't these exactly the same individuals and families we are trying 
to keep employed and off of Federal support? Instead, this Congress has 
targeted the low-income family with cut after cut and a resistance to 
move them above the poverty line.
  Mr. President, the Kennedy amendment would not have eliminated jobs. 
It would have barely kept people working--people who otherwise would be 
completely reliant on public support. If we had only passed this 
amendment a year ago, it would have meant that the single mother would 
have earned an additional $2,000 today.
  To low-income families, that would have meant more than 7 months of 
groceries, 4 months of rent, a full year of health care costs, or 9 
months of utility bills.
  I did not reach my decision to support the minimum wage hastily. I 
have listened carefully to the concerns of small business owners from 
across my State, who have highlighted the implications of this 
increase. I don't want to see prices for the American consumer rise or 
jobs eliminated. But I don't think an increase to the minimum wage will 
end employment in small business, either.
  It has now been more than 5 years since the last minimum wage 
increase. We must remember that the value of the current minimum wage 
has fallen by nearly 50 cents since 1991 and is now 27 percent lower 
than it was in 1979. Now is the time to adjust that inequality and 
demonstrate a true commitment to our working families.
  A slight increase in this wage provides those who work hard and play 
by the rules an increased opportunity and a chance to succeed. If any 
of my colleagues opposes the minimum wage, I urge them to live on 
$8,840 this year and then reconsider their vote.
  Mr. President, I want to take a minute to express my support for 
title I of H.R. 3448, the small business provisions. This section 
incorporates a variety of tax changes, pension simplifications and S 
corporation reforms that expand business opportunities for America's 
small businesses.
  We all know small business is the engine that drives the American 
economy. As large corporations across the country downsize and 
consolidate, innovative small businesses expand and add jobs to the 
work force. In 1995, 22,000 individuals in Washington State were 
employed by software-related companies--66 percent of these companies 
are small businesses with less than 11 employees.
  This legislation will only make it easier for these and other small 
businesses to invest in research and development, raise capital and 
spur economic growth.
  Most importantly, the legislation reinstates several expired tax 
provisions including the research and development [R&D] tax credit and 
employer provided educational assistance.
  The R&D tax credit is vital to small, technology-based companies that 
need to invest in long-term endeavors in order to stay competitive in 
rapidly changing business climates. At the same time, the employer-
provided educational assistance is essential to maintaining a highly 
skilled, well-educated work force.
  The legislation also improves the flexibility subchapter S 
corporations have when they set out to raise capital. Like S. 758, a 
bill which I cosponsored, this legislation raises the number of 
shareholders who can invest in S corporations. It increases the number 
from 35 to 75, and in doing so, this bill greatly increase an S 
corporation's ability to raise capital.
  Mr. President, title I of this bill also incorporates two changes to 
our pension laws that were introduced in S. 1756, legislation I support 
that was introduced by Senator Moseley-Braun. First, the Treasury 
Department will be required to create a clear spousal consent form so 
that couples can make informed decisions about annuities. Also, 
Treasury will need to develop a qualified domestic relations order form 
spelling out how, to whom and when pension plans should be paid upon 
divorce. These provisions are essential to protecting spousal rights.
  Finally, H.R. 3448 expands tax deductible IRA contributions to 
homemakers. This change will make retirement savings opportunities 
possible for individuals who work at home rather than in the work 
force. It will encourage greater savings in the United States, and it 
will improve retirement security for our hard-working homemakers.
  Mr. President, even without the Kennedy amendment, this legislation 
still goes a long way to helping over 10 million hard-working 
Americans. This legislation ultimately raises the minimum wage 90 cents 
over 2 years. It rewards our working families as they struggle to rise 
above the poverty line. I am proud the Senate took this important and 
eagerly awaited step today. 

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