[Congressional Record Volume 146, Number 27 (Monday, March 13, 2000)]
[Extensions of Remarks]
[Page E285]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                       MINIMUM WAGE INCREASE ACT

                                 ______
                                 

                               speech of

                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Thursday, March 9, 2000

  Mr. BLUMENAUER. Mr. Speaker, it's time for a minimum wage increase, 
it's time to help family businesses.
  We are playing out the next round of inappropriate tax cuts, this 
time under the guise of helping minimum wage workers. A discussion on 
the minimum wage and small business taxes is appropriate. We must 
increase the minimum wage so that it at least keeps up with inflation. 
We can provide tax assistance to those who need it. But the two efforts 
should not be linked. This is a political exercise that guarantees that 
nothing will pass. It invites a veto.
  A two-year minimum wage bill would pass and swiftly become law. 
Oregon's experience has shown that you can have healthy economic growth 
and a higher minimum wage. As Oregon's wage rate was phased in from 
1997 to 1999, 57,000 welfare recipients found jobs, a 33% reduction in 
the total welfare caseload. Total unemployment in our state has dropped 
from 6% to 4.7% since Oregon's wage rate increased to $6.50 an hour 
over a year ago, to become the highest minimum wage in the nation.
  I am eager to work for tax reform for those who need it most: 
closely-held businesses, farms and woodlots. The Democratic alternative 
would increase the current $1.3 million estate tax exclusion to a $4 
million per family exclusion. We could pass this kind of targeted tax 
bill tomorrow, but we can and should do more. The current estate tax 
often forces sale of assets, cutting of timber or even sale of the 
business itself to pay the tax. We should permanently exempt closely-
held family businesses and farms from estate taxes so long as the 
assets stay within the family or the same closely-held ownership.
  The Republican tax bill does not target those who need the most help. 
Only \1/6\ of the benefits go to ``small business.'' The majority of 
taxpayers would only see about a $4 tax cut. Worse, the Republican tax 
bill commits over a hundred billion dollars in tax breaks without a 
budget and without guaranteed protections for Medicare and Social 
Security. This is a dangerous game.
  I urge the Republican leadership to stop playing politics. Don't 
force a bill that doesn't stand a chance of being enacted into law. 
Give Congress the chance to vote a fair minimum wage increase up or 
down. Allow a proposal to help family businesses and farms to stay in 
the family. These are two proposals the American people support and 
deserve.

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