[Congressional Record Volume 153, Number 6 (Thursday, January 11, 2007)]
[Extensions of Remarks]
[Page E82]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     FAIR MINIMUM WAGE ACT OF 2007

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                               speech of

                             HON. LEE TERRY

                              of nebraska

                    in the house of representatives

                      Wednesday, January 10, 2007

  Mr. TERRY. Mr. Speaker, I rise today to speak in favor of lifting 
people out of poverty by giving them the means to succeed. I rise today 
to speak against the Democrat's raise in the minimum wage.
  No American wants to see their fellow person live in poverty. There 
are ways to continue to help Americans have all the means necessary to 
not only survive, but to thrive. However, the Democrat's bill to raise 
the minimum wage is nothing more than a Band-Aid on a broken little 
toe. While their intentions may be good, and I believe they are, their 
philosophical approach is economically and socially flawed. In reality, 
this plan will create an economic hardship for the employers who 
provide millions of Americans the opportunity to participate in our 
economy.
  Some of my colleagues would have you believe that the right thing to 
do is mandate unto all businesses, small, family-owned, and corporate 
alike, that the business cannot determine the wage worth of an 
employee. They would have you believe it is the job of the government 
to do so. I believe in a market system without an intrusive, dictating 
government that will likely minimize potential employment opportunities 
for lower skilled workers.
  I and many of my fellow free-market thinking colleagues believe that 
the correct action to take to help these individuals is two-fold.
  First, on the macro-level, we must have a strong, growing economy 
from which highpaying jobs are available and competition for employees. 
Facts show that lowering taxes is an economic motivator. In the past 5 
years, Congress has passed and or extended the following tax cuts: 
marriage penalty relief, accelerated the increase in the child credit, 
accelerated the expansion of the 15 percent rate bracket for married 
couples, reduction in individual income tax rates, reduction of other 
regular tax rates, increased the alternative minimum tax exemption, 
reduce individual capital gains rates, and accelerated depreciation.
  These tax cuts have helped grow our economy here in the U.S. to the 
point where we are now in a time of economic prosperity with Americans 
enjoying the benefits. Since August 2003, when the 2001 tax extensions 
were passed, the American economy has added over 7 million new jobs--
this is more than all other major industrialized nations combined--and 
posted job gains for 39 straight months. We have also attained an 
impressive 4.5 percent unemployment rate. This economy is most 
conducive to producing higher paying jobs.
  Secondly, on the micro-level, these individuals who are making 
minimum wage most importantly need advancement in skills and education. 
I have had many conversations with a gentleman named Fernando ``Butch'' 
Lecuona III. Butch is the commissioner of Labor for the Nebraska 
Department of Labor and is the head of the Department of Labor in 
Nebraska. Butch also adheres to the philosophy and will be the first 
one to say that education is the key to lifting people from poverty.
  In December of 2006, we in the House passed a tax credit for 
businesses who hired individuals in the Welfare to Work program, which 
provided a tax credit to employers when they hire individuals who have 
received public assistance for 18 months or who have exhausted their 
benefits. In addition to the Welfare to Work program I also supported 
the Work Opportunity Tax Credit, WOTC, when employers hire individuals 
from eight ``target'' groups--such as families receiving public 
assistance, high-risk youths, ex-felons, qualified veterans, and food 
stamp recipients under the age of 35. This is an example of the proper 
roll of government to help individuals succeed.
  While doing my research for this vote, I attempted to find the number 
of people that are the bread-winners for their families working at or 
below minimum wage. According to the U.S. Department of Labor, Nebraska 
has roughly 1 million people in our workforce pool. Nearly 60 percent 
of our workers work for an hourly wage. In the United States, 1.5 
percent of hourly workers aged 25 and above make at or below minimum 
wage; 1.5 percent of our hourly workers in Nebraska equals about 8,000 
people. Of the total 17,000 minimum wage workers in Nebraska, more than 
half of those are aged 16-24. These are not typically the breadwinners 
of the family.
  The best tool to battle poverty is a free market with an educated 
workforce. We have the tools in this Nation to continue to provide 
Americans with the opportunities for which we are known. Increasing the 
minimum wage does nothing to help an individual better themselves, 
their family, or their community.
  This is why I will not be supporting the minimum wage increase and I 
urge my colleagues to join me.

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