NRA decries House vote for 41% min. wage hike

Nation's Restaurant News, August 7, 2006

WASHINGTON -- The U.S. House of Representatives passed a bill July 28 on a bipartisan 230-180 vote that would raise the federal minimum wage 41 percent--from $5.15 to $7.25 an hour--over three years.

The National Restaurant Association blasted the increase called for in H.R. 5970 as "onerous," despite provisions of the Estate Tax and Extension of Tax Relief Act of 2006 that include major benefits for small businesses.

The NRA said it had lobbied "feverishly" to ensure that the bill provided for two-year building depreciation, including for new construction; a tip credit for the seven states that lack one; a two-year extension of the Work Opportunity Tax Credit; and a permanent "death tax" reduction for most states.

However, the NRA said the 41-percent increase was the "largest increase in the entry-level wage rate ever proposed," and said only 15 percent of its beneficiaries would be adults in households with children, while the other 85 percent would be teens living with working parents, adults living alone or secondary earners.

However, veteran Capitol Hill watchers said the House-approved version of the bill, which was expected to be taken up in the Senate this month, was not expected to pass.