Democrats Vow to Kill Wage Increase

Democrats who claim they care about poor blacks vowed to block the law pushed by House Republicans that would increase the minimum wage from $5.15 to $7.25 per hour by June 1, 2009. Democrats use minimum wage as a wedge issue each election year. And now that Republicans are supporting a minimum wage increase, Democrats are blowing smoke in the eyes of blacks. Democrats are justifying killing the minimum wage increase by pointing to another provision in the law: the death tax reduction that would help the heirs of small farmers and small business owners keep their land and businesses, rather than sell them to pay the death taxes.

Democrats arrogantly kill legislation that would help poor blacks because they know that blacks will vote for Democrats regardless of the harm they cause to black people. Democrats want to keep blacks poor, angry and voting for Democrats. In April 2004, Senate Democrats blocked passage of a bill renewing the 1996 welfare reform law, ending welfare reform in June 2004. Welfare is now back to being just a government handout that breaks up families and traps inner-city blacks in poverty. Democrats oppose school choice opportunity scholarships that would help black children get out of failing schools. Democrats oppose Social Security reform even though blacks on average loose $10,000 in the current system due to a shorter life expectancy for blacks.

Democrats refuse to acknowledge that, in reality, raising the minimum wage makes middle class blacks poorer and keep poor blacks poor. It increases prices and drives small businesses out of business. The minimum wage is not intended to be a living wage for people raising a family. Instead, it is the entry-level pay for untrained and unskilled workers. Democrats have used minimum wage as an emotional, election year ploy so often until now an overwhelming majority of Americans (83 percent to 14 percent), favors raising the federal minimum wage to $7.15 per hour, according to research conducted by the Pew Research Center for the People and the Press.

The full extent of the Democrat Party’s cynicism and brazenly taking the black vote for granted can be gained from a closer review of the major provisions of the House legislation being blocked by the Democrats.

Minimum wage: The bill would increase the hourly minimum wage from $5.15 to $7.25 in three steps: $5.85 on January 1, 2007; $6.55 on June 1, 2008; and $7.25 on June 1, 2009.

Incentives to hire welfare recipients: The law revives incentives for businesses to hire welfare recipients and other workers facing barriers to employment.

Middle income tax cuts: The legislation would extend through 2007 some tax breaks that expired in 2005. The tax cuts include a deduction for college tuition, a deduction for teachers who purchase classroom supplies, and a deduction for state and local sales taxes that are also paid by poor people.

Home mortgage insurance tax cut: The law allows homeowners to deduct the cost of premiums for mortgage insurance for one year.

Research and development: The bill extends the business research and development tax credit through 2007.

Abandoned mines: The legislation increases contribution to states for an abandoned mine fund.

Whistle blower incentives: The law allows whistleblowers to be paid 15 percent to 30 percent of taxes eventually collected from tax evaders who owe more than $2 million.

Death tax: The bill would gradually increases the amount that would be exempt from taxation when people (including athletes and owners of small farms and small businesses) die. By 2015, the amount that would be exempt from taxation would be $5 million for an individual and $10 million for a couple. Also in 2015, estates worth up to $25 million would be taxed at the capital gains tax rate of 20 percent, which would be an increase from the current rate of 15 percent. Estates larger than $25 million would be taxed at 40 percent in 2010 and 30 percent in 2015.