U.S. Businesses at Odds Over Minimum Wage (AP)

U.S. Businesses at Odds Over Minimum Wage

By JIM KUHNHENN
The Associated Press
Tuesday, January 30, 2007; 3:21 AM

WASHINGTON -- America's businesses are at odds over minimum wage legislation,
but the rift has little to do with a $2.10 hourly raise.

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At issue are tax breaks contained in the Senate bill as sweeteners to attract
Republican votes for the minimum wage increase. The legislation would increase
the federal minimum from $5.15 to $7.25 an hour in three steps over the next
two years.

The bill also includes business tax credits, deductions and other tax advantages
worth $8.3 billion over 10 years that are designed to help small businesses
overcome potentially higher labor costs.

To help pay for the cost of those tax breaks, corporations no longer would be
able to deduct the cost of jury verdicts or settlements in liability suits against
them and their executives' tax-deferred pay packages would be capped at
$1 million a year.

The bill's business critics are especially annoyed that the tax benefits would be
short-term while the provisions that pay for them would alter tax law for the
long-term.

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