Senate Overwhemingly Approves Minimum-Wage Increase

Democratic lawmakers passed another legislative priority for the party's so-called "First 100 Hours." Senate Republicans also overwhelmingly joined in to raise the minimum wage to $7.25 (H.R. 2). The Senate voted 94-3 last week to increase minimum wage by $2.10 over two years, while attaching $8.3 billion in tax breaks over 10 years for small employers that the House bill did not have. The minimum wage was last raised in 1997.

The Senate's tax-relief measures include an immediate deduction for property and equipment, an extension to depreciation periods for restaurant and retail property, and more tax credits for hiring high-risk youth and veterans, among other benefits.

It is expected that the House and Senate can reconcile the differences between the two versions of H.R. 2. Senator Harry Reid, D-Nevada, has been working closely with House Speaker Nancy Pelosi, D-California, to ensure a minimum wage bill will be passed.

The Senate's overwhelming approval bodes well that Congress will enact a minimum wage increase within the next couple of weeks.

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Further readings:

• Inc.com, Democrats Tangle Over Minimum Wage Increase
• SHRM Online, Senate Passes Minimum Wage Measure
• Fast Casual, Higher Wages Could Chill Hiring for Restaurants