Congress considers minimum wage increase
By Jake Carter
[email protected]
Staff Writer
For the past several years, minimum wage has been locked in nationally at $5.15 per hour. A few states such as California have increased minimum wage within their borders, but a bill is currently going through the Senate which may raise the wage nationally to $7.25 per hour.
According to the Congressional Record, the bill Congress is looking at is set up so that minimum wage will increase over a period of three years going from $5.15 an hour to $5.85, then again to $6.55 one year later, and finally reach $7.25 one year after that.
Outside the political realm, the bill is finding mixed reactions. College and high school students are generally supportive of the bill, while some small business-owners are skeptical.
As with the last increase in the minimum wage, many people are afraid that the cost of goods and services will go up to match the increased earnings.
Becky Ruby, the press secretary for Republican Congressman Phil Gingrey, stated that the bill passed in the Democratic-controlled House without any tax breaks for small businesses. However, the Senate version of the bill was revised to include tax breaks.
Congressman Gingrey opposed the House bill, stating that northwest Georgia's economy is largely dependent upon small businesses and that raising minimum wage without adding tax breaks may destroy it.
On Feb. 1, the Senate compromised by passing a version of the bill by a 93-4 vote that added tax provisions for businesses.
Many college and high school students have shown support for the bill. �I am for the raise in minimum wage; it needs to be raised to match the high cost of living,� said Rodney Turner, an education major. �However, I am afraid that there might be some long�term consequences against small businesses.�
Many small businesses owners are against the bill. �I think that the bill is a purely political move and a bad idea,� said Richard Yadkowski, the owner and operator of the Chick-fil-A in Mount Berry Square mall.
�The bill will only hurt the economy in the end since many small businesses will not be able to support the rise in costs even with the raise being spread over a three year period. In the end it will just result in businesses shutting down and people becoming unemployed,� said Yadkowski.
GHC is also an employer of students and may be affected by the bill. Ken Reaves, the GHC human resource director, said. �The bill will have no immediate affect on the college and the student workers. However, when it reaches $7.25 we will raise what the students are paid to match the requirements.�
Reaves further stated that he personally believes it is time for the minimum wage to be raised again. �Even the $7.00 range is tough when it comes to surviving these days,� he said.
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