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Federal Minimum Wage Goes Up Tuesday

By Joseph S. Enoch
ConsumerAffairs.com

July 23, 2007
The federal minimum wage increases from $5.15 to $5.85 per hour tomorrow.

It is the first increase in 10 years and is the first of three 70-cent increments.

The minimum wage will rise to $6.55 one year from now and $7.25 a year after that.

Many states have minimum wages higher than tomorrow’s increase. The federal increase will affect workers in 24 states which have lower minimums.

The wage hike represents one of the few accomplishments the Democratic Congress has enjoyed so far.

Because of the slim 50-49 Democratic lead in the Senate and President Bush’s veto power, most bills have either not passed or have been diluted to win passage.

The minimum wage bill was passed only with the inclusion of many business tax breaks.

The bill was also attached to a larger appropriations bill that included many defense spending allowances, one of Bush’s top priorities.

Many Republicans still argue that the wage hike is not necessary.

“This legislation gets an A in politics and a D- in economics,” Rep. Jack Kingston (R-Ga.) said during the House debates. “Most minimum wage workers are well above the poverty line. Fifty two percent are teenagers, have an entry-level job or work part-time.”

About 1.7 million people made $5.15 or less in 2006, according to the Labor Department's Bureau of Labor Statistics.

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