WASHINGTON (AP) – Democrats in a pivotal House panel proposed an additional $ 1,400 in direct payments to individuals, bolstered unemployment benefits and more generous tax breaks for families with children and for lower incomes when Congress began compiling a COVID-19 relief from $ 1.9 trillion package on Monday.
The plan is expected to be closely linked to President Joe Biden’s proposed package to tackle the toll of the coronavirus pandemic, which killed more than 460,000 Americans, and the country’s still-dizzying economy, which has 10 million jobs. lost since the crisis started last year. Biden, less than three weeks after his presidency, has stated that beating the virus and recovering the economy are his top priorities.
The Ways and Means Committee proposal, which plans to vote on it by the end of the week, would also expand the tax credit for families with children, for those with lower incomes, and for Americans who buy health insurance from marketplaces that were founded by the Affordable of former President Barack Obama. Healthcare Act. It would also provide health care subsidies to some unemployed workers.
Spending through ways and means, one of Congress’ most powerful committees, is expected to exceed $ 900 billion, nearly half of Biden’s total plan. The House Education and Labor Committee also previewed its plans Monday, a roughly $ 350 billion package that includes $ 130 billion to help schools reopen safely, $ 40 billion for pandemic-hit colleges and gradually ending the federal minimum wage to $ 15 an hour.
Top Democrats hope the House will pass the full bill later this month and send a final House-Senate version to Biden for signature before mid-March, when crucial emergency unemployment benefits end otherwise.
THIS IS AN GREAT NEWS UPDATE. Below is AP’s earlier story.
WASHINGTON (AP) – Raising the minimum wage to $ 15 an hour would decrease the number of Americans living in poverty and increase wages for millions of Americans, while increasing federal debt and unemployment, a new report from the Congressional Budget Office projects .
The federal deficit would increase by about $ 54 billion in a decade under a Democratic proposal to gradually increase the federal minimum wage to $ 15, largely because the higher wages paid to workers, such as those who care for the elderly, would contribute to an increase in the federal minimum wage. expenses, the estimate found.
Democrats are pushing to include the higher minimum wage as part of their $ 1.9 trillion COVID-19 emergency plan. House committees will begin drafting the legislation this week along the lines requested by President Joe Biden. The Education and Labor Committee has included the pay rise in its section of COVID-19 legislation unveiled on Monday.
In addition to the pay rise, the measure includes nearly $ 130 billion in grants to states to help schools fix ventilation systems, downsize class sizes, and purchase personal protective equipment while communities work to safely reopen schools. Another $ 40 billion would go to colleges and universities, and much of the money would go towards emergency financial aid for students. And about $ 39 billion would be used to provide childcare assistance.
But it is the change to the minimum wage that will be a major early test for Biden as he tries to build public support for his proposal and break disagreements within his own party about how far COVID-19 legislation should go. . Voices on the left like Senator Bernie Sanders, I-Vt., The author of the wage bill, want Democrats to fight for the pay rise now, but some moderates are wary, fearing the consequences for small businesses during the pandemic .
The broader bill is also expected to include a new round of direct payments to Americans, an extension of children’s tax credit, and assistance to states and local governments.
The Congressional Budget Office report cites several positive and negative effects of raising the minimum wage. On the bright side, the number of people living in poverty would drop by about 900,000 if the $ 15 wages were fully secured by 2025. On the negative side, the number of working people would decrease by about 1.4 million.
Rep. Bobby Scott, the Democratic Chair of the House Education and Labor Committee, said the report reinforces arguments for including the $ 15 minimum wage in the COVID-19 bill. He emphasized that the report predicted that 17 million workers who fall below the minimum wage would see a wage increase once the requirement is in place. Another 10 million workers who earn slightly more than the proposed minimum could also see a pay rise.
“At a time when many of our essential workers are still not being paid enough to provide for themselves and their families, we must do everything we can to give these workers a much-anticipated pay rise,” said Scott.
Scott added that the legislation is taking “bold and immediate action” to help reopen schools and protect workers.
Committee Republican, Rep. Virginia Foxx of North Carolina called the proposal a “partisan, slapdash” plan to push the Democrats’ agenda. “This laundry list of leftist proposals is astonishing,” she said.
Lawmakers concerned about small businesses’ ability to pay the higher minimum wage will no doubt point to the job cuts that the CBO said would happen. Business groups like the US Chamber of Commerce said they can support efforts to raise the minimum wage, but cite $ 15 as too high.
White House press secretary Jen Psaki said Biden remains “committed” to a $ 15 minimum wage. But Psaki also noted that the Senate MP has the final say on whether the minimum wage hike remains in the final package. to exist. The accelerated process the Democrats use does not allow for changes in expenditures or taxes that are “incidental” for a larger policy purpose.
The current federal minimum wage is $ 7.25 an hour and hasn’t changed since 2009. Most states also have minimum wage laws. Employees are usually entitled to the higher of the two minimum wages. Currently, 29 states and Washington DC have a minimum wage above the federal minimum wage of $ 7.25 per hour.
On Monday, Democratic lawmakers also unveiled legislation to permanently expand children’s tax credits, with lenders saying Democratic leaders agreed to include their legislation for a year as part of the COVID-19 measure.
Under the legislation, the value of the tax credit would become fully refundable and would expand from $ 2,000 to $ 3,000 for children ages 6 to 17, and from $ 2,000 to $ 3,600 for children under 6 years old.
“If we don’t act now, we miss a historic opportunity to give millions of children a better future,” said Rep. Suzan DelBene, D-Wash.
Democratic lawmakers also insist that payments be made on a monthly basis rather than an annual lump sum.
“If we can land men on the moon, then we can get a monthly checkout on people,” Rep. Rosa DeLauro, D-Conn., The Chairman of the House Appropriations Committee.
Perhaps the biggest question in the COVID-19 bill is who will get another round of incentive payments. In December, lawmakers approved $ 600 checks for individuals earning up to $ 75,000 per year and $ 1,200 for couples earning up to $ 150,000, phasing out payments for higher incomes.
Many lawmakers have called for the next round of government audits to focus more specifically on those whose income has been damaged by the pandemic.
Psaki said Biden believes that families earning $ 275,000 or $ 300,000 may not need direct checks, but the terms of the aid payments were still being discussed.
“There is currently a discussion about what that threshold will look like. A conclusion is not yet final, ”said Psaki. “He believes that a nurse, a teacher, a firefighter who earns $ 60,000 should not be left without support or relief.”
___
Collin Binkley, Associated Press author, contributed to this report from Boston.