Top Senate Democrats are working on a plan to punish large corporations that don’t have a minimum wage of $ 15 an hour, two sources confirm to The Hill.
Chairman of the Senate Finance Committee Ron Wyden
Ronald (Ron) Lee WydenHouse Democrats Pass sweeping .9T COVID-19 Minimum Wage Hike Embossed Bill House To Vote Tight On COVID-19 Aid Package On The Money: Democrats Struggle To Save Minimum Wage Hike | Personal incomes rise, inflation remains low after stimulus MORE erupts (D-Ore.) And Budget Chairman Bernie Sanders
Bernie SandersHouse Democrats pass sweeping .9T COVID-19 emergency bill with minimum wage hike House wants tight vote on COVID-19 emergency package On The Money: Democrats struggle to save minimum wage hike | Personal incomes rise, inflation remains low after stimulus MORE erupts (I-Vt.) Heaped up their “Plan B” after the MP ruled that a direct hike in the minimum wage to $ 15 an hour did not comply with secretive fiscal rules dictating what could be included in the bill for coronavirus relief.
Under the backup plan, drafted by Wyden on Friday, large companies would face a 5 percent tax fine if they paid employees less than a certain amount, with the amount of the fine increasing over time. Democrats were also looking for tax incentives for small businesses to increase their wages.
But Democrats have dropped the effort, with a well-known source telling The Hill there were concerns that working out the details could slow the overall coronavirus bill. Democrats want to get the bill President Biden
Joe BidenNoem Praises South Dakota Coronavirus Response, Blocks Lockdowns In CPAC Speech On The Trail: Cuomo and Newsom – A Story From Two Controversial Governors Biden Celebrates Vaccine Approval But Warns ‘Could Reverse Current Improvement’‘s desk before unemployment benefits expire in weeks.
“We worked through the weekend and it became clear that completing ‘plan B’ with the caucus would slow the passage and risk going over the cliff for unemployment benefits on March 14,” the source said.
A source close to Sanders confirmed that he also did not go ahead with offering the idea as an amendment to the coronavirus law, which he initially promised to do Thursday night.
“He is committed to raising the minimum age to $ 15 an hour, and is working on strategies to get it done,” the source added.
The decision, first reported by The Washington Post, is the latest setback for progressives, who hoped to use the coronavirus relief bill to raise the minimum wage to $ 15 an hour.
The House this weekend passed sweeping $ 1.9 trillion legislation, including the minimum wage hike. But because of the MP’s ruling – and neither the White House nor major Democrats willing to ignore that advice – the language is expected to be stripped this week when the Senate passes the COVID-19 bill.
Even if the MP had decided on the $ 15-an-hour minimum wage, it would likely have faced changes in the Senate as the proposal lacks the backing of 50 Democratic senators. Sen. Joe Manchin
Joseph (Joe) Manchin Progressives Vaporize Over Senate Setbacks Politics, Not Racism or Sexism, Declare Opposition to Cabinet Nominees Biden House Democrats Pass Dramatic .9T COVID-19 Emergency With Raising Minimum Wage MORE (DW.Va.) and Kyrsten Sinema (D-Ariz.) Have expressed opposition and there were ongoing discussions among a broader group about things like tipped employees and how to structure the increase.
Neither Manchin nor Sinema had publicly weighed in on the backup plan, but the White House gave the “Plan B” a publicly cool reception.
“ Our focus will be on the urgent priority of making this package a success and providing the assistance so badly needed: $ 1,400 bailout checks for most Americans, funding to get this virus under control, help to reopen our schools and urgent help for the people hardest hit by this crisis, ” a spokesman said Friday.