ACTION ALERT: CLOSE SENATE VOTE EXPECTED FRIDAY: TELL SENATORS TO OPPOSE BAIT AND SWITCH MINIMUM WAGE PASSED BY THE HOUSE
8/3/06

CLOSE SENATE VOTE expected Friday. TAKE ACTION NOW!

CALL YOUR SENATORS TOLL FREE, 800-459-1887*

EMAIL YOUR SENATORS through Interfaith Worker Justice by clicking here.

Tell Senators to Vote NO on legislation that undermines the Fair Labor Standards Act and holds minimum wage workers hostage to budget-busting giveaways for millionaires and billionaires. Tell them to support a clean minimum wage raise with no poison pills.

Legislation passed by the House, HR 5970, The Estate Tax and Extension of Tax Relief Act of 2006:

  • CUTS THE PAY OF TIPPED MINIMUM WAGE WORKERS.
  • RAISES THE MINIMUM WAGE AT AN UNACCEPTABLY SLOW RATE.
  • GIVES BILLIONS OF DOLLARS IN TAX CUTS TO WEALTHY HEIRS to fortunes from Wal-Mart and other low-wage businesses.

More tax cuts for the nation's richest heirs means:

  • MORE BUDGET CUTS in health care, education, environment, economic development and other vital services and infrastructure.
  • Hundreds of billions of dollars in INCREASED NATIONAL DEBT to be paid by working families in the future.

HR 5970, The Estate Tax and Extension of Tax Relief Act of 2006, slowly raises the federal minimum wage to $5.85 an hour on January 1, 2007, $6.55 on June 1, 2008, and $7.25 on June 1, 2009. In those three years, inflation will shrink the long-overdue raise.

HR 5970 cuts the minimum wage for tipped workers in seven states. Under current federal law, employers can pay tipped employees as little as $2.13 an hour if tips bring their pay to at least $5.15. Seven states require the same minimum wage rate for tipped and non-tipped employees: Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington. HR 5970 cuts the wages of tipped employees in these states by striking down state and local laws that require employers to pay a full minimum wage without relying on tips from customers. It would deal an especially severe blow to workers in states such as Oregon and Washington where the minimum wage is now $7.50 and $7.63 respectively, and adjusted annually for inflation.
 
HR 5970 undermines the Fair Labor Standards Act. As the Economic Policy Institute explains, "HR 5970 is the first time in history that the federal government has acted to put a ceiling on minimum wage levels, rather than establishing a national floor from which the states can make improvements."

TAKE ACTION NOW!

Call Your Senators Toll-Free, 800-459-1887* and tell them:

Vote NO on HR 5970 and any legislation that undermines the Fair Labor Standards Act and holds minimum wage workers hostage to budget-busting giveaways for BillionHeirs.

*The toll-free number directs you to the U.S. Capitol Switchboard - call twice; first ask for one of your Senators, then the other.

The toll-free number is provided courtesy of the American Friends Service Committee, a Quaker organization whose work for social justice, peace, and humanitarian service includes campaigns for a moral budget and a fair minimum wage (www.afsc.org/economic-justice/).  AFSC welcomes groups to circulate and use the toll-free number in support of nonpartisan budget goals and without linking the alert to a website soliciting donations or actions which may be used to support partisan lobbying or work.

RESOURCES
Let Justice Roll Chart: States With Minimum Wage Above $5.15 Federal Rate

Center on Budget and Policy Priorities (CBPP), Putting Their Cards on the Table: Senate Budget Bill Indicates Intention to Pay for Tax Cuts by Sweeping Cuts in Programs for Middle- and Low-Income Households, 8/2/06

CBPP, Since Last Minimum Wage Increase, Congress Has Reduced Estate Tax Burdens Nine Times, 8/2/06

CBPP, Comparing the House Minimum Wage and Estate Tax Proposals: Who Benefits and By How Much?, Revised 8/1/06

Economic Policy Institute, House-passed minimum wage bill cuts wages for tipped employees in seven states by as much as $5.50 per hour, 7/31/06
 
United for a Fair Economy and Public Citizen Congress Watch, Spending Millions To Save Billions: The Campaign of the Super Wealthy to Kill the Estate Tax, April 2006

 
 
 

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