Congress Passes New Minimum Wage Bill

Today on January 10, 2007, the United States House of Representatives voted to increase the minimum wage from $5.15 to $7.25. The bill was passed by the House of Representatives by a huge vote in favor of the bill 315-116. The Democrats which control the House of Representatives believe that a new minimum wage increase on the federal level will help the average worker who works daily but is still near the poverty line. Minimum Wage workers who work every day still do not receive enough money under the old $5.15 system. Democrats are hoping that this new bill will stimulate the economy. Some Republicans on the other hand, including President Bush, believe that the new minimum wage increase will hurt small businesses and force many of them to close. Another reason Republicans opposed the bill was because they felt it decreases flexibility for employers to hire and fire workers and adds to the businesses expenses of employers.

The bill still has to pass through the Senate in order to be ratified and then must pass through the hands of the president who has the option of vetoing the bill if he chooses. President Bush opposes this bill so it isn't out of the question for him to oppose it. If he vetoes the bill, the minimum wage bill will be sent back to the Senate where they must override the presidential veto by a large majority of voters.

The minimum wage bill will increase the federal hourly wage over the course of 26 months. This is all part of the Democratic plan to make drastic changes in Congress in its first 100 hours of the New Year since the Democratic Party now controls the Senate and House of Representatives for the first time in years. Under the bill, by the end of the year the federal hourly wage will be at $6.55 and rise to $7.25 by the end of the 26 month period of the bill's signing.

The Democrats are hoping to reshape the country and economy with its new plan to make changes in the first 100 hours which was a campaign slogan used by Democratic Party leader and House Speaker Nancy Pelosi from California and Nevada Senator Harry Reid. The Democrats will have a real challenge getting this bill to pass through the Senate since they only have a majority by 2 votes. However, in the House, many Republican Congressman supported and voted for the bill and Democrats are hopeful that Republican senators will also vote for the bill in a bi-partisan effort.