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Monday, July 31, 2006


Pence calls minimum wage increase "excessive," says it will "hurt the poor and those entering the workforce"
Rick Yencer of the Muncie Star-Press authored this article about raising the minimum wage in yesterday's print edition.

Here is an excerpt:

"The House voted 230-180 early Saturday to pass the minimum wage hike that was coupled with permanently cutting the estate tax to gather enough bi-partisan support.

"Depending on Senate action, the hourly minimum wage would go from $5.15 to $7.25 over three years.

"Pence, chairman of the conservative Republican Study Committee, said the vote was difficult, given his support for permanent estate tax relief. But raising the minimum wage by an 'irresponsible' 41-percent also would hurt the same people, farmers and small business owners, that the estate tax relief would benefit, the congressman explained.

"'Minimum wage increases raise unemployment among teenagers, minorities and part-time workers,' said Pence. 'The minimum wage violates fundamental free market economics...It costs jobs.'

"The bill also added more mandatory spending to the federal budget, adding nearly $4-billion over the next 10 years. Pence said he could not support any action that also busted the budget."

######

Gail Russell Chaddock of The Christian Science Monitor provided this account of the vote.

Here is an excerpt:

"For many Republicans, the pairing of estate-tax relief with a hike in the minimum wage is an even higher hurdle.

"Conservatives have long pushed for permanent repeal of the estate tax - they like to call it the 'death tax' - but they don't want it paired with an increase in the minimum wage.

"'I want permanent death tax relief. But I cannot in good conscience vote for a bill that also contains an excessive minimum wage increase that will hurt small businesses and cost American jobs,' said Rep. Mike Pence (R) of Indiana, a fiscal hawk."

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