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Federal Minimum Wage and November Ballots

July 30th, 2006 Posted by Christine

After the 2004 elections it was shown that over two thirds of the voting populations were in favor of an increase in the current Federal minimum wage rate of $5.15. It has even been said that had Senator John Kerry come on board with the proposed wage increases he may have even garnered many of the votes that eventually led to President George W. Bush’s re-election.

Now I am not a political person nor do I wish to get into a political debate. One thing that does strike me as odd is that if so many individuals in the United States are hoping for a new wage and even vocalizing the need for a higher wage, why it is that the wage has yet to be raised since 1997?

I have read that many states will have state wide minimum wage increase bills on this November’s ballots. It has also been said that although the House has passed the bill calling for a proposed increase in the wage it will likely be shot down once it reaches the Senate. I heard that one suspected reason is that the Senate is awaiting results in their state minimum wage voting. As we all know the higher of the two wages, either state or federal, is what sets the bar for minimum wage in that area.

Many voters are expected to turn out this year within the states whose wage is up for increase. That being said, it is also re-election time for many members of the Senate. I have read that many members of the Senate may be hesitant to pass a new Federal minimum wage prior to the state wide voting regarding minimum wage because this may cause voters to decline in coming out, feeling that their issue regarding more pay would be resolved. Therefore fewer voters would be available to help re-elect those up for re-election this year.

From what I have heard the wage increase may be on the back burner to accommodate the November elections and then be revisited if necessary. It has also been said that attaching the federal minimum wage to the large estate tax cuts may also lead to the wage bill’s ultimate demise.

Regardless of the outcome I find it extremely interesting to watch the unfolding speculation as to whether we will see a federal wage increase this year or not. The theories on why it may or may not come about are almost as interesting as how the actual increase could potentially affect our economy.

Thank you!

Christine M. Carter

Business Compliance Advisor