Scripps Howard Foundation Wire

WASHINGTON – Democrats are looking ahead to the next congressional showdown: raising the federal minimum wage.
In the coming weeks, Democrats in Congress will bring forth a proposal that would raise the minimum wage to $10.10 an hour over three years, a number higher than the $9 proposed by President Barack Obama during his State of the Union address in February.

The Fair Minimum Wage Act, also known as the Harkin-Miller bill, after Sen. Tom Harkin, D-Iowa, and Rep. George Miller, D-Calif., bumps up wages by $2.15 from the $7.25 established in 2007.

Harkin and Miller discussed the legislation Tuesday at the Economic Policy Institute, a liberal economic think tank.
“When our bill is implemented, the minimum wage will no longer be the poverty wage,” Harkin said.

The bill, first introduced in March, calls for a raise of 95 cents a year for three years. After that it would be indexed to inflation.

Tipped minimum wage workers earn $2.13 at the federal level, frozen since 1970. Under the bill, these wages would rise to 70 percent of the regular minimum wage.

As with much legislation, the bill will face opposition. One argument against it is that it would put a strain on business owners and force them to eliminate jobs.

Jason Furman, chairman of the White House Council of Economic Advisers, said that looking at labor economics, there is no adverse impact.

Furman, who also sat on the panel, pointed to a letter signed by 75 economists who support the view that raising the minimum wage would have a positive effect or no effect on employment.

“The vast bulk find zero effect,” Furman said.

Seven Nobel laureates have signed the letter, addressed to Obama and congressional leaders.

Staying true to the practice that has resulted in much Washington gridlock, Harkin said the number is non-negotiable.

“There are going to be attempts to lower this from $10.10 down,” Harkin said. “There is some negotiation that can happen on it, but $10.10 is a bottom line. We cannot go below that.”

Furman argued that going below that number would not lift workers above the poverty line.

You want to set a minimum wage that, if you’re working full time year-round, you’re going to be able to raise your family above the poverty line” You want to set a minimum wage that, if you’re working full time year-round, you’re going to be able to raise your family above the poverty line, and when you take into account tax credits, the $10.10 would take you above that,” Furman said. “It would lift 1.6 million people out of poverty, and in total 8.8 people in poverty would see their wages go up.”

With the federal budget stalemate behind, Harkin said the Senate will take up the bill following its weeklong break next week.

“If we don’t get it on the first round, then we’ll come back and try it again,” said Harkin, who announced he will retire next year. “There will be more than one opportunity for Republicans in the Senate to change their minds.”

In the House, Miller also hopes to drum up support, even with midterm elections months ahead.

“I do not think you’re going to ask your caucus to take into that election the killing of the minimum wage in this economic situation,” he said. “I think if you want to continue to burn your brand, stay opposed to the minimum wage.”

Miller, who is also retiring at the end of this year, said he sees a path forward.

“I think between now and the end of this session of Congress, there will be a majority of members of the House, Republicans and Democrats, that will support the minimum wage,” Miller said. “Republicans have been suggesting that maybe there is a way that they can support this.”