Looks like there was maybe an interesting vote on the minimum wage bill, House Bill 1027. I haven’t seen the news reports and am going only off of the stuff posted on the General Assembly’s website, so I hope I am not getting this wrong.
The House Ways & Means passed the bill as amended by a vote of 14 to 10 along party lines. The amendment increased an inheritance tax exemption from $100,000 to $200,000. The rest of the bill increases the minimum wage from $5.15/hour currently to $6/hour on 9/1/2007, $6.75 on 3/1/08, and $7.50/hour on 9/1/08.
It also increases the wage claims the Commissioner of Labor can take assignments on from $800 to $3,000. (Basically, for these claims, the Department of Labor can act on behalf of the employee against the employer attempting to get the employee paid.)
However, the House Republicans attempted to substitute their own minority committee report. Recall, that the House Dems passed the bill to the House with an amendment increasing the inheritance tax exemption from $100,000 to $200,000. Doubling the exemption was insufficient for the House Republicans. With their proposal, the exemption would have gone to $200,000 on July 1, 2007; to $300,000 on July 1, 2008; and the inheritance tax would have been eliminated after July 1, 2009. This proposal was defeated by a vote of 48 to 51.
I guess this pretty well highlights the nature of the class warfare between the parties. The fact that our legislators see inheritance tax breaks as a natural counterpart to a minimum wage increase disturbs me a bit. But, it’s not really a fair fight. The Democrats do not seem to fight nearly as hard for the poor as their counterparts do for the very rich.
Why (he asks rhetorically) is it always the estate taxes singled out for elimination? Sure, everybody hates taxes. If we could fund government without taxes, that would be neat. But, since that isn’t going to happen and we are going to need taxes of some sort, why not target the more objectionable taxes first? The moral claim of a worker to his or her paycheck at the end of the week is clearly stronger than the moral claim of an heir to the proceeds of a decedent’s estate. So, it seems like a no brainer that the income tax ought to be reduced or eliminated long before we start reducing estate taxes.
[tags]HB1027-2007, taxes, class warfare [/tags]