Senator Bernie Sanders (IV.T.), chair of the Budget Committee, speaks at a hearing of the U.S. Senate Budget Committee on wages at large corporations on Capitol Hill in Washington, Feb. 25, 2021.
Stefani Reynolds | Reuters
Top Democrats are drafting new plans that would penalize large corporations that pay their employees less than $ 15 an hour after a senate official ruled Thursday that the party could not include a wage increase in its $ 1.9 trillion stimulus bill.
Democrats led by Sens. Bernie Sanders, I-Vt., And Ron Wyden, D-Ore., Pledged to pursue changes to the existing aid package that would penalize companies that pay employees below a set hourly rate.
Sanders quickly rebuked Senate MP Elizabeth McDonough’s decision Thursday evening that a proposed $ 15 minimum wage provision failed to meet the strict budgetary standards imposed as part of the budget reconciliation process.
“I absolutely disagree with the Senate MP’s decision,” Sanders said in a press release on Thursday. “In the coming days, I will work with my colleagues in the Senate to move forward with an amendment to remove tax deductions from large, profitable companies that don’t pay employees at least $ 15 an hour and to provide small businesses with the incentives that they need to increase wages. “
“That amendment should be included in this alignment proposal”, he added.
On Friday morning, Wyden, who is working closely with Sanders on the change, gave more details about the “Plan B.”
He said his amendment, if accepted, would impose a 5% fine on a large company’s total payroll if employees earn less than a certain amount. Wyden added that the fine would increase over time and include safeguards to prevent companies from attempting to outsource labor to avoid paying a living wage.
“We couldn’t get through the front door or the back door, so we’ll try to go through the window,” Wyden said of the new plan. “As the talks continue, I think this ‘Plan B’ provides us with a path to move forward and get this done through the reconciliation process.”
The US last raised the minimum wage to $ 7.25 an hour in 2009.
Wyden, who is also the chair of the Senate Finance Committee, added that his amendment would provide an income tax credit equal to 25% of wages, up to $ 10,000 per year per employer, to small businesses paying their employees higher wages.
A senior Democratic aide confirmed Friday that Senate leader Chuck Schumer, DN.Y., is considering adding a provision to the bill in line with what Sanders and Wyden have proposed.
While Democrats were more outspoken about the parliament’s decision, Republican Senator Josh Hawley of Missouri is working on a new piece of legislation to increase the minimum wage for workers.
Hawley, who faced fierce bipartisan criticism for voting to undo President Joe Biden’s election, announced a bill on Wednesday that would grant low-wage workers a “bonus” through an automatic, prepayable tax credit.
Hawley’s office hailed the plan as better than an increase in the minimum wage because it does not “place a major new burden on small businesses, many of which are still recovering from damaging shutdowns.”
The senators will have a chance to make changes to Biden’s $ 1.9 trillion stimulus plan after the House passes the legislation with a vote expected in the lower house later Friday. Democrats have a meager 50-50 majority in the Senate, with Vice President Kamala Harris as the main casting vote.
Still, the debate over the bill in the Senate is expected to be full of pitfalls, as a single Democratic vote against the plan would sink it.