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SNOWE VOTES FOR SMALL BUSINESS TAX RELIEF AND INCREASE OF FEDERAL MINIMUM WAGE
‘Fair Minimum Wage Act’ Passed 94 to 3 – Raises Minimum Wage for First Time in 10 Years
WASHINGTON D.C. – U.S. Senator Olympia J. Snowe (R-Maine) today voted in favor of legislation that raised the minimum wage for the first time in ten years and provided significant tax relief to millions of American small businesses. The Fair Minimum Wage Act, which passed the Senate by a vote of 94 to 3, will increase the federal minimum wage to $7.25 an hour over the next two years. The Maine state minimum wage is currently $6.75.
“The passage of legislation increasing the federal minimum wage was long overdue,” said Senator Snowe. “ This legislation achieves a rare and remarkable ‘win-win’ for America’s small businesses, their employees, and the American economy without adding to our national debt. It is the right thing to do and the fiscally responsible thing to do for hard working Americans and small business owners throughout the country.”
The Fair Minimum Wage Act (H.R. 2) would increase the Federal minimum wage to $7.25 per hour, in three steps phased in over two years – (a) First Step: $5.85 per hour, beginning the 60th day after enactment; (b) Second Step: $6.55 per hour, beginning 12 months after that 60th day; and (c) Third Step: $7.25 an hour, beginning 24 months after that 60th day. If signed into law, this would be the first increase in the Federal minimum wage since 1997, when the minimum wage was increased to $5.15.
In April 2006, Governor Baldacci signed a law that raised the then-current minimum wage rate of $6.50 to $7 dollars by in October 2007. The Maine minimum wage is automatically replaced with the Federal minimum wage rate if the Federal is higher than the State minimum.
Reducing Small Business Tax & Regulatory Burdens
“ The Fair Minimum Wage Act contains a number of provisions I have long championed that would significantly reduce the unfair burden of compliance placed on small businesses and simplify federal tax rules. Instituting small business expensing, cash method accounting, and extending the Work Opportunity Tax Credit for example, would provide targeted, affordable tax relief to small business owners, make compliance much less difficult, and enable small business owners to spend more time and energy maintaining and growing their businesses,” Snowe said.
The Fair Minimum Wage Act contains a number of small business tax provisions authored and supported by Senator Snowe, including:
- Accelerated Depreciation for Property Improvements - reduces from 39 to 15 years the depreciable life of improvements that are made to retail stores that are also owned by the retailer. Currently, only retailers that lease their space are afforded this accelerated depreciation for property improvements. This provision is based on legislation (S. 271) introduced by Senators Snowe, Lincoln, Hutchison, and Kerry this Congress.
- Small Business Expensing - includes a one-year extension relating to small business expensing as part of this package. Small business expensing provides substantial savings both in dollars and in the time small businesses would otherwise have to spend complying with complex and confusing depreciation rules.
- Work Opportunity Tax Credit - extends this tax credit for five years and expand the targeted groups to include disabled veterans from Iraq and Afghanistan. This tax credit is an effective incentive for employers to hire those who need a job the most with over 4 million workers having participated in the program according to the DOL.
- Small Business Cash Method Accounting - simplifies tax compliance by permitting small business owners to use the cash method of accounting for reporting their income if they generally earn fewer than $10 million during the tax year.
- Assisting Women Small Businesses and Entrepreneurs
“There can be no doubt the Women’s Business Center program has been an indispensable partner and a tremendous resources to the fastest growing group of small business owners in the United States: women. Today, there are more than 10.4 million women owned small businesses in the United States generating nearly $2 trillion in annual revenue and employing more than 12.8 million workers,” said Snowe. “Yet, despite their unquestionable success, women entrepreneurs continue to face tremendous challenges – access to business assistance, access to capital, and access to Federal government contracting opportunities. The Women’s Business Centers Grant Program has provided the resources and tools necessary for hundreds of thousands of women to over come those obstacles.”
- The Fair Minimum Wage Act includes an amendment that Senator Snowe cosponsored with Senator John Sununu’s (R-NH) and Senator Kerry (D-MA) which will renew and make permanent the Women’s Business Centers Grant Program. This amendment was based on Senator Snowe’s legislation in the 108 th and 109th Congress.
- This legislation supports the fastest growing group of small business owners in the country, women small business owners, by providing them with access to the experienced services of long-term counseling and small business education and training. In 2006 there were 55,000 women owned small firms, generating an astounding $7.6 billion in sales in Maine. In 2006, 99 Centers nationwide served more than 144,000 clients across the country.
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