August 03, 2006

minimum wage increase paired with estate tax repeal

Believe it or not, a minimum wage increase was paired with something that AFL-CIO thought was so unfair that it opposes it.

"We don't think minimum-wage workers should have to wait for millionaires to get another tax cut before they receive a long-overdue pay increase," said Bill Samuel, the AFL-CIO's legislative director.

According to this Washington Post article.

But business lobbyists said the trade-off between a lower estate tax and a higher minimum wage clearly favors the business community and upper-income Americans. The proposed reduction in the estate tax would lower federal tax revenue by $268 billion over the next decade, according to one estimate.

This 'compromise' hardly seems to make sense.

1 comment:

The Mirrorball Man said...

I am hoping that Americans aren't fooled by this political maneuvering and instead read into it what it really is: A poor attempt by Republicans to give handouts to the wealthy while claiming to support the poor. At best, they hoped to defuse a top priority election issue for the Democrats. At worse, they pass their Estate Tax reductions.

But as they all note, they are blackmailing those who rely on the minimum wage to give bigger and bigger handouts to the wealthy.

According to MSNBC, Mr. Frist claims: “This death tax punishes everyday Americans by forcing them to give up their business, to give up their farms.”

However, takes him to task in an article from a little while ago, which was originally written to expose the lies in an advertisement that supported the repeal of the Estate Tax:

---Contrary to ad's claim that "your family" might be crippled, the vast majority of families actually are not affected by the estate tax. In fact, less than 3 percent of deceased adults in 2002 had estates subject to the tax, according to the nonpartisan Urban-Brookings Tax Policy Center and figures from the IRS.

And though the ad focuses on family farms and businesses, the truth is that very few actually pay the estate tax. The Tax Policy Center projects that roughly 440 taxable estates were primarily made up of farm and business assets in 2004.

And even considering estates for which farming or business was a sideline, the Center found only 7,090 taxable estates for 2004 that included any farm or business income. That's still just 38 percent of all taxable estates. The fact is that repealing the estate tax entirely, as the ad advocates, would benefit mostly non-farmers and non-business-owners.---

Perhaps the Washington Post would be a better source?

The issue is insane. The Estate Tax is nothing more than a handout, not a protection for farmers or small business owners.

The people who suffer because they live in poverty earning the minimum wage are real. The people who lose their farms because of the Estate Tax are not. Again, the Democrats are siding with people, and the Republicans with corporate interests. Who's shocked?