The Bill: H.R. 2
Date Passed: Jan. 10, 2007; 5:10 pm
About: The newly Democratically-controlled House passed a gradual increase in the
federal minimum wage, currently at a paltry $5.15/hour, where it has
been stuck since September 1, 1997.
The bill calls for a raise to $5.85/hour to go into effect 60 days after President Bush signs it, then up to $6.55 in a year and all the way to $7.25/hour in two years. (Golly, mister, thanks!)
You may remember that the Republicans successfully blocked this meager raise by attaching it to an increased exemption for the estate tax last year. If not, we can refresh your memory.
Several states, including New Jersey, have taken it upon themselves to pay their residents somewhat better wages:
New Jersey: $7.15/hour
New York: $7.15/hour
Massachusetts: $7.50/hour
Pennsylvania: $7.15/hour (effective July 2007)
While we’re grateful that the Congress has finally increased the federal minimum wage, we must say it falls far short of what should be provided for people. What adult -- with or without a family -- could really live on $5.85/hour or $7.25/hour (a projected yearly salary of $12,168-$15,080)? Just take a look at estimates of one month’s expenses for a one-parent household with a child in Jersey City, according to the Economic Policy Institute:
Housing: $1100
Food: $265
Childcare: $524
Transportation: $272
Healthcare: $413
Taxes: $369
Other Necessities: $480
Total: $3423
Annual Total: $41,076 (or an hourly wage of about $19)
Recognizing this, some cities have passed local living wage laws that account for the cost of living. These ordinances typically apply to businesses that contract with the city or county:
Washington, DC: $11.75 with and without health benefits (passed in 2006)
Santa Barbara, CA: $12.00/hr; $14.00/hr without health benefits (passed in 2006)
Miami, FL: $10.58; 11.83 without benefits (passed in 2006)
Cumberland County, NJ: $8.50/hr; $10.37/hr without health benefits (passed in 2001)
Camden, NJ: In December 2001, the Camden City Council passed a living wage law that would require city contractors to pay workers who receive medical benefits at least $8 an hour. Those not provided with medical benefits would have to be paid at least $9.50 an hour. The mayor vetoed it in July 2003.
Hudson County, NJ: $7.73 with and without benefits (passed in 1999)
So, what's more pathetic -- that this raise is actually worth celebrating or that a Republican-controlled Congress fought against this pittance for 10 years?
Yesterday's bill passed the House by a vote of 315-116.
They Voted For It:
Robert Andrews (D-1)
Frank LoBiondo (R-2)
Jim Saxton (R-3)
Christopher Smith (R-4)
Frank Pallone, Jr. (D-6)
Mike Ferguson (R-7)
Bill Pascrell, Jr. (D-8)
Steven Rothman (D-9)
Donald Payne (D-10)
Rodney Frelinghuysen (R-11)
Rush Holt (D-12)
Albio Sires (D-13)
They Voted Against It:
E. Scott Garrett (R-5)
Please call your Congressman and thank him for voting for the increase but say we need the federal minimum wage to still go higher. If Garrett is your congressman call him and politely ask how much he makes a year.
ON THE WEB:
Minimum wages around the country
Economic Policy Institute
How They Voted is a regular City Belt feature breaking down how New Jersey’s congressmen voted on the bills we think are important.
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