Congressional Democrats are backing a bill to increase the federal minimum wage, which some fear will hurt small businesses that can’t afford the additional outlay. Iowa Senator Chuck Grassley, a Republican, says he’s introducing legislation in committee today (Wednesday) that would be attached to the minimum wage bill to provide eight-billion dollars in tax cuts for small businesses to ease the financial blow.
Grassley says "The tax incentives include credits for small businesses that hire hard-to-employ workers, increased deductions for improved buildings and measures to help small businesses with bookkeeping by allowing simpler expensing and accounting methods." Small businesses employ the majority of workers, both in Iowa and nationwide, and Grassley says it’s important the proposed minimum wage increase doesn’t force employers to cut jobs.
Grassley says "The tax package will help preserve jobs even though most economists admit that there’s some unemployment when you increase the minimum wage, particularly because small business can’t pass it on, but the tax relief bill should help us make it easier for small businesses and preserve jobs." Grassley’s bill is being co-sponsored by Senate Finance Committee Chairman Max Baucus, a Democrat from Montana.