George Bush's position on

Minimum Wage: Congress is currently considering raising the minimum wage by $1.50, from $5.15 to $6.65 per hour in three installments. The fair Minimum Wage Act of 2004 would increase that to $7.00 per hour. Congress last enacted legislation in 1996, increasing the minimum wage by 90 cents from 1996-1997. link

Description of candidate's position: Bush supports raising the federal minimum wage under two conditions: states would be allowed to opt out of the provision, and huge tax breaks for businesses. He contends that both these provisions will help support local businesses, because they will be able to adapt to local conditions. But because neither of these is likely to happen, Bush's policy may as well have been to abolish minimum wage. Link

Quotation from the candidate: "My opinion is, is that I think there is a reasonable level to which we can raise the minimum wage and, at the same time, make sure small businesses are not penalized. And Mitch McConnell is working on such an idea on the Senate floor, and I'm going to continue working with Mitch. No, I understand what you're saying. It's very important that we have a wage policy which does not price people out of jobs. And so I'm confident that if there is a minimum wage increase, it will, one, be reasonable, and two, will make sure small businesses aren't hurt." Link

Assessment of the proposal:

Positive: The National Center for Policy Analysis asserts that an increase is not necessary because the lowest wage earners are teenagers, not primary earners. Also, 40% of adults with low paying jobs lack the skills necessary to perform even basic jobs, and so focusing on wages misdirects the attention from education. link

Negative: The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) website indicates that a state opt out or tax cuts would destroy the floor that the Federal labor Standards Act would create, making it unlikely that any corporation would pay anything close to minimum wage. link

Comparison: There are two main differences between the GOP and Democratic plans. The GOP would like to allow states to opt out of the minimum wage increases, and would also phase in the minimum wage in three installments. The Democrats, on the other hand, would require states to comply with the mandate, and would use two installments to make the increase. After 2006, inflation will have eroded any benefit from an increase, which is why the GOP wants to take longer to implement the increases. link

Link to Kerry's issue page