Senate Finance Committee Chairman Ron Wyden (D-Ore.) on Friday announced Democrats’ “Plan B” to raise the minimum wage after the Senate parliamentarian ruled that an earlier proposal from House Democrats to raise the federal minimum wage $15 an hour did not meet special budgetary rules.
Wyden is proposing a workaround solution that would impose a 5 percent tax penalty on large corporations if any of their workers earn less than a certain amount, with the penalty increasing over time.
The language would ensure that large companies would have a significant financial incentive to raise wages, even if they are not mandated by law to pay employees more than the current federal minimum wage of $7.25 an hour.
Read more at The Hill.
{Matzav.com}
