Democrats Want Wage Hike, but Not This One

ByABC News
August 2, 2006, 2:10 PM

August 2, 2006 — -- Today marks the 10-year anniversary since the last time Congress voted to raise the minimum wage -- the longest stretch between wage hikes since the first federal minimum wage law was put into effect in 1938. Senate Democrats marked the anniversary with a delicate political balancing act, announcing they would block a bill that raises the minimum wage because it also cuts the estate tax.

There have been a lot of changes for consumers in the past 10 years. Gas cost less than $2 a gallon back in '96. Today it's edged above $3 -- not to mention how much more a Big Mac or soda in a vending machine costs. Inflation has run wild. Just ask the economists and look at the home prices.

Majorities in both houses of Congress, including many moderate Republicans, say they support a wage hike. But still the country's poorest workers make just $5.15 an hour.

Earlier this year, Democratic leaders pledged to block a congressional pay raise (members have received more than $30,000 in cost of living raises since 1996) until their minimum wage requirements were met. But today Democrats in the Senate, long champions of a wage hike, held a press conference to clarify for the American public why they're planning to block the so-called trifecta bill that raises the minimum wage $2.10 to $7.25 for which they've worked so long and hard.

Here was their best effort: "Republicans are holding minimum wage workers hostage," said Sen. Edward Kennedy, D-Mass., at a press conference on Capitol Hill. "Holding them hostage to the most excessive tax breaks for the wealthiest individuals in America."

Though they support the wage hike, Democrats oppose a provision that adds a substantial tax cut for wealthy estate owners that the House attached to the most recent minimum wage bill.

Kennedy saved his best zinger for a written statement later in the day, saying, "Under this bill, Paris Hilton and her family will get $250 million, while the tipped workers in Hilton hotels will lose up to $5.60 an hour. That's un-American. Members of Congress raised their own pay -- no strings attached. Surely, common decency suggests that minimum wage workers deserve the same respect."

Following Kennedy to the podium today was Jeanelle Williams, a 28-year-old single mother from Baltimore, who said she used to work at Burger King but now works at a hotel. Williams still makes minimum wage and said Congress should be raising that and not cutting the estate tax .