Lauren O’Neill

Senate Parliamentarian Elizabeth MacDonough declared that the Democrat proposed $1.9 trillion COVID-19 relief package would not include the raising of the minimum wage to $15. MacDonough noted that she supported the minimum wage increase because it would stimulate economic recovery, but that a $15 minimum wage is not allowed under Senate budgetary rules. The federal minimum wage was proposed to be increased to $15 per hour by 2025. The vice president has the power to overrule the parliamentarians decision, however it is not anticipated that Kamala Harris will do so.

Republicans unanimously opposed the bill, while every Democrat, with the exception of Jared Golden of Maine and Kurt Schrader of Oregon, was in favor. Democrats hope that this legislation will be in effect by March 14, because the enhanced unemployment benefits end on this day.

Some Democrats were outraged at the rejection of the minimum wage increase, and even suggested the parliamentarian should be fired. House of Representative Leaders signified they wanted to move beyond the minimum wage debate, and save the fight for another time. The minimum wage increase was the most hotly debated issue on the bill and the Congressional Budget Office estimated 900,000 people would be brought out of poverty, while also leading to 1.4 million job losses.

Minimum wage is not the only agenda on the bill that Democrats are looking to get passed. It also includes $1,400 stimulus to Americans earning up to $75,000 a year and couples earning up to $150,000 and an improvement in unemployment benefits through August. The unemployment benefit was an increase in payments to $400 a week, instead of $300. The bill also included a $350 billion aid to U.S. states, cities, and territories and an increase in funding for the distribution of the COVID vaccine. The bill planned to provide over $50 billion for vaccine distribution and $200 billion to primary and secondary schools to reopen in-person classroom instruction. The child tax credit was planned to be expanded to $3,000 per child and $3,600 for children under the age of 6. John Yarmuth, democrat of Kentucky and Chairman of the Budget Committee, praised the bill saying, “it is an incredible piece of work that deals with the pandemic in all of its manifestations and in a way that will be truly effective.”

On the other hand, republicans are staunchly opposed to this bill claiming it is too expensive and has too wide of an objective. Republican leader, Kevin McCarthy of California, declared, “This isn’t a relief bill. It takes care of the democrats’ political allies, while it fails to deliver for American families.”

There have been new suggestions to counter the rejection of the minimum wage increase. The democratic senators of West Virginia and Arizona opposed the $15 minimum wage, but Joe Manchin of West Virginia suggested an increase to $11 an hour arguing “it’s a more reasonable level for a sate such as West Virginia.” Other criticisms of the bill stated that minimum wage should not be a topic of discussion on legislation targeted toward coronavirus relief.

Due to the fact that the minimum wage increase was rejected, Senate Democrats suggested an increase in taxes on large companies that do not have their minimum wage at $15 an hour. As far as small businesses, the plan states that they would receive an income tax credit covering 25% of their employee’s wages to encourage employer’s to pay their workers more.

Currently the economy is showing signs of improvement since the December stimulus package is showing its results. The Commerce Department reported that personal income increased 10% last month and cases for the virus are decreasing along with claims for unemployment insurance. Republicans in Congress attacked the December stimulus and did not believe that $900 billion in relief should have been authorized since the economy was on an upward trend.

Federal Reserve Chair Jerome H. Powell suggested that it will be a long time before the economy will return to its pre-pandemic state. The debate over the increase in minimum wage is one that will be standing long after this bill.