PORTER BACKS MINIMUM WAGE LEGISLATION - Includes permanent estate tax relief, extends state and local sales tax deduction

WASHINGTON, D.C. – Early this morning, Third District Congressman Jon Porter joined hundreds of his colleagues in supporting H.R. 5970, the Estate Tax and Extension of Tax Relief Act of 2006, which raises the minimum wage and provides much-needed tax relief for millions of hard-working Americans.  The bill, which passed the House by a 230 – 180 vote, now awaits action in the Senate.

“The minimum wage has not been raised since 1997, which is far too long given how dramatically our economy has changed in the past decade,” said Porter.  “An increase will go a long way toward helping minimum wage earners support themselves and their families.”

H.R. 5970 increases the current federal minimum wage rate of $5.15 per hour by $2.10.  The increase would be phased in over three years, in the following increments: $5.85 per hour effective January 1, 2007, $6.55 per hour effective June 1, 2008, and $7.25 per hour effective June 1, 2009.

The bill also provides permanent estate or “death” tax relief.  The estate tax relief provided in the Economic Growth and Tax Relief Reconciliation Act of 2001 will end in 2010.  Unless Congress acts, in 2011 the estate tax exemption will drop to $1 million per person and the maximum estate tax rate will increase to 55 percent.

“This marks the seventh time the House has passed death tax relief since 2001, and there’s a good reason behind that,” Porter stated.  “When someone passes away, family members should not have to lose a family farm or business due to burdensome government taxes.”

In addition, H.R. 5970 extends the state and local sales tax deduction.  Some states, including Nevada, do not levy income taxes on their residents; instead, they finance their operations primarily through the collection of sales taxes.  H.R. 5970 creates parity among states by allowing all taxpayers the option to deduct their state and local sales taxes in lieu of their state and local income taxes.  The provision is extended for two years through 2007.

“Simply put, this legislation is a win for the American worker, small businesses, and taxpayers across the country,” Porter concluded.

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