Washington, DC (July 29, 2006) – Early this morning, the U.S. House of Representatives passed H.R. 5970 by a vote of 230-180; Congressman Rubén Hinojosa (TX-15) voted against the bill.  While the legislation does raise the minimum wage from $5.15 to $7.25 an hour, it contains unrelated provisions that virtually ensure it won’t pass the U.S. Senate. 

“Last night, the U.S. House of Representatives had an opportunity to stand up for working families and pass an increase to the minimum wage,” said Hinojosa.  “Instead the House passed a bill containing poison pills that virtually guarantees it won’t see the light of day and become law.  Rather than having a fair up and down vote on increasing the minimum wage, we voted on more tax breaks that will add too much to our deficit, further burden our children, and not help millions of working poor in Texas and the U.S.”

The minimum wage has not been increased since 1997, and is at its lowest level in 50 years, when adjusted for inflation. 

“Quite simply, increasing the minimum wage is not just the right thing to do; it’s good economic policy,” Hinojosa continued.  “A full-time minimum wage earner will make about $10,000 a year – this is below the poverty line.  As gas prices continue to rise, health care continues to be unattainable for millions of Americans, and students are burdened with more debt, it doesn’t make sense to me that we wouldn’t do what’s fair and morally right to help working families.”

Democrats offered an alternative measure to get a straight up or down vote on the minimum wage and to extend important tax provisions that can pass the Senate. Specifically, it would have increased the minimum wage by $2.10 – from $5.15 to $7.25 an hour over two years and extend tax provisions, including the R&D tax credit, the education tax deduction to help students go to college, tax deductions for teacher’s classroom expenses, and the deduction of state and local sales taxes.  This bill failed by a vote of 190-220.