U.S. Sen. Kirsten E. Gillibrand on Tuesday touted legislation she is co-sponsoring to increase the federal minimum wage from $7.25 to $10.10 per hour over the next three years.
Mrs. Gillibrands proposal, called the Fair Minimum Wage Act of 2013, would see the minimum wage rise incrementally over three years in order to keep closer pace with inflation. Future increases would be tied to the rate of inflation.
Rep. William L. Owens said a minimum wage hike makes sense if you look at the situation from a distance.
On the ground for the small businesses its a real problem, Mr. Owens said.
Mr. Owens introduced legislation last month that would enable small businesses to give tax free dividends to their owners up to the amount they increase wages for their workers.
Its a tax credit that encourages owners to increase the wages of their employees, Mr. Owens said, adding that his legislation would only give breaks for raises given to workers making up to $50,000 a year.
Mrs. Gillibrand said during a conference call with reporters Tuesday that in the north country, 22 percent of workers are making minimum wage, bringing home roughly $290 a week. At that level, Mrs. Gillibrand said, the annual salary for a family of three is $3,000 below the federal poverty level.
In total, she estimated the minimum wage increase would result in $3.2 billion in wage increases for New Yorkers, impacting roughly 1.8 million people.
We want to reward work in this country, Mrs. Gillibrand said. Anyone who works 40 hours a week should be able to provide for their kids.
Mrs. Gillibrand acknowledged the work being done in New York state to raise the minimum wage to $9 an hour. The minimum wage increase is expected to come with the passage of state budget.
I think its great for our state to take a leadership role in raising the minimum wage, Mrs. Gillibrand said.
But the senator said even $9 an hour is inadequate.
Its important for the minimum wage to be increased at the national level, Mrs. Gillibrand said.
But Mr. Owens said he doubts Mrs. Gillibrands will have the support it needs to clear the House of Representatives. So far his legislation has also failed to garner significant support.
Even if the senators legislation did make it to the House, Mr. Owens said the lack of tax incentives included concerns him.
I would offer my bill as an amendment to Gillibrands, Mr. Owens said.
Either way Mr. Owens said he believes any substantive discussion about raising the federal minimum wage will have to wait until the government deals with the debt ceiling, on-going sequestration and immigration.