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Tribune News Service
Tribune News Service
National
Steven T. Dennis

Democrats shelve plan to raise minimum wage through tax penalty

Senate Democrats are shelving an effort to raise minimum wages for workers as part of their $1.9 trillion virus relief package, according to two people familiar with the matter.

The plan included tax penalties on big companies that pay low wages along with incentives for smaller companies. It had been floated by Senate Finance Committee Chairman Ron Wyden and Budget Comittee Chairman Bernie Sanders after the Senate parliamentarian ruled Thursday that raising the federal minimum wage to $15 an hour failed to qualify under fast-track budget rules that Democrats are using to pass the stimulus bill without Republican support.

The Democrats’ shift was reported earlier Sunday by the Washington Post.

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