Ways and Means Member Proposes Minimum Wage Increase
Sep 20, 2004

U.S. Rep. Philip S. English (R-Pa.) introduced legislation on Sept. 15 that contains a minimum wage increase coupled with small business tax revisions. The legislation (H.R. 5093) would increase the federal minimum wage to $6.50 (it is currently set at $5.15) over three years. The increase would only apply to companies with 10 or more employees.

To ease the increase for small business owners, English’s bill includes four business-friendly provisions. The first one permanently enacts the ability to expense (under section 179) up to $100,000 in capital expenditures while increasing the phase-out for section 179 participation to $500,000. The bill also offers a $2,000 home office standard deduction and allows small business owners to offset Alternative Minimum Tax liability with research and development and Welfare-to-Work tax credits. Finally, the legislation would increase small business exemption from the Fair Labor Standards Act by raising the exemption from $500,000 to $1 million.