Minimum Wage Workers Will Have More Financial Freedom Starting Friday
July 22, 2009
After 10 years without an increase in the federal minimum wage, in 2007 Congress voted to raise it $2.10 an hour over a two year period. Congressman Cohen, a longtime advocate of raising the minimum wage, was proud to make this one of his first votes in the House of Representatives.
“Seventy cents may not seem like a lot, but over the course of a year, it’s more than $1,100 that hard-working Tennesseans can put in their wallets to help cope with rising gas and food prices and increasing utility bills. Even more families may use the extra money to save for a home, pay down their debts or plan for the future. The bottom line is that every little bit helps,” Congressman Cohen said. “Our job is not finished, I will continue to fight for more jobs, better benefits and higher wages for our district.”
Prior to the change in law, the federal minimum wage was $5.15 an hour. In 2007, Congressman Cohen voted to increase the wage in three equal installments of 70 cents over a two year period. The staggered increases were designed to help small businesses afford the increase in pay for their hourly workers.
Tennessee is one of only five states that does not have a state minimum wage and relies on the federal wage for hourly employees. The increase will help an estimated 40,000 low-income workers in greater Memphis area.
Additionally, the American Recovery and Reinvestment Act (ARRA), which Congressman Cohen voted for and was signed into law earlier this year by President Obama, included a “Making Work Pay” tax credit that lowered payroll taxes. It saved individuals up to $400 a year and working families up to $800 a year. In Tennessee, it is estimated that 2.3 million families have benefitted from the provision.
As part of the law that increased minimum wage, Congressman Cohen also supported an incentives package for small businesses that includes tax credits and tax breaks on business capital investments, many of which will offset the additional expenses paid to higher waged Tennessee workers.
"It was absolutely the right thing to do to make sure that our small businesses, which are the economic engines that drive our communities, are supported by our tax policies,” Congressman Cohen said. “By taking a comprehensive approach, we’ve been able to strengthen both the job security of minimum wage workers and the economic viability of our small businesses."
“Seventy cents may not seem like a lot, but over the course of a year, it’s more than $1,100 that hard-working Tennesseans can put in their wallets to help cope with rising gas and food prices and increasing utility bills. Even more families may use the extra money to save for a home, pay down their debts or plan for the future. The bottom line is that every little bit helps,” Congressman Cohen said. “Our job is not finished, I will continue to fight for more jobs, better benefits and higher wages for our district.”
Prior to the change in law, the federal minimum wage was $5.15 an hour. In 2007, Congressman Cohen voted to increase the wage in three equal installments of 70 cents over a two year period. The staggered increases were designed to help small businesses afford the increase in pay for their hourly workers.
Tennessee is one of only five states that does not have a state minimum wage and relies on the federal wage for hourly employees. The increase will help an estimated 40,000 low-income workers in greater Memphis area.
Additionally, the American Recovery and Reinvestment Act (ARRA), which Congressman Cohen voted for and was signed into law earlier this year by President Obama, included a “Making Work Pay” tax credit that lowered payroll taxes. It saved individuals up to $400 a year and working families up to $800 a year. In Tennessee, it is estimated that 2.3 million families have benefitted from the provision.
As part of the law that increased minimum wage, Congressman Cohen also supported an incentives package for small businesses that includes tax credits and tax breaks on business capital investments, many of which will offset the additional expenses paid to higher waged Tennessee workers.
"It was absolutely the right thing to do to make sure that our small businesses, which are the economic engines that drive our communities, are supported by our tax policies,” Congressman Cohen said. “By taking a comprehensive approach, we’ve been able to strengthen both the job security of minimum wage workers and the economic viability of our small businesses."
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________________________
Steven Broderick
Communications Director
Congressman Steve Cohen (TN-9)
1005 Longworth House Office Building
Washington, DC 20515
Direct: 202-226-7916
Main: 202-225-3265
steven.broderick@mail.house.gov