Raise the Wage Act
Floor Speech
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Mr. CUELLAR. Mr. Speaker, I rise today to recognize the importance of raising the minimum wage for millions in our country. This important legislation raises the wage for 45 percent of workers in my district, and provides a wage increase of nearly $640,000.
The Raise the Wage Act will indeed lift thousands of my constituents out of poverty and provide opportunity for economic mobility. However, I would like to highlight the work I have done on this legislation to make it more amenable to small, family owned businesses.
While I certainly acknowledge that every day Americans deserve a raise, we in Congress must be above rhetoric and talking points. With such a significant change proposed to the minimum wage, this must be carried out in a precise, tactful manner. As of June of this year, the unemployment rate in the United States is a mere 3.7 percent. It is critical that policies we pass through this House do not interrupt or deter this economic prosperity.
Furthermore, while I support this important legislation, we must consider how it will affect small businesses and their economic futures. Therefore, I have negotiated with the Committee a provision to lengthen the phase in period to $15 minimum wage until the year 2026.
Additionally, I am a co-sponsor of the O'Halleran Amendment. This amendment will require a comprehensive GAO report on national and regional economic impacts of the minimum wage increases in this bill. The report will have a special focus on small business and agricultural sectors. It will facilitate Congress' ability to make policy changes based on the actual economic effects of this legislation.
Lastly, I submitted two amendments that exempt local and small farms, as well as small businesses from the $15 minimum wage. These amendments delayed the minimum wage from reaching $15 until the year 2029, as well as kept the current ``tipped-wage'' provision for restaurant workers. I also sought to create a small business tax credit, along with providing two additional years to comply with a doubling of the federal minimum wage.
By providing tax credits, compliance exemptions, and a longer runway to $15, my amendments intended to give small businesses the tools they need to thrive in the economy this bill will create.
I was disappointed that my amendments were not included in this measure, but will work for their inclusion elsewhere given the vast economic benefits that small businesses provide in my community, and around the country. There are over 30 million small businesses in the United States today. Additionally, there are 24.3 million individually operated businesses with no employees. Small businesses employ over 60 million Americans--nearly half of the private workforce--and there are now over 287,000 small business exporters.
The United States small business community contributes approximately $8.5 trillion to the economy, roughly half of the United States total $17 trillion GDP.
Small businesses are the back bone of our country, and the engine that drives our economy. While I will vote in favor of this legislation, I hope to have my amendments incorporated as this bill moves through the legislative process. I include them for the Record.
Passage of this act is simply the first step. As this legislation heads over to the Senate, I look forward to working with my friends to improve this bill and ensure further small businesses provisions are included, as well as with my colleagues in the House on future legislation that would help address these concerns.
Mr. Speaker, I thank you for the time to recognize the importance of small businesses to our great nation, and the need to pay Americans a living wage. Amendment to H.R. 582, as reported Offered by Mr. Cuellar of Texas
Strike section 3 and insert the following new section: SEC. 3. MINIMUM WAGE FOR SMALL BUSINESS CONCERNS.
Section 6 of the Fair Labor Standards Act, as amended, is amended by adding at the end the following:
``(i) Small Business Minimum Wage Rate.--With respect to an employer that is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)), except as otherwise provided in this section, the wage in effect under subsection (a)(1) shall be--
``(1) $9.00 an hour during the calendar year 2019;
``(2) $9.50 an hour during the calendar year 2020;
``(3) $10.00 an hour during the calendar year 2021;
``(4) $10.50 an hour during the calendar year 2022;
``(5) $11.00 an hour during the calendar year 2023;
``(6) $11.50 an hour during the calendar year 2024;
``(7) $12.00 an hour during the calendar year 2025;
``(8) $12.50 an hour during the calendar year 2026;
``(9) $13.00 an hour during the calendar year 2027;
``(10) $13.50 an hour during the calendar years 2028, 2029, and 2030; and
``(11) $15.00 an hour during the calendar year 2031 and each year thereafter.''.
Add at the end the following new section: SECTION ___. MINIMUM-WAGE EMPLOYEE CREDIT FOR SMALL EMPLOYERS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following: ``SEC. 45T. MINIMUM-WAGE EMPLOYEE CREDIT FOR SMALL EMPLOYERS.
``(a) In General.--For purposes of section 38, in the case of an eligible small employer, the minimum-wage employee credit for a taxable year determined under this section is an amount equal to $200 for each minimum-wage employee of the employer.
``(b) Limitation.--The amount of the credit determined under subsection (a) for any taxable year shall not exceed $10,000.
``(c) Eligible Small Employer.--For purposes of this section--
``(1) In general.--The term `eligible small employer' means an employer with not more than 50 employees.
``(2) Aggregation and other rules.--For purposes of this section--
``(A) Aggregation rules.--All employers treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer.
``(B) Other rules.--Rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply.''.
(b) Credit to Be Part of General Business Credit.--Section 38(b) of such Code is amended by striking ``plus'' at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting ``, plus'', and by adding at the end the following new paragraph:
``(33) in the case of an eligible small employer (as such term is defined in section 45T, the minimum-wage employee credit determined under section 45T(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following the item: ``Sec 45T. Minimum-wage employee credit for small employers.''.
(d) Effective Date.--The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. ____ Amendment to H.R. 582, as Reported Offered by Mr. Cuellar of Texas
Add at the end the following: SEC. __. AGRICULTURE EXEMPTION.
Nothing in this Act, or the amendments made under this Act, shall be construed to repeal or alter the exemption under section 13(a)(6) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)(6)).
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