MINIMUM WAGE HELD HOSTAGE BY ESTATE TAX GIVEAWAY         

The House of Representatives adjourned for their August recess in the wee hours last Friday night, but not before passing troubling legislation that ties an increase in the minimum wage to a bill that makes drastic and permanent cuts to the estate tax. Instead of allowing a clean vote to increase the minimum wage, House Republican leaders added the minimum wage increase to another costly estate tax "reform" bill--allowing House members to claim credit for voting to increase the minimum wage, but at the cost of hundreds of billions in lost revenues--given away to millionaire heirs. This bill, H.R. 5970, will come before the Senate sometime THIS week (as early as WEDNESDAY) and we need your help to stop this cynical ploy!

          ACTION NEEDED         

1) Call your Senators Toll-Free--1-800-459-1887*--and tell them:

"Vote NO on H.R. 5970. This bill outrageously ties a long-overdue increase in the minimum wage to a huge tax giveaway for millionaire heirs. I urge you to reject the cynical move and simply raise the minimum wage to $7.25 by passing the Fair Minimum Wage Act, S. 1062."

BACKGROUND

Despite the fact that there hasn't been an increase in the minimum wage since 1997, House Republican leaders have repeatedly block efforts to bring the minimum wage up for a vote. However, feeling the pressure from moderates in their own party and from numerous state campaigns to increase the minimum wage, House leaders cynically attached the minimum wage increase to another effort to gut the estate tax. Here are some facts about the bill:

1) H.R. 5970, the "Estate Tax and Extension of Tax Relief Act of 2006," will deepen the deficit by at least $750 BILLION dollars the first decade it is fully in effect. These lost revenues will likely mean further cuts to programs that benefit the most vulnerable of our population, such as Head Start, Medicaid, or the Food Stamp Program. Congressional leaders say there is no money to avoid cuts in these services, but will borrow money for more tax breaks.

2) The increase in the minimum wage in H.R. 5970 will benefit 6.6 million hard-working Americans and the average benefit will be $1,200 per worker. In contrast, the House estate tax proposal will benefit only 8,200 wealthy heirs with an average benefit of $1.4 million.

3) H.R. 5970 makes workers wait longer for a raise. The House bill increases the minimum wage to $7.25 over a THREE year period, while the Fair Minimum Wage Act, S. 1062, would raise the minimum wage to $7.25 in TWO years.

*The toll-free number is provided courtesy of the American Friends Service Committee, a Quaker organization whose work for social justice, peace, and humanitarian service includes campaigns for a moral budget and a fair minimum wage (www.afsc.org/economic-justice/).  AFSC welcomes groups to circulate and use the toll-free number in support of non-partisan budget goals and without linking the alert to a website soliciting donations or actions which may be used to support partisan lobbying or work.

          GOOD NEWS ON SUNSET COMMISSIONS         

Against great odds, calls and letters from advocates across the country forced the House Republican leadership to cancel scheduled votes on two sunset commission bills because they didn’t have the votes to pass either measure. Many thanks to all Good Shepherd Advocates who wrote and called to educate House members about the dangers of these proposals. The National Advocacy Center will continue to monitor this and there is a chance that bad budget process bills could be back on the legislative agenda when Congress returns from recess--but your work is clearly having an impact!

          IMMIGRATION FIELD HEARINGS CONTINUE THROUGH AUGUST         

Several House committees will continue to hold immigration "hearings" throughout August in an attempt to bolster support for the House's enforcement-only immigration bill. While it is unlikely that advocates of comprehensive immigration reform will be allowed to participate in these hearings, immigrant advocacy groups around the country are organizing "shadow hearings" and rallies in support of comprehensive immigration reform. Click here current schedule of House hearings and more details about the shadow hearings and rallies will be available soon. Check the schedule to see if a hearing is going to be held near you and stay tuned for activities to support of comprehensive immigration reform.

NOTE: Since Congress will be in recess until after Labor Day, this will be the last "regular" action alert until Congress returns. We will, however, keep you posted on important immigration-related events and other important activities that will be taking place during the recess.