Cushioning the Wage Hike for Small Biz

An increase in the federal minimum wage will likely come with tax incentives to give some help to small business. But experts disagree on the best course

On a 54-43 vote in the Senate on Jan. 24, Democrats lost an effort to advance a House-passed bill that would lift the minimum wage from $5.15 to $7.25 an hour without any accompanying tax cut (see, 1/10/07, "More Than the Minimum Wage"). The federal minimum wage has stood at $5.15 since 1997.

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