White House Is Hesitant on Proposed Tax Penalty: Stimulus Update

Source: Bloomberg

(Bloomberg) -- The White House has declined to take a position on new proposals to impose a penalty on big U.S. companies as a way to push through a minimum-wage increase. The initiative put forward by two Senate committee chairs threatens to complicate passage of President Joe Biden’s $1.9 trillion pandemic-relief bill.

Senate Majority Leader Chuck Schumer is weighing adding a provision to the relief bill that would put a penalty tax on big companies that don’t pay workers at least $15 an hour, a Democratic aide said on condition of anonymity.

Proposals emerged after a ruling by the Senate parliamentarian that Democrats’ minimum-wage proposal, as previously drafted, fell afoul of rules for the legislative process congressional leaders are using for the bill. Requirements dictate measures be primarily fiscal in nature.

The House is scheduled to take up the stimulus bill on the floor of the chamber Friday -- including a phased-in minimum wage increase to $15 an hour -- with passage expected late in the evening or potentially Saturday.



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