ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, April 25, 1996 TAG: 9604250066
SECTION: NATL/INTL PAGE: A-1 EDITION: METRO
SOURCE: Associated Press WASHINGTON
NOTE: Below
Defying the Democrats and some of their own rank and file, House Republican leaders on Wednesday virtually ruled out scheduling a vote on a minimum wage increase.
Speaker Newt Gingrich and Majority Leader Dick Armey issued a written statement as the White House and congressional Democrats, pressing an election-year cause, escalated their attacks. Rep. John Lewis, D-Ga., called raising the minimum wage, now $4.25 an hour, ``a moral issue.''
The statement by Gingrich, R-Ga., and Armey, R-Texas, outlined several alternatives to increase take-home pay.
They said the House would vote later this year on a package that might include several provisions, possibly including:
* A tax cut, including the $500-per-child tax credit the party has long advocated;
* Tax incentives for businesses to create more jobs;
* A government subsidy for some workers currently at the minimum wage.
It wasn't clear what, if any, effect the decision would have in the Senate, where Bob Dole, the majority leader as well as presumptive GOP presidential nominee, is also under pressure to schedule a minimum wage vote.
``Republicans know that low-wage workers and their families suffer most from the destructive policies of big government,'' Gingrich and Armey said. ``That is why we will bring to the floor legislation that will enable all Americans to earn more and keep more of what they earn, so they can do more for their families and communities.''
The list made no mention of the minimum wage measure.
Asked whether he would bring the minimum wage hike to the floor, Armey said, ``It's not my intention.''
Armey has long been an unflinching foe of increasing the minimum wage. But the statement appeared to represent a change for Gingrich, who said several days ago that Congress would consider a minimum wage increase on terms dictated by the GOP, and left open the possibility he might support it.
Several GOP lawmakers and aides in the House, speaking on condition of anonymity, said Gingrich and Armey also were hoping to ease nervousness among GOP lawmakers while they develop a strategy to blunt the Democrats' politically appealing demand for an increase in the minimum wage.
The issue has emerged unexpectedly this spring, backed by an energetic effort by organized labor, and its force has taken many Republicans by surprise.
President Clinton and congressional Democrats favor a 90-cent hike in the minimum wage over two years. A group of about 20 moderate House Republicans last week called for a slightly higher increase of $1 over 15 months, and said at the time they were confident the leadership would at least grant them a vote.
Supporters of an increase say that when inflation is taken into account, the minimum wage is approaching a 40-year low in purchasing power. Opponents say an increase would cost jobs because the additional cost would discourage businesses from creating positions.
House rules make it difficult but not impossible to force a vote against the leaders' wishes.
There was maneuvering on both sides of the issue during the day.
In the Senate, Democrats led by Sen. Edward Kennedy of Massachusetts sought to attach a minimum wage hike to a pending immigration bill. Republicans used their parliamentary prerogatives to block a vote.
``This is theater. This is Shakespeare,'' said Sen. Alan Simpson, R-Wyo. ``The minimum wage, when the Democrats had control of this body and the House of Representatives and the presidency, never appeared in this chamber under any scenario.''
Kennedy replied, ``Sen. Simpson may say that this is theater, but it has dramatic results by our action or inaction for the 13 million families that are going to be affected by whether we are going to address the minimum wage.''
Vice President Al Gore also attacked the Republicans on the issue. "The elections of 1996 will be hard fought,'' he said. ``The differences between the two sides are glaring.''
Armey appeared at a news conference with Rep. Tim Hutchison, R-Ark., to tout a proposal that would eliminate the earned income tax credit for childless families and use the money to provide a monthly subsidy to minimum wage workers with children. The effect would be to raise their pay without having businesses directly bear the cost.
Armey called it an ``outstanding idea,'' and said it would be closely studied in committee.
Moments later, though, Democrats called a news conference to denounce the proposal as a subsidy to corporations.
LENGTH: Medium: 87 linesby CNB