• print
  • decrease text sizeincrease text size
    text

Prepared Remarks: Sanders Speaks on the Urgency of Raising the Minimum Wage and Passing the American Rescue Plan

Share this post

Sen. Bernie Sanders (I-Vt.) today delivered a speech on the floor of the U.S. Senate on the need to pass the American Rescue Plan Act and offered an amendment to raise the minimum wage to $15 an hour. His remarks, as prepared for delivery, are below:

Mr. President, I rise today to offer an amendment to increase the minimum wage to $15 an hour over a 5-year period and I will be speaking on that amendment in a moment.

But before I do that, let me begin my remarks by talking about why this reconciliation bill that we are debating today is so important and why we need to pass it as soon as possible.

Let’s be clear.  Today, in America, we are living through one of the worst economic crises in the modern history of America and the worst public health crisis in more than a hundred years. 

The COVID-19 pandemic is still raging across the country.  Meanwhile, over 90 million Americans today are either uninsured or under-insured and can’t afford to go to a doctor when they get sick.  The isolation and anxiety caused by the pandemic has resulted in a huge increase in mental illness.

During the pandemic, 63% of American workers have been living paycheck to paycheck, including millions of essential workers who put their lives on the line each and every day for totally inadequate wages. 

More than 23 million Americans are unemployed, under employed or have given up looking for work, while hunger in this country continues to soar.

Because of lack of income, millions of Americans owe thousands of dollars in back rent and many of them face the threat of eviction.  This is on top of the 500,000 who are already homeless.

Meanwhile, the wealthiest people in this country are becoming much richer, and income and wealth inequality is skyrocketing.  Incredibly, during the pandemic, over 650 billionaires in America have increased their wealth by more than $1 trillion.

As a result of the pandemic education in this country from childcare to graduate school, is in chaos.  The majority of young people in this country have seen their education disrupted and it is likely that hundreds of colleges will soon cease to exist.

In this moment of unprecedented crises, the Senate must respond through unprecedented action.   

Mr. President, for too long Congress has responded to the needs of the wealthy and the powerful.  Now it is time to respond to the needs of working families – black and white, Latino, Native American and Asian American.

That is what this reconciliation bill is all about.

This Budget Reconciliation bill that we are debating today will enable us to aggressively crush the pandemic which has already taken over 500,000 lives – and enable the American people to return to their jobs and schools.

It will establish a national emergency program to produce the quantity of vaccines that we need and get them into the arms of our people as quickly as possible.

It will allow us to keep the promises we made to the American people and increase the $600 in direct payments for working-class adults and their children to $2,000.

What that means is that a typical family of four would get a direct payment of $5,600.

The Budget Reconciliation bill that we are considering today will provide $400 a week in supplemental unemployment benefits to over 10 million Americans until the end of August.

Further, Mr. President, all of us know that we have a childcare crisis in America.  This Budget Reconciliation bill will provide the resources necessary to provide childcare to 875,000 kids in America.  

It will expand the Child Tax Credit from $2,000 to $3,000 and to $3,600 for kids under the age of 6.

And by taking these steps we will be cutting the child poverty in half.  Let me repeat that.  If we pass this bill, we will cut child poverty in the United States of America by 50 percent.

Further, this bill will provide $350 billion to prevent mass layoffs of public sector workers in state and local governments. 

At a time when over 90 million Americans are uninsured or underinsured, this bill will enable the Senate to substantially increase access to health care for millions of Americans, including a significant expansion of Medicaid.  

It will allow more Americans to receive the primary care that they need through a $7.6 billion increase in funding for community health centers.  It will address the serious shortage of doctors and nurses in rural areas and inner cities by expanding the National Health Service Corps.  And it will make sure our veterans receive the healthcare they have earned and deserve by increasing funding at the VA by $17 billion.

In addition, Mr. President, in the wealthiest country in the history of the world, we can no longer tolerate hunger in America and the long bread lines that have stretched mile after mile during the pandemic.

This bill will provide nutrition assistance to tens of millions of hungry families with children, the disabled and the elderly.

Further, Mr. President, this bill will provide rent relief, utility assistance and mortgage assistance to millions of tenants and homeowners who are in danger of eviction and foreclosure.  

It will begin to address the crisis of homelessness in America.

Further, Mr. President, all of us must acknowledge that there is a pension crisis in America today.  As a result of the greed on Wall Street, workers and retirees in multi-employer pension plans are in danger of seeing their retirement benefits cut by as much as 65 percent.  That is unacceptable. 

When a worker is promised a pension after a lifetime of work that promise must be kept.  This bill will provide the resources necessary to prevent the pensions of millions of Americans from being cut.

Mr. President, not only is this $1.9 trillion emergency COVID-relief package the right thing to do from a moral perspective and a public policy perspective, it is exactly what over 70 percent of the American people want us to do.

But, Mr. President, because of an unfortunate and misguided decision by the parliamentarian, this reconciliation bill does not include an increase in the minimum wage to $15 an hour.

In my view, an unelected staffer in the Senate should not be in charge of determining whether 32 million workers in America receive a raise.

It is hard for me to understand how drilling for oil in the Arctic National Wildlife Refuge was considered to be consistent with the Byrd Rule, while increasing the minimum wage is not.

Therefore, Mr. President, I am offering an amendment today with Majority Leader Schumer, Senator Patty Murray, Senator Ron Wyden and many others in this Chamber to gradually increase the minimum wage to $15 an hour by 2025.

This amendment is similar to legislation which has been co-sponsored by 38 members of the Senate and legislation which has already passed the House. 

This amendment is supported by some 300 national organizations including the AFL-CIO and virtually all of the major unions in our country. 

And because raising the minimum wage to a living wage will significantly benefit women and people of color it is supported by the Leadership Conference on Civil and Human Rights, the National Organization for Women, UNIDOS, the American Association of University Women, Indivisible, Justice for Migrant Women, the National Domestic Workers Alliance, and the National Women’s Law Center.

And while raising the minimum wage to $15 an hour will mean a wage increase for over 30 million Americans, given the fact that nearly 50% of Black and Latino workers earn less than $15 an hour, it will be a huge help to those communities.

Let’s be clear.  This is the richest country in the history of the world.  We can no longer tolerate millions of our workers being unable to feed their families because they are working for starvation wages.  

Mr. President, nobody in America can survive on $7.25 an hour, $9 an hour or $12 an hour.  We need an economy in which all of our workers earn at least a living wage.

It is a national disgrace that Congress has not passed an increase in the minimum wage since 2007 – 14 years ago.

It is totally unacceptable that the minimum wage has lost over 30 percent of its purchasing power since 1968.

Yes. Now is the time to raise the minimum wage to a living wage – at least $15 an hour.  A job in the United States of America should lift you out of poverty, not keep you in it.

And when we increase that minimum wage to $15 an hour we will be giving over 32 million Americans a much needed raise. 

In fact, if this amendment becomes law, the average low-wage worker in America would receive $3,300 in additional income – each and every year.

And let’s be clear.  More than 60 percent of the American people support raising the minimum wage to $15 an hour.  This is not a radical idea.  This is what the American people want.

Since 1998, every time a state has had an initiative on the ballot to raise the minimum wage it has won – no matter if that state was red, blue or purple.

In November 61% of the people in Florida – a state Joe Biden lost by 3 points – voted to raise the minimum wage to $15 an hour.

8 states and over 40 cities have adopted laws to raise the minimum wage to $15 an hour.

Just a few days ago, the House did the right thing and passed legislation to raise the minimum wage to $15 an hour.

Now, this issue rests in the Senate. 

We must understand that the issue of starvation wages is a national emergency.  We must raise the minimum wage to $15 an hour.

In the last few days, I have heard some concerns from my colleagues about one part of our amendment and that is the provision to raise the tipped wage which now stands unbelievably at $2.13 an hour.  Yes, the federal minimum wage for waiters and waitresses, barbers, hair stylists, parking attendants and others is at $2.13 and has not been raised since 1991 – 30 years ago.

The proposal in this legislation would raise that tipped wage from $2.13 an hour to $14.95 over a seven year period – something which is desperately needed.

The National Restaurant Association, a very powerful lobbying organization has suggested to Members of Congress that this legislation is opposed by restaurant workers and would be harmful to their interests.  This is not true.  One Fair Wage, an organization representing service employees has just delivered to the White House a petition with 140,000 signatures from service workers who are demanding that they receive the same minimum wage as every other worker.

Polling among service employees and non-service employees also supports the reality that Americans want our waiters, waitresses and other service employees to get a fair minimum wage.

Now I have heard from some that people who are working in the service industry are doing really well and they don’t need an increase in the minimum wage.  The tips that they are receiving are covering all of their needs.  Really?

Today, 70% of tipped workers are women who suffer from three times the poverty rate of the rest of the US workforce, use food stamps at double the rate, and suffer from the highest rates of sexual harassment of any industry because they must tolerate inappropriate customer behavior to feed their families in tips.

Further, let us be very clear, the idea of moving tipped wages to the same level as the overall minimum wage is not a radical idea.

It already exists in seven states including California, Oregon, Washington, Nevada, Montana, Alaska, and Minnesota.

And I should point out that all of these states experienced a growth in the number of small businesses and restaurants after they abolished the tipped minimum wage.  And guess what?  Waiters and waitresses in these states received more in tips, not less.

Let’s talk about how the pandemic has affected tipped workers. In many states where the tipped minimum wage still exists, tipped workers did not even qualify for unemployment because their wages were too low.

And let’s be clear.  In an industry where more than 6 million people have lost their jobs, over 60% of sub-minimum wage earners could not get unemployment benefits because the state and federal government denied them benefits for not making enough earned income. At the same time, as restaurants re-open the CDC has declared restaurants as the most dangerous place to work, and now servers are responsible for enforcing new rules and protocols around social distancing and wearing masks. 

The restaurant industry has some of the highest rates of sexual harassment. In a workplace where 70% of the workers are women, and where they rely on their customers to determine their wages, women are often expected to withstand sexual harassment in order to get paid. 

In states where the sub minimum wage has been eliminated sexual harassment has been cut in half. And that is exactly what we should be doing on the federal level.

Mr. President, in my view, it all comes down to this. Which side are you on? Are you on the side of the working people in America who desperately need a raise? Or are you on the side of the wealthy and the powerful who want to continue exploiting their workers and paying starvation wages? It ain’t more complicated than that.

I urge my colleagues to stand with the working class of America. I urge my colleagues to support this amendment.

This blog originally appeared at Working Life on March 5, 2021. Reprinted with permission.

About the Author: Jonathan Tasini is a political / organizing / economic strategist. President of the Economic Future Group, a consultancy that has worked in a couple of dozen countries on five continents over the past 20 years.


Share this post

Gig workers could end up losers in Covid relief bill

Share this post

Airbnb, Etsy and other pillars of the gig economy are shaping up to be rare losers in Democrats’ coronavirus relief package.

Buried in the legislation are provisions that will require them to provide a lot more information to the IRS about the money millions of people earn through their platforms, which is likely to bring in billions of dollars more in federal taxes.

That will generate cash Democrats can use to reduce the total cost of their stimulus plan.

But the industry says it’s getting ambushed, complaining it didn’t even know lawmakers were planning the tax crackdown until shortly before it was approved last week by the House. Company officials worry that asking people for their Social Security numbers — which the companies will need to produce the tax documents — and raising the specter of the IRS will scare many away from their platforms.

“We’re concerned that the proposal could unintentionally dissuade many casual and one-time sellers, who could be forced to share their Social Security number with online platforms before listing anything for sale,” said a spokesperson for Etsy. That could “turn away would-be entrepreneurs at a time when many desperately need the extra income.”

It’s not entirely clear who pushed for the provisions, though efforts to require more reporting by the industry aren’t new. A spokesperson for the tax-writing House Ways and Means Committee did not respond to a request for comment.

The wrinkle comes as Senate Democrats debate the stimulus plan, which lawmakers aimed to get to President Joe Biden’s desk by March 14, when expanded jobless benefits expire. Much of the focus on the stimulus has been on its winners, though there would be a few losers as well.

For those in the sharing economy, the issue is provisions that would dramatically reduce the threshold at which companies like eBay, GrubHub, Doordash and others would have to report to the IRS the earnings of people who use their platforms to make money. The users would also have to be given the information.

Currently, that’s only necessary when someone earns more than $20,000 through at least 200 transactions. Democrats would drop that to anyone earning more than $600, regardless of the number of transactions.

That’s projected to generate a lot of money — $8.4 billion over the next decade, according to an official forecast — because people are more likely to pay taxes on their earnings when they know someone else is telling the IRS how much they made.

Unlike more traditional jobs, there is relatively little independent reporting of how much people in the gig economy earn. Many in service-related businesses are treated by their employers as contractors, for example, so they may not be having taxes withheld from their pay. They’re supposed to instead be paying estimated taxes each quarter.

Others, like people selling goods on eBay, Etsy or Facebook, are just average people trying to make some extra cash.

Many may not track how much they’ve earned or realize that it’s subject to tax, in part because they don’t make enough to trigger the current income reporting requirements, the nonpartisan Government Accountability Office said in a report last year.

“Platform workers may not receive information on their earnings, creating compliance challenges for them and enforcement challenges for IRS,” GAO said.

That makes the area ripe for tax cheating.

The issue has been on lawmakers’ radar for several years, though much of the focus had been on a competing proposal by Senate Minority Whip John Thune (R-S.D.). He has a more sweeping plan that would deal with things like worker classification rules while also imposing tougher income-reporting requirements, although not as stringent as Democrats are proposing.

Industry lobbyists say they did not anticipate Democrats swiping Thune’s idea and repurposing it for their coronavirus measure.

Said Thune: “I will continue to support a comprehensive approach to truly help workers in the gig economy.”

Proposals to raise money via so-called third-party reporting have long been popular with lawmakers searching for cash because they generate revenue but are neither tax increases nor spending cuts. And the $8.4 billion the gig worker proposal raises helps keep Democrats within their $1.9 trillion budget for the coronavirus relief.

The industry says it does not condone tax cheating. But it says Democrats’ reporting threshold is too low and would affect too many people who only sometimes use their platforms.

The companies say the tax requirements may come as a surprise to many, who might not understand what is being reported. The IRS form the companies would use — the 1099K — would report the gross amount of money someone has earned.

That isn’t necessarily what they’d have to pay tax on, though. The tax would only apply to their profits, after their own costs or expenses are deducted.

So if someone sold a bike on eBay for $800, for example, they’d get a form showing that. But if they had originally paid $1,000 for the bike, they likely wouldn’t owe the IRS.

“This is not about skirting tax obligations,” said Katie Vlietstra, vice president for government relations and public affairs at the National Association for the Self-Employed.

“A lot of people are cobbling together different ways to make it to the next paycheck,” she said.

“And this is going to be whiplash for a whole community of people.”

This blog originally appeared at Politico on March 5, 2021. Reprinted with permission.

About the Author: Brian Faler is senior tax reporter at Politico. Before coming to Politico in 2013, he was a congressional reporter at Bloomberg News. Before that, he was an assistant to the late, great David Broder at the Washington Post.


Share this post

Mark Meadows predicts no Covid-19 relief bill until after September

Share this post

Matthew Choi, Digital Producer, POLITICO, photographed Sept. 3, 2019 in Arlington, VA. (M. Scott Mahaskey/Politico)

White House Chief of Staff Mark Meadows said Wednesday he is not optimistic about reaching a new coronavirus relief deal before the end of September, predicting House Speaker Nancy Pelosi will use the government funding cliff at the end of next month as leverage to strike a deal on pandemic aid.

Speaking with POLITICO’s Jake Sherman and Anna Palmer, Meadows said his staff had reached out to Pelosi’s office Tuesday but added that he does not anticipate a response. The White House chief of staff said lawmakers from both parties have privately expressed to him a desire to make progress on coronavirus relief. The hold up, Meadows said he suspects, is that Pelosi is holding back her party’s rank and file in order to secure more Democratic priorities in any legislation.

“It’s really been Speaker Pelosi really driving this train as a conductor more so than really anybody,” Meadows said. “And I think privately she says she wants a deal and publicly she says she wants a deal, but when it comes to dealing with Republicans and the administration, we haven’t seen a lot of action.”https://4fee4843261b3bebc0da3603fc4c1230.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.html

Pelosi spokesman Drew Hammill told POLITICO that a member of Meadows’ staff texted the speaker’s staff to confirm they had the correct number for the chief of staff, but did not mention resuming talks. Meadows also said he would call Pelosi during an interview on ABC News on Sunday, but Hammill said he never did.

“Democrats have compromised in these negotiations,” Hammill said in a statement to POLITICO. “We offered to come down $1 trillion if the White House would come up $1 trillion. We welcome the White House back to the negotiating table but they must meet us halfway.”

Senate Republicans floated a “skinny” coronavirus relief bill earlier this month that could be tacked onto a continuing resolution to keep the government funded beyond the end of next month. That proposal also included $10 billion for the U.S. Postal Service, which has faced economic precarity during the pandemic even as millions of Americans are expected to cast ballots in November’s presidential election by mail. But Democrats rejected that measure as a piecemeal solution

Senate Democrats, for their part, have placed blame on Republicans for being unwilling to negotiate a comprehensive coronavirus relief package. Sen. Tim Kaine (D-Va.) predicted Republicans would turn a more amenable leaf after the Republican National Convention ends this week.

“It was clear the White House, for some reason, they wanted to go into their convention blaming Democrats,” Kaine said last week.

This article originally appeared at Politico on August 26, 2020. Reprinted with permission.

About the Author: Matthew Choi is a breaking news reporter. Matthew started at POLITICO as an editorial intern on the breaking news team. He later joined staff full-time as a digital producer. Previously, he was a reporting fellow with the Texas Tribune and managing editor at The Daily Northwestern. Matthew studied journalism and political science at Northwestern University, and enjoys listening to Simon and Garfunkel while cooking French country food.


Share this post

Subscribe For Updates

Sign Up:

* indicates required

Recent Posts

Forbes Best of the Web, Summer 2004
A Forbes "Best of the Web" Blog

Archives

  • Tracking image for JustAnswer widget
  • Find an Employment Lawyer

  • Support Workplace Fairness

 
 

Find an Employment Attorney

The Workplace Fairness Attorney Directory features lawyers from across the United States who primarily represent workers in employment cases. Please note that Workplace Fairness does not operate a lawyer referral service and does not provide legal advice, and that Workplace Fairness is not responsible for any advice that you receive from anyone, attorney or non-attorney, you may contact from this site.