BOTH the House of Representatives and the Senate have recently passed bills raising the minimum wage. The Senate bill includes tax breaks for businesses, based on the following logic: While a minimum wage increase is popular, the resulting higher labor costs will translate into fewer jobs, more expensive products or both. The solution, the senators concluded, was to subsidize companies that hire disadvantaged workers, in order to reimburse them for these higher wage costs.
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Op-Eds on Thursday, March 8, 2007.