Hawaii House Of Representatives Passes $10.10 Minimum Wage Bill

As expected, the political theater that is the annual battle of the budgets, yielded two defeats for progressives Wednesday. First the Congressional Black Caucus Budget was defeated 116-300 and then the more rigorously shaped Progressive Caucus budget, the Better Off Budget, went down by an even greater margin, losing 89-327. At least a majority of Democrats-- 116-76-- backed the CBC budget, which was pretty standard Democratic fare for all but the worst anti-working family Blue Dogs and New Dems. The Better Off Budget, which is truly innovative and powerful and would move America off the dime and back towards genuine middle class-fueled prosperity, didn't even get a majority of Democrats, most of the corporate shills following the lead of Steny Hoyer, Joe Crowley, Ron Kind and other dreadful Big Business suck-ups to vote with the GOP-- which, needless to say voted unanimously against it. Only 89 Democrats voted for it; 103 voted against it.

A minority of Democrats voted against both, the hard-corp, untrustworthy lot from the Republican wing of the Democratic Party. Last week, we pointed out how Hawaii New Dem, Colleen Hanabusa was working against the Hawaiian Democratic Party in trying to broker a compromise against President Obama's and the Senate Democrats' plan to raise the minimum wage to $10.10. She sent an e-mail claiming she would be happy with the $9.25 her restaurant association campaign donors told her they would rather have. It was probably the straw that broke the camel's back and caused President Obama to step in and endorse Brian Schatz for the Senate seat Hanabusa (and her money-grubbing husband) are lusting for.

Distinguished economist Jared Bernstein, writing on his own blog, called the progressive budget Hanabusa opposes A Vison for Our Time. None of the priorities Bernstein is concerned with are on the top of Hanabusa's list: "Accelerating and sustaining economic growth, promoting economic opportunity, and pushing back against the sharp rise in income inequality remain the most pressing economic challenges confronting policymakers. To directly address these issues, the Better Off Budget invests heavily in front-loaded job creation measures aimed not only at putting people back to work, but also at addressing the deficit in physical infrastructure and human capital investments. In stark contrast to the current austerity trajectory for fiscal policy-- notably the expiration of emergency unemployment insurance, cuts to the Supplemental Nutrition Assistance Program (food stamps), and the continuation of discretionary spending caps and sequestration spending cuts-- the Better Off Budget substantially increases near-term budget deficits to finance targeted stimulus, including infrastructure investment, aid to state and local governments, targeted tax credits, and public works programs. These types of investments would yield enormous returns-- particularly by reducing long-run economic scarring that is resulting from underutilization of productive resources-- and, as the name 'Better Off Budget' implies, raise national income and living standards." These are some of what the progressive budget does that Hanabusa either opposes or just doesn't care about"

• Returns to Clinton tax rates for households making over $250,000 and implements new brackets for those making over $1 million.
• Equalizes tax rates for investment income and income from a hard day’s work.
• Eliminates the ability of U.S. corporations to defer taxes on offshore profits.
• Enacts a Financial Transaction tax on various financial market transactions.
• Implements Chairman Dave Camp’s financial institution excise tax.

This week, while Hanabusa was joining the Republicans in voting first against the Congressional Black Caucus budget and then against the Better Off Budget-- the name along must send shudders of horror down her spine-- the Hawaiian legislature slapped down her GOP-backed proposal to water down the minimum wage legislation and passed a model $10.10 bill. Derrick DePledge and Sarah Zoellick, writing for the Star Advertiser, reported that "the state House on Tuesday approved a minimum wage increase, and there were new signs that the state Senate might accept the House draft rather than force conference committee negotiations that could endanger a pay raise for low-income workers." Hanabusa, in short, was foiled again.

The minimum wage would increase to $10 an hour by January 2018 and the tip credit would expand to 75 cents an hour under the House bill. Businesses would not be able to deduct the tip credit from workers who earn tips unless workers earn at least $7 an hour more than the minimum wage, up from 50 cents.

House lawmakers rejected Republican amendments for higher tip credits that would have helped restaurant owners and other businesses absorb a higher minimum wage.

"Raising the minimum wage is good for Hawaii's families and good for Hawaii's economy," said Rep. Mark Naka­shima (D, Kukui­ha­ele-Lau­pa­hoe­hoe-North Hilo), chairman of the House Labor and Public EmploymentCommittee. "Money in the pocket of working people will be spent to make ends meet, boost our economy and create jobs in our community."

The state's $7.25-an-hour minimum wage has not been raised since 2007. The tip credit is 25 cents. House and Senate leaders have said they want to avoid conference committee if possible because a minimum wage increase died last year in conference over disagreements on the size of a tip credit.

Senate leaders who met privately Tuesday said they would recommend that senators accept the House version and send the bill to Gov. Neil Abercrombie.

"We'd like to deal with the minimum wage sooner than later. So that seems to be the consensus," said Senate President Donna Mercado Kim (D, Kalihi Valley-Moana­lua-Halawa). "We don't know if that's what the caucus is going to agree with."

Sen. Clayton Hee (D, Heeia-Laie-Waia­lua), chairman of the Senate Judiciary and Labor Committee, might hold out for a Senate draft that would increase the minimum wage to $10.10 an hour by January 2017. He said an increase to $10.10 an hour is in line with President Barack Obama's goal nationally and would be more meaningful to the working poor.

"If the Legislature is truly concerned about helping the working poor, $10.10 over three years is, in my opinion, a better way of achieving it as opposed to the House version," Hee said.

The $10.10 victory was seen as a big win for Senator Brian Schatz, who has been one of the most persistent advocates of that proposal in Washington. But it was also a big win for Honolulu City Councilman Stanley Chang, the progressive candidate for the congressional seat Hanabusa is abandoning. This week, Chang is in Washington meeting with Members of Congress and national progressive leaders. Yesterday, he came out strongly in favor of the Progressive Budget and, of course, he has been a proponent of the $10.10 minimum wage as well. In fact, this morning he told us the legislature has a little more work to do on the issue. "While I am encouraged the Hawaii state legislature is taking up the important issue of raising the minimum wage," he told us, "my hope is that they will find a way to meet President Obama's goal of $10.10 per hour in three years. The current version passed by the House only increases the minimum wage to $10.00 and does it in four years. Hard-working Hawaii families have earned this raise and it's long overdue that they are paid what they deserve. If we truly want to help the working poor make ends meet we must stand with President Obama and raise the minimum wage to $10.10 by 2017."

You can help keep Hawaii bright blue by contributing to Stanley Chang here and Brian Schatz here. Both candidates have been endorsed by Blue America.