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U.S. Sen. Kirsten Gillibrand decried the defeat of $10.10 minimum wage boost
(Associated Press)
WASHINGTON -- A Democratic bill to boost the federal minimum wage to $10.10 was blocked by Republicans in a Senate vote Wednesday, handing the Obama administration a defeat in the early months of this year's congressional elections.
The measure's rejection, which was anticipated, was framed by Democrats as a necessary boost for lower-income wage-earners and families looking to right themselves in the still-recovering economy.
The 54-42 vote fell six votes short of breaking a filibuster.
The legislation would have gradually raised the $7.25 hourly minimum to $10.10 over 30 months, with automatic annual increases for inflation.
"It is simply unacceptable that a single parent working a full 40 hours a week to support a family still has to live in poverty," said U.S. Sen. Kirsten Gillibrand (D-N.Y.). "Hardworking Americans deserve better."
Pointing to studies, Ms. Gillibrand said the bill would have: increased wages for 1.6 million New Yorkers, including an estimated 856,000 women; boosted the state's GDP by $656.8 million; supported the creation of 3,100 jobs in the state and lifted 210,000 New Yorkers out of poverty.
Democrats further argued that once it was fully phased in, in 2016, it would have pushed a family of three above the federal poverty line, a level such earners haven't surpassed since 1979.
But Republicans said it would be too expensive for employers and pointed to a Congressional Budget Office (CBO) study earlier this year that said an increase to $10.10 could mean the elimination of 500,000 jobs.
However, the CBO also said it could mean a higher income for 16.5 million low-earning workers.
Moderate Republicans have sought a deal on a lower figure than $10.10. But Senate Majority Leader Harry Reid (D-Nev.) said after the vote: "We're not going to compromise on $10.10."
Reid could force another vote on the issue closer to Election Day.
According to the federal Bureau of Labor Statistics, about two-thirds of the 3.3 million people who earned $7.25 an hour or less last year worked in service jobs, including food preparation and serving. More than six in 10 minimum wage workers are women and about half are under 25.
The minimum wage has been $7.25 since 2009. It was first enacted in 1938 at 25 cents.
-- Associated Press material was used in this report.