August 15, 2006

OF THE ESTATE TAX, MINIMUM WAGE, AND GOOD GOAT BEHAVIOR


Caption: Current events have driven this man to drink.

West Virginia Congresswoman Shelley Moore Capito was recently quoted in the New York Times defending a House bill that linked a small minimum wage increase to a virtual repeal of the estate tax which affects a small number of people who inherit vast sums of wealth:

“Unlike some of my colleagues, I see this tax relief and minimum wage bill as complementary,” said Representative Shelley Moore Capito of West Virginia, one of the Republicans who has joined Democrats in pressing for a wage increase. “The sustaining of small businesses by keeping their vital assets will allow those making the minimum wage to continue working. This is a jobs bill.”


While it is commendable of Congresswoman Capito to support a minimum wage increase, El Cabrero must respectfully disagree about the links between estate tax repeal and minimum wage job creation.

They have about as much to do with each other as goats and good behavior.

Only a tiny handful of small businesses would be affected by the estate tax, which would only go into effect, if at all, after the business owner has died. It would thus have virtually nothing to do with day to day business operations.

Paris Hilton, the real poster child for estate tax repeal, probably didn't have too many minimum wage employees at the time she inherited her fortune.

For more on estate tax repeal and the minimum wage, here is an op-ed by yours truly from Sunday's Gazette-Mail.

Here's hoping that the next time the minimum wage comes up for a vote, it will be a clean bill and will enjoy the support of WV's entire congressional delegation.

GOAT ROPE ADVISORY LEVEL: ELEVATED

No comments: