July 29th, 2006 at 8:47 am
The Washington Post reports that the minimum wage hike “moderate” (liberals in hiding) Republican has been passed but with a nice catch: a permanent cut of the estate tax.
In the rush to bolster their party’s accomplishments before leaving today on a five-week summer break, House Republican leaders effectively took a gamble. If the Senate follows the House and passes legislation shoring up the pension system, raising the minimum wage, permanently cutting the estate tax, and extending such measures as a research-and-development tax credit, Republicans can say they departed for the summer in a flourish of accomplishments.
“Accomplishing” something for sake of having an accomplishment to count is a terrible way to govern. At best this is a compromise. For someone choosing people to govern in November, though, how much weight do you give to “This Republican voted for the minimum wage hike, I’ll vote for him over the Democrat?”
The Democrats have won here a sense of entitlement to those who for some reason or other haven’t negotiated a higher wage for themselves. Compare that to the number of people who have had a relative die and have seen a third to a half of their assets automatically go to the government. Wouldn’t the loss of half your assets tick you off more than getting “denied” a two-dollar an hour raise? It would seem to me that the House leadership has made this calculation in favor of those benefiting from the estate tax cut.
Older people generally have voted more statist and have powerful lobbies such as AARP. If they care about not being a burden to their children or wish to maximize how much they want to give to their kids, will they switch their vote from someone who would bribe them with prescription drugs to someone who won’t take half their estate away. I don’t know. I’m not in that position. Polls will tell.
Both the minimum wage hike and the estate tax itself are incentives against working. Why work harder or negotiate for more money when the government will mandate that your boss pay you more anyway? Why collect a bunch of assets, invest them, and cultivate them if the government is going to take it away?
Jeffery Alan Miron has more.
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