Colin Moore is director of the Public Policy Center at the University of Hawaii Manoa.
It is often impossible to predict which bills will pass during a legislative session.
Some die mysteriously, while others are resurrected at the 11th hour.
But at the beginning of the year, I was confident that the Legislature would increase the minimum wage.
The reasons seemed obvious:
The need is urgent. The gap between the $10.10 minimum wage and what a single adult worker needs to earn 鈥 鈥 to cover basic living expenses, coupled with recent inflation, means that lower-income families are .
There is broad public support. A found that 77% of residents wanted to raise the minimum wage, while an earlier poll showed supported substantial minimum wage increases.
Policymakers back it. Increasing the minimum wage topped the agendas of both House and Senate leadership at the beginning of the session, and the named it as a chief legislative priority.
Yet with just over a week left in the legislative session, no minimum wage bill has passed. The House and the Senate are caught up in a political game of chicken that could have devastating consequences.
If the two chambers can鈥檛 come to an agreement by the end of this week, Hawaii鈥檚 working families will need to wait another year for relief.
How did we get here?
Tale Of Two Bills
It鈥檚 standard practice in Hawaii for both the House and the Senate to propose separate bills on important issues. These bills are heard in committees and voted on in their originating chamber before 鈥渃rossing over鈥 to the other chamber.
If the receiving chamber doesn鈥檛 agree to the bill exactly as written, it will typically go to 鈥渃onference committee,鈥 where representatives from both the House and the Senate try to reach an agreement. If they do, the bill passes. If not, it dies.
The 2022 legislative session began with both the Senate and the House proposing phased-in increases to a $18 minimum wage. The Senate introduced a bill 鈥 鈥 that reached $18 by 2026, while the House鈥檚 bill 鈥 鈥 proposed $18 by 2030.
The Senate bill made it through the chamber in record time, arriving at the House extraordinarily early in the session on Jan. 28.
The House never scheduled it for a hearing.
Instead, the House amended its own bill () to reach $18 by 2028. This put the House bill two years closer to the Senate鈥檚 preference of full implementation by 2026.
Yet the bill also included an increase in the amount of money that is taken out of tipped workers鈥 wages, a practice known as the 鈥渢ip credit.鈥
When the House bill crossed over to the Senate, the Senate amended the bill () to reach $18 by 2026. The Senate also eliminated the 鈥渢ip credit鈥 entirely by 2026, a move that pleased progressives, but arguably made it more difficult to reach a compromise.
Now, with just a week left to pass the bill, the House either needs to accept what the Senate sent over, or the bill needs to go to conference committee.
The House has already said it disagrees with the bill and has appointed 鈥渃onferees鈥 鈥 the representatives from the House side that will negotiate on the bill. As of this writing, the Senate has yet to appoint its own conferees, a highly unusual move this late in the game on such a high-profile issue.
At this point, there are only a few options remaining: 1) the House can pass the bill as amended by the Senate; 2) the Senate can appoint conferees and they can start working on a compromise; 3) both chambers can see who flinches first as they wait until the clock runs out.
The stakes are particularly high because another important policy is unaccountably wrapped up in all of this.
The Earned Income Tax Credit 鈥 a tax break for working families that helps 鈥 will expire at the end of the year if the Legislature doesn鈥檛 take action.
Even though the Senate and the House advanced similar proposals to expand and extend the EITC 鈥 the House says the EITC should be permanent, but the Senate wants to extend it by just six years 鈥 there鈥檚 disagreement about which bill should accomplish this. The legislative vehicle is now , a bill that was originally introduced as a refundable tax credit for automobile registration fees, but it, too, is being held hostage as part of this larger battle.
To our legislative leaders, I鈥檒l be blunt: Please do your job.
Sadly, the possibility that both bills will crash and burn despite strong support from most policymakers and residents is all too real. In 2019, a bill to increase the minimum wage made it to a conference committee, but died after the two chambers were unable to come to an agreement.
Here鈥檚 where things stand now: The House, but not the Senate, has appointed conferees on the minimum wage bill. And the Senate, but not the House, has appointed conferees on the EITC bill. Both chambers support each bill鈥檚 substantive goals, but neither the House nor the Senate seem inclined to compromise.
I understand that the House and Senate in every Legislature are frequently at loggerheads. The minimum wage and the EITC are complex and contentious policies.
But this is absurd.
To our legislative leaders, I鈥檒l be blunt: Please do your job. Find a way to compromise with your colleagues and pass these bills. Don鈥檛 make working families pay the price for legislative gamesmanship.
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This issue is now moot, however, has anyone questioned lawmakers on how they can lower the cost of living for everyone, including those supposedly trying to be head of households earning minimum wage? Would not reducing the government taxation burden be a much more effective way to provide relief to the working class? Would not removing the GE tax on food and medicine make a bigger impact for the community? It is clearly in the government's purview, versus trying to dictate what the free market has to pay it's employees. Let the market and the individual's skill set determine that. It is governments job to regulate taxes and public services. That burden should be the top concern for the legislature because the government machine continues to get bigger every year. Time to put the breaks on and help everyone by lowering taxes, not trying to force a wage increase.
wailani1961·
2 years ago
a tax break for working familiesThe US tax system is a well crafted, complex construct that entitles corporations not to pay taxes, protects asset accumulation, while encouraging middle-class debt that can be skimmed off of by the wealthy.Over the years, how did this tax system come to function as designed?Why, our political representatives in the service to their wealthy paymasters, of course.Another modern bitter pill of reality is that no matter what the working class earns, inflation will eat up any illusionary gains and the standard of living for middle Americans will continue its downward slope that's been going on since the 70s.I appreciate Colin Moore's efforts and encourage him to continue his work, no matter the odds against him.
Joseppi·
2 years ago
If they raise the minimum wage to $18 it won't be long before everything costs more. In a relatively short time those making $10 now will find themselves with the same affordability situation. It only makes sense. This creates a bigger problem when those who were living decent life will find themselves just outside of the minimum wage and having a hard time getting getting by. What about all the fixed income seniors who will find everything costing more making it harder to "just get by". In my opinion, we need to work on ways to lower the cost of living. A big problem is the way stores package their products. Before this inflation farce I could go to the market and pick up, for example, 4 thin cut pork chops for about $5. Once the price skyrocketed they would sell thin cut chops alright but they would leave the bone thick. Package it with 6 or more of the meat and it now cost $9 -$11. Another example dog pads used to cost $17.89 for 100 pads one day I went in and it changed overnight to $23.89. There are a lot of examples of how the stores making the inflation worse by doing this. If only people could minimize buying for a while...till they're forced to lower prices
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