Minimum Wage Increase 2007

President Bush signed a minimum wage increase into law Friday, May 25, as part of an Iraq supplemental spending bill. His action came shortly after the House and Senate approved the wage/tax relief package as part of the Iraq bill. [The House added the minimum-wage and other domestic-spending provisions to the Iraq bill on a 348-73 vote and the Senate followed with an 80-14 vote approving the combined Iraq /minimum wage/domestic spending package before sending it to President Bush.]

The U.S. Department of Labor has announced that July 24, 2007 was the official date of the first of three 70-cent step increases. Here is the full schedule of the three federal increases:


July 24, 2007 - $5.85

July 24, 2008 - $6.55

July 24, 2009 - $7.25

Will this affect the small business owners in McAllen?

Economics 101: The business owner must pass his costs on to the customer, and who is that customer? That means you and me and anyone else who purchases anything will be somehow affected.

Who is affected in the long run?