In an 18-14 vote, the state Senate voted Tuesday to increase Wisconsin's minimum wage from $6.50 to $7.60 per hour.
According to state Sen. Russ Decker, D-Schofield, the bill will go into effect June 1, 2009, and be indexed annually for inflation.
This is the best kind of wage increase because it gets money into the pockets of those who need it the most,"" Decker said. ""It helps working families keep up with the rising costs of food, clothing, gas and rent.""
State Republicans, however, argued an increase would do more harm to the state's already troubled economy.
""The economy is in the toilet, no ifs, ands or buts about it,"" state Sen. Alan Lasee, R-De Pere, said. ""It's nice to give everyone a pay raise, but the fact is the timing of this is just atrocious.""
State Sen. Ted Kanavas, R-Brookfield, echoed Lasee's concerns when he said a wage increase would place added stress on small business owners.
According to Ryan Smith, spokesperson for state Sen. Robert Cowles, R-Green Bay, a minimum wage indexed for inflation will put many ""mom and pop shops"" out of business because they will be unable to meet payroll.
Conversely, Democrats stand by their belief that a minimum wage increase is a well-deserved victory for the state's laborers.
""American workers are the backbone of our economy, yet they have been treated by our government like they are the backwater of our society,"" state Sen. Spencer Coggs, D- Milwaukee said. ""It is time that we increase the minimum wage to allow the working poor to have a chance to meet their needs and pay their bills.""
Rather than increase the wage rate to aid workers, Republicans would prefer a tax structure benefitting small businesses.
""I would have liked to see tax cuts for businesses or incentives for those people who hire new employees,"" Lasee said. ""I know we don't have the money to give out real dollars, but certainly we can create a taxing structure that benefits those people that hire and continue to hire employees.
