August 1, 2006
Tell Senators to Reject Estate Tax Cuts
After failing twice this year, Senate Majority Leader Bill Frist will try again this week to pass a drastic cut in the federal estate tax. The Senate vote expected this Friday will be on a tax package linking a budget-busting estate tax measure that would add $800 billion in deficits over ten years with a long-overdue hike in the minimum wage and a set of other tax cuts known as "extenders."
Sen. Frist has said that he will not allow any other votes this year on the minimum wage. He’s telling Senators to take it or leave it – that if they reject the estate tax repeal, they lose any possibility of increasing the minimum wage this year.
Action Needed
Call your Senators toll-free this week to protect the estate tax at 800-459-1887. This number will bring you to the Capitol Switchboard where you can be connected to your Senators’ offices.
Ask your Senators to VOTE NO on H.R. 5970, The Estate Tax and Extension of Tax Relief Act of 2006.
The toll free number has been generously donated by the American Friends Service Committee.
Talking Points
My name is ______, and I live in City/State. As a social worker and member of NASW, I am calling to ask Senator ______ to vote "no" on the Estate Tax and Extension of Tax Relief Act (H.R. 5970).
- This bill attaches a severe, permanent reduction in the estate tax and additional provisions to extend some of the 2001 tax cuts that are set to expire to a provision to gradually raise the federal minimum wage to $7.25 over three years.
- An increase in the minimum wage, currently $5.15 an hour, is long overdue. But it’s shameful to tie a modest wage increase for low-wage workers to a massive, permanent tax break for a handful of multi-millionaires.
- I urge Senator ______ not to give in to blackmail and to vote “no” on H.R. 5970.
The Issue at Hand
Friday night before leaving for the August recess, House leadership brought up H.R. 5970 for a vote. It passed 230-180. The vote is expected to be much closer in the Senate. Any pressure placed on Senators to vote against this bill will be very useful.
The cuts to the estate tax would add $800 billion in deficits over ten years. These deficits would most likely be paid through cuts to important social and health programs such as health care, Head Start, and the Social Services Block Grants. No one needs and the nation cannot afford another massive tax give-away that will blow an $800 billion dollar hole in the budget that will benefit only the wealthiest 8,000 American families, giving them an average tax cut of $1.4 million.
Minimum wage workers need and deserve the modest minimum wage increase to $7.25 an hour to stay above the poverty line. However, the problem with the minimum wage component of H.R. 5970 is that it takes 3 years to raise the minimum wage from $5.15 to $7.25/hour; whereas other minimum wage legislation before the Senate and supported by NASW would raise the minimum wage from $5.15 to $7.25/hour over 2 years (S. 1062).
Additionally, the minimum wage provision in H.R. 5970 would weaken existing minimum wage eligibility for people who receive tips (such as restaurant servers), overtime protections, or other labor laws.
By tying the estate tax cut to a minimum wage increase, the House and Senate leadership are forcing members of Congress to decide between supporting minimum wage and supporting reckless tax cuts. Although NASW supports and increase in the minimum wage, we cannot support and increase that is tied to estate tax cuts.
Thank you for your advocacy!
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