Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Tire Cologne canceled; rescheduled until 2022
      New round of Paycheck Protection Program funding opens
      Vaccine may usher sense of normalcy
      Cover-up: More retailers requiring face masks to curb COVID
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Icahn Auto trims fiscal 2020 operating loss despite 14% lower sales
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Sumitomo adds treadwear-detection to 'Sensor Core' toolkit
    • CarAdvise partnering with RepairSmith mobile repair services
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
      Point S posts strongest year ever in sales profit, growth, store growth
      Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
    • Conlan Tire buys BestDrive locations in Ark., Okla., Texas from Continental
      Michelin upgrades 2 lines of Energy-branded truck tires
      TravelCenters plans 6 TA Express sites in California in 2021
      Carlisle TyrFil broadens recycling technology options
    • USTMA joins coalition supporting passage of Equality Act
      McMahon's Best-One increases its minimum wage to $15
      Oshkosh unit gets contract for new USPS local delivery vehicle
      Conti recalling 94,000 Conti-, General-, Barum-brand LT/SUV tires
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
      Rebound in car tire demand drives USTMA market forecast for 2021
      Michelin driving for '100% sustainable' tires by 2050
    • DTM switches horses mid-stream; awards race tire contract to Michelin
      Bridgestone World Solar Challenge canceled due to pandemic restrictions
      Pirelli, Goodyear ink sedan racing series contracts in Canada, Europe
      Goodyear extends partnership with Nürburgring race circuit
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      Michelin upgrades 2 lines of Energy-branded truck tires
      Falken revamps winter tire lineup with studless Eurowinter products
      Michelin launching ‘eco-responsible' performance tire for sporty EVs
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      New Nexen Tire Garage offers dealers digital resources
      CarAdvise partnering with RepairSmith mobile repair services
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
    • Pennzoil offering carbon-neutral lubricants for passenger cars
      Washington dealership uses new-school solution for recruiting auto techs
      Marinucci: Customers may ignore dangerous conditions
      Automotive Lift Institute introduces Check360 inspection, label
    • SEMA survey shows resilient auto aftermarket in 2020
      SEMA scholarships and loan forgiveness now available
      WTC hosting webinar Jan. 20 on load-capacity standards
      Denver's Brian Sump named AAPEX Shop Owner of the Year
    • SEMA survey shows resilient auto aftermarket in 2020
      Trade groups oppose minimum wage increase proposal
      New stimulus package fixes PPP loan confusion
      Vaccine may usher sense of normalcy
    • U.S.-sourced Milestar Weatherguard AS710 offers all-season value
      New Nexen Tire Garage offers dealers digital resources
      Goodyear to raise prices by up to 8% on all passenger tires on April 1
      Sentury's 10-year global expansion strategy will include plants in North America, Europe
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      An introduction to wheel balancing
      Wheel weights: Balancing form with function
      Choosing the right balancing equipment
    • Video: Demounting
      Tire changer types, tips and trends
      How to clear rim rust and corrosion
      An introduction to demounting, mounting and inflation
    • Video: Safety
      Customers
      Considerations for shop safety policies
      Introduction: Creating a culture of safety
    • Video: Tire Repair
      Essential tools, materials and equipment for tire repair
      An introduction to tire repair
      How to properly patch a puncture
    • Video: TMPS Service
      The life-saving work of TPMS
      An introduction to TPMS service
      The importance of proper relearn procedures
    • Video: Training
      Internship ideas to attract tech talent
      Choosing the right auto service tech school
      Intro: Finding and training technicians
    • Video:Vehicle Lifting
      The gravity of proper lift points
      Safety essentials when using jack stands
      An introduction to lifts and lift safety
    • Video: Wheel Torque
      The importance of torque specifications
      Introduction to proper wheel installation
      Torque check and recheck recommendations
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
March 15, 2000 01:00 AM

Industry wary of current wage-tax proposals

Miles Moore
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    WASHINGTON (March 15, 2000)—Representatives of the tire and general business sectors are leery of the different minimum wage hike/small business tax cut bills passed by the House and Senate.

    Although they appreciate the tax breaks for small businesses, they feel a minimum wage increase is at best counterproductive for the economy. Furthermore, they note President Clinton´s threat of a veto should either package pass Congress unchanged.

    The International Tire and Rubber Association thinks it´s just as well if the president carries out his threat, for the tax breaks won´t erase the burden of a higher minimum wage, according to Roy E. Littlefield, ITRA director of government affairs.

    "These are very, very difficult times for small business, and profit margins are razor-thin," Mr. Littlefield said. "It´s not that our people pay minimum wage, but when you raise the minimum wage, you raise the bar across the board."

    The Tire Association of North America is "still looking" at both packages to determine which, if any, it will support, according to Ross Kogel, TANA interim executive vice president.

    TANA is a member of the Small Business Legislative Council, which estimates that the latest increase in the minimum wage has cost the working poor 199,000 jobs and businesses $31 billion in payroll costs since its passage four years ago, Mr. Kogel said. "We´re split as to these bills and their effects," he said. "There are parts of these bills that will help our members, and parts which will hurt them."

    The Rubber Manufacturers Association was similarly noncommittal. "Like all members of the business community, we will be watching the developments on the minimum wage package closely," said Ann Wilson, RMA vice president of government affairs. "We will particularly be watching the tax package and offering assistance as it becomes appropriate."

    As for the U.S. Chamber of Commerce, it "has taken a position that we oppose a minimum wage hike of any amount over any period of time and are highly in favor of tax cuts," a spokeswoman said.

    The House bill, passed 282-143 on March 9, increases the minimum wage $1 over two years, to $6.15 per hour from $5.15. It also offers tax breaks for small business worth $45.7 billion over five years and $122.7 billion over 10, including: a reduction in the top rate of the estate tax to 50 percent from 55 percent by 2002, with a 1-percent decrease in all other brackets; and a change in the deductibility of health insurance premiums for the self-employed, making them fully deductible in 2001.

    The Senate passed its own minimum wage/tax cut package in November, as part of a bankruptcy reform bill. That legislation would phase in the $1 minimum wage hike over three years.

    The Senate bill, worth $18.4 billion over five years and $75 billion over 10, does nothing to reduce the estate tax. But it makes total deductibility for self-employed health insurance premiums immediate. It also removes the 0.2-percent federal unemployment surtax, which otherwise runs until 2007, and it grants a permanent extension of the work opportunity tax credit, which gives employers a tax break on the first-year wages of handicapped or minority employees.

    Both bills are identical in some respects, such as increasing the equipment expensing allowance to $30,000 from $19,000.

    The House and Senate must still set a date to begin a conference on how to reconcile their tax packages. The Clinton White House, meanwhile, has said all along it will not approve either package, and blasted congressional Republicans for tying the minimum wage increase to tax cuts.

    On March 10, however, President Clinton said he had received "some encouraging signals" on reaching a compromise with congressional leaders. He did not go into details as to what these signals were. ©

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award