President Bush signed into law a SEMA-supported measure that balances a minimum wage hike with $4.8 billion in small-business tax breaks. The wage will increase to $7.25 per hour over two years in three $.70 increments. The wage will rise to from $5.15 to $5.85 on July 24, 2007, followed by yearly increases to $6.55 and $7.25.
The tax-relief package increases the tax code’s annual expensing limits to $125,000 through 2008. The current limit is $112,000. Other provisions include incentives to hire disabled veterans and welfare workers.