Clinton also has signed into law a 90-cent increase in the federal minimum wage. It increases the minimum wage from $4.25 an hour to $4.75, effective October 1, and to $5.15 an hour on Sept. 1, 1997. It will be the first increase in five years in the minimum wage, which is near an inflation-adjusted, 40-year low. The legislation also provides $21 billion in tax breaks over 10 years, mostly to small businesses. The tax portion of the bill would provide more generous equipment write-offs for small businesses and a new type of simplified pension plan for companies employing 100 or fewer workers. The new tax breaks are paid for by phasing out some existing breaks, including one benefiting manufacturers operating in Puerto Rico and other U.S. territories.
Judi Hasson
Washington Correspondent
