© Tasos Katopodis/Getty ImagesThe sun rises over the US Capitol on December 28, 2020 in Washington, DC.
Senate Democrats decided Sunday to abandon an alternative proposal to penalize companies for not providing a $15 minimum wage to their employees, the latest indication that boosting the federal minimum wage in this Congress remains an extremely tall order, according to a person involved in the talks.
Democrats had a difficult time crafting the tax provisions in the proposal, sources said, so they are looking at other potential avenues to boost the rate. Yet it underscores the dire chances of boosting the wage after the Senate parliamentarian ruled that their initial plan doesn't fall within the rules of budget reconciliation, a process that allows Democrats to pass the $1.9 trillion Covid-19 relief plan with just 51 votes.
If they can't find an alternative rate hike to fit into the budget reconciliation bill, then Democrats will have to try to pass such a plan through regular order, meaning 60 votes would be needed in the 50-50 Senate.
The relief bill hits the Senate floor later this week.
The Washington Post was first to report news of Senate Democrats abandoning the corporate tax penalty plan.
This is a breaking story and will be updated.