The limits on deferred compensation plans contained in the Senate version of minimum wage legislation are “a solution in search of a problem,” according to an official at the National Association of Manufacturers.
Ken Petrini, a Pennsylvania executive, made that case for the National Association of Manufacturers, Washington, Wednesday during a hearing organized by the House Ways and Means Committee.
Petrini said his firm and NAM “strongly oppose” the deferred comp provisions in the Senate bill.
Another witness, Edward Kleinbard, who testified on behalf of the Securities Industry and Financial Markets Association, New York, said the Senate provisions are “profoundly undercooked” and needed to be “put back in the oven” to develop further.
The Senate passed a minimum wage bill that raises the minimum wage and also includes a number of additional tax breaks, along with revenue-raising measures to offset the cost of the new tax breaks.
The House tried to pass a “clean” minimum wage bill that raises the minimum wage and includes just enough other provisions to ease the burden of the increase on small businesses.
The House bill is running into strong opposition in the Senate.