On May May 25th, 2007 President Bush signed legislation that increases the federal minimum wage to $7.25 an hour. The U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (H.R. 2206), which provides $120 billion primarily for the wars in Iraq and Afghanistan, includes a provision raising the federal minimum wage to $5.85 an hour beginning July 24, 2007, $6.55 an hour starting a year later, and $7.25 an hour, beginning two years later.

The bill also contains a $4.84 billion small business tax relief package and includes an extension of the Work Opportunity Tax Credit (WOTC). Congress approved the war funding bill on May 24.

Labels: WOTC