The House has passed its version of the minimum-wage bill, which would increase the federal minimum wage to $7.25/hour, up from $5.15/hour. The bill has various provisions, intended to limit the harm done to small businesses, such as tax breaks. The tax breaks would be financed either by eliminating a tax shelter used by the wealthy who transfer income to their children (House version); limiting deferred executive compensation to $1 million/year, and eliminating the tax deduction for corporate fines or lawsuits (Senate version); or, via the House version, an accounting maneuver whereby corporations would pay a higher tax in 2012 but get their money back during the next year. (Presumably, the government would use the money for interest-bearing loans, then return it, without interest.)
As previously blogged, a federal minimum wage is just a bad idea. States are more than capable of determining their own minimum wages, and are more able than the federal govenrment to tailor those bills to their economies and costs of living.