The federal minimum wage increased from $5.15 to $5.85 on July 24, 2007. Two more $.70 increases will occur on the same date in 2008 and 2009, at which time the wage will be $7.25. While the federal wage has not been raised in a decade, at least 29 states and many local jurisdictions already have minimum-wage rates that are higher than the federal standard. For example, the current wage in California is $7.50 and will increase to $8.00 in 2008.
In exchange for the wage increase, small businesses were provided some tax relief. The tax code's annual expensing limits have been raised from $112,000 to $125,000 for 2007 and 2008.
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