(AFX) - Major provisions in a House bill raising the federal minimum wage and reducing taxes:
--Minimum wage: Increases the $5.15 hourly minimum wage to $7.25 in three steps: $5.85 on Jan. 1, $6.55 on June 1, 2008, and $7.25 on June 1, 2009.
--Estate tax: Gradually increases the amount of an estate exempt from taxation until it reaches $5 million for an individual and $10 million for a couple in 2015. Taxes estates worth up to $25 million at capital gains tax rates, currently 15 percent and scheduled to increase to 20 percent. Estates larger than $25 million would be taxed at 40 percent in 2010 and 30 percent in 2015.
--Extends through 2007 some tax breaks that expired last year. They include a deduction for state and local sales taxes, a deduction for college tuition and a deduction for teachers who purchase classroom supplies.
--For one year, allows homeowners to deduct the cost of premiums for mortgage insurance.
--Extends the business research and development tax credit through 2007.
--Revives incentives for businesses to hire welfare recipients and other workers facing barriers to employment.
--Allows whistleblowers to be paid 15 percent to 30 percent of taxes eventually collected from evaders who owe more than $2 million.
--Increases contribution to states for an abandoned mine fund.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.