US votes for higher minimum wage

Many of the worst-paid workers in the US are economic migrants

The US has taken a first step towards raising minimum wages for its poorest workers, although critics say the plans are unlikely to get much further.

The House of Representatives voted to raise the minimum-wage level from its current rate of $5.15 (£2.80) an hour to $7.25 by the middle of 2009.

However, the wage move is tied to an unpopular plan to cut estate taxes.

Opponents said they did not expect the joint bill to get approval when it goes before the US Senate.

Estate taxes are a form of inheritance tax levied when a property transfers from one person to another following a death.

Republicans claim it would aid small businesses and farmers.

But many economists point out that extending the estate tax cut would only benefit a tiny - but already wealthy - proportion of the US population.

'Giveaway'

The House of Representatives passed the wage and tax bill on Saturday by 230 votes to 180, but reports said that the debate was often heated and bitter.

Critics of the bill claim it is a stunt to garner support among workers for the administration of George W Bush.

"The Senate has rejected fiscally irresponsible estate-tax giveaways before and will reject them again," said Senate Minority Leader Harry Reid, a Democrat.

"Blackmailing working families will not change that outcome," he said.

The president's supporters argue that twinning the policies is the best way to get them past the Senate, where many Republicans are opposed to a higher minimum wage because of fears it would hurt businesses.

The Senate is due to debate the bill next week and it also includes other tax cuts that are estimated to cost about $310bn over the next decade.