Shrill election year claims regarding tax policy in a Democratic 110th Congress may be having as muted an effect on voters as credit-taking for the stock market surge and low unemployment.

Democrats are no longer talk about rolling back the Bush tax cuts on the wealthy. They are silent about whether or not to extend these cuts, which do not expire for another two years, and say they would push for higher taxes on corporations, particularly oil companies, by eliminating breaks and urging a crackdown on "loopholes," the Wall Street Journal reports.

Similarly, says a Bloomberg article published yesterday:

Republicans who planned to use low unemployment, cheaper gasoline and a surging stock market as a shield against discontent over the Iraq war and congressional scandals are discovering that there's little protection to be had.... In the face of growing concerns about income inequality ... it should be no surprise that voters aren't swayed when Republicans argue that President George W. Bush's $2 trillion tax cuts have produced a sizzling economy.

"The story used to be a rising tide raises all boats, and now it just raises all yachts," speculates Prof. Edward Tufte, a political scientist at Yale University.

Yesterday, Adam posted about several state ballot initiatives that would raise the minimum wage at the state level. As it happens, these are very popular initiatives.

BNA ($$):

Six states appear virtually certain to increase their state minimum wage, with support for the ballot initiatives ranging from 68 to 81 percent, according to the latest polls.

If they are approved, nearly 70 percent of American workers would be employed in states with a minimum wage higher than the federal rate of $5.15 an hour.

And according to a CBS News/New York Times poll, 85% of Americans favor increasing the minimum wage from $5.15 an hour to $7.25 an hour.

Given these data points, I’m even more confused as to why Congress has refused to raise the minimum wage. It’s almost as if their priorities are not totally inline with those of most Americans.

While congressional Democrats have crowed about raising the minimum wage as a top priority should there be a shift in power in Congress, states continue to blaze past the federal government and enact increases in their respective state minimum wages.

The Economic Policy Institute reports that "six states will be given the opportunity to raise wages for as many as 1.5 million workers" through ballot initiative come November 7. The states, (Arizona, Colorado, Missouri, Montana, Nevada, and Ohio) all have proposals in place that would increase the state minimum wage as well as tie future increases to a cost-of-living index.

Currently, 22 states have minimum wages above the federal rate of $5.15 per hour. EPI has calculated that if these six states all pass their initiatives on Election Day, over 70 percent of the workforce in America will live in a state with a higher required wage than the federal level. In addition, EPI released a report: Economic Effects of State Minimum Wage Increases, that examines the methods and findings of the major research that has been done on the effects of minimum wage raises.

A few days ago, CNN released a fascinating poll on how many Americans feel that the American dream is beyond their reach. According to the poll, it's a majority now, 54 percent.

The poll also reveals that 74 percent of Americans regard Congress as "out of touch" and 79 percent feel that big business has too much influence over Bush administrattion policies.

The CNN write-up of the poll (see link above) includes a entertaining but informative William Schneider video segment covering these issues -- worth watching and bearing in mind as a potential harbinger as we head into the final two weeks before the midterm elections.

Sen. Ted Kennedy (D-MA) has promised (CQ-$$) the swift passage of a minimum wage bill if the Democrats take power. Prospective House Speaker Rep. Nancy Pelosi has made a similar promise.

Kennedy, who would be chairman of the Senate Health, Education, Labor and Pensions Committee if the Democrats can gain six seats Nov. 7, said he would try to follow Pelosi’s example.

While a Democratic-controlled House could easily pass a minimum wage increase, opposition from conservatives in the Senate would make quick action more difficult.

“Let’s get a Democratic Senate, and I’ll do my damnedest to get this out in 24 hours, too,” Kennedy said in a conference call intended to boost support for minimum wage initiatives on the ballot in six states.

The now-cooling housing market, which had been growing at rapid clip, priced a lot of housing outside the reach of many middle-class workers. Looking for affordable housing, a lot of families have opted to move further out into the suburbs looking for cheaper housing. This would seem like a solution to the problem of ever-increasing home prices.

Maybe not (WSJ, $$):

Moving to an area with lower housing costs often doesn't pay off for low-income Americans, according to a study to be released today by the Center for Housing Policy, a nonprofit research group based in Washington.

The study, which looks at families with low to moderate incomes in 28 metropolitan areas, found that transportation costs in places with cheaper housing are often so high that they wipe out the savings from lower rent or mortgage payments. Such places tend to be farther from employers or short on public transportation, which makes commuting costlier.

[...]

The study also found that moving to an inexpensive outer suburb, but continuing to work near a city center, often backfires. Typically, a move that adds more than about 12 miles to a one-way commute will result in a rise in transport costs that outweighs the savings on housing, the researchers found.

EPI has released a statement signed by over 650 economists calling for an increase in the federal minimum wage.

As economists who are concerned about the problems facing low-wage workers, we believe the Fair Minimum Wage Act of 2005’s proposed phased-in increase in the federal minimum wage to $7.25 falls well within the range of options where the benefits to the labor market, workers, and the overall economy would be positive.

Twenty-two states and the District of Columbia have set their minimum wages above the federal level. Arizona, Colorado, Missouri, Montana, Nevada and Ohio, are considering similar measures. As with a federal increase, modest increases in state minimum wages in the range of $1.00 to $2.50 and indexing to protect against inflation can significantly improve the lives of low-income workers and their families, without the adverse effects that critics have claimed.

Included in the list of cosigners are five Nobel laureates in Economics - Kenneth Arrow, Lawrence Klein, Robert Solow, Clive Granger, and Joseph Stiglitz

Read the statement here.