To amend the Internal Revenue Code of 1986 to provide for small business tax incentives, to amend the Fair Labor Standards Act of 1938 to increase the minimum wage and to increase the exemption for annual gross volume of sales made or business done by an enterprise, and for other purposes.

Amends the Internal Revenue Code to make permanent the increased expensing allowance ($100,000) for depreciable business property. Increases to $500,000 the income threshold for reducing the expensing allowance and makes such threshold amount permanent. Provides for an inflation adjustment to the allowance and the threshold.

Allows a credit against alternative minimum tax liability for the work opportunity tax credit, the welfare to work tax credit, and the tax credit for increasing research activities.

Provides for a minimum standard tax deduction of $2,500 for expenses for the business use of a home.

Amends the Fair Labor Standards Act of 1938 to: (1) increase the minimum wage for tipped employees to $3.25 beginning on October 1, 2005; (2) exempt from minimum wage requirements employers with less than ten employees; (3) phase in an increase of the minimum wage to $6.50 beginning October 1, 2007; and (4) phase in an increase in the gross volume of sales amount applicable to the small business exemption from minimum wage requirements.

Amends title XVI (Supplemental Security Income) of the Social Security Act to exclude from income determinations under the supplemental security income programs minimum wage income that exceeds certain earned income.