The White House weighed in today with tepid support for a $1.3 billion package of small-business tax breaks the House plans to pass this week.

The Office of Management and Budget said the administration backs the measure (HR 976) “as a step toward legislation to increase the minimum wage by $2.10 over two years, but believes the bill should be strengthened by adding additional small-business tax relief to mitigate potential job loss.”

On Feb. 1, the Senate passed an $8.3 billion tax cut package, offset by a number of revenue-raisers, and paired it with a minimum wage increase (HR 2). But House Democrats balked at the scope of the proposed tax breaks, while many businesses objected to the offsets chosen by the Senate Finance Committee.

The OMB statement said President Bush prefers the Senate’s larger tax-relief proposal but “does not think it is necessary to tie this small-business tax relief to revenue increases.”

House Majority Leader Steny H. Hoyer, D-Md., said he plans up to one hour of floor debate on the bipartisan House bill, which was approved Feb. 12 by the Ways and Means Committee.