MADISON, Wis. -- A local business owner is warning that the proposal in Congress to raise the nation's minimum wage could have repercussions on businesses while a city official is championing the idea.

The nation's minimum wage for the first time in a decade, and the plan being put forth in Congress would gradually raise it to $7.25 an hour. In Madison, minmum wage for workers is $6.50 an hour, which is more than the current national minimum, WISC-TV reported.

However, there's a divide emerging in Madison over what's best for the city's lowest-paid workers.

Lucy Hernandes has worked at Octopus Car Wash since moving from Mexico more than a year ago.

"It's only this job, but I like that," Hernandes said,

Hernandes said that she started at $6.25 an hour on the assembly line, but her English language skills helped her earn a higher position as a cashier. Now, she makes about $9 an hour.

Octopus Car Wash owner Jeff Jurkens said that an increased minimum wage could mean fewer people will have that chance.

"Raising the pay of your employees doesn't increase your business. So the money has to come from somewhere," Jurkens said. "It takes away from the extra amount we have to pay our better employees."

That sentiment isn't shared by all. Austin King, Madison Common Council president and a longtime advocate for minimum wage increases, said that he thinks workers are hurt more by making less money.

"This modest step to $7.25, which is so overdue, is not going to see a statistically significant or even measurable impact on unemployment," King said.

Jurkens said that the implications of the proposed raise are clear.

"It has to come from somewhere," Jurkens said. "And it's either going to come from the customer or it's going come from your employees."

King said that he thinks the added costs are worth it.

"If I have to pay $0.03 cents more for a hamburger or $0.50 more for a car wash to make sure the person who's making my food or cleaning my car isn't living in abject poverty at $5.15 an hour, I think it's worth it," King said.

Currently, the approved U.S. House bill doesn't include any tax breaks for small businesses, but the Senate version of the bill is expected to. President George W. Bush has said it needs to in order for him to consider signing it, WISC-TV reported.

Whatever the outcome of the debate in nation's capital or the state's, Hernandes said that she knows how lucky she is.

"I like my job," she said. "It's hard but I like that."