Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘tax plan’

AFL-CIO Joins CWA Call for $4,000 Wage Increase for Working People

Wednesday, December 13th, 2017

The Donald Trump administration repeatedly has claimed that its tax bill would result in a $4,000 wage increase for working people. Today, the AFL-CIO has joined a campaign by the Communications Workers of America (CWA) to demand corporations guarantee this raise in writing. The labor federation is rallying the power of its 12.5 million members and the entire union movement to support this campaign in every industry.

AFL-CIO President Richard Trumka said:

CWA has inspired an innovative movement to demand working people get our fair share and expose the scam that is the Republican tax bill. Working people have heard the same old lies about the benefits of economic policies written by and for greedy corporations for too long. This campaign is about holding corporations and politicians accountable to their claims and getting a much-needed raise for America’s workers.

On Nov. 20, CWA sent a letter to its major employers, including AT&T, Verizon, General Electric Co., American Airlines and NBC Universal, calling on them to commit to that raise in writing. In joining the CWA’s efforts, the AFL-CIO is encouraging all unions from all sectors to join in by reaching out to their employers and encouraging all working people to sign a petition that puts employers on notice that they will be held accountable if the Republican tax bill becomes law. 

In a powerful op-ed, CWA President Christopher Shelton laid out how the Republican tax scam would hurt working people and increase the deficit by more than $1 trillion:

Republicans are on the brink of passing a massive tax overhaul, and it’s looking like the biggest con of the Trump era so far. And that’s saying a lot.

The legislation being jammed through by the House and Senate Republicans is a tax giveaway to corporations and the richest 1 percent, paid for by working and middle-income families.

Across the board, working people will be hurt by this plan, whether by the new incentives to corporations to send U.S. jobs overseas, the loss of the medical expense deduction, new taxes imposed on education benefits, the inability to deduct interest on student loans, the loss of state and local tax deductions, or the forced budget cuts to Medicare, transportation, health care and other critical programs.

Despite the double-talk from Republicans anxious to sell this plan, it’s not hard to figure out who Republicans really want to help. Why else would tax cuts for corporations and tax changes that benefit the wealthiest Americans—like the estate tax—be permanent, while individual tax cuts for middle-income families are only temporary?…

Working people know better than to believe the boss’ promises unless they are in writing. That’s why my union has asked some of our biggest employers to sign an agreement that says if the tax plan passes, working people will get their $4,000.

This blog was originally published by the AFL-CIO on December 12, 2017. Reprinted with permission. 

Don't Pass Huge Tax Cuts for the Wealthy on the Backs of Working People

Monday, November 27th, 2017

Republican leaders in the U.S. Senate have proposed a job-killing tax plan that favors the super-rich and wealthy corporations over working people. We cannot afford to let this bill become law.

Here’s why this plan is a bad idea:

  • Millions of working people would pay more. People making under $40,000 would be worse off, on average, in 2021; and people making under $75,000 would be worse off, on average, in 2027.
  • The super-rich and Wall Street would make out like bandits. The richest 0.1% would get an average tax cut of more than $208,000, and 62% of the benefits of the Senate bill would go to the richest 1%. Big banks, hedge funds and other Wall Street firms would be the biggest beneficiaries of key provisions of the bill.
  • Job-killing tax breaks for outsourcing. The Republican tax plan would lower the U.S. tax rate on offshore profits to zero, giving corporations more incentive to move American jobs offshore. 
  • Working people would lose health care. Thirteen million people would lose health insurance, and health care premiums would rise 10% in the non-group market. Meanwhile, Republicans want to cut Medicaid and Medicare by $1.5 trillion—the same price tag as their tax bill.
  • Job-killing cuts to infrastructure and education. Eliminating the deduction for state and local taxes would drastically reduce state and local investment in infrastructure and lead to $350 billion in education cuts, jeopardizing the jobs of 350,000 educators.

Republican tax and budget plans would make working people pay the price for wasteful tax giveaways by sending our jobs overseas; killing jobs in infrastructure and education; raising our taxes; increasing the number of uninsured; and cutting the essential public services we depend on.

Call your senator today at 844-899-9913.

This blog was originally published at AFL-CIO on November 27, 2017. Reprinted with permission.

About the Author: Kelly Ross is the deputy policy director at AFLCIO. 

Republicans want to give corporations yet another tax cut and call it paid family leave

Tuesday, November 21st, 2017

Americans want paid family leave—something people in most nations around the world already get. So it sounds like something to cheer that there’s a paid family leave provision in the Senate Republican tax plan, right? Yeah, no. This is very much a Republican family leave proposal, which is to say it’s a giveaway to big corporations that won’t get much for working Americans. 

The bill would give companies a tax credit for a small proportion of the worker’s pay, companies only get the credit at the end of the year—so if they can’t afford to offer leave up front, they can’t take advantage of it—and it expires in 2019.

“It’s a flimflam,” said Ellen Bravo, co-director at Family Values@Work, a national coalition of paid leave advocates. “It’s pretending to say we’re giving you something new that people urgently need when, in fact, it’s a giveaway to the bigger corporations that can already afford to do it.” […]

Several conservative economists agree. This kind of tax credit would most likely be embraced by companies that already offer paid family leave, wrote Aparna Mathur, a resident scholar in economic policy at the American Enterprise Institute.

“This is only a small step forward in this debate, not a giant leap,” Mathur said. “Much more can and should be done.”

Not to mention, including something they can call paid family leave is a great Republican trick for pretending their giant tax cuts for rich people package is good for working families. And—like this flimflam proposal—it’s just not.

Call your senators now at (202) 224-3121 and urge them to vote no on this giveaway to corporations and the wealthy at the expense of working families.

This blog was originally published at DailyKos on November 17, 2017. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

GOP Smash-And-Burn Tax Plan Does Nothing for Workers

Friday, October 27th, 2017

Congressional Republicans are selling a trickle-down tax scam times two. It’s the same old snake oil, with double hype and no cure.

A single statistic explains it all: one percent of Americans – that is the tiny, exclusive club of billionaires and millionaires – get 80 percent of the gain from this tax con. Eighty percent!

But that’s not all! To pay for that unneeded and unwarranted red-ribbon wrapped gift to the uber wealthy, Republicans are slashing and burning $5 trillion in programs cherished by workers, including Medicare and Medicaid.

Look at the statistic in reverse, and it seems worse: 99 percent of Americans will get only 20 percent of the benefit from this GOP tax scam. That’s not tax reform. That’s tax defraud.

Republican tax hucksters claim the uber rich will share. It’s the trickle down effect, they say, the 99 percent will get some trickle down.

It’s a trick. Zilch ever comes down. It’s nothing more than fake tax reform first deployed by voodoo-economics Reagan. There’s a basic question about this flim-flammery: Why do workers always get stuck depending on second-hand benefits? Real tax reform would put the rich in that position for once. Workers would get the big tax breaks and the fat cats could wait to see if any coins trickled up to jingle in their pockets.

House Speaker Paul Ryan claimed Republicans’ primary objective in messing with the tax code is to help the middle class, not the wealthy. Well, there’s a simple way to do that:  Give 99 percent of the tax breaks directly to the 99 percent.

The Republican charlatans hawking this new tax scam are asserting the pure malarkey that it provides two, count them TWO, trickle-down benefits. In addition to the tried-and-false fairytale that the rich will share with the rest after collecting their tax bounty, there’s the additional myth that corporations will redistribute downward some of their big fat tax scam bonuses.

A corporate tax break isn’t some sort of Wall Street baptism that will convert CEOs into believers in the concept of paying workers a fair share of the profit their labor creates.

Corporations have gotten tax breaks before and haven’t done that. And they’ve got plenty of cash to share with workers right now and don’t do it. Instead, they spend corporate money to push up CEO pay. Over the past nine years, corporations have shelled out nearly $4 trillion to buy back their own stock, a ploy that raises stock prices and, right along with them, CEO compensation. Worker pay, meanwhile, flat-lined.

In addition to all of that cash, U.S. corporations are currently sitting on another nearly $2 trillion. But CEOs and corporate boards aren’t sharing any of that with their beleaguered workers, who have struggled with stagnant wages for nearly three decades.

Still, last week, Kevin Hassett, chairman of the President’s Council of Economic Advisers, insisted that the massive corporate tax cut, from 35 percent down to 20 percent, will not trickle, but instead will shower down on workers in the form of pay raises ranging from $4,000 to $9,000 a year.

Booyah! Happy days are here again! With the median wage at $849 per week or $44,148 a year, that would be pay hikes ranging from 9 percent to 20 percent! Unprecedented!

Or, more likely, unrealistic.

Dishonest, incompetent, and absurd” is what Larry Summers called it. Summers was Treasury Secretary for President Bill Clinton and director of the National Economic Council for President Barack Obama.

Jason Furman, a professor at the Harvard Kennedy School who once held Hassett’s title at the  Council of Economic Advisers, called Hassett’s findings “implausible,”  “outside the mainstream” and “far-fetched.”

Frank Lysy, retired from a career at the World Bank, including as its chief economist, agreed that Hassett’s projection was absurd.

Hassett based his findings on unpublished studies by authors who neglected to suffer peer review and projected results with all the clueless positivity of Pollyanna. Meanwhile, Lysy noted, Hassett failed to account for actual experience. That would be the huge corporate tax cuts provided in Reagan’s Tax Reform Act of 1986.

Between 1986 and 1988, the top corporate tax rate dropped from 46 percent to 34 percent, but real wages fell by close to 6 percent between 1986 and 1990.

Thus many economists’ dim assessment of Hassett’s promises.

The other gob-smacking bunkum claim about the Republican tax scam is that it will gin up the economy, and, as a result, the federal government will receive even more tax money. So, in their alternative facts world, cutting taxes on the rich and corporations will not cause deficits. It will result in the government rolling in coin, like a pirate in a treasure trove. That’s the claim, and they’re sticking to it. Like their hero Karl Rove said, “We create our own reality.”

Here’s Republican Sen. Patrick J. Toomey, for example: “This tax plan will be deficit reducing.”

If the Pennsylvania politician truly believes that’s the case, it’s not clear why he voted for a budget that would cut $473 billion from Medicare and $1 trillion from Medicaid. If reducing the tax rate for the rich and corporations really would shrink the deficit, Republicans should be adding money to fund Medicare and Medicaid.

While cutting taxes on the rich won’t really boost the economy, it will increase income inequality. Makes sense, right? Give the richest 1 percenters 80 percent of the gains and the remaining 99 percent only 20 percent and the rich are going to get richer faster.

Economist Thomas Piketty, whose work focuses on wealth and income inequality and who wrote the best seller “Capital in the Twenty First Century,” found in his research no correlation between tax cuts for the rich and economic growth in industrialized countries since the 1970s. He did find, however, that the rich got much richer in countries like the United States that slashed tax rates for the 1 percent than in countries like France and Germany that did not.

This Republican tax scam is a case of the adage that former President George W. Bush once famously bungled: “Fool me once, shame on you. Fool me twice, shame on me.”

This blog was originally published at OurFuture.org on October 27, 2017. Reprinted with permission.

About the Author: Leo Gerard, International President of the United Steelworkers (USW), took office in 2001 after the retirement of former president George Becker.

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