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Posts Tagged ‘Tax Breaks For The Rich’

Labor Day: Build Esprit de Corps for Action

 
Celebrate Labor Day.  Really, celebrate. It’s important.

Wear a t-shirt announcing to the world the name of your union and march in a parade, chanting and whooping it up about how glad you are to belong to an organization whose members are devoted to looking out for each other. If you’re among those without a union, proclaim your profession and declare your pride in the hard work you do. Make some happy noise. Infect your fellow marchers with your zeal.

Invite your most beleaguered neighbors, friends and co-workers over for a picnic. Raise a pint, braise some burgers and praise your companions for their skill, devotion and compassion. Recognize them for all they’ve persevered through since this relentless recession began in December of 2007.  Build esprit de corps among your fellow workers.

This is one day devoted to labor, to the middle class, to the majority. One day out of 365. On this holiday, everyone gives an obligatory nod to workers. So don’t fret this Labor Day. Don’t waste it away in apathetic doldrums. Don’t let the minority rich and their purchased politicians take this celebration away from us too.

Some, including former Labor Secretary Robert Reich, have called for protests on Labor Day. They say workers must use this opportunity to demand that Washington solve the real crisis debilitating this country – dogged joblessness.

Reich is right. But it’s too early for that. Ultimately, workers must flip this ugly situation upside down so that once a year it’s Rich People’s Day. Once a year, the middle class gives the frivolous Kardashians and tax-shirking GEs of the world an obligatory nod. But every other day, 364 days a year, is labor day. (more…)

GOP Offers No Death Panels, Just Death From Lack of Care

Leo W. Gerard

By Leo W. Gerard
USW International President

Republicans concocted death panels in an attempt to terrify Americans about health care reform, then propagated the lie because they wanted insurance corporations to profit from illness and injury unfettered.

The Patient Protection and Affordable Care Act passed anyway, but now the GOP has announced that it plans to kill the reform, and Medicaid and Medicare too.

In one fell swoop, Republicans would foreclose on Americas’ long-held and cherished expectation that they’ll receive health coverage from their government in their old age, impoverishment or infirmity. For the elderly, poor, unemployed, disabled and juvenile who can’t afford insurance, the GOP offers no death panels, just death from lack of care.

U.S. Representative Paul D. Ryan, a Republican from Wisconsin and chairman of the House Budget Committee, disclosed the GOP scheme to massacre Medicare and Medicaid. Instead of the government directly paying for medical services for the elderly and impoverished, Republicans would shift costs to states and the elderly. Under their plan, instead of Medicare, the federal government would give seniors an unspecified amount of money toward the cost of premiums for private health insurance. Also, instead of Medicaid, the GOP would give states some money to help pay for insurance for the poor, which includes nursing home care for the elderly. States and the elderly then would be stuck paying insurance costs above the amount provided by the federal government.

Ryan and his GOP gang transfer medical costs to the elderly and impoverished to compensate for federal revenues lost when they slash income taxes levied on the rich and corporations by an additional 30 percent.

The GOP message to the rich and to corporations: keep your tax break and take another 30 percent. The GOP message to the middle class: pay more and lose your safety net.

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The founders of the United States intended the government to serve the people not prostrate itself to the privileged. The signers of the Declaration of Independence and framers of the U.S. Constitution discarded the doctrine of the divine right of kings, the idea that monarchs derived their authority from God and thus were not subject to the will of the governed.

Instead, the founders and framers determined that rich and poor, men and monarchs are equal, that they possess inalienable rights and that the function of government is to secure those rights. Their vision of government is an organization operating with the consent of the people to protect the people. That is, to protect their inalienable rights, to protect them from inequities, to protect them from internal and external threats.

The GOP budget is a manifestation of a very different government philosophy. It subjugates the people to the divine right of corporations and the rich.

If the wealthy and corporations had paid their share of federal income taxes over the past 30 years since successive Republican presidents began cutting them, the federal deficit would be relative peanuts, if it existed at all. If the wealthy paid their share of social security taxes, the program would not face shortfalls after 2036. If corporations and the wealthy paid federal income taxes at the rates they did during the presidencies of Republicans Dwight D. Eisenhower or Richard Nixon, no one would be talking about killing off Medicaid and Medicare.

The nation’s largest corporation, General Electric, accumulated $26 billion in American profits over the past five years, while demanding $4.1 billion in “rebates” from the IRS and paying absolutely no federal income taxes last year. Two out of three U.S. corporations paid no income taxes from 1998 through 2005. The effective tax rate for the wealthy – the rate after loopholes and special deals — is nine points lower than that paid by the typical worker.

Still, Paul Ryan and his Republican crew insist that corporations and the rich are paying too much and demand that they pay an official rate of 25 percent instead of 35 percent. Because that will mean billions in lost revenue, the GOP slashes programs that protect the masses in the middle, education, health care reform, veterans benefits, public transportation, health and safety regulation, food and import inspection, Medicaid and Medicare. The GOP guts government for the people.

Because of those huge tax cuts for the rich and corporations, the Republican budget doesn’t even end the deficit until 2040. In fact, the non-partisan Congressional Budget Office determined the tax cuts would increase the deficit’s share of the economy for the first 10 years of implementation. Under the GOP plan, public debt would rise to 70 percent of GDP by 2022.  If the government maintained its current tax and spending levels, the debt would grow to 67 percent of GDP by 2022.

The GOP budget shows Republicans believe corporations and the rich are super citizens with divine rights, while the vast majority of the nation’s citizens, the middle class, are lesser beings who are to be taxed but not protected by their government.

Many of these citizens – the elderly, the poor, the disabled – won’t be able to afford health insurance under the GOP scheme. They’ve paid taxes all their lives to support programs like Medicare. Now, the GOP intends to rip that out from under them, to take away the protection that they believed their government — government for the people — would provide.

The GOP announced this week that it believes new tax cuts for the rich and corporations are more important than Medicare and Medicaid, more important than the lives of vulnerable Americans who will die for lack of health insurance to pay for care.

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Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.

In a Democracy, Freedom of Assembly Trumps “Free Enterprise”

Leo W. Gerard

By Leo W. Gerard
USW International President

It’s illegal in America now to buy or sell a human being, but a recorded telephone conversation between a Republican governor and a guy he thought was a billionaire benefactor shows that it’s still possible to own a politician.

Wisconsin’s Republican Gov. Scott Walker didn’t have time to talk to Democratic leaders or union officials about his anti-union legislation – a proposal that has incited protests by tens of thousands for more than a week in Madison. But he jumped on the phone for 20 minutes this week when told the caller was billionaire David Koch, who was Walker’s second largest campaign contributor, who provided $1 million to a GOP fund to attack Walker’s opponent and who bankrolls radical libertarian organizations and the Tea Party.

Republicans like Walker, owned by billionaires like Koch, are fulfilling demands from corporate interests that government “free” enterprise by slashing corporate taxes and regulation. Over the past three years, America has suffered the consequences of a government under-funded after tax breaks to the rich and under-performing after years of lax regulation. The result: a growing federal deficit, the Wall Street collapse, the BP oil spill and the deaths of 29 Upper Big Branch miners. Still, Republicans want more government atrophy. That would leave only one restraint on corporate control of the economy, environment and government.

That one restraint is labor unions. A union is workers using their constitutionally-guaranteed freedom to assemble, the right to get together as a group, in this case a labor organization, to negotiate collectively with employers for better wages, benefits and working conditions.

Workers who gathered together in unions over two centuries in this country have succeeded in raising their wages, as well as the wages of non-union workers in competing industries. Union workers secured improved working conditions so fewer were killed on the job. And they achieved creation of the federal Occupational Health and Safety Administration, which protects the safety of all workers. Over the decades, unions played a major role is obtaining legislation barring child labor, standardizing the 40-hour work week, and creating both Social Security and Medicare.

Similarly, studies show union successes enhance the lives of all workers in a state. In anti-union states, the average worker earns $5,333 less a year, the proportion of people without health insurance is 21 percent higher and the rate of workplace death is 51 percent higher. In addition, there’s evidence that union workers improve quality. Currently, after receiving an education from union teachers, Wisconsin youngsters collectively score second highest in the nation on the ACT/SAT college admission tests. By contrast, the five states barring teacher unions rank at the bottom of the pack: South Carolina dead last at 50th; North Carolina, second last at 49th; Georgia third from last at 47th; Texas fourth from last at 47th, and Virginia ever so slightly better at 44th.

Still, Wisconsin Gov. Walker wants to destroy his state’s teachers unions. Two studies determined that public workers, that is those employed by governments such as teachers,  firefighters and police officers, earn less than their counterparts in the private sector when both benefits and education are factored into the calculation. It wasn’t union workers, in the public or the private sector, who caused states’ financial crises. That was gambling on Wall Street, which ravaged the economy. Still, Republican governors across the country are demanding that government workers pay.

The government workers in Wisconsin already agreed to accept Walker’s financial demands – that they pay more for their pensions and health care. This negates Walker’s contention that this dispute is about the budget. The governor is demanding more than those financial concessions. He wants the legislature to cripple the unions’ ability to bargain for improvements in the future. In his “budget repair bill,” he would strip government workers of their right to negotiate over working conditions and benefits. They’d be able to discuss wages but could never get an increase above inflation.

This is union busting. At the demand of corporate interests. And Walker is joined by Republicans in Ohio, Indiana, Oklahoma, Tennessee and others in attempting to do it, both to private and public sector workers.

This is not about money. It’s about controlling America. Corporations have bought Republicans, who now chant the corporate mantra that government coddles its citizens with the likes of mine and food safety rules.

Walker’s eagerness to talk to David Koch illustrates this. Koch and his brother Charles own the second largest privately-held company in America. Only the fortunes of Warren Buffett and Bill Gates exceed the Kochs’ $35 billion. They’ve used that money to finance the supposedly-grassroots Tea Party and conservative groups like the Americans for Prosperity Foundation (APF) that have funneled money into anti-reform policies – including attempts to reverse environmental and health care legislation.

It’s a giant circle. Koch got Walker elected. The Koch-backed Tea Party now rallies in Madison against the public employees. The Koch-financed APF bought $320,000 in TV ads against the public workers. Other Koch-financed GOP governors are sending letters of support to Walker. In his few weeks as governor, Walker passed legislation to lower tax rates for and limit damage awards against businesses like the Kochs’. In addition, tucked into the anti-union bill is a provision that would enable Walker to sell the state’s power plants to the Kochs without bids or state agency review.

Corporations are accomplishing their goal of shriveling government to the point of ineffectiveness so “enterprise” is “free” to run rogue. Now with their purchased politicians, corporations are trying to do the same to unions – the only organization other than government that has traditionally effectively defended working Americans.

In the recorded conversation between Walker and a liberal blogger posing as Koch, Walker accepted an offer of a vacation trip from the “billionaire” if he “crushed” the public employee unions and said his effort was to get “our freedoms back.”

That’s exactly right. This is a contest between the excesses of “free” enterprise and the constitutionally-protected freedom of assembly. And getting “our freedoms back” means wresting them back from corporations.

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Leo W. Gerard also is a member of the AFL-CIO Executive Committee and chairs the labor federation’s Public Policy Committee. President Barack Obama recently appointed him to the President’s Advisory Committee on Trade Policy and Negotiations. He serves as co-chairman of the BlueGreen Alliance and on the boards of the Apollo Alliance, Campaign for America’s Future and the Economic Policy Institute.  He is a member of the IMF and ICEM global labor federations and was instrumental in creating Workers Uniting, the first global union.

The Realpolitik Behind the Tax Deal

Robert Creamer

By Robert Creamer
Political organizer, strategist and author

Behind any big historic political bargain there are usually big, bottom-line self interests. The case of the tax deal negotiated by the Democratic White House and Republican Leadership is no exception.

The president woke up the day after the fall election facing a serious political and economic dilemma. Back in 2008 Democrats won voters who reported that their personal economic situation was worse by a margin of 40 percent. In 2010 Democrats lost that same cohort of voters by 29 percent. From the standpoint of swing voters, the election was all about one thing: the voter’s feelings that their own personal economic outlook was bleak.

To win reelection in 2012, the president had to do something to substantially improve economic growth in general and job creation in particular. That translated into the need for more economic stimulus to jump start sustained economic growth.

But the outcome of the election had also made the prospects that the new Congress would pass new economic stimulus remote. The Republicans who would control the House had no interest whatsoever in providing more economic stimulus. That’s not mainly because they have a different economic philosophy. It’s primarily because they have no political interest in near term economic recovery. It’s just fine with them if the economy continues a slow slog, and the jobless rate is 8 percent or 9 percent in November 2012. After all, no president has been reelected in the last century when the unemployment rate was above 7.2 percent. Reagan was reelected in 1984 with a 7.2 percent unemployment rate, but at the time of the election, unemployment appeared to be — and was — in sharp decline.

And the smartest among the Republicans realize that left to itself, the economy will not reignite without additional stimulus. In fact, around the world over the last century — after the five major recessions or depressions caused by the collapse of financial markets — the jobless rates of the economies involved have never returned to pre-crash levels for at least five years. (more…)