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House Republicans Push Through Their Tax Hike On Middle Class Families

Last night, straight down party lines, Republicans voted to give millionaires and billionaires a massive tax cut and to raise taxes on millions of hard working Americans.

“Today’s vote is a missed opportunity to deliver the tax reform we need for middle class families and small businesses,” said Congresswoman Annie Kuster. “I strongly support reform that starts with the goal of providing tax relief for those in the economy who need it most. This bill is little more than a giveaway to big corporate interests and wealthy individuals while creating losers among many middle class families who will see their taxes increase in the coming years.”

“The tax bill that House Republicans passed today seeks to steal from the vast majority of Americans to benefit the very few. This is an attack on our economic security and on the fabric of our nation,” said Congresswoman Carol Shea-Porter. “House Republicans’ tax scam is loaded with provisions to help the wealthiest: it eliminates the estate tax, which will only be paid by an estimated 5,500 super-wealthy Americans this year, and slashes the corporate tax rate claimed by the biggest businesses. Meanwhile, it raises taxes on many middle-class families, and it sets small benefits for working families to expire in five years – while making cuts for corporations permanent. And make no mistake about it: these cuts will take money away from needed national security investments at this dangerous moment in time.”

The Institute on Taxation and Economic Policy, confirmed Shea-Porter’s claim by stating, “12 percent of taxpayers would pay more in 2019 and 13 percent would pay more in 2027.” These increases unfairly hit middle class families.

This tax increase to the middle class comes primarily from the loss of “itemized deductions” that allow taxpayers to deduct things like mortgage interest, state and local taxes, student loan interest, qualifying work related expenses, and medical expenses.

“One reason for the variation across states is that taxpayers who live in places with higher state and local taxes may be more heavily impacted because those taxes would no longer be deductible on federal tax returns,” ITEP added.

“The bill the House approved today hurts older Americans now and in the future,” said Richard Fiesta, Executive Director of the Alliance for Retired Americans. “Eliminating the medical expense deduction means it will be harder for families with high medical expenses, most of whom are seniors, to make ends meet. The House Republican tax bill axes deductions that help working people so it can give more to the wealthiest.”

“The wealthy and corporations do not need these tax breaks. The vast majority of Americans understand that trickle-down economics does not work, and they disapprove of this plan. Retirees and working Americans know who this plan helps and who it hurts. And they will remember this when they vote in 2018,” Fiesta concluded.

Shea-Porter added, “This bill eliminates the deduction for high medical expenses claimed by over 40,000 Granite Staters and the student loan interest deduction that helps people saddled with student debt. It even takes away the modest $250 above-the-line deduction I fought to make permanent for almost 20,000 New Hampshire teachers – while keeping the golf course tax loophole. The nonpartisan Congressional Budget Office says the plan would explode the deficit by $1.7 trillion, triggering automatic cuts to Medicare. We all know our tax code desperately needs reform – but those reforms need to help the working people who are already losing out under our tax code, not give even more to the wealthiest 1% and the biggest corporations.”

The AFL-CIO says the bill is a “job killer” and rewards corporations for offshoring American jobs. Under the House proposal “U.S. tax rate on offshore profits from 35% to 0%,” creating a subsidy for outsourcing jobs that would cost taxpayers “$208 billion over 10 years.”

In their letter of opposition to the proposed tax plan, William Samuel, Director

Government Affairs Department at the AFL-CIO, called the proposal the “poster child for the failed ‘trickle-down’ economic theory that has never worked and has repeatedly stuck working people with the tab for tax giveaways for millionaires, big corporations, and Wall Street.”

Republicans are trying to pull the wool over our eyes in this massive tax scam. The plan would slash the corporate tax rate from 35% to 20% and repeals the Alternative Minimum Tax on “pass-through” businesses. A couple of examples of a “pass through” business are “small businesses” like hedge funds, law firms, realty investment companies, and some large corporations like Bechtel construction (the 9th largest single owned business in the US). Without the Alternative Minimum Tax these “pass through” businesses would not be required to pay any federal taxes at all.

NBC News is reporting “Trump and his heirs potentially could save more than $1 billion overall under the GOP tax proposal that the House of Representatives passed Thursday,” though he continues to say that the plan will not benefit him.

The progressive coalition, Not One Penny, supports tax reforms but not one penny in reductions to “millionaires, billionaires, and wealthy corporations.”

“The tax bill that passed the House today is an affront to the people that our leaders in Washington claim to represent. The GOP voted to cut taxes for millionaires, billionaires, and wealthy corporations, inevitably forcing cuts to programs working families depend on like Medicaid, Medicare, public education, and Social Security. While passing the largest middle-class tax hike in a generation, the GOP said ‘no thanks’ to helping working families this Thanksgiving,” said Not One Penny spokesman Tim Hogan. “The tax proposal that passed today is wildly unpopular with a majority of Americans, and voters won’t forget those who enabled this hypocrisy. Republicans’ vote today is one that will haunt them in the weeks and months ahead.”

Over the last month, in mobilizing against Republicans’ disastrous tax plan, the Not One Penny coalition has coordinated more than a hundred events and actions across the country to hold congressional Republicans accountable for pushing tax cuts for the wealthy and well-connected at the expense of working families.

Advocates and activists continue to mobilize in opposition to Republicans’ tax scam. From hundreds gathering together at rallies alongside Leaders Pelosi and Schumer, Members of Congress, and progressive allies on November 1 and November 15, to local grassroots activity across the country, Americans will continue to resist this toxic tax plan.

“Progressive groups have come together to prevent Republicans from rigging the system even further for the wealthy and well-connected, and we will not quit until this taxpayer-funded giveaway to millionaires, billionaires, and wealthy corporations is stopped dead in its tracks. After months of activity, we continue to mobilize thousands of activists to stop Republicans attempts to raise taxes on middle-class families. Congressional Republicans should take note: we will hold you accountable for every vote you take that threatens the health and financial security of your constituents,” Hogan added.

“This bill has always been about giving massive tax cuts to the wealthy and corporations, paid for by the rest of us — and our groups have been fired up about that from the beginning,” said Ezra Levin, Co-Executive Director of Indivisible, a member of the Not One Penny coalition. “Even before this tax fight became a health care fight, we had over 100 events in every corner of this country to oppose the Trump Tax Scam. Now that Republicans have explicitly included ACA repeal, our groups are even more energized than before.”

The bill now moves to the Senate where it is sure to face stiff opposition, especially after the news that Senator McConnell added the repeal of the Affordable Care Act to their tax plan.

Should-be Republican supporters are beginning to defect from the GOP tax plan because of the disastrous impact it would have on the American economy and the harm it would have on millions of middle-class families. Opposition to the plan includes:

  • Wisconsin Senator Ron Johnson, who said the plan benefits corporations over small businesses, and he finds the process being used to rush the bill “offensive.”
  • Arizona Senator Jeff Flake said, “I remain concerned over how the current tax reform proposals will grow the already staggering national debt by opting for short-term fixes while ignoring long-term problems for taxpayers and the economy.”
  • MaineSenator Susan Collins said, “I don’t think it’s a good idea from either a political or policy perspective.” Tennessee Senator Bob Corker said, “If I believe it’s going to add to the deficit, I’m not going to vote for it.”
  • Oklahoma Senator James Lankfordsaid, “It’s one thing to be able to cut taxes. It’s another thing to say how are we going to deal with our debt and deficit.”
  • Texas Senator Ted Cruzsaid, “Right now, they don’t have my vote.”

Make sure to let your Senators know how you feel about this new proposal. The Senate Democrats are unanimous against the bill but in order to ensure this bill never reaches the President’s desk we need to get at least three Republicans to vote it down.

“We need bipartisan tax reform that simplifies our tax code to help small businesses and delivers meaningful relief to middle-class families. Sadly, the tax bill approved last night is a partisan effort that doesn’t meet any of those goals,” said Senator Shaheen. “This bill would add over one and a half trillion dollars to our national debt and hurt Granite State students, seniors and working families, all to provide tax cuts to the very wealthy and large corporations. I stand ready to work with Republicans and Democrats to reform our tax code, but we need a bill that’s fiscally responsible, helps grow our economy and prioritizes the middle class.”

100-Plus Organizations Urge Congress to Reject Giant Tax Loophole for Offshoring and Tax Avoidance

Republican Proposal for a “Territorial Tax System” Would Encourage Corporations to Send Jobs Offshore and Avoid Paying Taxes

(Washington, D.C.) Today, more than 100 organizations sent a letter urging members of Congress to reject a proposal that would allow U.S. multinational corporations to pay little to nothing on their offshore profits.

President Trump and Republican leaders in Congress included this proposal for a “territorial tax system” in the tax framework they unveiled last week.

The letter says, “This is an incredibly bad idea. Ending taxation of offshore profits would give multinational corporations an incentive to send jobs offshore, thereby lowering U.S. wages. It would also be a giant loophole for corporations to use accounting gimmicks to move their profits to tax havens, resulting in the loss of billions of dollars in tax revenue for the United States.”

“I’ve got to hand it to them. They’ve really outdone themselves this time. It must take a lot of effort to come up with an idea this bad,” said AFL-CIO President Richard Trumka. “It takes a lot of nerve to propose tax incentives for offshoring and then try to fool people into thinking you’re doing the exact opposite. Up is down, black is white.  What a con job.”

“Already, the U.S. encourages tax avoidance by allowing U.S. corporations to indefinitely defer taxes on profits that they book offshore. If the United States moves to a territorial tax system, multinational companies would have even greater incentive to engage in accounting tricks and move their profits to countries with zero or single-digit corporate tax rates. Corporate bosses would win while the rest of us would be left to pick up the tab,” said Alan Essig, executive director, Institute on Taxation and Economic Policy

“This scheme is a massive tax cut for wealthy corporations, that puts Main Street businesses and domestic companies at a terrible disadvantage,” said Frank Clemente, executive director, Americans for Tax Fairness. “We must continue to fully tax the profits U.S. corporations make offshore. If they pay less U.S. taxes on offshore profits than they pay now, or if they pay no taxes, they will have even more incentive to send jobs offshore and shift profits to tax havens to avoid paying their fair share.”

“It is, quite simply, the largest offshore loophole in the history of our tax code,” said Gary Kalman, Executive Director of the Financial Accountability and Corporate Transparency (FACT) Coalition. “While hard to fathom, the proposal creates new and greater incentives to book profits offshore. When you get past the rhetoric, they propose a near zero percent tax on all profits moved offshore. Other countries have tried this, failed, and are now struggling desperately to fix it. How do you look at their failure and say ‘let’s do the same?’”

For more details on why a “territorial” tax system rigs the rules of the economy in favor of multinational corporations and against working people, see this fact sheet from the Institute on Taxation and Economic Policy (ITEP).

Income Inequality Grows As CEO Pay Jumps 6 Percent To 347 The Average Worker

Image courtesy of the AFL-CIO

A new report and searchable database from the AFL-CIO’s Executive Pay Watch highlights the lavish compensation executives receive while workers wage remain stagnant.

Income inequality has become one of the largest economic issues facing America.  As workers wages remain stagnant, corporations continue to rake in massive profits and pay their executives lavish salaries.

According to the new AFL-CIO Executive PayWatch, the average CEO of an S&P 500 company made $13.1 million per year in 2016 – 347 times more money than the average rank-and-file worker. CEO pay for major U.S. companies has risen nearly 6 percent, as income inequality and outsourcing of good-paying American jobs have increased.

“This year’s report provides further proof that the greed of corporate CEOs is driving America’s income inequality crisis,” said AFL-CIO President Richard Trumka. “Big corporations continually find ways to rig the economy in their favor and line their CEOs’ pockets at the expense of the workers who make their businesses run. Too often, corporations see workers as costs to be cut, rather than assets to be invested in. It’s shameful that CEOs can make tens of millions of dollars and still destroy the livelihoods of the hard-working people who make their companies profitable.”

The Executive PayWatch website showed that in 2016, the average production and nonsupervisory worker earned approximately $37,600 per year. When adjusted for inflation, the average wage has remained stagnant for 50 years.

Take for example, Raymond Barrette, CEO of White Mountain Insurance Group LTD of Hanover, NH.  Barrette raked in $8.1 million in salary and stock options.  That is 270 times the average rank and file worker.

Another example comes from Patrick T. Ryan, CEP of Press Ganey Holdings in Wakefield, Massachusetts. He collected a whopping $28.9 million in compensation, 769 times the average worker.

The report allows viewers to search their comprehensive database of CEO pay by industry or state.

Screenshot from Executive Pay Watch

The PayWatch site also highlights U.S. corporations that don’t pay taxes on their offshore profits. By “permanently reinvesting” these profits overseas, they can forever defer paying federal income taxes and reinvesting back into the community.

According to the report, Massachusetts based General Electric is holding $82 billion in “Unrepatriated Profits” overseas in tax havens.  That is only one-third of the amount of money Apple is shielding overseas ($230 billion).

The report also highlights the growing trend of corporations offshoring good American jobs at the expense of hard working people.

“Avoiding corporate income taxes is one way CEOs boost their companies’ profits and thereby increase their own pay. This corporate tax avoidance reduces the amount of money that is available for public goods like roads and schools. As a result, our economy increasingly has become out of balance,” wrote the AFL-CIO in their report.

Image courtesy of the AFL-CIO

Mondelēz International, highlighted in this year’s PayWatch, represents one of the most egregious examples of CEO-to-worker pay inequality. The company, which makes Nabisco products, including Oreos, Chips Ahoy and Ritz Crackers, is leading the race to the bottom. Last year, it closed the Oreo cookie line at the iconic Nabisco factory in Chicago, sending 600 family-sustaining jobs to Mexico, where workers face poor labor and safety standards. Mondelēz CEO Irene Rosenfeld made more than $16.7 million in 2016 – about $8,000 per hour.

“Greedy CEOs are continuing to get rich off the backs of working people,” said Michael Smith, who was among hundreds of Nabisco workers from the South Side of Chicago laid off in March of 2016. “I loved working at Nabisco, and I took pride in the work I did to make a quality product. It’s not as if the company isn’t profitable. The Oreo alone brings in $2 billion in annual revenue, and the CEO makes more in a day than most of us made in a year. I just don’t understand the disrespectful attitude toward working people.”

While companies are continuing to put profits over people, working people are fighting back. The AFL-CIO has endorsed the Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union (BCTGM) boycott of Nabisco products made in Mexico.

These corporations are just examples of the insatiable greed that has taken over Corporate America.  The never ending race to the bottom continues to punish worker, shipping their jobs overseas.  To begin to address the growing income inequality in America, we must first address the outrageous pay ratios between CEO’s and rank and file workers.

Verizon Spends Billions To Buy AOL & Yahoo Then Cuts Thousands Of US Jobs

2015-07-25_Mass_Rally_Stand_Up_To_Verizon

Verizon’s Greedy Corporate Businesss Model Is Exactly
What Is Wrong With Our Economy

Continuing our “What’s wrong with the economy” series using Verizon as a case study…

You can read about Verizon’s decision to lay off 4,800 American workers in yesterday’s NH Labor News.  (You might have missed it in the mainstream press, under all the election headlines.)  The cuts include seven call centers as well as some retail stores.

How is Verizon going to serve its customers, once all those call centers are closed?  The company “is offshoring customer service calls to numerous call centers in the Philippines, where workers are paid just $1.78 an hour and forced to work overtime without compensation.”  (Wow.  Not exactly a living wage.)

Guess what else was in the news yesterday.  Verizon’s agreement to buy Yahoo for $4.83 billion.  So…right now, Verizon is laying off thousands of American workers while it’s spending billions to acquire another company.  Does that make any sense to you?

And I’m feeling déjà vu.

Remember that Verizon workers had to strike, earlier this year, after working without a contract for eight months while the company demanded employee concessions?  That was at the same time Verizon was buying AOL for $4.4 billion.  Does that make any sense?  Why would a company that can afford to buy another company need draconian cuts to employee pensions, health care, and benefits for workers injured on the job?

And when Verizon “buys” another company, what, exactly, does it purchase?  AOL and Yahoo sell ads on the internet, they don’t have much in the way of bricks-and-mortar assets.  So, Verizon is spending billions of dollars to… buy another company’s stock.  After spending $5 billion to buy back its own stock.

Doing the math here?  Looks to me like… between 2015 and 2016, Verizon will spend a total of $14 billion on shares of corporate stock.  At the same time it is closing US call centers, laying off American workers and demanding concessions from its unions.  Money coming out of workers’ pockets, going into the pockets of stockholders.

While you’re getting mad, remember how Congress has structured our tax system.  Investment income is taxed at about half the rate of wage income; and it’s completely exempt from Social Security and Medicare taxes.  So the next time you hear a politician talking about how those systems are “going bankrupt”… ask them what would happen if they taxed investment income the same way they tax our wages.  I’m guessing it would fully fund Social Security and Medicare, as well pay down a good chunk of our federal debt.  But back to Verizon.

This is what’s wrong with our economy: CEOs and directors would rather purchase stock than pay workers. And so workers’ pay has been stagnant since the 1970s… even as our productivity has kept rising.

Meanwhile, the stockmarket is in the stratosphere.  And Verizon’s stock price keeps rising.

VZ stock chart

And Verizon’s corporate officers are doing just fine. (Read the rest of our Verizon series, starting here.)

And the Federal Trade Commission has already signed off on Verizon’s offer to purchase Yahoo … so it looks like Yahoo stockholders will be getting all those billions of dollars, while Verizon’s American workers face unemployment and its Philippines employees work unpaid overtime.

Because the folks who make corporate decisions would rather buy stock than pay workers.


Things weren’t always this way.  Once upon a time, it was illegal for corporations to repurchase their own stock.  But in 1982, the SEC created a regulatory “safe harbor” — and since that time, stock buybacks have skyrocketed.  Last year, corporations spent more than $650 million buying back their own stock.  All of that is money that could have been used for job creation or wage increases or facility expansion.  Sadly, some of that money came from the pockets of workers who were laid off, had their wages cut, or were forced to accept benefit cuts. (Read more about what Verizon “bought” with their 2015 $5 billion buyback program here.)

Once upon a time, corporate mergers and acquisitions were more closely regulated; but once the regulations were loosened again, mergers have risen to an all-time high.  Last year, corporations spent $5 Trillion buying up other corporations.  Again, that’s money which is not being used for job creation, wage increases or new plants and equipment.  And, again, some of that money came from the pockets of employees declared “redundant” when their company was acquired.  (Read more about AOL layoffs when Verizon acquired the company here.  Read more about Yahoo layoffs expected when Verizon acquires that company here.)

Source: Third Way

Source: Third Way


Do the math yourself. It adds up to more than $5.5 Trillion that corporations spent — just last year — buying stock rather than creating jobs.

And some folks wonder why our economy is in such a mess.

Trump’s NAFTA Baloney

trump-lies-720By BERRY CRAIG
AFT Local 1360

Either Donald Trump is flat fibbing about the North American Free Trade Agreement or he’s clueless about the deal unions say has cost thousands of American jobs.

The presumptive Republican presidential nominee wants voters—especially working stiffs–to believe he’ll ditch the trade deal when he’s president.

Trump is short on specifics about how he’d put the kibosh on NAFTA. So let’s get specific.

A President Trump couldn’t repeal NAFTA by himself. Only Congress could. So is Trump just trying to dupe John and Jane Q Citizen into voting for him, or does he really not know how government works?

Either way, the odds of getting rid of NAFTA—or successfully renegotiating the trade pact—would be better under Hillary Clinton, Trump’s almost certain Democratic foe–or Bernie Sanders should he somehow edge Clinton at the finish line.

First some background: Republican President George H.W. Bush finished completing the deal with Canada and Mexico about three months before the 1992 presidential election. Bush was seeking a second term, but he lost to Democrat Bill Clinton.

The spouse of this year’s all-but-certain Democratic presidential nominee, Clinton got behind NAFTA. In 1993, Congress passed the trade deal, and he signed it.

The Democrats enjoyed majorities in the House and Senate, but the Republicans got the NAFTA bill passed. Most Democrats voted against it. The House endorsed NAFTA 234-200; the Senate 61-38.

In the House, 156 Democrats voted “nay” and 102 voted “yea.” Republicans favored the NAFTA bill 132-43. (The naysayers included an independent Vermont congressman named Sanders.)

The Senate split similarly: 28 Democrats opposed the legislation, and 27 were for it. Republicans favored NAFTA 34-10.

Okay, back to the present, where the GOP controls both houses of Congress. Most House and Senate Republicans still favor trade pacts like NAFTA, including the Trans-Pacific Partnership, which unions also vehemently reject. 

President Barack Obama, a Democrat, favors the TPP, which he says will really create more jobs. Most Democratic lawmakers side with unions and against the president.

Here’s the bottom line: If Trump is elected president, the GOP will almost certainly retain its majorities in both chambers, if not boost them. So the chance of NAFTA’s demise with a Trump presidency is virtually zero.

On the other hand, if Clinton or Sanders wins, the Democrats are apt to increase their House and Senate numbers. If the she or he wins big, the Democrats might take back the Senate and the House—or at least significantly whittle down the GOP’s margin the lower chamber.

The TPP would be toast, and NAFTA would be in big trouble.

Admittedly, Hillary Clinton backed NAFTA when the Big Dog was president. She has since changed her mind.

“Hillary has said for almost a decade that we need to renegotiate NAFTA, and she still believes that today,” maintains a Clinton campaign online Factsheet. “And she would review all of our trade agreements with the same scrutiny.”

The Factsheet also declares that Clinton would “say ‘no’ to new trade agreements that don’t meet her high bar – including the Trans-Pacific Partnership. Hillary will hit pause and say ‘no’ to new trade agreements unless they create American jobs, raise wages, and improve our national security. After looking at the final terms of the Trans-Pacific Partnership agreement, including what it contains on currency manipulation and its weak rules of origin standard for what counts as a car that can get treaty benefits, she opposed the agreement because it did not meet her test. And she will hold every future trade agreement to the same high standard.”

Trump, too has changed his tune. Before he ran for president, he was fine with outsourcing. While he never tires of trashing U.S. companies that ship jobs and production abroad, he’s a big-time outsourcer himself.

Trump flip-flops almost every time he opens his mouth, but he’s shown uncharacteristic consistency on unions. He’s anti-union.

He says he prefers “right to work” states to non-RTW states. Both Clinton and Sanders are staunchly anti-RTW.

While Trump insists union members love him, he’s determined to keep his hotel workers in Las Vegas from having a union. Clinton and Sanders support workers’ right to unionize.

AFL-CIO President Richard Trumka called Trump “a bigot. From his anti-American proposal to ban Muslims to his horrendous comments about women and immigrants, Trump is running on hate. It seems the only group he won’t criticize is the KKK.”

Added Trumka, a former president of the United Mine Workers of America: “Those statements and positions are bad enough. But what’s getting less attention is how Donald Trump really feels about working people…

“First, Trump loves right to work. He said it is “better for the people” and his position is ‘100 percent.’ Meanwhile, he is fighting tooth and nail against workers at his hotel in Las Vegas.

“Second, Trump was a major financial backer of Scott Walker and says he admired the way Walker took on public unions in Wisconsin.

“Finally, and most disturbingly, Trump says our wages are already too high. Can you believe that? Trump is advocating the polar opposite of our raising wages agenda.

You see, Trump says he’s with the American working class, but when you look close, it’s just hot air.”

Trump’s Conflicting Statements About Business Taxes Leading To Offshoring And Raising The Minimum Wage

Donald Trump (Image by Gage Skidmore FLIKR CC)

Donald Trump (Image by Gage Skidmore FLIKR CC)

In typical Trump fashion, Donald Trump says one thing but really means another.

Over the weekend Donald Trump went on Meet The Press where he talked about his tax “proposal” and the minimum wage.  Trump’s tax proposal would of course save him millions in his taxes, even though he said wealthy “people like me” could handle paying more in taxes.

He also stated businesses are leaving the United States because we have the highest business tax burden.  Businesses are not leaving because of high taxes, they are leaving because their biggest expense, labor itself, can be purchased in other countries are drastically reduced prices.  Corporations move overseas to avoid paying minimum wage standards set by state and the federal governments.

Case in point: Carrier is closing their factory in Indianapolis, Indiana and moving to Mexico.  Workers and elected leaders revolted over the idea that Carrier would toss aside 1,400 workers in this “business decision.” Workers tried to negotiate with Carrier to keep their jobs.  Carrier’s response: “they could possibly stay if the workers agreed to cut their pay from about $23 an hour to $5.85 an hour.”

Yes, Carrier is willing to stay if workers are willing to work below the federal minimum wage and give up nearly $17 an hour in wages.  Even with our “high business tax rate” corporations can still make huge profits by hiring workers in other countries and then exporting their goods back to the United States.

This is a product of multiple bad trade agreements that exploit foreign workers and allow corporations to skirt U.S. laws and taxes.  A fair trade agreement would make it more appealing for corporations to manufacture and distribute their products from inside the U.S. giving the advantage to American workers. Sadly that is not the current case.

In the interview on Meet The Press we can see that Trump recently changed his view on the Minimum Wage.  Before he was opposed to raising it at all even implying that we should eliminate the minimum wage. Now he believes we should raise the Minimum Wage but that it should be done by the states, not the federal government.

This is the political equivalent of punting.  By saying the states should set the Minimum Wage, Trump is trying to absolve himself of any responsibility for raising the Minimum Wage.  The old “it’s a state’s rights issue” defense.

The fact is that states’ already have the ability to raise their own state Minimum Wage but have failed to take any action to raise the floor for millions of low-wage workers.  They would rather see hard working Americans living in poverty and relying on government assistance that take action to raise the Minimum Wage.

We need the next Congress and the next President to take strong swift action to raise the minimum wage because the state’s are completely unwilling to do what is right. You cannot be the leader of the nation if you are not willing to lead on issues like Minimum Wage.

Watch Donald Trump try to explain away his contradictions on taxes and the minimum wage.

What You Should Know About That Completed TPP “Trade” Deal

global deal free tradeSpecial Guest Post from Dave Johnson of Campaign For America’s Future.  

Countries negotiating the Trans-Pacific Partnership (TPP) say they have reached a deal. So here it comes.

Monday morning it was announced that a “Trans-Pacific Partnership Trade Deal Is Reached,” presented as much as a foreign policy success as a “trade” deal.

“The United States, Japan and 10 other Pacific basin nations on Monday agreed after years of negotiations to the largest regional trade accord in history, an economic pact envisioned as a bulwark against China’s power and a standard-setter for global commerce, worker rights and environmental protection.

… The trade initiative, dating to the start of his administration, is a centerpiece of Mr. Obama’s economic program to expand exports. It also stands as a capstone for his foreign policy “pivot” toward closer relations with fast-growing eastern Asia, after years of American preoccupation with the Middle East and North Africa.

The effect the deal will have on actual “trade” is unclear, since the U.S. already has trade agreements with many of the participating countries. Also much of the deal appears to be about things people would not usually consider “trade”, like investor rights and limits on the ability of countries to regulate.

Though the deal remains secret, here is some of what is known about the agreement deal.

● Currency manipulation is not addressed in TPP, even though Congress’ “fast track” legislation said it must be. To get around this, a “side agreement” supposedly sets up a “forum” on currency. Past side agreements have proven unenforceable. For this reason Ford Motor Company has already publicly announced opposition to TPP.

● A “tobacco carve-out” is in the deal, in some form. This was added because the agreement contains investor-state dispute settlement (ISDS) provisions that will allow corporations to sue governments that use laws or regulations to try to restrict what the companies do. These provisions restrict the ability of governments to protect their citizens so thoroughly that tobacco companies have used ISDS provisions in similar agreements to sue governments that try to help smokers quit or prevent children from starting smoking. TPP proponents felt that this carve-out will help TPP to pass, while the ability to limit other laws and regulations remains.

● President Obama has said TPP includes the “strongest labor provisions of any free trade agreement in history.” Previous “trade” agreements do not even stop labor organizers from being murdered, so even if TPP has “stronger” labor provisions, that is an extremely low bar.

● TPP reduces or eliminates many tariffs, further encouraging companies to move factories out of the U.S. to low-wage countries like Vietnam. An example of the effect TPP will have on U.S. manufacturing is Nike vs. New Balance. Nike already outsources its manufacturing to take advantage of low wages, while New Balance is trying to continue to manufacture in the U.S. When tariffs on imported shoes are eliminated Nike will gain an even greater advantage over New Balance. New Balance has said that the tariff reductions in TPP will force it to stop manufacturing inside the US.

● The reduction and elimination of tariffs reduces revenues for the governments involved.

What Next?

Here is a brief rundown on what to expect as TPP begins to make its way toward a Congressional vote:

● The TPP is still secret and according to the terms in this year’s fast-track legislation it will remain secret for 30 days after the president formally notifies Congress that he will sign it. That could be a while still, as the agreement’s details need to be “ironed out.” After that 30-day wait the full text has to be public for 60 days before Congress can vote. The full timeline is yet to unfold and will be reported here as it does.

● Expect a massive and massively funded corporate PR push. The biggest corporations very much want TPP. It massively benefits the interests of giant corporations and the “investor” class, even as it incentivizes moving jobs and production out of the U.S.

● While only a small portion of TPP is about what people would normally consider to be “trade,” TPP will be heavily pushed as a “trade” deal. Many people believe that “expanding trade” increases jobs. Note that closing a U.S. factory and importing the same goods “expands trade” because those goods cross a border.

Also see the American Prospect, “What’s Next for the TPP: Clyde Prestowitz in Conversation with David Dayen.”

Questions To Ask About TPP

When the still-secret TPP becomes public, these are some of the questions the public will want answered:

● What do regular, non-wealthy people in the U.S. get from TPP? Will it increase American wages? Will it have provisions that force wage increases in countries that currently pay very little, thereby helping those workers (and helping them buy American-made products, too) and reducing downward pressure on American wages? Or will there be NAFTA-style provisions encouraging outsourcing to low-wage countries like Vietnam, creating further downward pressure on wages and increasing inequality?

● What do people in the U.S. lose? For example, the Los Angeles Times explains, “U.S. industries such as auto, textiles and dairy, however, could experience some losses as they are likely to face greater competitive pressures from Vietnam, Japan and New Zealand.”

● Does the TPP contain badly needed provisions to require member countries to jointly fight global climate change?

● Will provisions on state-owned enterprises force further privatization of publicly owned and publicly operated infrastructure like the U.S. Postal Service, highways, water systems and other public utilities – even services like municipal parking operations?

● Will TPP enable the U.S. to continue using tax dollars to help American companies, like our “Buy America” procurement policies?

● Will TPP expand imports from countries where food is often found to contain banned toxic chemicals? If so, will TPP require increases in food and product safety standards and inspections?

● Does the TPP increase oversight of financial companies like banks, insurance companies and hedge funds?

TPP Pits Obama, Republicans, Wall Street And Big Corporations Against Democrats, Labor, Progressives

While still secret, the agreement is likely to have many of the same proponents and opponents as the fast-track trade promotion authority battle had. As the Los Angeles Times words ittoday, it “pits the White House, many Republicans and supporters of free trade against organized labor, civic groups and many lawmakers from Obama’s own party, who fear the deal will hurt workers and the environment.”

In a Monday morning call Representative Rosa DeLauro (D-Conn.) said the TPP text Congress is allowed to see has not been updated for some time, so even they don’t know what is in it. Saying Congress has had to rely on leaks and hasn’t seen the supposed “side agreements” at all, DeLauro asked the administration to “have the courage” to show Congress and the public the text now.

DeLauro complained that leaked drafts show U.S. negotiators negotiating hard for pharmaceutical companies, but not for the interests of American workers. “The administration has put big corporations first, workers last.”

She said rules-of-origin requirements allow less than half to be made in U.S. and TPP countries, the rest can come from countries like China. “None of us can think of a clearer mechanism for taking American jobs”

Rep. Paul Tonko (D-N.Y.) said, “we’ve seen the nightmare NAFTA brought to our manufacturing sector and hard-working American families; this deal is NAFTA on steroids” because this is much broader. Multinational corporations will benefit from increased drug prices and access to cheaper labor.

Rep. Dan “Rock Star” Kildee (D-Mich.) said “what’s not there is there is a lack of any enforceable currency provision. This ties American manufacturer’s hands behind their back as they try to compete. Worse, new rules of origin allow the Chinese to provide more than half the content of a car and it will be treated as domestic. Combined with no currency rules, this will have a devastating effect.”

He added, “I would ask members who voted for fast track to look at the details. When they see specific details and impact on their businesses I think they will vote no.”

Rep. Debbie Dingell (D-Mich.) said, “I’m a car girl … we are only operating on early reports but already Ford and Chrysler are opposed, joining the UAW, and those companies have strongly supported previous deals.”

Rep. Brad Sherman (D-Calif.) called TPP a “huge win for China because of currency, rules of origin; we get zero access to the Chinese market.”

On the ability to ensure even these ow rules of origin, Sherman said, “What about de facto rules? How does anyone police it? Are Chinese going to report companies that are mislabeling?”

Petitions

The Teamsters are asking people to sign this petition:” Tell Congress: Show Me the Text on Reported TPP Deal.”

Democratic presidential candidate Bernie Sanders has released this petition and is asking people for signatures: “Sign my petition to join our fight against the disastrous Trans Pacific Partnership trade deal. We cannot afford to let this trade deal hurt consumers and cost America jobs.”

The U.S. Trade Representative office has released this summary

Baltimore Steelworker Invites Pres. Obama to Witness Results of Past Failed Trade Policies

AFL-CIO, USW Launches New Trade Ad

(Washington, DC) – A new ad from the AFL-CIO and USW highlights how the loss of manufacturing jobs due to bad trade policy over the past 30 years has hit African-American populations especially hard in cities like Baltimore. The video makes clear that the battle over Fast Track authority for the Trans-Pacific Partnership (TPP) is not about politics: it’s about people like former steelworker Mike Lewis.

“One can’t help but be saddened. This was once called the ‘Beast of the East.’ We made the steel that went into the Golden Gate Bridge…” Lewis says in a video message to President Obama, while standing on the decimated site where he proudly worked for 32 years as a full-time crane operator. The dream of economic opportunities disappeared in August of 2012 when Mike and 2,100 of his steelworker brothers and sisters who permanently lost their jobs at the steel plant in Sparrows Point in Baltimore.

The union hall where workers came together for so many years in good times  has been a food bank that many rely on to feed their families. The closing of the steel plant and other manufacturing plants started the economic downfall that many in the African-American community have not recovered from.

“We want the American people to know that bad trade policies have terrible consequences for workers. This battle isn’t about a political party, it’s about the thousands of people just like Mike Lewis who simply want a fair chance to earn a good living and put food on their table,” said AFL-CIO President Richard Trumka.

Mike has a simple message for the President: “President Obama, we welcome you to come to the site of what failed trade policies have brought, the devastation of this facility. Please come, please take a look at the devastation of three decades of failed trade policies.”

The ad will begin as an initial web buy with key targeted audiences and escalate based on the timing of the Fast Track trade fight.

The AFL-CIO Ramps Up Pressure Ahead Of Fast Track Vote

Fight for Working Families Hits Television, Radio, Digital

(Washington, DC)  – The AFL-CIO is ramping up efforts to stop Fast Track with a targeted advertising blitz against undecided members of Congress. The ads reflect the sentiment of working families who are vehemently opposed to giving Fast Track authority to another bad trade deal that costs American jobs.

The Coalition to Stop Fast Track, which the AFL-CIO is a part of, is up with a TV ad in DC and across California, Colorado, Connecticut, Delaware, Florida, Louisiana, Massachusetts, Nebraska, North Carolina, Texas and Washington. The ad focuses on how fast track will stifle America’s ingenuity and cost jobs by stacking the deck in favor of multinational corporations, driving down wages and undercutting our nation’s competitive edge.

 

The AFL-CIO is also running a TV ad in Sacramento criticizing Rep. Ami Bera for his support of fast track and posted a classified ad in the Sacramento Bee, on Career Builder and on Sacramento Craigslist, looking for a Congressman in CA-7 with a backbone.

This evening the New York State AFL-CIO will rally to hold Congresswoman Rice accountable for her fast track flip flop.

On the digital front, the AFL-CIO purchased a digital ad buy in The New York TimesWashington PostPolitico and The Hill. The message: Fast Track Kills Jobs, Drives Down Wages, & Weakens Competition.  The ads run through June 14th.

“The urgency of these actions highlights the commitment working families have to defeating Fast Track. Their actions clearly show that they will not stand for another trade deal riddled with unfulfilled promises,” said AFL-CIO Strategic Advisor and Director of Communications Eric Hauser.

Since March, union members and our allies have organized more than 650 events against fast track and thousands of workers have traveled to D.C. to rally and lobby Congress. Unions have made 2 million phone calls to union members warning against fast track, generated more than 161,000 phone calls and nearly 18,000 handwritten letters to Members of Congress and gathered more than 40,000 petition signatures.Digital advertisements targeting dozens of Members of Congress have made more than 25 million impressions.

Leo W Gerard: Trade Abuse

America is in an abusive relationship with trade-obsessed politicians and corporations.

Despite their long history of battering the U.S. middle class with bad trade deal after bad trade deal, these lawmakers and CEOs contend workers should believe that their new proposal, the Trans-Pacific Partnership (TPP), will be different. President Obama and the CEO of Nike, a company that doesn’t manufacture one shoe in the United States, got together in Oregon on Friday to urge Americans to fall once again for a trade deal.

The trade fanatics say everything will be different under the TPP – even though it is based on deals like the North American Free Trade Agreement (NAFTA) that lured American factories across the border, destroyed good-paying jobs and devastated communities. They plead: “Just come back for one more deal and see how great it will be this time!” And, like all batterers, they say: “Sorry about the terrible past; trust me about the future.”

This is trade abuse.

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At the Nike world headquarters in Beaverton, Ore., the chief executive officer of Air Jordans told the chief executive passenger of Air Force One that Americans should believe in the TPP because it’ll be like Santa Claus stuffing jobs down chimneys across America.

CEO Mark Parker promised that the TPP would miraculously prompt Nike, the brand that is the icon for shipping production overseas, to create 10,000 U.S. manufacturing and engineering jobs – over a decade, that is.  Not only that, Parker pronounced, the TPP will generate thousands of construction jobs and as many as 40,000 indirect positions with suppliers and service companies – again, over a decade.

Now those are some great-sounding promises! Nike employs 26,000 American workers now, a few of whom make soles in Oregon and Missouri. But presto, Parker says, the TPP will increase that number by nearly 40 percent!

The thing is, Nike could easily create 10,000 manufacturing and engineering jobs in the United States right now. No TPP required. It employs 1 million overseas, the vast majority in low-wage, high-worker-abuse countries like Vietnam, China and Indonesia. To bring 1 percent of those jobs – 10,000 – to the United States doesn’t seem like such a Herculean, TPP-requiring task, especially considering Nike’s massive profit margin.

The average cost to make a pair of Nike shoes is $30. The American sneaker consumer, who may pay $130 to swoosh, is certainly not getting the benefit of low prices from Nike’s cheap overseas production.

Instead of manufacturing in America, Nike chooses to “just do it” in countries where it knows workers are abused. In the 1990s, the media slammed the corporation for sweatshop conditions in its foreign factories. Like a typical abuser, Nike promised to reform its ways. It said in a news release last week, “Our past lessons have fundamentally changed the way we do business.”

Well, not really. The company admitted in 2011 that two Indonesian factories making its shoes subjected workers to “serious and egregious” physical and verbal abuse. Nike told the San Francisco Chronicle then that there was “little it could do to stop” the cruelty.

And it accomplished exactly that – little. Just last month, a three-part series in the Modesto Bee described sickening conditions in Indonesian factories producing Nike shoes: Workers paid $212 a month for six-day, 55-hour work weeks. Workers denied the country’s minimum wage and overtime pay. Workers paid so little they couldn’t afford to care for their children. Workers fired for trying to improve conditions.

Last week, the world’s largest athletic gear maker said, “Nike fully supports the inclusion of strong labor provisions (in the TPP) because we believe that will drive higher industry standards and create economic growth that benefits everyone.”

Promises, promises. Why doesn’t Nike simply insist on higher standards at its factories? What exactly is there in a trade deal with 11 Pacific Rim nations that is essential to Nike establishing higher standards and stopping the abuse of workers in factories making its shoes?

Oh, yeah, the American middle class, which has suffered most from past trade deals, is not allowed to know that.  The TPP is secret. Well, except to the privileged corporate CEOs who helped write the thing.

In pushing for “Fast Track” authority to shove the deal through a Congress that has abdicated its Constitutional responsibility to oversee foreign trade, President Obama admitted “past deals did not always live up to the hype.”

That’s not quite right. It’s actually way worse than that. Past deals killed U.S. factories and jobs. Since NAFTA, they’ve cost Americans 57,000 factories and 5 million good, family-supporting jobs.

Just three years ago, trade fanatics promised that the Korean deal, called KORUS, would definitely provide more exports and more jobs. Instead, U.S. goods exports to Korea dropped 6 percent, while imports from Korea surged 19 percent. So the U.S. goods trade deficit with Korea swelled 104 percent. That means the loss of 93,000 America jobs in just the first three years of KORUS.

It’s the same story with the other trade deals that followed NAFTA, including the agreements that enabled China to enter the World Trade Organization. The Commerce Department announced just last week the largest monthly expansion in the trade deficit in 19 years. The deficit with China for March was the biggest ever.

What this means is that instead of exporting goods, America is exporting jobs. Foreign workers get the jobs making the stuff Americans buy. And they’re often employed by factories producing products for so-called American corporations like Nike. They’re employed by factories that collapse and kill hundreds. Factories that catch on fire and immolate workers trapped inside. Factories where workers are ill-paid, overworked and slapped when they can’t meet unrealistic production quotas. Factories that pollute grievously.

American workers no longer are willing to engage in this abusive relationship with trade fanatics. They no longer believe the promises of change. They don’t want the federal money TPP fanatics promise them to pay for retraining as underpaid burger flippers after their middle class-supporting factory jobs are shipped overseas. They’re over trade pacts that benefit only multi-national corporations like Nike.

To Fast Track and the TPP, they say, “Just Don’t Do It!”

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