9 Reasons Why We’re Giving a ‘Thumbs Down’ to the Ryan Budget

Liz Lemon, 30 Rock

House Republican leaders passed Rep. Paul Ryan’s (R-Wis.) budget this week by a vote of 219 to 205, with no Democrats voting in favor. The Ryan budget is chock full of so many terrible ideas that it’s hard to single out the biggest stinkers, but here goes.

1. Raising the Medicare Eligibility Age from 65 to 67.  Not only would raising the eligibility age shift costs to 65- and 66-year-olds and to seniors who still qualify for Medicare benefits, but it would actually *increase* overall costs throughout the health care system. Worst. Idea. Ever.

2. Giving Corporations More Tax Breaks for Outsourcing Jobs. The Ryan budget calls for a “territorial tax system,” which would eliminate U.S. taxes on the offshore profits of companies that send jobs overseas. Second worst idea ever.

3. Costing 4 Million Jobs. And that’s only in two years! According to the Economic Policy Institute, the Ryan budget would cost 1.1 million jobs in 2015 and 3 million jobs in 2016. Millions more jobs would be lost in subsequent years.

4. Giving Millionaires a $200,000 Tax Cut. The Ryan budget would cut the top marginal income tax rate from 39.6% to 25%, giving people who make more than $1 million per year tax cuts averaging between $200,000 and $330,000.

5. Turning Medicare into a Voucher Program. The Ryan budget once again proposes to end the Medicare guarantee, which would raise premiums for seniors who choose traditional Medicare and leave traditional Medicare to “wither on the vine” as private plans capture the healthiest seniors.

6. Gutting Education. The Ryan budget would slash funding for kindergarten to 12th grade education by$89 billion and higher education by $260 billion over 10 years, making college less affordable and increasingstudent indebtedness by $47 billion.

7. Gutting Investment in Transportation. The Ryan budget would slash transportation investments by$52 billion in 2015, costing jobs and making America less competitive.

8. Gutting Medicaid. The Ryan budget would cut Medicaid funding by $732 billion over 10 years by turning Medicaid into a block grant program. It would further cut Medicaid funding by repealing the Affordable Care Act, for a total cut to Medicaid of some $1.5 trillion.

9. Slashing Tax Rates for Profitable Corporations. The Ryan budget would slash the corporate tax rate from 35% to 25%, squandering $1.2 trillion to $1.5 trillion in tax revenue over 10 years.

Reposted from AFL-CIO NOW

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The Latest Republican Plan to Outsource Jobs

House Republicans are proposing another enormous tax break for corporations to outsource jobs. The latest Republican outsourcing plan is very similar to the one promoted by former Gov. Mitt Romney in the 2012 presidential campaign, which President Barack Obama said would cost 800,000 jobs.

The outsourcing plan was included in a “tax reform” proposal unveiled recently by the chairman of the House Committee on Ways and Means, Rep. Dave Camp (R-Mich.).

Poll after poll shows America’s working families strongly oppose tax breaks for outsourcing that already exist under current law. This is hardly surprising, since between 1999 and 2010, U.S. corporations eliminated 1 million jobs in the United States while creating 3 million jobs overseas.

Here’s how the House Republican plan would promote even more outsourcing: it would allow outsourcers to pay almost no U.S. taxes on their overseas profits when they send jobs overseas. To be precise, outsourcers would be taxed at a rate of 1.25% on most offshore profits. Obviously, if outsourcers can pay taxes at a lower rate when they send jobs overseas, they’re going to have more of an incentive to outsource.

Here’s how Obama described this terrible idea during the 2012 campaign:

“There’s a new study out by nonpartisan economists that says Gov. Romney’s economic plan would in fact create 800,000 jobs. There’s only one problem: The jobs wouldn’t be in America. They’d be in other countries. By eliminating taxes on corporations’ foreign income, Gov. Romney’s plan would actually encourage companies to shift more of their operations to foreign tax havens, creating 800,000 jobs in those other countries.”

The technical name for this idea is a “territorial tax system.” Why is it called “territorial”? Because the United States would only tax American corporations on their profits within the “territory” of the United States, not on their profits overseas.

A “territorial tax system” is a terrible idea for lots of reasons. As Obama explained during the 2012 campaign, it would encourage job creation abroad instead of at home, lowering U.S. wages in the process and opening up opportunities for multinational corporations to avoid paying their taxes by playing accounting games to pretend their domestic profits are earned in foreign tax havens.

Camp claims several features of his plan would keep multinational corporations from avoiding their taxes.  However, as Citizens for Tax Justice (CTJ) explains, “[I]t is impossible to believe they would work since his overall proposal would dramatically increase rewards for any American corporation that can make its U.S. profits appear to be earned in offshore tax havens.”

Unfortunately, the Republican outsourcing plan has not gotten all the bad press it deserves. Why not? Partly because it has been competing for attention with all the other problems with the House Republican “tax reform” proposal. For example, the proposal would increase the deficit over the long term.

In February 2014, the AFL-CIO took a strong position against a “territorial tax system,” arguing that it would increase the tax incentive for shifting jobs and profits overseas. Instead, the AFL-CIO called for the elimination of all—not just some—of the existing tax incentives for outsourcing. What does this mean in practical terms? It means taxing offshore profits no differently than domestic profits—that is, taxing both kinds of profits at the same rate and at the same time.  Legislation that eliminates all tax incentives for outsourcing would generate $583 billion over 10 years, and this is the benchmark by which any international tax reform proposal should be measured.

Although prospects for the House Republican “tax reform” proposal are uncertain, the idea of a “territorial tax system” has wide support among Republicans in Congress, was recently endorsed by Sen. Marco Rubio (R-Fla.) and has attracted interest from some Democrats as well. It would be very dangerous to allow this terrible idea to pick up steam.

Reposted from AFL-CIO NOW

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10 Ways Working Families Are ‘Kicking Ass’ for the Middle Class

Sure, working families have been under attack for years, but people across the country are rolling up their sleeves and fighting back to protect workers’ rights and raise living standards for everyone. Here are 10 ways they’re doing it:

1. Increasing the Minimum Wage

Four states (California, Connecticut, New York and Rhode Island) have increased their state minimum wage in 2013, and on Nov. 5, New Jersey voters will vote on a ballot measure to increase their minimum wage.

2. Passing “Buy America” Laws

Three states (Colorado, Maryland and Texas) passed laws in 2013 to ensure that the goods procured with public funding are made in the United States.

3. Ensuring Paid Sick Days

Portland, Ore., Jersey City, N.J., and New York City became the latest three cities to adopt standards for paid sick days in 2013.

4. Protecting Immigrant Workers

In 2013, six states (California, Colorado, Indiana, Maryland, Oregon and Vermont) have enacted protections for immigrant workers, including access to driver’s licenses and education.

5. Cracking Down on Businesses That Cheat Workers

Texas passed legislation in 2013 to crack down on businesses that cheat employees by treating them as “independent contractors” who lack worker protections (such as minimum wage and overtime protection, and eligibility for unemployment benefits and workers’ compensation).

6. Giving Workers the Right to a Voice on the Job

In 2013, some 15,000 home care workers in Minnesota won collective bargaining rights through state legislation, as did 10,000 in Illinois and 7,000 in Vermont. Thousands of other workers around the country have enjoyed organizing wins, too: 7,000 electrical workers, more than 5,000 Texas public school teachers, taxi drivers in New York and other cities, telecom workers, college and university faculty, EMS drivers, hotel and casino workers and domestic workers, to name a few.

7. Protecting Your Privacy on Social Media

Nine states (Arizona, Colorado, Illinois, New Jersey, New Mexico, Nevada, Oregon, Utah and Washington) have passed legislation in 2013 to prohibit employers from requiring access to your social media passwords or information as a condition of employment.

8. Fighting for LGBTQ Equality

Five states (Colorado, Delaware, Minnesota, Rhode Island and Vermont) have passed legislation banning workplace discrimination or recognizing marriage equality.

9. Protecting the Rights of Domestic Workers

Two states (California and Hawaii) have passed legislation in 2013 to protect the rights of domestic workers. California’s Domestic Workers’ Bill of Rights will benefit about 200,000 domestic workers, and Hawaii’s will benefit some 20,000 domestic workers.

10. Protecting Voting Rights

Twelve states (California, Colorado, Delaware, Florida, Maryland, Nevada, New Hampshire, New Jersey, New Mexico, Oregon, Virginia and West Virginia) have passed legislation protecting voting rights in 2013, while voting rights legislation was vetoed by the governors of Nevada and New Jersey.

Reposted from AFL-CIO NOW

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