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Gov Walker Plans To Celebrate Budget Bill With Felon Until Union Broadcasts Rendezvous

Today, Gov. Scott Walker will sign the controversial state budget bill into law. He was originally scheduled to sign his budget at Badger Sheet Metal Works, a private business operated by a man with six felony tax convictions, in Green Bay, at 2 p.m. on Sunday. However, now that Gregory A. DeCaster’s tax troubles have been publicized, the governor’s office has announced a new locationfor the ceremony: Fox Valley Metal Tech, also in Green Bay.

“While Mr. DeCaster has served his time in jail and paid his debt to society, it is fitting that the governor would choose to sign this budget at a business owned by someone who was once convicted of the felony of tax evasion,” said Marc Norberg, a Wisconsin native and assistant to the general president of the Sheet Metal Workers’ International Association.

Department of Administration Secretary Mike Huebsch said something quite similar earlier in the day when he told WisPolitics, “Green Bay, and certainly the company that we’re going to, reflects really what this budget and what Gov. Walker’s first term here is all about.”

Will the budget bill be a job creator?
According to the Milwaukee Journal Sentinel, Walker chose to sign the budget at a manufacturer “to emphasize the budget’s focus on job creation.”

Gov. Scott Walker boasted that his budget proposals and other controversial policies have created 25,000 jobs in Wisconsin since the start of the year at a discussion led by the U.S. Chamber of Commerce on Monday in Washington, D.C.

CMD contacted the Center for Wisconsin Strategy, a field laboratory for high-road economic development in the state for a bit of perspective on this spin.

“While we don’t think the governor has that much ability to affect overall employment … to the extent that he has, he has arguably hurt the state,” said Sam Munger, managing director of the Center on Wisconsin Strategy’s Center for State Innovation.

Munger said a significant amount of provisions in the budget will end up destroying the quality of jobs that currently exist.

According to a recent Center of Wisconsin Strategy report, the 8 percent wage cut Walker issued to the 380,000 jobs under his control could cost Wisconsin about 22,000 additional jobs, “because families that rely on the income from their public-sector jobs will have less to spend in their local communities.”

“If you look all the way through the budget … his primary motivation has not been keeping jobs, it’s been remaking the state as a corporate welfare haven,” Munger said, citing Walker’s refusal of federal stimulus money and federal broadband money and his refusal to engage the state in other job-generating projects, while rewarding the wealthy and corporations with a range of tax breaks.

The budget’s cuts to municipalities will suck money out of localities, Munger said, adding that pulling money out of circulation will cost jobs in an indirect or induced way. In contrast to the rosy news coming from the Governor’s mansion, the most recent data from the Department of Workforce Development shows that unemployment increased in most Wisconsin cities in the month of May. The report shows that unemployment rates increased in 25 cities with a population of 25,000 people or more, with only Stevens Point experiencing a slight drop, from 7.9 percent to 7.8 percent.

Other budgetary measures that Munger said threaten job quality are cuts to childcare subsidies for working parents, making it more difficult to obtain unemployment insurance and rolling back child labor laws.

“Everything that he has done in the budget that related to jobs or employment has either killed jobs, destroyed the quality of jobs or been a giant giveaway to corporations,” Munger said.

 

By: Jessica Opoien, Opinion Writer, Center For Media and Democracy, June 26, 2011

June 26, 2011 Posted by | Class Warfare, Collective Bargaining, Conservatives, Corporations, Democracy, Economy, GOP, Gov Scott Walker, Government, Governors, Ideologues, Ideology, Jobs, Labor, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Tax Evasion, U.S. Chamber of Commerce, Union Busting, Unions, Wisconsin, Wisconsin Republicans | , , , , , , , , , | Leave a comment

The Two Labor Fallacies: Public or Private, It’s Work

As New Jersey throws its weight behind Wisconsin and Ohio in rolling back the collective bargaining rights of public sector employees, we are once again going to hear the  argument that public sector unions ought not to be confused with their private sector counterparts. They’re two different animals entirely.

Private sector workers, so the argument goes, have historically organized to win better working conditions and a bigger piece of the pie from profit-making entities like railroads and coal mines. But public sector employees work for “us,” the ultimate nonprofit, and therefore are not entitled to the same protections.

This is a fond notion at best. Yes, public school teachers were never gunned down by Pinkerton guards; municipal firefighters were never housed in company-owned shanties by the side of the tracks. But none of this cancels their rights as organized workers. No ancestor of mine voted to ratify the Constitution, either, but I have the same claim on the Bill of Rights as any Daughter of the American Revolution. Collective bargaining is an inheritance and we are all named in the will.

The two-labors fallacy rests on an even shakier proposition: that profits exist only where there is an accountant to tally them. This is economics reduced to the code of a shoplifter — whatever the security guard doesn’t see the store won’t miss. If my wife and I have young children but are still able to enjoy the double-income advantages of a childless couple, isn’t that partly because our children are being watched at school? If I needn’t invest some of my household’s savings in elaborate surveillance systems, isn’t that partly because I have a patrol car circling the block? The so-called “public sector” is a profit-making entity; it profits me.

Denying this profitability has an obvious appeal to conservatives. It allows a union-busting agenda to hide behind nice distinctions. “We’re not anti-union, we’re just against certain kinds of unions.” But the denial isn’t exclusive to conservatives; in fact, it informs the delusional innocence of many liberals. I mean the idea that exploitation is the exclusive province of oil tycoons and other wicked types. If you own a yoga center or direct an M.F.A. program, you can’t possibly be implicated in the more scandalous aspects of capitalism — just as you can’t possibly be to blame for racism if you’ve never grown cotton or owned a slave.

The fact is that our entire economic system rests on the principle of paying someone less than his or her labor is worth. The principle applies in the public sector no less than the private. The purpose of most labor unions has never been to eliminate the profit margin (the tragedy of the American labor movement) but rather to keep it within reasonable bounds.

But what about those school superintendents and police chiefs with their fabulous pensions, with salaries and benefits far beyond the average worker’s dreams?

Tell me about it. This past school year, I worked as a public high school teacher in northeastern Vermont. At 58 years of age, with a master’s degree and 16 years of teaching experience, I earned less than $50,000. By the standards of the Ohio school superintendent or the Wisconsin police chief, my pension can only be described as pitiful, though the dairy farmer who lives down the road from me would be happy to have it.

He should have it, at the least, and he could. If fiscal conservatives truly want to “bring salaries into line” they should commit to a model similar to the one proposed by George Orwell 70 years ago, with the nation’s highest income exceeding the lowest by no more than a factor of 10. They should establish that model in the public sector and enforce it with equal rigor and truly progressive taxation in the private.

Right now C.E.O.’s of multinational corporations earn salaries as much as a thousand times those of their lowest-paid employees. In such a context complaining about “lavish” public sector salaries is like shushing the foul language of children playing near the set of a snuff film. Whom are we kidding? More to the point, who’s getting snuffed?

 

By: Garret Keizer, Op-Ed Contributor, The New York Times Opinion Pages, June 24, 2011

June 26, 2011 Posted by | Businesses, Class Warfare, Collective Bargaining, Conservatives, Constitution, Corporations, Democracy, Economy, Employment Descrimination, GOP, Government, Governors, Ideology, Labor, Lawmakers, Middle Class, Politics, Republicans, Right Wing, State Legislatures, States, Teachers, Union Busting, Unions, Wealthy | , , , , , , , , , , , | Leave a comment

How States Are Rigging The 2012 Election

An attack on the right to vote is underway across the country through laws designed to make it more difficult to cast a ballot. If this were happening in an emerging democracy, we’d condemn it as election-rigging. But it’s happening here, so there’s barely a whimper.

The laws are being passed in the name of preventing “voter fraud.” But study after study has shown that fraud by voters is not a major problem — and is less of a problem than how hard many states make it for people to vote in the first place. Some of the new laws, notably those limiting the number of days for early voting, have little plausible connection to battling fraud.

These statutes are not neutral. Their greatest impact will be to reduce turnout among African Americans, Latinos and the young. It is no accident that these groups were key to Barack Obama’s victory in 2008 — or that the laws in question are being enacted in states where Republicans control state governments.

Again, think of what this would look like to a dispassionate observer. A party wins an election, as the GOP did in 2010. Then it changes the election laws in ways that benefit itself. In a democracy, the electorate is supposed to pick the politicians. With these laws, politicians are shaping their electorates.

Paradoxically, the rank partisanship of these measures is discouraging the media from reporting plainly on what’s going on. Voter suppression so clearly benefits the Republicans that the media typically report this through a partisan lens, knowing that accounts making clear whom these laws disenfranchise would be labeled as biased by the right. But the media should not fear telling the truth or standing up for the rights of the poor or the young.

The laws in question include requiring voter identification cards at the polls, limiting the time of early voting, ending same-day registration and making it difficult for groups to register new voters.

Sometimes the partisan motivation is so clear that if Stephen Colbert reported on what’s transpiring, his audience would assume he was making it up. In Texas, for example, the law allows concealed handgun licenses as identification but not student IDs. And guess what? Nationwide exit polls show that John McCain carried households in which someone owned a gun by 25 percentage points but lost voters in households without a gun by 32 points.

Besides Texas, states that enacted voter ID laws this year include Kansas, Wisconsin, South Carolina and Tennessee. Indiana and Georgia already had such requirements. The Maine Legislature voted to end same-day voter registration. Florida seems determined to go back to the chaos of the 2000 election. It shortened the early voting period, effectively ended the ability of registered voters to correct their address at the polls and imposed onerousrestrictions on organized voter-registration drives.

In 2008, the U.S. Supreme Court, by 6 to 3, upheld Indiana’s voter ID statute. So seeking judicial relief may be difficult. Nonetheless, the Justice Department should vigorously challenge these laws, particularly in states covered by the Voting Rights Act. And the court should be asked to review the issue again in light of new evidence that these laws have a real impact in restricting the rights of particular voter groups.

“This requirement is just a poll tax by another name,” state Sen. Wendy Davis declared when Texas was debating its ID law early this year. In the bad old days, poll taxes, now outlawed by the 24th Amendment, were used to keep African Americans from voting. Even if the Supreme Court didn’t see things her way, Davis is right. This is the civil rights issue of our moment.

In part because of a surge of voters who had not cast ballots before, the United States elected its first African American president in 2008. Are we now going to witness a subtle return of Jim Crow voting laws?

Whether or not these laws can be rolled back, their existence should unleash a great civic campaign akin to the voter-registration drives of the civil rights years. The poor, the young and people of color should get their IDs, flock to the polls and insist on their right to vote in 2012.

If voter suppression is to occur, let it happen for all to see. The whole world, which watched us with admiration and respect in 2008, will be watching again.

By: E. J. Dionne, Opinion Writer, The Washington Post, June 19, 2011

June 26, 2011 Posted by | Class Warfare, Conservatives, Constitution, Democracy, Elections, Equal Rights, GOP, Governors, Guns, Ideologues, Ideology, Journalists, Lawmakers, Media, Politics, Press, Pundits, Republicans, Right Wing, State Legislatures, States, Supreme Court | , , , , , , , , , | Leave a comment

Conservative Legal Luminaries Concede: The Individual Mandate Is No Unique Threat To Freedom, After All

As summarized one month ago in a post here on Jonathan Chait’s blog, conservatives reacted with fury to an article I wrote for Slate in which I pointed out that two major components of House Budget Committee Chair Paul Ryan’s Roadmap for America’s Future closely resemble the much-demonized “individual mandate” in the Affordable Care Act. In particular, I noted that the ACA provision requiring health insurance has precisely the same kind of impact on individual purchasing decisions as Ryan’s roadmap, and is, if anything, less coercive than the Roadmap proposal to provide a tax credit to individuals who purchase health insurance, as a replacement for the current exclusion from income of employer-sponsored health insurance. The ACA imposes a tax penalty on individuals who choose not to purchase health insurance. The Ryan Roadmap, on the other hand, provides a tax credit to individuals who choose to purchase health insurance—a technical distinction, I suggested, without an economic or other real-world difference.

National Review, the Weekly Standard, and Hot Air raised various objections to this point, which was seconded by Ezra Klein in the Washington Post and by Jonathan in TNR. But recent oral arguments before federal appeals courts hearing legal challenges to the ACA should quiet such protests once and for all. In these arguments, two of the most celebrated members of the Right’s legal elite acknowledged that there is no daylight between the ACA mandate-plus-penalty and a Ryan-type tax credit universally conceded to be constitutional.

The first instance of this occurred on June 1, when Sixth Circuit Judge Jeffrey Sutton, sitting on a three-judge panel in Cincinnati in a case brought by the conservative advocacy group Thomas More Law Center, floated the hypothetical idea of a tax credit alternative to the ACA approach. The Law Center’s attorney, Robert Muise, acknowledged that “you could provide a credit for health insurance, there’s no prohibition on that.” To which Judge Sutton responded:

You think it would be just as coercive to say to people, everybody pays the same additional tax, it’s a health care tax, everybody pays it and the only people that don’t pay it, i.e. get a credit, are those with insurance, you think that would be as coercive?

Muise contended that a tax credit was different because it encouraged activity—namely the purchase of health insurance—whereas the ACA provision penalized a “failure to act.” But Sutton didn’t buy it:

If that’s your view, then just pay the penalty, pay the penalty, don’t get insurance, don’t be forced to do anything, in that sense, if you think they’re equivalent, in that sense, no one is forced to do anything, because the economic incentives are the same in both settings, you can’t say the law requires you to buy it, the law just penalizes you if you don’t.

Judge Sutton is not the first person to observe that the ACA’s allegedly freedom-destroying mandate is operationally indistinguishable from commonplace tax incentive provisions. But, apart from having actual decisional authority on the matter, Sutton enters this space with formidable ideological and professional credentials. One of the first batch of appeals court nominees picked by President George W. Bush, Sutton, though only 42 years old, earned his front rank position as the energizer bunny of the Rehnquist Court’s late 1990’s drive to shrink Congress’ domestic regulatory authority in the name of “federalism.” As a lawyer, Sutton argued and won, usually by bitterly contested 5-4 margins, a raft of decisions striking or narrowing provisions of the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Violence Against Women Act, the Clean Water Act, and regulations implementing the 1964 Civil Rights Act, among others. He famously once told Legal Times, “I really believe in this federalism stuff.” Sutton’s professional standing was unquestioned; appointed by the Supreme Court in 2001 to represent a prison inmate, Sutton won a unanimous decision and unusually explicit praise from its author, Justice Ruth Ginsburg, for “his able representation.”

Of course, Sutton’s verbal acknowledgement that the ACA individual mandate is not uniquely coercive, emphatic though it appeared, is no guarantee that he will not strike down a law that Republican orthodoxy demonizes as a drastic expansion of federal power. Nevertheless, his on-the-record statement leaves the case against the ACA mandate resting at best on a hypertechnical foundation lacking in substance.

The second acknowledgement of the ACA mandate’s kinship with uncontroversial tax incentives occurred a week later in Atlanta, at the June 8 argument before a panel of the Eleventh Circuit Court of Appeals in the case against ACA brought by 26 Republican state attorneys general and governors. During the argument, the Republicans’ counsel, Paul Clement, attempted to sound a reasonable note. He said, “There’s lots of different ways that Congress could incentivize people to get to the exact same result. They could have passed a new tax and called it a tax, and then they could have given people a tax credit for paying for qualifying insurance.”

Again, Clement’s observation was not original. But in addition to being the Republican opponents’ lawyer, Clement also served—with universally acknowledged distinction—as George W. Bush’s Solicitor General. Recently, he made headlines by resigning his 7 figure-per-year partnership in the Atlanta-based firm, King & Spalding, when the firm precipitously withdrew from representing his client, the House of Representatives, to defend the federal Defense of Marriage Act, aka DOMA.

The significance of Clement’s functional equivalence concession was not lost on Eleventh Circuit Judge Stanley Marcus. Marcus, originally named a district judge by President Ronald Reagan and subsequently to his current appellate position by President Bill Clinton, drew a logical implication subtly different from Judge Sutton’s observation that the ACA mandate is not uniquely coercive, but one that is potentially even more troublesome for the ACA opponents’ case. “Isn’t that just another way,” he asked rhetorically:

“[O]f saying they [Congress] could have done what they did better? More efficaciously, more directly, and they regulated perhaps inefficaciously, maybe even foolishly, but if it’s rational, doesn’t my job stop at the water’s edge? Isn’t it for the legislative branch to make those kinds of calculations and determinations?”

No constitutional lawyer could mistake where Judge Marcus was heading. How is it possible, he was saying, for courts to dictate which of two methods Congress must choose to implement its constitutionally enumerated powers, when both methods generate “the exact same result?” Judicial micro-managing on such a granular level, Marcus knows, violates the fundamental, black-letter standard established nearly two centuries ago by Chief Justice John Marshall. In his iconic 1819 decision, McCulloch v. Maryland, Marshall broadly interpreted the constitutional grant of authority to Congress “to make all laws which shall be necessary and proper for carrying into execution” its enumerated powers: “Let the end be legitimate,” he wrote in words memorized by first-year law students, “let it be within the scope of the constitution, all means which are appropriate, which are plainly adapted to that end, which are not prohibited, but consist with the letter and spirit of the constitution, are constitutional.”

To be sure, no one who listened to this Eleventh Circuit argument could predict the panels’ outcome any more confidently than could those who heard the previous week’s Sixth Circuit argument. But these unequivocal statements, by two of conservativism’s most eminent legal luminaries, that the ACA individual mandate is not a unique threat to Americans’ liberty after all, surely drain much of the juice from opponents’ legal case, and, ultimately, from their political case as well.

By: Simon Lazarus, Public Policy Counsel to the National Senior Citizens Law Center, Guest Post, The New Republic, June 17, 2011

June 26, 2011 Posted by | Affordable Care Act, Congress, Conservatives, Constitution, Consumers, Democracy, Freedom, GOP, Government, Health Reform, Ideology, Individual Mandate, Politics, Republicans, Right Wing | , , , , , , , , , | 1 Comment

Corporate Tax Cuts Don’t Stimulate Job Growth

Prevailing conservative  wisdom dictates that businesses need tax cuts—and investors need capital  gains tax cuts—to get the economy moving. But two very well-executed articles  on wages and taxes published recently suggest that targeting tax cuts at  business executives may do little to improve the dismal unemployment picture.

The Washington Post offers a startling  analysis of income disparity, noting that the gap between the very rich and the rest of us has  grown dramatically in the past few decades, reaching current levels that have  not been seen since the Great Depression. In 2008, the Post reports, the top one-tenth of one percent of earners took in  more than a tenth of the personal income in the United States. But the moneyed  class is not dominated by professional athletes or big-name artistic performers  or even hedge fund managers, the Post found.  Instead, it is due to a big increase in executive compensation, even as real  wages for some of their workers have dropped:

The top 0.1 percent of earners make about $1.7 million or  more, including capital gains. Of those, 41 percent were executives, managers  and supervisors at non-financial companies, according to the analysis, with  nearly half of them deriving most of their income from their ownership in  privately-held firms. An additional 18 percent were managers at financial firms  or financial professionals at any sort of firm. In all, nearly 60 percent fell  into one of those two categories.

The New York Times has a fascinating story that serves as an unwitting companion piece to the Post story. Corporate executives, the  paper reports, are clamoring for a tax holiday to encourage them to bring their  offshore profits back to the United States. And the money in question is big,  the Times notes: Apple has $12 billion  in offshore cash, while Google has $17 billion, and Microsoft, $29 billion. The  companies with money sitting offshore argue that if the federal government were  to offer them a huge tax break—say, a one-year drop from 35 percent to 5.25  percent—the businesses would bring the money home and operate as a  private-sector economic stimulus.

However, the Times notes:

(T)hat’s not how it worked  last time. Congress and the Bush administration offered companies a similar tax  incentive, in 2005, in hopes of spurring domestic hiring and investment, and  800 took advantage. Though the tax break lured them into bringing $312 billion  back to the United States, 92 percent of that money was returned to  shareholders in the form of dividends and stock buybacks, according to a study by the nonpartisan National Bureau of Economic Research.

Who needs a tax cut, then? The U.S. economy is  very much consumer-driven; companies aren’t hiring, many business owners say,  because people aren’t buying. The past behavior of corporations that have  received huge tax cuts has not necessarily been to use the money to hire more  people; the Bush-era tax cuts have been in place for a decade, and the  unemployment rate is still 9.1 percent. And executive compensation has grown.  Executives may feel entitled to earn more and more if their companies are doing  well and expanding. But without customers, those companies will go bust.

By: Susan Milligan, U. S. News and World Report, JUne 20, 2011

June 23, 2011 Posted by | Businesses, Class Warfare, Congress, Conservatives, Consumers, Corporations, Economic Recovery, Economy, GOP, Government, Ideology, Income Gap, Jobs, Labor, Middle Class, Politics, Republicans, Taxes, Unemployment, Wealthy | , , , , , , , , , , , , , , | Leave a comment