Posts tagged taxes
OPINION: Republicans Don’t Need to Embrace Union Leaders to Win Union Workers
July 1, 2024 // Republicans should appeal directly to union members with commonsense policies. Working-class Americans are among the hardest hit by Bidenomics and its painful inflation. Republicans should reach them with policies that will reduce the cost of living and increase job opportunities. The GOP should simultaneously and forcefully oppose the union-backed demands with a message of spending restraint. Additionally, the GOP should extend the 2017 tax cuts, which are set to expire at the end of 2025 — spurring a new era of job creation and wage growth.
New Law Redefines Employees and Contractors
March 7, 2024 // Data suggest worker misclassification may be the exception rather than the rule in many industries. Surveys consistently show that most independent contractors prefer their independence. Around 79% of them prefer their arrangement over a traditional job, according to the U.S. Bureau of Labor Statistics, while fewer than one in 10 contractors want a traditional work arrangement. "Since a lot of older Americans do seek out these flexible forms of work as they near retirement — or after — this rule will likely lead to reduced work opportunities for them." Implemented in 2020 when acting U.S. Labor Secretary Su was California's labor commissioner, California's Assembly Bill 5, or AB5, similarly set out to protect workers by getting more people on the payrolls. But many Californians working as legitimate contractors suddenly lost income after businesses and nonprofits stopped working with them as freelancers and didn't hire them as employees.
Opinion: Biden rule threatens to throw independent contracting into disarray
March 6, 2024 // For example, the U.S. Postal Service uses 7,900 contracted delivery services to reach about 3 million of its delivery points. The plainclothes carrier who delivers mail via her personal vehicle to my home in Shenandoah, Va., is presumably one of these contract drivers. Under the Biden administration’s new rule, she and potentially thousands of individuals like her would almost certainly be considered employees. That is because the work these contractors perform is “integral” to the Postal Service; the Postal Service exercises a high degree of direct and indirect control over these individuals by mandating where and when the work must be done, and the delivery contractors are not exercising significant “skill” or “initiative.”
Teachers Union Strike in Mass. Amid Statewide Revenue Deficits
February 11, 2024 // Nearly two weeks later, and close to a million dollars in fines incurred by the illegal strike, the NTA and the District finally agreed to a 2.5 percent cost of living adjustment through fiscal year 2025, a 3.25 percent increase by 2026, and a .75 percent increase for 2027—a stepped total of 12.6 percent over four years. According to the NTA, the deal includes “the best parental leave benefits in the state,” with 10 additional paid days by the district. According to Newton officials, however, the deal cost their residents an additional $53 million more than budgeted. In March of 2023, Newton residents voted 53-47 against additional tax increases proposed to cover increased spending. Without the additional tax revenues to fund the union’s demands, Newton city Mayor Ruthanne Fuller, said during negotiations that the city would need to layoff teachers and other city employees, such as police and firefighters, to meet the bargaining demands.
Commentary: With Unions, the Numbers Tell the Story
February 5, 2024 // Public sector unions’ hold on government employees isn’t a lock. State legislatures can pass laws that rein in unionization and membership recruitment and protect employees. States can choose a different path by, for example, ending artificial union subsidies and requiring union executives to prove their value to employees. States can follow Florida’s lead: Last year, the Sunshine State ended union payroll deductions and doubled down on recertification, forcing unions to demonstrate actual support from membership to remain in power.
OP-ED: Labor Department’s new independent contractor rule is a mess. We need a clear national standard instead.
February 2, 2024 // This confusion has serious consequences. Worker classification affects not only minimum wages and overtime, but also fringe benefits, taxes, insurance, liability for injuries, and union organizing. It can even implicate antitrust law. So if a business classifies a worker incorrectly, it can face serious legal penalties. And those penalties aren’t just monetary: some states have even made misclassification a crime. And make no mistake, this isn’t only a problem for companies; it’s a problem for workers too. Look no further than what has happened in California. In 2020, the state changed its classification rules to crack down on supposed misclassification. The state’s goal was to shift workers out of independent contracting and into employment. But not only did contracting dry up, so did employment. A new study shows that more than ten percent of contractors and four percent of employees in the affected professions simply lost their jobs. Businesses were so afraid of the new classification rules that they cut opportunities across the board.
Union-backed bills pose biggest challenges to cities
October 16, 2023 // The reasons: a tight labor market with unemployment under 4% and pro-union policies by the Biden administration. But one reason not cited is the difficulty of fighting union power in one-party, Democratic states such as California, New York and Illinois. Indeed, the SEIU’s clout was shown this month when Newsom appointed Laphonza Butler to the U.S. Senate seat vacated by the late Dianne Feinstein. Most recently the head of Emily’s List, Butler was before that president of SEIU California, representing 700,000 California workers. Through its contributions, the SEIU has a stranglehold on hundreds of local officials in the state. When Republican clout is moribund – and the party seemingly can’t get its act together, as most glaringly in California – there’s no countervailing power to union demands. Urban residents are most dependent on public services and the tourism and entertainment industries represented by these newly energized unions. Strikes always are disruptive and can paralyze an economy, damaging city finances and driving away businesses. The rusted-out remnant of Detroit, until the 1960s dubbed the Paris of the West, is a cautionary example. But one California economic sector will benefit for sure: moving companies. Better pack up before they’re unionized, too.
OP-ED: LAUSD’s unions could support policies to help all Californians
March 14, 2023 // According to the SEIU, the average annual salary for the 30,000 LAUSD service workers they represent is $25,000. But that includes all service workers, from part-time to full-time. About 75% of the members work fewer than eight hours per day, and with school in session only 180 days, or 36 weeks per year, even many of the workers with “full-time hours” are off for up to 16 weeks per year. Union representatives themselves acknowledge LAUSD’s reliance on a part-time workforce. But it raises an uncomfortable question that applies to teachers as well: If K-12 schools in California operate for the equivalent of just 36 full weeks per year, is it reasonable for people working in these schools to expect to earn enough to cover a full year of expenses? Similarly, if some of the service jobs require a worker for only a few hours each day, how can the district’s taxpayers afford to pay them for a full day?
Unionized Public Education is Destroying California
March 13, 2023 // The teachers’ union in California supported a ballot initiative that guarantees at least 38 percent of the state general fund is spent on K-14 public education. This guarantees that any new government program – such as last year’s single payer healthcare proposal that would have added hundreds of billions to the state budget – will pour more money into public education. This creates an incentive for California’s teachers’ unions to push for huge increases to the size of the state government, because they’ll get 38 percent of the pie no matter how big it gets. Because California’s public schools receive state funds based on attendance, the teachers’ union is also incentivized to support anything that will increase the student age population. Hence they have an incentive to support anything that will facilitate mass immigration, whether or not that puts a strain on housing and other services. If those students are from low-income households or don’t speak English as their first language, the per student allocations are increased.