Wall Street Journal editorial, “Labor’s $60 Billion Payoff“:
Richard Trumka of the AFL-CIO says this and other concessions mean the excise tax will raise some $60 billion less than the original Senate version. Democrats are probably going to charge investors for this political perk, by extending the 2.9% Medicare payroll tax to capital gains for the first time ever—on top of all the other taxes. Just what the economic recovery needs.
Meanwhile, the extra five-year dispensation gives labor lobbyists plenty of time to negotiate a permanent extension for the Democratic union base, even as labor is being armed with an important new organizational tool: Eliminating the secret ballot in union elections might be unnecessary when unions have an exclusive tax privilege at their political disposal. Right-to-work states will also be punished because they are less unionized.
Radio host and attorney Hugh Hewitt also detects a huge giveaway to Big Labor:
Not only does this carve-out outrageously treat nearly identically-situated Americans differently –same income, same health plan, but the union member is spared an enormous tax burden and the non-union member or his company pay it– the impact of the exemption will be of far more consequence and a far greater advantage to organized labor than even the very controversial “card check” proposal. Imagine the extraordinary advantage that will fall to companies like GM –already a government car company– when it doesn’t have to pay any of the tax but non-unionized car companies do have to pay it. The same advantage will roll through the economy, with every unionized business benefitting and every non-union company in effect paying a premium for staying non-union. Even long time opponents of unionization will have to reconsider their stance given the cost advantage now open to companies providing their health insurance through collective bargaining.
Latest posts by Carter Wood (see all)
- Farewell from a Blogger - May 25, 2011
- Activist Ignore Evidence to Back Shakedown Suit Against Chevron - May 25, 2011
- More than a Lawsuit: A Circle of Political Pressure Against Chevron - May 25, 2011