Trump’s Tax Plan Is a Massive Giveaway to the Wealthy Few

President Donald Trump is working on a new tax plan. Reports suggest that Trump wants to cut the corporate tax rate to 15%. That proposal could have serious long-term consequences for the United States—estimates show this will reduce revenue by $2.4 trillion in the first decade—and it amounts to little more than a massive giveaway to big corporations. Trump proposed the same tax cut for big corporations during the presidential campaign, as part of a larger tax plan that also included tax giveaways for the wealthy at a total cost of $7.2 trillion. We'll have to wait to see what the details of the plan are, but it's important that any tax plan help working people.

This is what a plan that actually works for working people would look like:

Big corporations and the wealthy must pay their fair share of taxes: Our rigged and broken tax system lets big corporations and the wealthy avoid paying their fair share of taxes, sticking the rest of us with the tab. Any tax reform proposal must not cut taxes for big corporations or the wealthy. On the contrary, tax reform should restore taxes on the wealthiest estates and tax the income of investors as much as the income of working people. It's imperative that tax reform make our tax system more progressive than it is now. Big corporations and the wealthy must pay more in taxes than they pay now, so we can build an economy that works for all of us.

Tax reform must raise significantly more revenue: Tax reform must raise enough additional revenue over the long term to create good jobs and make the public investment we need in education, infrastructure and meeting the needs of children, families, seniors and communities. Any tax reform that reduces revenues in the short term or the long term is unacceptable. Additionally, cost estimates must be honest and not rely on gimmicks that hide the true long-term cost of tax cuts.

Tax reform must eliminate the tax incentive for corporations to shift jobs and profits offshore: Taxing offshore profits less than domestic profits creates an incentive for corporations to shift jobs and profits offshore, while giving global corporations a competitive advantage over domestic corporations. Tax reform must eliminate the tax incentive for corporations to shift jobs and profits offshore, a move that would raise nearly $1 trillion over 10 years. Reform must not include a “territorial” system that further reduces taxes on offshore profits and would increase the tax incentive for global corporations to shift jobs and profits offshore. Tax reform also must encourage investment in domestic manufacturing, production and employment to ensure a robust manufacturing sector.

Global corporations must pay what they owe on past profits held offshore: Global corporations owe an estimated $700 billion in taxes on the $2.6 trillion in past profits they are holding offshore. Tax reform should use these one-time-only tax revenues to increase smart public investment in infrastructure rather than cut corporate tax rates permanently. The higher the tax rate on these accumulated offshore earnings, the more funding will be available for public investment in infrastructure.

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This was reposted from the AFL-CIO.

Posted In: Allied Approaches, From AFL-CIO

Union Matters

Failing Bridges Hold Public Hostage

From the USW

From tumbledown bridges to decrepit roads and failing water systems, crumbling infrastructure undermines America’s safety and prosperity. In coming weeks, Union Matters will delve into this neglect and the urgent need for a rebuilding campaign that creates jobs, fuels economic growth and revitalizes communities.

The Seattle Department of Transportation (SDOT) gave the public just a few hours’ notice before closing a major bridge in March, citing significant safety concerns.

The West Seattle Bridge functioned as an essential component of  the city’s local and regional transportation network, carrying 125,000 travelers a day while serving Seattle’s critical maritime and freight industries. Closing it was a huge blow to the city and its citizens. 

Yet neither Seattle’s struggle with bridge maintenance nor the inconvenience now facing the city’s motorists is unusual. Decades of neglect left bridges across the country crumbling or near collapse, requiring a massive investment to keep traffic flowing safely.

When they opened it in 1984, officials predicted the West Seattle Bridge would last 75 years.

But in 2013, cracks started appearing in the center span’s box girders, the main horizontal support beams below the roadway. These cracks spread 2 feet in a little more than two weeks, prompting the bridge’s closure.

And it’s still at risk of falling.  

The city set up an emergency alert system so those in the “fall zone” could be quickly evacuated if the bridge deteriorates to the point of collapse.

More than one-third of U.S. bridges similarly need repair work or replacement, a reminder of America’s urgent need to invest in long-ignored infrastructure.

Fixing or replacing America’s bridges wouldn’t just keep Americans moving. It would also provide millions of family-supporting jobs for steel and cement workers, while also boosting the building trades and other industries.

With bridges across the country close to failure and millions unemployed, America needs a major infrastructure campaign now more than ever.

 

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There is Dignity in All Work

There is Dignity in All Work