Economic Stimulus Package
throws money at rich and neglects workers
On October 24th the U.S. House of Representatives narrowly passed an
“Economic Stimulus” package that focused on obscene tax breaks for
corporations and wealthy tax payers while neglecting the needs of the hundreds
of thousands of people being adversely effected by the current recession. The
vote was 216 to 214, with most Republicans voting for the bill and most
Democrats opposing it.
It is hoped that the Senate will pass a more reasonable bill, but because
the House bill is so skewed it may be difficult to reach a compromise to be sent
to the President.
The $100 billion House bill eliminates the Alternative Minimum tax for
corporations, but not for individuals. It also refunds taxes to corporations
received since 1986! This provision alone will cost about $25 billion. The
benefactors of this include Ford Motor Company ($2.3 Billion), IBM ($1.4
Billion), General Motors ($832 million), General Electric ($671 million) and the
list goes on. 14 companies are expected to receive over $100 million each in
this refund. None of this money is tied to creating jobs or making purchases to
stimulate the economy. 90% of this “stimulus plan’s” benefits are
earmarked for tax breaks for corporations and the wealthy.
For workers, there is only a hollow, weak chance of extended
unemployment. The Plan sets aside $12 billion for unemployment insurance and
health care subsidies. However, the money is in the form of block grants to the
states with no requirement that the states actually spend the money on those
programs.
This plan lowers taxes for the wealthy. The top one percent of earners
will get a refund averaging $27,000.00. This plan does not guarantee a laid-off
worker one penny of unemployment benefits.
This comes after legislation that provided $15 billion in aid to airlines
who promptly laid off 140,000 workers who received no extra aid.
The AFL-CIO is urging Congress to pass a true comprehensive stimulus
package. This package must include extended unemployment benefits for an
extended pool of workers, health care assistance, job retraining, assistance to struggling states and cities and other
investments that will spark economic recovery.
In order to have a chance at a real economic stimulus package becoming
law, the U.S. Senate must past strong legislation and be firm in negotiations
with the House of Representatives in drafting a compromise bill.
Local 7-232 has over 400 members on layoff. Many have exhausted their
unemployment. They are finding it very difficult to find work in this economy.
In the last month, members of Local 7-232 have been making many calls to
elected officials urging them to enact legislation that will provide extended
unemployment benefits for workers.
Currently, we are urging all members and retirees to call their U.S.
Senator using the toll free number provided by the AFL-CIO. Callers are to urge
their Senators to pass a relief package that includes extended unemployment
benefits and health care assistance for laid off workers now.
If you have not already done so, please call
1-800-718-1008
Tell your Senator how important this legislation is. You should also call
your Congressman to encourage him to support a good bill from the Conference
Committee if the Senate passes a good bill.
