McCain and Taxes

Many interest groups are involved with the reform of tax laws. I researched many of these groups like the Citizens for Tax Justice, Americans for Tax Reform, the National Tax Limitation Committee, FreedomWorks, and Taxpayers for Common Sense. These groups support a variety of liberal and conservative issues varying from fair taxes for middle and low-income families to less financial tax burdens placed on new industry.

McCain was rated 100 percent in 2007-2008 for his support of the National Tax Limitation Committee’s agenda and 85 percent in 2005-2006. The NTLC has notable success in influencing legislative procedures. A majority of their funding is allocated to lobbyists for state and federal representatives. Below is a summary of NTLC from votesmart.org:
"NTLC'S mission is to create a political and economic environment in which you--the individual, productive citizen--can enjoy the opportunity to excel, maximize your choices and enjoy the fruits of your labors free from an intrusive, coercive government."

In essence NTLC wants limited barriers for new businesses which McCain had supported.

The Americans for Tax Reform gave a similar rating to Senator McCain; a grade of 70. The ATR seems to be a more radical group that opposes all tax increases across the board. It is understandable why they would support McCain but their description on votesmart.com could be easily misunderstood, “ATR believes in a system in which taxes are simpler, fairer, flatter, more visible, and lower than they are today. The government’s power to control one’s life derives from its power to tax.”. After reading these few lines one might thing fairer, flatter taxes could actually be a democratic supported issue but is not the case. Overall ATR calls for less regulation and minimal government intervention and taxation.

Freedom Works's who, fights for lower taxes, less government and more economic freedom for all Americans, gave Senator McCain a rating of 80 in 2008 an 83 in 2006 and an75 in 2005. Freedom Works’s combines its powerful staff entrepreneurs and lobbyists with thousands of volunteer activists conducting intense nationwide grassroots movements. Similarly, The National Taxpayers Union seeks to reduce government spending, cut taxes, and protect the rights of taxpayers and in 2006 rated Senator McCain an 88%.

A more primarily based grassroots movement seeking to educate, inform, frame, and advocate greater citizen voice in tax reform is the Citizens for Tax and Justice established in 1979. CTJ is a 501 c4 interest research and advocacy organization with major influence in the north east. CTJ fights for; ”Fair taxes for middle and low-income families, Requiring the wealthy to pay their fair share, Closing corporate tax loopholes, Adequately funding important government services, Reducing the federal debt, and Taxation that minimizes distortion of economic markets" and removing frivolous government spending in the hopes of a more efficient government. Far out of reach goals like these caused McCain to only receive a rating of 50 percent from the CTJ in 2006. McCain’s voting record to support multiple tax increases could be to blame for this rating.

Wage Theft. Is It Really An Issue?

AFL-CIO writer James Parks interviewed Kim Bobo a labor union strategist who recently wrote” Wage Theft in America: Why Millions of Working Americans Are Not Getting Paid – And What We Can Do About It.”. I found her argument interesting and wished to share it. Bobo defines wage theft as any instance you don’t get paid for the work you do. This could be not being paid overtime pay when working extra hours or not being paid what you were supposed to be paid. Bobo suggests that the incident is wide spread and requires a massive labor movement to fix this growing problem. She urges for grassroots support in this process. Labor unions and worker centers already deal with many of the problems with wage theft. Bobo asked for community policing of wage theft, a more competence secretary of labor who is aware of wage theft and make the labor department more transparent and accountable, and fining employers for wage theft. When asked if she thought the new Obama administration would help end wage theft she said, I know this won’t be the top priority with the financial crisis and the need to rescue the auto industry. “But when you think about it, what better way is there to stimulate the economy than to make sure workers are paid? That’s going to go straight into our communities. It’s going to boost consumer spending. This is a very good way to invest in our communities.” I wonder if wage theft is truly a problem. It seemed to me she was making a small problem seem monumental. Although maybe she is correct in suggesting extra (deserved) money in the pockets of our labor force would boost consumer spending.

Free Trade With Columbia?

Another interesting story on NPR dealing with the economy and interest groups was a segment devoted to America and Canada having free trade with Columbia. Canadian’s president signed a bill allowing free trade with Columbia; the bill is currently being reviewed by parliament. Surprisingly President Bush had attempted to pass a bill for free trade with Columbia but was shut down by the Democratically controlled Congress. I’d like to study further this proposed bill and the incentives to free trade with such an extremely violent and corrupt country. Personally I feel free trade with Columbia would be a good thing and perhaps stimulate our economy and inspire Columbia to diverge from its violent ways. American and Canadian labor unions, human right organizations and economic interest groups all disputed and lobbied parliament and congress. Last year alone there were over 34 assassinations in Columbia of labor union leaders and this year the number grew to 41 assassinations. Another staggering stat is that Columbia’s coca fields have actually increased by 27% from last year. It seems that Columbia is still entrenched in its violent corrupt ways. But is this reason enough to not support economic stimulus? If you feel that trading with a country that has political and labor assassinations and its major export is one of the most dangerous drugs in the world then you’re really supporting isolationism. America has made trillions in the production, sales and trading of military arms to some of the most horrible oppressive regimes in the world for instance Iraq or Israel. I would be very interested in seeing the ramifications of free trade with Columbia either from the United States or Canada.

US Chamber Of Commerce and The Auto Industry

After hearing the NPR report I had to follow up with some research into what the US Chamber of Commerce was doing or saying about the automobile industry. The U.S. Chamber's Bruce Josten sent a letter to Secretary Paulson and Chairman Bernanke last week in support of the effort. The letter had interesting statistics that outlined the importance of the automobile industry. The automobile industry is responsible for little over 4% of the U.S. gross domestic product and it accounts for one in 10 American jobs that are related to automotive manufacturing. U.S. automakers directly employ approximately 355,000 American workers and indirectly employ nearly 5 million additional jobs through related industries. In the past 20 years the automotive industry has invested nearly a quarter of a trillion dollars in the US. Automakers also are among the largest purchasers of U.S.-manufactured steel, aluminum, iron, copper, plastics, rubber, electronics, and computer chips. The Chamber urged the government to use its broad regulatory authority and all other tools available, including the powers recently granted by EESA. The EESA is the Emergency Economic Stabilization Act commonly referred to as the bailout plan or rescue bill. All these numbers seem staggering. After reading these statistics and seeing the detrimental affects losing an American Auto industry would have on cities across the country much like the fears exhibited by the city in Ohio mentioned on NPR.

Automobile Bailout

Listening to NPR on my way home for Thanksgiving, I came across two interesting reports. Riding on the coattails of failed banks in the bailout plan the three major American car manufacturers (GM, Chrysler, and Ford) all lobbied congress for their own bailout plan. GM and Chrysler are in more financial trouble than Ford. GM and Chrysler went to Congress with hands extended looking for financial help. Ford although having 2 horrible quarterly earnings is not in the financial troubles of GM and Chrysler. Ford only asked that they be allowed to take government loans next year if their earnings do not turn around. Congress met the CEO’s with much scrutiny. One congressmen went on to say that the CEO’s flew here in private jetliners with tin cups in hand. Congress also asked if the CEOs were willing to cut their personal profits and pensions, GM’s CEO responded that his pension was fine how it was. I have to agree with congresses sentiment towards these American automobile moguls. Arriving on million dollar private airlines and securing double digit million dollar pensions how much trouble can the industry really be in? I feel like Private businesses should survive or die on their own and perhaps one less American automobile manufacturer would be a good thing.

However the Chamber of Commerce in Ohio is fearful of the plummeting sales of American automobiles. In this particular city in Ohio, like many other cities across the country, this city was built upon and still relies on the American automobile industry. Ford started a more fuel efficient European inspired manufacturing plant in Ohio that employees over 5,000 in the city. Not only are there those 5,000 employees directly under Ford but over 7,000 workers rely on the production of Fords plant. These 7,000 are tow truck drivers, car transporters, mechanics, and other companies that receive contracts through Ford. The COC understands that Fords falling numbers might mean a cut on newer projects like the euro-fuel efficient car production site in Ohio. This personal story helped me realize that it would be detrimental to America’s economy and work force for one of these American automobile manufacturers to go under. The loss of jobs, the lack of automobile competition, and less money being spent in our economy would prove horrible. Ohio’s case made me realize that some sort of aid should be supplemented to these companies to keep American workers working, spending and driving.