How the Tax Bills Target Good Government, Workers, and Young People

Anne Alstott –

If the details of the House and Senate tax bills under consideration in Washington make your eyes glaze over, it’s because they’re supposed to.  The tax-writers, as they often do, are using the technicalities of the tax law to mask major changes in national economic policy.  It’s fairly well-known that both bills are stacked in favor of the wealthy.  But the details of the tax bills (please don’t call them “tax reform”) contain a neoliberal agenda that, if enacted, will punish good governance, reward capital over labor, and favor the old over the young.

The United States, perhaps more than any other developed country, shapes its economy via the tax law.  Neoliberals often say that the United States – unlike socialist Europe – has no government-sponsored industrial policy. And it is true that (for the most part) we don’t have big spending programs that subsidize business or  have big bureaucracies that manage the economy. Instead, our politicians hide economic and social policy in the tax code and leave administration to the IRS. In 2015, for instance, the United States devoted $1.2 trillion to tax-based subsidies – an amount that exceeded federal discretionary spending in that year.

Paul Ryan

So, even as politicians rail publicly against tax loopholes, both parties use the tax code to reward favored industries and citizens. The current tax code, for instance, favors owners of capital, wealthy dynasties, highly-paid workers, and industries including tech and pharmaceuticals as well as finance, insurance, and real estate.

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Autocracy at Work: Understanding the Gothamist Shut Down

Sharon Block and Benjamin Sachs – 

Last week, billionaire Joe Ricketts abruptly shut down the local news websites Gothamist and DNAinfo.  The closure came a week after the sites’ newsroom employees voted to join Writers Guild East, a union that is the collective bargaining representative for reporters and editorial staff in a rapidly growing number of progressive, on-line media outlets.  Hamilton Nolan, a senior writer for Splinter and a lead organizer for the Writers Guild, made a compelling case in a New York Times op-ed that Ricketts did not shutter the company because of what the union would mean for the sites’ economic prospects. After all, the union hadn’t yet made a single demand. Instead, in Nolan’s words, Ricketts destroyed the company “out of spite.”

dnainfo-and-gothamist-shut-down-one-week-after-editorial-staff-unionizes-wgae-org-campaign

But why do unions infuriate people like Joe Ricketts? Why would Ricketts prefer having no business at all than a unionized business? The answer, we think, is suggested by something Ricketts said during the union’s organizing drive: “As long as it’s my money that’s paying for everything, I intend to be the one making the decisions about the direction of the business.” In other words, Ricketts expects that his financial power buys him the right not just to own a business, but to control his business’ workforce unburdened by the voices and views of that workforce

Unionization is, and always has been, the most effective way that working people can wrest a bit of control back from owners like Ricketts. It operates through the simple logic of collective action: by bargaining together, people increase their leverage and gain a voice in shaping what their work lives are like. Unions move workplaces away from institutions governed autocratically – by those with the ‘money that pays for everything’ – and toward institutions that are governed democratically, by including the insights and opinions of those who do the work. Continue reading

Subsidize Worker Organizing

Will Bloom –

Advocates and scholars agree that the labor movement is in dire straits: shrinking union density, fewer successful elections, Trump appointees to the NLRB, and proliferating state free-rider laws all threaten labor’s power.  Everyone knows that there’s a problem.  The disagreement, however, is in the nature of the problem—and consequently, how to solve it.

I submit that, when we think about legislative interventions aimed at revitalizing the labor movement, we have to change the question from “How do we make it easier for unions to win recognition?” to “How do we make it easier for workers to organize?” Policymakers have long felt more comfortable focusing on the former question, brainstorming ways to help workers obtain legal recognition from a government agency, the NLRB. What they find more difficult is developing policies that help workers actually build those particularized, complex social relationships that underlie organizing and enable collective action. But legislation can empower workers and organizers in the most direct possible way: paying them to organize. Continue reading