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Posts Tagged ‘labor vs capital

Can American Labor Unions Be Relevant Again?

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      “I believe leaders of the business community, with few exceptions, have chosen to wage a one-sided class war today in our country — a war against working people, the unemployed, the poor, the minorities, the very young and the very old, and even many in the middle class of our society.”

      “I would rather sit with the rural poor, the desperate children of urban blight, the victims of racism, and working people seeking a better life than with those whose religion is the status quo, whose goal is profit and whose hearts are cold. We intend to reforge the links with those who believe in struggle: the kind of people who sat down in the factories in the 1930’s and who marched in Selma in the 1960’s.”

      – UAW President Douglas Fraser in 1978

Jerry Tucker Labor Leader and ActivistFor decades, American workers have progressively watched their incomes and working conditions decrease and their opportunities lowered. As a result, Americans continue to view the economy and their families’ prospects negatively. Every American knows why these reduced expectations are occurring, but no one seems to have a definitive answer.

On March 12, 2005 at the conference on “Work and Social Movements in the United States” at University of Paris – Sorbonne, the late Jerry Tucker, labor leader and activist, told the audience,

”America’s 21st century workers need a labor movement committed to fight alongside them against those ‘who would destroy us and ruin [their] lives’ and leaders who have the courage to launch a strategic counter-offensive against the aggression on all fronts. If there are such leaders, they can start by openly ‘speaking truth to power’ and denouncing corporate America’s war on workers and working class communities, naming the ideological nest the perpetrators swarm out of, and condemning the overwhelming government backing they receive.

Yes, today many American workers are cynical and, collectively, do have reduced expectations. They know all too well that their quality of life is under attack and, for many of them, that unionism has not held up its end in the struggle. That was also true in the early 1930s. But that does not mean now, as then, that the willingness to fight back, the urgency to resist injustice, and the desire for dignity have been driven from the consciousness of our sisters and brothers. They have it in them to engage in struggle when they perceive the struggle has immediacy in their lives, when the injustices are real, and when they know they will not be alone. There are among them good and even great leaders for the struggle to come. A program that reconnects with workers built around their needs at the base, not just the notions of distant bureaucrats, is the way to start rebuilding the labor movement.

With history as our guide, the revitalization of the labor movement also cannot occur without a revitalization of an independent left within labor. U. S. labor as we know it today, and as is demonstrated by the narrow limits of the AFL-CIO debate, lacks the credibility to form the multi-lateral and multi-racial relationships for a new, dynamic social movement. A revival of progressive, socially-conscious left thinking internally could alter that reality and open up many new options.

U. S. labor needs a counter-offensive. And, the centerpiece of labor’s counter-offensive, with or without all current labor leaders, should be derived from a new vision of America based on justice and the creation of a new social intersection for all of those abused by the nexus of corporation and state and today’s neoliberalism.

A true crisis-resolution strategy must re-introduce a culture, and shared vision, of struggle and of common defense, through worker-to-worker, union-to-union, and social-movement-to-social-movement solidarity. Under one broad social banner, we need to declare war on poverty, racism, sexism, imperialism, and the denial of the fundamental right to affordable health care for all, full employment, shorter work-time, and many others of the true values due all participants in a just society.

Crisis-bound, U.S. labor is at a crossroads. The direction it takes will impact, for better or worse, the lives of a majority of all Americans.” [my emphasis]

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Four GOP Presidential Icons on Tax Fairness and Values

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Three Republican Presidential Icons Who Advocated Tax Fairness

Bruce Bartlett, in the Fiscal Times, makes a really good argument for raising taxes on the wealthy, especially on those who receive capital gains, dividend, and inheritance tax breaks.

What is novel about Bartlett’s argument is that he uses four Republican Presidential icons to make his case.

At least through the 1980s, special tax breaks, such as those for dividends and capital gains, were viewed as unfair and unjustified. Indeed, Ronald Reagan was among those who decried the capital gains break because it meant that rich people, who get most of their income from capital, paid less taxes than the average working man. Consequently, as part of the Tax Reform Act of 1986, he agreed that income from capital gains and wages ought to be taxed at the same rate.

Reagan was building on long tradition by Republicans of demanding fairness in the tax code, which, among other things, meant making sure that capital and labor were treated equally. For example, in his first State of the Union Address in 1861, Abraham Lincoln said, “Labor is prior to and independent of capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.”

In 1910, Theodore Roosevelt excoriated big corporations and wealthy men for rigging the system in their favor and not paying their fair share of taxes.

    The true friend of property, the true conservative, is he who insists that property shall be the servant and not the master of the commonwealth; who insists that the creature of man’s making shall be the servant and not the master of the man who made it. The citizens of the United States must effectively control the mighty commercial forces which they have themselves called into being….

    We grudge no man a fortune in civil life if it is honorably obtained and well used. It is not even enough that it should have gained without doing damage to the community. We should permit it to be gained only so long as the gaining represents benefit to the community. This, I know, implies a policy of a far more active governmental interference with social and economic conditions in this country than we have yet had, but I think we have got to face the fact that such an increase in governmental control is now necessary.

    No man should receive a dollar unless that dollar has been fairly earned. Every dollar received should represent a dollar’s worth of service rendered – not gambling in stocks, but service rendered. The really big fortune, the swollen fortune, by the mere fact of its size acquires qualities which differentiate it in kind as well as in degree from what is possessed by men of relatively small means. Therefore, I believe in a graduated income tax on big fortunes, and in another tax which is far more easily collected and far more effective – a graduated inheritance tax on big fortunes, properly safeguarded against evasion and increasing rapidly in amount with the size of the estate.

In 1954, Dwight Eisenhower said that everybody should pay their fair share and denounced unjustified tax cuts. “An unwise tax cutter, my fellow citizens, is no real friend of the taxpayer,” he said.

In short, the real debate on the Buffett rule is about fairness. Its particulars are less important – especially since it has no chance of passage at this time – than the debate that will accompany it. If Republicans are successful in conveying the message that it’s okay for rich people to pay less than working people then this will frame the forthcoming budget debate in a particular way….

If history proved any answers, the one answered by these four Republican presidents is that labor should be taxed at the same or lesser rate than capital gains and inheritance because labor is inherently worth more to society.

Something to think about as discussions on taxes and tax rates continue throughout the year.

Related:

Have the Rich Ever Paid a Fair Share of Taxes? (Part 1)

Have the Rich Ever Paid a Fair Share of Taxes? (Part 2)

Written by Valerie Curl

April 20, 2012 at 10:35 AM

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