We all know the wealthy and well-connected are accustomed to playing by their own set of rules. Their high-powered lawyers and lobbyists write special exemptions for them the rest of us would never be able to get.
For instance, G.E. made $14.2 billion in profits yet paid no taxes to the federal government – in fact, they got a refund. Despite crashing our economy and getting a massive bailout from taxpayers, the big banks somehow evade meaningful financial industry regulations. Corporate CEOs are slashing the jobs, wages and retirement of rank-and-file workers, but still giving themselves record bonuses and golden parachutes.
It’s not that there aren’t rules that we should all live by to make this a more fair and equitable society. It’s just that the very wealthy know how to get around those rules by creating a maze of exemptions that allow them to gain even more power at our expense.
» Read more about: “Stop Special Interest Money Now Act” Isn’t What It Seems »
We all want safe roads and bridges—free of debris, potholes and cracks. How do we intend to pay for this? (Insert the sound of crickets here.)
Our roads and bridges don’t actually pay for themselves. Currently, the state and the federal government collect $.357 (set to increase to $.360 on July 1) and $.182, respectively, from every gallon of gas we purchase to pay for road maintenance, modernization and new facilities. However, the pot of money that goes towards building and maintaining our roads and bridges has gotten smaller and smaller over the last three decades for several reasons:
1. Cars have become more fuel efficient
The U.S. Environmental Protection Agency (EPA) has continued to set higher standards for auto manufacturers to improve the fuel efficiency of cars. Over the last decade, in part due to CAFE (Corporate Average Fuel Economy) standards, auto manufacturers have unveiled more attractive hybrid and alternative-fuel vehicles,
» Read more about: The Elephant in the Room — Raising the Gas Tax »
Today 1,000 new millionaires (and a few billionaires) are walking the planet, thanks to Facebook’s new IPO. Facebook has fundamentally changed the way people connect to each other and presents an unprecedented opportunity for advertisers to reach highly targeted markets. That explains its over-the-top, $104 billion valuation. What is not being talked about in the business sections is the technology that made Facebook possible. If you go to the “developer’s section” at the bottom of a Facebook page you will find this statement under “Open Source:”
“Facebook has been developed from the ground up using open source software. Developers building with Platform scale their own applications using many of the same infrastructure technologies that power Facebook.”
“Developed from the ground up” — i.e., by the open-source communities that allow people to freely use, distribute and modify source code in unending cycles of improvement. If Ben Mezrich’s Facebook history,
» Read more about: How Mark Zuckerberg Became a Billionaire »
Until recently the Internet, along with the devices that brought it to us and the platforms that have expanded its usefulness, held a certain cool, selfless allure. The Web was mostly the idea of young, rule-breaking rebels, and their insurgent mystique made them hero geeks. Browsing a favorite blog on our laptops, a cup of red-eye coffee nearby, we felt a part of the New. Then money began doing what it always does to young, rule-breaking rebels – it turned them into our parents, our landlords and our loan officers.
It began in earnest, I suppose, with last year’s tiff between Amazon.com and the state of California over Sacramento’s insistence that the online retail behemoth start collecting state taxes on its sales. Amazon eventually struck “compromises” with California and other states that mostly favored Amazon. Many of us in California smiled – we got an extra year of purchasing on the site without paying taxes.
» Read more about: How Our Internet Heroes Lost Their Cool »
New York City’s Public Advocate, Bill de Blasio, and the Coalition for Accountability in Political Spending (CAPS) have put together a nifty online chart called 6 Degrees of Walmart. It’s actually more than a chart – think of it as a kind of star finder that allows the user to locate eight constellations of alleged corporate malfeasance and consumer abuse committed by the retail giant. Click on its Gun icon and you’ll find out how Walmart, through its support of the American Legislative Exchange Council (ALEC), backs Stand Your Ground laws. Click the Dollar sign and you’ll learn how Walmart colludes with the Business Roundtable and others to protect corporate tax subsidies.
(Please note: The above image is not interactive; to interact, go to the 6 Degrees of Walmart site.)
There’s also an explanation of how Walmart tries to burnish its environmental and corporate responsibility cred through its “sustainability program”
[caption id="attachment_8972" align="aligncenter" width="432"] Cassidy Noblett[/caption]
This week the Los Angeles County Federation of Labor sent letters to every elected official in L.A. County (including Congress members), urging them to return all campaign contributions they may have received from Walmart – and to refuse future donations from the retail giant. The letter, which is signed by a broad spectrum of union leaders, juxtaposes Walmart’s alleged bribery scheme in Mexico with L.A. City Hall’s quick approval of the corporation’s permits for a new store in Chinatown. (The letter’s text appears below.)
“It doesn’t take campaign finance reform,” the signatories say, “to prevent Walmart from wrapping its tentacles around our political system in L.A. County.”
» Read more about: Labor to Electeds: Return Walmart Money! »
(The following post first appeared May 1 on Truthdig.)
By Bill Boyarsky
By chance, the revelation of how Apple evades millions of dollars in taxes broke three days before May Day, when workers of the world traditionally protest such injustice.
Although the Apple practices aren’t illegal, the dodging of taxes on revenue generated, to a large extent, by low-wage Chinese workers, was a perfect introduction to this year’s May 1 observance, highlighted by the Occupy movement’s call for strikes and demonstrations around the country. The goal: Protest corporate domination of an economy being pulled downward by growing income inequality and intractable unemployment.
The New York Times reported that the technology company has used loopholes to reduce its tax bills in 21 states and overseas by billions of dollars annually by creating subsidiaries in places with low-tax or no-tax policies.
» Read more about: Organizing for Change: Different Drummers, Common Cause »
The SEC is dragging its feet implementing a section of the Dodd-Frank reform that would require publicly traded companies to calculate the ratio between the CEO’s pay and that of the firm’s median pay package. The New York Times editorial board urges them to push forward.
Corporate lobbyists say it’s too complicated to figure out the math. They figured out how to create uber-complex financial products that untangled the global economy, but aren’t able to divide the CEO’s earnings (they must know) by the median employee pay?
Of course, the real reason they oppose the law is that they don’t want to add fire to the public debate about excessive CEO salaries – certainly while the rest of America struggles to pay bills, put kids through college and afford mortgage payments. Obscurity, not transparency, benefits the privileged.
Their opposition to useful information for investors and consumers is a replay of earlier legislative battles.
» Read more about: Why Can’t CEOs Do the Math on Their Pay? »
“About 100 Occupy protesters,” reports the Pasadena Star News, “seeking to reverse an eviction gathered Tuesday outside the Pasadena house of a Bank of America executive in the San Rafael neighborhood.” The newspaper said the home belonged to Raul Anaya, a B of A executive. The following LA Progressive post, by Occupy Fights Foreclosures member Cheryl Aichele, was written just prior to the action, which was designed to bring attention to the dire predicament of Dirma Rodriguez and other foreclosed homeowners.
By Cheryl Aichele
On Friday, David Redy — a partner at Redy & Smith— called Dirma Rodriguez, a widowed mother with a severely disabled daughter and four sons, who says she was fraudulently foreclosed upon by Bank of America. Allegedly during the conversation, Redy — who represents the bank— threatened Carlos Marroquin,
» Read more about: Bank of America Foreclosure Backlash in Pasadena »
By Rebecca Band
(This post first appeared May 7 on the Labor’s Edge blog site.)
One BILLION Dollars. That’s how much California gives away every year to big corporations, thanks to a wasteful tax loophole that actually incentivizes companies to close up shop in California and move those jobs elsewhere.
According to L.A. Times columnist George Skelton:
You might think a tax law that rewards companies for killing California jobs and resurrecting them in another state would be dumped. Very quickly. Especially if it also rewards them for selling off property here and rebuilding elsewhere. Or, put another way, if the law provides a tax incentive not to hire or invest in California in the first place. You’d repeal it. A no-brainer.
Makes no sense, except for the companies using the loophole while profiting from selling their products here in the nation’s largest consumer market.
» Read more about: State's Corporate Tax Breaks: Loopholes or Black Holes? »
The California State Teachers’ Retirement System (CalSTRS) has filed a lawsuit against current and former members of Walmart’s board of directors, and other company officers, charging them with gross violation of fiduciary duty in connection with the company’s Mexican bribery scandal. That scandal, extensively examined by a recent New York Times feature, revealed a corporation so eager to expand its Mexican operations that it ignored findings by its own investigators sent to look into the allegations.
CalSTRS’ move takes the form of a derivative-action suit – a suit nominally brought on behalf of Walmart against individuals whose actions damage the retail giant and potentially, investors such as CalSTRS.
CalSTRS is the second largest public pension fund in the United States and holds more than 5.3 million shares of Wal-Mart, valued at $313.5 million, accounting for 0.41 percent of CalSTRS global equities portfolio.
» Read more about: Teachers’ Fund Lawyers-Up Against Walmart Brass »
I received no less than 25 emails celebrating the passage of the 2035 SCAG RTP within the past few weeks. This stands for the Southern California Association of Governments’ Regional Transportation Plan and Sustainable Communities Strategy. Environmentalists, low-income groups and housing groups all cheered the vast improvements to the way regional planning organizations look at future development. This new, more comprehensive view ideally would address the twin goals of creating more economically vibrant communities and improving our environment.
ClimatePlan, the California Pan-Ethnic Health Network and MOVE LA, among other groups, have praised the projected greenhouse gas, “vehicle miles traveled (VMT)” and traffic congestion reductions, as well as the forward-looking goals of increasing non-motorized transportation use, such as bicycles and walking.
Yet while there is much to take heart in, I started to ask myself: Could the SCAG plan have aimed even higher?
I salute the planners and community activists who brought a progressive vision and spent many long hours working on shaping the plan into what it is.
» Read more about: Could Transportation Plan Have Dreamt Bigger? »
(Editor’s Note: Tomorrow is the deadline to collect signatures for the Long Beach hotel workers living-wage ballot initiative. In this post, activist Christine Petit shares her perspective on this historic effort. Her feature first appeared on the California Work & Family Coalition Web site.)
In 2008, I chose to make Long Beach, California, my home. I love Long Beach because it’s a diverse city and there are always interesting events and festivals going on. Many people are attracted to Long Beach for these reasons, if only for a weekend. In fact, Long Beach has made great strides to attract tourists, investing approximately $750 million into revamping downtown toward these ends over the last three decades.
Meanwhile, the hotel workers who take care of Long Beach’s tourists are struggling to provide for their families. The median annual income for full-time hotel and food-service workers in Long Beach was $23,538 in 2009,
» Read more about: Living Wage Law Could Go to Long Beach Voters »
Republican legislators in Michigan have a new target, the Michigan Restaurant Opportunities Center (ROC). Apparently at the behest of industry lobbyists, GOP Representative Joe Haveman proposed limiting the funding of public universities that allow their students to get internship credits for working with ROC.
The cause is rather specific: a few interns participated in a picket line outside Andiamo, an Italian restaurant in Dearborn, near Detroit. Workers had sought to get paid overtime and get the owner to stop making them pay for their uniforms, among other demands. The company’s response (alleged surveillance and intimidation) led to several NLRB charges and a AFL-CIO sponsored boycott. The good news is, the dispute was settled back in May, 2011. The protests in question occurred back in 2009 and 2010.
As this blog post shows, restaurant industry folks weren’t too pleased, and thus the proposed new rule. The governor’s not in favor,
By Zack Kaldveer
Consumer Federation of California
As California families continue to reel from the most severe economic downturn since the Great Depression, health insurance premium rates have soared by 153 percent since 2002, nearly five times the rate of inflation.
Businesses are finding it difficult to pay for these rate hikes, and pass the increased costs on to workers. Business owners and employees are forced to absorb these rising costs or search for less expensive – and less comprehensive – coverage options.
This injustice isn’t so hard to comprehend considering only four insurance companies control 71 percent of the California market – setting premiums behind closed doors and without accountability.
While businesses and families struggle to pay unaffordable premiums that have double digit increases every year and workers face high unemployment and stagnant wages, Blue Shield lavished its CEO with a $4.6 million salary and then proposed premium rate hikes as high as 59 percent in 2011 (but later revoked the proposal due to a massive public outcry).
» Read more about: Ballot Proposal Would Regulate Health Insurance Rates »
(Note: This post first appeared April 28 on L.A. Progressive.)
According to US Secretary of Labor Hilda Solis, more people die in the American workplace in a single year than have been lost in nine years of war in Iraq. “Each day in America, twelve people go to work and never go home,” she told the audience at the Action Summit for Worker Safety and Health held at East Los Angeles Community College on April 26, one of many events leading up to Workers Memorial Day, April 28, an annual date of remembrance for those killed, injured, or sickened on the job.
María Elena Durazo, Executive-Secretary-Treasurer of the Los Angeles County Federation of Labor, AFL-CIO, reported there were 500 work-related deaths in 2011 in California and “Workers are still being fired for speaking out in order to avoid death.”
This loss of life and countless serious injuries,
» Read more about: Killer Jobs: Policing America's Dangerous Workplaces »