Democrats’ Reckless Taxing-And-Spending Spree Is A ‘Big Labor Bonanza’

‘President Biden’s Nearly $2 Trillion Spending Bill Passed By The House Is Stocked With Benefits For Organized Labor’

“President Biden’s nearly $2 trillion spending bill passed by the House is stocked with benefits for organized labor, including a measure aimed at helping unionized companies win billions of dollars in new green-energy projects. The legislation also has labor-backed measures to raise fines for violations of workplace safety and other rules, expands funding for home-care services provided by union workers and allows union members to write off some of their dues. If approved by the Senate, the bill would be ‘the most pro-worker bill signed into law in almost a century,’ said Dan Mauer, the director of government affairs for the Communications Workers of America …” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

• “The successes by unions in the legislation reflect what labor leaders hope is a political comeback by organized labor … Unions strongly backed the election of Mr. Biden and are among the biggest financial donors to the Democratic Party and its candidates.” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

• “The bill aims to combine two longstanding goals of the party: Expanding labor unions and fighting climate change. Under the bill, companies that seek federal tax incentives for green-energy public works projects must pay the local prevailing wage and offer worker apprenticeships. Supporters say the measure is designed to put union and nonunion companies on a level playing field in competing for federal contracts…. Lobbyists for unions succeeded in attaching the pro-labor requirement to $230 billion of the roughly $300 billion in new government tax incentives for green-energy spending. The newer green-energy industry is largely not unionized, according to Tim Schlittner, a spokesman for the AFL-CIO.” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

AMERICAN FEDERATION OF TEACHERS PRESIDENT RANDI WEINGARTEN: “Labor is not only all over supporting it, it has helped craft it.” (“Unions Squeeze Pro-Labor Priorities Into Democrats’ Spending Bill,” Politico, 9/21/2021)

• “Unions are running lobbying campaigns to keep their priorities in the bill when the Senate takes it up …  The United Auto Workers organized calls and emails to lawmakers to support the pro-union provisions in the electric-vehicle tax credit proposal of the bill … A union spokesman said the pressure campaign will now focus on the Senate, and specifically on [Sen. Joe] Manchin [D-WV], who has said he doesn’t support the union incentives in the vehicle tax credit. The Communications Workers of America is planning events in the House districts of members who voted for the bill’s passage …” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

Big Democrat-Aligned Unions Like UAW, CWA, AFT, And SEIU Got Major Provisions They Wanted In Democrats’ Reckless Taxing And Spending Spree

“Individual unions also scored wins, including extra tax credits for consumers who buy electric vehicles built in plants staffed by the United Auto Workers.” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

• “Michigan Democrats Rep. Dan Kildee and Sen. Debbie Stabenow wrote the electric-vehicle tax credit after collaborating with the United Auto Workers and General Motors Co. about the importance of including an explicitly pro-union component, according to Mr. Kildee.” (“Tesla, Toyota Accuse Biden’s EV Tax Credit of Putting Unions Over the Environment”, The Wall Street Journal, 11/21/2021)

“The NewsGuild-CWA secured a payroll tax credit for news organizations that hire and retain local journalists in the U.S. …” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

“More broadly, Mr. Biden’s domestic-spending package includes billions of dollars in federal funds for education and social safety net programs championed by labor unions. The legislation calls for $110 billion to launch a universal prekindergarten program, an idea backed by the American Federation of Teachers. It allocates $150 billion to provide seniors and disabled Americans with more medical care in their homes. That provision is supported by the Service Employees International Union, which represents home-care workers, among others.” (“Biden’s Nearly $2 Trillion Social Spending and Climate Bill Is a Boon for Unions,” The Wall Street Journal, 11/26/2021)

In One Of Their Most Egregious Favors For Unions, Democrats Created An Above-The-Line Tax Deduction For Union Dues, While Failing To Extend One For Charities

“Section 138514. Allowance of Deduction for Certain Expenses of the Trade or Business of
Being an Employee. This provision allows for up to $250 in dues to a labor organization be claimed as an above-the-line deduction. The provision is effective for taxable years beginning after December 31, 2021.” (“Build Back Better Act — Rules Committee Print 117-18 Section-By-Section,” U.S. House of Representatives Committee on Rules, 11/03/2021)

PAGE 2323: “SEC. 138514. ALLOWANCE OF DEDUCTION FOR CERTAIN EXPENSES OF THE TRADE OR BUSINESS OF BEING AN EMPLOYEE.
(a) ABOVE-THE-LINE DEDUCTION FOR UNION DUES.—Section 62(a)(2) is amended by adding at the end the following new subparagraph:
‘(F)  UNION DUES.— The deductions allowed by section 162 which are both—‘(A) not in excess of $250, and ‘(B) attributable to a trade or business consisting of the performance of services by the taxpayer as an employee if such deductions are for dues paid to a labor organization described in section 501(c)(5) and with respect to which such taxpayer remained a member through the end of the taxable year.’
(b) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2021.” (H.R. 5376, 117^th Congress)

Yet Their Bill Would Also Allow The Above-The-Line Charitable Tax Deduction To Expire At The End Of This Year

There is no extension of the above-the-line charitable tax deduction, which allows taxpayers taking the standard deduction to deduct charitable contributions, in House Democrats’ tax proposals. (Joint Committee on Taxation, JCX-46-21, 11/19/2021; U.S. House of Representatives Ways and Means Committee, “Markup of the Build Back Better Act,” Accessed 9/23/2021)

“Five provisions discussed in this report expire at the end of 2021…. Three provisions that were first enacted in the Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) and originally scheduled to expire in 2020 have been extended through 2021: (1) the charitable deduction for nonitemizers …” (“Temporary Individual Tax Provisions ("Tax Extenders"),” Congressional Research Service, R46772, 4/26/2021)

• “Individuals may take a charitable deduction if they itemize deductions on their tax returns. The Coronavirus Aid, Relief, and Economic Security (CARES) Act (P.L. 116-136) provided for a deduction for cash donations for nonitemizers of up to $300 through December 31, 2020. That is, taxpayers can deduct these amounts even if they elect the standard deduction. This provision was extended through December 31, 2021, by the Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted as Division EE of the Consolidated Appropriations Act, 2021 (P.L. 116-260).” (“Temporary Individual Tax Provisions ("Tax Extenders"),” Congressional Research Service, R46772, 4/26/2021)

For The UAW, Democrats Included A Tax Credit For Electric Vehicle Purchases That Offers Extra Money For Vehicles Purchased From Union Plants

THE WALL STREET JOURNAL EDITORIAL BOARD: “Behold [Democrats’] gussied-up $12,500 electric-vehicle handout…. An electric vehicle costs between $10,000 and $15,000 more than a similar gas-powered model, which is why they remain a luxury item purchased mainly by coastal dwellers who have cash to burn. Democrats are effectively conceding this in their bill…. Eligibility would extend to couples making up to $800,000 (and individuals up to $400,000).” (Editorial, “Green Welfare for the Rich,” The Wall Street Journal, 9/17/2021)

• “The bill in the House Ways and Means Committee would extend the existing $7,500 EV tax credit through 2031 and remove the 200,000 car per-manufacturer cap, which both GM and Tesla have hit. Currently there’s no vehicle price-limit on the credit, so people can use it to buy electric Porsches. Anyone who can afford a Porsche doesn’t need government help to buy one.” (Editorial, “Green Welfare for the Rich,” The Wall Street Journal, 9/17/2021)

• “Democrats are also sweetening the tax credit by $4,500 for EVs produced at facilities ‘under a union-negotiated collective bargaining agreement’ and an additional $500 if their battery cells are made in the U.S. This is to help U.S. auto makers whose plants are unionized and have higher labor costs. They also want to help their United Auto Workers friends organize Tesla and foreign-owned plants. The $4,500 fillip would put non-unionized manufacturers at a competitive disadvantage, so they have no choice but to roll over to the UAW.” (Editorial, “Green Welfare for the Rich,” The Wall Street Journal, 9/17/2021)

• “Electric vehicles make up a mere 3% of car sales in the U.S. despite the current $7,500 federal tax credit and generous state subsidies. About 40% of the country’s EV registrations are in California, which offers EV buyers rebates up to $7,000, access to carpool lanes and lower electric rates. Nearly 80% of battery-powered cars sold last year in California were Teslas.” (Editorial, “Green Welfare for the Rich,” The Wall Street Journal, 9/17/2021)

“According to Autos Drive America, only two of more than 50 electric vehicles on the market would be eligible for the whole tax credit. Both are Chevy Bolts, made by the UAW-organized General Motors…. Limiting consumer choice means fewer people will buy electric vehicles, undermining Mr. Biden’s goal of accelerating cleaner transportation, said Jennifer Safavian, chief executive of Autos Drive America. ‘If this is really for the environment, this is not the way to do it,’ she said. ‘It’s a pro-union proposal, and they are admitting that.’ (“Tesla, Toyota Accuse Biden’s EV Tax Credit of Putting Unions Over the Environment”, The Wall Street Journal, 11/21/2021)

SEN. JOE MANCHIN (D-WV): “When I heard about this, what they were putting in the bill, I went right to the sponsor and I said, ‘This is wrong. This can’t happen. It’s not who we are as a country. It’s not how we built this country, and the product should speak for itself.’ … We shouldn’t use everyone’s tax dollars to pick winners and losers. If you’re a capitalist economy … you let the product speak for itself, and hopefully, we’ll get that, that’ll be corrected.” (“Manchin Opposes Additional EV Tax Credit Tied To Unions,” Roll Call, 11/12/2021)

SEN. JOHN BARRASSO (R-WY), Senate Energy & Natural Resources Committee Ranking Member: “The Democrats’ plan does play favorites, however, and what they really focus on doing, interestingly, is hurting the working folks in rural America to give tax breaks to wealthy families in big cities in liberal States. The reason I tell you this is that this bill includes huge subsidies for people who buy and drive electric vehicles. … Well, the government is already giving billions of taxpayer dollars to electric vehicle manufacturers and for owners. Nearly 80 percent of the tax credits go to households making at least $100,000 a year. … And that is what the Democrats are offering. This bill would give up to $12,500 to married couples to buy electric vehicles--12,500. What kind of income? Maybe there is an income limit. I mean, you don’t want to give it to rich people. So the Democrats said: OK, if you are a single person earning up to $400,000 a year, you can get a subsidy. If you are a married couple earning up to $800,000 a year, you still get the subsidy because, boy oh boy, we are going to push those electric vehicles for the big cities and for our Democrat colleagues.” (Sen. Barrasso, Congressional Record, S6574, 9/21/2021)

At The Same Time, The Biden Administration Is Writing New Regulations ‘To Drastically Ramp Up Sales Of Electric Vehicles,’ Cheered On By The Auto Makers And Unions That Stand To Benefit

“President Biden made dual moves to reduce greenhouse gas emissions, imposing tougher fuel-efficiency standards on auto makers and challenging them to drastically ramp up sales of electric vehicles by 2030. Mr. Biden on [August 5^th] signed an executive order setting a target for electric vehicles, hydrogen-fuel cell and plug-in hybrid vehicles to make up 50% of U.S. sales by 2030—a voluntary goal that auto makers said would entail federal support for vehicle charging stations and consumer tax incentives. Separately, the Environmental Protection Agency proposed new rules that would require auto makers to achieve a fleetwide average fuel-efficiency equivalent of 52 miles per gallon by the 2026 model year, using an industry measure that takes into account both fuel efficiency and emissions reductions.” (“Biden Toughens Fuel-Efficiency Standards, Challenges Auto Makers to Sell More EVs,” The Wall Street Journal, 8/05/2021)

THE WALL STREET JOURNAL EDITORIAL BOARD: “What a spectacle. We’re referring to the political advertisement that auto makers staged with President Biden on Thursday endorsing the Administration’s stricter fuel-economy rules and climate agenda. Behold Big Business colluding with Big Government to grab subsidies and raise consumer prices. The White House previewed the electric-vehicle promo with joint statements from auto makers, the United Auto Workers and California Gov. Gavin Newsom. Ford, GM and Stellantis (formerly Fiat Chrysler) announced their ‘shared aspiration’ for electric cars to make up 40% to 50% of their sales in 2030. EVs make up a mere 3% of current U.S. sales, and most are Teslas.” (Editorial, “The Electric Vehicle Welfare State,” The Wall Street Journal, 8/05/2021)

• “[A]uto makers previously struck a deal with California to reduce their greenhouse gas emissions after the Trump Administration eased the Obama corporate average fuel-economy (Cafe) standards. The Biden Administration is adopting the California deal as the framework for its revised Cafe rules from 2023 to 2026. The mileage mandate will increase by 10% in 2023 from the existing standards in 2022 and then by 5% each year through 2026 to 52 miles per gallon by 2026. They will also earn extra regulatory credits for producing more EVs…. [A]uto makers will only be able to achieve the stricter Biden targets by manufacturing more EVs. Thus the companies are lobbying for more subsidies: If government mandates that they build EVs, it must then pay people to buy them. EV buyers in some states like California can already pocket $10,000 or more in taxpayer largesse.” (Editorial, “The Electric Vehicle Welfare State,” The Wall Street Journal, 8/05/2021)

• “Auto makers also need a major battery technology breakthrough to reduce the manufacturing cost—about $10,000 to $12,000 more on average than gas-powered cars—increase their range and reduce their charge time. For now most companies are losing thousands of dollars on every EV they sell, which they compensate for by charging more for the gas-powered trucks and SUVs that the vast majority of Americans still prefer. The companies hope to lower EV costs over time through economies of scale in manufacturing. This is another reason they are begging for government subsidies to increase sales. But auto makers don’t want to drive the electric highway alone because then they could lose money while others churn out profits. The solution? Collusion with the Biden Administration to regulate competition across the industry and raise prices for consumers.” (Editorial, “The Electric Vehicle Welfare State,” The Wall Street Journal, 8/05/2021)

Another Special Favor Included By Democrats Is An Expansion Of Medicaid Payments For Home Health Care Workers The SEIU Expects To Organize And Then Siphon Dues From

THE WALL STREET JOURNAL EDITORIAL BOARD: “State Medicaid programs spend about $40 billion on nursing homes and $76 billion on in-home and personal care annually. Most states have been shifting more long-term care to homes because it is less expensive. Many elderly also prefer to stay in their homes, which is understandable when their health allows it. Mr. Biden wants to spend $400 billion to expand Medicaid in-home and ‘community-based’ care (e.g., adult day care), increasing annual spending by 50%.... This is where the SEIU comes in. The union has been able to exploit Medicaid home-care programs to expand its membership with help from state Democratic lawmakers. Many home-care workers are family members or hired by families. But since Medicaid pays for home care, Democratic states have deemed them public employees and designated the SEIU as their exclusive representative for collective bargaining. The union then bargains with the same politicians the union supports in elections to deduct member dues automatically from home-worker Medicaid payments.” (Editorial, “The SEIU as ‘Infrastructure,’” The Wall Street Journal, 4/04/2021)

• “According to the Freedom Foundation think tank, states diverted $150 million in 2017 from caregiver Medicaid payments to unions. This money finances labor advocacy and Democrats. According to the Center for Responsive Politics, Democrats have benefitted from 99% of SEIU political spending over the past three decades.” (Editorial, “The SEIU as ‘Infrastructure,’” The Wall Street Journal, 4/04/2021)

FREEDOM FOUNDATION’S MAXFORD NELSON: “A mid the fast-paced congressional talks over President Joe Biden’s budget-busting Build Back Better Act (BBBA), the legislation’s massive expansion of federal Medicaid funding for in-home care has thus far received little scrutiny. Unfortunately, the legislation is cynically engineered to steer potentially billions of Medicaid dollars to labor unions, forcing hundreds of thousands of home care aides into supporting far-left political advocacy and saddling taxpayers with wasteful programs. Medicaid has long paid for eligible adults with functional disabilities to receive long-term care. Recent decades have seen a shift towards providing such services in the client’s home, a model that minimizes costs and maximizes the client’s independence compared to institutionalized settings. Beginning in the 1990s, home care aides serving Medicaid clients became the target of union organizing campaigns. Hundreds of thousands of Medicaid-paid caregivers in at least eight states are now unionized, generating about $150 million in dues for unions such as SEIU and AFSCME in 2017 alone.” (Maxford Nelson, “How the Build Back Better Act Steers Billions of Medicaid Dollars to Labor Unions,” National Review, 11/29/2021)

• “In 2014, the U.S. Supreme Court ruled in Harris v. Quinn that the First Amendment protects ‘quasi-public employees,’ such as Medicaid caregivers contracting directly with the state, from being required to pay union dues. Ever since, unions have sought to circumvent the ruling at every turn. In 2018, Washington State lawmakers adopted union-backed legislation to privatize the home-care workforce, transforming caregivers from ‘quasi-public employees’ to employees of a private company who, in Washington and 22 other states lacking right-to-work protections, could be forced to pay union fees…. Following Washington’s ignoble example, [Democrats’ federal social spending bill] conditions an increase in Medicaid funds on states’ adopting an ‘agency with choice’ model for their HCBS (Home and Community-Based Services) programs, precisely the arrangement put in place by Washington lawmakers to circumvent Harris.” (Maxford Nelson, “How the Build Back Better Act Steers Billions of Medicaid Dollars to Labor Unions,” National Review, 11/29/2021)

Democrats Have Admitted Their Aim Is To ‘Give These Workers A Voice To Advocate Through Organizations Like SEIU’ And Have Been Campaigning For The Bill With SEIU Members

REP. ROBIN KELLY (D-IL): “Take home care for example. Ten thousand people are turning 65 every day in our country, and the need for skilled caregivers has never been more urgent…. Fueling new jobs that pay a living wage and give these workers a voice to advocate through organizations like SEIU would lift up the Black and Latina women, who do the majority of home care work both in my home state of Illinois and across the nation…. The scale of the crisis we face is daunting, to be sure, but by investing in home- and community-based care through the Build Back Better Act, we can create more home care jobs. We can transform them into living-wage jobs with the opportunity to join a union …” (Rep. Kelly, Op-Ed, “Congresswoman Robin Kelly: Investing In Home Care Is Investing In Black Women,” The Grio, 10/01/2021)

“In Allentown, Penn., Senator Bob Casey, joined SEIU Healthcare Pennsylvania member Lynn Weidner … In California, SEIU 2015 member Paul Henderson joined Rep. Josh Harder. In Oregon, SEIU 503 members Gloria Arroyo Martínez and José Arroyo welcomed Rep. Suzanne Bonamici …” (“In Walk-A-Days And Town Halls, Home Care Workers Urge Congress To Invest In Care,” SEIU Blog, 9/08/2021)

The SEIU Itself Has Hardly Been Shy In Promoting This Medicaid Spending As ‘A Real Turning Point … In Our Movement To Win Unions For Every Worker’

MARY KAY HENRY, SEIU INTERNATIONAL PRESIDENT: “We have a chance to turn home care, the fastest-growing job in America, from poverty-wage employment into a good union job. It could be a real turning point … in our movement to win unions for every worker … The solution is clear. Congress must pass the Build Back Better agenda through reconciliation…. The Build Back Better agenda includes $400 billion for our home care system, which would create more than a million good, living-wage care jobs with the chance for workers to join a union …” (Mary Kay Henry, Op-Ed, “The Build Back Better Plan is a Win for America's Home Care Workers”, Newsweek, 90/9/2021)

SEIU: “In at least 28 digital and in-person actions in seven states and Washington, D.C., long term care workers, allies and partners issued a unified demand to Congress and President Joe Biden … In Washington, D.C., a mobile truck showed a video on how home care workers are fighting to make it easier to join a union to change the future of long term care, and screened thousands of signatures urging Congress and Pres. Biden to create good union home care jobs and to put care at the heart of our nation’s recovery.” (“Nursing Home, Home Care Workers Send Message To Washington, DC: Care Is Essential!,” SEIU Blog, 3/26/2021)

SEIU: “Home care workers and consumers shared their daily lives with members of Congress to urge them to support a $400 billion investment in care that would make it easier for seniors and people with disabilities to get the care they need, and create good, union jobs for care workers…. SEIU members and not-yet-union workers have also been attending town halls and urging members of Congress on social media to support the Build Back Better plan.” (“In Walk-A-Days And Town Halls, Home Care Workers Urge Congress To Invest In Care,” SEIU Blog, 9/08/2021)

Also Included Are Provisions Of The PRO Act, ‘An Overhaul Of U.S. Labor Law Democrats Drafted To Resuscitate Tapering Union Membership’ That ‘Could Constitute The Biggest Pro-Union Shift In U.S. Labor Law’ Since 1935

“Unions are lobbying fiercely and spending liberally in support of Democrats’ multitrillion-dollar social spending package … Tucked amid the investments in child care, higher education and clean energy are below-the-radar provisions that would make it easier for workers to organize, such as giving the National Labor Relations Board sharper teeth and empowering it to conduct union elections online. Both of those policies are also included in the Protecting the Right to Organize Act — an overhaul of U.S. labor law Democrats drafted to resuscitate tapering union membership …” (“Unions Squeeze Pro-Labor Priorities Into Democrats’ Spending Bill,” Politico, 9/21/2021)

• “The most consequential language would empower the newly Democrat-controlled NLRB, responsible for implementing the NLRA, to fine offending employers up to $100,000 for each violation. … Currently, the NLRB doesn't have the authority to penalize businesses. Giving it that power would not only discourage management interference in union organizing efforts, but raise revenue for the spending package’s other provisions.” (“Unions Squeeze Pro-Labor Priorities Into Democrats’ Spending Bill,” Politico, 9/21/2021)

• “The reconciliation bill also includes provisions that would expand OSHA and Wage and Hour Division penalties, and provide additional funding for the NLRB — $350 million over five years, or $70 million annually — in part to implement the additional enforcement, which a committee aide said lawmakers expect to be aggressive. The agency would be required to spend $5 million of the new cash on shifting its elections online, a move that Democrats and unions have been pushing for years and which experts say would make it easier for workers to organize.” (“Unions Squeeze Pro-Labor Priorities Into Democrats’ Spending Bill,” Politico, 9/21/2021)

“Union officials are pouring time, money and energy into making sure the provisions — which they helped shape — make it across the finish line. If they are successful, it could constitute the biggest pro-union shift in U.S. labor law since the National Labor Relations Act was enacted in 1935, labor experts said.” (“Unions Squeeze Pro-Labor Priorities Into Democrats’ Spending Bill”, Politico, 9/21/2021)

THE WALL STREET JOURNAL’S KIMBERLY STRASSEL: “Thus the Protecting the Right to Organize Act—a sweeping bill that would empower unions to force Americans into their ranks. The PRO Act would nullify all 27 state right-to work laws, strip companies of basic rights to make the case to employees against unionization campaigns, give the NLRB power to impose sweeping fines on supposed corporate labor violations, outlaw most independent contractors, and let unions bully workers into agreeing to unions via public ‘card check’ pledges rather than secret ballots. Unions have made clear that PRO Act passage will be their only measure of this administration and Congress. In a call [in April], union leaders told Senate Democrats’ campaign arm it risks losing union money and support in 2022 if it didn’t get with the PRO-gram. AFL-CIO spokesman Tim Schlittner recently warned that while Mr. Biden’s first 100 days were nice and all, success would ‘require the Senate to pass the PRO Act.’” (Kimberly Strassel, “Biden’s Big Labor Bind,” The Wall Street Journal, 5/20/2021)