by Ron Jacobs / February 21st, 2011
              Some men rob you with a six gun/and some with a fountain pen…
 - Woody Guthrie
  As I write this, Republicans and other right wingers fret and strut  about their stage in Madison, WI calling for the arrest of Democratic  legislators refusing to be bullied into destroying public worker unions  in Wisconsin.  It’s not that the Democrats completely oppose the GOP  governor’s proposal to destroy the unions, but the incredibly powerful  and populous protests against the proposal have convinced them that they  should disappear for a while.  The protests, meanwhile, are growing in  size and fury.  A similar situation seems to be unfolding in Ohio,  Indiana and other US states where similar attempts by anti-union state  officials to destroy public employee unions are underway.
 The desire to destroy the unions is being presented as a budget  cutting proposal.  In reality, the union-busting proposals would have  very little effect on cutting the deficit.  In fact, some reporters  claim that Wisconsin did not actually face a deficit until the governor  pushed through some tax proposals favorable to big business and the  wealthy.  These very same businesses and wealthy individuals are part of  the small number of people that have benefited from the economic crash  of 2007.  It is their intention to continue benefiting at the expense of  the rest of the country.  Amazingly, numbers of US voters apparently  agree with them despite overwhelming evidence that shows what is good  for the super rich is not good for too many others.  Despite this, they  call for small government while being enslaved to the will of the  corporations.
  In her 2011 opening address to the North Carolina state legislature,  Governor Bev Perdue called for a two percent reduction of the state’s  corporate income tax.  This call from Perdue, a Democrat, is one that  has been championed by the Republicans of North Carolina for a long  time.  Besides being one more bit of proof that there is very little  difference between the Democrats and the GOP when it comes to kissing  corporate tail, this call flies in the face of logic.
 The state of North Carolina is facing millions of dollars in cuts.   Libraries are being closed, public employees are being laid off and  positions are not being filled.  Schools are increasing class sizes,  laying off teachers and threatening some districts with closures.  Even  police and other law enforcement (usually untouchable) are thinking  about layoffs.  Yet, Perdue and the legislature want to cut corporate  taxes.  Already, the income tax surcharge on North Carolina’s wealthiest  taxpayers ended with the 2010 tax cycle.  So, what are they thinking?
 The rationale behind this call to reduce corporate taxes is as old as  the tax system.  According to those who champion this nonsensical idea,  the reason North Carolina isn’t creating jobs is because corporations  do not want to pay the 6.99% tax in North Carolina.  If that tax is  reduced, the tax cut’s proponents claim that more businesses will set up  shop in the state.  Ronald Reagan used a similar argument when he was  president.  He called it the trickle-down theory.  (As far as I can  tell, it felt a lot more like getting trickled on).  The most recent  national politician to make this idea into law is President Obama when  he extended the tax cuts for the wealthy.
 The big problem with this theory is that it doesn’t work.  Jobs have  been leaving this country by the millions since Reagan instituted his  tax cuts and they haven’t come back.  Corporations don’t want a tax cut.   They want no taxes at all.  Their bottom line is profit and most of  them will go where that profit is the greatest.  In other words, where  labor costs are minimal and taxes are even less.  It is the people of  North Carolina that work in North Carolina’s factories and buy their  products, yet the  politicians would have us believe that the  corporations are doing us a favor by being here, and should therefore  have to pay a lower rate of tax than the rest of us.
 It should not be the duty of the state government to facilitate a  race to the economic bottom for those who live and work in North  Carolina.  Nor should it be the function of any government entity to  enhance the coffers of its corporations at the expense of its citizens.  Yet, by lowering the tax rate on corporations, this is exactly what  North Carolina is doing.  With less tax monies, there will be less money  for services like schools.  Already corporations come to North Carolina  looking to pay lower wages.  They should not also benefit from paying a  lower rate of taxes than those who work for them.
 The scenario described above is one that right-wing forces (with no  small amount of acquiescence from liberals) has been putting into place  nationwide for decades.  The cost of this endeavor has been the safety  and health of workers;  the impoverishment of entire neighborhoods in  the United States and nations around the world; and the impending  destruction of the educational system, to name the first that come to  mind.  If this scenario comes true, it may never reverse.
  In a speech I heard Jesse Jackson give in 1984, he stated that  workers didn’t just want jobs, they wanted jobs that paid a livable  wage, offered benefits and, most of all, provided the worker with a  sense of dignity.  After all, he continued, every slave had a job during  slavery.  The point being made here is that working people deserve a  decent life just as much as those that employ them do.  Just working is  not enough.  The worker uprising in Wisconsin is a recognition of this.   As for those who tell private sector workers that it is the public  sector workers’ fault for the current economic mess–that is, pure and  simple, a lie.  It is the rapaciousness of Wall Street and the  governments that work for it that are to blame.  These and other lies  pitting workers against each other are just one more attempt by those in  power to divide those who are feeling the pain of neoliberal  capitalism’s heartless and avaricious greed.
         Ron Jacobs is the author of The Way The Wind Blew: A History of the Weather Underground.  Jacobs’ essay on Big Bill Broonzy is featured in CounterPunch’s  collection on music, art and sex, Serpents in the Garden. His first  novel, Short Order Frame Up, is published by Mainstay Press. His most recent book, titled Tripping Through the American Night is published as an ebook. He can be reached at: rjacobs3625@charter.net. Read other articles by Ron.
          This article was posted on Monday, February 21st, 2011 at 8:00am and is filed under 
Activism, 
Classism, 
Neoliberalism, 
Tax, 
Unions.
 
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