Tag Archives: New York Times

Tax Burden in U.S. Not as Heavy as It Looks, Report Says

Tax Burden in U.S. Not as Heavy as It Looks, Report Says

“…“Despite the claims of corporate apologists, international business ‘competitiveness’ has nothing to do with the reasons for these deals,” he writes. “Whether one measures effective marginal or overall tax rates, sophisticated U.S. multinational firms are burdened by tax rates that are the envy of their international peers.”

What? We’ve been told repeatedly that the United States has the highest corporate tax rate in the developed world — 35 percent — which is higher than the nominal tax rates in places like Ireland (12.5 percent), Britain (21 percent) and the Netherlands (25 percent) and the 24.1 percent average rate of all countries that are part of the Organization for Economic Cooperation and Development.

All of that’s true, but Professor Kleinbard contends that most United States multinational companies don’t pay anywhere near 35 percent. Companies paid, on average, 12.6 percent, according to the Government Accountability Office, which last measured it in 2010, by deliberately stashing piles of cash abroad…”

Leave a comment

Filed under Spotlights

Fast Food Workers Fight for a Raise, a Union, and Dignity at First National Convention

Fast Food Workers Fight for a Raise, a Union, and Dignity at First National Convention

By Alice Speri

July 30, 2014 | 10:55 am

“More than 1,300 workers from all over the US traveled to the outskirts of Chicago over the weekend for what organizers said was the first nationwide fast food workers convention. This gathering in Elmhurst, Illinois was held on the heels of a snowballing movement that has quickly grown from a spontaneous New York City walkout in November 2012 to one of the most significant American labor organizing efforts in recent years.

They came from California and Connecticut, from Kansas City, Little Rock, and more than 50 cities across the country. Most arrived after long, grueling road journeys, some on yellow school buses, and many brought their children along.

Most of the workers were young, but others were in their 40s and 50s, “career” fast food workers, who have spent decades in the industry. They were overwhelmingly black and Hispanic, but not only. Some were part-time students, a few had college degrees, and many held two or three different fast food jobs at the same time.

All photos by Alice Speri.

They came carrying banners from regional chapters and wearing shirts saying “Can’t survive on $7.25” and “We are worth more.” And they brought two demands: pay of $15 an hour and the right to form a union.

“Look around,” Mya Hill, an organizer from Detroit, told a roaring room packed with fired-up workers on Friday night, as the two-day event kicked off. “This is what a union looks like.”

First Victories
With most of them making the $7.25 federal minimum wage or just a few dimes more, fast food employees have become one of the most outspoken groups of low-wage workers in the country. While some politicians — including President Obama — have begun debating raising the minimum wage across the board to $10.10, the fast food workers’ bolder demand for $15 has quickly become the rallying cry for a movement that is promising to spread across industries.

“It’s time to stop paying us poverty wages, people are sick of it, everyone in this room is sick of it. We can’t live like this, it’s time for a change,” Shantel Walker, 32, a Brooklyn fast food worker for more than 15 years, told VICE News. “We work for multibillion dollar people. A little dollar, two, three, is nothing to them. They throw away money every day. When someone doesn’t eat their food, they throw it away. That’s basically our money in the garbage can.”

Shantel Walker, a fast food worker from Brooklyn said: ‘It’s time to stop paying us poverty wages, people are sick of it, everyone in this room is sick of it.’

Critics have slammed the $15 an hour demand as utopian, entitled, and economically senseless. But as Americans have started to awaken to the widening inequality in the country, the call for a fair wage has begun to gather traction. “We’re all people,” Walker added. “We have rights.”

Representatives for several fast food chains, including Burger King, Taco Bell, and Wendy’s, did not respond to requests for comment from VICE News on the convention and the workers’ demands.

A spokesperson for McDonald’s did not respond to interview requests or address questions on the impact of the fast food movement and whether its executives are taking the workers’ calls into consideration, but did release a statement.

“McDonald’s and our independent owner-operators share a concern and commitment to the well-being and fair treatment of all people who work in McDonald’s restaurants. McDonald’s and our independent franchisees believe that any minimum wage increase should be implemented over time so that the impact on small and medium business owners is manageable,” spokeswoman Heidi Barker Sa Shekhem said.

“Additionally, we believe that any increase needs to be considered in a broad context, one that considers, for example, the impact of the Affordable Care Act and its definition of ‘full time’ employment, as well as the treatment, from a tax perspective, of investments made by businesses owners.”

But despite some skepticism, the fast food workers’ movement has already reaped some important victories.

In June, Seattle’s city council voted to raise the minimum wage to $15 — a move that is also being debated in San Francisco, Los Angeles, and Chicago. So far, more than 6.7 million workers have seen their wages increase since the fast food workers’ movement started.

And in a decision with potentially massive consequences, the general counsel of the National Labor Relations Board ruled on Tuesday that McDonald’s is the “joint employer” for workers at its franchised stores — meaning the corporation will no longer be able to brush off workers’ complaints (and lawsuits) by putting all the blame on its franchisees. It could also be held responsible for unfair labor practices at its thousands of restaurants, including threatening to or firing workers for organizing.

“Like other fast-food franchisors, McDonald’s is trying to have it both ways when it comes to its relationship with employees working in stores bearing its name,” labor law scholar Michael Fischl said in a statement following the decision. “On the one hand, in order to protect its ‘brand,’ the Mother Ship micromanages virtually every aspect of day-to-day operations, from food preparation to customer service, and everything in between. On the other hand, in order to circumvent the rights of its employees under the National Labor Relations Act, it proclaims that it is ‘shocked, shocked’ that anyone would think it actually exerts such extensive control over its franchised stores,” Fischl continued.

“The General Counsel’s determination to treat McDonald’s as a ‘joint employer’ suggests that going forward the NLRB will be paying more attention to what franchisors are doing than to what they are saying they do.”

Predictably, the ruling outraged critics of organized labor, with Angelo Amador, vice president of labor and workforce policy for the National Restaurant Association, telling the New York Times that the decision “overturns 30 years of established law regarding the franchise model in the United States.”

Tuesday’s ruling came after the Chicago convention, but workers there were already celebrating their first big successes.

“What you are doing right now is the most important workers’ movement in America today,” congressman Keith Ellison — and co-chair of the Congressional Progressive Caucus — told workers on Saturday. “Millions of people across the country are looking at what you’re doing here in Chicago.”

Mary Kay Henry

Mary Kay Henry, president of the Service Employees International Union, also praised the workers. The union, which represents its members from a variety of service sectors, backed the convention and offered financial and organizational support — leading some critics to dismiss the event as an attempt to boost union membership.

“The people in this room tonight have changed our country,” Henry told Friday’s boisterous crowd. “When this movement started 21 months ago with the first strike in New York, people thought $15 an hour was a fantasy. They laughed at you. But now, because of your courage and your hard work, it will become a reality.”

Yet despite the wins, fast food employees face an uphill battle.

“It’s going to take a long time. You’re going back to your workplace after this and it’s not gonna happen overnight,” Justin Jones, a 23-year-old organizer from Orlando, told a group of workers in a breakout session. “This is gonna be a fight, it’s gonna be hard.”

“I’m pretty sure they’re gonna make it as tough on us as they can,” he told VICE News later, adding that he has already been turned away from many restaurants — including the world’s largest McDonald’s, in Orlando — for speaking with staff.

But the convention, Jones hopes, will boost workers’ morale and show them they are not in the fight alone.

“We wanted workers to come together and be motivated so when they go back to their cities they can share stories and be like, ‘Hey, this is a real big thing, they’re not playing,'” he said. “It’s a movement and it’s not going anywhere. These guys are serious, they’re for real.”

Birth of a Union
Just 21 months ago, most of the workers who packed into the convention center had no idea they could even protest cuts to their hours and late paychecks without getting fired.

Darrell Roper, 51, who works at a Burger King on Manhattan’s Upper East Side, did some research of his own after an organizer approached him outside the store two years ago. He was surprised to learn that he had a right to organize with other workers, as long as it was not on the clock.

“Most people don’t know that, that’s what it is. They’re weary because they don’t have any information,” he told VICE News, adding that he now talks to other workers — and has come under scrutiny from his managers for doing so. “What I learned gave me the heart and the audacity to want to participate, knowing that my employer can’t hold that against me.”

Darrell Roper

That sense of newly discovered empowerment was palpable across the convention hall, where many said they would have never dreamed to find themselves just months ago.

“When I first heard about it, I’m not gonna lie, I was kind of skeptical. I was thinking, ‘I’m gonna lose my job, I’m gonna get in trouble,’” Douglesha Nicholson, a 23-year-old Pizza Hut worker from Kansas City, told VICE News. But after the first strike, she was sold.

“It was a big rush of adrenaline, going out and being able to yell without the risk of being fired. Just to let you know ‘Hey, I’m here, this is what I’m demanding, this is what I want,’” Nicholsonsaid. “We’re here to educate other fast food workers who may be skeptical about it, to let them know that we have their back.”

Sitting at a table with workers from Detroit, Brooklyn, and Wisconsin, Nicholson and her partner Marcus Stove, 24, who works at Wendy’s and whatever other odd jobs he is able to find, they compared wages and managers. Nicholson and Stove have four children together — “four and a half,” he joked, as they are expecting their fifth in September — and have long searched for but have never been able to find anything better than their fast food jobs.

“I can’t feed five kids on $7.25,” Stove said. “I’m here for the $15. I’m here to get that money.”

“We all have children,” Nicholson, whose oldest son is seven and wants to be a Pizza Hut driver when he grows up, told the other workers at the table. “I’m here because we are human beings.”

Douglesha Nicholson and Marcus Stove

At other tables, workers from different cities also compared paychecks and traded stories of payments that came weeks late, frying burns, and customers throwing shakes at them through drive-through windows. For the workers, including many leaving their hometowns for the first time, it was a powerful experience.

“Especially in the South, a lot of people are not used to this, they don’t really have knowledge of what a union is, there aren’t a lot of strikes going on,” said Jones, the Orlando organizer. “Here, you are seeing strangers, from other states, races, and belief systems, who have the same issues as you, and it gives you common ground. It’s not just you, it’s other states that all have the same issues. It’s unifying. It’s pretty awesome.”

That was precisely the point of the convention, workers and organizers said: To unite workers and capitalize on the momentum of a movement that has already staged some of the most widespread strikes in recent history, turning the “Fight for $15” chant from a utopian slogan into a reality for some.

But the workers who gathered here also adopted a resolution at the end of the convention that pledged further action — including more strikes, sit-ins, and even soup kitchens outside their stores — “to make sure everyone knows their employees don’t make enough to eat,” one worker suggested.

And many of these employees want a union as much as a raise.

“Right now, people who are working in fast food, their rights are being trampled. The union is not just for job security, it’s to protect your rights,” Roper said. “Without a union, I can’t negotiate with management. It’s their way or no way.”

History of the Movement
The sometimes rowdy convention was heavy on hope and civil rights rhetoric, as workers discussed civil disobedience and watched videos of early workers’ movements. Speaker after speaker reminded those in the room that they were “making history.”

“I’m inspired by what you are doing,” Reverend William Barber II, head of the North CarolinaNAACP, told the workers at the beginning of a long sermon. “You are in a fight to change America and you need to stay in that fight.” At its national convention, last week, the civil rights group voted unanimously to endorse the Fight for $15 campaign.

In fact, this movement has already made history.

It was born almost by accident in New York City, when a couple of hundred workers — “overworked and underpaid” as some of them said — walked off their jobs in November 2012. After that, dozens of people gathered at a Brooklyn Wendy’s to support a young woman who had been fired for protesting. In a domino effect, the strikes started to follow across the country — with a massive, 150-city walk-out in May this year.

Also in May, 101 McDonald’s workers were arrested at a rally outside the company’s corporate headquarters in Oak Brook, Illinois. Many of them were at the Chicago convention, where they got a standing ovation, pledged to do it again, and asked for others to follow.

“I tell you, if every one of us in this room goes to jail for civil disobedience, these corporations are gonna have to listen to us,” one of them told the crowd.

“They’re afraid of this movement, they want to keep their workers subjected,” said Roper. “They don’t want the whole store walking out, but there’s gonna come a time when corporate is gonna have to deal with us, they’re gonna have to give in.”

The workers plan to directly take on the executives of the corporations they work for — an effort that will likely be boosted by Tuesday’s ruling.

“If a CEO gets paid 1,000 more times than the average worker, I believe they can pay you a living wage. If the industry can make billions and billions and billions, I believe they can pay you a living wage,” said Barber.

In her speech, Henry listed the total compensation of fast food CEOs — coming to around 1,200 times the minimum wage that workers make.

“I think these CEOs should come into the store, to see how the stores are actually run,” Kristina Bradley, 25, told VICE News. Bradley was fired from a Pittsburgh Chick-fil-A after joining protests, she said.

“My paycheck says $300. My monthly bus pass costs $146. My rent is $450. If I’m making $300, where is my money?” she asked. “They say there’s welfare out there, you should go get food stamps. You think we want to live off the government? Are you serious? We are working.”

Follow Alice Speri on Twitter: @alicesperi

Leave a comment

Filed under Spotlights

Hundreds of NYC’s Homeless Were Duped by a Chinese Millionaire Today

Leave a comment

by | June 25, 2014 · 11:13 pm

Vaccine Deniers Were Just Dealt A Blow In Court

“A federal judge has ruled in favor of a New York City policy that allows schools to ban unvaccinated kids from attending classes when another child has come down with a vaccine preventable illness, the New York Times reports. The lawsuit consolidated separate challenges from three families who claimed their religious freedom was violated when their kids were banned from school for up to a month at a time during disease outbreaks…”

Leave a comment

by | June 25, 2014 · 6:42 pm

Dear Millennials, We’re Sorry

Leave a comment

by | June 9, 2014 · 6:06 pm

Don’t Harsh Our Mellow Dude

In regards to the Denver man who threatened his wife and kids with a gun, police documents say that he “appeared to be under the influence of some type of controlled substance and/or prescription pills based upon his speech patterns, his inability to focus and his pupils.” And his wife says he took prescription pills for back pain before the incident.

Did you know that prescription pills, when used properly, kill 100,000 people in the US every year from known side effects?

And in terms of Andrew Freedman’s statement that, “with liquor, people understand what they’re getting themselves into,” did you know that, according to the CDC, “there are approximately 88,000 deaths attributable to excessive alcohol use each year in the United States…

This makes excessive alcohol use the 3rd leading lifestyle-related cause of death for the nation. Excessive alcohol use is responsible for 2.5 million years of potential life lost (YPLL) annually, or an average of about 30 years of potential life lost for each death. In 2006, there were more than 1.2 million emergency room visits and 2.7 million physician office visits due to excessive drinking. The economic costs of excessive alcohol consumption in 2006 were estimated at $223.5 billion.”

So, since recreational marijuana became legal in Colorado, there has been one death attributed to its use. The current death count for alcohol so far in 2014 in the US? 42,304.

Which is the bigger evil here? Prescription drugs and alcohol, or weed?

Leave a comment

by | June 4, 2014 · 5:55 pm

Hospital Charges Surge for Common Ailments, Data Shows

“…Charges for chest pain, for instance, rose 10 percent to an average of $18,505 in 2012, from $16,815 in 2011. Average hospital charges for digestive disorders climbed 8.5 percent to nearly $22,000, from $20,278 in 2011.

In 2012, hospitals charged more for every one of 98 common ailments that could be compared to the previous year. For all but seven, the increase in charges exceeded the nation’s 2 percent inflation rate for that year, according to The Times’s analysis…”

Leave a comment

by | June 3, 2014 · 7:08 pm