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Economy

Two Democrats To Introduce Bill Raising The Minimum Wage Above $10

Sen. Tom Harkin (right) and Rep. George Miller

Two Democrats plan to introduce legislation today that would raise the federal minimum wage to $10.10 an hour, more than a dollar over the proposal President Obama made during February’s State of the Union address. The current minimum wage is $7.25 an hour and has not been raised since 2009 as part of legislation signed by President George W. Bush.

The legislation backed by Iowa Sen. Tom Harkin (D) and California Rep. George Miller (D) would, like Obama’s proposal, index the minimum wage to inflation so that it keeps up with the cost of living over time. Harkin and Miller told the Huffington Post that raising the minimum wage was “a matter of justice” for low-income workers:

When you see what’s happened to CEO salaries and compensation since the 1970s, and what’s happened to the minimum wage, it’s just startling,” Harkin said. “We can’t continue on this way. We need a higher minimum wage.”

People do see the minimum wage as a matter of justice for people who don’t have the ability to bargain for decent wages,” Miller said. “And that’s all this is — it’s a minimum wage. Nobody’s walking away from here rich.”

As Harkin noted, executive salaries have skyrocketed over the last three decades, rising 127 times faster than worker pay. Corporate profits have also risen to record levels, but the minimum wage hasn’t kept up, even as low-wage jobs are becoming more prevalent after the Great Recession. The minimum wage reached its peak buying power in 1968; to equal that buying power today, it would have to be $9.92 an hour. Had it been indexed to inflation in 1968, it would be $10.40 an hour today.

Top Republicans have already come out against raising the minimum wage, but 65 Republicans currently serving in the House or Senate supported the minimum wage increase Bush signed into law in 2007.

Economy

Trio Of Democrats Introduce Legislation To Tax Financial Transactions

Photo via @slarson83

A trio of Democratic lawmakers today introduced legislation to institute a small tax on financial transactions, a proposal that would reduce volatility in financial markets and raise substantial revenue for the federal government. Under the plan from Sens. Tom Harkin (D-IA) and Sheldon Whitehouse (D-RI) and Rep. Peter DeFazio (D-OR), financial trades would be subject to a 0.03 percent tax, which they say would raise approximately $352 billion in revenue over the next decade.

Such a tax would slow down high-frequency trading that poses a threat to the health of financial markets while also incentivizing investment that drives economic growth. Opponents argue that the tax would slow down growth, but DeFazio told ThinkProgress last year that those claims are unfounded. “For 50 years we had a tax that was about seven times larger than this when the country was seeing the greatest growth in its history, post-World War II,” he said. “So we’ve proven this will not have a detrimental impact on growth. In fact, it perhaps is beneficial to growth. It’s not necessarily beneficial to salaries of hedge fund managers on Wall Street.”

“This commonsense proposal will raise billions in new revenue to get rid of the sequester or reduce the deficit while also discouraging the kind of reckless high-volume trading that contributed to the financial crash in 2008,” Whitehouse said.

11 European countries recently announced that they will institute a financial transactions tax, and Britain, which taxes stock and bond trades but does not tax more complex trades involving derivatives and swaps, is open to expanding its tax as well, Labour Party MP Chris Leslie said last week. “I don’t see any evidence that there would be a negative effect on economic growth,” Leslie said. “In fact, quite the opposite.”

Harkin and DeFazio have introduced the transactions tax in the past, but it has not received support from Treasury or President Obama. Many consumer groups and business and financial leaders, however, have offered support for the tax. “A modest financial transaction tax of less than 1 percent would serve as a remarkably efficient tool to achieve needed reform,” John Fullerton, a former director at JP Morgan Chase, wrote in 2011.

LGBT

Democratic Senator Promises Employment Non-Discrimination Act ‘Will Move This Year’

This morning at an event at the Center for American Progress, Sen. Tom Harkin (D-IA) promised that the Employment Non-Discrimination Act (ENDA) “will move this year” in the Senate. ENDA would create national protections that prevent employers from discriminating on the basis of sexual orientation or gender identity, but has languished in Congress for decades.

Harkin did not further specify his plans, but as Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, he has the power to ensure it receives at least a committee mark-up and vote. Last year, the HELP committee held a hearing on the bill, which featured the first-ever transgender individual to testify before the Senate. Kylar Broadus spoke of the pain he suffered when colleagues he’d worked beside for years learned that he was trans and suddenly couldn’t remember which pronouns to refer to him by. In 34 states, it’s still legal for employers to fire or refuse to hire someone just for being transgender, and ENDA would help fix that. With bi-partisan support, the bill seems poised to advance — at least out of committee.

There is speculation that President Obama might mention ENDA or a similar executive order that would create protections for employees of federal contractors in tonight’s State of the Union address.

Update

Watch a clip of Harkin’s remarks:

Health

How One Iowa Senator Secured Civil Rights For Americans Living With Disabilities

This past weekend, Sen. Tom Harkin (D-IA) announced he will not seek re-election in 2014, bringing an almost 40 year career in Congress to a close. But as Harkin steps aside, his legacy — particularly his work to champion increased protections for Americans living with disabilities — remains.

Twenty two years ago, President George H.W. Bush signed the Americans with Disabilities Act (ADA) and the Individuals with Disabilities Education Act (IDEA) into law. Either law would have been considered landmark civil rights legislation on its own merits — taken together, they represented nothing short of a legislative revolution for disabled and special needs Americans. And those bills were made possible by Harkin, who authored and shepherded them to overwhelming bipartisan approval.

Every handicapped spot in a parking lot, each mechanical wheelchair ramp on a public transport vehicle, and any company that employs qualified Americans with a disability, is only made possible because of the ADA. The law’s provisions — which include protections ranging from anti-workplace discrimination, to public transport and public facility accommodations, to telecommunications support for the visually and hearing impaired — have given millions of Americans the means to pursue independent livelihoods. As one disabled American put it, “I have traveled 18,000 miles between Los Angeles and Bakersfield in an externship, and without the ADA and the Department of Transportation’s provisions, I would not have managed to remain independent and commute.” According to one study, the percentage of disabled Americans citing public transport accommodations as a barrier to their commute dropped from 49 percent to 31 percent between 1989 and 2004.

IDEA applied these same principles to disabled children in the public school system, establishing early intervention and special education requirements for all schools in states accepting federal funding under the statute, as all 50 states now do. And although the concept of providing proper educational facilities and services for Americans with disabilities is now considered an obvious obligation of the American safety net, before IDEA and its precursor law — the Education for All Handicapped Children Act — most of the 6 million disabled American children did not have access to an effective public education.

Granted, not all legislative efforts to assist America’s disabled have enjoyed the successes of the ADA and IDEA. Since many of Medicaid’s benefits for disabled Americans are considered “optional,” they are often a target for austerity measures and deficit reduction. And a recent effort to ratify a United Nations treaty based largely on the ADA was defeated by Senate Republicans, despite widespread support and a last minute lobbying effort by former Republican presidential nominee Bob Dole.

But Sen. Harkin deserves an enormous amount of credit for the myriad opportunities and independence that the ADA and IDEA have afforded to disabled and handicapped Americans — the freedom to pursue an education, a career, and to effectively navigate the country, rather than be relegated to an institution or permanent home care. Harkin pushed the bill to an outsized victory despite the protestations of business groups such as the U.S. Chamber of Commerce, who claimed that the law would be a “job killer” and cost entirely too much money for potentially little benefit. As the Iowa senator winds down his career, he can be assured that the legislation he pioneered during his time in office will go down in history.

Economy

Democratic Lawmakers To Re-Introduce Financial Transactions Tax

Rep. Peter DeFazio (left) & Sen. Tom Harkin

Democrats were unsuccessful in their push for a financial transactions tax after the 2008 financial crisis, but after 11 Eurozone countries received approval to institute such a tax Tuesday, two lawmakers are planning to try again. Rep. Peter DeFazio (D-OR) and Sen. Tom Harkin (D-IA) will reintroduce their proposal, which would raise an estimated $352 billion over the next decade by instituting a 0.03 percent tax on financial trades.

A financial transactions tax would slow down high-frequency trading, which has exploded in the last five years. Such trading “has absolutely no social value,” according to one of its pioneers, and only increases volatility in the market. The tax would have little effect on normal traders.

Critics of the Euro-wide turn to a transactions tax say it could slow down growth and encourage businesses to move elsewhere, and similar claims have been made about the American version. But 52 financial executives endorsed the tax last year, and DeFazio told ThinkProgress last year that such claims are false.

“For 50 years we had a tax that was about seven times larger than this when the country was seeing the greatest growth in its history, post-World War II,” he said. “So we’ve proven this will not have a detrimental impact on growth. In fact, it perhaps is beneficial to growth. It’s not necessarily beneficial to salaries of hedge fund managers on Wall Street.”

Economy

Democratic Senator Proposes New Type Of Retirement Plan

Our guest blogger is David Madland, Director of the American Worker Project at the Center for American Progress Action Fund.

Sen. Tom Harkin (D-IA)

Senator Tom Harkin (D-IA) outlined the principles for a new type of retirement plan in a report released today. This sort of plan is sorely needed given the current state of retirement savings.

The latest figures from the Federal Reserve’s Survey of Consumer Finances show that the typical American near retirement age has accumulated enough money in her 401(k) account to receive monthly payments of just $575. This is a particularly damning figure given that this group of near-retirees is dependent on 401(k)s, while previous cohorts commonly also had a pension.

Currently, retirement prospects are bleak for far too many Americans: estimates indicate that more than 50 percent of middle-class retirees are likely to outlive their retirement savings. Half of all workers don’t even have a retirement plan at work. And the few pensions remaining are under threat, as even profitable companies like Caterpillar are trying to eliminate them.

Harkin’s new USA Retirement Funds — based in part on a forthcoming Center for American Progress proposal, as well as the work of the Pension Rights Center — combines some of the best elements of defined-contribution plans and defined-benefit plans to deliver a portable, cost-effective, and stable level of benefits for retirees at a constant cost to employers.

Though the proposal is unlikely to become law anytime soon, it is still a big step towards solving the pending retirement crisis, because it offers the kind of solution that can appeal both to workers and employers.

LGBT

First-Ever Trans Senate Witness: ‘To Be Unemployed Is Very Devastating, Demeaning, And Demoralizing’

This morning, the Senate Health, Education, Labor & Pensions Committee held a hearing on the Employment Non-Discrimination Act (ENDA), which would extend employment protections based on sexual orientation and gender identity. For the first time in the Senate’s history, a transgender witness testified on behalf of the bill. Kylar Broadus, founder of the Trans People of Color Coalition, discussed his experiences coming out trans, including mistreatment by police, workplace harassment, and employment discrimination:

BROADUS: When I used female restrooms, police would accost me. I would have to strip and then they still told me, “Sir, get out of the bathroom,” when I would use the ladies’ room. It’s just humiliating and dehumanizing to say the least.[...]

Prior also to the physical transition, I was working in the financial industry, which is actually a high-paying industry. But again, when I shifted or transitioned, that’s when all the trouble began. And it’s still emotional to me, because it impacted me emotionally — I suffer from post-traumatic stress as a result of the harassment that I encountered in the workplace from my employer.[...]

To be unemployed is very devastating, also demeaning and demoralizing. And then the recovery time — there is no limit on it. I still have not financially recovered. I’m underemployed. When I do talks, I tell people I’m not employable. I was lucky to be where I am and I’m happy to be where I am, but I’m one of the fortunate people that is employed. There are many more people like me that are not employed as a result of just being who they are — being good workers, but being transgender or transsexual. So I think it’s extremely important that this bill be passed to protect workers like me.

Sen. Tom Harkin (D-IA) expressed pride in the committee for inviting Broadus to speak. Watch his full testimony:

No opponents of the bill attended the hearing, so the panel and questions were mostly positive. One witness, Craig Parshall of the National Religious Broadcasters Association, testified against ENDA, arguing that religious businesses should be able to discriminate against gay and trans employees according to their beliefs. Largely the committee ignored Parshall during the questioning, and when he did express concern, Samuel Bagenstos of the University of Michigan Law School countered the technicalities of his claims, pointing out that ENDA actually has broad religious exemptions.

ENDA has been stalled in Congress for decades. Though Republican control of the House may prevent its advance yet again in 2012, today’s Senate hearing was nonetheless historic. The fact that most of the discussion at today’s hearing was supportive and non-confrontational demonstrates how significantly overdue these employment protections are.

Economy

Sen. Harkin Bill Would End America’s Time As Only Developed Nation Without Paid Sick Days

Sen. Tom Harkin (D-IA)

The U.S. has the weakest labor protections in the industrialized world, and is the only developed nation that doesn’t guarantee workers some sort of paid sick leave. Lost productivity due to sick workers attending work and infecting other employees costs the U.S. economy $180 billion annually.

Yesterday, Sen. Tom Harkin (D-IA) released the Rebuild America Act, and one of its many provisions would ensure that all workers have access to paid sick days. Inevitably, proposals of this sort draw the ire of Big Business, which claims that every policy meant to aid workers will drive up costs and increase joblessness. But as David Madland noted yesterday, that simply isn’t the case:

The aftermath of the Great Recession has cultivated a fear that policies that support workers and their families will subsequently constrain business profitability and cause employers to lay off workers or close their doors entirely. Contrary to fears from the business community, the passage of paid sick days legislation in San Francisco (the first city to enact such a law) did not hamper job growth. In fact San Francisco created more jobs and experienced more economic growth after passing the law than the surrounding counties without such legislation.

According to a study in the American Journal of Public Health, a lack of paid sick days led to millions of additional cases of H1N1 flu in 2009. Since the federal government hasn’t acted, several cities have passed paid sick day requirements of their own (though Republicans in Wisconsin overrode Milwaukee’s law last year). Harkin’s bill — in addition to its myriad other strong proposals — would end America’s shameful rein as the only developed nation that forces workers to choose between their health and their job.

Justice

Grassley & Harkin Introduce Bipartisan Bill To Fix Supreme Court Assault On Older Workers

Nearly three years ago, the Supreme Court rolled back decades of precedent to make it harder for older workers to stand up to age discrimination in the workplace:

Employment discrimination cases are difficult to prove because the plaintiff ultimately must show what their boss was thinking at the time they were fired or demoted–it is illegal for an employer to fire a worker because they think the worker is too old or too black or too female, but not because they think the worker is incompetent or poorly dressed. Since workers don’t have ESP, the Supreme Court long ago put certain procedures in place to make sure that laws banning discrimination amount to more than just empty promises.

“Mixed motive” suits are an example of these procedures. To win a mixed motive case, a plaintiff had to prove that discrimination was one of the reasons behind their boss’ decision to fire or demote them. It was then up to their boss to prove that they would have made the same decision regardless of the worker’s race or gender or age. Workers are spared the nearly impossible task of having to prove that that their boss was thinking only of bigotry when they lashed out at their employee; and employers are given a fair chance to prove that discrimination is not the real reason why the worker was cast aside. . . .[Gross v. FBL Financial Services] eliminates such claims in age discrimination cases. Thanks to Justice Thomas’ majority opinion, victims of age discrimination are helpless unless they can get inside their boss’ head and show that their boss would have behaved differently if the victim had been a little younger.

A bill introduced Tuesday by Sens. Chuck Grassley (R-IA) and Tom Harkin (D-IA) will overturn Gross and restore to older workers the same ability to fight discrimination that they agreed before a 5-4 Supreme Court took it away from them. Although many Senate Democrats have long supported undoing the justices’ mischief in this way, this is the first time a Republican has signed on to the effort — Grassley’s endorsement of the bill is a hopeful sign that it could become law.

Enacting this bill is not simply important because it will restore necessary rights to older workers, it also is important to push back against a Supreme Court that openly flouts its own precedents. Justice Thomas’ majority opinion in Gross acknowledged that his decision was at war with longstanding precedent, but he dismissed this fact by simply saying “it is far from clear that the Court would have the same approach were it to consider the question today in the first instance.” In other words, Thomas believes that, because the Supreme Court is now dominated by five far right justices, it should no longer have to follow precedents from a more sensible era.

Climate Progress

Harkin: ‘Indisputable’ Climate Change Behind Missouri River Flood

Sen. Tom Harkin (D-IA) is calling for flood management officials to recognize the role of global warming in creating more dangerous disasters. Yesterday, as the federal government agreed to assume most of the costs of the Missouri River flood in the state of Iowa, Harkin told reporters that U.S. Army Corps of Engineers needs to take into account the “indisputable” climate change that has been increasing precipitation intensity in the Midwest. The Master Water Control Manual of the Missouri River Basin ignores the existence of manmade global warming, and left the corps unprepared for the scope of this year’s record precipitation. Harkin told the Quad City Times that climate change is “indisputable“:

I think it’s indisputable that something is happening to our climate. Perhaps the basis of that manual needs to be revised for climate change that’s happening and the amount of snowpack.

Speaking before television reporters on Monday afternoon, as President Obama signed a federal disaster declaration for the region, Harkin reiterated that the flooding disaster could have been managed if not for the global warming caused by fossil fuel pollution:

If we hadn’t had those big rainfalls, their plans would have worked. That’s why I say we have to maybe go back and revise that master plan simply because something is happening with our climate. and we’re getting more rain and more snowpack in areas that we’ve never had before.

Watch it:

The corps manual does not mention the implications of climate change for the river basin, despite years of relevant scientific publications and government reports. As climate change accelerates, the challenge of handling the greater droughts and floods in our future will only increase. Our national flood-control system is grossly unprepared for what is coming, even if immediate action is taken to eliminate climate pollution.

However, the manual does note the critical role that the National Weather Service and the U.S. Geological Survey play in providing meteorological and stream flow observations and forecasts. The budgets of both agencies — and their ability to study climate change — are under attack by Tea Party Republicans along the Missouri River like Rep. Steve King (R-IA).

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