AFL-CIO Solutions

NOBODY IN AMERICAN PUBLIC LIFE is more focused than the labor movement on offering solutions to the most serious challenges facing America: wage stagnation, economic inequality, full employment, economic insecurity, the transition to a 21st century economy and restoring our democracy. Solving these problems also would stabilize the national debt over the long term.

Fix the economy first. Deficits are the result—not the cause—of the economic crisis. The real problem with our economy is weak middle-class buying power, which is caused by high unemployment, lingering household debt, stagnant wages and a towering trade deficit. These are our most urgent problems, and we cannot allow short-sighted budget austerity to keep us from solving them.

The AFL-CIO’s approach to fixing the economy is to replace the failed low-wage economic strategy of the last 30 years with a high-wage strategy for shared prosperity. The four pillars of a high-wage strategy are (1) bolstering middle-class buying power and reducing economic inequality by restoring  workers’ ability to bargain collectively; (2) achieving full employment; (3) making things in America again; and (4) shrinking our bloated financial sector and making it serve the real economy again.

The AFL-CIO also has endorsed “Prosperity Economics,” a long-term economic blueprint that calls for stronger investment in infrastructure to grow the economy; enhanced economic security for working families to make markets work better; and political reform to reinvigorate our democracy.

We do have a projected long-term budget imbalance, but we must address its true causes—wasteful tax breaks for Wall Street and the richest 2% of Americans and rising costs throughout our health care system— and not allow this projected imbalance to be used as a pretext to pursue unrelated agendas.

There is no urgent debt crisis that requires us to make bad decisions. Markets around the world are signaling more confidence in the U.S. dollar than in any other currency, and U.S. interest rates seldom have been lower. The deficit as a share of the economy is falling faster than at any time since right after World War II, and there is no economic need to meet any arbitrary deficit reduction target over the next decade. We have time to get this right.

Repeal sequestration. Across-the-board budget cuts— called sequestration—will cost 750,000 jobs this year— and many more jobs in future years. The solution is to repeal the sequestration, not replace it. Congress created it and Congress can make it go away. Further budget austerity before we return to full employment will only cost jobs and hinder economic growth.

Protect Social Security, Medicare and Medicaid from benefit cuts. Republicans in Congress want to cut Social Security, Medicaid and Medicare benefits to pay for tax breaks for Wall Street and the richest 2% of Americans, and they have been holding the economy hostage to get their way. The way to deal with hostage takers is to disarm them so they no longer can hold the economy hostage—not give in to their ransom demands. Repealing sequestration not only would save 750,000 jobs this year, but also would help protect Social  Security, Medicaid and Medicare from benefit cuts.

Rein in health care cost growth. If the official projections are correct, health care cost growth throughout our public and private health care system eventually will bankrupt the entire economy—and not just our public health programs. The right way to contain health care cost growth is to deliver care in more cost- effective ways, not shift costs to individuals.

We can make our entire health care system more cost-effective, without shifting costs to individuals, by

  1. closing the loophole that prohibits Medicare from negotiating lower drug prices with drug companies ($230 billion over 10 years) or applying the Medicaid rebate on single-source drugs to Medicare Part D   plans ($137 billion over 10 years); (2) creating a robust public option that offers premiums 5% to 7% lower than private insurance and partners with Medicare to implement cost-saving reforms ($110 billion over 10 years); (3) expanding Medicare competitive bidding to all health products and all other health programs ($38 billion over 10 years); (4) requiring Medicare to “bundle” payments to hospitals for post-acute care so Medicare will pay for results rather than the volume of services provided ($10 billion over 10 years); and (5) ending pay-for-delay agreements between brand name and generic drug manufacturers ($11 billion over 10 years).

Social Security has never added a penny to the  deficit and should not be part of any deficit reduction negotiations. Instead of cutting Social Security benefits, we should be increasing benefits across the board to compensate for the decline of traditional pensions and  to address growing retirement insecurity. The AFL-CIO also supports “scrapping the cap” ($113,700 in 2013) so that all wage income will be subject to the Social Security payroll tax. High earners should contribute the same percentage of their income to Social Security as everyone else.

Close tax loopholes for Wall Street and the richest 2% of Americans. America needs more tax revenue, not only to address the causes of our projected long- term fiscal imbalance, but also to fund investments in education, clean energy and infrastructure that are necessary to lay the foundation for long-term economic growth. We should start by (1) eliminating the tax  benefit to corporations of sending jobs overseas ($583 billion over 10 years); (2) collecting a tiny tax on Wall Street trading of stocks, bonds and complex financial instruments to discourage harmful speculation (more than $350 billion over 10 years); (3) collecting a 5.6% surtax on income greater than $1 million ($453 billion over 10 years) so that fewer millionaires can avoid paying their fair share of taxes; (4) implementing a “Buffett Rule” to ensure millionaires pay an effective tax rate of at least 30% on all their income ($54 billion over 10 years); (5) limiting the extra benefit of itemized tax deductions for the richest 2% of Americans ($293 billion over 10 years); (6) taxing the income of Wall Street hedge fund managers at the same rate as wage income ($21 billion over 10 years); and (7) closing other corporate tax loopholes so that profitable Wall Street corporations   start paying their fair share of income taxes (hundreds of billions of dollars over 10 years).

No more tax breaks for Wall Street and the richest 2%. Most importantly, we have to stop making the problem worse by giving tax breaks to those who benefited most from the economic policies of the past 30 years. For example, we simply cannot afford to lower the top individual income tax rate paid by millionaires, or eliminate U.S. taxes on overseas corporate income (through a so-called “territorial tax system”), or lower the corporate income tax rate.

What You Should Do

Call your senators and representative now at 888-659-9401 and tell them:

  1. Repeal sequestration.

  1. Protect Social Security, Medicaid and Medicare from benefit cuts.

  1. Close tax loopholes for Wall Street and the richest 2% of Americans.

Latest News

California wildfires … IATSE responds!

The unprecedented wildfires currently scorching California are now the deadliest and most

Read More

Oriental Theatre is getting a new name

  Oriental Theatre is getting a new name     November 13, 2018 - 10:55 AM After

Read More

Chicago Women in Trades Job Opportunity

  HI all, We are growing here at Chicago Women in Trades (CWIT) and are now searching for

Read More

Union Meeting – Tuesday, 1/15/19

  The next meeting of Wardrobe Local 769 will be held at the Stagehands Local 2 Office, 216 S. 

Read More

AFL-CIO Prez Trumka on the Midterms …

President Loeb on the 2018 Midterms

Statement from President Loeb about the 2018 Midterm Elections Wednesday, November 7, 2018 In

Read More

Statement from Richard Trumka

  Statement by AFL-CIO President Richard Trumka in response to the politically motivated

Read More

Cinespace outreach gets Congressional nod

  Cinespace community outreach gets Congressional nod   The

Read More

Join Actors Federal Credit Union

  TWU Local 769 has become a member of the Actors Federal Credit Union.  Attached below

Read More

The Official Bulletin: 2018 Q3 / No. 661

  The latest issue of the Bulletin is now available online! Read about 125 years of the

Read More

IATSE Locals Ratify 3-Year Basic Agreement

IATSE Local Unions Ratify New 3-Year Basic Agreement Wednesday, October 10, 2018 The 43,000

Read More

IATSE & Lyric Agree to Labor Cuts

  IATSE and Lyric Opera of Chicago Agree to Labor Cuts Lyric Opera of Chicago and

Read More

Unsung Hero: Wendy McCay

Dresser Wendy McCay with Lyric Opera Stage Artist J’nai Bridges during a candid backstage

Read More

Lyric Opera & IATSE Sign Labor Deal

  STATEMENT   Lyric Opera and IATSE Sign Multi-Year Labor Deal   CHICAGO

Read More

Unions Did Great Things for the Working Class

  In a 1979 paper entitled “The Two Faces of Unionism,” economists Richard Freeman and

Read More

How Unions Can Solve the Housing Crisis

  How Unions Can Solve the Housing Crisis The labor movement once built thousands of

Read More

City promotes theater scene

Chicago actor Michael Shannon speaks at a Sept. 17, 2018, news conference at Steppenwolf Theatre

Read More

IATSE PAC Fund Garage Sale

        September 16, 2018 With the mid term elections approaching quickly, the

Read More

Fun at the picnic!

Sister Marguerite Scott (and others) made the most of all the great entertainment offered at the

Read More

Growing number want to join a union …

A growing number of Americans want to join a union Nation Sep 3, 2018 5:14 PM EDT Only 10.7

Read More

IATSE Activism Manual

  IATSE Activism Manual     Activism isn’t about winning every fight. It’s

Read More

IATSE 125th Anniversary Party

Brad Matthys - President - Local 476, Mark Hogan - Business Agent - Local 476, Tom Herman -

Read More

New video: Celebrating 125 years!

Brothers and Sisters, As you are no doubt aware, on Thursday August 9, 2018 the International

Read More

Free subscriptions to LYNDA.COM

In our 3-year partnership with Lynda.com, over 10,000 IATSE members have used the site to

Read More

LYNDA.COM

You may have heard Lynda.com is moving to the IATSE Training Trust Fund. The TTF is pleased to

Read More

IATSE 125th Anniversary

Happy 125th Anniversary to our IATSE

  "For more than 100 years, we've been behind the scenes.  Since the early days of the

Read More

First Convention

First Convention of the National Alliance of the Theatrical Stage Employees July 17,

Read More

Five Justices Cannot Break Union Solidarity

  "One court case will not determine the fate of AFSCME or the labor movement. We will

Read More

I’m Sticking With The Union

    The Supreme Court just ruled against working people in Janus v. AFSCME, Council

Read More

Trumka/AFL-CIO on immigration

Trump Administration Trying to Loosen Child Labor

From CFL's Facebook post dated 5/17/18:   “Everyone deserves well-regulated, safe

Read More

8 Ways to Respect the Importance of Stage Etiquett

  A disclaimer before we continue. Theatre companies across the world have different ways

Read More

The Art of Rolling Socks!

Jean Fritz demonstrates the fine art of rolling socks (Cinderella style) ... with a pool

Read More

Stagehands (1950s)

Throw back Thursday to mid-century stagecraft, highlighted by AFL-CIO's Americans At Work film

Read More

What’s Wrong With the Broadway Musical?

  Once a universal cultural touchstone, Broadway musicals have now become a revolving door

Read More

Female-led “Range Runners” films in IL this su

Fatal Funnel Films announces cast for upcoming thriller ... Fatal Funnel Films, an

Read More

Broadway Wardrobe Dresser Secrets Revealed

When you are a wardrobe dresser, you get pretty good at cleaning costumes and figuring out how

Read More

Creating SNL: Meet the Parents Cold Open

Members of IATSE Local 798 transform Ben Stiller and Robert DeNiro into Michael Cohen and Robert

Read More

Every Actor Should be Involved Backstage At Least

  It is often said that “actors without stagehands are naked people standing in the dark

Read More

Invisible Heroes: An Ode to the Tech Team

  Having spent much of my theatrical history in the realm of the actor, the ins and outs of

Read More

Beyond A Quick Change: The Many Jobs Of A Dresser

    From THEATRE NERDS - October 2, 2017 Beyond The Quick Change: The Many Jobs Of

Read More

Origins of IATSE Stagehands Union

Origins of IATSE Stagehands Union To view the video ... click on the link

Read More

Stand Up, Fight Back!

The Stand Up, Fight Back campaign is a way for the IATSE to stand up to attacks on our members

Read More

It bears repeating: IATSE Equality Statement

Given the events of the past few days, weeks and months ... it bears repeating:   "Equal

Read More

The workers who make Broadway hum deserve a standi

BY Patricia White SPECIAL TO THE NEW YORK DAILY NEWS Saturday, March 25, 2017, 8:38

Read More

Know Your Rights – from the AFL-CIO

The following resources are intended help ensure that members of our unions know their rights

Read More

You Should Call, Not Email, Your Legislators

From the IATSE Facebook page: "Looking to channel your political energy? Here's why you should

Read More

IATSE Activism Manual

Activism isn’t about winning every fight.  It’s about getting out there and

Read More

IATSE Women’s Committee: Spread the Word!