The Indiana State AFL-CIO does not have an anti-business attitude, we fully realize that our jobs depend upon the success of business, and we want to work with, rather than against, them to achieve that success. However, our members are taxpayers, just like all other citizens, and we think it is the responsibility of government to establish and maintain good sound economic and public policy. At the present time, we think these policies are out of hand and lack public accountability. We have seen both the growth and utilization of these incentive programs increased throughout the state. Government has been asked to give corporations tax breaks on property, equipment, training, resource recovery, etc. About the only thing that has not YET been asked for, is for government to guarantee purchase of a business's goods or services at a profit. We have observed business' issues, a list of demands that they must have from a unit of government to either maintain their operation or to move their operation to this state. We feel these demands are implied threats, issued by businesses, in order to achieve their goal of acquiring their tax incentives. When multiple cities or states become involved in a bidding war, to obtain or maintain one of these corporate businesses, and these tactics are applied we visualize these implied threats, to achieve these goals, as nothing less than borderline extortion.
Many conservative politicians are calling for accountability in all social welfare programs. We agree with that, BUT we think similar accountability measures must also be included in ALL corporate welfare programs as well. We specifically think the aid for dependent corporations (AFDC) should end after a period of no longer than 2 years. We think REAL welfare reform should include everyone living off the public dole (including Dependent Corporations).
Our members want to stop the explosive growth in property taxes, which we feel is caused by the shift created through Corporate Welfare programs such as; Enterprise Zones, Resource Recovery, Tax Abatements, Worker Training Funds, Tax Increment Financing programs, IRB's, Grants, etc.
Individual property owners have seen their property taxes increase dramatically due to corporations receiving tax breaks, and thus being relieved of paying the tax that primarily funds our schools.
We think these Corporate Welfare programs should be improved by adding the following reforms to them:
- Require businesses granted any of these entitlements to continue to operate in the local community or area, for which the welfare entitlement was granted, for a period of time after the entitlement expires equal to the length of the entitlement; and to do so at an employment level at least equal to the average employment utilized by the recipient during the life of the entitlement and at compensation levels equal to or above the highest annual company compensation package paid out during the life of the entitlement.
- The State should be required to establish one central location where ALL the information, from all over the state, concerning these Corporate Welfare programs is reported annually on a standardized form, easily understood by a lay person and where any taxpayer may go to acquire ALL the data reported regarding these Corporate Welfare programs.
- Require all units of government, providing any welfare entitlements to corporations, to annually report to one central location the Fiscal Impact of such entitlements on all taxpayers not receiving the entitlement. Local units of government issuing any and all corporate entitlements must notify, by mail, annually all taxpayers within the unit of local government a Fiscal Impact statement in easy to read and understandable layman's language detailing the impact on local taxpayers and breaking down such report to show how it affects schools, roads, property taxes, etc.
- Require the businesses receiving or applying for these welfare benefits to include, on its statement of benefits, "an estimate of the local economic benefits that will be realized as a result of the redevelopment or rehabilitation".
- Require all business applicants to live up to the full terms stated on their application for the entitlements, or else experience a proportional reduction in the entitlement amount.
- Convert all the entitlements for corporations to a dollar amount of earned income for assessment as earned corporate state income, in regard to corporate state income tax owed.
- End all welfare aid to a dependent corporation after a period of no longer than two years.
- Require businesses granted these welfare benefits, to the greatest extent possible, to hire residents of the county in which the revitalization area is located, to fill jobs as a result of the entitlement.
- Require businesses receiving these welfare benefits to use to the greatest extent possible, Indiana suppliers of goods and services when providing the goods and services required as a result of the entitlement.
- Require all businesses receiving entitlements to pay their employees above, whichever is higher, the county average or industry average rate of pay per hour. Benefits shall not be included in the calculation of rates of pay.
- Require employers receiving entitlements to provide and pay at least 80% of health care premiums for all employees with a minimum benefit schedule equal to parts A&B of Federal Medicare.
- Require any unit of government that grants a business one or more of these entitlement programs to implement claw back provisions which would automatically terminate an entitlement if the corporation utilizing such becomes involved in a lawful labor dispute and resorts to temporarily or permanently replacing their workforce. Additionally, the state should annually publish, for its citizens to review, a fiscal impact statement which would include the impact of both replacement and replaced workers throughout the state.
- State or local units of government should be prohibited from purchasing services or supplies from a business receiving welfare benefits if the business hires temporary or permanent replacement workers during a labor dispute.
- Make all employees, of an employer receiving the welfare benefits, automatically eligible for full Indiana Unemployment Benefits, if they are temporarily or permanently replaced by such employer during a lawful labor dispute.
- Amend IC 22-6-1-4 Sec. 4(f) to allow peaceful assembly "Regardless of the size and location of the assembly " if such employees are temporarily or permanently replaced during a labor dispute by an employer receiving these welfare benefits.
- Mandate the following information request to be added to current application requirements when applying for any type of corporate welfare entitlements at all levels of government.
- Has the corporation received tax breaks, subsidies, grants, or other assistance from our community or any other community before? How did they use that assistance?
- Has the corporation closed up shop elsewhere so they can move here? Have they laid off workers lately?
- What have their profits been over the last ten years?
- What are the wages that they pay each individual classification of workers in their company? Do they offer full-time jobs with basic benefits (health, pension, etc.)? Benefits shall not be considered wages in this instance.
- How does the corporations, CEO and top officials' pay compare to that of average workers? Compare wages bonuses and benefits separately.
- Will the corporation hire at least ninety percent of its employees from within the community?
- How much did the corporation pay in federal, state, and local taxes last year? How does it compare to their profits? What tax breaks do they already receive?
- What is the total amount of corporate welfare benefits they are asking for? What is the cost to taxpayers for each job created?
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