ACTION NEEDED: Tax bill takes away from unemployment fund
The Republican tax bill would result in millions of dollars in cuts to the Railroad Unemployment Insurance Trust Fund and take funds away from out-of-work employees. Tell your senators and representatives to VOTE NO.
Next week, the House and Senate are expected to vote on a tax bill that is expected to add $1.5 trillion to $2 trillion to the federal deficit in the form of corporate and individual tax cuts. According to estimates, the Railroad Unemployment Insurance Trust Fund could lose as much as $9 million without any subsequent action by Congress under a 2010 budget process known as sequestration.
“Required spending reductions would significantly exceed the total resources available to be sequestered,” said Michele Neuendorf, a Railroad Retirement Board (RRB) labor member counsel, in an email. “This would have the practical result of a 100% sequestration of all non-exempt direct spending accounts including the funds from the Railroad Unemployment Insurance Trust Fund which is used to pay unemployment and sickness benefits.”
Under the federal “Pay-As-You-Go” (PAYGO) Act of 2010, federal spending is required to balance or offset any increases to the federal budget deficit (also known as sequestration). As a result, the tax bill would trigger automatic budget cuts across all federal programs including the RRB’s Railroad Unemployment Trust Fund, which is targeted for a 6.6 percent cut or approximately $9 million in the 2018 fiscal year by the administration.
“This tax proposal is Robin Hood caught in reverse,” said SMART Transportation Division National Legislative Director John Risch. “It would take from the poor and give to the rich. If the tax bill becomes law, the railroads will still be able to deduct money that they spend on union-busting lawyers while our members will no longer be able to deduct their union dues. The corporate tax rate for the big railroads will go from 35% to 21% while ours will stay the same with fewer deductions.”
It also means that $9 million intended for ailing and unemployed rail workers doesn’t go where it was supposed to. Instead it will go into the pockets of corporations and the well-to-do.
“Every person in America should be outraged that the Republican tax bill will borrow $1.5 trillion to $2.5 trillion to fund tax cuts for the wealthy while leaving no room for future federal investments toward infrastructure projects such as airports, transit systems, and passenger railroads,” Risch said. “I’ve been in the business of government policy since the 1980s and this is simply the worst tax proposal I have ever seen. Economists across the political spectrum are condemning this plan and the Republicans are so desperate for some sort of ‘win’ they are moving forward with little to no transparency or accountability to their constituents.”
Time is running out. A vote is planned for next week. Call your senators and representatives and urge them to vote against the tax bill.
Find out who your members of Congress are by accessing the SMART-TD Legislative Action Center or call the U.S. Capitol switchboard at (202) 224-3121.