Daily Archives: 23 May 2019

Union “Dues”

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Now the taxpayer looks to be on the hook.  At least in New York.

[O]n May 1, New York’s state Senate voted to let strikers get benefits one week after walking off the job—essentially putting them on equal footing with those who are laid off.
If Governor Andrew Cuomo signs this bill, he’ll effectively be using New York’s unemployment-insurance program to subsidize union strikes, upending the balance of power between workers and management.

Union strikes are little indistinguishable from extortion, except that they’re legal. They’re used to threaten a company’s ability to function—to survive—unless they surrender to union demands.  “Nice little business you got here. Be too bad if something was to happen to it.”

In a way, though, Cuomo’s pandering makes sense. Since unions can’t commandeer pieces of the paychecks of non-union workers anymore, they have to make up the money loss from somewhere.

Enter the victim-taxpayer.

A Foolish Proposal

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Senator and Progressive-Democratic Party Presidential candidate Kamala Harris has one.  She’s

proposing that large employers pay women on an equal basis with their male counterparts or face government fines, seeking a sweeping shift in the way the nation addresses pay inequity.

She wants to impose a 1% tax on “large” companies’ profit for every 1% disparity in pay.  The size of the disparity is an open question, though.  The favorite number of the Progressive-Democrats is that women are paid in the neighborhood of 70-75 cents for each dollar a man is paid for the same work; although the number Harris bandied was 80 cents.  That would make the Harris Payroll Tax run 20% or 25%-30% of profit.  The more valid, empirically derived number, though, puts that disparity between 0 and 7 cents less for the woman than the man, with a heavy lean toward the 7.  This more accurate number actually presumes to correct for time in the workforce, experience level on the job in question, and so on.

Beyond that, the Harris Payroll Tax is just plain bad finance.  Companies—small as well as large—pay Social Security and Medicare taxes on the wage they pay, and those same companies tie perks like health coverage, paid time off, bonuses, etc to the wage they pay.  An increase in wage would carry with it those added payroll costs.

It’d be cheaper for the companies to pay the Harris Payroll Tax than it would to raise the wage paid the woman.

Further, Harris would

put the burden on companies to demonstrate that they are not engaging in pay discrimination.

Because, typical of today’s Progressive-Democrats, we’re all guilty until proven innocent.  Especially when it’s difficult even to define the crime.