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Congress Passes Stimulus Package NWLP-2-20-09:NWLP 2/17/09 10:08 AM Page 1 See Inside MEETING NOTICES Page 4 Volume 110 Number 4 February 20, 2009 Portland, Oregon Congress passes stimulus package By DON McINTOSH fought hard in Washington, D.C., for a Associate Editor federal economic rescue bill that would To respond to the biggest economic emphasize spending on infrastructure crisis in at least a generation, Congress — so-called “shovel ready” projects in mid-February passed its biggest stim - that could immediately employ work - ulus package ever, the American Re - ers. But infrastructure investments covery and Reinvestment Act of 2009. ended up being less than 10 percent of The act’s $787 billion in new federal the American Recovery and Reinvest - spending and tax cuts will cushion the ment Act, while tax cuts were four times plight of the jobless and put some peo - that amount. The package is projected ple back to work. to cost $787 billion; $461 billion of that Will it bring about recovery? Time is new spending, and $326 billion (41 will tell. The package may end up cre - percent) is tax cuts. ating as many as 700,000 jobs in con - Tax cuts are a diluted way to stimu - struction, for example, but there are al - late an economy compared with direct ready 1.7 million unemployed construc- spending, critics like U.S. Rep. Peter tion workers, and Americans lost DeFazio (D-Ore.) argued. DeFazio was 598,000 jobs overall last month alone. one of the seven Democrats to vote The Obama Administration says 3.5 against the stimulus bill, after infra - million jobs will be created or saved structure spending was greatly reduced. over the next two years (estimating The biggest of the tax cuts — the 44,000 jobs in Oregon and 75,000 jobs Making Work Pay tax credit — Another day at the office in Washington), with over 90 percent in amounts to just under $8 a week for an the private sector. individual. Mike McCoy of Iron Workers Local 29 welds on the 16th floor of the First and Main Building under The final bill signed by President Unlike the multiple rounds of tax construction in downtown Portland. The union “raising gang” topped out the environmentally friendly, Barack Obama on Feb. 17 was very dif - cuts approved during the Bush Admin - 346,500 square-foot office building on Feb. 16. General contractor Hoffman Construction threw a ferent from the version the U.S. House istration, this set of cuts does not give recognition party for the entire crew Feb. 4. Weather has played a factor on the project as snow storms passed two weeks earlier — tax cuts the biggest benefit to the richest payers. in late December and high winds in January forced workers off the job for more than a month and a were increased, infrastructure spending The Making Work Pay tax credit was half. The developer is San Francisco-based Shorenstein Properties. was decreased, and state governments proposed by President Obama in order got a lot less aid. The U.S. Senate made to fulfill a campaign promise that 95 change after change to accommodate its percent of American workers would see Republican minority, which then voted lower taxes. The credit will be $400 for against it anyway. Leaders of both individuals and $800 for couples and it chambers then met to work out differ - will appear immediately on paychecks, ences in their versions, and presented a thanks to a change in the withholding final bill for approval in the House and formula. It applies to wage earners mak - Elections Division looking at Sizemore Senate. ing up to $75,000 ($150,000 for a cou - “I feel like we had a bipartisan pack - ple), and fades out gradually above that It appears Oregon’s newly-installed evidence that he moved money around ATRF, for example, received age,” said U.S. Sen. Jeff Merkley (D- amount. It will cost the U.S. Treasury Secretary of State Kate Brown will use in ways that may have violated the law. $913,000 from Loren Parks, his com - Ore.) at a Feb. 16 Portland press confer - $20 billion this year, $66 billion next the power of her office to make sure Five organizations set up or con - pany, and his charitable foundation over ence explaining the bill. “We did not year, and $30 billion the year after. Then election laws are complied with — trolled by Sizemore — CBS Consult - a two-year period, much of which was have a bipartisan vote.” business tax cuts in the bill amount to even by longtime scofflaw and union ing, Initiative Resource Management, paid directly or indirectly to Sizemore, In the Senate, the final version $76 billion over the next two years. And foe Bill Sizemore. American Tax Research Foundation who was working to get measures on passed 60 to 38, with Republicans pro - another $70 billion is the cost of a one- On Feb. 12, the Oregon Elections (ATRF), the Initiative Preservation In - the ballot. viding all the “no” votes and just three year “patch” to limit the Alternative Division, which Brown oversees, stitute, and Democracy Direct — re - Sizemore has been given a deadline of the “yes” votes. In the House, where Minimum Tax. It’s hard to see how that opened an investigation to determine ceived or spent money from Sizemore’s of March 16 to provide details about it passed 246 to 183, not a single Re - could be considered a stimulus: Con - whether Sizemore violated campaign millionaire financial backers, Loren the purposes and activities of the publican voted for it, while all but seven gress has passed a similar measure finance laws last year in waging several Parks and Richard Wendt, or from groups, and to make all financial Democrats voted for it. every year since 2001. ballot initiative campaigns. Sizemore groups they control. records for the groups available to an “You’ll have to ask those across the For the most part, the tax cuts will fielded four ballot measures in Novem - The investigation will seek to find Elections Division compliance special - aisle why they chose to go a different di - generate relatively little economic ac - ber that were opposed by unions and out whether those five groups should ist. rection,” Merkley said. “I think they’ve tivity. But the spending parts of the rejected by voters. Oregon law requires have registered as political action com - If Sizemore is shown to have failed stated fairly clearly what they’re doing. stimulus package will put money in the political campaigns to disclose who mittees and whether the official ballot to report political campaign contribu - They hope to take the mess they’ve cre - hands of unemployed and low-income their funders are. But a Dec. 1 judge’s measure committees run by Sizemore tions, he could face civil penalties of up ated over the last eight years and turn it workers, and put some back to work. ruling in a long-running teachers union failed to report in-kind contributions to $10,000 for every transaction he into President Obama’s mess.” The summary of the stimulus package’s lawsuit against Sizemore highlighted from the groups. failed to report. Since late last year, unions have (Turn to Page 8) NWLP-2-20-09:NWLP 2/17/09 10:08 AM Page 2 UNITE leaders try to dissolve SEIU offers hotel/restaurant union merger wage freeze WASHINGTON, D.C. (PAI) — vice presidents passionately explained By a 39-23 vote, UNITE HERE’s Ex - what the deep divisions within the ecutive Board on Feb. 9 defeated a mo - union are doing to our ability to repre - to ease state tion to dissolve the merger between the sent members and meet the challenges old Union of Needletrades, Industrial we face.” budget crisis and Textile Employees (UNITE) and Romney also criticized the majority the Hotel Employees and Restaurant for not discussing the issue openly. He Employees (HERE). called that another sign of intransi - SALEM — Reacting to the State of The unions merged in July 2004, gence and said “reconciliation is not Oregon’s budget crisis, the largest bringing together 450,000 members. possible” in UNITE HERE. union of state employees went public Reports differ on the reason for the At the time of the merger, HERE Feb. 12 with a proposal for a two-year attempted breakup. Edgar Romney, had more members than UNITE, and freeze of pay steps and eight unpaid UNITE HERE’s executive vice presi - it has since undertaken successful or - furlough days. dent who led the dissolution, cited a ganizing drives in the Las Vegas-based Service Employees International number of factors. But a staffer on the gaming industry. But at the same time, Union (SEIU) Local 503 made the of - prevailing side told PAI the motive was HERE President John Wilhelm be - ILWU rally at Rite Aid fer at a Feb. 10 contract bargaining ses - sion. The union is negotiating a new a plan by General President Bruce came president of the Hospitality In - Union members rallied outside Rite Aid stores in four states Feb. 13 to draw Raynor (the former president of dustries sector of the merged union, two-year agreement to replace the one attention to the company’s anti-union conduct. Some 700 workers at Rite that expires June 30. Local 503 repre - UNITE) to withdraw his union and taking a back seat to Raynor. Aid’s distribution center in Lancaster, Calif., have been trying to join the merge it with the Service Employees. Though Romney said all the votes sents more 22,000 workers at 20-plus International Longshore and Warehouse Union since 2006.
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