How Calfornia can help working families

By Laurence "Larry" Houlgate

Protecting essential services from severe budget cuts in funding by restoring top tax brackets; support for labor-friendly bills currently before the state legislature

Protect essential services from severe cuts in funding by restoring the top tax brackets. According to the California Labor Federation more than 100 religious, community and labor organizations are asking Governor Gray Davis and members of the Legislature to restore the top income tax brackets to raise revenues and protect essential services from severe cuts in state funding. Polls consistently show that voters oppose cuts to most services, including education, health care, mental health, and childcare.

"The impact of the current budget will be felt most by working families. We will bear the greatest burden in cuts to health and social services," said Viola Gonzales, Executive Director of Latino Issues Forum, and President of Health Access California. "Legislators can protect essential services, like our hospitals and emergency rooms that we all depend on, by restoring the top income tax brackets."

The groups, which include the California Council of Churches, Congress of California Seniors, League of Women Voters and scores of labor and children's advocacy organizations, want the top brackets restored just as they were under former Governor Pete Wilson to help solve a previous budget crisis (the Federation Executive Council took a position in favor of the higher rates in May).

Restoring the top tax brackets to their 1995 levels would affect only 2.4 % of California's families and generate $3.1 billion in the budget year. It would also shift some of the burden from working families, who are already likely to pay more in higher vehicle license fees and sales tax.

The higher rates would add a 10 percent tax rate for single taxpayers with taxable incomes in excess of $130,000 and married taxpayers with taxable incomes in excess of $260,000. The 11 percent rate would apply to single taxpayers with taxable incomes of more than $260,000 and married taxpayers with taxable incomes in excess of $520,000.

The recently passed federal income tax cut will provide savings to these high-income earners far in excess of the proposed increase in their state income taxes. In addition, these high-income earners will be able to deduct the increase on their federal tax returns, thereby having the federal government pay more than a third of the cost.

Labor councils and local union leaders are asked to call their respective local lawmakers to get their commitment toward supporting the top tax bracket proposal. For a sample letter of support for SB 1255, a bill by Senate President Pro-Tem John Burton (D - San Francisco) to restore the top brackets, go to the Federation's website: http://www.calaborfed.org.

Here is a list of a few bills that I strongly support: SB 1128 (Kuehl) - Misclassification for unemployment insurance. In 1999, the Employment Development Department found that almost 65,000 employees were misclassified as independent contractors. None of these workers would be eligible for unemployment insurance. This bill would conform the definition of employee under the Unemployment Insurance Code to that which is applied in the workers' compensation system.

AB 2845 (Goldberg) - Strengthening California's ergonomics standard. After 10 years of work by federal agencies, the Bush Administration has gutted any moves to develop standards to help prevent ergonomic injuries. California has adopted a standard, but it is too narrow to be preventive for workers. The Federation will resubmit its petition to strengthen our state ergonomics standard to the CalOSHA Standards Board once the labor vacancy has been filled.

AB 2242 (Koretz). Increasing the minimum wage. The Federation has petitioned the Industrial Welfare Commission (IWC) to create a wage board to consider the adequacy of California's minimum wage. We will also pursue legislation to provide indexing of the minimum wage to California's cost of living and increase penalties for employers who fail to pay the minimum wage. Increasing the minimum wage helps stimulate the state's lagging economy by putting money directly into the pockets of workers.

SB 1661 (Kuehl) - Paid family leave. California workers are eligible for up to 3 months of unpaid family leave to care for a sick family member, spouse, or new child. This bill would fund a maximum of 12 weeks of paid family leave, financed by employers and workers

Go to http://www.calaborfed.org/legislation/leg_agenda.htm for detailed information about each of these proposals endorsed by Larry Houlgate and the California Labor Federation