Put Washington Back to Work

The Path to Economic Recovery is a Public Works Program combined with a Fair Tax Structure to Rebuild our Economy from the Bottom Up

The world is less and less disposed “to wait for the miracle”—to believe that things will right themselves without action on our part… There is no possibility of balancing the Budget except by increasing income, which is (only done by) increasing employment.

John Maynard Keynes, The Means to Prosperity  1933

What would FDR Do?

In a nearly identical financial crisis, FDR saved our nation by creating a Public Works Program:

“The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation. It is common sense to take a method and try it: If it fails, admit it frankly and try another. But above all, try something. The millions who are in want will not stand by silently forever while the things to satisfy their needs are within easy reach.”

FDR campaign speech  http://newdeal.feri.org/speeches/1932d.htm#23.

What would Truman and Ike and JFK Do?

From 1944 to 1963, the marginal tax rate for the wealthiest members of society hovered above 90%, with unemployment during this period as low as 1.2 percent and a high of 6.8 percent. Since 2001, the corporate tax rate has been lowered to 15% on capital gains –with many of the wealthiest corporations, like Exxon, paying no taxes at all - and the true unemployment rate has skyrocketed to over 20%.

A Simple Solution… Cutting Corporate Welfare instead of Cutting Education and Health Care

There is another option which does not require any cuts or any tax increase in the general public.  If we rolled back all corporate tax breaks to what they were in 1996, by simply repealing every corporate tax break passed since 1996, it would generate at least $6 billion in additional State revenue per year. Rather than firing 100,000 workers, we can create jobs for an additional 100,000 workers – bringing employment UP to 2.9 million instead of causing it to fail to 2.7 million.

We Should help those who are victims of the Recession instead of just helping those who caused it

The Solution is a Public Works Program combined with a Fair Tax Structure to Rebuild our Economy from the Bottom Up

WASHINGTON STATE PUBLIC WORKS PROGRAM

To reduce foreclosures and homelessness in Washington State, any worker who has been unemployed for a period of more than 6 months, or who has ran out of unemployment benefits, should be eligible to apply for a Washington State Public Works Program to be administered by the Washington State Employment Security Department. To the extent that funds are available, such jobs shall be for 32 to 40 hours per week paid at the Washington State minimum wage, but also including full medical and dental benefits through a Washington State Public Option health program. Such jobs shall serve the citizens of Washington State including, but not limited to assisting in public schools, health agencies, road construction and repair, school construction and repair, or any other jobs which provide worker training and public service.

WASHINGTON STATE PUBLIC WORKS TRUST FUND

To provide funding for these public service jobs, the legislature should repeal all tax exemptions passed since 1996. This will generate about $4 billion annually which will be placed in a Trust fund available to the Department of Employment Security to provide public service jobs as described in Section 7 above. It has been estimated that one billion dollars per year could provide at least 30,000 minimum wage public sector jobs. Repealing all tax exemptions enacted since 1996 should therefore provide at least 120,000 public sector jobs, as well as another 120,000 downstream private sector jobs through the “multiplier effect.” Creating 240,000 new jobs would be enough to return employment to about what it was at the beginning of the Great Recession – reversing the downward economic spiral our State economy has been on during the past three years and providing homeowners with a self sufficient pathway for staying in their homes.

A Simple Bill to Create 240,000 Jobs

NEW SECTION, Sec. 1. WASHINGTON STATE PUBLIC WORKS PROGRAM

To further reduce foreclosures and homelessness in Washington State, and to restore economic prosperity, any worker who has been unemployed for a period of more than 6 months, or who has ran out of unemployment benefits, shall be eligible to apply for the Washington State Public Works Program to be administered by the Washington State Employment Security Department. To the extent that funds are available, such jobs shall be for 32 to 40 hours per week paid at the Washington State minimum wage, but also including full medical and dental benefits through a Washington State Public Option health program. Such jobs shall serve the citizens of Washington State including, but not limited to assisting in public schools, health agencies, road construction and repair, school construction and repair, or any other jobs which provide worker training and public service.

NEW SECTION, Sec 2. WASHINGTON STATE PUBLIC WORKS TRUST FUND

To provide funding for these public service jobs, the legislature hereby repeals all tax exemptions passed since 1996. This will generate about $4 billion annually which will be placed in a Trust fund available to the Department of Employment Security to provide public service jobs as described in Section 7 above. It has been estimated that one billion dollars per year could provide at least 30,000 minimum wage public sector jobs. Repealing all tax exemptions enacted since 1996 should therefore provide at least 120,000 public sector jobs, as well as another 120,000 downstream private sector jobs through the “multiplier effect.”

 Conclusion… It is time to Put Washington Back to Work

By Rolling Back Tax Breaks for Major Corporations

Our State’s economy and our public schools are facing a financial train wreck in the next two years – with consequences more severe than anything we faced in the past 70 years. We need bold leadership and courageous action. An All Cuts Budget will only lead to the firing of more than 10,000 teachers – placing at risk the future of one million children. It will also lead to the firing of more than 100,000 other workers - sinking our State economy back into recession or worse. Unemployed workers cannot pay taxes and cannot shop at local businesses. This is why there cannot be a recovery until there is a full employment program in our State.

It doesn’t have to be this way. . If we rolled back all corporate tax breaks to what they were in 1996, by simply repealing every corporate tax break passed since 1996, it would generate at least $6 billion in additional State revenue per year. Massive tax exemptions for billionaires do not create jobs. Instead, they cost jobs.

Reducing corporate welfare for the richest corporations in the history of our planet will create more than one hundred thousand jobs and is the most important thing we can do to restore our economy.

We have a clear choice. We can either continue to fire thousands of State workers to protect tax breaks for major corporations. Or we can end tax exemptions for the rich to protect our State’s economy. As always, your comments and feedback are greatly appreciated.

Please feel free to email me if you have any questions.

Sincerely,

David Spring M. Ed.

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