The National Education Association has thrown itself full force into the “corporate loophole” demagoguery campaign. According to the NEA, children are being victimized by avaricious corporate types who don’t pay their fair share of taxes. The NEA exhorts the American people to “stand up for the middle class and support closing corporate tax loopholes at the federal and state level, so that additional resources can be invested in public education and other services that build our communities.” In a message oozing with class warfare, we learn that “Corporate tax loopholes are costing our schools and communities resources that would help the next generation achieve the American Dream.” (Cue the violins.)
They then post a list of programs that would thrive if the greedy corporate bastards would just pay their fair share – Title 1, Pre-K education, etc. NEA of course fails to mention that these programs, though popular, are essentially federal boondoggles. They don’t really do what they purport to do. They do make work for unionized adults, however, which if you haven’t been paying attention, is all NEA really cares about. But I digress….
Using Citizens for Tax Justice as their source, NEA claims that closing the seven largest corporate tax loopholes would provide an estimated $1.487 trillion in additional revenues over the next ten years. Coincidentally, CTJ just happens to be the union founded and funded lobbying wing of something called the Institute on Taxation and Economic Policy.
At this time, the U.S. corporate tax rate is 35% which is the highest in the world and since their fiduciary responsibility is to their stockholders, corporations might indeed need to find ways to save money.
But, maybe there are a few corporate loopholes that should be closed. And I have just the one that we should start with. Using information gathered from the U.S. Department of Labor, RiShawn Biddle reports,
Overall, the NEA collected $399 million in dues and other revenues in 2010-2011, barely budging from revenue numbers last year. This despite a four percent decline in membership, from 3.3 million members in 2009-2010 to 3.2 million in 2010-2011.
Sad to say that the bulk of that $399 million comes from union dues automatically deducted from teachers’ paychecks. Most public school teachers in the U.S. are forced to pay union dues as a condition of employment. And of course, all public school teachers are funded by taxpayer dollars. So it is the private sector that is actually funding an entity that is trying to extort even more money from the private sector.
What did NEA do with that $399 million? One third or $133 million went on politics and “contributions” to groups that support NEA’s agenda. In fact, referring to the National Education Association and the American Federation of Teachers’ political spending, teacher union watchdog Mike Antonucci wrote in 2009,
…America’s two teachers’ unions outspent AT&T, Goldman Sachs, Wal-Mart, Microsoft, General Electric, Chevron, Pfizer, Morgan Stanley, Lockheed Martin, FedEx, Boeing, Merrill Lynch, Exxon Mobil, Lehman Brothers, and the Walt Disney Corporation, combined.
Moreover, if NEA gets its way and the 35% corporate tax rate stays in place and the loopholes are plugged, Americans will be paying more for the products made by corporations. Just what the country needs – higher prices. As of now, Americans will spend more in taxes in 2012 than they will on food, clothing, and housing combined.
Oh, and one other little minor detail. The NEA is a corporation that is accorded a 501(c)(5) tax exempt status. So out of the $399 million they took in, NEA paid $0 in taxes!
It is not only the national teachers unions that get away with loophole flimflam; all the state teacher union affiliates take advantage of their tax exempt status too. In my state, the California Teachers Association brings in almost $200 million a year and pays $0 in taxes. CTA also spends more on lobbying and politics (again, with forced dues) by far than any other corporation in the state.
If we are to close one corporate loophole, we need to start with the one that benefits the teachers (and in fact, all) unions. Parents, children and taxpayers will greatly benefit. The losers will be a certain group of brazen corporate types that have been getting away with theft for far too long.
Perhaps blogger Jason Arluck put it best,
Taken together, the National Education Association (NEA) and the American Federation of Teachers (AFT) represent the single largest lobbying conglomerate in the country, but unlike private firms, their contributions come from the pockets of American taxpayers who are forced to fund not just America’s failing public schools, but also one of main sources of their failure.
Today is April 17th, the day our income taxes are due. It would behoove each and everyone of us to think about how much of our hard earned money we are forced to pay to the more aptly named National Extortion Association and other teachers unions, the true exemplars of corporate greed.
(Larry Sand, a former classroom teacher, is the president of the non-profit California Teachers Empowerment Network – a non-partisan, non-political group dedicated to providing teachers with reliable and balanced information about professional affiliations and positions on educational issues. Originally posted on UnionWatch.)