Subsidized union busting
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Tax Credits for New Jobs, but Really for Union Busting?
A California-based company called VWR is busting its union, moving work to a non-union workforce a few hours away and receiving both federal and state tax incentives to do it. The scandal is yet another example of how companies can game the tax systems while hurting workers, and the government does little to stop them.
In Brisbane, Calif., 183 workers, members of Teamsters Local 853 that work at VWR, will lose their jobs at the end of the year when their scientific chemical warehouse closes. VWR, which is owned by Chicago-based private equity firm Madison Dearborn Partners, is moving the warehouse 230 miles away to Visalia, Calif. At the warehouse in Visalia, workers will be non-union and are expected to make half of what the current workers in Brisbane earn, according to the Teamsters.
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an example of why tax credits for businesses are poor policy
Both the Obama "jobs" bill and the Progressive Caucus budget were stuffed with similar "tax credits" for businesses, which supposedly create jobs.
Better to give tax credits to ordinary people, or give jobs to ordinary people, instead of giving subsidies to businesses and expecting it to trickle down.