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BARACK OBAMA'S PLAN TO RAISE WORKERS' INCOMES*Paid for by Obama for America
Background: America's Workers and Indiana's Workers Deserve a Raise
Most Americans haven't gotten a meaningful pay increase since President George W. Bush entered the White House.
Since 2000, men's real wages have increased only about 1 percent. Women's wages have increased barely 5 percent over the past eight years, but their wages declined slightly during the last four years. In fact, the last four years have been grim for the large majority of workers who live from paycheck to paycheck. Real wages have gone down for middle and low-wage workers, while only the very highest paid workers -- the top 5 percent -- have seen significant pay raises. As a result, working families' incomes are falling.<1>
In Indiana, the story is just as bad. Since 2001, the median hourly wage in Indiana has declined by about 2 percent. Since 2000, a large majority of Indiana's workers, particularly those earning less than the median, have seen their pay go down after taking inflation into account.<2>
Workers are doing their share, but they aren't getting a fair share in return. Workers' productivity has increased almost 20 percent since 2000 and 5 percent over the last four years. Meanwhile, the economy has been growing until recently, and employers have reported record profits. American workers are getting paid less even though they are producing more.
Without a raise, working families have been forced to go deeper into debt by borrowing against their homes and their credit cards. But credit is getting tighter and personal bankruptcies and foreclosures have skyrocketed. It's not just a personal tragedy for the families that are falling out of the middle class. Consumer spending is two-thirds of the American economy. Without money coming in, working families can't spend and keep our economy growing. America's wage stagnation is a serious threat to family economics, but it is an equally serious threat to our nation's economic well-being.
That's why we need to elect Barack Obama. We need a president who is committed to restoring the American Dream by expanding and securing the middle class. We need Barack Obama's leadership to enact a plan to raise workers' incomes.
BARACK OBAMA'S PLAN TO RAISE WORKERS' INCOMEInvest in Creating High-Paying Manufacturing Jobs: Obama will invest in America's highly-skilled manufacturing workforce and manufacturing centers to ensure that American workers have the skills and tools they need to pioneer the first wave of green technologies that will be in high demand throughout the world. Obama will also provide tax assistance and loan guarantees to the domestic auto industry to ensure that new fuel-efficient cars and trucks are build in the U.S. with American workers.
Create More High-Paying Construction and Green Energy Jobs: Obama will invest $150 billion over 10 years to advance the next generation of biofuels and fuel infrastructure, accelerate the commercialization of plug-in hybrids, promote development of commercial scale renewable energy, invest in low emissions coal plants, and begin transition to a new digital electricity grid. Obama will also invest in rebuilding our nation's infrastructure by creating a National Infrastructure Reinvestment Bank with an infusion of $60 billion in federal funds over 10 years to expand and enhance, not supplant, existing federal transportation investments. Together, these investments will create millions of new jobs and stimulate economic growth.
Fight for Fair Trade: Obama's trade policy will open up foreign markets to support good American jobs and negotiate trade agreements that benefit Americans workers and spread strong and enforceable labor and environmental standards around the world. In particular, Obama will work with the leaders of Mexico and Canada to amend NAFTA. Obama will take trade enforcement seriously by making enforcement the top priority of the U.S. Trade Representative (USTR) Office and increasing resources for USTR to carry out its responsibility to protect American interests. He will also pressure the World Trade Organization to enforce trade agreements and stop countries from continuing unfair government subsidies to foreign exporters and nontariff barriers on U.S. exports. Obama will fight for stronger protections for U.S. intellectual property, and - in the case of China in particular - an end to an artificially devalued currency that puts U.S. companies at a perpetual disadvantage.
Change the Tax Code to Create High-Paying American Jobs: Obama will close tax loopholes that give companies billions of dollars in tax deductions for moving their operations overseas. Obama introduced the Patriot Employer Act of 2007 with Senators Richard Durbin (D-IL) and Sherrod Brown (D-OH) to reward companies that create good jobs with good benefits for American workers. The legislation would provide a tax credit to companies that maintain or increase the number of full-time workers in America relative to those outside the US; maintain their corporate headquarters in America; pay decent wages; prepare workers for retirement; provide health insurance; and support employees who serve in the military.
Support Worker Organizing: Unionized workers earn more and are more likely to have pensions and health insurance than non-union workers. Obama supports and, as president will sign, the Employee Free Choice Act, a bipartisan effort to assure that workers can exercise their right to organize and secure initial agreements with their employers. He will also fight to restore collective bargaining rights to nurses and other workers excluded as "supervisors," and to ban employers' practice of permanently replacing striking workers. Obama also supports, and as president will sign, the Public Safety Employer-Employee Cooperation Act to assure public safety workers who put their lives on the line every day their right to bargain collectively.
Raise the Minimum Wage: Obama will fight to further increase the minimum wage to $9.50 an hour by 2011 and index it to inflation.
Provide Universal Health Care: Obama is committed to signing universal health legislation by the end of his first term in office that ensures all Americans have high-quality, affordable health care. His plan will save a typical American family up to $2,500 a year on medical expenditures.
Expand and Increase the Earned Income Tax Credit: Obama will reward work by increasing the number of working parents eligible for Earned Income Tax Credit (EITC) benefits, increasing the benefit available to parents who support their children through child support payments, increasing the benefit for families with three or more children and reducing the EITC marriage penalty.
Provide a Tax Cut for Working Families: Barack Obama will restore fairness to the tax code and provide 150 million workers the tax relief they deserve. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans.
Expand the Child and Dependent Care Tax Credit: Obama will reform the Child and Dependent Care Tax Credit by making it refundable and allowing low-income families to receive up to a 50 percent credit for their child care expenses.
Increase Investments in Job Training: Obama will increase funding for federal workforce training programs and direct these programs to incorporate green technologies training, such as advanced manufacturing and weatherization training, to prepare Americans for the stable, high-paying green energy jobs of the future. Obama will also expand and fund apprenticeship programs to help workers get credentials and skills in crafts with middle-class incomes and benefits.
Make College Affordable for All Americans: Obama's American Opportunity Tax Credit, a fully refundable credit, will ensure that the first $4,000 of a college education is completely free for most Americans and will cover two-thirds of the cost of tuition at the average public college or university. Students claiming this credit will be required to conduct 100 hours of public service a year, either during the school year or over the summer months.
Help Dislocated Workers to Stay in the Middle Class: Obama will modernize and expand trade adjustment assistance to include all affected workers -- including those in the service sector and those losing jobs going to countries with which we do not have trade agreements such as China and India. Obama also supports unemployment insurance reform that assured benefits for more unemployed workers and provides extended benefits for those who need them. Obama will create flexible education accounts that workers can use to retrain, provide retraining assistance for workers in sectors of the economy vulnerable to dislocation before they lose their jobs, and provide additional assistance for workers to afford health care. As president, he will sign an updated WARN Act that requires large employers to notify employees of a layoff 90 days before a plant closing - an increase of 30 days from today' ;s standard.
<1> Jared Bernstein & Lawrence Mishel, Economy's Gains Fail to Reach Most Workers' Paychecks, EPI Briefing Paper #195 (Sept. 3, 2007).
<2> Indiana Coalition on Housing and Homeless Issues, The Status of Working Families in Indiana, 2007 Update, September, 2006,
http://www.ichhi.org/clientuploads/Indiana_Institute_for_Working_Families_2007_FINAL.pdf. ________________________________________________________________________________________________________________________________
BARACK OBAMA'S PLAN TO EMPOWER YOUNG WORKERS*Paid for by Obama for America
Background: America's Young Workers Need Opportunity to be Restored
For too many young workers today, the American Dream seems further and further out of reach.
Despite the need for education to be successful in a "knowledge economy," our high school and college graduation rates are not growing enough. About one-fourth of our high school students don't obtain a real diploma, while less than a third eventually get a bachelor's degree. Those who grow up in affluent families are likely to attend college, while those in middle and lower-income families are much less likely to attend. In fact, the gaps in college attendance between families with more and less resources are growing larger with time. And those who do attend college, especially from less-affluent families, are taking longer to complete their degrees than ever before.<1>
These trends are driven at least partly by the dramatic growth in the costs of college tuition both at public and private universities. More and more students must juggle taking classes with working part-time or even fulltime. Financial aid is now driven less by need than in the past and the financing of Pell grants for low-income students has failed to keep up with inflation in tuition costs.
For those who never attend college, economic opportunities are diminishing. Employment rates for men with less than a college education have fallen over time. When they work, their jobs are less secure. And their earnings have fallen behind those of young workers with college degrees. At the same time, federal support for job training of these workers has fallen dramatically over time.<2> And with today's economic instability, young workers are likely to be the first to become unemployed and the last to be rehired.
These issues are as important in Indiana as anywhere in the country. Each year about 59,000 students here graduate from high school, and 45,000 try to obtain postsecondary education. They struggle each day with rising tuition costs and the challenges of getting more schooling. In the Indiana job market, over 400,000 workers aged 16 - 24 and 1.1 million aged 16 - 34 face a shrinking number of jobs, especially at good wages.
Barack Obama wants to restore meaningful opportunities to young workers and to make the American Dream achievable once again.
BARACK OBAMA'S PLAN TO EMPOWER YOUNG WORKERSAddress the Dropout Crisis: Obama will address the dropout crisis by signing into law his legislation to provide funding to school districts to invest in intervention strategies in middle school - strategies such as personal academic plans, teaching teams, parent involvement, mentoring, intensive reading and math instruction, and extended learning time.
Create the American Opportunity Tax Credit: Obama will make college affordable for all Americans by creating a new American Opportunity Tax Credit. This fully refundable credit will ensure that the first $4,000 of college education is completely free for most Americans, and will cover two-thirds the cost of tuition at the average public college or university and make community college tuition completely free for most students. Recipients of this credit will be required to conduct 100 hours of public service a year, either during the school year or over the summer months. Obama will also ensure that the tax credit is available to families at the time of enrollment by using prior year's tax data to deliver the credit when tuition is due.
Simplify the Application Process for Financial Aid: Obama will streamline the financial aid process by eliminating the current federal financial aid application and enabling families to apply simply by checking a box on their tax form, authorizing their tax information to be used, and eliminating the need for a separate application.
Support College Outreach Programs: Obama supports outreach programs like GEAR UP, TRIO and Upward Bound to encourage more young people from low-income families to consider and prepare for college.
Increase Investments in Job Training: Obama will increase funding for federal workforce training programs. He will expand and fully fund apprenticeship programs to help worker get credentials and skills in crafts with middle-class incomes and benefits.
Raise the Minimum Wage: Barack Obama will raise the minimum wage to $9.50 an hour by 2011, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs. This will help raise the earnings of young workers.
Expand the Family and Medical Leave Act (FMLA) and Encourage Paid Leave: For young people who must balance work, schooling and parenting, Barack Obama will seek to expand the availability of parental leave. The FMLA now covers only certain employees of employers with 50 or more employees; he will expand the FMLA to cover businesses with 25 or more employees. Obama will also expand the FMLA to cover more purposes as well, including allowing workers to take leave for elder care needs; allowing parents up to 24 hours of leave each year to participate in their children's academic activities at school; allowing leave to be taken for purposes of caring for individuals who reside in their home for 6 months or more; and expanding FMLA to cover leave for employees to address domestic violence and sexual assault. And, as president, Barack Obama will initiate a 50 state strategy to encourage all of the states to ado pt paid-leave systems. Obama will provide a $1.5 billion fund to assist states with start-up costs and to help states offset the costs for employees and employers.
<1> James Heckman and Paul LaFontaine, "The American High School Graduate Rate; Trends and Levels," University of Chicago, 2007; and Maria Fitzpatrick and Sarah Turner, "Blurring the Boundary: Changes in College Participation and the Transition to Adulthood," in S. Danziger and C. Rouse eds. The Price of Independence: The Economics of Early Adulthood. New Y ork: Russell Sage Foundation.
<2> Harry Holzer and Paul Offner, "Trends in the Employment Outcomes of Young Men," Institute for Research on Poverty Discussion Paper, University of Wisconsin-Madison, 2003.