Category Archives: politics

Recipe for War: Unilateral Withdrawal from West Bank

By Khaled Abu Toameh

Israel’s Defense Minister Ehud Barak believes that Israel should consider a unilateral withdrawal from the West Bank if negotiations with the Palestinian Authority fail to bear fruit.

Under the current circumstances, such a move would lead to the creation of another radical Palestinian Islamic entity, this time in those parts of the West Bank that would be handed over to Mahmoud Abbas and Salam Fayyad.

Any land that is handed over to the Palestinian Authority would end up in the hands of Hamas.

In the summer of 2005, Israel pulled out of the Gaza Strip, passing it to Abbas and his 40,000-strong Fatah-dominated security forces.

A few months later, thanks to a free and fair parliamentary election that was held at the request of the US and some EU countries, Hamas came to power.

One of the main reasons Hamas scored a victory in that election was because it took credit for driving Israel out of the Gaza Strip through rockets and suicide bombings.

A year later, in the summer of 2007, it took fewer than 10,000 Hamas militiamen to defeat Abbas’s security forces and bring down the entire Palestinian Authority regime in the Gaza Strip.

Hamas’s rule over the Gaza Strip has since brought more suffering and bloodshed for both Israelis and Palestinians.

Once Israel carries out a unilateral withdrawal, the same scenario is likely to be repeated in the West Bank.

Even though Hamas does not have a strong military presence in the West Bank, the movement seems to enjoy much popularity among Palestinians.

The so-called Arab Spring, which has seen the rise of Islamists to power in a number of Arab countries, has emboldened Hamas and other radical Palestinian groups, such as Islamic Jihad.

These groups have managed to attract many followers by offering themselves as the best alternative to Western-backed corrupt secular dictatorships in the Arab world.

As before, Hamas’s chances of taking over the West Bank are high after the failure of Abbas’s ruling Fatah faction to implement significant reforms or combat rampant corruption.

Fatah lost the 2006 parliamentary election mainly because of its leaders’ involvement in the embezzlement of public funds. Since then, Fatah has failed to draw the conclusions from its defeat and has not even been able to come up with a new list of capable candidates that could attract Palestinian voters.

The same Fatah men who lost the vote are, in fact, continuing to run the show in Ramallah — as if they had never lost.

Even if the Islamists do not take over the West Bank in the aftermath of a unilateral Israeli pullout, it is almost certain that the Palestinian Authority would not be able to prevent local gangs and clans from seizing power.

The case of Jenin, a city in the West Bank, is a good example of the weakness of the Palestinian Authority security forces, especially with regard to imposing law and order: Palestinian Authority officials have admitted that Jenin has been controlled over the past two years by Fatah militiamen and thugs who worked closely with many top Palestinian security officers, imposing a reign of terror and intimidation on the city’s residents.

A unilateral withdrawal from the West Bank could mean that Palestinian cities like Ramallah, Nablus, Jenin, Bethlehem and Hebron would fall either into the hands of Hamas or armed Fatah gangs.

Abbas and Fayyad would not be able to do much to prevent a return to scenes of anarchy and lawlessness that were once prevalent on the Palestinian street.

The chaos and violence inside the Palestinian cities would also spill over into Israel, forcing it to launch another “Defensive Shield” type of operation, like the one in 2002, to clear the area of armed gangs.

Before withdrawing from any area, Israel needs to make sure that those who would be in charge would not run away, handing the territories to Hamas or any other local gangs. Under the current circumstances, a unilateral and unconditional withdrawal would only be a recipe for more violence and bloodshed and repression.

Khaled Abu Toameh, an Arab Muslim, is a veteran award-winning journalist who has been covering Palestinian affairs for nearly three decades. His articles have appeared in numerous newspapers around the world, including The Wall Street Journal, US News & World Report and The Sunday Times of London. He cover Palestian affairs for the Jerusalem Post and serves as a producer/consultant for NBC News. His article was originally published by the Gatestone Institute on June 8, 2012.

The Corruption is Now Complete

By David Zanotti

Back in 1988, we really were not all that interested in entering a fight on casino gambling. The Roundtable had been in operation for eight years. We had many issues far more pressing than gambling expansion. Then we began doing serious research on the history of legalized gambling in America, with a particular focus on the corruption gambling interests bring to civil government. That study led to more research on rising gambling addictions and the destruction of families. Along the way we met Sandy Walgate, a schoolteacher from East Liverpool who shared her story of nearly losing her star athlete son to a gambling addiction. Through Sandy’s tears this all became very real.

For almost 25 years now we have been presenting the evidence that gambling ruins lives and corrupts government. All the honest research is conclusive. The gambling industry thrives on addicts. When government gets into business with the gambling industry, the government partners in the addiction business. What politicians intentionally ignore is the inevitable reality that once state and local budgets are addicted to gambling revenues, the casino bosses call the shots. Thus, gambling and good government don’t ever mix.

Before the first casino even opened its doors in Ohio, this inevitable reality proved true once again. Not content with a private monopoly amendment they wrote into the Ohio Constitution, Penn National and Dan Gilbert (Ohio’s current casino overlords) wanted more. They found a greedy legislature and a willing partner in Governor Kasich. Together they cooked up a scheme to take a “limited” gambling proposal passed by the voters in 2009 and blow it into a full-scale plan for virtually unlimited gambling across the state.

Had they chosen to take this new plan to the voters and further amend the Ohio Constitution, as the law requires, it would have been a fair fight. Instead they decided to deny the precedents of legal construction and constitutional law dating back to before the Civil War. They just passed a law giving the government, the casino overlords and the greedy lawmakers whatever they wanted.

They tried something similar about 10 years ago in Ohio. They decided to expand the Lottery, but rob the schools of the new funding. The Roundtable sued because the new law directly violated the state constitution. We gained standing in the case, won the funding argument, returned the money to the schools and the case was upheld on appeal.

This time around, with a law passed that violated the state and federal constitutions in at least 17 places, the Roundtable sued again in the same Franklin County Court. To the amazement of many, Judge Timothy Horton, after eight months of deliberations refused to hear the case stating that none of the plaintiffs, including the Roundtable had the right to bring such a case to court. Ten years ago we did have standing and the courts upheld a significant portion of our challenge, this year we don’t have the right to a day in court on very similar claims. How exactly does that work?

So the Ohio Constitution, Article XV has been amended to expand gambling dramatically, but you won’t find the words there. The constitution was overridden by a simple statute passed by the Legislature at the request of the Governor. The people of Ohio had no say on the destruction of three constitutional provisions on gambling they passed in 1973, 1987 and 2009.

The politicians got the money they wanted. Their lobbying friends and lawyers got paid. The gambling industry got everything they wanted and the citizens of Ohio had no legal say in the matter. Which all proves the point we first discovered from studying the history of gambling back in 1988. Gambling and good government don’t ever mix.

David Zanotti is CEO of the American Policy Roundtable, the parent company of the Ohio Roundtable, established in 1980. The Roundtable is a non-profit, independent education and research organization specializing in public policy.

Parental Rights Amendment Introduced

A proposed amendment to the U.S. Constitution that would preserve the longstanding traditional right of parents to direct the upbringing and education of their children was introduced last week in the U.S. Congress.

Lead sponsor Trent Franks (R-AZ) was joined by 32 cosponsors in introducing House Joint Resolution 110 in the House. The Senate version, Senate Joint Resolution 42, was led by Senator Jim DeMint (R-SC) and had 9 cosponsors at its introduction.

“We must protect the liberty of parents to direct the upbringing and education of their children,” DeMint declared. “Unfortunately, parental rights are under attack, and a safeguard like this amendment is necessary. Neither the federal government nor international law should micromanage how parents are able to raise their children. Parents are best equipped to decide how their children are raised and educated, not bureaucrats from Washington and the United Nations.”

Supporters anticipate a congressional hearing on the measure, given lead sponsor Trent Franks’ position as chairman of the Constitution Subcommittee of the House Judiciary Committee, to which the House version will be assigned.

“In my three decades of public service, I have consistently focused on protecting the right of parents to make decisions for their children,” Congressman Franks says. “Put simply, there are really only two options when it comes to who will determine the substance of a child’s education: it will be either a bureaucrat who doesn’t know the child’s name, or a parent who would pour out their last drop of blood for the child.

“I intend to continue that fight in my role as Chairman of the Constitution Subcommittee, doing everything in my power to help advance the vital Parental Rights Amendment through Congress. Nothing is more important to America’s future than making sure that the education of the hearts and minds of our children is securely in the purview of the parents who love and understand them most.”

This marks the third straight session of Congress in which the PRA has been introduced, and support for the measure is growing. “The PRA had 141 cosponsors in the House during the last session of Congress, but we expect to see even more support this time around,” says Michael Farris, president of ParentalRights.org, which organizes grassroots efforts for the amendment.

“The Supreme Court has accurately said that parental rights are ‘perhaps the oldest of the fundamental liberty interests recognized by [the] Court,’ yet those rights now lack sufficient legal protection under the Constitution,” Farris continues. “Thanks to concerned citizens and engaged leaders in Congress, we look forward to correcting that problem through the adoption of this amendment.”

For more information on the proposed amendment, visit ParentalRights.org online.

What Do the Wisconsin Governor Recall Results Mean for Ohio?

By Kevin Holtsberry

This is a question a lot of people are asking themselves in light of Wisconsin Governor Scott Walker’s strong victory in the recall election Tuesday night. I offered some thoughts and reactions for ABC 6/Fox 28 here in Columbus yesterday (you can watch the video here).

I think one easy takeaway is that the basics still matter. Fundraising, voter turnout systems, a highly motivated base and a favorable calendar all still matter. Governor Walker raised a lot of money, motivated his supporters and ran a disciplined and effective campaign that won the turnout battle. He also had the added benefit of running on his record a year after the legislation passed and against a specific opponent.

But I also think the recall sends the message that public sector unions are not invincible. No matter how you slice it a loss, is a loss, is a loss. When Governor Walker embarked on the fundamental reforms needed to get control of Wisconsin’s budget and plan for a sustainable future he ran smack into the implacable opposition of public sector unions and their allies. They immediately set about to overturn this necessary reform by removing Walker from office. Many assumed they would be successful.

But what Tuesday’s results showed is that this opposition can be weathered and ultimately defeated. Walker stood his ground, built a large coalition and network of support, and used that foundation to run a focused and strategic campaign that communicated what was at stake to persuadable citizens.

This is a lesson worth remembering. Nothing is inevitable.

Which is good news because, despite the lingering effects of Issue 2, Ohio’s structural problems are not going to go away. An outdated, industrial, big government economic model has led to stagnation and growth deficits.

  • A lack of worker freedom is still a drag on Ohio’s economy and has been sending jobs and citizens to the South and West for decades, in fact we lost 614,000 private sector jobs from 2000-2010, more than any other state in the country except Michigan;
  • A public sector compensation system based on tenure and political power rather than talent and success still drives an unsustainable budget process, and poor service delivery, from the local level up to the Statehouse;
  • Gold plated pension benefits, and a system where all the risk is on the taxpayer, have created $70 billion and counting in unfunded liabilities.
  • Ohio must begin to address these issues if it is to be competitive and avoid the crippling crisis griping governments from Illinois to California to Greece and Spain.

    The answer lies in a sustained education, communication and engagement process that helps Ohioans understand why reform is in their best interest and will lead to better lives for their families and businesses; it will mean more jobs, better services and stronger communities. And this effort will require building a broad based coalition from across the state to counter the still-powerful groups that insist on the status quo.

    We at the Buckeye Institute are committed to researching and communicating solutions to these fundamental problems. We are committed to working as part of a larger coalition to build support for reform and to counter the misrepresentation and fear mongering that so often is involved in these types of debates.

    We come to work everyday seeking ways to engage Ohio citizens and policy makers and to communicate the urgent need for reform. The events in Wisconsin prove that success is possible, that bold reform can succeed.

    Nothing is inevitable. We can win. We can increase freedom and opportunity in Ohio.

    It won’t be easy, change never is, but it is what we must do to put Ohio back on the path to growth and prosperity – to build a future for our children and grandchildren.

    —————

    Kevin Holtsberry is President of the Buckeye Institute for Public Policy Solutions

    Madrid Family Confab Mixes Concern with Hope

    By Piero Tozzi, J.D.

    (PHOENIX, C-FAM) As pro-life and pro-family leaders from around the world gathered in Madrid over the last weekend in May for the Sixth World Congress of Families, the man of the hour was clearly Bishop Juan Antonio Reig Pla. The Spanish bishop’s plainspoken honesty regarding the destructiveness of homosexual acts in the months leading up to the Congress earned him the enmity of leftwing rights activists and a standing ovation from conference participants.

    Homosexual and leftist groups have sought Bishop Reig Pla’s criminal prosecution for a Good Friday homily where he listed a host of sins, including sodomy, that lead to spiritual death.

    As such, his case has become Exhibit A in a “clash of rights” pitting traditional “negative” liberties grounded in the natural law – in Reig Pla’s case, freedom of expression and religion – against nebulous, newly-fabricated “rights,” such as those based on “sexual orientation and gender identity” non-discrimination. As the bishop discovered, proponents of such novel “rights” increasingly call upon the State to force dissenters to acquiesce.

    A last minute scratch from a panel on religious liberty was Italian parliamentarian Rocco Buttiglione, who in 2004 ran afoul of the emerging “soft totalitarianism” of the Latex Left when his candidacy for the European Commission’s justice post was scuttled due to pressure from European “progressives” who claimed his religious affiliation disqualified him. Replacing him in a pick-up speech was Alliance Defense Fund President Alan Sears, who warned of the intensifying assault on religious liberty evident in the United States.

    Several other panels also addressed the clash of rights theme and increasing restrictions placed on civil liberties. Dr. Gudrun Kugler of the Observatory on Intolerance and Discrimination Against Christians chaired a seminar on the use of “Hate Speech” and antidiscrimination laws to marginalize believers. Other panels addressed State attempts to limit parents’ rights to act as the primary educators of their children – a right explicitly acknowledged in the Universal Declaration of Human Rights.

    Among the signs of hope, however, was the engagement of Russian civil society organizations and Orthodox prelates in the conference, signaling the revival of Christianity in what was once the Soviet heartland. While respect for basic civil liberties in Russia is still somewhat tenuous, as the once-free West slides towards criminalizing religious expression and banishing reference to objectively-grounded moral norms, once-Communist Russia appears to be on a reverse trajectory. At the United Nations in recent years, for example, Russia has put forward a series of “traditional values” resolutions to counter the libertine sexual agenda of Europe and the Obama Administration while calling attention to the folly of population control programs amid demographic implosion.

    Participants credited the Spanish hosts for successfully staging the Congress, singling out ringmaster Ignacio Arsuaga for particular praise in keeping multiple concurrent events running on schedule. Local and national Spanish government officials also welcomed the gathering, and pro-family Spanish politicians such as European Parliamentarian Jaime Mayor Oreja were key participants.

    Current Spanish policy under Prime Minister Mariano Rajoy contrasts starkly with that of his predecessor, Socialist Jose Luis Rodriguez Zapatero. Zapatero’s government aggressively “worked to subvert the natural family,” in the words of the Declaration issued at the conclusion of the Congress.

    The next World Congress of Families will be held in Sydney, Australia, in May 2013.

    Piero Tozzi is a Senior Fellow at the Catholic Family and Human Rights Institute (C-FAM), whose article first appeared in the Friday Fax, an internet report published weekly by C-FAM, a New York and Washington DC-based research institute (http://www.c-fam.org/). This article appears with permission.

    Governor Kasich Stands for Health Care for Women and Their Unborn Children

    Governor John Kasich approved a new policy Tuesday that will grant pregnant women in need earlier access to Medicaid, making it easier to receive prenatal care. A faster route to coverage will now be offered to women for whom a lack of prenatal care could threaten the life of her unborn child.

    “Governor Kasich has consistently displayed his dedication to expectant mothers and their unborn children and this is an extension of that commitment to life,” said Mike Gonidakis, President of Ohio Right to Life. “This is a great display of how the state can provide health care options to women and empower them to become strong mothers of healthy babies.”

    Under current policy, women who are likely to be eligible for Medicaid can receive services for 60 days while they wait for their Medicaid application to be processed, but the request often takes the majority of that time to be approved, leaving the mother without adequate support.

    Governor Kasich’s new policy will eliminate the requirement for pregnant women and children to apply at the county job and family services office and allow them to instead receive approval directly through their health care provider. Children’s hospitals, federally qualified health centers, community action agencies and other
    providers will now be able to address the needs of expectant mothers more quickly.

    Ohio Right to Life commends Governor John Kasich for his unwavering support of mothers and children, and supports him in his effort to defend life.

    A Historic Win for Reform in Wisconsin

    By Mike Brownfield

    The state of Wisconsin has once again lived up to its billing as a Midwestern incubator of Big Ideas. In yesterday’s case, when voters resoundingly defeated a liberal effort to recall Governor Scott Walker (R), the Big Idea was that reformers who come armed with the strength of their convictions can carry the day–even against mobs, labor unions, Hollywood, the media, academia and everything else the left throws up these days. All reformers need to do is lead.

    In Walker’s case, his weapon in the fight against out-of-control government was a promise to the voters of Wisconsin that, were he entrusted with their vote, he would bring sweeping reforms to state government. One year ago, Governor Walker fulfilled that promise, and last night the voters rewarded him for his leadership by resoundingly rejecting an effort to remove him from power.

    It was a historic recall election that focused nationwide attention on what has become an existential threat to state governments — the problem of public-sector employee pensions and benefits running states into the red. Walker unabashedly confronted that threat without straddling a fence or tiptoeing around Big Labor’s Maginot Line. Facing a $3.6 billion deficit and the fourth highest tax burden in the country, Walker instituted policies designed to bring some sanity to state government. Those reforms included asking public sector workers to contribute a modest 5.8 percent of their salaries to their pensions and at least 12.6 percent of their health-care premiums while also limiting the collective bargaining power of public sector unions. (Even that is a small amount, as Heritage’s Jason Richwine shows in a new paper examining the true costs of public pensions.)

    Those moderate policies sent labor unions and their allies into full-on crisis mode. Tens of thousands of protesters stormed Wisconsin’s capitol last spring, Democratic state senators fled the state in hopes of blocking a vote on the measures, and lawsuits were filed to block the law from taking effect. Ultimately, Walker’s reforms were upheld, yet a massive effort to recall the governor was undertaken.

    In short order, a massive campaign to unseat Walker was launched. Unions poured millions of dollars into the race to attack the governor, President Barack Obama weighed in on the eve of the election (albeit timidly, with a Tweet) and endorsed Walker’s opponent, and grassroots armies descended on the state to turn out the vote. Yesterday, the voters of Wisconsin had an opportunity to examine the governor’s reforms and render a verdict on whether they approved of the direction he has taken their state.

    One of Governor Walker’s reforms included giving government workers the option to choose whether they wanted to pay union dues. When given the option, tens of thousands of members chose to leave the union. And according to exit polls, a third of union households backed Walker. But union leadership remains out of touch with the fiscal crisis Wisconsin, and our nation, faces. Yet as the people of Wisconsin know, Walker’s reforms have helped Wisconsin turn the corner. Since Walker took office, the state unemployment rate has fallen from 7.7 percent to 6.8 percent— well below the national average of 8.2 percent. And last year, Wisconsin employers actually created 23,000 jobs. In other words, Wisconsin’s economy is growing all while the rest of the country faces very troubled economic time.

    Walker’s victory will send shockwaves across the country. Last year, the governor took a strong stand for the proposition that public sector unions should not negotiate their taxpayer-funded benefits with politicians they helped elect using mandatory dues. And he also stood for reforms that curbed spending and got his state’s budget under control — without raising taxes. Despite facing a recall election, Walker was ultimately rewarded for a job well done.

    There have only been three gubernatorial recall elections in U.S. history, and Walker was the first one to survive the challenge. As Louisana Governor Bobby Jindal said last night on Fox News, “What Scott Walker has proved tonight is that good policy makes great politics.”

    Mike Brownfield is Assistant Director of Strategic Communications at The Heritage Foundation. He serves as editor of The Foundry, Heritage’s public policy news blog where this article originally published on June 6, 2012.

    Gov. Kasich Set to Veto $30 Million to Nursing Homes

    Several sources have indicated to the Columbus Dispatch that Gov. John Kasich is prepared to veto the $30 million for nursing homes that Republican legislators added to the mid-biennium review (Source: “Nursing homes’ $30M pop may fizzle,” Columbus Dispatch, May 31, 2012).

    Nursing homes had won support in both the Republican-controlled House and Senate for the $30 million by pointing out that the industry has experienced more than $850 million in federal Medicare cuts this year; $39 million less in state funding compared to last year and that the money would be used to assist nursing homes in adhering to the governor’s new quality standards for long-term care.

    The amendment added to the mid-biennium review submitted by Republican state Rep. Barbara Sears of Toledo would create a pool of money to reward nursing homes for meeting more than five of those quality standards.

    However, administration officials point out that policy changes they have implemented to make it easier for Ohioans to seek care in non-institutional settings were expected to lead to a downsizing of the industry.

    “It’s clear to us that so far in (the state budget) we got this right,” said Greg Moody, director of the Governor’s Office of Health Transformation. “That’s what’s in our mind as we approach this final stage of reviewing the changes that were made to the (mid-biennium review).”

    Source:Ohio Health Policy Review, June 1, 2012.

    U.S. Economy Undermined by Uncertainty

    By Gary Palmer

    Kevin Hassett, a senior fellow at the American Enterprise Institute, predicts that uncertainty about taxes and fiscal policy is likely to skyrocket by the end of this year. Hassett says the expiration of several tax cuts will result in significant pessimism about the American economy in the second half of 2012. This includes the tax cuts enacted during the Bush Administration, which are scheduled to expire December 31st.

    From an individual/household perspective, allowing the cuts to expire will result in a tax increase of $494 billion in 2013, an unprecedented increase for one year. The average household tax bill will go up by $3,800 and will impact all income groups with middle- and low-income families hit the hardest. According to Curtis Dubay, a senior policy analyst with The Heritage Foundation, 70 percent of the increase will fall on middle- and low-income families. Dubay said, “That’s because 60 percent of the Bush tax cuts were for middle- and low-income taxpayers.”

    The Washington Post called the looming tax increase “Taxmageddon,” and Federal Reserve Chairman Ben Bernanke described it as a “massive fiscal cliff.” Jim Capretta, a former official with the White House Office of Management and Budget, predicts that the tax increase will result in an economy that is “… about one to two percentage points smaller than it otherwise would have been, and unemployment that’s a full percentage point higher than it otherwise would have been.”

    While there still is time for Congress to take action to prevent this massive tax increase, it is looking increasingly unlikely that it will. With the uncertainty almost $500 billion in new taxes, individuals and businesses are reluctant to make major purchases or investments. Thus, the fear of “Taxmageddon” is already having a negative impact on our economy as families and businesses wait to see what Congress is going to do.

    Members of Congress surely know that uncertainty has a negative effect on the economy. If businesses can’t predict next year’s tax rate, they are unlikely to invest in new equipment or expansion or to hire more workers. Individuals and families are less likely to spend as much for the same reasons.

    Adding to the uncertainty is the explosion of new federal regulations on American businesses. Since January 2009, federal agencies have issued 106 major regulations that cost $46 billion per year. In 2009 and 2010 alone, federal agencies issued 7,076 rules. The Small Business Administration estimates that the regulatory burden on the U.S. economy is now at $1.75 trillion, more than twice the amount of individual income taxes paid by American households.

    Three economists, Scott R. Baker and Nicholas Bloom of Stanford University and Steve Davis of the University of Chicago, produced an index of policy-related economic uncertainty and estimated its relationship to economic activity including investment and employment. This uncertainty index surges around major federal elections; events such as 9/11, the war on terror, the Lehman bankruptcy, and the TARP bailout; and the debt ceiling dispute that foreshadowed declines in private investment, industrial production, and employment. Interestingly, the index also spiked during the debate over the stimulus package.

    Since 2000, policy uncertainty has been higher, on average, than in the previous 15 years. The spikes caused last summer by the contentious battle over raising the debt ceiling and Standard & Poor’s downgrade of the U.S. bond rating created uncertainty that the creators of the index believe helps explain the slower growth of the U.S. economy.

    With the $494 billion tax increase on the horizon, economy-draining new federal regulations forthcoming, another debt limit vote set for the end of this year, and the most consequential election in decades, the uncertainty index will spike again. When the index spikes, the economy will suffer and for good reason … people and businesses don’t risk their money when the government works against their interests.

    Gary Palmer is president of the Alabama Policy Institute, a non-partisan, non-profit research and education organization dedicated to the preservation of free markets, limited government and strong families, which are indispensable to a prosperous society.

    Federal Government Will Dictate Pay, Tie Hands of Entrepreneurs Through “Paycheck ‘Fairness’ Act” (S.3220)…Senate Vote on June 5

    On the afternoon of June 5th, there will be a U.S. Senate cloture vote on the motion to proceed to the so-called “Paycheck Fairness Act” (S.3220). SBE Council has joined a coalition of business allies in opposing the legislation. The following are some of their reasons:

  • The Act would impose unprecedented government control over how employees are paid at even the nation’s smallest employers.
  • This legislation could outlaw many legitimate practices that employers currently use to set employee pay rates, even where there is no evidence of intentional discrimination.
  • Common practices that a court could find unlawful under S. 3220 include providing premium pay for professional experience, education, shift differentials or hazardous work, as well as pay differentials based on local labor market rates or an organization’s profitability.
  • This level of government intervention in employee compensation is both unprecedented and unwarranted in the United States.
  • The threat the bill poses to small business is particularly troubling given the draconian penalties found in this legislation, which include unlimited damages regardless of whether a pay discrepancy was unintentional.
  • As The Washington Post editorial board stated in 2009, adding the Paycheck Fairness Act to these existing laws “risks tilting the scales too far against employers and would remove, rather than restore, a sense of balance.” In 2010, the Boston Globe wrote “the measure as a whole is too broad” and the Chicago Tribune described the bill as “grossly intrusive.”

    The legislation is all about political posturing in an election year, and will destroy jobs. There is nothing fair about imposing government command-and-control policies on small businesses. This backward and socialistic legislation takes away the business owner’s flexibility to reward their workforce based upon merit, experience, local labor market conditions and the firm’s ability to compensate based upon profitability, according to SBEC.