Tuesday, February 22, 2011

How Unions Wield Political Power

See The Showdown Over Public Union Power: At last, politicians and voters are fighting back against the most potent lobby for government spending and ever-higher taxes from today's WSJ by Steven Malanga, a senior fellow at the Manhattan Institute and the author of "Shakedown: The Continuing Conspiracy Against the American Taxpayer" (Ivan R. Dee, 2010). Excerpts:

"Government workers have taken to the streets in Madison, Wis., to battle a series of reforms proposed by Gov. Scott Walker that include allowing workers to opt out of paying dues to unions. Everywhere that this "opt out" idea has been proposed, unions have battled it vigorously because the money they collect from dues is at the heart of their power.

Unions use that money not only to run their daily operations but to wage political campaigns in state capitals and city halls. Indeed, public-sector unions especially have become the nation's most aggressive advocates for higher taxes and spending. They sponsor tax-raising ballot initiatives and pay for advertising and lobbying campaigns to pressure politicians into voting for them. And they mount multimillion dollar campaigns to defeat efforts by governors and taxpayer groups to roll back taxes.

Early last year, for example, Oregon's unions spearheaded a successful battle to pass ballot measures 66 and 67, which collectively raised business and income taxes in the state by an estimated $727 million annually. Led by $2 million from the Oregon Education Association and $1.8 million from the Service Employees International Union (SEIU), unions contributed an estimated 75% of the nearly $7 million raised to promote the tax increases, according to the National Institute on Money in State Politics.

Also in 2010, teachers unions and public-safety unions in Arizona were influential players in the successful ballot campaign to increase the state's sales tax to 6.6% from 5.6% to raise an additional $1 billion. Some state business groups also supported the tax increase in the vain hope that the legislature would roll back business and investment taxes. The public unions, by contrast, wanted the tax hike precisely to avoid government spending cuts."

and

"Public unions are also among the biggest players in national politics. According to the Center for Responsive Politics, the American Federation of State, County and Municipal Employees (Afscme) has been the third-biggest contributor to federal campaigns over the past 20 years, having given $43 million. The National Education Association is number eight with $31 million in contributions, while the SEIU—half of whose 2.2 million members are government workers—is No. 10, with $29 million in campaign donations.

Unlike businesses and industry groups that are also big givers but tend to split their donations between the parties, some 95% of government workers' donations has gone to the Democratic Party, whose members are far more likely to favor raising taxes and boosting spending than are members of the Republican Party."

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