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    CEOs of top 100 ‘low-wage’ US firms earn $601 for every $1 by worker, report finds

    The CEOs of the top 100 companies paying the lowest wages made an average of $601 for every $1 earned by the average worker last year as executive compensation continued to climb to record highs.A new report from the Institute for Policy Studies singles out which 100 companies in the S&P 500 pay their workers the least, companies the report dubs the “low-wage 100”. These companies paid their employees – including workers outside the US and part-time workers – a median wage of $31,672 in 2022, while their CEOs took home an average $15.3m.Many of these companies also invest millions each year in stock buybacks – when a company buys shares of its own stock as a way to boost stock prices and give more money to shareholders. Of the “low-wage 100”, 90 companies conducted stock buybacks, spending a collective $341.2bn buying their own shares from January 2020 to May 2023.“This is really hard data that reinforces what is the major story in corporate America: instead of investing in their workforce or investment to be competitive, in the long term, they’ve been putting out huge sums to enrich their CEOs and their shareholders,” said Sarah Anderson, the report’s lead author. “These are sums that workers at these companies could not even wrap their minds around.”The report highlights companies that stood out within the group, including the highest-paid CEOs and the largest stock buybacks.LiveNation CEO Michael Rapino had the largest compensation of the group, raking in $139m in 2022. Meanwhile, the median pay for the company last year was $25,673. Though LiveNation has come under scrutiny for its domination of the US live music industry, its revenue has been soaring over the last year as more Americans attend concerts.Of the companies that had stock buybacks, Lowe’s spent the most, dedicating $34.9bn to its own shares over the last three years. Lowe’s CEO, Marvin Ellison, had a compensation of $17.5m in 2022, while the median worker pay was $29,584 for the year.CEOs of the “low-wage 100” who had been at their company from at least 2019 until 2022 saw their personal stock holdings increase 33% during those three years, growing an average of $184.7m. In comparison, median pay at the companies rose 10%.The Dollar Tree CEO, Michael Witynski, saw the biggest increase in his stock holdings, which went up 2,393% over the last three years to $30.5m as the company grew its retail footprint. The median pay for workers actually decreased in comparison, going down 4.4% to $14,702. The company spent about $2bn on stock buybacks over the last three years.Stock buybacks have become more commonplace over the last few years. Buybacks reached a record high in 2022 and are expected to reach $1tn for the first time in 2023. Proponents argue that they rightfully give a company’s profits to its shareholders and help create activity in the stock market, but the practice is attracting criticism in Washington.skip past newsletter promotionafter newsletter promotionThe bipartisan Inflation Reduction Act of 2022 included a 1% excise tax on stock buybacks, making them more expensive for companies to do. In his State of the Union address earlier this year, President Joe Biden proposed increasing the excise tax to 4%.The report argues there are more policies the federal government can take on to disincentivize stock buybacks. For example, by prioritizing companies that don’t engage in stock buybacks when picking contractors and companies that receive subsidies. According to the report, 51 out of the “low-wage 100” companies received federal contracts over the last three years worth $24.1bn and spent $160bn on stock buybacks. The report calculated that the average CEO compensation for these 51 companies was $12.7m in 2022. In comparison, a White House cabinet member makes $226,300 a year.“We’re not talking about putting an iron ceiling on how much a CEO can make, but we can use government policy to encourage companies to move in the right direction,” Anderson said. More

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    Fat cat bosses enjoy £500m pay rise as CEO salaries soar during cost of living crisis

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Bosses at Britain’s biggest companies saw their pay surge by 16 per cent last year despite ordinary workers’ wages being outstripped by inflation, research has found. Chief executives for firms […] More

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    $80bn for the IRS? Fund the US taxman, but not like this | Gene Marks

    Ask any accountant and we’ll tell you that the Internal Revenue Service is woefully underfunded. Our clients complain about the long delays for refunds, the interminable waits for getting answers and the frustrations waiting for guidance on issues that affect their businesses.But it’s not just accountants that are clamoring for more IRS funding. Most taxpayers I know will admit that the IRS needs a serious upgrade. So why the big brouhaha over the $80bn approved last year to hire more auditors and upgrade the agency’s pathetically outdated systems? The answer lies not in why it’s so badly needed. It’s in how badly it was sold to the American public.We all pay for things we don’t like. We need to have insurance but we don’t like the premiums. We don’t really want to give a wedding gift to that fifth cousin or tip the waiter even though the service wasn’t that great. And of course, we pay taxes – and no one likes that either.The same goes for the IRS. We know that everyone should be paying their fair share and we get that there has to be a government agency to oversee this. Making sure the IRS has adequate funding is a no-brainer. And yet here we are arguing over its need. For this, I blame President Biden and the Democrats.The bipartisan Tax Foundation found that the costs to collect $100 (in 2021 dollars) has decreased 41% since 1991 and that during this same period, the amount collected per taxpayer has increased 45% and that the agency did this despite its much lower staff. These are impressive accomplishments when you consider that most of the agency’s systems are decades old.Even so, Republicans and the media pounced on the $80bn allocated under the Inflation Reduction Act to be used for hiring more auditors and technology upgrades which could potentially save more than $1tn per year. And during recent talks to raise the US borrowing limit, Republicans somehow managed to claw a quarter of that amount back with plans to pursue more.Most people in both parties understand the necessity to fund an agency whose sole objective is to ensure that everyone pays their fair share of taxes. But you can’t really blame Republicans for crying foul. This is what politicians do when there’s a slam-dunk issue like this. Big government: bad. Small guy taxpayer: good.But there was a better way for the Democrats to achieve this funding, which, according to the Cato Institute, will increase the IRS’s budget from $5.2bn to $19.5bn by 2033 – about $1.4bn per year, which is just one-half of one percentage point of our country’s overall spending.Why not bury some of this amount in the overall treasury department’s annual budget of $3.24tn? Over a 10-year period that funding could have been absorbed by the numerous subdivisions of the agency and then re-allocated back to the IRS in that bureaucratic way that bureaucrats do where no one really knows where or how the money was spent.Or how about trying what any business owner would do when appropriating money to a project: assign quantifiable metrics and holds its recipients accountable? Make it such that the spending could be paused or even pulled unless these numerical goals are achieved each year. That way the Republicans could insist they’re holding their opponents’ feet to the fire, while the Democrats still get to spend the money.Or you could take a pure tech angle and take people out of the equation. Remove and prohibit the “hiring” of new auditors and instead mandate that the funds only be used for technology. Better yet, AI technology because that’s what’s hot! Emphasize that the IRS is going to be the federal government’s leader in tech, reducing its headcount and increasing its output and responsiveness by leveraging the latest AI tools as it upgrades its systems. Of course, some may be scared by the prospect of out-of-control robots but it’s obvious to most of us who regularly deal with the IRS that – probably more than any other agency – most of what it does can be automated.But no. Instead, Biden and the Democrats allowed an inordinate amount of attention to be drawn directly to the $80bn for the evil IRS, which in turn invited a tidal wave of backlash. This didn’t have to happen. With a little bit of thought, some maneuvering, finessing and manipulation, that money – which is sorely needed – could have been spent under the radar and much of this controversy could have been avoided. More

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    Banks offer relief for homeowners as mortgage rates slashed

    For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Four of the UK’s top lenders have slashed interest rates on fixed mortgage deals, offering some relief to struggling homeowners. Experts said the moves by the biggest banks […] More

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    Big business lobbies against heat protections for workers as US boils

    Big-business lobbyists, including big agricultural and construction groups, are pushing to water down or stymie efforts at the federal and state levels to implement workplace heat protection standards.This summer, millions in the US have been exposed to some of the hottest days on record, inciting renewed urgency for federal protections from heat exposure for US workers. The Biden administration has proposed federal heat protections for workers. But those rules face stiff opposition and could take several years to be finalized under current rule-making processes and laws. They could even be scrapped depending on the outcome of 2024’s election.Business groups and lobbyists have aggressively opposed efforts at state and federal levels to enact heat protection standards for workers, claiming employers already practice what a standard would mandate, expressing concerns about the burden on employers, and claiming the efforts take a “wrong approach”.Between 2011 to 2021, 436 workers died from heat exposure according to the Bureau of Labor Statistics, but that is most likely an undercount because heat-related deaths are often attributed to other accidents or health conditions.At present, no federal law protects workers specifically from extreme heat. Farm workers and advocacy groups are also pushing to include heat protections for farm workers in the 2023 farm bill currently being considered by Congress. But with Republicans in control of Congress, such a measure is unlikely to pass.In September 2021, the Biden administration announced the launch of a rule-making effort at the Occupational Safety and Health Administration (Osha) to develop heat exposure standards to protect outdoor and indoor workers.The powerful American Farm Bureau Federation has objected to the proposal. “Considering the variances in agricultural work and climate, AFBF questions whether the department can develop additional heat illness regulations without imposing new, onerous burdens on farmers and ranchers that will lead to economic losses,” it said in its comments on the rule.The group has a long history of denying science around the climate crisis and has teamed up with fossil fuel interests in fights over climate policies.The Construction Industry Safety Coalition (CISC) said while it “appreciates Osha’s rule-making in this area”, its members have “significant concerns with any regulatory approach that imposes complicated requirements on contractors and requirements that are triggered by threshold temperatures that are common in wide swaths of the country for much of the year”.The National Demolition Association, a construction business group, said in its opposition “issues of heat exposure and the means to address it on the variety of construction worksites across the country are extremely complex”. The proposed rule “essentially dictates how and what should be included in an Osha standard for heat exposure, [and] does not account for the complexities of the issue”.A handful of states, California, Colorado, Washington, Oregon and Minnesota, have issued their own heat exposure standards. Oregon is the only state also to protect indoor workers from heat exposure. Business groups have responded with lawsuits in Oregon and industry groups have already questioned the feasibility of a federal heat illness standard.Meanwhile, the Texas governor, Greg Abbott, has rescinded city ordinances that mandated heat protections for workers. The move was applauded by business groups.Last week Biden announced new measures to tackle the heat crisis, including hazard alerts for workplaces such as farms and construction sites. Experts described the announcement as positive but modest. In the meantime, his efforts to implement federal heat protections are making slow progress.The Osha rule-making process comprises seven stages. On average it takes Osha over seven years to develop and issue safety and health standards, according to a report by the Government Accountability Office. And it can take significantly longer. An Osha standard on silica exposure finalized in 2016 took 45 years to implement. The agency estimated it would have prevented 1,600 new cases of silicosis annually and saved more than 600 lives a year.“It’s going to be many, many years before we see a final standard, because there’s so many steps the agency has to go through, and they have to collect so much data and so much information more than other agencies when they do something similar,” said Debbie Berkowitz, who served as chief of staff and senior policy adviser at Osha during the Obama administration.“It’s not rocket science to protect workers from heat. Many employers do it but many employers don’t. It’s not that expensive,” Berkowitz said. “But it’s good to have a standard, a standard will really save lives.”Berkowitz said that protection standards for workers should include water, rest breaks, access to shade, acclimatization for workers exposed to excessive heat on the job, and training for workers and managers on heat protections and the symptoms of heat illnesses. While at Osha, she noted, several investigations into heat-related worker deaths involved workers who had just started working in intense heat on the job. For example, in July 2022, 24-year-old Kaylen Gehrke died on the job from heat stroke in Louisiana on her first day conducting archaeological surveys outdoors while the area was under a heat advisory warning.“The workers most impacted are the ones who bring us our food, build our buildings, it seems to me a no-brainer to give Osha the authority to move quickly to require these basics, that employers require water, that they educate workers on the early symptoms of heat stress that if not attended to can lead to fatalities quickly,” Berkowitz added. “I think most farm workers and other workers that go and toil in the sun every day deserve our gratitude and our thanks and deserve this protection.”At least two Florida farm workers have died this year due to heat exposure, 29-year-old Efraín López García died on 5 July and another unnamed farm worker died in Parkland in January on their first day on the job. The state legislature declined to consider a bill to enact heat exposure protections for workers, though the protections would not have been enforceable. Miami-Dade county recently introduced a bill in the county commission to enact heat standards locally.Dr Nezahualcoyotl Xiuhtecutli, general coordinator of the Farmworker Association of Florida, explained farm workers are even more susceptible to heat exposure due to the piece rate system, where workers are paid based upon the number of units of crops they pick.“The piece rate system makes it even more difficult because they feel pressure to work harder and pick more so they can actually increase their salary, but this disincentivizes them from taking breaks and paying attention to their body because they’re thinking about how it’s going to affect their income,” said Xiuhtecutli.He expressed disappointment that the Florida legislature didn’t consider a bill to implement heat protections for workers and argued the onus shouldn’t be on workers themselves to protect themselves from excessive heat.“These deaths are preventable,” he said. “We have guidelines for how to prevent them. Neglecting to take care of them just really speaks volumes about our priorities as a society and as a state, because we can’t even take care of the lives of our most vulnerable workers.”With recent extreme heatwaves, anticipation of a new normal of record-setting temperatures due to the climate crisis, and ongoing reported cases of workers dying on the job due to heat exposure, worker advocacy groups, unions and elected officials are increasing pressure for heat exposure standards to be implemented at local, state and federal level.On 25 July, Congressman Greg Casar of Texas began a thirst strike at the US Capitol with the labor activist Dolores Huerta, calling on Osha to implement federal heat standards to protect workers, including water breaks. Some 112 members of Congress signed a letter on 24 July calling on Osha to implement heat protection standards for workers, basing standards on a proposed congressional bill, the Asuncion Valdivia Heat Illness and Fatalities Prevention Act, named after a farm worker who died from heat exposure in 2004.The bill was reintroduced to Congress on 26 July. Congress has previously passed legislation ordering Osha to expedite safety standards, such as the Needlestick Safety and Prevention Act passed in 2020 that mandated Osha update worker safety standards on blood-borne pathogens.“It’s a commonsense piece of legislation that will require employers to provide workers with what are quite frankly, humane work conditions in the face of extreme heat,” said Dr Rachel Licker, a principal climate scientist at the Union of Concerned Scientists and co-author of a 2021 report on the threat climate change poses to workers. “We know that there’s already extreme heat happening around the world at levels that are dangerous for outdoor workers and the story is just going to get worse as the world warms because of climate change and emissions from fossil fuels, so it’s clearer than ever that we need to be better prepared because workers are getting injured and dying on the job because of this hazard.”In a statement, Osha’s assistant secretary, Doug Parker, said that as the agency is working on issuing a final rule on heat illness prevention, it is ramping up enforcement compliance efforts and outreach efforts.“Many workers are at increased risk, sometimes because of the jobs they do, but also because of factors like the color of their skin, their ethnicity, or the fact that English is not their first language,” said Parker. “Every worker is entitled to a safe and healthy workplace, and we will continue to use all the tools in our toolbox to ensure all workers have the health and safety protections they need and deserve in every workplace.” More

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    We bailed out the banks but we’re not prepared to bail out the planet

    Like many other politicians, Joe Biden talks a good game about the need to tackle global heating. Climate change is an “existential threat”, the US president said last week, as America sizzled amid record-breaking temperatures.Biden had to do something in response to what António Guterres, the UN secretary general, described as the boiling of the planet. The White House announced a series of measures – such as improved access to drinking water and planting more trees – in response to what has been the hottest month on record.To Biden’s critics, this is fiddling while Rome burns. They say he should be declaring a climate emergency, which would allow him to block new fossil fuel projects without congressional approval. As it is, Biden has showed a marked reluctance to take this step. There are clearly limits to what the US government is prepared to do to counter this “existential threat”.It is a similar picture in the UK, where the Conservative party’s surprise victory in the Uxbridge and South Ruislip byelection was in large part due to the plans by London’s Labour mayor, Sadiq Khan, to expand the ultra-low emission zone (Ulez) to the capital’s outer boroughs.Put simply, the Ulez seeks to improve London’s air quality by placing a charge on the use of older petrol and diesel vehicles, which tend to be not just the most polluting but also the most likely to be owned by poorer households already struggling with Britain’s cost of living crisis.The byelection defeat clearly rattled the Labour leader, Sir Keir Starmer. “We are doing something very wrong if policies put forward by the Labour party end up on each and every Tory leaflet,” he said. “We’ve got to face up to that and learn the lessons.”In their different ways, recent events in the US and the UK show just how difficult it will be to put the global economy on a saner and more sustainable course.Problem number one is that politicians struggle to think beyond the next election. Biden is running for re-election next year, and Starmer wants to end a run of four successive defeats for Labour. The temptation to put off tough decisions to another day is powerful.That’s because of problem number two: the lack of consensus about what needs to be done and over what time period change needs to happen. What’s needed is for Democrats and Republicans in the US and Labour and the Conservatives in the UK to announce that they are jointly signed up to a course of action that will extend well beyond one presidential or parliamentary term. The failure to forge a bi-partisan approach provides an incentive for parties to look for short-term political gain, even when doing so risks longer-term harm.There’s a reason for that, namely that some of the policies required have upfront costs that make them unpopular for those that find them hard to bear. Telling a key worker who can only afford an ageing diesel car that they will have to pay £12.50 a day to drive to their job is never going to be easy, especially in a period when living standards are being squeezed. There is no getting away from the fact that the Ulez expansion is a regressive tax and, as Khan has found, changes that make hard-up people even worse off breed anger, and that anger will inevitably find a political outlet.So problem number three is that there are a lot of poor people in the UK and the US. And problem number four is that not nearly enough is being done to help these people make the green transition. For that to happen, there would need not just to be a recognition of the link between global heating and grotesque levels of inequality, but a willingness to do something about it.In the developed west, this means using the financial firepower of the state to reduce the number of losers from the green transition. In developing countries, it means transfers of both money and technical knowhow, so that countries that need growth as part of their anti-poverty programmes minimise the use of fossil fuels. Meeting the “existential” threat that Biden talks about requires action not just in the UK or the US but in China, India and other emerging countries, too. Climate action on a global scale will be costly.skip past newsletter promotionafter newsletter promotionThat brings us to problem number five. The change from one economic paradigm to another – the creative destruction that the political economist Joseph Schumpeter talked about – is hard because it requires those who have invested in existing industries to recognise that the game is up. This transition can be prolonged if those wedded to the status quo have invested huge sums and wield enormous power, as is the case with the fossil fuel industry.The solution to these problems lies ultimately in the hands of politicians such as Biden, because they alone have the power to remove barriers to change.As the rapid responses to the global financial crisis of 2007-09 and the Covid pandemic proved, governments can act speedily, collectively and decisively if the crisis is deemed big enough. When the banks were facing their existential crisis in 2008, money was created to bail them out and prevent a second Great Depression. In 2020, economies were effectively put on a war footing.Should the same approach be adopted in the fight against climate change? Yes. Is there any sign of this happening? Not on the scale required. Effectively, this is like the 1930s, when there was resistance to meeting the threat of fascism. Then, as now, what was needed was rapid rearmament. Then, as now, what we’re getting is a failure to do what needs to be done. More