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      Biden says it’s time for richest Americans to pay ‘their fair share’ of taxes

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      Joe Biden said it is time for corporations and the richest Americans to “start paying their fair share” of taxes as he hit the road on Monday in a concerted effort to promote his administration’s huge new infrastructure and welfare spending plans totaling about $4tn.Speaking at a community college in Norfolk, Virginia, on Monday afternoon, the US president made the case for increasing taxes on the wealthiest in the US in order to help fund his ambitious $1.8tn American Families Plan and $2tn infrastructure plan.The packages would provide funds for childcare and free universal pre-school education facilities, as well as massive programs to rebuild America’s crumbling transport systems and public-sector housing in ways that also contributes to government action on the climate crisis.“I think it’s about time we started giving tax breaks and tax benefits to working-class families and middle-class families, instead of just the very wealthy,” Biden said, while speaking in Portsmouth, Virginia.Discussing the excessive profits wealthy corporations have made in the past year, Biden said he’s not “anti-corporate”, but “it’s about time they started paying their fair share”.Biden said the American families plan, which would dedicate $1tn in spending on education and childcare over 10 years, and $800bn in tax credits aimed at middle- and low-income families would not increase taxes for the vast majority of people in the US.“It is paid for by making sure corporate America and the wealthiest 1% … just pay their fair share,” he said. Biden said the plan would benefit 65 million children, and “cut child poverty in half this year”.The plan would also allocate $200bn for free, universal preschool education and $109bn for free community college, regardless of income for two years, Reuters reported.“Do we want to give the wealthiest people in America another tax cut, or do you want to give every high school graduate the ability to earn a community college degree?” Biden said.Continuing the theme of taxing the rich, Biden said: “If you asked the top 1% to pay the same tax rate they paid in 2001 when George Bush was president, that would generate around $13bn a year.”He reiterated what he has been saying in the first 100 days of his presidency and emphasized at his address to a joint session of the US Congress last week: “Trickle-down economics has never worked.”Biden is keen to shed the philosophy that is a conservative touchstone among Republicans, much popularized during the Ronald Reagan presidency and most recently continued by Donald Trump, that tax breaks for the rich spur business investment that ultimately benefits the masses below in the longer term.“For too long we’ve had an economy that gives every break in the world to the folks who need it the least. It’s time to grow the economy from the bottom up,” he said.Monday’s trip with several stops in Virginia, accompanied by his wife and the first lady, Jill Biden, was the latest leg of what the White House is calling the president’s Getting America Back on Track Tour, which will see Biden head to Louisiana next week.Georgia, Ohio and North Carolina are among the other destinations for either Biden personally or members of his entourage, as they bid to sell the public on his rebuilding packages.Biden is urging Republicans in Congress ensure bipartisan support for his legislation on the big plans.He cited “overwhelming support” for the spending among many Republican voters and said he need that to translate in the corridors of Washington.“Now I just have to get some of my Republican colleagues to support it,” he said.Meanwhile, the Senate minority leader, Mitch McConnell, said on Monday that he expected no Republicans would back Biden’s infrastructure and families packages, indicating Republican lawmakers are open to a roughly $600bn bill.“I think it’s worth talking about but I don’t think there will be any Republican support – none, zero – for the $4.1tn grab bag which has infrastructure in it but a whole lot of other stuff,” McConnell said in a press conference in his home state of Kentucky. More

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      Yellen seeks to tamp down concern over US government spending under Biden

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      The US treasury secretary, Janet Yellen, on Sunday sought to tamp down concerns that Joe Biden’s plans on infrastructure, jobs and families will cause inflation, saying spending will be phased in over a decade.“It’s spread out quite evenly over eight to 10 years,” the former chair of the Federal Reserve told NBC’s Meet the Press.She said the Fed would monitor inflation carefully.“I don’t believe that inflation will be an issue but if it becomes an issue, we have tools to address it,” Yellen said. “These are historic investments that we need to make our economy productive and fair.”Addressing Congress on Wednesday, Biden said his “American Jobs Plan is a blue collar blueprint to build America. That’s what it is.”He has said his plans will be paid for by a series of tax increases on the wealthiest Americans, less than 1% of the population, and by raising corporate taxes. Some Democrats have expressed concerns such increases will slow economic growth.“We’re proposing changes to the corporate tax system that would close loopholes,” Yellen said.“This comes also in the context of global negotiations to try to stop the decades-long race to the bottom among countries in competing for business by lowering their corporate tax rates. And we feel that will be successful.The president has pledged that no family earning under $400,000 will pay a penny more in taxes“The president has pledged that no family earning under $400,000 will pay a penny more in taxes. And we’ve been assiduous in sticking to that pledge.”Republicans oppose corporate tax increases. The Louisiana senator Bill Cassidy told Fox News Sunday: “Academics would say if you raise taxes on corporations, you have lower wages, you have less investment, and you hurt shareholders. Think pension funds.“Now, if it’s OK to have lower wages for working people, it’s a blue collar thing. If it’s OK to have less investment, it’s a blue collar thing. But if you want higher wages, if you want more investment, if you want more efficient deployment of capital, than it’s anti-blue collar.”Speaking to CBS’s Face the Nation, the White House chief of staff, Ron Klain, countered Cassidy’s claims.Corporations, he said, “got that giant tax cut in 2017 [under Donald Trump]. What we’re talking about is just rolling some of that tax cut back. So we’re talking about putting the rate back up to 28%. It was 35% before that tax cut came. So corporates would still have a lower tax rate than the rate they had prior to 2017.“We think that 2017 tax cut didn’t meet its promise. You didn’t see massive investments in [research and development], you didn’t see wages go up. What you saw was CEO pay go up … So we think we can raise those taxes on corporations and fund the things that make the economy grow. Bridges, roads, airports, rail.”Republicans also oppose the scope of Biden’s infrastructure proposals, contending priorities such as expanding green energy, electric cars and elder and child care should not be pursued.“The administration needs to kind of be honest with the American people,” Cassidy said. “If you really want roads and bridges, come where Republicans already are. If you want to … do a lot of other stuff, well that’s a different story. Roads and bridges, we’re a lot closer than you might think.”Yellen would not speculate on whether Biden would accept a bill from Congress that does not include a way to pay for the spending increases he wants.“He has made clear that he believes that permanent increase in spending should be paid for and I agree,” she said. More

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      The first 100 days of Biden were also the first 100 without Trump – that’s telling | Robert Reich

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      By almost any measure, Joe Biden’s first 100 days have been hugely successful. Getting millions of Americans inoculated against Covid-19 and beginning to revive the economy are central to that success.Two-thirds of Americans support Biden’s $1.9tn stimulus plan, already enacted. His infrastructure and family plans, which he outlined on Wednesday night at a joint session of Congress, also have broad backing. The $6tn price tag for all this would make it the largest expansion of the federal government since Lyndon Johnson’s Great Society. But for most Americans, it doesn’t feel radical.Rather than bet it all on a single large-scale program such as universal healthcare – which Bill Clinton failed to accomplish and which Barack Obama turned into a target of Republican fearmongering – Biden has picked an array of popular initiatives, such as preschool, public community college, paid family and medical leave, home care and infrastructure repairs, which are harder to vilify.Economists talk about pent-up demand for private consumer goods, caused by the pandemic. Biden is responding to a pent-up demand for public goods. The demand has been there for years but the pandemic has starkly revealed it. Compared with workers in other developed nations, Americans enjoy few if any social benefits and safety nets. Biden is saying, in effect, it’s time we caught up.Even on the fraught issue of race, the contrast with Trump has strengthened Biden’s handBesides, it’s hard for Republicans to paint Biden as a radical. He doesn’t feel scary. He’s old, grandfatherly. He speaks haltingly. He’s humble. When he talks about the needs of average working people, it’s clear he knows them.Biden has also been helped by the contrast to his immediate predecessor – the most divisive and authoritarian personality to occupy the Oval Office in modern memory. Had Biden been elected directly after Obama, regardless of the pandemic and economic crisis, it’s unlikely he and his ambitious plans would seem so benign.In his address to Congress, Biden credited others for the achievements of his first 100 days. They had been accomplished “because of you”, he said, even giving a nod to Republicans. His predecessor was incapable of crediting anyone else for anything.Meanwhile, the Republican party, still captive to its Trumpian base, has no message or policies to counter Biden’s proposals. Donald Trump left it with little more than a list of grievances irrelevant to the practical needs of most Americans: that Trump would have been re-elected but for fraudulent votes and a “deep state” conspiracy, that Democrats are “socialists” and that the “left” is intent on taking away American freedoms.Biden has a razor-thin majority in Congress and must keep every Democratic senator in line if he is to get his plans enacted. But the vacuum on the right has allowed him to dominate the public conversation about his initiatives, which makes passage more likely.Trump is aiding Biden in other ways. Trump’s yawning budget deficits help normalize Biden’s. When Trump sent $1,200 stimulus checks to most Americans last year regardless of whether they had a job, he cleared the way for Biden to deliver generous jobless benefits.Trump’s giant $1.9tn tax cut for big corporations and the wealthy, none of which “trickled down”, make Biden’s proposals to increase taxes on corporations and the wealthy to pay for infrastructure and education seem even more reasonable.Trump’s fierce economic nationalism has made Biden’s “buy American” initiative appear innocent by comparison. Trump’s angry populism has allowed Biden to criticize Wall Street and support unions without causing a ripple.At the same time, Trumpian lawmakers’ refusal to concede the election and their efforts to suppress votes have alienated much of corporate America, pushing executives toward Biden by default.Even on the fraught issue of race, the contrast with Trump has strengthened Biden’s hand. Most Americans were so repulsed by Trump’s overt racism and overtures to white supremacists, especially after the police murder of George Floyd, that Biden’s initiatives to end police brutality and “root out systemic racism”, as he said on Wednesday night, seem appropriate correctives.The first 100 days of the Biden presidency were also the first 100 days of America without Trump, and the two cannot be separated.With any luck, Biden’s plans might prove to be the antidote to Trumpism – creating enough decent-paying working-class jobs, along with benefits such as childcare and free community college, as to forestall some of the rightwing dyspepsia that Trump whipped into a fury. More

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      Republicans fret over AOC backing for Biden as 100-day mark draws near

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      As Joe Biden welcomed a series of polls showing majority approval for his first 100 days in the White House, and prepared to address Congress for the first time on Wednesday, Republicans attacked his progressive record in office.One senior senator said: “AOC said his first 100 days exceeded her expectations. That’s all you need to know.”Lindsey Graham of South Carolina was talking to Fox News Sunday about remarks by Alexandria Ocasio-Cortez, a congresswoman and leading progressive from New York.Speaking to an online meeting on Friday, she said: “The Biden administration and President Biden have definitely exceeded expectations that progressives had.”Citing the $1.9tn Covid relief and stimulus bill, Ocasio-Cortez said Biden had been “very impressive” in negotiating with Congress to pass “progressive legislation”. She also voiced dissatisfaction with Biden’s $2.25tn infrastructure package.On Sunday, speaking to CNN’s State of the Union, Vice-President Kamala Harris trumpeted the administration’s achievements.“We are going to lift half of America’s children out of poverty,” she said. “How about that? How about that? Think about that … That’s good stuff. That’s really good stuff.”Republicans oppose the price tag on the American Jobs Plan and priorities within it, including plans to raise taxes on wealthier Americans and proposed spending on environmental initiatives.So do some Democrats – on Sunday the West Virginia senator Joe Manchin, a key vote in the 50-50 chamber, told CNN he favoured a slimmed down, “more targeted” bill.Graham was not the only senior GOP figure to complain about something many on the left have praised: that Biden campaigned as a moderate but is governing more as a progressive.Also speaking to Fox News Sunday, the House minority leader, Kevin McCarthy, accused Biden of “a bait and switch. The bait was he was going to govern as bipartisan but the switch is, he’s governed as a socialist”.Graham said: “During the campaign, he made us all believe that Joe Biden would be the moderate choice, that he really thought court-packing was a bonehead idea. All of a sudden we got a commission to change the structure of the supreme court. Making DC a state, I think that’s a very radical idea that will change the make-up of the United States Senate.”Progressives defend Biden’s commission on the supreme court as a necessary answer to Republican hardball tactics that skewed the panel 6-3 in favour of rightwing judges. However, Biden’s commission to examine the issue both contains conservative voices and is unlikely to produce an increase beyond nine justices any time soon.A bill to make DC a state, thereby giving the city representation it currently lacks and almost certainly electing two Democratic senators, has passed the House but is unlikely to pass the Senate.“AOC said his first 100 days exceeded her expectations,” Graham added. “That’s all you need. I like Joe Biden, but I’m in the 43%.”Sunday brought a slew of polls. Fox News put the president’s approval rating at 54% positive to 43% negative, nine points up on Donald Trump at the same time four years ago. NBC put Biden up 51%-43%, ABC made it 52%-42% and CBS reported a 58%-42% split.Graham also insisted Biden had “been a disaster on foreign policy”.The South Carolina senator was once an eager ally of John McCain, the late Arizona senator, presidential nominee and a leading GOP voice on foreign affairs. Biden was a senator from Delaware for 36 years and chaired the foreign relations committee.“The border is in chaos,” Graham said, “the Iranians are off the mat … Afghanistan is gonna fall apart, Russia and China are already pushing him around. So I’m very worried.“I think he’s been a very destabilising president, and economically thrown a wet blanket over the recovery, wanting to raise taxes a large amount and regulate America basically out of business.“So I’m not very impressed with the first 100 days. This is not what I thought I would get from Joe Biden.” More

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      US CEOs think Biden’s corporate tax rate hike will have negative impact – survey

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      The bosses of America’s largest companies overwhelmingly believe Joe Biden’s proposed increase in the country’s corporate tax rate would have a negative impact on their businesses, according to a survey released on Monday.The influential business lobbying group Business Roundtable, whose members include Amazon’s Jeff Bezos and Apple’s Tim Cook, released a survey of 178 CEOs on their thoughts on an increase in corporate tax. The survey specifically questioned the CEOs on the president’s proposed corporate tax hike, which would raise the corporate tax rate from 21% to 28%, to pay for his $2.3tn infrastructure plan.According to 98% of the CEOs surveyed, the corporate tax increase would have a “moderately” to “very” severe impact on their company’s ability to compete on a global scale. Three-fourths of the CEOs said that the tax would negatively affect their ability to conduct research and development innovation and 71% said it would negatively affect their ability to hire new employees.The increase in the corporate tax rate, along with a proposal for higher taxes on companies seeking to get lower tax rates abroad, is part of Biden’s plan to undo the tax cuts Donald Trump made in 2017.When the cuts were passed, Republicans argued that it would encourage domestic investment, which would increase worker productivity and ultimately raise wages. Democrats and some economists are skeptical that any of the benefits from the cuts were seen in the economy before the Covid-19 pandemic.A report released earlier this month from the progressive Institute on Taxation and Economic Policy found that at least 55 of America’s top companies, including FedEx and Nike, paid no federal corporate income tax because of loopholes and substitutes. The report found that the tax breaks cost $8.5bn in potential tax revenue.“Our tax revenues are already at their lowest level in generations,” Janet Yellen, treasury secretary, told reporters last week. “If they continue to drop lower, we will have less money to invest in roads, bridges, broadband and R&D.”But business leaders and lobbying groups have made clear in the last weeks similar concerns that Biden’s tax plan would hurt businesses and ultimately offset the progress made by his infrastructure plan.“It will actually obviate all the economic gains we could possibly gain in infrastructure,” Neil Bradley, executive vice-president of the US Chamber of Commerce, told the Washington Post.The US Chamber of Commerce and other business groups have made promises to lobby against the corporate tax increase. While Republicans have been generally supportive of spending on infrastructure, the party is unified in opposition to tax hikes. This means that moderate Democrats, especially Joe Manchin, the party’s most conservative member in the Senate, will be the stars of the debate around a potential increase.Manchin has already said that he would not support an increase to 28%, but said going up to 25% is something he could get behind.“We have to be competitive, and we are not going to throw caution to the wind,” he told a local West Virginia radio station. More

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      Republican ‘attacks’ on corporations over voting rights bills are a hypocritical sham | Robert Reich

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      For four decades, the basic deal between big American corporations and politicians has been simple. Corporations provide campaign funds. Politicians reciprocate by lowering corporate taxes and doing whatever else corporations need to boost profits.The deal has proven beneficial to both sides, although not to the American public. Campaign spending has soared while corporate taxes have shriveled.In the 1950s, corporations accounted for about 40% of federal revenue. Today, they contribute a meager 7%. Last year, more than 50 of the largest US companies paid no federal income taxes at all. Many haven’t paid taxes for years.Both parties have been in on this deal although the GOP has been the bigger player. Yet since Donald Trump issued his big lie about the fraudulence of the 2020 election, corporate America has had a few qualms about the GOP.After the storming of the Capitol, dozens of giant corporations said they would no longer donate to the 147 Republican members of Congress who objected to the certification of Biden electors on the basis of the big lie.Then came the GOP’s wave of restrictive state voting laws, premised on the same big lie. Georgia’s are among the most egregious. The chief executive of Coca-Cola, headquartered in the peach tree state, calls those laws “wrong” and “a step backward”. The chief executive of Delta Airlines, Georgia’s largest employer, says they’re “unacceptable”. Major League Baseball decided to take its annual All-Star Game away from the home of the Atlanta Braves.The basic deal between the GOP and corporate America is still very much aliveThese criticisms have unleashed a rare firestorm of anti-corporate Republican indignation. The Senate minority leader, Mitch McConnell, warns corporations of unspecified “serious consequences” for speaking out. Republicans are moving to revoke MLB’s antitrust status. Georgia Republicans threaten to punish Delta by repealing a state tax credit for jet fuel.“Why are we still listening to these woke corporate hypocrites on taxes, regulations and antitrust?” asks the Florida senator Marco Rubio.Why? For the same reason Willie Sutton gave when asked why he robbed banks: that’s where the money is.McConnell told reporters corporations should “stay out of politics” but then qualified his remark: “I’m not talking about political contributions.” Of course not. Republicans have long championed “corporate speech” when it comes in the form of campaign cash – just not as criticism.Talk about hypocrisy. McConnell was the top recipient of corporate money in the 2020 election cycle and has a long history of battling attempts to limit it. In 2010, he hailed the supreme court’s Citizens United ruling, which struck down limits on corporate political donations, on the dubious grounds that corporations are “people” under the first amendment to the constitution.“For too long, some in this country have been deprived of full participation in the political process,” McConnell said at the time. Hint: he wasn’t referring to poor Black people.It’s hypocrisy squared. The growing tsunami of corporate campaign money suppresses votes indirectly by drowning out all other voices. Republicans are in the grotesque position of calling on corporations to continue bribing politicians as long as they don’t criticize Republicans for suppressing votes directly.The hypocrisy flows in the other direction as well. The Delta chief criticized the GOP’s voter suppression in Georgia but the company continues to bankroll Republicans. Its Pac contributed $1,725,956 in the 2020 election, more than $1m of which went to federal candidates, mostly Republicans. Oh, and Delta hasn’t paid federal taxes for years.Don’t let the spat fool you. The basic deal between the GOP and corporate America is still very much alive.Which is why, despite record-low corporate taxes, congressional Republicans are feigning outrage at Joe Biden’s plan to have corporations pay for his $2tn infrastructure proposal. Biden isn’t even seeking to raise the corporate tax rate as high as it was before the Trump tax cut, yet not a single Republicans will support it.A few Democrats, such as West Virginia’s Joe Manchin, don’t want to raise corporate taxes as high as Biden does either. Yet almost two-thirds of Americans support the idea.The basic deal between American corporations and American politicians has been a terrible deal for America. Which is why a piece of legislation entitled the For the People Act, passed by the House and co-sponsored in the Senate by every Democratic senator except Manchin, is so important. It would both stop states from suppressing votes and also move the country toward public financing of elections, thereby reducing politicians’ dependence on corporate cash.Corporations can and should bankroll much of what America needs. But they won’t, as long as corporations keep bankrolling American politicians. More

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      Republicans claim Biden $2tn infrastructure plan a partisan tax hike

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      Republicans opposed to Joe Biden’s proposed $2tn infrastructure bill claimed on Sunday that it was effectively a partisan tax hike that allocated too much money to electric vehicles and other environmental initiatives.On CNN’s State of the Union, Mississippi governor Tate Reeves was asked if his state could use some of the $100bn Biden proposes to spend on fixing roads and bridges neglected for decades amid gridlock in Washington and paralyzed public spending.Yes, he said. But.“There’s no doubt that Mississippi could use our fair share of $100bn,” Reeves said. “The problem with this particular plan, though, is although the Biden administration is calling it an infrastructure plan, it looks more like a $2tn tax hike plan, to me. That’s going to lead to significant challenges in our economy, it’s going to lead to a slowing GDP … it’s going to lead to Americans losing significant numbers of jobs.”Biden proposes funding his plan by raising corporate tax rates and making it more difficult for corporations to utilize offshore tax shelters.Reeves had other complaints. While Biden proposes to spend billions on roads and bridges, he said, he also proposes to “spend more than that on the combination of Amtrak [railways] and public transit. And what’s even worse, [Biden’s bill] spends $100bn on clean water, which Mississippi could certainly use, but it spends more than that … to subsidize electric vehicles.“That is a political statement. It’s not a statement on trying to improve our infrastructure in America. And so it looks more like the Green New Deal than it looks like an infrastructure plan.”The Green New Deal is a set of policy priorities championed by prominent progressives including Bernie Sanders and Alexandria Ocasio-Cortez as a way to meet looming environmental challenges while boosting the economy and reducing inequality. It is not enacted law or a formal part of Biden’s policy plans. Nonetheless, Republicans from Donald Trump down have seized on it, claiming it represents a determination to take away gas-guzzling cars and even the right to eat meat.On ABC’s This Week, the Missouri Republican senator Roy Blunt asked: “Why would you pass up the opportunity here to focus on roads, bridges, what’s happening underground, as well as above the ground on infrastructure, broadband, all of which wouldn’t be 40% of this package?“There’s more in the package for charging stations for electric vehicles … than there is for roads, bridges and airports and ports. When people think about infrastructure, they’re thinking about roads, bridges, ports and airports.”The Senate minority leader, Mitch McConnell, said this week he would “fight them every step of the way because I think this is the wrong prescription for America. That package that they’re putting together now, as much as we would like to address infrastructure, is not going to get support from our side.”Democrats could attempt to pass the package using budget reconciliation, a procedure that allows for a simple Senate majority rather than 60 votes. But even if successful it would mean abandoning portions of the plan that do not impact taxes and spending.Biden has repeatedly emphasized the need for bipartisanship. Politicians from both sides have claimed willingness to reach across the aisle.Reeves told CNN he “believes we can come up with a plan” but opposes the tax-funded price-tag. Blunt said it was “very unlikely” Republicans would vote to reverse Trump’s 2017 corporate tax cuts, suggesting instead “new funding sources, figuring out how if you’re going to spend all this money on electric vehicles, which I think is part of the future, we need to figure out how electric vehicles pay for using the system just like gas-powered vehicles have always paid for it with a gas tax.”Pete Buttigieg, Biden’s transportation secretary, vowed to work with Republicans.“I’ve got a lot of respect for Senator Blunt,” he told ABC, “but I’m going to work to try to persuade him that electrical vehicle charging infrastructure is absolutely a core part of how Americans are going to need to get around in the future, and not the distant, far off future, but right now.Asked if it was “a realistic prospect to expect Republicans are going to come around”, Buttigieg said: “I think it can be. I’m having a lot of conversations with Republicans in the House and Senate who have been wanting to do something big on infrastructure for years. We may not agree about every piece of it, but this is one area where the American people absolutely want to see us get it done.”The Republican Mississippi senator Roger Wicker told NBC’s Meet the Press: “I’m all for working with the administration on an infrastructure bill. And let me tell you, I think I can work with Pete Buttigieg. I spoke to him the day he was nominated. We’ve been trading phone messages for the last three or four days in an effort to talk about this bill. I think Pete and I could come up with an infrastructure bill.”But Wicker also brought out the stumbling block to such thoughts of progress.“What the president proposed this week is not an infrastructure bill,” he said. “It’s a huge tax increase, for one thing.” More

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      Win the Amazon union fight and we can usher in a new Progressive Era | Robert Reich

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      The most dramatic change in American capitalism over the last half-century has been the emergence of corporate behemoths like Amazon and the shrinkage of labor unions. The resulting imbalance has spawned near-record inequalities of income and wealth, corruption of democracy by big money and the abandonment of the working class.All this is coming to a head in several ways.Over the next eight days, Amazon faces a union vote at its warehouse in Bessemer, Alabama. If successful, it would be Amazon’s first US-based union in its nearly 27-year history.Conditions in Amazon warehouses would please Kim Jong-un – strict production quotas, 10-hour workdays with only two half-hour breaks, unsafe procedures, arbitrary firings “and they track our every move”, Jennifer Bates, a worker at Bessemer, told the Senate budget committee on Wednesday.To thwart the union drive, Amazon has required Bessemer workers to attend anti-union meetings, warned workers they’d have to pay union dues (wrong – Alabama is a “right-to-work” state that bars mandatory dues), and intimidated and harassed organizers.Why is Amazon abusing its workers?The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a commitment to antitrustThe company isn’t exactly hard-up. It’s the most profitable firm in America. Its executive chairman and largest shareholder, Jeff Bezos, is the richest man in the world, holding more wealth than the bottom 39% of Americans put together.Amazon is abusing workers because it can.Fifty years ago, General Motors was the largest employer in America. The typical GM worker earned $35 an hour in today’s dollars and had a major say over working conditions. Today’s largest employers are Amazon and Walmart, each paying about $15 an hour and treating workers like cattle.The typical GM worker wasn’t “worth” more than twice today’s Amazon or Walmart worker and didn’t have more valuable insights about how work should be organized. The difference is GM workers a half-century ago had a strong union, summoning the collective bargaining power of more than a third of the entire American workforce.By contrast, today’s Amazon and Walmart workers are on their own. And because only 6.4% of America’s private-sector workers are unionized, there’s little collective pressure on Amazon or Walmart to treat their workers any better.Fifty years ago, “big labor” had enough political clout to ensure labor laws were enforced and that the government pushed giant firms like GM to sustain the middle class.Today, organized labor’s political clout is minuscule by comparison. The biggest political players are giant corporations like Amazon. And what have they done with their muscle? Encouraged “right-to-work” laws, diluted federal labor protections and kept the National Labor Relations Board understaffed and overburdened.They’ve also impelled government to lower their taxes (Amazon paid zero federal taxes in 2018); extorted states to provide them tax breaks as condition for locating facilities there (Amazon is a champion at this game); bullied cities where they’re headquartered (Amazon forced Seattle to back down on a plan to tax big corporations to pay for homeless shelters); and wangled trade treaties allowing them to outsource so many jobs that blue-collar workers in America have little choice but to take low-paying, high-stress warehouse and delivery gigs.Oh, and they’ve neutered antitrust laws, which in an earlier era would have had companies like Amazon in their crosshairs.This decades-long power shift – the emergence of corporate leviathans and the demise of labor unions – has resulted in a massive upward redistribution of income and wealth. The richest 0.1% of Americans now has almost as much wealth as the bottom 90% together.Corporate profits account for a growing share of the total economy and wages a declining share, with multi-billionaire executives and investors like Bezos taking home the lion’s share.The power shift can be reversed – but only with stronger labor laws, tougher trade deals and a renewed commitment to antitrust.The Biden administration and congressional Democrats appear willing. The House has just passed the toughest labor reforms in more than a generation. Biden’s new trade representative, Katherine Tai, promises trade deals will protect American workers rather than exporters. And Biden is putting trustbusters in critical positions at the Federal Trade Commission and in the White House.I’d like to think America is at a tipping point similar to where it was some 120 years ago, when the ravages and excesses of the Gilded Age precipitated what became known as the Progressive Era. Then, reformers reversed the course of American capitalism for the next 70 years, making it work for the many rather than the few.Today’s progressive activists – in Washington, at Amazon’s Bessemer warehouse and elsewhere around the nation – may be on the verge of doing the same. More