From David Williams <[email protected]>
Subject Labor Pains and A Bad Day at the Beach - TPA Weekly Update: June 25, 2021
Date June 25, 2021 7:44 PM
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The bi-partisan infrastructure deal was released yesterday. Do you like massive taxpayer spending? Do you like tax increases? Do you want to give the IRS more power? If you answered yes to any of these questions, you’ll LOVE this “compromise.” Read TPA’s full statement here ([link removed]) . The bill seeks to generate revenue by ramping up IRS enforcement. What could possibly go wrong? In light of the IRS illegally leaking the tax information of private citizens, rewarding them with more funding to get every last dollar from American taxpayers is naïve at best. It will more than likely lead to more targeting of the American people to rob them of their hard-earned income. And, if the IRS can’t squeeze enough out of increased enforcement, who will be the next target of the IRS?

(Department of) Labor Pains

It’s been an emotional year for many as the economy slowly but surely recovers from the coronavirus pandemic. In a remarkable turnaround, there has already been a flurry of wage hikes, increases in signing bonuses, and contract renewals offered by companies reopening their doors. But all of this may change if the Biden administration picks the wrong personnel to staff operations at federal agencies such as the Department of Labor (DOL). For example, President Biden recently nominated Brandeis professor David Weil to head the DOL’s Wage & Hour Division, despite Weil’s longstanding advocacy for harmful regulations. Dr. Weil is known for sounding the alarm about an increasingly “fissured workplace,” the idea that corporations are getting ahead through contracting, outsourcing, and franchising to the detriment of workers. One only need ask the millions of Americans who choose the flexibility of being an independent contractor if Weil’s academic theory justifies an upending of their
livelihoods. Survey data from Lyft and Uber drivers indicates that the vast majority prefer to remain independent contractors, citing the flexibility and freedom that comes with being your own boss.

And while it may be hard to get rich off of ridesharing, hourly earnings eclipse entry-level earnings at many stores and restaurants without rigid hours or the requirement to be on your feet all the time. But worker satisfaction is not enough for Dr. Weil, who would likely seek to narrow the definition of “independent contractor” to force millions to accept a status they do not want or need. During his first go-around at the DOL, Weil opted to define “independent contractor” to exclude the vast majority of workers despite their preferences or industry realities. Dr. Weil and the Obama administration ignored decades of legal precedent and concluded that, “most workers are employees under the FLSA’s broad definitions.” Another concern is that Weil will wield his power to target the franchise industry, which employs over 7 million workers, including in the states of key Democratic Senators like West Virginia (45,000), Arizona (153,000), and Montana (30,000). Weil has expressed open hostility
to these small businesses both in his writings and action he took in 2016 that has greatly increased litigation by expanding the definition of a “joint employer.”

As the Senate considers Weil’s nomination, the Biden administration is actively pushing a harmful piece of legislation called the Protecting the Right to Organize (PRO) Act. This proposal would reclassify millions of independent contractors as workers (without their consent) under a rigid test that makes little sense. Under the PRO Act, a contractor would be considered an employee unless the service they are performing is “outside the usual course of the business of the employer.” But as the Authors Guild explains, “a journalist writing for a newspaper, magazine, blog, etc. is generally performing a service that is core to the ‘usual course of business of the employer.’” As a result, countless freelancers would be reclassified as employees and become too costly for newspapers and media companies to continue to work with. According to the American Action Forum, the PRO Act would add billions of dollars in annual compliance costs on employers and harm millions of small businesses. The very
real fear is that, even if the PRO Act fails to become law, a DOL enforcement wing run by Dr. Weil and likeminded ideological appointees could issue interpretations, regulations, and undertake arbitrary enforcement strategies designed to mimic the worst parts of this disastrous proposal, especially with regard to worker classification and the joint employer standard. Unless Weil provides ironclad assurances during his upcoming hearing in the Senate Health, Education, Labor, and Pensions (HELP) Committee that he will not target small businesses and contractors, Senate Republicans should view this nomination as a proxy vote on the PRO Act and reject his nomination. The lives and livelihoods of millions of workers and businesses hang in the balance.


A Really Bad Day at the Beach

As many of you know, I like to have fun with the titles in the Weekly Update. However, this one I mean quite literally. While we can roll our eyes at the insanity of some of the policies we fight, the human impact here is too direct and downright tragic. The incident discussed below reminded me and many others about what happened on July 17, 2014, when Eric Garner was arrested for selling untaxed cigarettes. The police arrested him and put him in a chokehold which killed him. Earlier this month, multiple videos emerged of another confrontation between Black Americans and police officers. Just exactly what was the ruckus about? Several teenagers – all 18 or older – were vaping on the Ocean City, Maryland Boardwalk. What’s the issue? For one, smoking and vaping are prohibited on the Boardwalk. The Ocean City Council’s top priority in 2014 was banning smoking and use of e-cigarettes there, except in designated smoking areas. The policy went into effect May 1, 2015. At the time that the ban
began, former city manager David Recor commented the city would not “haul people off to jail for smoking on the Boardwalk,” and that the city didn’t “expect to take a heavy hand, but expect visitors to self-police themselves.” The opposite happened on June 12 when four teens from Pennsylvania were arrested after vaping on the Boardwalk. Initially, police confronted the teens and informed them of the smoking and vaping ban. But the teens continued to vape. What began as a small public nuisance matter became a violent altercation, with police eventually arresting the offenders for disorderly conduct, assault, and resisting arrest. Videos of the incident have gone viral and the Ocean City Police Department is reviewing its policy.

Arguing about whether the police or the teens in the recent incident were in the wrong doesn’t address the underlying issue of well-intended government policies inflicting damage. While protecting beachgoers from secondhand smoke is laudable, there was always an issue with enforcing the ban. A violation of the smoking ordinance is supposed to result in a fine, not arrest. But as evidenced from this weekend and last year, such petty offenses can lead to drastic confrontations. Instead of looking at instances of police interaction concerning tobacco products, lawmakers are proposing more bans and more taxes. The U.S. Food and Drug Administration (FDA) is currently working on proposed rulemaking that would forbid tobacco manufacturers from selling menthol cigarettes. Lawmakers in the U.S. House and Senate have introduced a federal cigarette tax increase, as well as introducing a new federal tax on e-cigarettes.

Those proposals will undoubtedly lead to more police interactions as criminal enterprises fulfill demand in the wake of a menthol ban and smokers seek cheaper tobacco products. After all, it will be the police who enforce such bans and policies. It’s not like the FDA has its own police force. In a video from that weekend’s altercation, the poster noted that “this is all over a vape,” and it is rather ludicrous that one 19-year old’s vaping led to four arrests. It is also prime evidence of the consequences of prohibitions and other government actions that drive individuals to seek out illicit products or illegal behavior. Lawmakers should look at this instance, and the others before it, when arguing in favor of such policies.

BLOGS:


** Monday: Department of Labor Nominee David Weil Would Harm Workers, Small Businesses ([link removed])
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** Tuesday: TPA Sends Letter to Senators, Urging Opposition to S.1 ([link removed])
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** Tuesday: A Prime Day for Some Perspective on Online Retail Market ([link removed])
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** Wednesday: D.C. City Council Ignores Critical Information With 2021 Flavor Ban ([link removed])
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** Thursday: Watchdog Slams New Deal on Infrastructure ([link removed])
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MEDIA:

June 11, 2021: Foxbusiness.com ([link removed]) quoted TPA in their story, “Global minimum tax rate could drive business away from US, watchdog warns.”

June 17, 2021: WBFF quoted TPA, “When will Baltimore City Hall reopen? Experts say taxpayers deserve it now.”

June 17, 2021: Colorado Newsline mentioned TPA in their story, “Polis signs Colorado Option bill into law, along with bill meant to reduce prescription drug prices.”

June 18, 2021: Politico quoted TPA, “How the House’s Silicon Valley smackdown is dividing conservatives.”

June 18, 2021: Mycourierjournal.com ([link removed]) quoted TPA in an op-ed titled, “If they build it, will they drive it?”

June 18, 2021: The Center Square ran TPA’s op-ed, “Department of Labor nominee David Weil would harm workers, small businesses.”

June 21, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me about vaping and tobacco harm reduction.

June 21, 2021: Townhall..com ran TPA’s op-ed, “Two Federal Agencies Aimed at Protecting Persons, Two Different Approaches to Harm Reduction.”

June 22, 2021: Al Bawaba (Jordan) quoted TPA in their story, “Biden to Give $300 Monthly Child-Tax-Credit Checks to Families Starting July 15.”

June 22, 2021: News Colony quoted TPA in their article, “President Biden unveils 80% hike child tax credits that will see parents given $3600 this year.”

June 22, 2021: The Daily Mail quoted TPA in their story, “President Biden unveils 80% hike child tax credits that will see parents given $3600 this year.

June 22, 2021: Nicotine Policy posted TPA’s op-ed, “Two Federal Agencies Aimed at Protecting Persons, Two Different Approaches to Harm Reduction.”

June 22, 2021: The Center Square ran TPA’s op-ed, “Biden needs a new regulatory agenda.”

June 22, 2021: The Epoch Times quoted TPA in their article, “Overt IRS Hostility to Prayer, Bible-Study Draws GOP Anger; Pelosi, Hoyer, Other Dems Silent.”

June 22, 2021: Nation.lk ([link removed]) quoted TPA in their article, “President Biden unveils 80% hike child tax credits that will see parents given $3600 this year.”

June 22, 2021: Inside Sources ran TPA’s op-ed, “A Day at the Beach and the Consequences of Vaping Prohibition.”

June 23, 2021: Vapoon.com ([link removed]) posted TPA’s op-ed, “A Day at the Beach and the Consequences of Vaping Prohibition.”

June 23, 2021: Tobacco.org ([link removed]) posted TPA’s op-ed, “Two Federal Agencies Aimed at Protecting Persons, Two Different Approaches to Harm Reduction

June 24, 2021: Tobacco.org ([link removed]) posted TPA’s op-ed, “A Day at the Beach and the Consequences of Vaping Prohibition.”

June 23, 2021: Issues & Insights ran TPA’s op-ed, “Infrastructure Needs Greater Private Investment, Not More Taxpayer Funding.”

June 24, 2021: WBFF Fox45 (Baltimore, Md.) interviewed me about a new ranking for cities and Baltimore’s score.

June 24, 2021: I appeared on WBOB 600 AM (Jacksonville, Fla.) to talk about the big tech hearings this week.

June 24, 2021: Postalconsumers.org ([link removed]) ran TPA’s op-ed, “Memo To USPS: Don’t Slow Down The Mail.”

Have a great weekend!

Best,

David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org ([link removed])

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