His support for the auto bailouts should have been my first clue. But he talks the talk. I’ve been quite supportive of Michigan Rep. Thaddeus McCotter in the past. I even interviewed him once, and I liked him. Sigh. Now this. Trading principles for votes.
McCotter isn’t the only Republican supporting the union bailout, he’s joined by eight others. But he’s a co-sponsor! Why does he think professional baseball and football players, as well as other union members, should be bailed out by people like me? You know, people funding our own retirements?
Americans for Limited Government (ALG) has sent a letter to 9 House Republicans urging that they withdraw their support from legislation providing a taxpayer bail-out of labor union run pension funds. Among the union pension funds in critical danger are those run by the Major League Baseball Players Association (MLBPA), the National Football League Players Association (NFLPA) and more than a hundred other union-run funds.“We are asking that each Representative remove his or her cosponsorship of this blatant handout to unions, which are now asking the American people to bail them out of their own mismanagement of pensions,” Wilson said, adding that “Compensating poor investment strategies, like those pursued by the multi-employer pension plans, only incentives further underfunding of these plans.”
According to Wilson’s letter to the 9 House Republicans, “While the legislation deals with some challenging issues related to retiree pensions, it is our view that it in fact rewards bad behavior. Those who are asking Congress for this change are largely responsible for the plight of these pension funds, having failed to take the steps to rectify problems that have been looming since well before the stock market drop and recovery over the past two years.”
The letter was sent to Representatives Patrick Tiberi, Ginny Brown-Waite, Jo Ann Emerson, Steven LaTourette, John Linder, Thaddeus McCotter, Tim Murphy, Peter Roskam, and Aaron Schock.
The ALG report goes on to note that these unions are all woefully underfunded. And all the usual suspects are involved – SEIU, Teamsters and many others. Is it the fault of the taxpayers that they are underfunded? Why should we bail them out? Who’s bailing out the millions of private sector workers whose 401k accounts have been decimated? Oh yeah, nobody. We’re bailing out the unions.
Further, ALG President Bill Wilson pointed out just how egregious this is to American taxpayers.
“The proposed Congressional bailout of union pension funds is outrageous, particularly when you consider that these union run pension funds have failed to take reasonable measures to meet basic solvency requirements.”“HR 3936 does not require that a union cut benefits, have participants pay part of the pension costs, change retirement ages, limit access to younger employees, or use union dues to supplement the plan. It doesn’t require that unions negotiate for higher pension payments from employers in lieu of other benefits. Instead, it merely throws the unfunded liabilities onto the backs of taxpayers – a potential $165 billion dollar bailout,” Wilson explained.
Maggie thinks it’s criminal, and has a lot more to say on the subject. I agree completely. And may I just add, those union dues that aren’t going into the pension funds are going into campaign coffers of the politicians voting for these bailouts. It’s sick. It’s maddening. Every American should be enraged. Even union members whose leadership failed them completely and uses their union dues to advance a political agenda. Now their pariahs to the rest of us, I wonder how that feels. Their leadership and politicians have turned them into welfare recipients.
Update: I’m still seething. Remember just a few days ago we learned that unions are planning to spend upwards of $100 million on the mid-term elections? I know, it’s not $165 Billion but it sure would help, right? And someone should ask Rep. McCotter and the other Republicans supporting this dreadful legislation why they support enslaving the private sector to the public sector. That’s right, we work to support them. When will it end? When will politicians grow the gonads to stand up to the unions? Until then we can all enjoy a life of serfdom.
Update 2: As far as I’m concerned, McCotter and his Republican friends supporting this legislation are WORSE than the Democrats. We all know what these smarmy big-spending Democrats stand for. The Big-R Republicans tell us they stand for one thing and turn around and vote the other way. There is no excuse. None! They should be willing to lose their seat in Congress if it means doing the wrong thing. This is absolutely disgusting. And in case you missed it above, here’s the list of Republicans supporting this immoral legislation:
Patrick Tiberi, Ginny Brown-Waite, Jo Ann Emerson, Steven LaTourette, John Linder, Thaddeus McCotter, Tim Murphy, Peter Roskam, and Aaron Schock
LC – we have a holiday weekend coming up. I hope someone reads this. I think we need to both repost next week:-)
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Oh, I know. The best thing to happen to a politician is that bad news comes out over a holiday weekend. Let’s hope when he gets back to work he knows his name is “Mud” in the blogosphere.
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Linder, I believe, is one of the principals pushing the “Fair Tax”. Sheesh, I thought Thad was small government guy. I’m disappointed to say the least.
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I, too, am disappointed at Rep. McCotter. I guess we shouldn’t be surprised as where his district is. I’ll just say that unions are going to be the ruin of this country. I expect to write more about this when I get to that part in my “blogging the subversion chart” series.
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Please, for Heaven’s sake, explain how HR 3936 is a BAILOUT? Even if your idea of a bailout is the government giving $ to a private company, this isn’t even close. Have you read the bill or even the CRS summary (see below)? The bill makes changes to ERISA and employer sponsored pension plan requirements. McCotter’s record is safe, as are the records of the other Republicans, for looking after their constituents, both companies who have plans and potential beneficiaries. Mr. Wilson should read the thing as well. The PBGC is not a recent creation and it’s been underfunded for years. Methinks it’s fashionable to use the term ‘bailout’ to equate something with Obamanomics. Try the facts – it works better.
CRS Summary of HR 3936
Amends the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code to: (1) allow a sponsor of a single-employer defined benefit pension plan to elect in 2009 or 2010 extended amortization periods (9 or 15 years) for investment losses incurred in prior years; (2) allow an increase in the valuation range of plan assets; (3) use the funded status of a plan in 2008 to determine benefit restrictions in 2009 and 2010 and prohibit the use of credit balances by pension plans that are under 80% funded in the prior year; (4) exclude plan-related administrative expenses (including investment expenses) from normal cost targets; (5) delay until 2012 the application of certain benefit restrictions to collectively bargained plans; and (6) require a 120% funding target for plans adopting ad hoc amendments that allow lump sum benefits payments and increased plan liabilities.
Revises rules relating to information reporting and reportable events.
Calculates the amount of any pension plan guarantee by the Pension Benefit Guaranty Corporation (PBGC) using the date of plan termination rather than the date of a plan bankruptcy filing.
Amends ERISA provisions relating to multiemployer pension plans to: (1) allow such plans to elect alternative amortization plans and valuation methods in 2009 and 2010 for investment losses; (2) extend by five years the funding improvement period for plans in endangered or critical status; (3) permit multiemployer plans to merge or form alliances with other plans; and (4) increase PBGC guarantees for insolvent plans to increase participant benefits.
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You missed the point TL. Taxpayer dollars shouldn’t be used to bailout any pension fund. The PBGC is an example of the camel’s nose under the tent cloaked as a “safety net”. It should be an argument between employers and employees, not taxpayers. Pension funds should not be secured with ANY public dollars. It’s inequitable and totally unfair to say the least. A PENSION IS NOT A PUBLIC ENTITLEMENT.
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OK michigan:
You failed to say whether you read the proposed bill or not, but now I guess I understand that your real problem is with the government acting as a guarantor or economic backstop under any circumstances, right? Well, you should have said so.
Let’s get rid of PBGC, even though they are NOT funded by taxpayers.
From the PBGC:
“…….PBGC receives no funds from general tax revenues. Operations are financed by insurance premiums set by Congress and paid by sponsors of defined benefit plans, investment income, assets from pension plans trusteed by PBGC, and recoveries from the companies formerly responsible for the plans.”
And, while we’re at it, let’s get rid of all the other quasi-government entities which have the full faith and credit of the US somewhere behind them…the FDIC, the Flood Insurance Program, Crop Insurance Program, Terrorism Risk Insurance etc. And then, maybe we should also carry this to its logical conclusion – no more issuing of Treasury Bonds, Treasury Bills, US Savings Bonds etc. Then, let’s get Congress to pass a law that prevents anything like this in the future, even in time of war. Then, let’s do the same thing at the state level. Now, those ideas, while laudable in some circles, would all work to make the economy run a lot smoother, eh?
Nope. I’d vote for Mr. McCotter again if I were you. He’s got his priorities and his pragmatism just about right.
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I really have to keep from laughing at your logic (or, collectivist illogic and naiveté in your case) TL. Read the link and wise up.
http://www.michigancapitolconfidential.com/12868
You mention “FDIC, the Flood Insurance Program, Crop Insurance Program, Terrorism Risk Insurance etc. And then, maybe we should also carry this to its logical conclusion – no more issuing of Treasury Bonds, Treasury Bills, US Savings Bonds etc.”
ROFLMAO! You forgot to mention the insanely successful Social Security and Fannie and Freddie programs. Sheesh, you must reconsider your Marxist bend, TL. It’s never worked and never will because it goes against the grain of human nature.
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Wow, michigan. When in a discussion and it seems lost, start the name calling and divert the discussion from the facts and reality. You still haven’t said whether you have read the Bill, apparently content with other’s analysis. I shall leave you to your dream world. Bailout – not.
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Bwahahaha! Nice try! When you’ve lost the argument, go for the, oh so overused ,“name calling” tactic/escape. LOL!!! Ahhh yes, verified; the “TL” I referred to is a reference to “Typical Lib”. You’re so awesomely predictable and pathetic. LOL!
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Jo Ann Emerson has moved to just call it a Backstop…As she can’t remove her support for the Bail Out because her husband Ronald Gladney is a Paid Union Lobbyist for the top 12 Unions in the state of Missouri. Hence she has a bit of a conflict of interest and is standing with her husband the lawyer.(and the Unions)
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[...] exactly a small-government conservative). In the past couple years, he has:Co-sponsored a bill to bail out union pensions to the tune of $165 billion,Opposed the $1 trillion-plus Stimulus Bill because it didn’t send [...]
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[...] you read that right: Despite all of his union donations, his support sponsorship of the union pension bailout (McCotter apparently supports taxpayers bailing out union pensions too), as well as his former [...]
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