At a news conference at the Capitol Monday, Minnesota AFL-CIO President Shar Knutson urged elected officials to quickly pass a bonding bill, support private investment in construction jobs, enact a wage subsidy program and raise revenue as part of solving the state’s budget crisis.
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| Minnesota AFL-CIO President Shar Knutson announced the labor federation\'s proposals in a news conference at the state Capitol. |
While Congressional leaders are working on a federal wage subsidy program to help cover the cost of hiring new workers in small and medium-sized businesses, Knutson called for enacting a wage subsidy in Minnesota of up to $12 per hour. Wage subsidy programs, like the MEED program that was in effect in Minnesota in the 1980s, create jobs by paying a part of the wages of new hires. While addressing short-term needs, the programs are shown to have a ripple effect in creating jobs over many years.
Need to raise revenue
While the federation does not know the overall cost of the job growth programs, Knutson said the cost must be weighed against the benefit to working families and the overall economy – and must take into account the need to raise new revenue.
The federation is calling for a tax increase for those in the top income brackets. Working families are currently taxed at a 12.4 percent rate while those in the top tier pay 9 percent.
“We understand that this revenue proposal is only part of the solution,” Knutson said. “But most agree that the current state tax structure is unfair. This proposal moves the state towards tax fairness.”
Minnesota AFL-CIO Secretary-Treasurer Steve Hunter said maintaining public services is critical to strengthening the economy and boosting employment.
“When we cut state and local budgets, people lose jobs,” he said. “Teachers, police officers and nurses lose jobs. Every lost job weakens our communities.”
Knutson said she has talked with some of the 230,000 Minnesotans who have been out of work since the start of the current recession and their situations are dire.
“What they said to us is, ‘We need jobs,’” she said. Knutson said the AFL-CIO will mobilize its more than 1,000 affiliated unions, representing some 300,000 people across the state, in support of the federation’s jobs agenda.
Added Hunter: “We are calling on both Democrats and Republicans to work on this. We are approaching both parties in a bipartisan manner.”
For more information
Visit the Minnesota AFL-CIO website
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At a news conference at the Capitol Monday, Minnesota AFL-CIO President Shar Knutson urged elected officials to quickly pass a bonding bill, support private investment in construction jobs, enact a wage subsidy program and raise revenue as part of solving the state’s budget crisis.
|
| Minnesota AFL-CIO President Shar Knutson announced the labor federation\’s proposals in a news conference at the state Capitol. |
“We are asking today that the Legislature quickly pass a bonding bill that is at least $1 billion. This will put people to work right away. In addition, we are supporting the construction coalition jobs bill that leverages and stimulates private investment in commercial, industrial, energy-efficient retrofit, and residential projects across the state,” said Knutson.
While Congressional leaders are working on a federal wage subsidy program to help cover the cost of hiring new workers in small and medium-sized businesses, Knutson called for enacting a wage subsidy in Minnesota of up to $12 per hour. Wage subsidy programs, like the MEED program that was in effect in Minnesota in the 1980s, create jobs by paying a part of the wages of new hires. While addressing short-term needs, the programs are shown to have a ripple effect in creating jobs over many years.
Need to raise revenue
While the federation does not know the overall cost of the job growth programs, Knutson said the cost must be weighed against the benefit to working families and the overall economy – and must take into account the need to raise new revenue.
The federation is calling for a tax increase for those in the top income brackets. Working families are currently taxed at a 12.4 percent rate while those in the top tier pay 9 percent.
“We understand that this revenue proposal is only part of the solution,” Knutson said. “But most agree that the current state tax structure is unfair. This proposal moves the state towards tax fairness.”
Minnesota AFL-CIO Secretary-Treasurer Steve Hunter said maintaining public services is critical to strengthening the economy and boosting employment.
“When we cut state and local budgets, people lose jobs,” he said. “Teachers, police officers and nurses lose jobs. Every lost job weakens our communities.”
Knutson said she has talked with some of the 230,000 Minnesotans who have been out of work since the start of the current recession and their situations are dire.
“What they said to us is, ‘We need jobs,’” she said. Knutson said the AFL-CIO will mobilize its more than 1,000 affiliated unions, representing some 300,000 people across the state, in support of the federation’s jobs agenda.
Added Hunter: “We are calling on both Democrats and Republicans to work on this. We are approaching both parties in a bipartisan manner.”
For more information
Visit the Minnesota AFL-CIO website