Representatives García, Khanna Introduce Legislation to Boost Jobs and Wages

Lawndale News Chicago's Bilingual Newspaper - Business

Lawndale News Chicago's Bilingual Newspaper - Business

Representatives Jesús “Chuy” García (IL-04) and Ro Khanna (CA-17), introduced the Reward Work Act as a companion to legislation by Senator Tammy Baldwin (D-WI). This bill will address the explosion in so-called “stock buybacks.” Since the late 1970s, a growing share of economic growth has gone to Wall Street with little given to workers. This is especially true since the passage of the 2017 tax overhaul. Since President Trump signed that bill, corporate firms have spent more than $1 trillion on stock buybacks to pay out executives and shareholders. The Reward Work Act also gives workers a voice in choosing how their company is run by requiring public companies to directly elect one-third of the company’s board of directors and banning open-market stock buybacks. In the Senate, the bill has been cosponsored by Senators Tammy Baldwin (WI), Elizabeth Warren (MA), Bernie Sanders (VT), and Brian Schatz (HI). This bill has been supported by organizations including AFL-CIO, Communication Workers of America, Public Citizens, Americans for Financial Reform and Take On Wall Street. Wells Fargo was the biggest beneficiary of this tax bill, according to Vox. The corporation has bought back $40 billion of its own stock while laying off workers and being involved in numerous consumer protection scandals. In 2018, Starbucks spent nearly $6 billion on stock buybacks. If Starbucks reallocated money from share buybacks, every worker could receive a $7,000 raise. Similarly, if Lowe’s, CVS and Home Depot did the same, each worker could receive of at least 18,000 per year.

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