Thursday, August 30, 2018

Trump to Federal Employees: No Pay Raises for You Only Big Tax Breaks for Very Richest

Memo to hard-working Federal employees in all Departments
(Don’t like it, tough doo-doo, then quit)

Great news for the government workforce as we head into this Labor Day weekend from Trump reported on by the AP:

Trump informed Congress today (Thursday, August 30) that he is canceling pay raises due in January for most civilian federal employees — then Trump cited budget constraints, however, workers still could see a slightly smaller boost in their pay under a proposal lawmakers are considering.

Trump said he was axing a 2.1% across-the-board raise for most workers as well as locality pay increases averaging 25.7 percent and costing $25 billion.

Unions representing the 2 million-member federal workforce urged Congress to pass the 1.9 percent pay raise under this Trump threat to cut it 100%.

(I Note: Locality pay helps cover the cost of all Federal workers living in high-cost areas of the country – it is NOT for everyone – only those in select locations).

Trump says: “We must maintain efforts to put our Nation on a fiscally sustainable course, and Federal agency budgets cannot sustain such increases.”

(I Note: Trump last year signed a package of tax cuts that is forecast to expand the deficit by about $1.5 trillion over 10 years – and now he is worried about costs to government workers).

Trump cited the “significant” cost of employing federal workers as justification for denying the pay increases, and called for Federal worker pay to be based on performance and structured toward recruiting, retaining and rewarding “high-performing Federal employees, and those with critical skill sets.”

(I Note: Mr. Trump – you need to check with OPM and see the rules re: pay for yourself).

More:

“President Trump’s plan to freeze wages for these patriotic workers next year ignores the fact that they are worse off today financially than they were at the start of the decade,” said J. David Cox Sr., president of the American Federation of Government Employees, which represents some 700,000 federal workers

He added:  Federal worker pay and benefits have been cut by more than $200 billion since 2011, and workers are currently earning 5 percent less than they did at the start of the decade.

Background – lest we forget: In July, the Trump administration sharply revised upward its deficit estimates compared to the estimates in the budget proposal it sent Congress in February – and it is worse.

The worsening deficit reflects the impact of the $1.5 trillion, 10-year tax cut, as well as increased spending for the military and domestic programs that Congress approved earlier this year. 

The administration’s July budget update projected a deficit of $890 million for the fiscal year that ends Sept. 30, up from the February estimate of $873 billion. 

The $890 billion deficit projection represents a 34 percent increase from the $666 billion deficit the government recorded in 2017. 

For 2019, the administration is projecting the deficit will once again top $1 trillion and stay at that level for the next three years.

(I Note: The only other period when the federal government ran deficits above $1 trillion was the four years from 2009 through 2012, when the government used tax cuts and increased spending to combat the 2008 fiscal crisis and the worst economic downturn since the 1930s).

Members of congress like Rep. Gerry Connolly (D-VA), who represent many Federal workers, blame Trump and his mismanagement of federal government, and seem to be saying: 

“The Trump-GOP tax bill exploded the deficit, and now he is concerned about that and wants to balance the budget on the backs of Federal workers saying things are too costly – that is except the tax cut for the top crust he gave and the exploding deficit he set in place. Now it seems that the budget/spending too much that the GOP traditionally fight does not matter and sky-high deficits don’t matter, either – wow what a change in philosophy. Ergo: No sweat, just pass the damage inflicted to the taxpayer – just get them to fork over more of their benefits?”

My 2 cents: Trump is bad news for the country this move proves it without any doubt. Imagine if Trump were able to do this with private industry — the shape of the country then? Oh, I bet he still dishes out White House pay raises, however, right?

Time to wake up from this horrible nightmare, Mr. and Mrs. America.

Thanks for stopping by.




No comments: