A new analysis found financial hardship is growing in Connecticut.

United Way of Connecticut's ALICE Report focuses on those who are Asset Limited, Income Constrained, but Employed. It suggested the direct cause of the issues is a disconnect between wages and the cost of basic essentials. The report showed more than half of the most common jobs in the state paid less than $20 an hour, or $40,000 a year, in 2021.

Lisa Tepper Bates, president and CEO of the United Way of Connecticut, said the state has already taken some steps to make life more affordable.

"The legislature and the governor did a terrific job last session when they were able to increase the state Earned Income Tax Credit, which is based on a percentage of the federal EITC or Earned Income Tax Credit," Tepper Bates explained.

The state raised its tax credit to 40% of the federal level but Tepper Bates pointed out it can only do so much. She noted federal programs initiated during the pandemic, like the expanded federal Child Tax Credit, provided some relief for families. A Columbia University study found the Child Tax Credit kept almost 4 million children out of poverty.

The report also showed a retail salesperson in the state has lost buying power due to inflation. Over 15 years, it equals more than $42,000. Tepper Bates pointed out one shocking finding was how quickly prices have increased across the state.

"It is surprising to a lot of people how very fast the cost of living has gone up," Tepper Bates stressed. "The cost of housing in particular, in Connecticut, has started to tick upwards very, very quickly."

A Connecticut Voices for Children report finds inflation growth in rents grew faster than median household income between 2005 and 2021.


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Minnesota lawmakers are considering a measure which would force employers to properly classify certain trade union workers and others as employees rather than independent contractors.

The bill aims to ensure worker's rights to overtime, minimum wages, safe workplaces and other benefits are protected.

Richard Kododziejski, director of government affairs for the North Central States Regional Council of Carpenters, said fraud and wage theft is rampant among certain employers.

"It maximizes the ability to fight employer misclassification fraud in Minnesota," Kododziejski stressed, as he explained the union's support for the measure. "While it was already illegal to misclassify employees, the law was not as strong as this bill will make it."

Versions of the bill have been filed in both the Minnesota House and Senate. Kododziejski noted both measures have cleared relevant committees and he expects them to go to a floor vote next week.

Kododziejski emphasized while misclassifying employees has always been illegal in Minnesota, the new law would give state regulators a stronger hand in dealing with bad actors.

"The Department of Labor and Industry has not had the ability to enforce it to the extent that they would through this piece of legislation," Kododziejski pointed out. "It levels the playing field for honest contractors who are not cheating the system and are properly treating their workers as employees."

Kododziejski observed when workers are improperly misclassified as independent contractors, it deprives them of overtime, minimum wages, safe workplaces and other benefits. He believes the bill will make it too expensive for employers to cut corners on paying their employees.

"Significant elements of this bill provide large fines to employers that definitely is steeper than what we've seen in the past," Kododziejski added. "When you say, well, why can't they make a dent in this? Why can't we stop this once and for all?"

Late Friday, a majority of Volkswagen workers in Chattanooga overwhelmingly voted to join the United Auto Workers.

The vote is historic, as they are the first workers in the South outside the "Big Three" automakers to be successful. Among the more than 3,600 workers, 73% voted for the UAW to represent them.

Isaac Meadows, an assembly line worker and member of the volunteer organizing committee, said the Volkswagen workers now have a voice.

"We actually now have a vested interest in this company as a partnership," Meadows explained. "We get to negotiate our pay, our benefits, our working schedule, and then ultimately, demand the respect that we deserve in the workplace."

The vote to unionize came despite opposition from six Southern governors, including Tennessee Gov. Bill Lee.

President Joe Biden congratulated the Volkswagen workers for their groundbreaking decision.

Shawn Fain, president of the United Auto Workers, in a victory speech after the vote, praised workers for their decadelong fight and said now, they have to continue to stand together.

"The real fight begins now," Fain asserted. "The real fight is getting your fair share. The real fight is the fight to get more time with your families. The real fight is to fight for our union contracts."

Sharon Block, professor of practice at the Center for Labor and a Just Economy at Harvard Law School, said the Chattanooga vote will radiate strength to other campaigns, including Mercedes-Benz workers at an Alabama plant who will vote to organize next month.

"Workers for a long time have been told, 'You can't organize in the South. The labor movement is on a downslide; it's not possible,'" Block observed. The UAW showed that it can be done, and I think that just opens up a window of possibility."

Alexander Hertel-Fernandez, associate professor of international and public affairs at Columbia University, said research indicates when unions establish themselves in specific businesses and sectors, they create ripple effects on nonunionized plants. He added when workers benefit, communities benefit.

"When workers have higher wages and better working conditions, it allows them to better participate in their local communities, better support their families," Hertel-Fernandez emphasized. "I think there's good reason to think that this is going to help the local community in which the plant operates."

He predicted the win will fuel future UAW efforts in the South.


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Maine lawmakers are considering legislation to require corporations to reveal the amount of state income taxes they pay.

Supporters of the bill say more state level data are needed to determine the extent of corporate tax avoidance.

Maura Pillsbury, tax policy analyst for the Maine Center for Economic Policy, said too often corporations use tax loopholes and accounting schemes to avoid state taxes while benefiting from millions of dollars in state subsidies and tax breaks.

"We're hopeful that this information will really help give Mainers and the legislature a picture of if our tax system is functioning the way it's intended and if everyone is paying their fair share," Pillsbury explained.

Pillsbury argued businesses asking for public funds should be accountable to the public. The bill has faced some pushback from businesses concerned with privacy but the measure has so far received bipartisan support.

A report by the Institute on Taxation and Economic Policy finds more than 100 of America's largest corporations paid no income taxes for at least one year following the 2017 corporate income tax cuts instituted under former President Donald Trump.

Pillsbury pointed out corporations rely on taxpayer-funded roads, bridges and other critical infrastructure -- even an educated workforce -- to earn their profits, yet fail to give back to the state.

"We have small businesses right in our communities that are struggling to compete with big corporations while they're using all of these public services," Pillsbury emphasized. "It's really important to know if they're paying their fair share into all these things that help Maine prosper."

Pillsbury added corporations reveal data in their Securities and Exchange Commissions filings to their shareholders and if Maine is investing in these businesses, they deserve the same information.


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