Legislation to close the Reverse Morris Trust tax loophole is before the Senate this week, and CWA members are working hard to get their senators on board.

The House of Representatives closed the Reverse Morris Trust tax loophole last week as part of H.R. 4213, the American Jobs and Closing Tax Loopholes Act.

CWA’s Legislative Political Action Team has been coordinating contacts to key senators, looking for support for H.R. 4213, including phone calls and letters. District vice presidents and local union presidents are writing to their senators, pointing out that the Reverse Morris Trust “is a Wall Street scheme that allows big businesses to avoid paying taxes on the sale of company assets” and that closing the loophole would have meant hundreds of millions of dollars in tax revenue.

Because of the Senate rule requiring 60 votes for legislation to be considered, CWAers are urging their senators to reject a filibuster and get the bill to the senate floor for debate.

District 2 activists played a huge role in winning support from Sen. Jay Rockefeller (D-W.Va.), a key member of the Senate Finance Committee.

To send a message to your senator, click here.

The RMT tax loophole has enabled companies like Verizon to save millions of dollars in taxes from the sale of assets. H.R. 4213 also includes tax cuts and an extension of unemployment benefits.

Working families in Arkansas came very close to making Lt. Gov. Bill Halter the Democratic nominee for the U.S. Senate. It’s disappointing to fall short, but CWA locals and members in Arkansas and District 6 did a tremendous amount of work and sent this powerful message to elected officials: 

“We will hold you accountable for your votes and for the choices you make on the issues that matter most to working families.”

Blanche Lincoln learned that by abandoning workers and doing the bidding of the U.S. Chamber of Commerce and Big Business interests, she was in for the fight of her political life. That’s exactly what happened in Arkansas.

Here’s a reminder of how Blanche Lincoln abandoned workers:

• Lincoln voted to tax workers’ health care benefits when she voted against the health care and education reconciliation bill. 
• Lincoln refused to support even a compromise on the Employee Free Choice Act and would not allow the measure to come to the Senate floor for debate.
• Lincoln voted against allowing the nomination of Craig Becker to the National Labor Relations Board to come to the Senate floor for debate.
• Lincoln voted against the auto bailout.
• Lincoln sided with bankers and against reform of the student loan program.
• Lincoln voted to send millions of jobs overseas by supporting NAFTA and CAFTA.

Our campaign in Arkansas put Lincoln and every other elected official on notice. CWA members won’t support candidates who are Democrats in name only. We will support candidates who support us. We came within just a few thousand votes of winning in Arkansas. So imagine how effective our program can be as we take it across the country to hold elected officials accountable.   

CWA is building an independent political and legislative movement that supports working families in tough times, today’s times. The work our locals and coalition partners – the civil rights community, environmental activists and others — did in Arkansas shows that this kind of political change will happen. That’s the lesson of Arkansas.