Refuge for the Poor

The large number of people seeking comfort in a time of crisis has kept many clergy busy counseling our members, but not so busy that we are not shocked and outraged at the recent House of Representatives passed economic stimulus package.

There is no question that the economy is in trouble. The number of unemployed persons increased by 732,000 to 7.7 million in October and at 5.4 percent, the unemployment rate is at the highest level since December, 1996, according to the Bureau of Labor Statistics of the U.S. Department of Labor’s Nov. 2 report.

Many working Americans were barely making ends meet even before September 11. A recent study by the Economic Policy Institute reports that 29 percent of working families in the United States with as many as three children under age 12 do not earn enough income to afford basic necessities.

As people of faith representing various traditions, we are united in the belief that all our traditions must manifest a bias towards those who are poor, but unfortunately the House has passed an economic stimulus bill that is biased towards the rich. The book of Isaiah praises God, who is a “refuge to the poor, a strength to the needy in his distress, a shelter from the rainstorm or a shade from the heat.” (Isaiah 25:4)

We need an economic package that is a refuge for the poor. Why should a corporation like GE, which earned $12.7 billion in 2000 be given a tax cut while recently unemployed workers who earned less than $18,000 last year receive no additional cuts or assistance? Not only does the economic stimulus bill passed by the House repeal the alternative minimum tax cut (this prevents companies from escaping taxation because of legal loopholes), but it is retroactive for 15 years. What’s the logic here? How does this ensure help for workers? This is not a refuge for the poor. It is a shelter for the rich.

Under the House passed legislation, IBM could receive $1.4 billion in tax rebates, GM could receive $833 million, and GE could receive $671 million. These figures have been provides by the Campaign for America’s Future, a group founded by more than 100 prominent American activists and policy experts. Even more startling, the bill apparently allows corporations to take money out of the economy by hiding profits in overseas tax shelters.

The Senate can still act to undo the mischief which the House has passed. We urge Senators to vote for an economic stimulus package that includes four components.

First, increase the minimum wage. Low wage workers deserve a raise and this would pump money back into the economy.

Second, give tax rebates to the poorest Americans. This is the one piece in the House passed bill we strongly support.

Third, expand unemployment benefits. Less than 40 percent of unemployed workers actually receive unemployment insurance. Many low-wage workers are denied unemployment insurance coverage because of the way base periods are figured and the limitations on hours they can work. A federal benefit supplement could be provided, procedure for determining eligibility reformed, and the federal income taxation of unemployment insurance could be repealed.

Fourth, increase health care assistance. Health care continues to be one of the most expensive costs for unemployed workers, as well as many employed workers. The economic stimulus package should help recently laid off workers obtain health insurance, either by providing federal help for COBRA premiums or expanding federal support for Medicaid. The House passed package, which allows states to shift health care resources from low-income family and their children to unemployed workers, does not provide new help. It merely pits one group of needy folks against another.

All four recommendations would immediately translate into increased consumer spending and confidence and directly focus on vulnerable low-wage and unemployed workers. All four recommendations would help distribute economic benefits more justly and help us move toward an economy in which all benefit fairly. We urge the Senate to ensure that all of America’s citizens are blessed with refuge, shelter and shade.

Rabbi Robert Marx (Congregation Hakafa)
Board President of the Interfaith Worker Justice

Reverend Nelson Johnson (Faith Community Church),
Vice President, Interfaith Worker Justice