Catherine Rampell: Congress' whopper of a mess - Opinion - MailTribune.com - Medford, OR

Mail Tribune (Medford, OR — Wayback)

2014-12-20

Document text

0 of 3 Premium Clicks used this month SUBSCRIBE Print + Online Subscriber Activation  |  Register x Forgot Password | Need an Account? e-edition | subscribe | newsletter | deals Home News Latest Stories Emergency services Jackson County's new health building complete, will serve clients in February Since You Asked: Just follow the signs for winter driving rules Get Up & Go: Dec. 19 App Finder: Top Apple apps of the year Crime, Courts and Emergency Services Emergency services Stolen iPad foils alleged Central Point burglar Idaho fugitive shot by police in March sentenced to 67 months Emergency services Man suspected of money laundering in Ashland mail-order drug scheme Politics and Elections State certifies recount showing failure of GMO-labeling measure Time running out for O&C funds GMO vote recount still shows little change GMO labeling votes recounted under careful watch in Jackson County Kent Bush: First Amendment doesn’t mean what you think it means Education Ruch school class focuses on the natural environment Bethel Church helps families at McLoughlin Middle School Logos may offer students 'fifth year' at RCC or SOU St. Mary's plays host to youth robotics tournament A lesson in giving Environment Jackson County holds back on enforcing GMO ban for now No fish, no funding for problem dams Most residents speak against gas pipeline Coalition asks for defense of GMO ban Home Help: Make your new house feel like home State News Uber suspends operations in Portland for 3 months Group challenges timber producer's 'green' label Law officers back home-visit funding Sides 'far apart' in port labor talks Court upholds Clatsop LNG pipeline decision Nation - World Obama makes Maduro’s ‘insolent Yankees’ line harder to sell Grand jury won't indict Ferguson cop in shooting Obituaries Joan E. Shults Margaret "Yvonne" Michele Yarbrough Death Notices Bernard Eugene Krueger Weather Photo Galleries Since You Asked Videos Web Cams Mail Tribune 100 Shareable ACCESS receives $50,000 donation from Wells Fargo Sports Latest Stories Blayton powers Panthers swimmers Comets roll over Pirates in Classic English boosts South Medford in tourney win Gutches' pin highlights Raiders' victories Curry scores 34 as Warriors rally, 114-109 Varsity 541 College Sports Gutches' pin highlights Raiders' victories Beavers continue to surprise, rout DePaul Jones scores 21 to lead No. 2 Duke over UConn Ducks' Ekpre-Olomu won’t play against FSU Dodge becomes SOU's first NAIA player of year Pro Sports Curry scores 34 as Warriors rally, 114-109 Jaguars hold off Titans, win home finale Harbaugh mum on Michigan's interest Show goes on 49ers release McDonald amid further legal trouble Community Sports Keeping Fit: Runners need to do more than run to stay in shape RESULTS/STANDINGS LOCAL EVENTS Business Latest Stories Falling gas prices help spur travel at Medford airport Employment in Oregon surpasses pre-recession levels Free lunchtime presentation covers business planning Ride & Drive: 2015 Nissan Juke Nismo Honda’s CR-V goes uptown again Real Estate News Rental owners group reports 2.48 percent vacancy rate More sales, but no change in residential housing median price People In Business People in Business, Dec. 3 Transportation Falling gas prices help spur travel at Medford airport Allegiant Air will resume Medford-Phoenix service May 22 Agriculture K-BAR ignites agriculture boom beneath Table Rocks Southern Oregon wine industry had a robust 2013 Opinion Latest Our View: Cheers and jeers Letters to the Editor, Dec. 19 Michael Gerson: Vaccine Alliance a global conspiracy of health Our View: Vaccines benefit everyone, save lives Letters to the Editor, Dec. 18 Editorials Our View: Cheers and jeers Our View: Vaccines benefit everyone, save lives Our View: Celebrate by helping those in need Our View: Ashland Hospital's remarkable turnaround Our View: Councilors' criticism less troubling than secrecy Letters to the Editor Letters to the Editor, Dec. 19 Letters to the Editor, Dec. 18 Letters to the Editor, Dec. 17 Letters to the Editor, Dec. 16 Letters to the Editor, Dec. 15 Guest Opinions Guest Opinion: Loved one chose death with dignity in Oregon Guest Opinion: Forest thinning means water for the future Guest Opinion: Suit threatens family farms and democratic vote Guest Opinion: SOU pool decision short-sighted Guest Opinion: It's time for biologists to let OR-7 go dark Lifestyle Latest stories Looking Up: The stars from the North Pole Fishing report: Thursday, Dec. 18 Duck stamps help establish Web foothold Wolf track brings a rush on a snowy trail Get Out: Friday, Dec. 19 Food Community blog: Liver pat� an easy nosh for Hanukkah and beyond Local bubbly can ring in the New Year Food for Thought: How to keep your kitchen organized during the holidays Kitchen Call: Shopping for the cook Community blog: Gobble gougeres as appetizers or with light meals Home and Garden How NOT to install drywall Dear Monty: Siblings dispute inherited real estate Home Help: Create a happy homemade holiday Rogue Valley Christmas light displays Remodeling your attic: Know the details before you start Health Health Watch: Change up your treadmill workout Community blog: A Dark Night of Healing and Hope Community blog: The Promise of Hope � and Health - Fulfilled Community blog: Saving Lives Health Watch: Curb your kitchen cravings this holiday season Hiking Biking Faith Churches, synagogs host seasonal events Bethel Church helps families at McLoughlin Middle School Religion news: Pope aims to expedite sex abuse rulings Milestones and Achievements Jackson County's new health building complete, will serve clients in February Ashland celebrates 'Wild' screening with Cheryl Strayed Asante merger stabilizes Ashland hospital's finances Time running out for O&C funds Hire 'em and pray for snow Columnist for a Day Rogue Healthy Aging Tempo Latest stories Tomaseen Foley's "A Celtic Christmas" returns to the Craterian Theater Stefan Baumann and Eugene Bennett highlight Third Fridays Dancing People Company celebrates the solstice Seattle rock band Smokey Brights plays Howiee's ACT presents reading of 'The Quality of Life' Theater ACT presents reading of 'The Quality of Life' Meet the real Jacob Marley This Nutcracker ballet will have a superhero twist Plumbing the depths of meaning TMTO presents 'A Christmas Carol: The Musical' Music Tomaseen Foley's "A Celtic Christmas" returns to the Craterian Theater Seattle rock band Smokey Brights plays Howiee's Eight Dollar Mountain and Fruition play Applegate Lodge John Nilsen's holiday concerts kick off this week Ashland Blues Society hosts open jam Community Events Tomaseen Foley's "A Celtic Christmas" returns to the Craterian Theater Stefan Baumann and Eugene Bennett highlight Third Fridays Dancing People Company celebrates the solstice Dance to the Southern Oregon Jazz Orchestra Rogue Valley Christmas light displays Dining Coffee shops roll out holiday-inspired drinks Over Easy serves 'pop-up' brunch Sundays Ooblies Artisan Waffle Sandwiches Brunch at Loft Brasserie The Bohemian Club Tempo Videos Classifieds Jobs Autos Real Estate FEATURED   » Obituaries Blogs TV Listings Movie Listings Oregon Outdoors Oregon Healthy Living Magazines & Special Sections NEWS NOW   Our View: Cheers and jeers       ...       Jackson County's new health building complete, will serve clients in February       ...       Duck stamps help establish Web foothold       ...       Our View: Cheers and jeers       ...       Jackson County's new health building complete, will serve clients in February       ...       Duck stamps help establish Web foothold       ...           ANOTHER VIEW Catherine Rampell: Congress' whopper of a mess Comment MailTribune.com Writer Posted Sep. 8, 2014 @ 12:01 am Posted Sep. 8, 2014 @ 12:01 am »  Social News Customers can be so demanding. First they criticized fast-food joints over nutritional content. Now they're getting picky about tax and labor practices. In recent weeks, consumers and commentators have savaged Burger King over its plan to merge with Tim Hortons, a move that appears at least partly motivated by tax avoidance. And on Thursday, Burger King, McDonald's and other quick-service restaurants were the targets of strikes and civil disobedience in 150 cities across the United States as part of a national worker campaign for a $15 hourly wage and the right to bargain collectively. Meanwhile, McDonald's is facing several high-profile lawsuits over whether it should be responsible for the wage theft and other labor law violations allegedly committed by some of its franchisees. The bad press has taken a toll on firms' reputations, with TV pundits arguing for boycotts and consumers unleashing their rage on the chains' Facebook pages. YouGov, a company that tracks views of brands, has found that consumers have reported hearing substantially more negative "buzz" (through advertising, news coverage or word of mouth) about McDonald's and Burger King in recent weeks. Survey respondents have also become increasingly likely to say they would be "embarrassed" to work for the companies. It's unclear whether all this bad PR will translate to lower profits for the firms. True, in July, McDonald's had its worst decline in global same-store sales in over a decade. Yet YouGov's polling still found that about two in five adults reported patronizing a Mickey-D's in the previous month, while one in five went to a Burger King — pretty close to the average rates over the previous 18 months. Maybe consumers will put their money where their mouth is, and maybe they won't. Either way, I'd prefer to see consumers carry more of their ire to the voting booth. When it comes to many of the tax and labor policies driving this bad PR, the firms themselves aren't entirely at fault. I blame Washington, too. On tax policy, Burger King would hardly be the first major corporation to opt for a tax inversion; there have been 35 such cases since 2009, according to S&P Capital IQ's Global Markets Intelligence research team. Why are all these firms engaging in complicated tax dodges like inversions? Because they are responding to the incentives our policymakers have embedded in the tax code and corporate governance law. A byzantine, loophole-riddled, high-statutory-rate tax code encourages companies to construct byzantine, Rube Goldberg-like tax strategies to minimize their tax burdens. Our legislators have created a system in which it's easier to boost profits through tax strategy innovation than actual product innovation, and firms respond accordingly. Regarding labor practices, wage theft is a serious crime that should be punishable by jail time. If McDonald's did indeed commit or encourage labor law violations, as some of its workers allege, it should be held accountable. But I understand why companies such as McDonald's set wages for low-skilled workers at or near the legal minimum, given the race-to-the-bottom nature of the industry. It's hard for companies to unilaterally take on higher labor costs when they face such stiff competition for low-price-point burgers, and when they have a fiduciary duty to their shareholders to maximize profits. As with voluntarily paying a higher-than-required tax bill, firms like McDonald's and Burger King might worry that raising wages to appease social critics could put them at risk of shareholder lawsuits. All of which is to say that the main target of consumer and worker agitation should not be the companies, but Congress. It has the power to simplify the tax code so that firms won't invest so many resources in tax avoidance. Congress also has the power to raise the minimum wage from its pitiful level of $7.25 per hour, which would even the playing field for all companies that employ low-wage workers. The CEO of McDonald's, in a talk last May, even acknowledged that the company would "be fine" if Congress raised the federal minimum wage for all firms, and that McDonald's "will support legislation that moves forward." By all means, consumers, vote with your wallets and support businesses that treat their workers well and that you perceive to be economic "patriots." But don't expect these companies to change their practices until Congress makes doing so worth their while. The Washington Post's Catherine Rampell's columns are appearing while Kathleen Parker is on medical leave.   Catherine Rampell's email address is [email protected]. Follow her on Twitter, @crampell. MailTribune.com Writer Posted Sep. 8, 2014 @ 12:01 am » Comment or view comments   Reader Reaction »  STAY INFORMED   Email NewsLetter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. calendar Connect with MailTribune.com Facebook Twitter RSS Back to top Reader Services Reader Services Home Subscriptions Subscriber controls Contact us Submissions Photos Events Letters to the editor Corrections Announcements Obituaries Story ideas Since you asked Alerts Email Alerts RSS Feeds Text Alerts Advertise Media Kit Home Products and services Ad rates Advertising contacts Mail Tribune Daily Tidings The Nickel Shop Our Valley Blogs Stay Informed   Email newsletter   Sign Up Today   Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Your privacy is important, read our privacy policy. © Copyright 2014 Local Media Group, Inc. All Rights Reserved.    Privacy Policy  |  Terms of Service  |  Local Media Group Publications Original content available for non-commercial use under a Creative Commons license, except where noted. MailTribune.com | P.O. Box 1108, Medford, OR 97501