Here's what happened this week:
Trump has withdrawn the US from the Paris Climate Agreement, which is expected to have a detrimental impact on the jobs and economy, despite his claims. The US joins Syria and Nicaragua as the only countries that are not members of the agreement. The agreement, and its associated move towards clean-energy was expected to add jobs to the US economy relative to the potential losses, and make the US more competitive in the growing renewable energies industry. The solar and wind industries currently employ three times the number employed by the coal industry.
The Choice Act, a proposed replacement for Dodd-Frank (a regulatory bill which increased financial protections for consumers after the 2008 financial crisis), is expected to move to the House floor for a vote on June 7th. The act weakens the Consumer Financial Protection Bureau and raises a series of concerns:
- Offers protection for payday lenders: 19 million Americans resort to payday loans, which have high interest rates, and are often used to pay other loans. However, the bill makes it such that federal authorities, quote, "may not exercise any rulemaking, enforcement or other authority with respect to payday loans, vehicle title loans or other similar loans." The author of the Choice Act (Rep.Hensarling -TX), was the top recipient of political contributions from the payday lobby ($210K) in 2014.
- The act would be a boon to those facing enforcement action by the SEC as it "steers the SEC away from imposing penalties on corporations and toward bringing actions against individual offenders"
- Removes cap on debit card fees (the Durbin Amendment). Several Republicans and Democrats have stated their opposition to this provision.
- Eliminates a public database of consumer complaints about financial firms
- Overrides the Second Circuit's opinion in Madden v. Midland Funding, in which the court held that a non-bank transferee of a loan from a national bank loses the ability to charge the same interest rate that the national bank charged on the loan under Section 85 of the National Bank Act
- Minorities and women: The act would roll back the requirement that financial institutions collect data on credit applications made by women- or minority-owned businesses and small businesses.
- https://www.indivisibleguide.com/resource/financial-choice-act-hr-10/
The Trump administration is proposing a reduction in corporate taxes to 10 percent, arguing that it will bring money back into the US for investment. Currently, corporations pay a 35 percent tax on foreign profits, which can be deferred by holding the money overseas. However, a similar move was made under George W. Bush and the repatriated money was used to pay shareholders and buy back shares of companies. It was not associated with increases in capital expenditures, employment, or research and development.
25 states are considering prohibiting employers from asking for a prospective employee's salary history, with the goal of reducing the wage gap for women and minorities.
The administration's budget is based on a 3% growth rate, which is widely viewed as unrealistic by those on both ends of the political spectrum. The administration's policies on immigration, education/training, and research investments stand in the way of such a goal.
Behind the administration's support for bilateral trade deals over multilateral agreements.
What you Can Do
- Let your congressman to state (A) your support for the Consumer Financial Protection Bureau, and (B) your concerns with the Financial CHOICE act: For example, "I am concerned with the Financial CHOICE act and reduction in protections for consumers. Regulations for payday lenders should remain intact and ."
- Let your congressman know you are disappointed with the withdrawal from the Paris Climate Agreement