Right To Work Constitutional Amendment Passes House, Senate

 

HJ 490, which seeks to make Virginia's Right To Work law a part of Virginia's Constitution, cleared the Senate on February 20th. The House of Delegates passed the resolution on February 9th. 

 

A right to work law secures the right of employees to decide for themselves whether or not to join or financially support a union. In addition, such laws prohibit an individual from being denied employment for refusing to join a labor union. The right to work law is important to the Commonwealth's economic competitiveness. According to a study from the Competitive Enterprise Institute, economic growth rates increase by 11.5 percent due to right to work laws. In addition, states with right to work protections have seen employment growth over the last 10 years, while employment in states without those protections has fallen.

 

The resolution will have to pass the 2016 General Assembly and then must be approved by voters as a referendum on the ballot in order to gain final approval as a constitutional amendment.

Bill Prohibiting Local Government from Establishing Wage Floor Headed to Governor's Desk

 

This session, Delegate Glenn Davis introduced HB 1608, which would prohibit local governments from requiring a wage floor or any other employee benefit or compensation above what is otherwise required by state or federal law. The bill passed the House on January 28th and the Senate on February 19th. It now heads to the Governor for approval.

 

The Virginia Chamber supported HB 1608 throughout the 2015 session. The Virginia General Assembly has and should maintain the authority to set a statewide minimum wage. A consistent, statewide minimum wage is also better for Virginia's business climate. Giving localities the authority to establish a wage floor would disproportionately impact small businesses who have less flexibility to be able to absorb the additional labor costs. 

A Cut in the Corporate Tax Rate Would Provide a Significant Boost to the Economy 

  

Opponents of tax reform will say that cutting the corporate tax rate will hurt federal revenues, but, according to the Tax Foundation, if the U.S. were to reduce the corporate tax rate, it would have minor effects on federal revenue over the long run. It would, however, have a major, positive impact on GDP.

 

High corporate taxes discourage investment, in addition to sending businesses abroad (or encouraging new businesses to incorporate abroad) to operate in countries with better tax systems. By cutting the corporate tax rate, the Tax Foundation says the U.S. would see a stronger economy, not to mention more jobs -- and higher wages -- for Americans.

 

Currently, the federal corporate tax rate is 35 percent. According to the Tax Foundation:

• Getting rid of the corporate income tax would result in a 6.1 percent increase in the American economy.
• On the other hand, increasing the corporate tax rate to 40 percent would result in a 1.1 percent drop in GDP and lower federal revenue by 0.3 percent.
• Even worse, increasing the corporate income tax rate to 50 percent would mean a 3.5 percent reduction in GDP and a 1.2 percent reduction in revenue.

In fact, the National Center for Policy Analysis has also modeled the impact of eliminating the corporate income tax, concluding that eliminating the corporate income tax would result in an 8 percent to 10 percent increase in GDP, in addition to a 12 to 13 percent rise in wages for all workers.

 

To read more, click here.

U.S. Achieves Top Ranking in International IP Index

 

In early February 2015, the U.S. Chamber of Commerce's Global Intellectual Property Center released the annual International Intellectual Property (IP) Index. The United States was ranked first in the index, and the following areas of strength were cited: pharmaceutical-related patent enforcement and resolution mechanisms, patentability and strict definition of computer-implemented inventions, digital rights management legislation, protection of trade secrets, deterrent civil remedies and criminal penalties, and commitment to and implementation of international treaties. The areas of weakness for the U.S. were: increasingly narrow interpretation of biotech inventions, inconsistent enforcement against counterfeit and pirated goods sold online, and concerns over border officials' ability to share information with rights holders. In sum, the Index shows how a continued focus on protected IP rights in the U.S. is essential in driving investments in our nation's innovative research and output.

 

For more on the index, or to download the full report, click here.