$165 billion union bailout

"Somewhere lurking in the hot, putrid halls of Congress this summer is a union bailout bill of epic proportions and long-term ramifications.   Whether or not Democrats can ultimately push it (or something like it) into passage is yet to be determined. However, with rumors that Sen. Dick Durbin (D-IL) signed on as a co-sponsor on Thursday, it would appear that the union bailout is quietly creeping along.  If it passes, though, its ramifications surpass the mere $165 billion-plus price tag, as it will influence the political landscape for decades to come.  In sum, Democrats need the bailout desperately and Republicans should shun it like the plague.

Likely to surpass the touted $165 billion it is estimated to cost, Create Jobs and Save Benefits Act (S. 3157) was introduced on March 23rd by Sen. Bob Casey (D-PA) and is designed to bailout unions’ underfunded pension funds by transferring the liability of those funds onto the backs of the taxpayers.

Under these bills, the Pension Benefit Guaranty Corporation (PBGC) would, at the request of the plans, have the authority to take over the pension obligations of employers who have withdrawn from the plans, and pay the benefits out of taxpayer dollars, says Furchtgott-Roth:

• Once the PBGC shoulders that obligation, it would keep making payments until the last retiree or designated survivor dies.
• Since many multiemployer plans are in financial difficulty, this legislation, if enacted, could dramatically increase the federal deficit, putting even more pressure on the American taxpayer and the economy.
• Depending on events, it might add billions to government spending — current underfunding levels are estimated at $165 billion-bumping up future deficit."

Read more about this possible bailout from BigGovernment.com