US Chamber of Commerce: Outsourcing

Why Are They Attacking Tammy?

She fights against the outsourcing agenda of wealthy special interests

US Chamber Supports Outsourcing American Jobs

U.S. Chamber President: “There Are Legitimate Values in Outsourcing.” In 2004, U.S. Chamber of Commerce President Tom Donohue said, “there are legitimate values in outsourcing ‐‐ not only jobs, but work ‐‐ to gain technical experience and benefit we don’t have here, to lower the price of products, which means more and more of them are brought into the United States, used, for example, I.T., much broader use than it was 10 years ago, create more and more jobs. But the bottom line is that we outsource very few jobs in relation to the size of our economy. We employ ‐‐ American companies employ 140 million Americans. They provide health care for 160 million Americans. They provide training in terms of 40 billion a year. The outsourcing deal over three or four or five years and the two or three sets of numbers are only going to be, you know, maybe two, maybe three million jobs, maybe four.” [CNN, 2/10/04]

“Stop Whining” Donohue Tells Unemployed. In July 2004, the Associated Press reported “Donohue acknowledged the pain for people who have lost jobs to offshoring ‐ an estimated 250,000 a year, according to government estimates. But pockets of unemployment shouldn’t lead to ‘anecdotal politics and policies,’ he said, and people affected by offshoring should ‘stop whining.’” [Associated Press, 7/5/2004]

Donohue Vows to Fight Any Attempts to Reduce Outsourcing. “The chamber’s message is clear: The US must be able to source around the world to stay competitive in the global economy and the business community will fight any attempts by our government to restrict outsourcing,” Thomas Donohue, the chamber’s president, told a news conference. [Agence France Presse, 4/14/2004]

Tammy Baldwin Opposes Tax Breaks For Shipping Jobs Overseas

Baldwin Voted To Eliminate Tax Breaks For Companies That Set Up Offshore Subsidiaries. In 2004, Tammy Baldwin voted for a substitute amendment that in part would eliminate some tax breaks available to businesses that established offshore subsidiaries to pay for flexible spending accounts, which are part of employer benefit packages. The underlying bill, as well as the substitute, sought to end the provision of flexible spending accounts that forced beneficiaries to spend their account balances by the end of each year or else lose the money. The substitute that Rehberg opposed also would block any carryover from being contributed to a health savings account. The vote was on a Stark (D-CA) amendment, which Badlwin voted against, to the unused health benefits bill. [Vote #161, 5/12/2004; Congressional Quarterly Today, 5/12/04]

Baldwin Supported Penalties for Corporations Laying Off More U.S. Workers then They do Overseas. In 2002, Baldwin voted in favor of an amendment to bar companies from receiving Export-Import bank aid if they laid-off more workers in the United States than they do in foreign countries. The bank amounted to corporate welfare that disproportionately aided larger firms. In 2001, the bank provided $9.2 billion in loans, guaranteed and exported credit insurance to support $12.5 billion in U.S. exports. In 2001, 90 percent of Ex-Im transactions involved small businesses, but they received just 18 percent of the total dollars from bank deals. The rest went to support exports from such companies as Boeing, Caterpillar, Enron, Lucent, General Electric, Kimberly Clark, Raytheon and Case. The largest single category was aircraft, which got $2.5 billion to finance sales of 53 planes around the world. The amendment was defeated, 135-283. [Vote #120, 5/1/2002; AP, 5/01/02]

The Chamber Is Funded By A Small Number Of Outside Wealthy Special Interests Trying To Fight Reforms — NOT Wisconsin Job Creators

The U.S. Chamber Is Funded And Its Agenda Driven By A Few Giant Corporations, Not Its General Membership. The U.S. Chamber’s tax filings show that Just 19 corporations contributed one-third of the Chamber’s 2008 income – nearly $50 million. [Los Angeles Times, 3/8/10] According to a former U.S. Chamber lobbyist, these companies have more clout when it comes to determining the U.S. Chamber’s positions and activities.  The Chamber does not disclose the identities of any of the organization’s donors.  [Washington Monthly, 7/7/10]

Small Business Representative: U.S. Chamber of Commerce “Lobbies For Fortune 500 Companies, That’s Where They Get All Their Money- Everybody Knows That.” Debating the American Reinvestment and Recovery Act on CNBC, Lloyd Chapman of the American Small Business League, which says that it was “formed to promote and advocate policies that provide the greatest opportunity for small businesses – the 98% of U.S. companies with less than 100 employees,” said: “The U.S. Chamber of Commerce lobbies for Fortune 500 corporations, that’s where they get all their money from, everybody knows that. And Giovanni [Coratolo, the Vice President of Small Business Policy at the U.S. Chamber of Commerce] doesn’t represent small business any more than McDonalds represents cows.” The representative of the U.S. Chamber of Commerce, Giovanni Coratolo, responded that “well, 96% of  our membership is small business. We represent small business in healthcare, tax policy, regulatory issues, the unions…we’re leading the charge on ‘card check’” legislation, and then he called Lloyd’s organization a “sham” that represents “only a handful” of companies. [CNBC, “Street Signs, 6/12/09; The American Small Business League, About]

Chamber Sets Up Special Accounts To Take In Corporate Money, Turn Around and Spend it on Political and Policy Campaigns.  According to internal Chamber documents the pro business group established several special accounts to take in money from companies or groups of companies with a common goal, sometimes spending the money days after it was given to the Chamber.  [Wall Street Journal, 9/11/01]

Nearly Half Of Chamber Contributions In 2008 Came From Only 45 Donors.  The New York Times reported “These records show that while the chamber boasts of representing more than three million businesses, and having approximately 300,000 members, nearly half of its $140 million in contributions in 2008 came from just 45 donors. Many of those large donations coincided with lobbying or political campaigns that potentially affected the donors.” [New York Times, 10/21/10]

U.S. Chamber Launched $100 Million Campaign For Free Enterprise Largely With The Help Of “New Donors, The Super-Rich, Who Will Fund Ads And Advocacy That Largely Help Republicans.” “Donohue insists the association will exceed its fundraising for last year by more than $10 million. And the timing of the White House attack could further pad the Chamber’s war chest. Here’s why: The Chamber recently launched a campaign to raise $100 million for its Campaign for Free Enterprise. And a chief reason was to hit up rich individuals who are concerned about the direction Obama and the Democratic Congress are taking the economy and markets. Many of these are new donors, the super-rich, who will fund ads and advocacy that largely help Republicans. And this will allow the Chamber to potentially raise even more money, an obsession of Donohue’s that rubs some the wrong way but keeps him atop the association at the age of 72. Donohue insists the Chamber isn’t simply pro-Republican. Indeed, it does support some pro-business Democrats and Democratic issues. But the vast majority of its money goes to lobbying for positions supported by Republicans — and to ads that directly or indirectly help Republicans.” [Politico, 10/26/09]

Prudential Financial Gave Chamber $2 Million As Chamber Opposed Financial Reform.  The New York Times reported “Prudential Financial sent in a $2 million donation last year as the U.S. Chamber of Commerce kicked off a national advertising campaign to weaken the historic rewrite of the nation’s financial regulations.” [New York Times, 10/21/10]