Trump nixes federal pay raise

President Trump on Thursday announced that he would cancel a scheduled 2.1 percent across-the-board pay increase for federal workers, as well as locality pay increases.

“In light of our Nation’s fiscal situation, Federal employee pay must be performance-based, and aligned strategically toward recruiting, retaining, and rewarding high-performing Federal employees and those with critical skill sets,” Trump wrote in a letter to the Speaker of the House and the president of the Senate.

The proposal sets up a fight with Congress, which could effectively overturn the action in upcoming spending legislation. Without such intervention, the move would affect most of the 2.1 million federal employees around the nation, about 1.7 million of which live in areas outside of the Washington, D.C., metro area.

Members of the military, on the other hand, are on schedule to receive a 2.6 percent pay increase.

Last year, the Trump administration approved a 1.4 percent increase in federal pay and a 2.4 percent increase in military pay.

In the letter, Trump said he had the authority to propose an alternative pay schedule based on Title V of the U.S. Code, which allows the president to alter scheduled pay changes he deems inappropriate in light of “national emergency or serious economic conditions affecting the general welfare.”

Trump’s 2019 budget proposal sought to freeze federal pay, but the Senate Appropriations Committee included a 1.9 percent pay bump in its spending plans for 2019. The House version of the bill did not include such an increase, and sought reductions to spending on federal pension plans.

The two chambers are scheduled to meet in the coming weeks to work out the differences between their bills, negotiations which could effectively override Trump’s move to cut pay. Trump has not indicated if he would veto such a measure if it included a pay increase.

Democrats, and some Republicans, blasted the move.

“For someone who claims to be a leadership maven, President Trump certainly gives the impression through his actions that he has no idea how to run an effective organization,” said Rep. Steny Hoyer (D-Md.), the No. 2 Democrat in the House.

[The Hill]

Reality

Trump’s Space Force: Billions.

Pentagon budget increase: $94 billion.

Trump farm bailout: $6 billion.

Trump golf outings: $77 million.

Mnuchin flights: $1 million+

Price flights: $1 million+

Pruitt flights & phone booth: $211k

Zinke door: $139k

Carson dining set: $31k

Trump to cut pay raises for government workers

President Trump sent a letter to Speaker Paul Ryan (R-Wis.) on Thursday announcing his intention to cut pay raises for civilian government workers.

In the letter, Trump cited his authority in times of “national emergency or serious economic conditions affecting the general welfare” to make adjustments to the 2018 pay schedule for federal employees.

Under the previous plan, workers were scheduled for a 1.9 percent bump. Trump will use his authority to lower that to 1.4 percent.

“We must maintain efforts to put our Nation on a sustainable fiscal course,” Trump wrote.

“A pay increase of this magnitude is not warranted, and Federal agency budgets could not accommodate such an increase while still maintaining support for key Federal priorities such as those that advance the safety and security of the American people.”

Pay raises for government workers outside of Washington, D.C., will average only 0.5 percent and will be specified in a coming executive order, Trump said.

The White House did not respond to a question about how much the government would save from the action or whether it had discussed the matter with offices on Capitol Hill.

Trump will maintain the 2.1 percent pay increase for members of the military.

“I strongly support our men and women in uniform, who are the greatest fighting force in the world and the guardians of American freedom,” Trump wrote. “As our country continues to recover from serious economic conditions affecting the general welfare, we must work to rebuild our military’s readiness and capabilities.”

[The Hill]

Trump Flip-Flops on Raising the Minimum Wage

In a reversal, Donald Trump expressed openness to raising the federal minimum wage during an interview on Wednesday.

“I’m looking at that, I’m very different from most Republicans,” the presumptive GOP presidential nominee told CNN Wednesday about the prospect of increasing wages.

You have to have something you can live on. But what I ‘m really looking to do is get people great jobs so they make much more money than that, much more money than the $15.

The federal minimum wage is $7.25, but labor groups have been pushing for it to be raised to $15.

During a November debate, Trump voiced opposition to raising the minimum wage.

“I hate to say it, but we have to leave it the way it is,” he said during the debate.

During a November appearance on MSNBC’s “Morning Joe,” Trump said the current minimum wage is too high and was slowing job growth.

“We have to become competitive with the world. Our taxes are too high, our wages are too high, everything is too high,” he said. “What’s going to happen is now people are going to start firing people.”

On Wednesday, Trump did caution that lawmakers would have to be careful not to raise the minimum too much.

“If you start playing around too much with that lower level number, you are not going to be competitive,” he said, before reiterating that he’s “open to doing something” with the federal minimum wage.

Democratic front-runner Hillary Clinton backs a $12 minimum wage and has supported local attempts to push for $15 per hour; her rival, Bernie Sanders, supports a $15 federal minimum wage.

Republicans at large are against raising that number. Rick Santorum is the only GOP presidential candidate who backed raising the minimum wage. Ben Carson briefly signaled openness before walking that back.

(h/t The Hill)

Reality

Just a few months ago Trump said he would lower the minimum wage during a Republican debate:

Taxes too high, wages too high.

And again on Fox News he doubled-down:

Whether it’s taxes or wages, if they’re too high we’re not going to be able to compete with other countries.

And then he told auto workers right to their faces that they make too much money.

Media

Trump Doubles Down on Wages Too High

Donald Trump insisted on Thursday that the U.S. must keep wages low in order to compete with other countries, one day after he dug in on his assertion that “wages are too high” in America. Speaking to Fox News Trump said:

“Whether it’s taxes or wages, if they’re too high we’re not going to be able to compete with other countries.”

Trump first said he believes wages are “too high” during Tuesday night’s Republican debate, undercutting the populist tone Trump has struck on the campaign trail as he’s called for protecting U.S. manufacturing jobs from outsourcing and immigration.

Trump’s comments about wages being “too high” came in response to a debate question about raising the minimum wage, which Trump and other GOP candidates said they oppose.

(h/t CNN)

Reality

Is anyone really surprised that a billionaire businessman wants to keep wages low?

According to the Pew Research Center, real wages are not at all high and instead have been stagnant for decades. This means we’ve seen bigger paychecks, but that paycheck goes far less than before when buying stuff.

Media

Fox and Friends

 

Trump Declares Wages Are ‘Too High’

GOP presidential front-runner Donald Trump opened the 4th primetime GOP debate by suggesting that Americans’ wages are “too high” and that it’s part of a problem with the country’s competitiveness.

“Taxes too high, wages too high,” he said, responding to a question about New York state’s decision to raise the minimum wage for certain workers to $15. “We’re not going to be able to compete against the world.”

Trump rejected calls to raise the minimum wage. His rival for pole position in the Republican primary, Ben Carson, agreed.

“I would not raise it specifically because I’m interested in making sure that people are able to enter the job market and take advantage of opportunities,” he said.

Trump later doubled-down on his wage too high stance and also explained it right to the faces of auto workers.

(h/t Politico)

Reality

Is anyone really surprised that a billionaire businessman wants to keep wages low?

According to the Pew Research Center, real wages are not at all high and instead have been stagnant for decades. This means we’ve seen bigger paychecks, but that paycheck goes far less than before when buying stuff.

Media

Trump Believes Auto Workers Make Too Much Money

Donald Trump has something to say to Detroit autoworkers: you make too much money. Talking about U.S. vehicle manufacturers moving production to Mexico in an interview with The Detroit News, Trump said this:

He said U.S. automakers could shift production away from Michigan to communities where autoworkers would make less. “You can go to different parts of the United States and then ultimately you’d do full-circle — you’ll come back to Michigan because those guys are going to want their jobs back even if it is less,” Trump said. “We can do the rotation in the United States — it doesn’t have to be in Mexico.”He said that after Michigan “loses a couple of plants — all of sudden you’ll make good deals in your own area.”

Reality

Trump is, of course, dead wrong about this. The article goes on to say, “Although wages are lower at non-union U.S. plants owned by foreign automakers, hourly employees for Detroit’s Big Three are paid the same no matter what state they’re in, under the terms of United Auto Workers contracts.”

Links

http://www.dailykos.com/story/2015/8/14/1412018/-Donald-Trump-to-Detroit-autoworkers-you-make-too-much-money

http://www.detroitnews.com/story/business/autos/2015/08/12/trump-autos/31589899/