Et tu, Thad McCotter?

"The most alive is the
wildest. Not yet subdued to man, its presence refreshes him."
Thoreau's words resonate with irony in the aftermath of the Deepwater
Horizon oil spill. Above, a "dragonfly tries to clean itself as it is stuck to marsh
grass covered in oil" on the gulf coast of Louisiana. (AP Photo/Gerald Herbert)

By Sissy Willis

"ET TU, Thad McCotter?"
we twittered our favorite Congressman (R-MI 11th) this morning, seeking
to understand the thinking behind his embrace of HR 3936, a bill sponsored by Earl Pomeroy (D-ND) and Patrick
Tiberi (R-Ohio) that is getting a lot of bad press:

Americans for Limited Government (ALG) has sent a letter to 9 House Republicans urging that
they withdraw their support from legislation providing a taxpayer
bailout of labor-union-run pension funds …

“We are asking that each
Representative remove his or her cosponsorship of this blatant handout
to unions, which are now asking
the American people to bail them out of their own mismanagement of
pensions,” Wilson said, adding that “Compensating poor investment
strategies, like those pursued by the multi-employer pension plans, only
incentives further underfunding of these plans” …

Citing the hundreds of millions of dollars spent by labor bosses
to support Obama, the Democratic majority, and the 9 House Republicans
(see
attachments below), Wilson decried unions’ “audacity to try to cash in
on their political investment by foisting these unfunded liabilities
accumulated under their watch onto the backs of taxpayers, who are
struggling to fund their own retirements.”

Rep McCotter sent
along this video of himself holding forth in the House of
Representatives in defense of HR 3936:

What it does is good government. It allows
employers the space they need to make sure they meet the pension
obligations that they have for their workers. It is not a government
bailout. Taxpayer funds are not involved, unless, of course, these
institutions, these unions and their pension plans fail.

It is a wonderful
idea by my colleague Pat Tiberi (Another of the 9 Repubs to whom the ALG
letter was sent), it is endorsed by many, many business groups, and I
would hope that over the course of the coming hours the truth will out.
Again, you can't always believe what you see on TV.

It was the "unless, of course" part that gave us
pause. The House bill is apparently similar to one introduced last week
by Senator Casey, described by the National Right to Work Committee as a
"taxpayer-funded
union pension bailout":

Legislation
introduced last week could shift costs
of union pension plans to taxpayers in an attempt to stave off organized
labor’s pension funding crisis. Senator Bob Casey,
Pennsylvania Democrat, introduced the so-called Create
Jobs & Save Benefits Act of 2010 to
address the funding problems faced by union-administered multi-employer
pension plans by shifting the burden to the taxpayers. Casey said his
bill would cost the taxpayers $8 to $10 billion.

According to a FoxBusiness report and bloggers who are following the
story, the tab could run much higher:

If passed, the bill could put another
$165 billion in liabilities on the shoulders of American taxpayers …

As FOX
Business Network’s Gerri Willis reported Monday, these pensions are in
bad shape; as of 2006, well before the market dropped
and recession began, only 6% of these funds were doing well.

Although right now taxpayers could possibly be
on the hook for $165 billion, the liability could essentially be
unlimited because these
pensions have to be paid out until the workers die. It’s hard to say at the moment what the chances
are that the bill
will pass. A hearing is scheduled Thursday, which will give the public a
sense of where political leaders sit on the topic, said Willis.

Professor Reynolds was not amused:

WHILE AMERICANS' 401(K) PLANS SHRINK, Congress wants to bail
out
unions’ overgenerous and underfunded pension plans.

Our
man Dan Riehl had the scoop on deep background way back in early
March. His "Big Labor, Obama And Dems Have Big Plan$ For You"
is a must-read to get up to speed. It includes interviews with Brett
McMahon of the Associated Building Contractors and Katie Packer of the
Workforce Fairness Institute. A lot to digest. If you're reading this,
Dan, please feel free to join the conversation.

Related: USA
Today's "Private pay shrinks to historic lows as gov't payouts
rise" and John Fund's "Tea Parties vs. Unions in November."

Crossposted at sisu
and Liberty Pundits.