Repealing the Davis–Bacon Act Would Save Taxpayers $10.9 Billion

Heritage Foundation ^ | February 14, 2011 | James Sherk

[george76]

The Davis–Bacon Act (DBA) requires the government to pay construction wages that average 22 percent above market rates. This shields unions from competition on federal construction projects. It will also add $10.9 billion to the deficit in 2011.

Given that the federal government is already running historic and unsustainable deficits, federal policy should not unnecessarily inflate the cost of federal construction projects. Congress should repeal the DBA.

Unsustainable Spending .

DBA Restrictions Increase Costs .

Repeal the Davis–Bacon Act .

America can no longer afford such special-interest handouts. If Congress is serious about reducing spending or lowering unemployment, it should repeal the DBA. Congress should also reduce the amount it contributes to state construction projects by the amount the DBA inflates costs. This would ensure that the federal government realizes the full $10.9 billion in savings in 2011. Congress should stop requiring the federal government to hire four construction workers for the price of five.

[92nina]

James Sherk makes a good case.

[BrewingFrog]

Speaker Boehner, attention...

[youngidiot]

The Davis Bacon Act not only hurts taxpayers, it hurts everyone else too. I've priced building jobs on government property and had the misfortune of getting a couple. One the workers figure out that they're getting an inflated wage to work on a certain job, their production mysteriously goes down to a crawl. So not only are you the taxpayers getting ripped, so are the contractors.

[Noob1999]

Only $10 billion???

Oh, they must mean per day.

Just about every metropolitan construction project in the country is based on “prevailing wages”, union speak for their higher wage level.

[ConservativeDude]

would also get these “shovel ready” projects moving.....

[dljordan]

“Speaker Boehner, attention...”

He’ll be in tears.

[esoxmagnum]

We pay our guys about 20% more than the journeyman scale for their union counterparts.

Even so, we do not qualify for “prevailing wage” here in Illinois. To qualify, you must open your books to the state for state contracts. We used to qualify, but a few years ago, they decided that since we offered a 401 and not a pension plan, we were no longer paying prevailing wage.

You jump over the bars they set, and the union just goes and raises the bar. Never mind our guys make more per year than their union counterparts by far, according to the state (and some of our guys who have just voted to go union), they are being treated like Chinese slave labor.

Here in Illinois it is a rigged game. It has nothing to do with “prevailing wage” it has all to do with paying union dues to the D party.

[vpintheak]

I know several people who are working or have worked davis-bacon wages. They always chuckle and laugh and rib each other when talkign about it, becaus ethey know they are being paid more than 2 times what they normally get but hey, that’s just the way it is right?