As they say, "you know you have a good deal when nobody is happy with it", and that is exactly what we have this morning with the passing of the fiscal cliff deal's winners and losers.
I'm glad that this nonsense with the fiscal cliff is over (for now) but am disappointed that more wasn't done to address revenues and spending cuts, which have been kicked down the road until the end of February as a result.
By backing off his campaign pledge to extend the Bush Tax cuts for only those making less than $250K a year and raising the limit to $400K for individuals ($450K for joint filers), President Obama made a huge concession that nearly cut in half the projected revenue that he campaigned on and the american people overwhelmingly supported. As for entitlement programs such as Medicare, Medicaid and Social Security, I don't believe that they are adding to or driving the deficit, per say, as much as conservatives say they are. As in the past, these programs can be tweaked without much pain to ensure that they are solvent and are around for a very long time.
It is the recession that was brought on by unsustainable defense spending, driven by a military industrial complex and the chicken hawk members of congress, who wasted hundreds of billions of dollars fighting two, largely unpaid for wars in Iraq and Afghanistan for the past 10 years, that are the real culprit that has lead us to the (perceived) debt crisis of the past few years. Can you imagine where we would be at today if the war in Iraq never happened?
Now everyone will be looking towards March 1st and the big showdown that the President and Congress will have over spending and entitlement cuts and the raising of the debt ceiling.
Showing posts with label Bush Tax Cuts. Show all posts
Showing posts with label Bush Tax Cuts. Show all posts
Wednesday, January 2, 2013
Wednesday, December 19, 2012
RUNYAN, SMITH & LOBIONDO FACED TOMORROW WITH 2 CONTRASTING TAX VOTES & A CLEAR CHOICE: WILL THEY STAND WITH MIDDLE-CLASS OR MILLIONAIRES?
(NEW JERSEY) – With taxes set to automatically increase by $2,200 for average American families on January 1st, patience for more political games and inaction by the Republican-controlled House of Representatives is at an end. SJ Citizens For Change today called on Congressmen Jon Runyan (NJ-3) Chris Smith (NJ-4) and Frank LoBiondo (NJ-2) to do the right thing for New Jersey by prioritizing the middle-class over millionaires.
Tomorrow, votes are expected to take place in the U.S. House on two contrasting tax bills: 1) a responsible bill already passed in the Senate that would immediately extend the Bush Tax Cuts only on incomes under $250,000 for a couple and $200,000 for an individual; and 2) the so-called “Plan B” bill put forward by Republican House leadership which would recklessly perpetuate tax cuts for the wealthiest few – and in fact would give millionaires an average $50,000 tax break - while at the same time raising taxes by an average of $1,000 on 25 million working families with children and students.
The irresponsibility of the Republican alternative doesn’t stop there. Compared to the Senate-passed middle-class tax cuts bill, “Plan B” would generate $400 billion less in high-income revenue to address our long-term budget challenges and for critical investments that create and sustain jobs. Congressmen Runyan, Smith and LoBiondo are strongly urged to vote YES on the Senate-passed middle class tax relief bill and NO on “Plan B” – which is nothing but a Trojan horse for more tax breaks for millionaires, while punishing the middle-class.
“By now, Congressmen Runyan, Smith and LoBiondo should know better and understand what their constituents really want,” said Eric Kipnis, volunteer organizer with The Action and Director of SJ Citizens For Change. “These Republican representatives know their party’s position of holding up middle-class tax relief in order to protect tax breaks for millionaires is wildly unpopular and the public will hold them responsible if Congress allows taxes to go up on every American family.”
“Congressmen Runyan, Smith and LoBiondo shouldn’t ring in the New Year by dropping the ball on middle-class tax relief,” said Joshua Henne, New Jersey spokesman for The Action. “Speaker Boehner’s ‘Plan B’ is not a serious alternative and flies in the face of the tax fairness the public is demanding. It’s no laughing matter for GOP leadership to obnoxiously propose a $50,000 tax break for millionaires while raising taxes on the middle-class.”
Come midnight on December 31st, GOP inaction will have serious consequences for New Jersey’s families and small businesses. Blame will fall squarely at the feet of Congressional Republicans if families across New Jersey have $2,200 less in their pockets and find themselves deciding between buying groceries or filling a prescription.
Congressmen Runyan, Smith and LoBiondo have a golden opportunity to avoid economic hardship for their constituents - and political fallout for themselves - by approving the Senate bill to immediately extend tax relief to 98% of the American people and 97% of small businesses.
Tomorrow, votes are expected to take place in the U.S. House on two contrasting tax bills: 1) a responsible bill already passed in the Senate that would immediately extend the Bush Tax Cuts only on incomes under $250,000 for a couple and $200,000 for an individual; and 2) the so-called “Plan B” bill put forward by Republican House leadership which would recklessly perpetuate tax cuts for the wealthiest few – and in fact would give millionaires an average $50,000 tax break - while at the same time raising taxes by an average of $1,000 on 25 million working families with children and students.
The irresponsibility of the Republican alternative doesn’t stop there. Compared to the Senate-passed middle-class tax cuts bill, “Plan B” would generate $400 billion less in high-income revenue to address our long-term budget challenges and for critical investments that create and sustain jobs. Congressmen Runyan, Smith and LoBiondo are strongly urged to vote YES on the Senate-passed middle class tax relief bill and NO on “Plan B” – which is nothing but a Trojan horse for more tax breaks for millionaires, while punishing the middle-class.
“By now, Congressmen Runyan, Smith and LoBiondo should know better and understand what their constituents really want,” said Eric Kipnis, volunteer organizer with The Action and Director of SJ Citizens For Change. “These Republican representatives know their party’s position of holding up middle-class tax relief in order to protect tax breaks for millionaires is wildly unpopular and the public will hold them responsible if Congress allows taxes to go up on every American family.”
“Congressmen Runyan, Smith and LoBiondo shouldn’t ring in the New Year by dropping the ball on middle-class tax relief,” said Joshua Henne, New Jersey spokesman for The Action. “Speaker Boehner’s ‘Plan B’ is not a serious alternative and flies in the face of the tax fairness the public is demanding. It’s no laughing matter for GOP leadership to obnoxiously propose a $50,000 tax break for millionaires while raising taxes on the middle-class.”
Come midnight on December 31st, GOP inaction will have serious consequences for New Jersey’s families and small businesses. Blame will fall squarely at the feet of Congressional Republicans if families across New Jersey have $2,200 less in their pockets and find themselves deciding between buying groceries or filling a prescription.
Congressmen Runyan, Smith and LoBiondo have a golden opportunity to avoid economic hardship for their constituents - and political fallout for themselves - by approving the Senate bill to immediately extend tax relief to 98% of the American people and 97% of small businesses.
****************
South Jersey Citizens For Change is one of over 150 national, state and local organizations part of The Action – a grassroots movement calling for the end of the Bush-era tax breaks for the richest 2 percent that have for too long shortchanged critical investments that create and sustain jobs. December 1st marked the first major national day of action of the movement, with over 100 events taking place in 30 states pressuring Members of Congress to put middle class before millionaires.
An Opportunity For Compromise
The following op-ed appeared yesterday in the Philadelphia Inquirer. It states that Congressman Runyan should do the right thing and let the Bush Tax Cuts expire for top-income earners
By Joshua Henne
Over 13 years in the NFL, Jon Runyan's job was to protect the quarterback. Now that he's in the House of Representatives, his job is to protect his constituents. Runyan (R., N.J.) can do that by agreeing to President Obama's plan to preserve Bush-era tax rates for the middle class while letting them expire for the richest 2 percent.
Democrats and Republicans alike can agree that middle-income families' taxes shouldn't go up. But they will increase if Congress fails to act. With a Dec. 31 expiration date looming, Runyan would be wise to heed the advice of his colleague Tom Cole, the first Republican congressman to openly urge approval of Obama's plan. Cole served as the Republican National Committee's chairman and as its chief of staff during George W. Bush's presidential run. But even this rock-ribbed partisan knows there is no good reason to hold all the country's taxpayers hostage simply to fight for the uber-wealthy.
It's fine if you still believe in trickle-down economics, unicorns, and leprechauns. But what truly fuels small-business success is regular folks' having money to spend. And if Congress fails to act, tax hikes could force Americans to reduce their spending on clothes, cars, and other consumer products by almost $200 billion next year alone.
Ending tax breaks for millionaires and billionaires is also essential to avoiding the fiscal cliff's automatic spending cuts, which would cripple many government programs that families rely on. Obama's proposal to let taxes go up for the wealthiest households would bring in half the money needed to avoid those cuts. Meanwhile, 98 percent of Americans and 97 percent of small businesses would keep the tax rates they currently enjoy.
Runyan should show he's not willing to allow middle-class taxes to spike just to avoid asking the wealthiest to pay their share. New Jersey's employment has consistently trailed the nation's under Gov. Christie. Unemployment hovers around 10 percent, significantly worse than the U.S. rate, and middle-class incomes are languishing even as those of the top earners are rising.
Runyan has already said he won't be beholden to Grover Norquist's silly no-tax pledge, as has his colleague across the Delaware, Pat Meehan (R., Pa.). They should take the next logical step and embrace Obama's proposal.
Last month, Americans voted resoundingly for the president after a campaign that focused squarely on the fairness issue. At his own election-night victory party, Runyan said, "The political positioning is over, and it's now time to have the adult conversations with the American people." Runyan was completely correct: His constituents want action, not posturing.
There is no better way for the former lineman to tackle the real problem and put his money where his mouth is - and to put more money in the pockets of the middle class and small businesses - than by supporting the president's call for tax relief for 98 percent of Americans.
Joshua Henne is New Jersey spokesman for The Action. He can be followed on Twitter at @JoshuaHenne.
By Joshua Henne
Over 13 years in the NFL, Jon Runyan's job was to protect the quarterback. Now that he's in the House of Representatives, his job is to protect his constituents. Runyan (R., N.J.) can do that by agreeing to President Obama's plan to preserve Bush-era tax rates for the middle class while letting them expire for the richest 2 percent.
Democrats and Republicans alike can agree that middle-income families' taxes shouldn't go up. But they will increase if Congress fails to act. With a Dec. 31 expiration date looming, Runyan would be wise to heed the advice of his colleague Tom Cole, the first Republican congressman to openly urge approval of Obama's plan. Cole served as the Republican National Committee's chairman and as its chief of staff during George W. Bush's presidential run. But even this rock-ribbed partisan knows there is no good reason to hold all the country's taxpayers hostage simply to fight for the uber-wealthy.
It's fine if you still believe in trickle-down economics, unicorns, and leprechauns. But what truly fuels small-business success is regular folks' having money to spend. And if Congress fails to act, tax hikes could force Americans to reduce their spending on clothes, cars, and other consumer products by almost $200 billion next year alone.
Ending tax breaks for millionaires and billionaires is also essential to avoiding the fiscal cliff's automatic spending cuts, which would cripple many government programs that families rely on. Obama's proposal to let taxes go up for the wealthiest households would bring in half the money needed to avoid those cuts. Meanwhile, 98 percent of Americans and 97 percent of small businesses would keep the tax rates they currently enjoy.
Runyan should show he's not willing to allow middle-class taxes to spike just to avoid asking the wealthiest to pay their share. New Jersey's employment has consistently trailed the nation's under Gov. Christie. Unemployment hovers around 10 percent, significantly worse than the U.S. rate, and middle-class incomes are languishing even as those of the top earners are rising.
Runyan has already said he won't be beholden to Grover Norquist's silly no-tax pledge, as has his colleague across the Delaware, Pat Meehan (R., Pa.). They should take the next logical step and embrace Obama's proposal.
Last month, Americans voted resoundingly for the president after a campaign that focused squarely on the fairness issue. At his own election-night victory party, Runyan said, "The political positioning is over, and it's now time to have the adult conversations with the American people." Runyan was completely correct: His constituents want action, not posturing.
There is no better way for the former lineman to tackle the real problem and put his money where his mouth is - and to put more money in the pockets of the middle class and small businesses - than by supporting the president's call for tax relief for 98 percent of Americans.
Joshua Henne is New Jersey spokesman for The Action. He can be followed on Twitter at @JoshuaHenne.
Monday, December 10, 2012
Opinion: As fiscal cliff nears, we are better off without Bush tax cuts for top 2 percent
The following editorial appeared last week in the Times of Trenton
By Joshua Henne
Mere days after the polls closed in 2004 — the election he actually won – President George W. Bush proclaimed, “I earned capital in this campaign, political capital, and now I intend to spend it.” Bush garnered 286 electoral votes and called it a mandate.
Well, last month, President Barack Obama racked up a whopping 332 electoral votes in his re-election bid. Now, that’s a mandate.
At its heart, the 2012 campaign was about fairness. And there’s no better way for Obama to level the playing field than by letting the Bush tax cuts expire on the wealthiest 2 percent.
The Senate has already passed legislation S3412, providing tax relief for middle-class families. Right now, Obama would sign a bill extending tax cuts for 98 percent of Americans if it came across his desk. Yet, some stubborn House Republicans continue holding this plan hostage to keep the system rigged in favor of those at the tippy-top. Obama has drawn a line in cement that he’d veto any legislation continuing cuts for those making more than $250,000.
By any metric, America’s most affluent aren’t hurting. In fact, they’re far richer today than at any time in history — taking home a larger slice of total wealth and income than top earners have received in more than 80 years. If the Bush tax cuts were to expire for the top 2 percent, they’d still be able to keep up with the Kardashians.
Allowing the clock to run out on these cuts isn’t merely a symbolic gesture of finally shaking off the yoke of Bush’s failed legacy. There are practical, real-life implications, as well.
Currently, there’s a spirited discussion regarding how to stop our nation from falling off a fiscal cliff. By letting the Bush tax cuts lapse on top income earners, we’d take care of half that conundrum. About $1 trillion would come flooding in over the next decade, half-filling America’s coffers with the money needed to avoid the plunge off said cliff. That’s not a drop in the bucket. It’s a significant contribution toward what’s needed to put our nation back on sound financial footing.
Every year, millionaires receive, on average, $128,832 back from the Bush tax cuts. Economists across the board say this strategy is the least effective way to grow our economy. The very rich simply sit on the additional money, rather than re-circulating it. Ayn Rand’s silly theory that the super-wealthy are society’s saviors has smacked against reality time and time again. Prosperity won’t come from the top down. Rather, we need policies that stimulate and strengthen the middle class.
Furthermore, if we hand hedge fund managers more money to simply add to savings accounts and shore up stock portfolios, we won’t have the funds needed to rebuild our crumbling roads, bridges and energy grid or invest in education, health and innovation. Congress shouldn’t hold the middle class captive just to make sure the Scrooge McDucks of the world can continue swimming around in ever-deepening vaults of cash.
It’s also a canard to claim small businesses would be harmed by ending the Bush tax cuts for the top 2 percent. The truth is 97 percent of them would still see their tax cut extended. Many of the remaining “small-business owners” are lawyers, Wall Streeters and folks who classify as such to take advantage of tax loopholes.
Real small-business owners will tell you they don’t need tax reductions to help them grow. Rather, they need more customers with more money to purchase goods or use their services. Supplying tax cuts to the super-wealthy would purely perpetuate an unfair advantage by giving them more cash on hand, making it even more arduous for actual mom-and-pop stores to compete. So, it’s no surprise that a Small Business Majority poll shows 52 percent of business owners support letting tax cuts lapse for those making more than $250,000.
There is no rational argument for everyone’s taxes to go up just so billionaires get another cut. Congressional members from coast to coast — and especially here in New Jersey — should slip free of the shackles of Grover Norquist’s childish pledge. In terms of sheer self-interest alone, Republican representatives would be wise to stop holding middle-class tax relief hostage, lest constituents remember this in the mid-term elections.
An Americans for Tax Fairness poll shows 67 percent said “making the tax system more fair” was a “very” or “fairly important consideration in making their voting decisions” this year. More people believe in dropping the Bush tax cuts for the top 2 percent than even voted for Obama. The people have spoken from the ground up. They won’t stand for trickle-down economics any longer. This president truly has capital. And he is going to use it.
Elections are about much more than the names at the top of the ticket. They’re also about the ideas, policies and philosophies for which voters are truly pulling the lever. In 2012, the American people clamored for fairness. By allowing the Bush tax cuts to expire on the wealthiest income earners, Congress can show it is listening to the will of the people.
Joshua Henne is a founding partner of White Horse Strategies and New Jersey spokesman for The Action. You can follow @JoshuaHenne on Twitter.
By Joshua Henne
Mere days after the polls closed in 2004 — the election he actually won – President George W. Bush proclaimed, “I earned capital in this campaign, political capital, and now I intend to spend it.” Bush garnered 286 electoral votes and called it a mandate.
Well, last month, President Barack Obama racked up a whopping 332 electoral votes in his re-election bid. Now, that’s a mandate.
At its heart, the 2012 campaign was about fairness. And there’s no better way for Obama to level the playing field than by letting the Bush tax cuts expire on the wealthiest 2 percent.
The Senate has already passed legislation S3412, providing tax relief for middle-class families. Right now, Obama would sign a bill extending tax cuts for 98 percent of Americans if it came across his desk. Yet, some stubborn House Republicans continue holding this plan hostage to keep the system rigged in favor of those at the tippy-top. Obama has drawn a line in cement that he’d veto any legislation continuing cuts for those making more than $250,000.
By any metric, America’s most affluent aren’t hurting. In fact, they’re far richer today than at any time in history — taking home a larger slice of total wealth and income than top earners have received in more than 80 years. If the Bush tax cuts were to expire for the top 2 percent, they’d still be able to keep up with the Kardashians.
Allowing the clock to run out on these cuts isn’t merely a symbolic gesture of finally shaking off the yoke of Bush’s failed legacy. There are practical, real-life implications, as well.
Currently, there’s a spirited discussion regarding how to stop our nation from falling off a fiscal cliff. By letting the Bush tax cuts lapse on top income earners, we’d take care of half that conundrum. About $1 trillion would come flooding in over the next decade, half-filling America’s coffers with the money needed to avoid the plunge off said cliff. That’s not a drop in the bucket. It’s a significant contribution toward what’s needed to put our nation back on sound financial footing.
Every year, millionaires receive, on average, $128,832 back from the Bush tax cuts. Economists across the board say this strategy is the least effective way to grow our economy. The very rich simply sit on the additional money, rather than re-circulating it. Ayn Rand’s silly theory that the super-wealthy are society’s saviors has smacked against reality time and time again. Prosperity won’t come from the top down. Rather, we need policies that stimulate and strengthen the middle class.
Furthermore, if we hand hedge fund managers more money to simply add to savings accounts and shore up stock portfolios, we won’t have the funds needed to rebuild our crumbling roads, bridges and energy grid or invest in education, health and innovation. Congress shouldn’t hold the middle class captive just to make sure the Scrooge McDucks of the world can continue swimming around in ever-deepening vaults of cash.
It’s also a canard to claim small businesses would be harmed by ending the Bush tax cuts for the top 2 percent. The truth is 97 percent of them would still see their tax cut extended. Many of the remaining “small-business owners” are lawyers, Wall Streeters and folks who classify as such to take advantage of tax loopholes.
Real small-business owners will tell you they don’t need tax reductions to help them grow. Rather, they need more customers with more money to purchase goods or use their services. Supplying tax cuts to the super-wealthy would purely perpetuate an unfair advantage by giving them more cash on hand, making it even more arduous for actual mom-and-pop stores to compete. So, it’s no surprise that a Small Business Majority poll shows 52 percent of business owners support letting tax cuts lapse for those making more than $250,000.
There is no rational argument for everyone’s taxes to go up just so billionaires get another cut. Congressional members from coast to coast — and especially here in New Jersey — should slip free of the shackles of Grover Norquist’s childish pledge. In terms of sheer self-interest alone, Republican representatives would be wise to stop holding middle-class tax relief hostage, lest constituents remember this in the mid-term elections.
An Americans for Tax Fairness poll shows 67 percent said “making the tax system more fair” was a “very” or “fairly important consideration in making their voting decisions” this year. More people believe in dropping the Bush tax cuts for the top 2 percent than even voted for Obama. The people have spoken from the ground up. They won’t stand for trickle-down economics any longer. This president truly has capital. And he is going to use it.
Elections are about much more than the names at the top of the ticket. They’re also about the ideas, policies and philosophies for which voters are truly pulling the lever. In 2012, the American people clamored for fairness. By allowing the Bush tax cuts to expire on the wealthiest income earners, Congress can show it is listening to the will of the people.
Joshua Henne is a founding partner of White Horse Strategies and New Jersey spokesman for The Action. You can follow @JoshuaHenne on Twitter.
Saturday, December 8, 2012
President Obama's Weekly Address 12/8/12 : Congress Must Extend the Middle Class Tax Cuts
WASHINGTON, DC— In this week’s address, President Obama urged Congress to extend the middle class income tax cuts for 98% of Americans and 97% of small businesses without delay, and made clear that a balanced approach to deficit reduction means that Republicans in Congress must agree to ask the wealthiest Americans to pay higher tax rates.
Friday, December 7, 2012
In Obama’s Plan to Tax Rich, $250,000 Figure May Mislead
Interesting read from the New York Times. It seems that the President's plan to raise taxes on those that earn $250K or more a year shouldn't be taken at face value.
Continue reading
President Obama’s insistence that marginal tax rates rise for families making more than $250,000 has convinced millions of affluent Americans that they are likely to be writing larger checks to the government next year.
But many of those families have no reason to fret.
A close look at the president’s plan shows that a large majority of families making up to $300,000 — as well as hundreds of thousands of families with even larger incomes — would not pay taxes at a higher marginal rate.
Because the complexity of the tax code makes it difficult to draw clean lines, they are the beneficiaries of choices the administration has made to ensure that families earning less than $250,000 do not pay higher rates.
Some of those affluent households would pay higher taxes next year under other parts of the president’s tax plan and increases imposed by the Affordable Care Act, but not under the centerpiece, the part most frequently promoted by the president and most bitterly opposed by Congressional Republicans.
John Boudreau, the president of a Connecticut construction firm who expects to make about $300,000 this year, said that was a welcome surprise. He voted for Mr. Obama and said he was ready to pay taxes at a higher rate. But he would rather not.
“I’m willing to, but if it works that I’m not, so be it,” he said. “I will not be a person that’s going to stick an extra check in my tax bill as my donation to my country.”
Unless the White House and Congress are able to reach an agreement, federal taxes are scheduled to rise sharply next year for a large majority of Americans. Tax cuts first passed in 2001 and 2003 under President George W. Bush are scheduled to expire. So are cuts passed during Mr. Obama’s first term.
The president’s plan would prevent most of the scheduled increase for those below an income threshold Mr. Obama generally describes as $250,000. The Senate has passed similar legislation.
But Democrats remain at loggerheads with House Republicans, who want to prevent scheduled increases for the most affluent households, too. And the parties disagree about how to prune federal spending....
Continue reading
Wednesday, December 5, 2012
OVER 150 NEW JERSEYANS COME TOGETHER TO IMPLORE CONGRESS TO LET BUSH TAX CUTS EXPIRE ON TOP 2%
For Immediate Release:
(NEW JERSEY) – With the Bush Tax Cuts set to at the expire of this month, over 150 New Jerseyans took part in a national Day of Action at 4 sessions throughout the state this past Saturday, December 1st. Participants included activists, community organizers, union members, people of faith, volunteers fresh off the Obama campaign and those who simply care about the future our country.
These activist and informational get-togethers took place in Montclair, Pleasantville, Toms River and Willingboro. There, folks learned about the “fiscal cliff” and how it will affect programs the middle-class and working families care about. Specifically, they discussed how important it is for Congress to let the Bush Tax Cuts lapse on the wealthiest 2%. They spoke of ways to mobilize during this lame duck Congressional session and came up with citizen actions to make sure our representatives listen to the will of the people – who voted for fairness at the polls last month.
"This election was all about fairness, and letting the Bush Tax Cuts expire on the top 2% is a strong way to help bring about an America where everyone pays their fair share and has equal responsibility to our communities,” said Jackie Cornell-Bechelli, Campaign Director for The Action and former New Jersey Obama for America State Director. “That's why we saw such a positive response this weekend and that's why we will continue to push Congress to do the right thing.”
“This weekend, New Jersey showed that we believe in tax fairness and an economy that works for 100% of Americans, not just the richest 2%,” said Ann Vardeman, an organizer with NJ Citizen Action and Americans for Tax Fairness. “Our elected officials need to listen to the voices of their constituents and put the needs of the middle-class and working families first.”
If Congress lets the Bush Tax Cuts expire on top income earners, 97% of small businesses and 98% of Americans would continue receiving the exact same tax relief. Moreover, economists have proven tax breaks for the wealthiest Americans are the least effective way to grow the economy.
“Congress shouldn’t hold the middle-class captive just to make sure the Scrooge McDucks of the world can continue swimming around in ever-deepening vaults of cash,” said Joshua Henne, Democratic strategist and spokesman for New Jersey Protect Your Care. “If we hand hedge-fund managers more money to simply add to their savings accounts and stock portfolios, we won’t have the funds needed to rebuild our crumbling roads and bridges, upgrade our energy grid and invest in education, healthcare and innovation.”
Republican Congress Members Jon Runyan, Frank LoBiondo, Chris Smith and Leonard Lance would be wise to keep their finger on the pulse in their district, rather than taking marching orders from right-wing think tanks and Grover Norquist.
“Ending the Bush Tax Cuts for the richest 2% isn’t just a Beltway issue,” said James Gee, veteran political operative. “Real people here in New Jersey are taking interest, because this affects all our lives.”
Throughout the weekend, New Jerseyans throughout the state also took to social media to rally around the cause. Many used the twitter hashtag #TheActionNJ to say why they support letting the Bush Tax Cuts expire on the top 2%. Tweets came pouring in from college students to senior citizens and everyone in between.
The twitterverse saw both Assembly Speaker Sheila Oliver and Jersey City Mayor Jerramiah Healy holding up placards saying “End the Bush Tax Cuts For The Wealthy.”
New Jersey Representatives Rob Andrews and Rush Holt also chimed in this weekend on twitter:
· @RepAndrews: “Let the #BushTaxCuts expire so the wealthiest 2% pay their fair share & America can get its deficit under control #TheActionNJ #TheAction”
· @RushHolt: “A budget is about moral choices. The right thing to do: invest in jobs/schools/R&D - not Bush tax cuts for top 2% #TheActionNJ #TheAction”
For more information – and to see the scope of national activities going forward, please visit www.TheAction.org. You can also find “The Action” on facebook and follow @JoinTheAction on twitter.
Groundswell of Support at Four Sessions Throughout The State
(NEW JERSEY) – With the Bush Tax Cuts set to at the expire of this month, over 150 New Jerseyans took part in a national Day of Action at 4 sessions throughout the state this past Saturday, December 1st. Participants included activists, community organizers, union members, people of faith, volunteers fresh off the Obama campaign and those who simply care about the future our country.
These activist and informational get-togethers took place in Montclair, Pleasantville, Toms River and Willingboro. There, folks learned about the “fiscal cliff” and how it will affect programs the middle-class and working families care about. Specifically, they discussed how important it is for Congress to let the Bush Tax Cuts lapse on the wealthiest 2%. They spoke of ways to mobilize during this lame duck Congressional session and came up with citizen actions to make sure our representatives listen to the will of the people – who voted for fairness at the polls last month.
"This election was all about fairness, and letting the Bush Tax Cuts expire on the top 2% is a strong way to help bring about an America where everyone pays their fair share and has equal responsibility to our communities,” said Jackie Cornell-Bechelli, Campaign Director for The Action and former New Jersey Obama for America State Director. “That's why we saw such a positive response this weekend and that's why we will continue to push Congress to do the right thing.”
“This weekend, New Jersey showed that we believe in tax fairness and an economy that works for 100% of Americans, not just the richest 2%,” said Ann Vardeman, an organizer with NJ Citizen Action and Americans for Tax Fairness. “Our elected officials need to listen to the voices of their constituents and put the needs of the middle-class and working families first.”
If Congress lets the Bush Tax Cuts expire on top income earners, 97% of small businesses and 98% of Americans would continue receiving the exact same tax relief. Moreover, economists have proven tax breaks for the wealthiest Americans are the least effective way to grow the economy.
“Congress shouldn’t hold the middle-class captive just to make sure the Scrooge McDucks of the world can continue swimming around in ever-deepening vaults of cash,” said Joshua Henne, Democratic strategist and spokesman for New Jersey Protect Your Care. “If we hand hedge-fund managers more money to simply add to their savings accounts and stock portfolios, we won’t have the funds needed to rebuild our crumbling roads and bridges, upgrade our energy grid and invest in education, healthcare and innovation.”
Republican Congress Members Jon Runyan, Frank LoBiondo, Chris Smith and Leonard Lance would be wise to keep their finger on the pulse in their district, rather than taking marching orders from right-wing think tanks and Grover Norquist.
“Ending the Bush Tax Cuts for the richest 2% isn’t just a Beltway issue,” said James Gee, veteran political operative. “Real people here in New Jersey are taking interest, because this affects all our lives.”
Throughout the weekend, New Jerseyans throughout the state also took to social media to rally around the cause. Many used the twitter hashtag #TheActionNJ to say why they support letting the Bush Tax Cuts expire on the top 2%. Tweets came pouring in from college students to senior citizens and everyone in between.
The twitterverse saw both Assembly Speaker Sheila Oliver and Jersey City Mayor Jerramiah Healy holding up placards saying “End the Bush Tax Cuts For The Wealthy.”
New Jersey Representatives Rob Andrews and Rush Holt also chimed in this weekend on twitter:
· @RepAndrews: “Let the #BushTaxCuts expire so the wealthiest 2% pay their fair share & America can get its deficit under control #TheActionNJ #TheAction”
· @RushHolt: “A budget is about moral choices. The right thing to do: invest in jobs/schools/R&D - not Bush tax cuts for top 2% #TheActionNJ #TheAction”
For more information – and to see the scope of national activities going forward, please visit www.TheAction.org. You can also find “The Action” on facebook and follow @JoinTheAction on twitter.
Wednesday, November 28, 2012
NJ GOP HOUSE MEMBERS SHOULD LISTEN TO CONGRESSMAN TOM COLE & CONTINUE MIDDLE-CLASS TAX RELIEF IMMEDIATELY
For Immediate Release:
November 28, 2012
Politico, 11/27: Republican Rep. Tom Cole urged colleagues in a private session Tuesday to vote to extend the Bush tax rates for all but the highest earners before the end of the year — and to battle over the rest later. ... “I think we ought to take the 98 percent deal right now,” [Congressman Cole] said of freezing income tax rates for all but the top 2 percent of earners.
(NEW JERSEY) – With the December 31st expiration date looming for the Bush Tax Cuts, New Jersey’s Republican House members would be wise to join with their colleague Congressman Tom Cole – a member of the House Republican leadership – in doing the right thing: immediately extending tax relief for the middle class and letting the Bush Tax Cuts expire for the wealthiest 2%.
On Election Day, the voters spoke up loud and clear for fairness. And recent polls show both the American people and small businesses do not support continued tax breaks for the richest 2%. If Congress fails to act, the average middle-class family would see a $2,200 spike in taxes - negatively impacting consumer spending and retailers, while killing jobs in the process.
“With near 10 % unemployment and consistently lagging the rest of the country when it comes to jobs, New Jersey needs middle-class tax relief,” said Joshua Henne, spokesman for New Jersey Protect Your Care. “To date, Congressmen such as Jon Runyan, Chris Smith, Leonard Lance and Frank LoBiondo have been reluctant to listen to 60% of Americans or the majority of small business owners who support letting the Bush Tax Cuts lapse for the top 2%. Hopefully, they’ll listen to a fellow staunch Republican who is prepared to put what’s best for his country and the middle-class ahead of special interests and Grover Norquist’s silly pledge.”
As Politico noted, Congressman Cole is no “squish” when it comes to Republican orthodoxy. Cole served as Executive Director of the National Republican Congressional Committee in the 1992 cycle. During George W. Bush’s 2000 campaign cycle, he served as Chief of Staff of the Republican National Committee. In 2008, Cole served as Chairman of the National Republican Congressional Committee.
There’s no time to waste. New Jersey needs middle-class tax relief right now. This Saturday, December 1st there will be 4 activist get-togethers spread across the state where people can learn about the issues facing Congress over the next few weeks. Here, participants can mobilize to make sure New Jersey’s delegation does the right thing by letting the Bush Tax Cuts lapse for the wealthiest 2%. The locations for this Saturday’s sessions are as follows:
1). Toms River: Branch OC Library, 101 Washington Street (1:30 pm – 3:30 pm)
2). Montclair: Unitarian Universalist Congregation, 67 Church Street (11 am – 12:30 pm)
3). Willingboro: Senior Center, 429 John F. Kennedy Way (11 am-12:30 pm)
4). Pleasantville: Christ Worship Worldwide Church, 249 W. Bayview Avenue (10 am – 2 pm)
November 28, 2012
Politico, 11/27: Republican Rep. Tom Cole urged colleagues in a private session Tuesday to vote to extend the Bush tax rates for all but the highest earners before the end of the year — and to battle over the rest later. ... “I think we ought to take the 98 percent deal right now,” [Congressman Cole] said of freezing income tax rates for all but the top 2 percent of earners.
(NEW JERSEY) – With the December 31st expiration date looming for the Bush Tax Cuts, New Jersey’s Republican House members would be wise to join with their colleague Congressman Tom Cole – a member of the House Republican leadership – in doing the right thing: immediately extending tax relief for the middle class and letting the Bush Tax Cuts expire for the wealthiest 2%.
On Election Day, the voters spoke up loud and clear for fairness. And recent polls show both the American people and small businesses do not support continued tax breaks for the richest 2%. If Congress fails to act, the average middle-class family would see a $2,200 spike in taxes - negatively impacting consumer spending and retailers, while killing jobs in the process.
“With near 10 % unemployment and consistently lagging the rest of the country when it comes to jobs, New Jersey needs middle-class tax relief,” said Joshua Henne, spokesman for New Jersey Protect Your Care. “To date, Congressmen such as Jon Runyan, Chris Smith, Leonard Lance and Frank LoBiondo have been reluctant to listen to 60% of Americans or the majority of small business owners who support letting the Bush Tax Cuts lapse for the top 2%. Hopefully, they’ll listen to a fellow staunch Republican who is prepared to put what’s best for his country and the middle-class ahead of special interests and Grover Norquist’s silly pledge.”
As Politico noted, Congressman Cole is no “squish” when it comes to Republican orthodoxy. Cole served as Executive Director of the National Republican Congressional Committee in the 1992 cycle. During George W. Bush’s 2000 campaign cycle, he served as Chief of Staff of the Republican National Committee. In 2008, Cole served as Chairman of the National Republican Congressional Committee.
There’s no time to waste. New Jersey needs middle-class tax relief right now. This Saturday, December 1st there will be 4 activist get-togethers spread across the state where people can learn about the issues facing Congress over the next few weeks. Here, participants can mobilize to make sure New Jersey’s delegation does the right thing by letting the Bush Tax Cuts lapse for the wealthiest 2%. The locations for this Saturday’s sessions are as follows:
1). Toms River: Branch OC Library, 101 Washington Street (1:30 pm – 3:30 pm)
2). Montclair: Unitarian Universalist Congregation, 67 Church Street (11 am – 12:30 pm)
3). Willingboro: Senior Center, 429 John F. Kennedy Way (11 am-12:30 pm)
4). Pleasantville: Christ Worship Worldwide Church, 249 W. Bayview Avenue (10 am – 2 pm)
Tuesday, September 20, 2011
United for a Fair Economy Applauds Obama Revenue Proposal
FOR IMMEDIATE RELEASE
Boston, MA (September 20, 2011): United for a Fair Economy (UFE) applauds President Obama’s proposal to raise $1.5 trillion in revenue by increasing taxes primarily on the wealthiest one percent of taxpayers and corporations. Over the last decade, the richest Americans have seen their income and wealth soar while benefitting from sharply reduced taxation.
"At a time of unprecedented economic inequality, extensive unemployment, and deep concern over our country’s long-term fiscal health, it is entirely appropriate and economically sound to institute progressive taxation as the best solution to our nation’s challenges," said Lee Farris, senior organizer on federal tax policy at United for a Fair Economy.
President Obama’s proposal seeks to let the Bush tax cuts expire for upper-income taxpayers, close corporate tax loopholes, end oil and gas subsidies, and limit the amount that high earners can deduct. According to Citizens for Tax Justice, only the richest five percent of taxpayers would pay additional taxes under Mr. Obama’s proposal, with 75 percent of the increases paid by the richest one percent.
United for a Fair Economy especially supports President Obama’s proposed "Buffett Rule,” that would establish a minimum tax on taxpayers making $1 million or more in income, and would limit the benefit they receive from the 15 percent tax rate on investment income.
"People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay," said Farris.
UFE is encouraged that the President vowed to veto any deficit reduction package that cuts benefits to Medicare recipients but does not raise taxes on the wealthy and big corporations.
Given UFE’s decade-long campaign for a robust estate tax, UFE views the President’s proposal for the estate tax to return at its weakened 2009 level as a missed opportunity to raise much-needed revenue from multi-millionaire inheritors to improve our nation's fiscal health.
United for a Fair Economy urges Americans to tell Congress to reform our tax code so wealthy individuals and large corporations pay their fair share. We support the tax package developed by Rebuild the Dream, which includes taxing capital gains and investment income at the same rate as income from wages, new higher tax brackets for millionaires and billionaires, a stronger estate tax, and ending offshore tax havens for corporations and individuals. UFE also supports HR 1124, the Fairness in Taxation Act.
United for a Fair Economy is a national, independent, nonpartisan, 501(c)(3) non-profit organization located in Boston, MA, which works to rein in economic inequality and promote a more broadly shared prosperity. More at www.faireconomy.org.
"At a time of unprecedented economic inequality, extensive unemployment, and deep concern over our country’s long-term fiscal health, it is entirely appropriate and economically sound to institute progressive taxation as the best solution to our nation’s challenges," said Lee Farris, senior organizer on federal tax policy at United for a Fair Economy.President Obama’s proposal seeks to let the Bush tax cuts expire for upper-income taxpayers, close corporate tax loopholes, end oil and gas subsidies, and limit the amount that high earners can deduct. According to Citizens for Tax Justice, only the richest five percent of taxpayers would pay additional taxes under Mr. Obama’s proposal, with 75 percent of the increases paid by the richest one percent.
United for a Fair Economy especially supports President Obama’s proposed "Buffett Rule,” that would establish a minimum tax on taxpayers making $1 million or more in income, and would limit the benefit they receive from the 15 percent tax rate on investment income.
"People making more than $1 million a year should not pay a smaller share of their income in taxes than middle-class families pay," said Farris.
UFE is encouraged that the President vowed to veto any deficit reduction package that cuts benefits to Medicare recipients but does not raise taxes on the wealthy and big corporations.
Given UFE’s decade-long campaign for a robust estate tax, UFE views the President’s proposal for the estate tax to return at its weakened 2009 level as a missed opportunity to raise much-needed revenue from multi-millionaire inheritors to improve our nation's fiscal health.
United for a Fair Economy urges Americans to tell Congress to reform our tax code so wealthy individuals and large corporations pay their fair share. We support the tax package developed by Rebuild the Dream, which includes taxing capital gains and investment income at the same rate as income from wages, new higher tax brackets for millionaires and billionaires, a stronger estate tax, and ending offshore tax havens for corporations and individuals. UFE also supports HR 1124, the Fairness in Taxation Act.
United for a Fair Economy is a national, independent, nonpartisan, 501(c)(3) non-profit organization located in Boston, MA, which works to rein in economic inequality and promote a more broadly shared prosperity. More at www.faireconomy.org.
Sunday, July 17, 2011
On income taxes and job creation, history debunks GOP views
By Star-Ledger Editorial Board
Sunday, July 17, 2011
Sunday, July 17, 2011
We’re used to politicians stretching the truth, but this is getting ridiculous. For months now, congressional Republicans have refused to support any debt ceiling and budget deal that would raise taxes on the wealthy because, these economic wizards tell us, the rich are “job creators.”
Tax increases would discourage these job genies from expanding their businesses. Unemployment, already at 9.2 percent (which says something about the job-creation myth, doesn’t it?), would get even worse, they insist. The problem with this economic philosophy? It’s garbage.
Even Warren Buffett, one of the richest men in the world, knows that: “The rich are always going to say, ‘Just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you.’ But that has not worked the last 10 years, and I hope the American public is catching on.”
The American public, it seems, is catching on, even if Republicans want to twist the truth about that, too. Speaker of the House John Boehner keeps insisting, “The American people don’t want us to raise taxes.” House Majority Leader Eric Cantor says, “This economy is ailing and we don’t believe, nor do the American people believe, raising taxes is the answer.”
Think again. Americans believe Congress should raise taxes on the wealthy.
A new Quinnipiac survey asked voters if they support a budget deal with only budget cuts or a blend of cuts and taxes on corporations and the rich. Only 25 percent said cuts only. Sixty-seven percent want cuts and a tax increase on the wealthy.
Republican leaders are not only misrepresenting what the American people want, they’re covering up Republican numbers, too. In a recent Gallup poll, only 26 percent of Republicans favored lowering the debt with cuts alone. In just about every poll — ABC News, Washington Post, Bloomberg, Reuters — Americans want spending cuts and they want the wealthy to pay a larger share.
But maybe the American people are wrong. Let’s check the history. Did giving the wealthy a break with the Bush tax cuts of 2001 and 2003 help create jobs? Uh, no. From the end of the 2000-01 recession, just when the first Bush tax cuts took effect, until the beginning of the Great Recession, the economy grew at a slower pace than in any postrecession recovery period since World War II. Pay, adjusted for inflation, fell. And it took 39 months to get the number of jobs back to where it was before the 2000-01 recession.
Despite the same promises of jobs, the economy limped along. And the additional tax cut in 2003 didn’t rev it up, either.
President Bill Clinton faced vociferous opposition to his 1993 budget plan, which raised the top tax rates from 31 percent to 39.6 percent. Republicans called it the “Kevorkian Plan.”
So, what happened? Unparalleled economic growth. The nation’s unemployment dropped from 6.9 percent to 4 percent. The deficit shrank, and in 1998, the federal government boasted a surplus for the first time since 1969.
It seems the economy can survive a tax hike on the wealthy after all. And the tax hike did wonders to reduce the deficit as well, as designed.
More evidence: During the 1950s and early 1960s, when America experienced sustained growth, marginal tax rates on the rich were the highest they’ve ever been — 91 percent for the top bracket. (Even President Ronald Reagan, the Republican economic poster boy, raised taxes after he cut them.)
But Republicans keep chanting the same nonsense — without offering historical evidence to back it up. Instead, they want to bring the nation to the brink of default while protecting corporations (who are sitting on billions in profits) and fat cats — while everyday Americans are squeezed by high gas and food prices, plunging home prices and lower wages.
Let’s call the job-creator stuff what it is: a myth.
Monday, December 20, 2010
White House says N.J. benefits from proposed tax cuts
I posted the following just for some balance to offset the argument of the previous post.
12/15/10
New Jersey stands to benefit if the House acts quickly on a bipartisan package that extends unemployment benefits and tax cuts, White House officials said Wednesday.
As many 4.7 million New Jerseyans would see more money in their paychecks because of the proposed 2 percent payroll tax cut. If the legislation is not approved, a typical working family faced a tax increase of over $3,000 on Jan. 1.
At least 321,774 New Jerseyans who have been jobless for an extended period would continue to receive jobless benefits under the legislation. If the package is not approved, the jobless benefits would end in the weeks ahead.
The package also includes an extension of the American Opportunity tax credit, which was used by 281,000 New Jersey families last year to help pay for college tuition.
Additional tax cuts in the legislation that also are geared at middle-class families include the Earned Income Tax Credit, designed to help families to climb out of poverty, and the Child Tax Credit extension, that would make sure families don't see their taxes jump by up to $1,000 for every child.
"This tax cut plan, while not perfect, will help to grow our economy and create jobs in the private sector," President Obama said. "It will help to lift up middle class families, who will no longer need to worry about a New Year's Day tax hike. It will offer emergency relief to help tide folks over until they find another job. And it includes tax cuts to make college more affordable; help parents to provide for their children; and help businesses, large and small, to expand and hire. We worked hard to negotiate an agreement that's a win for middle-class families, and a win for our economy, and we can't afford to let it fall victim to delay and defeat. So, I urge Members of Congress to pass these tax cuts as swiftly as possible."
White House officials described the proposals as responsible, temporary measures designed to support the national economy that will not add costs by the middle of the decade. Obama does not believe it is affordable to make the high-income tax cuts permanent and will continue to make his case for why the administration cannot extend these measures beyond 2012.
The Senate voted 81-19 in favor of the bipartisan tax cut package Wednesday afternoon. It now moves to the House of Representatives for consideration.
As many 4.7 million New Jerseyans would see more money in their paychecks because of the proposed 2 percent payroll tax cut. If the legislation is not approved, a typical working family faced a tax increase of over $3,000 on Jan. 1.
At least 321,774 New Jerseyans who have been jobless for an extended period would continue to receive jobless benefits under the legislation. If the package is not approved, the jobless benefits would end in the weeks ahead.
The package also includes an extension of the American Opportunity tax credit, which was used by 281,000 New Jersey families last year to help pay for college tuition.
Additional tax cuts in the legislation that also are geared at middle-class families include the Earned Income Tax Credit, designed to help families to climb out of poverty, and the Child Tax Credit extension, that would make sure families don't see their taxes jump by up to $1,000 for every child.
"This tax cut plan, while not perfect, will help to grow our economy and create jobs in the private sector," President Obama said. "It will help to lift up middle class families, who will no longer need to worry about a New Year's Day tax hike. It will offer emergency relief to help tide folks over until they find another job. And it includes tax cuts to make college more affordable; help parents to provide for their children; and help businesses, large and small, to expand and hire. We worked hard to negotiate an agreement that's a win for middle-class families, and a win for our economy, and we can't afford to let it fall victim to delay and defeat. So, I urge Members of Congress to pass these tax cuts as swiftly as possible."
White House officials described the proposals as responsible, temporary measures designed to support the national economy that will not add costs by the middle of the decade. Obama does not believe it is affordable to make the high-income tax cuts permanent and will continue to make his case for why the administration cannot extend these measures beyond 2012.
The Senate voted 81-19 in favor of the bipartisan tax cut package Wednesday afternoon. It now moves to the House of Representatives for consideration.
NJPP Monday Minute 12/20/10: Deficit be Damned: Everyone Gets a Tax Cut Next Year
This Christmas, we'll all be getting a gift from Congress - two more years of Bush-era tax cuts. Never mind that Congress is paying for them with a credit card; they'll square up the $860 billion bill with the Obama Administration down the road.
The thing is, the biggest gifts went to the wealthiest taxpayers.
A recent analysis by Citizens for Tax Justice, a Washington-based public interest research and advocacy organization, estimates that the compromise plan agreed to between President Obama and Republicans in Congress would give 25 percent of the total value of the tax cuts to the wealthiest 1 percent of all Americans. The President had originally proposed not extending the tax cuts for those with income of more than $250,000 a year.
The CTJ analysis also estimates the impact of the compromise on a state-by-state basis. In New Jersey, that's an average benefit of $443 for the poorest 20 percent of earners and an average benefit of $93,350 for the wealthiest 1 percent.
The compromise plan extends to everyone the current federal income tax rates for two years, cuts the estate tax to below the 2009 level and cuts Social Security payroll tax deductions for all workers by 2 percent.
Income Taxes
Federal income tax rates were lowered twice during the Bush administration, in 2001 and again in 2003. Although each act had its own legislative history and impact, the two are generally lumped together in terms of their effect on taxpayers and the economy. The two acts significantly lowered federal marginal income tax rates for nearly all taxpayers. Both were set to expire at the end of 2010.
The debate in Washington has centered on whether the tax cuts should be extended and who should benefit. The president's plan favored lower and middle income families and allowed rates to rise on the wealthiest taxpayers. Congressional Republicans wanted the current tax rates made permanent for all.
Congressional Republicans prevailed-but only temporarily. The tax cuts were extended two more years, at which time they will be subject to another debate.
Estate Taxes
The debate on the estate tax centered on Obama's effort to maintain estate taxes at the 2009 level, which exempts the first $3.5 million of an estate and taxes the remainder at a rate of 45 percent. The compromise exempts the first $5 million and taxes the remainder at 35 percent.
Payroll Taxes
The compromise includes a 2 percent payroll tax cut (from 6.2% to 4.2%) for all workers. That is significantly less than the president's "Making Work Pay" proposal, which would have eliminated the 6.2 percent payroll tax on the first $6,450 ($12,900 for couples) in earnings. The impact of this 2 percent cut is greater on lower income earners because only the first $107,000 of income is subject to payroll taxes.
According to CTJ's analysis, the top 1 percent of taxpayers in New Jersey with incomes averaging $1.8 million will receive over 30 percent of these benefits from the income tax and estate tax provisions. When payroll taxes are taken into consideration, lower and middle income earners fare better. While some of the tax cuts have boosted take-home pay for middle class families, the tax cuts for the wealthiest are poorly designed short-term stimulus and, more important, ineffective long-term economic policy. Increasing the take-home pay of low- and moderate-income families will lead to more spending and a boost in demand for necessary goods and services, which in turn creates more jobs. By contrast, tax cuts for the wealthy are more likely to be tucked away as savings, which is a relatively ineffective boost to the economy.
Many have argued that tax cuts for the wealthy increase the incentive to invest or create small business jobs, and that these benefits eventually trickle down to average families. But the economic record tells a different story. Of the 10 economic expansions since 1949, the expansion between 2001 and 2009 ranks last in terms of economic growth, national investment, employment and employee pay.
Economist Mark Zandi of Moody's Analytics estimates (see Table 4 in the report) that every dollar spent making the Bush tax cuts permanent generates only 35 cents of economic activity (permanent corporate tax rate cuts yield only 32 cents). Comparatively speaking, a dollar spent on infrastructure (investing in a transit tunnel under the Hudson River, for example) yields $1.57 return on investment; a dollar spent to prevent layoffs of teachers or police or firefighters yields $1.41; and a dollar to temporarily increase food stamps yields $1.72.
It's too bad the Obama compromise will only boost paychecks, instead of lifting the entire economy.
Saturday, December 4, 2010
President Obama's Weekly Address: Tax Cuts & Unemployment Insurance
With President Obama visiting troops in Afghanistan, Vice President Biden says Congress must extend both the middle class tax cuts and unemployment insurance for the sake of those families and the broader economy.
Saturday, September 25, 2010
How Tax Brackets Work
The following blog post was written by Dave Johnson over at the website Campaign for America's Future and it explains in very simple details how tax brackets work. So don't fall for all the rhetoric surrounding the issue of whether to allow the Bush tax cuts to expire before you understand how tax brackets actually work. There is a lot of miss-information out there specifically designed to mislead the American public into believing the if the tax cuts were to expire, many would be burdened beyond their means which is simply not true:
This discussion of whether to get rid of the Bush tax cuts for the rich has been a learning experience. I have been listening on the radio and reading the comments at blogs. The main thing I am concluding is that people just do not understand how tax brackets work.
When people talk about raising taxes on people "who make more than" a certain income they really mean that they are going to raise it ONLY on the income that comes in after a certain income is received, not on the person't entire income.
Here is what I mean. Suppose they say they are going to raise taxes on incomes above $250K. People seem to think that this means if you earn $250K plus a dollar, that you owe an additional tax on the entire $250K. This is not correct. I actually hear stories about people who give away money, and do other things to avoid going "into a higher bracket" because they think they have to pay additional taxes on their entire earnings.
Here is how it really works. What happens is that the first $250K is taxed just like it has been, but anything that is made over $250K -- and only the amount over $250K -- is then taxed at the higher rate. The tax on the amount below $250K is not changed.
Example: Suppose the tax increase is 5% on income over $250K. This means that a person who reports income of $250K plus one dollar will be taxed an additional 5 cents. FIVE CENTS!
Yes, that's right, if it is 5% they are talking about then it means a 5 cent tax increase on people who make $250,001.
Let me repeat that. If you make $250,001, and they raise taxes 5% on people who make over $250K, then you will have to pay 5 cents more. Five cents. F.I.V.E. C.E.N.T.S. That is what people are so upset about. 5 cents.
If it is 5% a person making $260K might pay an additional $500. That's right, the proposed tax increase is approx. $42 a month on people making $260K, about $21,600 a month. Forty-four dollars out of twenty-one thousand. THIS is what all the right-wingers are screaming about. THIS is what all the Ayn Rand cultists are threatening to stop working over. THAT is how tax brackets work.
This discussion of whether to get rid of the Bush tax cuts for the rich has been a learning experience. I have been listening on the radio and reading the comments at blogs. The main thing I am concluding is that people just do not understand how tax brackets work.
When people talk about raising taxes on people "who make more than" a certain income they really mean that they are going to raise it ONLY on the income that comes in after a certain income is received, not on the person't entire income.
Here is what I mean. Suppose they say they are going to raise taxes on incomes above $250K. People seem to think that this means if you earn $250K plus a dollar, that you owe an additional tax on the entire $250K. This is not correct. I actually hear stories about people who give away money, and do other things to avoid going "into a higher bracket" because they think they have to pay additional taxes on their entire earnings.
Here is how it really works. What happens is that the first $250K is taxed just like it has been, but anything that is made over $250K -- and only the amount over $250K -- is then taxed at the higher rate. The tax on the amount below $250K is not changed.
Example: Suppose the tax increase is 5% on income over $250K. This means that a person who reports income of $250K plus one dollar will be taxed an additional 5 cents. FIVE CENTS!
Yes, that's right, if it is 5% they are talking about then it means a 5 cent tax increase on people who make $250,001.
Let me repeat that. If you make $250,001, and they raise taxes 5% on people who make over $250K, then you will have to pay 5 cents more. Five cents. F.I.V.E. C.E.N.T.S. That is what people are so upset about. 5 cents.
If it is 5% a person making $260K might pay an additional $500. That's right, the proposed tax increase is approx. $42 a month on people making $260K, about $21,600 a month. Forty-four dollars out of twenty-one thousand. THIS is what all the right-wingers are screaming about. THIS is what all the Ayn Rand cultists are threatening to stop working over. THAT is how tax brackets work.
Monday, August 23, 2010
NJPP Monday Minute 8/23/10: Extending Bush Tax Cuts for Top 2% Shortchanges the Economy
When Democrats in New Jersey raised the top rate on the state income tax last year, it was billed as a one-year, temporary increase on millionaires. When it expired this year, Democrats voted to renew the increase for another year. Republicans, emboldened by Gov. Christie's veto threat, said "no." They reasoned that Democrats purposefully wrote the expiration into the legislation, and so it should be allowed to expire.
In Washington, D.C., the partisans argue opposite sides of the "expiration" debate.
Republicans a decade ago enacted what came to be known as the Bush tax cuts, the signature domestic policy legislation of the Bush Administration. That legislation enacted tax cuts with an expiration date at the end of this year. Republicans want to renew the legislation. Democrats in Congress (echoing Republicans in New Jersey) argue the bill was written with an expiration date, and so it should be allowed to expire.
If it feels a little like a funhouse mirror, well, there's a reason.
None of the partisan back-and-forth is about good fiscal policy or philosophical differences. It's entirely about gaining political advantage.
But it should be pretty clear by now tax cuts haven't spurred the nation's economy. In fact, the worst economic collapse since the Great Depression happened on the heels of deep federal tax cuts. It makes almost no sense, from a policy perspective, to continue such cuts.
A study earlier this year by the non-partisan Congressional Budget Office of 11 options for stimulating economic growth placed tax cuts dead last in effectiveness. Top among the options for creating jobs and jump-starting the economy: job-creation tax credits; extended unemployment benefits and funds to help states balance their budgets with fewer cuts in services.
A proposal by President Obama would allow the tax cuts to expire for the highest-income taxpayers while temporarily extending the cuts for the other 98 percent. Effectively, the plan would restore taxes on households with incomes of $250,000 or more to the same levels as ten years ago, except for tax cuts enacted as part of the American Recovery and Reinvestment Act.
This chart from the Center on Budget and Policy Priorities uses the CBO analysis to break down the cuts by income category:
The CBO study found that allowing the tax cuts to expire for those earning $250,000 a year or more - the wealthiest 2% of all taxpayers - would provide $40 billion in public funds over the next two years to invest in economic programs to boost the economy. Extending the cuts for the high-income earner would likely spur after-tax investments that would increase the GDP by about $10 billion, the CBO said. By comparison, the Center on Budget points out using the economic multipliers in the CBO analysis, investing $20 billion into state fiscal relief and $20 billion in job-creation tax credits would generate about $32 billion in GDP. That's a tripling of the effect of extending the tax cuts.
For taxpayers in New Jersey, Obama's proposal would mean an average federal tax cut of $2,245 in 2011 taxes over what would have been owed in 2001. For 80% of New Jersey taxpayers, that's actually more than the Republican proposal for extending the tax cuts, according to a state-by-state analysis by Citizens for Tax Justice. Higher income households would still reap substantial savings: at least $10,000 for those with incomes of $350,000 or more.
It seems clear that given the anemic effect tax cuts have in stimulating the economy and the immediate impact of channeling those savings back into the economy, the Obama proposal is the middle ground that will provide revenue for improving the economy at the same time it provides relief for the greatest number of taxpayers who have been hardest hit by the economy.
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