Corporations Can Show Their Patriotism By Hiring
Former President Bush was roundly derided a decade ago for urging Americans traumatized by the September 11 attacks to go shopping. He may, in fact, have been onto something.
Certainly, shopping on its own is a facile and inadequate response to a tragedy that required a new assessment of our national security procedures and how much of our revered American civil liberties we were willing to give up to achieve security—or perhaps, a sense of security. That conversation needs to continue, especially in the area of civil liberties retrenchment.
But Bush was right about something, and that is that ours is a consumer-driven economy. This is arguably a bad basis for a modern economy; there is only so much we can consume (the obesity epidemic is only one sign of our over-indulgence). And people were foolishly taking out home equity loans on wildly over-valued properties and then using the money not to improve the property (thus, theoretically, increasing its value), but to buy other things. This is not sensible. But the reality is, our economy runs on people buying things, and with the economy in the state it’s in, people aren’t shopping anymore. Since people aren’t buying, companies aren’t creating jobs. Many corporations are making record profits and holding huge amounts of cash, but they don’t want to take on more workers because the demand is not there.
So, here’s a 10-years-after tweak of Bush’s suggestion: if corporate America wants to shows its collective patriotism, its leaders should hire someone. Hire even a dozen people, if you run a large company, or even one employee, if you own a small business. Some public officials are worried about raising taxes on the wealthy, arguing that the well-off are job creators. Well, create some jobs, first, and that argument will have more merit. And remember: taking on another employee isn’t a cash loss, ultimately, because it creates a new customer (and a taxpayer who won’t be getting unemployment insurance anymore, either). If shopping was the answer a decade ago, hiring someone is the answer now. It’s the patriotic thing to do.
By: Susan Milligan, U. S. News and World Report, September 12, 2011
Morally Inept: The New GOP Resentment Of The Poor
In a decade of frenzied tax-cutting for the rich, the Republican Party just happened to lower tax rates for the poor, as well. Now several of the party’s most prominent presidential candidates and lawmakers want to correct that oversight and raise taxes on the poor and the working class, while protecting the rich, of course.
These Republican leaders, who think nothing of widening tax loopholes for corporations and multimillion-dollar estates, are offended by the idea that people making less than $40,000 might benefit from the progressive tax code. They are infuriated by the earned income tax credit (the pride of Ronald Reagan), which has become the biggest and most effective antipoverty program by giving working families thousands of dollars a year in tax refunds. They scoff at continuing President Obama’s payroll tax cut, which is tilted toward low- and middle-income workers and expires in December.
Until fairly recently, Republicans, at least, have been fairly consistent in their position that tax cuts should benefit everyone. Though the Bush tax cuts were primarily for the rich, they did lower rates for almost all taxpayers, providing a veneer of egalitarianism. Then the recession pushed down incomes severely, many below the minimum income tax level, and the stimulus act lowered that level further with new tax cuts. The number of families not paying income tax has risen from about 30 percent before the recession to about half, and, suddenly, Republicans have a new tool to stoke class resentment.
Representative Michele Bachmann noted recently that 47 percent of Americans do not pay federal income tax; all of them, she said, should pay something because they benefit from parks, roads and national security. (Interesting that she acknowledged government has a purpose.) Gov. Rick Perry, in the announcement of his candidacy, said he was dismayed at the “injustice” that nearly half of Americans do not pay income tax. Jon Huntsman Jr., up to now the most reasonable in the Republican presidential field, said not enough Americans pay tax.
Representative Eric Cantor, the House majority leader, and several senators have made similar arguments, variations of the idea expressed earlier by Senator Dan Coats of Indiana that “everyone needs to have some skin in the game.”
This is factually wrong, economically wrong and morally wrong. First, the facts: a vast majority of Americans have skin in the tax game. Even if they earn too little to qualify for the income tax, they pay payroll taxes (which Republicans want to raise), gasoline excise taxes and state and local taxes. Only 14 percent of households pay neither income nor payroll taxes, according to the Tax Policy Center at the Brookings Institution. The poorest fifth paid an average of 16.3 percent of income in taxes in 2010.
Economically, reducing the earned income tax credit and the child tax credit — which would be required if everyone paid income taxes — makes no sense at a time of high unemployment. The credits, which only go to working people, have always been a strong incentive to work, as even some conservative economists say, and have increased the labor force while reducing the welfare rolls.
The moral argument would have been obvious before this polarized year. Nearly 90 percent of the families that paid no income tax make less than $40,000, most much less. The real problem is that so many Americans are struggling on such a small income, not whether they pay taxes. The two tax credits lifted 7.2 million people out of poverty in 2009, including four million children. At a time when high-income households are paying their lowest share of federal taxes in decades, when corporations frequently avoid paying any tax, it is clear who should bear a larger burden and who should not.
By: Editorial, The New York Times, August 30, 2011
Grover Norquist, The GOP, And The Payroll Tax Cut
For the last day or so, a few of us have been trying to get Grover Norquist’s group to say whether GOP opposition to extending the payroll tax cut — which Obama wants — constitutes a “tax increase” and a violation of Norquist’s infamous anti-tax pledge.
Norquist’s spokesman is now clarifying that the group isn’t yet willing to say.
Norquist’s pledge not to raise taxes has been signed by virtually every Republican in Congress, and Norquist has clearly stated that the failure to extend the Bush tax cuts would constitute a “tax increase.” The question now is this: With Republicans now opposing an extension of the payroll tax cut, which impacts workers but not employers, will Norquist’s group also declare the GOP opposition tantamount to a tax increase that violates the pledge?
John Kartch, a spokesman for Americans for Tax Reform, tells me that “one would have to see the final legislation” before making the call one way or the other, in order to determine ”what is the net effect on total taxes.”
The problem here, though, is that this doesn’t deal with the possibility of the payroll tax cut simply expiring through Congress doing nothing. If Congress doesn’t extend the payroll tax cut, as Republicans want, it will simply expire on January 1st.
So it’s fair to ask whether Norquist’s group — which wields great influence over Republicans in Congress — thinks that Republicans who favor doing nothing and letting the payroll tax cut expire are hiking taxes and violating the group’s pledge. And for now, the group isn’t prepared to say.
By: Greg Sargent, The Washington Post Plum Line, August 23, 2011
Brazen: Eric Cantor’s Chutzpah
Eric Cantor’s op-ed laying out the Republican agenda is filled with the kind
of distortions you’d expect, but this passage deserves special commendation.
After decrying a National Labor Relations Board Ruling, he continues:
Such behavior, coupled with the president’s insistence on raising the top tax rate paid by individuals and small businesses, has resulted in a lag in growth that has added to the debt crisis, contributing to our nation’s credit downgrade.
So Cantor is arguing that S&P downgraded U.S. debt because of President
Obama’s future plans to increase the top tax rate. That’s such a mind-boggling
claim that even Cantor cannot bring himself to put it in quite these terms. So
instead he breaks it into a series of steps.
First, he claims that the future promise of upper-bracket tax hikes “has
resulted” in a lag in growth. (Question: if the mere possibility of future tax
hikes is enough to depress growth, why don’t we go ahead and just raise taxes?
If we’re going to get the slower growth anyway, might as well get the revenue,
right?)
Second, the lag in growth “caused” by hypothetical future tax hikes added to
the debt crisis.
Third, the debt crisis contributed to the downgrading of the debt.
It’s a fairly brilliant bit of rhetoric. After all, S&P specifically cited the Republican threat to fail to lift the debt ceiling and Republican refusal
to consider any tax increases as the cause of the downgrade. cantor has
found a way to present Obama’s support for higher taxes as the cause of the
downgrade. That’s so brazen I almost have to admire it.
By: Jonathan Chait, The New Republic, August 22, 2011
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 