Prevailing conservative wisdom dictates that businesses need tax cuts—and investors need capital gains tax cuts—to get the economy moving. But two very well-executed articles on wages and taxes published recently suggest that targeting tax cuts at business executives may do little to improve the dismal unemployment picture.
The Washington Post offers a startling analysis of income disparity, noting that the gap between the very rich and the rest of us has grown dramatically in the past few decades, reaching current levels that have not been seen since the Great Depression. In 2008, the Post reports, the top one-tenth of one percent of earners took in more than a tenth of the personal income in the United States. But the moneyed class is not dominated by professional athletes or big-name artistic performers or even hedge fund managers, the Post found. Instead, it is due to a big increase in executive compensation, even as real wages for some of their workers have dropped:
The top 0.1 percent of earners make about $1.7 million or more, including capital gains. Of those, 41 percent were executives, managers and supervisors at non-financial companies, according to the analysis, with nearly half of them deriving most of their income from their ownership in privately-held firms. An additional 18 percent were managers at financial firms or financial professionals at any sort of firm. In all, nearly 60 percent fell into one of those two categories.
The New York Times has a fascinating story that serves as an unwitting companion piece to the Post story. Corporate executives, the paper reports, are clamoring for a tax holiday to encourage them to bring their offshore profits back to the United States. And the money in question is big, the Times notes: Apple has $12 billion in offshore cash, while Google has $17 billion, and Microsoft, $29 billion. The companies with money sitting offshore argue that if the federal government were to offer them a huge tax break—say, a one-year drop from 35 percent to 5.25 percent—the businesses would bring the money home and operate as a private-sector economic stimulus.
However, the Times notes:
(T)hat’s not how it worked last time. Congress and the Bush administration offered companies a similar tax incentive, in 2005, in hopes of spurring domestic hiring and investment, and 800 took advantage. Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks, according to a study by the nonpartisan National Bureau of Economic Research.
Who needs a tax cut, then? The U.S. economy is very much consumer-driven; companies aren’t hiring, many business owners say, because people aren’t buying. The past behavior of corporations that have received huge tax cuts has not necessarily been to use the money to hire more people; the Bush-era tax cuts have been in place for a decade, and the unemployment rate is still 9.1 percent. And executive compensation has grown. Executives may feel entitled to earn more and more if their companies are doing well and expanding. But without customers, those companies will go bust.
By: Susan Milligan, U. S. News and World Report, JUne 20, 2011
June 23, 2011
Posted by raemd95 |
Businesses, Class Warfare, Congress, Conservatives, Consumers, Corporations, Economic Recovery, Economy, GOP, Government, Ideology, Income Gap, Jobs, Labor, Middle Class, Politics, Republicans, Taxes, Unemployment, Wealthy | Apple, Bush Tax Cuts, Capital Gains, CEO's, Executive Compensation, Google, Income, Investors, Microsoft, National Bureau of Economic Research, Private Sector, Recession, Stocks, Tax Breaks, Wages Workers |
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Mitt Romney is just like you: He doesn’t have a job. And that’s hilarious!
Mitt Romney sat at the head of the table at a coffee shop here on Thursday, listening to a group of unemployed Floridians explain the challenges of looking for work. When they finished, he weighed in with a predicament of his own.
“I should tell my story,” Mr. Romney said. “I’m also unemployed.”
According to Jeff Zeleny, the room full of unemployed people laughed at this, which would make it the first recorded instance of someone laughing at something Mitt Romney intended to be funny.
But should they have laughed at poor Mitt Romney? Like so many Americans, the longer Mitt Romney has gone without a job, the worse his chances of finding new employment have become. There are not very many openings in his chosen field, and he has no other marketable skills. Poor Mitt Romney is in many respects a modern-day “forgotten man.”
Should Mitt Romney just rest on his laurels, waiting for some government handout? No! In fact, his insistence on getting another job in government is exactly what is preventing him from swallowing his pride and taking any work that is available. He’s too good to work at Walmart now? He should stop looking to Washington for a solution to his problem, get some part-time minimum wage work, and consider going back to school. There are many fine for-profit institutions that offer night courses for adults just like him.
Mitt Romney needs to pick himself up by his bootstraps and quit complaining.
By: Alex Pareene, Salon War Room, June 16, 2011
June 17, 2011
Posted by raemd95 |
Class Warfare, Conservatives, Economy, GOP, Government, Governors, Income Gap, Jobs, Middle Class, Mitt Romney, Politics, Public Employees, Republicans, Right Wing, Unemployed, Unemployment, Wealthy | Florida, Government Workers, Job Retraining, Minimum Wage, Politicians, Public Workers, Social Safety Nets, Walmart, Workers |
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The battle has resumed in Wisconsin. The state supreme court has allowed Governor Scott Walker to strip bargaining rights from state workers.
Meanwhile, governors and legislators in New Hampshire and Missouri are attacking private unions, seeking to make the states so-called “open shop” where workers can get all the benefits of being union members without paying union dues. Needless to say this ploy undermines the capacity of unions to do much of anything. Other Republican governors and legislatures are following suit.
Republicans in Congress are taking aim at the National Labor Relations Board, which issued a relatively minor proposed rule change allowing workers to vote on whether to unionize soon after a union has been proposed, rather than allowing employers to delay the vote for years. Many employers have used the delaying tactics to retaliate against workers who try to organize, and intimidate others into rejecting a union.
This war on workers’ rights is an assault on the middle class, and it is undermining the American economy.
The American economy can’t get out of neutral until American workers have more money in their pockets to buy what they produce. And unions are the best way to give them the bargaining power to get better pay.
For three decades after World War II – I call it the “Great Prosperity” – wages rose in tandem with productivity. Americans shared the gains of growth, and had enough money to buy what they produced.
That’s largely due to the role of labor unions. In 1955, over a third of American workers in the private sector were unionized. Today, fewer than 7 percent are.
With the decline of unions came the stagnation of American wages. More and more of the total income and wealth of America has gone to the very top. Middle-class purchasing power depended on mothers going into paid work, everyone working longer hours, and, finally, the middle class going deep into debt, using their homes as collateral.
But now all these coping mechanisms are exhausted — and we’re living with the consequence.
Some say the Great Prosperity was an anomaly. America’s major competitors lay in ruins. We had the world to ourselves. According to this view, there’s no going back.
But this view is wrong. If you want to see the same basic bargain we had then, take a look at Germany now.
Germany is growing much faster than the United States. Its unemployment rate is now only 6.1 percent (we’re now at 9.1 percent).
What’s Germany’s secret? In sharp contrast to the decades of stagnant wages in America, real average hourly pay has risen almost 30 percent there since 1985. Germany has been investing substantially in education and infrastructure.
How did German workers do it? A big part of the story is German labor unions are still powerful enough to insist that German workers get their fair share of the economy’s gains.
That’s why pay at the top in Germany hasn’t risen any faster than pay in the middle. As David Leonhardt reported in the New York Times recently, the top 1 percent of German households earns about 11 percent of all income – a percent that hasn’t changed in four decades.
Contrast this with the United States, where the top 1 percent went from getting 9 percent of total income in the late 1970s to more than 20 percent today.
The only way back toward sustained growth and prosperity in the United States is to remake the basic bargain linking pay to productivity. This would give the American middle class the purchasing power they need to keep the economy going.
Part of the answer is, as in Germany, stronger labor unions — unions strong enough to demand a fair share of the gains from productivity growth.
The current Republican assault on workers’ rights continues a thirty-year war on American workers’ wages. That long-term war has finally taken its toll on the American economy.
It’s time to fight back.
By: Robert Reich, RobertReich Blog, June 15, 2011
June 16, 2011
Posted by raemd95 |
Class Warfare, Collective Bargaining, Congress, Conservatives, Democracy, Economy, Equal Rights, GOP, Gov Scott Walker, Governors, Ideologues, Ideology, Jobs, Labor, Lawmakers, Middle Class, Politics, Public Employees, Right Wing, State Legislatures, States, Union Busting, Unions, Wealthy, Wisconsin, Wisconsin Republicans | Anti-Union, Germany, Income, National Labor Relations Board, Wages, Wisconsin Supreme Court, Workers Rights |
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Dozens of Walkerville activists marched from the Wisconsin state Capitol to DOA Secretary Mike Huebsch’s offices at noon on Wednesday, June 15, to protest the former GOP state rep’s archaic Capitol security measures.
CMD learned while examining the drafting files at the Legislative Reference Bureau that Huebsch’s DOA gave the drafting orders for the collective bargaining section of the budget bill. Huebsch’s top political appointee, Cynthia Archer, served as a top aide to Scott Walker when he was Milwaukee County Executive.
The group roared “Who’s House? Our House!” as they entered the Department of Administration building on East Wilson Street. Protesters weren’t able to schedule a meeting with Huebsch – considered by many to be Governor Scott Walker’s top ally, and the architect of his 2011-2012 budget – but still managed to hang “unWANTED: Mike Huebsch” signs in his personal office and throughout the building.
Pilar Schiavo, an activist with the People’s Rights Campaign and Nurses United, led the peaceful procession. She stressed the danger of overlooking Huebsch’s involvement with Governor Walker’s anti-middle class agenda, and the need to repel his efforts to crush “the public’s right to assemble.”
“We feel like it’s important to pull Mike Huebsch out of the shadows. He’s really been responsible for the shutting down democracy within the capitol, and he’s had his hand in creating the budget,” said Schiavo.
One protestor taped an “unWANTED” sign, which read “Suspect is believed to be dangerous and armed with the unlawful eviction of The People from the Capitol” to Huebsch’s desk chair. With protestors still inside the building, a DOA receptionist began taking down the posters, citing their “offensive” nature.
The mood remained hopeful despite yesterday’s announcement from the Supreme Court legalizing Governor Walker’s collective bargaining legislation. Schiavo reminded the crowd that in spite of recent setbacks, victory looms on the horizon for the Wisconsin workers’ rights movement.
“People need to remember that this is a long fight, and that we’ve been successful already. We were able to hold that law for months. This is a long term struggle – the Walker agenda has been in the works for 30 years.”
By: Eric Carlson, Center for Media and Democracy, June 15, 2011
June 16, 2011
Posted by raemd95 |
Class Warfare, Collective Bargaining, Conservatives, Democracy, Elections, Freedom, GOP, Gov Scott Walker, Government, Ideologues, Ideology, Labor, Middle Class, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Union Busting, Unions, Voters, Wisconsin, Wisconsin Republicans | Collective Bargaining, Cynthia Archer, Mike Huebsch, Nurses United, Peoples Rights Campaign, Walkerville, Wisconsin Budget, Wisconsin Dept of Administration, Wisconsin Politics, Wisconsin Supreme Court, Workers Rights |
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Crowds of protesters who flocked to the Wisconsin state Capitol June 14 anticipating Assembly action on the divisive collective bargaining bill, which essentially eliminates collective bargaining for public workers, were shocked to learn the Supreme Court had reinstated the law in a hotly contested 4-3 decision.
Speakers at a planned 5:00 p.m. rally were quick to lift the faltering spirits of the Wisconsin Democracy Movement. Mahlon Mitchell, president of the Professional Fire Fighters of Wisconsin, told the crowd of thousands, “We’re going to be here every day. We didn’t pick this fight, but if it’s a fight they want, it’s a fight they’re going to get.”
Mary Bell, a middle school English teacher from Wisconsin Rapids serving as president of the Wisconsin Education Association Council, urged protestors to hold Republican legislators accountable for their actions by voting in various recall elections across the state.
“This extreme agenda has to be seen for what it is and what it does to our Wisconsin values. Change begins when we stand up and speak out for what we believe in,” Bell said.
Republicans Signal Approaching Court Ruling, File Fake Candidates
The 4-3 ruling reflected the sharp conservative-liberal divide that many believed would determine the outcome of the Court’s decision. In her dissent, Chief Justice Shirley Abrahamson attacked the implicit “partisan slant” in Justice Prosser’s concurrence and the shaky rhetorical foundation of the majority opinion.
In hastily reaching judgment, Justice Patience D. Roggensack, Justice Annette K. Ziegler, and Justice Michael J. Gableman author an order, joined by Justice David T. Prosser, lacking a reasoned, transparent analysis and incorporating numerous errors of law and fact,” wrote Abrahamson. “This kind of order seems to open the court unnecessarily to the charge that the majority has reached a pre-determined conclusion not based on the facts and the law, which undermines the majority’s ultimate decision.”
The timing of the decision surprised those who had been keeping an eye on collective bargaining proceedings. Assembly Speaker Jeff Fitzgerald announced just yesterday that comittee hearings would be held Tuesday on the collective bargaining proposal, and that his Republican caucus was prepared to vote on it irregardless of a Supreme Court decision. The hearings were delayed several times throughout the day, raising a few eyebrows at the Capitol despite Fitzgerald’s categorical denial of any wrongdoing or insider information.
Some protesters did in fact speculate that not all is as it seems.
“The way they passed the budget bill initially was wrong, and the fact they did this behind closed doors is wrong,” said Sarah Fuelleman, a writer at the University of Wisconsin-Madison Department of Ophthalmology, adding, “I’m not a conspiracy theorist, but I’m starting to become one.”
Lauren Schmidt, a 22-year-old home health care worker from Madison, didn’t mince words.
“I think its horseshit,” she said, before joining a contingent of protesters screaming and blowing vuvuzelas outside the window of Rep. Stephen Nass’s office, where the Republican lawmaker quietly ignored, and at times playfully provoked, impassioned Walkervillians.
Tuesday’s other big piece of news — that Republicans officially filed “fake Democrat” candidates in six Democratic primaries for the upcoming recall elections — didn’t come as much of a surprise. Republicans have openly admitted their intention of delaying the elections by fielding puppet candidates, but have been less forthcoming about the tactic’s collateral damage. According to a Milwaukee Journal Sentinel investigation, the GOP plan would cost taxpayers upward of $428,000.
Budget Cuts Start to Hurt
Teachers, steel workers, firefighters, and other union workers began their Capitol Square march at 11:00 a.m., hoisting signs that read “Recall Walker” and “RIP Democracy.” Many expressed concern that various budget provisions would leave their families reeling financially.
Stacy Farasha Rhoads, adance instructor from Milwaukee who wore an all pink outfit to symbolize her opposition to proposed Planned Parenthood Cuts, worried that her two children, one of whom is autistic, would suffer from reduced funding for state-provided health services.
“I’m a single mother. I’ve got two children who are on Badgercare and I have a daughter with special needs. So all of the services that my family needs on a regular basis are under attack,” said Rhoads.
Rhoads marched in solidarity with other parents and families anticipating economic hardship, such as Chris Breihan, a part time teacher at Milwaukee Area Technical College. Proposed cuts to Family Care threaten to prevent her 21-year-old special needs son from attending an adult day services program recently recommended to him.
The mood was relaxed for most of the day, as Assembly Democrats and Republicans spent the majority of the afternoon behind closed doors at party caucus meetings. At a midday press conference, Representative Peter Barca and his Democratic caucus announced their intention to offer “a couple dozen” amendments to Governor Walker’s proposed budget, as part of their effort to push back against budget cuts targeting working class families.
At the end of the rally, firefighters led protesters in a “hands around the Capitol,” ceremony. The Beatles’ “Revolution,” written in response to the anti-war protests of the late 1960s, blared from event loudspeakers as pro-union activists took their places along the square. Hand in hand, the group sang a Sconnified version of “We Shall Overcome,” signaling their intent to keep fighting back against Governor Walker’s anti-middle class agenda.
Debora Marks, a 1st grade teacher at Lindbergh elementary, vowed to keep returning to Walkerville for “as long as it takes.” The frequent trips to the Capitol haven’t, however, distracted her from what she considers her top priority.
“My job is about something far more important than Scott Walker: its about educating future generations, and that’s something teachers can not stop doing, whether the Governor wants us to or not,” said Marks.
By: Eric Carlson, Center for Media and Democracy, June 15, 2011
June 15, 2011
Posted by raemd95 |
Class Warfare, Collective Bargaining, Conservatives, Democracy, Elections, GOP, Gov Scott Walker, Government, Governors, Ideologues, Ideology, Lawmakers, Middle Class, Planned Parenthood, Politics, Public Employees, Republicans, Right Wing, State Legislatures, States, Union Busting, Unions, Wisconsin, Wisconsin Republicans | David Prosser, Jeff Fitzgerald, Peter Barca, Professional Firefighters of Wisconsin, Protesters, Shirley Abrahamson, Stephen Nass Wisconsin Primaries, Wisconsin Democracy Movement, Wisconsin Education Association Council, Wisconsin Legislature, Wisconsin Recall, Wisconsin Supreme Court, Workers |
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