Tag Archives: Bush tax cuts

a Budget to Benefit the 1%


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The GOP Budget In One Chart

By         ThinkProgress War Room              on Apr 13, 2012 at 4:38 pm

A Budget to Benefit the 1 Percent

Tax Day is coming up on April 17, so it’s worth remember who will pay more in taxes under the Ryan-Romney Republican budget — the poorest Americans — and whose taxes will be cut in dramatic fashion — the very wealthiest Americans.

If the percentages aren’t shocking enough, the Center on Budget and Policy Priorities reports that the Ryan-Romney budget would give each millionaire a $265,000 tax cut on top of the Bush tax cuts for the wealthy, which it of course also extends.

It should also be noted that Rep. Paul Ryan (R-WI) has promised to close trillions in unspecified tax loopholes, which would likely result in tax increases for millions more middle class Americans than are depicted in this chart.  We can’t say for sure, however, because Ryan refuses to name a single one of the loopholes he’d close.

IN ONE SENTENCE: Instead of ending Medicare in order to slash taxes on millionaires, it’s time to pass the Buffett Rule so millionaire start paying their fair share.

Evening Brief: Important Stories That You May Have Missed

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American taxpayers are subsidizing dirty coal development to the tune of hundreds of billions of dollars.

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Bank of America proves how heartless they are. Again.

Why the Buffett Rule is more than just a gimmick.

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Apr 9, 2012: NEW VIDEO: President Reagan Backs the Buffett Rule

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Politics:Main Street Rage


At town hall events across the country, Americans are confronting members of Congress who voted for the House Republicans’ radical budget, which effectively ends Medicare, slashes Medicaid, hacks away at domestic spending, and extends tax breaks for the wealthy. The entire House GOP caucus except for four lawmakers voted for Rep. Paul Ryan‘s (R-WI) budget earlier this month, claiming a mandate from the November elections to drastically reduce domestic s pending. But Republicans went beyond any semblance of responsible budget tightening to a radical deconstruction of core pillars of the health, safety, and security of the country. Recent polls show Americans are firmly opposed to Ryan’s budget proposal, with over 70 percent of Republicans opposing cuts to Medicare, while over 80 percent of Americans overall disapprove of cuts to the social safety net program. And Americans are clearly demonstrating their displeasure with their GOP lawmakers, who are in their home districts for this month on recess from Congress. Last week, as lawmakers began holding town hall sessions in their districts, a number of Washington commentators wondered, “If the Ryan budget is so unpopular, where are the town-hall meltdowns?” This week,&nb sp;in the Washington commentariat got their answer as town hall anger went from a few isolated incidents to a daily deluge of passion and temper from Americans frustrated with their out-of-touch representatives. The town halls, like the opposition to the GOP budget more generally, were slow to begin in part because Ryan was so quick to act. While President Obama and congressional Democrats allowed for over a year of debate, study, and discussion on their health care reform law, House Republicans unveiled and voted on their plan to radically transform Medicare in a matter of weeks, giving opponents almost no time to mobilize against it or educate Americans about its effects. Moreover, those opposed to Ryan’s plan don’t have the constant cheerleading of right-wing talk radio and Fox News, which directly helped organize and promote the 2009 town halls. Nonetheless, as part of what the Progress Report has dubbed a Main Street Movement of average Americans upset that conservatives want to cut social services and public investment for everyday people while lavishing tax breaks on the wealthy and corporations, Americans are standing up to their lawmakers on their own.

MEDICARE: Many of the town hall protests this month have targeted freshmen Republicans from swing districts who were voted into office in last November’s GOP wave. While voters may have wanted to send a message to Washington by electing a Republican, they have been dismayed by how radically right-wing their new congressmen have turned out to be. One of the first documented town hall protests last week was at a stop of freshman Rep. Patrick Meehan (R-PA). During the campaign, Meehan assured his future constituents that he wouldn’t vote for Ryan’s “agenda,” but once in office, he did just that. “Meehan was asked about entitlement reform and Medicare at nearly every town hall he went to” last week, with constituents’ anger visible. By the weekend, freshmen Reps. Robert Dold (R-IL), Charlie Bass&nb sp;(R-NH), Sean Duffy (R-WI), and Lou Barletta (R-PA) had all faced constituent anger of their own over the GOP’s Medicare privatization plan. At a town hall in Hillsborough, NH, the first six questions Bass faced from constituents were about his vote to privatize Medicare. One attendee pointed out that what the Republicans are doing is pursuing a “divide and conquer”strategy by eliminating Medicare for future generations while keeping it for current seniors. At a town hall in Shell Late, WI, Duffy got into a heated exchange with constituents when he insisted that Ryan’s plan does not effectively replace Medicare with a voucher system, but attendees repeatedly corrected him. Later, Duffy got huffy; frustrated by his constituents’ questions about his presentation, he told attendees, “When you have your town hall you can stand up and give your presentation.” Yesterday, cons tituent anger reached a boiling point at a town hall in Orlando for freshman Rep. Daniel Webster (R-FL) when “bedlam” erupted as constituents angrily peppered him with questions about his vote for privatizing Medicare. Webster tried to avoid answering many of the questions, and eventually, conservative hecklers fired back at those trying to hold Webster accountable. Police officers flanked Webster and had to tell the crowd to quite down.

TAXES: The other main theme constituents have been pressing their lawmakers on this month is tax fairness. Ryan’s budget would preserve the Bush tax cuts for the wealthiest two percent of Americans while cutting corporate tax rates — a proposal even Ryan’s own constituents are not happy about. During a town hall meeting in Milton, WI, last week, a constituent who described himself as a “lifelong conservative” asked Ryan about the effects of growing income inequality in our nation. The constituent noted that huge income disparities contributed to the Great Depression and the Great Recession, and thus wanted to know why the congressman was “fighting to not let the tax breaks for the wealthy expire.” Ryan responded by saying, “we do tax the top,” eliciting a a chorus of boos and grumbling from attendees. Yesterday, Ryan faced chants of “Ryan stop lying!” at a town hall in Kenosha, WI, which drew a capacity crowd inside and over a 100 protesters outside. “Do not renew the Bush tax credit for the wealthy,” one man demanded. Meanwhile, at a town hall in Salem, NY, Rep. Chris Gibson (R-NY) faced similar outbursts. In answering a question, Gibson said that Americans pay higher taxes because “here are people in the country that are not paying taxes because they’re illegal [immigrants].” At this point, a town hall attendee cried out, ” You mean like GE?! ” forcing the congressman to say that he agreed that the company needs to pay its fair share. Audience members at Dold’s town hall said they “don’t believe chopping 10 percentage points off the highest corporate tax rate will create jobs.” At Duffy’s town hall, one attendee said she agrees with Ryan’s concerns about the deficit and “that’s why we have to raise taxes on the rich, and raise taxes on the corporations who have never been richer than they have now. And you guys just cut their taxes again.” “Oh yeah!” another constituent responded.

‘EVERY RIGHT TO SPEAK’: During the 2009 town halls, which mostly targeted Democrats, Republican lawmakers repeatedly praised tea party activists for their disruptions at town halls, saying it was important to let them have their voices heard. But now that they’re on the receiving end of constituents’ anger, it’s unclear how much Republicans will embrace this democratic process. Ryan abruptly left a town hall yesterday ahead of schedule, citing “security concerns” from hecklers. But Ryan went through with a tow n hall in 2009 despite credible threats against union members at the event. At a town hall in 2009, when a heckler disrupted Ryan and promoted boos from other audience members, Ryan told the crowd, ” She has every right to talk , every right to speak.” In an interview with Fox News at the time, Ryan said Obama’s policies had driven people to the town halls, which he praised as a grass roots outpouring of “people up in arms” about bad policies. “[T]his is amazing,” Ryan told a largely supportive town hall in Aug. 2009. Meanwhile, conservatives are trying to drown out progressives at today’s town halls, with American Action Network — a relatively new conservative front group founded by a group of Wall Street bankers — loading up conservative activists& nbsp; with softball questions and talking points to bolster Republican lawmakers on the Ryan plan.

Properly tax millionair​es and billionair​es …from ColorOfChange.org


In a stirring speech last Wednesday, President Obama reminded us of our common values — that as Americans, we believe in shared sacrifice during tough times, and shared prosperity when times are good.

This Tax Day, we’ve seen those values flipped on their head. While America’s millionaires and billionaires pay the lowest tax rate in 80 years,1 Congress is slashing critical services like food stamps, family planning and foreclosure assistance that keep poor and working folks afloat. It’s immoral and un-American.

We’re with President Obama: it’s past time that we ask the richest Americans to start contributing their fair share. Rep. Jan Schakowsky‘s Fairness in Taxation Act would do exactly that, helping to balance the budget and stop deep cuts by raising taxes on millionaires and billionaires.

There’s real momentum behind this idea — 81% of Americans support increasing taxes on the wealthy.2 Opposing this idea should be a liability for politicians of any party — but Congress needs to hear from us. It starts with you, right now. Please sign our petition asking your Congressional representatives to co-sponsor the Fairness in Taxation Act:

http://act.colorofchange.org/go/809?akid=1955.1174326.thD39r&t=2

Many in Congress compare the federal budget to a family’s budget. They argue that because the federal government is in so much debt, the nation is broke. And just like broke families need to make hard choices, the government does as well, so they advocate cutting programs that support poor and working folks, along with children, the elderly, and those who need special medical care.

But this is one of several ways their argument falls apart. When times get tough, families don’t abandon the grandparents and the kids because we can’t afford them — we try to bring in more income. A key problem in Washington is that politicians lack the will to tax millionaires and billionaires to bring in more revenue, so they throw grandma, grandpa, and the kids out on the street and under the bus.

The Fairness in Taxation Act attempts to address this by asking those who make $1 million in a year to pay a 45% income tax while billionaires would pay taxes at a 49% rate.3 That’s a big change over the current system, where millionaires and billionaires pay a maximum of 35% and last year paid an average of only 17% of their income in taxes.4 Rates this low haven’t been seen since the 1930s.

Schakowsky’s bill is projected to raise more than $75 billion in new revenues — more than enough to stave off unnecessary cuts to important programs while also helping to reduce the deficit.5 Please urge Congress to support this bold plan:

http://act.colorofchange.org/go/809?akid=1955.1174326.thD39r&t=2

As our friends at CREDO Action have noted, “Over the years, Republican lawmakers have very successfully promoted the morally bankrupt and economically baseless dogma of ‘tax cuts for the rich, massive spending cuts for everyone else.'” It’s critical that we offer a drastically different economic vision.

That’s because the national budget is more than a roadmap to spending; it’s a statement of values and priorities. Properly taxing millionaires and billionaires would send a clear message that in America, we value feeding the poor and taking care of the sick and elderly. It’s about making sure that everyone has ample opportunity to be successful. As President Obama said, this is fundamentally patriotic.

This is why every member of Congress needs to answer a simple question: will you oppose fair tax rates for the wealthy, or will you stand with everyday Americans who are struggling in this tough economy?

This is more than just a moment to pass a critical piece of legislation — it’s an opportunity to reclaim the nation’s economic narrative. Many have been fooled by the right into thinking that America is broke — but the nation isn’t broke so long as we can raise revenues. Asking the very wealthy and large corporations to pay their fair share is a key part of the conversation that’s been ignored for too long under the GOP‘s “starve the government” philosophy.

Please join us in asking Congress to support Rep. Schakowsky’s tax on millionaires and billionaires, and ask your friends and family to do the same:

http://act.colorofchange.org/go/809?akid=1955.1174326.thD39r&t=4

Thanks and Peace,

— James, Gabriel, William, Dani, Matt, Natasha and the rest of the ColorOfChange.org team

April 19th, 2011

Help support our work. ColorOfChange.org is powered by YOU–your energy and dollars. We take no money from lobbyists or large corporations that don’t share our values, and our tiny staff ensures your contributions go a long way. You can contribute here:

http://www.colorofchange.org/donate

References:

1. “Income tax in the United States,” Wikipedia

http://act.colorofchange.org/go/810?akid=1955.1174326.thD39r&t=7

2. “Sanders introduces millionaire surtax to slash deficit,” Raw Story, 3-11-2011

http://act.colorofchange.org/go/811?akid=1955.1174326.thD39r&t=9

3. “Schakowsky Introduces Bill to Tax Millionaires and Billionaires,” Press Release, 3-16-2011

http://act.colorofchange.org/go/812?akid=1955.1174326.thD39r&t=11

4. “Super rich see federal taxes drop dramatically,” Associated Press, 4-17-2011

http://act.colorofchange.org/go/813?akid=1955.1174326.thD39r&t=13

5. See reference 3

As One Budget Battle Ends, Another Begins …from -Joan Entmacher and Judy Waxman, National Women’s Law Center


Thank you for all you have done to help protect women and their families. We are counting on you in the struggles to come to fight these efforts to destroy programs that millions of Americans need every day.

from …

Joan Entmacher

Vice President, Family Economic Security

National Women’s Law Center

Judy Waxman

Vice President for Health and Reproductive Rights

National Women’s Law Center

As you’ve probably heard, Congress has approved and the President signed a spending bill for the remainder of the federal government’s current fiscal year. And thanks to your support, we were able to safeguard (and even increase) funding for some vital programs.

Under this plan, which funds programs through the end of September, the budget for Head Start will increase, allowing 60,000 low-income children to continue receiving a valuable jumpstart to their education. Plus, we put the brakes on the effort to take away funding for Planned Parenthood and other critical family planning services across the country. If anti-choice politicians had prevailed, many women would have had nowhere to turn for contraception and preventive health screenings.

Unfortunately, however, these actions came at a high price: the 2011 budget agreement forbids the District of Columbia from using its own local tax dollars to give low-income women access to abortion services they need, putting an already vulnerable population at increased risk. And the agreement includes cuts to health, education and human services programs that will be detrimental to women and their families.

But the fight we had over this year’s budget is dwarfed by what we’re facing farther down the road. The House Republican majority just voted today for a budget for 2012 and beyond that would give more tax breaks to millionaires and corporations while eviscerating Medicaid, Medicare and other programs vital to women.

In supporting Representative Paul Ryan’s budget proposal, the House voted to:Cut, then cap, Medicaid, which would cause millions of vulnerable women to lose their health coverage. End Medicare as we know it, replacing the current guaranteed insurance system with a voucher program that would stick seniors with higher health care costs.

Cut taxes for the wealthy and corporations, permanently extending the Bush-era tax cuts, capping the top personal income tax, extending the December 2010 reduction in the estate tax for multi-million dollar estates, and lowering corporations’ tax rate from 35 percent to 25 percent.

Put Social Security cuts on a fast-track in Congress, placing millions of women and others who rely on Social Security benefits at risk.

Other provisions in the bill would slash funding for domestic programs such as child care, Head Start, K-12 education, Pell grants, family planning and other women’s health services, job training, housing and energy assistance, and services for the elderly.

The list goes on, but here’s the bottom line: this budget would unravel the fragile safety net for millions of Americans even as it puts TRILLIONS of dollars in the pockets of corporations and the wealthy. This isn’t a fiscal plan — it’s an attack on the very idea that our society should protect its most vulnerable members and on public structures that give ALL Americans a chance at a better life.

Thank you for all you have done to help protect women and their families. We are counting on you in the struggles to come to fight these efforts to destroy programs that millions of Americans need every day.

Sincerely,

Joan Entmacher

Vice President, Family Economic Security

National Women’s Law Center

Judy Waxman

Vice President for Health and Reproductive Rights

National Women’s Law Center

Budget:A Better Path To Prosperity


As the nation edges closer to hitting the debt ceiling, President Obama delivered at George Washington University yesterday a new plan to reduce the deficit by $4.4 trillion over the next 12 years — a rebuttal to the GOP’s “Path to Prosperity” plan sponsored by House Budget Committee Chairman Paul Ryan (R-WI). Matching targeted spending cuts with less drastic entitlement reform and a more realistic tax policy, Obama’s plan, as Center for American Progress notes, “puts us on a much more sustainable path, and most importantly, would do so without putting further burdens on seniors and an already-struggling middle class.” While a big step away from his 2012 budget, Obama’s plan stands in stark contrast to Ryan’s “draconian” vision that gouges out the budget at their expense. Trading cuts and reforms that overly burden vulnerable populations for tax cuts for corporations and the wealthy, Ryan’s budget earned rebuke even from conservative economists. Former President Ronald Reagan’s budget director called it “a measure of how far off the deep end Republicans have gone.” Obama did not mince words when drawing the contrast between the GOP vision and his “compassionate” alternative. In response, House Republicans elected to decry what they saw as the president’s political, unfriendly treatment rather than offer the merits of their policy. Hearkening back to the 1995 government shutdown, Republicans are now hinting that Obama’s strong words might be enough to derail budget negotiations — no matter how valid the proposal.

OBAMA’S VISION: Rather than relying exclusively on deep spending cuts, President Obama’s deficit plan offers a framework to more responsibly reduce the deficit over the next 12 years through a multi-pronged approach. To achieve the $4 trillion in deficit reductions, Obama called for $2 trillion in spending cuts while maintaining “investments” in “schools, highways, bridges and research” that help maintain global competitiveness. However, aware of the ballooning defense budget, Obama also called to cut $400 billion from national security over 10 years — a move the GOP has specifically avoided. On entitlement programs, Obama asked both parties to “work together now to strengthen Social Security” and proposed saving $340 billion on Medicare and Medicaid by 2021 through increasing efficiency. “We will reduce wasteful subsidies and erroneous payments” and “cut spending on prescription drugs by using Medicare’s purchasing power to drive greater efficiency,” he said. In stark contrast to Ryan’s Medicare voucher plan, Obama’s Medicare plan builds on the cost containment reforms in the health care reform law by expanding IPAB, a 15-person commission tasked with advising Congress on how to reduce excess growth in Medicare if costs exceed GDP per capita plus one percent but will do so without rationing care or raising premiums or cost sharing. Obama’s clearest policy declaration, however, centered on his rebuke of the Bush-era tax cuts. “We cannot afford one trillion dollars in tax cuts for every millionaire and billionaire in our society. We can’t afford it. And I refuse to renew then again,” he said. Opting to move towards his fiscal commission’s policies, Obama plans to allow those tax cuts to expire at the end of 2012 and would raise an additional $1 trillion by overhauling the tax code to lower rates and eliminate tax breaks. And should all these deficit reduction efforts miss their targets, Obama called for a fail-safe “trigger mechanism ” that would force “across-the-board spending reductions if the ratio of debt-to-GDP is not stabilized by 2014 and projected to decline for the rest of the decade.” While Obama’s plan does propose significant cuts and misses opportunities to add additional revenues and find secure additional savings in the Pentagon budget, it provides a more “balanced” deficit plan than offered by the GOP. In response, U.S. bonds and the dollar rose based on hopes that Obama’s plan would “shore up the United States’ credit-worthiness and the dollar’s reserve status.” Oil recovered by 1.5 percent.

RYAN’S ‘PESSIMISTIC’ PLAN: A driving factor behind Obama’s plan was to provide a “compassionate” alternative to slash-and-burn Republican proposal offered last week. “This debate over budgets and deficits is about more than just numbers on a page,” Obama said. “It’s about the kind of future we want.” Dubbing Ryan’s plan as a “pessimistic” vision that “is less about reducing the deficit than it is about changing the basic social compact in America,” Obama blasted Republicans for implementing cuts that allow our infrastructure to “crumble” and “collapse” and, by slashing billions from Pell Grants, for telling “bright young Americans” that “we can’t afford” to support their education. He then lambasted Ryan’s Medicare voucher program for “end[ing] Medicare as we know it.” “Instead of guaranteed health care, you will get a voucher. And if that voucher isn’t worth enough to buy insurance, tough luck — you’re on your own,” he said. Indeed, according to the non-partisan CBO, seniors will end up paying significantly more for their health benefits if House Republicans have their way. He viewed the GOP’s plan to rob Medicaid of $771 billion over the next decade by turning it into a block grant program as a vision that tells 50 million Americans, including “poor children,” “middle-class families” with disabled children, and low-income seniors “to fend for themselves.” But “worst of all,” he said, was the Republican vision increase the burden on the vulnerable just so a corporate tax rate can be ten points lower and so we can “afford more than $1 trillion in new tax breaks for the wealthy.” Criticizing the tax break he’d receive while asking seniors to pay “$6,400” more in health costs, Obama said “that’s not right, and it’s not going to happen as long as I’m President.”

POLITICS OF WHINING: Invited to the address, House Republicans bristled under Obama’s rebuke and quickly rejected his plan as a “political broadside from the campaigner-in-chief.” Almost completely ignoring his policies, House Republicans took their turn at the podium to lambast the president for engaging in “partisan rhetoric .” House Majority Whip Kevin McCarthy (R-CA) insisted that Obama’s plan was “light on the specifics” but “didn’t lack shameless political attacks and scare tactics.” Ryan claimed Obama’s “demagoguery” was “exploiting people’s emotions of fear, envy, and anxiety.” Indeed, Ryan gave a detailed account of his hurt feelings, tracing them from “excited” to “naively optimistic” to “disappointed” then to “sad,” and hinted that Obama’s rebuke “sure doesn’t help” Republicans forge a budget consensus. Now “sincerely disappointed” at Obama’s “partisan broadsides against us,” Ryan is also suggesting that his hurt feelings will make it “that much harder for the two parties to come together with mutual respect of one another to get things done.” House Majority Leader Eric Cantor (R-VA), however, did offer House Republicans’ sole policy response: “We, as a conference, won’t raise taxes” on the wealthy.