Tag Archives: Congress

U.S. Incomes Fall Sharply and Millionaires Don’t Pay Taxes

Welcome to the wonderful world of the Rich….

Where more and more Millionaires don’t pay any taxes while the average U.S. income plunges…

You can thank the GOP for this and, again, thank the Dems for letting them get away with it.

It’s becoming increasingly clear, neither Party is looking out for the Middle Class or the average American.  In Washington today, it’s all about how to help the Rich get more and keep more.

As my friend Phillip reminded me, it’s looking more and more like 1937 again.

President Obama could have been FDR, but I’m afraid he’s on the verge of becoming Herbert Hoover.

From Reuters (emphasis mine):

U.S. incomes plummeted again in 2009, with total income down 15.2 percent in real terms since 2007, new tax data showed on Wednesday.

The data showed an alarming drop in the number of taxpayers reporting any earnings from a job — down by nearly 4.2 million from 2007 — meaning every 33rd household that had work in 2007 had no work in 2009.

Average income in 2009 fell to $54,283, down $3,516, or 6.1 percent in real terms compared with 2008, the first Internal Revenue Service analysis of 2009 tax returns showed. Compared with 2007, average income was down $8,588 or 13.7 percent.

Average income in 2009 was at its lowest level since 1997 when it was $54,265 in 2009 dollars, just $18 less than in 2009. The data come from annual Statistics of Income tables that were updated Wednesday.

The average tax rate was 11.4 percent, up from 10.5 percent in 2007, the Internal Revenue Service data showed.

No income tax was paid by 1,470 of the 235,413 taxpayers earning $1 million or more in 2009, compared with the 959 taxpayers with million-dollar-plus incomes who paid no income taxes in 2007.

via U.S. incomes fell sharply in 2009 | Reuters.

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Robert Reich is none too happy with the President or Dems in Congress

Great article from Robert Reich.

He pretty much nails it…

I can’t begin to tell you how disappointed I am in the President and the Democrats for not standing up for our core values and fighting to do the right thing to restore the economy.  They are being bullied by the Tea Party minority and don’t seem to have the nerve to stand up to them….

Here is an excerpt and a link to the full article:

Many months ago, when Republicans first demanded spending cuts and no tax increases as a condition for raising the debt ceiling, the President could have blown their cover. He could have shown the American people why this demand had nothing to do with deficit reduction but everything to do with the GOP’s ideological fixation on shrinking the size of the government — thereby imperiling Medicare, Social Security, education, infrastructure, and everything else Americans depend on. But he did not.

And through it all the President could have explained to Americans that the biggest economic challenge we face is restoring jobs and wages and economic growth, that spending cuts in the next few years will slow the economy even further, and therefore that the Republicans’ demands threaten us all. Again, he did not.

The radical right has now won a huge tactical and strategic victory. Democrats and the White House have proven they have little by way of tactics or strategy.

By putting Medicare and Social Security on the block, they have made it more difficult for Democrats in the upcoming 2012 election cycle to blame Republicans for doing so.

By embracing deficit reduction as their apparent goal – claiming only that they’d seek to do it differently than the GOP – Democrats and the White House now seemingly agree with the GOP that the budget deficit is the biggest obstacle to the nation’s future prosperity.

The budget deficit is not the biggest obstacle to our prosperity. Lack of jobs and growth is. And the largest threat to our democracy is the emergence of a radical right capable of getting most of the ransom it demands.

Robert Reich is none too happy with the President or Dems in Congress.

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Tuning Out the Democrats

There is a long and interesting article by pollster Stanley Greenberg in the New York Times today that I wish everyone would read.  It attempts to explain why people support the agenda of the Democratic Party, but don’t vote for them…

It’s enlightening and very scary…

The premise is basically that people don’t trust the Dems to actually do anything and they think government is too corrupted to work anyway…

Very scary stuff….

Here is a brief excerpt.  Please click the link for the entire article:

 

Oddly, many voters prefer the policies of Democrats to the policies of Republicans. They just don’t trust the Democrats to carry out those promises.

When we conducted our election-night national survey after last year’s Republican sweep, voters strongly chose new investment over a new national austerity. They thought Democrats were more likely to champion the middle class. And as has become clear in the months since, the public does not share conservatives’ views on rejecting tax cuts and cutting retirement programs. Numerous recent polls have shown that the public sides with the president and Democrats on raising taxes to get to a balanced budget.

But in smaller, more probing focus groups, voters show they are fairly cynical about Democratic politicians’ stands. They tune out the politicians’ fine speeches and plans and express sentiments like these: “It’s just words.” “There’s just such a control of government by the wealthy that whatever happens, it’s not working for all the people; it’s working for a few of the people.” “We don’t have a representative government anymore.”

This distrust of government and politicians is unfolding as a full-blown crisis of legitimacy sidelines Democrats and liberalism. Just a quarter of the country is optimistic about our system of government — the lowest since polls by ABC and others began asking this question in 1974. But a crisis of government legitimacy is a crisis of liberalism. It doesn’t hurt Republicans. If government is seen as useless, what is the point of electing Democrats who aim to use government to advance some public end?

In earlier periods, confidence in the economy and rising personal incomes put limits on voter discontent. Today, a dispiriting economy combined with a well-developed critique of government leaves government not just distrusted but illegitimate.

via Tuning Out the Democrats – NYTimes.com.

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Reagan Aid: Chunk of GOP Either Stupid, Crazy, Ignorant or Craven Cowards

It’s been a long time since I agreed with a Republican about anything, but this certainly sounds right to me….

From RawStory.com:

Historian Bruce Bartlett, a former domestic policy adviser to President Ronald Reagan, sat down with MSNBC’s Chris Matthews on Wednesday to discuss the national debt.

Bartlett said it was a myth that tax cuts are the key to prosperity, noting that Reagan raised the capital gains rate. He was also skeptical that Congress would be able to solve the current budget crisis.

“I think at this point, there’s nothing that can pass the House of Representatives,” he said.

“I think a good chunk of the Republican caucus is either stupid, crazy, ignorant or craven cowards, who are desperately afraid of the tea party people, and rightly so.”

via Bruce Bartlett: Chunk of GOP either stupid, crazy, ignorant or craven cowards | Raw Replay.

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Daily Kos: What might FDR have done about the debt limit?

I keep thinking and saying that Obama had an opportunity to do as much for the country as FDR and blew it.  And continues to blow it.  This article supports that theory.  It’s long but worth reading.

I’m becoming more and more disappointed in the President and how meekly he handles the GOP and how little he is standing firm on core Democratic principles.  When he agreed to bargain with cutting Social Security, Medicare and Medicaid, he started to lose me…

This article really compares and contrasts FDR and President Obama extremely well.

Here is a brief excerpt to the article by Dante Atkins at Daily Kos:

The only recent president who has faced an economic crisis more prolonged or more severe than the one our economy faces was the progressive legend Franklin Delano Roosevelt, who faced down both the Great Depression and the Nazis with equal aplomb and bested them both, and the contrast between how Obama is handling his economic showdowns with Republicans entering his reelection and how Roosevelt handled a similar time in his presidency could not be more clear. Obama has wanted to bring the nation above politics and create a grand bargain that incorporates ideas from both parties in an attempt to prove that our country is not as divided as our politics suggests, and he has, in his own words, been repeatedly left at the altar by Republicans with no conscience who want nothing more than to destroy him and his presidency. President Roosevelt, by contrast, was ideological: he was convinced that his way of managing the economy—the Keynesian approach of government as the spender of last resort—was right, and the austerity methods of the Republicans were wrong.

Unlike Obama, Roosevelt did not accept the conservative meme that macroeconomics and microeconomics have the same fundamental principles and that government has to “live within its means like families do.” Instead, Roosevelt understood that economic downturns reduce national income and that reduced national income leads to further downturn, creating a deflationary cycle that can only be broken when government steps in to put people back to work and break the cycle—a consideration that came second to balancing the budget.

via Daily Kos: What might FDR have done about the debt limit?.

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Are Republicans Committing Treason?

Very interesting article from AlterNet.com.

I’ll post an excerpt, without comment, and a link to the full article.

Then you may discuss among yourselves….

Once upon a time, in a land that now seems to have been populated by tooth fairies and unicorns, there was a political party that had a set of core beliefs to which they actually adhered.

Among them was that actually balancing the budget, as opposed to just talking about it, was sacrosanct. Slow change, while necessary, had to be balanced against the traditions of the United States, ones that had mostly served us well over two centuries.

Foreign military adventures should be limited to our national security interests. And one of the single most important components of diplomacy was protecting the economic interests not only of an elite few, but of the great many Americans who toiled in our factories and fields.

This party was known as the Republican Party, and while one might have disagreed with them on their policy prescriptions to cure any particular US ill, one could at least see some logic in their beliefs and understand that they – with some obvious exceptions from time to time (ahem, Joseph McCarthy, ahem) – were doing what they thought was right for the United States of America.

Today, this once respectable organization has turned into nothing so much as a collective id the size of a David Vitter Pampers shopping spree. When facing changes to this nation that make them uncomfortable, they choose national hate. When facing ideological worship versus the greatness of the US, the former always wins the day. When facing a choice of what is good for the US or their personal bank accounts, they inevitably go with the latter.

Every. Single. Time.

via Are Republicans Committing Treason? | | AlterNet.

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‘Super Congress’: Debt Ceiling Negotiators Aim To Create New Legislative Body

Now this is downright scary….

It complete removes the majority of our elected officials from the deliberative process.

Congress isn’t working today, but this is not the way to go…

This is how to start a Banana Republic- which is probably what Boehner has in mind….

It also sounds like the goal is to further protect the Rich and screw the Middle Class.  Using this process they are already targeting ending the Mortage Interest Deduction and the deductions for Retirement Savings.

Could destroying Social Security, Medicare and Medicaid be far behind?

This doesn’t sound like a Super Congress;  it sounds like a Coup d’etat.

From the Huffington Post:

Debt ceiling negotiators think they’ve hit on a solution to address the debt ceiling impasse and the public’s unwillingness to let go of benefits such as Medicare and Social Security that have been earned over a lifetime of work: Create a new Congress.

This “Super Congress,” composed of members of both chambers and both parties, isn’t mentioned anywhere in the Constitution, but would be granted extraordinary new powers. Under a plan put forth by Senate Minority Leader Mitch McConnell (R-Ky.) and his counterpart Majority Leader Harry Reid (D-Nev.), legislation to lift the debt ceiling would be accompanied by the creation of a 12-member panel made up of 12 lawmakers — six from each chamber and six from each party.

Legislation approved by the Super Congress — which some on Capitol Hill are calling the “super committee” — would then be fast-tracked through both chambers, where it couldn’t be amended by simple, regular lawmakers, who’d have the ability only to cast an up or down vote. With the weight of both leaderships behind it, a product originated by the Super Congress would have a strong chance of moving through the little Congress and quickly becoming law. A Super Congress would be less accountable than the system that exists today, and would find it easier to strip the public of popular benefits. Negotiators are currently considering cutting the mortgage deduction and tax credits for retirement savings, for instance, extremely popular policies that would be difficult to slice up using the traditional legislative process.

House Speaker John Boehner (R-Ohio) has made a Super Congress a central part of his last-minute proposal, multiple news reports and people familiar with his plan say

via ‘Super Congress’: Debt Ceiling Negotiators Aim To Create New Legislative Body.

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Eric Cantor: Virginia’s Young Gun Misfires | Richmond Times-Dispatch

This is not the kind of publicity any Congressman wants in his own District.  It’s beyond hope for Cantor to lose in his heavily Republican District, but this type of publicity will have a lot of people-on both sides- re-evaluating Cantor.

Great article from Jeff Shapiro in Eric Cantor’s hometown Newspaper, “The Richmond Times Dispatch:”

Virginia’s young gun apparently shot himself in the foot.

Eric Cantor this past week had an opportunity to define himself for an audience beyond the Beltway as more than a rigid conservative with one word in his vocabulary: no. Instead, the U.S. House majority leader, seen as a deal breaker rather than a deal maker, may have only trivialized himself.

Having walked out of Joe Biden-led budget-and-deficit talks; undercut John Boehner on a big fix and engaged Barack Obama in verbal fisticuffs over the fine print of a possible deal, Cantor looked more the insipid pill than the professional politician. It was, David Weigel wrote for the online publication Slate, the “official Newt-ification of Eric Cantor.”

Cantor’s avuncular, bow-tied mentor-predecessor, Tom Bliley, isn’t sure how his protégé’s shtick is playing outside Washington, crush of crummy press notwithstanding. “He’s a hero to his conference and the right,” says Bliley. “But how far it would go with the independents — I don’t know. The jury’s still out on that.”

Events of the past week may have gone a long way toward casting Cantor the wrong way. Cantor wants to be seen as serious-minded. A trunk-load of degrees, stints in law and finance and a business-fed fundraising machine say as much. But his hissing match with Obama and spending cuts-only approach to budget-balancing strikes Republican plutocrats in his hometown as evidence that Cantor is serious all right — about politics, not governing.

That’s probably why Cantor, in a hurry-up effort at damage control, told The Associated Press, a news service with the widest possible reach, that he meant no disrespect to Obama. Cantor also attempted a show of solidarity with Boehner at a joint appearance that was more PDA — public display of affection — than news conference.

Bliley, a former Commerce Committee chairman-turned-lobbyist who has schmoozed Cantor on behalf of convenience store owners over a cap on debit card swipe fees, dismisses talk of a Cantor challenge to Boehner for the speakership. Cantor — as he did for Bliley’s seat, biding his time as a Henrico delegate in the General Assembly — will “wait his turn,” says Bliley.

But could events mean that Cantor, labeled the “shadow speaker” by New York magazine, won’t have to wait very long? “I don’t want to get into that speculation,” says Bliley. “That’s like asking me what’s going to happen in six months.”

In politics, that’s many lifetimes. And if one flashed before Cantor’s eyes as he was methodically demonized the first part of the week, another rolled out at week’s end, as he and Boehner conferred privately with the treasury secretary, Timothy Geithner, and White House chief of staff Bill Daley.

The point being that Cantor — his literal Elvis-like lip curl yielding to a figurative fat lip — remains relevant if only because of his rank: second-in-command of a House Republican Conference infused by tea partiers, who, despite Cantor’s no-no-a-thousand-times-no stance on new taxes, know that his record on fiscal issues is, at best, mixed. He previously voted to raise the debt ceiling, backed the deficit-financed Medicare drug benefit for seniors, two unpaid-for wars, the bank bailout and angled for Obama stimulus bucks for high-speed rail.

Having outmaneuvered Cantor for now, the president — alternately the smooth-talking conciliator and punch-in-the-nose Chicago pol — appears to be practicing an old-school rule: after stranding your adversary on a limb, you have to help him crawl back in.

via Jeff E. Schapiro: Virginia’s young gun misfires | Richmond Times-Dispatch.

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Obama Warns Eric Cantor ‘Don’t Call My Bluff’ As Debt Talks Stall

It’s about time someone came down on Eric Cantor…

Bravo, President Obama!

From HuffingtonPost.com.  Emphasis mine:

 

Lawmakers and the White House had what nearly every party is describing as a “tough” and “testy” meeting on the debt ceiling Wednesday afternoon, culminating in a stormy exchange between the president and House Majority Leader Eric Cantor (R-Va.).

It was the fifth straight day of talks, but the first in which attendees, speaking on background, were willing to admit that steps were taken backwards. According to multiple sources, disagreements surfaced early, in the middle and at the end of the nearly two-hour talks. At issue was Cantor’s repeated push to do a short-term resolution and Obama’s insistence that he would not accept one.

“Eric don’t call my bluff. I’m going to the American people on this,” the president said, according to both Cantor and another attendee. “This process is confirming what the American people think is the worst about Washington: that everyone is more interested in posturing, political positioning, and protecting their base, than in resolving real problems.”

Cantor, speaking to reporters after the meeting, said that the president “abruptly” walked off after offering his scolding.

“I know why he lost his temper. He’s frustrated. We’re all frustrated,” the Virginia Republican said.

Democratic officials had a different interpretation. “The meeting ended with Cantor being dressed down while sitting in silence,” one official said in an email. “[The president] said Cantor could not have it both ways of insisting on dollar-for-dollar and still not being open to revenues.”

via Obama Warns Cantor ‘Don’t Call My Bluff’ As Debt Talks Stall.

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Mexicans No Longer Immigrating to US?

Another issue the Republicans have beaten to death…

And another issue whose impact has been drastically exaggerated…

See a pattern?f

And if this trend continues, who is going to do all the jobs Americans refuse to do themselves?

From AlternNet.com:

Immigration from Mexico – which provided the largest number of immigrants to the U.S. during this latest wave – has all but dried up. Douglas S. Massey, co-director of the Mexican Migration Project at Princeton, told the New York Times that fewer Mexicans want to migrate northward today than at any time since at least the 1950s. “No one wants to hear it, but the flow has already stopped,” Massey told the Times, referring to illegal entries. “For the first time in 60 years, the net traffic has gone to zero and is probably a little bit negative.”

A common misperception that helps fuel hostility toward immigrants is that there is a never-ending pool of people dying to come here and if we don’t hold the line we’ll be overrun. The reality is that we have always had a modest flow of new immigrants punctuated by large but finite spikes from one country or another. Individuals have all sorts of reasons for emigrating, but when large numbers migrate from a single country or region, it’s always been in response to some kind of shock in their country of origin, be it civil strife or pestilence or drought or war or economic collapse or natural disaster. That’s true whether we’re talking about the Irish fleeing the Great Potato Famine, Russian Jews fleeing the pogroms or Vietnamese boat people fleeing war in Southeast Asia. The Wikipedia entry for Swedish emigration to America explains why their numbers peaked just after the Civil War:

There was widespread resentment against the religious repression practiced by the Swedish Lutheran State Church and the social conservatism and class snobbery of the Swedish monarchy. Population growth and crop failures made conditions in the Swedish countryside increasingly bleak.

This is true of the wave of Mexican immigration that now appears to be coming to an end. According to a study by the Pew organization, Mexican immigration “grew very rapidly starting in the mid-1990s, hit a peak at the end of the decade, and then declined substantially after 2001.” According to some estimates, 9 percent of the Mexican population pulled up roots and headed north during this period.

What happened to spur that movement? A few things. First, that timeline corresponds perfectly with the damage wrought in Mexican labor markets by NAFTA (the North American Free Trade Agreement). Employment in Mexico’s agricultural sector dropped by 16 percent between 1993, the year before NAFTA went into effect, and 2002. Service sector employment was stable — it didn’t absorb many of those workers. And while manufacturing increased in the maquiladoras between 1994 and 2000 — when it peaked with about 800,000 jobs – the maquiladora zone shed 250,000 of those jobs over the next three years, most of them outsourced to China. Make capital mobile, make goods mobile and people will have no choice but to mobilize themselves.

via Mexicans No Longer Immigrating to US? (What Will Xenophobes Freak Out About Now?) | | AlterNet.

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