American Patriots Know That Federal Income Taxes on Middle-Income Americans Near Historic Lows

American Patriots Know That Federal Income Taxes on Middle-Income Americans Near Historic Lows

Federal taxes on middle-income Americans are near historic lows, our updated report explains, and that’s true whether you’re talking about federal income taxes or all federal taxes.

When it comes to income taxes, a family of four in the exact middle of the income spectrum will pay only 5.3 percent of its 2013 income in federal income taxes next year, according to a new analysis by the Urban-Brookings Tax Policy Center.

Average income tax rates for these typical families have been lower during the Bush and Obama Administrations than at any time since the 1950s (see graph).  Taxes were particularly low from 2008 to 2010 because of the Recovery Rebate Credit and the Making Work Pay Tax Credit, which have since expired.

When it comes to overall federal taxes, households in the middle fifth of the income spectrum paid an average of 11.1 percent of their income in taxes in 2009, the latest year for which data are available, according to the Congressional Budget Office (CBO).  This is the lowest on record in data that go back to 1979.
When CBO publishes data for more recent years (such as 2013), overall federal average tax rates on this middle group will likely be higher — though still low historically — because they will reflect the expiration of Making Work Pay and other temporary tax cuts, including the payroll tax cut that expired at the end of last year.

The expiration of the payroll tax cut is the biggest tax change for most people in 2013.  As this table shows, the tax cut helped workers in a wide range of income groups, and its expiration is a key contributor to the slowdown in economic growth that CBO forecasts for 2013.

Yet those wacky conservatives keep claiming that we have to keep large tax cuts for wealthy corporations and billionaires to stimulate economic growth, or have new tax cuts. There is no relationship between low taxes for those skimming huge profits off the backs of American workers. Why are cons lying about taxes. They want to starve thew government safety net - Medicare, Social Security, workmen's comp, unemployment insurance  - pretty much anything that does not fire a missile. The reason we safety net is because history shows us that markets are often good and create wealth, but they are not perfect - as any adult who was around in 2007 will know. The U.S. and it's imperfect markets have a long history. Patriots learn from history, conservatives either rewrite it or pretend it didn't happen.

The Patriotic Truth About Middle-Class Taxes and Corporations

The Patriotic Truth About Middle-Class Taxes and Corporations

Transplanting Taxes from Corporations to the Rest of Us
American taxpayers are increasingly picking up the tab for unpaid corporate taxes.

Today, corporate profits are setting all-time records while middle class families continue to struggle financially. These trends are intertwined.

Whether you’ve clicked to send your tax forms to the IRS along the cyber-highway or dropped your return in the old-fashioned blue mailbox, you’ll be paying extra to cover the growing amount of taxes that the nation’s clever corporations are shunting onto individual taxpayers.

Officially, the U.S. corporate tax rate stands at 35 percent, but in practice it’s far lower. Corporations have lots of tricks in their box of tax-avoidance tools.

In the 1950s, corporations paid nearly a third of the federal government’s bills. Last year, thanks to the antics of Pfizer and other examples of overly creative accounting, corporate income taxes accounted for less than a tenth of Uncle Sam’s total revenue.

Consider Pfizer’s track record. The drugmaker increased its offshore profits by $10 billion in 2012, boosting its offshore stash to $73 billion — all of it untaxed by Uncle Sam. Like most pharmaceutical companies, Pfizer registers its patents in a low-tax offshore haven, and then charges a high price for the use of this “intellectual property.” Doing so, it shifts all of its U.S. profits offshore, avoiding U.S. taxes and bloating its overseas bank account.

Pfizer’s tax dodging prowess has earned it a gold medal in the sport, but it has also drawn unwanted attention from the Securities and Exchange Commission. The SEC wrote to Pfizer last year asking them to explain four years of large losses in their U.S. operations despite reporting about 40 percent of their sales on American soil. Undeterred by the SEC investigation, Pfizer added a fifth year of U.S. losses to the string in 2012.

Imagine for a moment one of the physicians that prescribes Pfizer’s products taking their diploma off their office wall, carefully packing it up, and shipping it to a bank vault in the Cayman Islands. That diploma represents the doctor’s intellectual property. Without it, they would not be able to practice their profession.

After each visit, patients approaching the check-out desk would be given their bill and an envelope to mail their check to a post office box in the Cayman Islands. Faced with confused looks, the receptionist cheerfully explains, “Well, we have to pay for the use of the skills represented by the diploma, which is housed in the Caribbean.”

The corporate offshore tax dodge that shifts $90 billion of tax expenses onto individual taxpayers this Tax Day is just that crazy. Just like having a doctor’s diploma parked in the Cayman Islands does nothing to improve the quality of care, having corporate profits transferred from America to tax haven nations provides no enhanced benefits in terms of product quality or service. In other words, there is no economic value. It only serves to add more to already-overflowing corporate coffers.

In the 1950s, corporations paid nearly a third of the federal government’s bills. Last year, thanks to the antics of Pfizer and other examples of overly creative accounting, corporate income taxes accounted for less than a tenth of Uncle Sam’s total revenue. This dramatic shortfall shows up in two ways — federal budget deficit growth and the growing trend of individual taxpayers paying an increased share of the costs of government.

Only about two in every thousand American businesses are even eligible to play this game, and far fewer actually do. Most business owners are proud to pay taxes they know support schools, good infrastructure, and national security.

If tax-dodging corporations were people, they might say thanks to the responsible taxpayers who are picking up their share of unpaid taxes. But since they aren’t human, allow me to say on their behalf, “Have a Nice Tax Day.”

This work is licensed under a Creative Commons License

Scott Klinger is an Associate Fellow at the Institute for Policy Studies

But conservatives keep claiming that taxes are too high and are preventing economic growth. Unlike the years following the new Deal and up through the 1970s, when corporations were somewhat responsible about the social contract between workers and consumers, now they let the workers have the crumbs and corporate plutocrats take must of the pie. And big institutional investors get a big share too. On the other hand workers are more productive than ever yet their wages are not keeping up with inflation. Our roads, bridges, cities and schools could use some infrastructure improvement, but that is slow in coming because conservatives, who caused the deficit and the recession, say the deficit is more important than rising revenue. 

Americans Want a Back-to-Work Alternative to Creepy Paul Ryan's Austerity Scheme

Americans Want a Back-to-Work Alternative to Creepy Paul Ryan's Austerity Scheme

When it comes to budgets, debts and deficits and, most importantly, the future of the US economy, there are two distinct visions competing in Washington.Members of the Congressional Black Caucus speak against proposed tax cuts, December 10, 2010. (AP Photo/Charles Dharapak)

Both cost a lot of money.

But they seek to steer the United States in radically different directions.

One vision, that of House Budget Committee chairman Paul Ryan, spends our federal largesse on tax breaks for the rich and schemes to divert Medicare funds into the accounts of private insurers. It’s classic crony capitalism. But that’s not the worst of it. Because Ryan’s plan comes wrapped in an austerity model for squeezing government spending and investment, it threatens to stall an economy that is only beginning to grow at a rate sufficient to create needed jobs.

On Thursday, the House voted 221-207 for the Ryan budget. The Republican majority was reasonably solidified in support of the proposal, although ten sincere fiscal conservatives opposed a measure that focuses far more of satisfying the demands of Wall Street donors than actual deficit reduction.

Democrats overwhelmingly opposed the Ryan budget. That can and should be read as a rejection of the ugliest face of austerity. But it is not the case that congressional Democrats are united when it comes to presenting an alternative to Ryanism. And that’s a problem because voters don’t just want Congress to reject austerity; polling data makes it clear that they want an alternative that is focused on job creation.

The best alternatives to the Ryan budget have been presented by the Congressional Black Caucus and the Congressional Progressive Caucus. The two groups, which have a significant overlap in their membership, saw their proposals rejected by the House on Wednesday. Ryan’s Republican colleagues opposed both plans, as did dozens of cautious Democrats who have yet to recognize the importance of challenging the lie of austerity with a no-holds-barred growth agenda.

The political reality, of course, is that this week’s House votes settle nothing with regard to the budget priorities that will ultimately frame the nation’s future. “Once again, Republicans in the House have passed a budget that the American people do not support, and has no real chance of becoming law,” explained Congressman Mark Pocan, a Wisconsin Democrat who serves on the Budget Committee. “This is a budget whose math is bogus, but whose consequences are real and serious for our middle class families in Wisconsin. From destroying jobs, to raising taxes on the middle class, to turning Medicare into a voucher system, it makes the wrong decisions and reflects the wrong priorities… But the biggest problem with the GOP budget is that it fails to tackle the greatest threat to our long-term deficit—our need to grow our economy and create jobs. With 12 million Americans still unemployed, and millions more who are underemployed, the best budget we can put forth is one that fosters job growth.”

It will be in the wrangling between the House and Senate, and the broader national debate, that the fiscal and economic priorities of the nation will finally be shaped.

And it is important to recognize that, in that broader national debate, Ryan and the House majority have already lost.

The American people have no taste for austerity.

They want a growth agenda. The new Gallup Poll finds that 72 percent of Americans support spending federal money on a program to “put people to work on urgent infrastructure repairs.” Seventy-two percent of Americans also favor “a federal jobs creation law that would spend government money for a program that would create more than one million new jobs.”

Those positions are antithetical to everything Ryan is proposing.

That’s a growth agenda that is the opposite of austerity.

It is a growth agenda that mirrors what the Congressional Progressive Caucus has proposed with its “Back to Work” budget.

The CPC budget plan balances the budget far more efficiently and effectively than does Ryan’s—as it eschews the pay-to-play giveaways to campaign donors in the insurance, pharmaceutical and financial-services industries—and stimulates job creation. That’s because the CPC proposal rejects austerity in favor of growth. The focus on growth is essential to the CPC plan, which is wholly distinct from other Democratic plans that seek to strike an often incoherent balance between smart investments and Ryan’s austerity.

Believing in conservative austerity, Ryan's austerity or Romney austerity is like believing that flesh eating trolls live under all bridges. It is all based on the fetid fantasies of the conservative bubble, not sound economics. America cannot afford austerity. Democrats have already given them austerity-lite, which is why the economy is growing, but slower than it would if we did away with austerity all-together.

How Republicans Are Using Austerity To Tank The Economy or Why Do Conservatives Hate America

How Republicans Are Using Austerity To Tank The Economy or Why Do Conservatives Hate America

Congress will not avert the dreaded sequester – the government’s latest wheeze to deal with the phony “deficit crisis.” Never mind that the very same deficit is projected to fall under $1 trillion this year for the first time since 2008, according to the CBO. Politicians and the chattering classes rail about the deficit, while in the meantime, Americans can’t find jobs. Our neighbors, friends and fellow citizens have suffered from a persistently high unemployment rate of 8 percent through 2012, and worse, an underemployment situation of around 15 percent. Why doesn’t this very real crisis generate concern? Why all of the fuss about a nonexistent emergency?

Conservatives talk indignantly about government profligacy to justify their deficit obsession. But our large deficits (which peaked some three years ago) can almost always be expected to result from recessions because of what economists call “automatic stabilizers.” These are safeguards that have been in place since the Great Depression – things like unemployment insurance, welfare, food stamps and the like. These programs were introduced precisely to avoid the kind of human misery a great many of our citizens experienced during that earlier catastrophe. These income transfers are also the reasons -- not the bailouts to our banks -- why the economy has escaped the kind of freefall experienced in the early 1930s.

A major consequence of this policy choice, which is supported by the vast majority of Americans, is that budget deficits in the US are largely automatic and non-discretionary. So recessions create budget deficits, much as private sector booms reduce deficits.

True, we are not booming by any stretch today. But even against this sluggish backdrop, over the last three years, the deficit has experienced a 30 percent drop as a percentage of GDP. That suggests the patient is slowly recovering, but not fast enough. The current rate of job creation is not only insufficient to replace the jobs lost since the crisis, but can’t even keep up with labor force growth. At the recent pace of job creation, we only fall further behind. Withdrawing the medicine prematurely risks creating a relapse in the economy.

And there is much more to do. We need to use this period of historically low interest rates to borrow so as to improve our productive capacity as an economy going forward. As anybody who wanders around major American cities can see, the country has fallen into disrepair. Just ride in any New York City taxi cab and see how well your back survives the journey. But before we can rebuild our pothole-ridden roads, repair our decaying grids, or deal with energy or climate change, we must challenge and reject all of the nonsense about long-term budget deficits, national bankruptcy or insolvency, and even “fiscal responsibility” that we are hearing from Congress and the chattering classes.

The real fiscal responsibility lies in understanding how we invest in the future with jobs, education and decent roads and bridges. Letting our country fall apart, on the other hand, is the height of irresponsibility.

If the US continues to make headway on the jobs front, it will do even better on the deficit front, which is why any sensible economist will tell you that deficit reduction per se should never be an object of government policy. In a market economy, employment is the main source of income for most of the population. Economic growth creates jobs. Without paying jobs, individuals are unable to pay taxes.  In capitalist, wage-labor societies, therefore, joblessness creates a long list of other kinds of waste that Congress never talks about—the breakup of families, rising alcoholism and drug addiction, higher crime rates, absolute and relative poverty, damage to social status and self-respect, adverse psychological and physical health effects, stress, suicide, crime and other anti-social behavior.

During WWII, the government’s deficit -- which one year reached 25 percent of GDP -- raised government’s public debt ratio above 120 percent, much higher than the ratio expected to be achieved by 2015. Further, in spite of the siren songs warning of the evils of high national public debt, US growth in the postwar period was robust—it was the golden age of US economic growth. And guess what? The debt ratio came down rather rapidly, mostly not due to budget surpluses and debt retirement, but rather due to rapid growth that raised the denominator of the debt ratio.

More here, Pundits Still Getting Sequester and Budget Debates Wrong and here,  The most striking and disconcerting thing about the latest round in the budget war is that the debate within the Republican Party is proceeding on the basis of completely false premises.

Republicans Got Their Lessons in Sequester Propaganda From The Soviet Politburo

Republicans Got Their Lessons in Sequester Propaganda From The Soviet Politburo

Barring a miracle of bipartisan cooperation over the next 12 hours, the sequester — a series of across-the-board spending cuts — will kick in tonight.

Part of the Budget Control Act of 2011, the sequester will likely shave 700,000 jobs and 0.6 percent worth of growth off the economy. Its cuts were designed to be so crude and damaging they would incentivize all sides to replace it with more well-thought out deficit reduction.

But thanks to the GOP’s single-minded fixation on spending cuts over tax increases, that effort failed. Republicans spent the last two years treating every debate over the deficit as if it were occurring in a historical vacuum, accusing Obama of failing his own commitment to balance, repeatedly scoffing at new tax revenue, and insisting that “it’s finally time” to “get serious” about cutting spending, even as trillions of dollars in cuts mounted.

In short, the GOP has repeatedly thrown the spending cuts from each previous deal down the memory hole, demanding more and more while claiming that Obama and Democrats have unreasonably wanted to balance those cuts with new revenue.

Between the spring 2011 budget fight, the debt ceiling debacle, and the so-called “fiscal cliff,” the United States has cut almost $1.5 trillion in spending over the next decade, plus saving roughly $200 billion more in lower interest payments.

In fact, at the Wall Street Journal breakfast featured in the video, reporter Lori Montgomery brought up all these previous cuts point blank with Rep. Paul Ryan (R-WI). Ryan’s rejoinder encapsulated the entire bizarre kabuki dance: “That was last session. We’re going forward now.” Montgomery and the other reporters literally busted out laughing in response. (Ryan’s logic doesn’t even work on its on terms. The new tax revenues in the fiscal cliff deal were part of the last congressional session as well, but he wants to count those.)

Meanwhile, on the opposite side of the budget ledger, the country will raise only $630 billion in new tax revenue over the next decade. That’s the context in which Senate Minority Leader Mitch McConnell (R-KY) insists “the tax issue is finished,” even as both he and Speaker John Boehner (R-OH) claim to be seeking a “balanced” agreement. As a result, everything from Medicare, to the military, food safety, air traffic control, nutritional support for women and infants, disaster relief, law enforcement, and health research looks likely to get the axe.

This is exactly what the old Soviet Politburo used to do, pretend what they just did or said never happened. They would literally, brazenly rewrite reality and accused anyone who disagreed with the new reality a traitor. Have you read the comments by conservatives on internet forums. They're all either too mentally deranged to be on the internet, too stupid to tie their shoes or the most blissfully uninformed people in history. And of course Faux News is always there to echo the propaganda from the Conservative Ministry of Disinformation.

5 Terrifying Things about the Sequester

5 Terrifying Things about the Sequester. Just my top two, the rest are at the link.

1. The sequester will hurt job-growth

As we pointed out during the debates raging in the run-up to the “fiscal cliff," the sequester was the second-most damaging component of the austerity bundle set to take effect on January 1, 2013. The worst component was the non-renewal of the payroll tax cut, which is already dragging substantially on the economy. All told, if the sequester kicks in the economy will likely end the year with roughly 500-600,000 fewer jobs than if it were repealed. These are jobs the economy desperately needs. To be clear, the sequester alone won’t drive the U.S. economy back into outright recession, but it surely will make the agonizingly slow recovery that much slower. Further, it’s worth noting that even a full repeal of it with no offset will still result in an economy growing much too slowly to quickly return to full-employment. In a nutshell, arguments over the sequester are roughly about whether we’d like to be $900 billion or a full $1 trillion below economic potential in the coming year.

....5. Entitlement are commitment devices. That’s scary.

Given that much of the negotiation over the sequester is how to “pay for” its repeal with other spending cuts, it should be noted that legislated changes to Social Security, Medicare, Medicaid and the ACA do not need annual appropriations, and hence are likely to be much longer-lasting than any agreed-to discretionary cuts. Replacing the sequester with cuts to these valued programs would be a disaster. We have shown, for example, that Social Security, Medicare and Medicaid combined contributed ten times as much to income growth for middle-income households over the last generation than growth in hourly wages. These programs are, by far, the part of the U.S. economy that still manages to deliver some goods to low- and moderate-income households. Gutting them in the name of securing a better economic future is perverse indeed. Obviously, pure efficiencies that save these programs money—tougher drug bargaining for Medicare, or reforms to provider reimbursement that squeeze out economic rents and improve quality—are welcome. But simple cuts to these programs that shift costs onto households as a way to pay for the sequester is close to a worst-case outcome.

What is The Sequester

What is The Sequester

The United States is rapidly approaching March 1, the date on which the automatic spending cuts put in place by the summer 2011 debt ceiling deal will begin taking effect. There is little indication that Congress will avert the cuts as it did in January, as Republican leaders have thus far been unwilling to negotiate with President Obama and Senate Democrats.

Congress is currently on recess until next Monday, leaving just five legislative days until the automatic cuts — known as sequestration — will take effect. Here’s a breakdown of why the sequester was created and what it will mean for programs facing cuts and the nation’s overall economic recovery:

    Why the sequester was created. The sequester was a result of the GOP’s wrangling over the debt ceiling in the summer of 2011, when Republican leaders — who had previously passed clean debt increases 19 times under President Bush — demanded spending cuts as the price for averting a costly default. On the brink of default, Congress passed the Budget Control Act, which enacted immediate spending cuts and created a supercommittee tasked with striking a “grand bargain” to reduce the deficit. Republicans walked away from the committee after refusing to consider tax increases on the wealthy, setting sequestration into motion. The sequester, which cuts from both domestic and defense spending, was designed to be painful enough that both sides would negotiate to avert it.

    How to avoid it. The sequester was originally supposed to take effect on January 1, but it was avoided as part of the overall “fiscal cliff” deal that maintained most of the Bush-era tax cuts and enacted spending reductions to offset the first round of automatic cuts. In the past, Republicans offered plans to offset the sequester by cutting more spending, even though deficit reduction efforts have been heavily skewed toward spending cuts to domestic programs already. Democrats have offered multiple proposals that would bring more balance to efforts to reduce the deficit. A plan from the Congressional Progressive Caucus would replace the sequester largely with new revenue, evening the balance of spending cuts and revenue increases in overall deficit reduction efforts. Senate Democrats proposed a plan that reduced the deficit by $110 billion, enough to offset the sequester until next January. Half of the reduction comes from cuts, the other half from tax increases on the wealthy. Republicans, however, have again refused to negotiate over new revenues, even from tax reform that would close corporate loopholes.

    What it will mean. Because its cuts are across-the-board, the sequester will affect most domestic programs. Jobless workers will lose access to unemployment benefits, while safety net programs for women and children and early childhood education programs will face deep cuts. The sequester will cut funding for law enforcement and border security, food safety, airline travel security, Head Start, disaster relief, and health research. Defense programs will also see reductions. These cuts will have broad ramifications for the country’s recovering economy, pushing it down the austere path Europe has followed into second recessions. Independent reports predict that sequestration would reduce economic growth by 0.6 percent over the year while also leading to the loss of 700,000 jobs. The debt limit fight that created the sequester already pummeled the recovery, and allowing these spending cuts to take effect would cause even bigger problems.

Conservatives are hoping that either most Americas are idiots or have terrible short term memories, and are trying to blame Democrats for this childishness. They voted for the sequester, End of story. Now they want a new deal that punished the working poor and middle-class.

The Desperation of the Austerity Parade

Gratifying Signs of Desperation

On both sides of the Atlantic, the austerians seem to be freaking out. And that has to be good news, an indication that they realize, at some level, that they’re losing the debate.

First up, the sad story of Joe Scarborough, whose response to my anti-austerian appearance on his show has been a bizarre campaign to convince the world that absolutely nobody of consequence shares my views. Why is this bizarre? Because while I could be wrong about macroeconomics (although I’m not), it’s just not true, provably not true, that I’m alone in arguing that the current and near-future deficit aren’t problems. (Among others, there’s this guy you may have heard of).

So in the latest twist, JoScar is citing my Princeton colleague Alan Blinder, who he claims is totally at odds with my position. Hmm. The article he’s citing (which is in the Atlantic, not the New Yorker)), bears the following headline:

Not so different from me.

Meanwhile, Olli Rehn of the European Commission, a firm advocate of austerity, responds to the disastrous economic news in Europe, which has confirmed the warnings of austerity critics and led to a widespread reassessment of fiscal multipliers; it seems that they are large in a liquidity trap, just as some of us predicted. Rehn’s answer? We need to stop putting out these economic studies, because they’re undermining confidence in austerity!

As I said, these signs of desperation are gratifying. Unfortunately, these people have already done immense damage, and still retain the power to do a lot more.

 If you want to swim in a deep pool of stupid, listen to Joe Scarborough, or Paul Ryan or any other conservative knuckle dragger talk about economics.

Conservative and Libertarian Wacko Budget Hawks Should Be Ashamed of Their Lies and Agenda

Conservative and Libertarian Wacko Budget Hawks Should Be Ashamed of Their Lies and Agenda

Here's a pretty important fact that virtually everyone in Washington seems oblivious to: The federal deficit has never fallen as fast as it's falling now without a coincident recession.

To be specific, CBO expects the deficit to shrink from 8.7% of GDP in fiscal 2011 to 5.3% in fiscal 2013 if the sequester takes effect and to 5.5% if it doesn't. Either way, the two-year deficit reduction — equal to 3.4% of the economy if automatic budget cuts are triggered and 3.2% if not — would stand far above any other fiscal tightening since World War II.

Until the aftermath of the Great Recession, there were only three such periods in which the deficit shrank by a cumulative 2% of GDP or more. The 1960-61 and 1969-70 episodes both helped bring about a recession.

Far steeper deficit cuts during the demobilization from World War II and in 1937-38 both precipitated economic reversals.

Now the deficit is shrinking about 50% faster than it did during the booming late 1990s, when the jobless rate was falling south of 5% and tax revenues were soaring — without tax hikes.

Yet conservatives and libertarians, who have the nerve to claim they know economics and what is in the best interests of the country, claim that Democrats have been on a spending spree. Cons and weirdo Randians want the USA to follow Europe austerity path. Could it be that following such a path would be disastrous for the economy - and that know that, but want the economy to crash for one simple reason- they want to make Democrats and Obama look bad. Are conservatives and libertarians the enemy within.

Why Does Kansas Gov. Sam Brownback (R) Hate American Values and Working Families

Why Does Kansas Gov. Sam Brownback (R) Hate American Values and Working Families

Kansas Gov. Sam Brownback (R), like Republican governors all across the country, aims to implement a regressive tax plan that involves cutting income taxes for the rich while, in his case, maintaining a sales tax hike that primarily hurts the poor. The sales tax increase was supposed to be temporary when it was adopted in 2010, but Brownback now wants to make permanent.

Sales taxes disproportionately impact the poor, who are more likely to spend all or most of their income. According to an analysis by the Institute on Taxation and Economic Policy, Brownback’s plan will raise taxes on the poorest Kansans, but still lose hundreds of millions of dollars in revenue due to huge tax cuts for the rich:

    – The poorest 20 percent of Kansas taxpayers would pay 0.2 percent more of their income in taxes each year, or an average increase of $22.

    – The middle 20 percent of Kansas taxpayers would pay 0.2 percent less of their income in taxes each year, or an average cut of $104.

    – Upper-income families, by contrast, reap the greatest benefit with the richest one percent of Kansans, those with an average income of over a million dollars, saving an average of $6,528 a year.

The plan would cost the state $340 million in revenue, despite hiking taxes the poor. And Kansas already has a regressive tax system, with the poorest residents paying a rate more than twice as high as the richest 1 percent.

 Brownback and other anti-American conservatives feel that millioanires and wealthy coporations have it real tough. So they're just asking people in the bottom 70 % percent of the income range to contribute more. If people - many of whom are making around minimum wage and barely getting by, why those wealthy people and coporations might create some more jobs that do not even pay a living wage. Conservatives in several states are finally getting what they want, America as a giant plantation, the 1950s model of America. Sense they're going to give people a few dollars an hour, you can't technically call it slavery. Since they're gutting education, degrading rivers, blowing the tops off mountains and making health care even harder to get for most Kansas residents - how can they say they believe in progress and prosperity? Prosperity for who, a few wealthy plutocrats who have never done an honest day's work in their lives, because they made their wealth on the backs of labor.

Why Does The Conservative Republican Confederate Yankee Bob Owens Hate American Values

MSNBC's Scarborough, Known For His UnAmerican Conservative Bias, Ignores The Facts In Front Of Him To Attack Government Spending

MSNBC's Scarborough, Known For His UnAmerican Conservative Bias, Ignores The Facts In Front Of Him To Attack Government Spending

MSNBC host Joe Scarborough blamed "a Keynesian spending spree" for the contraction in GDP at the end of 2012, while holding evidence that the opposite is true in his hands. Scarborough's claims fit into his ongoing effort to deny and marginalize demand-side economic policies which continue to enjoy broad support from trained economists.

During a discussion of the 2012 fourth quarter GDP report on MSNBC's Morning Joe, Scarborough implied that the 0.1 percent drop in output was due to government spending since the recession. From Morning Joe:

Scarborough's claim is contradicted by the Wall Street Journal article he held up during the segment, which states that "government spending, which has been a drag on growth for more than two years, declined for the ninth time in 10 quarters." The article's subhead - "GDP Shrinks 0.1% on Government Cuts, but Consumer, Business Spending Offer Hope" - also splashed across the screen moments before Scarborough made his argument.

The Wall Street Journal's reporting is in line with the latest Bureau of Economic Analysis report. The BEA calculates the component parts of the GDP figure for each quarter. This most recent report is notable not because the government spending component of GDP continues to be negative due to shrinking direct spending into the economy, but because, for the first time in the recovery, the government component of GDP was so negative that it overwhelmed the positivity in other components.

Poor Joe Scarborough lives in the lala-land of conservative myths. The report showed two inconvenient truths, Obama has not gone on a wild spending spree and, gosh darn-it, government spending can stimulate the economy.

Why Does Marsha Blackburn (R-TN) Hate America So Much That She Would Cost Taxpayers Millions Out of Pure Ignorant Spite

 Why Does Marsha Blackburn (R-TN) Hate America So Much That She Would Cost Taxpayers Millions Out of Pure Ignorant Spite

Republican Congresswoman Marsha Blackburn (TN) insisted that shutting down the government should be “on the table” as Congress and the Obama administration deal with passing a continuing resolution, raising the debt ceiling, and addressing the sequestration cuts.

Appearing on MSNBC on Monday, Blackburn echoed a growing consensus within the Republican party, insisting that lawmakers should close the federal government or allow the United States to default on its debt if President Obama does not agree to drastic spending cuts. “We are going to look at all of these options,” Blackburn insisted. “You know, there is the option of government shutdown. There is an option of raising the debt ceiling in short-term increments”:

    CHRIS JANSING (HOST): [But are your constituents] willing to see the government shut down? Are you hearing that, Congresswoman?

    BLACKBURN: Yes, they are. Yes, they are. But they want us to be thoughtful in what is done. And this is the good thing. You know, maybe it’s better to keep it open so we can keep cutting it. [...]

    JANSING: Would you be willing if you don’t get the kind of cuts that you think are necessary, would you be willing to go into default or to shut down the government?

    BLACKBURN: I think that there is a way to avoid default. If it requires shutting down certain portions of the government, let’s look at that. Let’s put these options on the table, be very thoughtful, but get this spending pattern broken. We cannot afford a $4 billion a day deficit and trillion dollar plus deficits every single year.

Watch it:

Jansing warned that should the government shutdown, the FBI would stop working, “prisons won’t operate, the court system closes, tax refunds won’t go out, the FAA would go off line.” But Blackburn dismissed these concerns by arguing that Republicans will set priorities for government spending and start eliminating “waste, fraud, and abuse.”

The line of thinking has caught fire with “more than half” of the Republican House caucus. As House Republican Conference Chairwoman Cathy McMorris Rodgers (R-WA) told Politico, “I think it is possible that we would shut down the government to make sure President Obama understands that we’re serious.” “We always talk about whether or not we’re going to kick the can down the road. I think the mood is that we’ve come to the end of the road.”

A government shut down would cost tax payer's money. Every day the government is shut down starts the clock ticking on accumulated debt and interest on that debt. In 1996 the shut down cost between $700 million and $800 million. These essential services would also shut down: Social Security: Unprocessed. Veteran’s Services: Gone. Health, Disease, And Toxic Cleanup Services: On Hold. National Parks: Closed. Museums: Closed. During the 1995 and 1996 shutdowns, museums lost about 2 million visitors. Passports And Visa Applications: Unprocessed. During the last shutdown, more than 200,000 passport applications and 20,000–30,000 visa applications went unprocessed.

The 12 Days Of Crony Conservative Capitalism Christmas

The 12 Days Of Crony Conservative Capitalism Christmas

On the first day of Christmas my employer gave to me a penny for every $3 [3] the richest 130,000 Americans make. It's been a national tradition since 1980.

On the second day my doctor showed me TWO Americans needing mental health care, but only one of the two could afford treatment [4]. The doctor informed me that the fifty states have cut $1.8 billion [5] from their mental health budgets during the recession, and that the 2013 Republican budget proposes further cuts. "It's crazy," I protested. "Some states are allowing guns [6] in schools and daycare centers and churches and bars and hospitals, but they're cutting mental health care?" The doctor just nodded in frustration.

On the third day The Economist [7] told me that it costs just THREE cents [8] in administrative expenses for every $100 raised through a Financial Transaction Tax (FTT) in the United Kingdom, versus $1.42 for the personal income tax and $1.25 for the corporate income tax. With up to THREE quadrillion dollars [9] in total U.S. financial transactions, we could replace federal income taxes with a tiny FTT.

On the fourth day a food pantry gave me FOUR dollars worth of food. That's about what food stamp recipients [10] get each day through the Supplemental Nutrition Assistance Program (SNAP). To pay for rent and utilities, a family of three gets $400 per month [11] from Temporary Assistance for Needy Families (TANF), which comes to about FOUR dollars a day per person.

On the fifth day a financial advisor introduced me to his FIVE richest investors, who were the only ones out of 100 Americans to increase [12] their wealth over the past 25 years, by the impressive rate of almost 20% [13]. It's like that throughout the entire country, the advisor said: only 5% took almost all the gains.

Five golden rings, indeed.

On the sixth day, as the traditional 12-day song started to get annoying, Santa appeared to take me by the hand to the U.S. corporate offices, where the tax lawyers gave to me SIX cents [14] for the national treasury. "Hey," I said, "this used to be twenty-five cents. You've doubled your profits [15] in the last ten years, but individual and payroll taxes have to pay 94 cents out of every dollar!" The lawyers just smiled. Santa shook his head in frustration.

On the seventh day a guidance counselor informed me that one out of SEVEN [16] Americans between the ages of 16 and 24 is neither working nor in school.

On the eighth day an IRS agent gave me these matching facts [17]: Over EIGHT percent of the GDP (8.4%) goes for tax expenditures (subsidies provided through the tax code, mostly to the very rich). That's almost exactly the same amount (8.4% of the GDP) that goes to Social Security and Medicare.

On the ninth day an unemployed dietitian told me that the average male has increased his weight by NINE percent [18] over the past 20 years (180 to 196), and the average female by TWELVE percent (142 to 160). As a NINE dollar per hour [19] food-service worker gave me and Santa our burgers and fries and shakes, my jolly old partner chortled, "Ho Ho Ho, soon you'll all look like me!"

On the 10th day a Forbes article confirmed that the TEN richest Americans [20] made more than our entire national housing budget [21] in just one year [22]. That's over $50 billion. The twenty richest Americans made more than our entire education budget. Santa assured me that the transfer of wealth from society's needs to a few individuals was not the norm around the world.

On the eleventh day a creditor gave me a bill for ELEVEN trillion dollars [23] of debt incurred by the American consumer, including mortgages, student loans, and credit card liabilities.

And on the twelfth day Santa gave me an IOU for TWELVE trillion dollars [24], the U.S. share [25] of up to $32 trillion [26] held overseas, untaxed. "One problem," cautioned Santa, "my reindeer haven't been able to find any of it yet."w

After all this I stood perplexed. "What does it all mean?" I asked Santa.

"Well, that's capitalism," I heard him exclaim as he drove out of sight. "It's all about the individual getting all he can, because that will benefit everyone. And let me tell you," he added with a twinkle, "those benefits are just as real as I am!"

It does not have to be like this, a USA that conservatives have made to look like 17th century France with most of the population working to make the elite aristocracy wealthy. We need to break back morality and the social contract.

[3] http://wweek.com/portland/article-17350-9_things_the_rich_dont_want_you_to_know_about_taxes.html
[4] http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/17/seven-facts-about-americas-mental-health-care-system/
[5] http://www.americanprogress.org/issues/civil-liberties/news/2012/07/31/11871/cuts-to-mental-health-services-could-lead-to-more-spree-killings/
[6] http://www.alternet.org/7-craziest-gun-laws-america
[7] http://www.economist.com/node/7855196
[8] http://truth-out.org/news/item/10232-can-a-financial-transactions-tax-work-in-america-an-ftt-faq
[9] http://simonthorpesideas.blogspot.fr/2012/10/bis-transaction-data-for-2011-roughly-3.html
[10] http://www.americanprogress.org/issues/2012/05/linden_rebuttal.html
[11] http://www.cbpp.org/cms/index.cfm?fa=view&id=3625
[12] http://www.federalreserve.gov/pubs/feds/2009/200913/200913pap.pdf
[13] http://www.levyinstitute.org/pubs/wp_589.pdf
[14] http://www.nationofchange.org/myth-free-market-1340630005
[15] http://www.payupnow.org/CorpTaxByYear.xls
[16] http://www.measureofamerica.org/one-in-seven/
[17] http://www.washingtonmonthly.com/magazine/julyaugust_2011/features/20000_leagues_under_the_state030498.php
[18] http://www.fitsugar.com/Average-Weight-Americans-20-Pounds-Heavier-Than-20-Years-Ago-20605443
[19] http://www.theatlantic.com/business/archive/2012/11/mcjobs-should-pay-too-its-time-for-fast-food-workers-to-get-living-wages/265714/
[20] http://www.forbes.com/forbes-400/
[21] http://en.wikipedia.org/wiki/2013_United_States_federal_budget
[22] http://finance.yahoo.com/news/pf_article_113540.html
[23] http://www.creditscore.net/u-s-consumer-debt-in-2011/
[24] http://www.commondreams.org/view/2012/11/19-3
[25] http://www.taxjustice.net/cms/upload/pdf/Inequality_120722_You_dont_know_the_half_of_it.pdf
[26] http://www.taxjustice.net/cms/upload/pdf/Price_of_Offshore_Revisited_120722.pdf
[27] http://www.alternet.org/tags/economy-0
[28] http://www.alternet.org/tags/christmas-0
[29] http://www.alternet.org/%2Bnew_src%2B