Category Archives: tax cuts

Congressman Frank Pallone’s Statement on Payroll Tax Cut, Unemployment Insurance and Medicare Doc Fix

WASHINGTON D.C.—On Friday, February 17, 2012, Congressman Frank Pallone, Jr. spoke on the floor of the House of Representatives on the extension of the Payroll Tax Cut, Unemployment Insurance and Medicare doctor’s payment fix. The bill will continue vital programs that provide tax cuts averaging $1,000 for more that 160 millions Americans, extend unemployment insurance payments for those who are out of work through no fault of their own and ensure that doctors can continue to treat Medicare patients. While the extensions of the programs are critical, Congressman Pallone expressed his disappointment that the programs have been saved by cutting benefits to federal workers and payments to hospitals and nursing facilities.

The following is the statement Congressman Pallone delivered on the House Floor:

Thank you, M. Speaker. Today’s payroll tax conference agreement will provide $1,000 in the pockets of more than 160 million Americans and ensure that approximately 3.5 million Americans will continue to benefit from much needed unemployment insurance. We have also protected seniors’ ability to see their doctors with an SGR fix through the end of the year.

Despite these critical provisions, this is a difficult vote to take. I am greatly disappointed over how these extensions are offset. First, the unemployment extension is paid for on the backs of middle class Federal workers. These hardworking men and women continue to be targeted in this Congress – but yet they are not the reason for our nation’s deficits. Meanwhile, my Republican colleagues refuse to require the wealthiest few to pay their fair share.

Secondly, the SGR fix is being paid for with critical health care dollars. In fact, the bill slashes one of the most important investments this country has ever made in preventive health. That is extremely short-sighted. We cannot continue down that path or we will never address the real cost concerns of our health care system.

Sadly, the bill also manages to cut from one provider – hospitals and nursing homes – to help pay for another – physicians. We cannot rob Peter to pay Paul and our health care system cannot sustain further provider cuts. Meanwhile, there is still no permanent solution to an ongoing SGR problem that cannot continue to be kicked down the road again.

I will vote in favor of this bill, but I do so with grave reservations. Thank you.

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Filed under Congressman Frank Pallone, House Floor statement, Medicare, payroll tax, tax cuts, unemployment benefits

Media Myth That Cutting Taxes Boosts Revenue Revived For 2012

Media Matters has a terrific post about the myth that tax cuts generate revenues and that bigger tax cuts generate larger revenues.

Media Matters shows how these claims are debunked by not only by those on the Left, like Paul Krugman but also by those on the Right, who actually proposed the claim and sold it to Ronald Reagan and George w. Bush.

Martin Feldstein, a Harvard economist who was the first chairman of President Reagan’s Council of Economic Advisers estimated that a 10 percent tax cut would in fact reduce tax revenue — but only by 3 to 5 percent.

“It is not that you get more revenue by lowering tax rates, it is that you don’t lose as much,” he said. [The New York Times, 3/26/08]


Read … Here

This post I think ties in nicely with the last post from NJPP about what our tax dollars actually pay for.

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Filed under Martin Feldstein, Media Matters, media myth, New Jersey Policy Perspective, Paul Krugman, President George W. Bush, Ronald Reagan, supply side economics, tax cuts, tax revenues

As A Matter Of Fact ….What Do Taxes Pay For? A Better Quality of Life for Our Children

January 25th, 2012, by Jon Whiten Published in NJPP Blog: As a Matter of Fact …


While it’s a well-worn cliché that “nobody likes to pay taxes,” one question isn’t asked often enough: what do those taxes pay for?

According to a new national study, they pay for a higher quality of life for our children.

Investing in Public Programs Matters: How State Policies Impact Children’s Lives, released last week by the Foundation for Child Development (FCD), finds “a strong relationship” between state tax rates and the overall quality of life for children.

The report’s key findings are that “higher state taxes are better for children,” and that “greater investments in government programs are strongly related to better quality-of-life for children in a state.”

The report, along with the annual KIDS COUNT data book that ranks New Jersey fifth — comes as states around the country, including New Jersey, are reacting to fiscal crises with austere, cuts-only spending plan, and it shows the folly of such an approach.

“Although states are currently revenue-starved, this is exactly the wrong time to reduce taxes,” says FCD president Rudy Takanishi. “The revenues generated by taxes should be used to invest more in the education and health of our children. Policymakers must recognize that the cost of shortchanging children today is too high a price to pay in the future.”

There’s good news here for New Jersey: the Garden State ranked first in the nation on the Child Well-Being Index, barely edging out Massachusetts. This finding, based on 2007 data, reaffirms the need to resist further cuts to education and other crucial public programs.

The stakes — our children’s well-being, and our state’s future prosperity – couldn’t be higher.

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Filed under As a Matter of Fact, blog, Child Well-Being Index, education cuts, Foundation for Child Development (FCD), Kids Count, New Jersey Policy Perspective, quality of life, tax cuts, Taxes

President Obama’s Weekly Address 12/3/11 : Extending and Expanding the Payroll Tax Cut

President Obama calls on Congress to extend and expand the payroll tax cut — to protect middle class families and ensure that the economy continues to grow

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Filed under economy, jobs bill, payroll tax, President Obama, tax cuts, unemployment rate, weekly address

What If Everyone Saw This Clip Of Robert Reich Exposing 7 GOP Lies?

Robert Reich reveals the 7 biggest lies about the economy.

Stay informed my friends.

from Moveon.org

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Filed under 7 lies, deficit reduction, economic growth, Medicare, MoveOn.org, Robert Reich, Social Security, tax cuts

President Obama’s Weekly Address 10/1/11: Democrats and Republicans Should Get Together and Pass the American Jobs Act

WASHINGTON—In this week’s address, President Obama told the American people that it has been nearly three weeks since he sent Congress his jobs bill, and now it is time for Congress to send it back so that it can be signed into law. Economists agree that the American Jobs Act will spur hiring and boost the economy, and it will give workers and small businesses tax cuts, get construction workers back to work rebuilding our roads and bridges, and put more teachers in classrooms and cops on the streets. Too many Americans are struggling and need help now, and so Republicans and Democrats should come together without delay to pass the American Jobs Act.

http://www.whitehouse.gov/sites/all/modules/swftools/shared/flash_media_player/player5x2.swf

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Filed under American Jobs Act, Congress, economic growth, job growth, President Obama, tax cuts, weekly address

President Obama’s Weekly Address 9/17/11: Passing the American Jobs Act

WASHINGTON—In this week’s address, President Obama urged Congress to pass the American Jobs Act without delay so that businesses will be able to hire more workers and every American who wants a job will be able to find one. The President’s jobs bill keeps cops on the streets and teachers in the classrooms, cuts taxes for small businesses, and puts construction workers back to work without adding to the deficit. All Americans who agree with the President’s plan should call their elected officials and tell them that it’s time to pass the jobs bill, which will ensure that everyone pays their fair share and that we live within our means as we help the economy continue to grow.

http://www.whitehouse.gov/sites/all/modules/swftools/shared/flash_media_player/player5x2.swf

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Filed under American Jobs Act, economic growth, President Obama, small businesses, tax credits, tax cuts, unemployment, weekly address, Whitehouse.gov, working families

Cut And Grow Fail: CBO Schools Tea Party Freshman In Basic Economics

This little ditty was posted Friday on Talking Points Memo. It should be a wake-up call to all those TEA partiers and other right-wingers out there that think that all will be fine in the world if we only cut spending and do nothing to increase revenue.

Unfortunately though, regardless of economic schooling provided by the CBO, there will those that continue to burry their heads in the sand and refuse to believe anything a socialist government agency has to say:

Rep. Tim Huelskamp (R-KS), a Tea Party-backed freshman who voted against the final debt limit bill, recently asked to hear from the Congressional Budget Office about the impact of government spending on economic growth. It’s an article of faith on the right that vastly shrinking government will unleash the forces of private enterprise, and faced with CBO’s opposing view, Huelskamp wanted to know the answer to two questions:

1). What current federal departments, agencies, programs, or portions thereof do not contribute to economic growth?

2). In the programs that CBO believes do contribute to economic growth, what level of spending cuts would amount to a level you believe would be significant enough to “probably slow the economic recovery”?

But if the newly elected member of the Budget Committee was hoping the non-partisan CBO would buy into his premise, he’ll be sorely disappointed.

In a response letter Thursday, CBO-chief Doug Elmendorf gives Huelskamp a layman’s lesson in Keynesian economics: Under current economic circumstances, new federal spending would help economic growth, and current and future cuts could stymie it, particularly if they hit key government investment.

“When demand for goods and services falls short of the economy’s ability to produce them, as is the case currently, increasing government spending can increase aggregate demand and thereby narrow the gap between the economy’s actual and potential levels of output,” Elmendorf writes.

The precise details matter. The more robust the economy, the lower the impact. But, according to Elmendorf, “when the Federal Reserve’s ability to lower short-run interest rates is constrained because those rates are already near zero, as they are currently, the short-run effects of changes in government spending on output tend to be larger than usual.”

To illustrate the point, Elmendorf notes that deficit reduction measures that cut spending by $100 billion next fiscal year, and hundreds of billions more over the coming decade “would decrease real (inflation-adjusted) gross national product (GNP) in 2012, 2013, and 2014 by amounts ranging from roughly 0.1 percent to 0.6 percent depending on the year and the assumptions used.” In other words, the GOP’s current governing theory is damaging the economy and, by implication, costing jobs. And for those Republicans who want to cut more, ” a reduction in primary deficits that followed the same gradual time path but was twice as large would produce macroeconomic effects that were roughly twice as large.”

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There are important growth-related reasons to reduce deficits if and when the economy improves — it reduces the extent to which government spending “crowds out” private investment, by undertaking functions the private sector can do more efficiently. But we’re not there yet and, according to CBO, won’t be until the end of the decade. Spending cuts like the ones describe above, “[a]t the turn of the decade, from 2019 through 2021…would increase [GNP] by roughly 0.5 percent to 1.4 percent.”

But again the specifics matter, and if the GOP wants to slash across the board, they’ll do damage anyhow.

“Some types of spending, such as funding for improvements to roads and highways, may add to the economy’s potential output in much the same way that private capital investment does,” Elmendorf writes. “Other policies, such as funding for grants to increase access to college education may raise long-term productivity by enhancing people’s skills. The positive longer-term impact of deficit reduction on GNP would be smaller if the policies that reduced deficits included cuts in productive government investments.”

Huelskamp’s original letter is here. Read Elmendorf’s response here.

The letters stem from the below exchange between Huelskamp and Elmendorf at a recent Budget committee hearing. Elmendorf and Huelskamp are arguing two different points. Huelskamp would like to see big cuts to federal safety net programs and other spending. Elmendorf argues that while the macroeconomic consequences of slashing some of those programs might be minimal in the long run, the near-term impact would be significant, given the current downturn.

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Filed under Congressional Budget Office, debt deal, economy, government spending, job growth, Talking Points Memo, tax cuts, tax revenues, Tea Party

President Obama’s Weekly Address 8/6/11: Creating Jobs and Getting All Americans Back to Work

WASHINGTON—In this week’s address, President Obama called on Democrats and Republicans to work together to grow the economy and get Americans back to work. The President has outlined a number of steps Congress can take right now to spur growth and create jobs, including extending tax cuts for working and middle class families, cutting red tape to encourage new businesses to grow and hire, passing trade deals that will support tens of thousands of jobs, and giving our out-of-work construction workers opportunities to rebuild our nation’s infrastructure.

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Filed under arab spring, bipartisanship, Congress, deficit reduction, economy, infrastructure, Job creation, Middle Class, President Obama, tax cuts, trade deals, unemployment benefits, Verterans, weekly address

On income taxes and job creation, history debunks GOP views

By Star-Ledger Editorial Board
Sunday, July 17, 2011

We’re used to politicians stretching the truth, but this is getting ridiculous. For months now, congressional Republicans have refused to support any debt ceiling and budget deal that would raise taxes on the wealthy because, these economic wizards tell us, the rich are “job creators.”

Tax increases would discourage these job genies from expanding their businesses. Unemployment, already at 9.2 percent (which says something about the job-creation myth, doesn’t it?), would get even worse, they insist. The problem with this economic philosophy? It’s garbage.

Even Warren Buffett, one of the richest men in the world, knows that: “The rich are always going to say, ‘Just give us more money and we’ll go out and spend more and then it will all trickle down to the rest of you.’ But that has not worked the last 10 years, and I hope the American public is catching on.”

The American public, it seems, is catching on, even if Republicans want to twist the truth about that, too. Speaker of the House John Boehner keeps insisting, “The American people don’t want us to raise taxes.” House Majority Leader Eric Cantor says, “This economy is ailing and we don’t believe, nor do the American people believe, raising taxes is the answer.”

Think again. Americans believe Congress should raise taxes on the wealthy.

A new Quinnipiac survey asked voters if they support a budget deal with only budget cuts or a blend of cuts and taxes on corporations and the rich. Only 25 percent said cuts only. Sixty-seven percent want cuts and a tax increase on the wealthy.

Republican leaders are not only misrepresenting what the American people want, they’re covering up Republican numbers, too. In a recent Gallup poll, only 26 percent of Republicans favored lowering the debt with cuts alone. In just about every poll — ABC News, Washington Post, Bloomberg, Reuters — Americans want spending cuts and they want the wealthy to pay a larger share.

But maybe the American people are wrong. Let’s check the history. Did giving the wealthy a break with the Bush tax cuts of 2001 and 2003 help create jobs? Uh, no. From the end of the 2000-01 recession, just when the first Bush tax cuts took effect, until the beginning of the Great Recession, the economy grew at a slower pace than in any postrecession recovery period since World War II. Pay, adjusted for inflation, fell. And it took 39 months to get the number of jobs back to where it was before the 2000-01 recession.

Despite the same promises of jobs, the economy limped along. And the additional tax cut in 2003 didn’t rev it up, either.

President Bill Clinton faced vociferous opposition to his 1993 budget plan, which raised the top tax rates from 31 percent to 39.6 percent. Republicans called it the “Kevorkian Plan.”

So, what happened? Unparalleled economic growth. The nation’s unemployment dropped from 6.9 percent to 4 percent. The deficit shrank, and in 1998, the federal government boasted a surplus for the first time since 1969.

It seems the economy can survive a tax hike on the wealthy after all. And the tax hike did wonders to reduce the deficit as well, as designed.

More evidence: During the 1950s and early 1960s, when America experienced sustained growth, marginal tax rates on the rich were the highest they’ve ever been — 91 percent for the top bracket. (Even President Ronald Reagan, the Republican economic poster boy, raised taxes after he cut them.)

But Republicans keep chanting the same nonsense — without offering historical evidence to back it up. Instead, they want to bring the nation to the brink of default while protecting corporations (who are sitting on billions in profits) and fat cats — while everyday Americans are squeezed by high gas and food prices, plunging home prices and lower wages.

Let’s call the job-creator stuff what it is: a myth.

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Filed under Bill Clinton, Bush Tax Cuts, Congressional Republicans, Conservatives, debt limit, editorial, Eric Cantor, great recession, John Boehner, President Obama, tax cuts, the Star-Ledger, unemployment