Bruce Bartlett speaks of economic common sense in the midst of the current political circus. The Daily Show with Jon Stewart Mon – Thurs 11p / 10c Bruce Bartlett www.thedailyshow.com Daily Show Full Episodes Political Humor & Satire Blog The…
Bruce Bartlett speaks of economic common sense in the midst of the current political circus. The Daily Show with Jon Stewart Mon – Thurs 11p / 10c Bruce Bartlett www.thedailyshow.com Daily Show Full Episodes Political Humor & Satire Blog The … Continue reading →
“Report: States Spend Billions on Economic Development Subsidies that Don’t Require Job Creation or Decent Wages
Pennsylvania scored a D, tied for 40th place among the states
Pennsylvania is spending millions of dollars per year on corporate tax credits, cash grants and other economic development subsidies that lack wage and benefit standards for workers at subsidized companies and sometimes don’t require job creation, according to a new national report card issued by Good Jobs First.”
“Thus we see that Republicans want their cake and eat it too. They want to use higher [CBO] revenue projections resulting almost entirely from expiration of the Bush tax cuts to prevent any discussion of tax increases to reduce the deficit, while implying that this revenue rise comes solely from faster economic growth. As Sen. Kyl put it, “So revenues are down, but it is due to the recession that we have. We have not cut tax rates in the last few years – since 2006 – for example.”
According to the CBO, ending all of the tax cuts and allowing scheduled tax increases now in law to take effect would raise revenues by $5.6 trillion between 2012 and 2021, including debt service. That would go a long way toward solving our debt problem. In fact, the Center on Budget and Policy Priorities says that this action, by itself, would be sufficient to stabilize the national debt and prevent it from rising as a share of GDP.”
“There is some evidence that House Republicans are starting to get the message that their tax position is crumbling. On May 11, a senior Republican staffer told Atlantic reporter Derek Thompson that his party’s position on taxes is intellectually dishonest. ‘There are two worlds,’ the aide said. ‘One world is political and the sole objective is to maintain party message. The other world is real and in the real world fixing the deficit is a matter of national survival. When you get down to the real world decisions, it’s not about whether to raise taxes; it’s about the ratio of spending to revenue increases.’“
Taxes reduce the payoff to entrepreneurship, investment, and work effort. If taxation is too heavy, these disincentives will weaken a nation’s economy. But at what point does the harmful impact kick in? And how large is it?
Why would we even think of reducing anti-poverty programs before increasing taxes on the wealthy, say to where they were before George Bush decided that we needed to get rid of Clintons budget surplus (one of the few things he did well)?:
“Just to be clear, this is not a rational argument they’re trying to make, so don’t treat it like one. Don’t waste your time refuting horse shit. When someone calls you a name, you don’t say ‘Am not!’ You say ‘Yeah? That’s not what your mother said while I was…’ Etc.
Don’t bring a knife to a gun fight.”
“‘Iâ€ve got to own up to my mistake. Ultimately, it’s important for this administration to send a message that there aren’t two sets of rules â€” you know, one for prominent people and one for ordinary folks who have to pay their taxes,’ Obama said on NBCâ€s ‘Nightly News with Brian Williams.'”
Obama does have quite the plan. It is a mixed bag to be sure, as anything political would be, but it is both a sound and refreshingly moral plan to help this economy work for all Americans.
Presidential candidate Barack Obama once spoke to CNBC anchor Maria Bartiromo about the economy. Bartiromo made the usual comments an ideologically minded supply-sider might make, and Obama true to form, struck his usual centrist tone:
The one thing you can be assured of is I’m not going to be making these [economic] decisions based on ideology. I’m not a dogmatist…I believe in the market. I believe in entrepreneurship. I believe in opportunity. I believe in capitalism. And I want to do what works, but what I want to make sure of is it works for all America and not just a small sliver of America.
Obama does have quite the plan. It is a mixed bag to be sure, as anything political would be, but it is both a sound and refreshingly moral plan to help this economy work for all Americans. Instead of government spending per se, it consists of government investment, a key distinction from leftist ideological choices. It provides for targeted tax relief to the engines of our economy: the consumer and the more importantly small business. As a progressive he includes union protection, but departs from political pandering and opts for sensible regulation. See a pattern? I’ve said to my progressive/liberal friends that if they don’t get a pro-business, pro-growth policy that expresses their ideals and values, they might was well pack it in to conservatives whose policies smack of trickle down, faith based “economics.” No government in a free economy creates jobs. Businesses do and they don’t do so out of charity or good will. They do so out of necessity or incentive. So there has to be a system of carrots and sticks, that forces them to, as Taylor put it, “share in the surplus.” So to create jobs, you have to be pro-business in some way, and refreshingly Obama does not disappoint. More on this later.