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dreaminginthedeepsouth · 3 months

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Today, President Joe Biden signed the continuing resolution that will give lawmakers another week to finalize appropriations bills. Lawmakers will continue to hash out the legislation that will fund the government.

Republicans have been stalling the appropriations bills for months. In addition to inserting their own extremist cultural demands in the measures, they have demanded budget cuts to address the fact that the government spends far more money than it brings in.

As soon as Mike Johnson (R-LA) became House speaker, he called for a “debt commission” to address the growing budget deficit. This struck fear into the hearts of those eager to protect Social Security and Medicare, because when Johnson chaired the far-right Republican Study Committee in 2020, it called for cutting those popular programs by raising the age of eligibility, lowering cost-of-living adjustments, and reducing benefits for retirees whose annual income is higher than $85,000. Lawmakers don’t want to take on such unpopular proposals, so setting up a commission might be a workaround.

Last month, the House Budget Committee advanced legislation that would create such a commission. The chair of the House Budget Committee, Jodey C. Arrington (R-TX), told reporters that Speaker Johnson was “100% committed to this commission” and wanted to attach it to the final appropriations legislation for fiscal year 2024, the laws currently being hammered out.

Congress has not yet agreed to this proposed commission, and a recent Data for Progress poll showed that 70% of voters reject the idea of it.

This week, a new report from the Institute on Taxation and Economic Policy (ITEP), a nonprofit think tank that focuses on tax policy, suggested that the cost of tax cuts should be factored into any discussions about the budget deficit.

In 2017 the Trump tax cuts slashed the top corporate tax rate from 35% to 21% and reined in taxation for foreign profits. The ITEP report looked at the first five years the law was in effect. It concluded that in that time, most profitable corporations paid “considerably less” than 21% because of loopholes and special breaks the law either left in place or introduced.

From 2018 through 2022, 342 companies in the study paid an average effective income tax rate of just 14.1%. Nearly a quarter of those companies—87 of them—paid effective tax rates of under 10%. Fifty-five of them (16% of the 342 companies), including T-Mobile, DISH Network, Netflix, General Motors, AT&T, Bank of America, Citigroup, FedEx, Molson Coors, and Nike, paid effective tax rates of less than 5%.

Twenty-three corporations, all of them profitable, paid no federal tax over the five year period. One hundred and nine corporations paid no federal tax in at least one of the five years.

The Guardian’s Adam Lowenstein noted yesterday that several corporations that paid the lowest taxes are steered by chief executive officers who are leading advocates of “stakeholder capitalism.” This concept revises the idea that corporations should focus on the best interests of their shareholders to argue that corporations must also take care of the workers, suppliers, consumers, and communities affected by the corporation.

The idea that corporate leaders should take responsibility for the community rather than paying taxes to the government so the community can take care of itself is eerily reminiscent of the argument of late-nineteenth-century industrialists.

When Republicans invented national taxation to meet the extraordinary needs of the Civil War, they immediately instituted a progressive federal income tax because, as Representative Justin Smith Morrill (R-VT) said, “The weight [of taxation] must be distributed equally, not upon each man an equal amount, but a tax proportionate to his ability to pay.”

But the wartime income tax expired in 1872, and the rise of industry made a few men spectacularly wealthy. Quickly, those men came to believe they, rather than the government, should direct the country’s development.

In June 1889, steel magnate Andrew Carnegie published what became known as the “Gospel of Wealth” in the popular magazine North American Review. Carnegie explained that “great inequality…[and]...the concentration of business, industrial and commercial, in the hands of a few” were “not only beneficial, but essential to…future progress.” And, Carnegie asked, “What is the proper mode of administering wealth after the laws upon which civilization is founded have thrown it into the hands of the few?”

Rather than paying higher wages or contributing to a social safety net—which would “encourage the slothful, the drunken, the unworthy,” Carnegie wrote—the man of fortune should “consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer…in the manner which, in his judgment, is best calculated to produce the most beneficial results for the community—the man of wealth thus becoming the mere trustee and agent for his poorer brethren, bringing to their service his superior wisdom, experience, and ability to administer, doing for them better than they would or could do for themselves.”

“[T]his wealth, passing through the hands of the few, can be made a much more potent force for the elevation of our race than if distributed in small sums to the people themselves,” Carnegie wrote. “Even the poorest can be made to see this, and to agree that great sums gathered by some of their fellow-citizens and spent for public purposes, from which the masses reap the principal benefit, are more valuable to them than if scattered among themselves in trifling amounts through the course of many years.”

Here in the present, Republicans want to extend the Trump tax cuts after their scheduled end in 2025, a plan that would cost $4 trillion over a decade even without the deeper cuts to the corporate tax rate Trump has called for if he is reelected. Biden has called for preserving the 2017 tax cuts only for those who make less than $400,000 a year and permitting the rest to expire. He has also called for higher taxes on the wealthy and corporations, which would generate more than $2 trillion.

Losing the revenue part of the budget equation and focusing only on spending cuts seems to reflect a society like the one the late-nineteenth-century industrialists embraced, in which a few wealthy leaders get to decide how to direct the nation’s wealth.

[LETTERS FROM AN AMERICAN: MARCH 1, 2024]

Heather Cox Richardson

“The crucial disadvantage of aggression, competitiveness, and skepticism as national characteristics is that these qualities cannot be turned off at five o'clock.” —Margaret Halsey, novelist (13 Feb 1910-1997)

#poverty #trickle down economics #corrupt GOP #Letters From An American #heather cox richardson #ecoomy #wealth #“debt commission”#corporations #Margaret Halsey #government for the people

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economicshomeworkhelper · 6 months

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Navigating Economics Challenges: A Comprehensive Approach to Macroeconomic Stability

In the dynamic world of macroeconomics, governments often find themselves grappling with multifaceted challenges such as high inflation, rising unemployment, and a widening trade deficit. As economic advisors, we delve into the intricate interplay of monetary and fiscal policies to craft a holistic strategy that not only addresses these issues but also considers the broader implications on aggregate demand and supply.

The Conundrum: Simultaneous Challenges

Imagine a scenario where a country is facing the triple threat of high inflation rates, a surging unemployment rate, and an expanding trade deficit. The complexity of this situation necessitates a nuanced policy package that combines both monetary and fiscal measures.

Monetary Measures

In tackling inflation, the central bank becomes a key player. Through the manipulation of interest rates, specifically adopting a contractionary policy by raising rates, the aim is to cool down an overheated economy. Open market operations, involving the sale of government securities, also play a role in reducing the money supply, contributing to the stabilization efforts. Furthermore, strategic interventions in the foreign exchange market can help address the trade deficit by influencing the exchange rate.

Fiscal Measures

Complementing the monetary measures, fiscal policies come into play. Government spending adjustments, particularly in public investment, serve as a powerful tool to stimulate economic activity and counter rising unemployment. Tax policies, when calibrated appropriately, can influence consumer spending and help in curbing inflation. Additionally, labor market reforms can enhance flexibility, aiding in the transition of workers to sectors with growing opportunities.

Balancing Act: Potential Risks and Limitations

While this comprehensive approach holds promise, it's essential to navigate potential pitfalls. Policy lags, a perennial challenge in economic management, could impede the swift impact of these measures. Global economic conditions and the need for policy coordination add additional layers of complexity. Managing inflation expectations and external shocks are crucial considerations in ensuring the success of these strategies.

Amidst the intricacies of macroeconomic policy, students grappling with their homework may wonder, Can someone do my macroeconomics homework? Understanding these principles requires a keen grasp of the intricacies we've explored. So, as you delve into the complexities of your assignments, remember that an understanding of these real-world scenarios is fundamental.

Conclusion

In the realm of macroeconomics, the challenges are many, but so too are the tools available to address them. A nuanced combination of monetary and fiscal policies, carefully calibrated to the specific economic context, can pave the way for stability. As we navigate these economic waters, it's essential to understand the potential risks, limitations, and the delicate balance required for successful macroeconomic management.

#economics homework help #homework help #domymacreconomicshomework #students #economics #university #homeworkhelper

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argumate · 10 months

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Until the underlying problem of income inequality is fixed, those who demand that the US reduce its fiscal deficits are in fact demanding either that the Fed encourage even more household debt, or that US unemployment should rise.

Marriner Eccles made this very point in the 1930s: the more income is concentrated, the more we require rising debt to prevent rising unemployment, and once debt can no longer rise, as happened in 1930, the alternative is a surge in unemployment.

Those who want fiscal "responsibility" without addressing the underlying reasons debt must rise are basically making the same argument that Herbert Hoover made in the early 1930s.

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beardedmrbean · 1 month

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MEPs approved new fiscal rules for the EU during a plenary session on Tuesday despite an ongoing campaign by trade unions to prevent "austerity 2.0" from passing through.

"This reform constitutes a fresh start and a return to fiscal responsibility," said co-rapporteur Makrus Ferber (EPP – Germany). "The new framework will be simpler, more predictable and more pragmatic. However, the new rules can only become a success if properly implemented by the Commission."

The regulation passed with 359 votes in favour, 166 against and 61 abstentions, with conservatives, liberals and socialist groups helping to get the text over the line.

Advocates of the reform say it heralds a return to fiscal control after a more lax approach during the Covid-19 pandemic. Member States will now be required to keep budget deficits at less than 3% of national GDP. In addition, countries with excessive debt will be required to reduce it on average by 1% per year if their debt is above 90% of GDP, and by 0.5% per year on average if it is between 60% and 90%.

'Straitjacket'

European and Belgian trade unions have led a long campaign denouncing the reforms as a "Europe-wide return to austerity".

According to ETUC General Secretary Esther Lynch, 18 Member States including Germany, France, Italy, Spain and Poland would be unable to meet the required minimum level of investment in housing, healthcare and education under the new rules. In addition, only three Member States – Sweden, Ireland and Denmark – will be able to meet the social and climate investments required of them.

"This agreement, forced by the austerity approach of some European capitals, will require member states to reduce their debts rapidly and in ways that are economically and socially unsustainable," ETUC stated on the eve of the vote. "This will mark a return to austerity. At the same time, the new rules will also act as a disincentive to invest towards the social and climate objectives EU member states have agreed upon, by limiting the marge of manoeuvre of public deficit."

Similarly, Belgian MEP and President of the European Greens/EFA group Philippe Lamberts (Ecolo) drew attention to the social and environmental cost of tighter economic measures. "These new budgetary rules will impose a straitjacket on all EU Member States," he said on Monday. "It will deprive governments of the financial resources needed to guarantee a thriving economy, social services and climate action."

Other political groups in the European Parliament acknowledge that the reforms are imperfect, but necessary nonetheless. "There is no doubt that this deal is much better than no deal and going back to the old rules or having no rules at all," said co-rapporteur Margarida Marques (S&D – Portugal).

Right-wing and far-right political groups welcome a more stringent approach to EU budgetary rules. "There are a number of Member States who have gone too far in debt financing and this is a potential danger which can't be justified nationally or EU-wide," said MEP Johan Van Overtveldt (ECR/N-VA – Belgium). This echoes positions of "frugal" countries such as Germany, who fear another bail-out in the worst-case scenario.

Tax the rich

Tuesday's vote has not stopped the opposition campaign in its tracks. ETUC, the trade union leading the fight, has now emphasised the need to "tax the rich" as a solution to the EU's budgetary difficulties.

"Working people who have suffered a historic drop in living standards as a result of the pandemic and cost-of-living crisis simply don’t have anything left for politicians to take," stated Lynch in a press release published in the wake of the vote. "Instead politicians who supported these fiscal rules should have the decency to meet them through taxes on the corporations which registered record breaking profits which fueled inflation."

The vote on the budgetary reforms is one of almost 90 to take place during the Strasbourg plenary this week. This is the last time MEPs will convene before the end of the mandate and there is a palpable sense of urgency to deliver to voters before European elections on 9 June.

#nunyas news #commies don't understand economics #more news

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dontmeantobepoliticalbut · 1 year

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House Republicans are trying to exact a price from Democrats for agreeing to increase the nation’s borrowing authority and prevent the government from defaulting on the obligations it has accrued over decades. They’re arguing for their priorities and going after President Joe Biden’s in a separate bill that passed the chamber on Wednesday.

The legislation in question has virtually no chance of becoming law. But Republicans hope the bill’s passage will force Biden to the negotiating table, where they could seek concessions in return for lifting the nation’s borrowing authority and ensuring that the U.S. Treasury can fully pay its bills.

“He either has to negotiate now or we’re the only ones that have raised the debt limit,” McCarthy said after the vote.

A look at key aspects of the legislation that the House approved by a vote of 217-215.

LIMIT FEDERAL SPENDING

The bill would set federal discretionary spending at $1.47 trillion during the next fiscal year and allow it to increase only 1% annually from there, far below the rate of inflation in most years.

The cap on spending is the big-ticket item in the bill, accounting for about two-thirds of the $4.8 trillion in deficit reduction that the Congressional Budget Office says would occur over 10 years if the bill is enacted.

Discretionary spending includes things like weapons programs, servicemember pay, grants for schools that serve large shares of low-income students, rental assistance to house millions of poor and disabled, and money to fund research on cancer and other life-threatening diseases. It’s the spending that Congress approves through appropriations bills.

The House GOP bill doesn’t affect spending on Social Security and Medicare. Such spending, referred to as mandatory, accounts for about two-thirds of all federal spending.

CLAW BACK COVID MONEY

The bill would rescind all unobligated COVID relief money from six bills enacted from 2020-2022. The changes would reduce spending by about $30 billion over the next decade, according to the CBO. That’s less than 1% of the total cost of the six bills.

TARGET THE IRS

House Republicans began their tenure in the majority by passing a bill that would rescind nearly $71 billion that Congress is providing the IRS to upgrade its technology and boost hiring. They have included the same proposal in their debt limit bill.

Democrats approved the higher IRS funding on top of what Congress normally provides the agency annually through the appropriations process. The boost immediately became a magnet for GOP campaign ads in the fall claiming it would lead to an army of IRS agents harassing Americans.

The CBO has said that rescinding the IRS money actually would increase deficits by more about $120 billion over the coming decade due to the impact on the agency’s work. But McCarthy said the step is needed to “protect families and businesses from a weaponized IRS.”

BLOCK STUDENT LOAN RELIEF

The Republican bill would repeal actions taken by President Biden to waive $10,000 to $20,000 in debt for nearly all borrowers who took out student loans. The bill would also prohibit the administration’s efforts to cut monthly payments in half for undergraduate loans. The CBO projects that the student loan changes House Republicans seek would save about $460 billion over 10 years.

Republicans argue that Biden is unfairly transferring the obligations of people who incurred student loan debts onto millions of American taxpayers who did not go to college or who already paid off their student loans. And the say the policy will do nothing to curb the soaring tuition rates at colleges and universities.

Biden has said the student loan forgiveness would give millions of younger Americans a little breathing room financially. It would improve their ability to plow their resources into a house, car or just basic essentials, which helps power the economy. Nearly 90% of the debt cancellation would go to borrowers who earn less than $75,000.

GOING AFTER RENEWABLES

Republicans are seeking to repeal most of the tax breaks that Democrats passed in party-line votes last year as they sought to boost the production and consumption of clean energy.

McCarthy argues that the tax breaks “distort the market and waste taxpayer money.” The White House says the tax credits are leading to hundreds of billions of dollars in private-sector investments, creating thousands of manufacturing jobs in the U.S.

Republicans dropped their efforts to strip out some biofuel tax breaks, however, after the proposed changes threatened to tank the bill. The restoration of those credits was a top priority of Republicans from Iowa and other Midwestern states where the production of alternative fuels such as ethanol play a major role in the rural economy.

Citing estimates from the Joint Committee on Taxation, the CBO projected that repealing the clean energy tax breaks would save about $570 billion over 10 years, though that amount will shrink with the decision to keep some of the biofuel breaks.

WORK REQUIREMENTS

One of the key elements of the GOP bill is expanded work requirements for recipients of federal cash and food assistance.

Under current law, able-bodied adults under 50 and without dependents risk losing their food stamp, or SNAP benefits, if they don’t spend 20 hours a week in work-related activities. The bill would apply the requirement to those ages 50-55.

In addition, the bill would apply work requirements to able-bodied adults without dependents in Medicaid, the federal-state program that provides health insurance coverage for low-income Americans. Job training and performing community service count toward fulfilling the work requirement.

McCarthy said changes would help those affected learn new job skills and earn a paycheck while helping to fill some of the millions of job openings throughout the country. The White House said millions of people, many already working, would lose their health insurance coverage.

A Congressional Budget Office review last year of work requirements for Medicaid recipients said Arkansas was the only state where a work requirement was imposed for more than a few months. It found many of the targeted adults lost their health insurance and employment did not appear to increase. It said that while evidence was scant, research indicated that many were unaware of the work requirement or found it too onerous to demonstrate compliance.

The CBO estimates that about 15 million people could be subject to the new Medicaid work requirements each year, although many would qualify for an exemption. About 1.5 million, on average, would lose federal funding for their Medicaid coverage, and of that group, about 600,000 would become uninsured.

FOSSIL FUEL BOOST

The debt limit package includes legislation the House passed earlier this year that aims to increase domestic production of oil, natural gas and coal, and to ease permitting restrictions that delay pipelines, refineries and other projects.

Known as HR 1 to signify its importance to House Republicans, the energy bill also seeks to boost production of critical minerals such as lithium, nickel and cobalt that are used in electric vehicles, computers, cellphones and other products. Biden has described the House GOP’s legislation as a “thinly veiled license to pollute.”

INCREASE THE DEBT LIMIT

The Republican would suspend the debt limit through March 31, or by $1.5 trillion, whichever comes first. That would tee up another debt ceiling fight for early next year, just months before the November election when control of the White House and Congress will be decided.

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allthebrazilianpolitics · 7 months

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Brazil’s Haddad Says Congress Must Do Its Part on Budget Goals

Brazil Finance Minister Fernando Haddad is “optimistic” he will keep his promise to deliver a balanced budget next year, but only if congress does its part to help him zero the primary fiscal deficit, he said in an interview Friday.

Haddad successfully steered his first major initiative — a fiscal framework plan to replace Brazil’s so-called spending cap rule — through congress earlier this year. But his efforts to generate the revenue necessary to offset a proposed 129 billion-real ($25.4 billion) spending increase in 2024 have at times faced pushback from lawmakers skeptical of President Luiz Inacio Lula da Silva’s push to raise taxes on the wealthy.

“If we manage to approve the fiscal measures that we send to congress with the same success as we had in the first half of the year, we will be able to work within the expectations of the fiscal framework,” Haddad told Bloomberg News on Friday, in an interview from the International Monetary Fund and World Bank annual meetings in Morocco. “It will work by reducing the deficit year after year.”

“The appeal we are making to congress is to reestablish a minimum of budgetary discipline so that we can return to talking about fiscal targets,” he said. “For the new fiscal framework to work well, we have to accelerate the process of recovering the state’s fiscal base.”

#brazil #brazilian politics #politics #economy #fernando haddad #mod nise da silveira #image description in alt

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vote-democrat-president-congress · 1 year

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RobertReich: "The real reason Republicans are waging this fight is they see it as a backdoor way of attacking the two most popular (and largest) safety nets in the federal government: Social Security and Medicare. They dare not take on these programs directly. But the GOP believes that negotiating over the debt ceiling gives them an opportunity to begin to shrink these programs."

RobertReich: Friends, Few things make me as furious as the mainstream media’s reluctance to tell the public what the Republican Party is doing — and instead hide the truth behind “both sides” rubbish. How the hell can democracy work if The New York Times, CNN, and even NPR obscure what’s really going on?Let me state five central truths about the pending fight over the debt ceiling and show you how the mainstream media is distorting each of them.Truth #1: The fight is being waged solely by the Republican Party. The Democrats did not pick this fight. When Trump occupied the White House, Republicans voted to increase the debt limit three times without incident. Over the last quarter century, it has been raised over a dozen times.You wouldn’t know this from the way it’s being covered. Last Thursday’s Times, in an article titled “Months Before a Potential Crisis, Both Parties Kick Off a Fiscal Blame Game,” leads with the wildly false equivalence that:“Members of both parties are intent on painting the opposition as culpable for the turmoil that would result from a catastrophic default on the debt this summer….Administration officials say Republicans are provoking an unnecessary crisis by insisting on deep spending cuts …. [But Kevin McCarthy] has started early trying to lay the blame at the feet of Democrats instead. As Republicans vow to extract spending cuts in exchange for an increase in the debt limit, Mr. McCarthy insists it is Mr. Biden and his allies in Congress who are acting cavalierly by refusing in advance to negotiate on such reductions, and they who are risking upheaval if they do not shift their position. The clear inference is that whatever happens will be the fault of Mr. Biden and Senate Democrats.CNN is no better. Anchor Erin Burnett has framed the fight as “a dangerous game of chicken,” in which “Republicans refuse to raise the debt ceiling without any strings attached,” while “the White House — well, they are going to the opposite extreme.” White House going to the opposite extreme? Hello?CNN congressional correspondent Lauren Fox even describes Republicans and Democrats as “retreating to their corners” and “sticking to their political talking points.”Truth #2: The fight has nothing whatever to do with controlling the national debt. It has to do with paying the nation’s bills. The “debt ceiling” is merely an accounting convention. The national debt is comprised of obligations already incurred. If Republicans were serious about controlling the national debt, they’d be willing to consider tax increases — including repeal of the giant Trump tax cut that went mostly to big corporations and the very rich. But the national debt isn’t on their minds.Yet the mainstream media is intent on treating this as a fight over the national debt.On CNN’s major political talk show last Sunday, anchor Jake Tapper suggested to Rep. Ro Khanna (D-Calif.) that it would be “irresponsible” for the GOP not to force a fight over the debt ceiling, saying, “We have these crazy deficits, crazy national debt. It's $30 trillion right now … Isn't it time that Congress takes this seriously? And would the Republicans be irresponsible for not forcing this conversation?” In an interview with the ranking Democrat on the House Budget Committee, Tapper said that it’s “a problem” that “the U.S. government spends a lot more money than it takes in” and that Democrats are unwilling to negotiate. “Republicans say they are willing to come to the table to discuss raising the debt ceiling but they also want to discuss negotiations to reduce future government spending. … Are you willing to at least sit down and see if there is a deal to be made in any way?” Truth #3: For the last half century, Democratic administrations have been more fiscally responsible than Republican ones. I was part of Bill Clinton’s administration, which balanced the federal budget after Ronald Reagan and George H.W. Bush had racked up record deficits. Obama cleaned up after George W. Bush’s runaway spending and tax cuts. The Trump administration added a whopping $7 trillion to the national debt.Yet if you watch or listen to the mainstream media, you’d think that the two parties are equally fiscally irresponsible and will be equally at fault for whatever happens next.Introducing a pair of segments, CNN anchor John Berman said “Republicans refuse to budge on demands and Democrats refuse to budge on negotiations.”Truth #4: The real reason Republicans are waging this fight is they see it as a backdoor way of attacking the two most popular (and largest) safety nets in the federal government: Social Security and Medicare. They dare not take on these programs directly. But the GOP believes that negotiating over the debt ceiling gives them an opportunity to begin to shrink these programs.The mainstream media barely mentions this underlying strategy. Politico refers to raising the debt limit as a “political stalemate” and describes the positions as: “Conservatives want a deal that includes spending cuts, but the White House says meeting the country’s obligations should be non-negotiable.” Truth #5: The act of holding the full faith and credit of the United States hostage is the economic equivalent of aiming a nuclear missile at the American (and world) economies and demanding concessions. It’s not a bargaining tactic. It’s a terrorist tactic.Yet the mainstream media makes it sound as if Republicans have long used fights over the debt ceiling to counter Democratic spending. Consider this, in last Friday’s The New York Times, in an article titled “A Political Fight is Again Putting the Economy at Risk.”Republicans, in particular, have used the passage of bills increasing the limit as leverage to try to force spending cuts on Democratic administrations …. If lawmakers have a problem with spending, the debt ceiling offers a way to protest….The media are even blaming Democrats for not negotiating over the debt ceiling. On NPR’s Morning Edition, political correspondent Susan Davis said, “For now, McCarthy is the only leader at the negotiating table.”Of course McCarthy is the only one at the negotiating table. The Biden administration and the Democrats are not negotiating because raising the debt ceiling should be non-negotiable.Friends, I’m not even talking here about Fox News or its many far-right imitators. I’m referring to the so-called “moderate” mainstream media that most Americans rely on for their news.The pending fight over raising the debt ceiling is complicated. If the mainstream media gets it wrong, how do we expect most Americans to get it right?

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buindia · 1 year

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Find Out About Deficit Budgeting and Its Effects and More

When government expenditure exceeds its income, which includes fees, taxes, and investment returns, there is a federal deficit budgeting.

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qqueenofhades · 2 years

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Can you please explain how the myth that "CoNsErVaTivEs ArE gOoD fOr TeH EcOnOmY!" Came to be? I know it's propaganda but just don't get how it's stuck around.

Several reasons:

1) Ronald Fucking Reagan. (I mean, when in doubt, blame Reagan and you have a 95% chance of being correct.) In the late 1970s, America (along with the rest of the world) was in a profound economic crisis. This wasn't necessarily the fault of Democratic president Jimmy Carter, but as the incumbent usually does, he took all the blame for it, and was generally perceived as responding inadequately to the energy woes as well as the Soviet invasion of Afghanistan and the Iran hostage crisis. Reagan, running on the slogan -- you guessed it -- "Make America Great Again" -- won in a landslide in 1980 and immediately instituted what has been known ever after as "trickle-down" or "supply-side" economics, which started the tradition of Republican fiscal "policy" as it is as today. Aka, giant tax cuts for rich people and big corporations, and the business end of the free-market fuckstick for everyone else. Despite massively running up the deficit and hiking taxes on working- and middle-class people no less than twelve times during his eight years as president, Reagan left office with the laurels of a Great Economic Reformer and every president since has been pressured to follow his lead to some extent. Biden is the first ever post-Reagan president to explicitly denounce Reagonomics as what it is. To wit, a get-richer-at-the-expense-of-everyone-else massive scam that has been sold as the height of Responsible Economics for decades, because capitalism!

2) Every Republican president ever since has tried to do the same thing, with the result that... welp, they crash the economy. We all remember what happened in 2008 as the result of Dubya Economics, right? Or the Trump tax cuts that added literal trillions to the deficit, while Biden has reduced it by $1.4 trillion in his first year alone. The Republicans act like cutting government spending alone is responsible economics, and a compliant corporate media owned by ultra-rich oligarchs who personally benefit from GOP policies is often only too happy to play along. So we are made to exist in this fantasy land where cutting massive amounts of revenue and forcing working-class people to carry the tax burden for the super-rich, aside from being morally reprehensible, somehow has a) no effect on the budget, and b) doesn't actually and massively affect the quality of life and smooth functioning of the entire country in generational and long-lasting ways. You would think that for people who profess to be such big fans of capitalism, they would know that it takes money to run a country effectively, and investment in critical public, health, and infrastructure services. But all they want to do is get richer for themselves, not help people, so lololol.

3) As discussed, the Democrats (despite being by any reasonable metric the more fiscally responsible party) have been labeled Big Spenders, because -- gasp -- they dare to expand government spending and social programs, rather than just slashing everything they can get their hands on. Yet again, because of forty Fucking years of Reagonomics and its successors, any spending at all is viewed as "irresponsible" and "too ambitious," while creating giant black holes in the budget to the tune of trillions of dollars is the Party of Fiscal Responsibility! It's like a kindergartner's idea of responsibility, where you just throw out everything. An adult would recognise that "responsibility" encompasses many different areas and goals, but good luck with that.

4) Every Democratic president that has come into office after a Republican has inherited an ungodly economic mess that they then get blamed for not fixing fast enough. The Republicans like to blow it all up and then fundraise and campaign on Democrats Being Bad For The Economy (That We Broke In the First Place, But Shh).

5) As I also said in the previous post: It's The Racism, Stupid. Democrats' social programs and government spending is designed to help people of color along with white people, and that is unacceptable to the white people who would otherwise benefit from these policies, but refuse to support them out of white grievance and racial resentment. As noted, the media is often more than happy to push the Democrats Bad For The Economy narrative, because all the companies and super-rich people who control and set this narrative don't want Democratic policies to ever be widespread or popular or authentically supported. Because then they themselves might be impacted, and might make less money or pay a lot more in taxes. Horrors.

Anyway, yes. There you have it. It is deeply stupid on many levels. Alas.

#anonymous #ask #politics for ts #ronald reagan burn in hell

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dreaminginthedeepsouth · 3 months

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LETTERS FROM AN AMERICAN

March 1, 2024

HEATHER COX RICHARDSON

MAR 2, 2024

Congress has not yet agreed to this proposed commission, and a recent Data for Progress poll showed that 70% of voters reject the idea of it.

Twenty-three corporations, all of them profitable, paid no federal tax over the five year period. One hundred and nine corporations paid no federal tax in at least one of the five years.

In other news today, Alexei Navalny’s parents held a funeral for the Russian opposition leader and buried him in Moscow. Navalny died two weeks ago at a penal colony in Siberia where Russian president Vladimir Putin had imprisoned him on trumped-up charges after failing to kill him with poison. Navalny fought against Putin’s control of Russia by emphasizing the corruption and illicit fortunes of Putin and his associates.

Russia specialist Julia Ioffe of Puck News noted that a million Russians have fled the country since the February 2022 invasion of Ukraine and that many of them were Navalny supporters. Still, many thousands turned out for the funeral and the procession, throwing flowers at the hearse as it made its way to the cemetery.

A woman at Navalny’s funeral compared Navalny and Putin. “One sacrificed himself to save the country, the other one sacrificed the country to save himself.”

LETTERS FROM AN AMERICAN

HEATHER COX RICHARDSON

#Corporations #taxes #Corporate tax #trickle down economics #democracy #finance #Heather Cox Richardson #Letters from An American #theocracy #social security

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militantinremission · 1 year

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Biden's State Of The Union: a bridge to bipartisanship?

Joe Biden's 2nd State Of The Union Address seemed to be about checking boxes. 1st, Biden attempted to check the 'Fit for Duty' box. He appeared to be his snarky self, channeling the old persona of Blue Collar 'Joe from Scranton'. He took a few jabs @ Republicans, starting w/ his introduction of House Speaker Kevin McCarthy. He also instigated a kerfuffle w/ Marjorie Taylor Greene & others over Social Security & Medicare. Throughout his address, Biden tried to emote the swagger of that Senator from Delaware, who had the ear of Reagan, Bush, & Gingrich.

In his Address, Biden said that America is about 'possibilities'. He touted the accomplishments of his Administration over last 2Yrs, & made his pitch for Congress to finish what he started. Joe Biden ran on a platform of bipartisanship; to back this up, he touted 300 Bipartisan Bills passed since he took Office. He expressed his plan to 'Restore The Soul of America', starting w/ The Middle Class. He spoke of building an economy from the bottom up, & the middle out. Like Donald Trump, he supports a Made In America Campaign where Our supply chain begins @ Home.

The Star of the 'Made In America' Campaign, is 'The Chips & Sciences Act'. Biden touts how it will create hundreds of thousands of 6 figure income jobs, that WILL NOT require a College Degree. The expectation is that these Chip Production Sites will bolster & hopefully restore the Communities around them. Presently, the National Unemployment Rate is @ 3.4%- a 50Yr low; this (supposedly) includes lows for Black & Latino Communities. On top of recent job growth #s, Biden also touted 10 million New Business Applications.

He pointed out how 30 million Employees have to sign Non Compete Agreements, & how Workers deserve 'Dignity @ Work' that gives them a Right to a Living Wage, Affordable Housing, & Affordable Child Care. Biden took a couple of jabs @ Republicans, while speaking on the Debt Ceiling. Speaker McCarthy already appeared on News Shows to say that he supports taking Social Security & Medicare off the Table; why did Joe Biden linger on the subject? McCarthy can do his own wrangling.

The Biden Administration were the 1st to say their Fiscal Budget is non-negotiable; how can they fault Republicans for crying foul? Ultimately, Biden agreed to compare Plans. His Plan for Restructuring the Tax Code entails no Tax Increase for families making below $400K, a Billionaire's Minimum Tax of 15%, & quadrupling Corporate Buy Back Stock Fees. Biden touted how his Administration reduced the Deficit by $1.7T, & how Programs like the 'Junk Fee Prevention Act' will spur economic growth.

The subject of Infrastructure gave Joe Biden another opportunity to take a jab @ Republicans. He remarked how Red States will get Projects earmarked, just like Blue States. Members Of Congress may not have voted for his Infrastructure Plan, but 'i'll see ya at the Groundbreaking'. Under this plan, Biden highlighted:

Bridges, Tunnels & Roads

Lead Pipe Removal

Affordable High Speed Internet for All Americans

ALL Construction Materials used for infrastructure must be Made In America

Biden's 'Inflation Reduction Act', is basically a Plan to use restructuring the Tax Code as an excuse to reform Prescription Drugs & Climate Change initiatives. No one (in their right mind) disagrees w/ $35 Insulin, Fentanyl Prevention, or Clean Water efforts; that said, politicians have been slow to act on these measures. The manufacturing angle of this Act sounds promising, as it rewards Companies for buying American made components for their operation. Education, Immigration/ Border Security, & COVID Protocols rounded out the balance of Biden's State Of The Union Address.

Biden stressed the need for quality Public Education for grades Pre-K through 12. He also expressed a need for access to Local/ Community Colleges, & College Debt Reduction. He split COVID fallout into 2 categories: Economic Fallout & Public Safety Concerns. Under Economic Fallout, Biden reiterates his Made In America Agenda to bolster job growth. He again touts Job Growth #s as an indicator that America is getting back to business; pointing out how We are outperforming the rest of The World.

Under Public Safety Concerns, Biden spotlights the family of Tyre Nichols. He goes on to speak about the need for better Police Training/ Reform, more Community Programs, & Gun Reform. He talks about 'Brown & Black' families having 'The Talk', but I don't know of ANY 'Brown families' having that 'Talk'. Joe Biden's ease @ changing 'Black American Struggle' into 'Black & Brown Issues' is becoming an Art. His short memory is already legendary. He speaks about implementing Community Programs, but he was an architect of Benign Neglect Policy that eliminated these Community Programs over 40Yrs ago.

I found it ironic how Joe Biden could invite Tyre Nichols' family to The State Of The Union Address, but didn't mention the George Floyd Justice In Policing Act. He spoke about funding for better Police training, but the combined budgets of the Nation's Largest Police Departments likely rivals the Defense Budgets of NATO Countries. There's already enough $$$ being spent on training. Why is training not a factor when Police are somehow able to apprehend armed White assailants w/ little incident? It was interesting to watch both Sides of the Aisle show sympathy for Tyre Nichols' Mother in one moment, & applaud an increase of Police Budgets in the next. I made note of the CBC Members that applauded.

Gun Reform, like Abortion, is an ongoing issue. The REAL problem, is how to restrict Blackfolk, while respecting everyone else's 2nd Amendment Right. Gun Control wasn't an Issue, until The Black Panther Party protested in Sacramento nearly 60Yrs ago. White Americans have an Inalienable Right to bear Arms, & always will. Gun Control is not a real thing; Society needs the same personality types that are misbehaving w/ firearms to protect them from 'The Big Black Boogeyman'... It's a strange dance.

On the subject of the Southern Border & Immigration Reform, Biden spoke about resources for Border Control, & a pathway to Citizenship for Migrant Workers & Children of Illegal Immigrants. Border States have been literally begging for help; the Texas Governor has been busing Illegal Immigrants to Northern Cities for months. A bus went to Kamala Harris' residence, so The White House had to know things were critical on The Border. It is estimated that over 2 million Illegal Immigrants have entered America on Biden's Watch; not counting tens of thousands of Ukrainians & Afghans entering from Tijuana. How was Barack Obama able to keep Border Crossings low, while Joe Biden seems overwhelmed?

Biden's International focus was on Ukraine & China. According to him, Ukraine is fighting against 'Putin's Tyranny', & We as Americans, should do everything possible to support their fight for freedom. I would personally like an accounting of what 'We' gave, & where it went. Redacted has reported on Al Qaeda & ISIS Soldiers being paid $2,500/ Week to fight w/ Ukraine- is this true? What are Our Tax dollars paying for? Redacted, The Grey Zone, & Jimmy Dore have all talked about high level theft of funds & Black Market activity in Ukraine.

On the issue of China, Biden said that We seek Competition, not Conflict. The U.S. helped China rise- from a 3rd World Nation, to a legitimate World Economic Power in under 50Yrs. America's ongoing meddling in Hong Kong, along w/ rising tension in Taiwan has apparently struck a nerve in Beijing. The recent drama of balloons violating U.S. Airspace are merely another round in a Marathon Dance Competition. America's dependence on China for basic Staples, is the Real Issue.

According 2 Biden, we're in Our strongest position to compete w/ China, & Anyone else. We will work w/ China, but WILL defend Our Sovereignty. He went on to say how No other World Leader wants to trade places w/ President Xi, going against America. Biden ultimately says that The State Of The Union is Excellent. He emphasizes a Nation built on ideals, not geography, collectively working together- sounds promising. Gov. Sarah Huckabee- Sanders delivered The GOP Response, & didn't waste time picking Biden apart.

According to Gov. Huckabee- Sanders, Joe Biden inherited:

The fastest economic recovery On Record.

The most secure Border in History

Cheap, abundant 'home grown' Energy

Fast rising Wages

A rebuilt Military

A World that was stable & @ peace.

Over the last 2Yrs, Joe Biden & The Democrats have spent Trillions in reckless spending, while creating the worst Border Crisis in History. 100,000 Americans are dying from drug overdoses annually- mainly fentanyl. Domestically, criminals roam free, while Internationally, We have been unable to stand up to China... Joe Biden has been unwilling to protect Our Border, Sky, & Our People- he is not fit to serve as Commander In Chief. She deadpans that Biden is caught up in 'Wokeism'.

Huckabee- Sanders goes on to repeat several GOP talking points that date back to Newt Gingrich's 'Contract w/ America'. She says that giving every child access to quality education is the civil rights issue of today. To that end, she proposes an 'Educate, not Indoctrinate' Agenda, that eliminates Critical Race Theory (CRT), & use of the label 'Latinx'. She closes by saying that America is Free, but this Freedom is under attack & America is in danger. The Biden Administration has failed Us, but the GOP has America's future in mind. They are still the place where Freedom reigns & Liberty never dies.

Clearly, Gov. Huckabee- Sanders is towing the Party Line. As Biden tried to build himself up as a virile, stable, & capable Leader, Huckabee Sanders tried to paint a picture of someone old, feeble, & out of touch. The GOP sees Biden as Dems saw Ronald Reagan. The Country was literally more 'Black & White' back then, so Reagan was able to get away w/ more than Biden can. As for 'The Future', how can Republicans truly believe this, when their base is quickly becoming a Minority?

All of this plays into an ongoing narrative, where Democrats & Republicans take turns assuming Leadership. In theory, One leans Left, & the Other leans Right. In practice, Both Sides find consensus on issues that promote the continuance of White Supremacist Policy, by way of Institutionalized Systemic Racism. Minority Groups understand & accept AmeriKKKa's 'pecking order', in return for resources & privilege. The GOP tend to use 'Non- Racial' language to filter out Black America, while Democrats use 'Liberal- Progressive' language to do the same. Both depend on Black America's sense of 'fair play', & equality for Everyone.

As ADOS, We rationalize why a Group should get resources ahead of Us, while Everyone Else behaves like they have some inherent Right to be ahead of Us. We know that some Immigrants & Minority Groups have prejudices against Black Americans; Joe Biden's lack of concern for 'Black specific Policy' in effect, tells them that they're justified in their thinking. If he doesn't care, why should they? To them, America is a 'Grab Bag'. When you consider the fact that Joe Biden showed more concern for Migrant Workers, than taxpaying Black Farmers who have been victimized & oppressed for generations, it's pretty easy to see how his State Of The Union Address condones an Anti Black Agenda- I call it: Benign Neglect 2.0

-Just My 2 Cents

#WingsOfTheSameBird #AntiBlackRacism #NoPolicyNoPeace #ADOS #B1

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mariacallous · 1 year

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Sanctions-Proof Yuan to Putin’s Rescue After Oil Cap Hits Budget

The price cap on Russian crude oil exports is starving President Vladimir Putin’s budget of income, though it likely won’t force him to ratchet down spending for years thanks to a $45 billion buffer of yuan reserves.

Revenue plunged when the Group of Seven’s $60 per barrel limit came into effect last month. It combined with Putin’s spending increases since the invasion of Ukraine to contribute to a record deficit in December, with Russia’s flagship blend Urals trading just around $50, or nearly a third less than a year earlier.

Still, should it average the same price, Russia has enough to cover its shortfall for the next three years, according to Bloomberg Economics. Citigroup Inc. sees the stash depleted in 2 1/2 years with Urals at that level.

If Urals trades in the range of $40 to $50, revenue will fall as much as 2.5 trillion rubles ($36 billion) short of what the government budgeted, meaning monthly yuan sales would have to be more than triple the amount expected in January, according to Natalia Lavrova of BCS Financial Group.

The jolt to the budget turned the spotlight on a fiscal mechanism revived this month and involving sales of yuan from Russia’s wealth fund when revenues are below the target set by the government.

The yuan is the only currency remaining in Russian reserves that can be used for interventions in the foreign-exchange market following the seizure of about $300 billion in holdings that included dollars and euros after the war began almost a year ago.

The calculus of how long the 310 billion yuan ($45 billion) in reserves might last provides a measure of Russia’s fiscal distress and allows its economic stamina to be gauged as the war drags on. And although the squeeze has become acute, Russia won’t burn through its stock of yuan assets this year unless Urals halves and averages $25, according to Bloomberg Economics.

Citigroup estimates it would only take an average price of $35 to deplete the available yuan resources already in 2023.

Other scenarios for Urals suggest Russia should tolerate pressure on the budget for much longer without reducing expenditure. An oil price above $60 would even allow the government to start adding to its yuan reserves.

Putin has said Russia is putting “no limitations” on military spending for the war in Ukraine, with budget expenditure surging by about a third in 2022 from what it planned before the invasion of Ukraine. Outlays are on track to remain around the same level in the coming year even as revenues come under pressure.

Russia’s budget hasn’t been so reliant on high oil prices for about a decade. It needed Urals to average $104 to balance the books last year and the break-even will decline to $90 in 2023 only if the government avoids spending increases, Bloomberg Economics estimates.

Though Russia faces narrowing options in shoring up public finances, oil prices and the drawdown of the wealth fund won’t alone determine Putin’s choices.

Recent proposals include higher dividends from state companies and a “one-time payment” by fertilizer and coal producers, alongside a plan to trim some non-defense spending. A windfall tax paid by Gazprom PJSC already helped sustain a budget surplus late last year.

For the full year 2022, the fiscal gap reached about 3.3 trillion rubles, or 2.3% of gross domestic product. This year’s deficit is forecast at 2%, based on an oil price of $70 per barrel.

Russia is also considering changes to the way it calculates taxes on oil to limit the plunge in budget revenue. The local bond market is another recourse available to the Finance Ministry, which staged record debt sales late last year to use up less of its wealth fund.

Other factors at play include a push by some European Union member states for a price cap even lower than the current $60. The US has so far argued in favor of keeping the threshold unchanged ahead of additional curbs on the trade in refined Russian fuel.

And while the price cap triggered record discounts on Russia’s oil-export blend — pushing it to trade at roughly half the price of international benchmark Brent — the effect may prove temporary, according to Dmitry Polevoy, a strategist at Locko-Invest in Moscow.

“The discount will remain, but will probably gradually decrease,” he said. “Logistical chains were already being redirected last year and they will change further this year amid the restrictions imposed.”

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beardedmrbean · 2 years

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The White House was fact-checked by Twitter users on Monday after trying to take credit for the "largest" one-year cut to the federal budget deficit in American history.

President Biden's communications team attempted to exaggerate the administration's record on lowering the deficit on Twitter and was handed another Community Note that provided missing context for the White House's claim.

"The Biden-Harris Administration lowered the deficit with the single largest one-year reduction in American history," the White House tweeted Monday.

But readers added important details the White House left out, noting that deficit spending ramped up during the COVID-19 pandemic between fiscal years 2020 and 2021.

"COVID-driven deficits in both FY20 & 21 were roughly double the previous record (09), making the drop to FY22 sizable," the Community Note states.

"But the FY22 deficit is still the 4th largest in history and is 41% larger than FY19," Twitter users pointed out.

Community Notes, previously called Birdwatch, is a feature on Twitter that lets eligible users sign up to provide missing context to factual claims. The program is not managed by Twitter. Instead, users rate notes they find helpful and over time can earn the ability to write.

"Community Notes doesn’t work by majority rules. To identify notes that are helpful to a wide range of people, notes require agreement between contributors who have sometimes disagreed in their past ratings. This helps prevent one-sided ratings," Twitter explains in its Community Notes Guide.

In this case, Twitter's community observed the White House's deficit claim fails to note that deficit spending has reached record highs under the Trump and Biden administrations, largely because of the government's response to the COVID-19 pandemic. Between fiscal years 2019 and 2021, federal spending increased by about 50% due to pandemic-related legislation, according to the Treasury Department.

The FY2020 deficit was $3.13 trillion, followed by a $2.77 trillion deficit in FY2021. While the deficit in FY2022 was $1.38 trillion – a decrease of nearly 50% from the year prior – Biden's administration is still running the fourth-largest budget deficit of all-time.

The national debt stands at more than $31.2 trillion, which is 121.51% of gross domestic product, a measure of the total value of goods and services in the U.S. economy.

This was not the first time the White House was flagged by Twitter users for making exaggerated claims.

Earlier this month, the White House deleted a tweet that credited Biden's "leadership" with the "biggest increase" in Social Security payments in 10 years. Twitter users added context that said the rise in Social Security payments was "due to the annual cost of living adjustment, which is based on the inflation rate." ____________________

I'm reminded of something similar about creating new jobs, but it was just people going back to work after the various shutdowns , technically true but worthless in context

#nunyas news

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dontmeantobepoliticalbut · 1 year

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Progressive U.S. lawmakers on Monday took House Republicans to task after the Congressional Budget Office said the erstwhile deficit hawks' first bill before the 118th Congress—a measure critics say is meant to "protect wealthy and corporate tax cheats"—will swell the federal deficit by more than $100 billion.

"They all run on reducing the deficit and now the House GOP's first... bill will increase the deficit by $114 billion," tweeted Rep. Ilhan Omar (D-Minn.). "Make it make sense."

Increasing the federal deficit can help people and the economy. Republicans have been criticized for hypocritically pushing cuts to social safety net programs in the name of fiscal responsibility while being willing to raise the deficit to help corporations and the rich.

The nonpartisan Congressional Budget Office (CBO) estimated that the euphemistically named Family and Small Business Taxpayer Protection Act—which faces a vote as soon as Monday evening—would "decrease outlays by $71 billion and decrease receipts by $186 billion over the 2023-2032 period."

That's because the legislation would rescind $72 billion of $80 billion worth of new Internal Revenue Service (IRS) funding authorized under the Inflation Reduction Act (IRA) passed by the Democrat-controlled 117th Congress and signed into law last year by President Joe Biden.

In a December 30 letter to colleagues, House Majority Leader Steve Scalise (R-LA) said the proposed bill "rescinds tens of billions of dollars allocated to the IRS for 87,000 new IRS agents" under the IRA, a GOP talking point that has been widely debunked.

"Today, Republicans in Congress demonstrated their commitment to 'fiscal responsibility,'" Sen. Elizabeth Warren (D-Mass.) sardonically tweeted. "The first bill advanced by the GOP adds $114 billion to the deficit—by allowing the super-wealthy to cheat their taxes while everyone else pays. Corporate lobbyists are popping champagne."

Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) lamented that the "first order of business in the GOP House of Representatives" will be to "vote to increase the deficit $114 BILLION by letting tax cheats dodge paying what they owe."

"Once again," she added, "they're putting politics over poor and working people."

Advocacy groups also questioned GOP lawmakers' motives for introducing the bill, with Americans for Tax Fairness tweeting that "House Republicans are using their new majority to try and repeal IRS funding that will make rich and corporate tax cheats pay what they owe."

"The GOP wants to let their rich friends keep cheating the rest of us," the group added.

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