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Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts
Monday, August 6, 2012

Wisconsin Needs to Educate, Not Incarcerate

Yet another policy brief highlights what realists know:  Wisconsin policymakers are presiding over poor policy decisions that threaten to undermine taxpayers' decades-long investment in the state's human capital.

Far from saving our children from lifetimes of debt, those on the neoliberal Left and the conservative Right advocating for either "freeing" state universities from the limitations of state funding in pursuit of market models, or diminishing state spending in a time of austerity, are accomplishing the same goal:  driving up the costs of college attendance and reducing the overall educational attainment of our state's workers.

Forty years ago our grandparents elected officials who invested $14 per $1000 of personal income in higher education.  Today, we elect jokers who put in just $5.  What happened?

Figure courtesy of Tom Mortenson, Postsecondary Education Opportunity
Let's admit it: we aren't leaders anymore, we're laggards. Yes, Wisconsin pays taxes, but we throw away far too much of it on other things.  According to Figure 4 in the new report I referenced above, we rank 32nd thanks to the policy choice displayed above-- relative to per capita income, we are outspent by the likes of Mississippi, Alabama, and West Virginia, not to mention our neighbors Illinois, Indiana, Iowa, and Minnesota.

Where is that money going instead? One simple word answers the question: corrections.  To paraphrase Ronald Reagan, we fought a War on Drugs, and drugs won-- but heck, we are still throwing our money at the problem.  Legacy spending, you might call it.   Over the last 10 years, spending on corrections went up 9%, while spending on k12 dropped by 6% and spending on higher education dropped 20%. Right, because clearly the goal of Wisconsin taxpayers is not to help educate our children, but rather to lock 'em up and shut 'em up.

For those who manage to avoid prison and get into college, instead of investing in their future, Wisconsin taxpayers seem to want their families to foot the bill. How's that working for us? Well, enrollment in our public institutions is lagging behind those in other states.  We have experienced far slower growth in fall enrollment as measured over both 5-year and 10-year periods, compared to the national average (see Table 6 here). Perhaps most startling is how little enrollment in our 2-year colleges has changed-- there was practically no change at all in enrollment there over the last 5 years (0.6%) while the national average was 16.7%! Perhaps not coincidentally, during that time, tuition and fees at the 2-years (already higher than the national average 5 years ago) rose by 20%.

I have to admit being persistently perplexed at how other parents throughout Wisconsin can sit idly by while we pour money intended for our kids into pits of despair like the state's correctional facilities.  It is far more cost-effective to educate rather than incarcerate.  It's time to make our policymakers do right by the limited dollars we have. Let's re-instate a real early release plan, and rollback the ridiculous "truth in sentencing" guidelines that lengthened parole time, greatly increasing the likelihood of being returned to prison. As UW-Madison expert Walter Dickey notes, there are numerous hidden costs to incarceration, and as state we simply can't afford to be in the corrections business.   

The best solution is to treat education as the crime-fighting technique it really is.  Providing young people with truly viable opportunities later in life gives them something to really aim for, helping keep them off the streets and on the job.  A recent UW-Madison graduate, economist Ben Cowan, finds that a $1,000 reduction in tuition and fees at two-year colleges is associated with a 26% decline in the number of sexual partners an adolescent has, and a 23% decline in number of days in the past month he used marijuana.  Policies that support affordable higher education may simultaneously support reductions in the costs of incarceration, in a virtuous cycle that is win-win for all.

This is pure common sense and we all know it.  It's simply time we demand that our "leaders" catch up.





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Tuesday, July 19, 2011

The New Normal

Too many Americans appear willing to accept the hand they're dealt. Most shockingly, many of our political, educational and civic leaders seem to have fallen into the same trap. "The New Normal," they call it. Like Death and Taxes. Etched in stone. Undefined, yet not re-definable. Inevitable.

Fortunately, there are those among us willing to demand a new deck of cards -- and a new dealer!

We've seen the rise of the Forces For Fairness in states like Wisconsin where there is no disguising the unsubtle, in-your-face, anti-democratic, vitriolic, bought-and-paid-for policies of Governor Scott Walker, the Brothers Fitzgerald, ALEC, the Koch Brothers and their yes men and women (even the few remaining Republican moderates - if they still can be called such - who should know better). In the Badger State, tens of thousands took to the streets of Madison and are now actively participating in recall efforts to change the equation and prevent Wisconsin from being turned into a place totally unrecognizable.

Nationally, I see a rising consciousness and an emerging consensus that congressional Republicans have one-upped their Gingrichian colleagues from the 1990s in overreaching on fiscal matters. Voters do not like the draconian cuts being pushed through by House Republicans, the intransigence and obstructionism practiced as a religion by Senate Republicans, the GOP's willingness to hold America's bond rating and our economic recovery hostage by refusing to raise the debt ceiling, and an adherence to a baseless and extremist anti-tax philosophy. In a recent CBS News poll, 71 percent of Americans are opposed to the way the Republicans are approaching the debt limit debate. As well they should be.

Americans are NOT opposed to raising taxes on the wealthy to address our national debt. A recent Reuters poll found that 52 percent of Americans believed that "a combination of spending cuts and tax increases was the best strategy to reduce deficits." Republicans are so constrained by anti-tax pledges that they even believe a repeal of ANY tax cut or the closing of ANY tax loophole (even those for corporate jet owners!) would result in Grover Norquist gagging them with a mouthful of tea bags and ordering them to a permanent political purgatory.

If more Democrats had shown the courage to stand up sooner and establish the terms of the debate, this emerging consensus could have been precipitated. The likes of Vermont's Bernie Sanders have had it right for some time in the call for "shared sacrifice." Others, including President Obama, appear to be catching up to the reality that was evident to Sanders and other Progressives: Congressional Republicans are economic extremists willing to drive the American economy into the ground in order to assuage the Anti-Tax God (don't let it go to your head, Mr. Norquist).

"The Rock and the Hard Place on the Deficit", an op-ed in last Sunday's New York Times, written by Christina Romer, is one of the best articles I've read that puts the substance of this issue into context. For the benefit of you non-Times subscribers, here are some key highlights:
The economic evidence doesn’t support the anti-tax view. Both tax increases and spending cuts will tend to slow the recovery in the near term, but spending cuts will likely slow it more. Over the longer term, sensible tax increases will probably do less damage to economic growth and productivity than cuts in government investment.
...

There is a basic reason why government spending changes probably have a larger short-term impact than tax changes. When a household’s tax bill rises by, say, $100, that household typically pays for part of that increase by reducing its savings. Its spending tends to fall by less than $100. But when the government cuts spending by $100, overall demand goes down by that full amount.

Wealthier households typically pay for more of a tax increase out of savings, and so they reduce their spending less than ordinary households. This implies that tax increases on wealthy households probably have less effect on the economy than those on the poor or the middle class.

All of this argues against any form of fiscal austerity just now. Even some deficit hawks warn that immediate tax increases or spending cuts could push the economy back into recession. Far better to pass a plan that phases in spending cuts or tax increases over time.

But if federal policy makers do decide to reduce the deficit immediately, reducing spending alone would probably be the most damaging to the recovery. Raising taxes for the wealthy would be least likely to reduce overall demand and raise unemployment.

The politics behind this issue is another matter. But it has huge implications for issues like education. Too many educational advocates, policy types, and yes, even elected leaders seem all too willing to accept "The New Normal" -- and even pontificate about it -- as opposed to fight for a new deal and attempt to redefine the debate. President Obama too often appears to allow congressional Republicans to define the terms of the conversation, such as tying long-term deficit reduction to the debt ceiling, as Robert Reich noted over Twitter yesterday.

There's a time and a place for acknowledging political realities and accepting half a loaf. The problem is we've entered the second coming of the Robber Barons where the rich are hoarding their loaves of bread and too many Americans aren't getting a chance to get their hands in the dough at all. Until we address the historic economic inequality in this country and put spending power back in the pockets of working families, there is a tremendous likelihood that the economy will never fully recover. Never. That requires us -- and our elected leaders -- to speak out and act.

The time is now. Reality is what we make it. More of us have got to be willing to step up and say, "Enough!" I've witnessed Democrats and independents get energized in Wisconsin. We need a similar dynamic to take hold nationally. My guess is that it will build in time. But will it be enough to change the equation?

The forces of fiscal lunacy had better listen to the American people now or my guess is that they'll be hearing from the silent majority of sensible Americans at the ballot boxes in 2012 -- and even sooner in states like Wisconsin. If the "Republican Revolution" in the 1990s is any signal, past is prologue.
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Friday, March 4, 2011

Why Can't Democratic Leaders Break It Down Like Jon?


Jon Stewart makes a compelling defense of teachers on the March 3rd Daily Show. He juxtaposes numerous comments made on Fox News during the 2010 debate in favor of extending the Bush tax cuts for couples earning more than $250,000 against the "avarice" of teachers earning around $50,000 a year plus benefits here in Wisconsin.

As one Fox anchor put it: "250,000 dollars is not rich for a family of four sending kids to college! It's actually close to poverty!" Indeed. Further, Tracy Byrnes, a "Fox business contributor," railed against reducing pay or rescinding bonuses for Wall Street CEOs whose firms were being bailed out by the U.S. government because of contractual obligations. But, recently, she favored reducing teacher pay and benefits regardless of whether they were promised under existing employment contracts. What's fair is fair -- or not.

Very interesting. The Republican argument is that we shouldn't -- and didn't -- let the Bush tax cuts expire on income over $250,000 (an amount only a fraction of Americans earn), but, in Wisconsin anyway, we should reduce the take-home pay for teachers by more than 8%.

Where's the shared sacrifice? Or is that concept outdated in America?
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Monday, February 21, 2011

The Tide Will Rise


Wisconsin Governor Scott Walker is out for more than money. He's out for blood. He won't quit until he drives a stake through the hearts of public employee unions in the Badger State. That much is clear.

How this current saga will end is anyone's guess. The amazing protests that have taken over the Wisconsin State Capitol and downtown Madison might wear down, if not Walker, the few moderate Republican state senators remaining. Or the GOP might try to eliminate collective bargaining without needing the "Wisconsin 14" -- the Senate Democrats who have crossed the Illinois border to prevent a vote on the budget bill -- by pulling the collective bargaining provisions out as separate legislation (which would require only 17 senators present; there are 19 Republicans). The outcome? A general strike perhaps. Wisconsin unions and Democratic lawmakers have already publicly agreed to accept sizable concessions on health benefits and pensions as demanded by Walker and the Republicans -- on average, an 8 percent cut in public workers' take-home pay -- which would severely cripple the state economy.

The Governor has said that this is about balancing the budget, not destroying unions. Few believe him of course, especially given his track record as Milwaukee County Executive, but that's what his talking points tell him to say. I don't believe him the same way I don't believe that congressional Republicans are serious about the budget deficit and national debt. Walker's first action as governor was to propose and enact corporate tax cuts equivalent to the cost of the cuts he is now seeking to impose upon public employees. Congressional Republicans pushed for the same thing, the extension of Bush-era tax cuts for millionaires and billionaires, which added nearly one trillion dollars to the national debt. Republicans are making these fiscal crises worse and are attempting to balance the budget on the backs of public workers, making cuts to programs like food aid for poor pregnant women and women with children, but refusing to ask those with means to sacrifice one whit.

Wisconsin Democrats and union leaders have rightly drawn a line in the sand when it comes to the elimination of collective bargaining rights (over anything other than wage increases below the rate of inflation). Whether you like them or not, Americans have the right to organize and join unions and employees ought to have the right to come together and collectively bargain wages, benefits and working conditions. This right is outlined in the United Nations' Declaration of Human Rights. Republicans, however, have succeeded in convincing too many working families that their brothers and sisters in the public sector are the enemy.

As Paul Krugman eloquently writes in the New York Times (2/21/2011), the preservation of unions is also a matter of balancing political power.
For what’s happening in Wisconsin isn’t about the state budget, despite Mr. Walker’s pretense that he’s just trying to be fiscally responsible. It is, instead, about power. What Mr. Walker and his backers are trying to do is to make Wisconsin — and eventually, America — less of a functioning democracy and more of a third-world-style oligarchy. And that’s why anyone who believes that we need some counterweight to the political power of big money should be on the demonstrators’ side.
.....
But Mr. Walker isn’t interested in making a deal. Partly that’s because he doesn’t want to share the sacrifice: even as he proclaims that Wisconsin faces a terrible fiscal crisis, he has been pushing through tax cuts that make the deficit worse. Mainly, however, he has made it clear that rather than bargaining with workers, he wants to end workers’ ability to bargain.
.....

You don’t have to love unions, you don’t have to believe that their policy positions are always right, to recognize that they’re among the few influential players in our political system representing the interests of middle- and working-class Americans, as opposed to the wealthy. Indeed, if America has become more oligarchic and less democratic over the last 30 years — which it has — that’s to an important extent due to the decline of private-sector unions.

And now Mr. Walker and his backers are trying to get rid of public-sector unions, too.

There’s a bitter irony here. The fiscal crisis in Wisconsin, as in other states, was largely caused by the increasing power of America’s oligarchy. After all, it was superwealthy players, not the general public, who pushed for financial deregulation and thereby set the stage for the economic crisis of 2008-9, a crisis whose aftermath is the main reason for the current budget crunch. And now the political right is trying to exploit that very crisis, using it to remove one of the few remaining checks on oligarchic influence.

Why average Americans are willing to give selfish corporations and capitalist greed a pass, but demonize other working folks is beyond me. Why must so many Americans embrace a race to the bottom rather than the notion of a rising tide? Jealousy of wages and benefits that unionized workers have won for themselves has turned to rage as the economy has soured, even though it is often based on bad information (public employees in Wisconsin make LESS in wages and benefits than their private sector counterparts). That rage can turn in one of two directions -- it can become productive or divisive. The likes of Scott Walker and Republican bankrollers, such as Koch Industries, are counting on the latter.

As an alternative, those oppressed workers, primarily in the private sector, could choose to organize themselves as their public-sector brethren have done to better their lot -- or take political action to strengthen social supports, job training opportunities, and demand greater equity in U.S. tax policy. Or they can choose to embrace a "Life Sucks" mantra. "I suffered [a job loss/salary cut/reduced benefits], so those other working stiffs should have to suck it up, too." But why demand blood from a stone? If one is serious about shared sacrifice, why not demand reasonable concessions from public workers, along with tax reforms to close corporate loopholes and higher tax rates or income tax surcharges on millionaires?

Such concessions from public employees can be achieved through the collective bargaining process, both at a local as well as at a state level. Look what Vermont achieved in 2010 under a Republican Governor by working with unions. Walker's approach was to unilaterally propose something and refuse to negotiate or even discuss it with public employees. Nice guy that, Mr. Walker. But he can't be all bad because, after all, God talks to him. Indeed, his approach sets him apart from some other freshman Republican governors, including Iowa's Terry Branstad, Michigan's Rick Snyder, and Pennsylvania's Tom Corbett. California Governor Jerry Brown (a Democrat), running a state with far worse budgetary problems, won't resort to union busting either.

From the Wall Street Journal (2/18/2011):
"We're going to go negotiate with our unions in a collective-bargaining fashion to achieve goals," the Republican governor [Michigan's Rick Snyder] said in an interview. "It's not picking fights. It's about getting people to come together and say here are the facts, here are the common-ground solutions."
Former Clinton Labor Secretary and Berkeley public policy professor Robert Reich argues
that rising income inequality is at the heart of our nation's and our states' fiscal challenges:

So the problem isn’t that “we’ve” been spending too much. It’s that most Americans have been getting a steadily smaller share of the nation’s total income.

At the same time, the super-rich have been contributing a steadily-declining share of their own incomes in taxes to support what the nation needs — both at the federal and at the state levels.

The coming showdowns and shutdowns must not mask what’s going on. Democrats should make sure the public understands what’s really at stake.

Yes, of course, wasteful and unnecessary spending should be cut. That means much of the defense budget, along with agricultural subsidies and other forms of corporate welfare.

But America is the richest nation in the world, and “we’ve” never been richer. There’s no reason for us to turn on our teachers, our unionized workers, our poor and needy, and our elderly. The notion that “we” can no longer afford it is claptrap.

From an education policy standpoint, have teachers' unions always been on the right side of the issues? Of course not. The Wisconsin Education Association Council is an example of one that has been slow to change as compared with other NEA affiliates such as the neighboring Illinois Education Association and many state AFT chapters. Walker's election finally got WEAC to read the tea leaves and advance a proposal to embrace a number of school reforms rather late in the game. That said, I fully and wholeheartedly support the current organizing efforts of WEAC and its right to represent Wisconsin teachers at the bargaining table.

But this is bigger than education and teaching. There is a larger agenda at play here. Republicans have effectively sought to create a wedge between working people -- a divide and conquer strategy that exploits the economic turmoil and uncertainty currently gripping this country. At the same time, they are pushing an anti-tax agenda with two purposes in mind -- (1) to give huge tax breaks to corporate interests and the wealthiest Americans, and (2) to bleed the public sector dry and reduce the size of government regardless of the impact on the poor and elderly. The result: historic income inequality in the United States.

Too many Democrats are complicit for failing to see the forest for the trees and for allowing Republicans to set the narrative. (President Obama's proposed 50% cut to the Low Income Heating and Energy Assistance Program (LIHEAP) is a case in point.) Progressives need to take the elephant by the ears and shake some sense into it. We need leaders who will tell it like it is and propose policies to move America forward, not backwards. My hope is that the activism and energy present in Wisconsin will be channeled productively and over the long haul, not just to fight anti-union crusades, but also to build a state and nation that aspires to greatness, excellence and prosperity for all of its people -- from those at the top to the weakest and most vulnerable amongst us.

The tide will rise.
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Friday, February 4, 2011

GOP Spending Cuts Follow Tax Cuts For The Rich


Just as I said.
Republicans now controlling the House promised Thursday to slash domestic agencies' budgets by almost 20 percent for the coming year, the first salvo in what's sure to be a bruising battle over their drive to cut spending to where it was before President Barack Obama took office.

"Washington's spending spree is over," declared Paul Ryan, the House Budget Committee chairman who announced the plan.

The White House says the GOP effort could cause widespread furloughs of federal employees, force vulnerable people off subsidized housing, reduce services in national parks and mean less aid to schools and police and fire departments.

Popular programs such as health research and federal aid to school districts appear likely to take a hit when lawmakers write the spending bill for the departments of Education, Labor and Health and Human Services.
Tax cuts for the rich prioritized over all else.
I note that former Labor Secretary and current Berkeley professor Robert Reich, in his Twitter feed (@RBReich) today, backs up a point I made about these proposed tax cuts being a precursor to Republican efforts to launch an assault on domestic spending and entitlements -- using the federal budget deficit made so much worse by these tax cuts for millionaires and billionaires as their rationale.

I said: "I recognize that this issue isn't specifically about education, but it is inexorably linked. Given President Obama's apparent unwillingness to go to the mat for Democratic principles (and his own campaign pledge!), Republicans have succeeded in extending the Bush tax cuts for millionaires and billionaires -- not just for the first $250,000 or $1,000,000 of their income, but all of it up to infinity. The total cost of all the proposal's tax cuts is $900 billion. Republicans' likely next step is too take off their "tax cutter" hat and don their "deficit hawk" cap, saying that the federal government is living beyond its means, and will fire away at domestic spending. You don't think education will avoid being in their crosshairs at that time, do you? You know that this is more than simply a ploy to line the pockets of rich Americans, right? It's part of a plan to bleed government dry and then argue that government programs need to be reduced, eliminated or privatized."

Reich wrote: "$900 b tax cut w/ lion's share for rich explodes deficit and makes future domestic discretionary spending sitting duck for R cuts."

Yes, folks. This isn't just about tax cuts for the richest Americans. This is but a front in the war to reduce the size of government regardless of its collateral damage to Americans who need government the most.

Economic inequality is already at an all-time high in this country -- even higher than prior to the start of the Great Depression. Our educational system only has a finite amount of power to overcome such overwhelming inequities. If these forces are left unchecked, it may become an impossible job, especially as education programs themselves may fall victim to all-too-easily-predictable budget cuts.
At least the House Republicans can say that they kept this promise. This proposal shouldn't come as a surprise to anyone.
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Sunday, December 12, 2010

Fili-Bernie

I've officially given this blog over to Bernie Sanders. Well, not really. But I can't think of an issue more fundamental in defining who we are as Americans and more important to our nation's economic and educational future than what Bernie discussed in his old-school, non-filibuster filibuster on Friday. Economic justice -- along with sensible tax policy -- is something too few on Capitol Hill and too few Americans care to consider. But it's centrally related to the future educational outcomes of our people -- research shows that socioeconomic factors are more important even than teacher quality, a frequent topic of my posts and a central feature of my professional work.

I note that former Labor Secretary and current Berkeley professor Robert Reich, in his Twitter feed (@RBReich) today, backs up a point I made about these proposed tax cuts being a precursor to Republican efforts to launch an assault on domestic spending and entitlements -- using the federal budget deficit made so much worse by these tax cuts for millionaires and billionaires as their rationale.

I said: "I recognize that this issue isn't specifically about education, but it is inexorably linked. Given President Obama's apparent unwillingness to go to the mat for Democratic principles (and his own campaign pledge!), Republicans have succeeded in extending the Bush tax cuts for millionaires and billionaires -- not just for the first $250,000 or $1,000,000 of their income, but all of it up to infinity. The total cost of all the proposal's tax cuts is $900 billion. Republicans' likely next step is too take off their "tax cutter" hat and don their "deficit hawk" cap, saying that the federal government is living beyond its means, and will fire away at domestic spending. You don't think education will avoid being in their crosshairs at that time, do you? You know that this is more than simply a ploy to line the pockets of rich Americans, right? It's part of a plan to bleed government dry and then argue that government programs need to be reduced, eliminated or privatized."

Reich wrote: "$900 b tax cut w/ lion's share for rich explodes deficit and makes future domestic discretionary spending sitting duck for R cuts."

Yes, folks. This isn't just about tax cuts for the richest Americans. This is but a front in the war to reduce the size of government regardless of its collateral damage to Americans who need government the most.

Economic inequality is already at an all-time high in this country -- even higher than prior to the start of the Great Depression. Our educational system only has a finite amount of power to overcome such overwhelming inequities. If these forces are left unchecked, it may become an impossible job, especially as education programs themselves may fall victim to all-too-easily-predictable budget cuts.

The rich, on the the other hand, will continue to party like it's 1929. Only the party's even better this time 'round. So much for the national economy being a collective good.
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Tuesday, December 7, 2010

Bernie Sanders

Vermont's U.S. Senator Bernie Sanders is a hero for speaking truth to power, something he has been doing his entire life, regardless of whether it's been politically popular. He's one of the few public officials who has entered the U.S. Senate chamber and not become co-opted by it. Now, I may be biased as a former Vermonter who watched his rise from third-party also-ran to mayor of Burlington to U.S. congressman to U.S. senator. Bernie is genuine, he is forthright, perhaps a bit holier than thou at times. He is the real deal.

Check out his 13-minute speech on the floor of the U.S. Senate on November 30, 2010 providing a compelling and detailed analysis of historic economic inequality in America and the duplicity of Republicans talking woefully about the national debt and budget deficit one minute and pushing as their top priority tax breaks for millionaires and billionaires that would break the bank the next. Sanders is one of the few national leaders making any sense today and putting economic inequality and proposed tax breaks into historical context. It's probably because he is one of the few that actually cares.



On Saturday, we watched as Republicans voted in lockstep against two alternatives to extending the Bush-era tax cuts to all Americans regardless of income. One proposal would have extended tax cuts to all families first $250,000; another to all families' first million. Even millionaires and billionaires would have continued to enjoy lower taxes on some of their income. Alas, why should the rich settle for half a loaf?

Who else thinks that the current policy debate over tax policy in Washington is absolutely insane? Not enough of us. One who does is Noble Prize-winning economist Paul Krugman, who in the New York Times on December 3, 2010, laid much of the blame on President Obama:
It’s hard to escape the impression that Republicans have taken Mr. Obama’s measure — that they’re calling his bluff in the belief that he can be counted on to fold. And it’s also hard to escape the impression that they’re right.
Sad, but true.

I recognize that this issue isn't specifically about education, but it is inexorably linked. Given President Obama's apparent unwillingness to go to the mat for Democratic principles (and his own campaign pledge!), Republicans have succeeded in extending the Bush tax cuts for millionaires and billionaires -- not just for the first $250,000 or $1,000,000 of their income, but all of it up to infinity. The total cost of all the proposal's tax cuts is $900 billion. Republicans' likely next step is too take off their "tax cutter" hat and don their "deficit hawk" cap, saying that the federal government is living beyond its means, and will fire away at domestic spending. You don't think education will avoid being in their crosshairs at that time, do you? You know that this is more than simply a ploy to line the pockets of rich Americans, right? It's part of a plan to bleed government dry and then argue that government programs need to be reduced, eliminated or privatized. [UPDATE: The deal is a "budget buster." (The Atlantic)]

Now, there are would-be Democrats who are in denial and are not considering this likely outcome at all. Rather than reserving their scorn for Republican tax policy, they are attacking progressive Democrats and the likes of Bernie Sanders. Shame on them.

Over Thanksgiving weekend, the President suffered a split lip in a pick-up basketball game. How I wish he were as willing to put his body on the line for economic fairness as he was for a rebound!

I am encouraged that Senator Sanders has expressed a willingness to use the filibuster to put the breaks on extending tax cuts to the wealthiest Americans. God knows that Republicans have used the filibuster -- or the threat of one -- for dozens of nefarious purposes, including preventing extensions of unemployment insurance, regulation of Wall Street, and recently more rationale tax cut extension proposals. Imagine! A progressive willing to stand up for what's right and not "punt on third down," to use the words of New York Congressman Anthony Weiner.

At this time, I couldn't be more disappointed in President Obama. I have always been a political realist, voting for the "least bad" candidate when necessary, and a life-long Democrat. I honestly don't know what I might do in 2012. I literally couldn't sleep the other night, I was so angry. Maybe it's time to follow Robert Reich's lead and form a "Peoples' Party."

Rhetorically, President Obama is making the same mistake over and over again, putting bipartisanship ahead of smart public policy. I am not criticizing the President because I wrongly fancied him a liberal. Rolling back the Bush tax cuts for the wealthy was one of his chief campaign pledges for Chrissakes! I'm criticizing him on the substance of the issue, for walking away from a campaign promise (without fighting for it), and for making the same tactical mistake he made during the health care battle: working feverishly to assemble a bipartisan coalition for health care reform when there was no real willingness among Republicans to meet in the middle. In the current case, he horse-traded away a key campaign plank and agreed to an extension of the Bush tax cuts for two years plus deeper estate tax cuts, while only receiving a 13-month extension of unemployment benefits and one year of payroll tax cuts.

I'll give the New York Times the last word. In this morning's editorial, it writes:
President Obama’s deal with the Republicans to extend all the Bush-era income tax cuts is a win for the Republicans and their strategy of obstructionism and a disappointing retreat by the White House....

The Republicans gave up very little except for their unconscionable stance of holding up all other Congressional action until they ensured that the richest Americans keep their tax cuts.
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