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Proving Once Again That Tax Cuts For The Wealthy “Job Creators” Do Not Work, S&P Lowers Kansas’s Credit Rating

"Kansas Apologizes" by David Shankbone via Wikimedia Commons

Photo from October 30, 2010 “Rally to Restore Sanity” – by David Shankbone via Wikimedia Commons

For decades, the right-wing has held fast to its belief that tax cuts can fix the economy and end government deficits.

Nevermind that the idea — cutting taxes would somehow increase government revenues? — never made much sense.

They’ve kept the faith, despite all evidence to the contrary.

Myself, I think it’s long past time for the right wing to give up on this theory. I mean: at some point, shouldn’t people be able to accept the evidence, even if it goes against their beliefs?

I mean, even Republican leaders eventually gave up on it.

CBPP_effects_of_KS_tax_cutsBut two years ago, the Tea Partiers down in Kansas decided to try, try again… and Governor Sam Brownback signed “one of the largest tax cut bills in Kansas history.”

Even though many Republicans in the state legislature opposed it. (Republican Senate President Steve Morris told the press: “It is not good public policy.” He also called the tax plan backed by the tea party “very reckless.”)

Since then, there has been no evidence of any economic boom. “Since the tax cuts took effect at the beginning of 2013, Kansas has added jobs at a pace modestly slower than the country as a whole. The earnings and incomes of Kansans have performed slightly worse than the U.S. as a whole as well.” (Read more here.)

And yesterday, the chickens came home to roost. Standard and Poor’s lowered the state’s credit rating, because of the tax cuts.

“The downgrades reflect our view of a structurally unbalanced budget, following state income tax cuts that have not been matched with offsetting ongoing expenditure cuts in the fiscal 2015 budget,” said Standard & Poor’s credit analyst David Hitchcock in a release.

The rating agency gave the state a “negative” outlook on both ratings and projects that the state will face serious budget woes by the end of fiscal year 2015.

But Brownback still didn’t seem to get the message. “We need jobs and we have proven the way to that is through lower taxes,” he told the press – even after the ratings downgrade.

State Representative Jim Ward: “When presented concrete evidence of a fiscal crisis … he denies it exists. He blames the people who bring the data. You cannot live in a world where you reject all information that doesn’t feed into your ideology.”

Except… it looks like some people can.

The Rules change that could end gridlock in the US House

Record dysfunction in Congress: it’s NOT just the Senate, and NOT just the filibuster.

Republican extremists in the House have also been using parliamentary tricks to block legislation – including bills that had bipartisan support and would have passed if our elected Representatives were actually allowed to vote.

“The use of ‘closed rules’ has excluded most House members from full participation in the legislative process,” Rep. Louise Slaughter, ranking Democrat on the House Rules Committee, wrote earlier this week.

“Under a closed rule, no amendments are allowed on the House floor. As a result, House Republicans are able to pursue a politically driven agenda without allowing commonsense amendments that could achieve bipartisan compromise.  This approach has also empowered the most extreme members of the House to pursue narrow policy goals at all costs.”

Like, say, the government shutdown.

“On Sept. 30 — the eve of the government shutdown — Republicans on the House Rules Committee changed the rule so only House Majority Leader Eric Cantor (R-Va.) could call up a Senate-passed clean funding bill — a bill that has the votes to pass the House and would end the shutdown, if it were given a vote.”

One man, standing in the way of a vote that impacts millions of Americans.  (Remind you of anything?  Such as: then-Senator Scott Brown single-handedly blocking an extension of unemployment benefits, back in 2010?  The Senate couldn’t vote until they added an extension of Bush-era tax cuts for the wealthy.)

This is what’s REALLY wrong with Congress:  our elected Representatives aren’t being allowed to vote on legislation that has bipartisan support.

GOP leadership is using the “closed rule” process to keep the House from passing legislation.  Last year was the most “closed” year in House history.  “In fact, the House GOP passed as many closed rules in a single week in October as during the entire last year of Rep. Nancy Pelosi’s (D-Calif.) speakership.”

The Senate is finally reforming the filibuster.

Isn’t it time for the House to reform the “closed rule” process?

NH Small Businesses Speak Out Against Fiscal Cliff

Every day we move closer to the so-called ‘Fiscal Cliff’.  The deadline that could instantly change the tax rates for every American.  Middle class Americans are being held hostage by the Republicans in the US House who refuse to raise the taxes on the ultra wealthy in order to reach a deal.

Many of the Republicans in Congress are concerned that tax increases on the ‘top 2%’ would end up hurting small businesses.  This is a complete fallacy.  ‘The Action’ in conjunction with other labor and community allies are encouraging Congress to reach an agreement to put ‘the middle class, over millionaires’.

Yesterday in a press conference in Concord small business owners came together to explain what the ‘fiscal cliff’ would mean to their businesses.  All of which agreed raising taxes on the middle class would hurt their businesses. Most of the concern from small business is that consumer spending would drop due to a higher cost of taxes.

Consumer spending is what drives our economy. It fuels our small businesses.  If the middle class does not have money to spend, or is afraid to spend it due to economic concerns, that is when small businesses are hurt.

In an interview with WBIN, Laurie Miller said “economy is turning a corner.”  She mentioned gas prices being lower and stock markets doing better.  Miller also send a message directly to our political leaders.  She said, “people need to get down and dirty and sit in a room and do what is best for this country instead of politics.”

I could not agree more.  Our elected officials are in Washington to represent us not corporations and personal agenda.  They should be acting on what is best for the country not 2% of the country.

The President and Speaker Boehner are set to meet over the weekend to try to resolve the ‘fiscal cliff’ before the sequestration cuts are triggered and the middle class tax cuts expire.

*  *  *  *  *  *  *

Be sure to check out all the interviews with NH small business owners who are urging Congress to take action before taxes go up on the middle class.

Sue McCoo, owner of the Capital Craftsman and Romance Jewelers

Laura Miller, owner of Imagination Village in Concord

Don Brueggeman, a manager at The Works Bakery Cafe

Lorrie Carey, owner of Marshall’s Flowers

Changing the Conversation – Earned Benefits are NOT Entitlements

(Photo by Robert Neff)

Social Security and Medicare are not “entitlements” – except in the sense that everyone should be entitled to the money (including interest) that they deposit in a bank account.

Our grandparents, parents and now you and I pay into these programs with every check we receive.  Pull out your paystub and look.  You will see deductions for FICA and for Medicare.  Why are these programs being included in conversations surrounding the “Fiscal Cliff”? 

For decades now, right-wing think tanks like the Heritage Foundation have been telling us we must “replace the culture of entitlements with one of mutual responsibility.”  But workers have always been responsible.  The only irresponsibility here belongs to Congress, who started borrowing from our fund  beginning in the Reagan years.

The Social Security Act of 1935 was a bipartisan accomplishment.  Politicians on both sides of aisle knew that disabled veterans returning from war, widows with dependent children and retirees to old to work, needed help.  This was not a government handout – it was a plan through which each employee would pay an income tax.  The money would be pooled together, and with interest, payments would be made to qualified recipients.

Why are some politicians trying to make us believe that Social Security is bankrupt?  The NH Sentinel Source.com reported in April 2011 that, “working Americans have paid so much in Social Security payroll taxes during the past three decades that they have built up a $2.6 trillion surplus in the account.”  Unfortunately, this account is now filled with “IOU’s” – and some politicians prefer to change the rules rather than looking at long-term solutions.

Senator Kelly Ayotte is one who believes that Social Security should be cut.  She voted for the Ryan Budet, which, according to the Kaiser Foundation, would harm 3.3 million people between the ages of 65-66.  This is not a reasonable answer or solution to the country’s fiscal situation.  Politicians should be protecting – not sacrificing – these programs that employees have paid into, all these decades.

It is up to all of us as American workers to ensure these programs will be there when we need them.  This begins with changing the conversation – and in particular, the wording.  Social Security and Medicare are not entitlements but Earned Benefits.  Our politicians must understand we will not give up on what is rightfully ours.

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