"Job Creator" Speaks Out

Nick Hanauer, venture capitalist, 1%-er: I'm not a job creator, raise my taxes!

Since 1980, the share of the nation’s income for fat cats like me in the top 0.1 percent has increased a shocking 400 percent, while the share for the bottom 50 percent of Americans has declined 33 percent. At the same time, effective tax rates on the superwealthy fell to 16.6 percent in 2007, from 42 percent at the peak of U.S. productivity in the early 1960s, and about 30 percent during the expansion of the 1990s. In my case, that means that this year, I paid an 11 percent rate on an eight-figure income.

One reason this policy is so wrong-headed is that there can never be enough superrich Americans to power a great economy. The annual earnings of people like me are hundreds, if not thousands, of times greater than those of the average American, but we don’t buy hundreds or thousands of times more stuff. My family owns three cars, not 3,000. I buy a few pairs of pants and a few shirts a year, just like most American men. Like everyone else, I go out to eat with friends and family only occasionally.

It’s true that we do spend a lot more than the average family. Yet the one truly expensive line item in our budget is our airplane (which, by the way, was manufactured in France by Dassault Aviation SA (AM)), and those annual costs are mostly for fuel (from the Middle East). It’s just crazy to believe that any of this is more beneficial to our economy than hiring more teachers or police officers or investing in our infrastructure.

Crazy enough that Frank Luntz has hit the panic button.

 

Why Republicans Aren’t Serious About Reducing the Deficit

By: inoljt, http://mypolitikal.com/ 

Republicans talk a good game about why the United States must reduce its debt. Republican Congressman Paul Ryan:

We face a crushing burden of debt. The debt will soon eclipse our entire economy, and grow to catastrophic levels in the years ahead.

On this current path, when my three children — who are now 6, 7, and 8 years old — are raising their own children, the federal government will double in size, and so will the taxes they pay.

No economy can sustain such high levels of debt and taxation. The next generation will inherit a stagnant economy and a diminished country.

Frankly, it’s one of my greatest concerns as a parent — and I know many of you feel the same way.

Mr. Ryan then proposed a plan whose purpose is purportedly to solve America’s debt problems. To its credit, this plan cuts trillions of dollars in spending. It bravely – or cruelly, depending on your political orientation – cuts the sacred Medicare program.

But then Mr. Ryan’s plan does something very strange, at least if its purpose is to reduce the deficit.

To cut the deficit one has to cut spending and raise taxes. Supply-siders argue that cutting taxes will lead to more revenues raised. Perhaps in a world in which taxation levels are at 90% or 70% that is true, but right now in the United States we’re definitely not at that level (the highest tax bracket is currently 35%). So one have to raise taxes to solve the deficit.

Instead of raising taxes, however, Mr. Ryan cuts trillions of dollars in taxes in his plan.

This is not something unique to this particular Republican. As a whole, the Republican Party steadfastly refused to allow a single dime in revenue increases during the debt ceiling debate. It proudly advocated extending the Bush tax cuts for everybody before that. Fighting against tax increases is a very core element of the Republican program today. The Republican Party does this because it goes against their philosophy of small government.

Now, that’s absolutely fine; there’s nothing wrong with arguing against tax increases. The Republican Party believes that America should lower taxes and lower spending. That’s a philosophy that it will try selling to the American people during election time, and then America will have a debate over that philosophy.

But there is a problem when Republicans sell their proposals as a way to solve the deficit. Cutting taxes and cutting spending does not solve the deficit anymore than “tax and spend liberals” do. Cutting taxes increases the deficit. That’s simply a fact (unless taxes are 70%, which they aren’t in this country).

The Ryan proposal, like most Republican proposals, is a proposal to change America to be more like what Paul Ryan wants America to be like. That may be a better America or a worse America. I personally believe that enacting Ryan’s plan hurts America; many Americans, for very valid reasons, believe that it helps America.

But when Mr. Ryan – or other Republican politicians – sells his proposal as a way to cut the deficit, that’s disingenuous. The plan simply isn’t a way to cut the deficit; it has too many trillions of deficit-raising tax-cuts inside it. It’s fine for Mr. Ryan to advertise his plan as the Republican vision of what America should be like. It’s not fine for him to advertise the plan as a way to cut the deficit. That’s not what Republicans really want; otherwise they would be willing to accept tax increases.

All in all, any Republican who’s not willing to increase taxes is not serious about cutting the deficit, full stop. And since almost no Republican nowadays will agree to tax increases, then the Republican Party as a whole really isn’t serious about reducing America’s debt. It certainly talks a good game. But when push comes to shove, what the Republican Party really wants is to change American to be more like it’s vision of what America should be like (rather than cut the deficit). That’s absolutely fine on its merits. Just don’t pretend that you’re trying to reduce the deficit when you do that.

 

 

Why Republicans Aren’t Serious About Reducing the Deficit

By: inoljt, http://mypolitikal.com/ 

Republicans talk a good game about why the United States must reduce its debt. Republican Congressman Paul Ryan:

We face a crushing burden of debt. The debt will soon eclipse our entire economy, and grow to catastrophic levels in the years ahead.

On this current path, when my three children — who are now 6, 7, and 8 years old — are raising their own children, the federal government will double in size, and so will the taxes they pay.

No economy can sustain such high levels of debt and taxation. The next generation will inherit a stagnant economy and a diminished country.

Frankly, it’s one of my greatest concerns as a parent — and I know many of you feel the same way.

Mr. Ryan then proposed a plan whose purpose is purportedly to solve America’s debt problems. To its credit, this plan cuts trillions of dollars in spending. It bravely – or cruelly, depending on your political orientation – cuts the sacred Medicare program.

But then Mr. Ryan’s plan does something very strange, at least if its purpose is to reduce the deficit.

To cut the deficit one has to cut spending and raise taxes. Supply-siders argue that cutting taxes will lead to more revenues raised. Perhaps in a world in which taxation levels are at 90% or 70% that is true, but right now in the United States we’re definitely not at that level (the highest tax bracket is currently 35%). So one have to raise taxes to solve the deficit.

Instead of raising taxes, however, Mr. Ryan cuts trillions of dollars in taxes in his plan.

This is not something unique to this particular Republican. As a whole, the Republican Party steadfastly refused to allow a single dime in revenue increases during the debt ceiling debate. It proudly advocated extending the Bush tax cuts for everybody before that. Fighting against tax increases is a very core element of the Republican program today. The Republican Party does this because it goes against their philosophy of small government.

Now, that’s absolutely fine; there’s nothing wrong with arguing against tax increases. The Republican Party believes that America should lower taxes and lower spending. That’s a philosophy that it will try selling to the American people during election time, and then America will have a debate over that philosophy.

But there is a problem when Republicans sell their proposals as a way to solve the deficit. Cutting taxes and cutting spending does not solve the deficit anymore than “tax and spend liberals” do. Cutting taxes increases the deficit. That’s simply a fact (unless taxes are 70%, which they aren’t in this country).

The Ryan proposal, like most Republican proposals, is a proposal to change America to be more like what Paul Ryan wants America to be like. That may be a better America or a worse America. I personally believe that enacting Ryan’s plan hurts America; many Americans, for very valid reasons, believe that it helps America.

But when Mr. Ryan – or other Republican politicians – sells his proposal as a way to cut the deficit, that’s disingenuous. The plan simply isn’t a way to cut the deficit; it has too many trillions of deficit-raising tax-cuts inside it. It’s fine for Mr. Ryan to advertise his plan as the Republican vision of what America should be like. It’s not fine for him to advertise the plan as a way to cut the deficit. That’s not what Republicans really want; otherwise they would be willing to accept tax increases.

All in all, any Republican who’s not willing to increase taxes is not serious about cutting the deficit, full stop. And since almost no Republican nowadays will agree to tax increases, then the Republican Party as a whole really isn’t serious about reducing America’s debt. It certainly talks a good game. But when push comes to shove, what the Republican Party really wants is to change American to be more like it’s vision of what America should be like (rather than cut the deficit). That’s absolutely fine on its merits. Just don’t pretend that you’re trying to reduce the deficit when you do that.

 

 

New Poll Confirms Country is Clearly Progressive

New poll out indicates that the country is clearly, massively, overwhelmingly progressive. While they talk about cutting so-called entitlement programs in Washington, the American people have completely different priorities.

When asked what's the first thing they would do to balance the budget, Americans had an unmistakably clear answer -- raise taxes on the rich. It came in number one by a mile, with a whopping 61 percent.

If that wasn't progressive enough, cutting defense spending came in number two, with 20 percent.

And if all of that wasn't clear enough, when asked about cutting Medicare, only 4 percent were in favor of it. Only 3 percent wanted to cut Social Security as a way to balance the budget.

I thought the country was center-right? That's what all of the pundits tell us 24/7 on television. What happened now? Do those answers look center-right to you? They look decidedly center-left to anyone with a pulse.

Washington is going to hate this news because they were just getting ready to cut people's Social Security. That's what the president's Deficit Commission suggested. That's what all of the Republicans are massively in favor of. That's what a lot of the Democrats are already saying is "necessary." All the meanwhile, they just gave a $407 billion tax cut to the richest people in the country.

Well, apparently the American people disagree with Washington's priorities. If the Democrats, Republicans and the president persist in trying to cut Social Security in the face of these numbers, then we will know that we have lost our democracy altogether. That the people in power couldn't give a damn what we want. That the take over of the American government by the corporations, the rich and the powerful is complete.

Every time you hear any politician or pundit say we have to cut Social Security or what they derisively call entitlement programs (you paid into them your whole life, that is why you are "entitled" to them), send them this poll. And ask them why they don't care at all about the will of the American people.

Watch The Young Turks Here

Follow Cenk Uygur on Twitter:www.twitter.com/theyoungturks
Become a Fan of The Young Turks on Facebook: www.facebook.com/tytnation

 

 

New Poll Confirms Country is Clearly Progressive

New poll out indicates that the country is clearly, massively, overwhelmingly progressive. While they talk about cutting so-called entitlement programs in Washington, the American people have completely different priorities.

When asked what's the first thing they would do to balance the budget, Americans had an unmistakably clear answer -- raise taxes on the rich. It came in number one by a mile, with a whopping 61 percent.

If that wasn't progressive enough, cutting defense spending came in number two, with 20 percent.

And if all of that wasn't clear enough, when asked about cutting Medicare, only 4 percent were in favor of it. Only 3 percent wanted to cut Social Security as a way to balance the budget.

I thought the country was center-right? That's what all of the pundits tell us 24/7 on television. What happened now? Do those answers look center-right to you? They look decidedly center-left to anyone with a pulse.

Washington is going to hate this news because they were just getting ready to cut people's Social Security. That's what the president's Deficit Commission suggested. That's what all of the Republicans are massively in favor of. That's what a lot of the Democrats are already saying is "necessary." All the meanwhile, they just gave a $407 billion tax cut to the richest people in the country.

Well, apparently the American people disagree with Washington's priorities. If the Democrats, Republicans and the president persist in trying to cut Social Security in the face of these numbers, then we will know that we have lost our democracy altogether. That the people in power couldn't give a damn what we want. That the take over of the American government by the corporations, the rich and the powerful is complete.

Every time you hear any politician or pundit say we have to cut Social Security or what they derisively call entitlement programs (you paid into them your whole life, that is why you are "entitled" to them), send them this poll. And ask them why they don't care at all about the will of the American people.

Watch The Young Turks Here

Follow Cenk Uygur on Twitter:www.twitter.com/theyoungturks
Become a Fan of The Young Turks on Facebook: www.facebook.com/tytnation

 

 

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