Showing posts with label tax cuts. Show all posts
Showing posts with label tax cuts. Show all posts

Monday, April 16, 2018

Tax cuts for the rich, or essential public services for all?

by Randi Weingarten 

What do basketball legend Charles Barkley and the late Supreme Court Justice Oliver Wendell Holmes Jr. have in common? An understanding that taxes fund things that we need and value.
Holmes told a law clerk who complained about paying taxes, “I like to pay taxes. It’s what we pay for a civilized society.” More than a century later, Barkley came to a similar conclusion. He used to say he did not like paying taxes, until he got a call from basketball icon Bill Russell. Russell pointed out that money from taxes paid for the public schools Barkley attended growing up, and for police officers and firefighters in his community. Russell said, “Now that you got money, you don’t want to help other people out, but when you were poor other people took care of you.” Barkley replied, “You will never hear me complain about my taxes again.”

Randi WeingartenWeingarten with AFT members in Oklahoma marching to the state Capitol April 2. Photo by Adam Derstine.
But many people do complain about paying their share for essential public services. Some wealthy Americans calculated that they could pay more in campaign contributions in order to pay less in taxes. The Republican-controlled Congress responded with a tax overhaul last December that lavishes the wealthiest 1 percent with 83 percent of the cuts. The nonpartisan Congressional Budget Office last week reported that the plan will increase the deficit to nearly $1 trillion in fiscal 2019, and that, by 2028, the national debt could equal nearly the entire value of all the finished goods and services produced in the country.
Republicans claimed that these massive tax cuts would pay for themselves and benefit all Americans. But retiring House Speaker Paul Ryan immediately backtracked on that pledge. Ryan said Congress would now “tackle the debt and the deficit” the tax cuts create, providing the GOP an excuse to make deep cuts to Social Security, Medicare, food stamps and other programs the neediest Americans depend on.
Americans are not fooled. A recent AFT- Democracy Corps poll found that most respondents have not personally benefited from the tax plan and are unhappy their wages are not keeping up with rising costs. They are angry the GOP plans to pay for tax cuts they don’t benefit from by shredding the social safety net. And they feel strongly the funds being redistributed to the rich should have been invested in public schools, healthcare or infrastructure.
Such investments are vital. Twenty- nine states still spend less on public education than they did before the Great Recession. And many states have seen devastating consequences after sharply cutting taxes. Kansas enacted an extreme form of trickle-down economics, on the premise that it would usher in an economic boom. Instead, state revenue plummeted, the deficit exploded and officials slashed spending on everything from road repair to Medicaid and public education. Kansans across party lines railed against the decimation of public goods and services, prompting the Legislature to pass a $1.2 billion tax increase last year, but the state is still struggling to fund essential public services.
Officials’ choices to cut taxes for the wealthy rather than invest in essential services lie at the heart of the teacher walkouts now gripping the country. In Oklahoma, income tax cuts and tax breaks for the oil and gas industry deprive the state of $1.5 billion a year. West Virginia lawmakers have cut taxes by more than $4 billion in the last decade.
These irresponsible tax cuts have made it impossible to, in Justice Holmes’ words, “pay for a civilized society.” In Oklahoma, textbooks are held together with duct tape, and, while a student was excited to be issued a textbook once used by country singer Blake Shelton, her mother was horrified to realize Shelton had used it nearly 40 years ago. Teacher pay in West Virginia and Oklahoma ranks 48th and 49th lowest, respectively, in the nation.
One of the starkest current examples of disinvestment is in Puerto Rico, where the governor is proposing to close 450 public schools in less than one year. In the wake of the devastation caused by recent hurricanes, this will further tear at the fabric of community life and promote the continuing exodus from the island.
Teachers, students and parents are standing up to prevent this catastrophe.
Meanwhile, it’s testing season in America’s schools. And while many so-called education reformers fixate on algorithms, outputs and accountability, the teachers waging these walkouts offer a reminder that, before anything else, we have to take care of the basics—investing in and supporting our students, their educators and their schools.
We all benefit from safe communities, great public schools and a civilized society. And we all have a responsibility to contribute our fair share to make that possible.

Sunday, March 01, 2015

Screw State Universities


But the current batch of GOP landslide beneficiaries in the states are not quite so lucky, at least so far. While the economy has slowly picked up pace since the first cohort of them took office in 2011, it’s hardly roaring. And it’s not clear who’s in a worse position: veteran Republicans in budget trouble because of tax cuts already passed, or the 2015 freshmen who took office promising tax cuts they have no way to pay for without deep budget cuts. An additional complication is the revenue crisis facing states—most of them governed by Republicans—depending disproportionately on oil and gas severance taxes, which have been decimated by the recent fall in world oil prices.
Some high-profile Republican governors and legislative leaders are in a particularly deep hole of their own making, and are taking on the state version of the political “third rail” by attacking higher education spending.
There are plenty of reasons why higher ed is an unusually tough place to cut, varying from the power of alumni to football and basketball and the perceived economic payoff of a good state university system. Still, during the depths of the Great Recession, virtually all states cut higher ed subsidies, which non-coincidentally produced a large wave of tuition increases. But some cut more than others, and are doing less to replace lost funding now that the economy’s doing better. Only eight states failed to increase per student higher ed spending in Fiscal Year 2014: Pennsylvania, Arkansas, Kansas, Wisconsin, North Carolina, Louisiana, West Virginia and Wyoming. And now in 2015 it generates headlines when significant higher education cuts are proposed, as in Kansas, Wisconsin, North Carolina and Louisiana.
You may note that these are all states with highly ideological Republican state administrations and legislatures. Kansas Governor Sam Brownback narrowly survived a reelection challenge focused on his credit-damaging tax cuts and unpopular education cuts; now, with little to lose, he’s back for more. In North Carolina, a state often matched with Kansas as a deliberate conservative policy experiment station, state legislators (guided by a conservative think tank founded by highly influential billionaire Art Pope) are seeking shutdowns in ideologically unfavored parts of the university system.

Thursday, June 09, 2011

The Big Lie must be exposed


 The big lie must be exposed.  The lie the rightwing has been perpetrating for nearly a generation. The lie that now almost all politicians in  the state have swallowed.  The lie claims the power of tax cuts to unleash entrepreneurialism, create jobs, grow the economy and generally improve everything but sliced bread.
    What happened in the economic crisis?  How did we get into this financial meltdown at a cost of over $20 trillion that cost many people their savings, their jobs, and  their homes.   And, why are we still suffering?  The film Inside Job : How Wall Street Became a Criminal Enterprise and Took Over Government, does a good job of answering these important questions in a comprehensible manner. 
  Anti tax radicals, promoters of  the lie, resist reasonable budgets at the state, county and city levels. The anti tax radicals repeat and repeat their slogans. They post endless comments on news stories.  Republicans in the California legislature continue to push this lie in order to protect their economic patrons  and they base their opposition to passing  a state  budget on this myth.
City and country budgets have lost tax revenues as property taxes, sales taxes, and utility taxes have declined.   As hundreds of jobs are lost,  the budget cut approach is making the recession worse.

This week we marked the 10th anniversary of the Bush tax cuts. Watching the corporate news this week, you might have missed the analysis that proves the only economic indicator that grew with the $2.5 trillion Bush giveaway was the gap between the rich and poor.

Tuesday, June 07, 2011

10 years of Bush Tax Cuts- the Results

http://blog.aflcio.org/2011/06/07/not-a-happy-anniversary-10-years-of-bush-tax-cuts/
 
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.