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Economy

Krugman Debunks Claim That Businesses Pay ‘The Single Highest Tax Rate In The World’

Nobel Prize winning economist Paul Krugman hit back against the GOP’s claim that American businesses pay the highest corporate taxes in the world during an appearance on ABC’s This Week Sunday morning, lashing out at Mitt Romney’s California campaign co-chair and former Hewlett Packard CEO Carly Fiorina.

Fiorina — who unsuccessfully challenged Sen. Barbara Boxer’s (D-CA) senate seat in 2010 — insisted that “we now have the single highest business tax rate in the world” and claimed that companies are moving jobs overseas to avoid this burden. Krugman snapped back against her assertion, noting, “nothing you said about business taxes is actually true”:

FIORINA: We now have the single highest business tax rate in the world. Guess what, with the highest tax rate in the world, we see the same thing around the world as we see in states. States with lower tax rates have more jobs, more people. People leave states with higher tax rates. The data is crystal clear.

KRUGMAN: Nothing you said about business taxes is actually true. …. If you look at the actual tax collections in the United States on business, they’re lower than other advanced countries. And if you look at the alleged finding that high business taxes cause job loses in states, it goes away. Kick the tires even slightly and the whole thing falls apart. It’s just not true.

Watch it:

Indeed, a recent study from the Center for Tax Justice (CTJ) found that “the U.S. is already one of the least taxed countries for corporations in the developed world.” As a share of GDP, the U.S. had the second lowest tax rate, behind only Iceland. In 2009, U.S. corporate taxes had fallen to only 1.3 percent of GDP, from 4 percent in 1965.

The Political Economy Research Institute at the University of Massachusetts concluded that “the worst fears of the policy debates over raising additional revenue from high-income households to sustain spending on public services are unlikely to materialize.” Millionaires will attempt to avoid higher taxes by changing the composition of their incomes, but don’t, in fact, move to avoid the higher fees.

Climate Progress

A Critique Of The Broken-Record Counterfactual Message of The New York Times On Environmentalists and Scientists

Broken Countrywide Record

The New York Times keeps running opinion pieces and analyses that misstate the positions of the major environmental groups and even leading scientists.

A classic example is the Dot Earth post from Friday headlined, “A Critique of the Broken-Record Message of ‘Green Traditionalists’.” I will show that this critique is pure bunk. Indeed, this critique isn’t merely untrue, it is the exact opposite of the truth.

Amazingly, we will even see that the critique contains an utterly false attack on “a bunch of scientists” who just published a major report. But people just don’t click on links, I guess.

The New York Times post begins by stating that Keith Kloor “has an essay posted on Discover, titled ‘The Limits to Environmentalism,’ that is well worth reading.” The NY Times then reposts this introduction with a link to the rest:

If you were cryogenically frozen in the early 1970s, like Woody Allen was in Sleeper, and brought back to life today, you would obviously find much changed about the world.

Except environmentalism and its underlying precepts. That would be a familiar and quaint relic. You would wake up from your Rip Van Winkle period and everything around you would be different, except the green movement. It’s still anti-nuclear, anti-technology, anti-industrial civilization. It still talks in mushy metaphors from the Aquarius age, cooing over Mother Earth and the Balance of Nature. And most of all, environmentalists are still acting like Old Testament prophets, warning of a plague of environmental ills about to rain down on humanity.

For example, you may have heard that a bunch of scientists produced a landmark report that concludes the earth is destined for ecological collapse, unless global population and consumption rates are restrained. No, I’m not talking about the UK’s just-published Royal Society report, which, among other things, recommends that developed countries put a brake on economic growth. I’m talking about that other landmark report from 1972, the one that became a totem of the environmental movement. [Read the rest.]

No and no.

This analysis, which would have been relevant 20 years ago, is simply the opposite of the truth today.

Indeed, anyone who follows the history of the environmental movement knows that the most serious complaint offered against it these days is that it has become too corporatist and too focused on the techno-fix. I’m not saying I agree with that critique 100%, but it has far more truth to it than this critique.

If you look at the major environmental groups — the ones with the power and money that this analysis purports to be about — they all work closely with industrial corporations, generally take lots of industry money, and they aggressively supported a climate bill that was absurdly pro-technology and pro-industry, that was business friendly and market oriented.

The climate bill was entirely about pushing any low carbon technology into the marketplace — including nuclear power. The bill had staggeringly generous subsidies for pretty much every industry, including many billions for the coal industry to help it develop technology to save its ass.

And the broken-record New York Times simply seems unable to acknowledge that the tens of millions of dollars spent to promote the climate bill was done by focusing on the pro-technology message and utterly downplaying the threat of climate change. The primary focus of the messaging was on clean energy jobs, along with energy security and the threat of international competition — industrial competition.

While the NY Times is oblivious to this, it did not escape the attention of the Washington Post’s Ezra Klein, who wrote about it in his 2010 article,Can you solve global warming without talking about global warming?

This notion that the environmental movement — or any other major play in the media landscape — is pushing non-stop apocalyptic messages like a broken record is one I debunked in this post “Apocalypse Not: The Oscars, The Media And The Myth of ‘Constant Repetition of Doomsday Messages’ on Climate” (excerpted at the end).

To see what message they are pushing, please visit the front page of the websites of The Sierra Club and the Natural Resources Defense Council — and of the enviro groups with the really big revenues — the World Wildlife Fund, and National Wildlife FederationNational Audobon Society, the Nature Conservancy. Apocalypse not!

UPDATE: Dr. Robert J. Brulle of Drexel University, author of two books and some 20 refereed articles on the U.S. environmental movement – whom the NY Times has called “an expert on environmental communications” — emailed me after reading my post:

This opinion piece by Mr. Kloor and Mr. Revkin is, generously speaking, highly problematic. It ignores a vast amount of scholarship on the environmental movement. It seems very difficult to me to understand how Mr. Revkin can maintain his argument that his opinion blog is “science based”and run something like this. There is apparently a double standard in operation, where the physical sciences are taken into account, but the social sciences are not. I would expect more fidelity to the empirical research on this topic from the NY Times. Perhaps a good start on becoming conversant with this material might be the books of two previous NY Times environmental reporters –Mark Dowie’s Losing Ground and Philip Shabecoff’s A Fierce Green Fire.

As an aside, the notion that being anti-nuclear is somehow a litmus test for proving environmental groups are “Green Traditionalists” stuck in the 1970s is particularly absurd.  The Economist just published a 14-page report, “Nuclear energy: The dream that failed, A year after Fukushima, the future for nuclear power is not bright—for reasons of cost as much as safety.” Is there a more pro-corporation, pro-technology mainstream global publication than The Economist?

And then we come to the utter misrepresentation of the “just-published Royal Society report,” People and the Planet. Reading the NY Times, you’d get the impression that this is somehow a doom and gloom report about how “the earth is destined for ecological collapse” if we don’t reverse course. And you’d also believe that a “bunch of scientists” have written a jeremiad that “recommends that developed countries put a brake on economic growth.”

Not. And not.

Anyone who knows the Royal Society – the UK’s national academy of science, founded in 1660 — knows that like most big scientific bodies, it tends to be pretty staid and conservative. The Royal Society’s motto is apt:  Nullius in verba — Latin for “On the words of no one” or “take nobody’s word for it.”  It is “an expression of its enduring commitment to empirical evidence as the basis of knowledge about the natural world.”

So when someone attacks the Royal Society scientists, it’s a pretty good idea not to take their word for it. And in fact the report is pretty darn mild given the dire nature of our situation. More important, it most certainly does not recommend developed countries put a brake on economic growth.

If you go to the link the New York Times provided, here’s what the Royal Society has to say about our situation:

Read more

Politics

Top Republican Strategist Denies Women Are Paid Less Than Men

This morning, during a heated discussion with Rachel Maddow on Meet The Press, GOP consultant Alex Castellanos denied that women make 77 cents for a man’s dollar in the workplace and noted, “there are lots of reasons for that.” Maddow expressed shock at the assertion, but concluded that it explained why Republicans and Mitt Romney are so hesitant to embrace the Lilly Ledbetter Fair Pay Act of 2009, a law that helps women hold accountable employers who discriminate in the pay practices based on gender.

“Now we know, at least from both of your perspectives,” Maddow said, pointing to Castellanos and Romney surrogate Rep. Cathy McMorris Rodgers (R-WA), “women are not fairing worse than men in the economy that women aren’t getting paid less for equal work.” “It’s about policy and whether or not you want to fix some of the structural discrimination that women really do face that Republicans don’t believe is happening,” she added. Castellanos responded to Maddow’s policy argument by remarking on her passion, to which the MSNBC host took offense:

CASTELLANOS: It is about policy and I love how passionate you are. I wish you were as right about what you’re saying as you are passionate about it. I really do.

MADDOW: That’s really condescending. This is a stylistic issue. My passion on this issue is actually me making a factual argument on it.

Watch it:

In an interview with ABC News’ Diane Sawyer earlier this month, Romney refused to say whether he would sign the Lilly Ledbetter Act, but claimed that he would not change it. Romney’s women surrogates — including McMorris Rodgers — all voted against the legislation. Castellanos himself consulted Romney during the 2008 presidential election.

Election

Boehner: Romney’s Wealth Won’t Hurt Him Because ‘The American People Don’t Want To Vote For A Loser’

Presumptive Republican presidential nominee Mitt Romney has struggled to connect with average voters throughout his campaign, but that won’t hurt him in the general election, House Speaker John Boehner (R-OH) said Sunday.

Asked by CNN’s Candy Crowley whether Romney’s wealth presented him with a “hill to climb” in tough economic times, Boehner said it wouldn’t because “the American people don’t want to vote for a loser”:

CROWLEY: You know, he comes from a privileged background. You did not come from a privileged background. This is a time — an economic time when people are hurting and have been hurting for quite some time.

Do you think that someone who is as wealthy as he is, who has had as much privilege as he is, has a hill to climb to overcome that?

BOEHNER: No. The American people don’t want to vote for a loser. They don’t want to vote for someone that hasn’t been successful. I think Mitt Romney has an opportunity to show the American people that they, too, can succeed.

Romney has consistently reminded voters of his wealth, noting that he is friends with the owners of NASCAR and pro football teams, that his wife has “a couple of Cadillacs,” or that he doesn’t consider $374,000 in speaking fees to be “very much.” That top Republicans consider Americans who don’t enjoy those luxuries losers or unsuccessful, however, may be why its nominee has had such a tough time gaining favor with average voters throughout the 2012 election.

Climate Progress

Backfilling Nuclear Shutdowns With Efficiency And Renewables In Japan, Germany And California?

by James Newcomb, via the Rocky Mountain Institute

Electric utilities and policymakers in Japan and Germany have been scrambling for months to find ways to compensate for nuclear power plants shut down in the aftermath of Fukushima.

In both instances, fossil fuels are part of the stopgap solution to offset the declines in nuclear generation in the short term, but longer-term energy policies are shifting definitively toward efficiency and renewables. Now, the unexpected and indefinite shutdown of both units at the San Onofre Nuclear Generating Station in Southern California has raised questions about California’s short-term electricity supply options and long-term contingency plans.

Not surprisingly, efficiency, demand response, and renewables could play a key role in helping to diversify and mitigate risks for Southern California’s electricity supply future. The solutions being pioneered in these three markets, while driven by different circumstances, all take advantage new smart grid technologies to manage and integrate distributed resources.

Read more

NEWS FLASH

Joel Osteen: ‘The Scripture Says That Being Gay Is A Sin’ | Mega church leader Joel Osteen reiterated his belief that “the scripture says that being gay is a sin,” telling Fox News’ Chris Wallace Sunday morning, “my faith is based on what I believe the scripture says and that’s the way I read the scripture.” Asked if gay people are entitled to equal rights, Osteen insisted “I don’t think we should discriminate against anybody” before adding, “I am not for gay marriage.” Watch it:

Climate Progress

America’s Top 25 Cities For Public Transportation

the DC Metro (by: MJM/Mike, creative commons license)by Kaid Benfield, via NRDC’s Switchboard

Which are the best US cities for those who need or prefer to use public transportation?  New York, San Francisco, Boston, Washington, and Philadelphia – in that order – according to the terrific organization Walk Score, whose range of services offered to the public just keeps getting better and better.

Today, Walk Score is releasing its first ranking of city transit systems, revealing which, by their calculations, offer residents the best access to public transportation.  The rankings are based on the organization’s Transit Score, a GIS-based set of calculations that is a companion service to the organization’s flagship walkability rankings.  Transit Score, according to the organization in a press release, “measures how well a location is served by public transportation, and is based on data released in a standard open format by public transit agencies.”

Here are the top 25 cities, listed with the Transit Score for each:

(1)     New York (Transit Score: 81)

(2)     San Francisco (Transit Score: 80)

(3)     Boston (Transit Score: 74)

(4)     Washington, DC (Transit Score: 69)

(5)     Philadelphia (Transit Score: 68)

Chicago's El (by: vincent, creative commons license)

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