ThinkProgress Logo

Economy

Bachmann’s Jobs Plan: Corporate Tax Giveaways, Deregulation, and Drill, Baby, Drill

Rep. Michele Bachmann (R-MN) today released her “American Jobs, Right Now” Blueprint for Economic Prosperity and Job Creation, ahead of yet another GOP presidential primary debate tonight. The one-page plan, of course, contains many of the same tired ideas Bachmann has been promoting on the campaign trail. Here are the highlights:

CORPORATE TAX GIVEAWAYS: Bachmann has consistently called for a corporate tax repatriation holiday which would cost billions but, if history is any indication, result in few job gains. The last time Congress approved such a holiday — which Bachmann calls “true stimulus” — the companies that benefited the most cut hundreds of thousands of jobs.

REPEALING WALL STREET REFORM: Bachmann has loudly and proudly been calling for the repeal of the Dodd-Frank financial reform law, which she says is “killing the banking industry” (even as banks haul in record profits). The recession caused by Wall Street malfeasance has cost the country 14 million jobs, but Bachmann believes going back to that regulatory structure would lead to job growth.

DRILL, BABY, DRILL: Bachmann plans to create more than 1 million jobs via more drilling for oil, using an oft-repeated statistic that “exaggerate[s] the effect that looser drilling policies would have on employment,” never mind ignoring the environmental destruction that could occur.

REPEALING FANTASY REGULATIONS: Bachmann claims that “business owners have lost economic liberty under the weight of $1.8 billion annually in compliance costs with government regulations.” This number is pure fantasy, cooked up by right-wing business groups intent on allowing corporations to pollute at will and treat their workers however they see fit.

CUTTING TAXES FOR THE RICH: Bachmann pays lip service to reforming both the corporate and personal income taxes, but the only concrete tax cut that she lays out is eliminating the estate tax, which would aid only the richest households in the country, while creating no jobs.

The rest of Bachmann’s plan consists of nothing but platitudes (like the bullet entitled PAVE A PATHWAY FOR INNOVATION that, quite literally, has no proposal in it). It almost would have been better if Bachmann had simply signed her name to the Romney campaign’s caricature of Rick Perry’s jobs plan.

Cain Adviser: Asking Whether ’999′ Plan Raises Taxes On The Poor Is Just ‘Washington Thinking’

As we’ve been reporting, GOP 2012 presidential candidate Herman Cain’s “999″ tax plan — which would eliminate all taxes in favor of a 9 percent income tax, 9 percent corporate income tax, and 9 percent national sales tax — would wallop low-income Americans (all of the candidate’s protestations notwithstanding). On average, the lowest-income Americans would see their tax rate multiplies nine times, from about 2 percent to about 18 percent, under Cain’s plan.

But according to Rich Lowrie, the Wells Fargo wealth manager who helped Cain craft the plan, it’s just “Washington thinking” to try and deduce how hard Cain’s plan will hammer those who can least afford it:

Lowrie says it’s just “Washington thinking” to look at whether modest-income Americans will wind up shouldering much more of the tax burden. He repeatedly refused to say how much more of the tax burden would be borne by the poor and middle class than under the current system. But he implicitly acknowledged the problem by saying that the campaign would “fix this” with a new empowerment-zone plan that would be laid on top of the 9-9-9 plan and would presumably lower taxes in inner cities.

Cain’s sales tax would be levied on just about everything, including food and housing (which have traditionally been exempted from sales taxes), pounding low-income Americans, who spend nearly all of what they earn in a given year on necessities. At the same time, Cain would eliminate investment taxes which, along with lowering the income tax rate all the way down to nine percent, would result in a massive tax windfall for the wealthy.

As Center for American Progress Vice President for Economic Policy Michael Ettlinger put it, the plan “would be the biggest tax shift from the wealthy to the middle-class in the history of taxation, ever, anywhere, and it would bankrupt the country.” But Lowrie “acknowledged that Cain didn’t care about progressivity,” which perhaps explains why he is so nonchalant about a plan that would unabashedly give poor Americans the short end of the stick.

Education

Senate Finally Proposes Changes To No Child Left Behind

Our guest blogger is Jeremy Ayers, senior education policy analyst at the Center for American Progress Action Fund.

Today Sen. Tom Harkin (D-IA) unveiled his long overdue plan, reportedly negotiated with Sen. Mike Enzi (R-WY), to revise the No Child Left Behind Act. In comments to press, Harkin explained, “we are moving into a partnership role with the states.” This bill is strong, he contends, because it “focuses on teaching and learning, not testing and sanctioning.”

The draft released today does take some important steps forward in making the law better, similar to proposals the Center for American Progress outlined earlier this year. But it takes one big step backward in terms of accountability, something Harkin seemed to acknowledge. The plan is certainly better than highly partisan, unworkable Republican proposals in the Senate and House, but it needs some significant improvements before it becomes law.

The Senate plan does a couple of things that parents and the public should welcome:

– Building the Talent: The Senate plan would ensure that teachers and principals get better feedback on how well they help students learn, and then make sure that information is used to improve their skills. Measures would be put in place to make sure every student gets an effective teacher, especially those least likely to have them — low-income students and students of color.

– Maximizing the Money: Many people think schools with poor students get more resources than other schools. But they often get less, which is partly due to a loophole in federal education law that papers over inequity. The Senate plan would close the loophole and require school districts to ensure that poorer schools get extra resources.

– Fixing the Problems: The Senate plan would focus on turning around struggling schools. It would provide resources for increasing student learning time and for addressing the non-academic needs of low-income students, such as medical or health services. The Senate plan would target specific interventions to the bottom 5 percent of low-performing schools, and it would require locally-devised efforts in another 5 percent of schools with large gaps between high- and low-achieving student groups.

However, the bill misses the mark by a wide margin in terms of accountability. The bill would not require states to set measurable, quantifiable goals for making progress with students. It would instead merely ask them to make “continuous improvement.” And there appear to be no consequences if states fail to hit even that broad target. That takes away all positive pressure to ensure states and districts effectively educate students, particularly low-income, minority, and disabled students.

To be sure, Congress cannot make schools better simply by telling them to get better. But absent goals and positive pressure to improve, some states will set the bar low, just as they did in the 1990s when federal law similarly asked for “continuous improvement.” Then, one state claimed making progress meant “not sliding backward,” while another said it would aim to decrease the number of students who scored at the bottom of the scale. That sounds more like a race-to-not-be-at-the-bottom than a race to the top.

Accountability isn’t the answer to all education problems. But neither is flexibility. Both work in tandem, and Congress should find a better, smarter balance between the two as it moves forward in the reauthorization process.

FLASHBACK: Romney Challenged Kennedy To Release Tax Returns — Will Romney Release His Own?

2012 GOP presidential hopeful Mitt Romney has no love for the Obama administration’s proposed “Buffett rule,” which seeks to ensure that the wealthy can’t pay lower taxes than the middle-class. “Class warfare like some members of the administration want to do is simply the wrong way to go,” Romney said on Fox News.

Part of Romney’s problem in opposing the Buffett rule is that it likely applies to him. An analysis of publicly available data by Citizens for Tax Justice found that Romney’s tax rate is likely 14 percent, far below the statutory rate for someone who earns as much as he does. Seeing Romney’s full tax return could provide a more complete picture of his tax situation, but so far, he hasn’t committed to releasing it:

The financial disclosure forms Romney filed during his 2008 presidential run showed the former Massachusetts governor was worth as much $250 million at the time. But Romney has never released any tax returns — neither during his campaigns for president and Senate nor during his time as governor — and would not commit to doing so this time around.

But in 1994, Romney vigorously called for then Sen. Ted Kennedy (D-MA) to release his tax returns, in order to prove that he had “nothing to hide”:

With the tax-filing deadline looming, Republican Senate candidate Mitt Romney yesterday challenged Sen. Edward M. Kennedy to disclose his state and federal taxes to prove he has ‘nothing to hide,’ but another GOP rival, John R. Lakian, called Romney’s move ‘bush league’ ‘It’s time the biggest-taxing senator in Washington shows the people of Massachusetts how much he pays in taxes,” said Romney, a business consultant from Belmont. Romney said he would disclose his own state and federal taxes for the last three years ‘on the very day that Kennedy turns over his taxes for public scrutiny.’ [Boston Globe, 4/19/94]

Eight years later, during his successful gubernatorial campaign, Romney played the same game, calling for his Democratic opponent to release her husband’s tax returns, even when he hadn’t released his own:

At the moment, however, Mr. Romney is trying to have it both ways. On April 16, he lambasted his most likely Democratic foe, Shannon O’Brien who discloses her tax return for filing separately from her husband who does not. The husband is Emmett Hayes, a former state representative and until recently a Beacon Hill lobbyist. One of Mr. Hayes’s clients was Enron. Mr. Romney is in high dudgeon that Ms. O’Brien hasn’t released Mr. Hayes’s tax forms with her own. ‘Her hands aren’t clean!’ he says…If Romney & Healey, who are candidates, won’t release their tax forms, they have no business demanding that Mr. Hayes, who isn’t a candidate, do so. [Editorial, Providence Journal Bulletin, 5/9/02]

Romney’s overall net worth is roughly $190-$250 million.

In Ohio Ad, Right-Wing Group Splices Pro-Union Grandma To Fake Endorsement For Anti-Union Law

This fall, Ohio’s voters will go to the polls to decide the fate of Senate Bill 5 (SB 5), the infamous anti-labor law that decimated the rights of many public employees in the state to collectively bargain. Ballot Issue 2 will allow voters to vote “yes” to maintain the law or “no” if they want it to be struck down.

As Ohio blog Plunderbund reports, the group Building a Better Ohio (which supports the anti-labor law) is airing a commercial which splices the words of a grandmother featured in a We Are Ohio ad (which is against the law) in order to make it seem like the grandmother supports SB5.

We Are Ohio’s ad features a Cincinnati grandmother Marlene Quinn explaining how her great-granddaughter Zoey was saved by Ohio firefighters and how this demonstrates why Ohioans need to protect firefighters’ rights and fund their operations properly. Watch the ad:

The pro-SB 5 Building a Better Ohio then took the footage from We Are Ohio’s ad of Quinn talking about the fire and cut her off right after she explained that, without firefighters, she wouldn’t have Zoey today. It then cut in by explaining that “she’s right” and claimed that voters should vote to maintain SB 5 because it would protect firefighters from being laid off. Watch it:

We Are Ohio put out a statement earlier today blasting Building a Better Ohio for using Quinn’s footage and warned that it may face legal liability for its actions. “Let me make this clear. Building a Better Ohio does not have permission, either from The New Media Firm who owns the footage, nor, and more importantly, Marlene Quinn, to use this footage,” said Michele Certo of Mundy Katowitz Media, which is assisting We Are Ohio.

Unfortunately, Building a Better Ohio’s splicing of Quinn’s words isn’t the only deceptive tactic being used to try to convince voters to support Issue 2. Local unions have pointed out that Building a Better Ohio is running billboards claiming that “Issue two asks government employees to help by paying 10 percent for their guaranteed pension and at least 15 percent for their health care insurance,” yet “94 percent of the public employees in the state of Ohio” already “meet or exceed those thresholds.”

Update

We Are Ohio tweets that numerous TV stations are now deciding not to air Building a Better Ohio’s ad.

Update

We Are Ohio is running a petition campaign to ask additional TV stations to not air Building a Better Ohio’s ad. Watch it here. Four stations have pulled their ads at this time.

Education

REPORT: Where Do The GOP Candidates Stand On Education?

Our guest blogger is Jennifer Steck, an intern with the Education Policy Team at the Center for American Progress Action Fund.

So far, all that the Republican presidential candidates have revealed about their education positions has been their supposed distaste for federal involvement in the education system and their particular ire for No Child Left Behind, the reworking of the Elementary and Secondary Education Act approved under former President George W. Bush. But have they always felt this way? And what about their positions on a host of other issues, from expanded learning time to charter schools? ThinkProgress has compiled the following report to help you sift through where the GOP candidates stand when it comes to education.

The Flip-Floppers

Mitt Romney: When it comes to the Department of Education, Mitt Romney exemplifies a flip-flopper. In 1994, he opposed it. In 2007, he supported it. Then, as a final act of indecision, he opposed it in a recent GOP debate. At least he has not flipped-flopped on other education issues. He has consistently supported No Child Left Behind, charter schools, and the ELT initiative. Here’s the proof. In 2005, Romney appropriated $6.5 million for the ELT initiative, and in 2007, he approved $37.7 million to be used for public schools districts that send students to charter schools.

“As I’ve been a governor and seen the impact that the federal government can have holding down the interest of the teachers’ unions and instead putting the interests of the kids and the parents and the teachers first, I see that the Department of Education can actually make a difference. So I supported No Child Left Behind.” (2007 GOP debate, 5/15/07)

Vs.

“Education has to be held at the local and state level, not at the federal level. We need to get the federal government out of education.” (2011 GOP debate, 9/22/11)

Rick Perry: The $4 billion budget cut Perry approved for education in 2011 says a lot about where his priorities lie. In fact, Perry refused to enter Texas in Race to the Top because he did not want to place Texas in the hands of “unelected bureaucrats.” Perry also opposes No Child Left Behind, although he appears to be following Romney’s flip-flopping strategy in this case, because when Bush first enacted NCLB, Perry lauded the idea and bragged that Texas was “a model” for it.

“Texas was a model for President Bush’s No Child Left Behind legislation, and we continue to lead the nation in innovative solutions to improve our schools. The U.S. Department of Education’s stamp of approval means we can move forward with our plan to improve early childhood education, dropout prevention, teaching excellence, science education and our schools’ use of technology.” (Press Release, 7/26/02)

Vs.

“Yeah, that’s a cool name [No Child Left Behind], but it’s a monstrous intrusion into our affairs.” (National Review, 4/4/11)

Read more

Cain Disputes Claims His Tax Plan Would Raise Taxes On The Poor, Even Though It Charges Them Nine Times More

ThinkProgress filed this report from the Values Voters Summit in Washington, DC

Former pizza magnate Herman Cain has surged into the top tier of Republican presidential candidates, firing up crowds with news of his “999″ tax plan that would lower income and corporate tax rates to 9 percent while levying a 9 percent sales tax on all purchased goods. At the Values Voters Summit in Washington this weekend, attendees were so excited about Cain’s plan that he didn’t even have time to finish saying its name before a raucous audience finished it for him.

But perhaps the crowds would not be so enthusiastic if they knew Cain’s plan would explode the federal deficit to levels unseen since World War II, or if they knew it contained a massive tax increase on the poor. Center for American Progress Director of Tax and Budget Policy Michael Linden detailed both of those results in a study of Cain’s plan, and ThinkProgress asked Cain about that study after his speech at VVS. Claims that “999″ would raise taxes on the poor, Cain said, were “erroneous,” and those who make the claims don’t have evidence to back them up:

WALDRON: Could you explain [the CAP study] that says your plan would increase taxes on the poorest Americans?

CAIN: That’s not true. This is what I’m saying. People make these claims. Did they give you any examples? No. I can give you examples that show it doesn’t. So the next time you hear these erroneous attacks, ask for numbers, and I bet they can’t, they can’t present them.

Watch it:

Linden’s study, however, does provide numbers. The poor currently pay roughly 2 percent of their income in taxes and are largely exempt from income taxes because they don’t make enough to qualify for even the lowest tax bracket. But under Cain’s plan, the average low-income American would pay 18 percent of his or her income in taxes — 9 percent on every dollar earned, and 9 percent on every dollar spent. A national sales tax rate like Cain’s primarily affects the poor, who spend all or nearly all of their yearly income.

Sunday, Cain himself provided a specific example of what this increase would look like, telling CNN’s Candy Crowley that food would not be tax-exempt under the plan. Only two states — Mississippi and Alabama — charge full sales taxes on food, and the resulting tax hike on the poor is so obvious that even Tea Party groups assumed Cain’s plan would exempt food from its 9 percent sales tax. But Cain dismissed that yesterday, all but proving that he stood pat with the Republican Party’s desire to force the poor to shoulder the cost of massive tax breaks for the wealthiest Americans.

NEWS FLASH

Poll: Two-Thirds Of Americans Want Higher Taxes On Wealthy | More than two-thirds of Americans, including 53 percent of Republicans, want wealthier people to pay more in taxes to help pay down the deficit, according to a new Bloomberg-Washington Post poll. (The two news organizations are sponsoring tonight’s GOP debate.) “Even larger numbers think Medicare and Social Security benefits should be left alone.” As former Reagan official Bruce Bartlett has written, more than 20 recent polls show Americans favor raises taxes on the wealthy, despite conservative claims otherwise.

Romney Flip-Flops On Wall Street Protests: ‘I Worry About The 99 Percent’

Republicans have had little but contempt for the ongoing protests on Wall Street and around the nation. House Majority Leader Eric Cantor (R-VA) called the protesters a “mob,” Herman Cain said they’re “un-American,” and Rep. Spencer “serve the banks” Bachus (R-AL) believes that the protests are “misdirected” and instead should be aimed at “job-killing regulations.” The conservative media have also done their part to dismiss the protesters as “freaks” who are “aligned with Lenin.”

However, some Republicans are a tad more wishy-washy. 2012 presidential hopeful Rick Santorum called the protesters a “fringe group” when he appeared on CNBC, but later said, “I understand the motivation behind the protests.” GOP frontrunner Mitt Romney, meanwhile, at first said that the protests are “dangerous.” But during a town hall in New Hampshire yesterday, he seized upon the protesters call for an economy that works for everybody, saying, “I worry about the 99 percent,” and added, “I understand how those people feel”:

I don’t worry about the top one percent. I don’t stay up nights worrying about ‘gee we need to help them.’ I don’t worry about that. They’re doing just fine by themselves. I worry about the 99 percent in America. I want America, once again, to be the best place in the world to be middle-class. I want to have a strong and vibrant and prosperous middle-class. And so I look at what’s happening on Wall Street and my own view is, boy I understand how those people feel…The people in this country are upset.

Watch it:

Earlier that very day, Romney criticized the protesters, saying, “all the streets are connected — Wall Street’s connected to Main Street — and so finding a scapegoat, finding someone to blame, in my opinion, isn’t the right way to go.” Romney didn’t explain how the protesters went so quickly from a “dangerous” group to such sympathetic figures. He also delivered both sets of remarks while joined by former Sen. Judd Gregg (R-NH), who is now working as an adviser for mega-bank Goldman Sachs.

Econ 101: October 11, 2011

Welcome to ThinkProgress Economy’s morning link roundup. This is what we’re reading. Have you seen any interesting news? Let us know in the comments section. You can also follow ThinkProgress Economy on Twitter.

  • Mega-bank Goldman Sachs “may report its lowest quarterly profit since the 2008 financial crisis,” while Wells Fargo “is headed for record earnings.” [Washington Post]
  • In a new draft plan, President Obama’s jobs council “is recommending an initiative to attract $1 trillion in foreign direct investment within five years and upgrade the nation’s transportation and energy infrastructure.” [Bloomberg]
  • According to the latest figures from the National Employment Law Project, “more than 6 million Americans are set to lose federal unemployment benefits in 2012, with 1.8 million running out in January alone.” [CNN Money]
  • Congressional Democrats “are pushing back aggressively against Republican attacks on the Occupy Wall Street protests in New York and Washington,” saying “the conservative criticism of the rallies is evidence that Republicans are out of touch with working-class Americans.” [The Hill]
  • The Volcker Rule, a key part of the Dodd-Frank financial reform law, “will begin to take shape this week.” [New York Times]
  • Thomas Sargent of New York University and Christopher Sims of Princeton University won the Nobel Prize in Economics yesterday for helping to “rewrite the models that central bankers and other economic policy makers use to analyze the likely effects of measures from tax increases to interest-rate cuts.” [Wall Street Journal]
  • Wall Street banks “have become full-time headhunters for some of their biggest hedge fund clients, a role that is rife with potential conflicts.” [New York Times]
  • The Obama administration’s Race to the Top program would become a permanent part of the nation’s education laws under a Senate draft proposal. [Education Week]

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up