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Economy

Even David Koch Says The GOP Is Wrong On Taxes

David Koch, one half of the pair of billionaire brothers who have pumped millions into the Republican infrastructure, admitted today that even he thinks that the Republican Party has strayed too far too the right:

Koch said he thinks the U.S. military should withdraw from the Middle East and said the government should consider defense spending cuts, as well as possible tax increases to get its fiscal house in order – a stance anathema to many in the Republican Party.

I think it’s essential to be able to achieve spending reductions and maybe it’s going to require some tax increases,” he said. “We got to come close to balancing the budget, otherwise we’re in a terrible deep problem.”

Koch’s disagreement with the GOP’s hard right turn must not be too serious, however. According to Politico, Koch-backed groups still play to spend $400 million this election cycle to buy control of the federal government for Republicans.

7 Facts About Mitt Romney’s Economic Plan He Doesn’t Want You To Know

Mitt Romney will officially accept the Republican nomination for president at the party’s national convention tonight, and in his speech, he will undoubtedly talk about the economy and his supposed plan to spur growth and speed up the recovery. Romney’s plan is notorious for its lack of specifics, but through the few details he has provided, ThinkProgress compiled seven facts about his economic policies that he likely won’t mention in his speech tonight:

1) It gives the rich and corporations a massive tax cut. Romney’s proposal to give every American a tax cut is a giveaway to the rich that is four-times larger than the Bush tax cuts. Half the benefit would go to the richest five percent of Americans, and each member of the top 0.1 percent would get at least a $264,000 cut. Romney says he will balance the cuts with the closure of tax loopholes, but he can’t name which ones he’d close and even if he did, the plan wouldn’t generate enough revenue to offset revenue lost to tax reductions. His corporate tax plan, meanwhile, results in more than $1 trillion in tax cuts.

2) It raises taxes on the middle class. A Tax Policy Center analysis found that Romney’s plan would raise taxes on middle class families by up to $2,000 if he were to keep his promise to maintain the current level of revenue. A later analysis that added in the cost of Romney’s corporate tax cuts nearly doubled the size of the tax hike on the middle class to as much as $4,000 for a family of four.

3) It won’t balance the budget. Romney’s tax plan would add more than $10 trillion to the national debt if he doesn’t balance it with tax increases on the middle class or with spending cuts that are too impossibly large to fathom. Even if Romney closed every loophole for the rich, as he has promised to do, he would need 6.5 percent economic growth for five years to avoid adding to the debt. The economy hasn’t grown that fast over a five-year period since the early 1960s.

4) It won’t lead to economic growth. The last Republican president promised that supply-side policies like tax cuts for the rich would boost the economy and lead to job growth. They didn’t. Romney is trying the same policies (Bush, “just updated,” as one RNC official put it), despite overwhelming evidence that they don’t work.

5) It will make it easier for corporations to dodge taxes and outsource jobs: Romney’s plan to switch to a territorial tax system will make it easier for corporations to stash their profits in off-shore tax havens. It would also make it easier for corporations to outsource American jobs. In all, economists estimate the plan could cost America 800,000 jobs.

6) It would put bankers between you and your student loans. Obamacare included a provision in the law that removed bankers from the federal student loan process, eliminating a middle-man and allowing borrowers to deal directly with the government. That reduced costs, saving students $100 billion. By repealing the healthcare law, Romney would put those bankers back in between students and government lenders, handing big banks billions of dollars in the process.

7) It won’t address the housing crisis. Romney’s economic plan had 59 points, but it failed to detail a plan to help America’s struggling homeowners. Instead, Romney says we should let the housing market “run its course and hit the bottom,” and that America shouldn’t “try to stop the foreclosure process.” His plan wouldn’t help the millions of Americans who are facing foreclosure or are underwater on their mortgages. It also ignores simple steps the government could take to help housing, and it has been criticized by Republicans in high-foreclosure states. Romney has since tried to reverse course, but he still offers no specifics.

As The Paralympics Open In London, Britain’s Government Cuts Aid To The Disabled

Today marks the beginning of competition for the London 2012 Paralympics, after the games’ opening ceremony last night. But at the same time, disabled citizens of the United Kingdom are facing huge cuts to their aid programs, as the Washington Post detailed:

Hundreds of thousands of disabled Britons are seeing their benefits cut or facing the prospect of diminished or eliminated aid. More than 15,000 unemployed disabled people a week are being reassessed by a contractor to determine whether they are fit to work. New, stricter guidelines mean that Britons who can roll themselves more than 200 yards in a wheelchair or read Braille could be considered able-bodied enough to find a job.

At the same time, the government is sending letters to nearly all disability beneficiaries, including those gainfully employed, warning that they will also soon need reassessments for other types of aid that help them cover a variety of costs, including home health-care workers and wheelchair-accessible cars.

By 2015, the government anticipates a 500,000-person reduction in those receiving Britain’s primary disability benefit. The number of claimants now stands at 3.4 million, up threefold since 1992.

“I would argue this is not about trying to get disabled people back into employment or off aid,” said former Paralympics gold medalist Tara Flood. “This is simply about going after a group of people the government has now decided is too expensive in these times. They are using the kind of ‘burden on society’ argument that is dehumanizing us.”

The UK, of course, has engaged in austerity in response to the economic crisis, following the same course as many of Europe’s major economies. The results, however, have been just the opposite of those austerity’s advocates predicted: the countries cutting the most are growing the least. The UK has even entered a double-dip recession, with an economy that is smaller than it was before the conservative government took power. That Britain’s government is cutting aid to the disabled in the midst of the Paralympics simply adds insult to injury.

World’s Richest Woman Says People Are Poor Because They’re Lazy Drunks

Gina Rinehart, the world's richest woman.

According to the world’s richest woman, low-income people are only poor because they don’t work hard enough, and because the government has coddled them with a minimum wage that is too high. Australian Gina Rinehart, who inherited her $30 billion fortune, said, “If you’re jealous of those with more money, don’t just sit there and complain. Do something to make more money yourself — spend less time drinking or smoking and socialising, and more time working”:

“There is no monopoly on becoming a millionaire,” she wrote in an industry magazine column.

“If you’re jealous of those with more money, don’t just sit there and complain. Do something to make more money yourself — spend less time drinking or smoking and socialising, and more time working.

“Become one of those people who work hard, invest and build, and at the same time create employment and opportunities for others.”

Rinehart blamed what she described as “socialist”, anti-business policies for the plight of Australia’s poor, urging the government to lower the minimum wage, as well as taxes, unless it wanted to end up like Greece.

Australian Treasury minister Wayne Swan replied, “These sorts of comments are an insult to the millions of Australian workers who go to work and slog it out to feed the kids and pay the bills.” Former Prime Minister Kevin Rudd called Rinehart’s comments about the minimum wage “just plain wrong” and an “odd thing to say.” Australia’s minimum wage is $15.96 per hour.

Rinehart is not the only one of the the world’s richest people to weigh in on public policy recently. Last month, Carlos Slim, whose $65 billion fortune makes him the world’s richest person, said countries that are struggling economically should raise their respective retirement ages to 70.

NEWS FLASH

5 Charts That Show America’s Middle Class Has Deteriorated | America’s middle class suffered its “worst decade in history” in the first years of the 21st century, but as these charts from the Center for American Progress’ David Madland and Nick Bunker show, the decline of the middle class started decades ago. Stagnant wages for middle class families have come at the same time as exponential income gains for America’s top earners, driving income inequality to new heights. The effects on the middle class are widespread: middle class incomes have been stagnant for nearly 20 years, and the number of households that qualify for the middle class and the middle class’ share of income are both falling. At the same time, every day goods are more expensive, driving those families further into debt:

(click to enlarge)

Bush Administration Praised Closure Of Auto Plant That Ryan Now Blames On Obama

Rep. Paul Ryan (R-WI) claimed during his convention speech Wednesday that President Obama is responsible for the closure of a GM plant in Janesville, Wisconsin. However, as many media outlets have noted, GM announced plans to close the plant in June ’08 — long before Obama was even elected — and it ceased major operations in December of that year.

For proof, just ask one of the more prominent supporters of the Janesville plant shutdown — the George W. Bush Administration. After all, the closure was part of a broader GM restructuring initiative that the then-President supported. White House Press Secretary Dana Perino even praised it as evidence of GM “adapting well:”

The White House called the announcement a sign that the auto giant was “adapting well” to market shifts.

“It’s a sign that Detroit continues to adapt and evolve and address the change in consumer tastes and attitudes. And I think that they’re adapting well,” spokeswoman Dana Perino said.

“And they’ll make these changes, and hopefully be able to pull themselves up out of what has been a rough several years,” she said. …

GM plans to shutter production at its Toluca, Mexico, pickup truck at the end of the year and its Oshawa, Canada plant will be closed in 2009. Plants in Moraine, Ohio and Janesville, Wisconsin, are slated for closure in 2010 “or sooner if market demand dictates,” GM said.

In keeping with the rest of the night’s theme of ignoring and whitewashing the Bush Administration’s disastrous record, Ryan failed to mention this inconvenient history.

LGBT

REPORT: Majority Of LGBT Public Sector Workers Lack Employment Protections

Our guest blogger is Hilary Brandenburg, intern at the Center for American Progress.

This weekend, Americans will take a day off from work to celebrate Labor Day, a day dedicated to the progress Americans have achieved in the workplace over the years. The U.S. Department of Labor website notes that Labor Day is a “yearly national tribute to the contributions workers have made to the strength, prosperity, and well-being of our country.” However, not all workers are equal under the law. LGBT workers continue to face high rates of workplace discrimination and often receive unequal benefits for equal work for them and their families.

Knowing this, the Center for American Progress and AFSCME, the American Federation of State, County, and Municipal Employees, the nation’s largest and fastest growing public services employees union, released a report entitled “Gay and Transgender Discrimination in the Public Sector: Why It’s a Problem for State and Local Governments, Employees, and Taxpayers.”

According to this report, a majority of state government employees are currently working in states that fail to offer legal protections to LGBT public sector workers. With approximately one million LGBT individuals in America working in state, local, or municipal government, only 21 states and the District of Columbia have any laws specifically protecting gay workers, and only 16 of those do so for transgender workers. Looking at coverage:

  • 57 percent of state employees work in a state where no legal protections are afforded to gay individuals.
  • 69 percent live in state where no legal protections are afforded to transgender individuals.
  • Only a minority of state employees (just over four in ten, or 42.6 percent) work in a state with a law prohibiting discrimination based on sexual orientation.
  • Only three in ten (31.8 percent) work in a state with a law also prohibiting discrimination based on gender identity.

Similarly, CAP and AFSCME find that a majority (53 percent) of state government employees do not have equal access to health insurance for them and their partners.

Discrimination and unequal treatment are unfortunate realities for far too many of our nation’s LGBT public sector workers. This is harmful to LGBT workers who all too often find themselves without a job or a way to make ends meet due to employment discrimination. This is harmful to running an efficient public sector, since discrimination imposes costs and inefficiencies for governments. And it is harmful to taxpayers, who are left with the bill to cover these costs.

Among many policy recommendations, this report calls on Congress to pass the Employment Non-Discrimination Act, EDNA, making discrimination against a worker based on their sexual orientation or gender identity a crime in all 50 states. States should similarly pass laws prohibiting discrimination against LGBT workers and laws the extend the full range of workplace benefits to employees with same-sex partners.

LGBT public servants go to work every day as firefighters, teachers, policemen and women, nurses, library workers, child care providers, and sanitation workers to provide for our communities, to help care for our children and families, and to keep America functioning. This Labor Day, we must continue to fight for progress and demand better for LGBT employees, taxpayers, and our public sector.


As GOP Looks To Cut Food Safety Budget, Tainted Mangoes Sicken 100 Americans

According to the Centers for Disease Control and Prevention, 103 people have been sickened by a salmonella outbreak linked to tainted mangoes that were grown in Mexico and circulated by a California-based company:

Illnesses were first confirmed July 1, and the majority of victims are in California, the CDC said.

The bacterium found is salmonella Braenderup, the same type of germ that has sickened 22 people in Canada through tainted mangoes, according to the Public Health Agency of Canada. [...]

The CDC didn’t disclose the origin of the mangoes that sickened people in the U.S., but California-based produce distributor Splendid Products LLC is recalling Daniella brand mangoes grown in Mexico that it shipped to stores in the U.S., a company official said Wednesday.

Outbreaks such as this one would be much harder to detect and contain if House Republicans get their way. The Obama administration requested $4.5 billion for the Food and Drug Administration for 2013, since the agency is implementing the 2011 Food Safety Modernization Act, the most comprehensive update of America’s food safety laws in years. The House Republican budget, however, provides $3.8 billion, continuing the GOP’s attempts to undermine the new law. The Office of Management and Budget called the GOP’s level of funding “harmful” to food safety regulations.

These cuts would come as foodborne illness rates are on the rise. Of five key pathogens tracked by the CDC, just one saw a decrease in infections between 2007 and 2011. Each year, one out of six Americans suffer from a foodborne illness, with 128,000 resulting in hospitalization and 3,000 resulting in death.

MSNBC Hosts Grill GOP Governor On Ryan’s Auto Bailout Tall-Tale

During his speech before the Republican National Convention last night, Vice Presidential candidate Paul Ryan blamed President Obama for the closing of a Janesville, Wisconsin, General Motors plant. “A lot of guys I went to high school with worked at that GM plant. Right there at that plant, candidate Obama said: ‘I believe that if our government is there to support you, this plant will be here for another hundred years.’ That’s what he said in 2008. Well, as it turned out, that plant didn’t last another year. It is locked up and empty to this day,” Ryan said.

While it is true that the plant is no longer open, the announcement that it would halt production was made in June 2008, months before Obama was even President-elect, never mind President (though the plant didn’t finish production until April 2009). The Obama speech to which Ryan is referring was delivered months before the plant had even decided to end production. As U.S. News & World Report’s Robert Schlesinger wrote, “I know the presidency is powerful but it seems a stretch to blame [Obama] for his auto bailout lacking the ability to go back in time to save an autoplant.”

However, that didn’t stop Gov. Scott Walker (R-WI) from parroting the tale last night during an interview on MSNBC. But Walker, when challenged by MSNBC’s Rachel Maddow, Ed Schultz, and Al Sharpton, could only claim that a “managed bankruptcy” run by the “private sector” might have kept the plant open. Watch it:

Mitt Romney makes the same claim regarding the rescue of the auto industry, saying that a private sector intervention would have been preferable. But the government stepped in precisely because the private sector had no interest in financing a bankruptcy for GM and Chrysler. Auto industry insiders and reporters who covered the industry have dismissed Romney’s view as “reckless,” “dishonest,” and “pure fantasy.” Even other Republicans have corrected Romney’s version of the story.

As The Economist noted, “the credit markets were bone-dry, making the privately financed bankruptcy that Mr Romney favoured improbable. He conveniently ignores this bit of history.” But Walker is still touting Romney’s impossible solution as a magical path that would have kept Janesville’s plant open, in order to dishonestly blame Obama for events over which he had no control.

Election

6 Worst Lies In Paul Ryan’s Speech

Vice presidential candidate Rep. Paul Ryan (R-WI) is taking flack on the morning news shows for his keynote address at the Republican National Convention Wednesday night. His speech was riddled with false claims, so much so that even Fox News wrote, “To anyone paying the slightest bit of attention to facts, Ryan’s speech was an apparent attempt to set the world record for the greatest number of blatant lies and misrepresentations slipped into a single political speech.”

Here are the most glaring lies from his speech:

1. “A downgraded America.” Ryan blamed the president for the nation’s credit downgrade in August 2011 after Republicans threatened to allow the government to default on its debt for the first time in history. But the ratings agency explicitly blamed “Republicans saying that they refuse to accept any tax increases as part of a larger deal.”

2. “More debt than any other president before him, and more than all the troubled governments of Europe combined.” Romney has made the almost identical claim, that Obama has amassed more debt “as almost all of the other presidents combined.” But their math doesn’t add up: when Obama took office, the national debt was $10.626 trillion. It has increased to slightly above $15 trillion.

3. Shuttered General Motors plant is “one more broken promise.” Ryan described a GM plant that closed down in his hometown, Janesville, Wisconsin, and blamed Obama for breaking his promise to keep the plant open when he visited during his campaign. But Obama never made that promise, and the plant shut down in December 2008, before Obama even took office.

4. Obama “did exactly nothing” on Bowles-Simpson. Ryan said, “He created a bipartisan debt commission. They came back with an urgent report. He thanked them, sent them on their way, and then did exactly nothing.” In fact, Ryan was instrumental in sabotaging the commission, leading the other House Republicans in voting against the plan.

5. “$716 billion, funneled out of Medicare by President Obama.” Ryan’s favorite lie is a deliberate distortion of Obamacare’s savings from eliminating inefficiencies. Furthermore, Ryan’s own plan for Medicare includes these savings. Romney has vowed to restore these cuts, which would render the trust fund insolvent 8 years ahead of schedule.

6. “The greatest of all responsibilities is that of the strong to protect the weak.” Ryan closed the speech with an invocation of social responsibility, saying, “The truest measure of any society is how it treats those who cannot defend or care for themselves.” However, numerous clergy members have condemned Ryan’s budget plan as “cruel,” and “an immoral disaster” because of its devastating cuts in social programs the poor and sick rely on. Meanwhile, Ryan would give ultra-rich individuals and corporations $3 trillion in tax breaks.

Econ 101: August 30, 2012

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.

  • Citigroup has agreed to pay $590 million to settle claims that it deceived investors during the financial crisis. [Wall Street Journal]
  • The Romney campaign is promising to flesh out details of Romney’s tax and spending plans before the November election. [Politico]
  • Chicago Public School teachers gave their 10-day notice of intent to strike, as they work on a new contract with the city. [New York Times]
  • The Commerce Department revised its estimate for second quarter economic growth up to 1.7 percent. [New York Times]
  • Barclays — the bank at the center of a rate-rigging scandal — has named a new CEO. [New York Times]
  • European Central Bank chief Mario Draghi is pushing back against German criticism. [Financial Times]
  • Hurricane Isaac is expected to cause up to $1.5 billion in damage. [CNN Money]
  • Pending home sales hit their highest level in two years in July. [The Hill]
  • The French government is proposing a plan to publicly cover most of the cost for employers to hire young workers. [Huffington Post]
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