This piece is the fourth in a six-part series on taxation, and a joint project by The American Prospect and its publishing partner, Demos.
The “Buffett Rule” proposed by President Obama and now being considered by the Senate would be an important symbolic step toward a fairer tax system. By instituting a minimum tax on very high earners, it would advance the principle of progressive taxation and reform the tax code in an overdue way.
Paul Ryan's budget has become a rallying cry for Democrats, and President Obama's re-election in particular. Republicans have long expressed an antipathy for the general concept of government services, but these were often expressed in the abstract or lone exceptions, with the party generally focusing on the starve-the-beast philosophy of reducing taxes so that government outlays would eventually have to be reduced. Ryan's budget gets that down on paper in crystallized form, codifying those ideas into a specific vision for the future that would gut all government services except health spending, Social Security, and an increased budget for defense, discarding the rest of discretionary spending.
Democrats are doing everything they can to make the Buffett Rule as the predominant issue of the week before it is subjected to a Senate vote on Tax Day. The rule—named after Warren Buffett's frequent refrain that his secretary pays a higher effective tax rate than the multi-billionaire investor—would force multimillionaires to give up some of their tax breaks until they pay at least a minimum rate of 30 percent. Obama is headed to Florida tomorrow to promote the bill, while his campaign is highlighting the rule as a campaign issue in contrast to Mitt Romney's tax disclosures he released earlier this year, which revealed that the probable Republican candidate paid taxes of just 13.9 percent on his $21.7 million in income in 2010.
Via Ezra Klein, here are handful of charts from the Center on Budget and Policy Priorities that perfectly captures how Paul Ryan's budget would essentially wipe out all government services for those in need in order to fund a massive redistribution of wealth back up to those at the top of the income scale.
Paul Ryan, the supposed champion of fiscal restraint among right-wing Republicans, has put his colleagues in an awkward bind. His budget includes a host of unpopular provisions, and if implemented, would eviscerate almost every part of the government except defense, health care, and Social Security by 2050 according to the Center on Budget and Policy Priorities. Yesterday, all but 10 House Republicans entered their name in the congressional record as supporters of the bill, providing Democrats with ample material for negative campaigning this fall.
Last year's Save Texas Schools rally produced thousands of people, but education funding was still slashed by $5.4 billion. (Flickr/matthewjuran)
Last year, Save Texas Schools held a rally that wowed most of us covering it. Around 10,000 people came from across the state, traveling hours on buses to demand lawmakers prioritize education funding, and forego the unprecedented cuts the legislature's initial budget had proposed. In a state with little history of organization and few structures for bringing people together, the rally was an impressive success.
But here's the thing: Even with the public outcry, lawmakers went ahead and slashed education funding anyway.
Today the Virginia Senate will likely pass a budget. After weeks of deadlock, that's quite a feat in itself. But for Senate Democrats—who had already voted down two previous budgets and prompted a special session—the latest document is a much bigger victory.
Nevada Governor Brian Sandoval came into office with tough talk about taxes. Since then, it seems, he's grown disenchanted with Grover Norquist-style governance. For the second time in as many years, he's pushing to extend a group of temporary tax increases, rather than cut public-education funding. What is the world coming to?
Legislatures in Washington state and Virginia have both garnered plenty of national attention for their fights over culture wars—the push to recognize gay marriage and the controversial debate over requiring pre-abortion sonograms. But with their lawmaking sessions winding down, both states are in the midst of epic budget battles, that will almost definitely force them into special sessions. In both cases, parties out of power are using the budget debates to leverage their positions, gambles with big potential risks and payoffs should they succeed.
It was the finger jab heard round the world. Normally finger jabs do not make noise, but I'm confident that Arizona Governor Jan Brewer got even the air's attention as she stuck her digit at the president when the two met on an airport tarmac in January. Brewer has developed a strong reputation as a conservative—she championed Arizona's controversial immigration bill, among the most extreme in the country. She's pushing for a measure now to give public workers a 5 percent pay increase—so long as they give up their job protections. So far, fairly typical Republican stuff, right?
The best place in the country to appreciate the marvels of our interstate highway system is heading west out of Denver on I-70 in Colorado. The road climbs and dips at a steep grade, taking cars across the Rockies, a range that includes some of North America’s tallest mountains. Fifty or so miles out of town, the Eisenhower-Johnson Memorial Tunnel, which takes travelers underneath the continental divide, marks the highest point in the entire interstate system, at 11,155 feet. Building the first of the memorial tunnel’s two bores, the one named after Eisenhower, cost more than $100 million, an extraordinary sum at the time.
Ah, the old days when school buses were yellow, slow, and smelled funny. With state budget cuts to education around the country, more buses may soon stop being so yellow and instead become traveling billboards. (I'm guessing they're still going slow and smelly.)
After days of intense negotiations during which its membership in the eurozone seemed to hang by a thread, Greece finally reached an agreement today on the measures that will accompany the new loan package from its European partners and the International Monetary Fund.