CHART: As Services For Main Street Are Gutted, Richest Pay Lowest Taxes In A Generation

Last night President Obama and congressional negotiators cut a deal to keep the government running, cutting “$38.5 billion under current funding levels, per Republican demands,” and $78 billion below what Obama called for in his initial 2011 budget.

Yet as Republicans and Democrats continue to battle over the deficit within a political framing that includes taking aim at Pell Grants for low-income students — which Obama preemptively proposed to cut, calling summer grants “too expensive,” while Republicans want far deeper cuts than that — Head Start funding, and other programs from Main Street Americans, there is one group of Americans that seems to be getting away without having any sacrifices demanded of them: the very richest.
As this chart from from Wealth for the Common Good shows, the top 400 taxpayers — who have more wealth than half of all Americans combined — are paying lower taxes than they have in a generation, as their tax responsibilities have slowly collapsed since the New Deal era as working families have been asked to pay more and more:


There have been a handful of proposals by congressional progressives to once again put requiring more sacrifice from the luckiest among us back on the table. The Congressional Progressive Caucus recently unveiled a “People’s Budget” that would boost taxes on the wealthiest Americans, returning them to levels closer to where they were under Ronald Reagan’s first term — hardly socialism.
Yet these proposals have yet to gain steam, and the budget debate in Washington appears to revolve completely around cutting spending for Main Street Americans who’ve already been asked to pay too much during the recession. That’s why there’s a Main Street Movement demanding fair sacrifice and standing up for the great American middle class. Whether it succeeds may determine the fate of most hard-working Americans for a generation to come.

Congress Sends Tax Package to Obama; Estate Tax Kept at Lower Rate

Congress has sent President Obama a controversial bipartisan tax deal following its approval in the House. Just before midnight, the House voted to 277 to 148 to extend the Bush-era tax cut for the wealthiest Americans and reduce the estate tax in return for a 13-month extension of jobless benefits and a handful of tax credits for low- and moderate-income Americans. At least a quarter of the tax savings under the deal will go to the wealthiest one percent of the population. The only group that will see its taxes increase are the nation’s lowest-paid workers. A group of House Democrats failed in their attempt to block a provision that reduces the estate tax; their proposal to increase the estate tax was defeated in a stand-alone vote of 233 to 194.

Way to go US DEMS--- thanks (ass holes)

House Dems Reject Obama-GOP Tax Deal

The Senate appears headed toward approval of President Obama’s controversial fiscal deal with Republicans amidst an uproar by Democratic members of the House. This week, Obama agreed to extend the Bush-era tax cut for the wealthiest Americans and reduce the estate tax in return for a 13-month extension of jobless benefits and a handful of tax credits for low- and moderate-income Americans. According to the New York Times, at least a quarter of the tax savings under the deal will go to the wealthiest one percent of the population. The only group that will see its taxes increase are the nation’s lowest-paid workers. The Senate has scheduled a test vote on Monday after opening debate on the measure last night. Meanwhile in the House, the Democratic caucus passed a non-binding measure denouncing the tax deal. At the White House, President Obama urged lawmakers to drop their opposition.

President Obama: "The average American family will start 2011 knowing that there will be more money to pay the bills each month, more money to pay for tuition, more money to raise their children. But if this framework fails, the reverse is true. Americans would see it in smaller paychecks that would have the effect of fewer jobs. So as we meet here today to talk about one important facet of our economic strategy for the future, I urge members of Congress to move forward on this essential priority."

Senate GOP Blocks "Don’t Ask, Don’t Tell" Repeal, DREAM Act, 9/11 Settlement

The U.S. Senate has failed to advance a measure that would repeal the military’s ban on openly gay and lesbian servicemembers known as "Don’t Ask, Don’t Tell." On Thursday, the Senate fell three votes short of advancing a military spending bill with a repeal provision attached. The vote raises the prospect that the ban will not be repealed before Republicans take over the House and weaken the Democrats’ Senate majority next month. In another vote, Republicans also blocked a measure to advance the DREAM Act, a provision that would grant undocumented young people a chance at citizenship. Republicans also blocked a measure to provide up to $7.4 billion to workers sickened during the cleanup at the World Trade Center following the 9/11 attacks. The measure passed the House earlier this year.

Fair play: Monkeys share our sense of injustice

-Fran De Waal

HOW often have you seen rich people take to the streets, shouting that they're earning too much? No, I thought not. Protesters are typically blue-collar workers yelling that the minimum wage has to go up, or that their jobs shouldn't go overseas. No really, although they should, see Value and cutlure article Lately, however, we have been hearing a new chorus, exclaiming that none of those fat cats on Wall Street or the City should be compensated for bad behaviour. No golden parachutes for those greedy bloodsuckers!

Concern about fairness is always asymmetrical (stronger in the poor than the rich), and the underlying emotions aren't half as lofty as the ideal itself. It is true to say that our sense of fairness seldom transcends self-interest, that it is seldom concerned with something larger than ourselves. Look at how it starts in life. Children react to the slightest discrepancy in the size of their slice of pizza compared to their sibling's. Their shouts of "That's not fair!" never transcend their own desires.

Study: Half the World’s Poor Live in South Asia

A new study says more than half of the world’s poor live in South Asia, while a quarter live in Africa. According to the UN’s new multidimensional poverty index, there are more poor people in eight states in India than in all of sub-Saharan Africa.

The Myth of Haratio Alger: America Ranks Toward the Bottom of Social Mobility

By Jonathan L. Walton
March 18, 2010
 
The myth of American success is one of the most enduring ideals of this nation. Wrapped in the language of liberty and freedom, this myth promulgates the belief that every person born in America is afforded a clean slate of equal opportunity. Though this myth has adjusted itself to each generation, two themes remain consistent: Neither family lineage nor class can control one’s destiny. And moral virtue and personal character determine one’s success in life. This is why the narratives of self-made men and women are a central part of American culture and religious life. (But so are Santa Claus and the Easter Bunny!)

OECD Reprot

The Organization for Economic Co-Operation and Development (OECD) has released a report that should deflate this nation’s inflated sense of self and fundamentalist devotion to “free-markets.” According to their findings, social mobility measured according to earnings, wages and education across generations is relatively low in relation to other developed nations such as Canada, Denmark, Sweden, Germany and Spain.
For instance, in terms of earnings levels, nine developed countries, including France, offer greater mobility than the United States. The U.S. only tops Italy and Great Britain. And the U.S. ranks the highest in terms of the influence of parental background on student achievement in secondary education.

So what’s the moral of the story? If you want your children to have more opportunity than you, pack your bags and move to Sweden! Or maybe, as Americans, we can stop promoting the lie of “rugged individualism” and “personal liberty” and acknowledge how much our nation needs sound governmental regulations and social policies such as healthcare reform, reinvestment in public education, and a living wage to short-circuit this nation’s dash to the bottom.

See also Raj Patel:
Rich dad poor dad
Class mobility in the U.S.
Geoge Carlin:
the American Dream