A financial transaction tax could help ensure Wall Street works for Main Street

In a new report, EPI’s Josh Bivens and Hunter Blair write that a financial transaction tax (FTT).

What this report finds: A well-designed financial transaction tax (FTT)—a small levy placed on the sale of stocks, bonds, derivatives, and other investments—would be an efficient and progressive way to generate tax revenues. Gross revenues from a well-designed FTT would likely range from $110 billion to $403 billion. And net revenues (including offsets from reduced income, payroll and capital gains taxes, and increased borrowing costs) would likely be substantially higher than some other recent estimates indicate. This is mainly because other estimates’ assumptions about the volume of financial transactions an FTT would crowd out are too high, and because an FTT is likely to redistribute rather than reduce overall incomes. Regardless of the level of revenues raised, an FTT would be a win-win for the U.S. economy. Higher revenues would result in more funds for social insurance programs and much-needed public investments. Lower revenues would be the result of the FTT crowding out financial transactions of little value to the U.S. economy. This would boost Americans’ incomes through lowering fees on financial services, such as the management of 401(k)s and other accounts.

Why this matters: As the U.S. economy continues to recover from the 2008 financial crisis and the ensuing Great Recession, an FTT would help ensure the financial sector compensates other sectors of the economy (particularly U.S. households) for the damage the sector inflicted. Through generating tax revenues, decreasing the fees Americans pay on their investments, and shrinking unproductive parts of the financial sector, an FTT would help Wall Street work for Main Street.

Source: A financial transaction tax could help ensure Wall Street works for Main Street

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House GOP Budget Committee Just Passed Their FY2017 Budget Proposal

628The House GOP-dominated Budget Committee held 9 hour markup, with several lawmakers going hoarse and one losing her voice. Democrats offered up 29 amendments, involving immigration reform, prescription drug prices, and equal pay. Every amendment failed, including one proposed by Rep. Debbie Dingell [D, MI-12] that would have designated $457.5M in emergency funding for Flint and required Michigan to match the federal funds. The budget advanced 20-16, with Democrats voting against and all but one Republican voting for the measure. Here’s their summary:

Balances the Budget

  • Balances the budget within 10 years – without raising taxes – and puts the country on a path to paying off the national debt
  • This budget achieves $7 trillion in deficit reduction over ten years through a combination of $6.5 trillion in savings coupled with economic growth
  • Savings are higher than any previous House Budget Committee proposal and discretionary spending is below 2008 levels
  • Requires consideration of legislation this year to achieve at least $30 billion in automatic spending reductions and reforms over the near term
  • Advances budget process reforms to promote fiscal discipline, and calls for a vote on a Balanced Budget Amendment this year

Strengthens Our National Defense

  • Provides for greater security at home and strength abroad at funding levels above the president’s budget and with increased resources for training, equipment and compensation
  • Supports the bipartisan prohibition on closing the Guantanamo Bay detention facility and transfer of detainees to American soil
  • Identifies vulnerabilities in our nation’s refugee program and calls for oversight and rigorous screening
  • Calls for an improved and accountable Department of Veterans Affairs that can better deliver services and benefits to our veterans

Empowers Our Citizens & Communities

  • Promotes job creation and a healthier economy by calling for a fairer, simpler tax code, regulatory reform, expanded energy production, and a more efficient, effective and accountable government
  • Repeals all of Obamacare (Patient Protection and Affordable Care Act)
  • Endorses patient-centered health care solutions that improve access to quality, affordable care (but does absolutely nothing to assure access to insurance nor does it rein in health care costs)
  • Saves, strengthens, and secures Medicare for current and future retirees (read the Q&A carefully as to HOW they intend to do that)
  • Empowers states and local communities with the flexibility to innovate and make improvements to Medicaid, nutrition assistance, education and other programs
  • Strengthens the Disability Insurance program by putting an end to the “double-dipping” loophole that currently allows individuals to receive both unemployment insurance and disability insurance simultaneously
  • Puts an end to corporate welfare and dismantles the Department of Commerce [that would mean they intend to help balance the budget by issuing pink slips to 43,000+ employees and ending measuring services like: Bureau of Economic Analysis (BEA), Bureau of Industry and Security (BIS), U.S. Census Bureau (Census), Economic Development Admin (EDA), Economics and Statistics Admin (ESA), International Trade Admin (ITA), Minority Business Development Agency (MBDA), Natl Institute of Standards and Technology (NIST), Natl Oceanic and Atmospheric Administration (NOAA), Natl Technical Information Service (NTIS), Operation Natl Telecom & Information Admin (NTIA), and United States Patent and Trademark Office (USPTO).

Additional Resources

Kihuen Statement on Rep. Hardy’s Vote Against Budget Deal

For Immediate Release
December 18th, 2015
Contact: Dave Chase, (702) 350-2744

KihuenHdr

Las Vegas, NV — State Senator Ruben Kihuen and candidate for Congress in the 4th Congressional Distirct released the following statement on Congressman Cresent Hardy’s ‘no’ vote on the bipartisan budget deal:

“I am deeply disappointed but not surprised that Congressman Hardy chose to stand with his radical Tea Party colleagues and voted no on the bipartisan budget deal. He stood with those who sought to add posion pills like blocking Syrian refugees and defunding Planned Parenthood to the deal. Nevadans deserve better.”

Background:

This is the second time Congressman Hardy has voted against a bipartsian budget deal this fall.

Hardy Voted Against Overwhelmingly Bipartisan Budget Deal. In December 2015, Hardy voted against the omnibus spending package. “The House on Fridayoverwhelmingly approved a $1.1 trillion spending package that includes the first major change approved by Congress to ObamaCare, and keeps the government open through September 2016 … In the end, there was no drama in the 316-113 vote … Only 18 Democrats voted against the spending bill, while 166 supported it.” [HR 2029, Vote #70512/18/15; The Hill, 12/18/15]

Hardy Voted Against Bipartisan Budget Agreement. In October 2015, Hardy voted against a bipartisan budget deal that would raise federal spending levels and expand the government’s borrowing authority, avoiding a default. “House lawmakers in both parties joined forces Wednesday to pass a sweeping budget deal … The final vote was 266 to 167, with 79 Republicans joining every Democrat in sealing passage.” [HR 1314, Vote #579, 10/28/15; The Hill, 10/28/15]
State Senator Ruben Kihuen is running as a Democrat in Nevada’s 4th Congressional District. Ruben has a proven record of real results for working families. Born in Mexico, Ruben and his family immigrated to the United States in search of a better life. He worked his way through college and after graduation was inspired to “pay it forward” by working with other students at College of Southern Nevada. In the legislature, Ruben helped craft landmark bi-partisan bills increasing funding for our schools and making college more affordable, and he beat back a reckless Republican agenda attempting to dismantle worker’s rights, restrict women’s health care and repeal LGBTQ protections. Ruben is running for Congress to ensure everyone has a fair shot at the American Dream.


To Learn more about Ruben Kihuen and his campaign for Congress, visit www.rubenforcongress.com or follow Ruben on Facebook or Twitter.


Editor’s note — please note that Mark Amodei, CD-NV2 is apparently a bosom buddy of Rep. Hardy, as they both teamed up to vote against each “bipartisan” budget bill, and in favor of shutting down the U.S. government.

Breaking Down The Budget Deal

— by CAP Action War Room

The Omnibus Spending Bill And Tax Extenders Package Contain Significant Progressive Accomplishments

After weeks of negotiations, congressional leaders and the White House have agreed to a spending deal to fund the government through 2016. The omnibus spending bill and the tax extenders package still need final approval from the House and Senate. But with the release of the bill, all that’s left are the final votes, which are both expected tomorrow. There’s a lot to unpack in the 2,009-page bill, so we’ve broken it down into the good, the bad, and the fun.

The Good:

  • Permanent Renewals Of Earned Income Tax Credit And Child Tax Credit Expansions: Under the stimulus bill, the Earned Income Tax Credit and Child Tax Credit—two key programs that help keep millions of Americans out of poverty—were expanded until 2017. But the tax extenders package made the extensions permanent, a clear win for working families. Allowing these expansions to expire would have pushed 16 million Americans, including 8 million children, into or deeper into poverty.
  • Wind and Solar Tax Credit Extension: Renewable energy was also a winner in this year’s budget deal, thanks to a five-year extension of the solar Investment Tax Credit and the wind Production Tax Credit. Solar accounts for 1 in 78 new jobs in the country, and the solar Investment Tax Credit has been a crucial driver in the growing industry. The increase of wind and solar capacity is seen as a critical way for the U.S. to meet its goals under the Clean Power Plan as well as its commitments under the new UN climate agreement.
  • Accountability For Fast Food Chains: Congressional Republicans tried to block a National Labor Relations Board (NLRB) ruling that makes large corporations like McDonald’s responsible for how their franchises treat workers. The ruling, which remained intact, may force McDonald’s and similar brands to take responsibility for workplace conditions. This could significantly improve the chances that workers can force change in the industry.
  • Health Care For 9/11 First Responders: A health care bill for 9/11 first responders—brought to national attention thanks to the advocacy of Jon Stewart—was included in the year-end spending bill. The legislation was also included in the omnibus, only after 9/11 first responders made hundreds of advocacy trips to D.C.
  • Investment In The Middle Class: The omnibus bill funds key investments in a number of areas to strengthen the middle class and grow the economy. These investments include education from early childhood through college, medical and science research, transportation infrastructure, and conservation. These investments were made possible by the recent budget deal, which reversed about 90 percent of the cuts sequestration would have made to nondefense discretionary programs in fiscal year 2016.
  • Defeat of Many Policy Riders: Congressional Republicans had a long wish list of inappropriate and nongermane partisan policy riders. Luckily, many failed, including riders that would have defunded Planned Parenthood, made it harder for Syrian refugees to come to the United States, blocked the Department of Labor from protecting retirees’ savings, and hindered the Consumer Financial Protection Bureau’s ability to protect consumers.

The Bad:

  • A Win For Big Oil: Unfortunately, lawmakers also handed a win to big oil. As a part of a broader energy package, including the wind and solar tax credit extensions, the 40-year-old crude oil export ban was lifted, meaning American crude oil can be shipped abroad for the first time since the 1970s. Lifting the ban has been a priority for the oil industry. Many environmental groups are concerned that the policy change could lead to more domestic drilling and the potential for additional pollution.
  • Decreased Transparency In Money In Politics: Snuck into the 2,009-page omnibus bill are two sections that will only make the influence of money in politics worse. Section 735 would block the Securities and Exchange Commission’s ability to require companies that receive federal contracts to disclose their contributions to political organizations. And Section 127 will prohibit the IRS from formalizing proposed rules to reign in political groups who use the title of tax-exempt 501(c)(4) “social welfare” non-profits to avoid disclosing their funding.
  • Bans On Gun Violence Research (Still): Public health, medical, and gun violence prevention advocates were unable to take out a rider known as the “Dickey amendment,” which effectively prevents the CDC and NIH from doing any research on gun violence. The provision was maintained despite the fact that former Rep. Jay Dickey (R-AR), for whom the amendment is named, has since spoken out against the policy saying he regrets no research is being done. The good news is, despite the fact that the NRA spent more than $27 million to elect a Republican majority in the 2014 elections, several other gun lobby priority items failed to make it in.
  • Budget Cuts For The IRS Enforcement Division: The budget deal cuts $25 million in funding for the IRS team that keeps people from evading their taxes. The IRS enforcement team has already experienced huge cuts, which limits its ability to save the government money through auditing returns and pursuing tax evaders.

The Fun:

  • Sledding provision: The crude oil export ban wasn’t the only ban lifted as a part of the budget deal: In a big win for winter cheer, the sledding ban on Capitol Hill was also lifted, ending an official ban of 14 years.

BOTTOM LINE: Crisis averted?  We’ll see tomorrow when the House has scheduled a vote on this ill-conceived budget. Congress has (almost) successfully avoided a government shutdown and agreed on a spending bill to fund the government for the next year. The deal is imperfect, but it is largely absent of highly partisan riders and funds key investments in a number of areas to strengthen the middle class and grow the economy.


This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe. ‘Like’ CAP Action on Facebook and ‘follow’ us on Twitter

Banana Republicans

— by CAP Action War Room

The Latest House GOP Meltdown Has Been A Long Time Coming, And It’s Not Just About Them

The same tumultuous group that led the Republican Party to control the House of Representatives is now at the center of the latest and most public display of Republican dysfunction, or as Rep. Peter King (R-NY) calls it, “a banana republic.” Amidst absurd infighting in the House over Planned Parenthood funding, Speaker John Boehner (R-OH) was more or less forced to announce his future resignation, leaving the GOP needing to find the next Speaker. Rep. Kevin McCarthy (R-CA) was the favorite to replace Boehner, until he unexpectedly and dramatically dropped out yesterday afternoon, leading members of Congress to openly weep and pronounce their caucus has hit “rock bottom.”

The media frenzy surrounding these events has focused on intrigue like it is an episode of “House of Cards.” Was there something behind why McCarthy took himself out of the running? Will Paul Ryan step up and run for speaker despite repeatedly pledging not to? But here’s what is much more important: this self-inflicted leadership breakdown is just one more chapter in a story of House Republican recklessness – and their own caucus hasn’t been the only victim. House GOP dysfunction has resulted in a string of harmful policies and American families have paid the price. Here are just a few examples:

  • The GOP orchestrated the reckless government shutdown in 2013 which had a devastating impact on our economy. Republican leaders bowed to the will of their extreme right wing to shut down the government over the Affordable Care Act. The shutdown lost Americans at least 120,000 jobs, prevented sick Americans from enrolling in clinical trials, forced Head Start programs for children to shut down, stalled veterans’ disability claims, delayed $4 billion in tax returns for Americans, and severely hurt small businesses. Overall, S&P estimates that the Republicans cost the United States economy a whopping $24 billion with their shutdown.
  • The GOP has repeatedly used the debt ceiling to manufacture crises. In order to maintain the full faith and credit of the United States and avoid global economic collapse, Congress needs to raise the debt ceiling from time to time. Yet, GOP leaders have repeatedly joined with their unyielding Tea Party caucus to manipulate these once run-of-the-mill debt ceiling increases for their own gain. In 2011, the GOP threatened to force the United States into a default – to “crash the global economy,” as Time put it – which was only averted after both sides agreed to $1.2 trillion in economically damaging sequestration cuts. This behavior led to a U.S. credit rating downgrade. In 2013, the GOP used this brinksmanship again to attempt to make cuts to programs like Social Security, Medicare, and the SNAP food program, again putting the credit-worthiness of the United States in jeopardy.
  • The GOP also used a manufactured crisis to force sequestration cuts that are still hurting the economy today. The Republican-induced sequester disproportionately hurt low-income and middle class families. It led to significant cuts to funding for education, small business, and health research. Sequestration overall will cause approximately 1.8 million people to lose their jobs.

Clearly, the GOP’s inability to control their own party has already caused a lot of damage to our economy and the well-being of American taxpayers. And yet, as their conference devolves again into chaos, they have no inclination to change their backwards policies or irresponsible behavior. They have no plans to avert the upcoming shutdown or increase the debt ceiling, even though the United States could default on its obligations if Congress doesn’t act by November 5th. House Republicans are not only distracted by their internal pandemonium, going into the upcoming budget negotiations they remain committed to the backwards, policy ideas and reckless political strategy that have caused so many problems for themselves, but more importantly for the American people.

BOTTOM LINE: The GOP’s current state of disarray has been a long time coming. The party’s leadership gave in to a minority of its members who are devoted to pushing devastating cuts to working-and middle-class families in pursuit of rigid and impractical ideological principles. The result has been a government in a state of perpetual dysfunction. And while House Republicans may be paying the price with negative news coverage, it is American families who pay the real price of their extreme policies.


This material [the article above] was created by the Center for American Progress Action Fund. It was created for the Progress Report, the daily e-mail publication of the Center for American Progress Action Fund. Click here to subscribe. Like CAP Action on Facebook and follow us on Twitter