Category Archives: EITC

How to instantly add $54 billion to Trump budget revenues and end every cut to every department

It’s as easy as: one, two, three!

The 2018 Donald Trump Federal Budget can be balanced, even when including nearly $54 billion in increased Defense Department spending, and not one federal department would require any cuts in spending.

These are the proposed $54 billion in department cuts that would not have to take effect under my 123 Plan:

Agriculture 2018 Budget

  • Eliminates $500 million Water and Wastewater loan/grant program
  • Eliminates $200 million McGovern-Dole International Food for Education program
  • Cuts Women, Infants and Children nutrition assistance from $6.4 billion to $6.2 billion
  • Unspecified staff reductions at USDA service center agencies
  • Cuts $95 million from Rural Business and Cooperative Service

Continue reading →

British want to fight inequality – it’s worse here!

British Labor Party leader Jeremy Corbin is starting a campaign against inequality that should be emulated by all (five, ten?) American politicians not controlled by big business.

“One proposal is pay ratios between top and bottom, so that the rewards don’t just accrue to those at the top,” he said.

“Of the G7 nations only the US has greater income inequality than the UK, and pay inequality on this scale is neither necessary nor inevitable.”

Corbin is talking about real compensation – wages, salaries and bonuses – while many reports for the American public will note an executive $1 million wage, but exclude their $12 million bonus. That trick is good PR for the overpaid, but not good statistics when comparing worker to CEO. Also not mentioned is that company owners (with no work required) usually make much more than the executives. When comparing apples to apples, the mismatch is onerous.

“Total direct compensation for 300 CEOs at public companies increased 5.5% to a median of $11.4 million in 2013, concluded an analysis by The Wall Street Journal and Hay Group. A separate AFL-CIO study of CEO pay across a broad sample of S&P 500 firms showed the average CEO earned 331 times more than the typical U.S. worker last year. In 1980, that multiple was 42,” according to a report in the Wall Street Journal in November, 2014.

Gave you halfThe record of being the most unequal of G7 nations – Canada, France, Germany, Great Britain, Italy, Japan, and United States – is a distinction without merit. So-called pay inequality solutions here include lowering the taxes on the highest paid, sheltering savings of the richest Americans, and maintaining government subsidies to the poorest workers (EITC), rather than really raising (not $10.10) the minimum wage. And those negative plans are the ones endorsed by many in the Democrat Party. Most in the GOP also want to privatize everything from national parks to public roads and schools – in short, anywhere a buck can be squeezed.

“Another proposal would be to bar or restrict companies from distributing dividends until they pay all their workers the living wage,” Corbin explained.

“Only profitable employers will be paying dividends, if they depend on cheap labor for those profits, then I think there is a question over whether that is a business model to which we should be turning a blind eye.”

During the 2008 financial crisis, it was common that many, running for public office, also espoused caps on highest salaries to five or ten million dollars. Continue reading →

Tax credit cuts will make Britains work much harder – like Chinese or Americans – British Health Secretary tells the poor

hunt-ja

Smirk, smug and telling you to work harder

British Health Secretary Jeremy Hunt thinks the British don’t work hard enough because they have too generous tax credits – a benefit similar to the U.S. Earned Income Tax Credit (EITC).

Hunt seemed like a money-grubbing rich person when he explained:

“My wife is Chinese. We want this to be one of the most successful countries in the world in 20, 30, 40 years’ time. There’s a pretty difficult question that we have to answer, which is essentially: are we going to be a country which is prepared to work hard in the way that Asian economies are prepared to work hard, in the way that Americans are prepared to work hard? And that is about creating a culture where work is at the heart of our success.”

“Dignity is not just about how much money you have got … officially, children are growing up in poverty if there is an income in that family of less than £16,500 (a £ is worth about $1.52 U.S.). What the Conservatives say is how that £16,500 is earned matters.

“It matters if you are earning that yourself, because if you are earning it yourself you are independent and that is the first step towards self-respect. If that £16,500 is either a high proportion or entirely through the benefit system you are trapped. It is about pathways to work, pathways to independence … It is about creating a pathway to independence, self-respect and dignity.”

In one sense Jeremy agrees with many Americans. We do work hard. We spend too many hours at work. Many of us are underpaid. For Jeremy all that is good – because he is rich Continue reading →

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