Robert Reich: Not a day goes by without Republicans decrying the budget deficit. But the biggest single reason for the yawning deficit is big money’s corruption of Washington.
Robert Reich: So here’s the deal: We’ll reelect you. We’ll stand behind you. We’ll give you a mandate to do all this – and more – in your second term. As long as you stand behind us.
Robert Reich: The more irresponsible his bomb-throwing, the more attractive Gringrich becomes to a sizable portion of Americans so fed up they feel like throwing bombs.
Sy Slavin: This Canadian study shows that as far as creating new jobs and generally decreasing unemployment, the way to go is increasing governmental infrastructure expenditures.
Robert Reich: So the best of all worlds is to have a big jobs plan now, and also commit to automatic cuts triggered when unemployment falls to 5 percent.
Robert Reich: All flat-tax proposals benefit the rich more than the poor for one simple reason: Today’s tax code is still at least moderately progressive. The rich usually pay a higher percent of their incomes in income taxes than do the poor. A flat tax would eliminate that slight progressivity.
Robert Reich: Simple fairness requires three things: More tax brackets at the top, higher rates in each bracket, and the treatment of all sources of income (capital gains included) exactly the same.
Robert Reich: President Obama laid out the problem correctly and effectively. He explained why jobs and growth must be the nation’s first priority now — not the federal deficit.
Robert Reich: Anyone who characterizes the deal between the President, Democratic, and Republican leaders as a victory for the American people over partisanship understands neither economics nor politics.
Robert Reich: In truth, the most important variable explaining the rise and fall of tax revenues as percent of GDP has been the business cycle, not the effective tax rate.
Robert Reich: Americans no longer have the purchasing power to keep the economy going at full capacity. Since the debt bubble burst, most Americans have had to reduce their spending; they need to repay their debts, can’t borrow as before, and must save for retirement.