By Jessica Chau
In today’s news highlights, we feature a piece by Robert Reich and his thoughts on how to get the economy moving again, an article about how the Republican tax plan would hit the middle class, and a piece from an economics professor on the capital gains tax.
Tribune Media Services, Robert Reich, 9/11/2012
Corporations won’t hire more workers just because their tax bill is lower and they spend less on regulations. In case you hadn’t noticed, corporate profits are up. Most companies don’t even know what to do with the profits they’re already making.
Meanwhile, the wealthy don’t create jobs, and giving them additional tax cuts won’t bring unemployment down. America’s rich are already garnering a bigger share of American income than they have in 80 years. They’re using much of it to speculate in the stock market.
The way to get jobs back is to get American consumers to spend again. But here’s the problem. Middle-class consumers won’t and can’t spend because their savings are depleted, their homes are worth a fraction of what they were five years ago, their wages are dropping, and they’re worried about keeping their jobs.
They need to be able to refinance their mortgages at today’s low interest rates. They need a larger Earned Income Tax Credit, a wage subsidy for lower-paying jobs. And they need a higher minimum wage. They could use a new Works Projects Administration and Civilian Conservation Corps designed to put the long-term unemployed back to work. They need stronger unions to bargain for a larger share of the gains from economic growth.
The Huffington Post, Mark Gongloff, 9/11/2012
People are always giving Mitt Romney’s tax plan a hard time, using math to unfairly claim it doesn’t work at all. But a respected Harvard economist has determined that Romney’s plan will totally work. All it takes is a little baking soda, some elbow grease and one middle class, crushed into a fine powder.
That economist is Martin Feldstein, former chair of President Reagan’s Council of Economic Advisers, who has all but agreed with the criticisms of President Obama and other, more neutral, observers, that Romney’s plan can only work if taxes are raised on the middle class.
Durango Herald, Robert Sonoro, 9/11/2012
Do you like to pay taxes?
Because if you don’t, I guess you don’t like what taxes buy: roads, defense, education, health care, retirement, farm insurance and subsidies, a clean environment and low energy prices.
So why the war on taxes?
The Republicans like tax cuts, but, let’s be honest, everyone likes tax cuts. What is disturbing is the rhetoric about how and what is taxed. Currently, further cuts to capital-gains taxes, originally passed as part of the Bush tax reform, are in the sights of GOP policymakers.