Samuelson Abuses Census Data

In his Washington Post column this week, Bob Samuelson abuses Census Bureau's Income, Poverty, and Health insurance Coverage in the United States 2006 to launch a critique of immigration policy. The gist of his "reasoning" is this: From 1990 to 2006, the number of poor people increased by 2.9 million people. In those same years, the number of poor Hispanic people increased by 3.2 million while the number of poor whites and blacks and fell by 0.6 million and 0.8 million respectively. If we subtract out the increase in poor Hispanic individuals from the increase in the total number of poor individuals, we are actually left with a net decrease in the number of people in poverty from 1990 to 2006. Ergo, satisfactory progress has been made in poverty remediation, and flawed immigration policies are primarily responsible for strained social services, health care, and public education systems. Why is it important to get this story straight? One reason is truthfulness. It's usually held that we've made little, if any, progress against poverty. That's simply untrue. ... We shouldn't think that our massive efforts to mitigate poverty have had no effect. Immigration hides our grudging progress. A second reason is that immigration affects government policy. By default, our present policy is to import poor people. This imposes strains on local schools, public services and health care. Samuelson, however, is simply peddling statistical misdirection and obfuscation.

read in full

300+ Groups Send Carried Interest Letter to Congress

More than 300 state, local, and national organizations sent a letter today to every member of Congress, urging them to support H.R. 2834, the bill intoruced by Rep. Sander Levin (D-MI) to close the tax loophole that allows fund managers to pay capital gains tax rates on the portion of their compensation for management services known as "carried interest." There is no other profession or sector that enjoys this tax preference. OMB Watch is pleased to be among the letter's signatories. The issues involved -- tax equity and fiscal responsibility -- are close to the core of OMB Watch's mission.

read in full

Nussle Approved to Head OMB, All Brace for Budget Battles

Yesterday, the Senate voted 69-24 to confirm former Rep. Jim Nussle (R-IA) as director of OMB. Every GOP Senator voted in favor of Nussle; 23 Democrats did likewise while 23 opposed him.

read in full

What Do Americans Think About Inequality? Part II

As I wrote in Part I, Americans have a schizophrenic attitude toward inequality: mostly, we don't like it, but we also support policies that make it worse. How could that be?

read in full

Bush Has No Conception of Magnitude of Budget

President Bush, August 2, 2007: Unfortunately, Democratic leaders in Congress want to spend far more. Their budget calls for nearly $22 billion more in discretionary spending next year alone. These leaders have tried to downplay that figure. Yesterday one called this increase -- and I quote -- "a very small difference" from what I proposed. Only in Washington can $22 billion be called a very small difference. Far be it from me to suggest that $22 billion isn't a lot of money. I will, however, agree that a difference of $22 billion can be "a very small difference." Allow me to illustrate:

read in full

What do Americans Think About Inequality? Part I

It's a truism that Americans don't really seem to mind that inequality has increased so dramatically over the last three decades. After all, few policies have been enacted to reverse this trend, and American public opinion has generally become more conservative on fiscal policy. But in significant ways, public opinion studies don't support this truism. The public mostly opposes growing inequality, a fact that has held steady for the least three decades, with some variation in scope and intensity.

read in full

JCT on Carried Interest

Although it hasn't provided a scoring of the proposal by Rep. Sander Levin (D-MI) to close the carried interest tax loophole, the Joint Committee on Taxation released two documents yesterday on various aspects of the current tax treatment of carried interests. Present Law And Analysis Relating to Tax Treatment of Partnership Carried Interests and Related Issues, Part I provides:

    read in full

    Sen. Sanders on OMB Director Nominee

    In the Huffington Post, Sen. Bernie Sanders (D-VT) objects to OMB Director nominee Jim Nussle.

    read in full

    WSJ Finds Differences, Similarities in Candidates Tax Policy

    The Wall Street Journal has a good article on the top presidential candidate's position on taxes. It's subscription only, so here's an excerpted version: The 2008 presidential race is likely to produce a sharp debate over tax policy and its effects on individuals, estates, investments and corporations. But voters may have to wait for the general election to hear it. That is because there is substantial agreement on the biggest policy questions within each party's field of primary candidates. For now, those broad areas of consensus have left intraparty rivals to bicker at the margins.

    read in full

    How The British Could Deal With Inequality

    An article from The Guardian with some interesting ideas on how to reduce inequality, rather than just arrest its growth. Note the outrage expressed over the disparity between CEO and average worker pay in Britain, which is modest by U.S. standards.

    read in full

    Pages

    Subscribe to The Fine Print: blog posts from Center for Effective Government