Latest IRS Data Reveal Continued Inequality Trend

David Cay Johnston, writing in the New York Times about the latest available data from the IRS, says things are going well for a few Americans, but not as well for many, many more: The new data also shows that the top 300,000 Americans collectively enjoyed almost as much income as the bottom 150 million Americans. Per person, the top group received 440 times as much as the average person in the bottom half earned, nearly doubling the gap from 1980. The Bush administration is not so troubled, however, claiming:

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Caution on Health Care Costs?

Tom Paine has an odd post up about health care costs. The argument, I think, is that we need to be careful containing health care costs because the industry generates many jobs, and health care costs are high, generally, because of demand. The predatory lending industry provides jobs, too. It's costs are quite high, yet there is demand for its products. But that doesn't mean we shouldn't cut those costs, right? This passage bugged me, too:

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Health Care's A Budget Issue Now

Jesse Jackson has a good editorial on the African American children being left behind by federal policy. One passage I thought needed playing up: We need longer school years and far better teachers, and teacher education. We need less discrimination in spending, in discipline, in advanced placement. Some of this costs money. But, Williams says, we're not spending the money we currently have well. For example, our broken health-care system is killing school budgets. Health-care costs are going up 10 to 15 percent a year, far outstripping normal increases in public funding.

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The New Senate PAYGO Rule

The new Senate pay-as-you-go (PAYGO) rule adopted last week as part of the budget resolution makes some key changes to the previous version, created in the FY04 Budget Resolution. It:
  • creates a point of order against legislation that would worsen the deficit for any of the following time periods: FY07, FY08, the five-year period from FY08-12, or the five-year period from FY13-17
  • remains in effect through 2017

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What to do about one-sided budget debate?

Dean Baker makes an interesting point on how the debate over the long-term budget imbalance is very one-sided. There are many experts who think that the problem really is that the health care system is broken and that the solution is to fix it, but they rarely get public attention.

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CBPP: Tax Cuts Bad For The Economy

The Center on Budget and Policy Priorities is arguing that repealing the tax cuts would be good for the economy. Bush & Co. like to claim that the tax cuts are magic, and that failing to extend them will be a disaster for the economy. They're wrong, and it's great that CBPP is pointing this out.

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Sen. Committee Passes BR; Floor Action Next Week

The Senate Budget Committee reported out its FY 2008 Budget Resolution yesterday on a straight 12 - 11 party line vote. All of the funding levels we reported earlier in the week remained the same after the mark-up. Only a few amendmends were adopted, the most significant of which was one offered by committee chairman Kent Conrad (D-ND), which required any new entitlement or tax legislation that would increase the budget deficit to clear a 60-vote point of order until the president puts forward and Congress approves legislation to restore solvency to the Social Security trust funds. The committee rejected a number of amendments, including one from Sen. Jim Bunning (R-KY) to create a 60-vote point of order against any budget resolution that failed to reach balance, excluding Social Security funds, in five years. By excluding Social Security funds, the deficit would be significantly higher than the current level and the budget would be that much more difficult to balance. Funny that Bunning did not advocate for using this larger deficit figure when the Republicans controled the Senate. The panel also rejected an amendment by Sen. John Cornyn (R-TX) to instruct the Finance Committee to find $33.8 billion in savings over five years, with the intent that the reductions come from putting in place a proposal by President Bush to reduce reimbursements to Medicare providers.

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Latest Data on Income Inequality

Via Brad DeLong, this from income trend expert and Berkeley professor Emmanuel Saez The IRS has released yesterday the preliminary stats for year 2005 which I have used to extend my [and Thomas Piketty's] series [on the top income share by tax return unit] to 2005, posted at: http://elsa.berkeley.edu/~saez/TabFig2005prel.xls

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Citizenship Requirements- Backdoor Budget Cuts?

Quick comment on Robert Pear's article yesterday on Medicaid- a must-read, by the way- that demonstrated that falling caseloads may be in part due to new "proof of citizenship" requirements. Medicaid costs, too, have been going down. Supposing these two trends are related, and it would seem they are, citizenship documentation seems nothing more than a high-handed way to cut budgets and deny people (the vast majority of whom are citizens) health care. Let's remember this if the President ever decides to boast of the cost-containment his policies have achieved.

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Why the Bush Health Care Plan Won't Work

Nathan Newman at TPM Cafe has a good post on health care costs. His most topical point is that the Bush health care tax package, which is ostensibly intended to reduce health care costs through financial incentives for health care consumers, is hopelessly misguided and beyond repair. Most health care spending occurs among a small minority of spenders who receive very expensive, intensive care that they likely see as not being optional. Incentives one way or the other probably won't make much of a difference.

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