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Feb 8, 2016

Top 400 Taxpayers See Tax Rates Rise, But There’s More to the Story

As Americans were gathering party supplies to greet the New Year, the Internal Revenue Service released their annual report of cumulative tax data reported on the 400 tax r...

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Feb 4, 2016

Chlorine Bleach Plants Needlessly Endanger 63 Million Americans

Chlorine bleach plants across the U.S. put millions of Americans in danger of a chlorine gas release, a substance so toxic it has been used as a chemical weapon. Greenpeace’s new repo...

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Jan 25, 2016

U.S. Industrial Facilities Reported Fewer Toxic Releases in 2014

The Toxics Release Inventory (TRI) data for 2014 is now available. The good news: total toxic releases by reporting facilities decreased by nearly six percent from 2013 levels. Howe...

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Jan 22, 2016

Methane Causes Climate Change. Here's How the President Plans to Cut Emissions by 40-45 Percent.

  UPDATE (Jan. 22, 2016): Today, the Bureau of Land Management (BLM) released its proposed rule to reduce methane emissions...

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Bush and GOP Leaders Call for More Budget Cuts

In a news conference yesterday, President Bush put pressure on Congress to pay for as much of the hurricane relief as possible by cutting spending. He urged that funding be cut in both non-defense discretionary spending and entitlement spending. His comments prompted House Budget Committee Chairman Jim Nussle (R-IA) to claim that he will seek even more cuts in entitlement expenditures than those laid out in April's budget resolution. Currently the resolution instructs that entitlement spending be cut by $35 million over the next five years. Nussle said in an interview that Gulf Coast reconstruction costs should be partly offset through across-the-board reductions in discretionary spending, beginning with a 2 percent "haircut" from the $843 billion agreed to under the FY06 budget." The Coalition on Human Needs has an analysis highlighting how those cuts will affect human needs programs. One has to wonder where these gestures of fiscal responsibility were when Congress passed trillions of dollars worth of tax cuts in 2001 and 2003, which were not offset by any spending cuts. That Congress also wants to push ahead with extending reduced rates for capital gains and dividends taxes -- tax breaks which benefit primarily the wealthy -- further serves to illustrate that these spending cuts could be avoided. Bush also asserted yesterday that even though Congress has a "diminished appetite" for overhauling Social Security, he has not taken the issue off the table. Bush said, "Social Security for me is never off. It's a long-term problem that's going to need to be addressed." However, the solutions he claimed to support a few months ago would lower guarenteed benefits and cost $700 billion over the next decade. Not exactly a great way to cut down federal spending.

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Watcher: October 4, 2005

Federal Budget
  • Scrambling to Offset Katrina Costs, Republicans Continue Dangerous Fiscal Policy
  • Congress Passes Stark Continuing Resolution; Many Programs Will See Funding Cuts

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Congress Passes Stark Continuing Resolution; Many Programs Will See Funding Cuts

With the end of the fiscal year looming before them, lawmakers were forced to adopt a stopgap funding measure last week to avoid a government shutdown. The measure -- called a continuing resolution (CR) -- will fund government operations for the next seven weeks. Because of the unusual structure of the CR, however, it will result in the dramatic under-funding of programs, setting spending levels at the lowest of three possible levels: the enacted totals for Fiscal Year 2005 (FY05), or either of the completed levels of the House or Senate FY06 spending bills.

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Early Reports of FEMA Reimbursement Policy Misleading

Early reports about the U.S. Federal Emergency Management Agency (FEMA) reimbursements to faith-based groups for their hurricane relief services were misleading and lacked essential details. At a press conference last week, FEMA announced that it will reimburse churches and faith-based groups; however, this is simply an extension of its Public Assistance Program that currently provides funding to private nonprofit groups that have provided food, shelter and supplies to victims of Hurricane Katrina at the agency's request. A Sept. 27 Washington Post story gave the impression that only faith-based groups would receive such reimbursements, prompting some protest.

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Scrambling to Offset Katrina Costs, Republicans Continue Dangerous Fiscal Policy

After five years of ill-conceived and reckless tax and budget policies that have led the federal government to be deeply in debt, weak, and vulnerable, Republican congressional leaders and the White House are now talking about fiscal responsibility in the aftermath of Hurricanes Katrina and Rita. While nearly all the current proposals emerging from Congress and the administration are cloaked in the rhetoric of balancing the budget, this serves simply to hide their one-sided emphasis on shrinking the role of government through cutting spending rather than increasing revenue.

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Committee for Econ. Development Releases Tax Plan

The Committee for Economic Development released a comprehensive tax reform proposal entitled A New Tax Framework: A Blueprint for Averting a Fiscal Crises this past Tuesday at the National Press Club in Washington, DC. The CED proposal calls for a new hybrid federal tax system featuring a phased-in 10 percent Value-Added Tax (VAT) to supplement a reformed and streamlined federal income tax. Notably, the report recommends the retention of the estate tax at the 2009 levels under current law ($3.5 million exemption and 45 percent marginal tax rate). Read the Report: Press Release (.pdf) Executive Summary (.pdf) Full Report (.pdf)

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Disaster Reconstruction: How Effective Are Tax Breaks?

On September 28 the Senate Finance Committee held a hearing looking at various tax incentives and how they will assist in Gulf Coast reconstruction operations. Governors Blanco of Louisiana, Barbour of Mississippi, and Riley of Alabama testified, and while they did not agree on preferred tax incentives, they all requested some form of tax benefits ranging from zeroing out capital gains taxes on investments to accelerated depreciation to various bond programs. Other witnesses, however, questioned the use of tax cuts as an effective method of providing post-disaster relief.
  • Daniel Doctoroff, the Deputy Mayor for Economic Development and Rebuilding for New York City who helped direct post-9/11 operations, told the Committee that in his experience tax provisions were a cumbersome method for delivering disaster assistance. He argued that benefits are provided only if businesses and economic growth respond to predicted forecasts, and mentioned that Congressional appropriations were a much better way of addressing relief and rebuilding needs.
  • George Yin, Chief of Staff for the Joint Committee on Taxation, also voiced skepticism regarding the effectiveness of tax incentives. He testified that tax breaks are particularly ineffective when addressing the needs of low-income earners, particularly because would-be beneficiaries are not aware of many of the tax provisions or how to obtain them. Also, low-income earners stand to receive less in tax benefits overall because they have less-taxable income.

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Tax Panel Postpones Recommendations, Again

The President's Advisory Panel on Tax Reform has once again postponed the date on which they will announce their tax reform recommendations to the U.S. Treasury. The original plans of the panel were stymied due to a dramatically altered legislative landscape in the wake of the recent disaster. Prominent democrats, including House Minority Whip Steny Hoyer (D-MD) and Rep. Rahm Emanuel (D-IL), a Ways and Means Committee member who also serves as his chamber's campaigns coordinator, are urging the panel to shift focus in their recommendations. Instead of working to pass tax cut extensions, they are hoping the panel will focus on the lower- and middle-class in its suggestions to the president. See the panel's website for more details.

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Like the Federal Deficit, CEO Pay is on the Rise

Along with deficits rising, it appears the ratio of CEO pay to worker pay is also rising. As this United for a Fair Economy report highlights, CEO pay has shot up over the past few years, and now, while the average CEO makes $11.8 million per year, the average worker makes $27,460 per year. The ratio has spiked from 301-1 to 431-1. Perhaps even more unsettling news is that 46 large companies who made more than $30 billion in profits in 2003 paid absolutely no income taxes that year. Also, the report notes that the CEO's presiding over the most underfunded pensions had salaries that were, on average, 72 percent more than other CEO salaries. Congressional GOP leaders and the administration often mention the "strong economy" we are currently experiencing. It is important to remember that while the economy may look strong for some, it is not strong for many of the workers who are earning a disgracefully low minimum wage.

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Frist Calls on Bush to Suspend Funding

Senate Majority Leader Bill Frist (R-TN) will call on President Bush today to give Congress a list of offsets to potentially make up for spending related to Hurricane Katrina. This request is partially based on the fact that Katrina spending has conservatives in both chambers of Congress worried about how this recovery spending will affect the nation's deficits. Frist will also apparently call on the President to do a formal Budget Act "rescission request" that would temporarily -- and possibly permanently -- suspend some federal spending to help pay for Katrina relief. According to an aide, Frist did not provide details on possible dollar figures, either for the offsets or the rescission request. Under the Budget Act provision (which is also known as impoundment authority) the White House can temporarily suspend federal spending for up to 45 days of "continuous session," typically 60 days from the date of the request. Suspending regular spending to deal with the cost of Katrina is neither responsible nor is it necessary. Yes, Katrina spending will add to our deficit, but the deficit can be brought down by a combination of responsible spending cuts and phasing out (or repealing) certain tax cuts. Frist's "responsible" call for a suspension on spending leads one to wonder where he and other prominent GOP leaders were when Bush passed trillions of dollars worth of tax cuts in 2001 and 2003.

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Resources & Research

Living in the Shadow of Danger: Poverty, Race, and Unequal Chemical Facility Hazards

People of color and people living in poverty, especially poor children of color, are significantly more likely...

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A Tale of Two Retirements: One for CEOs and One for the Rest of Us

The 100 largest CEO retirement funds are worth a combined $4.9 billion, equal to the entire retirement account savings of 41 percent of American fam...

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