“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.
David Sirota on Tax Cuts and Stupid Wars
In a terrific column for Tax.com, Pulitzer-Prize winner David Cay Johnston breaks down new government data and puts USA Today’s whole “lowest tax bills since 1950” revelation into dollars and cents we can all understand:
In 1979 federal taxes for the median-income household totaled $6,100, but in 2007 taxes slipped to $6,000. That $100 decline, measured in 2007 dollars, understates what a bargain taxes have become. Back in 1979 federal taxes equaled 18.7 percent of comprehensive household income. By 2007 incomes had grown 28 percent in real terms, so the tax burden not only dropped in absolute dollars, it also fell as a share of median comprehensive income to 14.4 percent. So over 28 years median income has risen in real terms by $9,100 while federal taxes have fallen by $100.
As Johnston points out, this is not something you hear very much about from journalists — or as he puts it, “those who play journalists on television talk shows.” And you certainly don’t hear it from congressional Republicans or rank-and-file conservatives, who continue to bewail allegedly high taxes as our biggest problem, despite the real emergency of cash-strapped communities now slashing police forces, tear up roads and even outsource entire municipal workforces.
Robert Reich says We’re in a One-and-a-Half Dip Recession
We’re not in a double-dip recession yet. We’re in a one and a half dip recession.
Consumer confidence is down. Retail sales are down. Home sales are down. Permits for single-family starts are down. The average work week is down. The only things not down are inventories — unsold stuff is piling up in warehouses and inventories of unsold homes are rising — and defaults on loans.
The 1.5 dip recession should be causing alarm bells to ring all over official Washington. It should cause deficit hawks to stop squawking about future debt, blue-dog Democrats to stop acting like Republicans, and mainstream Democrats to get some backbone.
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