/PRNewswire / -- President Barack Obama and the U.S. Congress have gone on a spending and debt spree that the country cannot afford. As a result, a spontaneous grassroots movement is emerging from every corner of the nation with a message for Congress and the President: Stop spending us into an inevitable spiral of debt and higher taxes ... now!
To that end, groups of Americans will be meeting in towns and cities across the nation on April 15 for "Tax Day Tea Parties." These "Ten Tax Facts" are an effort by the Institute for Policy Innovation (IPI) to make sure the American people are well-informed as they gather together to express their concern about the direction Washington is headed.
#1 .Under the Obama budget, the Congressional Budget Office (CBO) projects that the national debt will double over the next five years; and it will triple over the next 10 years to $17.3 trillion.
#2. Under the Obama budget, CBO projects that the national debt will soar over the next 10 years from 40 percent of GDP today to a shocking 82.4 percent. (Ronald Reagan left office with the national debt at 42 percent of GDP).
#3. The President's budget also states that total federal borrowing will grow by $2.7 trillion this year alone, an increase of 27 percent in one year!
#4. The budget President Obama proposes for this year increases federal spending by an incredible 34 percent over the previous year, with a total of $4 trillion in federal spending, the highest ever.
#5. The federal budget deficit (not the national debt) would reach $1.845 trillion this year, according to the CBO, the highest ever. That would be more than seven times Reagan's largest budget deficit of $221 billion, which caused so much consternation among Reagan's critics.
#6. The CBO estimates that this Obama budget deficit will total an astounding 13.1 percent of GDP, more than one-eighth of the entire U.S. economy, for the federal budget deficit alone! Under George Bush, the federal deficit for 2008 was 3.2 percent of GDP. The deficit for fiscal year 2007, in the last budget adopted when Congress was controlled by Republican majorities, was $162 billion, or 1.2 percent of GDP.
#7. The Obama budget also includes $1 trillion in tax increases on the upper 5 percent of income earners, mostly tax rate increases. But the top 5 percent of income earners already pays 60 percent of all income taxes.
#8. The Obama budget projects that revenues from the corporate income tax will more than double in 3 years, increasing, in fact, by more than 124 percent.
#9. Another $645 billion tax increase comes from President Obama's anti-global warming cap and trade system, which is essentially an energy tax on the production and use of carbon energy, such as oil, natural gas, and coal.
#10. While the Obama administration claims to have cut $2 trillion from the budget over 10 years, fully $1.5 trillion of those "cuts" actually represents the troop drawdown in Iraq, which was already scheduled to occur under the Bush administration. Of the remaining $500 billion in budget "savings," fully $311 billion is categorized as "interest savings" but is actually an additional tax increase on upper income earners.
It's not as if you can't stimulate economic growth while at the same time cutting government spending. President Reagan did it. Reagan adopted budget cuts soon after he entered office equal to close to 5 percent of the federal budget at the time. Even with his defense buildup, total federal spending declined from a high of 23.5 percent of GDP in 1983 to 21.3 percent in 1988 and 21.2 percent in 1989. That's a 10 percent real reduction in the size of government relative to the economy. Reagan's policies conquered inflation and started a 25-year period of economic growth, which would look awfully good today.
Showing posts with label economic stimulus. Show all posts
Showing posts with label economic stimulus. Show all posts
Wednesday, April 1, 2009
Sunday, February 15, 2009
Statement on Education and the Economic Stimulus
/PRNewswire-USNewswire/ -- Center for Education Reform president Jeanne Allen made the following statement concerning Friday's 60 - 38 Senate vote completing the passage of The American Recovery and Reinvestment Act, a $787 billion economic stimulus package:
"While the economic stimulus may provide jobs for some Americans and make available to states an infusion of funds to shore up their budget deficits, by and large, the education portion of the package misses the mark by a wide margin. Student achievement, the purpose of our nation's schools, is not an explicit or implicit requirement of the new stimulus spending for education, which mainly provides an immediate influx of funding for the construction of new school facilities and the preservation of teachers' jobs, even for those who fail our children on a daily basis. While state's bear the primary responsibility of making policy changes that could dramatically improve student achievement -- from performance based compensation to creating new choices for children -- the federal government could have created incentives for states to make necessary changes in law that often fail because of opposition from powerful interest groups. Until Congress and the Administration make a commitment to change more than just the facade of our public schools and to relieve our students of the status quo shackle of ineffective education policies, the economic revival so sorely needed in America will, sadly, be a long time in coming."
"While the economic stimulus may provide jobs for some Americans and make available to states an infusion of funds to shore up their budget deficits, by and large, the education portion of the package misses the mark by a wide margin. Student achievement, the purpose of our nation's schools, is not an explicit or implicit requirement of the new stimulus spending for education, which mainly provides an immediate influx of funding for the construction of new school facilities and the preservation of teachers' jobs, even for those who fail our children on a daily basis. While state's bear the primary responsibility of making policy changes that could dramatically improve student achievement -- from performance based compensation to creating new choices for children -- the federal government could have created incentives for states to make necessary changes in law that often fail because of opposition from powerful interest groups. Until Congress and the Administration make a commitment to change more than just the facade of our public schools and to relieve our students of the status quo shackle of ineffective education policies, the economic revival so sorely needed in America will, sadly, be a long time in coming."
Thursday, February 12, 2009
NADA Commends Congressional Leaders for Including Tax Relief for New Car Buyers in Stimulus Bill
/PRNewswire-USNewswire/ -- The following is a statement by David Regan, Vice President of Legislative Affairs, National Automobile Dealers Association, in response to Congressional agreement on the Economic Stimulus Package:
"NADA is pleased that tax incentives on new-auto sales are included in the economic stimulus package. Allowing consumers to deduct sales and excise taxes paid on new vehicle purchases will help jump-start auto sales. While including interest deductibility on auto loans would have promoted even greater consumer interest in a new automobile, we applaud both House and Senate leadership -- and especially Senators Barbara Mikulski (D-Md.) and Sam Brownback (R-Ks.) and Representatives Bill Pascrell (D-N.J.) and Steve LaTourette (R-Ohio) -- for recognizing the importance of automotive retailing to the nation's economy. Anything that increases auto sales will also provide help for state and local budgets that rely on sales tax revenues, consumers, dealers and the auto industry. New-car dealers generate almost 20 percent of all retail sales in this country. Therefore, anything that can help get consumers back into dealership showrooms can also help stimulate an economic recovery."
BACKGROUND:
The Auto Ownership Tax Assistance bill, as introduced by Sen. Mikulski and Rep. Pascrell, would have allowed consumers to deduct auto loan interest as well as sales/excise taxes on new vehicles. The Senate passed the legislation, in its entirety, by a vote of 71-26. However, to reduce the costs of the overall package, the auto loan interest deduction provision was stripped out in House-Senate Conference negotiations.
"NADA is pleased that tax incentives on new-auto sales are included in the economic stimulus package. Allowing consumers to deduct sales and excise taxes paid on new vehicle purchases will help jump-start auto sales. While including interest deductibility on auto loans would have promoted even greater consumer interest in a new automobile, we applaud both House and Senate leadership -- and especially Senators Barbara Mikulski (D-Md.) and Sam Brownback (R-Ks.) and Representatives Bill Pascrell (D-N.J.) and Steve LaTourette (R-Ohio) -- for recognizing the importance of automotive retailing to the nation's economy. Anything that increases auto sales will also provide help for state and local budgets that rely on sales tax revenues, consumers, dealers and the auto industry. New-car dealers generate almost 20 percent of all retail sales in this country. Therefore, anything that can help get consumers back into dealership showrooms can also help stimulate an economic recovery."
BACKGROUND:
The Auto Ownership Tax Assistance bill, as introduced by Sen. Mikulski and Rep. Pascrell, would have allowed consumers to deduct auto loan interest as well as sales/excise taxes on new vehicles. The Senate passed the legislation, in its entirety, by a vote of 71-26. However, to reduce the costs of the overall package, the auto loan interest deduction provision was stripped out in House-Senate Conference negotiations.
To Stimulate Economy, Obama Should Revive Reagan-Era Initiative, Law Professor Says
The Economic Recovery Tax Act of 1981 (ERTA) offers a blueprint for fiscal stimulus that would be far more effective than the stimulus package currently before Congress, says Bill Brown, a visiting professor of the practice of law at Duke University.
“Simply pushing money into the economy via infrastructure projects, no matter how well intentioned, is not the answer,” says Brown who joined the Duke faculty after an extensive career on Wall Street at Goldman Sachs, AIG and, most recently, Morgan Stanley, where he was global co-head of listed derivatives.
At a time plagued by slow economic growth, high interest rates and high inflation, ERTA not only reduced tax rates, but established a powerful set of incentives to promote investment in income-producing “capital assets” -- plant, property, and equipment, according to Brown. It resuscitated the Kennedy-era investment tax credit (ITC), which gave business partial reimbursement for the purchase of every new income-producing asset they acquired. And it added to this subsidy by allowing all those assets to be depreciated extremely rapidly under the new Accelerated Cost Recovery System (ACRS).
“ERTA helped break us out of the economic quagmire of the 1970s,” Brown says. “Sure, it lowered tax rates for everybody, but its most important legacy was in getting this country investing in the economy again. The government essentially said to the private sector ‘you think of where our economy needs the money the most, and as long as you put your money there first, we will follow right behind you.’”
The effect was almost immediate, says Brown. “By 1983, the economy was going like gangbusters. And the best thing about it was that the private sector was allocating the money more efficiently than would have been possible had the government been directing the investments. This meant the money got to people who had no ability to lobby Washington to spend money on their businesses.
“President Obama and Congress should step back from the current spending bill and turn it into a stimulus bill. Identify the overriding strategic visions, invest in infrastructure for those visions and then bring back the ITC and ACRS deductions to get the private sector back in the game,” he says. “They could even provide two tiers of ITC and ACRS: one for old industry and a higher level for the most important parts of President Obama’s vision.”
“Simply pushing money into the economy via infrastructure projects, no matter how well intentioned, is not the answer,” says Brown who joined the Duke faculty after an extensive career on Wall Street at Goldman Sachs, AIG and, most recently, Morgan Stanley, where he was global co-head of listed derivatives.
At a time plagued by slow economic growth, high interest rates and high inflation, ERTA not only reduced tax rates, but established a powerful set of incentives to promote investment in income-producing “capital assets” -- plant, property, and equipment, according to Brown. It resuscitated the Kennedy-era investment tax credit (ITC), which gave business partial reimbursement for the purchase of every new income-producing asset they acquired. And it added to this subsidy by allowing all those assets to be depreciated extremely rapidly under the new Accelerated Cost Recovery System (ACRS).
“ERTA helped break us out of the economic quagmire of the 1970s,” Brown says. “Sure, it lowered tax rates for everybody, but its most important legacy was in getting this country investing in the economy again. The government essentially said to the private sector ‘you think of where our economy needs the money the most, and as long as you put your money there first, we will follow right behind you.’”
The effect was almost immediate, says Brown. “By 1983, the economy was going like gangbusters. And the best thing about it was that the private sector was allocating the money more efficiently than would have been possible had the government been directing the investments. This meant the money got to people who had no ability to lobby Washington to spend money on their businesses.
“President Obama and Congress should step back from the current spending bill and turn it into a stimulus bill. Identify the overriding strategic visions, invest in infrastructure for those visions and then bring back the ITC and ACRS deductions to get the private sector back in the game,” he says. “They could even provide two tiers of ITC and ACRS: one for old industry and a higher level for the most important parts of President Obama’s vision.”
Monday, February 9, 2009
Institute for Policy Innovation: Abuse of English Language to Call Pork Bill 'Stimulus'
/PRNewswire-USNewswire/ -- Today, the U.S. Senate passed a bill that not only will fail to create new jobs, but is teeming with runaway government spending for increased welfare, overgrown bureaucracy, pork, political payoffs and other waste.
"To call this spending bill 'stimulus' is an abuse of the English language," said Peter Ferrara, director of entitlement and budget policy at the Institute for Policy Innovation (IPI).
The centerpiece of the stimulus bill is little more than a welfare check -- a $500 per worker "tax credit" totaling $150 billion.
"There will be no economic net gain because the government will just borrow $150 billion from the private sector to give away, nor will there be any added incentives to save, invest, or start or expand a business, or create jobs," said Ferrara.
IPI president Tom Giovanetti agreed, saying, "This is like going through the neighborhood breaking windows to provide economic stimulus for the glass company."
To create a sustainable economic stimulus, comprehensive reductions in tax rates must be implemented. This includes:
-- Slashing the corporate tax rate to 20%;
-- Cutting the federal corporate capital gains rate from 35% to 15%;
-- Returning billions in investment capital to America by allowing
multinational companies' overseas earnings to be subject only to a 5%
corporate tax;
-- Allowing immediate deductions for all capital investment in machinery
and equipment, rather than extending only partial deductions over
several years through depreciation;
-- And unleashing America's energy industry through deregulation,
assuring a low-cost, reliable energy supply, adding to GDP and
creating jobs.
In the words of Ronald Reagan, government is not the solution to the problem, government is the problem. The only solution to getting the U.S. economy booming again is to unleash the private sector through fundamental tax relief.
"To call this spending bill 'stimulus' is an abuse of the English language," said Peter Ferrara, director of entitlement and budget policy at the Institute for Policy Innovation (IPI).
The centerpiece of the stimulus bill is little more than a welfare check -- a $500 per worker "tax credit" totaling $150 billion.
"There will be no economic net gain because the government will just borrow $150 billion from the private sector to give away, nor will there be any added incentives to save, invest, or start or expand a business, or create jobs," said Ferrara.
IPI president Tom Giovanetti agreed, saying, "This is like going through the neighborhood breaking windows to provide economic stimulus for the glass company."
To create a sustainable economic stimulus, comprehensive reductions in tax rates must be implemented. This includes:
-- Slashing the corporate tax rate to 20%;
-- Cutting the federal corporate capital gains rate from 35% to 15%;
-- Returning billions in investment capital to America by allowing
multinational companies' overseas earnings to be subject only to a 5%
corporate tax;
-- Allowing immediate deductions for all capital investment in machinery
and equipment, rather than extending only partial deductions over
several years through depreciation;
-- And unleashing America's energy industry through deregulation,
assuring a low-cost, reliable energy supply, adding to GDP and
creating jobs.
In the words of Ronald Reagan, government is not the solution to the problem, government is the problem. The only solution to getting the U.S. economy booming again is to unleash the private sector through fundamental tax relief.
Uncovering the Stimulus- Chicago Style
/PRNewswire-USNewswire/ -- With President Obama to visit Springfield this week, state leaders and Stop-OMP.org are crying foul with Mayor Daley's most recent comments that the list of stimulus projects are too controversial to list publicly. It is widely believed that one of his projects is the $20 billion "O'Hare Modernization Project" that the FAA and airlines have refused to fund.
"As we prepare a national celebration around Abraham Lincoln's legacy in Illinois we are faced with a state of politics that includes corruption and secrecy, greed and cronyism," said Bensenville Village President John Geils. "Lincoln, one of the best Presidents in history, must be rolling in his grave!"
"While most Americans are expecting 'change' from their government, Mayor Daley is trying to protect the Old Chicago Way," said John Tillman, chairman and CEO of the Illinois Policy Institute. "Now more than ever, we need to have an open, informed debate about spending priorities in Illinois. Voters deserve to know exactly what's on the table and how their money is being spent. We need transparency from City Hall--and from the legislature down in Springfield."
The Chicago Tribune quoted Mayor Daley as saying, "Yes, we do, we have our list, we've been talking to people. We did not put that out publicly because once you start putting it out publicly, you know, the newspapers, the media is going to be ripping it apart."
"It's very controversial. Yes, we have ready projects from the Board of Education to the City Colleges to the Park District to the CTA and the city of Chicago..." the mayor added.
"We have one former governor in jail, we just removed one from office, our state is $9 billion in debt - and Mayor Daley is refusing to disclose his funding requests from the economic stimulus bill? Without transparency, we will have no reform. This is classic Chicago politics. After what we've just gone through with our former Governor I think it is time to say, 'enough is enough!'" said Adam Andrzejewski, director of For the Good of Illinois.
www.stop-omp.org is dedicated to stopping the senseless, ill-advised and flawed O'Hare Modernization Program (OMP) and preventing further unnecessary displacement of families and waste of taxpayer dollars. Community leaders, concerned citizens, aviation industry leaders and economic experts continue to urge the FAA to adopt viable alternatives. These include runway configurations proposed by the Chicago air traffic controllers, use of congestion management techniques, reliance on other nearby airports, and construction of a third airport.
"As we prepare a national celebration around Abraham Lincoln's legacy in Illinois we are faced with a state of politics that includes corruption and secrecy, greed and cronyism," said Bensenville Village President John Geils. "Lincoln, one of the best Presidents in history, must be rolling in his grave!"
"While most Americans are expecting 'change' from their government, Mayor Daley is trying to protect the Old Chicago Way," said John Tillman, chairman and CEO of the Illinois Policy Institute. "Now more than ever, we need to have an open, informed debate about spending priorities in Illinois. Voters deserve to know exactly what's on the table and how their money is being spent. We need transparency from City Hall--and from the legislature down in Springfield."
The Chicago Tribune quoted Mayor Daley as saying, "Yes, we do, we have our list, we've been talking to people. We did not put that out publicly because once you start putting it out publicly, you know, the newspapers, the media is going to be ripping it apart."
"It's very controversial. Yes, we have ready projects from the Board of Education to the City Colleges to the Park District to the CTA and the city of Chicago..." the mayor added.
"We have one former governor in jail, we just removed one from office, our state is $9 billion in debt - and Mayor Daley is refusing to disclose his funding requests from the economic stimulus bill? Without transparency, we will have no reform. This is classic Chicago politics. After what we've just gone through with our former Governor I think it is time to say, 'enough is enough!'" said Adam Andrzejewski, director of For the Good of Illinois.
www.stop-omp.org is dedicated to stopping the senseless, ill-advised and flawed O'Hare Modernization Program (OMP) and preventing further unnecessary displacement of families and waste of taxpayer dollars. Community leaders, concerned citizens, aviation industry leaders and economic experts continue to urge the FAA to adopt viable alternatives. These include runway configurations proposed by the Chicago air traffic controllers, use of congestion management techniques, reliance on other nearby airports, and construction of a third airport.
Friday, February 6, 2009
Stimulus Bill Ignores Census Bureau Statistics
/PRNewswire-USNewswire/ -- According to a report from the Small Business Administration (SBA) Office of Advocacy, businesses with fewer than 20 employees account for 90 percent of all U.S. firms and are responsible for more than 97 percent of all new jobs. The SBA compiled the report from the latest United States Census Bureau data. (http://www.inc.com/news/articles/200708/data.html)
Detailed analyses of the report were released by Inc.com and CNNMoney.com. (http://money.cnn.com/2008/07/30/smallbusiness/job_creation.fsb/index.htm)
Although the nation's top economists agree that creating jobs is essential to a successful stimulus plan, neither the House, nor Senate versions of the stimulus bill contain any provisions specifically directed to the small businesses that create most new jobs.
Economic experts like Dr. Laura Tyson and Carly Fiorina have both acknowledged that directing federal infrastructure funds to small businesses would be the most effective way to stimulate our nation's failing economy. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
During the Bush Administration, federal programs developed to direct federal spending to small businesses were partially dismantled and plagued by widespread fraud and abuse. Since 2003, more than 15 federal investigations have found billions of dollars in federal contracts earmarked for small businesses were actually diverted to Fortune 500 firms, their subsidiaries and other clearly large businesses.
The American Small Business League (ASBL) has launched a national campaign to encourage President Obama and Congress to include a provision in the economic stimulus bill that would bolster federal contracting programs for small business, and eliminate existing abuses in federal small business programs that have diverted billions of dollars in federal small business contracts to Fortune 500 firms.
As early as February 2008, President Obama agreed with the ASBL by stating, "Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The ASBL estimates that if Congress added a provision to the stimulus bill that would stop the flow of federal small business contracts to large businesses, as much as $100 billion a year in existing federal infrastructure spending would be diverted back to America's small businesses.
On December 6, President Obama's transition team estimated that every billion dollars spent on federal infrastructure projects would create 40,000 jobs. Based on President Obama's estimation, the ASBL projects that a simple pro-small business provision in the stimulus bill to stop the flow of small business contracts to large corporations would create up to 4 million new jobs. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html)
Detailed analyses of the report were released by Inc.com and CNNMoney.com. (http://money.cnn.com/2008/07/30/smallbusiness/job_creation.fsb/index.htm)
Although the nation's top economists agree that creating jobs is essential to a successful stimulus plan, neither the House, nor Senate versions of the stimulus bill contain any provisions specifically directed to the small businesses that create most new jobs.
Economic experts like Dr. Laura Tyson and Carly Fiorina have both acknowledged that directing federal infrastructure funds to small businesses would be the most effective way to stimulate our nation's failing economy. Tyson is the former Chair of the U.S. President's Council of Economic Advisers during the Clinton Administration and is currently an economic adviser to President Barack Obama. Fiorina is the former CEO of Hewlett-Packard and McCain campaign economic advisor.
During the Bush Administration, federal programs developed to direct federal spending to small businesses were partially dismantled and plagued by widespread fraud and abuse. Since 2003, more than 15 federal investigations have found billions of dollars in federal contracts earmarked for small businesses were actually diverted to Fortune 500 firms, their subsidiaries and other clearly large businesses.
The American Small Business League (ASBL) has launched a national campaign to encourage President Obama and Congress to include a provision in the economic stimulus bill that would bolster federal contracting programs for small business, and eliminate existing abuses in federal small business programs that have diverted billions of dollars in federal small business contracts to Fortune 500 firms.
As early as February 2008, President Obama agreed with the ASBL by stating, "Small businesses are the backbone of our nation's economy and we must protect this great resource. It is time to end the diversion of federal small business contracts to corporate giants." (http://www.barackobama.com/2008/02/26/the_american_small_business_le.php)
The ASBL estimates that if Congress added a provision to the stimulus bill that would stop the flow of federal small business contracts to large businesses, as much as $100 billion a year in existing federal infrastructure spending would be diverted back to America's small businesses.
On December 6, President Obama's transition team estimated that every billion dollars spent on federal infrastructure projects would create 40,000 jobs. Based on President Obama's estimation, the ASBL projects that a simple pro-small business provision in the stimulus bill to stop the flow of small business contracts to large corporations would create up to 4 million new jobs. (http://www.nytimes.com/2008/12/07/us/politics/07radio.html)
Thursday, January 29, 2009
Stimulus Bill Misses the Mark for Education
/PRNewswire-USNewswire/ -- While a broad base of national educators, leaders and policymakers have agreed that the nation's education system requires fundamental operational changes, the federal government is poised to subsidize the systems that have failed American students, allowed them to fall behind their international counterparts and left a yawning achievement gap that sees barely 50 percent of African-American males graduating from high school.
"The achievement gap between white kids and most children of color is downright scary... alarmingly, as one study reveals, a growing number of the largest school districts are showing African-American male graduation rates of less than 40 percent. Across the country, the numbers are grim." - This according to Mandate for Change, a new monograph from the Center for Education Reform (CER) edited by Senior Fellow Samuel Casey Carter.
Unlike Washington's financial band-aid, CER's Mandate for Change offers a five-part cure for education in America that unites federal and state policies with substantive proposals for school improvement.
As another Mandate for Change contributor, former three-term governor of Michigan John M. Engler, makes clear, the problem starts with the public not having access to enough performance information about what we're getting for the money currently being spent before we even discuss whether more money can solve the system's ills. "If we can verify the quality of a product every step of the way as it moves along the manufacturing process, the education of our children deserves the same careful attention."
Journalist Richard Whitmire argues that without varied teacher compensation systems, there can be no improvement in teacher quality, writing, "Teachers should be hired, promoted, or fired based on their effectiveness in educating children. That simple formula, however - judging employees by the outcome of their efforts - although commonplace in the rest of society, remains elusive in the teaching profession... Effective teachers make a difference and the current system does next to nothing to reward effective teaching."
The proposed education aspect of the forthcoming federal stimulus package seeks to fund the continuance of all teachers' jobs, not ensure that our best and most effective teachers are rewarded for elevating the performance of the system as a whole.
"The stimulus package is supposed to be a tonic for the nation. Instead this may be just another quick infusion of cash to keep the status quo afloat. While teachers' unions, school districts and construction companies may benefit, this plan will not directly improve education for America's children. Money alone, not focused on student performance, will not improve the results," says Center for Education Reform president Jeanne Allen.
"The achievement gap between white kids and most children of color is downright scary... alarmingly, as one study reveals, a growing number of the largest school districts are showing African-American male graduation rates of less than 40 percent. Across the country, the numbers are grim." - This according to Mandate for Change, a new monograph from the Center for Education Reform (CER) edited by Senior Fellow Samuel Casey Carter.
Unlike Washington's financial band-aid, CER's Mandate for Change offers a five-part cure for education in America that unites federal and state policies with substantive proposals for school improvement.
As another Mandate for Change contributor, former three-term governor of Michigan John M. Engler, makes clear, the problem starts with the public not having access to enough performance information about what we're getting for the money currently being spent before we even discuss whether more money can solve the system's ills. "If we can verify the quality of a product every step of the way as it moves along the manufacturing process, the education of our children deserves the same careful attention."
Journalist Richard Whitmire argues that without varied teacher compensation systems, there can be no improvement in teacher quality, writing, "Teachers should be hired, promoted, or fired based on their effectiveness in educating children. That simple formula, however - judging employees by the outcome of their efforts - although commonplace in the rest of society, remains elusive in the teaching profession... Effective teachers make a difference and the current system does next to nothing to reward effective teaching."
The proposed education aspect of the forthcoming federal stimulus package seeks to fund the continuance of all teachers' jobs, not ensure that our best and most effective teachers are rewarded for elevating the performance of the system as a whole.
"The stimulus package is supposed to be a tonic for the nation. Instead this may be just another quick infusion of cash to keep the status quo afloat. While teachers' unions, school districts and construction companies may benefit, this plan will not directly improve education for America's children. Money alone, not focused on student performance, will not improve the results," says Center for Education Reform president Jeanne Allen.
Economic Stimulus Package Would Place Social Security Trust Fund in Deficit for First Time Ever Next Year
/PRNewswire-USNewswire/ -- The Congressional economic stimulus plan would place the Social Security Trust Fund into deficit for the first time ever next year, if the current economic stimulus package is passed by both Houses of Congress.
Social Security is funded by payroll taxes that employees and their employers pay into the system. Money that comes into the Social Security Trust Fund is used to pay the Social Security checks retirees receive each month, and since the creation of the Trust Fund in 1983, the program has always had more money coming in than going out.
However, that may change as soon as next year, due to a proposed refundable payroll tax credit which would offer workers a refund on their portion of Social Security taxes, meaning there would be insufficient cash to pay benefits. The $145.3 billion refundable payroll tax credit proposal would give individual workers up to $500 and couples up to $1,000.
According to the 2008 Social Security Trustees Report, the estimated surplus under "high cost," or bad economic conditions, is as follows:
Year Social Security Trust *Payroll Credit Costs,
Fund Projected Surplus Proposed Legislation
(Billions) (Billions)
2009 $54 $24
2010 $57 $80.8
2011 $43 $37
2012 $26
2013 $5
* Source: Joint Committee on Taxation
"A sufficiently funded Social Security Trust Fund is critical in ensuring that seniors don't have to endure benefits cuts," said Daniel O'Connell, chairman of The Senior Citizens League. "Although we recognize the economy is in bad shape, we don't think putting the Trust Fund into the red is a responsible response."
The Senior Citizens League is advocating for any decrease in payroll taxes to be taken from the general treasury, not the Social Security Trust Fund.
Social Security is funded by payroll taxes that employees and their employers pay into the system. Money that comes into the Social Security Trust Fund is used to pay the Social Security checks retirees receive each month, and since the creation of the Trust Fund in 1983, the program has always had more money coming in than going out.
However, that may change as soon as next year, due to a proposed refundable payroll tax credit which would offer workers a refund on their portion of Social Security taxes, meaning there would be insufficient cash to pay benefits. The $145.3 billion refundable payroll tax credit proposal would give individual workers up to $500 and couples up to $1,000.
According to the 2008 Social Security Trustees Report, the estimated surplus under "high cost," or bad economic conditions, is as follows:
Year Social Security Trust *Payroll Credit Costs,
Fund Projected Surplus Proposed Legislation
(Billions) (Billions)
2009 $54 $24
2010 $57 $80.8
2011 $43 $37
2012 $26
2013 $5
* Source: Joint Committee on Taxation
"A sufficiently funded Social Security Trust Fund is critical in ensuring that seniors don't have to endure benefits cuts," said Daniel O'Connell, chairman of The Senior Citizens League. "Although we recognize the economy is in bad shape, we don't think putting the Trust Fund into the red is a responsible response."
The Senior Citizens League is advocating for any decrease in payroll taxes to be taken from the general treasury, not the Social Security Trust Fund.
FAIR: Obama Rushing to Pass the Economic Stimulus Package While Delaying Vital Protections for American Workers
/PRNewswire-USNewswire/ -- President Obama and top administration officials are actively pressuring Congress to pass an expensive economic stimulus package by mid-February, while quietly undermining an administrative rule that would protect American workers. The president has delayed, until May 21, the implementation of an executive order requiring all federal contractors to utilize the E-Verify program to ensure that all workers paid with taxpayer dollars are legally eligible to work in the U.S.
With the federal government poised to pump hundreds of billions of dollars into the economy to create new jobs, the Obama administration appears to be caving in to business and ethnic interest pressure groups to delay, or perhaps eliminate, this vital protection for U.S. workers. Former President George W. Bush issued the executive order last June requiring that companies doing business with the government guarantee that they are employing only eligible workers, effective Jan. 15, 2009. Before leaving office, Mr. Bush delayed implementation until Feb. 20.
"President Obama's single greatest domestic challenge is to get Americans back to work," said Dan Stein, president of FAIR, noting that some 12 million Americans are unemployed. "It defies all common sense to borrow vast sums of money to create new jobs without having a reliable system in place to make sure that American workers will be the ones to fill those jobs."
Amidst a global recession, a massive jobs creation program in the United States is likely to serve as a magnet drawing workers from around the world in search of employment. "E-Verify has proven to be the single most effective tool to protect American workers from losing jobs in their own country to illegal aliens," Stein said. "It is imperative that Congress reauthorize the program and that the administration require companies benefiting from the stimulus package to use the E-Verify system before the first borrowed dollar is spent.
"President Obama came to office promising change and an end to business as usual in Washington. Delaying implementation of an executive order requiring that government contractors hire only legal U.S. workers is a disappointing first gesture on the part of the new administration and one that the president should reconsider before signing any economic stimulus bill," Stein concluded.
With the federal government poised to pump hundreds of billions of dollars into the economy to create new jobs, the Obama administration appears to be caving in to business and ethnic interest pressure groups to delay, or perhaps eliminate, this vital protection for U.S. workers. Former President George W. Bush issued the executive order last June requiring that companies doing business with the government guarantee that they are employing only eligible workers, effective Jan. 15, 2009. Before leaving office, Mr. Bush delayed implementation until Feb. 20.
"President Obama's single greatest domestic challenge is to get Americans back to work," said Dan Stein, president of FAIR, noting that some 12 million Americans are unemployed. "It defies all common sense to borrow vast sums of money to create new jobs without having a reliable system in place to make sure that American workers will be the ones to fill those jobs."
Amidst a global recession, a massive jobs creation program in the United States is likely to serve as a magnet drawing workers from around the world in search of employment. "E-Verify has proven to be the single most effective tool to protect American workers from losing jobs in their own country to illegal aliens," Stein said. "It is imperative that Congress reauthorize the program and that the administration require companies benefiting from the stimulus package to use the E-Verify system before the first borrowed dollar is spent.
"President Obama came to office promising change and an end to business as usual in Washington. Delaying implementation of an executive order requiring that government contractors hire only legal U.S. workers is a disappointing first gesture on the part of the new administration and one that the president should reconsider before signing any economic stimulus bill," Stein concluded.
Wednesday, January 28, 2009
Economic Stimulus Package Offers Little Help to Seniors in Poverty
/PRNewswire-USNewswire/ -- The U.S. Senate version of the economic stimulus package would provide Social Security recipients and disabled veterans a one-time extra payment of $300.
The Senior Citizens League (TSCL) supports the $300 payment to seniors, but maintains that amount is insufficient to truly help the nation's poorest seniors. The average Social Security beneficiary receives just $13,836 per year, and more than 10 percent of seniors live below the poverty line.
TSCL is advocating for as much as $1,000 in relief for the nation's poorest seniors - the same amount couples earning up to $150,000 per year would receive.
A recent study released by TSCL found that seniors lost 51 percent of their buying power since 2000, a result of costs increasing more rapidly than the Social Security Cost of Living Adjustment.
"It's difficult to understand why the Senate would give the least money to the most vulnerable group in our economy," said Daniel O'Connell, chairman of The Senior Citizens League. "It seems clear that seniors - especially those barely getting by - are precisely the people that will stimulate the economy by spending their stimulus checks."
"We receive phone calls from seniors every day who are having a tough time paying for their prescriptions, groceries, and rent - these are the very people who need the stimulus most," said Shannon Benton, executive director of TSCL.
TSCL is concerned with one part of the Senate proposal: since workers would not pay a portion of their Social Security taxes, the Social Security Trust Fund would go into deficit spending as soon as 2010. TSCL encourages lawmakers to take the money required for this tax relief from the general treasury rather than the Trust Fund.
With 1.2 million supporters, The Senior Citizens League is one of the nation's largest nonpartisan seniors groups. The Senior Citizens League is a proud affiliate of The Retired Enlisted Association. Visit www.SeniorsLeague.org for more information.
The Senior Citizens League (TSCL) supports the $300 payment to seniors, but maintains that amount is insufficient to truly help the nation's poorest seniors. The average Social Security beneficiary receives just $13,836 per year, and more than 10 percent of seniors live below the poverty line.
TSCL is advocating for as much as $1,000 in relief for the nation's poorest seniors - the same amount couples earning up to $150,000 per year would receive.
A recent study released by TSCL found that seniors lost 51 percent of their buying power since 2000, a result of costs increasing more rapidly than the Social Security Cost of Living Adjustment.
"It's difficult to understand why the Senate would give the least money to the most vulnerable group in our economy," said Daniel O'Connell, chairman of The Senior Citizens League. "It seems clear that seniors - especially those barely getting by - are precisely the people that will stimulate the economy by spending their stimulus checks."
"We receive phone calls from seniors every day who are having a tough time paying for their prescriptions, groceries, and rent - these are the very people who need the stimulus most," said Shannon Benton, executive director of TSCL.
TSCL is concerned with one part of the Senate proposal: since workers would not pay a portion of their Social Security taxes, the Social Security Trust Fund would go into deficit spending as soon as 2010. TSCL encourages lawmakers to take the money required for this tax relief from the general treasury rather than the Trust Fund.
With 1.2 million supporters, The Senior Citizens League is one of the nation's largest nonpartisan seniors groups. The Senior Citizens League is a proud affiliate of The Retired Enlisted Association. Visit www.SeniorsLeague.org for more information.
Monday, January 26, 2009
32 Million Adults Still Won't Be Able to Read, Write, or Apply for Jobs
/PRNewswire-USNewswire/ -- ProLiteracy, the nation's leader in adult literacy programs and advocacy, today decried the exclusion of Title II of the Workforce Investment Act from the current economic stimulus package.
David C. Harvey, president of ProLiteracy, called on President Obama and Congress to include Title II of the Workforce Investment Act in the economic recovery proposal. "We applaud the efforts of our new president and Congress to craft a stimulus bill focused on creating new jobs," Harvey said. "But it is imperative that they focus on the very people who will have the most difficulty finding jobs -- low-literate workers. An effective recovery bill must provide adult literacy and employment training opportunities."
Harvey pointed out that the American Recovery and Reinvestment Act, to be reviewed by House subcommittees this week, funds job training services for at-risk youth, individuals with disabilities, and older Americans through Titles I, III, and IV of the Workforce Investment Act.
"But inexplicably, Title II, which focuses on adult education and literacy, was left out of the bill," Harvey said. "Many of the nearly 3 million jobs lost during 2008 were held by individuals who need additional help with basic reading, math, or English skills in order to take advantage of the jobs that the Recovery Act will create."
A recent U.S. Department of Education report estimates that 32 million adults in the U.S. don't read well enough to fill out a job application without help. Title II, also known as the Adult Education and Family Literacy Act, is the largest source of federal funding for programs that teach adults reading, writing, math, technology skills, and English as a Second Language (ESL).
"The previous administration did not prioritize low-literate adults' needs, so the problems and numbers have only increased," said Harvey. "It is now a new administration and new Congress focused on the economy and job recovery. A basic foundation of a strong, employable workforce is a literate workforce. Now is the time for the federal government to take action to address the issue of adult illiteracy and include Title II funding," Harvey concluded.
Individuals who share ProLiteracy's position can send e-mails to President Obama and members of Congress through ProLiteracy's web site, www.proliteracy.org.
David C. Harvey, president of ProLiteracy, called on President Obama and Congress to include Title II of the Workforce Investment Act in the economic recovery proposal. "We applaud the efforts of our new president and Congress to craft a stimulus bill focused on creating new jobs," Harvey said. "But it is imperative that they focus on the very people who will have the most difficulty finding jobs -- low-literate workers. An effective recovery bill must provide adult literacy and employment training opportunities."
Harvey pointed out that the American Recovery and Reinvestment Act, to be reviewed by House subcommittees this week, funds job training services for at-risk youth, individuals with disabilities, and older Americans through Titles I, III, and IV of the Workforce Investment Act.
"But inexplicably, Title II, which focuses on adult education and literacy, was left out of the bill," Harvey said. "Many of the nearly 3 million jobs lost during 2008 were held by individuals who need additional help with basic reading, math, or English skills in order to take advantage of the jobs that the Recovery Act will create."
A recent U.S. Department of Education report estimates that 32 million adults in the U.S. don't read well enough to fill out a job application without help. Title II, also known as the Adult Education and Family Literacy Act, is the largest source of federal funding for programs that teach adults reading, writing, math, technology skills, and English as a Second Language (ESL).
"The previous administration did not prioritize low-literate adults' needs, so the problems and numbers have only increased," said Harvey. "It is now a new administration and new Congress focused on the economy and job recovery. A basic foundation of a strong, employable workforce is a literate workforce. Now is the time for the federal government to take action to address the issue of adult illiteracy and include Title II funding," Harvey concluded.
Individuals who share ProLiteracy's position can send e-mails to President Obama and members of Congress through ProLiteracy's web site, www.proliteracy.org.
Friday, January 23, 2009
Economic Stimulus Bill Mandates Electronic Health Records for Every Citizen without Opt-out or Patient Consent Provisions
/PRNewswire-USNewswire/ -- The Institute for Health Freedom (IHF) warns that the economic stimulus bill mandates electronic health records for every citizen without providing for opt-out or patient consent provisions. "Without those protections, Americans' electronic health records could be shared -- without their consent -- with over 600,000 covered entities through the forthcoming nationally linked electronic health-records network," says Sue A. Blevins, IHF president.
"President Obama has pledged to advance freedom. Therefore the freedom to choose not to participate in a national electronic health-records system must be upheld," Blevins says. "Unless people have the right to decide if and when their health information is shared or whether to participate in research studies, they don't have a true right to privacy."
IHF calls on Americans who care about health privacy to contact their members of Congress and President Obama to voice their own opinions about the need for opt-out and patient consent provisions, to ensure true patient privacy rights.
Some provisions of the economic stimulus bill include:
-- "The utilization of an electronic health record for each person in the United States by 2014."
-- "The National Coordinator shall perform the duties...consistent with the development of a nationwide health information technology infrastructure that allows for the electronic use and exchange of information and that...facilitates health and clinical research..."
The federal medical privacy rule promulgated under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) already permits the disclosure of personal health information without patient consent for treatment, payment, and oversight of the healthcare system. IHF has long called for modification of the HIPAA rule to restore patient consent in order to preserve the confidential doctor-patient relationship. The stimulus bill fails to restore patient consent, while at the same time, mandating electronic health records and facilitating the electronic exchange of every American's health information.
"President Obama has pledged to advance freedom. Therefore the freedom to choose not to participate in a national electronic health-records system must be upheld," Blevins says. "Unless people have the right to decide if and when their health information is shared or whether to participate in research studies, they don't have a true right to privacy."
IHF calls on Americans who care about health privacy to contact their members of Congress and President Obama to voice their own opinions about the need for opt-out and patient consent provisions, to ensure true patient privacy rights.
Some provisions of the economic stimulus bill include:
-- "The utilization of an electronic health record for each person in the United States by 2014."
-- "The National Coordinator shall perform the duties...consistent with the development of a nationwide health information technology infrastructure that allows for the electronic use and exchange of information and that...facilitates health and clinical research..."
The federal medical privacy rule promulgated under the Health Insurance Portability and Accountability Act of 1996 (HIPAA) already permits the disclosure of personal health information without patient consent for treatment, payment, and oversight of the healthcare system. IHF has long called for modification of the HIPAA rule to restore patient consent in order to preserve the confidential doctor-patient relationship. The stimulus bill fails to restore patient consent, while at the same time, mandating electronic health records and facilitating the electronic exchange of every American's health information.
Monday, January 12, 2009
Pelosi-Backed Loophole for Venture Capitalists Will Damage Middle Class Economy
/PRNewswire-USNewswire/ -- House Speaker Nancy Pelosi (D - CA) is leading congressional support for a new loophole in federal contracting law that will allow some of the wealthiest venture capitalists in America to receive federal contracts set-aside for small businesses.
The new loophole could divert billions of dollars in federal small business contracts away from middle class firms and into the hands of wealthy investors. If Congress does adopt legislation that allows venture capitalists to participate in federal small business contracting programs, thousands of middle class jobs could be lost as legitimate small businesses struggle to compete head-to-head with firms owned and controlled by billionaire investors.
In 2008, Speaker Pelosi backed H.R. 3567 and H.R. 5819, both of which would have allowed individual venture capitalists and even some of the nation's largest venture capital firms to take contracts meant for small businesses.
After leading the opposition against H.R. 3567, the American Small Business League (ASBL) was joined by the Small Business Administration (SBA), the U.S. Chamber of Commerce, the National Association of Government Contractors, the National Small Businesses Association, and the Bush White House.
The key element of the Pelosi-backed legislation is a change in the longstanding definition of a small business, which is defined in the Small Business Act as a firm that is "independently owned." Pelosi would like to see the definition changed to include firms that are not "independently owned" but actually owned and controlled by well-heeled venture capitalists.
Many of the top venture capital firms in America are located in or near Speaker Pelosi's 8th congressional district and according to MAPLight.org, from January 2005 to May 2008, Speaker Pelosi received a combined $108,400 from venture capital giant, Kleiner Perkins Caufield & Byers; pharmaceutical giant, Amgen Inc; and lobbyist, Akin Gump Strauss Hauer & Feld LLP.
The ASBL predicts that Speaker Pelosi may try to include a loophole for venture capitalists in any up-and-coming economic stimulus plan coming out of the House of Representatives, under the guise of "increasing access to capital" for small businesses.
In the past, the National Venture Capital Association (NVCA) has used the term "increasing access to capital" for small business to disguise legislation and policies designed to allow its members to take federal contracts earmarked for legitimate small businesses.
President-elect Barack Obama has also received significant contributions from the venture capital industry. His appointment of Karen Mills, a venture capitalist, as Administrator of the SBA is seen as a clear signal he will support legislation that will likely divert billions of dollars in federal infrastructure funds away from middle class firms, and into the hands of some of the nation's wealthiest investors.
The new loophole could divert billions of dollars in federal small business contracts away from middle class firms and into the hands of wealthy investors. If Congress does adopt legislation that allows venture capitalists to participate in federal small business contracting programs, thousands of middle class jobs could be lost as legitimate small businesses struggle to compete head-to-head with firms owned and controlled by billionaire investors.
In 2008, Speaker Pelosi backed H.R. 3567 and H.R. 5819, both of which would have allowed individual venture capitalists and even some of the nation's largest venture capital firms to take contracts meant for small businesses.
After leading the opposition against H.R. 3567, the American Small Business League (ASBL) was joined by the Small Business Administration (SBA), the U.S. Chamber of Commerce, the National Association of Government Contractors, the National Small Businesses Association, and the Bush White House.
The key element of the Pelosi-backed legislation is a change in the longstanding definition of a small business, which is defined in the Small Business Act as a firm that is "independently owned." Pelosi would like to see the definition changed to include firms that are not "independently owned" but actually owned and controlled by well-heeled venture capitalists.
Many of the top venture capital firms in America are located in or near Speaker Pelosi's 8th congressional district and according to MAPLight.org, from January 2005 to May 2008, Speaker Pelosi received a combined $108,400 from venture capital giant, Kleiner Perkins Caufield & Byers; pharmaceutical giant, Amgen Inc; and lobbyist, Akin Gump Strauss Hauer & Feld LLP.
The ASBL predicts that Speaker Pelosi may try to include a loophole for venture capitalists in any up-and-coming economic stimulus plan coming out of the House of Representatives, under the guise of "increasing access to capital" for small businesses.
In the past, the National Venture Capital Association (NVCA) has used the term "increasing access to capital" for small business to disguise legislation and policies designed to allow its members to take federal contracts earmarked for legitimate small businesses.
President-elect Barack Obama has also received significant contributions from the venture capital industry. His appointment of Karen Mills, a venture capitalist, as Administrator of the SBA is seen as a clear signal he will support legislation that will likely divert billions of dollars in federal infrastructure funds away from middle class firms, and into the hands of some of the nation's wealthiest investors.
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