Three Reasons Trickle-Down Tax Cuts Don’t Work

History shows that bad economic ideas almost never die, especially when they serve the wealthy and powerful. There’s no better example of this truth than trickle-down tax cuts. As we write this, the Trump administration is teeing up a tax plan that slashes taxes for the wealthy and the corporate sector, does little for everyone else (repealing the Affordable Care Act actually raises taxes on some with low and moderate incomes), and stiffs the U.S. Treasury to the tune of $6.2 trillion, according to the Tax Policy Center’s estimates.

Source: Three Reasons Trickle-Down Tax Cuts Don’t Work

Top Websites – 2016 | Planetizen: The independent resource for people passionate about planning and related fields

The annual list of the best planning, design, and development websites, representing some of the top online resources for news, information, and research on the built environment.

Source: Top Websites – 2016 | Planetizen: The independent resource for people passionate about planning and related fields

Brexit: This Backlash Has Been a Long Time Coming | naked capitalism

Globalization has winners and losers. Surprise, surprise the losers aren’t happy. Who’d have thunk.

The Brexit vote shows that globalisation leaves people behind – and that ignoring this for long enough can have severe political consequences

Source: Brexit: This Backlash Has Been a Long Time Coming | naked capitalism

Meet the Middle Precariat | naked capitalism

The word Precariat was popularized five or so years ago to describe a rapidly expanding working class with unstable, low-paid jobs. What I call the Middle Precariat, in contrast, are supposed to be properly, comfortably middle class, but it’s not quite working out this way.

There are people like the Floridian couple who both have law degrees—and should be in the prime of their working lives—but can’t afford a car or an apartment and have moved back in with the woman’s elderly mother. There are schoolteachers around the country that work second jobs after their teaching duties are done: one woman in North Dakota I spoke to was heading off to clean houses after the final bell in order to pay her rent.

Many of the Middle Precariat work jobs that used to be solidly middle class. Yet some earn roughly what they did a decade ago. At the same time, middle-class life is now 30 percent more expensive than it was 20 years ago. The Middle Precariat’s jobs are also increasingly contingent—meaning they are composed of short-term contract or shift work, as well as unpaid overtime. Buffeted by Silicon Valley-like calls to maximize disruption, the Middle Precariat may have positions “reimagined.” That cruel euphemism means they are to be replaced by younger, cheaper workers, or even machines.

Source: Meet the Middle Precariat | naked capitalism

Elizabeth Warren Opens Broad Attack Against Rent-Seeking Oligopolists Like Amazon, Apple, Google, Walmart, Comcast | naked capitalism

In a market the size of America’s prices should be lower than in other industrialised economies. By and large, they are not. Though American companies now make a fifth of their profits abroad, their naughty secret is that their return-on-equity is 40% higher at home.

Source: Elizabeth Warren Opens Broad Attack Against Rent-Seeking Oligopolists Like Amazon, Apple, Google, Walmart, Comcast | naked capitalism

Is Universal Basic Income a Powerful Strategy Against Job-Killing Automation? Andy Stern Thinks So | Alternet

The former head of SEIU says it’s time to rethink many of the basics about unions and the workplace.

Source: Is Universal Basic Income a Powerful Strategy Against Job-Killing Automation? Andy Stern Thinks So | Alternet

Who’s Responsible for the Demise of America’s Public Research Universities? – The Atlantic

America’s great public research universities, which produce path-breaking discoveries and train some of the country’s most talented young students, are under siege. The result may be a significant weakening of the nation’s preeminence in higher education. Dramatic cuts in public spending for state flagship universities seem to be at odds with widespread public sentiment. Americans say they strongly believe in exceptional educational systems; they want their kids to attend excellent and selective colleges and to get good, well-paying, prestigious jobs. They also support university research. After 15 years of surveys, Research! America found in 2015 that 70 percent of American adults supported government-sponsored basic scientific research like that produced by public universities, while a significant plurality (44 percent) supported paying higher taxes for medical research designed to cure diseases like cancer or Alzheimer’s. Nonetheless, many state legislators seem to be ignoring public opinion as they essentially starve some of the best universities—those that educate about two-thirds of American college students.

According to the American Academy of Arts and Sciences’ recently completed Lincoln Project report, between 2008 and 2013 states reduced financial support to top public research universities by close to 30 percent. At the same time, these states increased support of prisons by more than 130 percent. New York City’s budget office reported in 2013 that incarcerating a person in a state prison cost the city roughly $168,000 a year. California apparently does it on the cheap: It costs roughly $64,000 annually for each prisoner—a bit more than the cost of a year at an Ivy League university (average tuition is $50,000) and far more than at the University of California, Berkeley, ($13,000) or at CUNY ($8,000).

……….

All this amounts, arguably, to a pillaging of the country’s greatest state universities. And that pillaging is not a matter of necessity, as many elected officials would insist—it’s a matter of choice. If Wisconsin’s governor and legislature succeed in eliminating or emasculating tenure for faculty members at the University of Wisconsin, Madison, they can say goodbye to the greatness of that institution of higher learning. If Florida’s governor asks students in the humanities or arts to pay higher tuition than those who major in business or STEM subjects, Florida’s universities are apt to deteriorate in quality. And just so it doesn’t seem like I’m cherry picking, consider what North Carolina’s governor said not long ago: “If you want to take gender studies, that’s fine, go to a private school and take it. But I don’t want to subsidize that if that’s not going to get someone a job.” The consequence of such policy choices, it seems, is that tuition will go up and access for kids from poorer families will go down.

………

Source: Who’s Responsible for the Demise of America’s Public Research Universities? – The Atlantic

How Economics and Race Drive America’s Great Divide | Institute for New Economic Thinking

In the America of haves and have-nots, fewer folks are “movin’ on up” like George Jefferson of the classic sitcom. In a new paper for the Institute for New Economic Thinking, Peter Temin, MIT economist and economic historian, breaks down how it happened and where we’re headed with a powerful model first used by West Indian economist W. Arthur Lewis, the only person of African descent to win a Nobel Prize in economics. Dual economies are common in less developed countries, but Temin argues that America has now diverged into a top thirty percent, where children receive excellent educations and grow up to work in sectors like finance, technology and electronics industries (FTE)— and then there’s the rest, the low-wage folks who live paycheck to paycheck and whose kids have little hope of joining the lucky ones at the top. Temin explains what drives the dual economy, what race has to do with it, how children are hurt, and why our political system can’t seem to fix anything.

Source: How Economics and Race Drive America’s Great Divide | Institute for New Economic Thinking

This chart shows how federal housing policy benefits the rich more than the poor – Vox

Housing tax breaks for the rich are worth more than housing subsidies for the poor.

Source: This chart shows how federal housing policy benefits the rich more than the poor – Vox

NYC: Real Estate Tax Breaks for Oligarchs

How nauseating: NYC provides tax support to billionaires:

New York City’s method of assessing property values is so out of whack that the buyer of the most expensive apartment ever sold — a $100 million duplex overlooking Central Park — pays taxes as if the place were worth just $6.5 million.

With controversial tax breaks granted to the One57 condo tower, the total property tax bill for the spectacular penthouse is just $17,268, an effective rate of 0.017 percent of its sale price.

By contrast, the owner of a nearby condo at 224 E. 52nd St. that recently sold for $1.02 million is paying an effective rate of 2.38 percent, or $24,279, according to data compiled for The Post by the Revaluate.com real-estate information website.

(via ZeroHedge)         

 Tax Breaks for Oligarchs: The $100 Million NY Apartment With A Property Tax Rate of o.017%

Income is How You Get Out of Poverty, Assets are How You Stay Out — Rooflines

…income is how you get out of poverty, assets are how you stay out.

While income inequality in the U.S. recently hit its highest peak in 78 years, the wealth gap is even worse. The racial wealth gap—the difference in net worth between households of color and that of their white counterparts—has more than tripled since 1984. Today, African-American and Latino households have less than $1 in assets for every $6 that white households own. This is taking place in the context of a major demographic shift that will only magnify the costs of the racial wealth gap. By the end of the decade, the majority of youth will be people of color, and by 2044, the population majority overall will be people of color.

Assets and ownership are fundamental to economic opportunity and mobility. A child with a savings account in their own name is 2.5 times more likely to complete college than a child without one. That number jumps to 4.5 times more likely if that child is from a low-income household. Homeownership is linked to inheritance and access to credit, while access to credit is based on your income…..

(via Planetizin)      Income is How You Get Out of Poverty, Assets are How You Stay Out — Rooflines.

Don’t call it Gentrification

Herbert Marcuse: “The housing crisis doesn’t exist because the system isn’t working. It exists because that’s the way the system works.”

via Don’t call it gentrification – Salon.com.