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brickol

Stimulus checks: Senate deal includes individual payments -- but don't expect the money... - 0 views

  • Washington (CNN)Lawmakers struck a $2 trillion stimulus deal early Wednesday that includes sending checks directly to individuals amid the coronavirus crisis -- but it will likely take until at least May before the money goes out.Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17.However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.About 90% of Americans would be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. Lawmakers set aside $250 billion for the so-called recovery rebates.
  • There are provisions in the bill to include those who don't earn enough to file returns, but some people may be missed, said Howard Gleckman, a senior fellow at the center.Under the legislation being negotiated, lower- and middle-income Americans would receive just over two-thirds of the benefits, Gleckman said. An earlier version of the bill would have given lower-income households less or no assistance.
  • The Internal Revenue Service has sent out economic stimulus checks before, and although those plans were slightly different, they can offer some insight into how long the process might take."Certainly from what we've seen in the past, it's taken a pretty significant amount of time to get checks out after a policy is put in place," said Erica York, an economist at the Tax Foundation.In 2001, it took six weeks for the IRS to start sending out rebate checks authorized by President George W. Bush's tax cut. Then in 2008, amid the Great Recession, it took three months for the checks to start going out after the law was signed by Bush. In that case, Americans were required to file their tax return first, in order to get the check. Once they filed their return, it took between eight and 12 weeks to see the money.
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  • It's likely that Americans would receive the stimulus payments faster this time around because more of them file electronically and provide the IRS with their bank information, Gleckman said. Some 88% of individual returns were filed electronically in 2018, compared to 58% in 2008.But there are other factors that may slow the process. Even absent the coronavirus challenges, the agency is working with a smaller budget and less staff than it had in 2010. Now, because of the coronavirus, the agency has shut down its in-person taxpayer assistance centers located across the country at a time when people are sure to have questions about the emergency checks and other changes. Treasury announced last week that it is pushing back the tax return deadline to July 15. Additionally, Congress created a new tax credit designed to refund businesses that are offering their employees coronavirus-related paid leave.
  • First, the IRS will have to calculate each person's payment amount. Then, it will need the correct direct deposit information or mailing addresses. To get the money to people who don't usually file tax returns, it might have to request that information from the Social Security Administration or Veterans Affairs. In 2008, those people were required to file a return anyway in order to get their rebate.Meanwhile, the IRS will inevitably be fielding calls from Americans concerned about when their check will arrive and whether they took all the necessary steps to receive the money.
  • Later in 2008, after the economic stimulus checks were sent out, Olson testified before Congress, telling lawmakers that they should fund a new unit within the agency that would be dedicated to facilitating new and emergency initiatives. She argued that it would free up other employees to focus on improving the existing systems and executing the day-to-day work of the agency -- but that never happened.
anonymous

Relief Payments Provide Lifelines To Struggling Americans : NPR - 0 views

  • When Mike Phelps moved from Detroit to western Kentucky in 2019, he brought his small business, GenDrop, with him.GenDrop rents out generator power for concerts and music festivals. Phelps had already powered nearly 100 special events throughout Michigan, and he hoped to do the same in his new state. But when the pandemic hit, and shows were canceled all over the world, Phelps began bleeding money.
  • Phelps got a loan from the Small Business Administration, but it was far too small to make a difference. Now he plans to use his $1,400 stimulus check to help keep GenDrop afloat until business picks up.
  • Since only a day after President Biden signed the $1.9 trillion pandemic relief bill, people around the country have reported seeing deposits pending in their bank accounts. That money is expected to be made available as soon as Wednesday.
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  • Phelps is from one of the 80% to 90% of households expected to receive a stimulus payment from the government. And to the delight of many, that money is coming sooner than anticipated.
  • Most individuals can expect to receive up to $1,400, couples up to $2,800, and those with children and adult dependents can expect $1,400 for each one. Payments start tapering off for individuals making $75,000 per year, or married couples making $150,000. And unlike the earlier stimulus checks, the maximum cutoff is lower: Individuals no longer qualify once they make $80,000 a year ($160,000 for couples).
  • According to the U.S. Treasury, payments to eligible Americans will continue through the next several weeks on a rolling basis. Most people who are eligible will automatically receive those payments — no action required.
  • The IRS says it will automatically calculate the amount that people receive, based on their latest processed tax return.
  • Payments will go out in batches. The first batch will go to taxpayers who provided direct deposit information on their 2019 or 2020 tax returns. That will be followed by a second batch to taxpayers for whom the IRS already has payment info. For them, the payments could come in the form of checks or prepaid debit cards in the mail.People who receive Social Security or other federal benefits will receive the payment in the same way as their regular benefits. The IRS has not yet announced a payment date for this group, but says it will do so shortly.
  • The Treasury says it will provide more information in the coming days for people who don't have a bank account, or whose address has recently changed. People will soon be able to check the status of their stimulus check at the IRS website.For Phelps of GenDrop, the deposit is already "pending" in his bank account, and should be available within days.
Javier E

On Warren Buffett and Stephen King - Clive Crook - Politics - The Atlantic - 0 views

  • Apparently, all right-minded people want the "if-you-want-your-taxes-raised-why-don't-you-send-the-IRS-a-bigger-cheque" meme finally dead and buried. All right, but before we bury it let's see if we can understand it. I think it's childishly simple once you recognize that two separate questions are involved. Would IRS donations by Warren Buffett and Stephen King make the tax code fairer? No. Would IRS donations by Warren Buffett and Stephen King help to remedy the inequity they say the tax code causes? Yes. In other words, Warren Buffett and Stephen King should write generous checks to the IRS and not shut up, but keep demanding the fairer system they say they want.
julia rhodes

U.S. Citizens Renouncing Skyrocket---The Tina Turner Effect - Forbes - 0 views

  • America is a great land and lures immigrants worldwide, yet record numbers of U.S. citizens and permanent residents are giving up their citizenship or residency.
  • And this year that trend is up by at least 33%  from the previous high in 2011.
  • Since then, the tax and other consequences do not depend on why one leaves. Yet after Facebook co-founder Eduardo Saverin departed permanently for Singapore with his Facebook IPO riches, there was an angry backlash.
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  • Meantime, are people following Tina Turner’s lead? No, and not Eduardo Saverin’s either. Most expatriations are probably motivated primarily by factors such as family and convenience. Many people like Ms. Turner have built a life somewhere else and may not plan to need a U.S. passport.
  • Although statistics are not available for why people say a final good-bye, many now find America’s global income tax compliance and disclosure laws inconvenient and nettlesome.
  • What’s more, U.S. reporting is based on their worldwide income, even though they are paying taxes in the country where they live.
  • . It requires an annual Form 8938 to be filed with income tax returns for foreign assets meeting a threshold. And foreign banks are sufficiently worried about keeping the IRS happy that many simply do not want American account holders. Americans abroad can be pariahs shunned by banks for daily banking activities.
  • To exit, you generally must prove 5 years of tax compliance in the U.S. Plus, if you have a net worth greater than $2 million or have average annual net income tax for the 5 previous years of $155,000 or more (that’s tax, not income), you pay an exit tax.
Javier E

The Sober Math Everyone Must Understand about the Pandemic - 0 views

  • hospital beds are not the big problem. The lack of ventilators is the big problem. Most estimates peg the ventilators in the United States at roughly 100,000 to 150,000 units.
  • So if 1.5M people of the 10 million infected 30 days from now require hospital care (15% of the 10M estimated total infections), 1.3M may not get the care that they need because we don’t have enough ventilators, beds, and ICU beds in the United States.
  • remember, this is only if ALL OF US EFFECTIVELY start social distancing by April 11th (30 days from today). This increases the mortality rate significantly.
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  • BUT IF WE START EXTREME SOCIAL DISTANCING BY MARCH 23 (12 days from original writing), WE AVOID OVER 1.4 MILLION PEOPLE GETTING CRITICALLY ILL AND OVERWHELMING THE HOSPITALS
  • the math is very different, as the exponential growth will only be 2 to the 4th power (12 days divided by the doubling rate of every 3 days equals the exponent of 4):2 x 2 x 2 x 2 = 16
  • So instead of 10 Million cases in the United States if we wait 30 days, if we act 18 days sooner, we will have only 160,000 cases (16 times the estimated 10,000 actual cases as of today), of which 15% are likely to require hospitalization.
  • This is 24,000 critical patients (a huge difference compared to 1.5 million acute patients). The difference between taking extreme measures now, versus waiting even a few days, is very large due to how exponents work in math.
  • Finally, the article that I posted yesterday written by Tomas Pueyo has been read 30M times in the last few days and has been updated with new information. It’s worth reading again.
  • https://medium.com/…/coronavirus-act-today-or-people-will-d…
clairemann

Democrats Say Agency Run By Trump Holdover Is Delaying Stimulus Checks | HuffPost - 0 views

  • Millions of disabled and retired Americans are still waiting for their $1,400 stimulus payments because of a holdup at the Social Security Administration, House Democrats said Wednesday. 
  • Several Democrats, including Sen. Sherrod Brown (D-Ohio) and Rep. John Larson (D-Conn.), had previously urged President Joe Biden to fire Saul, a Donald Trump appointee whose term doesn’t expire until 2025. Biden has hesitated to do so even though he’s fired other Trump holdovers in other agencies before their terms have ended. 
  • The IRS has sent more than 127 million payments so far. Neal and other members of his committee earlier this week asked Social Security and the IRS to explain the delayed payments to Social Security beneficiaries. 
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  • “Social Security staff is working day and night with Treasury and IRS representatives to ensure that the electronic file of Social Security and SSI recipients is complete, accurate, and ready to be used to issue payments,” the spokesperson said. 
  • Most Americans receive the payments based on their tax returns, but people who don’t owe federal income taxes aren’t required to file returns. In the previous two rounds of payments, the IRS used payment information on file with Social Security to send checks to retirement or disability beneficiaries who are non-filers. 
leilamulveny

Opinion | How Biden Funds His Next Bill: Shrink the $7.5 Trillion Tax Gap - The New Yor... - 0 views

  • With the passage of a deficit-financed $1.9 trillion relief bill just hours away, Democrats in Congress may soon pivot to new agenda items, including President Biden’s Build Back Better plan for infrastructure and other critical investments. And those lawmakers will inevitably face intense pressure from fiscal moderates to include tax “pay fors” in spending legislation. One of the best ways to raise plenty of revenue — and help honest taxpayers — is to effectively battle tax cheats. To do that, though, Mr. Biden and Congress must seize the chance to revamp and restore the federal government’s own infrastructure: the Internal Revenue Service.
  • That tax gap is projected to total about $7.5 trillion over this decade. Meanwhile, the I.R.S. answered fewer than a quarter of its phone calls from people seeking help with their taxes.
  • . It would help the overwhelming majority of Americans who want to pay whatever they owe. It would help honest businesses better thrive and compete. And restaffing the I.R.S. through restored funding would help fight corruption and strengthen the rule of law.
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  • Perhaps unsurprisingly, the wealthiest are the prime beneficiaries of the status quo. Estimates suggest that the top 1 percent of filers account for at least 28 percent and as much as 70 percent of the tax gap. The wealthiest households and largest businesses often use a complex maze of financial arrangements and offshore entities that make it incredibly hard and time-consuming for the I.R.S. to untangle what taxes are owed but not paid.
  • A Treasury Inspector General for Tax Administration report published last year found the I.R.S. had failed to follow up with more than 369,000 high-income households that simply did not file a tax return in prior years.
  • Multinational corporations being audited by the I.R.S. have shown they can outgun and outlast it, stalling their cases as long as possible to run out the clock on the statute of limitations. The number of cases brought by the agency’s criminal division has dropped by about a quarter since 2010. Many recent high-profile prosecutions for tax evasion — like those of Paul Manafort, Michael Cohen and Michael Avenatti — occurred only because federal investigators were investigating them for other reasons.
  • An increase in I.R.S. funding to reverse this decade of damage would also make good fiscal sense. Natasha Sarin, an assistant professor at the University of Pennsylvania law school, and Larry Summers, the Harvard economist, have a proposal to restore about $100 billion to the agency’s budget over the next 10 years.
  • For example, because the I.R.S. gets information on wage and salary income from workers’ tax returns and their employers — and because their taxes are often automatically withheld — compliance on this type of income is above 95 percent
  • Lawmakers have the opportunity to remedy that this year and finally secure the 21st-century tools and resources the I.R.S. needs. Because reforming the I.R.S. is compatible with the budget process that lets spending bills pass in the Senate with a simple majority, there’s little excuse for inaction.
edencottone

Ron Johnson says he didn't feel threatened Jan. 6. If BLM or Antifa stormed Capitol, he... - 0 views

  • In an interview on conservative talk radio, Sen. Ron Johnson, one of former President Donald Trump’s strongest supporters, said he didn’t feel threatened by rioters violently storming the Capitol. Instead, he said, he might have been scared if the participants were Black Lives Matter or Antifa supporters — a comment with strong racial overtones.
  • I knew those were people that love this country, that truly respect law enforcement, would never do anything to break the law, and so I wasn't concerned,”
  • "Now, had the tables been turned — Joe, this could get me in trouble — had the tables been turned, and President Trump won the election and those were tens of thousands of Black Lives Matter and Antifa protesters, I might have been a little concerned," Johnson said.
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  • The insurrection left several people dead and hundreds of people have been charged in connection to the events of Jan. 6.
  • "We’ve moved from just plain old fringe, extremist rants to fringe extremist and racist rants," Pocan said.
  • FBI Director Christopher Wray said at a Senate Judiciary Committee hearing that there is "no evidence" Antifa had any role in the insurrection. MOST READ IRS partially shields some stimulus payments from debt reductions MAGA voters discovered a new home online. But it isn't what it seems. Newsom says California recall likely to qualify, tries to soften Feinstein stance McCarthy decries ‘political stunt’ after troops visit lawmaker’s office An unlikely Trump turncoat shows the GOP way to resist his influence
  • Johnson also has pushed the conspiracy theory that outside provocateurs were part of the riots, a claim Trump backers have often made.
edencottone

Trump was supposed to be a political Godzilla in exile. Instead, he's adrift. - POLITICO - 0 views

  • He backed away from creating a third party and has soured on the costly prospect of launching his own TV empire or social media startup.
  • And though he was supposed to build a massive political apparatus to keep his MAGA movement afloat, it’s unclear to Republicans what his PAC is actually doing, beyond entangling itself in disputes with Republican icons and the party’s fundraising arms.
  • Ex-president Donald Trump finds himself adrift while in political exile. And Republicans, and even some allies, say he is disorganized, torn between playing the role of antagonist and party leader.
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  • It’s like political phantom limbs. He doesn't have the same political infrastructure he did three months ago as president,” added GOP strategist Matt Gorman, who previously served as communications director for the National Republican Congressional Committee.
  • Instead, Trump has maintained close ties to GOP officials who have committed to supporting incumbents, stayed almost entirely out of the spotlight, delivered fairly anodyne remarks the one time he emerged, and offered only sparse criticism of his successor, Joe Biden.
  • Trump has gone from threatening party bodies for using his name and likeness in their fundraising efforts to offering up his Mar-a-Lago estate as a host site for part of the Republican National Committee’s spring donor retreat. He savagely attacked veteran GOP operative Karl Rove for criticizing his first post-presidency speech at the annual Conservative Political Action Committee, and endorsed Sen. Jerry Moran (R-Kan.), who repeatedly scrutinized Trump’s own trade practices while in office.
  • In his role as chairman of the National Republican Senatorial Committee, Scott has promised to stick by GOP incumbents — including Alaska Sen. Lisa Murkowski, who voted to convict Trump in his Senate trial last month on charges of inciting an insurrection. The Florida Republican said he had a “great meeting” with Trump in a tweet he shared Friday.
  • “For any normal politician, it would look like he’s trying to have it both ways but really he’s trying to have it his way,” said a former Trump White House official. “He only cares about maintaining his power and his stranglehold over the Republican Party and it doesn’t matter to him how any of the moves he makes affect the long-term success of institutions or individuals other than himself.”
  • He continues to hold court on the patio of his Mar-a-Lago resort where he is greeted by a standing ovation from members when he and the former first lady walk by. He spends his days monitoring the news, making calls and playing golf at his eponymous club just a few miles away.
  • But the factions that have already formed among those surrounding him suggest potential turbulence ahead. Three veterans of Trump’s 2020 campaign — Brad Parscale, Bill Stepien and Justin Clark — have been screening primary recruitments and brainstorming ways to reestablish his online presence, while Dave Bossie and Corey Lewandowski are in talks with the ex-president to launch a new fundraising entity on his behalf, according to people briefed on the recent discussions.
  • One former administration official who has been in contact with Trump described him as a “pinball,” noting that his tendency to abruptly change directions or seize on a new idea after speaking with a friend or outside adviser — a habit that often frustrated aides during his time in office — has carried into his post-presidency life.
  • The fear among Republicans is that Trump’s indecisiveness will extend to his personal political future as well. Trump has continued to dangle a 2024 run over the party, and the will-he-won’t-he guessing game has held presidential hopefuls in limbo. MOST READ IRS partially shields some stimulus payments from debt reductions MAGA voters discovered a new home online. But it isn't what it seems. Newsom says California recall likely to qualify, tries to soften Feinstein stance McCarthy decries ‘political stunt’ after troops visit lawmaker’s office An unlikely Trump turncoat shows the GOP way to resist his influence
  • But stripped of a social media platform like Twitter, the former president has had to rely on issuing statements — some mimicking the tone and length of his past tweets — via his post-presidency office or political PAC press lists. So far, he’s issued more than two dozen endorsements and statements since leaving the White House. The more recent ones have bashed Senate Minority Leader Mitch McConnell and sought credit for the current Covid-19 vaccine distribution.
  • When I was talking to the president this morning… he’s like, ‘Yeah, she’s no good. I said that and now everybody’s seeing it. But you realize if you say anything negative about Meghan Markle you get canceled. Look at Piers,’” Miller said, recounting his conversation with Trump, who had been referring to Piers Morgan, the polarizing “Good Morning Britain” host who parted ways with the show this week after dismissing Markle’s revelations as lies.
  • But so far, many of his recent political maneuverings have been met with a shrug by the GOP. Trump’s public tussle with the Republican Party over fundraising and the use of his name and likeness in appeals for money appeared to fizzle out after attorneys for the Republican National Committee denied Trump’s cease-and-desist demands. By week’s end, the RNC was not only still using Trump’s name in fundraising solicitations, it was offering him up as an enticement.
nrashkind

Saints QB Brees draws ire of NBA's James over kneeling comments - Reuters - 0 views

  • New Orleans Saints quarterback Drew Brees drew the ire of NBA great LeBron James when he said on Wednesday he does not feel NFL players should kneel during the national anthem and called the gesture disrespectful to the American flag.
  • Brees was asked during an appearance on Yahoo Finance’s On the Move about the possibility of players protesting against racial injustice by kneeling during the anthem when the NFL’s 2020 season kicks off in September.
  • “I will never agree with anybody disrespecting the flag of the United States of America or our country,” Brees told the program before explaining that when he hears the anthem he thinks of his two grandfathers who served in the military.
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  • “Is everything right with our country right now? No, it’s not. We still have a long away to go. But, I think what you do by standing there and showing respect for the flag with your hand over your heart, is it shows unity.”
  • “WOW MAN!! Is it still surprising at this point. Sure isn’t! You literally still don’t understand why Kap was kneeling on one knee??” the Los Angeles Lakers forward posted on Twitter.
  • Has absolute nothing to do with the disrespect of Flag of United States and our soldiers(men and women) who keep our land free.”
  • James also said his father-in-law fought for the United States and that he asked him questions about it and thanks him all the time.
  • “He never found Kap peaceful protest offensive because he and I both know what’s right is right and what’s wrong is wrong! God bless you.”
Javier E

Sharia law may be coming to America. But it's Christians who are bringing it. - The Was... - 0 views

  • Much-dreaded “sharia law,” or something resembling it, may well be coming to the United States.
  • the religiously motivated laws creeping into public policymaking aren’t based on the Koran, and they aren’t coming from mythical hard-line Islamists in, say, Dearborn, Mich. They’re coming from the White House, which wants to make it easier for hard-line Christians to impose their beliefs and practices on the rest of us.
  • He vowed to help blur the line between church and state by repealing the Johnson Amendment.
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  • this tax code provision bars tax-exempt entities such as churches and charitable organizations from participating in campaigns for or against political candidates. It dates to 1954, when it was signed by Republican President Dwight D. Eisenhower. It was not terribly controversial at the time.
  • The provision basically says that if you want to be exempted from paying taxes — meaning you are effectively subsidized by other taxpayers, who pay for your access to emergency services, roads and other government functions — you can’t be involved in partisan politics. You can’t, among other things, take tax-deductible donations from your worshippers and turn around and spend them on political campaigns.
  • during the campaign, Trump indicated he’d do his darnedest to get them what they really want: not the ability to endorse candidates from the pulpit — a practice that the IRS has already been ignoring — but the ability to funnel taxpayer-subsidized funds into the political process.
  • the most recent Republican platform included a commitment to repeal the Johnson Amendment.
  • The effect of the order might be to create wholesale exemptions to anti-discrimination law for people, nonprofits and closely held for-profit corporations that claim religious objections to same-sex marriage, premarital sex, abortion and transgender identity. It would also curb women’s access to contraception through the Affordable Care Act.
  • This is, of course, all in the name of preserving religious freedom. Except that it allows some people to practice religious freedom by denying jobs, services and potentially public accommodation to those with differing beliefs.
  • I wish I could say that only a tiny fringe believes Christian practices deserve pride of place in public life and policymaking. But that’s not the case.
  • In a poll released this week by the Pew Research Center, Americans were asked what made someone “truly American.” A third of respondents overall, and 43 percent of Republicans, said you need to be Christian. That would exclude me, as well as about 30 percent of the population.
Javier E

Scandals Republicans Like - NYTimes.com - 0 views

  • what if the truth is more pedestrian: that the I.R.S. is simply not adequately funded to do its job and that Republicans are the ones who have kept the agency underfunded?
  • Republican zeal for reducing the size of government, particularly its tax collecting apparatus, has left the I.R.S. ill-equipped to perform its functions, one of which is to review applications for tax-exempt status from groups claiming to be “social welfare” organizations under section 501(c)(4) of the Internal Revenue Code.
  • Under intense pressure to meet I.R.S. production targets, civil servants – including registered Republicans — adopted the practice of flagging phrases like “tea party” to speed identification of applications requiring careful examination.
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  • Was there, Connolly asked, “a triggering event that flooded the I.R.S. with new applications?” Answering his own question, Connolly said “the triggering event is the Supreme Court ruling, Citizens United. The number of applications between 2009 and 2012 for a 501(c)(4) doubled from 1,751 to 3,357.” Citizens United was decided on Jan. 21, 2010.
  • HE I.
  • R.S. appropriation has gone up during periods of Democratic control and down when Republicans have controlled at least one branch of Congress
  • the I.R.S. commissioner, described the effect of these cuts to the Way and Means Committee. “No challenge facing our agency is greater than the significant reduction in funding that has occurred over the last several years,” he said. “I am deeply concerned about the ability of the I.R.S. to continue to fulfill its mission if the agency lacks adequate funding. Our current level of funding is clearly less than what the agency needs.”
  • Koskinen observed that cuts in agency funding have reduced audits of corporations and of wealthy citizens: “Audits of high-income individuals – defined as those with $1 million or more in income – fell 3.7 percent as well last year. The I.R.S. examined approximately 61,000 business returns in FY 2013, down 13 percent from FY 2012.”
  • Republicans are aware of what happens to tax collections from the rich when the I.R.S. budget is cut and seem happy to live with those consequences.
  • imilarly, the House Oversight Committee has been relentless in its efforts to blame the Obama administration for the Sept. 11, 2012 terrorist attack on the American diplomatic mission in Benghazi, when Ambassador Christopher Stevens and three others were killed. Committee Republicans have done so despite their own record of repeatedly voting to cut spending on security for state department personnel.
  • it’s no fun serving on an oversight committee when your own party is running the executive branch. The years when Republicans controlled the House and White House, 2001 to 2007, were a public relations disaster for the Oversight Committee. The panel pointedly avoided taking on the Bush administration despite a plethora of scandals: abuses in the Abu Ghraib prison, evidence that the claim Iraq possessed weapons of mass destruction was false, Jack Abramoff’s illicit lobbying, and the failure of the administration to respond to Hurricane Katrina.By the end of 2005, the committee had issued the Bush administration a total of 3 subpoenas, all on relatively noncontroversial matters.
Javier E

A Big Safety Net and Strong Job Market Can Coexist. Just Ask Scandinavia. - NYTimes.com - 0 views

  • It is a simple idea supported by both economic theory and most people’s intuition: If welfare benefits are generous and taxes high, fewer people will work. Why bother being industrious, after all, if you can get a check from the government for sitting around
  • The idea may be backward.
  • The United States and many other nations with relatively low taxes and a smaller social safety net actually have substantially lower rates of employment.
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  • Some of the highest employment rates in the advanced world are in places with the highest taxes and most generous welfare systems, namely Scandinavian countries.
  • In Scandinavian countries, working parents have the option of heavily subsidized child care. Leave policies make it easy for parents to take off work to care for a sick child. Heavily subsidized public transportation may make it easier for a person in a low-wage job to get to and from work. And free or inexpensive education may make it easier to get the training to move from the unemployment rolls to a job.
  • In short, more people may work when countries offer public services that directly make working easier, such as subsidized care for children and the old; generous sick leave policies; and cheap and accessible transportation. If the goal is to get more people working, what’s important about a social welfare plan may be more about what the money is spent on than how much is spent.
  • , it could mean that more direct aid to the working poor could help coax Americans into the labor force more effectively than the tax credits that have been a mainstay for compromise between Republicans and Democrats for the last generation.
  • In Denmark, someone who enters the labor force at an average salary loses 86 percent of earnings to a combination of taxes and lost eligibility for welfare benefits; that number is only 37 percent in the United States. Yet the percentage of Danes between the ages of 20 and 59 with a job is 10 percentage points higher than in the United States.
  • In the United States, the major policies aimed at helping the working poor are devised around tax subsidies that put more cash in people’s pockets so long as they work, most notably through the Earned-income tax credit and Child Tax Credit.
  • There is a solid correlation, by Mr. Kleven’s calculations, between what countries spend on employment subsidies — like child care, preschool and care for older adults — and what percentage of their working-age population is in the labor force.
  • Collectively, these policies and subsidies create flexibility such that a person on the fence between taking a job versus staying at home to care for children or parents may be more likely to take a job.
  • The employment subsidies Mr. Kleven cites surely help coax more Scandinavians into the work force, Mr. Greenstein agrees, but shouldn’t be viewed in isolation.
  • wages for entry-level work are much higher in the Nordic countries than in the United States, reflecting a higher minimum wage, stronger labor unions and cultural norms that lead to higher pay
  • There are countless differences between Northern European countries and the rest of the world beyond child care policies and the like. The Scandinavian countries may have cultures that encourage more people to work, especially women.
  • Every country has a mix of taxes, welfare benefits and policies to promote work that reflects its politics and culture. In the large, diverse United States, there is deep skepticism of social welfare programs and direct government spending, along with a greater commitment to keeping taxes low.
Javier E

Taxpayers may have paid $10 million to help wealthy families bribe their way into elite... - 0 views

  • In a worst-case scenario, if all $25 million that the accused parents allegedly paid out was funneled through a public charity and claimed as tax deductions, as prosecutors outlined in a criminal complaint, then taxpayers chipped in as much as $10 million
  • “Assuming these are all high-income individuals, they’re all paying at the highest tax rate, which presumably was about 40%, roughly,” Hackney told MarketWatch. “Assuming they were able to deduct the entirety of it, that would be 40% of the $25 million. That’s somewhere in the neighborhood of $7 [million] to $10 million, approximately, that taxpayers are footing the bill for, and that’s troubling.”
  • Had Charity Navigator’s reviewers examined Key Worldwide Foundation, a few red flags would have stood out immediately, she said. For one, the charity listed $3.7 million in revenue in 2016 (the last year it filed a Form 990) but said it spent nothing on fundraising costs. That’s unusual, Post said. The foundation also claimed to make grants to other nonprofits, but, despite the nearly $4 million in took in 2016, it made only one $10,000 grant to another group. That would be “concerning” to Charity Navigator,
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  • The wealthy parents charged in the scheme seemed to assume they wouldn’t get caught as long as their payments were disguised as contributions to a charity, and that worries Hackney, the Pitt professor. It seems to indicate a perception that charities aren’t closely scrutinized, and that the wealthy can use them to do their bidding
  • “It tells us there’s a problematic culture developing at high-income levels in charitable giving,” Hackney said. “Something’s out of whack with our system of inequality and our philanthropic systems. Even though it wasn’t an actual charity, they saw philanthropy as a weak space, a place they could arbitrage and take advantage of.”
  • That’s partly based in reality, said Hackney, who worked in the office of the chief counsel of the IRS before joining the university faculty. The IRS is underfunded and short-staffed. The audit rate is, in general, “really low” and even lower for charities
  • And philanthropy is indeed increasingly the domain of the very wealthy. Charitable giving reached an all-time high in 2017, but that was largely due to big donations from America’s richest families. In 2018, donations of $1,000 or more increased by 2.6%, while donations in the $250 to $999 range dropped by 4%, and donations of under $250 dropped by 4.4
  • “Giving is increasing because of larger gifts from richer donors,” said Elizabeth Boris of the Association of Fundraising Professionals. “Smaller and midlevel donors are slowly but surely disappearing — across the board, among all organizations.”
anonymous

Stimulus Money Should Have Gone to the Jobless, Economists Say - The New York Times - 0 views

  • While lawmakers debate increasing the payments to $2,000, most Americans are expected to save, not spend, their $600 checks.
  • “I’ve got more clients than I can handle right now and I’ve made more money than I usually do,” said Mr. Gilbert, a 71-year-old lawyer who lives in a Boston suburb. “So I’m not really suffering financially.”Cheryl K. Smith, an author and editor who lives in Low Pass, Ore., isn’t in a rush to spend the money, either. She plans to save a portion, too, while donating the rest to a local food bank. “I’m actually saving money right now,” Ms. Smith said.President Trump’s demand to increase the already-approved $600 individual payment to $2,000, with backing from congressional Democrats, has dominated events in Washington this week and redefined the debate for more stimulus during the pandemic. Mitch McConnell, the Senate majority leader, said on Wednesday he would not allow a vote on a standalone bill increasing the checks to $2,000, dooming the effort, at least for now.
  • After an earlier round of $1,200 stimulus checks went out in the spring, the saving rate skyrocketed and remains at a nearly 40-year high. That largely reflects the lopsided nature of the pandemic recession that has put some Americans in dire straits while leaving many others untouched.
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  • A more effective approach, experts say, would have raised unemployment insurance benefits to the jobless by $600 a week, matching the supplement under the stimulus package Congress passed last spring, rather than the $300 weekly subsidy the new legislation provides. Democrats had pushed for larger payments to the jobless and included it in legislation that passed the House, which they control. But the measure met stiff resistance from Republicans, who control the Senate, and was not included in the final compromise bill.
  • A study released in August by three economists, Olivier Coibion, Yuriy Gorodnichenko and Michael Weber, found that recipients of the $1,200 payments sent out under the CARES Act last spring largely held off on spending the money. Only 15 percent of people said they had spent it, or planned to spend it. Most said they would save the cash or use it to pay down debt..css-fk3g7a{font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:0.875rem;line-height:1.125rem;color:#121212 !important;}@media (min-width:740px){.css-fk3g7a{font-size:0.9375rem;line-height:1.25rem;}}.css-rqynmc{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.9375rem;line-height:1.25rem;color:#333;margin-bottom:0.78125rem;}@media (min-width:740px){.css-rqynmc{font-size:1.0625rem;line-height:1.5rem;margin-bottom:0.9375rem;}}.css-rqynmc strong{font-weight:600;}.css-rqynmc em{font-style:italic;}.css-akgeos{margin-bottom:15px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.75rem;line-height:1rem;color:#787878;}@media (min-width:740px){.css-akgeos{font-size:0.8125rem;line-height:1.125rem;}}.css-110ouu6{margin:10px auto 5px;font-family:nyt-franklin,helvetica,arial,sans-serif;font-weight:700;font-size:1.125rem;line-height:1.3125rem;color:#121212;}@media (min-width:740px){.css-110ouu6{font-size:1.25rem;line-height:1.4375rem;}}#NYT_BELOW_MAIN_CONTENT_REGION .css-110ouu6{font-weight:700;font-size:1.375rem;line-height:1.75rem;margin-bottom:5px;}@media (min-width:740px){#NYT_BELOW_MAIN_CONTENT_REGION .css-110ouu6{font-size:1.5rem;line-height:1.875rem;}}.css-121grtr{margin:0 auto 10px;}.css-16ed7iq{width:100%;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;-webkit-box-pack:center;-webkit-justify-content:center;-ms-flex-pack:center;justify-content:center;padding:10px 0;background-color:white;}.css-pmm6ed{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-align-items:center;-webkit-box-align:center;-ms-flex-align:center;align-items:center;}.css-pmm6ed > :not(:first-child){margin-left:5px;}.css-5gimkt{font-family:nyt-franklin,helvetica,arial,sans-serif;font-size:0.8125rem;font-weight:700;-webkit-letter-spacing:0.03em;-moz-letter-spacing:0.03em;-ms-letter-spacing:0.03em;letter-spacing:0.03em;text-transform:uppercase;color:#333;}.css-5gimkt:after{content:'Collapse';}.css-rdoyk0{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;-webkit-transform:rotate(180deg);-ms-transform:rotate(180deg);transform:rotate(180deg);}.css-eb027h{max-height:5000px;-webkit-transition:max-height 0.5s ease;transition:max-height 0.5s ease;}.css-6mllg9{-webkit-transition:all 0.5s ease;transition:all 0.5s ease;position:relative;opacity:0;}.css-6mllg9:before{content:'';background-image:linear-gradient(180deg,transparent,#ffffff);background-image:-webkit-linear-gradient(270deg,rgba(255,255,255,0),#ffffff);height:80px;width:100%;position:absolute;bottom:0px;pointer-events:none;}#masthead-bar-one{display:none;}#masthead-bar-one{display:none;}.css-6s5quk{background-color:white;max-width:600px;width:calc(100% - 40px);margin:1.5rem auto 1.9rem;}@media (min-width:740px){.css-6s5quk{width:100%;margin:40px auto;}}.css-6s5quk:focus{outline:1px solid #e2e2e2;}#NYT_BELOW_MAIN_CONTENT_REGION .css-6s5quk{padding:0;max-width:600px;margin-right:auto;margin-left:auto;}.css-6s5quk[data-truncated] .css-rdoyk0{-webkit-transform:rotate(0deg);-ms-transform:rotate(0deg);transform:rotate(0deg);}.css-6s5quk[data-truncated] .css-eb027h{max-height:300px;overflow:hidden;-webkit-transition:none;transition:none;}.css-6s5quk[data-truncated] .css-5gimkt:after{content:'See more';}.css-6s5quk[data-truncated] .css-6mllg9{opacity:1;}.css-1crgp49{border:1px solid #e2e2e2;padding:15px;margin:0 auto;overflow:hidden;}@media (min-width:600px){.css-1crgp49{padding:20px;}}#NYT_BELOW_MAIN_CONTENT_REGION .css-1crgp49{border-top:1px solid #121212;border-bottom:none;border-left:none;border-right:none;padding:20px 0 0;}.css-1crgp49 strong{font-weight:700;}.css-1crgp49 em{font-style:italic;}.css-1crgp49 a{color:#326891;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ccd9e3;}.css-1crgp49 a:visited{color:#333;-webkit-text-decoration:none;text-decoration:none;border-bottom:1px solid #ddd;}.css-1crgp49 a:hover{border-bottom:none;}The Second StimulusAnswers to Your Questions About the Stimulus BillUpdated Dec 30, 2020The economic relief package will issue payments of $600 and distribute a federal unemployment benefit of $300 for at least 10 weeks. Find more about the measure and what’s in it for you. For details on how to get assistance, check out our Hub for Help.Will I receive another stimulus payment? Individual adults with adjusted gross income on their 2019 tax returns of up to $75,000 a year will receive a $600 payment, and a couple (or someone whose spouse died in 2020) earning up to $150,000 a year will get twice that amount. There is also a $600 payment for each child for families who meet those income requirements. People who file taxes using the head of household status and make up to $112,500 also get $600, plus the additional amount for children. People with incomes just above these levels will receive a partial payment that declines by $5 for every $100 in income.When might my payment arrive? The Treasury Department said on Dec. 29 that it had started making direct deposit payments, and would begin to mail checks the next day. But it will be a while before all eligible people receive their money.Does the agreement affect unemployment insurance? Lawmakers agreed to extend the amount of time that people can collect unemployment benefits and restart an extra federal benefit that is provided on top of the usual state benefit. But instead of $600 a week, it would be $300. That will last through March 14.I am behind on my rent or expect to be soon. Will I receive any relief? The agreement will provide $25 billion to be distributed through state and local governments to help renters who have fallen behind. To receive assistance, households will have to meet several conditions: Household income (for 2020) cannot exceed more than 80 percent of the area median income; at least one household member must be at risk of homelessness or housing instability; and individuals must qualify for unemployment benefits or have experienced financial hardship — directly or indirectly — because of the pandemic. The agreement said assistance will be prioritized for families with lower incomes and that have been unemployed for three months or more.Of course, some of the money flowing into the economy could soon reach those who need it most. And it will provide a financial cushion even for middle-class families who are secure by most measures but remain on edge from the turbulence of 2020.
  • “In no way am I rich,” she said. “But I feel like my $600 would make a bigger impact on someone who has been dealing with struggles far worse than I have during this pandemic.”
Javier E

Diversity and the Political Right - NYTimes.com - 0 views

  • “He does caution against referring to it as I.Q.-based selection, saying that using the term ‘skill-based’ would ‘blunt the negative reaction.’ ” Skill-based. Clever. Or Machiavellian. In reality, it’s just another conservative euphemism meant to cast class aspersions and raise racial ire without ever forthrightly addressing the issues of class and race. This form of Roundabout Republicanism has entirely replaced honest conservative discussion, to the point that anyone who now raises class-based inequality is labeled divisive and anyone who raises race is labeled a racist.
  • The right is constantly invoking class and race as cudgels in our political discussions; they just hide the hand that swings the club.
  • The rebranding of the Republican Party is to a large degree the renaming of intolerance.
Javier E

The Spiritual Crisis of the Modern Economy - The Atlantic - 0 views

  • This go-it-alone mentality works against the ways that, historically, workers have improved their lot. It encourages workers to see unions and government as flawed institutions that coddle the undeserving, rather than as useful, if imperfect, means of raising the relative prospects of all workers.
  • It also makes it more likely that white workers will direct their frustration toward racial and ethnic minorities, economic scapegoats who are dismissed as freeloaders unworthy of help—in a recent survey, 64 percent of Trump voters (not all of whom, of course, are part of the white working class) agreed that “average Americans” had gotten less they they deserved, but this figure dropped to 12 percent when that phrase was replaced with “blacks.” (Among Clinton voters, the figure stayed steady at 57 percent for both phrases.
  • This is one reason that enacting good policies is, while important, not enough to address economic inequality. What’s needed as well is a broader revision of a culture that makes those who struggle feel like losers.
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  • One explanation for why so many come to that conclusion in the first place has to do with the widening of the gulf between America’s coasts and the region in between them
  • Cities that can entice well-educated professionals are booming, even as “flyover” communities have largely seen good-paying factory work automated or shipped overseas, replaced to a large extent with insecure jobs: Walmart greeters, independent-contractor truck drivers, and the like.
  • a college degree has become the true mark of individual success in America—the sort of white-picket-fence fantasy that drives people well into their elder years to head back to school
  • the white working class that emerged in the 19th century—stitched together from long-combative European ethnic groups—strived to set themselves apart from African Americans, Chinese, and other vilified “indispensable enemies,” and build, by contrast (at least in their view), a sense of workingman pride.
  • this last election was a reminder that white male resentment of “nasty” women and “uppity” racial and other minorities remains strong.
  • That said, many Americans with more stable, better-paid jobs have blind spots of their own. For all of their professed open-mindedness in other areas, millions of the well-educated and well-off who live in or near big cities tend to endorse the notion, explicitly or implicitly, that education determines a person’s value
  • white voters from hard-hit rural areas and hollowed-out industrial towns have turned away from a Democratic Party that has offered them little in the way of hope and inspiration and much in the way of disdain and blame.
  • Well into the 21st century, two-thirds of Americans age 25 and over do not have a bachelor’s degree. The labor market has become more polarized, as highly paid jobs for workers with middling levels of education and skill dwindle away.
  • As much as both liberals and conservatives have touted education as a means of attaining social mobility, economic trends suggest that this strategy has limits, especially in its ability to do anything about the country’s rapidly growing inequalities
  • such a fervent belief in the transformative power of education also implies that a lack of it amounts to personal failure—being a “stupid” person
  • even some workers I spoke to—all former union members—said they felt that people without a good education did not deserve to make a good living.
  • The rules of meritocracy that these blue-collar workers say they admire barely apply to the very top levels of the economy. Groups of elite workers—professionals, managers, financial workers, tenured professors—continue to wall themselves off from competition. They still organize collectively, through lobbying, credentialing, licensing, and other strategies. But fewer ordinary workers have the same ability to do so
  • What has emerged in the new economy, then, is a stunted meritocracy: meritocracy for you, but not for me
  • From gripes about the backwardness and boredom of small-town America to jokes about “rednecks” and “white trash” that are still acceptable to say in polite company, it’s no wonder that the white working class believes that others look down on them. That’s not to say their situation is worse than that of the black and Latino working classes—it’s to say that where exactly they fit in the hierarchy of oppression is a question that leads nowhere, given how much all these groups have struggled in recent decades.
  • However exaggerated by stereotypes, the urbane, urban values of the well-educated professional class, with its postmodern cultural relativism and its rejection of old dogmas, are not attractive alternatives to what the working class has long relied on as a source of solace.
  • In the absence of other sources of meaning, Americans are left with meritocracy, a game of status and success, along with the often ruthless competition it engenders. And the consequence of a perspective of self-reliance—Americans, compared to people in other countries, hold a particularly strong belief that people succeed through their own hard work—is a sense that those who fail are somehow inferior
  • The concept of grace comes from the Christian teaching that everyone, not just the deserving, is saved by God’s grace. Grace in the broader sense that I (an agnostic) am using, however, can be both secular and religious. In the simplest terms, it is about refusing to divide the world into camps of deserving and undeserving, as those on both the right and left are wont to do
  • It rejects an obsession with excusing nothing, with measuring and judging the worth of people based on everything from a spotty résumé to an offensive comment.
  • Unlike an egalitarian viewpoint focused on measuring and leveling inequalities, grace rejects categories of right and wrong, just and unjust, and offers neither retribution nor restitution, but forgiveness.
  • With a perspective of grace, it becomes clearer that America, the wealthiest of nations, possesses enough prosperity to provide adequately for all. It becomes easier to part with one’s hard-won treasure in order to pull others up, even if those being helped seem “undeserving”—a label that today serves as a justification for opposing the sharing of wealth on the grounds that it is a greedy plea from the resentful, idle, and envious.
  • ignorance shouldn’t be considered an irremediable sin. Yet many of the liberal, affluent, and college-educated too often reduce the beliefs of a significant segment of the population to a mash of evil and delusion
  • One of the few things he could really depend on was his church. He volunteered on their Sunday-school bus, leading the kids in singing songs. “It helps to be around young people,” he said. For many of the jobless workers I interviewed, religion and tradition provided a sense of community and a feeling that their lives had purpose.
  • While there are no simple explanations for the desperation and anger visible in many predominantly white working-class communities, perhaps the most astute and original diagnosis came from the rabbi and activist Michael Lerner, who, in assessing Donald Trump’s victory, looked from a broader vantage point than most. Underneath the populist ire, he wrote, was a suffering “rooted in the hidden injuries of class and in the spiritual crisis that the global competitive marketplace generates.”
  • That cuts right to it. The modern economy privileges the well-educated and highly-skilled, while giving them an excuse to denigrate the people at the bottom (both white and nonwhite) as lazy, untalented, uneducated, and unsophisticated.
  • many well-off Americans from across the political spectrum scorn the white working class in particular for holding onto religious superstitions and politically incorrect views, and pity them for working lousy jobs at dollar stores and fast-food restaurants that the better-off rarely set foot in
  • This system of categorizing Americans—the logical extension of life in what can be called an extreme meritocracy—can be pernicious: The culture holds up those who succeed as examples, however anecdotal, that everyone can make it in America. Meanwhile, those who fail attract disdain and indifference from the better-off, their low status all the more painful because it is regarded as deserved.
  • the shame of low status afflicts not just the unemployed, but also the underemployed. Their days are no longer filled with the dignified, if exhausting, work of making real things.
  • For less educated workers (of all races) who have struggled for months or years to get another job, failure is a source of deep shame and a reason for self-blame. Without the right markers of merit—a diploma, marketable skills, a good job—they are “scrubs” who don’t deserve romantic partners, “takers” living parasitically off the government, “losers” who won’t amount to anything
  • Even those who consider themselves lucky to have jobs can feel a sense of despair, seeing how poorly they stand relative to others, or how much their communities have unraveled, or how dim their children’s future seems to be: Research shows that people judge how well they’re doing through constant comparisons, and by these personal metrics they are hurting, whatever the national unemployment rate may be.
Javier E

Trump has taught me to fear my fellow Americans - The Washington Post - 0 views

  • What word comes to mind when you see the name Donald Trump? For some people, it might be “anger,” since he provokes it and stokes it. For others, it might be “ignorance,” since he knows so little and, like many unburdened by knowledge, is untroubled by facts. Some might say “fear,” since it would take some scary police tactics to push 11 million people over the border to Mexico. For me, none of those words suffices. I would say “betrayal.”
  • Do the people who support Trump realize that they are betraying not merely Muslims but the principles that the United States stands for? We don’t apply religious tests to anything
  • Donald Trump has taught me to fear my fellow American. I don’t mean the occasional yahoo who turns a Trump rally into a hate fest. I mean the ones who do nothing. Who are silent. Who look the other way.
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  • When I see these Trump supporters on television — the commentators, the Politician’s Puttanesca (a dish to poison the body politic) — I have to wonder where they would draw the line. The answer seems to be: nowhere. They want to win. They want to beat Hillary Clinton, a calling so imperative that sheer morality must give way
  • Maybe the talking heads on TV would draw the line at some mild version of fascism, but would the American people do the same? Here, I must hesitate. The easy yes of yesteryear has given way to awful doubt. Trump could win. He could become president, commander in chief, ruler of the Justice Department and head of the IRS. In other words, the American people could elect someone who has not the slightest appreciation for the Constitution or American tradition
  • History nags. It admonishes. “American exceptionalism” is a phrase that refers to the past, not necessarily the future. Nothing is guaranteed. I’d like to think that Americans really are exceptional, that we have an exceptional faith in democracy and the rule of law. I now have some doubt. I always knew who Trump was. It’s the American people who have come as a surprise.
proudsa

Donald Trump Secures Delegates Needed To Clinch GOP Presidential Nomination - 0 views

  • AP reported, pushing the billionaire businessman over the 1,237-delegate threshold he needed to avoid a contested convention ahead of the Nov. 8 election.
  • former reality TV star
  • Trump would face either former U.S. Secretary of State Hillary Clinton or U.S. Senator Bernie Sanders of Vermont, who are vying for the Democratic nomination
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