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Archive for Friday, September 7, 2012

Middle class

September 7, 2012

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To the editor:

The recent article about the hurting middle class was no surprise. What hurts most is the lack of jobs. If the construction workers were back to work it would help immensely. The problem is we need a strong middle class to generate more house building, remodeling, car buying etc. Demand is what drives job creation and demand is produced by a healthy middle class.

Ten years of tax cuts for the rich have gathered too much money at the top. George Bush slashed the capital gains tax to its lowest level in 40 years, giving the wealthy, who live only off their investments, a 25 percent tax cut. The top end of the income tax bracket got a 4.6 percent tax break. The middle class received a 2 percent tax cut. Republicans in Congress will have no part of leveling the playing field. They accuse us of class warfare. They’ve now had those tax rates in effect for 10 years, and even in the six years before the Bush recession the unemployment rate rose.

Now the Republicans are pandering for more huge tax cuts for the rich saying, “It will generate jobs.” It didn’t work for Bush, and it won’t work now. Give back that 2.6 percent income disparity we lost and make the millionaires pay their fair share on their investment income. They did under Clinton and we had the lowest unemployment in the last 40 years as well as a healthy middle class.

Comments

tbaker 1 year, 7 months ago

•5.1% - The current unemployment rate for government workers, which is the lowest unemployment rate for any of 17 different categories and subcategories of industries for which employment is tracked and published on a month-to-month basis by the Department of Labor. •8.1% - The current national unemployment rate, which dropped .2% because 368,000 Americans dropped out of the labor force in August. Do you understand what you just heard? These people –368,000 of your neighbors and friends – just said the hell with it and gave up. •8.4% - What the unemployment rate would be if the labor force participation rate had stayed the same as just last month – if those people had stayed in the job market and kept looking for work. •11.2% - What the unemployment rate would be if we had the same number of people either working or looking for work now as we did when Obama took office. •14.7% - The U-6 unemployment rate, which includes all of those who are unemployed and under-employed (part-time workers who want full-time work). •39 - The average number of weeks that workers find themselves out of the jobs market (the long-term unemployed). •43 - The number of consecutive months with joblessness above 8%. •63.5% - The current labor participation rate, which is the lowest share of Americans over age 16 in the workforce since September 1981. •2025 - If we continue to create jobs at a rate of just 96,000 per month, it will take until 2025 just to return to pre-recession unemployment levels. •41,000 – The number of jobs created for the prior two months were revised lower by 41,000 jobs. •96,000 - The total number of nonfarm jobs created in August. •119,000 - There were 119,000 fewer Americans employed in August than there were in July. •173,000 – The increase in the number of food stamp recipients for the last month for which we have data (June). Compare that to the number of jobs being created … •250,000 - The number of jobs per month needed to have significant job creation impact and bring down the unemployment rate. •368,000 - The number of Americans who dropped out of the labor force in August. •5 million – The number of jobs still needed to get back to the point where we were in the end of 2007. •20 million - The number of unemployed, underemployed and discouraged workers who’ve left the labor force altogether. •31 million – That’s the population growth since 2000, yet fewer Americans are working today than in April 2000.

This is a record of failure, but no one should be surprised by it. After all, Mr. Obama has made it clear throughout his life that he believes capitalism and free enterprise are evil and must be destroyed. Read his books.

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NoSpin 1 year, 7 months ago

A family of 4 that makes $50,000 a year with a simple tax form is 50,000-(4x3800)-11,900= $22,900 taxable income(this is most it could be as this only takes into account the exemptions and standard deduction). So, the first $17,400 is taxed at 10% now which is $1740. The next $5500(22900-17400) is taxed at 15% which is $825 for a total of 1740+825 which is $2565. But wait, subtract $2000 for your child tax credit and we get $2565-2000 for a grand total of $565 of total tax. I am sure they get many other tax deductions and credits that I have not included here. Before Bush, their tax would have been 15% of 22,900 or 3435 minus 1000 for child tax credit for a total of 2435. So they save 2435-565=$1870 under Bush's plan. 2% my you-know-what. They have a reduction of 1870/2435 or 76% reduction. FACT CHECK THIS!!!!

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NoSpin 1 year, 7 months ago

Your math is either erroneous or a lie. Everyone enjoys the lowest tax bracket that lowered the tax rate from 15 to 10 %. I will do the math for you. If your taxable(not gross or net income) income for your family is $17,000 then it went from $2550 to $1700. You got an $850 reduction which is 850/2550 or a 33% reduction in tax there. Let's throw in a couple of kids and your save another $1000(went from 500 to 1000 under Bush). That money means a lot more to the middle class than $5000 to a rich guy who probably paid $100,000 in taxes. I say roll back ALL the tax cuts and then we will see the actual impact. 2% ha! This is why our country is headed down the toilet. BTW, we had the highest tax revenues in history under Bush and it did not come from the 50% of Americans who do not pay taxes!!!!!!!!!

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Liberty275 1 year, 7 months ago

Give residents a 100% tax abatement for all construction on their primary residence and we won't be able to find enough carpenters.

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Richard Heckler 1 year, 7 months ago

How does anyone blame hard working upper middle class and middle class Republican/Democrat workers for the following job losses among other things?

This ENTITLEMENT - Bailing out The Reagan/Bush Savings and Loan Heist aka home loan scandal sent the economy out the window costing taxpayers many many $$ trillions (Cost taxpayers $1.4 trillion), Plus millions of jobs, loss of retirement plans and loss of medical insurance. http://rationalrevolution0.tripod.com/war/bush_family_and_the_s.htm

This ENTITLEMENT Bailing out the Bush/Cheney Home Loan Wall Street Bank Fraud cost consumers $ trillions, millions of jobs, loss of retirement plans and loss of medical insurance. Exactly like the Reagan/Bush home loan scam. Déjà vu can we say. Yep seems to be a pattern. http://www.dollarsandsense.org/archives/2009/0709macewan.html

This ENTITLEMENT - Bush/Cheney implied many financial institutions were at risk instead of only 3? One of the biggest lies perpetrated to American citizens. Where did this money go? Why were some banks forced to take bail out money? http://www.democracynow.org/2009/9/10/good_billions_after_bad_one_year

RECKLESS Tax cuts = THE ENTITLEMENT program for the wealthy which do nothing to make an economy strong or produce jobs. Tax cuts are a tax increase to others in order to make up the loss in revenue = duped again. Bush Tax Cuts aka THE ENTITLEMENT program for the wealthy at the expense of the middle class = duped one more time. http://www.dollarsandsense.org/archives/2001/0301miller.html

In the end big debt and super duper bailouts HAVE BEEN the results which does not seem to bother Republicans, as long as they are in power.

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JHOK32 1 year, 7 months ago

The insatiable greed of Wall Street bankers & stockbrokers, backed by their buddy G.W.Bush who looked the other way, is exactly what caused this Great Recession. After Bush captured his second term in 2004 the banking industry tripled the amount of bad mortgages issued at subprime rates (Wikipedia sub-prime mortgage crisis) to anyone who could still breathe no matter how secure their incomes were, how much savings they had, or how much they could put down on a house. Indeed many banks lended 20% more than a property was even worth! The numerous banks that went belly up would actually advertize on the radio & TV that they would finance houses at 120% of what they were worth, no matter what your credit score was! As all this was happening while the Bush Republican de-regulators let the foxes guard their own hen houses. Then for "punishment" of bringing our entire economy to the brink of disaster Bush hands over $700 Billion dollars of OUR money to the millionaire bankers & stockbrokers who already screwed this country! Hey, it was Bush's second term, he had nothing to lose, but the bankers had everything to gain & they ripped off the American people & let the middle class take all the hits of losing their jobs & their homes & their savings & their health insurance, retirement funds, etc, etc. They should have jailed them all for the rest of their lives.

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Abdu Omar 1 year, 7 months ago

You know when you look at it all, it is only fair that the percentage of taxation be equal all the way around. I suggest that those who make less than $35,000 pay no taxes and those who make $35,001 or more pay 10% of the amount over $35,000. No deductions except for dependents. Let some tax attorney figure the rest out, but we must be fair to everyone.

Romney will destroy the remainder of the country that is solvent as Bush would have given more time. Obama has been doing all he can given the republican refusal to work with the dems. So something must give. We need to work together to make this country work or we will be another Rome or Greece.

All the incumbents who stand in the way of progress and for the stagnation of our political system must go, regardless of their party. It is time to clean house in the Congress. Let's get representatives who want to work and make the country the best it can be.

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voevoda 1 year, 7 months ago

"There is no question of relieving others at the cost of hardship to yourselves; it is a question of equality. At the moment of your surplus meets their need, but one day your need may be met from their surplus. The aim is equality" (2 Corinthians 8:13-14).

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budwhysir 1 year, 7 months ago

yeah you 10% people have it all figured out. its my life goal to acheive another 9%....then I will be set....

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budwhysir 1 year, 7 months ago

We live in a 1% world, I only believe 1% of everything I read, 1% of my knowledge comes from learning and 1% of my savings comes from money....

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Windemere 1 year, 7 months ago

People lament the fact that "we don't make anything anymore." Not sure if/when those manufacturing jobs will rebound. Hard to see why they would as labor/cost of doing business is much more expensive here than it is elsewhere in the world. Combine that with a poor education system and people on the lower socio-economic rung are in for a tough generation or two at least.

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Trumbull 1 year, 7 months ago

Saw an interesting documentary to describe the situation in many places......longstanding mfg company in small town, producer of towels (Made in USA), closes doors. Large percentage of town immediately becomes unemployed. Ironically, and at a later date, they find themselves buying towels in Wal Mart that were made in another country. Wal Mart also happened to be the largest employer in town after the plant closure.

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Trumbull 1 year, 7 months ago

We are now a world marketplace. Since our standing of living is higher than most places, we will gradually par down to the world average. Seems like Government, Business, and consumers are participants though not necessarily willing. Some are unaware of the consequences of the past 30 years. It made the bottom line of many income statements for a while, consumers like the low prices, and congress is very unlikely to restrict trade.

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gbulldog 1 year, 7 months ago

Most of us have limited resources and use credit cards. Why during the first two years of the Obama Administration, did he not do something about it. Since then we see more "pay day" companies. If interest rates on credit card were lowered, consumers would spend more, more jobs would be created, more taxes (sales). Also imposed an added sales taxes on non US made products to increase US production. Instead the Democrats want to raise taxes on investments. Many of these people worked, and during their working life, managed to save some money. This is especially dishartning for my mother who is 90+. She worked hard for years in Kansas low paid jobs (teaching, nursing aid), raised several kids with no unions support. Then she is told that she needd to pay more taxes because she does not work. I am pround of my mother and her never giving up through difficult time. She instilled in me a hope. I guess your mother taught you to get what you need no matter who it hurts. In all the years of promises, we have not see the cake yet and will not unless we become "politically correct".

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Armstrong 1 year, 7 months ago

Has anyone noticed Barry's strategy is not working ??? Nice smoke screen for a complete lack luster 4 years.

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beatrice 1 year, 7 months ago

Why is income derived from dividends taxed at a lower rate than income derived from work?

It is not a just system we have and it penalizes people for hard work.

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Windemere 1 year, 7 months ago

One point neither side wants to talk about is that cheap labor outside the US is and will continue to have a long term negative impact on jobs for the middle class and lower middle class. The left lambasts corporations for "shipping jobs overseas" but let's face it, this is done to drive costs down to meet demand for cheaper goods. Goods that lower income people want to be as cheap as possible (think Walmart & its shoppers). The whole world has changed, it's getting smaller all the time and there is no end to people wanting low prices. The elephant in the room is that the nostalgic era e.g. The 1950s, with good wages for lots of traditional middle and lower middle class jobs are not coming back. And there's no one political faction to blame.

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Alceste 1 year, 7 months ago

When you don't have an argument against fair taxation, you come up with a slogan: Class Warfare.

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donttreadonme 1 year, 7 months ago

But there is a strong demand for American made bicycles, and numerous builders to meet that demand.

However, like Wal-mart shoppers, many people buy based on price alone.

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consumer1 1 year, 7 months ago

The above post made me wonder about the masses of bicycles flooding the local streets. So, I did some checking. Below is what I found. In the 1980s, Taiwanese bicycle makers made most of the mountain bikes that flooded the US and Europe, but by the end of the 1990s production had shifted to factories with lower overheads, factories in China, Malaysia, and Vietnam. Taiwanese bicycle makers could have capitulated, as British bicycle makers did back in the 1960s, but instead, many of the long-standing Taiwanese bike makers moved upmarket.

Taiwanese companies are projected to control 60% of the world’s market for ‘expensive’ bicycles by 2012, a 40% expansion within a five-year period, crows Taiwan’s Ministry of Economic Affairs

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OonlyBonly 1 year, 7 months ago

Oh here we are lamenting the "lack of jobs." You have to be kidding me! What makes of automobiles, TVs, stereos, appliances, etc. have you been buying for the last 50 years? You all were told this fascination and need to have an "import" everything was going to cost American jobs (from the 70s) but, of course, you never in a Million years would think it would affect yours. Where's the middle class? It's not lost due to lower taxes, nor special privileges for the Rich (they don't have tax privileges - just get yourself a great Tax Attorney), you all moved it to Japan, China, Pakistan, India and Germany. Enjoy them imports now.........

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just_another_bozo_on_this_bus 1 year, 7 months ago

With all the talk about "entrepreneurship" and "job creators" from Republicans, what's lost is the fact that it's the middle class that is responsible for doing/being most of both, and yet they continue with their war on the middle class.

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Lawrenceks 1 year, 7 months ago

"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."

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Liberty_One 1 year, 7 months ago

"Demand is what drives job creation"

This is a myth. Demand will always tend to equal supply because prices will rise or fall to market clearing levels.

What actually drives job creation is savings, investment and entrepreneurship. The government attacks all three by devaluing savings through inflation, taxing successful investments and placing burdensome restrictions on entrepreneurs. You want more jobs? Try capitalism for a change.

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Richard Heckler 1 year, 7 months ago

Republicans are wanting to do away with the mortgage interest tax deduction in Topeka and the beltway.

My as well keep this information in mind.

This http://www.democracynow.org/2008/1/18/free_lunch_how_the_wealthiest_americans

And this http://www.pbs.org/moyers/journal/01182008/transcript.html

Simply put the nation cannot afford this new republican party powered by Reaganomics and home loan frauds that the Reagan and GW Bush administrations allowed to take place.

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