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January 19, 2023 [Heather Cox Richardson, Letters from an American]

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• The US has hit the debt ceiling, and the media is discussing whether Democrats will negotiate with hard-right Republicans who want cuts to domestic spending before raising the debt ceiling.
• Raising revenue to pay for appropriations has historically been the first option, but since 1981, Republicans have made cutting taxes the centerpiece of their economic policy.
• The 2017 Trump tax cuts, especially the cut in the corporate tax rate from 35% to 21%, dramatically increased the deficit without promoting growth.
• The Supreme Court released a statement about the investigation into the leak of the Dobbs v. Jackson Women’s Health Organization decision, but the source of the leak remains unknown.
• Judge Donald Middlebrooks of the United States District Court for the Southern District of Florida ordered Trump, his lawyer Alina Habba, and her law firm Habba Madaio & Associates to pay $937,989.39 for attorneys’ fees and costs after they filed a lawsuit the court found to be “completely frivolous” and a bad-faith use of the court system.
• Representative Adam Schiff (D-CA) introduced a constitutional amendment to the House to overturn the 2010 Citizens United v. Federal Election Commission Supreme Court decision.

Published January 20, 2023
Visit Letters from an American to read Heather Cox Richardson’s original post January 19, 2023

January 18, 2023 [Heather Cox Richardson, Letters from an American]

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• The Fair Tax Act, introduced by Representative Earl “Buddy” Carter (R-GA), would replace existing income, payroll, and estate/gift taxes with a flat national sales tax of 30%.
• The bill claims to “promote freedom, fairness, and economic opportunity” but would disproportionately affect those with less money to spend.
• The original Republican Party invented the U.S. income tax and created the precursor to the IRS to collect it, believing that taxes should be “proportionate to [a person’s] ability to pay.”
• The Fair Tax Act is a rejection of the original Republican Party’s principles and would dismantle the federal system that gives Americans “a sense of personal responsibility in the safety and stability of the nation.”
• The bill also provides an option for “qualified” families to get a rebate, but each member of the household must be registered annually with the state and certify that they are all legal residents of the U.S. and not incarcerated.

Published January 19, 2023
Visit Letters from an American to read Heather Cox Richardson’s original post January 18, 2023

Income inequality has been falling for a while now [Matthew Yglesias, Slow Boring]

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• Obama-Biden economics have achieved more than people realize, with inequality decreasing and median wages and household income reaching all-time highs by the end of Obama’s term.
• Biden’s policies have continued this trend, with inflation-adjusted median earnings in the third quarter of 2022 higher than in the third quarter of 2019 and the lowest-wage workers seeing particularly strong wage performance.
• The tax and transfer system in the US has become more egalitarian since the Reagan era, with the Obama administration raising taxes on the rich to expand the welfare state.
• To continue this trend, Biden should focus on enacting pro-growth, pro-equality regulatory changes on a bipartisan basis and avoiding new rounds of commodity shocks.

Published January 3, 2023. Visit Slow Boring to read Matthew Yglesias’s original post.

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