Romney-Ryan's Real Poverty Plan: Soak the Poor

[babylonsister]

http://www.motherjones.com/kevin-drum/2012/10/mitt-romneys-real-poverty-plan


Romney-Ryan's Real Poverty Plan: Soak the Poor

—By Kevin Drum
| Fri Oct. 26, 2012 3:03 AM PDT

186

So what would Mitt Romney and Paul Ryan do for the poor and the working class if they were elected? Let's recap:

They would allow the payroll tax holiday to expire. This would immediately raise taxes on everyone, and would hit the working poor especially hard.

They would repeal Obamacare, which would immediately kick about 17 million low-income earners and their family members off of Medicaid.

In addition, they want to block grant Medicaid and cap its growth. In some states, this wouldn't have a big immediate impact. In other states, conservative governors and legislatures would use their newfound authority to limit enrollments and cut benefits substantially. Over time, all states would have to cut enrollments dramatically, probably by another 15-20 million within a decade.

If they pursue the cuts outlined in Paul Ryan's budget plan, they would cut funding for SNAP (food stamps) by more than $100 billion over the next decade. The Center on Budget and Policy Priorities estimates that this would reduce enrollment in the program by at least 8 million people.

They would cut funding for Planned Parenthood and other reproductive health organizations. This would especially hurt poor women, since they don't have the resources to pay for services at full-cost clinics.

They would cut the college tax credit, the child tax credit, and the earned-income tax credit. All of these are programs designed to help the working poor.

This is a short post. Sometimes it's better to lay out the facts simply and starkly, because Romney's priorities really are pretty stark: He wants to cut taxes on the rich and cut spending on the poor. That's Romney's real poverty plan.

[KansDem]

1. It's called "Flood Up" economics

Just like "Trickle Down" but in reverse.

And this time it will work...

[n2doc]

2. Payroll tax holiday is going to be gone either way

Not much support from dems either. The rest is legit.

[hfojvt]

3. Drum is a little off on some of his complaints

The accursed payroll tax cut?

When I read crap like that I just want to bang on the Drum all day.

If I have said it once, I have probably said it 100 times. It helps the rich more than it helps the poor. http://journals.democraticunderground.com/hfojvt/160

The accursed payroll tax cut is skewed towards the top. It's total cost is about $110 billion. Of that amount $29 billion goes to the richest 10%. How much goes to the poorest 20%? $4.2 billion. So THIS is about helping the working poor?

$29 billion to the top 10%
$4.2 billion to the bottom 20%

That's why I always call it the ACCURSED payroll tax cut.

The college tax credit? The child tax credit?

Both of those are also very beneficial to upper income couples.

Some of the poorest people in this country - are single and childless. Live alone with one income and you pay more for everything. Take my water/sewer/garbage bill (please). Grabbing a random bill for February, I used 1 unit of water (1 unit being 100 cubic feet, about 748 gallons). I got billed for two units $12.02 because that is the minimum bill. Suppose I added a spouse and child to my household and quadrupled my water usage. How much would I pay for 4 units? Just $19.02. $5 a month less than two single households would pay for the same amount of water.

With the sewer bill, I again pay the minimum $7.27 a month. I am not sure how much I could increase usage and still pay the same, but probably double usage would not double my sewer bill either. The garbage bill is $15.40 a month. Put two more people in my household and I would still pay $15.40. Couples and families pay $15.40. Two single people pay $30.80.

Now look at taxes. Thanks to the child tax credit, a couple with two children making $50,000 pays almost no federal income tax. A single person making minimum wage? Say $15,000 a year? They pay $565 in Federal income taxes. The child tax credit is thousands of dollars going to higher income couples.

Many low income couples also get ZERO benefit from the college tuition credit - unless it is refundable. Because they are already paying zero in taxes if their income is below $45,000 or so. (which would be about 40% of all US households or more). The college tuition credit only benefits households with HIGHER income than $45,000.

Drum is a pretty cool guy. At least the ever irascible Somerby generally speaks well of him, but Drum probably makes too much money to know all that much about the working poor.