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Mon Feb 23, 2015, 10:02 AM

Even Better Than a Tax Cut

The Opinion Pages | Op-Ed Contributor
Even Better Than a Tax Cut

By LAWRENCE MISHELFEB. 23, 2015

WASHINGTON — WITH the early stages of the 2016 presidential campaign underway and millions of Americans still hurting financially, both parties are looking for ways to address wage stagnation. That’s the good news. The bad news is that both parties are offering tax cuts as a solution. What has hurt workers’ paychecks is not what the government takes out, but what their employers no longer put in — a dynamic that tax cuts cannot eliminate.

Wage stagnation is a decades-long phenomenon. Between 1979 and 2014, while the gross domestic product grew 150 percent and productivity grew 75 percent, the inflation-adjusted hourly wage of the median worker rose just 5.6 percent — less than 0.2 percent a year. And since 2002, the bottom 80 percent of wage earners, including both male and female college graduates, have actually seen their wages stagnate or fall.

At the same time, taxation does not explain why middle-income families are having a harder time making ends meet, even as they increase their education and become ever more productive. According to the latest Congressional Budget Office data, the middle 60 percent of families paid just 3.2 percent of their income in federal income taxes in 2011, less than half what they paid in 1979.

Yes, a one-time reduction in taxes through, say, expanded child care credits or a secondary earner tax break, as Democrats propose, could help families. But as wages continue to stagnate, it is impossible to continuously cut taxes and still pay for things like education and social programs for the growing population of older Americans ...

More here: http://www.nytimes.com/2015/02/23/opinion/even-better-than-a-tax-cut.html?hp&action=click&pgtype=Homepage&module=c-column-top-span-region®ion=c-column-top-span-region&WT.nav=c-column-top-span-region&_r=0

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TBF Feb 2015 OP
Omaha Steve Mar 2015 #1
TBF Mar 2015 #2

Response to TBF (Original post)

Wed Mar 4, 2015, 04:12 PM

1. Was checking before posting


I'm running a little behind.

K&R!

OS

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Response to Omaha Steve (Reply #1)

Wed Mar 4, 2015, 04:34 PM

2. Yeah occasionally I find one :)

Did you hear about Wisconsin's pipeline? I'll do one on that if it isn't already here somewhere.

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