Rising poverty rates and economic disparity point to the critical needs for job creation and increasing fairness in our tax and revenue system.
Some of the findings highlighted by the Center include:
– Record numbers of people are poor and living without health insurance.
– Income inequality continues to rise.
– One-third of Americans are now living on low-incomes.
According to a new study from Denver University’s Center for Colorado’s Economic Future, Coloradans need to consider raising taxes and making more cuts to programs to fix the state budget.
The study, found that by 2024, the State will generate only enough income to pay for public schools, health care and prisons. That means that there will be no money for child-protection services, crime labs, state colleges and universities or other essential state services.
While the authors include cuts as part of the solution, they underscore how cuts alone can’t solve the budget crisis.
Some of the options to increase revenue, from the study, include:
– Re-instate a graduated income tax;
– Broadening the sales tax base;
– Restructure the state, local school funding partnership.
To read the summary of the report from the Center for Colorado’s Economic Future, click here.
A short-sighted, harmful debt-deal was signed into law. The economy continues to struggle with 14 million Americans out of work and Wall Street continues to shirk responsibility for the economic crisis.
But it’s not all bad news. Check out the latest issue brief on revenues from the Economic Policy Institute. In the brief, the authors argue that deficit reduction should rely on both spending cuts ad revenue increases. The authors outline 10 facts which support increasing revenues from the highest-income households, including:
* Raising taxes on the highest-income households reduces the deficit without having much impact on job growth or economic recovery.
* Reasonable proposals to raised taxes on the highest-income households can generate significant amounts of revenue.
* The top one percent of households benefited disproportionately from the Bush-era tax cuts.
To read the full brief, go to: www.epi.org .
See recent coverage by US News & World Report on how cutting local,state and federal government jobs hurts the economic recovery. According to the US News report, about 100,000 public employees have lost their jobs in the last year – 39,000 in June alone.
Some experts believe that local and state governments will cut as many as one million jobs in the next fiscal year. These cuts come at a time when “Economists say the economy needs to add 350,000 to 400,000 jobs each
month over the next three years to bring unemployment down to around 6
To read the complete story, click here.
A study from the Colorado Fiscal Policy Institute shows that not only does the state workforce perform essential services, but that it also helps to spur economic growth in Colorado.
Colorado’s classified state workforce create an estimated 21,000 private sector jobs and $3 billion in private-sector activity. For every state job (classified), another 0.6 jobs are created in the state economy.
To read the complete study, click here.
A new study from the Economic Policy Institute (EPI) finds that Michigan state employees are not over paid, despite claims to the contrary. In fact, the study found that state workers earn less than their private sector counterparts.
On an annual basis, full-time state and local employee government employees in Michigan are undercompensated by approximately 5.3% compared with similar private sector workers.
Read the complete report [here] at EPI’s website.
Check out the Center for American Progress’ (CAP) new report on how to create a responsible housing market with affordable housing. Read the exerpt below and [click here] to read the full report.
We have the knowledge and the tools to create an American housing finance system that will be stable over the ups and downs of the economy–a system that relies upon private capital to equitably serve homeowners, renters and landlords, lenders, investors, and the larger American economy while promoting residential integration, the elimination of housing discrimination, and the provision of safe, decent, and affordable housing in all urban, suburban, and rural communities.