Coal

Economic Stimulus Act of 2008

hmoroz — Thu, 07 Feb 2008 17:35:58 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Number of senior citizens who would receive tax rebates under this bill but not the House stimulus bill, according to the Senate Majority Leader: 21.5 million

Approximate number of workers nationwide projected to run out of unemployment benefits before finding work in the first six months of 2008 unless benefits are extended: 1.3 million

Amount of stimulus produced for every $1 spent on extending emergency federal unemployment insurance benefits: $1.64

Amount of stimulus produced for every $1 in tax cuts targeted to low-income households: $1.19

Amount of stimulus produced for every $1 in tax cuts provided through a business investment write off policy: $0.24

Number of different stimulus policies implemented under President Bush that were more effective per public dollar than business investment incentives, according to an Economy.com study: 7

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. There is increasing evidence that the economy faces a high risk of recession which could throw millions of middle-class Americans out of work, reduce income and health insurance coverage, and increase poverty. A smart economic stimulus plan could prevent the downturn or soften its effects, but not just any stimulus package will do. To be effective, an economic stimulus package must direct money to those who will spend it quickly, boosting consumer demand and prompting increased production and economic growth. This Senate bill provides even more effective stimulus than the House legislation because the tax rebates are even more closely targeted to cash-strapped middle-class and aspiring middle-class Americans, who are more likely than wealthier people to spend the money they receive immediately, rather than saving it. The inclusion of seniors living on Social Security and veterans living on disability benefits is important for the same reason: not only is it an issue of basic fairness to include these groups but, because they are likely to spend the money quickly, their inclusion compounds the stimulative impact.

The extension of unemployment benefits and the expansion of funding for low-income heating assistance are extremely positive additions to the bill. Unemployment benefits provide direct assistance to the current and aspiring middle-class Americans likely to be hardest hit by an economic downturn while also providing the most cost-effective boost to the economy. Unemployment is already on the rise and it takes longer to find work during an economic downturn when jobs are scarce. People who are out of work tend to spend nearly all of the money they receive in government benefits very quickly, so unemployment benefits provide the quick jolt to consumer spending that the economy needs. What’s more, extending unemployment benefits is one of the most effective stimulus measures yet conceived, providing $1.64 in stimulus for every dollar spent. Meanwhile home heating assistance eases the burden on current and aspiring middle-class families trying to pay high energy bills, freeing up cash that can be spent on other necessities.

The renewable energy tax incentives in the bill are not likely to be effective as short-term economic stimulus, but do represent an important investment in the nation’s energy future. Meanwhile, the business tax cuts, a product of negotiation between the Bush Administration and Congress, are less positive for the middle class because they provide little stimulative effect but deprive the public of significant revenue and increase deficits. Offering tax incentives for business investment frequently fails to generate substantial economic growth because many businesses use the tax cuts for investments they planned to undertake anyway, costing the public lost revenue but creating no additional economic activity. Another drawback is that it takes considerable time for businesses to make new investments and for investments to result in increased employment or purchasing. Yet to be most effective, economic stimulus should have a rapid impact on the economy. Finally, the Center on Budget and Policy Priorities points out that business incentives harm state budgets, since state and federal tax codes are linked. Many states are already facing a revenue crunch due to the economic downturn and, unlike the federal government, cannot run budget deficits. The result could be cuts in state and local services that middle-class Americans rely on, from education to road maintenance to public safety.

Quotes from Experts

Beyond this Bill

Additional Resources

“Senate Finance Committee Measure More Effective As Stimulus Than House Bill, Despite Some Problems,” from the Center for Budget and Policy Priorities

“Strategy for Economic Rebound: Smart Stimulus to Counteract the Economic Slowdown,” from the Economic Policy Institute

“Options for Responding to Short-Term Economic Weakness,” from the Congressional Budget Office

Lieberman-Warner Climate Security Act of 2008

atraub — Tue, 08 Jan 2008 11:13:40 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Estimated total costs from hurricane damage, real estate losses, energy-sector costs, and water costs associated with global warming, if present trends continue, in dollars: 1.9 trillion

Estimated losses in damaged or destroyed residential real estate as a result of rising sea levels, in dollars: 360 billion

Projected percentage growth of U.S. carbon emissions between 2006 and 2030: 16

Number of states that are projected to face water shortages in the next five years: 36

Number of U.S. mayors that signed an agreement to meet or beat Kyoto Protocol targets for emissions reductions, as of June 2005: 141

Number of U.S. mayors that signed an agreement to meet or beat Kyoto Protocol targets for emissions reductions, as of June 2008: 850

Date on which President Bush sent a letter to U.S. Senators voicing his opposition to the Kyoto Protocol: March 13, 2001

Overview/Summary

Middle Class Position Analysis

Middle Class Supports. Human-caused climate change brought about in large part by greenhouse gases increasingly threatens Americans’ standard of living. A report recently released by the U.S. Climate Change Science Program, supported by the findings of the U.N.’s Intergovernmental Panel on Climate Change, warned of more heat-related deaths, increased risk of Lyme disease and West Nile virus, more extreme weather, and disruptions in population growth at the local level due to climate change. An American economy built on greenhouse gas emitting fossil fuels is unsustainable. By setting meaningful, yet achievable, goals for emissions reduction, the Climate Security Act is an important step to reorient the American economy towards sustainable growth. Though change will likely bring increased energy prices, the legislation appropriately directs funds to programs that will mitigate the pain felt by consumers and individuals working in affected industries. In particular, the creation of the Climate Change Worker Training and Assistance Fund is a forward-looking measure that will help American workers adapt to jobs that not only support energy efficiency, but pay decent wages as well. Funds to encourage energy efficient technology and mass transit projects are a further demonstration of a commitment to a sustainable and efficient economy.

Quotes from Experts

Beyond this Bill

Additional Resources

Global Warming Basics from the Pew Center on Global Climate Change

Policy Solutions from the National Resources Defense Council

Climate Assessments from the U.S. Government’s Global Change Research Program

Energy Independence and Security Act of 2007

atraub — Thu, 06 Dec 2007 16:37:08 -0500

Legislation

The middle class

Supports

Video Summary

Injustice Facts

Amount this legislation would save U.S. consumers in 2020, according to the Union of Concerned Scientists: $22 billion

Barrels of oil per day that would be saved in 2020 due to this bill: 1.1 million

Metric tons of global warming pollution that would be prevented by 2020 due to this bill: 190 million

Number of states, including the District of Columbia, that have already adopted renewable electricity standards: 26

Corporate profits made by oil company Exxon Mobile in the first three quarters of 2007: $28.95 billion

Average cost of a gallon of gasoline the week this legislation passed the House: $3.11

Overview/Summary

Middle Class Position Analysis

The Middle Class Supports. This legislation represents a major step toward redirecting U.S. energy usage in a cleaner, more sustainable direction. The bill will save American consumers money at the fuel pump and on their heating bills, reduce air and water pollution, and mitigate the threat of global warming. Like its earlier incarnation, the CLEAN Energy Act of 2007 this bill recognizes that fossil fuels are not a sustainable option for the nation’s growing energy needs, and that a substantial public investment is needed to jump start the development and promotion of renewable energy sources and energy-efficient technologies. In the short term, this investment would create jobs producing renewable energy and technology. In the long term, new energy sources and more efficient technology promise environmental and public health benefits, as well as lower costs, for the American middle class. The bill also funds the investments in an appropriate way: by repealing taxpayer subsidies to the oil industry, which is already making booming profits at the expense of middle-class consumers.

This legislation also goes beyond what the original CLEAN Energy Act attempted, by establishing a Renewable Electricity Standard and stricter fuel economy standards for cars. These improvements marshal even more of the nation’s resources in support of conservation and a shift toward renewable energy, building on advances already adopted in many states to create a more sustainable energy future for the nation.

Quotes from Experts

Beyond this Bill

Additional Resources

Union of Concerned Scientists Energy Bill Resource Center

“Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?” from McKinsey and Company

Pew Center on Global Climate Change Policy Center

Energy Policy Act of 2005

atraub — Mon, 24 Sep 2007 14:09:21 -0400

Legislation

The middle class

Opposes

Video Summary

Injustice Facts

Total cost of tax breaks and subsidies in this bill: $85.1 billion
Earnings of oil giant ExxonMobil in the first quarter of 2005: $7.86 billion
Value of subsidies to oil and gas companies like ExxonMobil contained in this bill: $6 billion
Approximate proportion of Americans who considered high gas prices “a hardship” in April 2005, according to Gallup: 6 in 10
Retail cost of one gallon of gasoline on August 8, 2005, the day President Bush signed this bill: $2.60
Estimated amount middle-class households spent on gasoline in 2005, not including taxes: $1,778

Overview/Summary

Middle Class Position Analysis

The Middle Class Opposes. The most startling thing about this legislation is what it does not do. In the first place, the 1,700-page multi-billion dollar bill fails to help middle-class consumers squeezed by high gas and fuel costs. The rollback in public safety protections also puts middle-class families at risk, for example by exempting oil and gas companies from the provisions of the Safe Drinking Water Act when these companies inject carcinogenic chemicals into the ground. At the same time, the deregulation of public utilities exposes the middle class to a different kind of risk: stemming from increased consolidation of utilities that could raise electric rates and manipulate energy markets. What the bill does do is provide massive taxpayer subsidies – to the tune of $85.1 billion dollars – for some of the world’s most profitable corporations, so that, among other things, they can drill on public land while paying the public less, ultimately leaving middle-class families to pick up a bigger share of the cost of public services. Finally, although the legislation comes at a time of overwhelming scientific evidence about the dangers of global warming and increased concern about the nation’s dependence on foreign oil, it does very little to address either problem, neglecting to even increase fuel efficiency standards for cars.

Coal

Economic Stimulus Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Quotes from Experts

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Beyond this Bill

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Additional Resources

Lieberman-Warner Climate Security Act of 2008

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Energy Independence and Security Act of 2007

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Beyond this Bill

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Energy Policy Act of 2005

Legislation

The middle class

Video Summary

Injustice Facts

Overview/Summary

Middle Class Position Analysis

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Quotes from Experts

Related Blog: Text

Beyond this Bill

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Additional Resources