Policy Papers
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December 2012 Unemployment Report
December 2012 Unemployment Rate: 7.8 percent Unemployed Americans: 12.2 million “Real” Unemployment The “real” unemployment or U-6 rate is 14.4 percent for December 2012. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 22.7 million. These are people who are unemployed (12.2... Continue Reading
December 18, 2012
Democrats’ Imbalance on Spending Cuts
Entitlements are unquestionably driving our long-term deficits. The latest monthly deficit numbers prior to the fiscal cliff confirm spending is the problem -- America is on its way to a fifth straight year of trillion dollar deficits. But Democrats have taken off the table even the spending cuts President Obama previously supported. These include modernizing our major entitlement programs: Medicare, Medicaid, and Social Security. Spending Continues to Increase Adjusted for timing shifts,... Continue Reading
December 18, 2012
Better Inflation Measure Would Reduce Deficit
The Bureau of Labor Statistics calculates two versions of the Consumer Price Index (CPI) to measure inflation. These measures work by assuming that a consumer purchases a certain “basket” of goods, and they track the total cost of this basket. The “CPI-U” is the headline measure and it includes all urban consumers. This measure is used to index the tax brackets for inflation. The “CPI-W” includes urban wage earners and clerical workers -- so it excludes the... Continue Reading
December 12, 2012
Sandy Request Fails Administration’s Own Test
Last Friday, the Obama Administration requested $60.4 billion in supplemental appropriations to respond to Hurricane Sandy. The Congressional Budget Office (CBO) analysis finds that 64 percent of the funds will not be spent until fiscal years 2015 – 2022 and after. The Administration’s plan would spend 15 percent of the funds in the current fiscal year, and 21 percent in fiscal year 2014. In his letter requesting the supplemental funds, OMB Deputy Director Jeffrey Zients said that... Continue Reading
December 7, 2012
November 2012 Unemployment Report
November 2012 Unemployment Rate: 7.7 percent Unemployed Americans: 12.0 million “Real” Unemployment The “real” unemployment or U-6 rate is 14.4 percent for November 2012. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 22.7 million. These are people who are unemployed (12.0... Continue Reading
December 4, 2012
Death Tax and AMT: Pain for Middle Class Families
In fiscal cliff negotiations, Democrats have insisted on tax rate increases. By taking this position, they are hurting other tax policies for which bipartisan compromises are readily available. These include the estate tax and the Alternative Minimum Tax (AMT) -- two policies that require action before the end of the year. Otherwise, many middle-class families will see more of their money go to Washington. Death Tax Will Hit Small Businesses and Family Farms Hard In just four weeks, the estate... Continue Reading
December 4, 2012
Congress Should Not Surrender Debt Limit
“The Congress shall have Power…To borrow Money on the credit of the United States.” -- U.S. Constitution, Article I, Section 8 Last week, Treasury Secretary Tim Geithner delivered President Obama’s wish list for fiscal cliff negotiations to Congress. Among other things, his proposal would make permanent the President’s ability to increase the debt limit on his own, with Congress having the ability to vote to disapprove the increase. This would essentially... Continue Reading
November 27, 2012
On the Fiscal Cliff, Entitlement Reform Is Key
In discussions on the fiscal cliff, Democrats have repeatedly talked about wanting to raise taxes. In contrast, they have said very little about strengthening entitlements. Democrats admit Congress must act on entitlements, but they have not proposed any meaningful reforms. Shoring up entitlements will have a far greater effect on the future stability of our economy and debt than tax increases. Discussions over how to deal with the pending fiscal cliff, and averting a fiscal crisis, will have to... Continue Reading
November 27, 2012
Debt Limit on Agenda Again
The Treasury Department recently announced that it expected the U.S. government to hit its debt limit of $16.394 trillion “near the end of 2012.” Treasury can take certain “extraordinary actions” to keep the debt limit from affecting U.S. government finances for a few weeks, but the President will need once again to ask Congress to raise the nation's debt ceiling in 2013. The 2011 Debt Limit Increase In 2011, Congress increased the debt limit by a total of $2.1 trillion... Continue Reading
November 14, 2012
Presidential Leadership Needed on Fiscal Cliff
Without presidential leadership, the nation will go over the “fiscal cliff” on January 1. This will raise taxes, implement the sequester, and almost certainly throw the U.S. economy back into recession. The fiscal cliff’s tax hikes include the expiration of the 2001 and 2003 tax cuts, the Alternative Minimum Tax hitting more middle class families, the expiring employee payroll (Social Security) tax cut, various business tax provisions, and various Obamacare tax increases. The... Continue Reading
November 2, 2012
October Unemployment Report
October 2012 Unemployment Rate: 7.9 percent Unemployed Americans: 12.3 million “Real” Unemployment The “real” unemployment or U-6 rate is 14.6 percent for October 2012. This is the total percentage of unemployed and underemployed workers. The “real” number of unemployed Americans is 23 million. These are people who are unemployed (12.3 million),... Continue Reading
November 1, 2012
Americans Deserve Leadership
“Never before have a President and a Senate majority party done so little when our challenges have been so great.” – Senate Republican Leader McConnell President Obama and Senate Democrats have failed to lead on the most vital issues of our time: jobs, the economy, the debt, energy, and national security. Americans are not better off than they were four years ago. The American people deserve real leadership. Jobs and... Continue Reading
October 26, 2012
The Obama Economy: Underperforming Again
Today we learned the U.S. economy has continued its weak and uncertain recovery under President Obama. Real GDP grew at an annualized rate of 2 percent in the third quarter of 2012. Since exiting recession in 2009, President Obama’s policies have led to slower real growth every year: 2010 real growth was 2.4 percent 2011 real growth was 1.8 percent 2012 real growth in the first three quarters has been 2 percent, 1.3 percent, and 2 percent (average of 1.7 percent). The third quarter number... Continue Reading
October 5, 2012
September 2012 Unemployment Report
September 2012 Unemployment Rate: 7.8 percent Unemployed Americans: 12.1 million “Real” Unemployment The “real” unemployment or U-6 rate is 14.7 percent for September 2012, which is unchanged from August. This is the total percentage of unemployed workers, plus marginally attached workers and people who are working part time for economic reasons. The... Continue Reading
September 19, 2012
Democrats Steer America Toward a “Fiscal Cliff”
The Democrat Senate during the first session of the 112th Congress (2011) was among the “laziest in 20 years,” in terms of productivity (days and hours in session). Through the first 263 days of this year (through September 19), the Senate has been in session only 107 days, and Senators have gone to the floor to vote on just 65 days. Majority Leader Reid has indicated that he intends to put off many important issues until after the election—during the lame duck session. If the... Continue Reading
September 19, 2012
Territorial vs. Worldwide Taxation
“The nation should have a tax system that looks like someone designed it on purpose.” – William Simon, former U.S. Treasury secretary In the ongoing debate over how to reform our tax system, one important question involves how to treat income U.S. corporations earn from their work overseas. This paper examines the two major ways countries answer this question: territorial and worldwide tax systems. How Worldwide Taxation Works The U.S. has a worldwide tax system.... Continue Reading
September 13, 2012
QE3 Could Hurt in the End
Today the Federal Reserve’s Federal Open Market Committee announced that it would initiate a third round of quantitative easing, or “QE3,” by purchasing $40 billion of mortgage-backed securities per month on an open-ended basis. Since 2008, there have been five major Fed policies that have attempted to spur the economy with little success: QE1 – $600 billion of quantitative easing announced in November 2008; QE2 – Another $600 billion of easing announced in... Continue Reading
September 11, 2012
Obama Economy Fails Iraq and Afghanistan Veterans
President Obama promised to create jobs and improve the economy. Three and a half years of his policies have left those promises unfulfilled for the economy as a whole, and for veterans returning from the Iraq and Afghanistan wars specifically. Unemployment Rate for Iraq and Afghanistan Veterans Source: Bureau of Labor Statistics Labor Market Activity for Gulf War II Era Veterans Source: Bureau of Labor Statistics / RPC Calculations Failed Policies for America’s Veterans In February... Continue Reading
September 7, 2012
August 2012 Unemployment Report
August 2012 Unemployment Rate: 8.1 percent Unemployed Americans: 12.5 million Employment The Department of Labor reported an unemployment rate of 8.1 percent for August 2012, which is a decrease of 0.2 percent from July, and an increase of 96,000 nonfarm jobs. Most of the new jobs were in food services, professional and technical services, healthcare, utilities, finance and insurance, and wholesale trade. This makes 43 straight months under President Obama with unemployment... Continue Reading
August 22, 2012
Obama on the Deficit: Gimmicks Not Solutions
Today the Congressional Budget Office released its updated Budget and Economic Outlook. CBO reports that going over the “fiscal cliff” will cause a recession: Negative economic growth of 0.5 percent from the fourth quarter of 2012 to the fourth quarter of 2013. Unemployment will reach 9.1 percent in the fourth quarter of 2013. President Obama has offered no plan to deal with the sequester, the spending side of the fiscal cliff. In fact, the President pledged to veto efforts to... Continue Reading