Congress

Misplaced Congressional Priorities: Pork for the Pentagon but Not for Children

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Pentagon-moneyby Pamela Powers Hannley

During the Bush II Era, excessive deficit spending was no big deal for Republicans. Congressional Republicans like Mitch McConnell, Jon Kyl, John McCain, Jeff Flake, Lindsay Graham, and even current “budget hawk” Paul Ryan “spent money like drunken sailors”– particularly when the spending benefited the 1% (remember the tax cuts we couldn’t afford?) or corporations (two wars, Medicare Advantage, off-shoring jobs, more tax cuts, privatization, etc.)

But as soon as a Democratic President occupied the White House, the siren song became: We must tighten our belts and live within our means! Cut government jobs…er… spending! Cut Social Security… er… “entitlements”! 

This austerity screed intensified after the Democratic “shellacking” in 2010 when Teapublicans took control of the House of Representatives and the budget, and Senate Teapublicans began playing games with people’s lives by filibustering everything. (No wonder Congress has a 16% approval rating.)

For the past few months, Congress has been weighing the pros and cons of budget cuts and pork barrel projects. Food stamps and schools lunches are on the chopping block, while the Congress considers passing the National Defense Authorization Act of 2014, which authorizes $640 billion more in defense spending than the Pentagon asked for. (This action was passed by the House Armed Services committee last week; the full vote in the House of Representatives is scheduled for today– Wednesday, June 12.) More details about Pentegon pork after the jump.

Pictures for peaceniks: Why the US military budget should be cut

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pt 10-350-flagby Pamela Powers Hannley

Remember the Super Congress? It was a gimmick that Congressional Republicans came up with after the huge debt ceiling and budget battle in August 2011.

The Super Congress was supposed to balance the US budget during the fall of 2011, but they failed to do so. As a result, the country is now facing "sequestration"– a fancy name for automatic budget cuts and tax increases that were trigger by the Super Congress' failure and the regular Congress' failure to negotiate and agree on humane budget cuts coupled with revenue-generating and economy-growing measures.

Thanks to Congressional foot-dragging, sequestration is upon us. The biggest budget that is up for trimming is the military budget. Although hawks are wringing their hands over potential cuts, the US military budget is by far the largest in the world. In fact, in 2011, the US spent more on the military than the next 13 countries combined! Wonkblog has provided great charts and background information on military spending– perfect ammunition for anyone who in more invested in peace than war. Check out it out after the jump.

11 European countries pass Robin Hood Tax on financial transactions

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Robin-h-05-sm72by Pamela Powers Hannley

Eleven European countries, who collectively account for two-thirds of the EU's economy, have passed a new financial transaction tax.

Also known as the Robin Hood Tax in the US, a financial transaction tax charges a small percentage fee for every stock market deal. The new European law will charge a rate of 0.1% on any trade of shares or bonds and 0.01% on any financial derivative contract, according to an article in Think Progress. These tiny percentages would raise an estimated 57 billion euros per year if all 27 of the European countries adopted the law. (At an exchange rate of 1 EU = $1.33, that is an estimated $75.8 billion in US dollars per year of revenue generation.) In addition to raising funds, the financial transaction tax discourages speculative computerized trading. Also know as "rent seeking," computers are set up to buy stocks and sell them quickly– sometimes when the profit is just pennies. If you do enough of this automated micro-trading, you can make a bundle of money; but this speculative behavior adds volitility to the market and produces nothing except fot the gamblers who are in the game. The Ed Schultz Show has a great explanation here. 

 In all, 40 countries worldwide have adopted a financial transaction tax. The 11 countries who have passed the Robin Hood Tax recently include two European powerhouses– Germany and France– plus Spain, Portugal, Italy, Belgium, Austria, Slovakia, Slovenia, Greece, and Estonia. The financial problems facing Greece, Spain, and Italy have been in the news for years. This tax will help cash-strapped governments to become more stable. 

Gosh, what other country is facing dire financial choices and needs an infusion of cash? Find out how the Robin Hood Tax would help the US economy after the jump.