Posts Tagged ‘Congress’

“Tax Cuts For Millionaires” Democrats’ New Rallying Cry

Friday, December 3rd, 2010

Republicans and Democrats are once again failing to compromise – this time it’s on a major tax decision for wealthy Americans.

  • During the Bush presidency, taxes were cut for pretty much everyone, at every income level. But now Congress is having a pretty heated debate about whether to renew them this month.
  • Republicans want to keep the tax cuts, but Democrats believe that raising taxes on the rich (to pre-Bush levels) is the only way to reduce our giant budget deficit and fund relief for Americans suffering from the recession.
  • Publicly, Democrats are fighting the extension of Bush-era tax cuts, calling them “tax cuts for millionaires.” But because opposition from Republicans is so strong, they may be forced to accept a renewal of today’s tax structure.

Facts & Figures

  • Republicans once coined the emotionally-charged term “death tax” to turn public opinion against estate taxes
  • Some Dems have proposed a compromise that only raises taxes on households making more than $1 million

Best Quotes

In the Democrats’ corner:

“Just as the death tax sort of put Democrats on the defensive on the estate tax, the millionaires’ tax is putting the Republicans on the defensive on tax policy. I think it is a potent issue with the public.” – New York Democratic Senator Charles Schumer

The Republican perspective:

“They are trying to create class warfare. But I don’t care who they take it from. It’s still money out of the private sector.” – South Carolina Republican Senator Jim DeMint

Congressional Staff Profit From Suspicious Trades

Monday, October 11th, 2010

If you invest because you know a government bill benefiting a certain industry is going to pass soon, does that make you an inside trader?

  • You may be surprised to learn that insider-trading laws don’t apply to Congress. Some lawmakers have tried to change that with the STOCK (Stop Trading on Congressional Knowledge) Act, but there hasn’t exactly been a lot of momentum to get that law passed.
  • The Wall Street Journal went through financial records of Congressional aides and found that many were trading in stocks whose prices were directly or indirectly impacted by the legislative activities of their bosses. The finance and energy sectors were especially popular among Congressional traders.
  • Because aides don’t technically make the decisions that determine whether laws are passed, some say there is no real conflict of interest. But both members of Congress and the highest-paid Congressional aides (about 11% of all aides) are required to make the details of their personal finances public.

Facts & Figures

  • In 2008 and 2009, 72 Congressional aides have traded stock in companies overseen by their bosses
  • Some of the higher-paid aides earn salaries of $170,000 per year

Best Quote

“Congressional staff are often privy to inside information, and an unscrupulous person could profit off that knowledge. The public should be outraged there is no law specifically banning this.” – Vincent Morris, Spokesman for Rep. Louise Slaughter (D., N.Y.)