Native American Netroots
Menu
Border


Make a New Account

Username:

Password:



Forget your username or password?


Search




Advanced Search


Active Users
Currently 0 user(s) logged on.

Native American Netroots


...A Forum for American Indian Issues...

Native American Netroots

A new article of faith: Don't make the poor balance the budget

by: Mark Trahant

Mon Nov 15, 2010 at 17:45:15 PM PST


( - promoted by oke)

Trahant Reports

By Mark Trahant

There is a political article of faith: "Don't raise taxes during a recession." Just Google the phrase and you'll find some 2.5 million results. The popular idea is that deeply embedded into our political thinking. Of course it makes economic sense: You want people to spend their money on goods and services. Then producers will hire more people, and people will have more money to spend, yadda yadda.

Here's my concern: While there is consensus to protect the richest Americans - those who pay income taxes - there is little discourse, yet alone agreement, about protecting the poor and the working poor. We hear about saving the middle class, we hear about tax cuts for everyone (except this only applies to the income tax, not to the payroll taxes, a tax that is far more burdensome to those who earn less). But what about those who work hard but don't earn a high wage?

Mark Trahant :: A new article of faith: Don't make the poor balance the budget
I've already written about the zest for cutting government programs and jobs, ideas that will add to the unemployment crisis and take more "spending" money out of the economy. Unemployed people, yes, even people who once worked for the government, don't spend. This is money that will be subtracted from the economy.

I agree that we need to cut federal spending. We need to balance the budget and pay down the massive debts we've accumulated. (This is a position I've argued for doing for most of my professional career as a columnist.) But we don't have to do this all at once.

A presidential debt commission will release its proposals in December to balance the budget.  A draft is already out there with a few big ticket ideas: Slowly raising the retirement age, making $3 in spending cuts for every dollar in higher revenue and a flatter income tax structure (and one that generates more revenue). But there are also little proposals, almost meaningless, such as ending the payments to states and tribes for abandoned mines.

One idea that's floating around is to eliminate the Earned Income Tax Credit. This would have terrible consequences for the working poor - especially people who live in Native American communities. The Earned Income Tax Credit is one of the most successful anti-poverty programs ever. It's a tax credit that puts real money back into the pockets of families who are supporting themselves on modest incomes.

A report from the Brookings Institution looking at three decades of the tax credit and puts it this way: "The EITC has proved remarkably successful in reducing poverty. In 2003, the EITC lifted 4.4 million people in low-income, working families out of poverty, more than one-half of them children. Today, the EITC lifts more children out of poverty than any other social program or category of programs. Without it, the poverty rate among children would be 25 percent higher."

The tax credit has been singularly successful on American Indian reservations and in Alaska Native villages. For example: Pull up a map of where the tax credit is most used and you see Indian Country. In many Native communities more than 40 percent of the population now is eligible for this credit. Just peek at Montana's map for an example. The areas where the EITC is most common are the state's Indian reservations. Make no mistake about this, reducing or eliminating the Earned Income Tax Credit will have a disproportionate impact on Indian Country.

It is important, over the long haul, to reign in the federal budget. But that cannot be accomplished by stripping away the programs and tax credits that actually make life better for poor, working American families. This proposal is being shopped at the very moment when government services and jobs are already being cut in those same communities.

A sad truth is that the recession doesn't mean as much in a poor community as a rich one. When unemployment rates are already 50 percent, what difference does a point or two make?

But in this national zeal to balance the budget we should not make the situation worse.  If we can make it an article of faith to not raise taxes during a recession, we should also be certain not to make life worse for American who work hard and barely earn enough to support their families.

Mark Trahant is a writer, speaker and Twitter poet. He is a member of the Shoshone-Bannock Tribes and lives in Fort Hall, Idaho. Trahant's new book, "The Last Great Battle of the Indian Wars," is the story of Sen. Henry Jackson and Forrest Gerard.

Tags: , , , (All Tags)
Print Friendly View Send As Email

If you want to repost your thanks to Mr. Trahant (0.00 / 0)
You are welcome to do so - but only if you do not include any marketing spam as you have been including, with or without comment. I have deleted your initial comment in this diary as spam.  

[ Parent ]
In Memoriam
Flora Sombrero Lind In honor of my mother, THE FLORA SOMBRERO LIND NAVAJO ENDOWMENT FUND has been set up to accept your donations. American Indian College Fund This scholarship endowment has been established at the American Indian College Fund to honor Flora Sombrero Lind, as an enrolled member of the Navajo Nation who was born at Inscription House, Arizona of the Many Goats clan circa 1925. This scholarship endowment is funded by Flora's family and friends who want to see Navajo students pursue higher education and carry on their great Navajo heritage.

Please leave a comment here if you donate.

Site Donations
- Please specify what your donation is for in the notes section of the PayPal window. Either propane for Pine Ridge or Rosebud or Hosting fees for this blog. --navajo
If you like to help Aji and Wings please mail a check to them at the address here: wingssilverwork.com Click the contact tab for address.

About
Border

Native American
Netroots


...a forum for the discussion of political, social and economic issues affecting the indigenous peoples of the United States, including their lack of political representation, economic deprivation, health care issues, and the on-going struggle for preservation of identity and cultural history



ABOUT US :

Publisher/Founder
navajo (Neeta Lind)

Executive Editor
Meteor Blades
(Timothy Lange)

Contributing
Editors

oke
Aji

Senior Historian & Writer
Ojibwa

Featured Writers
cacamp
winter rabbit
Mark Trahant
exmearden
Land of Enchantment

Veterans Affairs Correspondent
DaNang65

Contributing
Writers

SarahLee
Bill in MD
DeepHarm
TiaRachel
Kitsap River
4Freedom
No Way Lack of Brain
More...


NDN News & Links
Border

Native American Rights Fund
The Native American Rights Fund (NARF) is a non-profit 501c(3) organization that provides legal representation and technical assistance to Indian tribes, organizations and individuals nationwide - a constituency that often lacks access to the justice system. NARF focuses on applying existing laws and treaties to guarantee that national and state governments live up to their legal obligations. DONATE ONLINE


Border

Censored News :: Brenda Norrell
Indigenous Peoples and Human Rights News
by
Brenda Norrell


Border

Wampum

Border

Reznet News
Reporting From Native America


Border

Indigenous Action Media

Border

Indianz

Border

Indian Country Today

Border

Defenders of the Black Hills

Border

Leonard Peltier Defense Committee Leonard Peltier Defense Committee

Border

Native Vote
National Congress
of
American Indians


Border

Native News

Border

Earthsongs

Border

Native America Calling Border

Native Biz

Border

American Indian Tribes Forum

Border

American Indian Tribes Forum American Indian Tribes Forum

Border

American Indian Tribes Forum

Border

BLOG FATHER
- DAILY KOS



Border

BLOG BROTHERS
- NATIVE APPROPRIATIONS

Border


Native American Netroots

-HOME-



Powered by: SoapBlox