It's Time to Roll 'Em Back

It's no secret that wealth inequality in the United States has increased drastically (PDF) in recent years. There's also no mystery as to why we've seen such a dramatic increase.

It's not a trick of fate or the will of the gods — it's due to real, man-made policies that impact us all. In a way, this is good news, because it means we're able to do something about it. Even better news? — some of the policies that led to such extreme concentrations of income and wealth are set to expire at the end of this year, making 2010 a year of incredible opportunity.

The Bush tax cuts, first passed in 2001, have cost trillions of dollars to date. They also predominantly benefit the wealthiest Americans. Now, they're set to expire. We're working with members of our Responsible Wealth program on a national campaign raising public awareness about this important issue to ensure that the Bush tax cuts for the wealthy expire as scheduled once and for all this year.

Want to know how much you gained from the Bush tax cuts this year? Our 3-minute Tax Cut Calculator is an easy way to find out. Please consider taking a stand with us by pledging your cut to tax fairness organizing efforts.

And be sure to check out Katrina vanden Huevel's recent blog in The Nation.

Solutions for Main street

Over half the states are still struggling to close huge budget deficits for the 2011 fiscal year. Because state governments lack the deficit spending capabilities of the federal government, many choose to fill their budget gaps with cuts to important public services and revenue from regressive taxes and fees.

A new set of guidelines, released by UFE's Tax Fairness Organizing Collaborative (TFOC), seeks to remind state legislators that there is a far more responsible solution, and it's well within their reach.

The TFOC's new position paper, entitled "Solutions that Work for Main Street: Progressive Guidelines for Closing Recessionary State Budget Gaps," urges states to implement a multi-faceted approach, with proactive and defensive strategies, to close their budget gaps.

In a recession of this magnitude, the best way to stimulate and recover is to fund programs and services – not to cut them. Common practice has been to use a combination of spending cuts and minimal revenue raising measures – most of which disproportionately fall on low- and middle-income taxpayers. According to the Guidelines, states should focus on making more money available using a variety of sensible mechanisms, the centerpiece of which is taxation based on ability-to-pay.

Of course, with proposals for tax increases of any kind come the expected band of anti-tax hell-raisers. To combat this, the guidelines advocate for a well planned, "just-the-facts" defense. They also provide proponents of progressive taxation with clear arguments for why it's the best approach for their state, and they recommend advocates uncover and publicize hidden truths behind opponents' "no new taxes" sentiment.

"Taking Back the Tap"

March 22nd was World Water Day, a day for all of us to "reaffirm that clean water is life, and our lives depend on how we protect the quality of our water."

Our friends at Corporate Accountability International are reminding folks that part of protecting our water involves challenging an economic system that allows for its exploitation by Big Business.

Corporate Accountability's Think Outside the Bottle campaign produced a web video, "The Story of Bottled Water," a 7-minute animated film hosted by Annie Leonard ("The Story of Stuff"). The video sheds light on "manufactured demand," a deceptive marketing strategy employed by beverage companies to get Americans to buy more than half a billion bottles of water every week – at about two thousand times the cost of tap water!

Globally, over 1 billion people in impoverished communities have little choice but to use limited and potentially harmful sources of water. Meanwhile, many Americans, who generally have access to an abundance of safe tap water, continue to consume bottled water despite the enormous waste of money, energy and resources it represents.

Viewers are encouraged to honor that access to clean, safe drinking water is a human right by "taking back the tap." Watch
                                           the video for details and ways to get involved.

Financial Reform on the Horizon

Senator Chris Dodd's draft of financial reform legislation is finally out of committee. The bill is now on the floor of the Senate waiting for them when they return from recess in April. It will probably be the dominant issue in Congress now that health care legislation is finally completed.

The House passed their version of financial reform back in December. So, how does the Senate draft compare to the House version? Paul Krugman offers an interesting analogy to answer that question. Mike Konczal explains some of the details here.

And what about the CFPA? Well, that's an interesting question. It's in Dodd's draft, but it's weaker than would be ideal. Heather Booth, Executive Director of Americans for Financial Reform, explains it well.

A strong and independent Consumer Financial Protection Agency must be the cornerstone of any meaningful reform. We believe the best way to structure a strong and independent Consumer Financial Protection Agency is through a stand-alone agency, and we are troubled by the provisions that allow Consumer Financial Protection Agency decisions to be appealed to a council dominated by institutions that failed consumers in the past, and by holes in its enforcement authority.

Basically, the Dodd draft is just that, a draft. And it needs to be improved in several ways. It's going to be a contentious debate before a final version is ultimately passed. Significant changes will be made to the bill – we just hope those changes will serve to strengthen the bill, not gut it. And since health care reform was so easy to pass, this should be no sweat, right? Well, that's where 'we the people' come in.

It's always a good time (even during recess) to call your Senators to let them know that you want a strong, independent CFPA (Capitol switchboard 202-224-3121) as part of meaningful financial regulation reform. Remember that for every member of Congress, there are four banking lobbyists working to weaken reform. The banks are eager to gut this bill and are willing to spend to do it. We need every voice who supports reining in the banks, protecting consumers, and putting our economy on firmer footing to make their voice heard.

Deeper Reading:

• An excellent Op-Ed from Richard Eldlin on the need for consumer protection.

• A brief from the Roosevelt Institute on the state of Financial Reform.

• David Leonhardt lays out the current state of affairs in the New York Times.

• Paul Krugman explains the stakes and the debate to come.

• Simon Johnson sees a glimmer of hope.

Article Five