On This Day: President Barack Obama, Vice President Joe Biden and Claire Duncan, daughter of Education Secretary Arne Duncan, watch a tennis match at Camp David, Md., Oct. 3, 2010. The President hosted cabinet members and their families for a Sunday gathering at the retreat (Photo by Pete Souza)
Today, the average after-tax income of a member of the top 1 percent of earners is $1.12 million. The average after-tax income of someone in the bottom 20 percent is $13,300. That means the average person at the top takes home 84 times the income that the average person in the bottom takes home. Now, consider what it would be like if none of President Obama’s tax policy changes had happened: not the upper-income tax hikes negotiated at the beginning of last year, not the upper-income tax increases imposed by the Affordable Care Act, not the low-income tax credits enacted in the 2009 stimulus and later renewed.
In this alternative universe, the average member of the top 1 percent would take home $1.2 million, or 6.5 percent more in income, according to a new analysis. The average member of the bottom 20 percent would bring home $13,100, or 1.2 percent less in income. As a result, the average member of the 1 percent would take home 91 times what the average person in the bottom would bring home. If you’ve wondered whether Obama has made any headway at reducing income inequality, here’s evidence that he has. Based on tax policy alone, he has slightly increased the income of the poor and more significantly reduced the income of the rich.
USA Today: Obama applauds congressional budget deal
Don’t be surprised if President Obama addresses the proposed congressional budget deal on Wednesday, and to say good things about it.
In a written statement late Tuesday, Obama called the deal “a good first step” toward a “balanced” budget approach that combines prudent cuts with investments in job-generating programs.
“This agreement doesn’t include everything I’d like — and I know many Republicans feel the same way,” Obama said. “That’s the nature of compromise. But it’s a good sign that Democrats and Republicans in Congress were able to come together and break the cycle of short-sighted, crisis-driven decision-making to get this done.”
That Congress’ budget chairs – Republican Paul Ryan and Democrat Patty Murray – were able to reach a budget agreement at all is a minor miracle. There was ample reason to believe the negotiations were a fool’s errand and that failure was an inevitability. The assumptions, however, were wrong, and the two leaders last night unveiled their deal to fund the government for the next two years.
Broadly speaking, there are two overarching questions to consider: is the budget agreement any good and can it pass Congress. Neither is easy to answer.
BBC: ‘Volcker rule’ ban on risky trades passed by regulators
All five US financial regulators have approved the Volcker rule, designed to restrict the finance industry in the wake of the 2008-09 financial collapse.
Named after former Federal Reserve chairman Paul Volcker, it bans banks from using their own funds for trading activities.
It is considered the centrepiece of the 2010 banking reform legislation known as Dodd-Frank. Banks will have until 21 July 2015 to comply with the rules.
…. US President Barack Obama applauded the passage of a rule proposed more than three years ago.
He said in a statement: “The Volcker Rule will make it illegal for firms to use government-insured money to make speculative bets that threaten the entire financial system, and demand a new era of accountability from CEOs who must sign off on their firm’s practices.”
Kentucky.com: Health enrollment climbs during holiday period
Enrollment through Kentucky’s health benefits website has grown by more than 11,000 in a 10-day period starting Thanksgiving week.
Gov. Steve Beshear’s office says the technology team for the state’s online health insurance marketplace was expecting an increase in traffic, applications and enrollments after Thanksgiving and increased capacity to prepare.
A news release from Beshear’s office says the site enrolls about 1,000 Kentuckians a day.