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Obama’s Tax Cuts Target Parents, Families with 2 Incomes

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President Barack Obama delivers remarks at the Department of Homeland Security on his FY2016 budget proposal, on Monday, Feb. 2, 2015, in Washington. Obama warned congressional Republicans Monday that he won't accept a spending plan that boosts national security at the expense of domestic programs for the middle class. (AP Photo/Evan Vucci)

President Barack Obama delivers remarks at the Department of Homeland Security on his FY2016 budget proposal, on Monday, Feb. 2, 2015, in Washington. Obama warned congressional Republicans Monday that he won’t accept a spending plan that boosts national security at the expense of domestic programs for the middle class. (AP Photo/Evan Vucci)

STEPHEN OHLEMACHER, Associated Press

WASHINGTON (AP) — President Barack Obama is proposing nearly $280 billion in tax cuts for low- and middle-income families, but not everyone will benefit.

Obama’s proposed budget calls for a total of $1.5 trillion in new taxes over the next decade, mostly on corporations and high-income households. He would use much of that money to pay for targeted tax breaks for low- and middle-income families.

The proposed tax cuts would benefit households with two wage earners, families with young children in child care and those with older children in college. One proposal would automatically enroll workers in individual retirement accounts, unless they opt out. Another would extend the Earned Income Tax Credit to low-wage workers without children.

Obama calls his tax and spending plan “middle-class economics.” But middle-income families that don’t fit these categories won’t see many changes in their taxes, according to an analysis by the Tax Policy Center, a research group formed by the Urban Institute and the Brookings Institution.

For families making between $50,000 and $75,000 a year, about a quarter of them would get a tax cut, averaging $545, according to the analysis. About 6 percent would get a tax increase, and the rest — about 70 percent — would see no change in their tax bill.

Among the bottom 20 percent — families with incomes averaging $15,600 — nearly a third would get tax cuts averaging $617. The rest would see little or no change in their taxes.

“The key thing is that, overall, there will be winners, losers and a lot of people unaffected,” said Roberton Williams, a fellow at the Tax Policy Center.

The center’s analysis focused on the effects of the two-earner tax credit, the child-care credit, the expanded education credit, the tax credit for low-wage workers and the program making it easier for workers to enroll in retirement accounts, Williams said. The analysis also took into account Obama’s proposal to increase taxes on some investments and estates.

All of these proposals were part of Obama’s larger budget plan, which he unveiled Monday.

Obama would pay for middle-class tax cuts by raising taxes on the wealthy — including increasing the tax on capital gains — and changing the way the U.S. taxes the foreign profits of American corporations. Obama’s proposals are designed to further talks on Capitol Hill about revamping American business taxes, lowering the overall tax rate while eliminating or reducing many tax breaks.

Obama’s proposed tax increases, however, are running into strong opposition from Republicans in Congress.

“I want to work with this administration, and I hope that we can find common ground,” said Rep. Paul Ryan, R-Wis., chairman of the tax-writing House Ways and Means Committee. “But the president has to demonstrate that he’s interested in governing, not just posturing.”

Obama’s proposed tax cuts are getting a friendlier welcome — House Speaker John Boehner, R-Ohio, said he is open to Obama’s plan to increase a tax credit to help pay for childcare expenses. But Boehner has been critical of Obama’s overall plan.

The Obama administration says its proposal addresses decades of rising income and wealth inequality, and a tax system that “lets the wealthy shelter hundreds of billions of dollars from taxes each year.”

“The president’s budget proposes targeted policies to strengthen the middle class, level the playing field for American businesses, create more fairness in our tax code, and lay the groundwork for long-term economic growth for our country that is broadly shared, all while setting a course to put our country on sound fiscal footing,” Treasury Secretary Jacob Lew said in a statement.

Among Obama’s proposed tax cuts for middle- and low-income families:

— Create a tax credit of up to $500 for families with a second wage-earner, which the administration says would benefit 24 million couples. Cost: $89 billion over 10 years.

— Triple the child care tax credit — to a maximum of $3,000 per child — and make the full credit available to families with incomes up to $120,000. Families with higher incomes could get a reduced credit. Cost: $50 billion over 10 years.

Obama’s plan would repeal tax breaks for flexible spending accounts for child-care expenses.

— Extend the Earned Income Tax Credit to low-wage workers with no children. Cost: $60 billion over 10 years.

— Consolidate several education tax breaks into an enhanced tax credit of up to $2,500 a student to help pay for college expenses. The tax credit, which is scheduled to expire at the end of 2017, would be made permanent. Cost: $31 billion over 10 years.

Obama initially proposed to scale back the tax benefits of college savings accounts, known as 529 accounts. But he dropped the proposal after getting resistance from both Republicans and Democrats in Congress.

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Follow Stephen Ohlemacher on Twitter: http://twitter.com/stephenatap

Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Committee Chairs Request Information from Consumer Bureau on Efforts to Protect Student Loan Borrowers

NNPA NEWSWIRE — Former Student Loan Ombudsman Seth Frotman asserted in his August 2018 resignation letter that CFPB leadership “has abandoned the very consumers it is tasked by Congress with protecting.” The position of Student Loan Ombudsman has been vacant since Frotman resigned in August 2018.

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Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee
Congresswoman Maxine Waters (D-CA), is the Chairwoman of the House Committee of Financial Services

Chairs Also Request Documents from Education Department, Loan Servicers

WASHINGTON – Today, Financial Services Committee Chairwoman Maxine Waters (D-CA), Education and Labor Committee Chairman Bobby Scott (D-VA), and Oversight and Reform Committee Chairman Elijah Cummings (D-MD), sent a letter to Consumer Financial Protection Bureau Director Kathleen Kraninger requesting information and records concerning the CFPB’s efforts to protect consumers from unlawful student loan servicing practices.

In the letter, the Chairs raise concerns that “…the Consumer Bureau has taken actions that weaken its ability to fulfill its mission to protect student loan borrowers,” and that the agency is “…providing potentially harmful and conflicting advice to student loan borrowers.”  The Chairs request records from the Consumer Bureau by no later than September 9, 2019.

Former Student Loan Ombudsman Seth Frotman asserted in his August 2018 resignation letter that CFPB leadership “has abandoned the very consumers it is tasked by Congress with protecting.” The position of Student Loan Ombudsman has been vacant since Frotman resigned in August 2018.

The Chairs also sent a letter to Betsy DeVos expressing deep concern over the Education Department’s failure to protect students and families from student loan companies. The letter addresses recent reports that the Department is shielding student loan servicing companies from state law enforcement and undermining the CFPB’s oversight of these companies. In March 2019, an independent watchdog found that the Department failed to establish policies to properly conduct oversight of student loan servicing companies.

“As Chairs of Committees with oversight responsibilities over the student loan industry, we are very concerned by reports that under your leadership, the Department of Education has failed to adequately oversee student loan servicers,” the Chairs wrote. “Reports indicate that improper practices by these servicers—including inaccurate determination of monthly payments, forbearance steering, and other practices—directly impact millions of Americans and have ripple effects on their families, communities, and the economy as a whole.”

In addition, the Chairs sent letters today to federally contracted loan servicers seeking information about their operations, including any strategies or policies that push students into more expensive repayment options.

The full text of the letter to the CFPB is available here.

The full text of the letter to the Education Department is available here.

The full text of the letter to Navient is available here.

The full text of the letter to Nelnet is available here.

The full text of the letter to Pennsylvania Higher Education Assistance Agency is available here.

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Ohio State Sen. Cecil Thomas: Tracie Hunter’s Conviction is Unlawful

NNPA NEWSWIRE — “No one is above the law, including judges and prosecutors,” Thomas said. However, in an Aug. 13 letter to Ohio Attorney General Dave Yost and Chief Justice Maureen O’Connor, Thomas said Hunter’s prosecution and subsequent conviction violated the law.

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“The judge refused a motion for a retrial after he refused to poll the jury, in clear violation of the law and at the request of my attorney,” Tracie Hunter told NNPA Newswire during the annual National Newspaper Publishers Association (NNPA) annual convention in Cincinnati.
“The judge refused a motion for a retrial after he refused to poll the jury, in clear violation of the law and at the request of my attorney,” Tracie Hunter told NNPA Newswire during the annual National Newspaper Publishers Association (NNPA) annual convention in Cincinnati.

By Stacy M. Brown, NNPA Newswire Correspondent
@StacyBrownMedia

Former Judge Tracie Hunter, who became Hamilton County Ohio’s first black juvenile court judge, is receiving support from Ohio State Senator Cecil Thomas, who argues that her conviction should be overturned.

Thomas said Hunter didn’t receive a fair trial and that she appears to have been the victim of corruption.

After being convicted of providing confidential documents to her brother in an attempt to help save his job as a corrections officer and exhausting her appeals, Hunter was literally dragged off to jail last month.

“No one is above the law, including judges and prosecutors,” said Thomas. However, in an Aug. 13 letter to Ohio Attorney General Dave Yost and Chief Justice Maureen O’Connor, Thomas said Hunter’s prosecution and subsequent conviction violated the law.

On Sept. 17, 2013, Prosecutor Joe Deters filed a motion requesting special prosecutors for the case against Hunter.

On that same day, Judge Beth Myers filed an entry with the Hamilton County Clerk of Courts appointing special prosecutors, to fully investigate Hunter.

“By filing the motion without due diligence, Judge Myers subsequently appointed Prosecutor Joe Deters’ lawyers and friends who have represented [Deters] in personal litigation,” said Thomas.

One of the attorneys is a partner in the law firm that represented Deters in his divorce, the senator noted, adding, “There are numerous examples that will show just how close these attorneys are to Deters.”

When publicly questioned regarding the appointments, Myers said she “dealt with things as they were presented to me. I will continue to do that,” according to Thomas.

Deters has maintained that he didn’t recommend the appointments and that they were done strictly by the Common Pleas Court. However, Thomas said the appointed lawyers have twice referenced Deters’ role in the appointments.

“Joe Deters requested a special prosecutor because he had a conflict. As such, by law, his only participation is to make the request and provide reasoning,” Thomas said.

“Judge Myers’ role is to decide whether to honor the request and if so, to appoint with the assurance that there are no conflicts,” he said.

“It appears neither Deters nor Myers followed the law to assure Judge Hunter received a fair trial, free of any biases and [Myers] appears to have played a role in unlawfully securing a public contract,” Thomas said.

By appointing Deters’ lawyers, any reasonable person can conclude there are inherent conflicts, Thomas continued.

“First, the mere personal relationship speaks for itself. Second, by honoring his recommendation to hire his personal lawyers, in essence, [Myers] played a role in using her public office to secure a public contract of approximately $700,000 for the personal lawyers of another public official,” Thomas said.

A spokeswoman for the Hamilton County Prosecutor’s Office said they hadn’t seen the complaint.

Yost’s office declined to comment.

As Thomas submitted his letter, attorneys for Hunter formally asked that she be released.

The judge who carried out her sentence is reportedly waiting for the special prosecutor in the case to respond before deciding.

Hunter, who’s also a church pastor in Cincinnati, has had the support of so many including The Coalition for a Just Hamilton County which is composed of members from the Interdenominational Ministry Alliance; the Cincinnati Chapter of the NAACP; the local chapter of Al Sharpton’s National Action Network; the Black United Front; the Southern Christian Leadership Council; the Nation of Islam and others.

“They’ve tried to stop me from telling my truth and all I have is my truth,” she told NNPA Newswire in June.

She said she had mostly refrained from giving interviews because the local media has only used sound bites to try and embarrass her.

“I’ve lost hope in the justice system which is why I became a judge in the first place,” Hunter said. “I’ve not lost faith in God even though they’ve tried to drive me out of this city.”

Stacy M. Brown

A Little About Me: I'm the co-author of Blind Faith: The Miraculous Journey of Lula Hardaway and her son, Stevie Wonder (Simon & Schuster) and Michael Jackson: The Man Behind The Mask, An Insider's Account of the King of Pop (Select Books Publishing, Inc.)

My work can often be found in the Washington Informer, Baltimore Times, Philadelphia Tribune, Pocono Record, the New York Post, and Black Press USA.
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COMMENTARY: What goes up must come down

DAYTONA TIMES — There is much to object to about No. 45’s presidency – his hateful racial rhetoric, his attacks on women and people of color, his appointment of extremely young and inexperienced members of the federal judiciary, his rollback of environmental protections, his attacks on public education, and more.

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By Julianne Malveaux

There is much to object to about No. 45’s presidency – his hateful racial rhetoric, his attacks on women and people of color, his appointment of extremely young and inexperienced members of the federal judiciary, his rollback of environmental protections, his attacks on public education, and more.

But his economic stewardship, an arena he claims to have mastered, is as repulsive as his noneconomic stewardship. Many of his minions have, albeit gently, criticized the ways he has managed the economy. His trade wars, especially with China, may stand at the top of the list.

China won’t pay

He says that China will pay when he, most recently, announced that he would impose a ten percent tariff on $300 billion worth of imports from China.  The Chinese won’t pay. U.S. consumers will. And U.S. producers and manufacturers will also pay when China retaliates against us, as they have promised to do.

To be sure, China has been a “bad actor” in trade relationships with the United States. But No. 45’s intemperate and ill-advised tantrum will not only affect many in the United States –including farmers, manufacturers, and consumers – but may also play a role in slowing down the world economy.

For the first time in a decade, the Federal Reserve has reduced the interest rate by a quarter-point. Cutting the interest rate during the early recovery from the Great Recession was an effective way to lower the cost of money and, theoretically, put more money into the economy for expansion.

No trickle-down

In reality, cheaper money didn’t trickle down to homeowners or consumers, but it did generate GDP growth. Now growth is slowing, partly because of Trump’s trade wars, and partly because his tax cuts have not trickled down, and people don’t have as much money to spend as they’d like. Interest rate cuts are a clear sign that our nation’s bankers are not confident that economic expansion will continue to be robust.

Many of No. 45’s allies tout low unemployment rates as evidence of economic strength. And the July 3.7 percent unemployment rate, unchanged from June is indeed a ten-year low. The Black unemployment rate is at an all-time low. And last month, 164,000 more jobs were created, labor force participation rose, and the number of discouraged workers declined.

Why no celebration?

Firstly, because wage growth is slow. In a tight labor market, with low unemployment rates, wages should be increasing by more than the 3 percent annual rate they are growing at now.

Further, although there is slight improvement in labor force participation, and fewer workers holding part-time work for economic reasons, tepid wage growth suggests that while jobs are available, they aren’t necessarily good-paying jobs.

Slow wage growth and a slowing economy are likely to lead to a new recession. Economist Heather Boushey says that increasing inequality makes a recession more possible than it otherwise might be.

And this administration does not mind increasing inequality. Most recently, they have proposed cuts to food stamp programs that will leave at least three million people – low-income workers and their children, people with disabilities and some older Americans, vulnerable to hunger. The Senate just passed a budget that will increase military spending by more than $750 billion and will cut spending on food.

Less to spend

Economic expansion depends on people spending money, and too many have little to spend. The food stamp cuts give some even less. Increased prices of goods imported from China gives them less to spend. And the administration team that touts economic strength on the one hand is undermining both growth and poverty alleviation, on the other.

What goes up must come down. Can the No. 45 economic team manipulate the economy to continue expansion through the 2020 election, or will attacks on the poor result in less spending, less expansion, and an economic catastrophe?


Julianne Malveaux is a Washington, D.C.-based economist and writer. Her latest book, “Are We Better Off? Race, Obama and Public Policy,” is available at www.juliannemalveaux.com.

This article originally appeared in the Daytona Times.

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Congressman John Lewis to Receive Thurgood Marshall Award From American Bar Association

OAKLAND POST — The American Bar Association will present Congressman John Lewis with the Thurgood Marshall Award at its annual meeting in San Francisco, Sat., August 10.

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Civil rights icon Rep. John Lewis (D-Ga.) (Freddie Allen/AMG/NNPA)
https://blackpressusa.com/wp-content/uploads/2019/05/John-Lewis.jpg

By Conway Jones

The American Bar Association will present Congressman John Lewis with the Thurgood Marshall Award at its annual meeting in San Francisco, Sat., August 10.

The Thurgood Marshall Award honors U.S. Supreme Court Justice Thurgood Marshall, who epitomized individual commitment, in word and action, to the cause of civil rights in this country.

Congressman Lewis is one of the original 13 Freedom Riders, a founding member and chairman of the Student Nonviolent Coordinating Committee and the only one of the “Big Six” civil rights leaders who organized the 1964 March on Washington still living, He is a 17 term congressional leader, and one of only two Lifetime Achievement recipients of the John F. Kennedy Profiles in Courage Award.

“Congressman John Lewis is one of our most revered elder statesmen. His sacrifices for civil rights, justice and equality are unparalleled,” said Robert L. Harris, Esq., former president of the National Bar Association.

This article originally appeared in the Oakland Post

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Mayor Bottoms Urges Immediate Senate Action on Gun Safety Legislation

ATLANTA DAILY WORLD — Mayor Keisha Lance Bottoms joined 214 bipartisan mayors from across the nation signing on to a letter from The United States Conference of Mayors urging immediate action from the federal government on gun safety legislation.

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Atlanta Mayor Keisha Lance Bottoms. (Photo by: Itoro N. Umontuen/The Atlanta Voice)
By ADW News

Mayor Keisha Lance Bottoms joined 214 bipartisan mayors from across the nation signing on to a letter from The United States Conference of Mayors urging immediate action from the federal government on gun safety legislation.

“Public servants—from the local level to Washington—have an obligation to protect the lives of those we are entrusted to serve,” said Mayor Keisha Lance Bottoms. “We need strong leadership willing to take the necessary measures to prevent heinous, senseless acts of violence. If we are truly serious about preventing one more family from knowing the pain of losing someone to another gun tragedy, we need Congress to enact commonsense gun safety legislation immediately.”

With over 250 mass shootings in 2019, the United States Conference of Mayors is urging the nation’s leaders to work with Congress, the Administration, and others to develop holistic remedies to the scourge of gun violence.

Read the full letter at this link.

This article originally appeared in the Atlanta Daily World

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Stacey Abrams Says She’d Serve as Vice President

NNPA NEWSWIRE — “I’ve just come to the decision that my best value add, the strongest contribution I can give to this primary, would be to make sure our nominee is coming into an environment where there are strong voter protections in place,” Abrams told the New York Times.

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“I would not have publicly raised the possibility if it was not a legitimate thought,” Abrams said.
“I would not have publicly raised the possibility if it was not a legitimate thought,” Abrams said.

By Stacy M. Brown, NNPA Newswire Correspondent
@StacyBrownMedia

The overcrowded Democratic presidential field has a record six women seeking the nomination.

But one prominent individual who isn’t running for the top job has thrown her hat into the ring for vice president.

Former Georgia Gubernatorial Candidate Stacey Abrams said she would be delighted to serve under one of the 22 candidates.

“I would be honored to be considered by any nominee,” Abrams told The New York Timeson Wednesday, Aug. 14.

“I’ve just come to the decision that my best value add, the strongest contribution I can give to this primary, would be to make sure our nominee is coming into an environment where there are strong voter protections in place,” Abrams told the Times.

“I would not have publicly raised the possibility if it was not a legitimate thought,” Abrams said.

She said the current field, which includes former Vice President Joe Biden; Calif. Sen. Kamala Harris; New Jersey Sen. Cory Booker; and Vermont Sen. Bernie Sanders, is talented.

Earlier this year when Biden entered the race, he was reportedly considering Abrams as a running mate.

YAHOO! Newsreported that Abrams dismissed those rumors, noting that at the time, Abrams was considering a run for president.

Earlier this year, Booker said he believed that a woman should be on the ticket.

Another candidate, former Texas Rep. Beto O’Rourke, said he would find it “very difficult not to select a woman” as his running mate.

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