In a new blog post, EPI federal budget analyst Andrew Fieldhouse assesses the impact the Romney-Ryan fiscal agenda would have on working families. He finds that among many other devastating outcomes, the proposals would derail economic recovery, reduce employment, and redistribute income from the middle class to millionaires.
Corporate tax deductions for executive pay cost the U.S. $7 billion in lost revenue in 2010
Though a law is in place to discourage excessive executive pay by limiting the deduction for executive compensation at publicly traded corporations to $1 million in compensation per covered executive, corporations can deduct qualified performance-based compensation. In the new EPI report Taxes and executive compensation, Temple University accounting professor Steven Balsam estimates that tax-deductible executive compensation cost the federal treasury $7 billion in revenue in 2010 and $30.4 billion over the years 2007-2010.
Increasing the federal minimum wage would give more than 28 million workers a raise
In How raising the federal minimum wage would help working families and give the economy a boost, EPI researchers Douglas Hall and David Cooper show that raising the national minimum wage from $7.25 to $9.80 per hour would give more than 28 million workers a raise while generating approximately 100,000 new jobs over three years. This increase would put nearly $40 billion in the hands of directly and indirectly affected families when they need it most, augmenting their spending power.
In the news
Washington Post/Wonkblog’s Dylan Matthews turned to EPI’s research on the divergence of productivity growth and wage growth to ascertain why Mitt Romney’s claim that increased productivity has led to higher wages for workers completely misses the mark.
An article covering the same topic byNewsweek/Daily Beast reporter Jesse Singal quoted Jared Bernstein, former chief economist to Vice President Joe Biden and a senior fellow at the Center on Budget and Policy Priorities, who referenced EPI’s research and reached the same conclusion.”
The Nation’s Ari Berman looked to EPI’s analysis of the devastating effects presumptive Republican vice presidential nominee Paul Ryan’s budget plan would have on job growth if implemented.
Think Progress added, “Ryan’s budget calls for massive reductions in government spending. He has proposed cutting discretionary programs by about $120 billion over the next two years and mandatory programs by $284 billion.”