yllus
Elite Member & Lifer
Good piece from The Atlantic; it's hard for me to not see this as a major win for the middle class in America. Also, holy cow at that second graph and its numbers for the Reagan years.
The Atlantic - Obama Is the Greatest Force for Equality in 50 Years
Third, the Obama administration has supported initiatives outside of the tax code and health care policy to help the poor and middle class. They have been advocates for higher minimum wages at the national level, which have arguablybuoyed the state-by-state effort to raise minimum wages toward $15 in richer areas. They supported extended unemployment benefits while long-term unemployment was perhaps the country’s most insidious economic plague. Unemployment insurance kept more than 11 million people out of poverty in Obama’s first term, according to Census analysis. The president also expandedSupplemental Nutrition Assistance Program (food stamps) and Temporary Aid to Needy Families (grants that states can use for a variety of measures including helping the poor). His Department of Education spent more than $60 billion to support states’ education budgets and prevent more layoffs of teachers and administrators. In sum, he grew anti-inequality spending more than any president, as a share of GDP.
The Atlantic - Obama Is the Greatest Force for Equality in 50 Years
A new examination from the Council of Economic Advisers credits the Obama presidency for the most aggressive and successful attempt to reduce inequality in half a century. “President Obama has overseen the largest increase in federal investment to reduce inequality since the Great Society,” the economists write.
One might immediately think to dismiss such a report as shameless self-promotion from the White House. But the nonpartisan Congressional Budget Office (CBO) reached the exact same conclusion in June. It found that the federal government is doing more to reduce inequality right now than any time on record, going back at least 35 years. The gap between the rich and poor is as wide as ever judging by before-tax income (e.g., wages and capital gains). But judging by after-tax income, the CBO found that income inequality is no higher than it was in 2000, and Obama’s policies have done more to reduce inequality in the last few years than any other time on record.*
In other words, Obama’s economic policies have fought the stubborn forces of economic inequality to something of standstill. How has he done it? President Obama’s anti-inequality crusade has three main pillars.
First, the centerpiece of Obama’s anti-inequality legacy is the policy that bears his name. Obamacare, a.k.a., the Affordable Care Act, has reduced the uninsured rate from about 16 percent in 2010 to less than 9 percent today, the lowest level in U.S. history. Health insurance is not yet universal, but it is in the process of universalizing, thanks to the president’s landmark bill.
...
Second, several subtle yet significant tax changes under Obama have made the tax code more progressive. The stimulus bill passed in 2009, a.k.a., the American Recovery and Reinvestment Act of 2009 (or, simply, the Recovery Act), included the most important changes. The law created the Making Work Pay credit, expanded the Earned Income Tax Credit and Child Tax Credit, and created new tax credits, like the American Opportunity Tax Credit for college attendees. Most of these measures have been extended through 2017. The most significant change to the tax code since 2010 has been the eleventh-hour agreement to extend the Bush tax cuts for all families except for an increase in the top tax rate for households making more than $450,000 and an increase in the estate tax rate to 40 percent.
All told, these changes made the tax code more progressive over a period when the economic gains of the recovery went disproportionately toward the richest Americans. The richest 1 percent of households earned about 99 percent of the income gains in the years after the recession. But the most common measures of income inequality did not explode in this period. The reason why is fairly simple. Obama’s tax policies increased the non-1-percenters’ share of income more than any president since perhaps FDR.
One might immediately think to dismiss such a report as shameless self-promotion from the White House. But the nonpartisan Congressional Budget Office (CBO) reached the exact same conclusion in June. It found that the federal government is doing more to reduce inequality right now than any time on record, going back at least 35 years. The gap between the rich and poor is as wide as ever judging by before-tax income (e.g., wages and capital gains). But judging by after-tax income, the CBO found that income inequality is no higher than it was in 2000, and Obama’s policies have done more to reduce inequality in the last few years than any other time on record.*
In other words, Obama’s economic policies have fought the stubborn forces of economic inequality to something of standstill. How has he done it? President Obama’s anti-inequality crusade has three main pillars.
First, the centerpiece of Obama’s anti-inequality legacy is the policy that bears his name. Obamacare, a.k.a., the Affordable Care Act, has reduced the uninsured rate from about 16 percent in 2010 to less than 9 percent today, the lowest level in U.S. history. Health insurance is not yet universal, but it is in the process of universalizing, thanks to the president’s landmark bill.
...
Second, several subtle yet significant tax changes under Obama have made the tax code more progressive. The stimulus bill passed in 2009, a.k.a., the American Recovery and Reinvestment Act of 2009 (or, simply, the Recovery Act), included the most important changes. The law created the Making Work Pay credit, expanded the Earned Income Tax Credit and Child Tax Credit, and created new tax credits, like the American Opportunity Tax Credit for college attendees. Most of these measures have been extended through 2017. The most significant change to the tax code since 2010 has been the eleventh-hour agreement to extend the Bush tax cuts for all families except for an increase in the top tax rate for households making more than $450,000 and an increase in the estate tax rate to 40 percent.
All told, these changes made the tax code more progressive over a period when the economic gains of the recovery went disproportionately toward the richest Americans. The richest 1 percent of households earned about 99 percent of the income gains in the years after the recession. But the most common measures of income inequality did not explode in this period. The reason why is fairly simple. Obama’s tax policies increased the non-1-percenters’ share of income more than any president since perhaps FDR.
Third, the Obama administration has supported initiatives outside of the tax code and health care policy to help the poor and middle class. They have been advocates for higher minimum wages at the national level, which have arguablybuoyed the state-by-state effort to raise minimum wages toward $15 in richer areas. They supported extended unemployment benefits while long-term unemployment was perhaps the country’s most insidious economic plague. Unemployment insurance kept more than 11 million people out of poverty in Obama’s first term, according to Census analysis. The president also expandedSupplemental Nutrition Assistance Program (food stamps) and Temporary Aid to Needy Families (grants that states can use for a variety of measures including helping the poor). His Department of Education spent more than $60 billion to support states’ education budgets and prevent more layoffs of teachers and administrators. In sum, he grew anti-inequality spending more than any president, as a share of GDP.
