Blueprint for Economic Security: Rebuilding Prosperity

[irishbobcat]

Blueprint for Economic Security: Rebuilding Prosperity

"It's time we tax fairly and cut wisely, not tax the middle class and cut services to our children, seniors, and public safety."

With states facing another year of unprecedented budget pressures, conservatives continue their corporate crusade through economic policies that ensure record profits for CEOs and shareholders at the expense of workers. The Right's agenda places the interests of private industry over the public as they move to advance the very same policies that crashed the economy, including reckless budget cuts, privatization, and tax breaks for the rich. 

Progressives at the state level have a significant role to play in placing the country on a sustainable path toward recovery and prosperity by ensuring sound investments in public structures, providing accountability for taxpayers, leveling the playing field for small businesses, reducing the unfair burden on moderate and low-income families, and supporting the growth of a vibrant middle class.

Policy Options to Rebuild Prosperity in 2011 include:

Corporate Transparency: States cannot afford to distribute enormous subsidies or award lavish contracts with nothing in return. As state governments hand out millions to corporations through tax credits, subsidies and government contracts, lawmakers must pursue efforts to track and safeguard taxpayer dollars.  Reforms, including restricting privatization and augmenting transparency of economic development subsidies, contracts, tax expenditures, and corporate tax breaks, will provide taxpayer protections, promote sound fiscal practices, identify inefficiencies, reduce corruption, and create budget savings.
Development Banks: There is substantial interest in the creation of state development banks, modeled after the Bank of North Dakota, which serves as a depository for state funds and works successfully with local banks and credit unions to invest in communities, create new jobs, increase state revenues, strengthen local banks, and lower state/local government debt costs.
Progressive Tax Reform and Revenue Generation: Critical in restricting corporate tax avoidance and nullifying certain tax shelters are policies like combined reporting.  Personal income tax reforms include imposing a temporary income tax surcharge to recapture tax breaks that the wealthiest households receive from the extension of the Bush tax cuts.