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US seizes sanctioned oil tanker off coast of Venezuela, Trump says; House advances Defense Bill; USDA food buying favors industrial ag: MT farmers react; MA Starbucks workers join nationwide Red Cup Rebellion strike; ICE arrests create fear, separate families in West Virginia communities.

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U.S.-Venezuela tensions escalate with the seizure of an oil tanker. The Senate prepares to vote on a GOP healthcare plan and the House approves a new National Defense Authorization Act.

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Farmers face skyrocketing healthcare costs if Congress fails to act this month, residents of communities without mental health resources are getting trained themselves and a flood-devasted Texas theater group vows, 'the show must go on.'

How are Those Bush Tax Cuts Working Out for Ya?

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Wednesday, June 8, 2011   

RICHMOND, Va. - This week marks the tenth anniversary of the Bush tax cuts, prompting some groups in Virginia to ask how those tax cuts are working out. Not so well, according to critics who gathered in front of Rep. Robert Hurt's office in Danville on Tuesday afternoon.

Joe Katz, a volunteer with Virginia Organizing, says the tax cuts for the wealthy were sold on the premise that the money would trickle down to working people in the form of jobs.

"They don't spend the money, at least not in this country. If they spend it, they spend it overseas in China or in India, creating jobs over there. And once they have workers in those countries, they don't need workers in this country anymore."

According to the Economic Policy Institute, most of the deficit is a result of the Bush tax cuts, the wars and falling revenues during the Great Recession. Mike Konczal, a research fellow at the Roosevelt Institute, sees it as a tragedy that more of that money wasn't invested in the country.

"These deficits weren't created to increase schooling or make better infrastructure, or put money in working people's pockets."

Republicans say Medicare and Medicaid should be cut to pay for the deficits and extending the tax cuts. Despite the rhetoric, Konczal says, that won't put people to work.

"It's textbook economics. That was a lot of the logic in 1937, when we caused a second wave of the Great Depression."

If the tax cuts are extended, according to the group Citizens for Tax Justice, in 2013 they would give the richest 1 percent of Virginians $70,000 per family - while the bottom three-fifths would get less than $600. Republicans want to extend the tax cuts again, but Katz thinks it would be wiser to do more to put people to work directly.

More information on the impact of the Bush tax cuts is online at ctj.org.


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