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Following a national debate over the Bush tax cuts that saw federal income tax rates go up on the wealthiest Americans this January, state legislatures continue to diverge sharply on their approach toward taxes in the first few months of 2013. Anti-tax conservatives in some states, looking to hold fast to a Norquistian vision of tax cuts for the wealthy, are running into opposition. Meanwhile, other states are moving in the opposite direction on revenue for the first time in years. Reports this week show this divergence continuing, even as new research revealed the inefficacy of personal income tax cuts as a strategy for economic growth:
The pressure to fully implement the Affordable Care Act continued to build in state capitals this week as new reports showed the extent of the financial pain that both business and hospitals will feel if their states refuse to participate in the expansion of Medicaid (since the pain felt by the millions of people who would find themselves uninsured in those states was clearly not enough to win conservative support). In some states where previously opposed governors have already agreed to support expansion, conservative legislators are putting up a fight.
It's already March, but it felt a bit like Groundhog Day this week as U.S. Rep. Paul Ryan (R-WI) unveiled — for the third straight year — a conservative House budget proposal steeped in austerity, divorced from reality, and as unpopular as ever. But another budget proposal was released this week that actually does redirect the debate away from austerity and toward job creation.
On Friday, the across-the-board cuts of the federal budget sequester started to kick in. While planes have hopefully not fallen out of the sky (yet), as President Obama noted in a press conference on Friday, the pain will be felt incrementally, and it will be real to millions of Americans. What's worse, the self-inflicted damage to the economy predicted to result from the sequester is entirely avoidable, and in fact does little to reduce the deficit. State legislators from 46 states this week urged Congress to avert the sequester and make sure that "significant revenues" were included in any new deal. Here's more on that, and on how the cuts are set to hit the states in the coming weeks:
Last year, the corporate-backed American Legislative Exchange Council (ALEC) came under fire for their support of voter suppression and "shoot first" laws. In response, ALEC claimed they would "redouble their efforts on the economic front" this year. But, in fact, ALEC has long focused on policies that weaken wage standards and otherwise endanger working families — and a new report released this week by the National Employment Law Project (with research support from PSN) shows just how. At the same time, efforts to combat the ALEC economic agenda advanced in states including Maryland and Washington as polls and research continue to show that policies like raising the minimum wage, paid family leave, and paid sick days are popular and good for the economy:
Ninety-eight to zero. That was the vote of the United States Senate in July 2006 in favor of re-authorizing the Voting Rights Act, the landmark civil rights law which this week came under withering — and disturbing — attack from conservative Supreme Court Justices during oral arguments in Shelby Co. v. Holder. At the very same time that Chief Justice Roberts was quoting dubious election statistics and Justice Scalia was claiming the protection of the right to vote was a "racial entitlement," states across the nation continued to press forward with voter suppression measures that underscored the need to continue to protect voting rights for all Americans:
State legislators from 46 states are sending a clear a message to Congress: if the federal budget sequester is allowed to take effect as scheduled later this week, the results would be devastating for state economies.
With the across-the-board cuts in the federal budget sequester set to go into effect starting Friday, the White House is releasing a series of fact sheets outlining exactly how hard the cuts would hit state economies.