DSA Economic Recovery Plan

DSA's Economic Recovery Plan  
 
Democratic Socialists of America (DSA) has been gravely concerned that politically motivated tax cuts, largely sweetheart deals for business that benefit the very financial institutions whose high-flying speculation created the economic crisis, have been inserted into the Economic Recovery Act. The House passed legislation is now being voted on in the Senate. So far amendments to increase spending on infrastructure have been defeated while additional tax credits have been added to the bill. It is expected, although not certain, that the Senate will finish voting on the bill today.
 
DSA has issued a recovery plan that calls on the government to spend $1 trillion to stimulate the economy and includes no  business tax credits.  We believe the federal government should minimally allocate:

$200 billion in block grants to state and local governments to make up for the annual loss in state and local revenue
$100 billion to pay for half of the increased Medicaid costs states will face
$100 billion to pay for COBRA coverage for laid-off workers and to allow people over 55 to buy into Medicare
$50 billion to increase unemployment insurance and expand eligibility. (Currently only one-third of unemployed workers receive unemployment insurance!)
$100 billion to increase Pell grants and expand the number of its recipients.
$450 billion to the Social Security Trust Fund so that workers would receive a one-year holiday from paying the regressive FICA tax. Such a measure would radically stimulate consumer demand.
DSA's recovery plan and the accompanying analysis are presented in a short, 4-page document that has been posted on our Website. To read or download a copy click HERE. Additionally, we have updated the two-page hand-out, originally released last week, that details our perspective on the economic crisis. The redesigned flyer is much more attractive than the previous version.  To read or download the updated flyer click here.
 
It is critical that Congress hear from those opposed to tax cuts for business if there is any hope of redirecting those resources to job-generating infrastructure spending. You can reach your senator or representative through the Congressional switchboard by calling 202-224-3121 or 800-828-0698. If you don’t know who is your Representative, you can find out by clicking here. Let your Representative know your views, as the bill will come back to the House for a final vote. House members can still pressure their leaders who will negotiate with the Senate on the final version. When you call, be sure to say you are calling about the Economic Recovery Act and that while you support the act, you are both against its tax-cuts-for-business provisions and believe that there should be more direct spending on infrastructure. You should also say that you are opposed to the E-Verify provisions.
 
In solidarity,
Frank Llewellyn
National Director