Answer the following questions to see how your political beliefs match your political parties and candidates.
The Affordable Care Act is a federal statute signed into law in 2010 that introduces a sweeping overhaul of the nation's healthcare system. The act grants the federal government significant regulatory powers and price controls over U.S. medical service providers and insurance companies.
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Single-payer healthcare is a system where every citizen pays the government to provide core healthcare services for all residents. Under this system the government may provide the care themselves or pay a private healthcare provider to do so. In a single-payer system all residents receive healthcare regardless of age, income or health status. Countries with single-payer healthcare systems include the U.K., Canada, Taiwan, Israel, France, Belarus, Russia and Ukraine.
When the Affordable Care Act (Obamacare) was enacted in 2010 it required all states to expand their Medicaid programs to include people with incomes slightly higher than those allowed under traditional Medicaid, as well as groups, like childless adults, that had not previously been covered. In 2012 the Supreme Court ruled that forcing States to expand their Medicaid coverage was unconstitutional. Since then 22 states have expanded their coverage and more than 35 have opted not to do so. Proponents of the expansion argue that it will lower healthcare costs for everyone by reducing the number of Americans without health insurance. Opponents argue that states should be allowed to run their own Medicaid programs without the intervention of the federal government.
U.S. law currently bans the sale and possession of all forms of marijuana. in 2014 Colorado and Washington will become the first states to legalize and regulate marijuana contrary to federal laws.
In January 2018, the Trump administration announced that it would allow U.S. states to require able-bodied adults to work in order to be eligible for Medicaid. Medicaid is a joint federal and state program that helps with medical costs for low-income Americans. Each state determines its own requirements for Medicaid eligibility. In most states children from low-income households, pregnant women and low-income seniors are covered. Medicaid also offers benefits not normally covered by Medicare, like nursing home care and personal care services. The Trump administration said Arizona, Arkansas, Indiana, Kansas, Kentucky, Maine, New Hampshire, North Carolina, Utah and Wisconsin had requested approval to test programs including job training, job search, education, volunteer activities and caregiving.
In September of 2016, US Presidential candidate Hillary Clinton released a proposal that would create an oversight panel that would protect U.S. consumers from large price hikes on long-available, lifesaving drugs. The proposal was in response to recent steep price increases on drugs including the AIDS drug Daraprim and the EpiPen. Proponents of drug price regulation argue that drug makers raise prices to benefit the value of their stock and invest little of their profits in the development and research of new drugs. Opponents of regulation argue that consumers rely on drug companies to develop new drugs and limiting prices will prevent new lifesaving drugs from being developed. Clinton's campaign cited Turing Pharmaceuticals LLC's raising the price of its AIDS drug Daraprim (pyrimethamine) and Mylan NV’s repeated steep price increases on EpiPen for severe allergy sufferers as “troubling” examples of price hikes that have attracted bipartisan congressional scrutiny.
In 2018, officials in the U.S. city of Philadelphia city proposed opening a “safe haven” in an effort to combat the city's heroin epidemic. In 2016 64,070 people died in the U.S. from drug overdoses - a 21% increase from 2015. 3/4 of drug overdose deaths in the U.S. are caused by the opioid class of drugs which includes prescription painkillers, heroin and fentanyl. To combat the epidemic cities including Vancouver, BC and Sydney, AUS opened safe havens where addicts can inject drugs under the supervision of medical professionals. The safe havens reduce the overdose death rate by insuring the addicted patients are given drugs that are not contaminated or poisoned. Since 2001 5,900 people have overdosed at a safe haven in Sydney, Australia but no one has died. Proponents argue that the safe havens are the only proven solution to lower the overdose fatality rate and prevent the spread of diseases like HIV-AIDS. Opponents argue that safe havens may encourage illegal drug use and re-direct funding from traditional treatment centers.
The government is currently prohibited by law from negotiating drug prices for Medicare. Medicare Part D is a federal government program which subsidizes the costs of prescriptions drugs for people enrolled in Medicare. Since it was approved by Congress in 2003 39 million Americans have enrolled in the program which now costs more than $80 billion per year. Opponents of Medicare Part D argue that it should be changed to allow the federal government to negotiate prices with pharmaceutical companies. They point out that the Veterans Affairs administration is allowed to negotiate prices and pays 40-58% less for drugs than Medicare does. Analysts estimate that the government would save up to $16 billion a year if they were permitted to negotiate drug prices. Proponents of Medicare D argue that the government should not interfere with prices set by private drug makers who use profits for the development and research of new drugs.
In February 2017, Congressional Republicans issued a proposal to repeal the Affordable Care Act. The proposed plan would use tax credits to finance individual insurance purchases and cut federal payments to states which have been used to expand Medicaid. Conservatives who oppose the ACA argue that the plan did not go far enough in removing the government’s role in health insurance. They demanded that the new plan should remove the ACA requirement that health insurers could not discriminate against individuals with pre-existing conditions. Under the ACA health insurers cannot deny coverage or charge higher premiums to individuals who have pre-existing conditions. Opponents argue that the requirement will raise costs for insurers and cause them to drop out of the ACA healthcare exchange. Proponents argue that it is immoral to ban people with pre-existing conditions from getting health insurance.
In 2015, the U.S.’ estimated military budget is expected to be $601 billion, down from $610 billion spent in 2014. The U.S. outspends the next six highest spending nations combined. China has the second largest budget at $216 billion and Russia has the third largest with $84.5 billion.
President Obama recently declared that the U.S. will accept 10,000 refugees from Syria. The U.S. has been under pressure from its Syrian allies to help out with the crisis in which 3 Million refugees have fled Syria in the past year. Those in favor of accepting refugees believe that the U.S. has a duty to join its allies in Europe and accept at least 10,000 refugees. Opponents argue that the U.S. should stay out of this crisis and accepting refugees from the Middle East leads to a risk of letting terrorists into our borders.
In 2002, the George W. Bush administration issued the Torture Memos which argued for a narrow definition of torture under U.S. law. They included granting the CIA authority to use “enhanced interrogation techniques” on enemy combatants. The techniques included waterboarding subjection to extreme cold and confinement in small boxes.
After the September 11, 2001 terror attacks the George W. Bush administration authorized the use of “enhanced interrogation techniques” at secret detention facilities around the world run by the defense department and CIA. The authorization approved the use of many techniques including beatings, binding in stress positions, hooding, sleep deprivation and waterboarding. In 2008 President Obama signed an executive order banning the use torture by the U.S. military and CIA. In 2016 the use of torture became a topic during the Presidential race when candidate Donald Trump suggested it should be used against the Islamic State. Opponents of torture argue that the U.S. should never practice torture since it is inhumane and illegal under international law. Proponents argue that the military should not be prevented from using torture if they believe it will keep the country safe.
Military service is not required in the U.S. Proponents of required service argue that it isn’t fair that a small percentage of Americans serve in the military to protect the rest of the population. Opponents argue that the requirement is unnecessary because modern warfare is fought less and less with ground troops and more with unmanned technology including drones.
The UN. is an organization of governments founded in 1945 after World War II. The organization's objectives include promoting peace and security, protecting human rights and the environment and providing humanitarian aid in cases of famine, natural disaster, and armed conflict. Recent U.N. interventions include the Sri Lankan civil war in 2009 and the 2010 earthquake in Haiti. The U.S. joined the U.N. as a founding member in 1945. The U.S. is the largest financial contributor to the UN and contributes more than $650 million annually.
The U.S. currently gives $3.3 billion to Israel every year, which is 1/3rd of the U.S.’s foreign aid budget. Most of the aid is used by Israel to buy American military hardware, such as jets and components for missile defense.
Currently, the United States gives $31.55B, or .19% of GDP, development assistance to other countries. The top 10 recipient countries include Afghanistan, Israel, Egypt, Jordan, West Bank/Gaza, Ethiopia, South Sudan, Malawi, Uganda, and South Africa.
In December 2014 President Obama ordered the restoration of full democratic relations with Cuba. The order lifted a 54 year old trade embargo and eased restrictions on banking and American’s travel to the country. Proponents of relations with Cuba argue that U.S. influence through tourism and trade will promote capitalism and weaken its communist regime. Opponents argue that trade and diplomatic relations will only strengthen the communist regime’s grip on the Cuban government.
In December 2017 U.S. President Donald Trump recognized Jerusalem as Israel’s capital and announced the U.S. would move it’s embassy there. The announcement was controversial as both Israel and Palestine claim that Jerusalem is their capital. Foreign governments that recognize Jerusalem as the capital of Israel support the notion that Israel has sovereignty over the city. In 1949 Israel took control of the western half of the city and Jordan took control of the eastern half. In 2017 the current population of Jerusalem was 61% Jewish and 37% are Arab. Opponents argue that moving the U.S. embassy to Israel is a violation of international law and would set back decades of peace talks between Israel and Palestine. Proponents argue that Jerusalem has been the defect capital of Israel for many years and foreign governments should recognize it.
Drones are unmanned aerial vehicles deployed by U.S. defense and intelligence agencies to collect data and strike suspected enemy targets.
The North Atlantic Treaty Organization is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on April 4th, 1949. It is a political and military alliance of member countries from Europe and North America that agree to provide military and economic security for each other. NATO makes all of its decisions by consensus and every member country, no matter how large or small, has an equal say.
Senator Rand Paul (R-KY) recently proposed declaring war against the Islamic State (ISIS). The declaration would give the President more authority to carry out broader attacks on the militant group without Congressional approval. Opponents argue that the order would give the President too much power by eliminating Congressional oversight. Proponents argue that fighting an organization like ISIS requires an unconventional war plan that requires the President to make quick decisions without Congressional oversight.
The North Atlantic Treaty Organization (NATO) is an intergovernmental military alliance formed by 28 countries in 1949 after the Second World War. To join NATO each member country pledged to spend at least 2% of their GDP on military spending and defense and defend each other against threats from any non-member country. In a July 2016 interview with the New York Times Republican Presidential nominee Donald Trump suggested that the United States would not defend NATO member countries who had failed to increase their military budgets to above 2% of Gross Domestic Product. The suggestion defies a pact made by NATO members when it was formed in WWII that they would defend each other against any attack by a non-member nation. France, Turkey, Germany, Canada, and Italy are countries that are currently spending less than 2% of their GDP on military defense.
After the November 13th attacks in Paris several Presidential candidates gave new positions on how the U.S. should combat ISIS in the Syria. The U.S. is currently involved in a coalition of 19 countries that has launched 8,000 airstrikes against ISIS. None of the countries currently have ground troops in Syria.
The cache of documents revealed by former NSA contractor Edward Snowden disclosed that the U.S. used surveillance methods to monitor the emails and phone calls of its closest foreign allies including Germany, France and Brazil. The revelations have severely damaged the U.S.'s relationship with these countries even though State Department officials have insisted that these surveillance programs have thwarted many terrorist threats worldwide.
The United States and coalition forces invaded Afghanistan in 2001 after the September 11 terror attacks. After the attacks, U.S. intelligence officials determined that the Afghani-based militant organization Al-Qaeda was responsible. In 2001 90% of Afghanistan was controlled by the Sunni Islamic military organization The Taliban. After the Taliban refused requests by U.S. President George W. Bush to dismantle Al-Qaeda the U.S. launched military operations known as Operation Enduring Freedom. As of June 27, 2019 2,419 U.S. troops have died in the conflict.
In late September 2015, the Russian army conducted its first airstrikes in Syria and claimed they were intended to target ISIS positions within the country. U.S. military leaders and the Obama administration immediately warned that Russia is a close ally of Syrian President Bashar al-Assad and that the Russians will eventually turn their airstrikes against Syrian rebels who were recently supported by the U.S. Opponents of any further intervention in Syria argue that U.S. efforts to train rebels have failed miserably and we should stay out any further conflict in the region.
In March 2014, Russian soldiers entered Ukraine and took control of several strategic positions within the country. The following month the Ukrainian parliament declared that its territory was officially being occupied by Russia. The invasion was immediately condemned by the U.S. and other U.N. member states as a direct invasion of a sovereign country and an act of war. In response NATO countries began military exercises in the region including the addition of 600 U.S. ground troops in Poland. Opponents of military action argue that the conflict the U.S. should not get involved in regional conflicts that do not directly threaten the U.S. Proponents argue that Russian military aggression against Ukraine threatens the balance of power in the region and the U.S. military should directly aid Ukrainian forces to prevent the conflict from spreading to Europe.
The F-35 fighter is a stealth fighter jet being produced for the U.S. military by The Lockheed Martin corporation. Three variations of the single seat stealth fighter jet are being produced for the Air Force, Marine Corps and Navy. By 2037 2,457 F-35’s will be delivered to the military and will fly until they retire from service in 2070. The research, development and construction of the F-35 will be the most expensive military weapons program in the history of the U.S. When the F-35 retires in 2070 analysts estimate that the cost of the program will have exceeded $1.5 trillion. Opponents of the program argue that costs for the program are out of control and that the military should scrap the F-35 and continue to fly its current planes. Proponents argue that the fighter is necessary for the U.S. military to maintain its edge over foreign adversaries.
In September 2018, the U.S. signed a security agreement with India unlocked the sales of billions of dollars of high-tech American weapons. India will purchase fighter jets, transport planes, drones and missile defense systems from American military manufacturers including Lockheed Martin. The U.S. government is seeking India as an ally to counter the rise of China and Russia’s military strength in the Indo-Pacific region. Proponents argue that the agreement is necessary to counter China and Russia’s influence and the agreement will generate billions of dollars in revenue for U.S. military defense contractors. Opponents argue that the agreement will encourage China and Russia to beef up their militaries and trigger a global arms race.
In October 2019 the U.S. House of Representatives passed a series of bills supporting protesters in Hong Kong who have a called for democratic reforms in the City. In March 2019 a series of protests began in the Hong Kong Special Administrative Region of the People's Republic of China (HKSAR) after the government there introduced the Fugitive Offenders amendment bill. The Fugitive Offenders bill established a mechanism for transfers of fugitives from Hong Kong to Mainland China, Macau and Taiwan. The bill was proposed in response to the 2018 murder of Poon Hiu-wing in Taiwan. After the murder her boyfriend, Chan Tong-kai, left Taiwan and traveled to Hong Kong where he told police that he killed Poon. Taiwanese police were unable to extradite Tong-kai and charge him with the murder because the Taiwanese police did not have an extradition agreement in place with Hong Kong. Opponents of the bill argued that it would allow the mainland Chinese government to extradite citizens in Hong Kong - effectively putting them under Chinese law. Opponents also argues that the Chinese criminal process does not have an independent judiciary, fair public trials and lack of access to legal representation. On September 4, 2019, after 13 weeks of protests, Hong Kong Chief Executive Carrie Lam promised to withdraw the bill.
In June 2019 tensions between the U.S. and Iran escalated after a U.S. surveillance drone was shot down by Iran’s revolutionary guard in the Gulf of Oman. The U.S. claimed it was an “unprovoked attack” and the drone was flying in international airspace. 2 weeks earlier the Trump administration blamed Iran for the attacks on two oil tankers who were bombed in the Gulf of Oman. Iran denied any involvement. In early June Iran announced that it would break its uranium stockpile limit set under the 2015 Iran nuclear deal. Under the deal Iran was allowed to keep a maximum of 660 pounds of uranium enriched to 3.67%. Analysts predict that if the uranium is enriched to 20% or more Iran would be capable of developing nuclear weapons.
Foreign electoral interventions are attempts by governments, covertly or overtly, to influence elections in another country. A 2016 study by Dov H. Levin concluded that the country intervening in most foreign elections was the United States with 81 interventions, followed by Russia (including the former Soviet Union) with 36 interventions from 1946 to 2000. In July 2018 U.S. Representative Ro Khanna introduced an amendment that would have prevented U.S. intelligence agencies from receiving funding that could be used to interfere in the elections of foreign governments. The amendment would ban U.S. agencies from “hacking foreign political parties; engaging in the hacking or manipulation of foreign electoral systems; or sponsoring or promoting media outside the United States that favors one candidate or party over another.” Proponents of election interference helps keep hostile leaders and political parties out of power. Opponents argue that the amendment would send a message to other foreign countries that the U.S. does not interfere in election and set a global gold standard for preventing election interference. Opponents argue that election interference helps keep hostile leaders and political parties out of power.
In July 2017, 43 U.S. Senators proposed a law that would make it a crime for Americans to support the international boycott against Israel. The bill would levy large fines and prison time for businesses and individuals who don’t buy from Israeli companies operating in occupied Palestinian territories, and who make statements, including social media posts, saying that they are doing so in order to boycott. The international boycott of Israel was launched in 2006 by Palestinian NGO’s to protest Israel’s “occupation and colonization of Arab lands.” Supporting the boycott is considered a “civil wrong” in Israel and has been officially condemned by the governments of Australia, France and the U.K. Proponents of the law argue it could cause severe economic harm to, Israel which is an important ally of the western nations in the Middle East. Opponents of the law argue that it is a suppression of free speech and citizens should be able to protest and boycott any foreign country.
In January of 2016, North Korea announced that it detonated its first hydrogen bomb. CBS News reported that the U.S. intelligence community is skeptical that North Korea used a thermonuclear device. The blast was in single-digit kilotons, and a thermonuclear device is measured in megatons. North Korea’s leader, Kim Jong-un, has been more ambitious than his father in the pursuit of long-range missiles and nuclear weapons, even in the face of warnings from China. Proponents of military strikes argue that North Korea crossed a line with its latest test and must be stopped at all costs. Opponents argue that North Korea repeatedly lies about its missile capabilities and that the we should let other countries in the region, such as China and South Korea, address this issue.
In March 2015, Yemeni President Abdu Rabbu Mansour Hadi was removed from office during a civil war with the Shiite Houthis movement. The Houthis were led by former President Ali Abdullah Saleh who was removed from power during the 2011 Arab Spring. Neighboring Sunni Saudi Arabia viewed President Hadi’s removal as a threat and responded by conducting airstrikes against the Houthi’s in Yemen. Saudi Arabia’s allies, including the U.S., U.K. and Egypt, suspected Iran was behind the Houthi uprising and responded by providing military aid to the Saudi armed forces. The United Nations declared the airstrikes a violation federal law after several hundred civilians were killed in the first month of the airstrikes . Proponents of the intervention, including Secretary of State John Kerry, claim that the Houthis are being supported by Iran and U.S. intervention is necessary to maintain the balance of power in the region. Critics argue that the U.S. should not be involved in a conflict which has killed hundreds of innocent civilians.
In January 2014, 102 measles cases linked to an outbreak at Disneyland were reported in 14 states. The outbreak alarmed the CDC, which declared the disease eliminated in the U.S. in the year 2000. Many health officials have tied the outbreak to the rising number of unvaccinated children under the age of 12. Proponents of a mandate argue that vaccines are necessary in order to insure herd immunity against preventable diseases. Herd immunity protects people who are unable to get vaccines due to their age or health condition. Opponents of a mandate believe the government should not be able to decide which vaccines their children should receive. Some opponents also believe there is a link between vaccinations and autism and vaccinating their children will have destructive consequences on their early childhood development.
Nuclear power is the use of nuclear reactions that release energy to generate heat, which most frequently is then used in steam turbines to produce electricity in a nuclear power station. In the U.S. 100 nuclear reactors provide 20% of the country's energy. Proponents argue that nuclear energy is now safe and emits much less carbon emissions than coal plants. Opponents argue that recent nuclear disasters in Japan prove that nuclear power is far from safe.
Currently, GMO (Genetically Modified Organism) foods in the United States are not classified differently by the FDA and do not require labeling. Although no reports of ill effects from GMO foods have been documented, advocacy groups such as Greenpeace and the Organic Consumers Association argue that past studies cannot be trusted because they were sponsored by pro-GMO companies and do not measure the long-term effects on humans, the environment, and nature. Opponents argue that labeling adds an unfounded stigma over organic foods and that if a nutritional or allergenic difference were found, current FDA regulations would already require a label.
In 2014 NASA received $17.6 Billion in funding from the U.S. government. This represented .5% of the of the $3.4 Trillion budget last year and 35% of total spending on academic scientific research in the United States.
Since 2011, twelve states have passed laws that require a photo identification to vote. Supporters argue that ID’s are needed to increase confidence in elections and prevent voter fraud. Critics argue that voter fraud rarely exists and that ID requirements are intended to suppress turnout by economically disadvantaged voters.
The United States Electoral College is the mechanism established by the United States Constitution for the indirect election of the President of the United States and Vice President of the United States. Citizens of the United States vote in each state at a general election to choose a slate of "electors" pledged to vote for a party's candidate. The Twelfth Amendment requires each elector to cast one vote for president and another vote for vice president.
In most countries, suffrage, the right to vote, is generally limited to citizens of the country. Some countries, however, extend limited voting rights to resident non-citizens.
A tax return is a document which states how much income an individual or entity reported to the government.
In the U.S. a citizen may give $2,700 per election to a federal candidate, $5,000 per year to a PAC, $10,000 per year to a State or local party committee and $33,400 per year to a national party. Citizens and corporations may give unlimited amounts to a Super PAC. A Super PAC is freed from traditional campaign finance laws as long as it does not fund a candidate or campaign or coordinate directly with a campaign how to spend donations.
The U.S. constitution does not prevent convicted felons from holding the office of the President or a seat in the Senate or House of Representatives. States may prevent convicted felons candidates from holding statewide and local offices.
Currently, federal election law prohibits political candidates from knowingly soliciting, accepting or receiving donations from foreign nationals or entities under any circumstances. However, a loophole exists where foreign nationals or entities can hire lobbyists to meet with or donate directly to politicians to persuade them to vote favorably for the foreign interest.
Currently, the “Honest Leadership and Open Government Act” which was signed by President George W. Bush in 2007 bans former senators and top executive branch officials from becoming lobbyists for two years and they leave the government.
Australia currently has a progressive tax system whereby high income earners pay a higher percentage of tax than low income tax. A more progressive income tax system has been proposed as a tool towards reducing wealth inequality.
The federal minimum wage is the lowest wage at which employers may pay their employees. Since July 24, 2009 the U.S. federal minimum wage has been set at $7.25 per hour. In 2014 President Obama proposed raising the federal minimum wage to $10.10 and tying it to an inflation index. The federal minimum wage applies to all federal employees including those who work on military bases, national parks and veterans working in nursing homes.
In 2014 the U.S. Senate blocked the Paycheck Fairness Act which would make it illegal for employers to pay unequal wages to men and women who perform the same work. The goals of the act were to make wages more transparent, require employers to prove that wage discrepancies are tied to legitimate business qualifications and not gender and prohibiting companies from taking retaliatory action against employees who raise concerns about gender-based wage discrimination. Opponents argue that studies which show pay gaps don’t take into account women who take jobs that are more family-friendly in terms of benefits rather than wages and that women are more likely to take breaks in employment to care for children or parents. Proponents point to studies including a 2008 census bureau report that stated that women's median annual earnings were 77.5% of men's earnings.
5 U.S. states have passed laws requiring welfare recipients to be tested for drugs. Proponents argue that testing will prevent public funds from being used to subsidize drugs habits and help get treatment for those that are addicted to drugs. Opponents argue that it is a waste of money since the tests will cost more money than they save.
The U.S. currently levies a 35% tax rate at the federal level and an average tax of 4% at the state and local level. The average corporate tax rate worldwide is 22.6%. Opponents of argue that raising the rate will discourage foreign investment and hurt the economy. Proponents argue that the profits corporations generate should be taxed just like citizen’s taxes.
A Universal Basic Income program is social security program where all citizens of a country receive a regular, unconditional sum of money from the government. The funding for Universal Basic Income comes from taxation and government owned entities including income from endowments, real estate and natural resources. Several countries, including Finland, India and Brazil, have experimented with a UBI system but have not implemented a permanent program. The longest running UBI system in the world is the Alaska Permanent Fund in the U.S. state of Alaska. In the Alaska Permanent Fund each individual and family receives a monthly sum that is funded by dividends from the state’s oil revenues. Proponents of UBI argue that it will reduce or eliminate poverty by providing everyone with a basic income to cover housing and food. Opponents argue that a UBI would be detrimental to economies by encouraging people to either work less or drop out of the workforce entirely.
In 2011 the level of public spending on the welfare state by the British Government accounted for £113.1 billion, or 16% of government. By 2020 welfare spending will rise to 1/3rd of all spending making it the largest expense followed by housing benefit, council tax benefit, benefits to the unemployed, and benefits to people with low incomes.
Labor unions represent workers in many industries in the United States. Their role is to bargain over wages, benefits, working conditions for their membership. Larger unions also typically engage in lobbying activities and electioneering at the state and federal level.
Proponents of deficit reduction argue that governments who do not control budget deficits and debt are at risk of losing their ability to borrow money at affordable rates. Opponents of deficit reduction argue that government spending would increase demand for goods and services and help avert a dangerous fall into deflation, a downward spiral in wages and prices that can cripple an economy for years.
Several major U.S. companies including Netflix, Chipotle and Microsoft recently began offering their employees paid sick and maternity leave. The U.S. is currently the only industrialized country that doesn’t require companies to provide sick leave to their employees. 35% of American workers do not receive any type of paid sick leave.
Capital gains are the profits earned from the the sale of stocks, bonds and properties. Investment managers pay a 15 to 20 percent capital gains tax on profits earned from their customers’ holdings. Supporters of the increase argue that capital gains should be taxed like any other income and should be raised to at least 31.5% (the average U.S. tax rate). Opponents of an increase argue that taxing capital gains will discourage investments in the U.S. economy and prohibit growth.
In May 2016, the Obama Administration announced new regulations that would increase the number of American entitled to receive time-and-a-half overtime pay. Salaried workers who earn up to $46,476 per year are now entitled to earn time-and-a-half pay when they work more than 40 hours per week. The previous regulations, issued in 2004, set the threshold for overtime pay at $23,660. The Labor department estimates that 4.2 million workers will become newly eligible for overtime pay under the new regulations. Proponents argue that the rule is necessary due to inflation and note that only 7% of salaried workers currently qualify for overtime pay in 2015, down sharply from 60% in 1975. Opponents argue that the new rules will hurt employers and incentivize them to cut their employee’s hours.
The estate tax is a tax that is levied on all property that is declared in a deceased person’s will. The tax is also known as the “inheritance tax” or “death tax.” In 2016, the estate tax rate is 40% and only applies to estates with a value greater than $5.45 million. In 2015 5,300 estates in the U.S. were subject to the tax and paid $18.4 billion in taxes. Proponents of the tax, including Hillary Clinton, argue that more estates should be subject to the tax and the threshold should be lowered from $5.45 million to $3.5 million. Opponents of the tax, including Donald Trump, argue that people who have paid income taxes their entire life should not be subject to another tax when they die.
An economic stimulus is a monetary or fiscal policy enacted by governments with the intent of stabilizing their economies during a fiscal crisis. The policies include an increase in government spending on infrastructure, tax cuts and lowering interest rates. In response to the 2008 financial crisis Congress passed the American Recovery and Reinvestment Act of 2009. The Act included increased spending on energy, infrastructure, education, health and unemployment benefits. The Act will cost an estimated $787 billion through 2019.
The North American Free Trade Agreement is an agreement that was created to lower trade restrictions between Canada, Mexico, and the United States.
In October 2016 AT&T announced that it intended to buy Time Warner Cable for $84.5 billion. The merger would create one of the biggest media companies in the history of the U.S. The announcement sparked criticism from Congressional Democrats and Republicans who argued that huge corporate mergers create monopolies which prevent competition. Since President Obama took office his administration has prevented several mega-mergers from taking place including Sprint and T-Mobile, AT&T and T-Mobile and Allergan and Pfizer. In 2015 $3.8 trillion dollar’s worth of mergers and acquisitions occurred which made it the largest year for corporate consolidation in the history of the U.S. Proponents of mergers argue that the government should not interfere with corporations and the free market should be allowed to run its own course.
The average retired federal employee receives a pension (retirement plan) of $32,824 annually. Total unfunded pension liability for all U.S. cities and counties is an estimated $574 billion. In addition to their pensions, federal employees are offered a 401(k) plus 5% matching, whereas the average private employee is offered 3 percent matching of 401(k) without pension.
A government pension is a fund into which a sum of money is added during the period in which a person is employed by the government. When the government employee retires they are able to receive periodic payments from the fund in order to support themselves. As the birth rate continues to fall and the life expectancy rises governments worldwide are predicting funding shortfalls for pensioners. In the U.S. federal, state and local governments are eligible to receive pensions.
An offshore (or foreign) bank account is a bank account you have outside of your country of residence. The benefits of an offshore bank account include tax reduction, privacy, currency diversification, asset protection from lawsuits, and reducing your political risk. In April 2016, Wikileaks released 11.5 million confidential documents, known as the Panama Papers, which provided detailed information on 214,000 offshore companies serviced by the Panamanian Law Firm, Mossack Fonesca. The document exposed how world leaders and wealthy individuals hide money in secret offshore tax shelters. The release of the documents renewed proposals for laws banning the use of offshore accounts and tax havens. Proponents of the of the ban argue they should be outlawed because they have a long history of being vehicles for tax evasion, money laundering, illicit arms dealing and funding terrorism. Opponents of the ban argue that punitive regulations will make it harder for American companies to compete and will further discourage businesses from locating and investing in the United States.
In March 2016, the Carrier air conditioning company announced it would move 1,400 jobs from the U.S. state of Indiana to Mexico. In November 2016 U.S. President elect Donald Trump and Carrier announced a deal which would keep 1,000 jobs in Indiana in exchange for
