Entries Tagged as 'Taxes'

Delaying the Inevitable – Mitt Romney

In politics, it’s important to understand the atmosphere that you’re in. Richard Nixon famously could not understand the antiwar movement and how the country had changed significantly since the mid-’50s. Mitt Romney seems to be one of these politicians who really doesn’t understand the environment in which he is working. He and his advisors need to sit down and come up with a strategy about handling the issue of his tax returns. The question is not going to go away. It doesn’t matter how mad he gets or how he tries to blow off reporters’ questions. The issue is only going to get bigger. Hell, one of his biggest surrogates (in political stature and size) is New Jersey Governor Chris Christie. Even he has called for Mitt Romney to release his tax returns. The longer he waits, the more speculation grows. “There must be something nefarious in there.” “He must be hiding something.” Personally, I don’t think that there’s anything nefarious. Mitt Romney is simply a very rich man who wants to stay rich. He has parked money in the Cayman Islands. He’s used every tax loophole he can in order to keep as much money as he can. This is what he does not want the American people to see. It is my opinion that Mitt Romney has legally used every loophole there is and has paid less than 15% of his income in taxes – legally. This is what he is hiding. Releasing his taxes changes everything for Mitt. Now, the focus is not on his message but instead on how the rich can pay a smaller percentage of their income than the average American. Will it sink his campaign? Who’s to say? What is clear is that his advisors aren’t getting through to him. He needs to figure this out and fast. If his tax returns are as bad as I think they are the American people will be infuriated.

I wish Mitt Romney lots of luck in trying to hold out. It’s a little like Don Quixote. Cute, but futile.

Finally, a tax cut Republicans hate

Nobody has accused the Republican Party of being the “tax-and-spend” party, at least since Saint Ronald of Reaganworld rode off into the sunset. The GOP mantra for at least the past 25 years has been “Hear no taxes; see no taxes; raise no taxes,” and the vaguely ideological underpinning for the party’s objection has been codified into law—political canon law. The eleventh commandment for the party of self-aggrandizement used to be, “Thou shalt speak no ill of another Republican”; but since Grover Norquist came on the scene, it has been, “Thou shalt not raise taxes…ever…on anyone…for any reason.”

Grover Norquist is the chief executive officer of Americans for Tax Reform, an outfit funded by some of the richest men and corporations in America for the sole purpose of keeping their taxes as low as possible. At their behest, Grover has turned the anti-tax mantra into a literal pledge that must be signed by every Republican candidate for any office anywhere if he or she hopes to have the support of the party’s bigwigs and moneybags. The threat is so restrictive, and so real, that even formerly moderate Republicans have signed it for fear of being “primaried”—opposed in a primary election by a candidate more right-wing than they are.

Few knew about this pledge and Norquist’s role in it until the past few years, for he is a behind-the-scenes player who managed to elude the limelight for twenty years as he developed his unchecked power; now that he has come out of his closet, he has emerged as the quiet counterpart to Rush Limbaugh, who enforces the rest of the right’s big-money, corporatocratic agenda.

That agenda has fluctuated as “family values,” “guns, gays, and God,” “right-to-life,” “intelligent design,” and “bomb, bomb, bomb Iran” and has moved and motivated the party over the past decades. But no matter what social or cultural issues have risen to the surface, anti-taxism has always been the driving force of the modern Republican party. That’s why it’s such a shock that this December, for the first time in a generation—or at least since George H. W. (George the Hapless) Bush broke his own “Read my lips: No New Taxes” pledge—the Republican party has decided to oppose a tax reduction. They actually have voted numerous times in the past few weeks to raise taxes!

This should, of course, be a remarkable turn of events in American political history. But alas, it’s only the long-delayed exposure of the underbelly of the party’s Tea-Party identity: the Republican party will oppose any tax increase, ever, of any sort, for any reason, on rich people; but they are willing and even eager to raise taxes on 150,000,000—that’s right, one hundred fifty million—working Americans in order to protect their wealthy masters from any tax increase, despite the fact that those masters are already enjoying the lowest tax rates since World War II.

The Social Security tax of 6.2 percent on employee wages and employer payrolls guarantees that both workers and their bosses pay into the nation’s retirement system. A year ago President Obama convinced the lame-duck Congress to lower the employee portion by two percent, putting approximately $1,000 in the hands of middle class Americans earning $50,000 a year. In exchange, he agreed to extend the Bush tax cuts for the wealthiest Americans for TWO years. Those tax cuts, passed by George W. Bush and a Republican Congress in 2001 and 2003, were designed to expire in 2010, but that year Republicans declared that allowing them to do so would be “a tax increase,” and therefore anathema, treason, a grave and serious sin, a crime against nature, and an eternal curse upon Reagan’s shining city on the hill (never mind that St. Ronald signed off on dozens of tax increases during his term; who cares about facts when you’re dealing with God’s younger brother?!)

That $1,000-per family tax break is set to expire December 31, and President Obama wants to extend it, even increase it by another $500, while also giving small businesses a break by offering them a reduction in what they are required to pay into the system. Just think: one hundred-fifty million Americans having an extra $1,500 each to spend would pour more than two hundred BILLION dollars into the economy next year—because the vast majority of working people have to spend everything they earn just to get by. Obama would pay for the lost revenue by requiring the few thousand families at the very top of the income pyramid to pay an extra 3.6 percent on the top of their incomes: nothing extra on the first million dollars, mind you, just on the amount they earn above that.

In response, the Republicans have done a 180-degree about-face and declared that the nation can’t afford to give working people a continued tax break. After all, if Obama is right, those shiftless, useless employees might spend it; and that would lead to an improved economy; and that would improve President Obama’s chances of being reelected in 2012; and that would go against Republican Senate Minority Leader Mitch McConnell’s avowed “number one priority”: to make sure that Obama is a one-term president. So they have voted, in lockstep as always, to let the economy collapse rather than grow, solely in order to be able to blame President Obama next November.

Finally, a tax cut the Republicans don’t like? Of course—if the money goes to you and me!

All Taxes Are Created Equal

From more than 20 years, Grover Norquist has been on a crusade to decrease income taxes. For that matter, he wanted to decrease all taxes. No matter how small the government was, it was too big. Yesterday, we found out that he was talking to a group of Republicans and took the stance that raising taxes on the middle class didn’t count as raising taxes at all. Doesn’t this once and for all prove that Republicans really don’t care about the middle class? Doesn’t this prove that this antitax crusade is all about the wealthy becoming more wealthy?

Let’s do it

Senator Tom Harkin and Representative Peter DeFazio have introduced the Wall Street Trading and Speculators Tax Act. This would impose a 0.03% tax. The point of the tax is not to affect most long-term traders. It would affect a lot of those high-frequency traders. As you know, there are some people who trade so fast and so often that they need a computer program to do the trades for them. These high-frequency traders are making money through glitches in the economic system. This new bill would help close that loophole. This would raise more than $350 billion over a nine-year period. I support this tax. Look for congressional Republicans to fight this tooth and nail.

Bill Gates supports this tax.

A short but wonky paper on the transactions tax.

Why our economy is stuck in neutral

The great former Secretary of Labor under President Bill Clinton, Robert Reich, explains why are our economy is not going anywhere.

1. Since 1980 GDP has doubled but wages have been flat. (See graph one and graph two.)

GDP in trillions

Median Income adjusted to 2010 dollars

It took me a couple of hours to figure out how to graph median income. I don’t know why it was so hard. Anyway, here it is. What do you see?

2. Almost all of the gains have gone to the super rich.

3. The power of the wealthy has driven the top marginal tax rate down since 1979.

Top tax rate is 35% but the rich pay far less

4. Our total tax receipts are 14.9% of our GDP. The last time that our receipts were this low was 1943!

5. Consumer spending equals 60% of our GDP. In order to get our economy going we have to get the middle class feeling like they can spend money again.

Perry is the newest anti-Robin Hood

So Rick Perry has released his tax plan. It isn’t as flat as Cain’s 9-9-9 plan.

Check out the nuts and bolts of Perry’s plan.

Simply put, cut benefits to the poor and then make the poor pay more in taxes. That’s Perry in a nutshell. This is a sick distortion of Christianity and the American sense of morality. Take from the poor and give to the rich. It is a sad commentary of American society that some people actually take this guy seriously. (By the way, Rush Limbaugh seems to like the plan. Surprised?)

Chris Botti and a mini-news Roundup

I’m still looking over the president’s numbers. I thought his speech was excellent. I think he struck the right tone. Now, no matter what he actually said last night, he has to take his speech and sell it to the American people. This is the key.

Authorities are still scrambling over the suspected bomb plot. The targets are, supposedly, New York and/or Washington.

That was very ugly football last night. Beautiful offense. No sign of defense.

Representative Tom Price is simply trying to get attention. These days, you need to say something outlandish in order to get media attention. Being thoughtful doesn’t get you in front of the camera. Tom Price stated that a payroll tax cut for working families is class warfare. Really? How is that exactly? By the way, his net worth is estimated to be $8.5 million.

Chris Botti became famous when he replaced Branford Marsalis and Sting’s band. This is an absolutely beautiful tune. I’ll have more news for you tomorrow.

Artist: Chris Botti
Tune: When I Fall in Love

Tax Increases of Ronald Reagan

Some in the Tea Party and some GOP hardliners would like you to believe that Ronald Reagan never raised taxes. They would like you to believe that the magnificent economy that created millions of jobs under Ronald Reagan was because of his brilliant tax cuts. As usual, the real story is far more complex.

Legislated Tax Changes by Ronald Reagan as of 1988 (h/t Bruce Bartlett)

Tax Cuts Billions of Dollars
Economic Recovery Tax Act of 1981 -264.4
Interest and Dividends Tax Compliance Act of 1983 -1.8
Federal Employees’ Retirement System Act of 1986 -0.2
Tax Reform Act of 1986 -8.9
Total cumulative tax cuts -275.3

so here’s the other side of the coin.

Tax Increases Billions of Dollars
Tax Equity and Fiscal Responsibility Act of 1982 +57.3
Highway Revenue Act of 1982 +4.9
Social Security Amendments of 1983 +24.6
Railroad Retirement Revenue Act of 1983 +1.2
Deficit Reduction Act of 1984 +25.4
Consolidated Omnibus Budget Reconciliation Act of 1985 +2.9
Omnibus Budget Reconciliation Act of 1985 +2.4
Superfund Amendments and Reauthorization Act of 1986 +0.6
Continuing Resolution for 1987 +2.8
Omnibus Budget Reconciliation Act of 1987 +8.6
Continuing Resolution for 1988 +2.0
Total cumulative tax increases +132.7

Source: Office of Management and Budget, Budget of the United States Government, Fiscal Year 1990 (Washington: U.S. Government Printing Office, 1989), p. 4-4.

GOP equals hypocrisy (Updated)

With Eric Cantor walking out of the high-level debt ceiling negotiation, I thought it’d be interesting to look back and figure out how many times the House Majority Leader and his colleagues voted to raise the debt ceiling under George W. Bush. One would figure, because they are fiscally conservative, they probably only voted to raise the debt ceiling once or twice under the eight-year tenure of George W. Bush. The GOP hypocrites raised the debt ceiling 19 times 7 times [the original number was an error, sorry. One of my commentors pointed this out. The best data that I have found comes from the Congressional Research Service.](and added over $4 trillion worth of debt) under George W. Bush and not once did they hold the president hostage to debt ceiling negotiations.

Think Progress has more:

After pushing the government to brink of shutdown last week, Republican Congressional leaders are now preparing to push America to the edge of default by refusing to increase the nation’s debt limit without first getting Democrats to concede to large spending cuts.

But while the four Republicans in Congressional leadership positions are attempting to hold the increase hostage now, they combined to vote for a debt limit increase 19 times 7 times during the presidency of George W. Bush. In doing so, they increased the debt limit by nearly $4 trillion. [Read more →]

Wednesday morning roundup

  • I just saw Hangover 2. Seriously, why didn’t I just read a couple of reviews before going to see this huge waste of time? My favorite film critic of all-time said, “If you saw that earlier film (which grossed $485 million, so you may have), there’s not much need for me to describe the plot this time. It’s the same story.” Why didn’t I read his review and simply watch the original Hangover which was funny and original? The story of guys screwing up a bachelor party isn’t original, but the story was told in an entertaining and interesting way, the first time. Hangover 2 is simply changing the place and time and giving the same actors a little different venue, Bangkok instead of Las Vegas. Huge waste of time. Don’t see the movie anywhere (in the theaters, pay per view, HBO, Netflix or DVD). See the original or, better yet, see Risky Business which is a much better film and has basically the same theme.
  • Wisconsin Supreme Court blows a huge raspberry at its lower court and overturns the lower court ruling. Not only is it okay to union bust but it is okay to skirt the rules while you do it.
  • Spiderman the Broadway play finally opened Tuesday night. I was not on the celebrity list.
  • Paul Krugman is an economist and should be forgiven for saying something with his outside voice that he should have said with his inside voice. Medicare saves money. Damn it. I typed it. Let’s just pretend that I didn’t type it and Krugman didn’t say it. Okay?!?
  • Speaking of our health, watching TV increases our risk of diabetes, heart disease and early death.
  • Capital gains taxes are on the lips of Republicans again… or, rather, still on their lips. It was multi-millionaire Herman Cain who stood on stage during the Republican debate and boldly stated that he doesn’t have enough money, that he needs more money. Let’s lower the capital gains taxes to zero so that he can take home more. Okay, so I’m paraphrasing. This is basically what Republicans have been saying for over 30 years. The problem is that the benefits of cutting capital gains taxes basically stop at the doorstep of the rich. The benefits don’t trickle down to the rest of us.
  • House Speaker John Boehner may have broken the law when he paid an outside firm to defend DOMA.
  • Former Blackwater guard sentenced to three years in jail. I’m still wondering when some of the top brass at Blackwater will be sitting for trial.
  • The Senate votes to keep tax subsidies for ethanol. Republicans are happy to cut programs that help the lower and middle classes, but they can’t cut subsidies for industry.
  • Remember, in 2008, the Republicans were always looking for someone else to get into the presidential race. In 2012, it looks like we are going to have the same thing. Right now, Republicans are looking to Sarah Palin and Rick Perry. Right now, Rick Perry is gearing up and testing the waters. I’m sure there is a good reason why he compared himself to a prophet. I just can’t think of one right now, can you?
  • Dallas Mavericks are still world champions!!

Grab Bag – Saturday morning

  • I know I haven’t talked about it. It’s really because I’m extremely nervous that the Dallas Mavericks are going to fumble this opportunity away. During the last 20 years, the Mavericks have had several extremely strong and talented teams. They’ve gone to the playoffs and, for the most part, have played extremely well. Then, they would come up against the Los Angeles Lakers or the San Antonio Spurs and wilt at crunch time. Now, in this NBA playoff run, the Dallas Mavericks have made critical play after critical play during crunch time. They have created turnovers instead of making turnovers. They are one game away from winning the NBA finals. Go Mavericks!
  • I don’t understand why politicians just can’t admit when they’re wrong. Sarah Palin was 100% wrong about Paul Revere’s ride and the purpose for it. You can spin it. You can examine it. She was simply wrong. For some reason, there are boxes and boxes of Sarah Palin’s e-mails. Boxes? This is 2011, why won’t they be put on disks? Why is anybody concerned about Sarah Palin’s e-mails?
  • Congressman Dana Rohrabacher wants our money back. He believes that Iraq should repay us for invading them. I think he should hold his breath until that happens. Craziness.
  • Strenuous exercise may protect the brain against strokes. There are hundreds of benefits of strenuous exercise, which I need to get to, and this is just one of them.
  • There’s lots of turmoil and disarray in Yemen.
  • Two common substances appear to be linked to cancer. I’m not sure that it’s a surprise to anyone that formaldehyde has been linked to cancer.
  • 10 years after the Bush tax cuts (happy anniversary) there’s no evidence that the Bush tax cuts did any of the positive things that the Bush administration claimed. Tax cuts do not pay for themselves.
  • The Anthony Wiener saga continues. It appears that he exchanged a series of Twitter messages with a 17-year-old girl. None of the messages appeared to be inappropriate. The problem is, once you open that ugly can of worms the members of the press are all over you.

25 years ago Ferris Bueller’s Day Off debuted. One of the most enjoyable movies that I’ve ever seen. Where are the actors now? If you haven’t seen it, rent it this weekend. If you have, see it again. Pure fun. BTW, I just saw Kung Fu Panda 2. Now that was a ton of fun also. I highly recommend. I took my 7-year-old grandson, but it is fun without the grandson.

The Truth about Reagan and tax rates

From TP:

President Obama met with House Republicans today at the White House to discuss ways to move forward on negotiations regarding the nation’s debt ceiling and the budget. During the discussion, talk evidently turned to taxes, and when Obama noted that taxes today are lower than they were under President Reagan, the GOP, according to The Hill, “engaged in a lot of ‘eye-rolling’“:

Republicans attending a White House meeting on Wednesday didn’t take kindly to President Obama telling them tax rates were higher during the Reagan administration. GOP members engaged in a lot of “eye-rolling,” according to a member who was on hand to hear Obama, who invited House Republicans to the White House for discussions on the debt ceiling. [...]

“[The President] made a comment like the tax rate is the lightest, even more than (under former President) Reagan,” Rep. Lee Terry (R-Neb.) told The Hill following the meeting. House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.) joked that during the meeting, “We learned we had the lowest tax rates in history … lower than Reagan!”

(The fact ) That House Republicans find this preposterous is symptomatic of the hold (that) Reagan mythology has over them. After all, for seven of Reagan’s eight years in office, the top tax rate was higher than the current 35 percent. In six of those years, it was 50 percent or more. And every year that Regan was in office, the bottom tax bracket was higher than the current ten percent.

For a family of four, the “average income tax rate under Reagan in 1983 was 11.06 percent. Under Clinton in 1992, it was 9.18 percent. And under Obama in 2010, it was 4.68 percent.” During Reagan’s time, income tax revenue ranged from 7.8 to 9.4 percent of GDP. Last year, it was 6.2 percent and is not projected to climb back to 9 percent until 2016. In fact, in 2009, Americans paid their lowest taxes in 60 years.

Republicans are very fond of saying that the U.S. has “a spending problem, not a revenue problem.” But the truth is that revenue has plunged due to the recession and to continued misguided tax cuts, and revenue needs to be raised to eventually bring the budget into balance. And Reagan knew that taxes were an important part of the budget equation. After all, he “raised taxes in seven of his eight years in office,” including four times in just two years.

We are being taxed into the stone age, another myth

Conservatives have told us over and over again that our taxes are simply too high. We pay too much. Several years back I went to see J. C. Watts speak. I’m happy to say that I didn’t have to pay that much to hear him, because he was on the tax thing. I’m paraphrasing – “When we get up in the morning we are reminded that we are paying taxes on our house. When we brush our teeth we are paying taxes on the water and toothbrush. When we kiss our spouses in the morning, there is a marriage tax. We get in our cars and there is a car tax. When we fill up with gas there is a gas tax. We are taxed to death, which, of course, bring us to the death tax.” The conservatives were standing on their feet. I’m sure that some were crying with joy that someone was feeling their pain. I felt nauseated because Mr. Watts was shoveling garbage. He was mixing recurring taxes with one-time taxes. He was mixing local, state and federal taxes all in one bag (which is a great way to get conservatives frothing at the mouth but a terrible way to move us past rhetoric and towards policy solutions).

Today our federal tax burden is less than it has been since 1950, when Harry Truman was president in. The People’s Republica of China had just been formed. The Russians had just exploded their first hydrogen bomb. GM and Ford were stable companies. That was a long time ago. Republicans would have us believe that we are paying more in federal taxes than ever. That is simply not true.

From EPI:

This diminished tax burden on the wealthiest has contributed to the historically low federal revenue levels we are seeing today, and in turn, to higher deficits. The Congressional Budget Office projects federal revenue in 2011 will total 14.8% of GDP—the lowest level since 1950. At the same time that the tax burden has shifted away from the wealthy, this same top income group has enjoyed  massively disproportionate income gains.  Between 1992 and 2007, a time in which income for the average household and top one percent grew 13% and 123%, respectively, the income for the top 400 households grew fully 399%.

Cutting to create a crisis

Gov Bobby Jindal

Some budget crisis are truly unpredictable. Something unforeseeable happens and suddenly there’s not enough money to go around. Let’s be clear, this is not what we’re seeing now. Republicans across the country have been cutting budgets, cutting taxes giving tax rebates for the last 20 years. Yet, for the most part, they have not cut spending. Sure, there’s been some window dressing a little cut here a little cut their but as a whole spending has remained basically flat. It is true that all states have suffered a reducing revenues secondary to the economic downturn. Economic downturns are predictable and should be planned for. Yet, Republicans have taken this opportunity to give away more of the taxpayers money and then asked the middle class and lower class to tighten their belts.

Yesterday, I received one of the best comments I’ve read in a long time from LucyGirl576. She is clearly from Louisiana and has been  following Governor Bobby Jindal’s budget ax for quite some time. Here’s her comment:

Since Jindal took office,he has cut taxes aleast six times, including the largest income tax cut in the history of Louisiana – a cut of $1.1 billion over five years, along with helping to speed up the elimination of the tax on business investments.

In 2008, Jindal vetoed $16 million dollars in earmarks from the state budget and then declined to veto $30 million in legislator-added spending. He vetoed over 250 earmarks in the budget, which was twice the number of such vetoes by previous governors in the preceding twelve years.

In March 2009, Gov. Bobby Jindal said he plans to back $8 million dollars in tax breaks during that year even though our state government’s financial outlook was dismal financial. The tax relief was to benefit the entertainment industry and general businesses. I guess he thought they needed the help more than the people.

Our state cannot run on tax cuts. Everything in the U.S. has gone up and taxes in Louisiana have gone down, not for the middle class but for those making more than the average person in our state. Does anyone see anything wrong with this picture? Less tax, by Jindal, has hurt our state and brought us to where we are today.

Now, Jindal wants to increase college tuition making it even more difficult for our young people to go to college. He wants to cut jobs and health services in the Department of Health and Hospitals, and he want to sell and privatize our prisons to fix the budget after he helped to cause this problem.

Selling and privatizing the prisons will not fix Medicaid or save our health services. We need to change our laws to decrease sentences, finding other ways to help people on drugs and that drive under the influence. Even helping to make our state agencies (the prisons included) go green to save energy can help us. There are other ways to take care of our budget without adding to the unemployment and food card line by cutting jobs in the Department of Health and Hospitals and Department of Corrections.

According to CREW, a group that keeps watch on responsible and ethic reports that Jindal made the top ten Worst Governors List for the following reasons:
• Prevented the public release of government records and has fought legislation to make
government more transparent
• Weakened the authority of the state ethics board
• Refused to accept federal stimulus funds to expand unemployment insurance and to fund
other important programs
• Rewarded campaign donors with government jobs and contracts
• Has been fined for ethics violations

He is fourth on the list according to CREW:
Gov. Haley Barbour (R-MS)
Gov. Donald Carcieri (R-RI)
Gov. Jim Gibbons (R-NV)
Gov. Bobby Jindal (R-LA)
Gov. David Paterson (D-NY)
Gov. Sonny Perdue (R-GA)
Gov. Rick Perry (R-TX)
Gov. Bill Richardson (D-NM)
Gov. Mike Rounds (R-SD)
Gov. Mark Sanford (R-SC)
Gov. Arnold Schwarzenegger (R-CA)

You can read their full report here.

The cuts Jindal has been making and proposed to make by helping to make corporations rich off of crime will not help the citizens of the great state of Louisiana.
Join us on April 7th in Baton Rouge at the Capital to oppose Jindals budget cuts. You can make a difference in Louisiana’s future.

Dems hold strong and no budget cuts

First, let me say I told you so. I spent the last two years (here, here and here) I have been talking about our economy and the recession. I talked about some of the causes of our financial collapse. I talked about some of the strategies for getting things turned around. I said that the government must spend money. There’s no other entity within the United States that has the power and size to be able to move our economy. Republicans, on the other hand, have been running around screaming that the government is too big. We have too much regulation and business is being strangled. It’s hard for me to figure out how business is being strangled with record profits rolling in. How can business be dying on the vine when they’re not paying any taxes? House Republicans are insisting on budget tax cuts.

The new jobs numbers are out today. There’s clearly some encouraging news. The economy made over 200,000 jobs last month. The unemployment rate is now 8.8%. Most of these jobs involve the private sector. So, conservatives can’t scream that all of these are government jobs. It is way too early to start doing the happy dance, but it appears that a thoughtful approach to economic policy is actually working.

Long-term unemployment is still a huge problem. There are still 6.1 million Americans who’ve been unemployed for more than six months. 24.5 million Americans are either unemployed or underemployed. In spite of the fact that March was one of the best months we’ve seen in this country in years (source jobs growth) the economy really needs to heat up in order to alleviate some of the pain and suffering that many Americans are feeling. If the economy continues to hire at a rate of 212,000 Americans per month it will be 2018 before the unemployment rate reaches the level that it was before the Great Recession. We’ve got work to do.

Tax cuts and budget cuts are clearly the wrong policy as the economy is beginning to turn around. We need the house Democrats and the Senate Democrats to stand strong against this budget-cutting GOP. The only reason that I can see to enact major budget cuts at this point in our economic recovery would be to stall or kill the economy before it really gets going. The GOP wouldn’t want to sabotage an economic recovery, would they?

Robin Hood was not a Republican (Update x 2)

Sometimes it helps to state the obvious. Remember that dude from lore, Robin Hood? He took from the rich and gave to the poor. He was loved by the masses. Well, today, in America, we have the reverse. We have folks taking from the masses and giving that money to the rich.

From EPI:

So, we have the tax cuts which were passed last December. They weren’t paid for. We simply took money our of the government’s accounts and gave the money to the top 1 – 2% in America. Now. that’s really cool. And to make matters worse the Republicans don’t think that giving money to the rich is bad policy. They want to double down on that policy by making it harder to be poor in this country. They want to cut services (which disproportionately benefit the poor) by billions of dollars.

Update: the attack on middle-class America should be obvious to anyone making less than $250,000 a year. Republicans have said very clearly that the reason that you are stuck in the middle class and sliding quickly into the lower class is because that you’re lazy. You simply aren’t working hard enough. This is the take-home message. Republicans are stated they want to reward those who are “working hard” which seems to be the large corporations and CEOs. Just look at the news lately, GE and Exxon Mobil, two large multinational corporations with billions of dollars in profits, are paying nothing in taxes this year. Exxon Mobil’s gross profit, according to MorningStar, is well over $100 billion for 2010. General Electric’s gross profit, again, according to MorningStar, is just under $81 billion. The fact that these two corporate giants are paying zero in federal taxes is obscene.

This is the system that we have designed. We, the American people, have signed onto tax cuts for the rich and a lump of coal for the poor. We, through our representatives, have designed a tax system that is so complex and riddled with so many loopholes that multibillion dollar corporations campaign nothing in federal taxes and it can be legal.

The middle class feels that they’re drowning in debt and taxes because their wages are stagnant. There’s no extra money. There is no savings. We need to make our system work for us. It used to work for us. We need to make it work for middle-class America, working America, again.

Update 2: Did you see this freshman congressman complaining that he is having trouble getting by on $174,000/year? I’m having trouble typing this because I’m crying for this poor freshman Congressman. The average American family is taking home approximate $42,000 per year. He is making four times what the average American is making and he is complaining about it. C&L has more.

Grab Bag Wednesday

  • It seems inevitable that a meltdown will happen at the main reactor in Japan. There’s now evidence surfacing that more than 30 years ago three people resigned or were transferred after complaining about the nuclear reactor design.
  • As if Japan does not have enough going on. A 6.0 earthquake rocked the country just yesterday.
  • The King in Bahrain has declared martial law. Look for Saudi Arabia to have a huge interest in what goes on in Bahrain. The Middle East is really starting to get ugly.
  • The Center on Budget and Policy Priorities has come up with six simple tests of any corporate tax reform. Seems to be pretty simple and straightforward. This means it will never be adopted.
  • Budgets should never be balanced on the backs of state workers.
  • Maine’s new governor is trying to pay for tax cuts by asking state workers to contribute more to their pensions. Now, where have we seen this before?
  • Secretary of State Hillary Clinton is in Egypt. I’m not exactly sure what she’s doing in Egypt besides giving the reformers a pep talk. Look for more on this soon.
  • Representative Dennis Kucinich continues to try to see Bradley Manning. He’s being blocked by the Department of Defense. I’m not sure how the Department of Defense has the legal authority to block a member of Congress from seeing a prisoner. Doesn’t sound kosher.
  • NFL Players are considering a boycott of the draft. This is getting very ugly. $9 Billion to split between players and owners… and they can’t figure it out. Don’t look for football this September.

Any thoughts? What’s on your mind?

The False Foundation Of the Conservative Tax Rant

The last several days (here and here), I’ve been dissecting this e-mail that I got from a friend of mine. The e-mail is something that we’ve all seen. It is an over the top treatise which is designed to get us emotionally charged over our tax burden. I have a few final thoughts on this e-mail.

The author of this e-mail is trying to tell us that $1 billion is just an enormous sum of money. On one hand, $1 billion is a lot of money. If the average American family takes home approximate $40,000 a year, $1 billion is 30,000 times greater than the average family’s median income. Yet, there’s over 300 million people in the United States. $1 billion is just a little over $3.33 per person. The average salary for the top 10 highest paid hedge fund managers is over $1 billion apiece. This is $1 billion per year for one man (one guy is getting paid over $2.5 billion per year). Exxon Mobil‘s quarterly income for the last quarter was $12.8 billion.

Things are expensive. We’ve seen conservatives rail against domestic spending. They talk about how spending is so wildly out of control but I have yet to see a conservative stand up and say we’re spending too much on the military. The F-22 raptor is one of our flying marvels. It is an amazing fighter jet. It is a third-generation Stealth fighter in our military arsenal. As we sit here and debate the wild spending in Congress let’s consider this third-generation Stealth fighter. No other country in the world has developed a first-generation Stealth fighter. As far as I know, no radar has been able to detect our first or second generation stealth planes yet, we continue to spend money on these technological marvels. Each one of these planes F-22 cost $187 million apiece. For $1 billion, you can have four planes. We won’t even talk about the more expensive fourth-generation F-35 Joint Strike Fighter Lightning II which is more expensive. Our nuclear aircraft carriers cost almost $200 million apiece. The budget for the Pentagon when you add in the supplemental spending on both Iraq and Afghanistan is almost $1 trillion.

We are overtaxed. This a common refrain heard from conservatives and the foundation of their anti-tax rhetoric. This refrain is basically a re-wording of Ronald Reagan’s famous, “the government is the problem.” Yet, I think that any thoughtful review of the tax code which show that our tax burden is actually less than it was 20 or 30 years ago. John F. Kennedy cut the upper tax rate from 90% down to approximate 70%. Nobody pays anywhere near this in federal income tax anymore. The average American currently pays approximately 18% of their income to the federal government. There is the myth that over 40% of Americans don’t pay any federal tax. That number is incorrect. More than 75% of Americans pay some federal tax. If you add up all of the taxes that Americans pay, this would include federal, state and local taxes, Americans pay $3.8 trillion or 27% of our gross domestic product. If you look at the 30 richest countries in the world we ranked 25th in tax burden. Only Mexico, Turkey South Korea and Japan have lower tax rates. So, it’s hard for me to believe that were overtaxed.

I know that many Americans believe that were paying more in taxes. The question is why? Why do Americans feel like the government is vacuuming up every last penny that we have? The problem is wages. Our wages have not kept up with expenses. We are paying more and making relatively less. Because we’re having more and more trouble making ends meet we start looking around for reasons why. The reason is our work is not being valued. Almost nobody is getting paid more, in absolute dollars, than they were paid 20 or 30 years ago. This is our problem in the US. We need to get a pay raise. Without a significant pay raise, conservatives will continue to whine about taxes as if that is the problem. In a nutshell, we are working harder and getting paid less for our efforts.

More on the Conservative Tax Rant

There is a lot to talk about today. I thought the President Obama’s speech was outstanding. Many people talked about it (here, here and here). I really don’t want to rehash that. Sarah Palin released an eight-minute video yesterday. The contrast between her and President Obama could not have been greater. There was also this national scene of unity in Tucson. I find it interesting that House Majority Leader John Boehner decided, in spite of a presidential invitation, not to attend. He had a scheduling conflict. He had a fundraiser to attend. This wasn’t mandatory but I think it reveals one’s priorities. I really don’t want to talk about his priorities either. I would like to go back to the Conservative Tax Rant. (see my previous post)

(And to think, we left British Rule to avoid so many taxes)

STILL THINK THIS IS FUNNY?
Not one of these taxes existed 100 years ago…..
And our nation was the most prosperous in the world.
We had absolutely no national debt….
We had the largest middle class in the world…..
And Mom stayed home to raise the kids.

We did not leave colonial rule because of “so many taxes.” Instead, we left colonial rule because of taxation without representation. Now you could argue that our representatives are not representing us anymore. I think that’s a fair argument. Who would you blame for that? It seems to me that you should blame yourself. The fact is that we aren’t involved in our political process except for once every 2-4 years where we go and vote. We are unaware of 99% of the votes that are taken in our state capitals or in Washington DC. We simply don’t pay attention.

I’m not sure that I want to go back the way it was 100 years ago. There were no cars, there were no trucks. There were no roads. If you wanted to go from point A to point B, you took your trusty horse or you rode the train. Those were your two options. Most houses did not have electricity. Most houses did not have running water. Cholera, pertussis and influenza killed tens of thousands of Americans every year. Whooping Cough, chickenpox and smallpox remained deadly diseases. Most Americans lived on farms. There was no middle class, unless you are going to count farmers as middle-class. As a matter fact, 1911 is right in the middle of the great migration into American cities. Where is the data purporting that we were the most prosperous country in the world in 1911? Maybe Britain was (having tons of colonies gathering raw materials for your factories has to be good for something), but I doubt that anyone would say that the US was the most prosperous country in the world.

America had no national debt because as a nation we were a third world country. It took us another 30 years to catch up to Britain and France. It took us two world wars before we are propelled into the international scene as the top dog.

So, the author suggests that our utopia awaits when we throw off the yoke of all of these taxes. Sweet! All we need to do to attain this utopia is to move back to the farm and start raising chickens and milking cows. Of course, you can raise cattle. This is the utopia that is being offered – no thanks. I’ll take my modern medicines, which are highly regulated and which have increased our life expectancy by more than 30 years! I’ll take my state and national highway system, which allows me to drive my taxed, highly regulated, seat belted, airbagged, safety glassed, antilock braked, far safer car all across the country. If I decide to fly across the country, there’s a high likelihood that my plane will not fall out of the sky because of regulations and taxes. If, when I get to my destination, I decide to go for a swim in the local lake or stream, there’s a high likelihood it should not spontaneously ignite because regulations and taxes have cleaned up our waters. Heck, for the most part, I can probably drink out of the lake – but I won’t.

This rant, this conservative rant is the conservative movement over the last 40 years in a nutshell. The underlying tone is that government is bad. Nothing can be further from the truth. Too much government can stifle creativity and, a favorite conservative buzzword, innovation. Not enough government can leave the citizens vulnerable to abuses by the powerful. Whether it is poison water, contaminated foods or dangerous products, government protects us from all of these.

More on this rant tomorrow.

$1,000,000,000

A friend of mine sent me this today. I will call this the conservative tax rant. (Please read the rant.) We’ve all seen multiple variations of this tax rant over the years. This e-mail is a mix of probably three or four different e-mails. I haven’t taken the time to look it up but I bet you it is so. The underlying theme throughout the e-mail is that we pay “too many taxes.” I would like to look at this from several different angles because I think it reveals the conservative mindset – do anything to make your point (including play loose with the facts) then drive it home over and over and over again until you get an emotional response.

First, deception. I have no idea when this e-mail was written. I suspect the person who sent it has no idea either. But one billion seconds ago equals a little over 31 years. If you’d like to round up, equals 32 years. 32 years ago makes it 1979. There’s a lot of difference between 1959 (which is stated in the e-mail) and 1979. I was alive in 1979 enjoying disco music (the BeeGees were hot), wearing bell bottoms and silk shirts. I was not even a twinkle in my mother’s eye in 1959. The purpose of this first section is to inflate how big one billion really is. Jesus was not alive 1,000,000,000 min. ago. Most scholars have him dying around the year 33 – 34 A.D. Remember, accuracy is not the point of this e-mail. The e-mail then launches into the fact that Louisiana Senator Mary Landrieu (a Democrat) is asking for approximately $250 billion to rebuild New Orleans. What the e-mail intentionally leaves out is the fact that Republican Senator David Vitter cosponsored the bill. What it also doesn’t mention is that the bill was never passed. The bill never left committee. It was read twice at the Senate Finance Committee. It never had a hearing. Nothing. Yet, the e-mail would have us believe that we spent $250 billion and basically gave the residents of New Orleans this money in a direct infusion.

Next, we have a laundry list of taxes. This laundry list is supposed to be so overwhelming to get you frustrated, mad, red in the face and ready for action. Let’s look at the first 10 taxes that are listed – Building Permit Tax, CDL License Tax, Cigarette Tax, Corporate Income Tax, Dog License Tax, Federal Income Tax (Fed), Federal Unemployment Tax (FUTA), Fishing License Tax, Food License Tax, Fuel Permit Tax. How many of these taxes do you pay? I’m not building a building. I don’t smoke cigarettes. I do have a small corporation and I pay corporate income tax. I don’t have a dog. I do pay federal income tax. My federal unemployment tax is minimal since I really don’t make a whole lot of money in my corporation. I don’t fish. I don’t pay a food license tax or a fuel permit tax. So, what’s the point of listing all these taxes that most of us don’t pay? The point is not for the viewer to stop and think about this rationally, it but instead of you to get mad. It’s purpose is to get you to join the “I hate taxes” association.

More later. I need to go to work.