Category Archives: Deficit

$3.4 Trillion Reasons To Not Vote Republican In November.

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According to the non-partisan Congressional Budget Office (CBO), that’s the amount tax cuts being proposed by Republicans will add to the national deficit over 10 years.

The proposed tax cuts include permanently extending the 2001 and 2003 Bush tax cuts which represent $2.3 trillion. Of course that’s just an estimate. But the CBO found that the unfunded Bush tax cuts, which primarily benefit the wealthy, added $539 billion to the deficit in 2005 alone.

On top of that deficit-ballooning idea, Republicans want to eliminate the Alternative Minimum Tax along with Estate Taxes and Gift Taxes which, according to projections, will add another $1.1 trillion to the deficit over 10 years. Again, these tax cuts are aimed at benefitting the wealthiest part of our society.

Just to be clear, the $3.4 trillion would be added to the annual deficit over the next ten years and the effect on the total national debt would be cumulative. In other words, they would likely add another $3.4 trillion to the national debt each and every decade after their passage!

In case you’ve been living in a vacuum, the people promoting these tax cuts are the very people who claim to be so concerned about adding to the deficit that they’re willing to filibuster the extension of unemployment benefits for people who are out of work.

What’s particularly fascinating about this debate is that the Republican leaders don’t think cutting revenue will have an impact on the deficit.

Senate Minority Dimwit, Mitch McConnell is on record for saying, “There’s no evidence that the Bush tax cuts actually diminished revenue. They increased revenue.”

Hmmm…if you believe that, maybe you should try this experiment at home: If your household expenses exceed your income, then look for a job with a lower salary. According to McConnell, fellow Senate Dimwit, Jon Kyl, and other Republicans, that will reduce your debt!

That’s the kind of thinking that took us from an economy that generated 22 million jobs and a budget surplus in the Clinton administration to an economy that almost entirely collapsed under the Bush administration and gave us a huge deficit.

Yeah, who wouldn’t want to put those people in charge again?

The Other Offshore Disaster.

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For more than two months, the nation’s attention has been focused on the gusher in the Gulf. But there’s another offshore disaster that has been going on for at least 50 years. I refer to the large U.S. corporations that have created subsidiaries and “headquarters” off-shore to avoid U.S. taxes.

But I found it difficult to obtain a list of the companies that have taken advantage of the loophole. Now, thanks to Ariana Huffington’s recent article on the Huffington Post, I have a better idea. In her article, she cited a Government Accounting Office (GAO) report from 2008 that showed 83 of the 100 largest publicly–traded companies in the country had operations in tax havens.

The report cited AIG, AT&T, American Express, Boeing, Chevron, and Dow to name a few. Many set up P.O. boxes in the Caymans and Bermuda. And Halliburton chose to move its “headquarters” to Dubai. That’s disturbing enough. Yet, according to the GAO, 74 of those 83 corporations received government contracts. And, of course, taxpayers were asked to rescue two of those companies (AIG and American Express) through billions in government loans.

So these companies are not only avoiding paying their fair share of American taxes. They are filling their coffers with money from taxpayers like you and me!

At a time when our national economy is struggling and when we’re engaged in two protracted wars, closing this gaping loophole would seem one of the top priorities for Congress. But that would mean that our Representatives and Senators would have to vote against some of their largest campaign contributors. Indeed, according to Ariana Huffington’s article, Washington has been trying to address the issue for nearly 50 years. But each time the issue comes before Congress, the corporate lobbyists prevail.

So while Congress debates the impact on the national debt by extending unemployment benefits for working people, they continue to permit corporations to avoid paying billions of dollars in taxes through loopholes. In fact, the latest figures available show that these corporations pay roughly $16 billion in taxes on $700 billion in foreign active earnings – a tax rate of approximately 2.3 percent!

Of course, politicians (especially Republicans) excuse such welfare by saying that corporations create jobs, and that jobs have never been more needed than now. That may be true. But where are those jobs being created? For nearly 40 years, many of these corporations have been creating more jobs offshore than in the U.S.

That being the case, what do we have to lose by forcing them to pay up?

A Tea Party Preview.

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If you had any doubts of the consequences of allowing the Tea Party to influence our elections, all you need to do is look at Arizona.  For the past several years, the state legislature has caused an already conservative state to take an extreme right turn.  Some of the most reasonable Republican legislators were defeated in the last election because they weren’t viewed as conservative enough.  And since the election, the state has completely slid into the dumpster.

To wit, the state is bankrupt, yet the wingnuts continue to cut taxes for corporations and ignore calls for closing $10 billion in corporate tax loopholes.  Arizona’s public school funding now ranks 51st out of 50 states (Washington, DC is also ahead of Arizona) yet the state continues to cut funding for public schools while, at the same time, increasing tax credits for private and parochial schools.  Tourism is a huge source of revenue for Arizona, yet the state is closing its state parks and is even considering closing its Department of Tourism.  The film industry brings millions into the state each year, yet the Arizona legislature has cut the Film Board’s budget.   

Now the state is asking citizens to vote for a temporary one percent increase in sales tax.  But, at the same time, the wingnuts in the legislature are pushing through another one percent tax cut for corporations and the wealthy!  And, if the sales tax increase doesn’t pass, the legislature is promising to make even more draconian cuts to public schools.  (One educator recently told me that the class sizes could easily exceed 50.)  Arizona even threatens to cut thousands of jobs from the Department of Public Safety.  After all, the state doesn’t really need them, since the legislature just passed a bill that allows anyone to carry a concealed weapon without a permit.  It’ll be just like the Old West with a shootout on every street and in every bar.

Still not scared? 

Then consider the state’s new immigration law.  SB 1070 has already resulted in the cancellations of at least six conventions and hundreds of hotel rooms.  The Los Angeles City Council voted to boycott Arizona which will likely have an even more chilling impact on Arizona’s film industry.  San Francisco has also voted to boycott the state.  And the Mexican government has put out a travel warning for Arizona.  If you don’t think that’s meaningful, consider the fact that Mexico represents the single largest source of tourists to the state – a source that also represents tens of millions of dollars to state revenue. 

Most recently, the Arizona legislature has passed a bill that bans ethnic studies classes in public schools (equating them with treason) and forbidding any teacher with a strong accent from teaching English.  And the legislative session hasn’t ended yet!

Yes, this is the future promised by the Tea Party.  God save America!

© LaMaster Propaganda – All rights reserved.

Arizona Paranoia.

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According to angry white people, all of the nation’s problems are the fault of those with brown or dark skin.  After all, weren’t they the ones who (with the help of ACORN) voted President Obama into office?  And isn’t it the brown and dark-skinned immigrants who are taking their jobs and saddling taxpayers with the cost of the resulting social problems – everything from food shelves to health care.

If only it were that simple, we could round up all the illegals and send them back to Mexico.  Indeed, that’s what the dimwitted Arizona legislature is attempting to do.  The Republican-dominated legislature has created open season on anyone who looks like a Mexican.  As I read the bill, there are even severe penalties for American citizens who are found to have given aid and comfort to illegal immigrants, including their own families. 

Let’s say a Mexican couple entered the country illegally in the 1920s. (You don’t really believe this is a recent problem?  Do you?)  And let’s say that couple had children who became American citizens and grandchildren who are American citizens.  As I read the law, in Arizona it will soon be a serious crime for the grandchildren to drive their grandparents to church.  In addition, it appears that it will be a crime for the children to provide home care for their parents.  Indeed, it appears that it will be a crime for anyone to not report an undocumented alien, even if that alien is a family member.

Does anyone really think this is the solution to the immigration problem?

What is seldom reported is the fact that U.S. companies continue to hire illegal immigrants.  A recent survey of Arizona corporations found that more than 50 of the 80+ companies surveyed admitted to hiring undocumented workers.  (This despite the fact that Arizona had implemented a law designed to prevent such hires more than a year ago.)  In addition, many of the undocumented workers are hired to work as day laborers or as housekeepers for wealthy families. 

It’s one of those Palinesque wink, wink arrangements.  We want the cheap labor illegal immigrants provide, but we don’t want to admit it. 

Fact is, immigration is one of the most complicated issues our nation faces.  And the wingnuts have nothing to offer but simplistic solutions.  The Arizona bill, if it ever goes into effect, will fail.  Of course, Republicans in Congress who have been stonewalling immigration reform for years are now blaming the Obama administration.  In a desperate attempt to woo Tea Party votes, the former maverick and current wingnut, Senator McNasty, and his wingman, Senator Kyl, are calling for thousands of troops and fences to seal our border. 

How ironic that they demand smaller government and whine about deficits, but they’re willing to spend billions, likely trillions, in a futile attempt to seal the border.  Maybe they’ve forgotten that it has been tried before. 

Tell me, conservatives, how did the Berlin Wall work out?   

© LaMaster Propaganda – All rights reserved.

The Black & White Case Against President Obama

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The Tea Party members say their anger has nothing to do with racism.  Well, if their issues are big government, big deficits and corporate bailouts as they suggest, why all the anger now?  Why not aim the fury at the people who created our recession and debt?  Why not direct their fury at Ronald Reagan, George W. Bush and the Republicans who created trillions of dollars of national debt?  Why no anger against George W. Bush for drastically increasing the size of government with his Department of Homeland Security?  Why no fury against George W. Bush for bailing out Wall Street?  Why the belief that President Obama was not born in the U.S.?  Why did no one demand to see Ronald Reagan’s, George H.W. Bush’s and George W. Bush’s birth certificates?  And why were they so willing to look the other way when Richard “The Dick” Cheney was allowed to skirt the Constitutional prohibition on the President and Vice-President being residents of the same state by claiming Wyoming as his residence instead of Texas where he actually lived? 

What has this President done to generate such anger? 

Since taking office, he has brought the nation out of the worst economic times since the Great Depression.  Since taking office, he has actually lowered taxes.  Indeed, taxes have rarely been lower.  Since taking office, President Obama has rebuilt our relationships and stature with all of our allies.  He has rid the world of more nuclear weapons to protect us from terrorism.  He has certainly not tried to ban guns as the Tea Party suggests.  As a matter of fact, he signed a bill permitting guns in National Parks, an act that prompted the Brady Center to Prevent Gun Violence to give Obama an “F” with regard to gun control issues. 

Then why the Tea Party claims that President Obama is un-American, a Socialist, a Communist and a Nazi? 

What is so unique about this President to generate so much anger and hate?  Hmmm, let me think … maybe it has to do with the fact that he is part Irish.  No?  Well, it certainly couldn’t be that he is half African-American.  That would be racist, wouldn’t it?

The New Definition of Conservative.

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Upon listening to Republican economists and some of the speakers at the CPAC convention, I think I better understand their vision for America. In a word, it’s bleak. 

These people not only want to prevent health care reform and reduce national debt. They want to block any further government programs to save or create jobs. They want to allow market forces to “correct” the economy. Of course, they want to eliminate even more regulation, cut taxes and shrink government. Finally, they want to eliminate “entitlement” programs such as Social Security and Medicare.

Imagine what their vision would do for most Americans!

By most estimates, unemployment would rise to more than 15 percent. Of course, there would be no safety nets to help those without jobs or homes. Large corporations would continue to grow by swallowing weaker ones. And since corporations would be unregulated, they would not only influence Congress. They would virtually own it.

Hmmm, I always thought the definition of conservative is to preserve, save and protect. But to these people, it seems to mean quite the opposite.

What kind of country do Republicans envision?

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Given the Republican response to President Obama’s initiatives, one has to wonder exactly what the Republican vision for our nation actually is.  To try to determine that, let’s look at recent events.  If Republicans had prevailed on their opposition to the TARP bailouts of Wall Street banks, most economists believe that the entire world economy would have collapsed and we would be in the midst of a 2nd Great Depression.  Republicans argued against bailouts to General Motors and Chrysler which likely would have forced both into bankruptcy putting up to 10 million workers on unemployment.  Republicans fought the stimulus plan which, by even the most conservative estimates, has saved or created up to 2 million jobs.  And they have continued to whine about the growing deficits under Obama while lionizing Reagan for tripling our national debt.

The Republican alternative to Obama’s attempts to save our economy?  Tax cuts for the wealthy despite the fact that most economists believe such cuts would do nothing to alleviate our situation.  In fact, many feel that the tax cuts could make things worse!

Republicans have fought any form of banking regulation.  They have voted to keep the status quo on an unsustainable health care system that results in 33,000 deaths each year for lack of access.  They have voted against increasing benefits for military veterans.  Republicans refuse to allow the federal government to negotiate lower prices for pharmaceuticals as Canada and many other nations have done.  They are opposed to spending money to encourage the development of reasonable alternatives to fossil fuels.  They dismiss the international scientific community’s warnings of global climate change.  They have long stated their disdain for “entitlements” such as Medicare, Medicaid and Social Security.  They are vehemently opposed to labor unions.  They are opposed to social services for the poor, saying that they should be the responsibility of faith-based organizations.  Republican-appointed Supreme Court justices voted to corrupt our election process by permitting corporations (even those based overseas) to spend unlimited amounts of money in support of candidates who favor their positions. 

Under the Bush/Cheney regime, Republicans started two wars with no clear plan on how to win them, and no plan to pay for them.  (Indeed, they intentionally obscured the actual cost of the wars – in terms of dollars and lives.)  And they awarded billions to Halliburton and other corporations through no-bid contracts. 

The Democratic Congress has shown a decided lack of unity and will.  But based on the Republican record, why would anyone want to return the Republican Party to power?  Or their even less-pleasant brethren – the members of the Tea Party?

The next big crisis facing Democrats.

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For 30 years, the Grand Old Party of Corporations has fought to end welfare for the poor (although corporate welfare is just dandy), labor unions, workers’ compensation programs, public schools, and entitlements such as Medicare and Social Security.  And recent events have presented Republicans a golden opportunity to permanently undo 80 years of progressive initiatives. 

State income has plummeted as a result of the Republican-created financial collapse.  Now those states controlled by right-wing conservative legislatures are capitalizing on the recession by slashing budgets for public education, health care for at-risk children, and pensions.  And you can bet the wingnuts are going to blame it all on President Obama and the Democratic-controlled Congress. 

In my state of Arizona, a Republican-controlled legislature has slashed millions from an education system that already ranks 49th in the nation.  (Following the Republican philosophy of wresting control away from government, the state offers huge subsidies for private and parochial schools.  Of course, those subsidies are unaffected by budget cuts.)  The legislature is also closing state parks even though they are a necessary part of the state’s 2nd largest industry – tourism.  The legislature is even considering selling all state-owned buildings and leasing them back as part of long-term agreements which will pay the purchasers billions of taxpayer dollars.  But, according to Republicans, they’re only doing what Democrats won’t – balance the budget. 

Never mind that, for years, Republicans have cut taxes for the wealthy.  Never mind that the legislature refused to allow the Republican governor to place a temporary sales tax increase on the ballot.  It’s a perfect political climate for Republicans to orchestrate this charade. 

I hope voters are informed enough to make Republicans pay for it by voting for progressive candidates.  But since many rely on the Faux News Channel for information, they’re more likely to make matters worse by voting for the Tea Party, instead.

If you think herding cats is difficult, try Democrats.

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The election of a Republican to fill Ted Kennedy’s seat in the U.S. Senate has clearly illustrated the disarray of the Democratic Party.  Despite holding the White House, the House of Representatives and a super majority in the Senate, Democrats have been either unable or unwilling to accomplish much of the agenda they campaigned for. 

Faced with a financial industry so greedy that it nearly caused the collapse of the international economy, Democrats have failed to institute new regulations to prevent future problems.  Faced with millions of unemployed, they failed to pass a stimulus bill large enough to create jobs.  Faced with mounting foreclosures, they failed to force lenders to restructure loans.  Faced with millions of uninsured and more than 33,000 deaths each year for the lack of access to health care, Democrats let Republicans and Tea Party wingnuts control the dialogue about health reform.  They publicly cut deals with insurance companies and big Pharma.  They allowed a few Congressmen to include more restrictive language on abortion.  They allowed one senator to kill the public option despite polls showing that a public option is favored by a significant majority of Americans.  And they allowed another senator to hijack the bill in order to gain major concessions for his state. 

It’s not that our nation’s current problems were created by Democrats.  They weren’t.  And it’s true that the Republicans, whose policies led to the problems, were determined to block any initiatives by Democrats.  But the fact remains, in one full year, Democrats were unable to solve them.  And given the fleeting attention spans of most voters, in their minds, these ongoing problems are now the fault of Democrats.   

So where does the party go from here? 

In my opinion, Democrats must take a lesson from Republicans.  When it comes to legislation, Democrats must act as if they’re joined at the hip.  They must craft legislation in caucus meetings and not present it to the public until they can all support it – without fear of defections.  They must better present their ideas to the public and explain their benefits.  And they must learn to be as ruthless as Republicans in trying to achieve their goals.  No more “gangs of six” that include Republicans trying to undermine the legislation.  Democrats can make it clear that they will work with Republicans, but only if Republicans are willing to work with them.

And the President must change his approach.  Although he obviously envisions himself a modern-day Lincoln who will pull together both parties and the nation, he must finally realize that you can’t achieve bi-partisanship when there is no “bi.”  He must realize that Republicans are serious about their desire to see him fail.  He must become more involved in legislation and more clearly set a path for his party.  He must become the leader we voted for. 

Failing these kinds of changes, we’re likely to see Democrats, and the nation, flounder.  If that happens, voters will believe the Democratic Party is incapable of governing.  And they will be right.

Who’s really at fault for our nation’s predicament?

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Who is more at fault for the problems that face our nation?  Republican candidates?  Or the voters who are deceived into voting for them?  During campaigns, Republican candidates take a populist tone.  They talk about the issues that are important to ordinary Americans such as opportunity and personal freedom.  But when they are elected, they tend to focus almost exclusively on issues designed to benefit the elite. 

Despite promises of fiscal responsibility, Reagan and George W. Bush dramatically increase the deficit and national debt.  Despite promises of small government, Bush created the huge bureaucracy that is Homeland Defense.  And the Republican mantra of lower taxes has really proven to be nonsense.  They may occasionally offer a token tax cut for the middle and lower class, but the real cuts are reserved for the wealthy.   Republicans talk about creating jobs then make it easier for corporations to eliminate collective bargaining and ship jobs oversees.  They talk about getting government regulations out of the way then watch corporations create new scams to abscond with more of their consumers’ money. 

Why, then, do voters fall for these false promises over and over?  Often it’s because they aren’t curious enough to really examine the party’s platform and hold the candidates accountable.  And all too often it’s because they focus on a variety of wedge issues such as abortion, terrorism and same-sex marriage.  They fall victim to a sort of 3 card monte.  They’re mesmorized by the Republican distractions of fear, anger and religion.

How many lower and middle class voters actually benefited from Reaganomics?  How many benefited from George W. Bush’s “compassionate conservatism?”  I submit that instead of jobs, increased salaries and tax cuts, they were rewarded for their votes with war, massive deficits and decreased prosperity.  But the real Republican constituency consisting of CEOs, bankers, investors, oil executives and defense contractors is doing just fine, thank you.