Category Archives: Taxes

VA Problems A Product Of Our Never-Ending Wars.

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Since taking office in 2009, President Obama has been confronted with an extraordinary list of problems: Two wars, a failing economy, the collapse of our largest financial institutions, a massive number of home foreclosures, a failing auto industry, high unemployment, rising deficits and rising debt. Those are just the problems he inherited the day he took office. In addition, he’s faced a multitude of other issues: An obstructionist and do-nothing Republican Party, a racist and increasingly angry Tea Party, a porous southern border, belligerent leaders in Israel and Russia, rising poverty, and a vanishing middle class.

You may not believe the President has done enough to solve our problems but, in reality, his performance has been nothing short of remarkable. Without the leadership of his administration, we may have experienced a second Great Depression – a fact that is clearly spelled out in Timothy Geithner’s new book Stress Test. Of course, Teapublicans don’t want to talk about that. They call it the “Blame it on Bush Syndrome,” and they hold Obama responsible for all the problems he inherited.

Similarly, the Obama administration is now being blamed for delays at some VA health facilities. Yet VA problems existed long before Obama took office. Indeed, he appointed General Eric Shinseki to fix the problems and reduce delays. By most accounts, Shinseki has had some success. But no one can hope to change a health system that serves more than 8.6 million veterans overnight. The problems could be the result of a few incompetent bureaucrats. If so, they must go.

A larger issue is what led to the crowding at VA hospitals…the willingness of too many politicians to send our youth to war for questionable reasons! When we continue to pursue military actions around the globe, we are going to create more veterans – many with serious and expensive-to-treat health issues. Yet it seems that Congress has not fully recognized that reality when it comes to the VA budget. It’s estimated that, in addition to the trillions spent on the Iraq and Afghan wars, the cost of treating our wounded soldiers could also run into the trillions…a fact that has been little discussed.

When the Bush administration took us to war more than a decade ago, few Americans were asked to make sacrifices. Instead, Bush asked us to go shopping. And, instead of raising taxes to cover the cost of his misadventures, he actually cut them! If it weren’t for the yellow ribbons, ribbon decals on cars, and the obligatory “thank you for your service” statement recited to anyone in uniform, there would have been little indication that we were at war. The Bush administration controlled the news media by forcing reporters to be imbedded in military units. It even banned news media from photographing the flag-draped coffins of those killed in war.

Out of sight…out of mind.

The lesson in this is that if you want to go to war, you better be willing to pay the price. Everyone should be asked to make some sacrifices. Everyone should be asked to pay for the sacrifices of those wounded in war. And those costs should be made abundantly clear. Indeed, such costs are the only real deterrent to cause voters and politicians to hesitate before waving the flag, beating the war drums and sending our troops into yet another foreign conflict.

20 Things President Obama Should Do After The Mid-Terms.

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In no particular order of importance:

  1. Normalize relations with Cuba.
  2. Support Palestine for UN membership.
  3. End the War on Drugs and begin the process of decriminalization.
  4. Renew calls for a Public Option as part of the Affordable Care Act.
  5. Negotiate pharmaceutical prices as all other industrialized nations have done.
  6. Rally Americans to aggressively deal with Climate Change.
  7. Push for an end to mandatory sentences for non-violent criminals.
  8. Order the Justice Department to aggressively pursue criminal charges against the banksters who collapsed our economy in 2008.
  9. Order the Justice Department to aggressively pursue charges of war crimes against those involved in the CIA’s torture program.
  10. Deny permission for TransCanada to build the Keystone XL pipeline.
  11. Push for changes to the tax code to prevent the use of offshore tax havens by individuals and corporations.
  12. Push the IRS to prevent 501c3s and 501c4s from engaging in politics.
  13. Aggressively push for immigration reform.
  14. End drone assassinations except as an absolute last resort to deal with terrorist leaders and increase transparency.
  15. Order the removal of ALL American troops from Afghanistan.
  16. Offer government-backed, interest-free college loans based on need.
  17. Demand that Congress pass common-sense gun control measures, including universal background checks and a ban on large ammo clips.
  18. Order the Justice Department to create uniform voting rights across all states.
  19. Aggressively push for an end to human trafficking.
  20. Order the Department of Defense to reduce its reliance on private contractors.

Nevada Rancher Is Just Another Ungrateful “Taker.”

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The Tea Party and those who believe states’ rights trump the federal government have hailed Nevada rancher Cliven Bundy as a “freedom fighter” and an “American hero” for standing against the Bureau of Land Management and the National Park Service. But the fact is, by the definition of Mitt Romney, he’s just another one of the 47 percent – a “taker” who relies on federal government largess.

As a cattle rancher, Bundy benefits from numerous federal subsidies to support his cattle business. He and other ranchers who graze their cattle on public lands receive $100 million annually in direct subsidies. Such ranchers receive federal subsidies for losses from drought. They are eligible for low-cost federal loans. Their private properties are taxed at a lower, agricultural rate. There are government subsidies to provide emergency feed for cattle stranded by blizzard. Even the fences needed to contain the cattle are built with public money.

Worse, like most ranchers who graze their cattle on public lands, Bundy is greatly contributing to the destruction of our ecosystem. According to Mike Hudak, author of Western Turf Wars: The Politics of Public Lands Ranching, “Among 1,207 plant and animal species that are endangered, threatened or proposed for listing, 22 percent are affected by cattle grazing…” This is especially true on arid lands such as those used by Bundy. Such grazing damages the area’s water supply. Cattle pollute streams, destroy riparian and forest habitats for wildlife, and cause erosion.

In addition, such ranchers are often given permission to kill predators the ranchers believe are preying on their cattle. (The Arizona legislature is currently considering a bill that would allow ranchers to kill one or more of the 90 Mexican wolves that remain in the wild.) Yet, although ranchers like Bundy have a large impact on sensitive lands, they have little impact on our food supply or our economy. They represent only 2% of America’s cattle producers and only 2.8% of the nation’s beef supply.

Despite the consequences, the BLM continues to make public lands available to ranchers for a modest annual grazing fee…a fee that Bundy has refused to pay for more than 20 years. As a result, Bundy now owes more than $1 million for unpaid grazing rights. Bundy’s only defense for his refusal to pay is that the government changed the grazing rules in order to protect an endangered tortoise. He refuses to accept the government’s authority to make changes, saying his family has grazed cattle on those lands since the 1800s. So what? Native Americans hunted on those lands for many thousands of years. Should that give them the right to hunt Bundy’s cattle? My ancestors farmed in Iowa, Missouri, Kentucky and Maryland for generations. Does that give me the right to take produce from those lands without compensating the current owners?

Even after the BLM was awarded judgments by the federal courts, Bundy still refused to pay. As a last resort, BLM officials finally decided to seize Bundy’s cattle by removing them from federal lands and holding them until Bundy made restitution. Not surprisingly, Bundy and his government-hating friends went nuts. (Well, that’s not entirely true. They likely were already nuts.) Militias and Tea Party parasites swarmed to the area to make a stand against such “injustice.” They came armed with semi-automatic pistols and assault weapons. They waved their American flags and their “Don’t Tread On Me” flags. They screamed and shouted. They blocked roads. They threatened and assaulted BLM officials.

Never wanting to miss a good photo op and the opportunity to denounce our government, Tea Party congressional and legislative officials from several Western states, such as Arizona Rep. Paul Gosar, flocked to the area to rally the resistance. Afraid that the incident might lead to more violence, the BLM eventually released Bundy’s cattle, packed up and left. The question is: Why? Not only did Bundy act in contempt of court, his gun-wielding militia friends are guilty of transporting weapons across state lines in support of civil disorder. Should other American citizens be allowed to defy the law by threatening violence? What message does this send to the more than 18,000 other cattle owners who pay for permits to graze their cattle on public lands?

Imagine what would have happened had the Occupy Wall Street crowds armed themselves with assault weapons and refused to obey orders. Do you think the local, state and federal agents would have shown such restraint? Would government officials show such restraint when confronted by a group of armed individuals who refuse to allow the arrest of an individual guilty of other crimes, such as drug sales, especially in a minority neighborhood? Would Fox News, Americans For Prosperity and the Tea Party support them?

You know the answer.

All Men Are Created Equal?

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That’s what our Declaration of Independence stated. But it wasn’t true. In fact, African-Americans were considered three-fifths of a person and held in slavery for nearly a hundred years longer. Native Americans were slaughtered and herded onto reservations in order to steal their land. Chinese-Americans were virtually enslaved to build our railroads. And women were denied the right to vote for nearly 150 years.

Even today equality still does not exist.

People of color are many times more likely to live in poverty and to be imprisoned. Gay and lesbians are only now beginning to win equal rights to marry those they love. Women are paid less for doing the same work as men. And, according to some, the plight of the wealthy is even worse. They claim to be victims of their own success and good fortune – that they are victims of class warfare. Some have even likened their plight to the Jews prior to the Holocaust.

Hmmm….

The wealthiest one percent of our population owns an overwhelming percentage of the wealth in the US yet, thanks to loopholes, they pay a smaller percentage of their income in taxes. They invest large portions of their wealth in offshore tax havens. They use their wealth to buy influence and access to government. They are even treated differently by our courts. The Supreme Court ruled that money equals free speech, so they can speak more loudly than anyone else. (In fact, the Koch brothers are now using their money to drown out the voices of ordinary citizens.) And if they break the law, they are seldom punished.

You may remember the case of the Texas teen found to be suffering from “Affluenza.” Despite the fact that he killed four people as the result of drunk driving, he was “sentenced” to an exclusive, and expensive, rehab facility.

Now there is the case of a duPont heir who was given probation for raping his three-year-old daughter because the judge decided that he “wouldn’t do well in prison.” Wouldn’t do well? Who does? When have you ever heard of a case in which a court was concerned that a poor person might not do well in prison? Some celebrate Sheriff Joe’s “Tent City” which imprisons ordinary citizens in tents without heat or air conditioning; with no toilets or running water; with punishments of bread and water; with two vegetarian meals a day (Sheriff Joe recently decided that even his notorious green baloney sandwiches are too expensive and cutting into the profit margins of his wife’s food service business). Has any court ever voiced concern that a convicted felon might not do well there? No…more like HELL NO!

Prisoners in Tent City have died from the heat without repercussions to Sheriff Joe or the facility. Yet no court has worried that other prisoners in the facility “wouldn’t do well.” Such concern is only voiced for the very wealthy on the rare occasions their highly-paid attorneys fail to get them acquitted.

All men created equal? It was a nice sentiment by Jefferson and the Founding Fathers. But it’s still only a dream.

We Can’t Afford That Anymore.

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Whenever someone proposes rebuilding our crumbling infrastructure, improving schools, funding research for chronic diseases, helping the unemployed, treating the mentally ill, paying pension obligations to public employees, etc., our politicians are quick to say that we can’t afford those things anymore.

Say what? The richest nation on Earth can’t afford to meet the needs of its own citizens?

In reality, it’s not that the US lacks the money to do these things. The federal budget for FY 2014 is $6.3 trillion and, for most Americans, our tax rates as a percentage of income are near all-time lows! So it’s not a lack of money. It’s a matter of priorities. We always seem to have money for military hardware and military interventions around the globe. It’s estimated that the wars in Afghanistan and Iraq will cost $6 trillion. It costs us $2.1 million per year to maintain just one soldier in Afghanistan, and current plans call for leaving up to 20,000 troops in Afghanistan after our “withdrawal.” Yet, some of the biggest budget hawks in Congress are calling for a larger presence in Afghanistan, military intervention in Syria, as well as confrontation in Crimea and the Ukraine. Some even hint at war with Iran.

Is it any wonder that we can’t afford to maintain our own nation?

These same budget hawks voted to dramatically expand funding for the F-35 jet fighter which is years behind schedule and hopelessly over budget. They even added funding to build more Abrams tanks, despite the fact that neither the Army nor the Marine Corps want them. As a result of such decisions, we will spend $820.2 billion on defense in FY 2014, not including Homeland Security. This money is not needed to defend our nation. It’s needed to maintain the American corporate empire; to maintain US control of resources in remote corners of the world; to maintain US access to Middle Eastern oil deposits; to maintain corporate access to global markets and to open new ones; to maintain massive profits and executive compensation.

Yet studies show that most Americans would rather bring our troops home. They would rather rebuild our own nation than one we bombed into submission. So why don’t our Congressional representatives listen? Why do so many continue to vote against the will of the people?

The answer, in a word, is money.

Large corporate interests take money from ordinary, hard-working people through various forms of scams and corporate subsidies. (You’ll find a great example detailed in a Rolling Stone article by Matt Taibbi linked here.) This leads to increased profits. The corporations then give a portion of that money to the election campaigns of politicians in order to buy access and influence. In return, those politicians pass laws to benefit the corporations. And the cycle starts all over again.

On the rare occasions when the politicians take their hands out of the pockets of their corporate sponsors, they pass laws to deregulate industries; to render the EPA and other regulatory agencies impotent; to increase welfare for large corporations while cutting their taxes; to privatize prisons, schools and public pension funds; to cut funding for parks, mental health facilities, public universities and public schools; to redirect taxpayer money to Wall Street hedge funds. All the while, they blame the nation’s resulting economic problems on labor unions, the unemployed and the working poor. To distract the public from their crimes, these fraudster politicians tell us that their actions are necessary to cut debt and create jobs.

What they don’t say is that the only jobs they’re concerned with are their own.

Unreasonable Trade-Offs.

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After seeing a headline by David Suzuki “Trading Water for Fuel is Fracking Crazy,” I started thinking about all of the trade-offs we’re being asked to make.  Yes, as Suzuki points out, we are being asked to trade the purity of fresh water in our aquifers that took hundreds and thousands of years to accumulate for the profits of gas and oil companies through the use of toxic chemicals for fracking.

And that’s only one of the trade-offs we’re being asked to make in order to benefit big business.

We’re being asked to trade the beauty of the Appalachians and the area’s pristine waters for the profits of the coal industry through the use of mountaintop removal mining. We’re asked to trade the natural taste and nutrition of fresh fruits and vegetables for the profits of Monsanto, Walmart and large agribusiness companies by allowing the increased use of herbicides, pesticides, fertilizers and GMO (Genetically Modified Organisms) seeds. We’re asked to trade the effectiveness of life-saving antibiotics by allowing large cattle feeders, hog growers and poultry growers to increase profits by adding antibiotics to animal feeds.

In order to increase profits for manufacturers, we’re asked to purchase products made overseas that could be made by workers in the US. So that large corporations can pay employees less than a liveable wage, we are asked to help their employees with food stamps, child care and other safety net programs. In order to increase the profits of corporations, we are asked to lower their income taxes and increase ours.  In order to help billionaires avoid paying income taxes, we are asked to give them a large array of tax breaks, including greatly reduced capital gains taxes.

And, in what is probably the most questionable trade-off of all, we are asked to ignore the very real long-term consequences of climate change for the short-term profits of the fossil fuel industry.

All of these trade-offs and their consequences are avoidable. We simply need the will to change the way we allow corporations to operate. We should demand that they pay for all of the costs of their actions. And that the cost of government subsidies, including the costs to our environment and our health, be included in corporate expenses.

In other words, if corporations truly are people as the US Supreme Court has ruled, we should hold them accountable for their actions.

The Politics Of Division And Deception.

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For many years, the GOP has used so-called “social” issues, such as proposed anti-abortion legislation and “sanctity of marriage” laws to divide the voting populace and fire up their base. The Democratic Party has focused on issues like social safety nets, minimum wages and availability of health care. And the debate has left our government largely paralyzed.

In some ways, arguing about the issues that divide the rank and file of the two political parties is akin to rearranging deck chairs on the Titanic. It’s not that the issues aren’t important. But compared to other issues, they are mere distractions…the political equivalent of a con artist bumping your shoulder while picking your pocket.

The con artists are working for large, multinational corporations and the very wealthy. In order to grow and thrive, these companies need two things: A plentiful supply of natural resources and cheap labor. Over the course of history, those needs have led the wealthy to finance exploration, nations to build wide-ranging empires, and corporations to destroy collective bargaining movements.

Following World War II, the desire for access to oil, rubber, timber, tin and other resources led the British, the US and the Soviet Union to attempt to divide much of the world culminating in the Cold War. The desire to acquire resources led us into conflicts in the Caribbean, Central America, South America, the Middle East and Southeast Asia. It was the cause of the Spanish-American War, the war with Japan, the war in Vietnam, and the war in Iraq. It led our CIA to orchestrate the overthrow of elected leaders in Brazil, Chile, El Salvador, Honduras, Indonesia, Iran, Iraq, Nicaragua and elsewhere.

Similarly, the need for cheap labor led mining companies to create company stores and to build entire towns designed to trap workers into becoming hopelessly obligated to the owners. It caused companies to hire thugs to brutally beat striking workers. It led to shooting wars between corporate interests and labor unions. More recently, it led corporations to move factories to Southern “right-to-work” states then on to Mexico to China to India, Pakistan and Sri Lanka.

The executives behind these actions aren’t evil. They’re just doing business. They claim that it’s not their responsibility to worry about social or environmental problems. They believe that their only responsibility is to increase the return on investment for shareholders by decreasing costs and increasing productivity. To them, picturesque mountains merely cover the precious minerals they covet. Pristine forests are merely the lumber needed for construction. Impoverished people in distant lands are simply motivated laborers.

And so it goes.

While we argue over the debt ceiling, corporations and billionaires quietly park their profits in off-shore tax havens then lobby for a tax “holiday” that will allow them to bring the money home at greatly reduced tax rates. While we argue over extending unemployment benefits, corporations lobby for more subsidies and government giveaways. While we argue over food stamps, corporate agribusinesses pocket billions in taxpayer funds. While we argue over Social Security retirement benefits, too-big-to-fail financial institutions steal trillions from 401ks, IRAs, pension funds and foreclosed homes. At the same time, all of these corporations continue to lobby for reduced government regulation and oversight.

It is because of our inattention that a mere 85 individuals now own as much wealth as half of the world’s population…the equivalent of the populations of China, India, the United States, Indonesia and Brazil combined. It’s why unemployment has grown and why most salaries have not. It’s why a few corporations now control most of our food supply. It’s why those same corporations are able to poison the food supply in search of ever larger profits. It’s why the incidence of chronic disease has skyrocketed despite government-funded technology and research that give us the ability to end it. It’s why our climate is rapidly changing while we continue to subsidize the companies responsible for changing it.

As long as we focus on the distractions instead of the actions, things will only get worse.

Congress Versus The American People.

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Politicians, especially Republicans, are fond of saying that they have faith that the American people will always do the right thing. Hmmm…that raises a number of questions.

If politicians believe the American people are so smart, why don’t they do what the people want them to? Why have they refused to vote for universal background checks on all gun purchases when more than 90 percent of Americans demand them? Why has the House refused to support bills that would create the jobs Americans want? Why has the House delayed action on immigration reform supported by more than 70 percent of Americans? Why has the House refused to vote for equal pay for women? Why has it refused to raise the minimum wage? Why do Republicans refuse to vote for gay marriage? Why do they refuse to decriminalize marijuana? Why have they failed to vote for tax reform and equal enforcement?

Why do more than 80 percent of Americans despise Congress?

At least we have an answer for one of those questions.

An Irresponsible Corporation’s Last Resort.

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Last Friday, it was announced that the company responsible for the chemical spill in West Virginia, Freedom Industries Inc., had filed for bankruptcy protection and is in the process of selling its assets to a newly created corporation headed by (you guessed it) the former CEO of Freedom Industries. What better way for a group of uncaring, money-grubbing individuals to maintain their incomes while avoiding the consequences of their actions? Or should it be inactions? After all, the chemical tank that leaked hadn’t been inspected in decades.

Not surprisingly, the company claims that the leak is not its fault. It claims that “an unidentified object pierced the affected tank” allowing the toxic, but largely unregulated chemical to flow into the river just upstream from the City of Charlotte’s water supply; a chemical that, if ingested, causes severe diahhrea and vomiting; a chemical that, in the words of West Virginia officials, is only good for “flushing.”

By filing for bankruptcy, the company owners are hoping to protect their assets while avoiding any lawsuits from those affected by the spill and fines from the Environmental Protection Agency. To be held accountable, courts will have to find that the former owners of Freedom Industries were guilty of negligence or malfeasance (difficult charges to prove). If not, the company owners will be able to go right back to doing what they were doing…soaking up large sums of money and sticking the public with any clean-up costs.

And that’s not all.

In its bankruptcy filing, Freedom Industries admits that it owes the IRS $2.4 million in back taxes. One assumes that sum is in jeopardy if the bankruptcy court allows the owners to abscond with the company assets while avoiding any and all liabilities. If nothing else, the corporation will likely be able to diminish its tax liabilities through a variety of tax write-offs. And don’t think for a moment that this situation is unique. This has become a common strategy for corporations facing lawsuits for irresponsible activities. Indeed, the advantage of incorporating a business is to create a “corporate veil” that the owners can hide behind if and when things go bad. The belief is that, without the corporate veil, no one would take the risk of starting a business…a belief that I don’t share.

It’s this very protection that belies the conservative fantasy that corporations are people. Yes, they are owned by people and they are run by people. But articles of incorporation give owners an opportunity to simply walk away from problems when they outweigh profits. Individuals and sole proprietorships have no such protections. And, as the result of the Citizens United Supreme Court decision, owners and managers of corporations now have more influence than ever before. They can contribute to political campaigns both as individuals and as corporate officers. Given this disproportionate influence, we are likely to see many more corporations like Freedom Industries.

That’s unlikely to generate any complaints from conservatives.

Conservative idealogues may insist on personal responsibility for individuals…especially those who ar impoverished. But they have no such demands for corporations. After all, they view corporations as “job creators” and they despise government agencies responsible for regulating corporations. Moreover, most corporate political contributions will benefit conservative candidates. Conservatives wouldn’t want to give up those.

Stop Blaming Bush?

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On today’s edition of The Diane Rehm Show on NPR, a conservative asked the question, “Can we all admit that this is no longer George W. Bush’s economy?” It’s a fair question. We are, after all, about to begin the sixth year of the Obama administration. So I, for one, am more than willing to concede the point. Even though Bush’s policies crashed the economy, slashing federal revenue through tax cuts for the wealthy and leaving us mired in two unfunded wars with annual deficits in excess of $1 trillion along with massive unemployment, this is no longer Bush’s economy.

It is now quite clearly President Obama’s.

So let’s review what has happened over the past five years. To begin, President Obama signed a stimulus plan that helped stem the bleeding. He gave loans to GM and Chrysler to save the US auto industry and tens of thousands of jobs. He withdrew troops from Iraq and has promised to withdraw our troops from Afghanistan this year. He lifted American spirits by giving the order to kill or capture Osama bin Laden. He expanded health care access to millions more Americans and stemmed out-of-control inflation of health care costs.

Under President Obama, we have seen a consistent rise in GDP (Gross Domestic Product) and the stock markets. At the same time, we have seen a substantial drop in umemployment despite substantial cuts to the number of employees at all levels of government. Finally, under President Obama, we have seen the most rapid drop in the federal deficit in modern history!

And most of this has been accomplished despite a recalcitrant GOP-led House that would have us believe that the way to deal with a struggling economy is to cut federal spending and revenues. Counter to the advice of most every economist, the Teapublicans in Congress have voted against bills that would create jobs, bills that would rebuild infrastructure while interest rates are at historic lows, and programs that stimulate the economy while helping those who most need it.

So, yes indeed. This is President Obama’s economy. And it would be even better if the GOP would get out of the way!