Category Archives: Taxes

How Small Of A Government Is Small Enough?

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For years, Republicans have demanded a smaller government with limited powers. Indeed, Grover Norquist has said, “I want to shrink it down to the size where we can drown it in the bathtub.’

Okay, I get it. Republicans really hate government. But given the fact that our federal government is already the smallest in 47 years, and given that the size of our federal government ranks just 120th in the world as a percentage of GDP, when will Republicans consider it small enough to drown in the proverbial bathtub?

Exactly how small is small enough?

Roughly a third of all US federal employees are dedicated to national defense. Another 10 percent are in the Department of Homeland Security created by the Bush administration following 9/11. Yet another 10 percent are in law enforcement and prisons. According to Republicans, all of these people are necessary. In fact, Republicans constantly call for increasing the size of our military and border security!

That leaves roughly half of all federal employees to manage all of the remaining functions of government. Of those, nearly half work for the quasi-governmental US Postal Service. Do we no longer need mail service? If not, who is going to deliver your bills, your payments, your magazines, your checks? (Not everyone has access to the Internet, and it has not yet proven to be secure.)

The remaining 600,000-plus federal employees manage all other aspects of government. So what goes? Do we get rid of the IRS which collects the revenue to run our government? If so, how does the government get the money it needs to operate? Do we actually expect it to run on private donations?

Do we eliminate Social Security, Medicare, Medicaid and food stamps? Then what happens to the elderly and the poor? Do we eliminate unemployment insurance? Then what happens to those who can’t find work?

Do we eliminate our federal court system? Do we eliminate our foreign embassies?

Do we eliminate government regulators? Then who becomes responsible for food safety, drug safety and transportation safety? Who keeps banks from taking all of our money and causing a complete collapse of our economy? Who keeps corporations from defrauding our citizens, pillaging our land, dumping industrial waste into our waters and poisoning our air? Who builds our highways? Who keeps hunters, fishermen and commercial interests from “harvesting” species into extinction? Who keeps corporations from clear-cutting our forests? Who subsidizes research and our universities?

It’s one thing to say that government is too big and out of control. It’s quite another to face the reality of living in a plutocracy with corporations and the greedy allowed to completely run amok.

If Corporations Are People…

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In its Citizens United decision, the US Supreme Court ruled that corporations are people – with all of the rights of individuals. The “justices” didn’t mention the responsibilities that go along with those rights. Like the responsibility to care for your neighbors.

But, just for a moment, let’s assume that those five old men in black robes who voted in the majority were right. If corporations really were like people, one-sixth, including their CEOs, would be unable to afford health insurance. One-sixth would not have enough food to eat. They would not be able to afford lobbyists. Few would have pension plans and large investment accounts. Most would not be able to retire when they became elderly. And most would not have enough money to contribute to political candidates.

If corporations were like people, they would not be able to negotiate a plea after committing illegal acts, then pay a small fine and deny any admission of guilt. They would go to prison.

If corporations were like people, they would receive no tax-free subsidies to acquire space and land. They would have to pay property taxes on their buildings. Other states and cities would not offer them millions in incentives to relocate. All but a tiny percent would have to pay their fair share of sales taxes and income taxes.

And what if the members of Congress were like the people they’re supposed to represent?

Instead of being paid $174,000 per year, representatives would be paid an average salary of $50,502. Half would make less than $27,000 and 16 percent would live in poverty. Some would be hungry and homeless. They would have no staff to do their work for them. They would actually have to read the bills before they vote.  And they wouldn’t begin fundraising and campaigning for the next election the day after they’re elected.

We’ve come a long way from the representative government our Founders envisioned. A lo-o-o-o-o-ng way!

A Nation Of Crises.

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Every day I receive dozens of emails and letters asking me to help save the oceans, save the environment, save children, save wildlife, save food stamps, increase the minimum wage, stop voter suppression, stop global warming, stop the pipeline, stop racism, stop the attacks on women’s rights, stop the attacks on education, stop the attacks on science, demand gun control, end hunger, end poverty, etc., etc., etc…

It’s all very depressing.

Of course, these are all very real and serious issues, and the organizations asking for help are well-run and well-intentioned. They deserve our support. But I finally realized that all of the issues are related. They are all the result of corporate greed and ideological candidates supported by billionaires and big business.

Our oceans are being destroyed by greedy oil companies and by large, commercial fishing operations. Our air and water are being polluted by corporations who would rather dump toxins into the environment than sacrifice a portion of their profits to clean up after themselves. Poverty and hunger are the result of corporations who are more intent on rewarding investors and executives with large bonuses than paying workers a livable wage. Global warming is the result of corporate-backed congressmen who prioritize subsidies for oil companies over subsidies for alternative energy sources.

Many chronic health issues and diseases are the result of corporate farming practices and food processing companies that intentionally poison our food in order to increase profits. The attacks on science, education and voter rights are designed and paid for by large corporations in order to maintain control of our government. The lack of funding for social safety nets such as food stamps, Social Security, Medicaid and Medicare are the result of corporate fraud and abuse, as well as tax loopholes that allow corporations and the wealthy to avoid paying their fair share of taxes.

Almost every one of our problems is the result of large, multinational corporations and the billionaires who run them treating the Earth as a source of commercial resources and people as commodities.

Since I can’t afford to donate to every good cause, I’ve decided to donate to candidates who place people above corporations.

I will vote against candidates who support corporations that pay employees a minimum wage while paying CEOs millions; that damage our environment and our food supply. I will vote against those who accept large donations from such corporations regardless of which party they represent. I will not spend another dime to purchase products and services from corporations that harm our citizens, our nation and our environment.

If corporations only care about money, I will deny them the thing they want most. I hope you will consider doing the same.

Who’s Really Responsible For Our National Debt?

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It’s popular for the Republican Party to blame our $16.7 trillion debt on President Obama. Certainly, like all presidents, he has some responsibility for it. But a much larger share of the responsibility goes to President Reagan, President George H.W. Bush and, most especially, President George W. Bush.

You see, the increase in spending in 2009 following the economic collapse of 2008 should rightfully be attributed to the Bush administration. That’s because the 2009 deficit was the result of a spending bill, including the Troubled Asset Relief Program (TARP), authorized by Congress in October of 2008 and signed by President Bush months before Obama took office. In fact, spending in the first year of any administration is always the result of the previous administration. Properly credit 2009 spending to Republicans, and you’ll discover that President Obama has been responsible for the lowest spending increases since Eisenhower. Similarly, he is responsible for the most rapid cuts to our deficit in more than 50 years!

While it’s true that the debt has increased 18.5 percent since Obama became president, as discussed, he should not be held responsible for most of that increase. Even so, it’s still less than the 20.7 percent increase in national debt that accrued during George W. Bush’s second term. And it’s only marginally greater than the 13 percent increase during Bush Sr’s term, and the 11.3 percent increase during Reagan’s first term.

A better measure of Obama’s spending comes courtesy of Rick Ungar, a contributor to Forbes Magazine (hardly a bastion of liberalism). According to Ungar, in President Obama’s first term, overall government spending grew just 1.4 percent as compared to 7.3 percent in George W. Bush’s first term and 8.1 percent in Bush’s second term!

So why do Republicans continue to place the blame on Obama? First, it’s a matter of political convenience to portray Obama as a “tax and spend” liberal. Second, the narrative is relatively believable since government spending skyrocketed during the first year of the Obama administration. Third, the media has done a very poor job of countering Republican misinformation.

In order to truly understand the federal debt, you have to look at the history of US borrowing.

Following the Revolutionary War, the US debt stood at roughly 35 percent of Gross Domestic Product (GDP). It again reached that level following the Civil War. In both instances, the debt was brought down by a combination of increased revenues and spending restraint. During WW I, the US debt again rose to approximately 35 percent of GDP. Before it could be paid down, our economy collapsed leading to the Great Depression. That was quickly followed by WWII. The two events caused the debt to soar to more than 117 percent of GDP. But, through a combination of post-war prosperity and income tax rates of up to 91 percent during the Eisenhower administration, the debt was again brought under control.

By the end of the Carter administration, the national debt had been reduced to 32.5 percent of GDP.

President Reagan’s expansive military spending during the Cold War once again caused the debt to soar, reaching more than 66.1 percent GDP. Under Clinton, it was reduced to 56.4 percent of GDP. Then, under George W. Bush, two wars (one of which was a war of choice) and lax government oversight led to the Great Recession – the worst economic calamity in nearly 80 years. At the same time, a Republican-led Congress cut taxes (and, therefore, revenue), particularly for the wealthy.

President Obama inherited a debt of more than 84 percent of GDP, along with a worldwide economic collapse, double-digit unemployment, spiraling health care costs, two wars estimated to have cost more than $6 trillion, a Congress that refused to rescind the Bush tax cuts, and a uniquely obstructionist Republican Party.

All of this was roughly the equivalent of combining the costs of World War II and the Great Depression without the primary mechanism needed to reduce the debt – taxes!

President Obama was left with few choices. He had to stimulate the economy through loans and tax cuts in order to put people back to work. This led to reduced revenue. He had to wind down the war of choice in Iraq as quickly as possible. He needed to stabilize the war in Afghanistan that had been allowed to languish under Bush at a cost of $1 million per soldier per year. Moreover, since few Americans had been asked to sacrifice for the wars in Iraq and Afghanistan, unlike World War II, they felt no need to pay for the wars through increased taxes. Indeed, even though federal income taxes were at a 50-year low, extremists funded by billionaires created the TEA (Taxed Enough Already) Party.

All of this led to the growth of our debt, which now equals nearly 102 percent of GDP.

Certainly, this debt is of great concern. But it’s not the short-term crisis Teapublicans would have you believe. (It’s the equivalent of a family earning $100,000/year holding a $102,000 mortgage.) And, without modest tax increases, there are few ways to reduce the debt.

One is to grow the economy, and according to most economists, including Lloyd Blankfein of Goldman Sachs, the economy is on the verge of significant, sustained growth if the nitwits in Congress would just get out of the way and stop dragging us from one self-inflicted crisis to another.

Two is to make cuts without adding to unemployment. (For example, we squander tens of billions each year on weapons systems that our military doesn’t even want, but Congress refuses to defund them because doing so would cost jobs.) And, once the economy shows sustained growth, programs such as food stamps can be cut – especially if we raise the minimum wage to reduce the large number of working poor who have little choice but to rely on government assistance.

In summary, contrary to what Teapublicans would have you believe, our national debt is not Obama’s debt. It’s the result of decades of wars, tax cuts, regulatory indifference, a struggling worldwide economy, out-of-control health care costs, greedy corporations that off-shore both jobs and profits, and a dysfunctional Congress that not only fails to help the economy. It makes decisions that are actually preventing economic recovery!

As a matter of fact, the Tea Party seems determined to force our nation into default. And, like the debt, they would have you believe that it’s all Obama’s fault.

A Textbook Example Of What Not To Do With Public Education.

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The Center on Budget and Policy Priorities found that Arizona will spend 17 percent less per student on education this year than it did in 2008 before the Great Recession. That’s despite the fact that, according to the National Education Association (NEA), Arizona ranked dead last for expenditures per student for public K-12 schools for a number of years!

Only Oklahoma and Alabama have cut more state funding for education since 2008.

Thanks to the education-hating Arizona State Legislature (many legislators are on record stating that public education is socialism), schools are so hard up, they have to regularly go begging to the voters in their districts for tax overrides…special assessments on top of local property taxes.

Most Arizona school districts are desperate for money!

In my own district, the president of the school board admits that starting teacher salaries are so low, teachers who have families automatically qualify for food stamps and other public assistance. Class sizes have grown to 30-40 students. Many districts don’t have money to replace leaky roofs and buy school buses. And, despite their low salaries, most teachers are forced to buy many of the school supplies for their classes.

Imagine what would happen without these overrides.

What happened to the money? Much of it was stripped from the state’s budget and used to lower taxes for the wealthy and for large corporations. Some of it was redirected to charter schools. And some of the money was directed to Student Tuition Organizations (STO), the largest of which is operated by a state legislator. STOs provide tax credits (not deductions) for donations to private and public schools. In other words, the funds are never collected by the state and the tax credits come directly out of the state’s general fund.

Oddly, the tax credits for private schools are more than double those for public schools. And the operator of an STO gets a 10 percent management fee and there is no requirement that they even have to award tuition scholarships to students! (Is it any wonder the legislator who sponsored the orginal bill operates the largest STO?)

The sad fact is, over the past 5 years, the Arizona legislature has been far more concerned about protecting guns than educating children.

Demanding A 50 Year Cover-Up For Doing Your Job?

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Our nation was built on representative government.  But our representatives are so concerned with re-election that many are now afraid to do what’s best for our nation. So much so, that they try to hide their actions from the very people they represent.

The on-going debate over the federal tax code is a case in point.

Before many senators were willing to venture opinions on the tax code, they needed to be assured by Senators Max Baucus (D-MT) and Orrin Hatch (R-UT) that any suggestions would be kept secret for 50 years! Exactly what, or who, are they afraid of?

In a word, you.

Thanks to the Baucus-Hatch declaration, senators may now solicit favors from the K Street lobbyists without fear of repercussions. They are now free to recommend tax loopholes for their largest campaign contributors and special interests without fear of discovery by the people they are supposed to represent. By the time anyone finds out, they’ll be dead and forgotten.

Not exactly representative government, is it?

In one declaration, Baucus and Hatch have exposed everything that’s wrong with our government. And it’s not just a problem with the federal government. Such secrecy and tricks are used and abused by governments at all levels…city, county and state.

Those with money can buy access to those who make the laws. After all, it takes money to run for office these days…lots of it. So defense contractors, the American Medical Association, health insurance, Big Pharma, Big Oil, Wall Street, multinational corporations, billionaires, the NRA and others write our laws. They write the very regulations that will govern them, and because they write them, they feel free to break them.

No money.  No access.

Only a very few politicians have demonstrated through their actions that they are immune to such power.  Senators Elizabeth Warren, Al Franken, Amy Klobuchar, Bernie Sanders and a very small number of others have stood on priniciple. They seem willing to do the right thing and explain their decisions to those who elected them.

Far too many others say one thing in public and do something far different behind closed doors. The Baucus-Hatch declaration…along with Senators Baucus and Hatch…needs to go.

Another Debt Ceiling Debacle?

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Teapublicans are always fond of relating government budgets to your household budget. It’s a lousy analogy. But let’s use it for the purposes of the debt ceiling debate.

Imagine if your family, concerned about its spending and debt, had a meeting and decided that you no longer wanted to pay any debts above…let’s say, $10,000.  And let’s say that your family couldn’t agree on spending cuts. For example, the father just doesn’t want to stop collecting expensive guns and driving luxury cars, the mother doesn’t want to give up health insurance and the 401K, and the kids don’t want to give up school and food.  So your family agrees to stop paying the mortgage, the utilities and the credit card companies.

What do you think would happen?

The mortgage company would foreclose on your home, the utilities would cut off electricity, water and gas, and the credit card companies would cut off any new purchases in addition to adding large penalties and interest to your outstanding balance.  Moreover, your family would be unable to borrow money from anyone else. And, if someone else was willing to risk loaning your family money, it would be at exhorbitant interest rates.

Does that sound like something you want to intentionally do to your family? No? Then why would you want to do that to your country?

What we have is a Republican Party that doesn’t want to give up the world’s most lavish military budget or tax cuts and welfare for our largest corporations. The Democratic Party doesn’t want to give up Social Security, Medicare, and access to health care and food stamps for the working poor. And the Tea Party parasites don’t want to spend anything because they don’t like the government anyway.

During the 2012 presidential election, we had a national debate about the direction of our nation and its budget. On these issues, the voters overwhelmingly supported the Democratic Party.  The results of that election should direct the conversation about government spending. Most important, there should be a conversation with all parties sitting down together and having an adult conversation about our nation’s future.

Unfortunately, the Tea Party parasites don’t want to do that, and the gutless Republican leaders are kowtowing to them.

Sovereign Citizens: America’s New (Bowel) Movement.

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If you’re wondering about the headline, it’s not a typo. I feel it’s an accurate description of the freeloaders who have renounced their US citizenship and refuse to pay taxes or obey laws while taking advantage of our nation’s freedoms, services and benefits.

Each time one of these nitwits burns his driver’s license, Social Security card, birth certificate and other forms of identification, it’s as if our nation is shedding waste.

Now all we need to do is give them a good flush.

If they truly don’t want to be citizens of our nation, we should load them up and ship them to one of the many lawless nations in the world, such as Somalia, Yemen or Syria, where they can practice what they preach. There are plenty of immigrants who would gladly accept US citizenship, pay taxes and obey our laws. Indeed, many of our undocumented workers are already paying taxes knowing that they may never directly receive benefits from those taxes.

According to the Southern Poverty Law Center (SPLC), the Sovereign Citizens movement is large and growing, with much of the growth coming since the election of our first president of African-American heritage. An estimated 100,000 people currently living in the United States are “hard core” Sovereign Citizens who have already renounced their US citizenship. The SPLC estimates another 200,000 are “just starting out” by resisting traffic tickets and drug charges. By conservative estimates, there are an additional 200,000 tax protesters who refuse to pay taxes. By deporting all 500,000, we would be freeing up room for 500,000 of the “Dreamers” and other grateful immigrants who are seeking US citizenship.

We would also be lowering the deficit through increased tax revenues.

At the same time, we would be making our nation safer. After all, the FBI classifies Sovereign Citizens as anti-government extremists and domestic terrorists. The SPLC classifies them as a hate group which was spawned by Christian Identity minister William P. Gale, the Posse Comitatus movement and several other racist and political groups of the lunatic fringe. (On second thought, strike the word fringe. That’s being much too kind.)

At the heart of the Sovereign Citizen movement is the belief that there are two classes of citizens in America: “original citizens of the states” and “US citizens (“Fourteenth Amendment citizens”) that include descendants of freed slaves. Since the “original citizens” of the states were here first, they claim not to be bound by federal, state or local laws. (It’s not clear how this applies to Native Americans.)

Like the Tea Party movement (that also needs to be flushed), Sovereign Citizens have selective memories and are selective readers of the Constitution. They also completely ignore the many statements made by our Founding Fathers that express the view that our Constitution placed everyone personally under federal authority.

And, like the Tea Party, Sovereign Citizens subscribe to a number of bizarre conspiracy theories and demand a return to the gold standard. The SPLC describes them this way: “Sovereigns believe that they – not judges, juries, law enforcement or elected officials – get to decide which laws to obey and which to ignore.” They often resort to violence in defiance of authority. Indeed, many are heavily armed, posing a serious threat to anyone with whom they disagree.

They’re not only in the wrong country. They’re in the wrong century!

Arizona’s Right Wing “Job Creators.”

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When Gov. Janet Napolitano was replaced by the finger-wagging Jan Brewer following Napolitano’s appointment to become Director of Homeland Security in 2009, the last check on Arizona’s right wing-dominated legislature was eliminated. That led to such bills as the anti-immigrant SB 1070; bills that made it legal to carry guns in bars; bills that protected guns, not people; bills that cut tens of millions from public schools while cutting taxes for corporations.

All the while, the right wing legislators claimed that their top priority was job creation.

Therefore, it seems fair to judge their efforts by looking at the jobs created in Arizona compared to the rest of the nation. Since the end of the Great Recession, the US has regained 77 percent of the jobs lost according to the Bureau of Labor Statistics (BLS). Over the same period, Arizona has recovered just 46 percent of the jobs lost. Despite being one of the states hardest hit by the recession, Arizona ranks just 44th in job creation since February 2010.

The statistics show that Arizona has recovered just 66 percent of jobs lost by the information industry, 40 percent of those lost in professional and business services, 34 percent in other services, 32 percent in trade, transportation and utilities, 29 percent in government, and just 27 percent in manufacturing.

How can that be?

According to Teapublican legislators, the best way to create jobs is to cut taxes. Yet Arizona’s corporate taxes are among the very lowest in the nation. They also claimed that SB 1070 would allow Arizona citizens to reclaim jobs from undocumented workers. Somehow, they believed that chasing tens of thousands of immigrants from the state who rent homes, purchase cars, buy groceries and buy clothes would improve the state’s economy.

Apparently they also believe that outlawing a Latino studies program in the Tucson school district, eliminating the poor from Medicaid, attacking the federal government, cutting school budgets, redirecting money to private schools and private prisons, closing rest stops, closing state parks, demanding further proof of Obama’s citizenship, and telling the world that Arizona is unsafe, would entice tourists and sophisticated corporations to come here.

Maybe, just maybe, the right is wrong.

Arizona Goes Begging Once Again.

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Unwilling to accept the decision by FEMA (Federal Emergency Management Agency) that the Yarnell fire was not so large that the State of Arizona cannot handle the aftermath itself, Governor Jan Brewer is appealing the decision saying, “Financially, it is not, I don’t believe, Arizona’s responsibility.”

She is unlikely to win.

For as tragic as the Yarnell fire was, leading to the deaths of 19 wildfire fighters, the tragedy pales by comparison to other national disasters. There were 129 structures destroyed by the Yarnell fire and another 23 damaged. Only 9 were not insured. That compares to 100,000 homes destroyed in the Great Flood of 1993, 132,000 homes damaged or lost in Hurricane Sandy and 275,000 homes destroyed in Hurricane Katrina. Further, unlike these other natural disasters, there should be few disputed insurance claims for those Yarnell homeowners who had household insurance. The state should easily be able to afford to help the victims. And, if there are insufficient funds in the state’s coffers to do so, a tiny tax increase would provide more than enough money to help the victims.

In fact, though I may seem cold-hearted, I find Arizona’s request and ensuing appeal somewhat amusing. This is, after all, one of the states that have been most antagonistic toward the federal government. It is also a “taker” state that receives more from the federal government than it pays in taxes.

It seems the anti-government Teapublicans of Arizona are horrified by the national deficit and debt… until they see an opportunity to capitalize. Then they are among the first to go begging with hat in hand for more federal handouts.

The federal government spends tens of billions on military bases, border patrol facilities and the “danged” border fence in Arizona. It manages and maintains national parks that are international tourist attractions bringing billions into the state. It also supplies assistance to the state’s many impoverished citizens.

Meanwhile, the state does little to help its own cause. It repulsed other states and its Mexican neighbors by passing the ill-conceived SB 1070 anti-immigration bill. It closed highway rest stops and state parks despite the fact that it relies on tourism. It starved schools of the funds needed to turn out the kind of educated workforce that might attract companies with high-paying jobs. And It seems the legislature’s only plan to bring jobs into Arizona is to continue its race to the bottom for corporate tax rates. As a result, the state’s largest employer is Walmart!

Come on, Arizona. It’s time we begin to build a state we can be proud of.  And it’s time we learn to take care of our own.