Category Archives: Taxes

The Government Of Me.

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As the Tea Party wing of the Republican Party continues to express outrage at our federal government, it becomes increasingly clear that the Tea Party simply does not understand the concept of a democratic republic. Its members ignore the fact that the Articles of Confederation were replaced by a Constitution that created a strong, centralized federal government. They ignore the fact that the power of the federal government versus the power of the states was thoroughly debated by our Founding Fathers, and the Federalists won. They quote the Constitution’s Tenth Amendment while ignoring all of its original Articles that gave the federal government sweeping powers to “provide for the general Welfare of the United States.”

Indeed, they even seem to ignore the “United” in United States!

At the heart of the Tea Party anger seems to be a misunderstanding of what constitutes a democracy. By its very nature, a democracy is based on majority rule. That means a minority, sometimes a significant minority, is often unhappy with the direction of our government. And, as the result of a quirk in our Electoral College, following the 2000 presidential election, a significant majority of our citizens were unhappy with the outcome, having voted for another candidate.

The Tea Party members refuse to acknowledge that President Obama was elected and re-elected by significant majorities of voters. They ignore the fact that the 2012 election was, in essence, a referendum on support for the middle class; for Social Security, Medicare and Medicaid; for the Affordable Care Act (aka Obamacare).

They continue to claim that Obama was born in Kenya and should, therefore, be disqualified from holding the office of president. They continue to howl that financial and environmental regulations are “job killers.” They consider his signature accomplishment of making health care affordable to all Americans a socialist government “takeover.” And, instead of accepting majority rule, they seem determined to take away the voting rights of African-Americans, Latinos, students, women, and the poor – anyone who might vote against the Tea Party agenda.

In other words, as they wave the American flag and their pocket copies of the Constitution with only the Second and Tenth Amendments highlighted, they are attempting to cut out the very heart of our democracy…that of majority rule.

The Tea Party refuses to accept that our nation is evolving; that the minorities of brown and black are the majorities of the future. The “I’ve got mine, you can’t have yours” crowd can’t bear the idea of change; of giving power to others. I believe that is what’s behind their animosity toward President Obama.

They can’t accept forward-thinking ideas such as investing in our failing infrastructure while interest rates are at all-time lows. They can’t understand that a tax policy that punishes greed and rewards corporate investment in our nation benefits the vast majority of our citizens. They can’t grasp that jobs paying a living wage are necessary to the health of our nation and benefit us all. They can’t see that an environmental policy that conserves the health of our planet benefits everyone. As long as they have theirs, they refuse to accept the notion that affordable health care and a comfortable retirement are rights, not benefits.

Our Founding Fathers had the wisdom to create a government “of the people, by the people and for the people” – the majority of people.

If you want a government “of the people, by the people and for me” you’re in the wrong place. You should find a remote, uninhabited island where you can become supreme dictator. Otherwise, it’s time you learned to accept majority rule.

Arizona’s Religious Boat People.

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For those of you who live outside the state, here’s a story that will give you some idea of the lunacy that is Arizona. Sure, you may know about our famous “dry heat” (like living in a sauna for 5 months out of the year), our Grand Canyon, our version of the Iron Curtain, our racist anti-immigrant law SB 1070, our finger-wagging governor and our famously right-wing politics.

But how much do you know about our anti-UN, anti-federal government, anti-science, anti-education, anti-evolution religious nuts?

As an example, I give you the family who attempted to relocate from the US to a tiny island in the island nation of Kiribati because of the parents’ belief that the US was interfering with their religious freedoms. Prior to loading their small children in a boat and setting sail, the father filed numerous documents in Yavapai County rejecting federal authority. In 2006, he signed a “Declaration of Citizenship” swearing allegiance to the Arizona Republic, claiming status as a “natural-born state citizen” and stating that he is “not a federal citizen of the United States.”

He described himself as a “non-resident alien of the White Race.” He renounced his Social Security number and failed to pay federal income taxes, owing the IRS $9,963 in back taxes.

When the family’s boat began to break apart in a storm, the family was rescued by a Chilean fishing vessel, transferred to a cargo ship and taken to Chile. They then asked the government that they had previously renounced to loan them $10,000 to transport them back to Arizona.

How nice! You denounce and renounce the US. You refuse to pay your taxes. Then when you need help, you come to the US with your hand out. Actually, you fit right in to Arizona. After all, many in the state hate the federal government and have tried to claim sovereignty over all federal lands within its borders, including the Grand Canyon. Yet Arizona gets far more in federal funding than it pays in federal income taxes.

So welcome back to Arizona. The other idiots have probably missed you.

Families In Deep Doo-Doo.

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It seems that nearly every week, a new study is released that shows the growing income disparity in the United States. Recently, an Associated Press survey found that 80 percent of adults in the US face near-poverty and unemployment at some point in their lives. Another study by the International Human Rights Clinic at New York University’s School of Law found that 1 in 6 (50 million) Americans face food insecurity, including 17 million children.

Now, the medical journal Pediatrics has published a study measuring the psychological impact on mothers who are unable to afford diapers.

The study, “Diaper Need And Its Impact on Child Health,”  by a group of Yale researchers, found that 30 percent of mothers have struggled to pay for diapers and more than 8 percent of low-income mothers reuse soiled diapers! Not surprisingly, the researchers concluded that the lack of clean diapers “seriously affects maternal stress, child health, and child development.”

So, in the richest nation on Earth, a large percentage of our people can’t tend to the needs of either end of a baby!

We have millions who can’t afford the most basic necessities despite working full-time jobs. We have tens of thousands of homeless – many of them families and veterans. And, instead of passing laws to raise the minimum wage; instead of eliminating tax loopholes that encourage companies to ship manufacturing jobs overseas; instead of passing bills to help create jobs here at home; House Teapublicans plan to cut $40 billion from our food stamp programs over the next 10 years.

It will be difficult since the House has only 9 scheduled work days between now and the end of September, but I’m certain they’ll find a way.

Growth Of The “Moocher” Class.

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During the 2012 presidential election, Mitt Romney was famously caught on camera talking about the 47 percent he claimed pay no taxes. That led to the conservative media referring to the 47 percent as the  “moocher” class; those people whose votes could be bought with promises of free “stuff,” such as food stamps, unemployment insurance and access to healthcare.

According to a new survey exclusive to The Associated Press, Romney had the numbers wrong. The survey shows that 80 percent of adults in the US face near-poverty and unemployment at some point in their lives. You read that correctly…80 percent!

In addition, the latest NBC News/Wall Street Journal poll found that 22 percent of Americans have been significantly affected by the sequester budget cuts. And those who earn less than $30,000 per year have been hardest hit. Moreover, 1 in 6 (50 million) Americans face food insecurity, including 17 million children.

The vast majority of these people work full-time jobs; some work two jobs or more and still can’t make ends meet. Yet conservatives call these people “moochers” and “takers.” Fox News Channel and conservative radio hosts vilify and ridicule the working poor. Instead of placing the blame where it belongs…on greedy corporations and an economy that no longer offers the majority of Americans an opportunity to realize the American Dream…Congressional Teapublicans blame the problem on labor unions, pensions, Social Security, Medicare and Medicaid. They have voted to cut food stamps and unemployment insurance benefits. They have voted 39 times to repeal Obamacare, denying access to healthcare for more than 50 million poor Americans. And, instead of voting to fund projects that would rebuild our infrastructure and create good-paying jobs, they vote to cut taxes for the wealthy.

In the two and a half years since regaining control of the House by promising to focus on jobs, Teapublicans continue to push for budget cuts and to place obstacles in the way of our economic recovery.

As a result of their indifference to the plight of ordinary Americans, our economy continues its slow recovery. We continue to see the loss of good-paying jobs to other countries. We continue to see the loss of pensions and income security for the elderly. And we continue to see a widening gap between the rich and the poor.

Teapublicans are right to talk about the “givers” and “takers” in our society. But they have things backwards. The “givers” are the working people who pay a disproportionate share of their income to taxes, including payroll deductions and sales taxes. And the “takers” are the very wealthy and large corporations who benefit from corporate welfare and record profits.

Death Of Yarnell 19 May Be The Result Of Sequestration Cuts.

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On June 30, 2013, 19 members of the Granite Mountain Hotshots wildfire crew perished in the Yarnell Fire in northern Arizona. As you probably know, an investigation is underway to determine the events that led to their deaths. But one fact is already clear: The wildfire crews were stretched thin and firefighting resources have been dramatically reduced by federal budget cuts.

According to Sen. John McCain, air tankers have been reduced from 42 to 10. He also estimated that a $115 million budget cut would result in roughly 500 fewer firefighters and 50 fewer fire engines despite the fact that western states are experiencing a rise in wildfires.

The day of the loss of the Yarnell 19, resources had been diverted to another wildfire near Kingman, Arizona. At the same time, there were major fires in Colorado, Nevada and Utah.

Unfortunately, this event demonstrates that budget cuts have real consequences. Especially big, dumb, across-the-board cuts like those resulting from sequestration. We should all remember that the federal budget isn’t just about taxes and money.  It’s about services, resources and American lives.

The Yarnell 19 are a prime example.

Abolish The IRS?

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Tea Party favorite, Sen. Rand Paul, is featured in a TV commercial calling for viewers to sign a petition to abolish the IRS. Paul and his fellow Tea Party parasites are capitalizing on what they falsely call an unconstitutional attack on conservatives to get what they really want…a flat tax.

The flat tax is a horrible idea that has long been pushed by the wealthy and conservatives. It doesn’t sound bad; you just total up the income you received for the year and pay a flat percentage of that income. No accountants or tax preparers needed. But since everyone would pay the same percentage, the flat tax would be a huge victory for the wealthy and an unprecedented attack on the poor.

The very conservative Heritage Foundation recommends that the tax rate be set at 28 percent. It would eliminate payroll taxes, estate taxes, excise taxes and taxes on savings. It would give a modest tax credit to the poor. The only other tax deductions would be for higher education, gifts and charitable deductions.

Of course, the poor and modest income households don’t make enough to have savings. So eliminating a tax on savings only benefits the wealthy. Likewise, only the wealthy would benefit from eliminating estate taxes. The wealthy would certainly benefit the most from the charitable deductions. And since the top marginal tax rate is now 39.6 percent, the flat tax would give those making $400,000 and up a tax cut of 11.6 percent!

The real effect of the flat tax proposal would be to dramatically cut taxes for the wealthy and raise taxes on those who can least afford it.

The flat tax is just another Trojan horse concocted by conservatives to benefit their wealthy masters. It would move even more of the tax burden onto the middle class and make the plight of the poor utterly hopeless. A better idea is to rid our current tax code of the deductions, tax shelters and subsidies created by conservative politicians to help their campaign contributors avoid paying their fair share of taxes.

A flat tax will simply help them avoid taxes altogether.

Since no one actually likes paying taxes, the IRS has few friends. Yet, without the IRS, who would track down the thousands of tax cheats? With no enforcement, thousands more would be encouraged to avoid paying taxes. And, though a flat tax may sound like a good idea, if it ever happens, the American dream will become a nightmare for all but a very few.

What’s Wrong With The US? Connect The Dots.

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It’s probably self-evident, but our government is no longer of the people, by the people and for the people. A more accurate description would be of the corporations, by the corporations and for the corporations.

But how did we get here? How have a few powerful multinationals and one percent of the population usurped power from the vast majority of the people? In order to fully understand this, all you need to do is connect the dots.

  • We have allowed a few large corporations to create virtual monopolies, often with the help of government subsidies. These corporations buy out, squeeze out and drive out small businesses.
  • The CEOs of these corporations sit on each others’ Boards and approve each others’ compensations.
  • A portion of CEO compensation is based on the companies’ productivity and share price. That means the CEOs strive to cut costs (employee benefits and salaries) while increasing the price of products and services.
  • Once corporations achieve maximum productivity and profit with US employees, they are encouraged to offshore jobs in order to further reduce labor costs and employee benefits.
  • As corporations expand around the world, it becomes easier to stash profits offshore in order to reduce their tax burden and further increase profits.
  • These increased profits and compensation allow corporations to “invest” millions in the political campaigns of those who will support corporate interests.
  • The campaign contributions by corporations and corporate leaders leads to a massive increase in the cost of running for office, driving away those who might represent ordinary working people.
  • Corporate-financed Political Action Groups and associations, such as the US Chamber of Commerce spend additional millions to support corporate-friendly candidates.
  • Once the corporate-friendly candidates are sworn into office, they pass legislation that benefits their contributors.
  • Corporations and industries finance large lobbying efforts to further impact legislation resulting in large government contracts and subsidies.
  • Eventually, the corporate-friendly politicians nominate and approve judicial appointments that make the courts more friendly to corporate interests (see Citizens United v FEC, Buckley v Valeo and Bowman v Monsanto).
  • Politicians, with help from the courts (see Shelby County v Holder), undermine the voting rights of minorities and others who oppose them. At the same time, they wage war against the poor by cutting education, unemployment benefits and food stamps. They allow corporations to steal their savings, even their homes without repercussions.

We can take back our government, but it won’t be easy. It starts with election finance reform that takes the massive amounts of money out of political campaigns. It ends with politicians who, in the interests of ordinary people, are willing to break up “too big to fail” corporations as President Theodore Roosevelt once did.

Visit To The Border Exposes The Complexity Of Immigration.

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My wife and I recently traveled to the border town of Douglas, Arizona. Along the way, we passed dozens of Border Patrol pickup trucks and two checkpoints. Upon arriving in Douglas, we were greeted by an imposing wall stretching along the border and a town in visible decay.

You see, Douglas was once a shopping destination for Mexican families. Many drove for miles to purchase items that were difficult to find or too expensive in their own country. Many walked across the border to work. Families lived on both sides of the border. All of this is readily confirmed with a quick glance at many of the business signs, which are in Spanish. Not English. After all, this land was owned by Mexico long before it was transferred to the United States.

Unfortunately, much of that cross-border commerce seems to have come to an end. Many of the storefronts are empty and many buildings are boarded up. It is now much more difficult to cross the border and there are far too many incidents in which Mexican citizens have been detained or threatened. It appears that many Americans have also avoided the area.

These are just a few of the consequences of our failed immigration policy.

Other consequences include the blight of our modern day “Great Wall” or “Iron Curtain.” It’s nearly as expensive and no more successful. The wall has reduced the number of migrants crossing the border illegally. And it has blocked the traditional migratory patterns of wildlife, maybe speeding some desert animals on their way to extinction. But it hasn’t stopped the traffic of illegal drugs. It has simply funneled them into a concentrated area which has posed a danger to ranchers and other residents in the area on both sides of the border.

This is no way to deal with immigration.

If we’re to get a handle on the issue, we must pass legislation that creates work permits. We must create an effective national ID system. We must make it easy for businesses to verify workers before hiring them, and we must make it easy to prosecute businesses who hire undocumented workers. We must create a path to citizenship for those who are already here, especially the “dreamers” (those who were brought here at an early age by their parents). And we must stop our large agribusiness corporations from dumping subsidized corn into Mexico and Central America, making it impossible for small farmers to make a living and forcing them to seek employment elsewhere.

Perhaps, most important, we should decriminalize drugs and make them available with a prescription from pharmacies. That would take the profit out of the illegal drug trade and force the drug cartels to find a new occupation. It would depopulate many of our prisons, saving billions in taxes. It would also eliminate the need for “users” to deal with criminals and to commit crimes in order to purchase their drugs.

Well, I can dream, can’t I?

Scandalrama!

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As the Teapublican House, led by witch-hunter-in-chief, Darrell Issa, looks under every rug and in every nook and cranny for dirt on Fast & Furious, Benghazi, Tea Party applications for non-profit status, the NSA, and anything else that can be used as a hammer against the Obama administration, the real work of Congress languishes.

The House still has not resolved the federal budget and the debt ceiling. It has not yet brought sanity to the nonsensical sequester cuts. It has not proposed a single bill to create jobs and lower unemployment. It has not proposed a bill to rebuild and modernize our infrastructure. It has not yet passed a bill to reduce or eliminate the waiting time for veterans’ benefits. It has not yet passed an immigration bill.

The House has not considered tax reform to eliminate loopholes that would prevent multinational corporations to stash cash in offshore tax havens. It has not passed a bill to end the senseless gun violence. It has not passed a bill to close loopholes in background checks or to control the straw buyers who provide guns to gangs and drug cartels. It hasn’t even proposed a solution for climate change caused by increasing CO2 emissions.

Teapublican congressional representatives have largely ignored all substantive issues. Instead, they have focused on trumped-up “scandals,” the repeal of “Obamacare” and a myriad of restrictive social issues all revolving around women’s vaginas. As always, they seem fascinated by the “evils” of sexual orientation and the rights of the unborn.

Meanwhile, they ignore the rights and the needs of the already living.

Rx For Economic Depression And World War.

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Last week, the Romney-Ryan campaign released its plan for the transition of power from the Obama administration had they won the 2012 election as they expected. Titled the Romney Readiness Project 2012, the 138-page report reads more like a plan to destroy our nation than to lead it forward.

Among the recommendations were 20 percent across-the-board tax cuts for individuals and 10 percent cuts for corporations. The plan also recommended eliminating labor agreements in federal contracts, eliminating regulations on Big Coal and Big Oil, repealing “Obamacare” while quietly maintaining its cuts to Medicare, cutting Medicaid by offering block grants to states, and “voucherizing” Medicare.

As for foreign relations, the report recommended restoring military funding to pre-sequestration levels, confronting China’s trade policies and designating it as a currency manipulator, sustaining troop levels in Afghanistan beyond 2014, asserting US military might in Syria, and confronting Russia over human rights and its support of Syria and Iran.

In other words, Romney would have dramatically cut revenues while greatly increasing expenses (And you thought Teapublicans were concerned by deficits!).  At the same time, he would have tried to bully other nations, including some of our allies.

By re-electing President Obama, we very likely dodged a bullet…literally!