Category Archives: Taxes

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.

Today’s Corporate CEO No One To Look Up To.

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The CEO of a corporation is supposed to act as the rudder of the ship; a leader; someone that sets an example for the rest of the corporation’s employees. But, increasingly, CEOs set an example of greed and unethical, even criminal, behavior.

According to a recent study by the Institute for Policy Studies (IPS), in 2012 the CEOs of large corporations were paid approximately 354 times as much as the average American worker. Worse, about 40 percent of the CEOs were fired for cause, paid fines or settlements for fraud, or resorted to asking the government to bail out their companies.

Some leadership!

The IPS study also found that about 30 percent of corporations led by the highest-paid CEOs were subsidized with taxpayer money. By taking advantage of a variety of tax deductions and loopholes, CEOs have been able to increase corporate profits while reducing or eliminating corporate taxes. And since most of these corporations are multinational, many have created P.O. Box “headquarters” in offshore tax havens to shelter corporate profits. By “gaming” the tax codes, the CEOs are able to pocket the savings for themselves.

Moreover, most CEO compensation is based on share price. That may seem like a good idea that encourages CEOs to work for the benefit of stakeholders. But the real reason for such compensation plans is self-interest. It’s easy for a CEO to make decisions that will increase sales and share prices over the short term, yet mortgage the company’s future. Unfortunately, many CEOs simply don’t care about the future because they don’t plan to be with the company more than 2-3 years. That’s all the time they need to be set for life.

But many want even more.

Unwilling to settle for multi-million dollar salaries, stock options, perks and a long list of benefits, some corporate CEOs create what amount to elaborate Ponzi schemes and a variety of high stakes gambling schemes using investors’ money. When their schemes fail, they seldom face charges and, even when they’re indicted, they’re seldom subjected to jail time. On those rare occasions when they are, “jail” often looks more like a country club and their sentences are often reduced or commuted.

Worse, when unscrupulous CEOs are fired, resign or are forced out, they almost always receive “golden parachutes” consisting of full retirement benefits and large lump sum payments allowing them to walk away with tens of millions in ill-gotten gains subsidized by investors and middle class taxpayers.  Meanwhile a high school dropout from the inner city who steals $50 can serve years of hard time.

It makes one wonder whatever happened to the nation that once proudly proclaimed “all men are created equal.”

What Is Our Real Legacy For Future Generations?

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Much has been written about the national debt that is being left to future generations; how that debt is the greatest threat to the future of our nation.

I beg to differ.

Not that the debt isn’t a serious issue, but our nation faces many more daunting problems. For example, our infrastructure is crumbling.  Roads and bridges are in disrepair. Our electric grid is woefully inefficient and unreliable – approximately half of all the electricity generated is lost in the grid. Our rail system is antiquated. Ports and canals need to be expanded and remodeled. And our computer systems are increasingly vulnerable to hackers.

In addition, the vast majority of the world’s scientists – real scientists – are sounding alarms about global climate change. Their computer models show that our dependence on burning fossil fuels will raise sea levels by as much as three feet by 2100, drowning some of the world’s largest cities, many of them in the US.

These scientists aren’t politically-motivated. They aren’t beholding to corporations. And they aren’t making unsubstantiated claims. They say that human-caused climate change is as proven as gravity.

Making the investments to address these issues now makes infinite sense. Not only are interest rates at all-time lows. Making changes would create an enormous number of high-paying jobs. And when more people make more money they purchase more and pay more taxes. All of which will help reduce the deficit and debt.

In fact, Nobel laureate economists tell us that such investments will do more to reduce our debt than austerity measures.

So what are we waiting for? Why do we listen to Wall Street-financed politicians instead of economists? Why do we listen to oil-soaked politicians instead of climate scientists? We have been shown a road map to the long-term health of the United States and the globe. These are not Democratic issues or Republican issues. They are human issues.

Isn’t it as important to leave future generations with a safe, efficient infrastructure as with a surplus? Isn’t it as important to bequeath them a sustainable planet as with a reduced debt?

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.