Category Archives: Taxes

Let’s Create A New Tax System!

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The US is a patchwork of federal taxes, state taxes, sales taxes, property taxes, capital gains taxes, gasoline taxes, tobacco taxes, etc. In addition, there are a myriad of tax loopholes allowing billionaires to pay lower tax rates than the secretaries who work for them. Worse yet, some of the world’s largest corporations are able to avoid paying income taxes, despite billions in profits.

If all of that isn’t confusing enough, taxes in some states are higher than in others, leading to competition between states.

For decades, states have spent more time trying to coax companies from other states than helping their own entrepreneurs to create new companies. Low tax states such as Arizona and South Dakota try to lure away businesses (and jobs) from higher tax states like California and Minnesota where the businesses began and grew, likely because of tax incentives and other state-funded investments in those businesses.

This kind of nonsense has to stop!

Businesses are not created by low taxes.  They are created and nurtured in states which value education, innovation, technology, infrastructure, and quality of life.

If states like Arizona and South Dakota want more jobs for their citizens, let them invest in the things necessary to create them. Let’s stop the competition to see which state can cut taxes to the lowest possible rate at the sacrifice of everything else. Let’s level the playing field. Let’s eliminate the multiple layers of taxes. Let’s create a single, federal tax system in which each state charges the same tax based on income and cost of living. (I think we can all agree that a $250,000 salary in Wyoming goes a lot farther than the same salary in New York.) The money would then be parceled out by the federal government based on population and defined need.

This system would end the free ride for low tax states and encourage real development and innovation.

After all, why should Minnesota, Delaware, New York and New Jersey have to contribute far more taxes per person to the government than they get back? And why should states like Alabama, Arizona, Mississippi, New Mexico and Wyoming get more out of the federal government than they pay in? And why should companies be encouraged to uproot their offices, production facilities and personnel just because another state offers a slightly lower tax rate?

Think about it.

If I Were King.

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Ever think about what you might do if you were named King (or Queen) of the US for a day? I realize this is a somewhat narcissistic exercise, nevertheless, here’s what I would do:

1 – Cut the defense budget in half and use the leftover money to rebuild our antiquated and decaying infrastructure

2 – End the war on drugs by decriminalizing the use of illicit drugs

3 – Empty the prisons of those incarcerated for drug use and petty drug sales

4 – Prosecute those who have ordered or participated in war crimes

5 – Prosecute the bank executives who crashed our economy by stealing trillions from ordinary citizens

6 – Prosecute those who have created off-shore bank accounts for tax evasion

7 – Limit the number of Congressional lobbyists and ban campaign contributions

8 – Institute public financing for electoral campaigns

9 – Implement a national holiday for elections with mandatory voting

10 – Institute a tax on financial transactions

11 – Index federal income tax rates based on cost of living for each taxpayer’s permanent address

12 – End sales taxes on everything except luxury items

13 – End tax exemptions for more than one home

14 – Restore the FCC Fairness Doctrine requiring electronic media to operate in the public interest and withholding licenses to those who knowingly tell lies

15 – Create a single-payer national healthcare system

16 – Strengthen Social Security by removing the income cap for FICA deductions and means test Social Security recipients to prevent millionaires from receiving it

17 – Reduce the influence of multinational corporations on our State Dept.

18 – Require 2 years of service for all US citizens

19 – Ban semi-automatic weapons, high-capacity clips and military-style ammunition and offer federal buy-backs of banned guns and ammo

20 – Require universal background checks for all gun purchases

21 – Proclaim equality for all and increase penalties for any form of discrimination

22 – End tax exemptions for church property, except that used to perform charitable services, such as education, medicine, services for the poor, etc.

23 – End all corporate welfare, especially for those corporations who export jobs or pollute our environment

24 – Ban elected officials from working for government contractors as employees or lobbyists for a minimum of 10 years

25 – Require that corporate offices of government contractors be located in the US

I’m sure I’ll think of more. Of course, our nation is as likely to implement these ideas as it is to make me King for a day. Thanks for allowing me to indulge in my fantasies.

Tax Cuts For The Rich, Budget Cuts For The Poor.

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Following are a few numbers that clearly show the results of more than 40 years of Republican economic policies:

1 percent of Americans now control more than 40 percent of the nation’s wealth, while the bottom 40 percent of Americans control 0.2 percent of the wealth.

46.2 million Americans are living in poverty. 3.9 million working Americans are paid at or below the minimum wage. 12 million Americans are unemployed. 650,000 Americans are homeless. 50 million Americans, including 17 million children, don’t know where their next meal is coming from. 48.6 million don’t have health insurance.

Naturally, Teapublicans in Congress want to protect these people from further harm. I’m referring, of course, to the 1 percent! Even though taxes for the wealthy are at historic lows, Teapublicans believe they’re overtaxed. They absolutely refuse to consider asking these people to pay one more cent of their enormous wealth.

Those other people, according to Teapublican leaders, are merely the freeloaders who rely on the federal government for assistance. 

Is it any wonder, then, that Congress is locked in a budget standoff with the president? The austerity cuts resulting from sequestration will cut 9 percent from unemployment checks and $175 million from energy assistance for the poor. Sequestration will cut rental assistance to 125,000 low-income families. It will put 100,000 previously homeless back on the streets. It will cut 70,000 kids from Head Start. And it’s projected to cost up to 750,000 jobs.

But these cuts are less cruel than the Teapublican demands to end sequestration. They want to cut SNAP food assistance for the poor. They want to cut Medicaid health assistance for children and low-income families. They want to cut Medicare, Social Security and more.

But don’t worry about the poor. They’ll get by. After all, they still own 0.2 percent of our nation’s wealth.

The Real Hunger Games.

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What’s your definition of a third world country?

When I was a child (far too long ago) third world countries were defined as those that didn’t produce enough food for their own citizens. I remember photographs of these faraway places…photos of people with blank stares and bellies bloated by starvation. If I failed to clean my plate, I was reminded that children in China were starving. (I never quite understood how my cleaning a plate helped the Chinese, but I felt sorry for them anyway.)

Today, many of those going hungry are right here…in the United States!

According to the directors of a new film, A Place at the Table, 50 million (1 in 6) Americans, including 17 million children, don’t have reliable sources of food. 1 in 2 American children will need food assistance in their lifetimes.

These aren’t the lazy layabouts who suck off the government teat that Teapublicans want you to think they are. More than 80 percent are from working families. The parents simply don’t earn enough to pay for rent, for clothes, for day care, for school books, for transportation and for food.

How is this possible in America?

It’s made possible by politicians who continue to cut taxes for the wealthy and powerful; by corporations that pay millions to CEOs and poverty level wages to workers; by politicians who refuse to raise the minimum wage even though it has lagged far behind inflation; by politicians who believe in corporate welfare but not human welfare; by politicians who want to balance the budget by cutting food stamps and access to medical care rather than our bloated defense budget.

We can change this.

We can donate to food shelves. We can volunteer to help those in need. We can support government programs to help raise families out of poverty. We can make certain that anyone who is willing to work can afford a roof over their heads and food on the table. We can demand that our politicians prioritize people over corporations. We can demand that they put people above partisanship; children above debt reduction.

We can end hunger in America. 

Since Most Americans Want Compromise, Why Elect Those Who Don’t?

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A variety of polls show that the overwhelming majority of Americans want their elected officials to compromise. Yet the US House of Representatives is controlled by those who view compromise as a weakness.

Speaker Boehner can’t even bring himself to say the word!

As a result, President Obama was forced to sign an order implementing the most ill-advised, ham-handed budget cuts in history. $89 billion will be indiscriminately cut from every federal program except critical national defense and Social Security. If allowed to stand, these cuts will have devastating effects on our nation – especially those who are out of work, the working poor and others struggling to survive.

These cuts have been made because traditional Republicans are afraid of the Tea Party nitwits within their own party. They’re afraid to end tax loopholes that allow multinational corporations to stash money offshore. They’re afraid to end tax loopholes for the wealthy who are enjoying tax rates that are near historic lows. They’re afraid to compromise with the president for fear of being “primaried” and replaced by even more teabaggers. 

Although, I admit the prospect of even more angry teabaggers in Congress is frightening, it’s time for traditional Republicans to grow a pair.

It’s not that President Obama hasn’t reached across the aisle to avoid sequestration. After stabilizing our economy in the first year of his administration, the president has cut the deficit each year. In fact, we have already seen the largest deficit reductions since the years immediately following World War II. Yet that isn’t enough for the extreme wing of the Republican Party. Teapublicans have refused offers of $2 to $3 in cuts for every $1 of revenue created by eliminating tax loopholes.

Still there is no compromise from the radical right. They refuse to negotiate with the president and they refuse to listen to the American people. Of course, they won’t suffer as the result of their actions. We will.

I hope voters remember that next election.

Unrestrained Greed.

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Our nation is just a few days away from across-the-board austerity cuts that will likely send our fragile economy back into recession…all because the GOP (Guardians Of Privilege) refuse to consider increasing or reforming taxes. The GOP would rather cut programs for the poor, the unemployed, the elderly and the very young than cut subsidies for Big Oil and corporate farming. The GOP refuses to consider increasing taxes that are at historic lows because raising them would “cost jobs.”

Yet thousands more jobs are likely to be lost as the result of austerity.

In reality, the GOP position has little to do with jobs and everything to do with greed. They want to repeal Obamacare so the healthcare industry can maintain its double-digit increases in profits. They want to protect oil and gas subsidies so that companies like Exxon-Mobil can continue to make record profits. They want to further cut regulation for the financial industry so it can steal trillions more from the rest of us.

There is simply no other explanation for the GOP’s “no more tax revenue” stance.

But the Guardians Of Privilege are just a symptom of our culture. The US celebrates greed over hard work in almost every aspect of our society. We treat billionaires as celebrities. We allow corporations to establish patents on genes. We allow pharmaceutical companies to charge us far more than they charge those in other countries. And we fail to prosecute corporate scam artists like the bankers who brought our economy to its knees in 2008.

Greed has even corrupted our sports world. The NBA created “Jordan Rules” for Michael Jordan in order to increase his star power and make the league more money. Long-standing college conferences and rivalries have been torn apart in order to chase more TV revenue. The NCAA plays favorites to make sure traditional basketball and football powers remain on top in order to increase TV ratings and earn more income. And, of course, the officials call games accordingly. 

Greed trumps hard work and fairness in virtually every aspect of our society. It has caused the beneficiaries to feel entitled. And it has generated anger among the rest. Ironically, it drives both sides of the political spectrum. The Tea Party believes government is taking away the things they hold dear. On the other side, the Occupy Movement believes that corporations and the very wealthy are preventing them from reaching their potential.

If you ignore the politics and simply look at the root cause, both sides are right.

Teapublicans Can’t Have It Both Ways.

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Upon reviewing a leaked document purporting to be the White House plan for immigration reform, Teapublican boy wonder Senator Marco Rubio issued a response stating, “It’s a mistake for the White House to draft immigration legislation without seeking input from Republican members of Congress.” He went on to call the plan “half-baked,” “seriously flawed” and “dead on arrival.”

This comes from the same party that has denounced President Obama for taking a hands off approach to legislation. They accuse him of a lack of leadership. They have said that he needs to provide Congress with clear direction…that he can’t just sit in the corner and wait for Congress to do its job.

So Teapublicans want the president to provide proposals. Then, when he does, they accuse him of overstepping his role? That seems about right.

After more than four years of obstruction and backstabbing; after the president was overwhelmingly re-elected; after polls showing Congress is less popular than cockroaches, Teapublicans show no signs of letting up. They show no signs of willingness to do anything that will benefit the nation and our economy for fear that it might make the president appear more successful.

They have shown they are going to continue to abuse the filibuster…even to filibuster one of their own. They are going to oppose tax reform and tax fairness. They are going to oppose attempts to rebuild our crumbling infrastructure. They are going to oppose any attempts to help the working poor out of poverty. They are going to continue to oppose women’s rights and gay rights. They are going to continue to suppress votes of minorities and the poor.

Teapublicans seem prepared to ride the same old horse into the sunset of oblivion.

Are We Willing To Settle For This America?

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There are those, particularly on the political right, who are satisfied with the way things are in the US. They truly believe that everything about the US is better than any other country in the world. And they believe it’s unpatriotic to criticize our faults.

But can we really settle for the way things are in the US?

Can we accept a nation where freedom and opportunity are still not shared equally? Are we willing to allow large, multinational corporations to buy elections, dictate government policy and send our jobs off-shore? Can we afford to watch our nation fall farther behind in education and technology?

Can we afford to allow our infrastructure to continue to crumble? Can we afford to have corporations devastate our environment in search of ever-larger profits? Are we content to allow military-style weapons to fall into the hands of the paranoid and the criminally insane? Can we watch more Aurora and Newtown-style massacres and do nothing?

Can we afford to be perpetually at war? Are we willing to accept that more of our soldiers now die from suicides than firefights? Can we settle for being the only advanced nation in the world that doesn’t provide healthcare to all of its citizens?

Can we accept ever-higher education costs and ever-lower salaries for our youth? Are we willing to cut pensions and retirement plans for our elderly in order for large corporations to avoid taxes? Are we content to put drug users and petty thieves in prison and let the bankers who stole trillions continue to walk free?

Can we any longer listen to those who demand “a return to Christian values” then turn their backs on the starving, the wounded and the infirm?

At his inauguration, President Obama spoke passionately of his vision for America. An America at peace. An America with freedom and equality for everyone. An America based on a growing and prosperous middle class. An America that provides opportunity for everyone. An America that is, once again, a true leader in the world.

It’s time to for all Americans to follow our president’s vision and stop settling.

A Fair Solution For The Debt “Crisis.”

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For the past four years, we’ve heard a lot of whining about the federal deficits and debt, primarily from red states.  Although quiet during the prolific spending spree of the Bush administration, once President Obama took office, Teapublican anger swelled throughout the old South and in states like Arizona.

Ironically, many of those who scream the loudest receive Social Security and Medicare. And many others take advantage of other federally-funded social programs such as food stamps, unemployment insurance and the GI Bill.

That caused me to wonder how the contributions of the most vocal states stack up compared to the largess they receive from the federal government. Certainly, given their angst, you would expect that they pay far more in federal taxes than they get back.

You would be wrong.

In 2007 (the most recent data I could find), Arizona contributed $35,485 million in federal taxes and received $48,012 million back in federal spending. So the state received $1,976 more per person than it contributed. In other words, it’s a state of “takers.”

In fact, of the 28 states that receive more than they contribute, the vast majority are reliably red!

On the other hand, the vast majority of the “giver” states are reliably blue. The top five (Delaware, Minnesota, New Jersey, Connecticut and New York) are all blue states, contributing $4,500 to $12,285 per person more than they receive.

Of the 22 states that pay in more than they get back, only Arkansas, Georgia, Nebraska, and Texas are red states.

So here’s my solution for the federal deficit: Let’s give red state Teapublicans what they want. Let’s balance the federal spending in those states to the amount they pay in federal taxes. All states can share the cost of national defense, natural emergencies, etc. But when it comes to the cost of highways, roads, bridges, universities, health care and retirement programs, each state is on its own. That means red states will have to raise taxes or dramatically cut services.

Then we’ll see if they still think the federal government is the enemy.

Looking Up To Cockroaches.

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Yesterday, Congress reached a new milestone. A survey measuring its approval ratings found that Congress is now less popular than cockroaches, head lice and root canals!

The latter seems particularly appropriate for those of us living in northern Arizona as we are represented by a dentist who has a lot to do with our current problems. Teapublican representative Paul Gosar is a proud member of the House’s Tea Party caucus which is trying to balance the budget on the backs of the elderly and the poor.

Gosar voted in support of Paul Ryan’s austerity budget which, if implemented, would not only plummet our economy into a deep recession. It would take the first steps toward privatizing Social Security and Medicare. And it would cut funding for the most vulnerable while cutting taxes for the wealthy and large corporations. Gosar has also repeatedly voted against women’s rights, Obamacare, and investments in our infrastructure.

In addition, he is one of 67 GOP representatives who voted against extending flood insurance funds to those affected by Hurricane Sandy!

Given the approval rating of Congress, the question is which group will come to their senses first? Our representatives in Congress? Or voters?