Category Archives: Taxes

The Worse-Than-Do-Nothing Congress.

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In 1948, President Harry Truman labeled the 80th Congress the “Do Nothing” Congress since it refused to pass most of the bills of the Franklin D. Roosevelt administration and the Truman administration. Instead, it focused on passing a few bills to benefit big business.

Believe it or not, the recently ended 112th Congress was worse!

Not only was the 112th unproductive. It was counter-productive. At several points in the last two years, its approval rating among voters was 10 percent. That’s right, 10 percent! That makes it even more unpopular than communism which has an approval rating of 11 percent in the US.

Among the 112th’s few accomplishments was lowering the credit rating of the US government for the first time in history. By blustering and balking at raising the debt ceiling and threatening to pay debts that Congress had already spent, it nearly collapsed the world economy. And instead of focusing on creating jobs and improving the US economy, it spent most of its time trying to discredit President Obama.

It passed no bills to build infrastructure, to increase exports, to bring jobs back home from overseas, to reform immigration, to regulate the type of military-style weapons used in the Newtown massacre, or to bring fairness to our tax codes.

Indeed, the 112th passed the fewest bills ever.

The 112th rabidly talked of lowering the deficit and reducing the national debt, but it succeeded only in kicking the can down the road for 11 months. In doing so, it created an artificial “fiscal cliff” that nearly dragged us back into recession. Teapublicans in the 112th bragged that they didn’t know the meaning of compromise. Dominated by a rabid Tea Party caucus led by likely escaped mental patient Michele Bachmann, the 112th even refused to follow its own leadership.

Incredulously, it even refused to vote for financial aid for the victims of Hurricane Sandy! An inaction that prompted several of its national leaders to say that if you donate to GOP campaigns, you must be “out of your mind.”

So goodbye, 112th! You will be forgotten, but not missed.

UPDATE: Following its failure to negotiate a long-term solution for the “fiscal cliff,” Congress’ approval rate is now in the single digits. Understandably, Congress is less popular than head lice and cockroaches! 

“Fiscal Cliff” Bill Includes More Largess For Wall Street.

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Avoiding the “fiscal cliff” should have been a simple matter of extending the Bush tax cuts for 98 percent of Americans. After all, this was the central issue in the presidential campaign. But the GOP (Guardians Of Privilege) have never passed up an opportunity to take from the poor and give to the rich.

So buried in the bill are a few very expensive gifts for the rich and the powerful.

For example, Section 322 is a $9 billion provision that allows banks and multinational corporations to defer taxes when they engage in “active financing.” Their lobbyists claim it’s necessary to help them compete overseas. But critics say that it’s a merely another windfall that encourages the banks and manufacturers to create more jobs overseas.

Yet another payoff to Wall Street is Section 328 which extends tax-exempt financing for the area around the former World Trade Center for another year. Originally intended to help fund reconstruction following 9/11, much of the financing has been used to build luxury apartments, instead. It even helped finance the construction of Goldman Sachs’ new headquarters (as if they actually needed the help).

Of course, news of the bill’s passage sent the Dow Jones Industrial Average soaring. As a result, hedge fund managers and the other Wall Street executives can rest assured that they’ll be in line for seven figure bonuses again this year.

So congratulations, fellow taxpayers. Thanks to lobbyists and the GOP, we just gave the wealthy and the powerful a late Christmas gift.

And all we got in return was the shaft!

The Real Makers And Takers.

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Teapublican rhetoric aside, the real makers are in the bluest of states and the vast majority of takers are in the reddest of states.

Washington DC, Delaware, Connecticut, Minnesota and New Jersey contribute the most per capita in income taxes to the federal government.  On the other hand, West Virginia, Mississippi, New Mexico, South Carolina, and Montana pay the least.

Overall, the states that contribute the most total revenue are California, New York, Texas, Florida and Illinois.

So if the government-hating red states of the old Confederacy really want to follow through with their threats to secede after President Obama’s re-election, they may want to consider how they’re going to pay for the federally-financed benefits they now enjoy.  Without subsidies from the blue states, they can expect their benefits to plummet and their taxes to skyrocket.

As for the Union, the blue states will be just fine.  In fact, by eliminating most of the “taker” states, taxpayers in the blue states will likely enjoy lower tax rates while rebuilding their infrastructure, improving education and strengthening safety nets.

My message is this:  All of you so-called “patriots” should do a little research to determine who’s really paying for your military, your border patrol, your prisons, your welfare, food stamps, healthcare, schools, highways, etc.  If afterwards, you still want to secede, go for it.  Don’t trip over your racist anti-Obama signs, your “Don’t Tread On Me” flags, your Federalist papers, Bibles and assault weapons on the way out.

Can We Finally Flush The Trickle Down Theory?

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The notion that cutting taxes for the wealthy somehow creates jobs has never been proven to work.  Not once.  Never.  Ever.

In fact, there is much evidence to the contrary.

Many economists and non-partisan academic studies have pronounced it a fraud.  Not even the Reagan-era budget directors who resurrected the idea from the dust bin of history believe in it anymore.

Indeed, one need only compare job creation during the Clinton administration with that of the George W. Bush administration to see the fallacy of tax cuts as a job creating stimulus.  When Clinton raised the top marginal rate to more than 39 percent, the economy grew dramatically.  When Bush cut the top marginal rate to 35 percent, the economy began its slide over the cliff.

There’s more.

The idea failed in the early 1900s when it was known as Horse and Sparrow economics.  And contrary to the the notion that low taxes create jobs, the Eisenhower administration grew the economy when the top marginal rate was 91 percent!

Despite all of this evidence, Republicans continue to claim that tax cuts create jobs.  Why?  Because Republicans sold the soul of their party to the very wealthy and to large, multinational corporations.  They have to find some way to sell this lame idea to the poor and middle class voters.  So, like a sleazy carnival barker, they loudly proclaim that it is the miracle cure for every struggling economy.

What they fail to mention is that the real miracle will be if it ever works.

GOP Racing Toward Oblivion.

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According to Fox News Channel and conservative hate radio, President Obama only won a second term because the majority of Americans wanted free stuff and they believe Democrats will give it to them.

(In other words, they’re assigning blame to the 47 percent as described by Mitt Romney.)

In a remarkable show of cluelessness, Teapublican pundits ignore the fact that their party did everything in its power to deny minorities the right to vote; that they want to deny millions access to healthcare; that they want to balance the budget on the backs of the poor and the middle class; that they want to eliminate safety nets such as Medicare and Social Security; that they want to eliminate taxes for the rich; that they want to impose their religious values on everyone; and that they want to deny civil rights to minorities, women, gays and lesbians.

It’s a surefire winning strategy…for Democrats.

Let’s hope Teapublicans continue to pursue this strategy. Wouldn’t it be great if all future political contests were between Democrats and the Green Party?

GOP Strategy: Lie, Cheat, Steal, Suppress And Spend.

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Think I’m exaggerating?  Consider this:  For months, we’ve been bombarded with commercials from Republicans and their SuperPACS based on pants-on-fire lies, such as Romney’s latest gem that Chrysler is planning on moving the production of Jeeps to China.  Never mind that the Chrysler CEO immediately denounced the commercial as a blatant lie.  Mitt the Twit has continued to air it.

Mitt has also continued to air commercials stating that President Obama has cut $716 billion from Medicare (he hasn’t); that President Obama began his first term with an “apology tour” of the the Middle East (he didn’t); and that Mitt recommended the same steps to save the US auto industry as President Obama (he didn’t).

In the primaries, Mitt ran as a “severe conservative,” stating that he would sign a bill to end legal abortion; that he believed all abortions should be outlawed even if the pregnancies were the result of rape or incest; that he would dismantle the EPA and the Dept. of Education; that he would cut taxes for everyone, including the wealthy; and that he would spend billions on our military that the Pentagon hasn’t even requested.  Despite all of this, he claimed that he would somehow pay down the national debt.

But when it came to the first debate, he denied almost all of those statements.  He has now portrayed himself as a centrist.  As a result, we don’t know where he stands on any issue.  We don’t know his economic plan, assuming he actually has one.  What we do know is that he is a serial liar.  And despite his slogan “Believe in America,” we know that, instead of investing his millions in the US, Mitt has dodged taxes by stashing his money offshore in Switzerland, the Cayman Islands, Bermuda and Luxembourg.

As for Mitt’s party, we know that it has spent the past four years blocking virtually every bill and presidential nomination.  Republicans have used the filibuster hundreds of times – not just for big items, but for ordinary business, in hopes of making President Obama a one-term president.

Instead of trying to sell their plutocratic vision of America, Republicans and their billionaire supporters have spent billions attacking President Obama and other Democratic opponents.  They have also looked for new ways to suppress the vote of those who might disagree with them.  We’ve already seen the impact of their efforts in Ohio and Florida where early voting has been limited forcing people to stand in line for hours.  Of course, this has been especially true in counties with large minority populations.

Election day is almost certain to be worse.

Let’s hope that a majority of the electorate has recognized the Republican strategy and makes them pay.

Proof That Tax Breaks For The Rich Do Not Create Jobs.

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For years, economists have scoffed at the notion that tax breaks for the wealthy benefit the rest of society.  The policy failed in the early 1900s when it was known as Horse and Sparrow economics.  And it failed in the 1980s when it was called Trickle Down economics. Indeed, even the architects of Reagan’s economic policy now admit the policy is a failure.

The notion was further debunked in the 1990s when President Clinton raised taxes on the wealthy resulting in millions of new jobs.

But evidence has never stopped Teapublicans from claiming that the only way to create jobs is to cut taxes for the wealthy and multi-national corporations.  They continue to claim that tax cuts are the only incentives for the so-called “job creators.”  Of course, this year’s crop of Teapublican candidates is pursuing the same policy.  They’re counting on voters who are frustrated by the slow recovery from the enormous economic crisis they created to buy into the same old malarkey again.

Teapublicans deny that they are responsible for the crisis and that their obstructionism is responsible for the slow recovery.  They say, “Trust us.  Tax cuts will work this time.” 

Unfortunately for Teapublicans, the non-partisan Congressional Research Service created a report that, once again, found that lower marginal tax rates for the wealthy have no effect on economic growth and job creation.   So what did the Teapublican leadership do with this information?  Did it sway their opinions?  Did they modify their policy?

Certainly not.

According to a story in The New York Times, Senate Teapublicans led by Mitch McConnell persuaded the Congressional Research Service to withdraw the report.  After all, they wouldn’t want the voting public to know the truth!

Romney Won The 2nd Debate After All.

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While most polls and political pundits gave the advantage to the President in the second debate, Mitt Romney did win on two accounts: Disrespect and Lies.

Despite having agreed to a long list of rules for the Town Hall Debate, which included an agreement that neither candidate directly address the other or venture into the other’s space, Mitt Romney literally got in the face of the President.  He also directed a barrage of questions at the President rather than go through the moderator.  The effect was to seem unnecessarily confrontive and even disrespectful of the President.

Romney may not respect President Obama, but he should at least be respectful of the office. Moreover, Romney’s bossy attitude demonstrated that he lacks the temperment to negotiate with world leaders.

As for the ability to stretch the truth and tell lies to support his arguments, Romney was, once again, the overwhelming winner.

He was not only caught telling a lie about the President’s address on Benghazi.  He lied about the number of women who lost jobs in the past 4 years.  He misstated his opposition to the Lilly Ledbetter Act.  He didn’t tell the truth about his position on contraception.  He lied about his recommendation to let Detroit go bankrupt and, therefore, fail.  He lied about his tax proposals.  He was wrong about the increase in healthcare insurance over the past two years.  He lied about his proposal to limit Pell Grants.  And he lied about the President’s energy policies, including the delay of the XL Pipeline.

In other words, Romney demonstrated that he is not qualified to be Commander-in-Chief.  But he definitely demonstrated that he is qualified to be Liar-in-Chief.

For more Romney-Ryan lies, read The Teapublican Book of Lies available at Amazon.com and other on-line bookstores.

“Fraudulent,” “Fantasy,” “Con Game,” “Mathematically Impossible.”

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These are the words used to describe the Romney-Ryan budget plan by economists, The Washington Post, the nonpartisan Tax Policy Center and Bloomberg News.

Mitt says his plan will cut taxes for all Americans, increase defense spending and still cut the deficit.  And, get this; he claims that his plan will be “revenue neutral.” He says that the costs will be offset by the elimination of tax deductions.  Yet he steadfastly refuses to provide details.  The only cuts he’s mentioned are funding for Public Broadcasting and Planned Parenthood.

In fact, after more than a year of campaigning for the office of President of the United States, Mitt has not provided any numbers for his plan…until tonight.

During the second debate with President Obama, Mitt announced the number five…in reference to his 5-point plan for the economy.  But don’t expect Mitt to provide any details for that plan, especially with regard to his budget figures.

He either can’t, or won’t.

Romney can’t explain his budget plan.  Liein’ Ryan can’t explain it.  And one of the campaign’s top surrogates can’t explain it.  When Sen. Marco Rubio was asked by Lawrence O’Donnell to name the tax deductions that would be eliminated, he admitted he couldn’t name a single one.

Instead of offering details about his plan, all Mitt says is “trust me.”  Now, tell me, Mitt, why would we do that?  You say one thing today. Then a day or two later, you say something else.  You’ve had at least four answers to every question.  Indeed, you’ve had more positions than the Kama Sutra.

When it comes to your economic plan, Mitt, I’ll trust the opinions of President Obama, President Clinton, most independent media, and non-partisan economists.

Time To Call The Churches’ Bluff.

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Since the formation of the Moral Majority in the late seventies, many churches have immersed themselves in politics.  Pastors, particularly evangelical pastors, have implored their flocks to vote for Republicans despite Internal Revenue System rules which prohibit a non-profit 501c3 from engaging in politics at the risk of losing its tax-free status.

Yesterday, pastors across the nation challenged the IRS rules by telling their members how to vote based on the churches’ stances with regard to abortion, gay marriage and other so-called “values” issues.  In other words, they told their members to vote for Romney.

The churches even recorded their political messages with hopes that the IRS will attempt to change their tax status.  Apparently, they believe that any such attempt by the IRS will result in a backlash, unleashing them to take any political stance they want.

The churches consider it a First Amendment issue of free speech.  They assume the conservative Supreme Court will see it their way.  At the very least, they assume a Teapublican-controlled Congress will pass a constitutional amendment in their favor.

However, the issue is not about free speech.  It’s about taxes.

Certainly, pastors and churches have the right to make any political statements they want.  And the IRS has the power to determine their tax status. If pastors want to use their unique status as “spiritual” advisers to engage in partisan politics, they should be held to the same standards as any other Political Action Group.