Category Archives: Taxes

Requiem For The American Dream.

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This isn’t so much a blog post as an obituary.  The American Dream was defined as the ability for Americans to rise above their parents’ experience.  The ability to, as the result of education and hard work, become a success.  It is measured by the distribution of wealth and upward mobility.

In both of those measurements, the US now trails most of the world’s advanced nations.  A report by the Organization for Economic Co-Operation and Development (OECD) found that social mobility between generations is dramatically lower in the US than Denmark, Australia, Norway, Finland, Canada, Sweden, Germany and Spain.

The American Dream didn’t pass into history as the result of natural causes.  It was starved to death by Teapublicans who signed Grover Norquist’s “no new taxes” pledge.  It was bludgeoned by the likes of George W. Bush, Richard “The Dick” Cheney and their cartel of oil companies and military defense contractors.  It was driven off a cliff by greedy Wall Street bankers and their enablers such as former Senator Phil Gramm.

Republicans may have led the attack on the Dream. But many Democrats participated. President Clinton signed the Republican bill that revoked the Glass-Steagall Act allowing Wall Street bankers to gamble with your money and our futures.  He also signed a Republican bill opening commodity markets to gambling.

Many Congressional Democrats cast their votes alongside Republicans to starve government through the Bush tax cuts.  And they added their names to legislation approving the invasion of Iraq.

As the result of these actions, corporations were allowed to rake in large profits while sending our jobs offshore.  They were allowed to stash profits in offshore accounts to avoid paying taxes.  Banks were allowed to privatize their profits and socialize their failures.  The wealthy got even wealthier while paying lower taxes.  Banks got homeowners to sign mortgages at inflated interest rates, then took their homes to support the banks’ gambling habit.

The only question left is what now?  Will we allow economic disparity to grow dividing our nation into the haves and have nots?  Or will we resurrect the Dream?  The coming elections will provide the answers.

What Politicians Aren’t Telling You About The Economy.

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As a result of the 2008 economic crash created by the lack of regulation of Wall Street gamblers, new home construction has slowed to a relative trickle.  According to the National Associaton of Home Buildiers (NAHB), the number of housing units started in the U.S. totaled only 609,000 in 2011.  That compares to 1,131,000 in 2006 as measured by the US Census Bureau and Department of Housing and Urban Development.

Using NAHB estimates that for each new home built three jobs are created, these numbers represent a loss of more than 1.5 million jobs.  They also represent a loss of $67,000 in federal taxes and $23,000 in state and local taxes for each home not built!

And that’s just part of the problem.  In addition to the jobs lost that are directly related to home construction, there are job losses for landscapers, pool builders, movers, the makers and sellers of furniture, window treatments, appliances and more.  Indeed, a writer for The Outer Banks Voice tracked the number of people involved in building his new home in 2010.  He counted a total of 219!

Now multiply that number of 219 times the 522,000 fewer homes built in 2011 than before the Great Recession and you see the scope of the problem.

But there is some good news.  NAHB estimates 1.7 to 1.8 million new homes are needed each year to accommodate population growth and replacement of older housing stock.  So we are creating tremendous pent-up demand.  Sooner or later, the housing market is going to explode.  But it’s going to take time.  Those who bought homes between 2005 and 2008 were burned by home ownership.  They were taken advantage of by unethical mortgage lenders.  They were foreclosed by uncaring banks.  And even if they didn’t lose their homes, they have found that their homes are worth far less than before.

How do you get these people to forget the recent past and jump into the market again?  Given the low prices of homes and low interest rates, there are plenty of incentives.  But, unfortunately, it’s going to take years.

Americans tend to have short memories, but not when it comes to their money.

How “Starve The Beast” Became “Starve The Poor.”

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For years, Teapublicans have marched to a tune called “Starve The Beast.”  The premise is that government has gotten too big and expensive so, in order to bring it under control, they must deprive it of the revenue needed to fund it.  As band-leader-in-chief, President George W. Bush cut taxes, primarily for the wealthy.

As a result of those tax cuts, two unfunded wars and a bill designed to buy the votes of seniors in time for the 2004 election, the Bush administration squandered the Clinton-era budget surpluses and led us into massive deficits and an ever-growing national debt.

Rather than being alarmed by these Bush decisions, Teapublicans reveled in them.  And, when the economy collapsed in 2008, Teapublicans recognized two opportunities:  One, by blocking every attempt to speed up the recovery, they hope to make President Obama a one-term president.  Two, by howling about the enormous deficit and debt they created, they hope to make it easier to cut government and the things Teapublicans seem to hate most: Medicare, Medicaid and Social Security.

They say Americans can no longer afford such programs.  They point to the long-term “instability” of Medicaid and Medicare while failing to admit that much of that instability is caused by the skyrocketing medical and pharmaceutical costs they refuse to address.  I believe their hatred for “Obamacare” is driven by the fact that it will help mitigate costs, thereby saving Medicaid and Medicare.

Likewise, Teapublicans seem to relish every new report on Social Security that shows the program running out of funds in the not-too-distant future.  They point to the large group of retiring Baby Boomers as the reason the program needs to be privatized (gotta get it out of the clutches of big government, you know).

What they fail to mention is how easily Social Security could be permanently fixed.  Either increasing individual contributions to the plan by little more than 1 percent or removing the cap on incomes above $106,000 would protect Social Security for future generations.  But that wouldn’t allow Teapublicans to meet their long-term goals of privatizing Medicaid, Medicare and Social Security.

As for the people whose health care would be left at the mercy of large, greedy insurance companies and the retirees who might be relegated to dumpster-diving the next time the stock markets crash, no worries.

Teapublicans are more than willing to starve the poor in order to Starve The Beast.

The Politicization Of Everything.

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The publicity for the Trayvon Martin killing served to emphasize the depths of our culture.  When the Samford, Florida Police Department announced that the killer, George Zimmerman, would not be charged, Martin’s family was understandably outraged.  They asked MSNBC’s Rev. Al Sharpton to pick up the case and publicize it nationally.  Of course, that meant that Fox News Channel and right-wing radio had to take the side of George Zimmerman.

If a travesty such as the Martin case can be politicized, I guess we shouldn’t be surprised that every other part of our culture is viewed through the same divisive lenses.  We have politicized science, education, health care, contraception, religion, race, women’s rights, the environment, the military, our judiciary, veteran’s affairs, Social Security, Medicare, guns, energy, agriculture, sports and, of course, journalism.

That hasn’t always been the case.  Prior to the early 80s, evolution was considered settled science.  Few questioned our education system.  Religion did not intrude in the classroom, except in parochial schools.  Outside of our military, no one carried guns except police and criminals.  And the media were bound by high standards of objectivity.

What changed?

Following the debacle of Watergate, the moribund Republican Party made an unholy alliance with evangelical leaders. Later, the Fairness Doctrine was repealed unleashing conspiracy talk radio.  Evangelists flooded radio and cable television with conservative politics and the message that Christianity was under attack.  Greedy right-wing mouthpieces like Rush Limbaugh, Sean Hannity and Glenn Beck filled the airwaves with their theories of a New World Order.  Rupert Murdoch built a media empire on hate and Teapublican talking points.  And worst of all, the National Rifle Association and American Legislative Exchange Council began writing legislation and recruiting state legislators to serve their ideological agendas.

And our conservative-leaning populace sucked it all in.

So here we are…arguing about racism, judicial “activism,” contraception, the origin of “personhood,” immigration, Bible studies and prayer in the classroom, religious messages in government buildings, cutting taxes for the rich, guns on campus, etc., etc., etc.

And all the while we’re arguing, the real problems such as a crumbling infrastructure, economic inequality, the exodus of high-paying jobs, too-big-to-fail corporations, climate change, the extinction of wildlife, an increasingly inaccessible and unaffordable health care system, and massive national debt are only getting worse.

What If Teapublicans Get Their Way In 2012?

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After watching their debates and reading the conservative legislation being pushed through Congress and our state legislatures, it’s clear that Teapublicans will not be satisfied until they:

– Replace Social Security with retirement accounts based on volatile stock markets.
– Replace Medicare with vouchers leaving seniors at the mercy of private insurers.
– Repeal “Obamacare” making health care unaffordable for 60 million people.
– Eliminate insurance coverage for contraception.
– Eliminate all forms of public assistance for the poor.
– Eliminate unemployment insurance.
– Replace progressive taxes with a flat tax to benefit the wealthy.
– Reduce or eliminate taxes for corporations.
– Eliminate the EPA allowing corporations to foul our air and water.
– Eliminate oil and gas regulations leading to more environmental disasters.
– Open national park lands, such as the Grand Canyon, to mining.
– Eliminate Wall Street regulations designed to prevent economic collapses.
– Eliminate the Consumer Financial Protection Bureau that regulates credit cards.
– Eliminate the Federal Reserve.
– Eliminate the Department of Labor along with labor unions.
– Eliminate pensions and benefits for public employees.
– Eliminate the Department of Education along with public schools.
– Mandate that schools ban the teaching of evolution.
– Eliminate the US Postal Service.
– Eliminate funding for women’s health care through Planned Parenthood.
– Eliminate all subsidies for the development of alternative energy.
– Eliminate funding for the National Endowment for the Arts.
– Eliminate funding for National Public Radio and Public Television.
– Privatize prisons, roads, parks and virtually every other public entity.
– Eliminate all restrictions on firearms and ammunition.
– Eliminate all restrictions on hunting.
– Repeal the Constitution’s establishment clause that prevents a state-sponsored religion.

Seriously, is this the kind of country you want?

On Being Arizona.

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Arizona’s finger-wagging, scorpion-eating Governor and its Teapublican legislature continue to blame President Obama for federal policies they claim have nearly bankrupted the state.  They brag that the state has been able to weather the economic downturn only because of their firm, cost-cutting measures.

But based on their actions, it’s clearly untrue.  The Arizona legislature apparently has so much money that it feels comfortable throwing it away!

For example, by cutting corporate taxes 18 years in a row and approving millions in tax credits for private schools, the state has dramatically reduced revenue. At the same time, the legislature wants to force the state Board of Regents to spend more than $13 million on metal detectors and storage lockers to keep guns out of college classrooms should a misguided new gun bill be passed into law.

One legislator wants to spend more than $8 million on a special election to put a Teapublican version of redistricting maps before the voters because he doesn’t like the maps created by an Independent Redistricting Commission. The Teapublican legislature has already spent tens of thousands on legal fees in an unconstitutional attempt to remove the chair of the Independent Redistricting Commission. It has spent millions in legal fees to defend SB1070. It has spent tens of thousands for legal fees in an attempt to stop voter-approved medical marijuana. And it’s spending tens of thousands more to fight the Patient Protection and Affordable Care Act (aka Obamacare).

And that’s just scratching the surface.

Despite a voter-approved 1 percent increase in the state sales tax intended to improve education, the Teapublican legislature refused to allocate the funds to public schools.  The legislature is treating the funds as a “surplus,” so it can further cut taxes for corporations and the wealthy.  As a result, teacher salaries are now so low that many automatically qualify for food stamps and Medicaid.  Some schools can no longer afford to perform routine building maintenance, to purchase replacement school buses, or even to buy textbooks.

Under Teapublican leadership, Arizona’s state capitol has been sold to private investors, thousands of children are being denied access to health insurance jeopardizing thousands of health care jobs throughout the state, and state parks have been closed or sold to local communities.

Instead of trying to correct these problems and improve the state’s moribund economy, Teapublicans have proposed bills that would permit hunters to use silencers and high-capacity magazines.  They’ve passed a bill allowing Bible study in public schools while banning Latino history courses.

They’re considering a new “birther” bill, an assortment of anti-union bills, a variety of anti-immigrant bills, and the usual anti-abortion bills.  And, in what appears to be the centerpiece of Teapublican legislative quackery, they’re pushing a bill that would allow employers to deny contraception for female employees unless the women can prove that the prescription is needed for medical reasons.  (I can see it now – female employees being asked to climb on their desks for a vaginal examination by their bosses.)

Of course, if many of these bills are signed into law, they will immediately be challenged in court.  As a result, the only people who are thriving in Arizona are the attorneys.

The New GOP = God’s Official Party?

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Does God take sides in politics? Does He select candidates? Does She choose the issues? Apparently, the GOP thinks so. For more than 30 years, conservative politicians have pandered to evangelical “Christians.” They have bowed at the altar of the likes of Jerry Falwell, James Dobson and Pat Robertson. In return, evangelical pastors have preached conservative “values” from the pulpit.  And bishops have condemned those with whom they disagree.

Teapublicans have become so secure in their faith that God intended the US to be a God-fearing, anti-government, anti-tax, anti-regulation, anti-union, anti-gay, anti-minority, anti-abortion, anti-science, anti-education nation, they have convinced themselves that all Democrats and liberals are evil…the followers of Satan.

They hear this nonsense every day on “Christian” radio and television. They hear venonmous diatribes from Rush “Boss Hog” Limbaugh and other right wing radio hosts.  And they hear the daily rants and Teapublican talking points of Fox News Channel.  All of this has made conservativism every bit as much a religion to them as Catholicism and Protestantism.

Teapublicans have convinced themselves that every American will be rich as soon as they get the “big-government, high-taxation” Democrats out of their lives.  They believe public education is a liberal tool intended to indoctinate their children in anti-Christian beliefs such as evolution.  They believe that, if climate change really exists, it’s simply God’s way of testing the faithful.  They believe…well, they just believe.

As a result, they cannot ever allow themselves to compromise with the “evil-doers” on the left.  After all, that would be akin to compromising with the Devil himself.

The Teapublican Time Machine.

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For several years, Teapublicans, especially white pre-Baby Boomers, have fondly remembered the days of their childhood when life was simple. When they could gas up the ’57 Chevy for $3.00 and cruise Main St. all night. It was a white-dominated “Father Knows Best” society of tidy neighborhoods with white picket fences.

Now those same Teapublicans seem determined to take us back to that era.

They can’t seem to grasp that those post-war days are really gone. Those days simply can’t, and won’t, be duplicated. Moreover, Teapublicans can’t seem to grasp the cultural dynamics that created the era they so fondly remember. It was an era of union-based manufacturing jobs that paid well enough to allow Mom to stay home with the kids. It was an era of small retailers, instead of big box chains; of neighborhood diners, instead of fast food chains. It was an era when everyone understood the importance of government and of working together – an attitude necessary for the defeat of Hitler and Hirohito. And it was an era when most of the products we used were made in the USA.

What these nostalgia-loving Teapublicans too easily forget are the seamy underpinnings of that era. African-Americans were segregated and denied the vote. Women were left out of business and politics. Young women were disdained and abandoned if they were unlucky enough to get pregnant before marriage. They were not allowed to attend school. Many were sent away to religious schools to be “rehabilitated” and have their babies in seclusion before giving them up for adoption. Many were simply barred from leaving home so the neighbors wouldn’t find out that they had become “fallen” women. If they chose to keep their babies, they received no child care payments. And if they didn’t want to have their babies, their choices consisted of tumbling down stairs, coat hangars, lye or back-alley butchers.

Yet the Santorum and Gingrich led Teapublicans want to revisit those days. Indeed, the policies being pushed by these candidates may well turn the “way back clock” back past the 60s and 50s, past the horrors of World War II, past the Great Depression, and past the Roaring 20s…all the way back to the 1800s, the days of Robber Barons. A time prior to the formation of the middle class. A time when there were no safety nets for those who were down on their luck. A time when rich industrialists ran everything, and when everyone else slaved 7 days a week to scratch out an existence.

Lest you think I exaggerate, consider the following legislative initiatives and proposals: All of the Teapublican candidates are on record as saying they would cut taxes, especially for the rich and for large corporations. They would eliminate capital gains taxes for the wealthy. At the same time, they would raise taxes on the poor. They would repeal the Patient Protection and Affordable Care Act making it impossible for tens of millions Americans to afford health insurance. And they would cut or destroy Medicare and Social Security.

They would drastically cut government, eliminating the Departments of Education and Commerce at a time when our economy is just beginning to show signs of recovery. They would eliminate the Environmental Protection Agency allowing large corporations to pollute our water and air at will with no consequences. They would continue or increase oil subsidies under the GOP’s “drill, baby drill” mantra. At the same time, they would eliminate subsidies for sustainable sources of energy.

They would likely start yet another war by attacking Iran, unleashing a torrent of hatred from the entire Muslim world and destablizing the Middle East and most of Asia. They would deny women the right to control their own bodies, even making it more difficult to obtain contraception. And perhaps most alarming of all, they would weaken the Constitutional separation of church and state.

Interestingly, despite the Teapublican candidate’s promises to shrink the federal government and cut the national debt, their fiscal policy proposals would actually increase the national debt according to the non-partisan US Budget Watch, while President Obama’s proposals would begin to shrink the deficit!

Even if you’re not a progressive as I am, a trip backward in the Teapublican time machine has to be an alarming prospect for all but the most right wing religious zealots.

A True Conservative.

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During the Teapublican primaries, we’ve all heard candidates who claim to be true conservatives. But upon listening to their plans, I have come to the realization that the only things they really want to conserve are their own fortunes.

It was during a recent Teapublican debate that I discovered I’m definitely not a liberal – never have been. I’ve been a conservative all along.

I believe in conserving clean air and water. I believe in conserving our forests, our streams and our oceans. I believe in conserving wildlife. I believe in conserving fossil fuels by not using them wastefully. I believe in conserving our natural resources by not subsidizing large corporations to exploit them. I believe in conserving our Constitution. I believe in conserving the Bill of Rights which provides equality and the pursuit of life, liberty and happiness. I believe in conserving the separation of church and state.

I believe in conserving lives by only going to war as an absolute last resort. I believe in conserving taxpayer money by eliminating corporate subsidies, off-shore tax havens and no-bid defense contracts. I believe in conserving American middle class jobs. I believe in conserving the American tradition of building things rather than destroying them through vulture capitalism. I believe in conserving the rights of workers to bargain for fair compensation. I believe in conserving our electoral system by banning contributions from corporations and lobbying groups.

I believe in conserving our citizens’ homes and savings with common-sense regulations for greedy financial institutions. I believe in conserving our citizens’ health by providing access to affordable health care. I believe in conserving safety nets such as Social Security, Medicare and Medicaid. I believe in conserving the rights of all people to pursue the marital relationship of their choice. I believe in conserving the rights of women to control their own bodies even if I disagree with some of their decisions. I believe in conserving our future by providing all children with the opportunity to receive a good education.

Finally, I believe in conserving America’s standing as a role model for the world rather than as a bully. And I believe in conserving the idealism that has always driven Americans by focusing on what can be, rather than what once was.

Masters Of The Double Standard.

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The field of Teapublican “presidential” (and I use the term loosely) candidates have proven, once and for all, that Teapublicans are almost completely devoid of ethics. I’d call them hypocrites, but we’re talking about Teapublicans here, so, for their benefit, I’ll try to use small words.

Teapublicans famously fight for so-called family values, yet many support Newt Gingrich who is twice divorced and whose second wife stated that Newt demanded an “open” marriage. In other words, a marriage that would allow him to boink anyone he wanted. So much for the “sanctity” of marriage issue.

Gingrich also admitted to 84 ethics violations while Speaker of the House and resigned in disgrace. Most of these violations were the result of Newt gaming the system to enrich himself. So much for the anti-Washington, anti-corruption issue.

Turning to the front-runner, Teapublicans are furious with so-called “Obamacare.” But what did President Obama use as a model for his health care reform? Why “Romneycare,” of course. You simply can’t be against the Patient Protection and Affordable Care Act and support Mitt Romney. So much for the government health care issue.

Romney is also a “Vulture Capitalist” (Newt’s words, not mine) who led a private equity firm that purchased undervalued corporations with other peoples’ money, saddled the corporations with large management fees then sold off their assests while laying off thousands of American workers. So much for the jobs issue.

In addition, Romney has admitted to “parking” large amounts of money in off-shore bank accounts to avoid paying taxes. And though he has not yet released his tax returns, he estimates that his tax rate is “somewhere in the area of 15 percent.” Given that Mitt is a multi-millionaire, that’s a nice area to be in, especially considering that much of the middle class is taxed at a rate of 30-35 perecent! And, if Romney is elected and allowed to institute his recommended tax policies, his tax rate will dramatically drop while the tax rate for the middle class will remain virtually unchanged. And the tax rate for the poor will actually go up! Moreover, Romney’s tax plan will add tens of billions of dollars to the deficit. So much for the deficit and debt issues.

Voter support for these two only shows that Teapublicans are not really for anything. They’re simply against Obama. And many of them don’t even know why.