Category Archives: Taxes

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.

Lies, Damn Lies and Teapublican Lies.

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In every field or endeavor, there are people who have difficulty with the truth. Most of us tell the occasional little white lie, often to keep from hurting another’s feelings. Many of us tell lies to make us feel better or to explain a mistake. And then there are chronic, sociopathic liars who make statements that are provably false.

It’s in the latter category where Teapublican candidates, Fox News Channel hosts, religious conservatives and their supporters reside.

Want to kill Medicare? You vote to replace it with vouchers then tell your constituents that you voted to “save” it. Want to lower taxes for the wealthy? You re-position attempts to eliminate tax subsidies and create fairness as “Class Warfare.” Want to kill the EPA? You tell people that environmental regulations are “killing job creation.” Want to help your corporate funders privatize government agencies? You talk about “government waste” and let corporations cherry-pick the most profitable functions. Want to distract voters from your role in the collapse of our economy? You blame it on the poor, minorities and unions. Want to get rid of ATF and the new Consumer Financial Protection Agency? You simply block the appointment of the agencies’ directors. Want to make President Obama a one-term president? You block virtually every job creating initiative then tell people that his economic policies have failed.

The load of B.S. coming from Teapublicans would fertilize every planet in our solar system.  And it’s growing by the minute.

How do they get away with such blatant, provably false claims? They count on creating anger and mistrust in government. They count on people who are uninformed or misinformed (in other words, Fox News viewers). They count on voters who won’t take the little bit of time needed to research their outrageous claims.

Will their lies work again in 2012? How informed are you? How about your friends and neighbors?

Presidential Backstabbing.

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Before President Obama was even sworn into office, our economy and housing markets completely imploded. The economic collapse was labeled the Great Recession – the worst economy since the Great Depression. After the Bush-endorsed bank bailout, President Obama rescued our automotive industry and requested a stimulus bill to get our economy moving again. In requesting the stimulus bill, he said he hoped it would reduce unemployment, holding it to 8 percent or less. Yet despite the stimulus, unemployment soared to more than 9 percent and Republicans denounced the stimulus as an expensive failure.

On the surface, it would seem Republicans were right. However, it is now obvious that President Obama was fighting against a stacked deck – the result of inaccurate reporting. More than two years after Obama took office, the Congressional Budget Office released data showing that the original collapse was far worse than originally reported. More recently, the National Realtors Association admitted that sales of existing homes have been overstated.

The new data means that the stimulus bill was far from a failure. Rather it was woefully inadequate. Had Congressional Republicans agreed to the original, larger stimulus, we might have seen the economy rebound by now with greatly reduced unemployment. Instead, Republicans fought for a smaller stimulus, and many fought for no stimulus at all!

Moreover, Republicans have blocked every attempt to improve the economy. They have blocked increased regulation of the financial industry to prevent future meltdowns. They have blocked any and every attempt to force the wealthy to pay their fair share of taxes. They have blocked every attempt to remove anachronistic tax deductions for oil companies. They have blocked attempts to remove tax incentives for corporations that ship jobs overseas. They have invoked the filibuster a record number of times. They have blocked a record number of judicial and department nominees.

Teapublicans have done everything possible to make President Obama a one-term president, regardless of the harm they cause to the economy and the nation in the process. All of this has become abundantly clear.

The only remaining questions are whether or not American voters are smart enough to recognize the backstabbing for what it is. And whether or not they will make Teapublicans pay.

Seven Common Sense Ways To Fix Our Economy.

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1 – Re-institute the Glass-Steagall Act.

The Glass-Steagall Act was initially signed into law in 1933 to prevent a repeat of the conditions that led to the Great Depression. The law created a firewall between banks of deposit and investment banks, recognizing that a bank of deposit is entrusted with maintaining the financial security of its deposits while an investment bank, such as a stock brokerage, engages in inherently risky activities. When the same financial institution is allowed to participate in both acitivities, the deposits are placed at risk. And since the government insures deposits through the FDIC, it’s also at risk.

Unfortunately, the law was repealed in 1999 and the lax regulation of the Bush administration allowed banks to collapse as the result of the very conditions the law was designed to prevent.

2 – Return Capital Gains Taxes to Reagan-era levels.

During the Reagan administration, the maximum rate on capital gains (money derived from investments) was raised to 28 percent. But, to reward their wealthy masters, Teapublicans have cut the rate to just 15 percent and they want to eliminate capital gains taxes altogether.

Since the wealthiest 1 percent of our population makes most, if not all, its money from capital gains on investments, that means millionaires and billionaires pay an income tax rate of 15 percent or less. On the other hand, many of us who make money from salaries or as sole proprietors pay an income tax of up to 33 or 35 percent, not including payroll taxes for Social Security and Medicare. See the problem?

3 – Return Income Taxes to Clinton-era levels.

Under Reagan, the maximum federal income tax rate averaged 65.70 percent. Under Clinton, the maximum income tax rate was 39.60 percent. Under Bush, the maximum income tax rate dropped to 35 percent leading to massive federal deficits.

Obviously, our current maximum tax rate has weakened our economy.  And unless we find ways to generate more revenue, we will be unable to decrease our debt or repair our infrastructure.

4 – Eliminate the cap on Social Security Withholding.

For the past several years Social Security taxes are withheld on only the first $106,800 of taxable income. By eliminating the cap, we would generate a great deal more money for Social Security, and by paying benefits to only those who actually need them, the Social Security trust fund would be solvent well into the forseeable future, perhaps permanently.

5 – Cut unnecessary duplication of city, county, state and federal offices.

If you want to build a commercial operation today, you may have to trek to as many as four offices to obtain the necessary permits. That’s because each level of government has its own unique regulations. Since environmental issues are necessarily different between Los Angeles, CA and Siren, WI, the need for different regulations is understandable. But why not streamline processes by combining similar functions in a single office? This would not only cut red tape, it would increase efficiency and cut costs.

6 – Buy local.

For the past 40 years, US manufacturers have shipped raw materials to other nations.  Then shipped the finished products back to the US.  This is not only destroying our economy, it is destroying our environment.  In fact, a case can be made that an enormous Hummer SUV is more environmentally friendly than a Prius.  That’s because the Hummer is made primarily in the US.  Eschewing foreign-made products would do wonders for American workers and everyone who breathes.

7 – Buy small.

Walmart, Target, Amazon, etc. are killing local retail stores which has led to the hollowing out of our central cities and the loss of jobs.  Yes, “big box” stores hire many employees, but they often pay less, provide fewer benefits and contribute less to the local economies.  Moreover, by emphasizing cheaper foreign-made products they continue to depress US manufacturing. 

Everyone likes lower prices and greater selection.  But who wouldn’t be willing to pay a bit more if it means our family members, friends and neighbors can keep or get a decent job? 

Proof That Trickle-Down Economics Work.

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In the early 1980s, Ronald Reagan’s Budget Director, David Stockman, revived an old economic theory as the basis for the Reagan administration’s economic policy. Reaganomics, aka Trickle-Down economics, aka Supply-Side economics was based on the “Horse and Sparrow” theory of the 1890s, which some believe was responsible for the Panic of 1896.

The basis of the theory is the notion, “If you feed a horse enough oats, some will pass through to the road for the sparrows.”

Of course, Reagan and Stockman stated the benefits of their plan somewhat differently. Their belief was that if you cut taxes for the wealthy, particularly those on capital gains from investments, the wealthy would spend the extra money on additional goods and services thereby creating more jobs for the middle and lower classes. Despite its many critics, the theory has been championed by Teapublicans ever since.

Has it worked? One might say that it has worked all too well…for the rich.

According to a recent study by the non-partisan Congressional Budget Office (CBO), from 1979 to 2007 after-tax income for the top 1 percent of US households has nearly tripled, rising by 279 percent. Over the same time period, after-tax income for the middle class grew by just 40 percent. And those at the bottom saw their incomes increase by just 18 percent.

So, by every measure, Trickle-Down economics have reduced income to a mere trickle for all but the very wealthy. Or, if you relate the results to the “Horse and Sparrow” theory, the supposed benefits are just plain horse dung.

Teapublican Lie #22.

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“Welfare moms are worse for our economy than welfare CEOs.”

For years, you’ve heard Teapublicans rail against freeloading welfare moms. They portray them as lazy, drug-addled minority women who turn themselves into baby factories to scam the system and live in relative luxury. Right?

In fact, a Teapublican candidate for the Nebraska Unicameral recently compared them to racoons saying, “They’re going to do it the easy way if we make it easy for them.” And Florida Governor Rick Scott recently signed into law a bill that requires Floridians to submit urine, blood and hair samples before they can receive cash aid from the state.

However, according to the statistics, the majority of those who receive Aid For Dependent Children are white and receive benefits for 2 years or less. Half of all welfare recipients leave the program in the first two years.  Most have only one or 2 children.  And the majority are over 20 years old.

Many succumbed to the “if you really love me, you’ll…” line. But many are divorced and a few are widowed. Contrary to Gov. Scott’s expectations, very few are chemically dependent. And they’re hardly living in luxury.

For example, those who qualify for W-2 Transition (W-2 T) funds reserved for participants who have limited ability to work receive payments of $628 per month with a lifetime eligibility limit of 60 months. Not exactly what Teapublicans want you to believe about so-called “welfare queens” is it?

Now, let’s examine the “welfare kings” of corporate America.

We have given millions of acres to mining companies while requiring no royalties in return. We gave railroads millions of acres and millions of dollars in subsidies for construction. We built and maintain 340,000 miles of logging roads for the timber industry in addition to giving them subsidies of more than $111 million annually. Subsidies to oil and gas companies total more than $40 billion per year.

We provide billions to corporations for the research and development of new drugs and new weapons systems, even providing foreign aid to other nations to help them buy our weapons. We offer corporations insurance at below market rates to encourage overseas investments in high-risk nations. We provide farm subsidies to corporate farmers. State and city governments provide incentives to attract large corporations. They also provide millions to help billionaire owners of sports franchises to build new stadiums and sports arenas.

And, lest you think the Troubled Asset Relief Program was the first time we bailed out financial institutions, don’t forget that we forked over $500 billion to the savings and loan industry in the 1980s.

In short, we allow large corporations to privatize their profits and socialize their risks. Is it any wonder that in previous generations their owners were called “Robber Barons?”

A Look Into The Future of Teapublican Budget Cuts.

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Despite the fact that our $14 trillion debt was largely created by Teapublican presidents, now that we have a Democratic president, the Teapublican-controlled Congress is dead set on forcing enormous budget cuts at any cost.

Set aside for a moment that their primary agenda is to end regulations for their corporate masters and to starve only those departments that are contrary to their ideology (primarily the EPA and the Dept. of Education). The real concern is what such draconian cuts will do to our economy.

If you want to see a preview of the consequences, you need only to look to Greece.

As you likely know, the Greek government is in danger of default. To “cure” its ills, Germany along with the other nations that are part of the European Union, agreed to bail out Greece. But only if Greece would enact drastic spending cuts and large tax hikes.

The result? It would seem that the “cure” is in danger of killing the patient. Indeed, the cuts have put the entire European Union in recession. And the symptoms have spread to the US. Every time the European Union sneezes, our markets react.

The problem is that the new austerity measures have resulted in more Greeks losing their jobs. And without jobs, the Greeks are unable to pay the increased taxes. Many have been forced to pay taxes out of their savings (if they have savings). Many can’t pay their taxes at all. That only results in more deficits, more spending cuts, more tax increases, and so on.

Although Greece is the most extreme example of an economy in trouble, it’s not alone.

Ireland’s economy is also particularly weak. You may remember that before the global recession, Ireland was called the “Celtic Tiger” having built its reputation by luring foreign corporations (many from the US) through some of the lowest corporate taxes in the world. Indeed, Teapublicans have repeatedly cited Ireland as a model for reforming our own corporate tax structure.

One would hope that our nation could learn from these examples of what not to do. But, since Teapublicans mostly ignore anything beyond our borders (except for oil deposits), I’m not hopeful.

Teapublican Lie #18.

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“The wealthiest Americans pay a disproportionate share of federal taxes.”

Seriously? That’s the crapola they want us to believe?

To counter President Obama’s plan to pay for his Jobs Act by raising taxes on the wealthiest Americans, Teapublicans have gone on the offensive (Yeah, I know, they were already offensive enough) to protect the wealth of their political puppeteers. Through a series of appearances on Sunday morning talk shows, they point to data from the Tax Policy Center showing that the top 1 percent of Americans pays 38 percent of federal income taxes.

Assuming that data is correct, it actually disproves the Teapublicans’ point. After all, by most estimates, the top 1 percent controls more than 39 percent of the nation’s financial wealth (excluding their multi-million dollar homes, high-priced cars, etc.). Therefore, the top 1 percent is actually paying less than its share of federal taxes. And, thanks to Teapublicans, the share of income paid in taxes by the 400 richest Americans has fallen by nearly 40 percent, even as their incomes have approximately quadrupled!

It’s good to be rich. Especially in Teapublican America.