Tag Archives: tax

Folly indeed – Our Non-representative House of Representatives

Posted on December 21, 2012 by Terry| 1 Comment
GOP Cliff Diving

The House of Representatives is anything but representative. Democratic House candidates received more votes than Republicans in this past election, yet thanks to gerrymandered districts, Republicans somehow maintain House control. The non-representative House of Representatives is about to drive the economy to ruin, defying what Americans want from these negotiations.

And over the cliff we go…

Early on Monday, it appeared that a deal to avert the so-called fiscal cliff was within sight.  President Obama agreed to spending cuts, including cuts in entitlement spending.  Many Democrats weren’t happy that Obama evidently agreed to a change in the way inflation is calculated for adjusting federal benefits.  Obama also moved on his prior insistence that tax rates go up for all earners over $250,000, raising that number to $400,000.  John Boehner finally gave in and agreed that tax rates would have to rise for high earners.  With the moves from Obama and Boehner, on Monday, a deal appeared imminent.

Then, within the course of a few hours, John Boehner caved to the conservative nutjobs that control the Republican Party.  Suddenly Boehner’s “Plan B” appeared, where Republicans would unilaterally pass legislation in the House that extended tax cuts for everyone making less than $1 million a year.  It was purely a political ploy, as passage of such a bill in the House would only serve as a political tool Republicans could wield in trying to convince the public they were being reasonable on fiscal cliff negotiations.

Yesterday, Boehner pulled “Plan B” in the House and adjourned for the holidays.  They couldn’t even get enough votes within their own party to pass the legislation.  One and a half months after a disaster of an election for Republicans, and they still haven’t seemed to have gotten the message that the political winds have changed.  Republicans are still allowing the radical conservative wing of the party to dictate the party’s direction.

Why are we in this mess?  Why, with months to find a solution to this mess, are we about to merrily tumble over the fiscal cliff, even when politicians know the severe harm it will cause to our economy?  Look no further than our non-representative House of Representatives.

Conservatives constantly point to the Constitution and our founding fathers on issues such as gun rights and other issues.  I wonder what the founding fathers would think of today’s political system that allows for a House of Representatives to be composed of a NON-representative suite of politicians.  Even with the political and economic headwinds against him, Obama decisively beat Romney. Even with Democrats defending many more seats than Republicans, Democrats managed to GAIN seats in the Senate.  In the House?  DEMOCRATIC HOUSE CANDIDATES RECEIVED MORE VOTES IN THE HOUSE THAN DID REPUBLICAN HOUSE CANDIDATES!!! Yet thanks to a system that allows state legislatures to gerrymander House districts, Republican-controlled states managed to game the system and send more Republican House members to Washington than the vote of the American people would imply.

In short, our House of Representatives is anything BUT representative.  The American people are strongly siding with Obama’s positions in the fiscal cliff negotiations.  But thanks to gerrymandered House districts that allowed Republicans to control the House, despite receiving a minority of the votes, fiscal cliff negotiations are going nowhere.  Gun control legislation will go nowhere, despite the tragedy in Newtown.  ANY significant legislation is likely to go nowhere over the next 2 years, thanks to a Republican-controlled House who continues to insist on defying the voice of the American people, and instead focus on the path set forward by the hyper-radical conservative wing of their party.

Given what happened in the November election, given that the American people are behind him on the fiscal cliff issue, and given all the political clout Obama SHOULD have on the fiscal cliff issue, Obama has gone much further to meet Republicans in these negotiations than many think he needed to go.  But here we are 10 days away from tumbling over the cliff, and our non-representative House of Representatives have walked out on the Obama/Boehner negotiations, and have adjourned for the holidays.  Boehner even had the gall to say that it’s “now up to Obama and Harry Reid” to pass legislation to avoid the fiscal cliff.  WHAT THE HELL??  Republicans close up shop and leave Washington, and then have the guts to say it’s up to Obama and Harry Reid to solve this?

I hope the American people are paying attention.  In general, in mid-term elections, the president’s party losing seats in Congress.  I hope the American people say enough is enough in 2014, and, despite the gerrymandered districts, move us towards a more representative House of Representatives.  As it stands now, a handful of right-wing nutjobs are about to send the entire American economy over the cliff.

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GOP Answer to Deficit Reduction – Cutting Tax Rates for Rich

Posted on December 3, 2012 by Terry| Leave a comment

Up until today, it was easy for Obama and Democrats to ignore the bluster from John Boehner and Republicans.  Boehner and other top GOP whiners certainly haven’t pulled any punches in their whining about Obama’s initial proposal.  But until today, they didn’t even HAVE a proposal of their own, making it very difficult to take their complaining seriously. 

Today, Republicans provided a supposed counter-offer to Obama.  And…it’s still very difficult to take them seriously.

Republicans counter-proposal on taxes?  Cutting tax rates for the wealthy…but closing unspecified loopholes to somehow increase $800 billion in revenue.   To begin with, there are no details on exactly what loopholes will be closed, or how the net outcome from cutting tax rates for the wealthy would somehow result in an increase of $800 billion to government coffers.  By CUTTING rates for the wealthy, but promising unspecified loophole closures, Republicans see the best of both worlds…not going against the Grover Norquist tax-cut pledge, AND inevitably shifting some of the revenue increase burden to groups other than the wealthy.

It’s amazing how far Republicans are going to protect tax cuts for the richest of Americans.  This same farce of a counter-proposal also seeks to cut $600 billion in health costs, with one stated Republican option being to raise Medicare eligibility from 65 to 67.  Another $200 billion would be saved by decreasing cost-of-living adjustments for Social Security, as well as all other aspects of government.   While doing everything they can to protect their wealthy donors, Republicans certainly have no problem sticking the poor or the sick with additional costs.

After the election, an emboldened Obama is finally showing a backbone.  He’s finally sticking to his guns on making the wealthy pay their fair share.  I just hope to god he sticks with it, and doesn’t cave once the fiscal cliff approaches. 

Going over the cliff, even with a short-term recession looming as a result, is far more preferable than caving to Republicans who not only want to maintain the gap between rich and poor, but seemingly want to widen it.

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Boehner’s “Generous” Offer for Compromise

Posted on November 8, 2012 by Terry| 1 Comment

Yesterday, John Boehner tried to set the tone for “compromise” on debt negotiations.  It sounded good.  After a very tumultuous, brutal election, it sounded good for the Republican House to come out and say they were willing to deal with Obama on the debt.

It remains to be seen what Boehner means by “compromise”.  Note the language of his statement. He specifically says they’re willing to raise ‘revenue’.   From his comments yesterday, Boehner still says Republicans are unwilling to raise tax rates on the rich.  HUH!?!?!  How is that compromise?  After the election, even some hard-core conservatives admitted that tax increases had to be part of any realistic deal to cut the debt.  Yet despite Boehner’s “magnanimous” offer yesterday to compromise, Republicans are still unwilling to raise tax rates on the rich.

How do you raise “revenue” without raising taxes?  According to Boehner, Republicans plans for raising revenue comes from a “byproduct of a growing economy, energized by a simpler, cleaner, fairer tax code, with fewer loopholes, and lower rates for all.”  WTF!?!?!   This is EXACTLY what Romney had been campaigning on!!!  It’s the same old trickle-down economics “solution”!!!  Cut taxes!! Then we will magically generate new revenue simply because the economy is growing!!!

Nice political play, Boehner.  You certainly fooled the press into getting a big headline.  Right after an election, you made it LOOK like Republicans were being magnanimous.  It sets Boehner and the Republicans up more favorably when negotiations start, and I’m sure you’ll hear today’s proclamation referenced to, when Republicans refuse to raise taxes and blame Obama.

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Nonpartisanship – Republican Style

Posted on November 1, 2012 by Terry| Leave a comment

The nonpartisan Congressional Research Service recently authored a report to examine the potential effects of tax policy on the economy. Senate Republicans, apparently not happy with the results of the research, successfully pressured the CRS to bury the report.  The issue?

The nonpartisan CRS study found that lowering tax rates on the wealthy had no discernible effect on increasing economic growth or improving economic conditions in the U.S.  In other words…the CRS found that “trickle-down” economics is complete bullshit.  Senate Republicans, finding the report completely undermines the entire tax philosophy of their party, strenuously objected to the report content and pressured for the report to be withdrawn.

Such is life in the Republican Party.  Find a poll you don’t agree with?  You simply don’t believe the poll, and start denigrating the poll’s maker.  Don’t agree with the science of climate change?  You start attacking the science and the scientists who produce it.  Don’t like a nonpartisan report on tax policy?  You try to bury it, before the facts come out and the public sees yet more evidence that your entire party is built on a host of lies. 

THIS is the government under Republican “leadership”.  Facts?  Facts be damned, Republican Party ideology, no matter how freaking twisted it is, is the overarching concern.  So why not a Romney as president, Republicans?  You’ve already shown yourselves to be a deceitful twisted bunch.  Having Romney as president?  He’ll fit right in with this bunch.

Pathetic.  It has to be awfully damned embarrassing to be a Republican right now.

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Republicans’ New Math

Posted on August 24, 2012 by Terry| Leave a comment

Mitt Romney this week came out with a pledge to achieve energy independence by 2020.  ”Independence” for Romney means only using North American sources of energy.  Given that we would still rely heavily on Canadian and/or Mexican energy imports, Romney’s pledge is hollow to begin with.  It doesn’t matter if oil flows from Canada’s tar sands or Saudi Arabia’s wells, it still means we’re importing oil from a foreign country.

With that point aside, you have to marvel at what Romney and the Republicans have accomplished in the field of mathematics during this election cycle.  They’ve completely written the basic tenets underlying mathematics with the policy proposals they’ve suggested.  Romney pledges to reach energy “independence” in just 7 years…shocking pledge in its own right, but even more shocking when he pledges  to do so without supporting any changes to fuel standards. 

Republicans certainly don’t have a good grasp of the basic concept of supply and demand.  Romney’s energy promise doesn’t address reducing energy USE…it’s all about trying to increase supply.  After all, as Romney states,  he wouldn’t want to TELL people what kind of car they should drive.  This is AMERICA, after all!  Dadgumit, if you want to drive a massive SUV that gets 12 MPG, that’s your god-given right as an AMERICAN!

Sounds good…if you’re a right-wing, wacko Republican who thinks the entire world is just there for your own personal short-term enjoyment.  But in reality, it’s simply impossible to expect energy “independence” without also cutting energy use…even when you use Romney’s definition of “independence” that includes importing Canadian and Mexican energy sources.

Romney and Republicans aren’t exactly breaking new ground with this policy announcement though.  After all, this is the same party that insists we can balance budgets by simply shrinking government, without any additional taxes or revenues coming in.  This despite every serious economist on the planet pronouncing the impossibility of doing so, unless the Federal government should somehow come under Ron Paul’s control and consist solely of the military and very little else. 

It’s the Republicans’ “New Math”.  Republicans have already abandoned science.  They might as well abandon basic mathematics or any other form of reason as well.

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Rich People are SO Darn Loveable

Posted on February 9, 2012 by Terry| 1 Comment
Scum of the Week

Congratulations, John Goodman! For your despicable attempt to ADOPT your 42-year old lover to protect your fortune from the family of the young man you killed, YOU have won the inaugural "Scum of the Week" award!

I’ll bet you thought from the title that this post was going to be about Mitt Romney.  That’s probably a bad thing for Romney, in that he’s starting to personify the negative traits people associate with the uber-rich.   Romney certainly isn’t doing himself any favors by talking about his low tax rate or his lack of concern for the poor.  But with the tax rate issue, as he stated, he’s just “following current tax law”.  I guess the question that comes up…from a LEGAL standpoint, I guess that’s fine.  But from a moral standpoint?  When does it become unacceptable from a moral and social standpoint to try to protect your fortune at all costs?

From Slate.com, here’s a story that makes you realize just how incredibly screwed up our tax laws are, and the lengths people will go to, to avoid paying taxes.   Romney parking money in an offshore account?  Probably not a great idea when you’re running for president, but from a moral standpoint, it doesn’t raise your hackles.  But THIS story?  It talks about a trend for those loveable rich folks to ADOPT their adult lovers or spouse…all because of the favorable tax or inheritance implications.  In this case, 48-year old John Goodman ADOPTED his 42-year old girlfriend, helping to shield a trust fund of several hundred million dollars from impending litigation against the man.  Even worse, the litigation against the man is from the family of a young man this rich loser KILLED in a car wreck, while he was driving drunk. 

Rich people are SOOOOOOO darn loveable!  It’s not enough that he drove drunk and took a young man’s life.  No, he ALSO did everything he could to protect his fortune from the young man’s family…including adopting his 42-year old lover.  The Slate story focuses quite a bit on the incest aspect of such a maneuver, as by adopting his girlfriend, he’s technically having sex with his daughter.  Incest though?  Really?  CLEARLY this scum isn’t exactly oozing morality, so what’s incest on top of drunk driving and murder?

I’m all for a social and economic structure that rewards those who work hard, and reap the economic benefits.  Let’s face it, people can be lazy scheming SOB’s, and unless you have such an economic structure, people have no motivation to work hard and contribute to society.  But…there comes a point where moral and social obligations outweigh what the letter of the law might say.  This case obviously crosses that line.  And from the content of the story, obviously this loser isn’t alone in using this adoption strategy.

It’s just one of those stories that reinforces my cynicism!!!  Nice job, Mr. Goodman, you’ve just won my inaugaral “Scum of the Week” award.

Posted in Deep Thoughts, Politics, Scum Of The Week

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Romney says 99% are just Envious

Posted on January 17, 2012 by Terry| Leave a comment
Romney laughing

Romney is a happy man. Why not? He pays the same tax rate as the old lady who took your order at Burger King today.

Last week, when questioned about the growing income inequality between rich and poor in the U.S., Mitt Romney said that people worried about inequality just suffer from “envy”.  Gee, Mitt, I wonder why that could be?  I wonder why the poor would be envious of the way America treats the rich?  Perhaps, Mitt, you should have thought about your “envy” statement before talking about your own personal tax rate today.

At the debate last night, Mitt Romney was questioned about releasing his tax returns, an exchange that had Romney looking uncharacteristically flustered.  Today, Romney said that his tax rate is “around 15%“.    Hmmm.  15%!?!?   A very rich, American politician says his tax rate is around 15%.  Is it any wonder people concerned with income inequality are envious?    A single person making $9,000 a year pays that same 15% tax rate.   A full-time McDonald’s employee making $6.00 an hour pays the SAME RATE as one of the richest men in America. 

Envious, Mitt?  You’re damned straight people are envious of the way the rich are treated in the U.S.  You’re damned straight people are envious of the tax loopholes the rich can exploit.  You’red damned straight people are envious of the political puppets the rich have at their disposal.  

The media panned Romney over his “envy” remark last week, but sadly, Romney was correct.

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Gingrich Tax Plan: Cut Rich Tax Rate by over half

Posted on December 13, 2011 by Terry| Leave a comment
Newt Gingrich

Newt Gingrich and the rest of his rich buddies would be laughing all the way to the bank, under Gingrich's proposed new tax system.

Newt Gingrich has been criticized by many in the Tea party, and by conservatives in general, for being too moderate.  With the analysis of Gingrich’s proposed tax plan, conservative wackos have nothing to worry about.  Gingrich is showing he’s just like the rest of the completely unrealistic GOP candidates, and will do anything to pander to the wacko right who believes taxes and government are the root of all evil.

Gingrich’s plan would allow you to keep your current taxes, or, take a flat 15% tax.  So in theory, nobody’s taxes go up!!  Consider, however, that the richest Americans currently have a tax rate of 35%.  That would go down to 15%!  Plus, Gingrich proposes no taxes on capital gains, and no estate taxes, two taxes that currently largely affect the wealthy.  The net result?  MASSIVE tax cuts for the rich, far beyond what even most other wacko Republican candidates are offering.  The richest 0.1%?  They would receive an AVERAGE of a $2 million cut in their taxes!! 

The poorest people in America?  ONLY 20% would receive ANY kind of tax benefit!!! And the average tax benefit for those few, lucky poor folks who WOULD get a tax cut under Gingrich?  A whopping $63 a year!!

There is just one SLIGHT problem with Gingrich’s plan.  Under the plan, tax revenues would drop by at least 35%, adding at least $1 TRILLION a year to the deficit!!  Considering the debt-reduction committee couldn’t agree on that much savings over TEN years, adding a trillion a year to the deficit doesn’t seem too smart now, does it?

But then again…who ever accused the GOP of being smart?

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Capital Gains Taxes and the GOP

Posted on November 20, 2011 by Terry| 1 Comment
Capital Gains Rates Change

Capital gains tax rates have fallen from a high of 38% to a 40-year low rate of 15% right now. 50% of ALL capital gains go to the 0.1% richest Americans...but yet the GOP wants to cut or eliminate capital gains taxes.

This recent article highlights the incredible effect capital gains have on wealth distribution in the U.S.    The highest 0.1% of income earners in the U.S. receive a staggering 50% of all capital gains in the U.S.   Of the Forbes 400 highest earners, 60% of income comes from capital gains.  The capital gains tax rate used to be nearly 40%, but over the last 30 years, that number has been whittled down to only 15%…to the GREAT delight of the uber-rich, as their share of the American pie continues to grow, at the expense of the rest of us.

Despite the incredible role capital gains (selling property or selling investment shares) have played in fueling the growing income disparity in the U.S., capital gains taxes have been a major talking point for the GOP, including GOP presidential candidates.  A majority of GOP candidates have proposed COMPLETELY eliminating the capital gains tax.   Eliminating the capital gains tax would cost Federal coffers about $100 BILLION a year, or $1 trillion over 10 years.  The “super committee” currently is trying to find a way to reduce the deficit by $1.2 trillion over 10 years…and has pretty much admitted it will fail to find a way to do so.  But yet despite our economic distress, despite the inability of Congress to find ways to reduce the deficit, many in the GOP are calling for a complete elimination of a tax on the uber-rich, which would effectively WIPE OUT any deal the super committee might come up with.

Somehow, our economy survived, and thrived, when capital gains taxes were over twice as high as they are today.  But for the GOP and their uber-rich puppet-masters, it evidently isn’t enough to greatly reduce the capital gains tax, they would like to completely eliminate the tax.   Leave it to Republicans to focus on cutting a tax that primarily benefits the richest 300,000 Americans.

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Republicans Block Jobs Bill for Teachers

Posted on October 21, 2011 by Terry| 2 Comments
Sad Teacher

If I'm a teacher in the U.S. right now, I'd be pretty damned sad too, knowing that millionaires wallets are seemingly more important than teachers' jobs, or providing an adequate education to our children.

Why does anyone other than a rich hedge fund manager, a CEO, etc. ever vote for Republicans?  There is ONLY one sector of the population that Republicans seem interested in helping, the richest of Americans.  Since the Republicans won’t support the entire Obama jobs bill, Democrats are trying to pass the individual pieces of the bill.  One of the first to come up for a vote was a bill that would provide $35 billion to state and local governments to help pay for teachers, and first responders, that have been laid off because of government budget cuts, or have their funding in peril.   Helping to pay for some of the most vital workers we have?  Helping to avoid yet more devastating cuts to education?  Who couldn’t vote for this?!?!?

Republicans of course, who blocked the bill when EVERY ONE of them voted against it.  Why!?!  Republicans voted against it because of their ridiculous platform of NEVER raising any taxes.  What incredibly burdensome tax were they against with this bill?  The bill would have raised the rates on true millionaires…those making over $1 million EVERY YEAR…by 0.5%.  0.5 freakin’ percent!!!  A TINY tax increase on the VERY wealthiest of Americans, who already pay taxes at a much lower rate than they have historically…but yet Republicans vote it down.  Republicans AGAIN put political ideology and the rich over REAL Americans, over jobs, and over a crumbling education system.

THIS is what you vote for when you vote Republican.  You vote for continuing, and exacerbating, the status quo.  Our gap between rich and poor, already the largest gap among all modern western societies, will continue to grow.  We will continue to lag far behind other nations in educating our young.  We will continue to value the almighty dollar more than we value our children or our future.

Here’s yet another issue for the rather unfocused Occupy Wall Street group to grab onto.  At least I hope to god they do, because otherwise, the ignorant and apathetic American public in general probably will never bother to read about this, and it will be quickly forgotten.    It will be yet another political fiasco the Republicans get away with, because apathetic America doesn’t bother to call them on it.

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