Taxation

Back To The Era Of Calvin Coolidge On The 88th Anniversary Of His Ascendancy To The Presidency!

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On August 3, 1923, Calvin Coolidge became the 30th President of the United States upon the death of President Warren G. Harding.

While everyone who studies the era of the 1920s sees Coolidge as an improvement on Harding (regarded the worst President of the 20th century and one of the bottom two or three in all of American history), the fact is that the Coolidge Administration ushered in a full return to the mentality of the Gilded Age, leading to a revival of monopoly capitalism, exploitation of labor, a growing maldistribution of wealth,and the lowest level of taxation of the rich and the corporations in the entire 20th century!

And we all know what that led to: the Great Depression, which lasted ten years, and was only overcome by World War II and the highest level of taxation of the rich and corporations in the century, followed by very high levels of taxation under Republican President Dwight D. Eisenhower in the 1950s, and lower but substantial rates even under Republicans Richard Nixon and Ronald Reagan and Democrat Bill Clinton, among others.

And the country prospered even when Bill Clinton RAISED taxes in the early 1990s, and we had a balanced budget in the last years of the Clinton Presidency.

But then, we moved in the opposite direction under George W. Bush, the lowest taxation levels of the rich and corporations since 1928, the last full year of Calvin Coolidge in office and the year before the Great Depression occurred under Herbert Hoover.

Now we are faced with the strong likelihood of a revival of the Great Recession, but the Republicans have made low taxation a religion that is ultimately going to destroy the social fabric of this nation, and endangers all of us with the possibility of violence and bloodshed as conditions deteriorate to the worst since the 1930s!

This is a terrifying time, and one has to ask, what happened to patriotism, the idea that we sacrifice for each other, and that the rich and corporations pay their fair share of taxation to sustain the country’s economy! Apparently, greed and selfishness rule as they did in the Gilded Age and the 1920s, as if we have made no progress in the 80 plus years since the beginning of the Great Depression!

The Choice Is Clear: The McConnell Plan OR Barack Obama Takes Independent Action And Risks Impeachment!

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The Debt Ceiling Crisis is down to less than a week, and Standard and Poors and Moody’s are warning of dire consequences for the American economy, with the lowering of the rating of America as credit worthy, if something is not done quickly.

It is clear that John Boehner, the Speaker of the House, cannot control the Tea Party radicals in his midst, and is in real danger of losing his Speakership in the future, whether or not his party retains control of the House of Representatives.

These reckless anarchists should be soundly defeated in the next election in 2012 to restore sanity to Washington, DC, but in the interim, something must be done to overcome the crisis.

The choice is clear! Follow the earlier suggestion of Senate Minority Leader Mitch McConnell of Kentucky to adopt a bill giving the President three opportunities to raise the debt level, separate from budget cuts–now, and twice next year–to go beyond Inauguration Day 2013, but with Congress able to vote on the extensions.

Most, if not all Republicans would vote no, while most Democrats would vote yes on each extension, but the President would veto each time, and as long as one third plus one of each house of Congress voted to sustain the President, the debt ceiling would be raised successfully, and end this crisis.

It would put the burden on the Democratic Party and President Obama, who theoretically would be blamed for the extensions, and it might hurt some Democrats running for re-election, but as long as 34 Democrats in the Senate and 145 in the House backed the President, it might allow those Democrats who felt endangered to vote with the Republicans against the extensions.

The thought, however, that voting for the extensions would automatically hurt the Democrats is likely to turn out incorrect, as the image of the Republicans as a reckless, extremist party that is ready to destroy Social Security, Medicare and Medicaid, and refuse to tax the rich, and support corporations unwilling to create jobs as they sit on $2 trillion of money, with a lot of it due to the federal government bailout in 2008-2009 and initiated by George W. Bush and his party–this is very likely to boomerang on the GOP and push them out of the majority in the House of Representatives, and help Barack Obama be re-elected President of the United States!

This McConnell plan, while far from ideal, would be better than Obama simply using the 14th Amendment, Section 4, to extend the debt, as it would cause more controversy and could lead to the impeachment process being used against him.

With a certainty, Obama would survive, and the GOP would be harmed, but if we could, somehow, avoid the turmoil of another impeachment mess, it would certainly be preferable!

So Mitch McConnell and his plan could be the savior of the moment and resolve this horrible crisis, created by the radical Tea Party anarchists,who need to be roundly defeated and removed from their position of holding America hostage!

The Absolutely Urgent Need For Compromise In The Tradition Of The Founding Fathers!

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With the nation on the brink of financial chaos, due to the failure to have both sides come to an agreement on the Debt Ceiling and budget cuts, America is entering uncharted territory that is arguably the most dangerous since the Great Depression, and possibly the Civil War!

When one looks at our history, one realizes that our brightest and greatest moment was the time of the Founding Fathers, when compromise ruled and we came up with a Constitution that involved sacrifice of the differing sides of the political battle toward the greater good, compromise to save the nation at a dangerous moment!

When we look at the Civil War, it was exactly the opposite of compromise, and the nation suffered through four long years of war, and two thirds of a million soldiers killed, because compromise was no longer possible.

The Great Depression saw tremendous division, but yet a unity among the American people that they had to support the effort that had been started by Franklin D. Roosevelt, rather than create a divided government of the two houses of Congress in the hands of opposing parties, causing paralysis!

It is time that this nation moved toward a short term solution in the image of the Founding Fathers, followed by a long term solution whereby the American people make a choice as to their future, by giving full authority either to the Democratic Party or the Republican Party to take action without a paralyzed Congress in which no compromise is possible!

It is not acceptable to have a continuation of what the American people, by their lack of knowledge or participation have wrought at the present–divided and paralyzed government! The only way government can work is full control by one party for a four year term of a President, followed by an opportunity for a reversal in view by the American people, but in a manner that allows action, instead of stalemate!

The battle for the future can only be decided by full accountability, not by creating a government which can do nothing except hurl accusations back and forth, and therefore prevent any action! This dangerous situation cannot be allowed to continue!

So therefore, what must be done right now, through compromise?

1. Raise the debt ceiling through the next Presidential election in one action.
2. Agree to long term changes in Medicare that allow gradual raising of the age limit to 67 for people under the age of 50 now, but allowing, as with Social Security, a lowered coverage at age 65 for those who do not wish to wait to 67 to gain full benefits.
3. Raise the Social Security full benefits for future retirees, so that those born in 1980 and after must wait for full benefits to age 68, and those born in 1990 and after must wait for benefits to age 69, but in each case having the ability to gain lower benefits, as now, at age 62 or somewhat later if they wish.
4. Have the Social Security tax apply to all income, not just to $106,800, as with Medicare, which has no limits.
5. Agree that some increase in taxes on the top two percent MUST occur, but less than what has been proposed in the past.

It is essential that the lobbying groups, including those for corporations and the wealthy, and for the AARP and other progressive groups, have to be told that compromise is unavoidable, and that sacrifice is necessary, but in a way that affects people, regarding taxation and the social safety net, in a way that is less harsh, but part of being a patriotic American, accepting responsibility of paying more taxes and recognizing that social programs, to be saved, require some changes in age limits and taxation levels!

Once compromise is reached, both parties go to the country, and hopefully, instead of creating a paralyzed government that can accomplish nothing, we go more in the way of parliamentary government, the creation of total responsibility that can be reversed by the electorate in future elections, if the public is more educated and involved and decides major changes are needed!

So we need a combination of the late 1780s and the 1930s, rather than the 1860s, if we are to have progress as a nation to resolve our differences, and have a government that works!

Tim Pawlenty, Michele Bachmann, And Taxation Of The Wealthy

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Former Governor Tim Pawlenty of Minnesota, and Congresswoman Michele Bachmann from the same state, are campaigning for President advocating further tax cuts for the wealthy, even though they have received unbelievable tax cuts over the past ten years, creating the problem of the ballooning national debt.

Pawlenty’s economic plan would give the top one percent of the taxpayers 40 percent of the benefit of the tax cut, while the next nine percent would get 26 percent of the benefit.

So two thirds of the tax cut would go to the top ten percent, while the bottom 60 percent would get only 10 percent of the cut.

Bachmann, meanwhile, wants to cut all taxes for 23,000 millionaires–which would add $25 billion to the national debt in ONE year!

Meanwhile, the effective tax rate for the rich has declined dramatically since the 1950s–51.2 percent in 1955, 42.4 in 1961, 29.9 in 1995, 24.2 in 1997, 19.5 in 2003, and 16.6 in 2007!

This is all economic suicide, and fails to promote the idea that wealthy Americans owe the nation more of their success, as it is this country which gave them the freedom to become wealthy!

The Lack Of Reality Of The American People As Shown In Public Opinion Polls

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It is becoming very clear that the American people, based on public opinion polls, at least, are living in a dream world, avoiding reality!

Polls indicate that the people do not want entitlement cuts to deal with the debt problems the nation faces.

At the same time, they do not want to see the debt limit raised next month!

The lack of economic knowledge and understanding is pitiful, as indeed many Americans lack the ability to balance their own checkbook or take care of their own finances, and yet, somehow, magically, they seem to think that the only thing that matters is do not touch anything, and refuse to recognize that entitlements must be paid for, and that the good faith and credit of the United States government is at stake if the debt limit is not raised!

While it is clear that most Americans want the corporations and the rich to pay more taxes, it is also clear that even doing so cannot resolve the debt or deficit crisis!

The fact is that all of us will have to pay MORE taxes in order to sustain the entitlements that most Americans do not want to be cut back! There is no free lunch, as the saying goes, and praying for divine guidance will also not be enough to deal with reality!

So the answer is to make sure that corporations and the top two percent of the people pay a higher tax rate as they paid under Franklin D. Roosevelt, Dwight D. Eisenhower, Richard Nixon, and Bill Clinton.

Secondly, all of the rest of us will also have to pay higher taxes and stop complaining about it, since we want the various entitlement programs to be sustained.

Third, there is an essential requirement to start cutting back on overseas defense bases and military commitments, which are having a horrible effect on our budget deficits.

Fourth, there is a dire need to reform the Medicare, Medicaid, and Social Security system long term, so as to sustain them. Anyone who suggests no changes is being totally irresponsible!

Fifth, the debt limit MUST be raised next month, as not to do so would be totally reckless, dangerous, and detrimental to the economic welfare of the nation, as well as the world at large!

Finally, the spirit of compromise somehow must be promoted, or else the nation will at some point be in as dangerous a situation internally as it was 150 years ago, with economic class warfare, age warfare, racial warfare in the offing, a horrific thought!

A spirit of nationalism, and bipartisanship, is sorely needed, and right now, to resolve the nation’s ills!

Town Halls Turn Against Republican Budget Plan To Destroy Medicare As We Know It: A Reversal Of 2009-2010!

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In 2009-2010, the Obama Health Care plan received belligerent responses in many Town Halls for Democratic members of Congress, leading to much controversy and many confrontations!

Now, the tables have been turned, and Republican members of Congress are discovering in Town Halls that their constituents do NOT want Medicare destroyed, which the Republican budget plan of Congressman Paul Ryan represents!

The problem is that 235 Republicans in the House of Representatives just voted a week ago to adopt the Ryan plan, and as many predicted, it is becoming an albatross around the necks of the Republicans, and could lead to a massive switch in seats again, putting the Democrats in control of the House of Representatives after the 2012 election results are in!

What the Republicans refuse to recognize is that the American people, by large margins, including Independents, Republicans, and even Tea Party Movement people, want Medicare preserved as it is!

It is not just the senior citizens of this nation who like Medicare; it is also their children! And also, the seniors are not just selfish for themselves, but really feel strongly that their children and grandchildren should be entitled to the same excellent health care represented by Medicare!

Yes, Medicare is expensive and has cost overruns! But the answer is not to change Medicare into a voucher system which will victimize future senior citizens, but instead to TAX appropriately, as every other Western industrial nation does, so that EVERYONE is entitled to excellent health care in the long run, not just the short run!

And it is time to TAX the WEALTHY and the CORPORATIONS, both of which have a responsibility to all of us for their good fortune, and must play their role in promoting the best health care available!

The Emergence Of A People’s Party Movement To Fight The Tea Party Movement And The Republican Party!

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The events in Wisconsin these past three weeks, leading to the end of collective bargaining of public service workers there, plus similar action in Ohio and elsewhere yet to be seen, has awakened the middle class, and those less fortunate, to the reality that they cannot sit back and allow the national Democratic Party to plan alone for 2012, as President Obama seems unwilling at this point to challenge the opposition openly, as part of his centrist strategy for re-election.

So the average American who is disgusted with the power and influence of the super rich and the corporations must organize for the future and pressure the Democratic Party in 2011-2012, as much as the right wing Tea Party did the same with the Republican Party in 2009-2010, and is still at work on its evil intentions!

So there is already the emergence of what many might call the People’s Party, with set goals of what they wish to accomplish between now and the Presidential Election of 2012, and Robert Reich, former Secretary of Labor under President Bill Clinton, is one of those promoting such a development, and discussing it on the Talking Points Memo website two days ago. Of course, reality is that not all of the below ideas can be accomplished quickly, but they are a series of goals for the future.

What are the goals of the People’s Party?

1. Increase the pay and bargaining power of ordinary workers, by promoting collective bargaining and union rights of all workers.

2. Require the super rich to pay their fair share of taxes–which includes capital gains taxes, inheritance taxes, taking away citizenship of those sheltering income overseas, and increasing top marginal tax rates and number of top tax brackets.

3. Protect and expand government programs that advance the middle class and the poor, including Social Security, Medicare, Medicaid, Public Education, Pell Grants for college students, Public Transportation, and the Earned Income Tax Credit.

4. End corporate welfare, including wasteful defense spending, agricultural subsidies, and tax subsidies for industries and specific corporations at the state and national level.

5. Save Social Security by raising the income level that is taxed to all income that is earned, just as it is for Medicare.

6. End Wall Street dominance of the economy, requiring smaller banks, having a financial transactions tax, and preventing future bailouts.

7. Enforce regulations that benefit workers, consumers, investors, and the environment, and raise penalties on corporations that violate these regulations.

8. Provide affordable health care for all Americans through adoption of single payer Medicare for all.

9. Slow and reverse climate change through carbon emissions taxes on polluters, and returning these taxes and penalties as tax cuts for the working middle class that has been victimized by these corporations.

10. Take big money out of politics, by fighting the Citizens United Supreme Court case, requiring public financing of all campaigns at all levels, and full disclosure of all campaign contributions to all candidates for any public office at any level.

Wisconsin is a clarion call to all progressives and liberals that they cannot simply lie down and take what they are getting, but must FIGHT for change and reform, because no one is going to give it to them simply because they ask! The fight to overcome the right wing extremism that has taken hold in the House of Representatives and many state governments has just begun!

Lincoln Chafee’s Courage: Speak Reality To Rhode Island Voters In Difficult Times!

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Former Senator Lincoln Chafee of Rhode Island, who served in the Senate for seven years as an independent minded Republican, and then became an Independent after losing his Senate seat, is presently running for Governor, and offering voters reality and truth, and leaving it to the voters to decide!

Chafee, always very principled, and often unwilling to back the Republican view on many issues, remains popular in his home state, despite his loss in 2006, and is now telling voters that they will need to pay more taxes in order not to have budget cuts which would be damaging and unacceptable!

He has told the public in his campaign appearances that more taxation is essential, unless they are willing to let murderers out of prison early; expel old parents from nursing homes; or close state parks!

In other words, there are real world consequences if people are not willing to pay somewhat more taxes in the form of sales taxes! There is no free ride, and public services will suffer if the tax base is not supplemented by moderate tax increases!

That sounds like a suicidal mission, to suggest that people come to grips with reality! It will be interesting to see if Chafee can convince voters of the absolute need to raise taxes in a recession year!

The one factor in his favor is that he is running in a three way race, where he does not need a majority, but instead a plurality, to win the Governorship!

But, of course, then the question is whether the legislature would follow his lead and adopt the Governor’s program, as he would not be allied with either party! So this is a story worth following, both for the race itself, and but also for the aftermath if Chafee wins!

How The Wealthy Stay Wealthy: Default On Mortgages Without Guilt! :(

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The news has emerged that wealthy people are defaulting on their mortgages at a faster rate than average Americans, proving that the condemnation of people for taking on mortgages they can ill afford has been improperly exaggerated!

Conservatives love to blame poor people and middle class people for irresponsibility, when the indications are that it is rich people who are exploiting the system of mortgages, and greatly contributing to the rapidly growing housing market crisis!

More than one in seven home owners with a mortgage over one million dollars has defaulted, while the rate for those with lower mortgages is one out of twelve!

These wealthy people are ruthless, and have no conscience, as the burden on the economy can be borne by the average person, in their mind! These people have no shame and do not care about the effect their actions have on their communities!

Consider the fact that wealthy people in this country, the top one percent, have 17 percent of all assets and income in this country AFTER payment of all taxes! Is this not an indication of the maldistribution of wealth, and shows how these people have no patriotism or civic concern, as long as they can hoard their money and pass on their massive assets to offspring who will never learn what it is like to face the problems of everyday average people? 🙁

The Tea Party Movement, Republican Party, And Conservative Lie About Taxes!

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The biggest issue that the Tea Party Movement, the Republican Party, and conservative talk radio and Fox News Channel have been propagandizing since Barack Obama became President is that taxes are out of control and are higher than they have ever been under this administration!

But USA TODAY published this morning an article that proves this propaganda to be totally wrong. The fact is that our taxes this past year were lower than at any time since 1950, when Harry Truman was President!

The figure is 9 percent for 2009, while the normal level is 12 percent. This includes ALL federal, state and local taxes, not only for income, but also for property, sales and other taxes!

Of course, the problem is not high taxes, but high government spending, which with high defense spending, and the burden of social security, medicare, and medicaid growing constantly, means that ultimately, taxes will have to rise dramatically, because the high national debt is due to the fact that the government has pursued the policy of doing what is popular, cutting taxes, but that just means the taxes are “kicked down the road”, as there is no way to avoid payment of debt in the future! Of course, the cost of paying debt grows by borrowing money rather than raising taxes as we need it!

So the politicians look to gain votes by promising lower taxes, but it is actually a lie, as taxes MUST go up later, if not earlier! The celebration over lower taxes has to be recognized for what is reality: Higher taxes are coming and are necessary, so get used to it!