Archive for the ‘Taxes’ Category
by jhwygirl
Franke Wilmer has served a respectable 3 terms in the Montana House, surviving 3 sessions up there in Helena. She’s well-qualified to serve as Montana’s next U.S. Representative, her resume including a wide spectrum of employ including waitress, public school teacher, MSU professor and author. Wilmer’s work has spanned a spectrum that is rare for a congressional candidate, with work that has included field research in Yugoslavia during the Bosnian war…work so respected that she has been invited to lecture internally on the topics of war, peace and human rights.
Would I trust her with my tax dollar? You bet. Franke Wilmer worked her way through undergraduate and graduate school – and obtained scholarships to help obtain her doctorate in Government & Politics in 1990. So does she know the value of a dollar? I’m betting she knows the value of a nickle and dime.
All that being said, I wondered what she had to say about yesterday’s failure of the super committee. I was never very hopeful about what they would (or wouldn’t) do – but as someone actually applying for a job in congress, I had to wonder what Wilmer – an experienced legislator – had to think about the super committee and the task they had before them.
Ms. Wilmer generously took time out of her 16 hour days to reply:
“It seems like any news you get of Washington these days is either disappointing or crazy. Making pizza a vegetable was crazy, and the Super Committee failing to come to an agreement is disappointing. I think Congress may be the only place in America where you can ask 12 people to take 2 months to come up with a solution to an important problem and end up with nothing. It is unbelievable that 12 people couldn’t find $1.2 trillion in wasteful spending. Ending the Bush tax cuts just to the top 1% would be a good place to start. Or ending the tax breaks to corporations that export our jobs overseas. Don’t forget how much we are spending on wars ($1.2 trillion so far).
Then one of the richest members of Congress, Denny Rehberg, comes out with his “viable” option. In his mind there are really only two options — either cut Social Security, Medicare, and Veterans Benefits or defund programs set up to help people cover outrageous health care costs. In his mind cutting the wasteful spending to defense contractors (the Commission on Wartime Contracting reported to Congress that $60 billion alone has been lost to waste and fraud in war spending) or cutting subsidies to the oil and gas companies would be insane. Insisting on cuts to Social Security is the wrong place for Republicans to draw a line in the sand. Senior citizens didn’t cause this recession. Congressman Rehberg ironically decided people can live without health care and presented his “viable” plan.
There was a time in this country where our elected leaders governed using common sense. There was a time where the issues facing this country were more important than the next election. I am running for Congress to help restore some of those principles in Washington.”
I couldn’t agree more. How many politicans – especially those running for office – are willing to unequivocally call for ending the Bush tax cuts for the top 1%? Or cutting tax breaks to corporations that export our jobs overseas.
I also appreciate a candidate like Wilmer who is willing to step up for Veterans and call hypocrisy on our current U.S. Representative Denny Rehberg who is willing to cut Social Security and allow the Pentagon to continue its wasteful (and immoral) spending on defense contractors. Montana’s median income is in the bottom 25% in ranking – and only one state has higher per capita military service than Montana. Protecting Veterans and Social Security should be a priority for the people we Montanan’s elect to congress.
It’s good to know that it’s a priority for Franke Wilmer.
by Pete Talbot
I shrugged it off the first few times I heard it or saw it in print, “government picking winners and losers.”
Now it’s everywhere: Republican debates, news stories, op-ed columns and even comments here at 4&20.
It’s directed at Democrats, for the most part, from President Obama (health care, Solyndra) to Missoula’s City Council (Play Ball Missoula).
The irony is that all parties, in all areas of government, from city councils to state legislatures to Congress and the President, have picked winners and losers.
They’ve subsidized railroads and airlines, oil and coal, highways and electrical distribution systems, NASA, mining and agriculture, baseball, basketball and football teams … it’s a long list.
Winners and losers are chosen by the powers that be all the time. There are no-bid defense department contracts for Halliburton, Raytheon and Blackwater. There are tax code revisions that pick winners and losers. There are decisions on food stamps, Social Security and Medicaid that have winners and losers.
It’s a cool sounding mantra, this “government picking winners and losers,” no doubt generated at some Karl Rove or libertarian think tank using focus groups and polling, and distributed to key leaders in right-wing politics, whence it trickles down.
There are no doubt abuses in this system. But the idea that every aspect of American life should be subject to the invisible hand of the free market is unrealistic and anachronistic. And the Republican cry of “crony capitalism” is about as hypocritical as it gets. The art of crony capitalism has been a mainstay of the Republican Party.
It’s dishonest to call all government spending “socialist” and lay the blame at the feet of Democrats. Picking winners and losers has been going on since the founding fathers and is as American as apple pie.
It just depends on who’s doing the giving and getting the rewards that gets the teeth gnashing and pundits whining.
by jhwygirl
Seems everyone is getting on the bandwagon of revenue increases these days – you’ll recall the Senate recently voted to kill ethanol subsidies (we’ll see where the tough-talking House goes with that one…), then GOP leaders in the Senate started talking publicly of revenue increases.
Is that pure BS talk? Certainly some say so (as has been exhaustively argued on these pages)…but there are observers suggesting that Grover Norquist and his “no revenue increase” mantra may be becoming insignificant.
Absent of Republicans, in general, looking at more revenue increasing proposals, we have President Narayana Kocherlakota of the Federal Reserve Bank of Minneapolis – at a weekend bankers conference held here in Montana – calling on Congress to reduce the amount of mortgage interest and debt payments that households and corporations can deduct to trim incentives for leverage.
Now – is that something I can go along with? Capping the mortgage interest deduction? Debt interest? Obama’s been calling for it since he got elected. A bi-partisan White House deficit-reduction commission picked these two things out as something that should be considered.
Anyway – those are my thoughts. Do we have a perfect storm brewing? Are old-school Republicans calling out the Tea Party? If Republicans (the Tea Party, more aptly) continue to ignore any-and-all revenue increasing ideas, they’re going to find themselves on the wrong end of the voting poll. That’s just plain numbers, folks. If all they have left is to attack Social Security and Medicare, then they aren’t honestly looking at the situation.
If they aren’t honestly looking at the situation, they’re saboteurs.
By CFS
We all know that corn ethanol takes away resources from growing food, but by how much might astonish you. According to author Alexis Madrigal in his book Powering the Dream, USDA statistics from 2010 show that fully 1/3 of the United States corn harvest went into our collective gas tanks.
That 1/3 of US corn production is akin to a subsidy for the wealthy. You see, the more wealth and income a person has the more cars a person owns and consequently the more miles a person tends to drive (who wants to be on a bus with a bunch of stinky people), consuming proportionally more gas. Conversely, the higher up the income scale one climbs the less a person spends on food as a proportion of their income. The exact opposite is true of the lower-income scales, whome spend a much larger proportion of income simply feeding themselves and their families while spending less on transportation. So, corn ethanol subsidies are essentially robbing from the poor and giving to the rich, a kind of reverse Robin Hood.
Bringing it down to the scale of Missoula, would you rather help out the people that live on the South Hills in Mansion Heights, or the people that live in doublewides in East Missoula?
Just how much is 1/3? The US corn harvest in 2010 was 13.1 billion bushels. Yes that is 13.1 with a B! A record-setting year in terms of acreage under production and yield even in the face of record grain prices.
So, fully 4.3 billion bushels of corn was converted into ethanol. Those 4.3 billion bushels yielded 12.1 billion gallons of ethanol (based on my calculations from the ratio I derived thanks to this link) out of a total US supply of 13.2 billion gallons of ethanol which gives us 10% of the total gasoline supply.
That’s a lot of numbers… but bear with me.
So, to fill just 10% of our voracious appetite for fuel (18 million barrels of oil/day) uses roughly 26.4 million acres of American (Fuck Yeah!) farmland. So while the addition of corn ethanol to our fuel supply hasn’t put much of a dent into American gas prices or our consumption of foreign oil, you can see in the chart below just how much biofuels have effected the price of corn. The steep increase in price coincides nicely with the increase in total corn used for ethanol seen in the chart here (scroll down toward the bottom).
And also coincides nicely with the increase in the commodity price of beef. Beef, it’s where most of the corn goes.
Obviously, the increase in price isn’t all due to increases in the amount of corn ethanol produced, but the pattern fits nicely together. The real point of all these numbers I’ve thrown in front of you is to show the sheer scale of the impact that ethanol has on the food market (quite a lot) and the extent of the impact on the fuels market (almost non-existent).
In the end ethanol subsidies are part of the larger package of policies in this country that give breaks to those with an excessively disproportionate share of this country’s wealth. These subsidies might not be that large in the scheme of things relating to our total budget deficit, but they are symptomatic of our larger cultural tendency to reward the rich and punish the poor.
by jhwygirl
Mainstream media will be all a-buzz with deficit/raising the debt ceiling talks this week, so don’t expect too much coverage on two bills that are of major interest to progressives (like me).
On Tuesday, Ms. Kris Carpenter, Founder/CEO, Sanctuary Spa and Salon in Billings will testify before the Senate Committee on Finance on “Complexity and the Tax Gap: Making Tax Compliance Easier and Collecting What’s Due“.
Hearings to look at the tax gap and tax complexity? Who doesn’t have something to say these days about that?
Interested citizens or groups have two weeks from the close of the hearing to submit comment.
Don’t forget – our very own Sen. Max Baucus is chair of the Senate Committee on Finance.
Also on Tuesday is a hearing before the Senate Committee on the Judiciary for The DREAM Act.
Yep. The Dream Act isn’t dead – and Sen. Durbin, it looks, is going to make sure of that.
I poked around that website and couldn’t find information on how to submit comment. If anyone else figures that out, please post that info in comments.
By CFS
The fight over the budget and debt continues in D.C. and I’m sure that Republicans will be making sacrifices and praying to the patron-saint of B-list Celebrities Turned Politician Ronald “The Gipper” Reagan for strength and guidance. I suggest that we on the left use the memory of Reagan to illustrate just how far right the party of Tea has moved since the golden age of fighting tyranny. Because even Saint Ronnie raised taxes.
Same shit… different day. Just a week after a compromise was reached to forestall shutting down the government the circus clowns are once again piling out of the VW to debate the debt ceiling. And one again nothing will actually change that makes a difference in our country’s fiscal solvency.
Will anything constructive take shape on the revenue side… doubt it. Instead budget cuts will come at the expense of those that don’t have a voice at the table. If you can’t afford a six figure lobbyist you don’t deserve to be at the table. Fuck I’m being pessimistic today.
by jhwygirl
CBS news 60 Minutes still does some really good investigative pieces – still knocking on doors, getting shut out and yelled at and all that good stuff.
This week, Leslie Stahl had the tough work of heading to Zug Switzerland, a town about half the size of Missoula. Zug is a rising corporate tax haven, with I-forget-how-many U.S. corporations headquartered there despite the fact that an overwhelming majority of their employees are in the United States, as is their CEO’s and chairpersons and board members
If you have the time, take the 13 minutes or so to watch this segment. It’s worth it, especially if you need to get some blood moving.
A shorter piece has economist Martin Sullivan explaining how U.S. corporations are shifting their profits overseas. Sullivan knows tax policy, having worked in the the Treasury and on the staff of the Joint Finance Committee. He is also an advocate for a airer, simpler, and more economically efficient tax system.
Because, you see, it is all about profit and the stockholders. Patriotism, duty and pride in country have nothing to do with what a corporation’s function or goal would be.
And don’t get me started on moral obligation.
Maybe the stockholders should provide the infrastructure and military power to these corporations here in the good old secure and militarily stable U.S of A. – you know, the one’s benefiting from these corporations.
Me? I’m tired of my tax dollars subsidizing the wallets of a select few and their stockholders.