Saturday, June 27, 2009

Middle Class Part 50: Taxation Chapter 4, Hobgoblins of Consistency, Defending the Indpendents and: That Does Not Sound like a Socialist to Me

Ralph Waldo Emerson is one of the most popular and transcendent philosophers of all time and is known for so many quotations it is hard to keep track of them all. One of his most basic is this- “Every hero becomes a bore at last.” And sometimes the future bore was mistaken for a hero by those with very short memories. See my comments about Joel Stein’s take on Independent parties below. No one is more of a bore as when they espouse a majority view with so little in the way of a compelling argument.


INDEPENDENT LEGACY

50 Posts: Who in their right mind would post 278,000 words on one topic over the span of two years, with 50 posts that virtually no one has read? Someone had to do it, and apparently all of the completely sane, and more qualified, crusaders were busy.

Retrospective inclusions: I haven’t quite made it through all of the copies of Time magazine a friend gave to me a few months ago, but I have seen at least one article on all of the subtopics I’ve covered to date, (from immigration, health care, energy policy, funding for retirement and campaign finance, etc.) for which, if there is any pertinent information, will be filtered into the various subtopics in the massive word document I keep of all of my posts that is a complete chronicle of my work on the topic of the middle class’ future struggle for economic and political relevance in the future. Only the Dead Sea Scrolls is a more highly-prized collection of spiritual history than is the document I have created- sure, and the mackerel is famous for its ability to give a pelican’s gullet a hickey while it writes its last will and testament.

On Time: One other topic I’ve covered has also been the political relevance of Independent party candidates, whose voices mix so incompletely, incoherently, and discordantly, that they may never be legitimized because they lack an overriding and consistent voice that can boil down the issues in a way that would inform the voter how urgently the right kind of change is needed and how they (the Independent candidate) would realistically affect this change. Curiously, this makes them no different than the two parties for which the citizens keep voting. In Time’s February 11, 2008 issue is a commentary by Peter Beinart called “The Bloomberg Delusion” (pg. 53) which dismisses New York mayor Michael Bloomberg’s potential (at the time) candidacy for president as an Independent. No harm there, of the things I had read about Bloomberg, his decision not to run for president was not something over which I lost a great deal of sleep. The specifics of Beinart’s last paragraph were none too troubling, but the sentiment considered in a greater context certainly is, especially when coupled with Joel Stein's which I more thouroughly refute at the end of this number:

“More than 50 years ago, the historian Richard Hofstader compared third parties to bees. They inject a new perspective into the political mainstream, and then they die. If Michael Bloomberg runs for President, he’ll skip the first step.” Still, I wonder how much more of an impression the typical republican or democrat can make, as they inject nothing worth perceiving into the political mainstream and live forever. C’mon, you cannot tell me that there aren’t a hundred thousand electable* Richard Nixons or Bill Clintons running around. These guys never die, we just call them by another name.

Independent party commentary in this post . . . to be continued below

3 Things about me as a capitalist: I have had infrequent conversations with proponents of the free-market, who are only pro-capitalism indirectly- they value the rich for their money, never minding how it was acquired, with the assumption that the rich have always earned their money through wisdom and effort and the poor are so for a reason. I would tell them this if their free-market protectionism would abate long enough for me to go on a conciliatory attack and disprove their theory that I am a socialist: 1) The richest 1-5% should not be taxed if it is determined that the government is wasting a substantial amount of money that can, should and must be redirected toward more responsible spending** - that doesn’t sound like a socialist to me; 2) those running small businesses and earning between $150k-$300k are the epitome of capitalism, are trying to put their ideas into practice, have worked like animals to become successful and probably have a small number of employees on the payroll who count on their jobs, and should not have their taxes raised. These entrepreneurs should not be penalized for just starting to make a profit- that does not sound like a socialist to me. However, those without a payroll making that kind of money, and who are likely among the richest 1-5% of income earners, should see a tax increase if it is determined that the government is not wasting our tax money. 3) The poor should not simply derive any kind of economic benefit from the rich or middle class if it can be determined, by just as objective a set of intelligently empowered federal bean-counters that they are abusing the Welfare system (see part 32) and are protected by the government while they are so doing***- that does not sound like a socialist to me.

As Dobbs writes: “The establishment elites have raised so-called free trade to the level of a personal and societal belief system that is as ardently faith-based as any religion. How else to explain their refusal to recognize thirty-one consecutive years of U.S. trade deficits or a U.S. trade debt that is rising faster than our national debt? How else to explain their attacks on independent thinkers and empiricists who question their economics with facts, critics whom they look upon as heretics.” (pg. 207, Independents Day) How can you even argue with that? Those defending the free-market and free trade, well, there is a name for people like that as well, and it is much worse than the label- socialist to someone who has proven he is far from it. Free market proponents treat the lack of oversight in the areas of U.S. free trade policies and globalization as if it is the equivalent of a belt loop the federal government missed when it was trying to cinch up its pants- which is something the federal and state governments should have been forced to do decades ago.

Independents on taxes (tying together the three previous paragraphs): If an Independent’s view on taxation, never minding what it is on campaign finance, immigration, health care, education, global warming, government bailouts, the federal reserve or foreign policy, is not contained in the paragraph- 3 Things about me as a capitalist, then there is absolutely no reason to vote for them- which also includes the reasons to not vote for a republican who will not raise taxes on the rich (see part 49- the material on MN governor Pawlenty), nor for a democrat, as they would never think to punish the poor for abusing welfare programs that are crippling this country (see part 32). The barometer by which the voter can best gauge a political candidate is how they treat the citizens and corporations (too poorly or too well) who are armed with the responsibility of lining the government’s pockets, or dismissed of this responsibility.**** How the government spends the money derived from the taxpayer, is even somehow less important, and how they spend it, or misspend it (see part 9) is pretty important stuff- at least as important as a beaver with coxydia finding out that sexting can be safe if not performed while going 65 mph on the interstate, unless they do so with a boll weevil that has snacked on some bad cotton buds. I would never admit to allowing the government to spend it unwisely, and agree to eliminate my frequent and reasonable requests for more accountability, transparency, discontinue this bloga (i.e. blog saga) and some kind of independent federal bean counters, just so that we could be taxed less, but we do need to be taxed less first, which would in part, begin to subject government spending to greater and greater scrutiny.

Madison on redistribution: James Madison, writing for the National Gazette, a paper backed by Thomas Jefferson, called for laws to prevent “ ‘an immoderate, and especially unmerited, accumulation of riches’ [and wanted] ‘to reduce extreme wealth toward a state of mediocrity, and raise extreme indigence toward a state of comfort.’ ” I don’t agree with this approach. It does not reward those who may have earned their rewards for the risks they have taken, while it allows those who have failed to labor, considering that they are able, to also benefit. Madison’s well chronicled concern for factions, which is at the economic heart of our country's political disagreement, is most adequately identified in these paragraphs, which appear in The Federalist #10:

“By a faction I understand a number of citizens, whether amounting to a majority or a minority
of the whole, who are united and actuated by some common impulse of passion, or of interest, adverse to the rights of other citizens, or to the permanent and aggregate interests of the community.

“There are two methods of curing the mischiefs of faction: the one, by removing its causes; the other, by controling its effects.” Since neither of those two options have seemed altogether likely, or possible, (since it would be a faction that would author that change), and the government having no recourse to mitigate the interests of private citizens (if there were someone would surely have informed their rivals that their viewpoint was Unconstitutional by now) we must deal with the consequences of natural human liberty of thought, which rarely brings fairness into account- whether the opinions of the extremely wealthy or the indigent are considered.

Income disparity: Quoting from a Justin Fox, Time magazine article (May 26, 2008, pgs. 36-41) that in an April 2008 Gallup poll, “68% of respondents said wealth ‘should be more evenly distributed’ ” while “51%, agreed that ‘heavy taxes on the rich’ were needed.” I wouldn’t fall into either of those categories. That does not sound like a socialist to me. I feel as if I should come up with a battery of instances, in Jeff Foxworthy "you might be a redneck-ese" of explaining to conservatives what actually constitutes a redneck, excepting that I would substitute socialist for redneck. One example- if you can't remember the last time you had a boner at work or thought that the news headline "the death of the king of pop" was offensive to those who call it soda, you might be a socialist.

The Patriot Act (ala Biden): During last fall’s presidential election season, democratic vice-presidential candidate Joe Biden made a tax pledge quite unlike that made by Minnesota governor Tim Pawlenty. Biden said, during one interview that: “We want to take money and put it back in the pocket of middle-class people.” He then noted “that wealthier Americans would indeed pay more, Biden said: ‘It’s time to be patriotic . . . time to jump in, time to be part of the deal, time to help get America out of the rut.’ ” Again, while I appreciate the sentiment, much like that above about mayor Bloomberg’s lack of presidential merit, I am not a proponent of that approach. The rich do not owe the middle class any money unless the latter are under the employ of the former; those do not seem like the words of a socialist to me.***** If Biden, and his like-minded senators, or those who are exactly the opposite, with desires for rewarding the rich with tax breaks and incentives, were patriotic, no class of citizen would be asked by their government to bear more of a burden than responsibility demands. I would assure Mr. Biden that American people of all classes are far more patriotic on average with less financial security assured to them than the average politician who ill considers some of their tax burden decisions in the federal legislature. Politicians and political pundits are amusing. The economy, credit crunch, the values of their homes plummeting, their jobs being stripped from them by workers overseas, the rising cost of health care, the infrastructure of the nation crumbling and taxpayers have to watch these people (politicians and pundits) with the audacity to appear on Meet the Press to discuss the vetting process of the newest supreme court nominee. How she will vote on the issue of abortion and whether she will be mindful of the obvious subtextual elements of a document (the Constitution) way past its prime, to the delight or horror of millions with a stake in her brilliance or fatuity****** are bizarre concerns compared to the havoc that a living document like the Constitution brings to our daily lives, too often unbeknownst to us. The ability of someone to look to the oracle of the Constitution and interpret the founder’s intentions is slightly more important than the starting pitcher guessing at how the home plate umpire will be interpreting the strike zone; and in the latter case, the umpire’s efficiency is formally judged. A sea anemone that just sits and waits for its prey to happen by, is treated like a whore by the clown fish and is consumed by the sea slug is less pathetic and still more independent than the Constitution; the latter gives life only to those whose imaginations are already dead. (Source of the quote above- “Biden Calls Paying Higher Taxes a Patriotic Act” Associated Press, September 18, 2008.)

Fair tax: It may be time to institute the Fair Tax, a consumptive tax, which is not to say one that has tuberculosis, but that rather taxes those who purchase goods and services, without compromising our immune system, so it is a tax of each according to his means. For the full details see- http://en.wikipedia.org/wiki/FairTax. From the book Affluenza (written by Clive Hamilton and Richard Denniss- “people would be taxed on what they consume, at a rate rising from twenty percent (on annual spending under $40,000) to seventy percent (on annual spending over $500,000) . . . the idea is to tax those with the most serious cases of ‘luxury fever’ . . . at the highest rates, thus encouraging saving instead of spending.” Which brings one question to mind- how in the hell is the government going to enact that. Too many of a politician’s constituents make a lot of money from a middle class that is in debt from the interest rates on their credit card bills. If the citizen is saving their money, they cannot be spending it. Like the national id card, education spending, government waste, and health care, I think it would be best to institute a pilot project to prove to proponents and opponents alike that it either would or would not work. The biggest problem preventing a fair tax pilot project is determining which states would participate. The solution- amending the Constitution so that a state’s rights are subject to the collected people’s will. Tracing every proposed solution back to the question of Constitutional authority is more frustrating than playing competitive hide and seek with a prairie dog who has the keys to your bank account. A convicted murderer in Virginia once said that the governor had just lost his vote, claiming that the state’s execution methods, (lethal injection) were unconstitutional.


INCOME AND TAXES

“The (Impossible) American Dream”: is an article written by Robert J. Samuelson for Newsweek (November 28, 2007) in which the author writes- “we’re more prosperous than at any time in our history.” Some of us are and some of us would want the words “on average” included in that sentence, lest we lose track of the big picture. Samuelson also writes that “About two-thirds of today’s adults have incomes higher than their parents did”- but this trend is sure to be discontinued in this time of 1.5% raises; another thing missing from this particular sentence are these words- as measured against inflation- its omission is telling. What is the point of saying that someone is making $20 an hour if a loaf of bread costs 10 times what it did 30 years ago, or that a furnace is obsolete 10 years after its installation these days whereas those built in 1973 are still going strong? It is a good idea when you write an article about keeping things in perspective you actually keep things in focus. Samuelson concludes- “The possibility that their children will move down the economic ladder, in class position if not income, is one of the great anxieties that assault the vast middle class, even at its highest reaches. Mobility is a great thing, but it often comes at someone else’s expense.” Quite right, and it comes at everyone’s expense if the government decides to add or increase taxes in lieu of responsible spending. (See- http://www.newsweek.com/id/72618.)

Conservative assessment: Minnesota radio talk show host Jason Lewis wrote an article for the Minneapolis Star Tribune which appeared in September of 2007. In it he writes “ . . . since the Census Bureau figures don’t include the value of noncash government benefits, such as food stamps, housing subsidies, Medicaid or even the Earned Income Tax Credit, the data suggest a far wider gap in lifestyles between John Edwards and middle America than between poor and average households.” My point all along, no matter how convoluted it would be for me to break down his valid and invalid points about overall consumption of government outlays by the less fortunate compared against the rich, in terms of overall measureable income. The data actually suggest, such as below, that 75% of all income the last 7 years has gone to the richest 1%; referring to the average amount of redistributed tax credits or social service money handed to the poor is a waste of words, excepting if it is given to those abusing the system, and not all people receiving assistance are in that category.

Arguing about economic disparity between two combatants with facts in hand cannot be done if one of them is without empathy and objectivity and the other is without tolerance for those deficiencies. Republicans, particularly those who are preoccupied with reelection, are more stubbornly aggressive about a high-end income tax and state business taxes than a fossa, a cat-like animal that lives in Madagascar with the agility of a squirrel and the temperament of a wolverine, worries about the next infant dinner it hopes to have. Sometimes I get those two worries mixed up. But then again, conservatives confuse their paranoia for die hard protectionism and think it is their duty to keep us safe from a government that is just as dangerous when they are at the helm.

My assessment: There are liberal political pundits so jaded in their coverage that they may be more worried about a republican governor’s use of unallotment in the first year of a biennium than of our $4.1 billion trade deficit with Mexico, a nation of families that might feed their children sand for breakfast. Liberals are probably more worried about saving a species of albatross who enjoy auto-erotic asphyxiation, where they tie themselves around each other’s necks, than about someone whose tax deductions include an attempt to claim a hot tub with mood lighting as a business expense. One cover of Time magazine just before the 2008 presidential election, featured an electronic voting machine, with the cover title- “7 Things that Could Go Wrong on Election Day”. Two things- I think they stopped at 7, because they had to fit in some exclusive with Obama. Time magazine running with a story that refers to access to Obama as an exclusive is like me saying that robins are on the endangered species list. I fished that copy of Time out of the recycling bin for a joke about electing a republican or democrat as two of the seven things that could go wrong on election day. I wanted to refer to this cover as the first in 2008 that actually did not have Obama on the cover. Shockingly predictable, when I peered into the recycling bin, Obama’s face appears in the top right corner. The sun rising is less expected at this point. (Note: unallotment is where if a forecasted deficit remains the governor can drain reserves, then cut appropriations.)

Income: In reading yet another old issue of Time magazine I discovered this column: “How the Next President Should Fix the Economy” Justin Fox, May 26, 2008, (pgs. 36-41), same as above. Fox separates into categories the major concerns of the next president, and the reason for our current predicament. Two categories that appear in succession within the article stick out to me. Fox writes (under the heading “Income”) “75% of all income gains from 2002 to ’06 went to the top 1%--households making more than $382,600 a year.” Jesus, how much is enough for you people really? Further, Fox writes- “The gap between high and low earners has been growing since the late 1970s, and until recently, economists attributed virtually all of it to technological and demographic changes that increased the premium paid to those with advanced skills and education . . . And you certainly wouldn’t want to discourage people from getting an education by heavily taxing the rewards for it.” I would not, (that does not sound like a socialist to me) but neither do I want the cost of a college education to financially extend a middle class student so that they finally are done paying for it when their mid-life crisis is upon them. Those who protect the free market from the onslaught of regulations believe that the market corrects itself- that additional competitors will avoid jumping into a certain market if there is not enough profit for them to risk investing money to obtain it; the government is apparently accepting of the proposition that only the richest 5% of the country can afford a college degree and take a similar approach to justifying it- that those who would attend college are not likely to recoup the financial investment, in lifetime earnings, they would have to make. Perhaps the government is pleased that American workers are replaced by foreign ones. Is there any way to outsource presidential or legislative work, or work normally done by liberal or conservative ideologues?

Tax cuts: Fox writes- “Many economists now believe at least two other factors have contributed to the growth in inequality: [aside from education which was the factor I addressed above] globalization and Reagan’s big cuts in taxes on the rich. Even as it rewards those at the top of their fields worldwide with spectacular paydays, globalization holds down earnings for millions of Americans who compete with workers overseas . . . Public opinion has reacted to this with increasing distrust of free trade.” Ya think? (Note: I’ve checked out a book on globalization and will address that more specifically in a separate post. I need to give the people something to look forward to- something akin to a prostate exam given by a Japanese spider crab diagnosed with a difficult temperament prone to mood swings.) Fox concludes the subtopic of income in his article by revealing “the income gap is an issue that’s been danced around for too long. It’s time to address it.”

Taxes: The other subtopic of interest from Fox’s Time article was “Taxes”. He writes that “In general, we levy taxes not to ease income inequality but to fund government . . . for the 2008 fiscal year, which ends in September, the government will probably spend $500 billion more than it takes in, a deficit of 3.5% of GDP.” That cannot continue. The only two options are control government spending (in my opinion by redirecting what the government already takes in in taxes to more worthwhile, responsibly-managed areas) or taxing the public. The desires of the public given this dichotomy are more obvious than the brotherly love a fairy tern with attention deficit hyperactivity disorder******* has for a sea gull to which it was once considered more directly related. If that wasn’t clear, I think the American public wants the federal and state governments to be more responsible.

Pro business taxes: In her article “It’s His Tax Hike, and—Bravely—He’s Sticking to it” (May 10, 2009, OP1 and OP3) Minneapolis Star Tribune columnist Lori Sturdevant writes of her man crush on DFL senate tax chairman Tom Bakk who may be running for Minnesota governor in 2010. Ok, so it isn’t really a man crush . . . Sturdevant is a woman. She finds “Bakk’s unabashed call for a tax hike an uncommon show of political courage and candor.” I think that after six years of her excoriating governor Pawlenty, she is fawning after any kind of tax increase at all. I think she may be happy if the only taxes we raised across the whole state were hers, and I’ve commented that taxes may need to be raised, only after it is objectively verified that they have to be. I’ve written this so many times, as recently as the beginning of this installment, I won’t even bother with a cross reference. Bakk’s proposed tax bill, in addition to rolling back some income tax reductions from 2000, would add “a fourth tier, 9.25 percent on any portion of married joint filers’ incomes greater than $250,000.” That, to republicans, is more illogical than the mating habits of the Mekong giant catfish. Sturdevant also writes that “Baak refutes any suggestion that he’s unfriendly to business.” Riiiiiight, and I’m not passionately long-winded. “Baak believes access to quality education and affordable health care are probusiness” not while your bill includes a “$330 million increase in the statewide business property tax.” Saying you are pro business while championing a bill which significantly raises taxes on businesses is like saying the flippers a sea turtle uses to move through the ocean can also be used for flight. I would only be in favor of a tax increase on small businesses making less than $300k if 1) we had already saved millions in state funds that could be redirected to education and health care; 2) the richest 1-5% of the state had their taxes increased and 3) a guy like Baak stops admitting that eating tapir feces is an aphrodisiac. You can’t make outlandish statements that unite two completely antithetical worlds and expect the taxpayer to take you seriously; who do you think you are, some kind of blogger or something? Sturdevant seems like she would believe Baak if he said that installing a chain link fence would keep dandelions out of her yard.

Vote on Taxes Committee: I know there are all kinds of entities, conservative, liberal and Independent running around predicting a novel and depressing future for a country as great as ours, like little Nostrodami, but on the issue of taxes very little predicting is necessary. If we keep raising taxes to fund war and welfare, health care and social security, the budget deficit, a weak economy, protecting gravity from falling leaves in the fall, whatever the reason, this leaves the people and its country morally and financially bankrupt. This is the first page from a website I ran across doing research on the subtopic of taxation:

“Your ‘Vote on Taxes’ Committee is committed to adding the ‘Vote on Taxes’ amendment to the U.S. Constitution. History has demonstrated that requiring voter approval of new taxes and spending will ensure that future generations of Americans will enjoy significantly higher standards of living than if government continues to tax and spend at will. The official forecast is for the U.S. to run out of money by 2050 leading to a multi-generational economic decline.

“The process of amending our Constitution is difficult, time consuming and needs the broad support of the American people. Never in our history has an amendment been successfully proposed and ratified by state legislatures. But, the founding fathers had the foresight to include a way that the states, without the help of the U.S. Congress, could change the Constitution if there were no other way to preserve the American dream of freedom and expanding economic prosperity.”

What!? Bypass Moses (the U.S. congress) in order to get a new commandment (Constitutional amendment) into the most venerated list of ambiguously worded rights ever written. We would have a better chance trusting an el legarto with diphtheria to baby sit our children than of adding a logical, people’s rights amendment to that document, a right that is not infringed upon by government, conservative blowhards or liberal tree-huggers, abused by convicted murderers, or misinterpreted by supreme court justices. (Note: el legarto (or lizard) is Spanish for alligator.) Nowhere is referendum voting more needed than on the issue of taxation and that is what will make the process of fighting its collection the least likely alteration in the country. After all, if we bypassed politicians and charged ourselves with our own governance, who would misrepresent us? Too bad we cannot deleverage our warehouse full of politicians like a lot of companies have been doing with their assets in order to gather capital.

Tax obligation: I don’t know that anyone thinks the idea of having their taxes raised sounds like a good idea, but I agree with Nader who writes that: “For millions of individuals, acceptance of their tax obligations would increase if they thought everyone was paying their fair share and the monies were being used efficiently and wisely.” (The Good Fight,********* pg. 80) That is quite a lot to expect of our government, quite a big if, but hardly an extreme idea. We'll probably never get any more from our government unless we demand it, and likely even if we do. There is a better chance of seeing a puffin off the coast of Maine the third week of August that is into cannibalism and dreams of being a former catholic prelate than there is that the government is going to be responsible with our money. Strange things happen all the time. It was inconceivable two weeks ago that the USA would be playing for the FIFA soccer championship, considering the string of events that had to go their way: a win by 3 goals a loss by Italy of 3 goals and a US victory over #1 Spain.


ECHO NARCISSISM REVISITED- see part 16
(Independent party continued from above)

I could probably have been done with this overall topic of the economic middle class woes a long time ago except that my stubbornness and diligence outrank other people’s attention span. I must admit, if I weren’t the author of this now 50 part blog saga, I probably wouldn’t be reading it either. I wrote- probably.

Supposed: They tell us it is supposed to rain, our kids are supposed to behave and eat their vegetables, we are all supposed to say please and thank you, but apparently no one told Joel Stein that Independents (those by word and deed) no longer feel as if voting for either a democrat or republican is something we are supposed to do- not those of us with balls anyway. Joel Stein wrote a column that appeared in the March 10, 2008 issue of Time magazine with the heading “How Sorry is this Guy? If Ralph Nader wants any votes in this election, he should cop to the last one he screwed up.” (pg. 72).

Stein begins: Nader “is the progenitor of two of the world’s most annoying types of people: local-TV consumer advocates and guys who enjoy reminding you to put your seat belt on.” I happen to think that is fairly standard fare and would consider those as two more things, well-meaning citizens are supposed to do. I would have guessed that flaming liberals, like Stein, (after all, he writes for Time magazine) who have probably compared Al Gore to Bobby Kennedy, would also be on the short list of the world’s most annoying- along with Mario Lopez (Slater from “Saved by the Bell”), the dude who got dimple implants before deciding he would never say no to any project his agent ever brought to his attention. Yeah, I can do cutesy little allusions to strangely popular television personalities too. (Stein had dropped an Urkel reference in the column- very impressive.) Perhaps Stein has never shared an apartment with a squirrel, had to wash parts of their bathroom ceiling down the drain before stepping into the shower, or had a sprinkler company blame you for their mistake after unsuccessfully winterizing your irrigation system. Stein may never have needed to file a claim to the Better Business Bureau, nor needed to go to court to fight the apartment complex manager for the rent money you put in escrow, (because of the squirrels and the leaky pipes I mentioned above). These types of protections are in place because of people like Nader- look up Nader's bio. The real world’s most annoying types of people are hypocrites and bo-bos for one of the two major political parties; the dichotomy between those two types is less complex than the plot of the average Full House episode, because there isn’t a dichotomy. Does the term package deal mean anything to you?

Dismissed: I really wonder why Stein would write an article about how easily Nader could be dismissed. Isn’t it easier to dismiss someone if you don’t bring up their name? Apparently Stein can’t handle the truth and did not get the memo, that Nader was not to be touched by any in the media in 2008, which is the surest sign of disrespect in print form. (Of course, it is difficult to use the form of disrespect categorized by not writing about someone if you’ve already decided to not write about them. Don't worry about it- that one confused me too.) Stein must have been hard up for a column to defy his brand of liberal mafia bosses********** like that—he went all Code Red*********** on Nader in this article, and I am presuming without consent from those who choose which candidates are worthy of being ignored, or unworthy of being covered—you’d be surprised, there is a huge difference, or not. That can backfire. Note to self, look into the difference between the liberal print media and the liberal television media, and calculate the difference in terms of overall "political elitist" points. According to Stein, Nader “[took] key votes from Al Gore . . . [and that democrats and republicans] hate him for getting George Bush elected.”

Mock outage: Fans of professional sports grow eager as playoff series and championships are to be decided because they expect that the two best teams throughout the season ought to meet to decide the title. The better NFC team during the 2007 season was the Green Bay Packers, as evidenced by their 13 wins and home field advantage in the NFC championship game, which they lost to the New York Giants, a wild-card team, but the better team that day. Gore, apparently wasn’t considered that much better than Bush in the 2000 election or the supreme court would not have been required to declare Bush the president. The Giants went on to stun the almost invincible, and undefeated, New England Patriots for one of the most entertaining and improbable championships in sports history. So, when Stein writes that “Nader just can’t admit that he’s at least a little responsible for Gore’s loss” I cannot help but disagree, even should Stein be penning one of his columns teeming with mock outrage. It almost seems as if, and I am probably just being a little sensitive here, that Stein is blaming what all of us, as Americans, have been through these last eight years, with Bush II at the helm, on Nader’s limited appeal to those fed up with the failures we, as a collection of voters, keep electing. It isn’t the Independent’s fault that the major party’s put up two very average candidates. The venom of some of the more obvious implications Stein makes might lead an aye-aye whose mental retardation is discussed in the lady bug community to celebrate the first original thought of its life. To wit, Stein admits: “I’m still glad he’s running. It’s important for people who feel they’re not being heard to have the option to vote for insane, incapable candidates . . . Only new parties can break us out of dangerous paradigms . . . [and that] a two-party system is designed to eliminate extreme ideas . . .” and here I thought it was because they could collude to suppress reasonable ones, like fiscal responsibility, a review of government oversight, a position of compromise between the two extreme political ideologies that are defined by the republicans and democrats and backed by the media. Even a Smurf shaman knows that. (Note: For instances where a republican or democrat has either been proven or suspected to be a hypocrite please see parts 1-49 or do some research for yourself. I can't do everything. The number of supporting arguments a millipede could make would probably not shock you. That means- everyone, even insects, knows how consistently rueful, and how easily obtainable are examples, of the pledges and promises of politicians and the manner in which they go about the super-legal business of collecting money and votes.************)

Seriously: Stein condescendingly concedes that “a new party is not Nader’s goal. He simply wants to give people—especially those who are independent and didn’t vote in the primaries—a chance to register dissatisfaction so extreme that they’re willing to hurt themselves to express it.” Stein, a bo-bo for liberalism, is spectacular at delivering his brand of hip demagogy and is still angry that his average candidate (Gore) was Bush-whacked in 2000; isn't there counseling for that? A dingo roadie eunuch is less hip but more potent than someone who writes an article about dismissing someone that is attempting to better the political landscape with intelligence and process improvements. Stein should just take an intern assignment with the WHO************* and propagate the information storm for this fall’s swine flu extravaganza or disseminate leaflets autographed in tears shed after he learned of the death of Michael Jackson.************** Reading Stein makes me want to give my recliner a hug. Stein’s whole article is about downplaying the need for additional parties in the political process; Independents (and by that I mean those who actually vote for Independents) take democrats and republicans as seriously as they take us. That is why we don't vote for them anymore; we may have to wait 20 years for everyone else to catch up.

Foolish consistency and consistent hypocrisy: I stopped favoring people that lied to me in the third grade. Mr. Stein ought to remember that “A foolish consistency is the hobgoblin of little minds.” – Emerson. Consistently voting for one consistently hypocritical party or another to keep some kind of exemplary ignorance streak alive is also something for which one should apologize. If Stein, and the millions like him, can’t figure that out- get out of the way. (Note: if anyone questions why I could continue to use the word hypocrisy, do some research on the candidates from both major parties over the past 70 years- it isn’t pretty; there are just as many crazies in that bunch as anywhere else. Those in the mainstream who cite examples of kooks in the margin have a shorter memory than a sardine with rheumatism that somehow accidentally just escaped from its tin coffin. There just isn’t room on earth for that many in the mainstream to be such hypocrites.)

Stein concludes: “Part of Nader’s problem is that the Democrats are so good at self-righteous anger. Perot cost the first Bush the 1992 election, but no one got too upset when he ran again in 1996. People just ignored him. That’s how third parties are supposed to work.” Not exactly. Third parties introduce mainstream components essentially authored by a number of citizens who have grown tired of the same damn thing over and over again- partisan politics, hypocrisy, ineffectiveness, lies and half-truths. Actually, “people” did not ignore Perot, as he still gathered over 8% of the popular vote, pretty good for someone who was ignored. Elections have been won or lost, and blame assessed to third party candidates who have gathered less than 8%. Who really ignored Perot, the third party candidate, was the media, who always loves a good story, even if they have to make one up. Clinton, after all, only beat Dole by a little over 8%. So, whose problem is it when an incumbent president, whose popularity was pretty high among democrats, with the media behind him, defeats a senator well past his prime, (Dole had been running for either vice-president or president every election since 1976, excepting when his party was running an incumbent president) by a relatively small margin in popular vote while an Independent candidate gets about the same percentage (8%) as the popular vote margin of victory while being ignored? It is easy to say that the people ignored Perot when they were only following the media’s lead. (Note: there were 11 states in the 1996 election where the percentage of the popular vote was less than 5%. Men like Stein should either pay attention to a third party candidate, or the bo-bo mandate handed down to him by others, but not both. It is best to be consistent. Also, after three unsuccessful attempts at claiming the office of the president of the United States, shouldn't Bob Dole have just gone away?)

Conversations: I’ve gotten involved in a number of issue discussions with friends and relatives about politics over the past five years and this is the simplest way I can state this. Take an empty ice cube tray and hold it so that the long end is at your stomach as you stand poised before the faucet. Turn the water on at half flow and watch to see what happens when placing either the left or the right row of compartments directly under the stream of water. More than half of the water we intend to direct into the compartments in the left and right columns shoots out of the tray. Move the tray so that the water hits the divider between the two columns. The tray is so much easier to fill. If one man’s uncle is huffily proclaiming that all the republicans do and say is right and another man’s neighbor is saying that the democrats are so spot on in their world view and have exactly the opposite stance as a republican on the ten biggest issues of the day (health care, entitlements, immigration, education, foreign policy, redistribution of wealth, etc.), wouldn’t logic dictate that the man that thinks they’re both nuts, and values the better components of each such as they are, be more reasonable by default?

Faction: When following the herd, it may be best to, at times, consider if you are going the right way, and if you are leading it, if you do well by those that follow. There is no doubt that the Independents have “the permanent and aggregate interests of the community” in mind- consistently. If you are skeptical about whether the republicans and democrats do, why keep voting for them or why listen to people who have apparently cornered the market on faction.

_____________________________________
* And when I say electable, I only mean- capable of being elected. This does not speak well of those who are casting votes in favor of those types of candidates.

** As judged by who? Well, the taxpayer of course. I probably have not indicated enough that there ought to be more referendum voting, particularly where the money to be used for any endeavor comes directly from the money that a citizen has earned from their own labor. There are plenty of caveats with this which it may be best not to address at this time, else this column digress into a topic far removed from what is intended. I do that enough as it is.

*** I read an article in the Minneapolis Star Tribune written by columnist Nick Coleman that tried to put a myth about Minnesota being a welfare state to bed (see OP3). Coleman quoted governor Tim Pawlenty as saying (after he vetoed certain tax increase measures that would have benefited the poor): “ ‘There’s increasing concern about people coming from other parts of the country for our welfare system, . . . They’re not coming for the weather.’ ” Coleman then refers to a Department of Human Services report that indicated that “14 percent of public assistance seekers were from outside Minnesota in 2007” and then admits to not knowing “how many public assistance clients left Minnesota.” A) I would not refer to public assistance recipients as “clients”, and B) if you have no knowledge of how many of those on public assistance left the state in 2007, perhaps you ought not to bring it up- it may look like the point of your entire column was overcome. If communities could recover lost funds spent on no-bid military contracts and redirect that spending toward K-12 education, by paying more for talented teachers rather than those whose union protects their own inadequacies, the unfortunate link between a lack of an education and employment prospects could be in part resolved, which would alleviate some of the crime committed by those who are woefully uneducated. You wish to deny the connection between an uneducated populace and the amount of criminal activities they are involved in? Good luck. Yes, I turned the topic from social services and tax vetoes to education and crime- you will have to live with that. (Note: When I refer to crime- I am not talking about white collar crime; we all know that is an inestimable amount- any calculator I’ve ever owned only goes to eight digits.)

**** A Time/Rockefeller Foundation Survey found that 66% agreed that “even if you work hard and play by the rules, you can no longer expect to afford health care, college and a secure retirement.” (Time- July 28, 2008, pg. 41) That question did not include all of the other necessary costs that people forget about, heating oil, gas, home maintenance, financing weddings, paying for the furnace to be fixed, new siding, youth hockey, etc. It should also be noted that the percentages as broken down indicated that those making less than $20k were at 76% and those making more than $100k were at 56%. The most significant percentage to me was that the broadly defined middle class, those making between $50k and $99k came in with a percentage that matched the overall number- 66%.

***** My words, not Biden’s.

****** Depending on which interpretation you would like to believe- that she is a racist and sexist judge because of her well-chronicled comments about bringing her life experiences into play, as a latina woman, before deciding a case, or that her brand of intellectual empathy is just what the court needs, one thing is certain, there is no shortage of things that need to be interpreted where the Constitution is concerned, so why not have another justice whose divining powers are not beyond reproach weighing in on cases that barely affect anyone anymore.

******* Given that both the fairy tern and the federal government both have ADHD of dissimilar classification********, I would trust the tern’s ability to cope with their version of the neurobehavioral developmental disorder, even should they only be charged with using their beak to redistribute federal funding appropriately.

******** A footnote in a footnote again- the government suffers from ABDHD- attention budget deficit hyperactivity disorder- which compels the federal and state fundraisers to, impulsively and inattentively, funnel large dollar amounts to projects of which the taxpayer does not approve.

********* A book that is just barely less important to the social and political landscape as da Vinci’s 1,120 page Codex Atlanticus is historically. The Codex contains drawings and writings from 1478-1519 on topics such as flying machines, weapons, mathematics and botany.

********** I was going to go with a reference to Boss Hog, the white-suit wearing big-boned fellow from The Dukes of Hazzard—after all, I have an 80s-themed rebuttal going here.

*********** Anyone realize I just made a number of A Few Good Men references in that paragraph? I know, AFGM is not from the 80s and is not a television show. Just my version of Where’s Waldo- with words.

************ A fund-raising event held at Hsi Lai Temple in Hacienda Heights, California implicated former vice-president Al Gore. The event was organized by DNC fund-raisers. "It is illegal under U.S. law for religious organizations to donate money to politicians or political groups due to their tax-exempt status. The U.S. Justice Department alleged Hsia facilitated $100,000 in illegal contributions to the 1996 Clinton-Gore re-election campaign through her efforts at the Temple. Hsia was eventually convicted by a jury in March 2000. The DNC eventually returned the money donated by the Temple's monks and nuns. Twelve nuns and employees of the Temple refused to answer questions by pleading the Fifth Amendment when they were subpoenaed to testify before Congress in 1997." Google Gore and campaign finance issues and you will eventually navigate to that result. And how perfect- that those who contributed the money illegally,would be protected by the Constitution.

************* Not the band- the World Health Organization.

************** Personally, the loss of Farah Fawcett is just as terrible. Sure, discovering who is next in line to the throne of The King of Pop will occupy us for weeks, but the loss of the woman who had the most famous nipples on the planet is far more daunting. Besides, I always thought it was strange that carbonated beverages needed to seat a monarch.

Monday, May 25, 2009

Middle Class Part 49: The Free Market and Constitution Again, Taxation Chapter 3 and Samuel Johnson's Poetry

FREE MARKET

Samuel Johnson I: In 1749, Samuel Johnson, a historically well-known personage for many reasons, including his pessimism, wrote a qualified rebuttal imitation of an already fairly famous satiric poem written by Juvenal. The poetic offering of both has come to be known as “The Vanity of Human Wishes.” I will take the liberty of quoting a number of lines, from Johnson’s more popular sequel, in order to draw us into this installment’s sub-subtopic of the free market; whether I will ever be able to logically connect this subtopic to the subtopic of taxation, the broad heading of which is supposed to be my exclusive domain given the third aspect of the title above, remains to be seen. This is politics . . . logic has nothing to do with it. Johnson writes:

“But scarce observ’d the knowing and the Bold,
Fall in the gen’ral Massacre of Gold;
Wide-wasting Pest! that rages unconfin’d,
And crouds with Crimes the Record of Mankind,
For Gold his Sword the Hireling Ruffian draws,
For Gold the hireling Judge distorts the Laws;
Wealth heap’d on Wealth, nor Truth nor Safety buys,
The Dangers gather as the Treasures rise.” (lines 21-28)

Samuel Johnson II: Johnson’s updated version of Juvenal’s original appears to follow the latter’s mocking of the tragic and comic aspects of certain members of the human race, given their ego-centrism (a twentieth century word for a first century [Juvenal] or eighteenth century [Johnson] stock term [i.e. vanity]). The twenty-first century politician is both a comic figure, consider the roasting they endure on late night comedy programs, and a tragic one, as their failures continue to underscore, and cause, ours- a fate we deserve for having elected them (see the quoted lines wich immediately follow this paragraph- which can later be tied into the subtopic of taxation as it pertains to Minnesota's governor's abandoned responsibility to the middle class taxpayer). Johnson’s poem is, most simplistically, a lesson plan of how not to conduct business in this life and if you, as a politician, do not adopt a vast array of attitudes probable infamy awaits- despite having delivered on a pledge to avoid raising taxes (see MN governor Pawlenty below). Johnson writes the names of those who have served, infamously in Johnson's mind, in the British government who have failed and in what ways. Ultimately, what drives the political establishment may be the same thing which drives the financial geniuses- greed; there is little difference between the drive for power and wealth; they are often two sides to the same coin. After all, people run the markets, fail to pass regulations (or even consider them), fix interest rates, trade hedge funds, decide upon potential punishments for transgressions, etc. It is greed that has seemed to prohibit any money saving measure for people who have put trust in a market that is anything but free, as we’ve found. For, the free market has cost many half, or more, of their retirement savings; and those politicians, as I wrote last time, are wandering dangerously free with no way to keep the taxpayer safe from them. (Note, I am aware that those same practices had initially made prospective investors and retirees thier retirment nest-eggs to begin with; and that is the point, without regulations, wouldn’t the same cycle simply repeat itself? The financial capitalists would get to keep the money they never really earned for the investor to begin with?)

"Through Freedom's Sons no more Remostrance rings,
Degrading Nobles an countrouling Kings;
Our supple Tribes repress their Patriot Throats,
And ask no Questions but the Price of Votes;" (lines 93-96)

I'll say that the "price" of votes is nowhere near the cost of them.

Will on greed: George Will wrote a fantastic column for the Washington Post (“In Markets, No Greed Goes Unpunished”); and when hasn’t he written a fantastic column? Will's column, which appeared in the May 17, 2009 Opinion Exchange section of the Minneapolis Star Tribune (OP3) was quite remarkable indeed, and I am not being a bit facetious. Even after I had finished reading his commentary justifying the lawlessness of the free market, maintaining that the greedy may be punished for their over-indulgence in the apparently synonymous realms of the economic free market and ticket scalping, and requesting that “Perhaps it would be restful to give moral reasoning a rest and give economic reasoning a chance,” I still had an empty feeling in my brain- like how confounding, and wistful- completely metaphorically, I find the idea of an almost three year old daughter's hobby of hoping to catch a bird with her bare hands. Somehow, Will's logic didn’t fit. Will spent 726 excellent, almost transformative, words comparing the rules, or lack of them, in the ticket scalping game, with the lack of regulations in the free market. Will’s point is that the greed of charging too much for tickets is its own most effective deterrent and will most naturally punish those who do not know the market. Here is a rebuttal, which shoots his argument all to hell in less than 66 words- when the unregulated ticket-scalping business sets the market for a pair of moderately anticipated Red Sox v. Devil Rays tickets out of my price range . . . I don’t go to the game; when the free-market intelligentsia, dabble in junk bonds, and are allowed, by the federal government,* to mismanage the trading of mortgage-backed securities so that I lose half of my 401k . . . I don’t retire. Ah, the drama of the ellipsis. Try again George. (Special note and many points to Mr. Will for subtlety. The play on words with the title of his column and the cliché sound-alike- “no good deed goes unpunished.” Very impressive. Greed often does go unpunished- didn’t I read something about $700 billion going to the financial industry for a bailout because of a lack of regulations? I thought so.)

Johnson III: Johnson penned his remarks with Britain’s parliament in mind, but are these remarks, to the extent that they are decipherable by the 21st century American mind, so far off the mark these days? Doesn’t the unregulated greed market play quite an integral role? In a perfect world morality would not need to play a role in the economy, but we’ve tried it the pathetically bombastic, typical conservative’s way already. I've read my Friedman and my Adam Smith and they didn't get everything right. These lines I find somewhat appropriate:

“Where Wealth unlov’d without a Mourner dy’d;
And scare a Sycophant was fed by Pride;
Where ne’er was known the Form of mock Debate,
Or seen a new-made Mayor’s unwieldy State;
Where change of Fav'rites made no Change of Laws, (electing members of other parties)
And Senates heard before they judg'd a Cause;
How wouldst thou shake at Britain's modish Tribe,
Dart the quick Taunt, and edge the piercing Gibe?
Attentive Truth and Nature to descry,
And pierce each Scene with Philosophic Eye.
To thee were solemn Toys or empty Shew,
The Robes of Pleasure and the Veils of Woe:
All aid the Farce, and all thy Mirth maintain,
Whose Joys are causeless, or whose Griefs are vain.” (lines 55-68)

To me the last line means that we have no one to thank for our joy or grief; I don’t find this so universally true among people and consider that we can be the cause of our own joy, and just as easily find that grief is anything but vain, especially when it is not of our causing. Considering the sheer volume of supporting arguments I have cited since I began this expansive middle class topic, anyone would have an impossible time convincing me that the economic condition of the middle class is a self-inflicted wound.

Better sports metaphors: I am surprised at Will’s misuse of a sports metaphor to justify why there should be no regulation on the devices used by those in the free and financial markets to make money and why there should not be a maximum amount of money overly greedy free market cost setters (CEOs, marketing departments, business analysits, stock traders, hedge-fund managers) can make under any circumstances using any and all means necessary. Here are some more applicable analogies: the NHL uses the instant replay to ensure that the attacking player has not violated any of the rather refined crease rules- goals may be disallowed if a violation is found; instant replay is used in hockey if there is a question whether the puck crossed the goal line at all or whether an offensive player used a kicking motion to direct the puck into the net using their skate. These video protections are in place to prohibit one team from using inadequate means in order to score goals. In football, the use of instant replay is at the head coach’s discretion. He is allowed two challenges a game and acquires another one should his first two challenges go in his favor. This “challenge” protection, keeps officials, who are only human, much like those that run our financial markets and free markets, from making a mistake, some of which are unavoidable. Protecting the American public from a financial market worker’s decision, who is fully capable of making an unavoidable mistake, or even an avoidable one, should be a challengeable check put in place. Likewise, just this season, a sport I believe is Will’s favorite and about which he knows an exhaustive number of facts, has, probably despite his wishes, instituted an instant replay rule which allows umpires to consult the replay in order to determine if a player has hit a home run. This protects the team in the field from the human errors made by umpires attempting to distinguish dingers from doubles or foul balls from fair. Often, a purist will indicate that they would even have their sport monitored by trained officials rather than a more reliable backup plan such as replay. I would rather have the legitimate winner and champion crowned. These players spend eight months playing games in some cases and can spend another couple months training for the seasons. I would not want anything but skill, dedication, desire or luck to determine the outcome; thousands and millions of dollars can be lost, careers can end, jobs can be lost if the correct call is not made.** For those who would claim that the inaccurate calls all even out in sports- unfortunately, this is not the case in the free market or the financial market. If this were so, you would lose a job only to quickly regain one, you could be foreclosed upon in one neighborhood, only to find a home with as much square footage a week later, the vastly overpriced laminate flooring you bought would be equaled by a $2,000 off coupon on the carpeting you’ve been looking at. If there is a zebra mussel with rickets that likes to travel on the bottom of a boat pulled out of Mille Lacs and the owner never cleans his vessel, that acquatic bivalve mollusk is going to infect other lakes; it is time to impose harsh penalties on those with a wilful disregard for morality and the only way to do that is to invest in a solution comprised of well-considered regulations.

Regulations I: Further, every sport I know uses videotape to determine fines and punishments if players leave the bench or throw a punch in basketball or if a player led with their helmet to tackle another player in football, etc. While videotaping all of the decisions made by those in the financial market or those conducting business in the free market would be impossible, imposing rules beforehand with suitable punishments is completely necessary and possible. There are protections and protocol in place in just about any walk of life I can think of with the exception of contractors, the slugs of the working world. We call the protocol at my place of employment- best practices- proven methods for arriving at the more prudent result. Parents use some guidelines, it can be hoped, to raise and discipline children; there are traffic laws, tax laws, military tribunals, international agreements on protocol for handling detainees and interrogations, sans the water boarding of grasshoppers; contractors must build something to code while failing to call you back on a bid for weeks; a visit to the doctor’s office brings the same type of questions about health history and current illness because it is a method that is meant to aid in a diagnosis in addition to its being redundantly annoying; there is even something called etiquette that old ladies value when setting the table and teaching young people how to be polite. And, as Mr. Will well knows, there are even unwritten baseball rules (your pitcher threw at my hitter kind of thing); hell, you could even have unwritten rules in the free market, just impose some penalties if they are violated, just as baseball does when it throws pitchers and managers out of the game for throwing at batters after both teams have been warned. There were probably more rules surrounding the Michael Vick-backed dog fighting ring, or who is the rightful owner of a cat found inside a used couch than there are in the free market. Why should we be without rules where our economic lives are at stake? (For the cat in the couch story see- “Sofa Surprise: Cat Found Inside $27 Used Couch” Associated Press, March 13, 2009).

Disclaimer: As always, if it is determined that the government has not wasted billions and billions of dollars in taxpayer money, the harshness of my critique on the richest 1-5% goes down considerably. As I have written many times, it is not my argument to redistribute wealth without reason. Unfortunately, allowing a free market to act like a spoiled child who won’t stop whining until you buy all the toys in the store for him has no interest for me. There is a limit- if a factory worker is making $10 an hour and a CEO about to be fired for costing the company that factory worker is employed by tens of millions is handed a $25 million golden parachute, no amount of government waste money identified, and recovered by the taxpayer, will convince me that no regulations on the free market is a good thing. Only people raised by wolves- (i.e. republicans) would think that.

Mill’s v. Will’s: If Will’s only contention is that there should be no maximum threshold of money obtained by those in the free market, because their overt greed is certain to punish them, let us just have a failsafe, a set of guidelines ensuring punishment will follow when greed rewarded, while others suffer, gets out of line. Under no circumstances should the Gordon Gekkos of the world make all of the wrong decisions for 90% of the world’s population and thrive. I would add these stipulations as a way of not merely complaining without offering some sensible ideas, which is a complaint that conservatives and liberals who aren't paying enough attention keep trying to make- 1) that American workers are not laid off in lieu of foreign workers, 2) ineffective CEOs are not paid wages 70 times greater than an average employee, 3) and that higher taxes for the middle class, the current or subsequent generations, is not the product of a lack of government oversight on the free market. If these continue to be problems the middle class has with business and taxes are raised 2% on the middle class then they ought to be raised 4% on the richest 1-5% in the country (only should the qualified statement in the disclaimer paragraph above- that the government is found not to be wasting money) is found to be inaccurate- in which case the middle class is also not on the hook for the 2% hike. There are some protections homeowners can take to defend against the dreaded Emerald Ash-borer from destroying their ash, but cannot rely on any form of morality from the government, to which they pay 25-35% of their salary in order to protect their ass from wall street or the free market. Mr. Will should be mindful of the damage done by the banks and mortgage industry, who underwrote tens of thousands of mortgages, and were allowed to by the government, to the detriment of homeowners who had their homes foreclosed on. The old argument which is immediately used to counter this complaint (about those who had their homes foreclosed on) is to blame the homeowners who accepted the sub-prime mortgage. I accepted a sub-prime/flexible arm mortgage rate and re-financed at the earliest allowable time and found a very fortunate fixed interest rate. Not everyone irresponsibly took that arm rate. So, between capitalism's invisible arm (introduced as a metaphor by Adam Smith) and the flexible arm interest rate is the middle class confined in their economic situation by both. On the one side the middle class is unable to profit by the one as much as the rich (capitalism) and not allowed to advance into a home the free market (in terms of home prices) has overvalued, without some assistance. Rich and poor of the country- you would have us not complain?

Good and bad: Helping a gazelle with a speech impediment deconstruct a Samuel Johnson poem during rutting season while aiding them in taking off their wet clothes when YOU don’t have any arms is easier than arguing with a pro financial industry and free market hawk. You cannot help them as they stretch and flail foolishly about without knowing how ridiculous they sound- and I'm referring to the free market hawk. Ultimately, questions of whether to do something or not do it comes down to whether it is good or bad and whose limited view we are to believe is the most pertinent and good. John Stuart Mill, in Utilitariansm, wrote- “Questions of ultimate ends are not amenable to direct proof. Whatever can be proved to be good, must be so by being shown to be a means to something admitted to be good without proof.” Mill also quotes from Immanuel Kant’s Ethics and then criticizes it- “So act, that the rule on which thou actest would admit of being adopted as a law by all rational beings.” If everyone- EVERYONE were the owner of a store and drove up the cost of a good or service, no one would be able to purcase anything. Maybe I’ll get around to reading Kant’s Ethics one of these days, but Mill writes of that universal law- “All [Kant] shows is that the consequences of their universal adoption [of any rule] would be such as no one would choose to incur.” I’ll take Mill’s word for it. In a world like ours, dominated by binary opposites, (up and down, heaven and hell, past and present, you show me what is wrong, and I will figure out what is right all by myself).

From a Barnes and Noble review: “On April 9, 1944, George Orwell, wrote a review of [Friedrich] Hayek’s ‘Road to Serfdom’ along with ‘The Mirror of the Past’ by K. Zilliacus. It was published in the London ‘Observer,’ and was called ‘Grounds for Dismay.’ Orwell believed that both men had written excellent arguments for opposite if not diametrically opposed political and economic theories . . . Orwell stated, ‘Taken Together, these two books give grounds for dismay. The first of them is an eloquent defence of laissez-faire capitalism [Hayek’s], the other is an even more vehement denunciation of it. They cover to some extent the same ground, they frequently quote the same authorities, and they even start out with the same premise, since each of them assumes that Western Civilization depends on the sanctity of the individual. Yet each writer is convinced that the other’s policy leads directly to slavery, and the alarming thing is that they may both be right. . . . Between them these two books sum up our present predicament. Capitalism leads to dole queues, the scramble for markets, and war. Collectivism leads to concentration camps, leader worship, and war. There is no way out of this unless a planned economy can somehow be combined with the freedom of the intellect, which can only happen if the concept of right and wrong is restored to politics.” And what we may actually have in the United States is an unfortunate combination of both approaches which disgusts the poor about the excesses of the idle class, (the rich), and which annoys the rich concerning the degradation of the poor, some of whom are abusing the welfare system, and among whom there are even more who are idle. What we have not tried is an alternative directed by the more reasonable, and more numerous, members of the middle class who are equally disgruntled with them both and the government which protects and provides for them.



CONSTITUTION

Taxonomy: In April of 2009, after having received an email from Common Cause concerning the inherent problems with campaign finance contributions, I wrote an email to congressman John Kline (R- MN). His response and my critique, and then the email I sent in reply follow:

Kline wrote that he opposed: “creating a system that requires campaigns to be fully funded by taxpayer money.”
My comment: I was not aware that the bill required that all money, for the financing of political campaigns, be provided by taxpayers. Knowing that now, I must concede that I would rather try a couple of election cycles this way in order to avoid what little return the average voter receives after an election in which 90% of the funding of candidates is done by people with little concern for the common good, with little regard for the nation’s current predicament, or for the nation’s prospects.

Kline wrote: “In our free democratic process, the right of citizens to contribute to political campaigns based on their individual candidate preference is protected by the Bill of Rights.”
My comment: We have an oligarchy running this country that only in its infancy came anywhere close to being free, either monetarily, or from an individual rights standpoint.

Kline wrote: “Financially supporting a campaign is an expression of the fundamental freedoms of speech and association . . [he has] long supported greater transparency and disclosure in government.”
My comment: It is not an expression of the freedom of speech to be allowed to contribute mass quantities of cash to the shark-like Space Invader of our choice (see part 48). We are allowed to say, and write, almost anything, as long as we are willing to be considered a xenophobe, a socialist, a traitor, a windbag, or a reactionary. Kline is a conservative and will only stand on the side of pro transparency and accountability, until it appears as if the thread holding his political career together is tugged on by his constituency. I would rather suffer from Pica and consume pen caps, plastic foliage and the covers of the Encyclopedia Britannica than buy into the idea that a mass of politicians are into more transparency and disclosure, unless they are referring to how much they enjoyed the Lost season finale.

My emailed response to representative Kline: I appreciate your response to my email expressing my concerns about HR 1826. You [Kline] wrote- "I oppose creating a system that requires campaigns to be fully funded by taxpayer money. In our free democratic process, the right of citizens to contribute to political campaigns based on their individual candidate preference is protected by the Bill of Rights."

Unfortunately, that is exactly the problem. The Constitution is an ambiguously worded document in dire need of updating. It is, in many cases, the biggest problem with this country and is revered by people who overly respect its contents. However, the biggest problem with the document is not its contents, but what Madison, and others, failed to enumerate. I am certain that Madison and the framers of the Constitution did not mean to grant freedom of speech rights to campaign donors interested in buying any candidate for political office the position they seek.

This approach truly circumvents the citizen's collective right to determine the better candidate for each position, if such a one exists, irrespective of how many repetitive, misleading, blatantly false, depressing and ineffectual advertisements are unleashed upon a populace that sees its rights, those that ardent Constitutionalists claim to protect, largely abolished by the almighty worship of campaign donations which surely make the candidates more beholden to the contributors than to the people they have a greater obligation to serve. This, the people's right to hold politicians accountable, supersedes any right that Madison never, even unintentionally, granted in the bill of rights, a portion of the document he did not want included. (Note: I got that part wrong- Madison proposed the inclusion of the bill of rights; it was Hamilton who did not want them included, giving a reasonable explanation why, which I addressed in part 44).

Surely you would think I am unAmerican in writing, in the manner above, about such a hallowed American document. There is a place for the Constitution which aids so many in dictating their path in the legal halls, the city streets and the fields of the nation. If they all knew better, they would come to find how great a disservice continuing to leave it unaltered is to our common goal of political accountability, freedom from oligarchy, and freedom proper- the last of which is why the Constitution was written in the first place, and not to protect a billionaire’s right to make sure his interests are protected which puts other's more natural rights in jeopardy. [end of response]

A tulip’s persistence and the Constitution: Last fall I made a diligent effort to rid our flower garden of the tulips that were buried a foot underground about six years ago. Tulips are perhaps the surest sign of spring, come in the most vibrant colors imaginable and are as resilient as a reformed double-dipper who falls off the wagon, and reclines into justifying the double dip, each time celery is served with blue cheese dressing. Have you ever tried to eat an entire regulation-sized celery stick with just one spot of dip? The rabbits that rule our yard in the early evenings consume a tulip’s ransom of hearty leaves and make them look like they lost some kind of flower fire-fight with the Irises. This spring, despite my best efforts, I discovered that I did not unearth all of the bulbs that were to be had and had to dig up a number of them that had escaped my shovel last fall. Mindful of the shark and its ability of creating a life without having been inseminated, I vaguely remember my wife telling me that tulips have the capacity to shoot a fledgling bulb out some distance from a host bulb as a way of procreating. I will be surprised if the tulip bulbs, whose leaves serve the same purpose as a flag showing the enemy where their adversary is stationed, are the last I dig up in that location. The argument of how unconstitutional is one thing or another seems at least as frustrating to deal with as tulip bulbs. If allowing three-hundred million people the right to contribute massive amounts of money to the candidate of their choice, a mouthpiece for an agenda and a set of ideals that maybe only satan should be proud of, is protected under the bill of rights, perhaps in some enlightenment-era invisible ink at that, then protecting American jobs from being moved overseas should also be, or have we learned that only those who are the rightful interpreters of the Constitution get to separate the just from the damned? The overly sentimental Frodo was not even so favored as the rightful heir to the ring.

Space invaders: Last column I wrote about how the democratic and republican candidates were indistinguishable from each other. I did not mean to say that a good number of democrats and republicans feel the same way about the issues, because we find their differences in their votes and their public comments about the ways and means of their rivals. My point is that they are not all that different in terms of their ability to assist the middle class in its economic fight. The media on both sides think they are Moses on the top of Mt. Sinai disseminating the rules of god to an eager, but misguided set of people psychologically desperate enough to be led. I have watched CNN enough to know that they are liberal and watched Fox News enough to know that they are conservative- plenty of difference there. The reporters on each station, as well as many others, do a disservice to the average taxpayer by not being objective when delivering election results or reporting on issues in the news. Campbell Brown, on CNN, said after accusations of bias in the network’s coverage of the presidential campaign surfaced- “When Candidate A says it’s raining and Candidate B says it sunny, a journalist should be able to look outside.” But in what must be an obvious conscious shielding of Americans from the objective truth, the journalist should not be allowed to draw the shade down if their beloved candidate is lying. (Source of the quote- Time magazine, November 10, 2008, pg. ??, some magazines go 20 pages without page numbers.) Determining how big a role, and how much of a problem the media is in being biased for one side or the other is slightly easier than milking a male walleye for eggs or detecting a weak urine stream over the phone. Isn’t it unconstitutional to mislead the public with a determined lack of reliable oversight? Mrs. Brown, you can’t maintain your objectivity if a caterpillar wrapped in its cocoon about to suffer from hypertrichosis as a butterfly, can recognize your complete lack of journalistic integrity. (Note: Hypertrichosis is better known as Werewolf Disease- middle aged men who have an unflattering number of hairs growing from their ears or scapula are not legitimate sufferers of this disease- just a hunch, confirmed by the lack of shock expressed by the doctor at my last physical examination.)

Hosed: In part 44 I wrote about an inflatable rat’s free speech rights, but how about a vacuum’s? A “29-year-old man pled no contest to indecent exposure after car wash incident.” It seems that the man was “caught performing a sex act with a car wash vacuum [and was] sentenced to 90 days in prison.” I could use words such as "sucked," "violated" and "hosed" to refer to the various players of my long running middle class drama (taxpayer, government, politician, free market devotee, financial industry maven). I'll stop there for now, figuring that you can see to which player I would most applicably assign the various past tense verbs. At any rate- see “Man Caught in Vacuum Sex Act Gets 90 Days” Associated Press, March 26, 2009. Just having a little fun and reintroducing the re-unretirement of the Brett Favre-like topic of taxation- in that, it just never really goes away.


TAXES

Land of 10,000 taxes: Minnesota, the state I reside in, has had a strange relationship with taxes for the last 6 years in particular. Current governor Tim Pawlenty made a promise while campaigning or upon assuming office (I forget which) over six years ago that he would not raise taxes, or has made a pledge of “no new taxes” (I forget which). Considering how consistent Pawlenty has been over his 6+ years in office, you would think a guy like me that trots out pig odor studies and quotes poems that are over 250 years old would be able to retain those pieces of information. Minnesotans have had a hard time of it lately, and I’ve only managed to assign a palpable feeling of anxiety about the governor’s promises where residents of Minnesota are concerned- we’re wondering why he isn’t raising taxes. We have not fully appreciated his integrity, because we are concerned about what not raising taxes . . . on ANYTHING might do to the state’s health care system, schools, (the cost of college tuition among them), public services, transportation department, etc. Nobody really delivers on their promises anyway right? But, besides having raised some fees, a subtle semantic difference, he has not raised taxes, and perhaps to the detriment of the state’s budget now and in the future. When six republicans assisted in overriding a Pawlenty veto of a gas tax increase in the fall of 2008, it actually made sense. My justification for agreeing with those in favor of the gas tax- we use the roads, I own a vehicle, it has been proven that roads in disrepair cause damage to vehicles, slow commute times, and affect a vehicle’s performance, can cause accidents, and in my mind, can signal the urban, suburban and rural plight that causes a subconscious lack of respect in the minds of a community’s inhabitants, which perpetuates the plight. All good reasons to side with the six republicans who were instrumental in getting the gas tax increase past a Pawlenty veto. Humor me- those with short attention spans can go back to thinking about the exciting prospect of Brett Favre’s possible re-unretirement. Consider- a man inclined toward depression, can see the disrepair of a series of roads he travels each day, consider that the government does not care about his city and blame the government for not repairing those roads, all while he (the depressed man) was against tax increases that would have gone to fund the repairs those roads need. Hardly a fair knock against the government- especially considering all the legitimately blameworthy government actions and inactions there are to complain about.

Fast forward: The democrats in the Minnesota chambers of government passed a tax increase bill that Pawlenty vows to line-item veto, and this time does not have the numbers to veto proof the provisions Pawlenty is most against, those that raise taxes. Thing is, again I side with the democrats, the party most responsible for insisting on raising taxes. Unfortunately, for those that are still celebrating Kris Allen’s upset of screaming Adam Lambert on American Idol, it is a bit more complicated than that. I’ll wake you up when I’m finished. The tax increase would have raised $1 billion in revenue (for a reported $4.6 billion shortfall), which the state of Minnesota clearly needs if just for school and health care reasons alone. Two of the sources for the increase would have come from a tax on alcohol sales and a surcharge on credit card companies (I’m with you so far). The third source- an increase in taxes on income of those couples who earn more than $250k- you MAY have just lost me, because of that whole government waste notion I have- again, see part 9. This proposed income tax would have hit non-small business owners who bring in over $250,000 a year- the ideal segment of the population for a tax increase, as they would not have to lay people off in order to afford that tax increase.**** What would the revenue derived from those areas being taxed be used for?- hospitals, schools and nursing homes- pretty important things. Still, while valuing Pawlenty’s pledge of no new taxes, (perhaps he just hopes the democrats will read between the lines and simply supply him with a bill which will just raise existing taxes) you cannot admire the policy of a man who obviously is protecting the lobbies of some very powerful groups- such as credit card companies and rich people who probably gave him a lot of money for his campaigns- (have I referred to the problem of campaign finance reform- parts 19-21 enough?), while basically guaranteeing that hundreds (or thousands?) of teachers will no longer have jobs, or that roads in January after seven inches of snow has fallen over night will remain unplowed until 10 am the next morning. It seems that enough Minnesotans thank Pawlenty for his level of stubbornness while questioning his ability to see how continually not raising taxes of any kind will hurt Minnesota in the future, when it will be another governor’s obligation to raise taxes, which the future governor will be derided for, no matter how much he blames that necessity on Pawlenty.

Everyone is a critic: And most people have an idea on what to do and not do where proposed tax increases are concerned. Again, if it is confirmed that the government is wasting no money already being sent their way, only then would I propose any of the tax increase measures that have been proposed, even those that have not been written down or spoken of out loud. Some proposed tax increase ideas which are better than raising income taxes, anyone's income taxes: pop, high-priced clothes, (because they are luxury items) four year olds for calling people names that include the deroguatory term- “poophead” or for asking too many questions in one day about the original Star Wars trilogy, those who plan to use Ovocontrol for use in controlling the St. Paul pigeon population;***** infrequently used sewing machines or spatulas, jewelry; the purchase of hard cover books (this could be called the patience tax because soft covers come out in due time); anyone asking for a federal bailout- including the porn industry and the record industry;****** a syn tax, not to be confused with the sin tax- mostly this version of the syntax would be paid by 900 year old, diminutive and green Jedi Knights named Yoda who use words out of order when they speak. Since Yoda is dead . . . and fictional, we’ll get about as much money out of this newly proposed tax, certainly to be vetoed by Tim Pawlenty, as your average capital gains tax, especially now that the economic stimulus bill has been made law. Combining the syn-tax and the vacuum cleaner story could yield a comment like this from the spirit world Yoda- "Hosed the taxpayer is."

________________________________________
* This means regulating what ought to be unlawful activities- which activities would those be? Let us start a list so that we do not need to rely on the “I’ll know it when I see it” approach which was mocked by Will in his article.

** Consider a manager that just a year previous won the world series because a call was correctly overturned by replay that the umpires had called incorrectly initially. This manager has a terrible record through the first third of the next but cannot be fired because he just guided that franchise to the title. His job is safe for a time, and his recent past achievement proves he is qualified to be given more of an opportunity to turn things around. He loses that series, with no help from the call the umpires got wrong and he is looking for work- with the reason why he lost the series, the blown call, nothing more than an asterisk, when it could have been the only reason why the series was lost.

*** I read a Readers Write letter in the Star Tribune’s Opinion Exchange section (March 13, 2009, pg. A12) a couple months ago. A woman, who had lost her marketing job, [December 2008] and her husband are trying to afford their mortgage and tuition payments for their two children. The couple’s mortgage is with a bank included in the federal bailout. She writes: “I have had countless conversations with bank officials, but have been told that since we are still ‘current’ on our mortgage we do not qualify for any assistance. I was also advised that until we become at least three months delinquent we will not qualify for our laon to be reviewed, and even then they would not guarantee that they would be able to help us. Through my job searches, I know that employers now make a habit of checking a prospective employee’s credit rating; not paying our mortgage will thus affect my ability to become employed.” Hm, can we help this woman out by reviewing her situation, by imposing penalties on the bank, or ask why employers would be allowed to check a prospective employer’s credit history unless they are going to empty the ATM machines?

**** Also in the Star Tribune article “Tax Veto Sets Stage for Week of Haggling” Mike Kaszuba, May 10, 2009, A1 & A14, is this information- an Anoka representative “who was one of six Republicans who voted to override Pawlenty on the transportation proposal last year, said he would not do so on the current proposal, but left the door open on other possibilities. Before Friday’s House vote, Abeler said he was uncertain enough that he took the political pulse of a few key Anoka residents to gauge support for the DFL bill.” Who said- “We will not be contributing to your reelection campaign if you vote yes on raising our taxes!” That is probably the reality, but what Abeler admitted: “I found [no support] on a fourth tier,’ Abeler said, referring to higher taxes on the wealthy.” If you are not rich and live in Anoka, how are you going to vote for this guy next election?

Anyone not see the interconnectedness of all the topics I’ve been writing about since the spring of 2007? Taxation, education, health care, campaign finance, inadequate representation, voting proclivities. A topic like taxation, and one like immigration can be immediately and inherently connected to campaign finance, but can also quite easily be connected with many others. This is like the interconnectedness of all the characters on Lost; and when referring to the future prospects of the middle class- I wouldn’t even have to change the name of the show.

***** “The city [St. Paul] is working up a plan that will involve feeding local flocks OvoControl, a feed laced with birth control that prevents pigeon eggs from being fertilized.” See- “If Pigeon Poop Caused Part of a St. Paul Parking Ramp to Fall, Population-Control Plan Could Benefit” http://www.twincities.com/stpaul/ci_12356314. It seems a chunk of a parking ramp façade fell off and landed on the street.

****** From a February 4, 2009 article “NAB URGES CONGRESS TO OPPOSE RECORD LABEL BAILOUT”: “NAB President and CEO David Rehr urged lawmakers to oppose legislation introduced today that would force America's hometown radio stations to pay a new "performance fee" to the recording industry for music aired free on the radio. The legislation, introduced in the House, is supported by the Recording Industry Association of America (RIAA). A measure opposing today's Congressional action is expected to be introduced shortly.” Seems to me that the record labels, since playing music on the radio began, have benefited from having radio stations play their music and now they want to charge stations for the honor of playing their music. I bought a Wang Chung tape in 1984 because Dance Hall Days was such a compelling song and record labels have made billions since radio stations began playing music on the air. This appears to be just another free market ploy, like ticket scalping that we should all respect or be considered moral entrepreneurs by George Will. And here I thought scalping had a negative connotation.

Friday, May 15, 2009

Middle Class Part 48: Time Travel, Parthenogenesis in Sharks, the Swine Flu . . . and Taxation Chapter 2

INTRODUCTORY AND METAPHORICAL COMPONENTS OF THE SUBTOPIC


Time traveling: Fairly recently, a co-worker gave me a year’s worth of Time magazines that he had subscribed to. The most peculiar thing about them, other than the fact that Obama appeared on the cover about once a month, is how amusing life can be in retrospect. I imagine myself time-traveling and mocking some of the text I am reading. I could list many examples which made me ponder, a few of which would take us well off topic. I’ll restrict myself to those that don’t . . . pretty much. I am only about halfway through the stack, so I may be quoting from quite a number of them, even if it looks to the reader like the relavence to the subtopic of taxation is slight.

Taxation and parthenogenesis* (the parthenogenesis part): A number of instances from my acquired stable of issues of Time magazine stand out which are germane to the topic at hand and will provide me with a base of material for this installment. One is found within a weekly feature page called “Verbatim” which quotes newsmakers, whether political, athletic, scientific, societal, currently popular or notorious, etc. The quote from the October 27, 2008 briefing page- “It just goes to show how the ocean keeps its secrets very well.” The explanatory text beneath the quote reads: “Demian Chapman, scientist with New York’s Institute for Ocean Conservation Science, after a virgin shark gave birth—the second known instance of parthenogenesis in sharks.” The first known instance of shark’s reproducing sans sexual intercourse is untraceable, but is suspected to have deep ties to nepotism, politics or religion. We all know of the virgin birth of the son of god, who was put to death as a sacrifice for the sins of man, later, the idea of holding men accountable for their sinful earthly actions by nationalizing the idea of a toilsome afterlife occurred to god. If this was the guaranteed outcome for the evil, this would vindictively reassure me that the conscience-driven life was superior. “Shark” is the codeword for a deviously-trained, fortune-seeking, manipulative, rule-making, selfishly-desperate human being and the application of the word is not restricted to card players or jagged-fanged uber-predators, but extends to politicians. These political sharks give birth to dozens and dozens of tax schemes every legislative session and the unsuspecting populace often has no idea where they come from. Whoever first thought up, virginally, the idea of taxation, a thought pregnant with so much usurious possibility that it makes the kukkabura, a meat eating bird, that willingly transmits streptococcus, seem likeable by comparison, was the primal shark- the first which gave birth to the many sharks which have followed, many of whom live in Washington, some of whom are sons, perhaps born immaculately to fiendish rogue politicians who are too evil to have had sex with women.

Taxation and parthenogenesis (the taxation part): Some taxes are necessary and I pay them without question. It is the tax incidence, and not the instance, that I object to. Some taxes are ridiculous in their nature or simply go to fund the government’s irresponsibility. I look forward to paying the latter about as much as I anticipate conversing with a free-market capitalist whose favorite Disney character, if I had to wager a guess, would be Monstro (the whale from Pinocchio). A notable observation relative to the largest mammal on the planet is that it eats a lot. "A baby blue whale drinks over 50 gallons of its mother's milk in a day. In its first several weeks of life, it gains 10 pounds an hour or a little over 200 pounds in a day!" (See- http://school.discoveryeducation.com/schooladventures/planetocean/bluewhale.html) That monstrosity of progress rivals the trade deficit. Its appetite, like some liberal's appetite for handouts, is insatiable. The blue whale traps thousands of krill in a net of bubbles- "During its high feeding season, a blue whale consumes more than 4-6 tons of krill in one day" often trapping them in a net of bubbles meant to disorient the krill into submission. Remind you of the typical taxpayer's reaction to the net of subservience in these oligarchical United States? Thought so. A whale has a couple of obvious things in common (girth and dwelling area- in the ocean) with a shark. I don’t envy Aquaman, the social obligation of feeling like he has to talk to bastards like whales and sharks,** the latter given their ability to give birth immaculately and swallow things whole, would truly be a labor of love. And he is really the only one qualified to do so; Aquaman is like the messiah of fish. We, the taxpayer, are like little fish flitting our way through the ocean of life, hoping not to get consumed by some greedy bigger fish, sometimes one within our own company. That bigger fish may see the benefit in a different business model, one which allows the migratory practice of big fish seeking cheaper laborers overseas.*** Not even a feral cat is so unloyal. Paying more money in taxes when there is a national crisis, a Time magazine graph indicates, is something voters are willing to do “if the money goes to fund the right solution.” (See- “The Case for Bigger Government” Jeffrey D. Sachs, January 19, 2009, pgs. 34-36.) I did not see a graph in any of the magazines when I was time traveling concerning how little taxes citizens would like to pay when it is assured that billions of dollars in tax money are wasted by a government with less oversight than a bouncer-less backwoods, topless café that only employs three-breasted women on mullet night.

A recession on immigration: The third interesting time-traveling nugget comes from the June 18, 2007 issue of Time which dismissed the suspected harmful effects of amnesty. There are several bold headings which introduce justifications why amnesty would not be harmful to the United States. The fifth heading addresses the 1986 amnesty and mentions that “Studies show that the valleys and peaks in migration have depended far less on changes in policy or policing and far more on the basic economic conditions in the U.S. and Mexico. If you want to truly tamp down illegal immigration, you could induce a recession in the U.S. A better idea might be to help Mexico create more jobs that pay better. A recent Council on Foreign Relations study found that when Mexican wages drop 10% relative to U.S. wages, attempts to cross the border illegally rise 6%.”**** The fact that our country would go to such great lengths to stem the tide of illegal immigration is encouraging, (I’m referring to the U.S. having induced a recession, the only thing more insidious is the induction of a shark conceived immaculately), better than a wall or fence, more border patrol agents, stiffer penalties, helicopters, etc., and what a truly masterful plan that is. Instead of a state-of-the-art-fence that would have cost an estimated $4-8 billion dollars,***** the federal government decided to allow banks and other financial institutions to go almost completely unregulated in their business practices and put the taxpayer, (whether current or unborn) at an extreme disadvantage- as they have decided rather to bail out the financial industry to the tune of $750 billion or more . . . That hell isn’t over yet.

Taxation and wages I: What is with the shark metaphor, writing about wages****** as if they were completely partnered with taxes, immigration (see parts 22-27) and the recession (which I’ve written about in half of my posts since immigration) all in one big mess of text? I might ask that myself, and I am the author of this blog saga. I am merely suggesting how interconnected everything is. We are the taxpayers, subject to the whims of political sharks and the volatile nature of 21st century financial markets, held hostage by the representatives we elect and hemorrhaging our jobs to foreign workers whether they come legitimately, via a work-visa, or are not detained at our border. We are, in fact, taxed on our earnings (our wages), so it seems to me a logical step to address taxes along with wages, much more logical than a number of corporations, some reporting 32.1% operating profit margins, that still compulsively want, apparently, to earn all of the money in the world. Their appetite for money reminds me of a whale's appetite for krill. Also, how directly taxes are tied to wages should come as no surprise to those who have brought home a paycheck or who were the least interested in the economic recovery/stimulus bill’s operational effects on the average taxpayer- “Millions of Americans enjoying their small windfall from President Barack Obama's "Making Work Pay" tax credit are in for an unpleasant surprise next spring [2010]. The government is going to want some of that money back. The tax credit is supposed to provide up to $400 to individuals and $800 to married couples as part of the massive economic recovery package enacted in February [2009] . . . new tax withholding tables issued by the IRS could cause millions of taxpayers to get hundreds of dollars more than they are entitled to under the credit, money that will have to be repaid at tax time.” (See- http://finance.yahoo.com/news/INSIDE-WASHINGTON-Rude-apf-15091434.html?.v=1, “INSIDE WASHINGTON: Taxpayers to Get Rude Surprise” Stephen Olemacher, Associated Press Writer, April 30, 2009.) If you can’t see how American wages are determined by the taxes imposed by the government, the government’s inability to protect its workers from loan sharks, and the political sharks we elect to keep our jobs safe from invaders, perhaps some time traveling is in order. Instead of looking at the past, you are going to want to see what it will do to us.

Taxes and wages II: It should be said that immigration directly reduces our taxes, which we should be thankful for, excepting that it reduces our wages by doing so; taxes are proportional with earnings; non-salaried employees don’t have to remember this if they can still read their paycheck. If we earn less, the government removes less in payroll taxes. Middle class payroll taxes are surely held in check by the earning of less money, which without question can be tied both to immigration and to the outsourcing of jobs overseas. Anyone who cannot see this probably thinks a singing competition between chickens that must remove butter from their talons with cold water while doing so is a good idea.

Wages- we don’t need no stinkin’ wages (apparently): A 2007 Pew Research study concerning the perception of economic haves and have-nots as compared with a 1988 study reported these reasons as important determining factors for people classifying themselves as haves or have nots: race, political orientation, sex, age, education level and region of residence in the United States. What do I feel is the most important determining factor- what should cause you to classify yourself as a have or have-not? The reality of either actually having or not having. A young piglet could not consider itself a leopard simply because it has spots. It is its destiny to be consumed or spend its life in some South Dakotan petting zoo, for having-not. The study reveals that- “The increased prevalence of both views -- that the country is increasingly divided along economic lines and that a given individual is on the wrong side of that divide -- finds support in national economic data. As numerous studies have demonstrated in recent years, income gains over the last few decades have been heavily concentrated at the very top of the income distribution. For example, in an update of their earlier study of long-term U.S. income trends, economists Piketty and Saez compute that the share of income going to families in the top 1% of the income scale has doubled from 8% in 1980 to 16% in 2004 even excluding capital gains. (For a review of other recent studies see an earlier Pew commentary, ‘Pinched Pocketbooks: Do Average Americans Spot Something That Most Economists Miss?’)”


‘Meanwhile, Congressional Budget Office data show that despite the increase in the number of families with two or more earners and widespread income gains in the latter half of the 1990s, families in the middle fifth of the income distribution realized only a modest $6,600 increase in annual income between 1988 and 2004, while the top 1% of families saw their incomes rise from $839,100 to an average [of] $1,259,700. Recently released Census Bureau data show that in 2006, median household income adjusted for inflation was still 2.1% below its 1999 level.******* More sensationally, Bloomberg.com recently reported on a study showing that ‘top private-equity and hedge fund managers made more in 10 minutes than average-paid U.S. workers earned all of last year.’ ” (See- http://pewresearch.org/pubs/593/haves-have-nots “A Nation of Haves and Have-Nots? Far More Americans See Their Nation as Divided Along Economic Lines” Jodie Allen, September 13, 2007.) And as certain employees work for corporations with operating profit margins of “a whopping 32.1 percent”******** and can still receive only a 1.5% raise, fear that their job is to be moved overseas within the next year, and be told that the business unit they are inspired to work for is making a “boatload” of money (according to the business unit’s director). I haven’t decided whether the way managers talk to the employees about a corporation’s financial well-being should be the complete snow job mentality or the keepin’ it real approach; what I do know is that the employees won’t care as long as they are better compensated for their tolerance of your lies or your down-home jocularity. Ask a rabbit if it prefers blood meal on its hosta-leaf salad, or prefers to be threatened with removal from its occupation while not being paid in insects. Very little difference. You may have a hunch that there is a third approach- the truth, and a fourth, getting laws passed which inhibit a corporation's chances of selling American workers down the river. Such a law, say the conservatives, is unconstitutional. I wonder how many republicans would say so if their prospects were tied to one employer, and it was their job on the line. I look forward to a discussion with a republican who semi-consciously suffers from a collective prolapsed conservatism without their knowledge about as much as another computer reconfiguration which butchers all of my internet settings, removes non-corporate supported work-functional applications and destroys all of the productively assimilated functionality I've worked 3 years to install. Note- I recently had my computer reconfigured- there isn't a word in the English language I could use to express my frustration with either the prolapsees or the reconfiguration.

Mr. Independent: Lou Dobbs, in “Independents Day” writes, “I believe that a number of factors explain the stagnation of working wages and a rising sense of anxiety and frustration in our middle class. Corporate America is undeterred in its determination to outsource middle-class jobs and to import cheap foreign labor, while our government is representing neither the interest of our people nor that of our nation. The divide between the wealthy and privileged and the middle class and those who aspire to it is widening. A 2007 Pew[*********] Research study found not only that the American family’s income has failed to keep up with productivity growth since 2000, but that working men in their thirties today earn less than men in their thirties did in 1974. As recently as a decade ago, young working men were earning more than their fathers.” (pg. 170) Dobbs also writes, “In 1980 a meat-packing job paid nineteen dollars an hour, but today that same job pays closer to nine dollars an hour, according to the Labor Department. That’s entirely consistent with what we’ve reported on the show: Illegal aliens depress wages for U.S. workers by as much as $200 billion a year, in addition to placing a tremendous burden on hospitals, schools, and other social services.” (pg. 156 of “Independents Day”)

Transposed subject matter: Surely these next two quotations apply more to immigration than taxes, but then why would I include them here? Dobbs quotes California congressman Ed Royce- “It [allowing immigrants with few skills into the country] is going to push down wages, it’s going to import an awful lot of poverty into this country, and these individuals on average pay one dollar in taxes for every three dollars in public benefits they receive. Figure out what it means for Social Security in the future as a consequence of this act.” (pg. 156 of “Independents Day”) And when a fair-minded citizen, the mayor of an east coast town, objects to the path this country is taking, a hard line is drawn by judges who are legislating from the bench by using the tired- “it is unconstitutional” refrain to allow just about anything more sensible people would find revolting- “No case attracted more national attention than that of Hazleton, Pennsylvania. In the summer of 2007 a federal court ruled that Hazleton’s Illegal Immigration Relief Act, which aimed to hold landlords and employers responsible if they did business with illegal aliens, is unconstitutional. More than 120 communities across the country have passed similar legislation and local laws.” (ID pg. 160, 161) The judge’s words justifying his ruling indicate that he may have contracted the dumb-ass flu. However, I won’t even include them here; I’ve decided that I can’t quote everything Dobbs writes. As I write this, I am wearing a swine flu mask so that I don’t catch the dumb ass flu. Despite the fact that the case is almost two years old- yeah you never know what can happen when you’re still time traveling, contact with a shortsighted liberal who may still be a carrier for any of a variety of animal-appellated illnesses. If a scientist doing stem cell research had found the genetic code for scientifically reproducing Care Bears in a petrie dish, liberals would demand that it was unconstitutional to destroy those cells. They would want the Care Bears to have voting rights, encourage the introduced species to use names like Unconstituional Bear and Dumb-Ass Bear and guarantee them citizenship if they wait out the whole dubiously predictable amnesty bill that will get passed during the Obama administration. I’ll have more on the constitution below time; shocking isn’t it? I have to get back to my time-traveling theme.

Big government: From a January 19, 2009, Time article “The Case for Bigger Government by Jeffrey D. Sachs, come these sentences- “We’ve kept our taxes as a share of national income lower than Europe’s by focusing on the private sector [allowing the unregulated free market exchange of money to dominate the economy]. After citing the Obama administration’s inherited litany of problems- “the worst economic crisis since the Great Depression: the financial sector is in ruins; the budget is hemorrhaging red ink; debt-ridden households have clamped down on spending . . . unemployment is soaring; the country is in two wars; and the unmet social and environmental needs are vast . . .” the next sentence is the panacea for the 44th president- “These conditions demand a fundamental realignment in strategy that ultimately comes back to taxation: Will we pay for the government we need?” (pg. 35) Aren’t we already paying for the government we need? They take taxes from my earnings each paycheck that go to social security (6.2%) and medicare (1.45%) and my employer keeps my wages low because they are on the hook for unemployment taxes, which, by the way are significantly lower than actually paying an employee. I know, that seemed obvious, but I just thought I would make sure you catch my meaning. Oh, and I forgot, they remove money for Fed Withholding and MN Withholding, which money is accumulated for just about anything else, budget shortfalls, money for tanks, protecting us against the swine flu. Through December 20, 2008 the total amount removed from those two areas, from my pay checks was almost $3,300. All together from the four taxed areas I list above, I had over $7,000 removed in 2008.

Big Constitution: I ask myself, when I am not considering how ridiculous a cheetah would look trying to moon walk while being attacked by a swarm of gnats with the dumbass flu and in between bouts of my too self-conscious preoccupation with being introspective, isn’t that enough? Isn’t it too much, for a citizen who has absolutely no control over how his earnings are disseminated? If anyone brings up the notion that I have a say based on who I vote for, I am going to tell them that is an unconstitutional comment. This will instantly put them on the defensive because they will have to read through the Constitution for the rest of their lives searching for the words that would even cryptically hint that this is true; I think this the most used war-of-words tactic in the adult world and rivals the pint-sized version- "I know my dad could beat up your dad." If state and federal judges do it, what is to stop oveeager conservatives and liberals from using it? Distinguishing between republicans who want to tax me and say that banning smoking in public is unconstitutional and democrats who want to tax me and say that outlawing abortions is unconstitutional is a guy like me saying that the Constitution is unconstitutional! (There is much more angst-ridden text contained within the Time article I quote from above; Sachs even equates how much taxes contribute to the GDP, a point not lost on me, and one which I have already brought up as a way the government will have to justify increasing taxes if consumer spending continues to plummet- [see part 45] and if big government "rescues" us by providing the overtaxed with universal health care.)

The plan: I wonder- what is the government’s plan? The government allows illegals into the country which takes low paying jobs from Americans (pre-recession of course), and the government allows the outsourcing of jobs overseas, which takes from Americans an increasing share of middle class jobs; without a job, a worker cannot be taxed, as they earn no money, without money, it is awfully hard to purchase things. That statement excepts property taxes, which a citizen won’t have because he won’t be able to afford a house, because of the no job thing, and excepting sales tax, such as on food, an extra-necessary cost, which he won’t be able to afford because he won’t have a job, there will be significantly fewer taxes to be had as a component of the GDP. So, the only people not overly afflicted with a financial shortcoming are the rich, who are the ones who can afford to finance the campaigns of the politicians empowered with making the decisions that are costing everyone who is not rich so much money, family, identity and is protecting those with money from the reasonable demands of everyone else. Is there some science fiction movie somewhere that has already played out this scenario?

Sachs concludes: “. . . though almost no U.S. politician will say it now, the U.S. will probably have to follow Europe down the path of the value-added tax—a kind of national sales tax. In the past 50 years, arguing for tax increases to fund the expansion of federal programs has been a political death wish.” (pg. 36) Well, not really. Imagine this whole economic situation from an Independent’s perspective. Consider a video game such as Space Invaders. Imagine the plot of Space Invaders was that these underdeveloped aliens were coming for you. These were nameless, faceless bugs descending upon you en masse asking for more money in taxes, or not even more money, but rather asking for the same amount of money despite the fact that your wages never noticeably increased, and they have no intention of apologizing to you for how delinquently they spent the money you gave them last year. The only thing that distinguishes one of the space invaders from every other is that it used to occupy a certain space a certain distance from your laser cannon. You might remove ten to one hundred aliens with a laser cannon, the only defense you have, besides the ability to move laterally, but eventually, unless you are a superior player, (which you only become by feeding the machine with a dollars in quarters), you are overcome by sheer numbers. How is this result distinguishable from the plethora of like-minded politicians who claim to be democrats or republicans and claim the money that you have earned. If one politician/alien is eliminated as a potential candidate to feaux-represent you, others simply take their place, their advance upon you quickens and though the governor of your state might veto a tax bill (see below) the majority of them passed through their chamber of government, they’ll charge an internet access tax or a tax on items purchased on the internet, or a tax for successfully potty training your daughter in a weekend, to offset the diaper lobby’s loss of your patronage. I see virtually no characteristics which would separate an alien in Space Invaders from the average politician. They come for your money and your job, and are backed by those who seldom ever have to fear for the loss of either. (Note, I’ve read a Minnesota tax increase proposal that would increase the tax on items bought on the internet and also read an article about an internet access tax that has been considered in the past, but seems as if it cannot be enacted, for states that have not been grandfathered in, until 2014. See- http://news.cnet.com/8301-10784_3-9807418-7.html.) I am already charged $60 a month for internet access- that’ll do.

Europe and broken America: The author of the above referenced article (Sachs) writes, “As our budget choices were getting tougher in the 1970s, Europe faced similar dilemmas and took a different course. While Americans rejected new taxes and domestic programs, Europeans elected governments that introduced higher taxation, mainly value-added taxes, to cover the rising costs of health care, education, infrastructure, poverty relief and international-development aid.” (pg. 36) First, and this is one of the most important points I have made in this whole blog saga, trim the government waste, hire me and I will show you where it is. Then, and only then, ask the citizens who still have jobs to pay more in taxes. When you cut through all of the political red tape, the favors owed to campaign contributors, the pork in your state and federal legislation, the unregulated free market, the ridiculously ambiguous language in the Constitution, the migration of jobs overseas and the assumption of them within our borders, the overpaying of teachers who are not high performers, the rewarding of CEOs with huge bonuses for tanking companies, the abuse of the welfare system, the awarding of a military contract after collecting only one bid, and the wasting of money on bureaucratic health care, then ask for more money.

Retirement, taxes and government spending: I’m still asking about the government’s plan, and I’m not the only one, see the next paragraph below. In yet another timely-read, for the purposes of this subtopic, Time magazine article- “The Big Bank Bailout: Are You Next?” by Bill Saporito, October 27, 2008, come these words- “If we are forced to increase savings, [to fund retirement and stem the tide of the recession] then spending has to drop, and that has ramifications for the stock market and the economy, because it implies we’ll buy fewer computers and take fewer trips.********** With consumers hard-pressed, it is the government that will have to do the spending. Both presidential candidates have proposed economic stimulus packages on top of the $168 billion stimulus Congress passed in early February [2009]. At some point, of course, the next President will have to either rein in that spending or raise taxes—or risk a historic budget deficit.” This is a role the government must be giddy with anticipation about. The article is primarily about the juxtaposition of people hoping to survive this recession without spending money they hope to save for retirement. These people lost money because of the financial market’s response to the extreme dumb-ass flu that has swept through the government for decades, but more particularly in the last decade where the government has seemed to have been inoculated against it, while being carriers to those who are less immune, like the taxpayer. It helps to be inoculated against it when you can ask the afflicted, (the taxpayer for almost $800 billion to remedy an illness of your own causing. Pro taxation people would probably ridicule people who had an irrational fear of crocodiles; but a fear of crocodiles is rational . . . if you are alive. As above, when I promised to get back to the unconstitutional comments, I will have more to say in this area (government waste).

Tax in Time: In yet another Time magazine article (from November 10, 2008, pg. 59) I read, in Justin Fox’s The Curious Capitalist, some speculation about where the government is most likely going to go to get a hand-out. Fox asks, “So who will pay those taxes?” He mentions that the highest earners- “almost all income gains in recent years have gone to the top 1%. But because the rich can afford good tax lawyers, there are diminishing returns to increasing their tax rates.” Also, “The share of pretax income going to the bottom 40% of households dropped from 20 % in 1980 to 15.9% in 2005, according to the Congressional Budget Office, and that decline has been counteracted only modestly by tax credits. [to the poor]” So, if taxing the rich is out because the government apparently cannot hire lawyers brighter than those the rich can hire, and taxing the poor is out because they don’t have any share of money to begin with, who is left? How about we just tax those in the middle class again? They keep voting for one of two space invaders anyway. That is precisely what Fox concludes, though his spin is that the government would tax those that make between $70-$250k, the broadly defined upper middle class- broadly defined to be sure. Quite an income grouping. Those who make $70k have virtually nothing in common with those that make $250k, I assure you. Also, as I’ve written before, (part 41 to be exact)*********** I recognize the danger of increasing the taxes of those who make between $200k-$300k AND own a small business and those who make that, or more, and don’t, because of the ramifications it can have on the small business employee, the employers chances of growing the business which is the essence of capitalism I would never want to constrain.


DETENTION OF THE DANGEROUS

Detention I: I only served one of these in high school- go figure. The heading of this paragraph concerns how certain zoo animals are detained. Consider, on your next trip to the zoo, the animals that are more sectioned off than the others. This provides a safe viewing environment for innocent children, dutiful parents and self-absorbed teens on their second date. This protection ensures we are safe from dangerous animals, and keeps the animals, some of them anyway, safe from us. The shark is encased in at least 6 inches of fortified glass, the bear is bastioned behind the same transparent wall of glass; the tiger is kept in a forested hold within walls, specialists familiar with the abilities of big cats have verified it cannot scale, the lynx prawls in a bored manner and monkeys swing or hang innocently behind fenced enclosures. All of these bulwarks are in place as safeguards for our enjoyment, for these animals, and thousands like them, would be a danger to us if allowed to roam free, kind of like your average pedophiliac. Oh, wait, we do let those guys out don’t we . . . bad analogy. Maybe we should release pedophiliacs into the enclosure of an eel or a snake or a gorilla and see what happens. But I digress.

Detention II: Likewise, other, more innocent, animals are kept behind fences. My family went to the zoo the other day, and along with seeing that the dolphin was kept within a pool of water, the goat behind a fence and the ostrich in a large open space, able to be seen, but far beyond any human’s reach, I noted how we have these protections in place to guarantee our safety, and if not guarantee, for there is always the chance that the power of nature will supercede the logic of man, or that a curious child will enter the domain of the meerkat and have its ankle bitten, then at least the fortifications are well considered. We have these animal garrisons in place for reasons like safety, or money (it would cost a lot to replace a panda), or money- (it would cost a lot to defend a lawsuit brought about because an elephant left to its own devices stepped on someone’s toe. This detention makes sense; it is reasonable. Even the two beta fish we brought home a few weeks ago, are separated in the aquarium because they are two males, the more beautiful of the beta fish species, and are highly likely to rip each other to shreds through some kind of genetic fish jealousy mandate- “my fins are bigger and more colorful than yours” type of thing. The packaging warns the beta fish shopper about this wild proclivity, arms them with knowledge they might not otherwise have had, kind of like when the government releases a pedophile, excepting this analogy also is not suitable for the government does so without the warning.

Detention III: Money-wise, the two fish, who were reported by the sales girl to be more exciting if purchased in tandem, cost me twice as much as one fish would have. I was set to by one, but the feature of how much of a flourish each male would swim with if paired with another was apparently a selling point with my wife. I relented and bought the two; good thing I got me that 1.5% raise and that Obamessiah tax credit. I didn’t buy two sharks, there are enough of those running the corporations we work for. But all of this animal kingdom stuff, the detention of unsafe sentient beings without the ability to blush in embarrassment because of what they’ve done, or what they’re capable of (i.e. animals), even the sexual predator animals kind of stuff got me thinking about the average taxpayer’s own life, his habitat, his relationship to his community, his predator-prey relationship with his representatives on all levels of government. (Note- the predator = the politician, remember the shark stuff above; do you think I just write everything accidenctally?) We have so many protections in place for animals and for us: zoo fortresses, leashes, warnings not to feed the ducks, deer crossing signs, beware of dog signs, Peta press releases, millions of books which would educate us on how to keep a whoot owl as a pet, but not a lot in the way of keeping us protected against political predators. I’ll get back to that theme eventually- next time- I have a lot of plates to spin.

Pig odor and swine flu: Certainly, my metaphors above are offal,************ I mean awful, and I cannot believe that less than two months after my chastisement of the omnibus bill’s pig odor study, that a hysterical (perhaps legitimately hysterical) fear of a potential pandemic called the swine flu gripped the imagination and the American psyche. If someone coughs a few times within a few minutes in a cube within earshot of mine I think of commenting on their having the swine flu and feel almost guilty of how negatively I portrayed the money that was allotted for an Iowa pig odor study- surely the two things are connected. According to a National Geographic article, “Egypt Killing All Swine” from April 30, 2009- “Even though no cases of swine flu have been found in Egypt—in pigs or Humans—the government has ordered an estimated 300,000-plus pigs slaughtered as a swine flu precaution . . . Unlike bird flu, where the flu strain that spread to humans was widespread in bird populations, the World Health Organization says there is no similar concern about pigs - and no evidence that people have contracted swine flu by eating pork or handling pigs.” So, I apologize for my work in mocking the pig odor study which would have saved the vast number of schools from being closed, from lame jokes at the office the instant someone sneezes, the common use of the phrase- “cover your cough,” the altered focus from a pig’s glycemic index, which is often indicative of their rotundity, and to the entire pork industry that is suffering a heavy financial loss. Too bad, we, as the voting public, can’t slaughter a few hundred thousand legislative maneuvers (pork barrel spending) that would save the taxpayer billions of dollars for lord knows what. Unfortunately, I don’t think that number of slaughtered proposals is going to be enough.

Note: I wrote about the swine flu when it was in full outbreak mode, before it had killed nearly five people. I have a lot of spinning plates- government waste as it equates to taxation, predatory politicians and their captivity, the free-market (still), the whole subtopic of taxation proper, and the unconstitutionality of just about everything from breathing through your mouth, fearing the wrath of diabetes for using drink boxes to potty train your daughter and five minute conversations about double-reed musical instruments.

______________________________________
* Parthenogenesis- a form of reproduction where a female gives birth without the fertilization provided by a male to the embryo.

** There is an approach to the tasking of work in many corporations called Agile, which requires the collaboration of employees in order to get the job done. Work/stories are written out on index cards, along with various development and testing cards associated with that story and all of the associated cards are kept in swim lanes. There are several sharks in this walk of life as well, some are project managers, or their bosses five levels up the food chain which continue to shift jobs overseas, defending such a maneuver by saying the words “free-market.”

*** In this clumsy, and thinly-veiled metaphor, the word ‘underseas’ should probably be used

**** My wage went up 1.5% this year- any chance that information alone would keep just ten illegals from coming to the United States? Some of that information, from June of 2007 is quite humorous. For the complete article see “The Case for Amnesty” by Nathan Thornburgh, June 18, 2007 (pgs. 38-42).

***** See-
http://www.globalsecurity.org/security/systems/mexico-wall.htm for more on all kinds of border fencing costs, the number of apprehended immigrants, and the number that were not apprehended, and proposed and passed bills.

****** In Lou Dobbs’ most recent book- “Independents Day” he devotes another chapter to the overall effects of immigration. In the chapter titled “Crossing the Line” he has an immigration facts insert which addresses the topic of falling U.S. wages for American workers. He writes- “Construction workers made the same hourly rate as they did in 1965 (measured in 1982 dollars) . . . Wages have fallen by nearly 4% for landscaping workers . . . Landscapers are making the same hourly rate as they did in 1972.” The same thing is happening in more fields than just landscaping and construction.


******* This was essentially my jumping off point from which I’ve been able to show how many issues are turned against the viability of members of the present, and even more profoundly, the future economic middle class.

********(See-
http://www.citypages.com/2009-04-29/news/westlaw-rises-to-legal-publishing-fame-by-selling-free-information/.)
********* And I thought the pig odor study being conducted by PEW Research was both fitting and funny. The connection between the reality of the employee wage situation in this country and the name of the research group doing the study produces something that is sad and stinks- (see part 45).

********** Which I most notably mentioned in part 5 (Paying to Live for Free), part 8 (The Price of Necessary Costs) and part 9 (Government Waste).

*********** I never thought I would have the occasion to reference that column. See paragraph 2) Fexofenadyne hydrochloride (Allegra).

************ Offal: waste parts of a butchered animal, most often their entrails and internal organs.

Sunday, April 19, 2009

Middle Class Part 47: The Last Issue- Taxation, Chapter 1, A Brief History, Types of Taxes and More Fun with Hamilton

I'm not sure where this overall topic will take me. For all I know, I could find that the amount we are taxed is appropriate considering the services provided by the government. Here goes nothin'.



SINCE LAST TIME . . .
We have celebrated easter and April fools day, watched Tiger Woods not win the Masters, I have read an Associated Press article about a two-nosed bunny (“2-Nosed Bunny Surprises Pet Shop Owner”, April 1, 2009), and the deadline to file our income tax returns has passed (appropriate sub-topic below); we have witnessed the crowning of a truly dominant NCAA college basketball team (Go Heels!), the rescue of an American captain from Somali pirates, the opening of the Hannah Montana movie that premiered at #1 for the weekend, and the bowing of a U.S. president to some Saudi king named Abdullah who probably has drawn a parallel between our fear that we are seeing the end of peak oil and a dish called no-peak chicken. Aren’t all Saudi kings named Abdullah? Sorry king- if our own president acts that penitent during easter week, there are far too many of us anxious to be irreverent willing to pick up the slack.

Name is not the same: A romp of otters, a school of fish, a herd of cattle, a stable of horses, a shoal of herring or tuna, a tower of giraffes, a pod of orcas or dolphins, a group of geese is called a flock, in flight they are called a skein, flying in formation they are called a wedge. There are many different names for a collection of one set of animals in nature. How this came to be so would involve me wasting weeks of research and the results may prove more entertaining and less obvious than the final sub-topic I have yet to cover- taxation. On a related topic, to the naming of animal groups above, is that, unfortunately, there have been many more varieties of taxation- from the necessary to the ridiculous, to the even more ridiculous.



TAXATION - A VERY BRIEF HISTORY

Egyptians: During one time period, tax collectors, known as scribes, imposed a tax on cooking oil. “To insure that citizens were not avoiding the cooking oil tax scribes would audit households to insure that appropriate amounts of cooking oil were consumed and that citizens were not using leavings generated by other cooking processes as a substitute for the taxed oil.” Since then, no scribe has made sure that a household's average Pam consumption is at or above acceptable levels or has decided that the cans which dispense this oil in a bottle are something that would promote the ozone's obesogenic nature (or is it nurture?).

America, present day: A 15% obesity tax on sweetened sodas was proposed by New York governor David Paterson to aid in a $15 billion budged deficit. (according to the New York Times- December 15, 2008 via a Lexicon short in Time December 29, 2008-January 5, 2009. How I could go for a New York governor prostitution scandal about now; where is Eliot Spitzer when you need him? Why this tax iis a bad idea- we have the right to drown ourselves in any variety of excess we see fit, so long as it does not impact others. People not aware of the difference (you conservatives who are ok with smoking in public should read more John Stuart Mill) To those who claim that the collective American obesity problem impacts other’s health insurance premiums I say, when we can enact improved, and meaningful, fossil fuel emissions standards and the conservatives can acknowledge the threat of climate change, we’ll start talking about increased health insurance premiums for the fatties. (Note- Hopefully that is plural for fatty.)

Greece: “In times of war the Athenians imposed a tax referred to as eisphora . . . When additional resources were gained by the war effort the resources were used to refund the tax.” What a novel idea. In Minnesota, rumors run rampant that we are still paying for the Metrodome and a convention center that have long since been built and have surely benefited someone, to the extent that living in Minnesota can really benefit anyone.

America, present day: “Council rejects idea of plastic bag tax” Dave Orrick, St. Paul Pioneer Press, December 4, 2008. Why this tax idea is a good one- our over-reliance on compartmentalizing everything by using a plastic bag at Walgreen’s to cart home one package of night-lites is wasteful, socially and environmentally irresponsible. In fact, it is socially irresponsible because it is environmentally irresponsible. Let’s not consider the future- that would be wrong. The only time the future generations of the inhabitants of this nation are considered should not be when we assume, they’ll assume our debt from all the borrowing our elected officials have been approving. We could stop being a liability to the world we live in any day now. Instead, there are probably some inventors trying to find the best way to mass market urinals for home use or those who are writing their one-millionth word in a blog saga that would blind a small epic poet while he was reading it.

Great Britain: In the 11th century- “According to legend, Lady Godiva's husband Leofric, Earl of Mercia, promised to reduce the high taxes he levied on the residents of Coventry when she agreed to ride naked through the streets of the town.” A progressive Poll tax on the Duke of Lancaster in 1377 “was 520 times the tax on the common peasant.” No word on whether that Duke was the first conservative. By the way, if Godiva was as smooth-bottomed as the top of the line chocolate which bears her name . . . yum.

America, present day: I just had an original thought . . . I paid a 7.5 cents on the dollar tax for it . . . it was about mice having sex with cheese- the government gave me a bailout because I am running out of good ideas. The sarcasm industry is in dire need of federal funds. I’ve been at this for about two years, so long that the number of news stories, political books, conversations with co-workers, exchanged emails with talk-show hosts or discussions with slippery conservatives that remind me of the liquid metal assassin from the second Terminator movie or liberal DINKs that feel empowered that a democrat is back in the white house, fills me with a feeling so near apathy I hardly know how to keep going. There is just too much material to dismiss and my supply of sarcasm is running low. I cannot possibly come up with something witty to write to downplay the rationale of all those I disagree with . . . silence! to those of you who think that I stopped being witty in part 1. (Note- DINKs- Dual Income No Kids.)

The talent of taxes: Because of taxes people have been beheaded or convicted of treason, tea has been poured into harbors, wars have been started, conducted and funded by a tax (the Civil War twice, among others), armies have been expanded, stadiums have been built, some aggressions known as the Whiskey Rebellion and the Fries* Rebellion have taken place, people have volunteered their wives to ride naked through the streets of Coventry, and the Constitution has been amended (16th amendment). About that last one- I know! I am as shocked as you are that the Constitution could be amended. And you see how well that amendment has gone for the good of government spending. How else is the government going to improve on that 19% we expect them to spend in the name of a healthy GDP- see part 45. Rhetorical questions are less expensive; question marks are spendy, thus taxed more and they are the granite countertops of the punctuation world.

My corporate America:
“During the 1930's federal individual income taxes were never more than 1.4 percent of GNP. Corporate taxes were never more than 1.6 percent of GNP. In 1990 those same taxes as a percent of GNP were 8.77 and 1.99 respectively.” So, as a percentage of the Gross National Product, individuals have contributed six times more than they did 80 years ago and corporations have barely had their taxes raised at all in nearly 80 years. Shocking! Somewhat less so than if someone told me that hamster bacon were on sale this week at Cub foods.

The above historical taxation pieces are courtesy of- http://www.taxworld.org/History/TaxHistory.htm. Course, I made up that stuff about hamster bacon . . . probably; I don't frequent the ethnic foods section.




TAXES TAXES EVERYWHERE

Types of taxes: tariffs (a tax imposed on goods moved across a political boundary)**, excise- (tea, tobacco, motor fuel, telephone usage, alcohol- goods produced within the country); direct taxes- such as capitation, head,*** property, or poll, i.e. indirect taxes), payroll taxes, income taxes, sales tax, too many framed photos tax, capital gains, death, excessive use of the stapler tax, inheritance, gas; pet snake tax, estate and gift taxes, license tabs, payroll tax, FICA tax (for the funding of social security)- this tax was increased during the Lyndon Johnson administration with the addition of Medicare; there have been things called fees, which semantically-brave**** governors, congressmen, presidents, city council people, airline industry and cable company executives and board members have wholeheartedly or feign-reluctantly endorsed.

Cable bill: There is a sales tax, franchise fee, PEG fee ($1.89), FCC fee (7 cents in March, 6 cents in December- apparently that went up); for the digital voice addition a couple of years ago there is a state sales tax ($2.69), a county sales tax (10 cents) and 911 “fee(s)” (65 cents). Apparently, this means there may be more than one fee- how would we even know and how would they remember?

Cell phone bill: Wireless surcharges and other charges and credits ($2.86), taxes, governmental surcharges & fees ($5.18), voice equipment ($3.50)- should someone be charged for this every month? A universal connectivity chg. – recurring (74 cents), regulatory recovery fees – recurring (13 cents)- can I agree to pay a regulatory fee for regulation of the legislature, elected politicians, the financial industry? Just go ahead and take that right out of my paycheck which may not be something that recurs a year from now. Regulatory recovery fees . . . that kind of sounds like reparations that should be made to the middle class for the lack of regulations on the free market.


Car insurance: installment fee ($3.50).


Mortgage: the property tax associated with a mortgage.


Electric: resource and tax adjustment ($10.34), state sales tax ($3.20), Dakota county transit tax 12 cents and something called a fixed charge $7. Good thing that isn’t a variable charge. Oh, the property tax is a variable charge.


Ticketmaster: I would not identify the right to purchase event tickets through Ticketmaster a necessary cost, one that every middle class citizen should be able to afford, (so this is a little indulgent) but can’t because of the cost of gas, cars, education, food, homes (mortgages or rent), health care, taxes, etc. Consider this and tell me if you think the free market should continue to go unregulated- “ . . .say you purchase a $35 ticket through Ticketmaster for an upcoming event, there could be a convenience charge of $8.35 (per ticket) in addition to a $3.15 order processing fee and $1.75 fee for an e-ticket. That adds up to a whopping 38 percent premium over the face value of the ticket price. Like any business, we have every right to seek a fair return on our investment and efforts," the company said in a statement.” Like every private citizen, I have the right to shove squid, afflicted with salmonella derived from their love of the leisurely consumption of pistachios down their throat? No?

More other taxes: There has been a Sugar Act, a Sugar and Molasses Act, a Stamp Act, a Townshend Revenue Act, the Revenue Act of 1913, the Earned Income Tax Credit (which subsidizes some of the worst decision-makers in the country, and rewards them for having more children than not only they, but the remainder of the country can afford). Lower rates for 18-month and five-year assets were adopted in 1997 with the Taxpayer Relief Act of 1997. Bush signed the Economic Growth and Tax Relief Reconciliation Act of 2001 which cut taxes by $1.35 trillion. Unfortunately, select members of the middle class are unaware how unbelievably fortunate this tax cut was for the rich, who clearly needed an economic break to rival the fortune of the whale-shark that swims around at the bottom of the sea consuming mass quantities of plankton simply because its mouth is always open. I wonder what the insurance premiums are for the underinsured contingent of the whale-shark shoal***** that report to their physician the repetitive stress injury of lock-jaw and how many conservatives would be against single-payer health care if it meant providing for one of its own.

Tax short: From a letter to the editor from the Minneapolis Star Tribune from some time in 2008- “ . . . for five of the last six years that Enron was in business, it did not pay any federal income tax. According to . . . [the] Nobel Prize winner for economics in 2001, corporations profited by 68 percent during the Bush administration era, while median household incomes were at negative 1 percent.” To the extent this is true, I hope there is a hell, and that there is an observation deck in heaven allowing people other than me the opportunity to watch evil people be 70 % more unlucky in the afterlife. I’ve decided that being more graphic than that would be unsuitable so early in this sub-topic. (Note: the Nobel Prize winner in economics- that sounds like an expert to me.)



I WOULD LIKE TO SAY THAT IS ENOUGH FOR THE HISTORY AND LITANY OF TAXES IMPOSED UPON A SOMEWHAT SUSPECTING POPULACE, BUT . . .

Yeah, you knew I was not done quoting from the Constitution annex, The Federalist Papers: Hamilton, in The Federalist No. 70, wrote- “Men often oppose a thing merely because they have had no agency in planning it, or because it may have been planned by those whom they dislike. But if they have been consulted and have happened to disapprove, opposition then becomes in their estimation an indispensable duty of self love. They seem to think themselves bound in honor, and by all the motives of personal infallibility to defeat the success of what has been resolved upon, contrary to their sentiments. Men of upright, benevolent tempers have too many opportunities of remarking with horror, to what desperate lengths this disposition is sometimes carried, and how often the great interests of society are sacrificed to the vanity, to the conceit and to the obstinacy of individuals, who have credit enough to make their passions and their caprices interesting to mankind. Perhaps the question now before the public may in its consequences afford melancholy proofs of the effects of this despicable frailty, or rather detestable vice in the human character.” (pg. 357, Hamilton #70)


My rebuttal directed toward the ass: What kind of "despicable frailty" is it when an elected representative consistently continues to ignore the requests of their electors to be more fiscally responsible than formerly? Many men, no matter how many hours they work are the most frail when they chase more and more money that has never seemed to flee from them. Being against a pig odor study or any of the 9,000 earmarks in the omnibus bill, as a responsible citizen, is not a “detestable vice.” Demanding accountability of our elected officials is not vanity; urging regulations of the free market and transparency of our government is itself a sign of a "benevolent temper" and requesting that government waste be chronicled for the sake of improving how much our nation’s citizens are taxed is not a mark revealing the “obstinacy of individuals.” A couple weeks back, American Idol host Ryan Seacrest explained that, in the interest of time, only two judges, rather than all four, would be sounding off on the performances of each singer, so that the program which followed AI could start at its normal time. It is too bad that the best example of American democracy comes from a reality show, where the most loyal viewers of a television program can complain about Fringe or House starting a minute or two later than scheduled. These are the types of people who put up yard signs on behalf of candidate X who is no better and no worse than his rival. He is just different in the same way. Shallow, hollow, stupid voters. I would call them sheep, but I do not mean to offend the lemmings who had seemed to be satisfied with being considered the most gullible member of the animal kingdom all to themselves. Man is so disappointingly predictable that sheep probably compare us with lemmings.

“Benevolent tempers”: The most obviously deficient among Hamilton’s retinue of characteristics, is benevolence. If this man were alive today, he might purposefully transport zebra mussels with Slapped Cheek Syndrome (i.e. Fifths Disease) to previously unaffected lakes, be determined to use metal spatulas on other people’s non-stick cookware and demand an accident forgiveness car insurance policy before proceeding to deliberately crash his car into others and pay witnesses to corroborate his side of the story. In the Star Wars world, a world my son entered 6 weeks ago, and is obsessed with, this man (Hamilton) is Darth Sidious. For those who are unlike my son, who put two Star Wars shirts on the other day when I asked him to get dressed, and may not know who that is, he is the guy who connived his way to the emperorship and literally made Darth Vader, the third best villain in the history of the cinema, according to AFI.

Remarkably consistent Hamilton: Our friend Mr. Hamilton, justifying why a cabal, a plurality of magistrates ought not share the highest office in the land (one occupied these 220 years by 44 different men- the president) writes that- “The circumstances which may have led to any national miscarriage or misfortune are sometimes so complicated, that where there are a number of actors who may have had different degrees and kinds of agency, though we may clearly see upon the whole that there has been mismanagement, yet it may be impracticable to pronounce to whose account the evil which may have been incurred is truly chargeable." (pg. 359, Hamilton #70) We are especially unlikely to “pronounce to whose account the evil . . . [may be] chargeable” if we cannot identify the lawmakers responsible, in that they do such a masterful job of protecting each other. Hamilton’s idea is to just treat this obligatory innuendo hot potato of governmental malfeasance as something for which no proof can be provided, and thus, there is no punishment to dole out. I realize he is writing to justify that just one executive shall hold office, but he happens to describe exactly what takes place within the halls and chambers of congress. If Hamilton were alive today, judging by his consistent inability to reason appropriately, he would probably defend the incredulous nature of physics as exhibited in the average Tom and Jerry cartoon.

This one is especially prescient: Again, Hamilton is writing speculatively about some misguided soul****** who might investigate a matter of some importance, so diligently so as to come to the undeniable conclusion that gross governmental irregularities have occurred (and will keep occurring), with the full participation of certain avaricious elected officials, and further, that members of at least two parties are in collusion with each other to act as czars overseeing the serfs they are elected to represent. Meanwhile the serfs/citizens fidget their way to some middle class oblivion where they are required (via some Freudian social acceptance theory) to build upon the illusory, yet palpable, Tower of Babel,******* where our collective complaints are measured, but go unheeded because everyone is talking, and no one is listening- not really anyway. Oh yes, Hamilton’s quote- “Should there be found a citizen zealous enough to undertake the unpromising task, if there happen to be a collusion between the parties concerned, how easy is it to cloath the circumstances with so much ambiguity, as to render it uncertain what was the precise conduct of any of those parties?” (pg. 359, Hamilton #70) Indeed, and so much so that it would require more than 47 installments in order to flush out that ambiguity, using facts rather than conjecture, and reveal how moronic it is to vote for the status quo, no matter how brainwashed you are.

Federal government offices: Hamilton, in justifying the Constitution, had to, for immediacy’s sake, alleviate the fear detractors had over how much a new government would cost, in the short term certainly, but also in the long run. In this, Hamilton was anything but prescient. He refers to the present population and the likelihood that the population will continue to increase due to the number of representatives required to serve the people, according to the Constitution and asks rhetorically of those who fear the price tag of the proposed government- “Whence is the dreaded augmentation of expence to spring? One source pointed out, is the multiplication of offices under the new government. . . As to persons to be employed in the collection of the revenues, it is unquestionably true that these will form a very considerable addition to the number of federal officers; but it will not follow, that this will occasion an increase of public expence. It will be in most cases nothing more than an exchange of state officers for national officers.” (pg. 441 Hamilton #84) Not quite right as it turned out. Course, I thought bailing out the financial corporations and tying retirement money to the stock market for the purposes of eliminating social security was a good thing and we see how both of those have and will turn out, no accountability in the former example and no money for retirees in the latter- they both have a shared cause, the willful, and unaccountably ignorant trust of an unregulated free-market- that goes out to all of you little Darth Sidiouses out there. “Whence is the dreaded augmentation of expence to spring?” Are you kidding me? Mr. Hamilton, you are dead, I do not really expect for you to be able to answer that question. In fact, when I die, I plan on having a duel with you in hell with as many as several IRS agents in attendance.



TAX SEASON

Accountable I: There are baseball seasons, football seasons, the spring season, The Four Seasons (a high-end restaurant chain) and Four Seasons, (some rather famous classic music written by Vivaldi) and tax season. While team IRS is probably not undefeated, surely they have a Globetrotter-like record against their patsy, the middle class-like Washington Generals. If it is one thing the IRS is charged with, it is holding citizens accountable for paying their taxes in full and on time. However, their own accountability is less than assured to the citizen in return. Never mind the problem of immigrant and corporate taxes the IRS, as an entity, may fail to collect, there are certainly other government agencies to blame for that. My wife and I complete our taxes each year by using a software program called Turbo Tax. This year there happened to be a glitch in the program, or our AGI was otherwise transcribed by an IRS agent incorrectly and my wife spent three hours on the phone, getting redirected to other agents three times, none of whom completely allayed any of her anxiety about potential penalties for the filed taxes being late (as it was April 15th when we found out about their error). The AGI is another number the IRS uses to verify, that everyone is filing their taxes; the IRS can match up the most recent tax year with your filed taxes from the previous year and accountably ensure that everyone is filing. Never mind that your address, date of birth, size of your big toe, name, bank account number, the expected number of predominantly yellow teeth within your mouth by the age of fify, and the ITIN number- (Individual Taxpayer Identification Number) and social security numbers are always also included on the form as a way to specifically identify particular delinquents or angels. If all of those numbers match from the previous year, why would you make someone spend two hours on the phone being transferred to multiple agents, none of whom are willing to admit that the error is the fault of the agency that employs them. Further, there seems to be a requirement that the IRS agent assigned to help when calls are transferred their way provide an identification number that my wife described as having been delivered so quickly in a couple cases she didn’t have time to write it down. In one case, my wife was transferred to a woman who gave her two different id numbers, one at the beginning of the call and one at the end. The average elephant seal does less damage to its environment when it hunts squid for sport than the average IRS agent does to our environment just by being less helpful and by not offering to pay us for assisting them in rectifying a situation that was caused by them.

Accountable II: To tie this back to Hamilton’s shortsightedness, where the number of federal employees that would be needed to conduct a federal government’s business is concerned, I bring you this very logical quote- “As to persons to be employed in the collection of the revenues, it is unquestionably true that these will form a very considerable addition to the number of federal officers; but it will not follow, that this will occasion an increase of public expence. It will be in most cases nothing more than an exchange of state officers for national officers. In the collection of all duties, for instance, the persons employed will be wholly of the latter description. The states individually will stand in no need of any for this purpose.” Really? Ladies and gentlemen, you read it here first, we may not be required to file a state income tax return in the future, for there will be no one interested in collecting our state income tax shortfalls. This was so written in The Federalist Papers, the majority of which was penned by Hamilton to defend the honor of the, at the time, yet to be ratified Constitution. I should think that Hamilton held his flourish (The Federalist Papers) meant to accompany, introduce, and protect the honor of the Constitution, in such high esteem, as if it were some knight errant meant to escort a celestial virgin (the Constitution) on its way to the castle in the sky ball.

Accountable III: I am not even going to deliberately hunt for any material about IRS agent fraud, conspiracy, mistakes, inaccuracies, etc. that might have cost/is costing/will cost the taxpayers money. Is that not assumed? The cost of that type, and other types, of belligerence, and I don’t want to under-exaggerate things here, is slightly more probable than a Swedish man being able to run the 100 yard dash in negative time or of Siamese Twins being born twelve days apart. I did a search on “how many federal government employees” and did not find an accurate total from some of the results. I hit upon a link to the NFFE- “ The National Federation of Federal Employees (NFFE) is a national union representing 100,000 blue and white collar government workers across the United States.” So, there are at least that many federal employees. Hamilton writes- “Where then are we to seek for those additional articles of expence which are to swell the account to the enormous size that has been represented to us? . . . it can upon no reasonable plan amount to a sum which will be an object of material consequence.” (pg. 442, Hamilton #85) Hamilton is the type of snake-oil salesman (yes, there are types of snake-oil salesmen) that, after having collected a healthy supply of snake-oil from its own slithery form, would give away life insurance policies as christmas presents. His policies would reward those who owned two male beta fish, one that was named Ariel by his daughter, which will apparently have to go through gender reassignment surgery and the other which his son named Millenium Falcon.

Maybe the most important rhetorical question I have asked in my life: Defenders of the Constitution, and of Hamilton, might claim, in response to my insinuation above that it is preposterous to attempt to hold Hamilton accountable for how many, and how often, things have changed in the intervening 220 years since the Constitution took hold of this country. Those ardent constitutionalists would dismiss my point and the irreverent manner I use to advance it, and state that there is no way I can criticize a man for being unable to successfully predict how profoundly things have changed, how much more expensive the federal government was going to be than previously predicted by Hamilton, how much more our government would cost the taxpayer. My question would simply be- if the contents of the Federalist Papers, the secondary source document with 85 numbers, which was written for the singular purpose of defending the existence of the Constitution is outdated, couldn't the same be said of the document itself? Or, people just may not care.

The last of the Hamilton quotes, at least for now: “The result from these observations is, that the sources of additional expence from the establishment of the proposed constitution are much fewer than may have been imagined, that they are counterbalanced by considerable objects of saving, and that while it is questionable on which side the scale will preponderate, it is certain that a government less expensive would be incompetent to the purpose of the union.” (pg. 443, Hamilton #84) Yes, imagine how incompetent a government less expensive might be if one this expensive is this incompetent.


OBAMA’S TAX-CHALLENGED CORTEGE

Very taxing: president Obama has had some difficulty finding qualified candidates to head his various departments- “A third of the Senate voted against the nomination of Treasury Secretary Thomas F. Geithner because of his failure to pay self-employment taxes while working for the International Monetary Fund. Both Health and Human Services Secretary-designate Thomas A. Daschle and Nancy Killefer, Mr. Obama's choice to be the first "performance chief officer," withdrew their names” before the senate hearings for their potential confirmations “after admitting to past tax irregularities.” (See- David R. Sans, Washington Times- http://www.washingtontimes.com/news/2009/feb/05/more-obama-appointee-tax-problems/) Also within that article- “A Senate committee abruptly canceled a confirmation vote for Labor Secretary-designate Hilda L. Solis Thursday amid fresh reports of tax problems involving the husband of the California congresswoman.” And then, at the end of March another headline presented itself- “Obama’s Health Nominee [Kathleen] Sebelius Reveals Tax Errors.” (See- http://www.reuters.com/article/politicsNews/idUSTRE53004X20090401.) Because of this year’s AGI******** tax slip-up (see above), the senate hearings for my confirmation to be the next head Tolerance of Rich Assholes Engineer might be cancelled. The former head of the Rich Assholes Tolerance team was the two-nosed bunny whose major accomplishment, after its stroke was to overlook the stench in Ames, Iowa, the site of the pig-odor study (see part 45). What, you don’t think a two-nosed rabbit would have to be tolerant to get passed the stench of pig feces?

Obama fan: A friend of mine, who voted for Obama, asked me if I was going to thank him for the middle class tax break that had been instituted, and would be left to each of our paychecks. Unfortunately, the savings are to sneak back into our paychecks over the course of the year, so as to be barely noticeable. And actually, the “tax break” is really just a trick with income tax withholding. The news is-

“Federal income-tax credits for middle- and lower-income households -- part of the $787 billion federal stimulus plan -- go into effect Wednesday. The so-called "Making Work Pay" tax credits -- in the form of reduced paycheck withholding -- offer $400 to individuals making less than $75,000 and $800 to married couples making less than $150,000 per year. The credits, which will show up in workers paychecks, will be phased out for those above the thresholds. Couples making $200,000 and individuals making $100,000 will not receive any breaks. The aim of the stimulus tax credits is to encourage stunted consumers spending.” (Denver Business Journal, April 1, 2009- “Middle-Class Income-Tax Credit Starts Wednesday”.) With a net income, after the tax "break" is in effect, of $3-$5 a paycheck, after social security, welfare, charity, and 401k $$ is withdrawn, I might be able to buy that pack of gum I've been saving for.

Another co-worker mentioned that this really is not a tax credit or tax break, but rather a way for the government to adjust taxpayer withholdings so that they get back their own money gradually throughout the year, rather than all at once. I don’t really see that as a tax credit and await the day when a guy who received a 1.5% raise who associates with those who can sniff out those types of governmental semantics will actually get a tax break.

Agents of the government: I am reminded of a quotation (shocking I know)- “So long as we love we serve; so long as we are loved by others, I would almost say that we are indispensable; and no man is useless while he has a friend.” – Robert Louis Stevenson Men may be admired, famous, friendLY, affable, proficiently human, even servilicious, but the average government agent comes as close to not meeting the requirements of indispensability as any other man that I could imagine. There are far worse complements.


_______________________________________
* This was not a skirmish fought over the rights of some French fries, whether they were crinkle cut or waffle.

** Which is not a tax that law abiding citizens, who want campaign finance reform, are allowed to collect from the two major parties that hide behind freedoms the founders never intended to grant. Talk about a political boundary- there is no way in hell Madison ever intended to protect the freedoms of billionaires interested in buying someone an election. I have a feeling that circumventing the collected will of the people was not something Madison had in mind. And I wish, when I become governor of New York, after I have my requisite sex scandal and try to institute my fat people tax on ho-hos that I will push for a vote on the Dumbass Tolerance Tax. If you annoy me and try to pretend that as a politician you are doing well when the overwhelming (or just the whelming) evidence suggests otherwise, you will have to pay me a tax. Hey, I have to recoup my smartass taxes somehow. That whale-shark stuff went over too well.

*** In which, people are not taxed for having a head. This is a strange name for two taxes listed consecutively- capitation and head, which, one could joke, might be a tax on someone’s head being re-affixed to their neck.

**** Fees are the red-headed step children of their pristine-blooded tax forbears. Some mid-western governors (think Minnesota’s Tim Pawlenty) have used the word “fee” as a sly alternative to “tax” and must think no one has access to a poor man’s thesaurus we carry around in our heads. Perhaps Pawlenty thinks we are children who won’t eat something until it is called by another name. My son did not eat clementines one morning until I call them oranges, and it seems as if the reverse was true a couple weeks ago. It isn’t a power struggle, at least not in this case (with my son), despite how unreasonable it is. We should not desire for our elected officials to call something by another name in order to get us to swallow it, or for that matter, to have multiple names for the same thing when one will do. The two most inevitable things in life- are death and taxes, not death and fees.

***** I have done zero research on what a group of whale-sharks are called. I can speculate that a group of politicians seeking to increase the progressive tax or those that complain about restricted CEO bonuses, salaries and golden parachute packages are a group of assholes and/or bitches- depending on their sex and whether they fly down K Street in wedge formation.

****** That would be me.

******* I’ve already mentioned this incoherence and powerlessness due to our even further becoming a melting pot of a country, from heritage/culture, language, social status, and ethnic background standpoints in parts 12, 24, and 37. I thought I better do it again for old-time sake.

******** Not to be confused with AIG- I thought I would clarify. Those with dyslexia- just move on, unraveling this level of transposed letters could cost you an entire weekend. But, you’re probably still working on it.

Sunday, March 29, 2009

Middle Class Part 46: AIG, Farting and Contractual Obligations

“What I must do is all that concerns me, not what the people think.”- Ralph Waldo Emerson
Not comparing myself to Emerson in any way, but the sentiment stands. He wrote essays about nature and transcendentalism, and I write . . . hm, what would you call this?



EXECUTIVE PRIVILEGE

Best laid plans: I had planned on delving right into the topic of taxation as the final piece that comprises the middle class’ anxiety about their progeny’s economic place in this country. I realized during a conversation with advocates for the poor and the rich that I needed to add a few more paragraphs to the subtopic of the free market, bonuses, global economy, etc.

Advocate of the rich I: . . . stated many of the same predictable things that rich advocates always say when defending the free market and minimizing anyone’s call for regulations that inhibit the irresponsible nature of 21st century financial maneuvers, whether by banks or other financial institutions or stock market mavens. His point- that the market was performing exactly how it should have, in that it was failing and it would have filtered out those who cannot adequately perform their jobs. To him, no government bailout was needed if business is to be conducted as usual in the free market. I would note, and did add to the advocate for the poor, that the traditional conservative’s epitome of a free market overlord is former federal reserve chairman Alan Greenspan who was quoted by everyone, from vindictive liberal columnists to conservative apologists, to an ignorant Spanish Ibex when he was shocked by the events that were taking place in our economy- “Greenspan admitted that he had put too much faith in the self-correcting power of free markets and had failed to anticipate the self-destructive power of wanton mortgage lending.” The devotees of the rich, in hindsight, may disparage Greenspan’s reputation all they want. This- let’s call it testimony- does not help your case considering that- “For years, a Congressional hearing with Alan Greenspan was a marquee event. Lawmakers doted on him as an economic sage. Markets jumped up or down depending on what he said. Politicians in both parties wanted the maestro on their side.” The title of the article which contains both quotations- “Greenspan Concedes Error on Regulation” written by Edmund L. Andrews, New York Times, October 23, 2008. (See- http://www.nytimes.com/2008/10/24/business/economy/24panel.html) Whether Greenspan sold out to the government and agreed to say such things as a way of convincing the public to support a bailout remains to be seen. (Note: His words may actually have caused me to think that bailing them out was a necessary evil, but that regulations and accountability should be built into subsequent financial industry agreements/contracts in the future- or the bailout need not happen- see part- ?? How the hell should I know. I've written so many pages on this topic so far that Austrailia's blue-tongued skink is tired of it.)

Advocate of the rich II: See footnote * below, but also keep in mind that Obama is not the only one blaming the talented financial industry workers for playing a major role in causing our economic mess (he mentioned this as a primary cause for our economic mess on both 60 Minutes and during his March 24, 2009 press conference)- that would be a kind of urban legend that someone believes and then disseminates to coworkers at a happy hour. Obama was probably briefed and then delivered that assessment after industry insiders had made it common knowledge. Consider this, from New York Times columnist Thomas Friedman (from March 17, 2009) “I live in Montgomery County, Md. The schoolteachers here, who make on average $67,000 a year, recently voted to voluntarily give up their 5 percent pay raise that was contractually agreed to for next year, saving our school system $89 million — so programs and teachers would not have to be terminated. If public schoolteachers can take one for schoolchildren and fellow teachers, A.I.G. brokers can take one for the country.

“Let’s not forget, A.I.G. was basically running an unregulated hedge fund inside a AAA-rated insurance company. And — like Madoff, who was selling phantom stocks — A.I.G. was selling, in effect, phantom insurance against the default of bundled subprime mortgages and other debt — insurance that A.I.G. had nowhere near enough capital to back up when bonds went bust. It was a hedge fund with no hedges. That’s why taxpayers have had to pay the insurance for A.I.G. — so its bank and government customers won’t tank and cause even more harm.”
(See- http://www.nytimes.com/2009/03/18/opinion/18friedman.html?_r=1.) If this was not a leading component of our economic problems, a symptom, a cause, whatever, but our moral sense of right and wrong should become more healthy by consistently reminding us of the difference between right and wrong and compelling us to demand restitution for those obviously guilty of having done the latter, particularly when it harms an entire country of people and a number of people around the world that I was not aware America had become contractually obligated to assist.

Never trust a fart: A student was suspended for farting on a bus in Florida last week and in the article that relates that news is included a sentence about a 13-year-old student that “was arrested in November after authorities said he broke wind in class.” Really, kids are getting punished for farting, a sometimes involuntary (non pig odor type) of air quality infringement and we can’t punish those who deliberately did so much wrong that it registers in the mind of the mouse-like jerboa of the Gobi Desert that has been preoccupied with a fight against its insurance company trying to get them to consent to pay for the somewhat elective stilt-leg reduction surgery. (For the gas passing story- see “Student Suspended for Passing Gas on Bus” Associated Press, March 23, 2009.)

Advocate of the poor I: The advocate for the poor is an extremely intelligent contractor whose point was that in a global economy if the United States is to have so much capital it is going to have to float more boats, that the poor want a piece of the puzzle and will displace American workers in order to do it. Hard to argue with the desires of the poor, but it is easy to tell someone, even if their altruism quotient is as high as my co-worker’s, to ask for some reciprocity from the rich, to ask those getting the AIG-style bonuses to sacrifice rather than someone who is about to receive a 1.5% salary increase, or to forget that the poor’s raised standard of living is something our American grandchildren will have to pay for. It should be stated that my co-worker had the poor of the greater world in mind when he mentioned those thirsting for a better life and not the poor of this country. Until we can get our own house in order we will not be able to assist all comers, even should they do us the favor of taking our jobs. If the wasteful spending does not put more money back into the hands of everyone, including the rich, then the rich, some of whom are so rich they have mud rooms in their RVs, should be taxed more. I’ve written this many times, as far back as part 5. The poor of all nations expecting America to save them from this global economic hell, would do well to remember how tiresome it is be told that because of an allowed global competition for jobs (in America), the world’s eager poor are capable of stealing millions more middle class jobs than they already have. And I say stealing, because the greedy corporate executives, are complicit in their handing over our country to workers of other nations- “If destruction be our lot, we must ourselves be its author and finisher. As a nation of freemen, we must live through all time, or die by suicide.” – Abraham Lincoln. Which way are we choosing? We couldn’t be any more conscious of our decision than if we were leaning over a pool of water to refresh ourselves knowing that it was filled with mature crocodiles.

Advocate of the poor II: It goes without saying that the executives should be stripped of their healthy bonuses, no matter how talented they think they are. I told the advocate of the poor to start there. He and I discussed the nature of risk v. reward financial markets. My point would be that for too long, sans regulations, those in the business of controlling everyone’s retirement accounts have gotten ten times the benefit from investor collateral; financial industry employees have enjoyed plenty of reward with little risk, relatively speaking. One thing I would add to the advocate of the poor, and to the rich for that matter, as the poor (however, not even those that reside in this country) have been benefiting by the decisions made by the rich, who are moving middle class jobs overseas- the migration of jobs overseas has got to stop, and the poor’s climb** into the middle class cannot be made at the expense of those who are already there and have worked hard enough to stay.*** It seems a paper in “Pasadena, Calif. Dismissed its writers and outsourced its reporting to Pakistan (amusing, yes; joke, no), it saved overhead and became irrelevant.” (See John Olson’s article in the Minneapolis Star Tribune’s Opinion Exchange section- OP1 and OP4, March 15, 2008.) When I get rich, I plan on outsourcing back-stabbed knife extraction to the Martians; they’ll be cheaper than Guatemalans and Pakistanis because I can probably pay them in bottled oxygen, to be had at a reduced rate if purchased in bulk, if the mixture is laced with pig odor stench.

AIG

AIG: I’ve read plenty and enough about the AIG $165 million bonus scandal. I’ve read columns about how Washington must act on the bonuses and be a wrongdoing arbitrator, why they can’t do anything about the bonuses, and heard that AIG is going to have to change its name in order to allow it to successfully do business in the future. I wonder why snakes haven’t thought of this. I’ve heard that trying to pass legislation that requires the bonuses be returned is unconstitutional. Make it Constitutional! Perhaps the most ridiculous reason given for the greedy to keep their bonuses is that it is contractual. One Ruth Marcus, writing for the Washington Post, whose article appeared in the March 20, 2009 Minneapolis Star Tribune’s Opinion Exchange section has chosen this logic. Oh, she makes the same arguments about not jeopardizing the incomes of those who would help us fix the mess we’re in, but goes a couple of steps further. In the article, I saw for the first time- how columnists and writers could make the word “populist” into a word with negative connotations. Yeah, lord forbid that the public demand accountability from those with financial control security clearance. Marcus writes that we are a country of laws and cannot legislate retroactively, that “federal legislation explicitly states that compensation limits for companies receiving bailout funds do not apply to preexisting contracts.” Why would that be? Have we bailed out the financial sector so often that a standard contract has been decided upon, with our input, who are one-half of the consenting parties? I love it- who invented sarcasm anyway?

AIG and athletics: Contracts are torn up, violated, and infringed upon all of the time. The main thing is to get such weighty concerns, such as $750 billion in bailouts, right. I am so confident of my thinking here that I am not even going to spend the 2-3 hours of research looking for supporting arguments. One occurred to me just naturally. While this scandal did not help produce a recession and does not involve federal legislation . . . George O’Leary accepted the position of head football coach at Notre Dame. “A few days after being hired” –there is no doubt that the hiring of a head football coach at Notre Dame involved a contract between the university and the coach, he was fired for things that rather remind me of the types of lies and antics that our AIG pariahs have become famous for. O’Leary claimed he “had earned a master’s degree” from a non-existent university and claimed he earned varsity letters for football from a school for which he had never played a game. O’Leary’s net impact on the wider world- 0, AIG’s- considerably more. Ultimately, if you don’t hold up your end of the bargain for reasons that are the epitome of delinquency and greed then the spirit of , and the law behind, contractual obligations is going to have to change. Sports contracts have plenty of clauses that address a player’s limitations away from the playing field. If he is injured riding a motorcycle, surfing, tests positive for a performance enhancing drug, or manages a fjord pony and dugong at an all nude burlesque show, the terms of their contract have been violated and the team that is paying him for participating, can withhold payment- legally. Those terms are written into the contract. And with that, I imagine that O’Leary’s contract included a clause whereby if he was found to have lied on his resume, he could be fired. Those who would mock an apparent lack of pertinent examples will always seem to miss one very valuable piece of oversight common to all sports and missing from Washington (politics) and New York (the Mecca of finance) . . . populism. Heh, just kidding- see what I did there- just one small step in the making of a word into a derogatory term. No, the word I am thinking of is- officiating.

Contractual: I am tired of the least common denominator citizens of this country hiding behind what is or is not written into contracts. Home improvement contractors hide behind an obligation to pay on the part of the homeowner for inferior craftsmanship; Michael Vick still got $20 million from his previous employer, the Atlanta Falcons, though he was operating a dog-fighting ring out of his home, is sitting in federal prison and hasn’t played a game in two years; Stephon Marbury, of the New York Knicks, refused to play in a game and sulked on the Knicks’ bench for the majority of the 2008-09 season and still raked in the vast majority of his $21 million salary after being fined at least twice, once for refusing to play in a game. Don’t offer that a contract’s major included stipulations must be adhered to as it is always what is not included that most derails this society's sense of decency and the insubordinate’s rationale for not conducting business in a professional manner. With a lack of oversight that egregious, what is unaccountably missing can be a bigger problem than what is included. Someone defending those for whom Dante must have reserved their own circle of hell (ok, well, then one they will be sharing with the bed-wetting capybara) ought to know better.

It’s Jurassic: A Jeff Goldblum line from Jurassic Park is the most morally pertinent way of ending this exacting portion of the overall topic. When the scientists visiting the dinosaur park had the chance to sit down to discuss the reality of what they had just seen with the man who had funded that level of creation and future carnage and whether moneybags should have done such a thing as genetically reintroduce dinosaurs into the world, Goldblum’s chaoticianous character (one that proclaims the plausibility of chaos theory) had this to say to the financier- “You were so preoccupied with whether or not you could, you didn't stop to think if you should.” Phrased another way by us- 'made to feel guilty about taking back bonuses that never should have been paid out' bastards, I might change the phrasing and deliver the message to those who think it is unconstitutional and in poor manners to circumvent an apparent business dealings commandment about contractual agreements- “You have been so preoccupied with whether or not you shouldn’t you haven’t stopped to think if you should.” I am no chrisitian, but there is a place for morality which will always supersede the terms, or lack of them, in a contract signed by the devil.

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* See- “AIG Firestorm Raises Alarm for Other Firms” by David Cho and Binyamin Appelbaum, Washington Post, March 18, 2009. In the article this paragraph appears: “The attack by lawmakers on AIG pay has provoked renewed complaints from some financial company executives that federal involvement in business decisions is making it difficult for struggling firms to return to profitability. In particular, executives say they need to offer bonuses to keep and motivate their most valuable employees and are already seeing an exodus of talent.” Two things- 1) where will they go if they are not feeding like leeches off of the toil, measured in dollars, of others; 2) is the same talent, those who apparently will be going on hiatus from bilking the consumer . . . are those the investors and financial magnates who got us into this mess in the first place? I’m confused . . . how is talent defined in the financial world? If the answer to that first question is yes . . . oh the options for a response are endless- here is one: I would rather brush the teeth of an annoyed hippopotamus with my eyelashes than reward executives or the financially “talented” with a bonus or a job. Would the “talented” financial employees be the ones insuring worthless derivatives and sacrificing real, measurable long-term growth? If I screw up at work I am reminded by some complete bitch of a software developer; if a talented financial industry employee screws up he is paid a retention bonus. To paraphrase president Obama, from a March 22, 2009 60 Minutes interview, those “talented” employees may need to take a step out of New York every once in awhile in order to get a dose of reality for their undiagnosed case of ego-centrism. I added the medical verbiage. Also within that article is further proof of a sickness only morally bankrupted, co-dependent accounting division employees would understand- wanting to pay “retention bonuses to keep employees who are unwinding its Financial Products division” over at AIG. Also, “A senior executive at one of the nation’s largest banks said he had heard from several hedge funds that they would not partner with the government for fear that lawmakers would impose retroactive conditions on their participation, such as limits on compensation or disclosure requirements.” And I had heard from a hedgehog, the runt of its litter, with a severe brain malfunction, that has not yet been tied to the inhalation of pig odor (see part 45) that is bright enough to require retroactive conditions such as compensation caps and disclosure requirements be put in place. A hedgehog is appropriately named considering that the investment managers can, should they be allowed to by a lack of government interference, trade commodities and debt, etc. and can creatively account for a very wide range of activities- in essence hog the capital produced by the hedge fund.

Coincidentally, a hedgehog’s SOP would be to perform a set of maneuvers that are virtually indistinguishable from the talented financial markets investor, or CEO of a major corporation, who has received word that their president, and others, have requested they return a bonus they never earned, and which the taxpayer who has gathered a 1.5% raise has helped fund, from bailout money that never should have been paid to them- “Hedgehogs occasionally perform a ritual called anointing. When the animal comes across a new scent, [such as a potential regulating agency, government entity or a fed up public] it will lick and bite the source and then form a scented froth in its mouth and paste it on its spines with its tongue. It is not known what the specific purpose of this ritual is, [it has been speculated that they do not like the aforementioned emasculation] but some experts believe anointing camouflages the hedgehog with the new scent of the area and provides a possible poison or source of infection to any predator that gets poked by their spines.” (Source- Wikipedia- with some embellishment.) The "new scent" component of this activity is not unlike what a former industry giant, such as AIG, might do to hide the trail of tears it has caused- something like planning on changing its name, which new AIG head Edward Liddy has the intention to do, as he mentioned in front of the collected enablers at the House Financial Services hearing last week.

** An ascendancy, that to be clear, is enjoyed by the poor of other nations and not this one.

*** Which of course, as I have stated several times since I started this topic, only takes into consideration those in the middle class that do not overcharge their credit card, buying or financing homes, cars, boats, televisions, video gaming equipment, clothing and other belongings they cannot afford.