Taxing The Rich!

It is TAX DAY!

OMG! That is almost blasphemous these days.

The lie spread is that the less tax the wealthy pay to more economic activity they produce and in turn the better the Middle Class and workers will do.

Pause here for the inevitable dash to the Google machine……..

Just about every viable candidate for the Dems has some plan or other to tax the rich so at least we get something from these people….Warren, AOC, Bernie, Yang et al…..it is a popular meme for Dems this cycle.

The 1990s Democratic Party made friends with the rich. The 2008 Democratic Party was eager to bail them out. The 2019 Democratic Party seems ready to declare war.

In just the past few months, at least three major Democratic Party figures, two of whom are presidential contenders, have proposed large tax increases targeted at the richest Americans:

Rep. Alexandria Ocasio-Cortez (D-NY) floated a big increase in top marginal income tax rates in an interview on 60 Minutes. Sen. Elizabeth Warren (D-MA) proposed an annual wealth tax. Sen. Bernie Sanders. (I-VT) proposed a drastic hike in the estate tax.

There is a way and there is a desire by the people to see the rich to start paying their share of the American Dream……

https://www.vox.com/2019/3/19/18240377/estate-tax-wealth-tax-70-percent-warren-sanders-aoc

How successful will these people be in this endeavor?

If you listen close enough you can hear the big guns of corproate America being prepared for war.

2020 is the voters chance to change the course of the crumbling America……but do they have the guts to step up for change or will they roll over like they have been doing since the 1990s?

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Modern Monetary Policy

Yep I am about to bore the crap out of my reader…..when it comes to economics the average person glazes over and goes to that “happy place” in the mind until the talk is finished.

But I feel I need to drop some info on my readers……there has been much in the MSM about the Green New Deal and the proposals by a couple of candidates about taxing the rich……

I want to give my reader a look into the policies and the economics of them…..

First the call to “Tax The Rich”……

I don’t consider myself an MMTer, but there is a basic Keynesian concept which has been associated with MMT, which is both true and important. For the federal government, taxes are not about raising revenue, taxes are about reducing consumption to prevent inflation.

The point is that the federal government does not need taxes for revenue, since it can just print money. It instead taxes to create the room in the economy for government spending. This view is sometimes wrongly taken as a “get of jail free” card, where the government can spend whatever it wants without worrying about raising revenue.

That could be true in a deep downturn. However, if the economy is near its full employment level of output, where additional demand will lead to rising inflation, we are pretty much back in the world where we need taxes to offset spending. Any major increase in government spending will lead to higher inflation, unless we have higher taxes or have some other mechanism to reduce demand in the economy.

https://www.counterpunch.org/2019/02/20/modern-monetary-theory-and-taxing-the-rich/

Next how about that Green New Deal that is getting the conservs lathered up to the point that they resurrect a fear from the 1950s……

Much of the Democratic Party, including almost the entire pack of contenders for the Democratic presidential nomination, has embraced the concept of a Green New Deal (GND). This is an ambitious plan for slashing greenhouse gas emissions, while at the same time creating good-paying jobs, improving education, and reducing inequality.

At this point, the specific policies entailed by these ambitious goals are largely up for grabs, as is the question of how to pay for this agenda. One way of paying for it, borrowing from the economic doctrine know as Modern Monetary Theory (MMT), is that we don’t have to.

Modern Monetary Theory argues that a government that prints its own currency is not constrained in its spending by its tax revenue. Some on the left have argued that we can just print whatever money we need to finance a GND. This claim does not make sense.

 
All this is possible…it will NEVER fly with conservs who live and die on tax cuts……a real shame….for this countries needs big ideas once again…..the Repubs are NOT those people.

Corporate Death Penalty

Think back to the 2008 collapse of the economic structure….it was the banks that lead the way and yet they were not punished for killing so many pensions….at best there was a slap on wrist and they promise not to do it again…..and if you will notice they are doing it again,

It is time for the government to bring the pain to these lousy players in our economy.

Bring back a corporate death penalty……

Let’s begin with a SCOTUS dissenting opinion from 1935…..

“The prevalence of the corporation in America has led men of this generation to act, at times, as if the privilege of doing business in corporate form were inherent in the citizen, and has led them to accept the evils attendant upon the free and unrestricted use of the corporate mechanism as if these evils were the inescapable price of civilized life, and, hence to be borne with resignation.

“Throughout the greater part of our history, a different view prevailed.

“Although the value of this instrumentality in commerce and industry was fully recognized, incorporation for business was commonly denied long after it had been freely granted for religious, educational, and charitable purposes.

“It was denied because of fear. Fear of encroachment upon the liberties and opportunities of the individual. Fear of the subjection of labor to capital. Fear of monopoly. Fear that the absorption of capital by corporations, and their perpetual life, might bring evils similar to those which attended mortmain [immortality]. There was a sense of some insidious menace inherent in large aggregations of capital, particularly when held by corporations.”

—U.S. Supreme Court Justice Louis Brandeis, 1933 dissent in Liggett v. Lee

https://www.commondreams.org/views/2019/01/08/its-time-bring-back-corporate-death-penalty

The limp wrist attempt to make corporations, especially the banks, was quickly pushed aside as soon as another corporate titan comes to power….time to make any penalties permanent…..time for the government to work for the people and not just the corporations.

This may be wishful thinking but I do feel the country is starting to realize just how bad corporations are acting and want accountability for their CRIMES.

2020 could be the beginning of the revolution to get the greed and corruption out of our society, especially from the corporations.

But first we must VOTE!

Debt And Deficit: Who Knew?

When the news broke that the Dems would take back the House I wrote then that with that bit of news we would see a return of the GOP of caring about the national debt and the deficit…….and viola!……I am hearing the rumblings of such a switch.

May I see a show of hands if any of this makes any sense to you?

First, the debt and the deficit are two different problems…..this video can help understand the economics…….

The news has broken that the national debt for the US is $22 trillion…yep that is Trillion with a “T”…….most of us cannot wrap our heads around that many zeros….it is difficult to understand and as usual I want to help you understand…..

Hopefully those two short videos helped you understand the economics at work here….

Congress does not care about the deficit or the debt (at least for now but that can change over night)…..

Congress has stared into the abyss of debt, and the abyss has stared back. The national debt just topped $22 trillion for the first time ever, yet barely a peep was heard in the halls of the Capitol. The debt-to-GDP ratio has more than doubled in less than 20 years, rising from 33 percent in 2000 to 78 percent today. Within 10 years, it will reach 93 percent, the highest level since just after World War II.

 

While currently the federal budget deficit is around $900 billion, beginning in 2022, it will exceed $1 trillion per year, every year, according to the Congressional Budget Office. Over the next decade, deficits are projected to fluctuate between 4.1 percent and 4.7 percent of GDP, well above the average over the past 50 years.

https://www.theamericanconservative.com/articles/ignoring-americas-abyss-of-debt/

Hopefully this will help when the yelling and the chest thumping begins again…..the GOP needs something they can champion to turn the conversation away from their cowardice in confronting the corruption of the Trump administration.

Money For The “Wall”

Closing thought–11Mar19

We all know of the damn silly event of the border wall and the national emergency that has been declared by our Beloved Leader…..an emergency without a reason….not a credible one anyway.

So if Trump succeeds where will the money come from? Which program will have to suffer because of a presidential ego trip?

Looks like we have an answer to that question……military pay and pensions may suffer……

The Pentagon is planning to tap $1 billion in leftover funds from military pay and pension accounts to help President Donald Trump pay for his long-sought border wall, a top Senate Democrat said Thursday.

The development comes as Pentagon officials are seeking to minimize the amount of wall money that would come from military construction projects that are so cherished by lawmakers.

Durbin said, “Imagine the Democrats making that proposal — that for whatever our project is, we’re going to cut military pay and pensions.”

Not to worry though….this president only wants whats best for our troops, right?

To that I say BULLSH*T!

Maybe his damn silly proposal for a Space Force and the cash it will take for the start-up would be a better place to start…..after all it is a simple thing…he is just looking for something to hang a plaque on that bears his name……so the “Wall” is more important than anything happening in space, right?

Just more screwing by the Supreme Leader…..and you allow it…..

That “Radical” Green New Deal

To hear the GOP tell it the Dems Green New Deal is something out of the playbook of Stalin or some other “commie” despot……the problem is that not all Dems are on-board with the proposal and will join in the slandering of the plan with the GOP…..

…….calling the Left “antis” – people who are just against stuff but not for anything – is only one of the rhetorical mechanisms employed to slander and demean radicals and progressives.  Another set of false accusations come into play when progressive solutions see the light of day and threaten to garner significant popular support.  When that happens, it no longer suffices to say that the Left offers no alternatives. The slander shifts and portside activists and intellectuals are accused of calling for too much, not for too little.  They are charged with authoritarian, even totalitarian overreach. At the same time, Left proposals are smeared as “unrealistic,” “fantastic,” “pie-in-the sky,” “dreamy,” and the like.

As with the “no solution” slur, this different set of allegations come not just from Republicans but also and most dangerously from the reigning corporate and neoliberal wing of the Democratic Party, assigned the task of defining and policing the narrow leftmost boundaries of acceptable political and policy debate in the United States.

https://www.counterpunch.org/2019/02/25/slandering-the-not-so-radical-green-new-deal-a-bipartisan-operation/

Personally, there is nothing radical about the Green New Deal….most of it would be commonsense if it weren’t for stupid that has invaded the process and the science…..

But do not believe me….read an analysis for yourself……

https://www.counterpunch.org/2019/03/04/theres-nothing-radical-about-the-green-new-deal/

The idea is a noble one but by the time the neo-liberal twats in the DNC get through with it it will be a shadow of its previous self.

AS usual the GOP and its talking heads have attacked using the tired old meme from the 1950s……beware this is “socialism”…..well no it sounds more like an infrastructure bill than socialism….and did not this current president talk and promise something about a massive infrastructure plan?

Where is the plan from the GOP?  Once again they have NOTHING to offer but dragging the institutions of government down the toilet with their party.

And the problem will remain the same….as always…… problems in search of a solution.

Space Command Or Space Force?

I have been one of the few bloggers that show any concern over the proposal for a 6th branch of military service, the Space Force, as Trump has labelled it.

Then I read about the need for a Space Command…..is this the same as the Space Force or yet more waste of the taxpayer money?

Pentagon leaders wanted U.S. Space Command, a new joint combatant command for space warfighting, up and running by the end of 2018. Two full months into 2019, Congress has yet to repeal a law that is preventing the command’s creation, according to defense and Trump administration officials.

Here’s the problem. In the 2019 National Defense Authorization Act, lawmakers ordered U.S. Space Command to be subordinate to U.S. Strategic Command, the same way U.S. Cyber Command started out under STRATCOM. But the administration wants Space Command to begin its organizational life as an independent unified command.

https://www.defenseone.com/politics/2019/02/legislative-hurdle-delays-us-space-command-stand/155220/

The Space Force proposal has been sent to Capitol Hill……..

Acting Defense Secretary Patrick Shanahan on Wednesday sent to Capitol Hill a legislative proposal and a “strategic overview” of how the Pentagon plans to organize a U.S. Space Force as a separate military branch. The information was emailed to the staff directors of the House and Senate Armed Services Committees, as well as the House and Senate Appropriations defense subcommittees.

The proposal is the culmination eight months of work since President Trump directed the Pentagon to draw up a plan to create a Space Force. Shanahan already had been designated by Congress as the point man for the space reorganization and he has overseen every step of the process.

Now that the proposal has been kicked over to Congress, DoD faces what could be a harder-than-expected job communicating the plan to Congress and the public. One of the challenges for DoD will be to argue that Congress should authorize a Space Force for reasons of national security, not just to satisfy the commander-in-chief’s directive.

https://spacenews.com/space-force-proposal-officially-sent-to-capitol-hill-now-come-the-questions/

As this proposal moves closer to reality….I ask how much of the taxpayers money will be wasted this time?

The Trump administration plans to spend $2 billion over five years to create its Space Force, according to a Defense Department proposal released Friday.

The legislative proposal

https://thehill.com/policy/defense/432235-pentagon-seeks-2b-over-five-years-for-space-force

Once again yet another way to expand the DoD budget while asking the nation’s population to make the sacrifice in services and entitlements…..

To make the case for justification for a Space Force…..National Security……

We quickly learned that America no longer owns space. We operate there along with every other space-capable nation, including adversaries like China and Russia. We learned that they are doing everything in their power to interfere with our operations. We learned that future wars will take place in space.

And we quickly realized the grim truth that we aren’t ready.

China and Russia, in particular, are aggressively pursuing space-based capabilities. China successfully destroyed an old weather satellite in a test in 2007, creating a debris field of more than 3,000 pieces, which could have damaged countless other satellites in orbit. They’ve stayed at it, continuing to work on anti-satellite weapons including lasers, signal jammers, and other ways of blinding our assets in space. In some areas, they are beating us.

https://spacenews.com/op-ed-getting-space-right-is-both-a-national-security-and-an-economic-question/

And this sage will continue….and IST will be watching and writing…..

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