Tag: Taxation

A City’s Cost Cutting

Article for Gulf South Free Press:

The city in Mississippi, south Mississippi, has a new mayor and one of his first big deals is to eliminate unneeded cost from the city budget.  A lofty endeavor, indeed.

The word going around the city is that the new mayor will cut $3+ million from the city budget by eliminating 22 positions.  Sounds good right?  It will be a considerable savings for the city.

Okay here is something to think about…..the city of Gulfport according to the 2006 census has a population of 64, 316 people.  right, it is not a large city, but a growing one.

Now my question is what 22 positions will be eliminated and how in the hell did these people earn an average of $136,000 each?  What is the mayor’s salary?  If there are that many people earn that kind of money, then no wonder the city is always in financial chaos.

Now I ask how long has this been going on….how long have the citizens been paying outrageous salaries for little or no work completed?

Maybe the promisesd of the mayor during his campaign about working for the people of the city may be true…personally I think not…but give him the benefit of the doubt….at least he is not accused of defrauding the government….that is something.

Will There Be Higher Taxes For Health?

This is the tennis ball of the health care debate…..basck and forth….back and forth…..prez will raise taxes….no!  there will be no new taxes on people making less than $250,000…..on and on and on and ………..

On a recent Sunday round of talk shows the leaders of the Obama economy seem to hint at the possibility of higher taxes down the road.

As reported by Peter Gorenstein of Health Information:

After Tim Geithner and Larry Summers opened the door to higher taxes to fight rising deficits and fund health-care reform on Sunday, White House press secretary Robert Gibbs scrambled to clear up the situation on Monday: “I don’t think any economist would believe that, in the environment that we’re in, that raising taxes on middle-class families would make any sense.”

“If we get a more balanced view of our balance sheet we’ll realize that if we spend our money well then these great extra expenditures are going to actually make our economy more productive in the future,” he says. Spending on technology, education and infrastructure “will generate revenues that will allow us in the future to pay back any borrowing or lower taxes.”

Besides, when it comes to health-care reform the Columbia economics professor claims we’re already paying a virtual tax. “Right now we’re often paying for it in hidden charges so it’s like a tax but it’s a hidden tax,” he says in reference to the costs associated with paying for 50 million uninsured Americans.

Bottom line: Stiglitz says like so many of our issues, the health-care problem is not going away: “If we don’t do [reform] today, the problems will fester, they’re going to get worse and worse and in 15 or 20 years we still have a very big problem and will be even more difficult to make the adjustments.”

Of course, we can find an economist that will take the other side of the equation.  But I have said in the past that if health care fails this time as it did in ’94, then it will return in 20 years to take a bigger bite out of our butts.  Yes, health care will be paid for..but personally, I have rather see my money go to providing health care to Americans than  to see it used to foment war.  But that is just me.  I still feel that the American people, ALL of the people deserve the best from its government.

Hopefully, Americans realize that without income the government cannot provide any services that we, as Americans,  are use to.  Without income a budget is a worthless piece of paper.

How About A Millionaires Tax?

As the health care debate heats up and the war of words begins in earnest, much has been said about the cost of the proposed health care plan.  Repubs keep harping on the cost and citing a CBO report that substantiates their figures….but there is a small problem brewing according to the Huffington Post:

The Congressional Budget Office has not released scores on the House health care reform proposal, despite reports that it had estimated the plan would cost taxpayers upwards of $1.5 trillion.

The report caused a stir on the Hill and stoked fears of a setback.

“THERE. IS. NO. SCORE,” e-mailed one frustrated committee aide.

UPDATE: In a statement unusual in its harsh wording, all three committees are pushing back against the story.

The Press Offices of the House Ways and Means, Energy and Commerce and Education and Labor Committees released the following statement today in response to an inaccurate report published in CongressDaily asserting that the House Tri-Committee health care reform legislation has been scored by the Congressional Budget Office:
“This report is premature and entirely fabricated. In fact, none of the reporters working on this piece contacted our press offices to fact check their story. The three House committees are still working to develop legislation and have not yet received a score from CBO on the discussion draft. As the three chairmen have made clear, our health care reform legislation will be paid for and we’re still considering revenue options.”

This is the second time that a non existent CBO report has been used to attack a proposal.  There is a possibility that there will be a report issued in the near future but as far as I can tell that day has not arrived yet.

Sorry..I digress……a millionaires tax?  This would be a surtax on people making more than $350,000 as a way to help pay for health care.  But a piece written in Bloomberg made me think of something:

While how to pay for health care is the biggest challenge, the idea of imposing a so-called millionaire’s tax to help fund the expansion is drawing fire from Republicans and Democrats. Senator Ben Nelson of Nebraska has expressed skepticism, as have House Democrats in the Blue Dog Coalition, who describe themselves as fiscally conservative.

The surtax is “not my first choice,” said one Blue Dog Democrat, Stephanie Herseth Sandlin of South Dakota. “I’ve got some concerns.”

Sounds good right?  Think about one more thing…..about 72% of the American people want substantial health reform, at is one….now of the guys spouting crap about health care and shows such concern for the millionaire tax….but ask yourself, how many of those in Washington dealing with this issue are millionaires?  My guess would be just about all of them.

Here is another thought for you to consider–the most popular cost for health care being tossed around is $1.2 trillion—damn!–that is a lot, huh?  But there is more the possible amount to be raised by the surtax is $500 billion and in 2011 the Bush tax cuts will ecpire and that would bring in about $700 billion….you do not have to be a math whiz to figure that 500 plus 700 would equal $1.2 trillion….oops….does that mean that it would be almost budget neutral?  If so, why is everyone opposed?

Just what is the hub-bub, eh?

The Battle For Tax Loopholes

Major corporations are arming for a brawl over overseas tax breaks that could be the year’s biggest clash between business and the White House.

“We’re going to spend whatever it takes,” said Brigitte Schmidt Gwyn, senior director of congressional relations for the Business Roundtable, which represents CEOs of the nation’s largest companies.

Obama last week announced a “Leveling the Playing Field” plan aimed at overseas tax shelters and other provisions that he calls loopholes for corporations. Combined with other international tax reforms planned by the administration, the crackdown would raise $210 billion over 10 years.

These were the observations written in the Politico.  They also gave us a list of tactics to watch for in the coming battle.

1. Start immediately.

The big companies that would be affected by Obama’s proposed changes have already closed ranks. He revealed his plan in his budget proposal in late March, and a group of about 200 trade associations and U.S.-based multinational firms immediately formed the Promote America’s Competitive Edge coalition. Members range from McDonald’s to computer maker Dell and financial services giant Prudential.

2. Emphasize the economy.

The main thrust of the business argument is that Obama’s proposed changes would be bad for an ailing economy. The companies argue that, contrary to Obama’s contention that multinationals use the targeted provisions to ship jobs overseas, being competitive abroad allows them to create more jobs here at home.

3. Go local.

The coalition’s lobbying strategy aims to localize the fear of job losses by having companies reach out to home-state senators and representatives. After that, the companies branch out to lawmakers from states where they have employees.

4. Go bigger.

Another message PACE members are stressing on the Hill is that any changes to deferral should happen only in the context of a broader rewrite of the tax code. What the lobbyists don’t say is that Congress is highly unlikely to undertake fundamental tax reform anytime soon. Not only are lawmakers strapped with an already ambitious legislative agenda, but the recession means there’s no extra money to smooth out the rough spots that such a major rewrite would inevitably produce.

Now we have the tactics that will be used and it will be interesting to see how they use each one of them.  I will be keeping a scorecard .

Will Obama have his way or will there be a cave to the businesses?  My money is on the cave.

Is There A Strong Wind Blowing Offshore?

God knows that I have been an ouspoken critic of some of the Obama programs, not because I dislike them but rather I feel that more needs to be done, especially for the middle class.  But I have to give him his props where they are due.

President Barack Obama’s move to curb overseas tax havens and job out-sourcing was his first major proposal in what promises to be a broad overhaul of the U.S. tax system.

“It’s a downpayment on the larger tax reform we need to make our tax system simpler and fairer and more efficient for individuals and corporations,” Obama said making his tax-have an announcement on Monday.

These tax shelters are giving US companies a way to avoid almost ALL their tax debt.

Tax shelters are countries with corporate tax rates much lower than those of the U.S., which make them popular for U.S. businesses looking to lower their tax bills.

Whereas the U.S. corporate tax rate is 35 percent, Iceland’s is 15 percent and Switzerland’s is just 8.5 percent. Many countries in the Caribbean don’t tax corporations at all. Companies shift profits to subsidiaries in such low-tax countries to avoid paying the Internal Revenue Service.

One of the most popular tactics involves setting up multiple overseas subsidiaries to move profits from high-tax countries to low-tax countries. Under so-called “check the box” rules, companies can register their subsidiaries as separate units that aren’t subject to U.S. tax rules.

In one scenario, a U.S. company could use operations in the Virgin Islands to avoid paying taxes on investments in Sweden. The company does this by setting up three new corporations: a subsidiary in Sweden, a holding company in the Virgin Islands as well as another subsidiary owned by the holding company.

A January report by congressional investigators found that 83 of the 100 largest publicly traded companies in the U.S. operate subsidiaries in tax havens, like the British Virgin Islands and Bermuda, where there is no corporate tax.Use of subsidiaries varies greatly among big corporations. Banking giant Citigroup has more than 4,000 subsidiaries, according to the Government Accountability Office, a nonpartisan investigative arm of Congress.

I will be watching and ranting about how effect the President will be on this important piece of legislature.

The New Energy Bill: What Is The Truth?

The following is a letter that I got as an email from the Friends of the US Chamber Of Commerce:

Today is Earth Day – a day when many Americans make resolutions to voluntarily conserve more energy and work toward cleaning up their local environment.

Unfortunately, some politicians in Congress are using Earth Day to ultimately push more taxes on American employers and working families.

And they’re doing it all in the name of the environment.

As we emailed you last week, President Obama has already admitted his “climate bill” will mean higher taxes on energy use for everybody in America.

Now, Congressmen Waxman and Markey have proposed a new bill to limit greenhouse gas emissions and create regulations on everything from:

New homes “with slanted roofs,” …to meet a “solar reflectance” standard if they use “fiberglass asphalt-shingle roofing.”

…furnaces, laundry machines, dishwashers, “showerheads, faucets, water closets, and urinals,” even jacuzzis.

Jacuzzis?

We’re all in favor of going green, but not at the cost of American jobs, economic recovery…and household appliances.

The talking points are being passed out for the coming debate.  But what is really said in the new energy bill?  Is this just the same “fear tactic” that the GOP has been using since the Obama admin came to power?

The Obama administration on Wednesday called a Democratic House proposal to reduce greenhouse gases and tackle climate change a “jobs bill” and an investment in new energy priorities, rejecting Republican criticism that it will undermine the economy by increasing costs for consumers.

Top environmental advisers to President Barack Obama broadly endorsed the draft bill that would cap greenhouse gases and reduce the nation’s reliance on fossil fuels. However, the administration officials cautioned that the White House will work with House Democrats to fine tune the legislation in the coming weeks.

Energy secretary Chu acknowledged that limits on greenhouse gases would increase energy production costs — both gasoline and electricity — but he said overall consumer energy bills would not increase because the legislation also is designed to spur increased efficiency. “Costs would actually be held constant,” he maintained.

The administration’s energy cost estimates are based on the government distributing 40 percent of the money collected from auctioning credits back to households to offset energy-related energy expenses. The House bill has yet to work out a emissions credit allocation proposal.

Democrats on the House Energy and Commerce Committee are negotiating among themselves on whether to scale back legislation that would impose a mandatory limit on greenhouse gases, with some conservatives and moderates calling for electric utilities to be given free pollution allowances and for more modest cuts in the targets for reducing emissions.

So it begins……as usual the idea and the proposal to help the environment was all talk….the government will do what it always does……come up with an impotent environmental bill.

The debate is falling into the same line as past debates—it happened in the 70’s, if all the good ideas had been implemented then we would not be having this conversation today.  Will it happen again?  Looks like it is headed down the same path with little resistance.

The Old ‘Bait And Hook” Ploy

Did I miss something?  Apparently, when I fell asleep the whole country got a lot more stupid while I slept.  I am talking about the Teabag protests that is being called for on April 15th.

The likes of the Newt, Dickey Armey, and their lobbyists buds are leading a new tax protest.  Basically they want to protest the increase of taxes, but the taxes they are protesting are the taxes of GW and the increases of the Obama Admin on the wealthy are still 10% lower than those of the Reagan years.

The impotent GOP and its dark minions have failed miserably to punch holes in the Obama plan for the economy, so they have reverted back to an age old ploy, the bait and hook, and are using the tired subject of taxes as the bait.  This could very well bite them in the ass just as the 11th hour personal attacks on Obama did in the last election.  The hook is the misinformation that the leaders of this organized spontaneity are spreading hoping that guest speakers like Joe da Plumber will help push.

We will see just how successful the GOP “grassroots envy” is and if the dinosaurs pushing it can use their new found resources properly.

A “Hooker” Tax

Obama is smiling…..GOP has not a clue…….in otherwords you have just about heard all the crap for one week….and now for something completely different (thanx Monty Python)…….It is Sexy Sunday…read on

Every state is scrambling to find the funds for the programs that the state’s need some have excellent ideas…some not so much.  New York is proposing a $10 “pole” tax on strip clubs.  And Nevada has their cute little idea.

A Nevada lawmaker introduced a bill to add a $5-a-session fee to the state’s prostitution industry. State Sen. Bob Coffin (D) said the measure would bring in about $2 million a year in revenue. Nevada’s legal brothel industry group supports the bill, arguing that it would guarantee the industry’s survival.

What happens in Las Vegas, Stays in Las Vegas….especially more of your money.

How About A Mileage Tax

As the 15-member commission noted, the “transportation system has deteriorated to such a degree that our safety, economic competitiveness and quality of life are at risk.” The report depicted an astonishing degree of neglect: Real spending on highways has plummeted by 50 percent since the late 1950s, even though vehicle miles traveled have increased considerably in that time; the 18.4-cents-a-gallon federal gas tax has lost one-third of its purchasing power since 1993, the last time it was raised; long-term revenue for the Highway Trust Fund, which helps pay for the country’s roads, will fall an average of $68 billion short of required levels annually. As a result, the commission wrote, there is an “unacceptable and unsustainable investment deficit in our nation’s surface transportation infrastructure.”

The commission argues,  that it’s necessary to raise the gas tax in the short term. However, as drivers switch to more fuel-efficient vehicles, the tax will generate insufficient revenue to cover the country’s transportation infrastructure needs. That’s why, after examining numerous alternatives, the commission concluded that a mileage tax was the best way to raise the necessary revenue while reducing the impact drivers have on the environment. In fact, a mileage tax could be much more effective at doing this than the gas tax. A mileage tax could be tailored so that Hummer drivers, for example, paid more per mile than Prius owners. The tax could also be levied at higher rates during rush hour or on congested highways, discouraging people from driving at times when they would spend the longest on the road. It’s no surprise, then, that groups such as the Environmental Defense Fund have praised the proposal.

Most mileage tax proposals call for a tracking device in vehicles that, according to the commission, would “function like the GPS devices that million of Americans have already installed in their cars without worry of privacy loss.” There are potential privacy pitfalls, but, as the commission wrote, “such systems can and should be designed to fully protect travelers’ privacy.” The trackers could be designed so that the government would only receive information about how much a driver owes, not where the driver has traveled. Reassuringly, a successful mileage tax pilot program in Oregon protected drivers’ privacy.

Mileage tax advocates say it’s possible that Congress will include funding to study the proposal, and possibly implement pilot programs, in a major transportation funding bill this year. That would be a good start for a promising idea.

Why Not Lower The Corporate Tax Rate?

That is the question that conservatives have been asking year after year after…….

The massive Obama stimulus is already finding its opponents to include former Republican presidential candidate John McCain, who like his Republican colleagues wants more tax cuts in the plan.  And of course, that will include the standard lower of the US corporate tax rate.  Let’s look at their argument.

Unfortunately, according to the CBO, cutting the corporate rate “is not a particularly cost-effective method of stimulating business spending” and “does not create an incentive for them to spend more on labor or to produce more.” In other words, it doesn’t create jobs.  The Repubs used the CBO to criticize the stim plan but somehow overlooked the report on their tired old mantra of cutting corporate tax.  Cherry picking facts to make a point..,.,a typical political tactic from both sides…personally I want the truth…the whole truth…and nothing but the facts…all the facts.

US business just plain sucks!  Corporations fail, people lose jobs and banks make money.  I have heard some conservs say the way to stop this erosion of American business is to lower the high corporate tax.

Better yet, WHY lower the tax rate?  I wish that they would please stop using this tired piece of garbage as a way for the US to regain its rightful place as a world leading manufacturer.  It will not help, just as the whole “free trade agreements” have not helped.  (This subject to be covered at a later date).

For years I have listen to conservatives bitch and moan about the fact that US corporations are taxed the 2nd highest in the world.  And that it must be lowered to make them more competitive in the world economy.  And now with the onset of the current economic crisis, I hear the argument yet again.  Believe it or not people are buying this whole barrel of BS.

And when these people start the lower corporate tax tango I have heard NO mainstream economist dispute the fecal they spread.  Why is that?  Mainstream economist are the high priests and priestesses of the corporate world.  Just look to the first corporate bailout of Wall Street.

Let us look at one fact that craps on the conservative concerns.  Since corporations in the US get special preferences on taxes and with all their tax incentives that Washington grants, the US collects the fourth lowest corporate taxes in the industrialized world.

A corporate tax structure that closes loopholes and requires all companies to pay their fair share would both enhance America’s global competitiveness and allow government to pay for the public programs that benefit all Americans and, in doing so, foster a healthier business climate.

Now my question is, when the conservatives start their pro-corporate tap dance, why does not someone call them on the crap?  Instead they allow the morons to continue spreading LIES and misinformation.  The American people trust their conservative reps, why I dunno, call it lack of truth or just plain stupidity, but they allow these guys to keep helping the wealthy and ignoring the workers.

Time for that to change!

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