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The Senate voted 81-19 yesterday to accept the $858 billion Obama/McConnell tax deal. California Senators Dianne Feinstein and Barbara Boxer voted with the majority but for varying reasons. Boxer attributes her support to provisions that will extend breaks for alternative energy sources. Feinstein says that while she doesn’t like the bill, she’s voting in the affirmative because it will create much needed jobs. Both of these positions hold an element of truth, but in the final analysis are, in tamed vernacular — equine feces!
A little simple arithmetic will help to appreciate the insanity of what these politicians would have us believe. Taking Feinstein’s rationale, she’s in favor of the “deal” because economists told her it would increase the GDP by .6 to 1.2 percent, which she claims will translate to 600 thousand to 1.2 million jobs. So in other words, it makes sense to the Senator to add $858 billion to the deficit in order to sustain jobs at a best-case rate of $715,000 per job. Does that make any sense at all?
Math for Senator Boxer’s justification is even worse, since she claims the energy provisions will only result in “tens of thousands of jobs.” Although to be fair, she does also identify help for the middle class as another motivator.
The problem with both of these positions isn’t really the math; it’s the fact that they’re really nothing more than an exercise in rhetorical gymnastics used to justify support for a bad piece of legislation. While this deal is being spun as “temporary,” the tax cuts are anything but. Set to expire in two years — during a presidential election — the politicians who lacked the will to terminate them now are not going to do so then. If they really were intended to be temporary, they would have been extended for a single year, where there was at least a chance of it happening. The sad truth is that this deal will seriously impact a federal deficit that’s already teetering at record highs, and it will do so for dubious benefit.
Center to the “deal” are the unemployment benefit extensions that the Republicans have held hostage pending the approval of tax cuts for the wealthy. Few disagree with the need for this action that will enable those who have not yet exceeded the 99-week maximum to continue receiving payment. Economists all agree that it is of the highest order of economic stimulus, returning as much as $1.90 for every dollar spent. But the 13-month extension accounts for only $56 billion of the package, and although it may be the right thing to do, it does nothing to address long term unemployment issues.
Other items included in the remaining $802 billion also have legitimate justifications. For instance, the reasoning behind extending the Bush tax cuts for the middle class, which is the single largest piece of the tax deal pie, is sound. The situation is that 70% of the GDP is fueled by consumer spending, and because the middle class has been so severely squeezed by the recession, if their taxes were to increase, it would translate directly into a reduction in GDP. And when the GDP drops, jobs go with it.
The 2% reduction in payroll taxes follows the same logic as the extension of the middle class tax cuts. The money will mostly go to people who have already tightened their belts in order to make ends meet and will therefore be spent immediately and returned into the economy. Estimates actually place the return as high as $0.90 for every dollar spent, which is more than double the estimate for the general tax cuts. But at a cost of $120 billion, there are much more effective ways to use the money. And none of the other possibilities have the potential downside of tying Social Security to the general fund, which could lead to future arguments to dismantle the program.
Provisions included to extend certain tax credits follow the same reasoning, with each putting money in hands that will spend it. And the provision that will allow businesses that make investments in 2011 or 2012 to accelerate deductions by expensing 100% in the current year is really more of a shift than an outright loss of revenue.
But the sound reasoning and rationale component of the deal ends prior to evaluating the tax cuts for the top 2% and the estate tax reduction for the top one-tenth of 1%. Both of these upper crust tax cuts will reduce federal revenues, thereby adding to the deficit and requiring further indebtedness to foreign nations, like China. But they will do so, not for the purpose of stimulating the economy, as the money is much more likely to be saved. Neither will the savings be extended because the recipients have been hurt by the economic collapse and are in need. No, the tax cuts for the rich are included strictly because they are the ransom demanded by Republicans in order to do what’s right.
The sole justification for the tax cuts for millionaires and billionaires, beyond the fact that the Republicans demand it, is because the money belongs to these people. That’s it. Ask any Republican — it’s their money and the government doesn’t have the right to take it. Never mind that the wealth people accumulate is not created in a vacuum. That wealth is the fruit of both their individual efforts and the societal system that ALL Americans work to support and maintain. Never mind that taxation is the means by which the citizens of a free society fund the government in order to provide the services required to sustain that system and enable the accumulation of wealth.
This is the classic “redistribution of wealth” argument, and it’s as invalid now as it was the first million times it was spoken. Those who present the “redistribution” argument choose to give credit disproportionately to the individual, which is obviously nonsense. It takes an entire society to sustain a system of opportunity. The problem in America today is that too many of the wealthy and would-be wealthy want to extract the benefit of our democratic society but don’t want to pay back into its sustainment.
This is precisely the reason that our infrastructure is crumbling and the wellbeing of the average American is in serious decline. The problem that’s taken root in America over the past 30-plus years is unethical redistribution of wealth — from working Americans to the top 2%. It is that concentration that’s behind the recent collapse and the present stagnation. We are experiencing the result of over-extraction of wealth. It is therefore the responsibility of the system — the one that so many people have used to accumulate said wealth — to adjust and bring back employment and prosperity to those who have been exploited.
America needs jobs, and we need fair taxation. The Obama tax deal delivers neither. Working Americans will be glad to pay more taxes — if they are just allowed to work and share in the huge increases in productivity that have lined the pockets of the wealthy. Make no mistake about it: there is no justification, rational or moral, for the Republican-demanded tax cuts. They’re nothing but the looting of America by the new Robber Barons.

- Image by dsb nola via Flickr
Article first published as Tea Party; GOP Friend, Foe, or Foil? on Technorati.
Many people scoffed when the Tea Party first appeared on the political scene last year. The nascent movement was labeled “fringe” and dismissed as inconsequential. But now, more than a year and a half later, polls show around 20% of Americans claim to be a part of the Tea Party. The growth and success of the movement cannot be denied. Thus far, the GOP has been the beneficiary of the movement’s enthusiasm. But as we press nearer the November election, one serious question remains unanswered — is the Tea Party really helping or hurting the GOP?
When the movement originally began to gather steam, certain prominent figures in the Republican Party took notice and positioned themselves to leverage the excitement. Former House Majority Leader, Dick Armey was amongst the first, throwing the support of his FreedomWorks behind the Tea Party, he embraced the movement and helped craft their “Contract from America” in time for “Tax Day” 2009.
Sarah Palin was another early proponent. The former Republican candidate for vice president actually resigned her post as Governor of Alaska three months after the “Contract” was formed and soon thereafter became a vocal advocate of the movement. The half-term governor solidified her position as co-figurehead of the movement, sharing her influence with Fox News political barker Glen Beck, when she appeared as the keynote speaker at the Tea Party’s inaugural convention this past February.
The first fruits of the movement were harvested shortly before the convention, when Scott Brown rode a Tea Party endorsement into being the first Republican elected to represent Massachusetts in the Senate since 1972. Tea Partiers basked in the glory of the first successful candidate, but in certain ways, the thrill was short-lived. Being more than a little moderate for the Tea Party, before February was done, Brown split from the GOP and became one of five Republicans to vote in favor of the jobs bill.
Since February, much more has happened. Sarah Palin has been fully engaged in the Tea Party speaking tour, often handing out her sought after endorsement and amassing a respectable record of primary victories. To date, Palin has made 43 endorsements of which 24 have been for Tea Party candidates, and 23 have been women and 21 men. She’s presently batting nearly .700 with 25 victories and only 11 losses, and just over half of the wins were by Tea Partiers.
But in the midst of the reverie surrounding the trail of victory are growing concerns that the momentum may be taking the Republican Party far right — right off the edge of a cliff. Four of Palin’s endorsees, including her most recent, are signaling cause for alarm. One early endorsement, Rand Paul of Kentucky, spoke out against portions of the Civil Rights Act that made it illegal for business owners to discriminate against customers on the basis of race. Another of her Tea Party candidates, Sharon Angle of Nevada, ran on the “transitioning out” of Social Security and the elimination of the “unconstitutional” Department of Education.
Palin’s more recent endorsements include Joe Miller, Senate candidate from Alaska, another advocate for privatizing Social Security and eliminating the Department of Education, who also believes that unemployment benefits are unconstitutional. But the crown jewel of Palin’s string of primary victories has to be Christine O’Donnell, who formed a successful underdog campaign and beat former Republican Congressman Mike Castle to be Delaware’s Republican candidate for the Senate.
O’Donnell, who also ran for the Senate in 2006 and 2008, is an avowed fiscal conservative who has spoken strongly against “spending money we don’t have,” yet seems to have trouble practicing what she preaches. Accused of criminal activity, the records indicate that O’Donnell misappropriated campaign funds, spending the money on personal expenses. She is on record stating that “America is now a socialist economy” and is on video talking about her teen years dabbling in witchcraft and how she believes that scientists experimenting with cross-breeding have created mice with “fully-functioning” human brains.
Obvious to the most casual observer is the fact that all of these Tea Party candidates are empty vessels. They consistently take positions popular to the far-right and routinely state opinions with little to no basis in reality. Not a one of this gang of four believe that global warming is an issue for America. They are all against abortion, even in cases of rape and incest. Each of them is in favor of radical shrinking of the federal government and further cutting of taxes without being able to articulate how they would achieve the balanced budgets they promote. They’re all against cap and trade, in favor of the repeal of the healthcare legislation, and none of them will speak to the media except under the protected umbrella of Fox News.
These bagger candidates are the Frankenstein monsters of the leadership of the Republican Party. People like Armey, Gingrich, McConnell and Boehner seem to think that words and rhetoric are transitory, that they can spread whatever lies, distortions and half-truths they wish in order to promote their positions and obfuscate the truth. But the fact is that speech has creative power: it triggers emotional and intellectual responses that impact perception, direct opinion and in the end define political “reality.”
The problem for these Republicans is that their complete lack of veracity and substance has created a movement fueled by belief in a veneer of talking points. There is no substance beneath the surface. Guys like McConnell and Boehner, Gingrich and Demint all know how things really work, but none of them have spoken the truth in years. When you profess to support average people but in reality sacrifice them for the top 2%, you can’t speak the truth. So, now the dishonesty of these self-serving manipulators has taken the form of an army of zombies who have nothing to offer but the talking points through which they were created.
Palin, Paul, Angle, O’Donnell, or Miller, it doesn’t matter. None of them have a clue beyond their “government is bad” rhetoric. They all actually believe that tax cuts pay for themselves. They buy into “small government” blindly, without even evaluating what it might mean. The country needs thinkers, and the Tea Party is giving us winkers. What will they do when more than a sound bite is needed? Sadly, they’ve all gained power because American culture is so easily exploited, never looking for substance or asking for facts. Hopefully, they will fulfill their Frankenstein destinies and ruin their creators before they have a chance to govern and take a real toll on the nation.
- The Goldman Sachs: The New Center of American Government — Image via Wikipedia
There are 537 elected officials representing all Americans in our federal government. So, disregarding the inequalities that result from congressional district sizing and the 2-per-state allocation of Senate seats, this means that each elected official represents, on average, around 575,000 Americans. This number alone should raise an eyebrow or two, in that it begs the question of adequate representation, but while the ratio does further dilute the voice of the average person, its impact pales when compared to the effects of a government sold to the highest bidder.
Washington, long ago, lost any semblance of legitimate representation of The People. Being one voice in a half-million may seem weak, but the reality is that the average person’s voice is far smaller than that. Both the Presidency and the Congress of 21st Century America have been purchased, and unless you have tens of thousands of dollars to contribute to election campaigns, you really have no voice at all.
Elections are costly. Contributions for the 2008 federal campaign totaled $5.3 billion. The average winner of a House seat spent $1.4 million while the average Senate seat went for $8.5 million. Sure, there are many small donors; in fact, about half of the 2008 money came from donations of under $200. Unfortunately, that means the other half came from larger donations, with $1.9 billion coming from donations over $2,300, and $974 million in large donations — over $10,000.
It’s these large donations that do more than merely help support a candidate; they are the currency of government. The average Joe, who donates $10 or $25 to their favorite candidate, expects nothing specific in return, but such is not the case for the Goldman Sachs of the world. As expected, in the shadow of the housing/banking crash, the 2008 election was largely financed by big banks, insurance companies and real estate. The largest contributor to the 2008 election, this sector donated $477 million. And companies like Goldman, who topped bank spenders at more then $7 million, and JPMorgan and Citigroup, who each coughed up over $5 million, don’t spend money unless it improves profits.
The fact that no financial reform legislation was passed, for more than two years after Bear Stearns crashed and started the collapse of the economy, is prima facie evidence of the power of campaign capital. It’s no coincidence that the top donor for Sen. Chris Dodd (D-CT), the chair of the Senate’s committee for banking and housing, is the securities and banking sector — the very people he’s charged to oversee. The nearly $5 million investment the sector made in contributions, over the 2008 and 2010 cycles, to Dodd and the ranking committee Republican, Sen. Richard Shelby (R-AL), not only helped stall legislation for years, but it paid for the diluted excuse for “reform” that was finally passed.
This is but one example of business-as-usual in Washington. Healthcare legislation wrangled its way through Congress for most of 2009, while the Health industry was busy greasing the skids with $84 million in campaign donations. Their investment was not in vain. It actually produced excellent returns, netting 32 million new government sponsored patients and nothing in the way of real reform. Energy, Communication/Electronics, Trial Lawyers, they’re all present, and they’re all spending millions to make sure that any legislation that’s passed is favorable to their business profits. With government so clearly under the control of big-business, is it any wonder why the 61.7% voter turnout for the 2008 election was the high-water mark since 1968?
American voters feel increasingly frustrated with Washington politics, and there’s good reason for it. Regardless of which party people support, it’s becoming more evident with every passing year that the will of The People is being ignored, their voices unheard beneath the din of the corporate campaign hijacking.
Angry conservatives are already gathering under banners proclaiming, “Take our country back!” But the loss of voice in Washington politics isn’t a partisan issue. Campaign funding for the 2010 election, and the control that goes with it, is nearly split down the middle between Democrats and Republicans. There may be legitimate political differences being liberal and conservative voters, but neither is served when special interests have bought and paid for the federal government.
If indeed the country is ever to be taken back, Americans from left and right must join forces on this critical issue. Together, they can put an end to big-money control of Congress. It’s time voters stop falling for the blatant misdirection of party talking points and start demanding results. The American people can take back control of the nation, and the surest path to that end is through real campaign finance reform.
The sad truth is that while votes are the mechanism by which politicians are elected, it’s money that makes campaigns — and campaigns are the means through which votes are secured. Today’s system ensures that elected officials are beholding to the big-money donors who finance their election. The People are but pawns in this game of quid pro quo, and they will remain so until and unless they unite and change the system that allows this corruption to exist.
Like students left with the huge loan balances, the present system ensures that our elected officials are left with huge favor balances on their books. To think that politicians will bite the hand that feeds them and vote against the interests of their big-money benefactors is delusional at best. To take back the country, The People must take back the Congress, and to take back the Congress, the politicians must once again be beholding, not to influence peddling special interests, but to the people who elect them. One person, one vote must again reflect the control of the nation.
There’s only one way to make this happen, and that’s through public financing of elections. It’s already working in several states in the form of Clean Elections. And there’s a bipartisan bill in the House and also the Senate to bring similar reform to Washington. Public financing will require that candidates secure significant funding in small donations from their constituents before qualifying for public money. But once established as a viable candidate, public funding would be allocated in amounts sufficient to finance a competitive campaign.
The power of such a system is obvious. For a relatively small investment, American voters could actually ensure that elected officials would owe their loyalty to no one but the people who elected them. It would in essence break the favor bank.
But the benefits of public campaign financing don’t end with properly placed loyalties. The investment would also pay dividends in productivity, as it would mitigate the demand for fund raising by incumbents. In the present system, officials start focusing on the next election cycle as soon as they’re elected. Estimates place fund raising efforts for members of Congress at 20% to 40% of their time. With so much misuse of time, is it any wonder they get so little done? It’s like a business that pays its employees to look for another job two days out of every week.
Public campaign finance is not a silver bullet; it won’t by itself bring the federal government back under the control of The People, but without it — there is no hope of that happening. The removal of special interest influence on election campaigns is a critical first step for Americans to take back the country. Couple public financing with preferential voting, which would allow a significant increase in votes for third party candidates, add congressional term limits and weld shut the revolving lobbyist door, and America may once again return to a government of the people, by the people, for the people.









