FOX again

            People who think FOX is “Fair and balanced” should not watch it because they will buy the distortions, inaccuracies and lies; but for those who know that this is entertainment, not news, it can be fun.

Lou Dobbs has his own show on FOX which I haven’t watched but he is frequently brought in to other shows for his political insight. A persistent theme on FOX is ridiculing Obama supporters for blaming Bush for all the problems of the past four years, especially the economy. It gave me a good laugh when he said last Friday that the economy is coming back because of the Bush tax cuts which President Obama wants to do away with. My initial bubble of mirth came from the hypocrisy that Bush should not be blamed for anything bad but he should be credited with anything good. Here is Lou blaming Obama for wanting to raise taxes on the wealthiest because their low taxes are the reason the economy is rebounding.

            That’s also funny because the tax cuts came in 2001 yet they somehow did nothing to avert the recession that began in December 2007 and by the time Obama took office unemployment was up to 7.8%. It had gone up steadily from 5% to 7.8% in Bush’s last year in office. Now, in November 2012 Lou, credits The Bush tax cuts with turning the recession around. I mean, come on, that’s funny.

            I recognize that saying the economy is “rebounding” is an overstatement since unemployment is really just back to where it was when Obama took office  but in the ensuing 4 years it got as high as the scary 10% figure.

            Since I do try to be fair I’ll tell you that unemployment in 2006 and 2007 was below 5%; so we could point to the tax cuts made 5 years before as being responsible for those two years. But then, again, unemployment when Bush was elected was 3.9%  (4.2% when he took office but I couldn’t resist mentioning that it was below 4% for the 4 months prior to his taking office and went above 5% for the four years after the tax cuts.

            I can hear Lou now, “Don’t confuse me with facts; my mind’s already made up.” That should be the FOX theme rather than fair and balanced.

Raise My Taxes, Please!

Dear Senator Snowe,
I just read the "Snowe Report" and I agree that the LIHEAP (Low Income Energy Assistance Program) should be funded at a higher rate than in the budget and that deficit reduction is important though the juxtaposition of these two statements in your report is a bit ironic, don't you think? Every spending program (like LIHEAP) is important to some people somewhere which is why spending cuts are so difficult.
There is one thing that the majority of people all across the country and in Maine agree upon as a deficit reduction measure yet you don't mention it. Why? Why don't you support raising the income tax on those of us who are doing well? The answer I keep hearing is that it will kill jobs, that the wealthy who create jobs will not bother to make more money and thus create more jobs if they are taxed too much. That is a bogus answer. We have had tremendous job losses under the low tax on the wealthy for 8 years running which should prove that argument to be spurious.
Did you know that the highest income tax bracket was over 90% throughout the decade of the 50s and that was a time when a family could be raised on one income. Perhaps the reason middle class people could get by on one income in that decade was because there was little incentive for entrepreneurs, business owners, corporate boards, bankers and the like to make gross amounts of money so they paid better wages and charged less for their products and services. That explanation, at least, makes a lot more sense than saying that taxing incomes over $250,000 will stifle job creation.

Dear President Obama

Dear President Obama,
You need to take a lesson from Ross Perot and make up some simple charts to help us understand government economics.
1. Budgets are balanced by taking in more money and/or spending less.
2. Your government gets money by taxing income so there are two ways to increase revenue, raise taxes and/or raise income. Let’s look at the two ends of the spectrum super rich and those near or below the poverty level.
3. Last year the median income for the top executives of the top 200 corporations was $10.8 million. There is only so much these people can spend even if they eat in the fanciest restaurants, buy yachts and cars and extra houses. They invest the rest. Investment in businesses that create jobs is a good thing. The stock market is getting closer to the record highs before the recession so you would think there would be more jobs. That hasn’t happened. Clearly taking money away from the super rich is not going to hurt job growth. We should raise their taxes.
4. Those near or below the poverty level will spend any money they can get their hands on for necessities like food and shelter. Cynics might say they will spend it on frivolous things like flat screen televisions but whatever they spend it on, it becomes income for someone else and that income is taxed. Let’s say they bought the TV, the people who sold the TV got money, the people who stored the TV got money, the people who imported the TV (this would be an even better example if the TV were made in the USA) got money and all of those people had income on which they paid taxes thus more money came into the government helping keep our national debt from getting even larger.
5. Did the stimulus package work? Absolutely. Without it unemployment would have gone over 10% and we would have gone into a depression. While it wasn’t enough to bring down the unemployment figure, it did keep it from getting much worse.
6. We would all like to see the federal government spend less BUT we need to be careful we don’t make the recession worse by taking money out of the economy where people will spend it. When we take jobs away from teachers, firefighters, police, and others employed by our towns, states and the federal government we are adding to the unemployment problem. When we take money out of the hands of people who will spend it because they need to in order to live we are also decreasing tax revenue.
These are simple facts, Mr. President. Explain them to the people. Maybe even Congress will understand. My senators, even though they are moderate republicans, won’t listen to us. If we are going to vote reasonable people into office, we need your help, dare I say leadership?

How to Curb Greed

When I ask people to name the best decade, the 50s are the most popular—the age of Leave it to Beaver, Father Knows Best and Ozzie and Harriet. I graduated from high school in 1956 and I certainly wouldn’t argue with that choice. What made it so good—family values, families with just one-wage earner, low taxes, low unemployment. One of the reasons I propose is not true. Family values is a subjective judgment though I suspect most would agree that “family values” were higher in the 50s than now. I can’t find statistics to back up my belief that the percentage of single-wage-earner households was higher in the 50s but it certainly was on television. There was low unemployment--the lowest average unemployment for the decade than any decade since (4.5%). The one that isn’t true is low taxes, at least for the wealthy. The highest tax bracket throughout the 50s was 91%. In fact, in all the years Americans have been taxed there were only two years, 1944 and 45, when there was a higher tax bracket.

I believe there is a direct correlation. The incentive to make millions of dollars when you are only allowed to keep 9% is much less than if you get to keep 65% as currently. Some corporate CEO who might today have gotten a 17 million dollar bonus, might, in the 50s, have said, “Never mind. A million is enough.” Where would the other $16,000,000 have gone? Maybe to share holders. Maybe to consumers of the produce the corporation produced. Either way it would spread the wealth around and make greed less likely.

There is no rational reason for making more than $1 million a year. Bring back the 91% tax on income over $1 million. For those who say that would slow recovery from the recession I suggest you go back to the unemployment table. The decade with the highest rate of unemployment was….can you guess? The 80s, of course. The average for the 80s was 7.27%. I guess there wasn’t enough trickling down. The most recent decade was 5.54%.