Monday, May 29, 2006
POLITICAL POSTURING AND SUBTERFUGE
That which purports to be the final week of this legislative year opens in special session this week to accomplish works that should and would have been done already were it not for political posturing and subterfuge. Those who would play games with the the welfare of Oklahoma, its people and its future, revel in the political spectacle and the excitement of tactics and tumult. More knowledgeable persons grimace at the sight, and they cringe at the thought of the harm which may befall our people.
We have gridlock between the house and senate. Why?
Simply put, the gridlock has been created by the political ambitions of republican leaders of the house. Several of these and their friends are running for political offices this year, such as governor, lieutenant-governor, congressman, treasurer, and the like. They want to make a name for themselves with their party base.
Further, these republicans want to appeal to their donor base -- the business and money class. What is the deadlock all about? It is about these republican legislators wanting to give a tax break for rich campaign donors at the expense of education, mential health, prisons, social services, colleges and universities, and all state services.
The democrat leadership in the senate has stretched to make income tax cuts. They propose an increase in the standard personal deductions for individuals and families up to the federal level. It will cost the state, but it is a fair move -- giving an equal tax break to both the rich and the middle class. For middle income families and for high income persons alike, the tax break would be just a few hundred dollars.
The house republicans want a 1% reduction for the income tax rate, leaving exemptions alone. Their proposal will amount to nothng for lower income persons, less than couple hundred dollars for most middle income families, but several thousand dollars for high income filers. (The reason for the difference is that the rate applies only after basic deductions are made.) That tax cut is for those who donate to their political campaigns.
There is a lot of rhetoric, and a great deal of subterfuge, about the house sponsored tax cuts. First, there is the pretension that it is for everybody. It is not fair, of course, and it hurts all who use state services -- the children, the mentally ill, the dysfunctional families, the college kids, safety from criminals -- all of us.
Second, there is subterfuge with beneficiaries -- even the wealthy donor base they are trying to court. Why? Because much of the state tax cut would immediately raise the federal taxes of those who profit from it. (State income taxes are deductible from federally taxed income, a deduction used by the wealthy.)
Let us quit playing political games with our future!
Dr. Edwin E. Vineyard, AKA The Militant Moderate
That which purports to be the final week of this legislative year opens in special session this week to accomplish works that should and would have been done already were it not for political posturing and subterfuge. Those who would play games with the the welfare of Oklahoma, its people and its future, revel in the political spectacle and the excitement of tactics and tumult. More knowledgeable persons grimace at the sight, and they cringe at the thought of the harm which may befall our people.
We have gridlock between the house and senate. Why?
Simply put, the gridlock has been created by the political ambitions of republican leaders of the house. Several of these and their friends are running for political offices this year, such as governor, lieutenant-governor, congressman, treasurer, and the like. They want to make a name for themselves with their party base.
Further, these republicans want to appeal to their donor base -- the business and money class. What is the deadlock all about? It is about these republican legislators wanting to give a tax break for rich campaign donors at the expense of education, mential health, prisons, social services, colleges and universities, and all state services.
The democrat leadership in the senate has stretched to make income tax cuts. They propose an increase in the standard personal deductions for individuals and families up to the federal level. It will cost the state, but it is a fair move -- giving an equal tax break to both the rich and the middle class. For middle income families and for high income persons alike, the tax break would be just a few hundred dollars.
The house republicans want a 1% reduction for the income tax rate, leaving exemptions alone. Their proposal will amount to nothng for lower income persons, less than couple hundred dollars for most middle income families, but several thousand dollars for high income filers. (The reason for the difference is that the rate applies only after basic deductions are made.) That tax cut is for those who donate to their political campaigns.
There is a lot of rhetoric, and a great deal of subterfuge, about the house sponsored tax cuts. First, there is the pretension that it is for everybody. It is not fair, of course, and it hurts all who use state services -- the children, the mentally ill, the dysfunctional families, the college kids, safety from criminals -- all of us.
Second, there is subterfuge with beneficiaries -- even the wealthy donor base they are trying to court. Why? Because much of the state tax cut would immediately raise the federal taxes of those who profit from it. (State income taxes are deductible from federally taxed income, a deduction used by the wealthy.)
Let us quit playing political games with our future!
Dr. Edwin E. Vineyard, AKA The Militant Moderate
Sunday, May 21, 2006
MEMORIAL DAY, 2006
Memorial day is set aside for remembeing those who have gone before us, particularly those lost in one of the nation's wars. It has been observed by historians that World War II may well have been the only (almost) universally popular war this nation has ever fought. Having served in WW II, the Militant Moderate is old enough to remember several wars, and this would be his own observation, as well as his conclusion for the study of history. While there were a few detractors, who thought that Mr. Roosevelt had in some way conspired to bring the war upon us, these were ignored by the masses, the media, and the intellectuals.
At the age of 18 the Militant Moderate was at the U.S. Naval Training Station at San Diego, preparing for later duty as a ship's radioman aboard a destroyer and a troop transport, when he was called to headquarters and told that his only brother had been killed while on a bombing mission in Italy on December 20, 1944. Having experienced the tragedy of war, it is his view that most wars should not be popular. Further, it is a good thing that most are not, lest we enter them with too little restraint.
The poem below was written in 1999 in memory of S/Sgt. Louis R. Vineyard (1922-1944), who is interred in the beautiful military cemetery at Nettuno, Italy, just a few miles from the beach and the town of Anzio. It is an idyllic, tranquil, and beautiful place.
BENEATH ITALIAN SKIES
Beneath Italian skies my brother lies,
Amidst the crosses set in rows of white.
East, west, north, and south they rise
In perfect symmetry, gleaming bright.
Beneath grassy green the earth contains,
Nestled in its bosom in restful sleep,
That essence which in this world remains
Of brave ones whose memory crosses keep.
The rowed trees, evergreen, speak of life,
But the rowed crosses speak still of death,
Bodies torn and broken in midst of strife.
Crosses speak for those who have no breath.
Beneath Italian skies my brother lies,
His name carved clear on a cross of white.
The quiet beauty of his resting field belies
The enduring tragedy of war's great blight.
Dr. Edwin E. Vineyard, AKA Militant Moderate
Memorial Day, 2006
Friday, May 12, 2006
THE GOOD, THE BAD, AND THE UGLY
The Militant Moderate has just this week observed the good, the bad, and the ugly in Oklahoma and American politics. Unfortunately, there is more bad and ugly than good about politics most of the time, and this past week has been no exception.
In Friday's edition of the Enid News, something good was quoted about Representative Mike Jackson. An official of the public employees association commended Jackson for answering mail and returning his phone calls about matters concerning state retirees. The Militant Moderate would like to add his own commendation, and that of retired educators and the Council of Retired College and University Presidents, to Jackson for the personal interest he has taken in retiree welfare and security.
Representative Jackson's attitude and his efforts have been one of the bright spots in state politics this session. Mark him down as GOOD. The House retirement laws committee chair, a member of the same political party, has been quoted as expressing no empathy for retirees, and saying that they knew what they were getting when they retired. Put Rep. Reynolds down as BAD.
While the nation drowns in deficits and accumulating debt, our congress was busily engaged in extending tax cuts for the rich on income derived from capital gains and stock dividends. How many of you own stocks outside your IRA or pension fund? How many of you buy and sell stocks and income property regularly? Only 5% of us have capital gains to report to IRS, and 14% declare dividend income. That $200 billion tax cut was just for the few. That's BAD.
Now, how about the UGLY? While racking up low ratings from the governed, falling down to 31% in one poll and 29% in another, Mr. Bush is busy pushing through the deficit budget bill with more tax cuts for the wealthy. In addition to his misdeeds at home and abroad, for five years he has done nothing to stop the increasing flow of illegal immigrants across our borders. He has refused to enforce existing laws, although he has sworn to do so. All of that is BAD, but for the really UGLY part -- news sources revealed this week that he has been illegally collecting a data bank on the phone calls of "tens of millions" of Americans. Most of us are in his data bank, and we don't even have Bin Laden's phone number. Now I wonder if that crank call the other night came from Al Quaida or the NSA?
Money has corrupted our politics. This is true in Oklahoma and nationally. More specifically, campaign money has corrupted our government. That is UGLY. Elected representatives are forced to raise money to run for office, and they become beholden to those who give. Businesses, professionals, the upper class, and corporations (indirectly) give big dollars to campaigns. Common people give little. This explains most of the tax cut proposals, doing away with the inheritance tax, and similar pecuniary efforts. Serving the source of campaign donations is not only UGLY, it is an EVIL in our political system.
Dr. Edwin E. Vineyard, AKA Militant Moderate
Friday, May 05, 2006
TAX CUTS BENEFIT THE REALLY RICH
Under pressure from the president the republican controlled congrss is passing an extension of tax cuts for the wealthy. The effects of these tax cuts are worthy of examination.
In an earlier blog called "Tax Policies Grow Wealth," the Militant Moderate provided an analysis of how the current administration's tax policies have encouraged the growth and the concentration of wealth within a limited sector of our people. This is another attempt to offer information on the effects of reductions of tax rates at upper income levels, principally the reduction of tax rates on earnings from investments.
Republican congressmen have defended lower rates on dividends and capital gains by use of misleading statistics such as, "Nearly 60% of taxpayers with incomes less than $100,000 have income from financial investments." IRS records show only 5% receive capital gains and 14% get dividends. Average people hold their stocks in non-taxable pension and IRA accounts, and thus do not benefit from these tax cuts. The truth is that only a few taxpayers benefit from investment income rate reductions.
The cost of making just investment tax rate cuts permanent is estimated to be $200 billion over the ten year period. This is highly significant, considering deficit problems.
Taxpayers with incomes over $10 million per year have had tax reductions of just over $1 million average. While averaging $26 million in income, this group paid about the same share of their income in taxes as did those who earned just $200,000 or so. This was primarily because of the lowered rates on investment income produced from wealth.
One-tenth of one percent (one in a thousand) of Americans with incomes of $1 million or more reaped 43% of all the tax savings from investment income. This same group had 10% of the benefits of regular income tax rate reductions. Thus, wealth makes wealth, and lower investment tax rates accelerate the process.
Through these methods the really rich are pulling away from the barely rich, and both move up and away from the shrinking middle class, whose union jobs are taken by corporate moves, outsourcing, and immigration.
In Oklahoma and nationally, republican legislators are advocating doing away with inheritance taxes entirely. Again, the effects of this should be analyzed. One group of economists has concluded that if the inheritance tax were abolished, then by the third generation fewer than 15% of the people would have over half the wealth, becoming more concentrated thereafter. Such is the traditional economic breeding ground for hostile, violent political revolutions.
Dr. Edwin E. Vineyard, AKA Militant Moderate
