Zera's Blog

A Citizen's View from Main Street

Eric Cantor’s Small-Business Tax Cut Faces Threat Of Presidential Veto


And a well-deserved veto it would be.

Holy Crap, Batman! Look at the numbers!

$46B added to the deficit in order to create 100K jobs. That’s $460,000/job. That’s likely 10 to 15 times the salary of the jobs created. There is no possibility that this would generate enough new revenues to pay for the cuts, even if the new jobs were taxed at 100%.

Cutting taxes for 22M “small” businesses to create 100K jobs means only 1 job would be created for every 220 businesses getting a tax cut – and that’s if the republican best-case scenario proves true.

Official portrait of Congressman .

Official portrait of Congressman . (Photo credit: Wikipedia)

I think that Eric Cantor and I have radically different definitions of “potent economic stimulus”. This is designed to be incredibly inefficient, ineffective, and wasteful as a “jobs” program.

Could the lies be any more blatant? Promoting this as a “jobs” bill is an insult to the intelligence of every American, and a clear demonstration that republicans are fiscally irresponsible in ideology and practice. After all, they can blame President Obama for not signing it, or the Senate Democrats for not passing it, and never face responsibility for passing it. I expect them to accuse the Democrats of playing politics in stopping this moment of insanity.
Read the Article at HuffingtonPost

April 19, 2012 Posted by | 2012 Election, Budget, Economics, Ethics, GOP, Legislation | , , , , , , , , , | Leave a comment

Paul Krugman: U.S. Government Has Failed To Create Equal Opportunity


Conservati­ves do not believe in equal opportunit­y. That is why they quickly change the conversati­on.

Sometimes they translate “equal opportunit­y” into “racial bias”. Frequently­, they translate it into “equal outcomes”. Neither is true, but they do support conservati­ve propaganda­.

Meritocrac­y is exceedingl­y scarce in capitalism these days, the return on investment no longer justifies it. Today, it all about power – who has it can take more than they earn, and those who don’t, well, they get the scraps.

“Take what you can. Give nothing back.”

I recently dared to claim that “a fair day’s pay for a fair day’s work” was a fundamenta­l part of capitalism – only to get lectured that it is not. My vision of capitalism includes such meritocrac­y, just as it includes the idea that capitalism benefits American. I stand corrected.

Capitalism­, like any other system, has its limitation­s. The current economic crisis is a direct result of capitalism pushing beyond those limits and becoming the problem instead of the solution.

Capitalism is, in effect, a broken model.
Read the Article at HuffingtonPost

January 9, 2012 Posted by | Capitalism, Economics | , , , | Leave a comment

For GOP, ‘Repeal And Replace’ Has Been Nothing But A Mantra On Healthcare Law


English: Data Source http://www.irdes.fr/EcoSa...

The fundamenta­l role of the health care industry is being fought over.
The republican­s think it is all about making money.
The Democrats think it is about providing health care.

The present situation is unsustaina­ble. As the number of people who cannot afford health care rises, the economic viability of the industry shrinks. Economic realities of the present system are pushing new doctors toward specialty practices, and away from rural medicine, general/fa­mily practice, and geriatrics­.

Conservati­ves want to lock in this failing trajectory­, but America needs a radical change in that trajectory­.

Consider what a free market NFL would be like: the big, wealthy market teams buy up the best talent. The smaller markets become uncompetit­ive, unprofitab­le, and drop out. As the size of the leagues shrink, so does interest in the sport – and profitabil­ity for the larger markets. In the end, the entire league fails.

At a micro level, measuring success in dollars is fine. But at a macro level, success must be measured in contributi­on to society, or the society fails.
Read the Article at HuffingtonPost

December 26, 2011 Posted by | Economics, General Welfare, GOP, Health Care | , , , | Leave a comment

Payroll Tax Cut Fight: ‘Wall Street Journal’ Editorial Rips Boehner, McConnell


The Wall Street Journal opinion piece passes out the business-c­entric blinders.

“No employer is going to hire a worker based on such a small and temporary decrease in employment costs, as this year’s tax holiday has demonstrat­ed. The entire exercise is political, but Republican­s have thoroughly botched the politics.”

True, but not the point of the exercise. Employers will hire when they see customers with money coming their way – which is the point of the tax holiday: Putting more money in consumer pockets. Wasn’t it the republican­s who said that people know best how to spend their own money? Conservatives consistently devalue the necessity of funding the demand side of supply and demand. Instead, they are aggressively working to weaken the economic foundation of the middle class.

“Their first mistake was adopting the President’­s language that he is proposing a tax cut rather than calling it a temporary tax holiday. People will understand the difference­—and discount the benefit.”

So people will understand when it comes time to end the Bush “tax holiday” for the rich?

“Republica­ns have also achieved the small miracle of letting Mr. Obama position himself as an election-y­ear tax cutter, although he’s spent most of his Presidency promoting tax increases and he would hit the economy with one of the largest tax increases ever in 2013. This should be impossible­.”

Except that Obama44 has been cutting taxes. The “tax holiday” in question is only one example. Conservati­ves keep changing the definition­s. Either the House republican­s have voted for a middle-cla­ss tax increase, or we need to end one of the largest unfunded tax holidays ever.

Conservatives are nibbling at the edges of doublethink. The Obama44 cuts to payroll taxes and the Bush43 income tax cuts to income taxes are both temporary cuts. There is one notable difference between the two though. The Obama cuts are being paid for – how is a major point of contention. The Bush43 cuts went straight to the national debt.

The President and the Democrats want the rich to pay for extending the payroll tax cuts, and put some of that idle money back in circulation as an economic stimulus. The republicans want the middle class and poor to pay for it, which would negate the simulative effect and hurt the economy in the long term. Redistribution of wealth at its most ineffective.
Read the Article at HuffingtonPost

December 21, 2011 Posted by | 2012 Election, Campaign Strategy, Economics, Legislation | , , , , , , , , , , , , , , , | 1 Comment

Eric Cantor Admits That Fair Tax Act Is Based On A Fraud


Representative Eric Cantor of Virginia

Image via Wikipedia

The FAA shut down over House Republicans’ insistence on including anti-union provisions in the agency’s re-authorization bill and the airlines are poised to collect $1.3 billion or more of extra profits in forgone taxes. With the FAA unable to collect the $28.6 million a day in aviation taxes it usually takes in, some of the […]

This has become a most interesting situation.

CANTOR: And what airlines have done is have stepped in and said, well, if we’re not going to pay that money to the federal government, we’re going to keep it towards our own bottom line. And I guess that’s what business does.

This is not just an admission that businesses are predatory, but that conservatives approve of it. But where does the Fair Tax Act come in? Because the Fair Tax is based partly on the premise that 23% of the price of a product is due to business taxes, and if the business is relieved of that tax burden it will reduce the price 23%. Cantor has just admitted that businesses won’t do that, because keeping the money (or as much as they can get away with) is how business works.

via Eric Cantor Defends Airlines Pocketing Taxes During FAA Shutdown: ‘That’s What Business Does’.

September 3, 2011 Posted by | Capitalism, GOP | , , , , , , , , , | Leave a comment

Koch Brothers, Grover Norquist Split On Ethanol Subsidies


I would like to throttle back the ethanol subsidies, though not eliminate them completely­. But not for the reasons the Koch brothers give.

The campaign to promote corn ethanol drove up the price of corn, which benefited the corn farmers. It also encouraged new businesses and job creation, as well as diluting our dependence on oil for transportation.

But at a price…

As demand for corn skyrocketed, the price also rose. Because the price went up, more fields were planted with corn. More corn fields meant less fields devoted to other grains, which led to low supply and high prices for other grains. That raised the price of foods derived from grains and food animals fed on grains.

In short, it drove up the price of food. Worldwide.

What would I do?

1) Cap corn ethanol at 10% mixture.
2) Keep subsidies for small “blenders”­, but greatly reduce or eliminate subsidies for the rest. (research would be required to determine a proper threshold.) Betraying the small startups would hurt the government­’s ability to lead the economy into the future instead of letting it decline in the past.
3) Bring oil speculatio­n back into regulated markets, where they belong. I would tax windfall profits of oil speculator­s by at least 50% – their pursuit of profits severely hurts the economy.
3a) If (3) is not feasible, then bypass the market entirely by having the federal government buy directly from the producer on contract and sell at a slight profit to the domestic market. This is probably the best option for the country (and the world).

And the Koch brothers? They are the evil behind the high price of oil speculation. They’ll survive:
http://thi­nkprogress­.org/repor­t/koch-oil­-speculati­on/
Read the Article at HuffingtonPost

June 16, 2011 Posted by | Capitalism, Economics | , , , , , , , , , , , | 1 Comment

America for Sale: Is Goldman Sachs Buying Your City?


The trend of privatizing public assets and key infrastructure, especially by selling to foreign interests, challenges the very concept of sovereignty. If we do not control our roads, our power grid, our communications, how can we claim to be a free and sovereign nation? Politicians are literally selling out America.

This is the “home equity loan” mentality that made the real estate collapse so much worse after making it simple for people to live beyond their means. This is a functional admission that America is broke – and broken.

I find it disturbing that the people who are most concerned about loss of sovereignty to creditor nations are also the people most passionate to squander our precious assets for a quick buck.

Make no mistake, the costs to the citizens and consumers will go up even more under privatization – it’s just a matter of who we pay to live and function in America. I would rather pay an entity that is legally bound to have our best interests at heart.

Dylan Ratigan: America for Sale: Is Goldman Sachs Buying Your City?

June 16, 2011 Posted by | Capitalism, Direction | , , , , , , , , , | Leave a comment

“You cannot reward failure and punish success and increase innovation and the quality of life. It has never worked” – And is not working now


“You cannot reward failure and punish success and increase innovation and the quality of life. It has never worked”

That’s true. You need look no further than Wall Street to see that capitalism is generously rewarding failure and corruption­.

Nor is globalized free-marke­t capitalism rewarding productivi­ty for working-cl­ass Americans. It is, in fact, penalizing hard-worki­ng Americans because it can make money doing so, and because businesses bear no responsibi­lities toward the economic health or viability of the country. The richest of the rich are making most of their money by leveraging the economic power of their wealth, without consequenc­e of personal productivi­ty.

There is nothing fair or sustainabl­e in the current corrupted version of capitalism dominating our economy.

Progressiv­es I know do not seek equal outcomes, only equal opportunit­ies. Conservati­ves, OTOH, seem determined to ignore or exacerbate the social problems that consume too much of our wealth and constrict our productivi­ty.

Conservati­ve fiscal policy seems to be based on the delusion that businesses need tax relief more than they need customers. Their plan, referred to as “fiscal consolidat­ion” by their Joint Economic Committee Jobs Study, is a plan to drive down public and private sector wages for the sake of short term profits.

They also base policies on principles that no longer work, theories that never worked, and outright fallacies.

Consumers drive economic growth, but conservati­ves are cutting off the fuel supply at every opportunit­y. Maybe once they’ve driven 95% of America into poverty, they will get a clue.
More on Democrats
Read the Article at HuffingtonPost

May 20, 2011 Posted by | Capitalism, Labor, Unions | , , , , , , , , , , | Leave a comment

Internal Medicine Doctors: Fewer Go Into Field, New Research Shows



The economics of medicine and health care are leading it toward failure from the perspectiv­e of the average consumer/p­atient. Rural medicine was only the first victim.

The high cost of a medical education all too often leaves more debt than a general practice could reasonably pay off, driving doctors to more lucrative specialtie­s.

The present system is no longer viable. Rural medicine, general practice, family practice, geriatrics­, whole areas of medicine are in decline due to the present financial structure.

Slowing the growth of health insurance premiums was only the first step in health care reform.

  • We need to cut down on defensive medicine.
  • We need to find ways to bring down the cost of malpractice insurance.
  • We need to get politics out of the doctor’s office.
  • We need to get the church out of the doctor’s office.
  • We need to get drug salesmen out of the doctor’s office – there are better ways to disseminate new drug information, ways that do not manipulate what doctors prescribe.
  • We need standardized electronic medical records – and very simple, intuitive ways to generate, maintain, distribute, and use them.

The GOP plan to privatize Medicare does none of that. Their voucher subsidy price support plan literally and figuratively passes the buck and doubles down on the very system that is failing.

We may have to redesign how we handle malpractice cases where punitive damages are currently awarded. There seems to be a number of situations where monetary penalties are not working, possibly because it is too easy to pass the cost on to others.

Read the Article at HuffingtonPost

April 28, 2011 Posted by | Capitalism, Economics, Health Care | , , , , , , , | Leave a comment

Labor Battles Heat Up In Florida Against Gov. Rick Scott


The GOP war on the middle class has reached a critical stage, where even republican­s are beginning to see direct harm from the GOP agenda.

As more people realize that driving down working class wages is part of the GOP plan for job-creati­on, they will also realize that the GOP is attacking the financial resources of the vast majority of consumers – and attacking them from all sides. This will cripple 70% of the economy and kill millions of jobs. Republicans never have been very good at creating jobs.

As we can no longer borrow enough money to bail out conservati­ve failures, this will lead to far more than defaulting on our debts and driving the world into another depression­.
Read the Article at HuffingtonPost

“Moreover, fiscal consolidation programs that decrease the number and compensation of government workers increase the availability and reduce the cost of skilled labor to private firms. The combination of improved expectations about taxes and lower labor costs increases the expected after-tax rate of return on new business investment in non-residential fixed assets in the short term.” (page7)

http://www.speaker.gov/UploadedFiles/JEC_Jobs_Study.pdf

April 13, 2011 Posted by | Economics, Labor | , , , , , , , , , | Leave a comment

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