Thursday, March 31, 2011

“Fiscal responsibility” is Republican for “I don't want to”.


I have never heard a Republican talk about the budget when they are advocating a program they want. No Republican seems to worry about the 3 trillion that the our current wars cost will end up costing us. No Republican politian worries about a new tax preference that benefits only the wealthy. Regan's budget was cut by the Democratically controlled congress every year but to hear him tell it it was the Democrats that caused the tripling of the National debt under his administration.

Wisconsin's Gov Walker never mentioned the Budget when he cut corporate taxes by 100 million. Cutting local teachers take home pay by 5% ,when Wisconsin already pays it's teachers less than the nation average, while sighting a “Budget Crisis”, has much less to do with helping local school budgets that it does in a political calculation of who is his political power base.
How long are we going to let the Republican position that only Democratic concerns cost money go unchallenged.

Wednesday, March 9, 2011

The Capital Gains Tax Preference Harms Free Enterprise


Normal income tax rate max out at 35% while capital gains tax rates are only 15%. This never seemed equitable to me. Why should income derived from owning be favored over income derived form doing.
I don't get to deduct the cost of collage from my income tax. The principal should be that a citizen should contribute a portion of his living to maintain the collective functions of society; even, and maybe especially, if he didn't earn it.

The biggest problem I have with this tax inequity is the harm it does to our free enterprise system. Gone are the days when a stockholder invested in a company and revived a share of the profits in return. Very few companies pay dividends anymore since dividends are taxed as regular income. Investors want capital gains income instead of regular income. Companies can not distribute earnings to shareholders; the goal is to increase shareholders value so that when the owners sell they will make a profit and the income will be taxed at the lower rate. Companies are forced to grow to the level of their incompetence. Corporations today either grow or die as the saying goes; fueling this endless cycle of mergers and acquisitions. The founders of a company likewise are motivated to sell the company when they want to realize the benefit of what they have built.

Corporate CEO s don't want a larger salary they want stock options and are motivated to manipulate the stock price for short term gain.

By shifting the tax burden from those that a baling out of a company to those that are creating a company we harm our ability to create the new goods and services needed to grow our economy. Ask yourself when did Bill Gates need a tax break?

Tuesday, March 1, 2011

Stockholm Syndrome In American Politics

"The syndrome is named after the Norrmalmstorg robbery of Kreditbanken at Norrmalmstorg in Stockholm, in which the bank robbers held bank employees hostage from August 23 to August 28, 1973. In this case, the victims became emotionally attached to their captors, and even defended them after they were freed from their six-day ordeal." from Wikipedia


I believe that this tendency is a part of all of us.  When we feel stressed we look for powerful people to attach ourselves to.  Deferring to power gives us a feeling of safety and relieves anxiety.  I believe that this explains a lot of the uncritical support for the right.  Parroting the catch phrase of the day makes one feel part of a strong group that we imagine will protect us.  Knowing your place in an orderly hierarchy is the essence of conservatism.  


For years I have been  trying to understand the reasoning of some of my conservative friends.  If it is like trying to talk a young child out of a security blanket, as this theory would suggest then I may have a clue. 


This may also be why many people seem to prefer a rigid and vengeful God that is subject to flattery.?