Our Real National Pastime – Tom Rossi

Here in the United States, whining about taxes is probably more popular than all of the major sports, combined. Forget about baseball – tax-whining is our true national pastime.

What’s amazing is that the distribution of whining, like so many things, is so illogical. In fact, tax-whining is positively correlated with a person’s or a corporation’s wealth. So, the more you have, the more you whine. It’s sort of like a team in Major League Baseball complaining that, in their run up to winning the World Series, too many strikes were called on their batters.

The favorite topic of tax-whiners is that the top income brackets pay all of the taxes while the bottom half of the so-called “middle class” (nobody want to be labelled “poor”) pays nothing. They love to go on about the 47% – the “takers.” That number was made up, by the way.

As justification, the tax-whiners always point to one statistic… the statistic that makes them look right. Here it is, in graph form:

But this is only part of the tax story. People pay taxes on much more than income. They pay taxes on property, gasoline, and sales tax on purchases of goods. The truth is that, when you add all those taxes up, the bottom 20% of earners pay about 17% of their incomes in taxes, while the top 20% of earners pay about 29%. That’s a significant difference, and I’m sure it frustrates those who live inside a calculator.

But it’s nowhere near the claims that are made, usually by Republicans and Tea Party types. And we should pay close attention to the effect that these percentages have on people. For someone who makes $250,000 per year (for example) paying 29% in taxes means that they are left with $177,500 to live on.

For someone earning 13,000 per year, paying 17% in taxes means that they are left with $10,790 to live on. That’s less per year than what the $250,000 earner has left per month. And, as I’ve argued before, the more money a person has, the more benefits he or she gets from taxes.

To the whiners, I say this: I realized that the prospect of paying an extra $500, or so, in taxes for a year might mean you have to put off buying a house for another month. Or it might mean that your kids actually have to go to public school. Or it might mean you have to buy the Lexus GS instead of the LS. But a difference of even $100 to a family on the receiving end of this shotgun economy might mean that their kids get “new” shoes (maybe from the Salvation Army) when their toes poke out through a hole. Or it might mean that they can afford to heat the house to above 55° in the winter. Or it might mean that they can pay the electric bill for another month or two.

These are two different worlds. What I’m talking about is called “Marginal Utility Theory,” and it’s a part of standard, old-fashioned, neo-classical economic theory. It just gets ignored because it is essentially an “inconvenient truth.” Without putting you to sleep, what this boils down to is that $1000 means nothing to the well-being of a millionaire, but it could mean the world to a poor person, or a poor person’s children.

President Obama and others are in the process of attempting to re-balance the tax code which has, in recent decades, come to favor the rich and the corporations. And now, we have an influx of veterans that often have an incredibly hard time finding a good job – or sometimes any job, for that matter. This is happening while government programs are being cut left and right.

If you really want to “support our troops,” if you are really “pro-life,” then realize that your tax dollars are helping people who really need it. And their health and well-being will come back to benefit you in ways you may not be able to imagine.

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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The World is Your Facebook – Roger Ingalls

This afternoon I received an interesting email from a friend that contained a PowerPoint presentation showing facts about the world. It proportionally represented the entire population on Earth as if we were only a village containing one hundred people. It made the numbers more comprehensible.

Let’s do something similar and bring the facts even closer to home by making the world our Facebook page. I’d like you to imagine that the only people in existence are also your Facebook friends. The average user has 130 friends. You may have more, or less, but let’s represent the entire human race relative to the average Facebook user. We have demographically shrunk the world proportionally.

Your world, your Facebook:

1)      You have friended all 130 people on Earth.

2)      You are friends with 67 women and 63 men.

3)      Seventy-four (74) of your friends are Asian, 27 are European, 18 are from the Americas (north, central and south), and 10 are from Africa.

4)      You have 43 Christian, 29 Muslim, 18 Hindu, 9 Buddhist and 1 Jewish friend.

5)      While worshipping their God, 60 of your friends live in fear of assault or death.

6)      Fourteen (14) of your friends are gay.

7)      You have 8 very rich friends that control 60% of the world’s wealth.

8)      Poverty hurts 104 of your friends.

9)      Sixty-five (65) of your friends are hungry or malnourished.

10)   Ninety-one (91) of your friends cannot read or write.

11)   One of your friends is giving birth.

12)   One of your friends is about to die.

13)   Only one of your friends has a college degree.

14)   Only one of your friends has a computer.

15)   If you have clothes on your back, sleep with a roof over your head and have food in the fridge, you live better than 98 of your friends.

Proportionally shrinking the entire population down to the size of the average Facebook user’s friendship-reach, did make it easier for me to rationalize the true state of the world. It was a good mental exercise.

I’m fortunate and should be more thankful.

Who is in the Top 1%? Don’t ask the New York Times – Tom Rossi

I’ve now heard an obvious piece of propaganda used by several journalistic organizations, including the New York Times and ABC television News. It has to do with who it is that’s being asked by the rest of us to pay their fair share of taxes.

What is the propaganda? The phrase, “high wage-earners.” The news media has chosen, without any apparent logic, to use this phrase repeatedly.

This, to me, serves as even more evidence that the media is not biased toward the left, as is often claimed, but largely toward the rich and powerful.

The purpose, as near as I can tell, is to kill the fair tax movement (not the official name or anything) by making it appear that those who are being “picked on” are doctors, accountants, engineers, and so forth. Baloney. The “1%” DOES NOT refer to the top 1% of wage-earners at all. It refers to those in the top 1% of net worth. They earn money by owning things. Their earnings are from stock transactions, and real estate and other investments – mostly what are categorized as capital gains.

Think your doctor can afford this?

The same authors of the original NYTimes article that raised too many eyebrows made a weak attempt at reconciliation with their readers, but they spent a lot of print basically defending their position and feigning concession while diverting attention from their shortcomings that it didn’t accomplish much.

So let’s settle, once and for all, who is “rich” and who is not. Here’s a quick test:

Call your U.S. Senator’s office in Washington, D.C. Tell whoever answers your name and ask to speak to the senator right away.

If the senator picks up the phone, you are rich. If not, you are not rich.

OK, I’m exaggerating… a little. The point is that the people that should be paying their fair share are not “wage-earners.” They are powerful forces that can bend our actual government to their liking, if they are so inclined. It was the efforts of a very large subset of this group that brought about the policies that led to the current state of imbalance.

Pointing to the top 1% of salaries is willfully dishonest. It distracts and robs credibility from the real issue.

-Tom Rossi

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Tom Rossi is a commentator on politics and social issues. He is a Ph.D. student in International Sustainable Development, concentrating in natural resource and economic policy. Tom greatly enjoys a hearty debate, especially over a hearty pint of Guinness.

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Anonymous Hood (by Roger Ingalls)

The Lytel Gest of Robyn Hode (15th century)

Lythe and listen Gentlemen
Who be of Free born blood
I will tell you of a bold yeoman
His name was Robin Hood

Many are taken aback when I equate the group Anonymous with Robin Hood. People fear Anonymous because they dwell in the unlawful area of hacktivism. But remember, Robin Hood was an outlaw too.

The immense power yielded by governments and big corporations can be countered by hackers crippling their electronic infrastructure. Although illegal, Anonymous used their hacktivism to support the Arab Spring, stymie the Westboro Baptist Church, support the Wisconsin protest and help expose Bank of America’s foreclosure fraud, just to name a few. Like Robin Hood, Anonymous championed the little guy against tyrannical power.

Our politicians are increasingly bought and financed by big business. Supreme Court Justices have developed dubious relationships with rich politically active organizations. And Wall Street orchestrated a financial crisis that successfully sucked away much of the middleclass’ remaining wealth. All this has and continues to create a widening chasm between the haves and have-nots. To make matters worse, the U.S. may be turning into a police-state where there’s a “shoot and ask questions later” mentality. Free speech is also under assault with government agencies shutting down cell phones during protests and new laws are inhibiting the video recording of police activities.

If genocide of the middleclass continues, a rebellion is inevitable. To have a fighting chance against the Tyrants, the middleclass will need to form an alliance with a group like Anonymous. Tactically, Anonymous could serve as a deterrent or they could pre-emptively strike to facilitate a more successful protest or other rebellious action.

Do I endorse all Anonymous’ activities? No, but I would want them on my side during a fight.

The Gest of Anonymous Hood (21st century)

Listen up elected fools
Better do what you know is good
We hunt with hacktivist tools
So fear our Anonymous Hood

Click here for Tom Rossi’s Anonymous, Hacking, Killing, and Free Speech

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.

American Revolution 2.0 – A Blood Bath (Roger Ingalls)

The following iconic phrases are no longer valid.

“…Governments are instituted among Men, deriving their just powers from the consent of the governed…”, Declaration of Independence.

“…government of the people, by the people, for the people…”, Lincoln’s Gettysburg Address.

It is painfully clear to half the American population that we are now governed by corporations.

Yes, we can still vote but our political choice ultimately goes to the one who can buy the most media sound bites via funds received from corporations, political action committees, and the rich. When the chosen ascend to their thrones, the big funders get their rewards and we, the people, are forgotten.

The American Middle-Class is becoming a thing of the past. Men, women and children are suffering. With all the hurt and pain inflicted on Main Street by the irresponsible actions of Wall Street and the Big Banks, conservative politicians are still accelerating the transfer of our remaining wealth to the rich and big corporations by providing them with unprecedented lower tax rates and loop-holes.

Options to stop Middle-Class genocide are limited. The law no longer sides with real people due to recent decision by the conservative members of the Supreme Court. Artificial persons (corporations) have been granted the same rights as real people. These recent decisions have, essentially, created a super artificial person with constitutional rights, big influential corporate wealth and the players behind these corporations have the added bonus of being protected against legal action.

Out of options and desperate, Americans may be forced into a second revolution.

Listening to the political sound bites of the day, I wondered what an American Revolution 2.0 would be like. Then it hit me, this would be a very bloody affair. This would be American against American. Upon further thought, I realize a new revolution would be unlike the original war against the British and more like the French and Russian revolutions where the desperate targeted the wealthy ruling class.

I’m inclined to believe that a real and bloody revolution is unlikely but the escalating chatter on social media is worrisome.

Big time CEOs, Wall Street executives and their political cronies may want to think long and hard before driving the stake further into the heart of Main Street America.

Who would be first in line to face the guillotine?

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Roger Ingalls is well travelled and has seen the good and bad of many foreign governments. He hopes his blogging will encourage readers to think more deeply about the American political system and its impact on US citizens and the international community.