The Real Evil Behind the Republicans’ Tax and Budget Plans

Republicans have long dreamed of destroying the social safety net once and for all.

Source: AlterNet

Author: Neal Gabler / BillMoyers.com

Link: https://www.alternet.org/news-amp-politics/gop-long-game-tax-cuts?akid=16463.123424.ZIXTn7&rd=1&src=newsletter1086211&t=17

Emphasis Mine: 

Bloggers additions:

==========================================================================================

=   In memory of the late Belle Likover – http://obits.cleveland.com/obituaries/cleveland/obituary.aspx?pid=186268198        =

==========================================================================================

It isn’t easy watching the country you love fall down a black hole from which it is not likely to emerge, but that is precisely what happened this past week with the Senate passage of the so-called “tax reform” bill. Bernie Sanders spoke for many when he said it will “go down in history as one of the worst, most unfair pieces of legislation ever passed.”

To which I’d add, not only the worst legislation, but also the most radically transformative passed in our lifetimes. The bill seems to have something to hurt every American, except for the wealthy. It raises taxes on most middle-income wage earners over the long haul, eliminates the individual mandate for health care (which will send insurance premiums soaring) and allows oil drilling in the Arctic National Wildlife Refuge. The House version removes deductions for large health care expenses and compels graduate students to pay taxes on tuition waivers, though the Senate version retains both. Speaking of the health care provisions alone, former Treasury Secretary Lawrence Summers predicted millions would die.

But to be perfectly honest, bad as they are — and they are very bad — these aren’t likely to be the worst problems with this patchwork legislation. Though it was seemingly thrown together at the last minute, with senators scribbling changes in the margins even as it was being debated on the floor, and though it was concocted solely to give the Republicans and their monster-in-chief a legislative victory — any legislative victory — it would be misguided to think that there isn’t some grand scheme behind it.

In fact, for all the haphazardness, the tax reform measures passed by the House and Senate, which must be reconciled in conference before final passage, achieve a deliberate and much-cherished GOP goal that supersedes short-term victory. Republicans have long dreamed of destroying the social safety net once and for all. This is the bill that finally threatens to accomplish their plan.

The New Deal, which created that safety net, arose in the Great Depression precisely because the free markets that Republicans insist to this day are the answer to every problem failed Americans miserably. Government was needed to bail them out then and to protect them in the future.

New Dealism was a set of programs — Social Security, public works, fair labor laws, conservation and dozens more — but it was also an attitude about government and the role it could and should play, from actively helping citizens in distress to equalizing an unfair tax structure.

The proof of its success is that Republicans didn’t dare revoke it when they came back to power. Frankly, they couldn’t, because New Dealism was too popular for them to do so. Dwight Eisenhower didn’t even reduce the highest marginal tax rate of the 1950s, which sat at 91 percent. And believe it or not, no one outside of right-wing extremists called him a socialist.

Still, there were elements of the Republican Party that chafed over New Dealism and never gave up hope of rescinding it and returning America to its primordial state — when the wealthy controlled everything and ordinary people were left to fend for themselves. The Republicans, a coalition of big business, farmers and small-town Rotarians, hadn’t been the party of the people for a long time.

The GOP’s two deepest strains may have been personal responsibility and Social Darwinism, and neither was especially hospitable to government intervention of any sort. In combination, these beliefs challenged the very foundations of New Dealism, assuming not that government was a collective instrument to help Americans when they needed it, but that government assistance subverted self-sufficiency and undermined the natural order of things: the poor were poor and the rich were rich because they deserved it.

(N.B.: Social Darwinism was a product of Herbert Spencer – https://en.wikipedia.org/wiki/Herbert_Spencer.  The Principle of Natural Selection is Survival of the Fitter, not Survival of the Fittest, as is often misstated.)

This was by no means the entirety of the Republican Party. Though it is impossible to imagine right now, there was a progressive wing of the party with stalwarts like Robert La Follette, George Norris and William Borah. And there were moderates who, while favoring Wall Street, didn’t abhor all government involvement in the economy.

With this concession, New Dealism not only endured the griping against it, but, during Lyndon Johnson’s Great Society, grew — with Medicare and Medicaid signal achievements. By necessity, even Richard Nixon was a sort of New Dealer, introducing the Environmental Protection Agency and the Occupational Safety and Health Administration.

That’s the way it was throughout the postwar period — until Ronald Reagan.

Of the many ways Reagan changed American politics, among the most important was taking the extreme right-wing factions of conservatism who had been knocking at the party’s door and letting them in. This was a sneaky trick and a cataclysmic one that eventually would lead to Donald Trump.

(N.B.: It is often stated – as in ‘Reagan changed’ , above – that a POTUS was alone responsible for legislation. In Fact – as Donald J. Trump and many of his supporters have learned – a bill becomes law only after it has passed both houses and signed into law by the President: the PPACA  is a example.  I might also observe that when 40 was in office, his mental capacity to comprehend what was happening was always in question.)

Once upon a time, these folks were widely dismissed as kooks and pushed to the margins. Now they were at the heart of the party. All you need to know is that Reagan got his political start delivering speeches about “the ant heap of totalitarianism” and reviling Medicare as inevitably leading to a socialist dictatorship. (We’re still waiting.)

Reagan and his right-wing friends shared one great ambition: to destroy New Dealism. Part of this was to further enrich their rich benefactors and disempower the poor under that old guise of free markets and Social Darwinism. But there’s another possible reason, more psychological than ideological: You hurt people because it makes you feel more powerful and because you think they have it coming. Sen. Charles Grassley (R-IA) admitted as much the other day when he said, in defense of the estate tax repeal, that if you give ordinary Americans tax breaks, they will just waste their money on “booze, women and movies.”

Inevitably, New Dealism and Republicanism cannot coexist, because New Dealism is about helping people and Republicanism is about insisting that people can only help themselves. There is not a shred of empathy in the latter.

And therein lies the real driving force and the grand strategy behind this so-called tax reform. The House and Senate bills will both increase the deficit — the deficit about which Republicans have caterwauled for 50 years — by more than one trillion dollars! But rather than admit such rank hypocrisy, they deny that a trillion dollars will actually be added to be the deficit. The biggest dissemblers say that the resulting economic growth from tax cuts will take care of it, which is utter nonsense. The less egregious liars say that they will raise taxes if the deficit balloons, which is also nonsense. But — and here is the fine print — they say that if necessary they will cut government programs to keep the deficit under control.

That is the basic point. The object of tax reform is to create a gigantic deficit to justify ending the New Deal.

The time will come, and it is not far off, when every New Deal and Great Society program will be on the chopping block. And when they are, Republicans will start their deficit hawk mating call again. And because the deficit will have swelled so much, programs will be slashed. They won’t just nibble away at the edges. They will try to kill the whole thing.

Democrats will protest. They may even be in power. But if they are, they will be handed an untenable situation, having to choose between deficits and programs. In effect, Democrats are being set up. You can already hear Republicans saying we can’t afford Medicare, Medicaid, food stamps or even Social Security. It is government as cruelty.

In the past, when it came to New Dealism, Republicans always had to hide their true intentions because when they dared reveal them, as George W. Bush did when he sought to privatize Social Security, the hue and cry was deafening. In fact, a few weeks ago I wrote about how Americans were wising up, and it’s true that the more they learn about this “tax reform,” the more opposed they are. Right now, the opposition is overwhelming.

But with Donald Trump in charge, Republicans feel no need to conceal. They have been emboldened, I think, to show their true selves because they feel Trump has their back with his supporters — and as long as they have that army behind them, they are willing to take the risk of promoting a “reform” nearly everyone else hates. Those aggrieved white men who form the bulk of rank-and-file Republicanism don’t care if they have to pay more taxes. They don’t care if premitheir health insurance premiums soar. They don’t care if their children can’t afford to go to college. Surveys show that they are more devoted to Trump than to their own welfare, and they will follow Trump wherever he leads, even if he leads them to financial disaster. He voices their hatreds, and hatred trumps policy. Such is modern Republicanism.

In a way, you can’t blame Republican office holders for being fired up. They have the New Deal in their sights, and they are eager to pull the trigger. Yet this country already has suffered grievously from Republicanism and Trumpism. It has lost its moral compass, and is about to put an alleged child molester in the Senate. America is going to suffer a great deal more once the deficit reckoning comes and the great unraveling begins. When the social safety net is gone, what happens to those who fall — which in truth, could be every single one of us?

Neal Gabler is the author of five books and the recipient of two LA TImes Book Prizes, Time magazine’s non-fiction book of the year, and USA Today’s biography of the year. He is a senior fellow at the Lear Center for the Study of Entertainment and Society.

 

Paul Krugman on the Real Reason Behind the Deficit Panic and the Terrible Damage It Has Wrought

The debt apocalypse has been called off.’

Source: AlterNet

Author: Paul Krugman

Paul Krugman attacks the recent, years-long panic over the national debt and deficits in today’s column reminding readers that this once relentless topic in the news has pretty much disappeared from view. And for good reason, Krugman says, “The whole thing turns out to have been a false alarm.”

There was a time not so long ago when it was all you could read or hear about. The media and politicians of both stripes kept sounding the alarm over budget deficits and rising debts. Very serious people said the U.S. would soon turn into Greece unless something was done. Obama tried to strike a “Grand Bargain” with Congress for a balanced budget. But, of course, this Congress does not bargain—refuses to raise taxes—and no deal was struck.

Writes Krugman:

I’m not sure whether most readers realize just how thoroughly the great fiscal panic has fizzled — and the deficit scolds are, of course, still scolding. They’re even trying to spin the latest long-term projections from the Congressional Budget Office — which are distinctly non-alarming — as somehow a confirmation of their earlier scare tactics. So this seems like a good time to offer an update on the debt disaster that wasn’t.

About those projections: The budget office predicts that this year’s federal deficit will be just 2.8 percent of G.D.P., down from 9.8 percent in 2009. It’s true that the fact that we’re still running a deficit means federal debt in dollar terms continues to grow — but the economy is growing too, so the budget office expects the crucial ratio of debt to G.D.P. to remain more or less flat for the next decade.

Krugman goes on to responsibly inform readers that things will get more complicated after about a decade as an aging population makes increasing demands on Medicare and Social Security. But, on the plus side, healthcare costs have dramatically slowed down, which none of the doomsday prognosticators saw coming. Krugman writes:

As a result, despite aging, debt in 2039 — a quarter-century from now! — is projected to be no higher, as a percentage of G.D.P., than the debt America had at the end of World War II, or that Britain had for much of the 20th century. Oh, and the budget office now expects interest rates to remain fairly low, not much higher than the economy’s rate of growth. This in turn weakens, indeed almost eliminates, the risk of a debt spiral, in which the cost of servicing debt drives debt even higher.

OK, but still, Krugman allows, rising debt is not good. He also points out that it would take “surprisingly little” to avoid it.

The budget office estimates that stabilizing the ratio of debt to G.D.P. at its current level would require spending cuts and/or tax hikes of 1.2 percent of G.D.P. if we started now, or 1.5 percent of G.D.P. if we waited until 2020. Politically, that would be hard given total Republican opposition to anything a Democratic president might propose, but in economic terms it would be no big deal, and wouldn’t require any fundamental change in our major social programs.

In short, the debt apocalypse has been called off.

So, having cleared up the economics, Krugman turns to the real reasons behind the fiscal panic. It is, as you might have imagined, politically and ideologically motivated. So much so that conservative thinkers like Alan Greenspan have expressed disappointment that the Greece-style crisis never arrived. Even in Europe, the crisis was dealt with rather quickly, in fact, “once the European Central Bank began doing its job, making it clear it would do ‘whatever it takes’ to avoid cash crises in nations that have given up their own currencies and adopted the euro,” Krugman illuminates. “Did you know that Italy, which remains deep in debt and suffers much more from the burden of an aging population than we do, can now borrow long term at an interest rate of only 2.78 percent? Did you know that France, which is the subject of constant negative reporting, pays only 1.57 percent?”
No, that story is not told here. Nor is the simple fact that we do not have a debt crisis. Why is that? Krugman suspects that it has served a political purpose, namely  it suited those powerful conservative interests that want to dismantle Social Security and Medicare. That desire in itself is cruel and irresponsible enough, but these deficit hawks also did a lot of collateral damage along the way, distracting all of us from real problems like unemployment and decaying infractructure and climate change for far too many years.
And who is going to pay for that?

Emphasis Mine

See:http://www.alternet.org/economy/paul-krugman-real-reason-behind-deficit-panic-and-terrible-damage-it-has-wrought?akid=12038.123424.JK4ohx&rd=1&src=newsletter1012195&t=5&paging=off&current_page=1#bookmark

We’re Not in Lake Wobegon Anymore

“I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” Republicans: The No.1 reason the rest of the world thinks we’re deaf, dumb and dangerous.

Written in 2004.

How did the Party of Lincoln and Liberty transmogrify into the party of Newt Gingrich’s evil spawn and their Etch-A-Sketch president, a dull and rigid man, whose philosophy is a jumble of badly sutured body parts trying to walk?

By GARRISON KEILLOR

Something has gone seriously haywire with the Republican Party. Once, it was the party of pragmatic Main Street businessmen in steel-rimmed spectacles who decried profligacy and waste, were devoted to their communities and supported the sort of prosperity that raises all ships. They were good-hearted people who vanquished the gnarlier elements of their party, the paranoid Roosevelt-haters, the flat Earthers and Prohibitionists, the antipapist antiforeigner element. The genial Eisenhower was their man, a genuine American hero of D-Day, who made it OK for reasonable people to vote Republican. He brought the Korean War to a stalemate, produced the Interstate Highway System, declined to rescue the French colonial army in Vietnam, and gave us a period of peace and prosperity, in which (oddly) American arts and letters flourished and higher education burgeoned—and there was a degree of plain decency in the country. Fifties Republicans were giants compared to today’s. Richard Nixon was the last Republican leader to feel a Christian obligation toward the poor.

In the years between Nixon and Newt Gingrich, the party migrated southward down the Twisting Trail of Rhetoric and sneered at the idea of public service and became the Scourge of Liberalism, the Great Crusade Against the Sixties, the Death Star of Government, a gang of pirates that diverted and fascinated the media by their sheer chutzpah, such as the misty-eyed flag-waving of Ronald Reagan who, while George McGovern flew bombers in World War II, took a pass and made training films in Long Beach. The Nixon moderate vanished like the passenger pigeon, purged by a legion of angry white men who rose to power on pure punk politics. “Bipartisanship is another term of date rape,” says Grover Norquist, the Sid Vicious of the GOP. “I don’t want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” The boy has Oedipal problems and government is his daddy.

The party of Lincoln and Liberty was transmogrified into the party of hairy-backed swamp developers and corporate shills, faith-based economists, fundamentalist bullies with Bibles, shriekChristians of convenience, freelance racists, misanthropic frat boys, shreiking midgets of AM radio, tax cheats, nihilists in golf pants, brownshirts in pinstripes, sweatshop tycoons, hacks, fakirs, aggressive dorks, Lamborghini libertarians, people who believe Neil Armstrong’s moonwalk was filmed in Roswell, New Mexico, little honkers out to diminish the rest of us, Newt’s evil spawn and their Etch-A-Sketch president, a dull and rigid man suspicious of the free flow of information and of secular institutions, whose philosophy is a jumble of badly sutured body parts trying to walk. Republicans: The No.1 reason the rest of the world thinks we’re deaf, dumb and dangerous.

Rich ironies abound! Lies pop up like toadstools in the forest! Wild swine crowd round the public trough! Outrageous gerrymandering! Pocket lining on a massive scale! Paid lobbyists sit in committee rooms and write legislation to alleviate the suffering of billionaires! Hypocrisies shine like cat turds in the moonlight! O Mark Twain, where art thou at this hour? Arise and behold the Gilded Age reincarnated gaudier than ever, upholding great wealth as the sure sign of Divine Grace.

Here in 2004, George W. Bush is running for reelection on a platform of tragedy—the single greatest failure of national defense in our history, the attacks of 9/11 in which 19 men with box cutters put this nation into a tailspin, a failure the details of which the White House fought to keep secret even as it ran the country into hock up to the hubcaps, thanks to generous tax cuts for the well-fixed, hoping to lead us into a box canyon of debt that will render government impotent, even as we engage in a war against a small country that was undertaken for the president’s personal satisfaction but sold to the American public on the basis of brazen misinformation, a war whose purpose is to distract us from an enormous transfer of wealth taking place in this country, flowing upward, and the deception is working beautifully.

The concentration of wealth and power in the hands of the few is the death knell of democracy. No republic in the history of humanity has survived this. The election of 2004 will say something about what happens to ours. The omens are not good.

Our beloved land has been fogged with fear—fear, the greatest political strategy ever. An ominous silence, distant sirens, a drumbeat of whispered warnings and alarms to keep the public uneasy and silence the opposition. And in a time of vague fear, you can appoint bullet-brained judges, strip the bark off the Constitution, eviscerate federal regulatory agencies, bring public education to a standstill, stupefy the press, lavish gorgeous tax breaks on the rich.

There is a stink drifting through this election year. It isn’t the Florida recount or the Supreme Court decision. No, it’s 9/11 that we keep coming back to. It wasn’t the “end of innocence,” or a turning point in our history, or a cosmic occurrence, it was an event, a lapse of security. And patriotism shouldn’t prevent people from asking hard questions of the man who was purportedly in charge of national security at the time.

Whenever I think of those New Yorkers hurrying along Park Place or getting off the No.1 Broadway local, hustling toward their office on the 90th floor, the morning paper under their arms, I think of that non-reader George W. Bush and how he hopes to exploit those people with a little economic uptick, maybe the capture of Osama, cruise to victory in November and proceed to get some serious nation-changing done in his second term.

This year, as in the past, Republicans will portray us Democrats as embittered academics, desiccated Unitarians, whacked-out hippies and communards, people who talk to telephone poles, the party of the Deadheads. They will wave enormous flags and wow over and over the footage of firemen in the wreckage of the World Trade Center and bodies being carried out and they will lie about their economic policies with astonishing enthusiasm.

The Union is what needs defending this year. Government of Enron and by Halliburton and for the Southern Baptists is not the same as what Lincoln spoke of. This gang of Pithecanthropus Republicanii has humbugged us to death on terrorism and tax cuts for the comfy and school prayer and flag burning and claimed the right to know what books we read and to dump their sewage upstream from the town and clear-cut the forests and gut the IRS and mark up the constitution on behalf of intolerance and promote the corporate takeover of the public airwaves and to hell with anybody who opposes them.

This is a great country, and it wasn’t made so by angry people. We have a sacred duty to bequeath it to our grandchildren in better shape than however we found it. We have a long way to go and we’re not getting any younger.

Dante said that the hottest place in Hell is reserved for those who in time of crisis remain neutral, so I have spoken my piece, and thank you, dear reader. It’s a beautiful world, rain or shine, and there is more to life than winning.

  • Help In These Times publish more articles like this. Donate today!
  • Subscribe today and save 46% off the newsstand price!
Garrison Keillor is the host and writer of A Prairie Home Companion, now in its 34th year on the air and a syndicated newspaper columnist.

Emphasis Mine.

see:http://readersupportednews.org/off-site-opinion-section/72-72/7193-were-not-in-lake-wobegon-anymore

3 Reality-Based Charts Your Right-Wing Relatives Will Have a Hard Time Ignoring

Here are some reality-based charts to help knock down absurd right-wing propaganda about the economy

From AlterNet, by RJ Eskow

Problem: Your right-wing brother-in-law is plugged into the FOX-Limbaugh lie machine, and keeps sending you emails about “Obama spending” and “Obama deficits” and how the “Stimulus” just made things worse.

Solution: Here are three “reality-based” charts to send to him. These charts show what actually happened.

Spending

Bush-Obama Spending Chart

Government spending increased dramatically under Bush. It has not increased much under Obama. Note that this chart does not reflect any spending cuts resulting from deficit-cutting deals.

Deficits

Bush-Obama Deficit Chart

Notes, this chart includes Clinton’s last budget year for comparison.

The numbers in these two charts come from Budget of the United States Government: Historical Tables Fiscal Year 2012. They are just the amounts that the government spent and borrowed, period, Anyone can go look then up. People who claim that Obama “tripled the deficit” are either misled or are trying to mislead.

The Stimulus and Jobs

Bush-Obama-Jobs-Chart

In this chart, the RED lines on the left side — the ones that keep doing DOWN — show what happened to jobs under the policies of Bush and the Republicans. We were losing lots and lots of jobs every month, and it was getting worse and worse.The BLUE lines — the ones that just go UP — show what happened to jobs when the stimulus was in effect. We stopped losing jobs and started gaining jobs, and it was getting better and better. The leveling off on the right side of the chart shows what happened as the stimulus started to wind down: job creation leveled off at too low a level.

It looks a lot like the stimulus reversed what was going on before the stimulus.

Conclusion: THE STIMULUS WORKED BUT WAS NOT ENOUGH!

More False Things

These are just three of the false things that everyone “knows.” Some others are (click through): Obama bailed out the banks, businesses will hire if they get tax cuts, health care reform cost $1 trillion, Social Security is a Ponzi Scheme or is “going broke”, government spending “takes money out of the economy.”

Why This Matters

These things really matter. We all want to fix the terrible problems the country has. But it is so important to know just what the problems are before you decide how to fix them. Otherwise the things you do to try to solve those problems might just make them worse. If you get tricked into thinking that Obama has made things worse and that we should go back to what we were doing before Obama — tax cuts for the rich, giving giant corporations and Wall Street everything they want — when those are the things that caused the problems in the first place, then we will be in real trouble.

Emphasis Mine

see:http://www.alternet.org/story/152201/3_reality-based_charts_your_right-wing_relatives_will_have_a_hard_time_ignoring?akid=7484.123424.OxQ7x8&rd=1&t=12

Understand the Right’s Attack on Social Security

The Social Security program is entirely self-funded, separate from the way that the government taxes and spends for other programs.Social Security does not contribute to the deficit in any way.

From Alternet, by: Dave Johnson, Campaign for America’s Future

“You hear over and over that Social Security is “in trouble” or that we “can’t afford it.” This is as far from true as can be, and the idea behind this is to convince people to just give up on defending the program and let the haters have their way. The people who hate Social Security the most are the ones who say they want to make these changes to “save” it.

Well Bernie Sanders loves the program and has introduced a bill that actually will save it.

The Haters

Conservatives have hated Social Security from the start, because it is a program that demonstrates once and for all the value of progressive governance. Social Security is as clear an example of We, the People watching out for and taking care of each other as there ever was. It has made a huge difference n the lives of older people, and their/our families. It works, is cost-effective and requires minimal overhead to keep it going. So they hate it.

A very recent example of conservative hatred for Social Security came from Senator Marco Rubio of Florida, who said, that We, the People helping each other makes us weak,

“These programs actually weakened us as a people. … All of a sudden, for an increasing number of people in our nation, it was no longer necessary to worry about saving for security because that was the government’s job.”

Substitute the words “We, the People” or “each other” for “government” in Rubio’s statement and you’ll get the point: people don’t have to worry so much because we’re taking care of each other. He says that makes us weak. Yikes!

Decades Of Attacks

For decades conservatives who hate Social Security have been using every trick in the book to turn people against the program. Over and over you hear, “It’s a Ponzi scheme.” “It won’t be there for you.” This latest attack is that it “makes us weak.” And of course the old classic: “Social Security is broke.”

The “it’s going broke” and “won’t be there for you” attack strategy goes back to a 1983 Cato Institute Journal document, “Achieving a Leninist Strategy” by Stuart Butler of Cato and Peter Germanis of the Heritage FoundationThe document is still available at Cato, and select quotes are available at Plotting Privatization? from Z Magazine. If you have time it is worth reading the entire document (in particular the section “Weakening the Opposition”) to more fully understand the strategy that has been unfolding in the years since. But if you can’t, the following quotes give you an idea:

“Lenin recognized that fundamental change is contingent upon … its success in isolating and weakening its opponents. … we would do well to draw a few lessons from the Leninist strategy.”

” construct … a coalition that will … reap benefits from the IRA-based private system … but also the banks, insurance companies, and other institutions that will gain from providing such plans to the public.”

“The first element consists of a campaign to achieve small legislative changes that embellish the present IRA system, making it in practice a small-scale private Social Security system.

“The second main element … involves what one might crudely call guerrilla warfare against both the current Social Security system and the coalition that supports it.”

“The banking industry and other business groups that can benefit from expanded IRAs …” “… the strategy must be to propose moving to a private Social Security system in such a way as to … neutralize … the coalition that supports the existing system.”

“The next Social Security crisis may be further away than many people believe. … it could be many years before the conditions are such that a radical reform of Social Security is possible. But then, as Lenin well knew, to be a successful revolutionary, one must also be patient and consistently plan for real reform.”

Here is what to take away from this: Every time you hear that “Social Security is going broke” you are hearing a manufactured propaganda point that is part of a decades-old strategy. Every time you hear that “Social Security is a Ponzi scheme” you are hearing that strategy in operation. Every time you hear that “Social Security won’t be there for me anyway” ” you are witnessing that strategy unfold.

The Problem

The Social Security program is entirely self-funded, separate from the way that the government taxes and spends for other programs. People set aside money in their working years, they get a monthly amount when they retire. (The program also has other benefits including disability benefits, survivors funds and others.) Social Security does not contribute to the deficit in any way.

You never hear that the huge, vast, bloated, enormous, mammoth military budget is “going broke” or “won’t be there for you.” But year after year you hear that Social Security is “in trouble.”

Currently the program has built up a huge trust fund — over $2.5 trillion. This is invested in US Treasury Bonds, and is earning interest. But there are projections that this trust fund will be depleted in approx. 2037, and if this happens the program will have to cut payouts by as much as 25%. (Hey. when does the military budget Trust Fund run down?)

One big reason for this shortfall is that the last time the programs was comprehensively adjusted (1983, Greenspan Commission) certain economic growth and income projections were used to decide how much “payroll tax” to take out of people’s paychecks. They increased the amount taken out of paychecks, and set up an increasing “cap” on the income that would be taxed. Right now 6.2% (temporarily reduced to 4.2%) is taken out of paychecks, and employers kick in another 6.2%, on income up to a “cap” of $106,800. There is no “payroll tax” on amounts above that “cap.”

But something changed between 1983 and nowalmost all the income gains have gone to a few at the very top. Instead of people who mostly were under that “cap” getting raises, thereby increasing the amount they pay into the fund, the raises went to people who already pass that amount, so the increased income is not contributing to the program. So that money that was calculated would go into the Social Security Trust Fund instead went to the top few. As a result the program is no longer bringing in enough money to keep the trust fund fully-funded past 2037.

Sen. Sanders’ Solution

Senator Bernie Sanders is introducing a bill to the Senate to fix this, once and for all. In simple terms, this bill will start taxing income above $250,000 a year to cover this Social Security shortfall. So instead of just “raising the cap” it lets that cap stay, and then takes it off again on income above $250,000. In effect it means there will be a gap between the current top income that is taxed, and $250K.

Get the money from where the money went: So because much of the real Social Security problem is that so much income is now going to just a few at the top, this gets the money to fix the problem from those top-level incomes.

Here is Sanders, talking about his bill:

“When [Social Security] was developed, 50 percent of seniors lived in poverty. Today, poverty among seniors is too high, but that number is ten percent. Social Security has done exactly what it was designed to do!”


Emphasis Mine

see:http://www.truth-out.org/understand-rights-attack-social-security/1314537823

GOP’s Debt Solution: Soak the Poor

A single mother struggling to keep a roof over her child’s head would probably love to trade places with a six-figure earner and bear the burden of paying federal income tax on a comfortable salary.

By Carl Gibson, Reader Supported News

magine a bulky schoolyard bully routinely holding you and your classmates upside-down by your shoes and pocketing the money that falls out, using the amount gained from his extortion to buy a new bike at the end of each semester. Now imagine enduring this process every day, all year, throughout each grade of school.

What if one day, the bully actually complained that you weren’t bringing enough lunch money to school because he wanted a nicer bike? Would you comply and let him rob you of a larger amount, or would you and your fellow classmates surround the teacher and demand the bully return the money he stole?

Despite billionaire Warren Buffett‘s pleas to reduce the deficit by shifting the tax burden to the super-rich, Republican members of Congress have officially come out in favor of raising taxes on the poor, while fiercely protecting trillions in tax handouts for billionairesbig oil and corporate jet owners. Right-wing politicians and corporate-media pundits have now set their sights on “lucky duckies,” or the bottom half of Americans who don’t pay federal income taxes. As law professor Edward Kleinbard noted, this statement is misleading and ignores the need for meaningful reform of our tax code.

Jon Stewart creatively dismantled the poor-people-don’t-pay-taxes argument on The Daily Show, highlighting conservatives who dismissed the $700 billion in revenue gained from ending the Bush tax cuts for the wealthy in 2010. According to Stewart’s calculations, taking exactly half of everything owned by the bottom 50% of Americans would also generate $700 billion, exactly as much revenue as increasing the tax rate for the richest Americans by a modest 3%. Stewart sarcastically suggested Republicans trim the deficit by seizing all assets owned by the bottom half of Americans.

It’s incredibly audacious for the rich to ask the poor to pay more in taxes in order to protect theirbudget-busting tax breaks, especially considering America’s wealth disparity. The gap between the richest and everyone else has grown to levels even greater than on the eve of the crash that triggered the great depression, with the top .001% of Americans now owning 976 times more than the bottom 90%. In 1928, the richest only owned 892 times more than the bottom 90%.

And of course, those accusing the working poor of freeloading ignore the fact that 1 in 4 American jobs don’t even pay poverty wages, or that the federal income tax is inherently designed to avoid hitting the poor, the elderly and working families with children. Such bold accusations also ignore the reality that all of the aforementioned groups still pay roughly one-third of their income in sales, property, payroll and excise taxes.

A single mother struggling to keep a roof over her child’s head would probably love to trade places with a six-figure earner and bear the burden of paying federal income tax on a comfortable salary. But would a six-figure earner be willing to work three part-time minimum wage jobs and still worry about how the rent is going to be paid at the end of the month? Would he really be eager to forgo paying federal income tax if it meant he had to scrape quarters together to buy beans, lentils and ramen noodles for dinner?

Big oil doesn’t need $4 billion per year in taxpayer subsidies – they’re making record profits. Excessive tax cuts for millionaires and billionaires won’t create jobs – the unemployment rate doubledafter ten years of the Bush tax cuts. And corporate jet owners don’t need a tax break while public employees nationwide are losing their jobs to budget cuts.

America needs to surround our teacher before recess and make a strong statement together – the bullies don’t need to rob us of our lunch money to continue their excessive lifestyles. Let’s stop subsidizing wealth for the sake of wealth, and leave struggling middle-class families alone.


Carl Gibson, 24, of Lexington, Kentucky, is a spokesman and organizer for US Uncut, a nonviolent, creative direct-action movement to stop budget cuts by getting corporations to pay their fair share of taxes. He graduated from Morehead State University in 2009 with a B.A. in Journalism before starting the first US Uncut group in Jackson, Mississippi, in February of 2011. Since then, over 20,000 US Uncut activists have carried out more than 300 actions in over 100 cities nationwide. You may contact Carl at carl@rsnorg.org.

Reader Supported News is the Publication of Origin for this work. Permission to republish is freely granted with credit and a link back to Reader Supported News.”

Emphasis Mine

see:http://readersupportednews.org/opinion2/279-82/7202-gops-debt-solution-soak-the-poor

5 Reasons Capitalism Has Failed

The root cause of our recent turmoil is the failure of the dominant economic paradigm — global corporate capitalism.

By Bob Burnett, The Smirking Chimp, via AlterNet

(N.B.: Marx was right, after all…)

We live in interesting times. The global economy is splintering. U.S. voters hate all politicians and there’s political unrest throughout the world. The root cause of this turmoil is the failure of the dominant economic paradigm — global corporate capitalism.

The modern world is ruled by multinational corporations and governed by a capitalistic ideology that believes: Corporations are a special breed of people, motivated solely by self-interest. Corporations seek to maximize return on capital by leveraging productivity and paying the least possible amount for taxes and labor. Corporate executives pledge allegiance to their directors and shareholders. The dominant corporate perspective is short term, the current financial quarter, and the dominant corporate ethic is greed, doing whatever it takes to maximize profit.

Five factors are responsible for the failure of global corporate capitalism. First, global corporations are too big. We’re living in the age of corporate dinosaurs. (The largest multinational is JP Morgan Chase with assets of $2 Trillion, 240,000 employees, and offices in 100 countries.) The original dinosaurs perished because their huge bodies possessed tiny brains. Modern dinosaurs are failing because their massive bureaucracies possess miniscule hearts.

Since the Reagan era global corporations have followed the path of least resistance to profit; they’ve swallowed up their competitors and created monopolies, which have produced humongous bureaucracies. In the short-term, scale helps corporations grow profitable, but in the long-term it makes them inflexible and difficult to manage. Gigantism creates a culture where workers are encouraged to take enormous risks in order to create greater profits; it’s based upon the notion that the corporation is “too big to fail.”

Second, global corporations disdain civil society. They’ve created a culture of organizational narcissism, where workers pledge allegiance to the enterprise. Corporate employees live in a bubble, where they log obscene hours and then vacation with their co-workers. Multinationals develop their own code of ethics and worldview separate from that of any national state. Corporate executives don’t care about the success or failure of any particular country, only the growth and profitability of their global corporation. (Many large corporations pay no U.S. income tax; in 2009 Exxon Mobil actually got a $156 M rebate.)

Third, global corporations are modern outlaws, living outside the law. There is noinvisible hand that regulates multinationals. In 1759 Philosopher Adam Smith argued that while wealthy individuals and corporations were motivated by self interest, an “invisible hand” was operating in the background ensuring that capitalist activities ultimately benefited society. In modern times this concept became the basis for the pronouncements of the Chicago School of Economics that markets were inherently self regulating. However, the last five years have demonstrated that there is no “invisible hand”unregulated markets have spelled disaster for the average person. The “recovery” of 2009-10 ensured that “too big to fail” institutions would survive and the rich would continue to be rich. Meanwhile millions of good jobs were either eliminated or replaced by low-wage jobs with poor or no benefits.

Fourth, global corporations are ruining our natural capital. Four of the top 10 multinational corporations are energy companies, with Exxon Mobil leading the list. But there are many indications that our oil reserves are gone. Meanwhile, other forms of natural capital have been depleted — arable land, water, minerals, forests, fish, and so forth. Multinational corporations have treated the environment as a free resource. When the timberlands of North America began to be depleted, lumber corporations moved to South America and then Asia. Now, the “easy pickings” are gone. Global corporations have ravished the world and citizens of every nation live with the consequences: dirty air, foul water, and pollution of every sort.

Fifth, global corporations have angered the world community. The world GDP is $63 Trillion but multinational corporations garner a disproportionate share — with banks accounting for an estimated $4 trillion (bank assets are $100 trillion). Global black markets make $2 trillion — illegal drugs account for at least $300 billion. In many parts of the world, a worker is not able to earn a living wage, have a bank account or drive a car, but can always obtain drugs, sex, and weapons. And while the world may not be one big village in terms of lifestyle, it shares an image of “the good life” that’s proffered in movies, TV, and the Internet. That’s what teenagers in Afghanistan have in common with teenagers in England; they’ve been fed the same image of success in the global community and they know it’s inaccessible. They are angry and, ultimately, their anger has the same target — multinational corporations (and the governments that support them).

We live in interesting times. The good news is we’re witnessing the failure of global corporate capitalism. The bad news is we don’t know what will replace it.”

(N.B.: Perhaps we do – see peoplesworld.org)

Bob Burnett is a writer and activist in Berkeley, Calif.

Emphasis Mine

see:http://www.alternet.org/story/152118/5_reasons_capitalism_has_failed?page=entire