Why are Democrats so stupid?

Put another mark in the "no shit Sherlock" column as the Washington Post reveals the results of yet another poll that shows a majority of Americans would like to see taxes on the very richest Americans go up, while keeping benefits like Medicare in their current form.  (http://wapo.st/g4bGH5)

To progressive Americans, this comes as no surprise as we have been yelling as loud and as often as we could for the past 10 years.  Americans are sick and tired of seeing massive tax cuts benefiting the likes of Warren Buffet, Steve Forbes, and the Walton Family, while the middle class sees its wages frozen and its benefits being chipped away.

As much as it pains me to borrow from the GOP talking points, this really does highlight a massive failure of leadership from President Obama, Senate Majority Leader Harry Reid, and the previous Speaker of the House Nancy Pelosi.  All three of them had the means to cut out the tax cuts for the richest 1% at any point in time between January 2009 and December 2010.  This could have been their big election issue going into last Fall.  They could have forced Republicans to vote NO on tax cuts for the middle class and held their feet to the fire...but instead they blinked as they always do.

The excuses that have come out of the Democratic party since the Fall elections have been that they had to act to save tax relief for the middle class.  But that's only because they failed to act on it sooner.  The first day back after the summer recess Democrats should have been hammering away at the GOP to pass tax relief for the middle class and the middle class only.  Leave out the estate tax breaks that will save the Walton family over $34 billion.  Forget about the keeping the marginal tax rates for the richest 1% lower than it's ever been since the creation of the income tax (it's not like any of them pay that rate anyway http://bit.ly/dL6mer).

But no, that's not what they did.  Instead, Obama, Reid and Pelosi tried to hang on by moving to the center.  And we saw how well that worked out for the Donkey.  One would think after the "shellacking" Obama and the Dems took in 2010 they would find some new vocabulary and really hammer home to people the importance of getting tax rates back to at least where they were under Clinton, if not pushing them back to where they were under the great Conservative himself, Ronald Reagan.  As Anthony Weiner said to Mike Huckabee "why should the guy working 70 hours a week on a construction job pay a bigger percentage in taxes than the do-nothing child of a millionaire who inherits a massive fortune?" (It's a really great clip: Anthony Weiner vs Mike Huckabee)

The People have spoken

From the moment the mid-term election results started coming in, Republicans have been repeating their new mantra that the people have spoken and the Democrats and their policies have been rejected.  With that in mind, the Democrats should stop trying to so hard to fix so many of the problems that are of the GOP's making.

First off, unemployment benefits.  My guess is that not everyone who is out of work today voted for Democrats in the recent mid-terms.  Perhaps it's time for them to learn what a Republican led Congress feels like.  Their unemployment benefits have expired and the GOP does not want to renew them without staggeringly irresponsible tax cuts for the ultra wealthy.  It's time for the Dems to stop protecting Americans from themselves and let them go into the new year with Speaker John Boehner and no more unemployment benefits.

Then there's the tax cuts.  To be more precise, a continuation of the tax cuts from 2001 and 2003.  Since the GOP rejected extending middle class tax cuts a few weeks ago, let the American people now see all their taxes go up because the Republicans want to give people like Bernie Madoff (before he was arrested) millions of savings on their tax bills.  Remember middle America, the Republicans didn't want middle class taxes to remain the same UNLESS the top three tenths of one percent of Americans could get a break on their estate taxes.  That's right, 99.7% of all Americans pay no estate taxes but the GOP is willing to put the economic well being of 98% of the country at risk in order to secure a lower tax rate for the top 0.3% of the population.

By rushing to the aid of the country that scorned them, the Democrats are merely setting the stage for things to improve under Speaker John Boehner.  If a majority of the country wants Republican leadership then let them have it.  Let them watch as the economy shrivels even more without the hardest hit receiving unemployment benefits.  Let them watch state governments are forced to lay off police officers, fire fighters, and teachers because of budget shortfalls.  Let them watch as China continues to fly past us in their super high speed trains carrying green manufacturing and the jobs that go with them.  Maybe by 2012 the American people will realize that they "made a huge mistake."  Or, maybe they'll just double down on their 2010 misjudgment and elect President Palin.

Simplify the tax code?

A very common argument that echoes through the halls of Congress is that the tax code is too complicated. The number of pages that comprise the tax code are often lauded by Senators or Congressmen looking to get on television. Those that would like to see a flat rate tax often use the length of the tax code as proof that it is bad. But so rarely is this lengthly tax code explained to the American people.

Well, listen up. The reason the tax code is so long and complex is because WE the people have continued to support politicians who give us tax breaks/cuts based on things we and our families do. Things like tax cuts for energy efficient home renovations; paying student loan interest; paying mortgage interest; donating to charities; and all the other thousands of things that people are able to claim every year in order to save some money on their taxes.

Simply put, those thousands of pages of the tax codes are thousands of pages of ways we Americans can SAVE money on our taxes, and so any effort to "simplify the code" will undoubtedly be met with strong opposition and the accusation that those trying to "simplify the code" are plotting a tax hike for hard working families. Many of the credits are aimed at the middle class which explains why the regressive taxers (those that want a flat tax across the board) are so keen to "simplify the code" and eliminate these tax credits for working families in exchange for lower tax rates on the rich.

As with all things parroted around the capitol and on Cable News, it is important to understand what the buzz words really mean in order to figure out the right course of action.

What to do about: Banker's Bonuses

Mere minutes after the capitulater in chief held a special conference with the country's top bankers it became apparent that his tough talk on CBS's 60 Minutes was nothing more than talk. While he seemed to be quite upset about the large bonuses being paid out by banks that have just repaid their TARP money, he seems unwilling or unable to do anything about them.

President Obama's ability to think things through may be the biggest hindrance to really nailing the bankers and their obscene bonuses to the wall. After all, how can he seriously denounce a practice that his own economic advisors have helped to create and reinforce during their years in the private sector? No, Obama does not really want to do anything about the bonuses but rather would like to appear, to the American public at least, that he is angry and that he is going to make them do something good for the country to make up for it. Good luck America.

What he really needs to do is follow the UK's example and say "fine, you want to give out big bonuses? Well, we'll take big taxes." The UK is likely to raise over a half a billion pounds by slapping a 50% tax on all discretionary bonuses over £25,000. One of the biggest arguments the banks are making right now to support their bonuses is that if they don't pay them, they'll lose their top talent. Well, with a measure like this all banks will have to reconsider doling out those big bonuses or risk paying dearly in new taxes. If they still want to give their top executives those hundred million dollar bonuses they can, but then the taxpayers (we the people) get a taste.

California Wildfires

STOP LIVING IN FIRE PRONE AREAS!

Watching all the news coverage of the efforts by the bankrupt state of California battling wild fires only leads me to one conclusion.  People should not be living in those mountainous regions that are prone to wild fires.  If they do choose to live there they should be responsible for footing any and all bills related to fighting the fire and should not be elligible for any federal disaster money.  If I build my home on a sandbar and the tide comes in I shouldn't get federal money to rebuild my home on that sandbar.

Tax cuts (continued)

I just read some more tax cut nonsense at OColly.com and I wanted to remind people that this tax cut nonsense is a fake issue that the Republicans have been championing for years. It's great for those making millions of dollars and it hurt those making tens of thousands of dollars. In exchange for their new yacht your children lose their after school programs or the bridges go without vital repairs.

I tried to explain my biggest issue with tax cuts in this election cycle at OColly.com and we'll see if the comments show up, but just in case they don't here they are:

The problem with all this nonsense about “wealthy people getting taxcuts and creating jobs” is that just because a big corporation or a wealthy individual has some extra money is no guarantee that they will invest in labor (american) or infrastructure. Given the downturn in the economy they might realize that no one in the bottom 95% of workers can afford their goods so they won’t need to hire any more employees or expand any operations. If the 95% gets more money back though, they will spend it on essential goods and services and boost the national economy. Companies expand because there is a demand for their goods or services, not just because they got a tax cut.

Tax cuts tax cuts tax cuts

I am sick to death of all the focus on bloody tax cuts! Obviously, if i was earning the kind of money that the top 1% of America earns my views might be a little different since I'd be looking at millions upon millions of saving from a President McCain over a President Obama. But I do not make millions of dollars. I do not make hundreds of thousands or even a hundred thousand. So my potential "tax cut" (read unpaved roads and collapsing bridges) is likely to be a modest sum no matter who is elected. What's amazing is that this puts me in the same boat as most Americans but for some reason this great majority of the country is so easily motivated by a few hundred to a few thousand dollars that they'd give up countless investments towards their and their children's health and education, for a new Chinese TV from Wal-mart.

Let's be honest, things like the Economic Stimulus package that dropped 600-1200 bucks in the laps of all American workers was not a stimulus to the American economy but rather, a giant hand-out to the Chinese economy that produces all the crap Americans spent their checks on. The same goes for tax cuts for the vast majority of Americans. We don't need a $600 check because a $600, or even a $6000 check is not going to mean the difference between sinking and swimming in this day and age. On the other hand, taking that money and investing it into our communities, whether it be through infrastructure improvements like roads and bridges, or hiring more teachers, or creating after-school programs would all create jobs here in America and improve the standard of living of the country as a whole.

What's the point of chanting some assinine phrase like "united we stand" if at the same time we are unwilling to help our fellow countrymen. What possible excuses can we make for America's embarssingly poor statistics on infant mortality? How can we the majority sit back and say "thank you" for a thousand dollar tax cut while people like Richard Fuld of Lehman Brothers receive millions?

Someone once asked me why not have a flat tax? Why should you be taxed at a higher rate just because you earn more? Well so far my best reasoning behind progressive taxes are the following:
1) The rich have far more control over how tax dollars are spent
This may come as a surprise to some people who have never watched the news or read an article, but the rich of this country have a far louder voice than the poor in determining how the nation's treasury is spent. Not only is a $200,000/year salary seen as poor by Senate standards but the rich, through expensive fundraisers and the lobbying system have a framework to get their concerns voiced in Washington with a far greater level of efficacy than anyone earning the nation's median income.
2) The rich benefit to far greater extent from the nations spending
Since they have more control over how the country spends its money it is little surprise that they benefit from that spending to a greater degree than average citizens. Owners of large corporations can lobby politicians to receive government contracts and subsidies. American corporations benefit greatly from America's presence overseas as they gain access to new markets and consumers. Were it not for America's military superiority (an enormous amount of our annual spending) American corporations would not be able to set up shop so freely throughout the world and rake in so many profits.

These are just 2 reasons for maintaining the progressive tax structure but there are many more. For these reasons I am asking the American people to please stop voting based on a tax cut. It's not helping you. The American people have received more tax cuts over the last 8 years than they did in the previous 8. What has happened in that time? The national debt has balooned from $5 trillion to "ten toushand billion" dollars as the British would say. The economy is in crisis and people are feeling poorer than they have in ages. STOP ASKING FOR TAX CUTS! THEY AREN'T HELPING! The only people who benefit from tax cuts are those making hundreds of thousands of dollars or more. Are you?