Tag Archives: Tax code

Mr Reed on the Backs of our Children

My Congressman is Tom Reed of NY-23. A staunch Trump supporter and one of the key members of the Ways and Means Committee responsible for the GOP tax bill. I called his office at 10:30 this morning and spoke with one of his staff members for 15 minutes. Here are the questions I asked and the answers I received.

Q. How many expert Congressional hearings has Mr Reed attended?

A. Don’t know exactly. There have been a few. Also he is on Ways and Means which had some hearings.

Q. Has Mr Reed read the entire bill, all 1000 pages ?

A. Yes. He has read the entire bill.

Q. Does Mr Reed gain financially from this bill, in the sense of the “Corker Kickback”? Any specific provisions which help him?

A. Do not know. Thinks not, however.

Q. According to some analyses, over the next 10 years 83% of the tax benefits go to the top 5% of people and corporations. Why does Mr Reed think the top earners need a break more than the bottom 95%?

A. Not familair with that analysis so can’t speak to it. The idea is to be pro-growth which will create jobs.

My follow up: Isn’t that what George Bush tried and it did not create jobs, called supply side?

A. Would not characterize it. Not familiar enough with the Bush plan to respond.

Q. The tax law keeps in place giving tax credits for taxes paid abroad. Doesn’t this discourage companies from creating jobs in the US if they can continue to take an overseas tax credit?

A. Is not familar with this provision. Can’t answer.

My follow up: If you want job creation at home wouldn’t it be better to tie any tax breaks to spending on jobs in the USA? Make job creation in the US a requirement for getting the tax break?

A. Will pass on my idea to the Congressman.

Q. The Center on Budget and Policy Priorities calculated that 10,000,000 lower income  families would get an increase in the child tax care credit of $75 a year. That amounts to an increase of 50 cents a day. Is this a good increase for poor people raising children?

A. The child credit remains and has been increased so poor families get a $2,000 tax credit, which in an increase. And they can get $1,400 in taxes returned.  

Q. On April 15, 2011 when Mr Obama was president, Mr Reed released this statement: “We are borrowing $58,000 per second on the backs of our children and grandchildren… Reducing spending and getting the national debt under control in the single most important issue…. Trillions of private dollars sit on the sidelines waiting to see if we are serious about reducing the deficit and paying down our debt….” Has Mr Reed changed his mind abut the deficit?

A. We are concerned about the deficit and debt. We are pro-growth and Mr Reed is concerned about spending.

Follow up: What specific spending does he want to cut?

A. Can’t answer.

The staff member, who was very polite and patient with me said he would try to contact others who could answer my questions.

Mr Reed used to be concerned about expanding deficits. Evidently he has concluded that our children have strong backs. They are going to need them.

Advertisements

Leave a comment

Filed under Conservatives, Debt, economics, Economy, GOP, government, Neoconservative, Politics, POTUS, Republicans, Senate, Society, Taxes, Trump, United States, US

Turkey Tax Theory

For over 30 years I have insisted on cooking the Thanksgiving turkey. I say “insisted”. It is my right as the head of the family. As a man. I decide these things. I know better than anyone else how to cook a turkey, so I take control. End of discussion. (Right, dear?)

I have a very sound theory of turkey cooking. First, you buy a turkey.  Then you cook it. Simple. Common sense.

Of course some folks might look to socalled “experts” when it comes to cooking turkey, but not me. They look in cook books and on line videos and some even ask grandma. But not me. I have a theory and I am sticking to it.

Now, the cookbook “experts” will tell you to cook a turkey at 325 degrees for a certain length of time, depending on the size of the bird. So much for experts. I have been using my own theory for 30 years. Ignoring the experts.

Here’s my theory.  I get a 15 pound turkey. Now, the “experts” say that you should cook a 15 pound turkey at 325 degrees for 3-3 1/2 hours. Balderdash. My common sense theory says  this is a waste of time. I don’t want to wait 3 1/2 hours for a turkey.  So, using common sense and math (Well, a calculator) my theory says this.

Cooking a turkey at 650 degrees will shorten the cooking time by exactly one-half. So, my turkey will be ready at 1 1/2 hours or so. No reason to wait for 3 hours. Simple. To the point. Common sense. A theory any idiot can understand.

I have been cooking Thanksgiving birds like this for 30 years and EVERY year, I mean EVERY year, the turkey ends up charred on the outside, partially cooked on the inside and a smoking mess. There is always a problem with the smoke filling the kitchen and the smoke alarm going off. I solve that easily by opening windows and disabling the smoke alarm ahead of time. Clever. The volunteer fire department is on retainer.

Why does the turkey always burn? For the first 20 years I figured it was a bad batch of turkeys. Not my fault. So I tried every turkey under the sun. I cooked each of the following , in order:

Honeysuckle, Butterball, Jennie-O, Norbest, Shay Brook, Riverside, Foster Farms, Boar’s Head, Plainville Farms, Trader Joe’s , Nature’s Promise, Perdue, Smithfield, Organic Prairie, Carolina, Pilgrim’s Pride, Applegate, Private Selection, O Organics, Cooper Farms.

As fate would have it, every one of these turkeys ended up being defective. They all burned.  They all filled my kitchen with smoke. Sad. Very sad. I thought maybe you just can’t get a decent turkey nowadays.

But then I thought. Wait. Maybe it’s the oven. So, I bought a new oven. Nope. Same problem. No matter what turkey I tried or oven I tried the end product was the same. I know that if only I had the right turkey and right oven my theory would be proven. It is just a matter of time. No amount of evidence can dissuade me from my theory.

Which brings us to the latest Tax Plan.

In 1980 Ronald Reagan had a great theory. A SPLENDID theory. Increase spending on the military. Give money to the rich by lowering taxes and they will create jobs. The economy will BOOM and unemployment will disapper. So, he put the theory into practice.  George H W Bush called it “voodoo economics” and said it would not work. By 1982 the US economy had experienced a recession and unemployment had RISEN to 10.8%. The GDP declined 2.7%. Opposite of the growth expected. Still, despite the evidence, it was a good theory.

In 1990 there was another smaller recession. This time George HW Bush was president. He had run on the slogan of “No New Taxes”. A great theory. Unfortunately circumstances beyond his control led him to abandon that theory and call for “revenue increases” to stabilize spending.  But he still had a good theory.

In 2001 George Bush had a theory. If we cut taxes on the wealthy they will invest in US jobs. GREAT! Wonderful theory. So, Congress cut corporate and individual taxes to stimulate the economy.  And he theorized that we needed to de-regulate big business. Too many restrictions were just strangling these major corporate and financial institutions. So, de-regulate we did. Excellent theory. Of course, it would take a few years for the effects to be felt. But the theory was sound.

And the effects were the biggest recession since 1945. Growth tanked to a negative 5.1%. Unemployment rose to 10%. Big money investors with all that extra capital did not create jobs in the US. Deregulated financial institutions simply made bad loans with investors money and went bust. (Well, they didn’t go bust, they got bailed out. Another theory. Too big to fail… even when they do).

When President  Obama left office unemployment was about 4%. A relatively stable rate. And there were no Obama-era recessions.So, the economy is back on track and continues to chug along. No reason to tamper with it.

BUT, we need to follow theories, not evidence. So, Congress is proposing the biggest tax breaks ever while proposing a massive increase in military spending . In 2015 the USA spent more on the military ($ 597,000,000,000 that’s billion) than the next 10 nations combined. The US spent more than the total spent by China, Saudi Arabia, Russia, UK, India, France, Germany, Japan, S Korea and Brazil…COMBINED). This is not to suggest the US does not need a strong military, but this seems a bit excessive. Spend more, take in less. Voodoo economics, anyone?

So, once again we are following a theory that has been shown to have no evidence supporting it, IF the goal is a stable , fair economic system. But the theory sounds pretty good.

For my part, I continued to use my theory to cook my Thanksgiving turkey. Despite the naysayers. OK, so it got burned again this year. No turkey for Thanksgiving. On the positive side, my wife has made a standing reservation for Thanksgiving at Hop Sing’s Chinese Restaurant.  She is  no theoretician. And I am developing a taste for Mu Shu Pork.

http://www.butterball.com/how-tos/roast-a-turkey

https://www.ranker.com/list/best-turkey-brands/ranker-shopping

https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States

https://en.wikipedia.org/wiki/Read_my_lips:_no_new_taxes

https://en.wikipedia.org/wiki/List_of_countries_by_military_expenditures

Leave a comment

Filed under Budget, Congress, Debt, Democrat, economics, Economy, Free Trade, GOP, jobs, Politics, Republicans, Society, United States

Booze and Women

Regarding the new GOP tax plan which shuffles billions of dollars from working Americans to the top one-half of one per cent.

“I think not having the estate tax recognizes the people that are investing,” Grassley told the Register. “As opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies.”

I am not sure if this is true so I interviewed 2 people. One is a billionaire heiress to a real estate fortune who shall remain anonymous. I shall call her Ivania. The other is a shmuck who worked in factories, sweat shops and as a teacher for over 30 years. I will call him Joe the Shmuck.

Me: Hello, Ivania. Congratulations on receiving a massive inheritance allowance and other tax breaks in the new tax bill.

Ivania: Thank you. No one deserves it more than me.

Me: So, how many jobs do you intend to create with this new found wealth ? Do you feel that you that have earned this windfall?

Ivania: Oh, yes. I have had to work very hard being born into just the right family. It is not easy being wealthy. For example, do we cater in Lobster Newberg or Filet Mignon tonight? Do we open the bottle of “Moet and Chandon Dom Perignon” or the “Boerl and Kroff Brut Rose” ? Would you have any idea which to serve? Commoners just don’t understand the intense pressure I am under.

Me: I see. Back to my question. What do you intend to do with this multi-million dollar windfall? Will you invest it in new jobs in America?

Ivania: Of course. My investment advisor has already begun adding to my investments. I have created thousands of jobs already in my tote bag and high heel shoe factories.

Me: But aren’t those factories in China? And Vietnam?

Ivania: Well, yes. But there is a trickle down effect. Eventually, as we create jobs in China and depress wages in the US, we will be able to bring back jobs to this nation I love so dearly. American commoners must be able to compete with the wages we pay in China. We hope to someday get those wages on par with each other. Right now it is those unions that prevent us from creating more good jobs in the nation I love.

Me: OK. So, you won’t be investing in the USA, is that the bottom line.

Ivania: (chuckling)  I got mine. That is the bottom line. Did I mention how much I love America?

So, after this rather unsatisfying interview I found Joe the Shmuck, retired factory worker and teacher.

Me: Hello, Joe the Shmuck. Can I call you Joe?

Joe the Shmuck: I have spent my entire adult life working for a living and paying my taxes. You can call me Shmuck.

Me: OK, Shmuck. Senator Grassley has made the comment that people like you will just take any tax break and spend it on women and booze. What is your response?

Shmuck: DUH. Of course we will. He is correct.

Me: WOW! So you admit that you will spend any tax breaks on women and booze? Really?

Shmuck: I have in the past, why change now? What choice do I have?

Me: Explain to me then why you should get a tax break if you will just spend it on women and booze?

Shmuck: Look, I worked two jobs most of my life. At least 8 hours a day. Some days 12 hours or more. I have worked in factories, day labor, teaching and coaching and advising students. All for pretty meager wages. So, what do you think? I am not going to come home and have a beer? Of course I spend my money on booze. Wouldn’t you?

Me: Well, ok. but what about spending all your money on women?

Shmuck: I have a wonderful wife and a wonderful daughter. Unfortunately they are money pits. I mean, who needs more than 2 pair of underwear? Women, that’s who. Who needs to get their hair done? Women, that’s who. Not to mention quality food, clothes and  thousands of other items the uses of which completely escape me.

Let’s talk about dental bills and braces, shall we? And schools class trips? And second cars? And dogs and all those expenses? And Xmas gifts? And tuition and fees?

Me: I am not sure that was what Grassley was referring to…

Shmuck: Well, anyone who has a wife and daughter (or husband and son for that mattter) knows what I am talking about. So Grassley is right. All I will do with any tax break is invest in goods and services right here in the US…wait…does that make me an investor?

Me: Sorry. Investors only invest in China. You worked . You supported your family. You drink beer. You are what we call…uh… shmuck.

https://www.washingtonpost.com/news/morning-mix/wp/2017/12/04/grassley-explains-why-people-dont-invest-booze-or-women-or-

https://financesonline.com/top-10-most-expensive-champagne-bottles-in-the-world/

https://www.forbes.com/sites/stuartanderson/2015/08/17/trump-the-hypocrite-investing-overseas-fine-for-him/#4d5a62aa1dc8

Leave a comment

Filed under Congress, Debt, economics, Economy, GOP, government, liberals, minimum wage, pensions, Politics, Republicans, Taxes, United States

I LOVE the IRS

It is April 16. Tax day has come and gone. I can finally admit it. I am a Revenuephiliac. I love the IRS.

I fear this admission will rain down anger upon my being. I will be hated more than Gandhi at an NRA meeting. Vilified more than Al Sharpton at a gathering of the White Aryan Nation. Be more harshly treated than Sarah Palin at a MENSA Convention.

But I confess. I love the IRS. Very Un-American, I know. But that’s the way I am. And here’s why.

The IRS is under attack. And has been for many years. The money budgeted for enforcement has been declining. Since 2002 the IRS budget has actually declined by 17%. Fewer agents means that the chances of getting audited are less than 1% for most folks, about 20% for millionaires and less than 1% for businesses. Some politicians, like Ted Cruz, have publicly stated they want to do away with the IRS completely. So, as a champion of the underdog, I take up the banner of our tax police. Seriously. They have a banner.

As the financial support for the IRS has waned on the one hand, fraud and corruption have skyrocketed on the other. Who could of guessed ? Fewer cops, fewer arrests. The Center For Tax Justice estimates that for every dollar spent on funding the IRS the US brings in $10 dollars in revenue that would otherwise be lost. WHAT ? A federal agency that makes money ? Others estimate that with long term modernization the actual investment return is closer to $200 for each dollar spent today.  There are BILLIONS of tax dollars going uncollected each year. Over $280,000,000,000 in overdue taxes will never be collected according to an IRS study from just a few years ago. And it is getting worse.

It has been a longstanding tradition to hate taxes. It is as American as racism or homophobia, to be sure. The nation was founded by tax dodgers. The Boston Tea Party was not a protest against free speech…it was a tax protest. And probably justified. Why pay taxes to those guys across the ocean? The Whiskey Rebellion? Same thing. Except this time it was why pay taxes at all. So, we have a solid history of being tax avoiders and tax cheats. All the more reason for the IRS.

After all, the IRS is nothing more than the domestic equivalent of our military or police force. And who can hate the troops? Or the police? They uphold the law, go after lawbreakers and make sure everyone plays by the same rules.  They support the democratic process and the rule of law.  They help collect the funds necessary to keep the nation moving ahead. They are the cop on the beat. The Marine standing guard over the flag.

Of course some taxes are pre-collected. The tax on the McDonald’s counter worker and the non-unionized VW assembly line worker. The cop. The teacher. The engineer. Anyone who works for a living. These shmucks can’t cheat on their taxes, and probably wouldn’t anyway.

Who could be against the IRS ? Tax cheats? Crooks? Organized crime? Money launderers for drug cartels?

Who benefits from a weak police force ? The honest citizen or the criminal?

So, join me in this IRS lovefest. Write your congressman. Ask for more money and better enforcement of our tax laws. What better investment is there? A $10-200 return for every dollar spent. In the end, if ALL taxes are collected, won’t you and I pay less? Won’t the honest citizen get a break?

Revenuephiliacs Unite! You have nothing to lose but your friends! And you might save a few bucks as well.

 

 

1 Comment

Filed under crime, Debt, Economy, Politics, Taxes