Who needs a tea-bag? – The truth about income, taxes, and the past 30 years

I got involved in a discussion on Ed Brayton's blog earlier today, which referenced yesterday's Tea-bag 'protests'. As a result, I ended up doing some research on pre/post tax income from 1979 to 2006. Taxes in this case is defined as 'effective' tax rates according to Congressional Budget Office (CBO) guidelines, not some 'subset', or arbitrary, or marginal rates. These are the taxes actually paid, and the income actually retained. Based on the data presented by the CBO, with all dollars equalized to the 2006 value, the richest 1% of Americans saw their incomes after taxes increase by 256% since 1979. By comparison, the poorest 20% of Americans saw their income increase by only 11% after taxes over the same time period. Putting this another way - in 1979 the wealthiest 1% earned, on average, 22.6 times the poorest 20% ($337,100 -v- $14,900). By 2006, the wealthiest 1% had extended their lead to a staggering multiple of 72.75 times the poorest 20% ($1,200,300 -v- $16,500).

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Have you been teabagged by a republican, today?

I saw this at the gym last night, and almost fell off the treadmill! So many opportunities for double entendres - it's classic! Finally, something to thank our republican friends for! Although I refuse to imagine being teabagged by the likes of Armey, Beck or Cavuto! nuff said. Here's the video! (© MSNBC.com, posted by ThinkProgress)

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States don’t have to wait for stimulus payments

What with the Congress mulling over plans for stimulating the American economy, there is an even more critical role to be played by the states in delivering aid to those hardest hit by our current economic crisis. States are where the tires hit the road, and states can act much more efficiently and quickly to meet the specific demands of their citizens. Even after the states have taken action, Congress can support these actions with direct funding and augment the strained budgets the states face with declining tax revenues in our recessionary economy. I’ll use an example from Missouri. We have just elected a Democratic Governor after four years of a GOP Governor who spent his time giving tax breaks and favors to corporations and contributors and left the State of Missouri with a budget shortfall of over $300 million. We have a GOP lead legislature in both chambers of our bicameral legislature. So far, everyone has promised “bi-partisanship” and all are looking at ways to make up the differences in funding because Missouri, like all states, has to have a balanced budget. Regardless of responsibility for why revenues are down, the Governor apparently will have to cut the budget in the current fiscal year to make ends meet. I say apparently because of that pesky requirement we balance or budget each and every year. So how does a state government fully fund priorities when immediate cash revenues keep that from being done? Here’s how . . .

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What are taxes good for?

I received this email from a regular reader in response to one of my responses to my Creationism in Florida Schools post:

“The real question that comes to my mind after reading this St. Petersburg Times poll is, should we allow popular demand to decide what is taught in science classes?”

How about for deciding what is taught in science, deciding tax policy, setting social programs, setting foreign policy, etc., etc., etc.? Should we allow popular demand to decide for these as well? I think we currently do, and I think it is with the same disastrous results. The next logical question is how should we pick the deciders? The problem is, we will never move to the next logical question.

What was considered ancient political wisdom at the time of the Caesars was: If the people can vote themselves bread and circuses, they will. Concentration of capital is the primary benefit of a taxation system. It allows big things to be done by a people of whom no individual member can afford. Government social programs (a form of insurance that used to be the province of churches, thus the tradition of tithing) are an example of dilution of capital. As is the Economic Stimulus Package that raced through our government checks and balances without much of either.

The examples of Ancient Greece, the Medici families (practically an empire unto themselves), the California legislature, and the Summerhill project (as described in the book by A.S. Neill) show that, …

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How a $10 Enterprise rental car became $40, but not more.

For me, a car is a means of getting me from A to B.   I just don’t “get” the idea of spending money for a “luxury” car.  But many people aren’t like me, and rental car companies know this. Two days ago, I rented a car through Expedia.  I reserved the…

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