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In New York they are debating the cost of Pre K. Everyone thinks it is a good deal, but to pay for it by raising taxes on only the rich? The tax which is in discussion will cost roughly $1000 on incomes over $500,000. New York has a lot of those.
The anti-taxers are beginning their push-back. …. A little history might be right for the rebuttal….
Taxes are too low and that is the reason for most of our economic slump. Today’s low rates make it too profitable to skim money’s off the top… and nothing is getting reinvested back into the economy…. Taxes, we discovered across the expanse of the 20th Century, are a tool of public policy and today, they are not being effectively used…
Higher taxes and a stronger government presence in the economy, is essential to economic stability. The evidence to that is unquestionable. Deregulated markets do some good, but are not the complete answer to running a great society…. When one runs a business, one is always under constant pressure to reinvest some of ones profits back into ones business, or… choose to take the other option and keep the extra as profit. We all hate those who chose the latter.
If something is broken, one should fix it, right? That means spending money now.
Children of low income and minority households enter our school system with half of the vocabulary-words needed. There is no way that can be fixed at home. If one’s household does not use a wide vocabulary, one cannot get a wide vocabulary at home. Having Pre-K and exposing all children to 10000+ words upon entering school, would almost close the achievement gap at it’s beginning.
We know what has to be done. 10,000+ words per child. Just reading story-books with children would be enough to develop that… And the benefit would dwarf the tiny cost…. It is that simple; reading children’s stories to them… something affluent parents do daily.
On to taxes. From the 1940’s to the 1960’s the top tax rate gradually lowered from 100% to 72%… The JFK dropped it down to 60% to where it stayed until the great tax cutter, Ronald Reagan, dropped it to 50%… Obviously every Republican who loves Ronald Reagan should have no qualms with accepting a 50% top marginal rate… They should be volunteering to pay that high, don’t you think?
Rates were cut again to 28% and when the cut hit, the huge recession of ’91 began. Upon entering office, Clinton raised them to 39% and the economy took off. Took off until Bush cut taxes down to 35%…. They stayed at that level until last year, when the top half of one percent, got hit with a top rate or 39.5%….
This was the 1% most prosperous year ever…. needless to say, higher taxes improves one’s fortunes, not diminish them….
How much is $1000? To the super rich? If your average rate of return on $500,000 is 7%, over the year you should gain $35,000…. Divided by 365 days of the year, that would amount to 96 dollars a day… So $1000 would be 11 days of interest off your $500,000. That means you could keep the other 355 days worth…
Plus, at bringing all children in at 10,000 words, think of all the future costs that can be saved by then doing away with Pearson, MacLatchey, AIR and all the other consultants…. Pay a little now; save a lot later.
Any argument over being taxed more for kindergarten, or for any other viable reason, needs to be taken worth a grain of salt. of course people are going to yell. Even babies yell and they don’t even know why. But we don’t let babies rule every aspect of our lives now, do we?
Or, do we?
In 2012,…. 21.8% of all people under 18, lived in poverty, that is defined as a family of 4’s income under $23,050 (total yearly income)..That comes to under $443 per week. …
One in 5 children across America or 21.8%, live like that. (More than a majority of Americans (58.5%) will spend at least one year below the poverty line at some point between ages 25 and 75.)..
The ratio is one in five. In a class of 10, two students will be attending from a home under poverty. In a class of 20, four students will come from families living in poverty.
Below is childhood poverty tracked across 53 years starting in 1959.
Whatever we did from 1965 to 1979, we need to do again… See the low dip on the chart? Our current high level of poverty is very near the record, with one major exception. Unlike all other peaks we have plateaued at this bubble’s highest amount. Notice how in 1993 and 1983, the same levels were reached under those two presidents, but quickly descended thereafter? Since the election of the Tea Party Republicans to Congress, for the first time, poverty has stayed steady at the high water mark, for over 3 years in a row..
As soon as President’s Lyndon Baines Johnson’s War on Poverty took effect (50 years ago) child poverty declined until Reagan cut taxes in 1981… After he raised them back in a now famous agreement with Tip O’Neil, as the economy grew, childhood poverty fell. Again after Clinton raised taxes in 1993, the poverty level dropped over the rest of his term, until George Bush and the Republicnas cut taxes again… Since those taxes were cut, the childhood poverty level has risen to the record levels it is near today….
Tax Cuts have repercussions that extend far beyond the wealthy getting more money back in taxes. Higher tax rates boost the working economy; lower tax rates shred it…….
It is imperative that tax rates get raised as quickly as possible so this current plateau, the first 3 year one ever, the one created by the inaction of Congress because Republicans put the Tea party iin control of hte House…begins to drop down the other side.
Time is running out. like global warming there will be a critical point we know is coming but where it comes we can’t predict. The same urgency and fear need applied to childhood poverty and education’s role in helping end it…
First Buffet, now Gates. Higher rates of taxation are necessary to rectify our society, even if limited for the short term….
It is nice when those who have much money, recognize the reality.
What if we raised income taxes on the top 1% several percent with a sunset clause not tied to a year, but based on achieving a certain state unemployment rate.? Perhaps 4.9%?
Work that through sometime soon, please?
It depends on how much you make.
Bloomberg just published the top income estimates for 2013. It is 1928 all over again….
“the top 300 seeing their collective net worth rise by US$ 524 billion to US $3.7 trillion as 2013 ended,”
Were we to raise taxes on just that increased amount by only 1%…. we’d could cut our deficit by $5 billion dollars. Five billion dollars on the other hand, would pay for 16.7 million weeks of $300 Federal unemployment payments. 1,260,400 are currently waiting on Congress to pass an extension.
Twelve weeks of all their benefits could be covered by a 1% increase of taxes just on 300 people…. How badly will this hurt them? Well, it would be as if you were selling lemonade on the corner for $1 a glass, and some kid only had 99 cents. Sure, you’ll sell it… Point is that $5 billion dollars equals only one penny to these guys…
So why not take 2 pennies? Really? No one pays $1 anymore. Everyone pays 99 cents and discount stores start at 98 cents…
Two pennies would fund unemployment for 24 weeks… Will you take 97 cents for a glass of lemonade? Gee, 36 weeks, Done. Covered… How about 96 cents for an ice cool cup of sweetened Lemonade? Let see, it’s cost is only 16 cents per cup, so.. why not? Done! 48 out of a year’s 52 weeks, covered. Accomplished! Just like that…
And with no bump to deficit either…
You are smart enough to figure what to do next.
As with every year there are lost opportunities and lost grievences… Some things that have bothered us, disappear. Somethings that have bothered us, don’t….
This year was no different, and yet, it was very different…. If one asks oneself what was the greatest factor involving the entire year, then pulls back layer after layer until he gets the full perspective, I think he comes to a surprising conclusion….
This year, 2013 was the tipping point. We realized we are a third world nation when it comes to the proportion of wealth across our population…. Like global warming, this disparity was first proposed long ago. Like global warming it was argued by the power brokers that such a proposal was only a crackpot’s theory; it gradually gained momentum….
2013, brought that home…. In 2013, we had the party of the Teas, vote against giving New Jersey relief for Hurricane Sandy, and vote themselves relief when a little hail landed in their district…. In 2013, we had government shut itself down to stop Obamacare, then open itself without creating any change at all. In 2013, we had unemployment benefits cut, then reinstated, and now cut again… We had food stamps cut. We had a sequester go into effect to save $85 billion dollars….
We had the news media lead fake scandals… when the biggest scandal should be, how is Fox and CNN and CBS still able to call themselves news organizations? We had the IRS scandal… despite that they dealt evenhandedly with groups of both political persuasions. We had the Benghazi hearings… Much ado over absolutely nothing… For when it came down to why those four died, all fingers point to that very Congressional committee led by Republican Darrell Issa, which cut well over $100 million in funds that were specifically designated to secure advanced unsecured places of that type.
But when we had a real scandal, which was illuminated by Snowden, all the media shied away. Calling him a traitor for releasing the documents… As more came out, Americans began to really fully grasp the totalitarian phase our nation’s government was just on the threshold of achieving….
In 2013 we had civil right voting laws thrown out by the Supreme Court, and instantly all those dark ugly human traits those laws previously regulated, took over and sprang out into the open…
We had a rational push for gun control, that bumped into the irrational group against it. We did not win the first battle… WE did make considerable ground and showed the NRA was led by psychotic bloodthirsty killers, both nationally and locally….
And the unions… are all bought out… from the top down. Only those on the very bottom in our service industries, the Wal*marts, McDonalds, and retail outlets, who have nothing to lose, are bravely carrying the fight forward… They are on the right track…
Our sole problem in America is that out of every dollar that trades hands in our economy…. 50 cents of it gets sucked out by the top 1%…. The rest of America is economically playing with a half deck…50 cents on the dollar. No wonder job growth is slower than it should be?
If you invested, you love this year…. The year’s DJIA started at 13,000 and is now at 16,500…. 25% yield…. For every $100,000 you had in stocks… you just made $25,000….
We now realize this was at the expense of the QE 3. The Federal Government is lending the large brokerage houses all the money they wanted at zero interest, and instead of creating jobs, it went right into the stock market, chasing prices and making them higher…. When that free money begins costing the brokerage houses… those investments are going to deflate.
Most of America no longer has money in the market. The market is primarily owned by those at the top.
And education? We had corporate America exposed for trying their hand at teaching little children and failing miserably. Just as Corporate enterprises have now destroyed Facebook, television news, and are now destroying Twitter, the same forces demolished education. An attack on the public school system aimed to demolish it and install a privately owned system, is well underway…. It was all just theoretical until 2013.
The prime problem behind all of these?
It took a new Pope to make it mainstream… To tie all these individual threads into one rope. As he spoke, people turned to look at each other and said, ” Wow, why didn’t we see it before?”
When one homeless person dies on the streets it is not news. But the DOW drops two points, it is THE news….
What 2013 did, was bring to light that we were not a nation beset by little battles… Loss of labor unions, stymieing of minimum wage, fierce lobbying against Obamacare, a court controlled by corporate interests, lobbyists writing all our nation’s bills, What 2013 did was bring to light that all our “think tank” research, was pure propaganda, not research. What 2013 did, was show us just how much power and wealth lie in the hands of very few people…. roughly 100,000…… with most of that being held by a core of 1000 individuals…. Meaning 314,899,999 of the rest of us are out in the cold…
2013 showed us that the happiest people in the world, are those where wealth is more equally shared… to be happy, one has to tax heavily… A sharper sense of wealth is gleaned from looking at happy societies… Where there is enough wealth to be shared, it is… It makes little sense to pursue the opposite tack. To let those with money have it at no cost, and charge the masses heavily for their use of it…
2013, is the turning of the tide… Now when someone says low taxes are job creators they are viciously humiliated and never dare mention such again. Now when someone says trickle down economics work, we now know they are secretly praising how well it works for those at the top.
2013…. We know.
2014…. No Tea Party. No Republicans. No Third Way. Only by mandating that the wealthy who got rich over nothing, pay their fair share and everyone else’s fair share too, can we again create an economy and a nation that thrives from the bottom up…
2014 is the battle year. This is where those few at the top will throw billions into protecting the trillions they’ve made from our assets… But… they only have 1% of the population… The question is whether they can mobilize their toadies to vote and suppress the rest as they have successfully done in the past… when in truth, we were still half asleep….
The rallying cry for the 99% needs to be this: the 1% needs to do more for our nation!. We should not be ashamed to mention marginal income (including capital gains) tax rates over 50%, 60%, 70%… at least for the short term, until our economic war is over! That is not too much! Most livable nations have such. and the USA itself had such during our grandparent’s time, back when it was easy to go out and find a job…. we had more demand for jobs than we had people….
Income equality is the lens with which all items need to be viewed…. What that means is that with every question, every line item, every debate, this question gets asked…. “What does this proposal do to reverse income equality?” If it does nothing, it is not good…
What does controlling guns do for income equality? What do charter schools do for income equality? What does cutting taxes on Delaware’s 1% do for income equality? What does making the Port of Wilmington non-union do for economic equality? What does creating NO-prevailing wage zones in Delaware, do for economic equality? What does opening Beaver Valley to development do for income equality? What does raising minimum wage do for economic equality? What does Common Core do for income equality? What does opening Family Court to the public do for income equality? What does building a power plant that runs 24/7 on the brown fields of Newark, do for income equality? What does building a new Wawa in Newark, do for income equality?
I acknowledge some of those are stretches but that is what having a prime filter does. One looks at everything through that perspective…. It is one thing to bash the governor for a luckluster economy in his state…. Republicans do that too often, and offer neither specifics, or alternatives. It is another to bash the governor for ignoring 99% of Delawareans’ needs, or 990,000 people, to the benefit of 10,000, or 1%….. That is legitimate….
Hurting the 1% to the benefit of the 99% will cause 99 times more economic activity in this state. 99% of our citizens will buy more…. If those 1% continue to make more money off our localized spending, then at least they are earning their income honestly for a change….
Perhaps what is missing, is a retort, the kind that becomes a mantra……. When the Chamber of Commerce steps up to a microphone and says, …. “we pay most of the taxes in this state, we should not pay more…”.
The proper response hitherto missing, should be…. ” Then pay your employees more money, so they can help you share that burden…”
2013: the arrow was released… 2014 is when it impacts its target,….
(This came out last spring. Most of you have seen this. If by chance you haven’t, be prepared to have your mind blown. If you’ve become jaded since the last showing, prepare to have your mind blown again.)
Hello, hello, is anyone in there?
Nod if you can hear me… is there anybody home?
Get this… tonight as I speak… (or write) there are at the behest of Nancy Pelosi 174 Democratic Representatives who have signed the letter in support of adding unemployment benefits extensions to the new budget about to be voted in….
Without them, everyone who is on extended unemployment, roughly 4.1 million do not receive an unemployment check in two weeks. They are destitute.
29 have at this point, not signed…. Here they are…..
Ron Barber (AZ-02)
Jerry McNerney (CA-09)
Zoe Lofgren (CA-19)
Raul Ruiz (CA-36)
Scott Peters (CA-52)
Susan Davis (CA-53)
Jared Polis (CO-02)
John Carney (DE)
Joe Garcia (FL-26)
John Barrow (GA-12)
David Scott (GA-13)
Robin Kelly (IL-02)
Tammy Duckworth (IL-08)
Peter Visclosky (IN-01)
Andre Carson (IN-07)
Timothy Walz (MN-01)
Collin Peterson (MN-07)
Sean Maloney (NY-18)
Bill Owens (NY-21)
Dan Maffei (NY-24)
Mike McIntyre (NC-07)
Kurt Schrader (OR-05)
Mike Doyle (PA-14)
Pete Gallego (TX-23)
Henry Cuellar (TX-28)
Eddie Johnson (TX-30)
Filemon Vela (TX-34)
Jim Matheson (UT-04)
Adam Smith (WA-09)
Time for your Democratic Nominee for next year’s Congressional election to have a “Come To Jesus Meeting” with his party’s faithful……
233 N King Street, Suite 200
Wilmington, DE 19801
Phone: (302) 691-7333
Fax: (302) 428-1950
Toll-free (877) 899-7872
1406 Longworth HOB
Washington, DC 20515
Phone: (202) 225-4165
“John Carney…. You are receding…. A distant ship’s smoke on the horizon…. You are only coming through in waves…..
You’re lips move…. But we can’t hear what you say!…….”
You have become……….
How does one grow Delaware Jobs?
- Does one say…. Here come here and will shave a penny off the cost?
- Does one say… If you work here, we will bend regulations to cost you less money?
- Does one say… Our productivity is high because our employees are smart?
- Does one say… There is no better place to live on this planet?
If you are good at what you do, you probably try all three…. (If that didn’t set off signals in your brain then step three is not even in the running).
We have strikes against us… We are are the 40th lowest economy, due to our small size… We have 39 bigger economies competing against us.
Any one of which can under-bid us on business taxes and make up the difference by raising their sales tax rate a penny….
So, against this, how do we increase Delaware’s jobs…
Well we’ve tried the carrot… Now the stick. There are businesses already heavily invested in Delaware…. Why not give them the option to write off new building costs?
In it’s simplest and most abstract form, it works like this:…..
Since paying taxes and building something both equally help the economy of the state, it makes no difference and is a simple trade off from the states economy’s point of view, as to whether the money goes directly to the treasury or indirectly, by being invested into new buildings on business properties… Therefore now is the time for businesses to expand, for that expansion can be written off the tax owed to the state…
The initial lost revenue will be returned in part by the taxes on the new jobs, and by taxes on the business transactions that mushroom as a result of this policy….
So as a business owner, you have this choice. You can pay the state and never see that money again, or you can build upon your property, and keep that money invested in the increased value of your assets… When you sell, you recoup the amount you invested so it is not lost revenue; it is not wasted… Plus the expansion now means your yearly net income is higher as well….
But at Delaware’s current abysmally low rates, even allowing the expansion write off, would benefit only a few of the larger, more prone-to-expand, business entities across this state…. Which is why it must be accompanied with a higher tax rates to create shock and awe among the principle players…
Taxes are based on the amount of money left over. Simply put, if there is no money leftover in a business, there is no tax… There is therefore incentive to maximize one’s profits in the field, and then minimize them on paper…. That incentive, creates the expansion that hires people… most particularly those in the construction trades….
Tax increases drove the WWII economy. The post war expansion. The Clinton Revival. And now this year, 2013… States enacting tax increases such as California and New Jersey, are doing much better now than states reveling on their lack of taxation and their lack of regulation…
More is better in this case.
Delaware has one of the weirdest tax state income tax delineations. The percentage climb stops at $65,000…. A person who makes $65,001 pays the same rate as does someone who’s financial empire brings in $65 billion dollars… We have much room to pay with. This year Delaware needs its General Assembly to act and pass a state tax system such as below…. This is just a first draft that will, and should be tweaked by the lobbyists scrambled by the powers that be to do damage control….
$1 Trillion and above…. 15%
$1 Billion and above…. 10%
$100 million and above…9%
$ 1 million and above… 8%
$100,000 and above… 7%
No further changes are required….
As an example New Jersey’s economic stimulus new tax hike rate stands at 8.97% over $500,000…. No one is going to run away from Delaware because of our increased tax rate…. unless they run away in order to pay even more.
Based on sources inside Delaware’s Department of Revenue, this would increase our state’s annual revenue intake by roughly $220 million dollars or about 7% of our current revenues…
What that should mean for every Delawarean, is that there is a very good likelihood that most of this will be invested right back into this state, if a that change in state tax code is made, thereby allowing the complete write-off of all domestic construction on this tiny patch of earth, only 35 miles wide, and 96 miles long…..
If you build on that small patch, Delaware won’t tax you the amount you spend upon the building. Delaware needs to jump on this idea first. Otherwise other states will take even this competitive edge away……