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As we approach the new year, the clowns will begin dropping out and all begin to take a serious view over who can be our next president.  By now a normal trend; it happens every four years.

The reason we have to put up with the clowns is  because across all of America, there is gross disenchantment over  the way things are.   A gross enchantment so huge, that unifies both the extreme right and extreme left into a larger classification.

These two opposite sides actually have a common denominator.  Both sides are both unhappy how the needs of real human beings are being trumped by those whom they have elected and trusted to serve them.

On the right it is the tea party types who are erroneously easy to dismiss as primitive forms of intelligence.  On the left is its those who exhale in triplicate just to hear themselves breathe, usually with complaints regarding how good programs are not good enough to their liking.

Or so each are characterized by the other side’s talk radio hosts…..

But in reality, both have a deep love of the America they grew up under and see it slipping away by the minute.  Both share the same vision that America needs to be great again, but simply differ on the approaches required to achieve that aim which can be characterized as such.  The left believes we need to change somethings in our system of governing; the right believes we have to change individual people one by one.

The common enemy in both parties surprisingly is the bloc of moderates spanning both parties who compromise too freely against their parties values and who seem  too prone to cater to business at the expense of individual constituent’s wishes and demands.  Rather bizarrely, we three parties, if you include this business class in the middle of both and only when two of the three agree, does anything get accomplished.

In Delaware this is played out in the opt out movement where the Governor (business party) used his veto and the head of the House of Representatives (business party) shows no sign of bringing it up to be overturned.. Enough votes (Dems and Repubs) are present to do so, just little procedural matter is all that is now boxing up the two wings wishes…’

Nationally the same scenario is being played out in that all the candidates are the same except one.  Only one candidate of either party is taking on corporate America.  All the rest are fortressed and supported by Corporate America marking all the differences actually existing between them as petty and insignificant when compared to the pressing needs at hand.

No matter who is elected, we can have no real change over the next four years unless that one who is different and from Vermont, wins.

So despite all the banter our main stream media is giving us, (whose staff is primarily and pathetically reduced to snooping on Twitter and putting that up as “real news”), the real question emerging as voters begin to look seriously, needs to be:  who will actually make that change that benefits me?

Only one.  Right now only one candidate’s platform can make the huge changes required to wean America off its penchant for developing profits, and turn America back to work on developing its people. Which is what the extremes of both right and left believe need to be done.

Because behind all the arguments about trade, abortions, shootings, and economics, the real solution to making your life better, is to put more money into your pocket as well as the pockets of the rest of the 99%.,…

Because you really aren’t politically free, unless you are also economically free. For unless you can quit that job you don’t like, can’t stand, or hate, and quickly find another one, you are not free.  If you have no choice but to work at that crumby job, you simply do not taste freedom.

Only one candidate’s platform will change that now;  it requires raising taxes on the one percent.

According to Fortune estimates, on this planet global households together have amassed over  $250 trillion in assets.   The one percent now owns 50% of that which translates into their ownership of $125 trillion in net worth. If this net worth were conservatively earning 7% per year in interest ($17.5 trillion), and the capital gains tax were raised to 50% marginal levels only on this select group, it would pump a lost $8.5 trillion back into the economy per year.

This is money that could be spent on combating global warming.  This is money that could be spent on making normal citizens earn more.  This is money that could be spent on ending hunger world wide. This is money that could rejuvenate cities providing great future for ones youth. This is money that could be spent on education.

And this money is absolutely free.

For the $7.5 trillion taxed and reinvested through governments around the world will offer (at minimum) a 2:1 rate of investment, meaning that the $7.5 trillion taxed and spent will generate a yield a $15 trillion return on that investment. Which since the wealthy own one half of all wealth, this means they get to re-pocket $7.5 trillion which they just gave up.  And if investment returns are higher, by ratios of 3, 4, 5,  even 10, they make out big time. Win, win, win.

Right now, only one person says he will do this.

Compared to this sea change, none of the other little things matter. If that yearly $7.5 trillion dollars through increased economic activity, is averaged out to all the 7.5 billion of this planets dwellers (of course it won’t be), it actually gives every single person a $1000 dollar increase of money they get to keep… They will see it in two ways; one they will see part of it in expenses going down and part of it in salaries going up.

Only one person across both parties fields has the wisdom take on Wall Street now knowing that it gets more expensive to do so by each hour.  OUT of all the candidates on both parties… ONLY ONE is not beholden to the interests of the top 1%.

You need to send him  money, whether you’re a Republican or Democrat. Both party’s networks are thoroughly tainted by corporate money. But one person isn’t…

In 2002 we gave the top one percent a loan from the American people which was to make us all wealthier over time.  They got their money, and kept it; we were polite and nice about asking for restitution. Apparently enough time has gone by, they think it is theres.  Meaning, it’s now past time we called back our loan which we originally gave to the top 1% via the Bush Tax Cuts. …

 

 

 

 

 

 

 

 

 

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Usually things can be easily grasped if you avoid the details and look at a broader picture…  Of course, I’m not saying never look at details… That would be silly…  But I’m saying that if you approach all situations from the bottom up, you really don’t have a clue unless you luckily enough to reach the summit and look down…  It is like climbing a mountain… If you just walk uphill… you may get there… or you may hit a wall that cannot be climbed… But looking at a satellite photo of the mountain first, you can easily track a general path, then deal with the details discovered on the ground when you get there….

What politics all comes back to, is what I first heard while making the rounds with my dad. That old man on the porch who said between cigar puffs…. “Kid… politics is about who gets the money and who controls it…”

That held for my county then, for our counties now, for our state, and federal too… Understanding  that politics is all about money, makes one understand ahead of time what will pass legislature in any given session, and what will not…

There are many ways to divide the pie…  one can base it on color of skin which has been tried in our history.  One can base it on gender, which has been tried in our history… One can base it on land ownership which as been tried in our history…  But over the course of time, each of those distinctions have fallen.  And good riddance.

Now, thanks to mass media, there is a new distinction… Between those who can buy ads to threaten lawmakers, and those who can’t…  (For simplicity more than accuracy, we will from henceforth, call them the 1% versus the 99%…..)

If one looks at the 1%’s slice of pie, prevailing wage bites into it… They have to pay a higher wage than what they could find in cheaper labor…  I mean who could not be against prevailing wage if it meant you had to pay more money which you could, if the trend were gone, keep to yourself?    So these guys do have motive, one that is dear to each and all of our hearts. Keeping their money.

But even rich people know that an argument saying:  make these people suffer more so I can become EVEN richer does not hold water in any forum.  In fact that argument is the kiss of death… So instead they find a third party to portray as victim… which is the government…  Their argument:  our government is paying more than it has to which is a waste catches more flies especially during hard times….

There are some mis-truths here that need pointing out…

One is that doing away with prevailing wage does not cut cost for government…  It does nothing like that at all in our system of bids …. Our government asks for bids, and it chooses one…. Most often there is only one bid.  That bidder gets what they ask… And with prevailing-wage-principles now gone, the owners pocket that extra incremental which was previously blamed on Prevailing Wage…

So whereas on paper one can anticipate all the labor being used on government contracts and take several dollars off every total and call that a potential savings…. it does not show how other mysterious costs will bite into and suck out those alleged savings, funneling the money over to the 1%’s bank accounts.

In other words, there will be no savings because the 1% will steal them… WE THE PEOPLE will still pay $65 million for a construction job, but instead of 53% going to wages which get spent in our state, now only 43% goes to that place… Losing prevailing wage takes money like a giant vacuum cleaner right out of Delaware’s economy… Instead of funding projects to benefit people working, we are funding the same projects to benefit those who take the money immediately right out of the state’s economy which quickly gets locked up and we will never see it again…..

Bottom line of losing prevailing wage?… A.) No money is ever saved by our government.  B.) Our Delaware local economy suffers net loss. C.) The top 1% grows 10% richer with every project the state funds….

In very surprising language from a very Conservative Pope, (Pope Francis’s predecessor)  Pope Benedict lays it out very clearly…

Today, budgetary policies, with cuts in social spending often made under pressure from international financial institutions, can leave citizens powerless in the face of old and new risks; such powerlessness is increased by the lack of effective protection on the part of workers’ associations. Through the combination of social and economic change, trade union organizations experience greater difficulty in carrying out their task of representing the interests of workers, partly because Governments, for reasons of economic utility, often limit the freedom or the negotiating capacity of labour unions. Hence traditional networks of solidarity have more and more obstacles to overcome. The repeated calls issued within the Church’s social doctrine, beginning with Rerum Novarum[60], for the promotion of workers’ associations that can defend their rights must therefore be honoured today even more than in the past…

Hence, by degrees it has come to pass that working men have been surrendered, isolated and helpless, to the hardheartedness of employers and the greed of unchecked competition. The mischief has been increased by rapacious usury, which, although more than once condemned by the Church, is nevertheless, under a different guise, but with like injustice, still practiced by covetous and grasping men. To this must be added that the hiring of labor and the conduct of trade are concentrated in the hands of comparatively few; so that a small number of very rich men have been able to lay upon the teeming masses of the laboring poor a yoke little better than that of slavery itself. 

So, if you read the above you can plainly see  we have a head of the largest Christian denomination the Roman Catholic Church, calling for the continuance of policies like Prevailing Wage, and endorsing it…. “What God has brought together; let no man cut asunder.”

What just happened June 30th, was that the total economic pie of Delaware, the one that gets divided up between the haves and have-nots, just got a little smidgen taken from the Have-Nots and  added to the side of the Haves which already own over 50% of the pie .

  • A.) No money gets saved by the Government.
  • B.) Less money now filters through our grocery stores, our restaurants, our small businesses, our handyman our landscapers, our repair shops, or our mechanics….
  • C.) The noose for 99% of us becomes tighter by another notch, which with a one way slit knot, can never be undone except by cutting away the noose altogether..

The good news is that some form of prevailing wage still stands for larger contracts.   The bad news is that we have less pie than we did a week ago, to feed all 1 million of us living today in what once were the three former counties of Pennsylvania….

But the effects of reducing prevailing wage can be countered by a government and local economy…. If we would just create an excessive tax on the top one percent while giving them the option to write off everything they spent on capital investment that year…. they themselves would have the incentive to pay more and government would not have to step in and support wages with a minimum floor… Pictorially, If the top 1% had to continuously give back the slices of pie they continuously stole from us, they would stop stealing, is basically the point of taxing excessively those only in the top tier.

Or, if we could again legally protect every American worker from being fired if they stopped workage as long as their work stoppage was linked to getting higher wages, then those wages would increase through bargaining under that threat, and laws supporting prevailing wages would no longer be necessary…

But since 1980 we have cut back on those two forms of balance so until they are restored, today’s current political climate which is controlled by the owners of excessive money , demands the necessity of continuing prevailing wage just to keep all wages higher, both private and public, since all wages have to compete for labor against the highest one on the market…

But it is ultimately our failure as a state to jump-start massive local investment by levying huge taxes on all monies the top one percent won’t spend on local capital improvements here within our state’s boundaries,  that causes us to have to defend the concept of prevailing wage.. We NEED prevailing wage just for the simple reason that all of its well-spent money comes straight to us… to all of us in the local economy when those receiving it in their paychecks, spend it!… Without prevailing wage,  it’s the Caymen Island bank accounts which swell with yours and my money…………  instead of our local economy.

Prevailing Wage like every thing in politics… is only about who gets to get their hands on the money….. Why shouldn’t it be you?  There is no reason.  Just that you didn’t ask for it; You didn’t defend your rights to it; you elected people paid for by the other side… Your lack of having enough money today comes down to your own damn fault….

Isn’t it time you did something about it?

Delaware’s 1 percent reported average income of $863,734 in 2012.  There are 4747 filers in Delaware who meet the 1% threshold.

What that means is that half of those, 2424 have to make more than $863,734…

Currently everyone making more than $60,000 each year, pays the same marginal rate. … So all these 2424 pay the highest rate of 6%…..

So if all 2424 average above $863,734 then the minimum income available to be taxed would be this product of both.

2525  X  $863,734  =   $2,093,691,216   That is as in two billion…

Therefore, if we raise tax rates on this group, with each percent, we would raise $20,936,912. ($21 million) Enough to fund all of Delaware’s casino losses for a full year or the average spent on Race To The Top per each of its 5 year cycle; or a one percent raise for all of Delaware’s state employees.

Keep this in light of the startling fact that this group grew incomes at 15%….  15% of $2 billion is $300 million.   So whereas this group of 2424 top 0.5%’rs grew incomes at $300 million yet paid the same rate as someone making $60,000… that person stuck making $60,000 lost income at 1.6% but still paid the same rate as those earning a combined $300 million a year….

Which is why saying we can’t fund seniors credits for school taxes is nothing less than a joke…. Perhaps such might be true, IF WE WERE TAXING THE TOP 0.5% AT ABSURD HIGHLY RIDICULOUS RATES.  But we aren’t.. 

  • California charges 13.3%… It’s economy is booming btw.
  • Oregon charges 9.9%… Doing well too.
  • Minnesota at 8.95%… No harm there.
  • Iowa 8.98%… Those corn huskers are quite happy there.
  • New York 8.82%… Everyone “Hearts” NY.
  • Our neighbor, New Jersey?  8.97%….

Even Republican Scott Walker’s state, Wisconsin charges higher:  7.65%!!!

There is a lot of room to expand….

Here is the recommended rate schedule that Delaware needs to implement.

  • Incomes over $400 billion   @ 12 %
  • Incomes between $400 and $100 billion  @ 11%
  • Incomes between $100 and $1 billion  @ 10%
  • incomes between  $1 billion and $400 million @ 9%
  • incomes between $400 million and $100 million  @ 8 %
  • incomes between $100 million and 1 million.   @  7%
  • No change for incomes under $1 million…

The reason for the above is contingent on how much each level of income impacts the local economy.  Those who don’t provide a local benefit with their purchases, should be taxed higher than those who do.  And keep in mind this is all taxed marginally… That means the the first million for all of the 2424 is taxed the same, and only those amounts that expand over into the higher brackets will pay out at a higher rate….

For any sacrifices to be borne at all by those losing income at rates of 1.6% without ramping up the donations exculpated from those whose incomes rose 15% over the same identical time frame, is simply unjust, immoral, and positively Un-American.

These people have to be taxed more.  No if’s; No and’s; No but’s.

It is so obvious… Like hitting you in the eye with a big Pizza Pie!

The top 0.1% (consisting of 160,000 families worth $73m on average) hold 22% of America’s wealth, just shy of the 1929 peak—and almost the same share as the bottom 90% of the population.

A tidbit upon which historians will agree, was ultimately why the Democrats were not able to capitalize on the phenomenal results of today’s thriving booming American economy.

Republican policies created this imbalance.  But it is Obama who as CEO, gets the blame for its residual effects.

How to fix it?  A marginally accurate 73% tax on incomes over $73 million would turn the tables nicely with no residual effect to the other 99.9% of the population…..

Came across an amazing chart from the Paris School of Economic’s database.  It allows you to customize your search for any time or place over the world.

My area of expertise is within the US and here is what I wanted to see:  the percentage of national income earned by the top 0.01%…. not just the top 1%, but the top-tip 0.01%.

Tax rate impact firsttax rate impact secondtax rate impact thirdtax rate impact fourthtax rate impact fifth

This shows the past 100 years of national income percentage earned by the top 0.01%. There are some very striking facts noticed by those looking at this data for the first time.

1) The year 2012 was one of the record highest, beaten only by two years during WWI when the rest of the world was embroiled in war, and our top echelon were selling to both sides…. If one extracts that exception, then in 2012 we gave the top 0.01% (one hundredth of one percent) more of our national income than at any time previously recorded.

2) The Great Depression did little to affect the income percentages (1928-1932);  Roosevelt however (1933-onward), did a lot.

3) During America’s most prosperous times ever, after WWII made us the sole global economy, the incomes of the top 0.01% stayed under 1% of national income across the next 43 years. (1943-1986)

4) The Reagan Tax Cut of 1986 caused a doubling of the top 1%’s income in just 2 years. from 1% in 1986 to 1.99% in 1988.

5) The percentage again dropped under 2% after Clinton’s tax hike in 1992 causing a robust expansion, but passed that 2% mark in 1997 never to return.

6) During the “w” Bush years, the percentage continuously climbed peaking in 2007 and would have peaked higher in 2008 but the recession clipped the last two months off that year. Despite that, 2008 was the 2nd highest grossing percentage up to that time (discounting the WWI anomaly) across almost 100 years of data.

7) The Great Recession (2008-9)  as did the Great Depression (1929-32), had little effect on the top 0.01% percentage of national income. At no point did their yearly take dip below 3%, a mark first crossed in 2005 (if one continues disregarding the anomaly of the First World War).

8) The rebound ability of an economy at large is hampered when more money collects at the top and is not returned as investment to the bottom. Though small in percentage points, those difference of those 3 percentage points ( from under 1.0 to 4.0) translates to $500 billion that did not impact our economy because it went to less than 31,000 Americans.  Considering our TARP was passed only for $800 billion, we only saw $300 billion net running through our economy. because $500 billion of the $800 billion was handed over to less than 31,000 people then quickly whisked away to foreign bank accounts beyond the reach of the IRS.

9) Although difficult to state through all the multiple influences that impact economies daily, the extensive overview shown by this chart makes it clear that were we to have another great recession, we should first use the incomes of our top 0.01% to first rebuild our national economy as did Roosevelt, and not assume that those wealthy will do so voluntarily as did our creators and negotiators behind this current rebound.

10)  Data from 2013 will be most interesting.  The Bush Tax Cuts for the top 0.05% were rescinded that year, and at that point, our economy took off ( at least when Republicans weren’t threatening to shut it all down).  If it does indeed show a drop in the top 1%’s income, then we will know that in order to have robust recoveries, those at the top need to be taxed more, not less.

As for politics, this needs to be taken to heart.  Anyone who argues for less taxes on the top 1%, be they Democrat or Republican, needs to be shown the door…. We now have sufficient data to know with certainty, and from it, we can see all evidence points that higher marginal tax rates do benefit the middle class and subsequently the economy at large…..

This historical chart rings that out, clear as a bell at the end of a day’s trading…..

income_growth_and_inequality

You should be making $18,000 more a year right now.  And would, except for the inequality put in place  beginning with the trickle down policies of Ronald Reagan… now more appropriately called “tinkle” down economics… 

The bottom get pissed on.

The heavy line shows where you would be if the average rate of growth from across the years ’79 to ’10 were applied evenly.  The lighter line shows the reality….

99% of us are all earning an average of $18,000 less than we should be…  So how does this break down?

Average household incomes grew by 53.4 percent from 1979 to 2007. But that didn’t break down equally:

  • The bottom fifth of households saw their income go up by 29.2 percent, well below the 53.4 percent average.
  • Income for the middle fifth of households grew by a measly 19.7 percent.
  • But how did people a little higher up, but not at the very top, do? A little better, but still below average: households between the 81st and 90th percentiles—so in the bottom half of the top fifth of the income ladder—had just 39.1 percent income growth. Again, well below that average of 53.4.
  • So how far up do you have to go before you hit the average? The 91st to the 95th percentile almost got there, with 53 percent average growth. But they fell just short. Households between the 96th and 99th percentile seriously exceeded 53.4 percent, though. They had average income growth of 78.1 percent.
  • That’s nothing compared to the top 1 percent, though: Their income grew by 244.7 percent, close to five times the average.

It is clear that most of the overall income gains from 1979 to 2007 bypassed the vast majority of American households. As such, their living standards are lower than they would be had these gains been shared more broadly.

Ways To Share More Broadly.

A.  Raise the Minimum Wage:  $10.10 is a start.  

B.  Organize More (and throw out ineffective current bosses) Unions. Override All State Laws Outlawing Unions.

C.  Reduce Wage Theft:  charging workers for uniforms, drinks, food, supplies. Cheating on overtime.

D. Tax the top 1% appropriately…  Include Capital Gains as income. Tax Corporations at the same rate as individuals. Raise the top marginal percents to these levels…

  • Over $1 billion in income…  tax rate of 60%
  • $500 million to $1 billion in income  = 55%
  • $100 million to $500 million in income  = 50%
  • $50 million to $100 million in income =  45%
  • All the rest: no change….  

On top of this, allow all money put into capital improvements, to be deducted dollar for dollar. (Capital improvements require building things).  The rational is that if you put that money into capital improvements, you are improving this nation as much as if you were directly paying taxes to it.  Perhaps more so.

This can be done, but it must be done with a Democratic Executive, and over 60 Democrats in the Senate (or change the filibuster rules), and a fully Democratic House.  That is what has to happen for any change.  If it doesn’t happen then Americans rightly get what they deserve for being stupid.  Because we all know that Republicans are quite happy with the very fact that you ARE making $18,000 less than you should and quite happy that they are the ones receiving it, not you……. 

It wasn’t supposed to go that way. And it shouldn’t go that way….. 

 

 

 

 

 

Delaware’s Unions, particularly the Building and Trades, have over-stepped.  In a world where the one percent owns 45% of America’s assets, where billions are being spent to destroy unions in every capacity, where the middle class has succumbed to its worst level since 1880, the rat-demon that the Building and Trades chose to blacken, was Delaware’s biggest friend of labor, John Kowalko.

There is something very sick in Delaware’s unions…  That this was ever allowed shows complicity with the 1%.

The only people hurt by not putting the power plant inside the University of Delaware, were those investors who spent $800,000 and got nothing.  It would be safe to say none of them were of the 99%.   When something else goes in, those jobs will be there as well.  Labor did not lose one job…

Instead, we just got further proof that in Delaware, labor has been coerced, infiltrated, and is being run by the 1%… No normal working man would want to poison 30,000 people into cancer by his efforts.  We all know the 1% have no qualms with killing people as long as they make over 5%…..

Organized labor is no longer working for its members.  Whether it is the DSEA, AFSCME, or the Building Trades, the lack of new jobs here in Delaware is due to only one thing.  Their coziness with those with money… the big 5 developers and their friend, the governor.

I know the details of why there is a history behind it this coziness.. But there was also a history behind Colonial America and Great Britain… But at some point a split had to occur.

When you have Quisling leaders telling their members that “yeah, they are doing everything they can”, and at the same time telling the Delaware Way that they “got their people handled”, it is their members who are getting royally screwed…..

It is past time to scrap old leaders.  It is past time for new aggressive leadership, someone in their 30’s..  It is time for work stoppages again.  It is time for muscle…  When you have our ex-heroes, “organized labor”, those who built the America we had (at least up through 2000),  attacking their most ardent legislative supporter in the General Assembly because he wouldn’t go along and maliciously kill 30,000 of his constituents with cancer, you have a corrupt and poorly lead organization…. They are not working for their members; they are working for Charlie Copeland!

I hereby pull my support for prevailing wage….  and urge John Kowalko and every legislator elected from the Greater Newark Area up through Hockessin to do so as well. … 

Until unions get new aggressive leadership who will daringly take on the Delaware Way and grind it up and crush it, forget it, I won’t reconsider. 

 

This will be a brief teaser for labor day… Why, is the middle class (labor) suffering so much today…..

US Corporations get around the US’s high tax rate of 35% by stashing money offshore.  The average corporation pays 12.6% according to the GAO in 2010….  This means that half of America’s corporations pay higher, and half of America’s corporations pay lower…  HALF OF AMERICA’S CORPORATIONS PAY LOWER THAN 12.6%?  REALLY?

During America’s boom times, when the middle class was almost guaranteed a job for life with a pension plan and a gold watch, corporate taxes were set as high as 52.8 percent. Later rates were lowered to 48 percent and then 46 percent.  It was only after 1986 when they were lowered to 35% that the middle class problem begin to emerge….

Across history there is a direct relationship between higher taxes and higher wages… When tax rates are high, wage rates are high. When tax rates are low, wage rates are low.  (As an additional benefit, the higher the taxes, the higher the employment level goes as well.) In fact there is such public good in charging the wealthy higher taxes with no downside, that is is literally amazing we aren’t doing it. Everyone benefits out the gazoo!)

The way America’s corporations get around this 35% rate, is by stashing cash abroad.  There is $2 trillion of America’s money kept overseas, and not brought home to keep it from being taxed… You pay taxes. I pay taxes, yet corporations think they shouldn’t… How fair is that?

Keep in mind.  This is by their own volition. They are not forced to keep that money offshore. They could bring it back anytime they wished.  They choose not to do so… And that money is what funds campaigns for cutting taxes.  That money is what buys both Democrat and Republican allegiance to no-tax pledges.  I would bet that some of that foreign money is in Tom Carper’s, Chris Coons’, and John Carney’s campaign slush funds right now..

$2 trillion at 35% is $700 billion that should have already been in our treasury… That is money we borrowed unnecessarily to cover our expenses which if a proper administration had been in the executive branch would have already been there, from corporations…  The balance, $1.3 trillion would have then been available here and could have been invested in our nation in the form of jobs…

There was some discussion, primarily from Michelle Bachmann, as to give a blanket amnesty on these taxes to get this money back,  But that is like saying you won’t prosecute a bank robber if he comes back and spends his money in your home town…  What bank will he rob next?  And what about all those people who had their money stolen from them?  Michelle and her Republican cohorts seem not to care.

So why are corporations really renouncing their “citizenship?” Simple answer, is they are doing this so they can pocket hoards of “deferred” offshore profits without ever paying the taxes they owe on these profits….

A (different) tax loophole called “deferral” allows companies to avoid being taxed on their non-U.S. profits until they “bring the money home.” Because of this loophole, corporations have been taking steps to make it look as if their profits are made outside of the U.S., and have piled up about $2 trillion in cash that they are keeping out of the country.

Dave Johnson explains. “Here is how the deferral scam works. An American company sets up a non-U.S. “subsidiary” in a tax haven. That non-U.S. company gets or produces goods, services, patents, whatever, at a low price. (This often involves shifting paper (and copyrights, patents) around to make it look like profits are not made in the U.S., but in too many cases this means the U.S. company actually moves U.S. jobs, factories, production, call centers and other assets out of the country.) The subsidiary sells to the U.S. company at a high price. Most or all of the profit is therefore made by the non-U.S. subsidiary, so the profits are considered to be non-U.S. and taxes on those profits are “deferred.” This still counts as profits for the U.S. owner of that subsidiary, but the U.S. company does not have to pay taxes (they are “deferred”) until they “bring the profit home.””

These corporations see that if they renounce their citizenship before the U.S. fixes this loophole, they can just keep the money….

But does this money REALLY stay offshore???  As you would certainly expect, of course not….  The non-U.S. subsidiary company “loans” money to the U.S. parent. So all of the non-U.S. cash actually is available to the U.S. parent. But wait, there’s more. The U.S. parent pays interest to the subsidiary, which is deducted from taxes and reduces the U.S. tax bill even more. ..

If complicated, it isn’t.  I hire you as my buddy in crime.  I give you all my money… I say, look, I’m broke, I can’t pay any taxes!  You lend me my money back to me… I spend it tax free and the money I do make, I write off as interest I give back to you… So I keep everything I make here … No taxes…

Ways to fight this… very important on this Labor Day…

A.  Hold Democrats accountable.  Don’t let them (Tom Carper, Chris Coons, John Carney) get away with helping corporations rob the American workers, who do pay all their taxes and who are subsidizing these corporations money-making schemes.

B.  Support proposals by President Obama to use executive action to stop “income stripping” and to keep “inverted” companies from getting government contracts

C.  Support the Stop Corporate Inversions Act of 2014 in the Congress… Obviously obstructed by Republicans.

D. Support a proposal to tax companies based on their percentage of sales that occur in the U.S.,..

One must wonder, why is this even in the tax code?  The reason is so U.S. companies can use “offshore” profits to invest in growth. This is a win-win because we want U.S. companies to do well, and because the U.S. is supposed to benefit when profits are brought home and taxes are paid….

A very simple way to fight abuse of deferral is to charge a fee of, say, 7 percent a year on all deferred profits. The full amount of taxes is to still be paid when profits are finally brought home, but we collect an additional 7 percent a year until they are….

So enjoy your Labor Day.  We’ve got some real work to begin tomorrow…..

 

 

 

Please Riot Here

When riots happen in Wilmington, which i’m sure they will, I hope they will learn from Ferguson Missouri’s mistake.

That mistake is to riot in your own neighborhood… That is just plain silly. Did we attack ourselves when the Japs bombed Pearl Harbor? Or did we wage war with Japan?

Why people would loot and burn in their own neighborhood, is beyond me. I write this now, so when the opportunity to riot does occur, those with above average intelligence will have a plan to move the crowd out of their impoverished neighborhood, and instead riot in neighborhoods where the a) the loot is much better, and b) those responsible for the policy that has kept you down since Clinton left office, are directly affected. If you are going to riot, you should do in on the enemies home turf. Republican Country.

A riot has a purpose. It is to change things. To make things better by creating a situation that is worse than doing nothing, therefore something has to be done. Blacks didn’t protest on the back seat of the bus. They sat in the white section. Black students didn’t do their sit-in at the black counter. They did it at the white. Black students didn’t march into Tuskegee Institute with the National Guard. They marched into the all white University of Alabama. Martin Luther King didn’t do his marches within all black neighborhoods. He marched across the bridge into downtown white Selma….

So battling police in your own neighborhood, looting your own corner store, burning out yours and your neighbor’s houses, kind of double hurts you. Not only are you being oppressed by Republican Policies, but you are also setting those who support you, back even more….

So I’m writing this to tell you where to protest so it will do you some good.

It is called Westover Hills. There aren’t many people living there, but those that do are rich and very old and feeble. They couldn’t stop a crowd breaking into their house if they tried. Plus, when you loot, you could actually get something you could sell. Whose going to buy all the banana flavored Laffy Taffy you stole from the corner market? But you could easily swipe a Bose Stereo, or maybe find a safe with a couple of hundred thousand in it.

And instead of hurting mom and pop, or Uncle Joe and Aunt Alice, you would be hurting those whose money is directly responsible for you not having a good job, a good house, a good future. Those in Westover Hills vote Republican and it is Republicans who have allowed all the money to go to the top 1%… and none to you…

If you remember the Clinton Democratic years, it was different. You, or your mom and dad, did get richer every year and if that had only continued, you would have been doing rather well by now. But you got lazy and enough of you didn’t vote for Democrats in 2000 and now, we are stuck with the rich getting richer, and you and your neighbors, getting poorer…

So take the number 20 bus from 10th and Market side of Rodney Square and in 8 minutes and 15 stops later, you will be just north of the riot zone. Do your peaceful protests there, in the middle of the streets, and shout how Republicans have ruined everyone’s lives but those of themselves… When the riot police arrive with their single tank and tear gas, make them fire it at you so all those rich billionaires have to breath it too. Then when all hell breaks loose, break into the houses and rob yourselves silly. Don’t even worry. Unlike those corner stores, everything you take here is fully insured… Destroying their property, will in days, put all Delaware’s construction workers back to work. These guys are rich. They don’t dilly-dally around.

The main point is this? When you riot in your own neighborhoods which these Republicans never venture into, it only serves to reinforce their notion of you as a sub-human race. “Look at those pathetic people”, they will say over their Maker’s Mark and Hennessey, “they’re tearing up their own neighborhood. Maybe we should keep them doing it so they move and haul their sorry asses elsewhere.”

They will not be in any hurry to lift one finger… “make them suffer more” will be their outcry. But … if you do it in THEIR neighborhood, they will at least wonder why? In their asking around, what’s the real cause of these people rioting, they will come to the conclusion that they, with all the money, need to invest more, need to hire more, need to pay more, and that if they had previously invested more in our people, this riot would never have happened. That is your key… Getting them to call their out-of-pocket legislators and say, “raise my taxes; we can’t afford any more riots like these, even if we are insured. It’s the third time this year. I’m too tired for another round of tax free shopping!”…

You can even walk there. So forget the bus. Just send the coordinates out on social media, and anyone with a phone app can get there…. It is pointless for you to have to bear the cost and trauma of what THEY caused. It makes such great sense for them to bear that cost, and after doing so, quickly create the changes you need to pull yourselves out of poverty…

So pastors and neighborhood watch leaders. Start talking your kids to riot in Westover Hills, instead of your own street. Isn’t it about time, the real criminals get to feel the heat?

They are the ones who put you there…. Make THEM pay, not those who are poor like you. And pick up something nice for me while you are there… A nice oriental carpet would be cool… blue and white if you find one.

It’s this upcoming 2014 one.. It sets the national stage on whether anything will get done for the next four years. The next president will be powerless to exercise the will of the majority, if the majority party of voters do not vote in their full capacity…

Especially for those under 30. Many of you have parents who are facing retirement and wondering how they will survive. Many of you have parents who are still benefiting of the legacy of your grandparents, who may have left their ample resources to them when they died…

The Grandparents benefited from the New Deal. Your parents were victims of the raw deal. The raw deal which said that if we became conservative, everything would be just rosy.. No details on how, it just would…

Your parents big battle was in 1980… Carter versus Reagan which was a battle not between two men, but over which group of men would get to chart the next 30 years… That thirty years corresponds to your parents from their 20’s to their 50’s…

The two groups of men were the same as the two who battled for dominance under George Washington and have been contentious ever since… The investors versus the People…. When you really benefit the people, you hurt the investors. When you benefit investors, you hurt people… We are currently in an investment-favor phase that began with the election of Reagan in 1980. There are times when both groups benefit accordingly, but moderately. But soon someone always battles to push their side into dominance, and due to the frailty of most politicians, it is usually the moneyed interests which attempt it first…

In your parent’s defense, they’d only seen the New Deal. To them, Reagonomics sounded new, bold, daring and inspired. Little did they think to look at the track record leading up to the New Deal to see how it would unfold. There WAS a reason the New Deal was enacted… Investors care little about people’s woes.

So probably right now, you are looking for work in your field. That field which you put your hard work and dreams into pursuing, only now to be employed waiting tables, or sloshing drinks, or calling up deadbeats in late hours hoping someone picks up the phones… What you are experiencing is the woe felt by countless people across history since the powerful first realized that life at the top is great, only if you suppress those underneath. While you suffer, their investments have made over 100% or more over the past 5 years…

This election is yours… This election settles for YOUR 30 years whether the investors get to keep control, or whether they finally can allow those programs to go forward which cost them money but at the benefit to millions of fellow citizens. Ironically, if America gets richer, they do to, but not as fast if if we give everything to them now…

If you don’t vote, or vote to keep the investors to continue blocking progress, you are setting yourself to 30 years of the same. It doesn’t have to be that way. Your grandparents chose Democrats and Franklin Roosevelt based solely on his promise to better their future with government programs, which the investors forced to foot the bill.

There was nothing wrong with that plan. At the time of Carter’s last years in office, the 1% held their least amount of national wealth EVER. Meaning of course it was split among everyone else… Coal Miners who before the formation of the Union, owed their souls to the company store, literally, were now buying RV’s and boats and taking their kids on vacations across the country… It’s all about who gets the money….

If you don’t vote, and investors win, this will never happen to you. But if you vote in force, and all of your generation, in every state, votes your frustration, you dreams, and your hope for the future, and put thier faith into the party that is there for the people, … then you will succeed over the next 30 years as did your grandparents.

Your grandparents who had nothing, are now sitting pretty. Your parents who had the best any generation has ever had, are now struggling… It was all in their choice of choosing who should lead, between the investors and the people..

The Republican party is there at the behest of the investors. The Democratic party is there for the people… Right now, a minority of investors is stymieing all progress for you and your fellow citizens. Only you can change that…

It’s your grandparents choices versus your parent’s choices…. but it is .. your choice.