The DEATH TAX! The Proliferation of Dumb costing practically all of US

Oh the priorities of Members of Congress and the bandwagon effect of misinformation.

We have 9 bills and 2 resolutions in Congress. These 9 bills combined have approximately 300 cosponsors (I did not take the time to see how many cosponsored multiple bills). [It’s true that all of these bills will not reach the Floors of the respective Chambers. I merely went to Thomas and typed ‘Estate Tax’ for the numbers listed above].

http://thomas.loc.gov/home/thomas.php

From the 15 April edition of The Hill:  “Both parties fired up over estate tax” concerning the vote scheduled in the House. 

House Majority Whip Steve Scalise  (R-LA) said Tuesday that it is “morally wrong” for a family’s toughest decision after a death to be figuring out the next steps for their business. “That’s not supposed to be something people have to deal with when they’re grieving for the loss of a loved one.”

http://thehill.com/policy/finance/238862-both-parties-fired-up-over-vote-on-estate-tax-repeal

“Morally wrong, Mr. Scalise?” We’re not talking about things that happened a dozen or years ago sir. Like I wrote my opinion of you did not change following the story first reported by Lamar White on his site cenlamar.

Steve Scalise and David Duke

http://cenlamar.com/2014/12/28/house-majority-whip-steve-scalise-was-reportedly-an-honored-guest-at-2002-international-white-supremacist-convention/

Here, however what is wrong Congressman Scalise is that REPEAL the DEATH TAX may be a popular cry to get votes, but please relate the facts.

  • A) The exemption level for an individual is $5.43 million (couple $10.86 million) so only amounts exceeding that amount are subject to the “DEATH TAX.”
  • B) Last year a total of 970 families would have benefited from a repeal of the DEATH TAX.
  • C) Repealing the DEATH TAX to benefit approximately 1,000 families per year over a 10 year period will cost approximately $270 billion.

I agree that many things that people must do following the death of a loved one can be some of the most difficult an individual experiences. The emotions and just one’s own personal grieving mechanisms can cloud judgments and honestly slow movement faster than a dense fog over the Atchafalaya Basin can stall traffic on I-10.

The truth, however, is that cancelling the Death Tax will not assist many people grieving the loss of a loved one. Most, meaning practically all of us, in the United States will never have to make any decision because we are not heirs to estates worth more than $5.43 million.

My Grandparents and my Mom left love, knowledge, and memories upon their respective passings which are priceless to me, but nothing that had any financial value. Most likely, unless I pass away first, the same will be true of my Dad.

I’m not an accountant so I’m not familiar with GIFT TAXES professionally or personally. Leaving the grief aspect out and assessing only in a fiscal sense if someone gives you control over property whether in life or death are financials between a gift recipient and heir really that different? Rates aside, the primary difference on the surface appears to be that instead of the donor paying the tax, the heir or person receiving a gift pays the tax.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes

Maybe this is representative of the mindset, perhaps not, of those who favor this House action supported by Congressman Scalise, but the highest rated comment on this Hill article reads:

“The sheer glee liberals exhibit when confiscating other people’s money and property tells me everything I need to know about liberals. For some reason, they feel rich people should be punished. If my grandfather had a billion dollars earned through busting his rear to build a company and he wants to leave that money to me, why does that make you so angry? We didn’t hurt anyone.”

Is There a Double Standard or is it just my perception?

  • Am I missing the part where this individual did anything to earn a billion dollars, or was that money earned because his or her grandfather busted his rear to build a company?
  • Isn’t the heir benefitting merely from being born into the family?
  • If taxing the value greater than $5.43 million is punishment, then what about that child born into a family with nothing?
  • What about that child forced to provide for his or her own shelter, clothing, food and well-being at an age where a child should be able to believe in Santa Claus and dream of unicorns?

If everyone truly had equal opportunities, why is one child punished and having to bust their rear for pennies while another is angry because they only receive $5.43 million tax free just because their granddad, great granddad, or some ancestor many generations passed busted their butts and the ancestors can merely sit on their butts and thrive financially doing nothing?

Privilege doesn’t exist?

We all have the same opportunities?

No, we can all work.

Here’s my personal example of privilege just from being born

Let us say that someone standing next to me might be able to outwork me 100 fold and may have 3 times my intelligence and ability, but at the end of our respective lives I’ll still be further along a path merely because I started life picking strawberries and that I’m not old enough to truly remember when my Dad did not work in retail for K&B.

Folks that’s real life and even though I cannot identify a specific individual in my example above, I accept that it is a fact because it has happened throughout the history of the United States. My ancestral prosperity might not sound great in a monetary sense. My Grandmother when she passed away had a closet full of washed clean assorted sized pieces of used aluminum foil to be reused. Every place I have ever lived, you’ll find a stick with a bent nail which I’ll take on a walk to pick up aluminum cans to sell at a salvage yard. Graduate degrees or not, I’d probably be the same mindset because that’s how the adults I respected as a child in the Hungarian Settlement lived.  Make do; waste not and want not.

My privilege was being born into an environment with love, encouragement to learn, and role models to instill the mentality that I’m supposed to earn things and to overcome obstacles. I recognize and acknowledge the importance of that as I try to teach others what was taught to me. What I had in those respects was far greater than some of my friends, and it was not because I was or am “better” than any of them.

The “morally wrong” thing is to repeal the estate tax because doing so only assures that privilege and aristocratic dynasties can continue merely because some ancestor succeeded and the heir feels like they have “earned” what someone else shed blood, sweat, and tears obtaining. Even if that ancestor earned those riches by suppressing or even stealing from the ancestor of one of the heir’s peers, it’s apparently that peers fault for being born in the wrong family.

The budgetary thing that Mr. Scalise and others supporting this repeal fail to mention:

 The Estate Tax Is a Significant Revenue Source

The estate tax will generate about $246 billion over 2016-2025 under current law, according to CBO. {Footnote: Congressional Budget Office, “Updated Budget Projections: 2015 to 2025,” March 9, 2015, https://www.cbo.gov/publication/49973}

While this is less than 1 percent of federal revenue over the period, it is significantly more than the federal government will spend on the Food and Drug Administration, the Centers for Disease Control and Prevention, and the Environmental Protection Agency combined. Most budget experts agree that more deficit reduction — on top of the significant measures of recent years — is needed to address our longer-term fiscal problems as the economy strengthens.

Even without the loss of estate tax revenues, deficit reduction is difficult. Cuts enacted so far will affect funding for programs ranging from education and medical research to law enforcement and environmental protection, as well as for programs that alleviate hardship and expand opportunity for low- and moderate-income Americans. It would be irresponsible for policymakers to add more than $246 billion to the task of deficit reduction by cutting the taxes of a few wealthy estates while at the same time asking for further sacrifices from less-fortunate Americans.

{Footnote: The cost of repeal would exceed the $246 billion that the estate tax is expected to raise over the decade because repeal would further encourage taxpayers to hold assets with unrealized capital gains until death to avoid taxation}.

Source:  http://www.cbpp.org/files/1-8-15tax.pdf

Who is going to replace that amount of revenue?

How will we achieve deficit reduction by decreasing revenue in and never agreeing long enough to even hold cordial, let alone rational, discussions on what can be cut to reduce the deficit.

Equal treatment can at times be a noble thought, but as humans we are often unwilling to recognize that we have been the ones who have received special treatment and thus oppose that same treatment afforded to others.

The Problem With Equal Treatment in America

Federal Budget, Easy as Pie

Tax, Spend, tax, spend, so often criticisms of the Federal government fall into one of those broad categories. I reckon that just about everyone wants to cut spending. Well at least cut the spending that is not benefitting them. Likewise it’s rare to see “raise my taxes” campaigns.

Last September I wrote about the Federal Budget process and the concept of funding via Continuing Resolutions. Links to overviews of the budget process, appropriations process, and the nuances regarding continuing resolutions are available in this piece.

https://lablouisianaboy.wordpress.com/2013/09/29/how-hard-does-congress-work-in-todays-united-states/

Now the Federal Budget is easy as pie, well a pie chart maybe which ain’t as good as a made from scratch homemade apple pie. Actually those pie charts ain’t that simple easy whether they simply represent a visible guide on paper or implemented into the real world where paper statistics become people who do suffer and feel real pain. It’s one thing to make decisions sitting behind a desk and isolated from the effects, and it’s a different ballgame making those decisions in real time out in the midst of the action.

For FY 2015, the Federal government will spend approximately $3.9 trillion which is roughly 21 percent of the GDP. That spending is broken down into 3 broad categories, and here are projected spending levels:

  • Mandatory Spending:  65 percent
  • Discretionary Spending: 29 percent
  • Interest Payment on Debt: 6 percent

Mandatory spending consists of earned benefit programs which are determined by eligibility rules and not decided through the appropriations process. Social Security is an example of mandatory spending.

Discretionary spending consists of government expenditures which go through the Congressional appropriations process each year. While it is true that Congress has not passed a budget for quite some time, it is inaccurate to say that no budget exists. The last budget passed remains in effect, and for the most part the different Congresses have chosen to use the previously set amounts as guides. (Yes there are variables such as sequestration and such, but the above is merely a broad summary of the topic).

Interest payments on debts should be self-explanatory. One important concept to remember, however, is that the “Debt Ceiling” involves money already spent. Think about it as things that have been bought on credit. It has nothing to do with current or future spending, so these arguments to not raise the debt ceiling essentially mean that we refuse to pay for things that have already been consumed. It’s reneging on a debt. The real problem lost in the partisan rhetoric is that either more revenue is needed or less spending has to occur. Personally I think the wisest approach is a combination of increasing revenue and cutting spending.

For example the revenue lost from the issuing of tax breaks exceeds the amount of money which will be spent for discretionary programs. Officially tax breaks are called tax expenditures because they are no different from spending.

The classic argument is that tax breaks spur other economic activities which benefit the country and population. Many times that is true. The problem, however, is that once enacted these tax breaks or expenditures are permanent unless an expiration date exists within the break itself. Unlike discretionary spending with its annual appropriations process, a tax break does not expire unless it states so in the break or until a Congress passes a law ending that provision.

Here’s the issue. Over the years the number and cost of these tax expenditures have increased. Some of these breaks no longer spur the other economic activities. Some proved ineffective from the start. Still, they remain part of our tax code.

Folks we can argue the merits of different discretionary funding all we want. We can talk about shifting the eligibility requirements for earned benefit programs such as Social Security or social welfare programs such as SNAP until we are blue in the face. The sad fact is that we can be on completely opposite ends of the spectrum about what should be done concerning the above, but we could find tax expenditures that just don’t make sense to either of us.

Of course that doesn’t solve our differences. It does, however, buy us time to work on settling our differences without the added urgency of being driven further and further down the hole.

Yes, you or I can walk in rural America and find someone who refuses to try and help themselves through what we might believe is honest work. We can walk in urban America and find certain people doing the same. I believe most of us would also find people who truly need assistance or help which hopefully create an opportunity to become more self-sufficient.  It’s a difficult balance, and our perspectives along with our respective paths make our observations different.

I understand that. I get that. Still, we are talking about drops of water in a 5 gallon bucket. Yes those drops add up, and a small leak will drain a bucket faster than one really anticipates. The problem as I view it, however, is that while those drops are dripping from the bottom and we are rushing to stop that leak we are spilling much more water over the top.

If I’m toting a leaking bucket of water across the field and can reach the other side with ¾ of the water leaving a “snail trail” of droplets in the dust, I accomplish more than if I tried running with that bucket and reached my destination with only ½ while a puddle has developed somewhere along the path.

Now the smart thing would be for me to find some alternative. I could plug the leaks, find another bucket, or start stretching out some hoses and tapping into one of the well heads. The size of the leaks, distance, and other factors will determine the most prudent step. Even knowing the smart thing, it might not be the correct thing because I only have a limited window to get water to where it is needed. It might make more sense to get 75 percent at a time or 50 percent at a time. Unless I’m out there, I can’t say which avenue would be the best at that point and place.

I’m just saying that when I try to stop a leak, I look for the source of that leak. Then I try to stop that leak from the place losing the most down to the place losing the least.

I’m just saying that you can have the strongest tow chain available, but the strength of all those links won’t help you pull out of the bog if one link is weak or damaged.

I’m just saying that we need to make reviewing the tax code line by line a priority. We’re already losing so much with the tax breaks, expenditures, loopholes, that stopping those leaks would result in the ability to actually lower tax rates and still receive more revenue.

Would you like to see what it would take to allocate where your tax dollars go?  It would require making some tradeoffs, and tools are available for you to try your hand at the task here.

I highly recommend the National Priorities Project as a source for a host of Federal Budget information.

The Art of Government, How to Get Elected to Congress Today

“Historically, the debt ceiling has proven the most effective leverage for reining in spending; 28 times, Congress has attached meaningful conditions to debt ceiling increases.”  Ted Cruz

Ted Cruz, the People do Remember

Would anyone, I don’t care if you claim to be liberal, conservative, moderate, Democrat, Republican, Libertarian, communist, Communist, Christian, Muslim, Buddhist, Atheist, Agnostic, Southerner, Northerner, East Coast, West Coast, black, white, striped, polka-dotted, Martian, native of Jupiter, believe or disbelieve in unicorns, or as hard as it is for me type, do not like the New Orleans Saints, please cite the Constitutional or historical precedent in the United States of America where Members of Congress cannot address issues important to the country without attaching it to must pass legislation?

Just one example of Senator Cruz’s idea of a meaningful condition attached to debt ceilings.

Public Law 113-3, “No Budget, No Pay Act of 2013”

Here’s the legislative action summary:

We still have not had a concurrent resolution on the budget by both Chambers, and it is now February 2014.

http://www.cbpp.org/cms/?fa=view&id=155

http://budget.house.gov/budgetprocess/

What passed in January was a spending bill. It had to be signed by the President. A Budget Resolution is not a law, and we still do not have a current budget with technically the last Budget Resolution to pass both Chambers still in force.

http://www.senate.gov/CRSReports/crs-publish.cfm?pid=%270E%2C*PLS2%23%20%20%20%0A

http://www.politifact.com/tennessee/statements/2012/sep/28/bob-corker/bob-corker-says-senate-has-not-passed-budget-more-/

Let’s leave the 27th Amendment realities out.  Have Members of Congress been paid?

http://www.huffingtonpost.com/2013/10/17/congress-paid-shutdown_n_4116192.html

http://www.washingtonpost.com/blogs/post-politics/wp/2013/10/01/which-lawmakers-will-refuse-their-pay-during-the-shutdown/

How much does Congressional pay and benefits cost taxpayers?

http://www.examiner.com/article/how-much-does-congressional-pay-and-benefits-cost-taxpayers

https://lablouisianaboy.wordpress.com/2013/12/26/congressional-versus-veterans-perks-and-benefits-and-partisan-media/

Meaningful conditions are attached, Senator Cruz? The President is the one picking and choosing which laws to enforce?

https://lablouisianaboy.wordpress.com/2013/09/29/how-hard-does-congress-work-in-todays-united-states/

https://lablouisianaboy.wordpress.com/2013/11/21/should-congress-recess-without-doing-their-constitutional-duty/

Exactly who is working Senator or Congressman?  Just insert anyone’s name, but remember that it can all be blamed on the President (either Obama or Bush, Jr.), liberals, progressives, RINOs, Democrats, Republicans, Tea Party conservatives, conservatives, Constitutionalists, constitutionalists, or anyone who doesn’t look, believe, or is different in any manner from me. Or is that you and not me?

Whatever happened to We and Us?

Ted Cruz, the People do Remember

The debt limit or debt ceiling subject has appeared previously on this blog with an introductory outline regarding the history of this virtual cap.

Please separate your ideological feelings about government spending and revenue collection for just a few minutes. Yes, the United States is in debt which grows by the minute because of interest on borrowed funds and continuous spending. The country spends more money than it receives.

The debt limit or ceiling concerns money the country has already spent, so our current imbalance of receipts and expenditures are not fully connected. Without raising the virtual cap, the country defaults on its legal obligations which has never happened in our history. We do not know the ramifications of such a failure, but one could expect financial distress and chaos in every country. We have experienced the impact of a potential default with the lowering of the credit rating.

There are nuances between raising the limit, temporarily suspending, or in some cases redefining the concept of the limit, but for simplicity sake consider all in the same boat. Almost 80 times since 1960 that virtual cap has risen through Congressional actions. If someone wants more specifics please see the CRS publication, The Debt Limit:  History and Recent Increases by D. Andrew Austin and Mindy R. Levit.

Yesterday the House voted to temporarily suspend the limit, and the Senate also voted in favor today. Your regular news sources will have features on the drama in the House about attaching riders, which were not attached, and in the Senate today with Ted Cruz actually attempting a filibuster unlike his pseudo filibuster last year.

The Cruz office issued a statement yesterday which is linked here and copied below.

“If you ask anybody outside of Washington whether we should keep increasing the debt ceiling without fixing the underlying problem of out-of-control spending, the answer is ‘of course not.’ This answer cuts across party lines and ideology—outside the Beltway, Republicans, Democrats, Independents, and Libertarians all agree that living within your means is basic common sense. And yet Washington is not listening to the American people.

“Under President Obama, our national debt has increased from $10 trillion to $17 trillion, and now the President is asking for yet another blank check to keep increasing our debt without doing anything to reform Washington’s spending problem. This is wrong, and it’s irresponsible. Our parents didn’t do this to us, and we shouldn’t do it to our kids and grandkids.

“Historically, the debt ceiling has proven the most effective leverage for reining in spending; 28 times, Congress has attached meaningful conditions to debt ceiling increases. We should do so again to address the real problem. I intend to object to any effort to raise the debt ceiling on a 50-vote threshold. I will insist instead on a 60-vote threshold, and if Republicans stand together we can demand meaningful spending restraint to help pull our nation back from the fiscal and economic cliff.”

In paragraph one, I’ll agree in principle with Cruz although he is combining 2 distinct issues into 1 because the underlying problem to use his words is about current and future spending and not debts already incurred.

In paragraph two, my question for the Senator is to cite the Constitutional provision where any President of the United States does the spending. Congress has not passed any budgets which one can blame on either Chamber or political faction. Let’s say that the House Budget Resolution which many like to call the Ryan Budget was enacted into law. Both the Congressional Budget Office and House Budget Committee reviews come to the same conclusion. The GOP Budget would itself require multi trillion dollar increases to the debt limit over the course of the coming decades.

In paragraph three, Cruz is putting lipstick and blush on a gator as we would say back home. Historically the reigning in of spending has nothing to do with increases to the debt ceiling. The decisions to cut spending came from the Members of Congress. I’d argue against his number of 28, but that’s hogwash on my part. If the riders were so meaningful, why is spending still out of control to use your assessment? Seriously, these riders have been nothing more than political gamesmanship by whichever Party has been in the minority in the specific Chamber.

  • Why can’t you or any Member of Congress address the “real problem” with its own legislation?
  • Could it be that neither you nor any Member of Congress cares to take that step?

Today Senator Cruz released the following statement which is linked here and copied below.

 “Today’s vote is yet another example that establishment politicians from both parties are simply not listening to the American people.  Outside the beltway, Americans of all political stripes understand that we cannot keep spending money we don’t have.

“Some members of Congress care so much about being praised by the Washington media that they’re willing to mortgage our children’s future. They pretend we don’t have a problem and can just kick the can down the road.

“Let’s be clear about the motive behind this vote — there are too many members of Congress who think they can fool people and they will forget about it the next week. But sometimes, come November, the people remember.”

  • I give those who voted in favor and those in the Senate who voted to end the Cruz filibuster credit for not for not threatening the faith and credit of the United States of America by causing the country to default on debts already incurred.
  • Senator Cruz, I hold those who voted in favor and those who opposed accountable for not addressing the real problems facing our country.

“Let’s be clear about the motive”

Senator Cruz rather make political headlines bashing everyone else. He’s grandstanding for his next election.

Senator Cruz show me where in the Constitution of the United States of America or identify when and where in the history of the United States of America that subject matters such as spending, efficiency, and taxing are required to be attached as riders to legislation. I’m not limiting you to debt ceiling increases, but asking for any precedent since George Washington took the oath of office.

I wonder what became of the Pledge to America from 2010?

What’s worse, someone who fails to do their job and walks away or someone who fails to do their job, blames others, and does their best to prevent anyone from attempting to do their job? That’s what bothers me about Ted Cruz. We have all this talk, but no action other than that to stir up a feeding frenzy by chumming the water without any concern on what the sharks might do.

  • Democrats continue to blame Bush.
  • Republicans continue to blame Obama.
  • Tea Party continue to blame everyone but yourselves.

Just stop the continuous nonstop campaigning for reelection or your next election.

You probably have a job lined up on K Street already, so why not try leading the country by acting as representatives of the people of the United States of America and not self promoting spokespersons for your political party and special interests.

The White House Charlatan

Tell people what they want to hear, and you may become popular and rich....Tell people what they need to hear, and they can become empowered while you fade into the shadows

I love the study of history. That’s fortunate since I took so many college history courses, earned degrees in history, and teach college history courses. What I love though is discovering that regardless of what is taking place today it is possible because someone either did or failed to do something in the past. Something happened or did not happen and that minutia did in some fashion influence subsequent events whether we accept it or not. It’s amazing to think about what my parents, grandparents, and those before thought about, dealt with, questioned, and tried to answer when they were my age. It can be a humbling experience.

My own work in political history is less about the individuals in government and those seeking elected office but more about the impact elections and legislation had on people like my great-grandparents, grandparents, and parents. What one feels and remembers at the time often changes when that present becomes the past and one can reflect upon both the individual trees and how those trees are a part of that portion of the woods or forest.

As we all know, it is often easy, too easy in some cases, to rewrite the past. That task seems only difficult when we carry a deep scar from that past. It is not as easy to rewrite a personal tragedy or sadness. That may have occurred in our history, but it remains in our present and may influence our future.  How, though, is often yet to be determined.

We have written here about the debt limit or debt ceiling if one prefers that term. Our friend over at EconprofAJ had this piece. As we know, the issue on raising that amount is already being debated and will become a focal point next month as the country once again moves, actually flies at supersonic speed, to that previously set amount.

The topic is already a subject of debate on a particular “conservative” “news” website. The moderators of the website usually refer to the President as “Dear Leader” with comparisons to Adolf Hitler and NAZIs. The moderators and the cache of loyal followers who comment also refer to Obama as a communist which to them is not a far stretch from NAZI since the acronym refers to “socialism.” If I could draw people, I would make an illustration of how a man who is chastised for being on opposite extremes of the political spectrum at the same time might appear. He would be stuck in the middle.

One moderator has, to his or her credit, posted a portion of then Senator Obama’s remarks from 2006 concerning the debt limit which is an accurate quote. I wanted to pose a question to the moderator concerning the quote, but my IP has been banned from commenting because I once posted “Dear Sir or Madame, as you may know your quotation is actually from an earlier rough draft and not the correspondence ultimately approved and delivered. Both documents along with other drafts are available at the National Archives and can be accessed at the following link.” That single comment was “flaming” and “spam” which is not allowed according to the email I received. Too bad that ban occurred before the Phil Robertson and Duck Dynasty Quackaroo as one of my friends termed it. At that time limiting one’s expressions was bad.  Or was it good if it contradicted your view? I guess in today’s “conservatism” it changes depending upon when and who.

Senator Obama did speak on the Floor on 16 March 2006.

Here is the portion this site and others have quoted:

“Mr. President, I rise today to talk about America’s debt problem. The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure.”

They stop at that particular place and point to the hypocrisy of Obama. 

Let’s, however, continue with Senator Obama’s remarks.

“It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies.”

My opinion is that statement was true in 2006 and still true today.

Later Senator Obama remarked:

“If Washington were serious about honest tax relief in this country, we would see an effort to reduce our national debt by returning to responsible fiscal policies. But we are not doing that. Despite repeated efforts by Senators CONRAD and FEINGOLD, the Senate continues to reject a return to the commonsense Pay-go rules that used to apply. Previously, Pay-go rules applied both to increases in mandatory spending and to tax cuts. The Senate had to abide by the commonsense budgeting principle of balancing expenses and revenues. Unfortunately, the principle was abandoned, and now the demands of budget discipline apply only to spending. As a result, tax breaks have not been paid for by reductions in Federal spending, and thus the only way to pay for them has been to increase our deficit to historically high levels and borrow more and more money. Now we have to pay for those tax breaks plus the cost of borrowing for them.”

This post is not intended to argue for or against Pay-go or the proposals of Senators Feingold and Conrad. This post is not intended to judge what we call the Bush era tax breaks. It is to emphasize this principle of “balancing expenses and revenues.”

Obama concluded:

“Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘‘the buck stops here.’’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.”

You may disagree, but I like that conclusion. Not all debt is bad. Sometimes we do spend to invest in our future, and that spending pays dividends. Still, I think most of us will agree that some things are worth borrowing for while others are not. The debate will naturally rest in our having different opinions. Even with different opinions as to what is worth the cost and what is not, most I think would agree that too much of anything is typically bad. Here, too much debt is bad, and even though I am tempted and would enjoy it, I know that eating the entire fresh baked hot apple pie cooling on top of our stove right now would be bad in the long run.

Senator Obama’s vote was a political vote. It was the wrong vote in my opinion given what most agree will happen if the debt ceiling is not raised and the United States does not even pay a portion of what it owes.

While the vote was wrong and based on partisan party politics, the reasoning was and is correct.

Leadership does not just apply to the person in the White House. It also applies to the 535 men and women elected to represent “We the People.” The President suggests, but Congress actually decides the where and the who that receives the money. “We the People” are also to blame because we elected these individuals to represent us, and we seem more obsessed with finding scapegoats and allowing the partisan bickering to take precedence over addressing the actual issues.

Argue Obamacare, costs from the Bush wars, and whatever you want, but look at the decisions made by all. It’s really a sad state when those championed as budget hawks and constitutionalists have no issues about government assistance going to them and argue the problem is elsewhere. It’s really a sad state when others want to give assistance solely for photo ops and the potential for votes. We all want cuts, but we don’t want what we have or receive cut.

Buzz words such as redistribution fail to take into account that one cannot have redistribution without having had a previous distribution. Buzz themes like taking from the rich or taking from the working to give to the poor or the non working do not recognize that possibly someone took advantage of some loopholes not available to others.

More importantly, in spite of all the hype, where are all of these confiscation actions or even proposals? Yes it could happen, but it also could have happened before. If it does happen, it will not be the result of a single individual or political faction. It will happen because “We the People” are searching for scapegoats in the cloud of smoke which has been created by the friction and bickering which started the fire.

How does one rewrite history? Sometimes one just allows it repeat.

Following Senator Obama in addressing the Senate was Senator Charles Grassley.  He remarked:  

“Mr. President, I urge my colleagues to vote in favor of final passage. Raising the debt limit is necessary to preserve the full faith and credit of the U.S. Government. We cannot as a Congress pass spending bills and tax bills and then refuse to pay our bills. Refusing to raise the debt limit is like refusing to pay your credit card bill—after you’ve used your credit card. The time to control the deficits and debt is when we are voting on the spending bills and the tax bills that create it. Raising the debt limit is about meeting the obligations we have already incurred. We must meet our obligations. Vote for this bill.”

Senator Grassley in my opinion, those words you spoke on 16 March 2006 are more powerful than those said by Senator Obama.

Your rational is concise and oh so true. I agreed with your vote. Why, however, is your voice different today? Why haven’t any of the Congresses since 2006 had sincere debates on the spending and tax bills that are a part of deficits and debts?

Blame Obama…?

Blame Bush…?

Will blaming anyone do a thing to address the issues? Maybe that “conservative” “news” website which does not allow contradictory opinions to be posted is correct. The Democrats and the RINOs are to blame.

Some percentage of truth rests in that. Since we know that why are the Tea Party darlings of the hour focusing all attention on blame and not spending the time and effort revising the tax code, addressing immigration, addressing a better and more efficient health care system, helping the free markets work, repairing our infrastructure, and limiting debt and reducing the deficit?

Oops forgot, it’s the fault of the RINOs, the Democrats, and the President. Patriotic Americans have no history of fighting and overcoming great odds or evils. Lucky for the United States these create a crisis too look brave folks were not around to deliver what they define as “lawlessness” to the Second World War generation, the generation of the Constitutional period, and seriously all the previous generations who created an area where we take rights for granted and often confuse rights for privileges because we had not experienced life without as others in the country had and still do.

I’ve heard some talk, but I have yet to see something that would actually apply to them, me, and those people walking outside my window.

Perhaps you have taken the time to read or hear a lesson from this barefooted Louisiana boy:

Tell people what they want to hear, and you may become popular and rich. Tell people what they need to hear, and they can become empowered while you fade into shadows.

Is the limelight preferable to the shadows?

Here is a link to the material taken from the Congressional Record.

Have you thought about the government shutdown this way?

It really doesn’t matter where one sits on the political ideological fence.  Blame whoever you want for the Federal government shutdown.  I do hope that most realize that the current disputes on the Hill are not new.  Congress has been operating and handling funding by implementing one Continuing Resolution until the next.  As I wrote previously in a grammatically and typographically challenged entry, CRs have actually been the norm during my lifetime.  The debt ceiling or debt limit is a separate issue in that it refers to money which Congress has already spent.  Personally, I don’t feel it is in the best interests of the United States to default on debts incurred previously.  I believe that the important issues are to address both government spending and revenue collection.  Both are complex issues with contrasting opinions on the most prudent methods to undertake to achieve a better balance, so this piece is not the place for that discussion.

My writing is to point out a couple of situations which I feel most have overlooked during this blame the Republicans or blame the Democrats for the shutdown period.

I’ve heard numerous statements from sources across the political spectrum referencing essential and non essential Federal employees.  Whether blame the Democrat or blame the Republican, the argument that “non essential” must mean unnecessary has been made.  Let’s forget about “official” definitions, and understand that regardless of employer or situation chances are that someone who is technically “non essential” is doing more work and is more valuable than an “essential” individual in that area.  I’ve worked in many areas where positive actions took place because of the so-called “support” or “non essential” personnel.  The “essential” people did their jobs as well, but success resulted from the efforts of everyone.  The times where I’m “essential” the amount I can accomplish with talented administrative assistants and hard working student workers is many, many, times greater than with a staff of less talented or underachieving personnel.  Whatever label is attached, these are real individuals affected.

It is true that if you are not one of these workers and if you do not know one personally, the impact of the shutdown is less on you compared to them.  In the grand scheme of statistics, we are talking about a small percentage of everyone who is employed.

If you are not reliant on certain Federal services, don’t have a trip planned to certain parks or monuments, the government shutdown may appear to have little if any impact on you.

Some who take that line of reasoning have overlooked the unnecessary hardships placed on certain people who like you aren’t reliant on Federal services and who are employed by the Federal government.  Think about those private individuals who operate businesses which rely upon the traffic created by these parks or monuments.  Think about those who rely upon those who work in the Federal government to be the patrons of their private businesses.  Restaurants are an easy example with which to gather an image.

Aren’t lunch time crowds near an office complex or tourist attraction usually packed in many of these establishments?  With the shutdown, those typically packed businesses will become caves of empty tables and chairs.  That food truck operator who paid money and competed for their prime business location goes from seeing lines 5 wide and 20 deep to perhaps 1 or 2 customers waiting.  These workers are not employed by the Federal government.  They are not among those who rely upon Federal government services either legitimately or who try to cheat the system.  They are no different from you or me, but the inability of Congress to do their jobs harms them far more than any of the 535 on the Hill who enabled this shutdown.

I think a major problem is that both Chambers wait until the final minutes to bring these essential issues to the table.  It’s not like the Members are unaware of the fiscal year dates and the lengths of the numerous CRs.  Sure the GOP majority House blames the Democrat majority Senate for not entering into reconciliation over the CRs passed by the House in the last few days.  My question is why the House refused approximately 40 times to enter into budget reconciliation with Senate after the Senate finally passed a budget.  I think everyone knows that “No Budget, No Pay” was nothing more than politics since it is unenforceable with the current Congress because of the 27th Amendment.

The Democrat majority Senate can be blamed as well for a number of issues.

We on the outside may string our bows and launch our arrows toward either Democrats or Republicans, but I don’t think that individual who has their livelihood tied to their food truck really cares no matter how they vote.  The businesses and people to which they owe bills don’t really care about why they don’t have the money.  They only want to get the money owed to them.  Whether Democrat or Republican as a Member of Congress, you are getting paid.  That’s not about party, but the Constitution.

As citizens, we need to decide if everyone one of us, no matter how different we are as individuals, are represented by all 535 Members or if only those who agree with our personal ideologies represent us.  As elected representatives, Members of Congress need to determine if they represent the United States of America and its people or if they represent only the Republican Party or Democratic Party and the special interests aligned with either.

A New Face of Government Welfare…the drawing of a Senator

This story is actually tough to write, but it was not as sad as the political responses from those who claim to want to restore America to its former greatness.

What images come to mind when you hear the term “government spending?”  Do those images result in anger or frustration?  If you are able to look beyond the rhetoric, do you still feel those same emotions?  What public services provided by government are valuable?  Ever thought about having to build your own roads, create and transport your own power, use any funds saved or paid by your insurance to repair not just your property but to rebuild everything in your community following a hurricane, tornado, or flood?  Of course all private business people are there in times of emergency and providing their services at cost or usually a loss just to get you back on track.

Think about it some services are worth paying for.  If that service comes from the government we pay for that convenience with tax dollars.  To determine if the service is worth the taxes paid, we simply balance the benefits we as residents and the nation as a whole receives from these public services.

That’s true of our local, state, and federal government.  Local governments vary greatly in how and who decides on tax issues.  States vary as well in that some states allow the Governor more direct authority while others leave more of that power in the hands of the state legislature or assembly.  Our Federal government is quite simple in that Congress controls the spending, and the raising of revenue through new taxation rests in the only Federal Chamber where the Founding Fathers trusted voters to elect their representatives, the House of Representatives.

There are people who abuse systems, but there are others who get caught unintentionally by such systems.  Many today want their simple partisan solutions.  As long as my side gets what I want, anything going elsewhere is a waste, a travesty of justice.  Sad, however, that only cuts to others fall within that realm of good government or the “desires of the Founding Fathers,” but even a minute slice of the same cut levied upon your hand is a destruction of America or founding principles.

This example is most certainly not the norm.  It would be one of those outlying data points on practically any statistical graphing used to argue cuts or to justify expenditures.  It’s not a statistic though.  It’s a man.  A man who according to the rhetoric should be placed in that discarded bin and labeled as served its purpose but now expendable.

My question to the Honorable Senator;

The elected Governor who quit to turn reality TV celebrity;

The Honorable Member of Congress who receives Federal subsidies for a part ownership on a farm which earned a profit, Federal grant money for a clinic operated by her husband, and yet is under investigation for not paying campaign workers;

The writers and online political personalities who hark on everything wrong and evil with the current President, but yet offer only criticism and not alternatives;

Why are individuals such as this citizen either ignored or unaccounted for in the ideas and legislation you apply and paint as your vision of the United States of America?

Here’s another example of a Democrat from the South living off of good peoples’ tax money according to the rhetoric.

The gentleman was born in 1926.  Calvin Coolidge was President of the United States of America.  The gentleman was too young to remember specifics, but his family struggled, yet they survived the Great Depression.  Letters written by his older brothers working for the CCC provide clarification on the images he remembers.

There are no questions about his recollections a few years later because despite being only 15 years of age, following the attack on Pearl Harbor this teenager forged documents to enlist in the Army.  He was wounded, POW for a short period, returned to action, and remained in the European Theater until returning home after V.E. Day.  He admits that he took some government welfare at that stage in life in the form of the GI Bill and with that assistance received a college degree.  He then went to work in a factory until resigning his job to reenlist during the conflict in Korea.  Shortly after signing up for a 2nd tour, he had the misfortune of obtaining a souvenir which he keeps with him to this day.  It’s not dreams or nightmares of combat and captivity which have never left, but the souvenir is a small piece of shrapnel embedded next to his spine.  Removing it meant the likelihood of paralysis, but aside from the scar on the outside and occasional twinge, that souvenir only changed his preferred work position from standing and using his entire body to sitting behind a desk and handling that part of hardware business he purchased from a relative to run.

During his time as owner, multiple generations patronized that business which increased in size to be among the largest employers in the county.  More satisfying to him than the store’s growth was that multiple generations from several families had been employed there.  A high school lad, working after school and Saturdays as a stock clerk in the warehouse, was performing the same duties as his father had before him who had worked the same starting job as the lad’s grandfather many years earlier.  The gentleman lost count of the number of high school kids who started working part-time and later became full-time employees and worked their way up the ladder to more responsibilities.  A number of employees had never worked for wages elsewhere in their entire life.  The final retail manager started as a part-time cashier, left to go to college, and came back to be near her family when she rejoined “the family as an accounts manager.

He enjoyed pointing out those employees in person, but the real glow came when speaking about the wall of photographs behind his large oak desk.  All were former employees.  Some had been part-time while in school and others full-time as adults, but they had left hardware for other pursuits.  Medical doctors of different specialties, dentists, veterinarians, teachers of all levels, a couple of bank presidents, 6 high level managers in Fortune 500 companies, 3 guys who made the Major Leagues in baseball, and 1 girl who won a gold medal at the Olympics Games.  He had a pronounced sense of pride moving along that wall of memories to mention a young man who started a repair shop and a young lady who opened her own restaurant.  He sort of beamed as he chuckled that that young lady had her daughter work at his store for a year before the daughter worked in the restaurant.

He spoke of the one position he never hired at his store which was someone who specialized in advertising.  Every two weeks he placed multiple item sale advertisements in the local newspaper, and the school yearbook had a full page advertisement listing all the student employees for that year.  Other than that, you would find the store name on the uniforms of the youth baseball, softball, and soccer teams sponsored by the business each year.  He donated as well to other civic and community groups and causes, but admitted that while he might give more money to a dance recital or concert, he much preferred to watch the sports leagues and rarely if ever viewed the programs or advertisements.  If his wife, family, friends, neighbors, employees made the case that the cause was commendable and beneficial to community and participants, he would support it.

As he spoke about business, the bottom line of profits and losses became interwoven with stories of local history and world events.  When he first saw a new continent as a teenager and another as an adult, he never thought about how events thousands of miles away could cause the price or desire for seemingly unrelated items he carried to increase and decrease.  Still, he said that his simple philosophy of quality service and quality products to keep customers coming back was the key whether the year was boom or bust.

As he walked he looked inside the newspaper box and read aloud its headline story about Obamacare.  He really didn’t have an opinion because as he said he had not read the legislation for himself, he had only heard others speak of it.  The complaints, however, that he heard would not have changed his business in any manner.  Part-time workers were most often kids from the local high school or individuals who had retired but wanted something to do in retirement.  All the other workers were full-time.  He provided all of them with the same health insurance that covered him and his family.  He also had various retirement and savings plans for all employees.  The most difficult thing in his mind was that the number of choices for retirement and savings increased tremendously during a period a score or so years ago.  The reason for that was a former employee became a “hotshot” investment broker.  At that point different options became color coded as to the potential amount of risk involved if someone chose to participate in that particular plan.

The amount he spent on health coverage did increase throughout the years.  He always had someone monitoring different plans to get the most coverage for the least cost.  His deciding factor, however, was the quality of the plan.  If he did not feel comfortable with his family on the same coverage, he wasn’t comfortable giving that same coverage to his employees.  He could have saved money and increased profits by cutting some corners, but he viewed the decision as short term versus long term profits.

Over the years, very few employees quit.  Those who did leave for better opportunities most often did so in a manner which gave him time to hire a replacement and have that replacement trained by the employee leaving.  As he stated, he felt that loyalty and being able maintain a high quality of service and performance during these transitions more than offset any additional funds spent on better employee benefits.  Also at times of when employees had personal emergencies, their coworkers took on additional responsibilities without being asked or directed.  They knew that if the roles were reversed that he and the other workers would do the same for them.  He recited the Golden Rule, and added the credo of JB Books (John Wayne’s character in his final movie, The Shootist):  “I won’t be wronged, insulted, or laid a hand on.  I don’t do these things to other people, and I require the same from them.”  With business he said, treat others fair and insist on being treated fairly.  That applies to boss, employee, and customer.

The end of this local homegrown business is the story of some of the more recent practices in society.  He declined offers to sell from some well established big box chains.  When a couple located in the area, he could still compete in terms of pricing because his business had grown to a large enough level.  They could not compete with him when it came to quality and service.

The difference, however, was that he continued sponsoring activities in the community and as always paid his share of taxes.  The big box stores did not have the same tax obligations.  They received public services paid by tax dollars, but deals had been struck giving them both short and long term tax breaks to open stores in the area.  Officials felt that these stores brought enough additional financial incentives such as increasing the number of customers by getting those from outside the county to shop there.  The new stores created jobs as well.  For the officials, it was a win/win decision.

It was a little different for the established businesses, however, as they did not receive the same financial incentives.  Even those capable of competing with lower prices, could not afford to sell items at a loss as the big box retailers did.  The older businesses had that extra overhead in the terms of taxes to pay, while the outside chains did not thanks to the incentives.  Ever so slowly, businesses began to close their doors as the customer base shrank as it shifted to the lower prices.  The gentleman and his hardware enterprise were among the last.  Perhaps if he had been younger, he would have continued, but at this age he could not be certain that he could protect his employees who were family because they worked for him.

Leaving the business world, and a real, full, retirement approximately 20 years after becoming eligible for Social Security benefits has not been one of rest and contentment.  He has no resentment to the big box retailers or even to those who in his words “used the tax breaks as stink cheese on their fishing hooks to land some lunkers.”  He wishes that they had fished with worms or artificial lures and fished for either food for the table or for the relaxation instead of throwing “cheater bait” on the first cast to land the trophy fish with time left over for other things.  Still, he harbors no regrets about his business start to conclusion and everywhere in between.

The lack of rest and contentment is watching some of his former employees, the people who became his family, struggling.  The work ethic is there along with the necessary skills and knowledge.  He saw it first-hand for many years.  The pay and benefits of these employees is lower than when he initially hired them.  Most he argues are underutilized as the innovation and customer service which maintained his business has gone the way of conformity, following plan-agrams, worrying about punching a timeclock.

Still, he tries to maintain faith in the government.  He served his country as did many of his employees in the military.  Others may not have served in the military, but have worked dangerous occupations often as volunteers.  Both men and women have been firefighters and members of law enforcement for no or minimal pay.  Many others have assisted the elderly, the disabled, and others less fortunate because they believe that a community is only as strong as its weakest resident.

Why though is learning information about government services and programs becoming limited more and more to those who seem to have a special passkey or have the funds to obtain such information?  The talk is wasteful spending, and he has seen evidence of that his entire life.  The difference he sees today is that more is spent and given to those who already have and want more than to those who have nothing.  At one time, he could have received a preferred loan because of his military service to start his own business.  He chose not to take out that loan because he had other resources.  Still, his Congressman, both of the United States Senators, and elected officials at state and local levels made it a point to provide him with all options available.

Today, though, the idea of informing the public is apparently evil.  The argument is akin to that of the starving man.  If we give him fish, he will only desire more and will return for more.  What happened to teaching a man to fish and showing him how to use the tools so that he is no longer dependent upon another?  Some in the government talk that talk, but have yet to start making that walk.  Those in power and those with connections can justify their corporate welfare.  If that was the correct approach, wouldn’t the economy be in better shape?  Wouldn’t the jobs have greater benefits than before the job creators received these special incentives?

What kicks him in the gut and rattles the shrapnel next to his spine is how some want to spin welfare.

You may agree or disagree with this from the United States Senate Budget Committee.

He fought for that right to agree or to disagree.  The question, however, is when is teaching or informing those less knowledgeable an act of evil.  Here, is that reprehensible document cited in the report explaining how to “overcome the word ‘No’.” 

These are senior citizens.  These are the people who built their businesses and created jobs.  These are the people who treated their employees the way the felt people who employed them should act.  These are not the people blaming everyone else for the problems of society.  These are not the people reaping the profits from knowing all the loopholes.  These are not the people talking about America as a great country as long as they can continue to profit as a carpetbagger or scalawag.

A single tear fell from his eye as he remarked that he never thought the day would come when the only political figure in the United States who is willing to address the questions and concerns of people like me, this old man, is a President born in Hawaii who later lived in Chicago.  He probably disagrees with President Obama as much as he had every President he actually remembered for his lifetime beginning with the faintest recollections of Herbert Hoover’s voice on that box radio at the dry goods store.   Still, President Obama speaks but the opponents attack the words without offering something different.  They attack the President not for things he has or has not done, but for things made of air or constructed with straw and not bricks.  They may talk, but it is at this gentleman senior citizen, not to him, and definitely not for him.

Those espousing that rhetoric to fan the flames may regard this retired Veteran and business older as a good for nothing unpatriotic American.  The gentleman’s reflection, however, is that he sees in his own mirror.  A young man who served his country, a man in his prime who built a business and created job opportunities for many, a senior who learned that the government sometimes favored special interests over people like him.  If he was one the new faces of government welfare and what was wrong with America, so be it.  He’ll put his career against those who simply talk and point fingers because they are only concerned with enriching themselves and not leaving a United States of opportunity for all.  A second tear falls in that the nightmares of combat have been overtaken by the ingratitude and disrespect by a group of people who claim to fight for him.  At least he still respects the President, even though the President is not a native son to the South.

Lazy, Egotistical, and Partisanship: The Making of a Sequester

Some background as to the WHAT and WHY of sequester:

The intent of sequester was to be so undesirable that neither political Party nor Chamber of Congress would allow it to occur. The debt ceiling is not about current government spending. It is about the government paying off debts incurred by past Congresses. In other words, the money has already been spent and the bill is due.  Senator Tom Harkin (IA) introduced the legislation as S.365.

The Senate vote of 74 YEAs and 26 NAYs can be seen here:

The text of the House Report 112-90 can be seen here:

The House vote of 269 YEAs and 161 NOEs with 3 NV can be seen here:

Congress presented the Budget Control Act of 2011 to President Barack Obama on 2 August 2012, and he signed it into law that same day.

Public Law 112-25, Budget Control Act of 2011 can be seen here:

The term “sequester” in a political usage dates back to 1985 and Gramm-Rudman-Hollings Deficit Reduction Act.  For a synopsis of statutory budgetary controls between 1985 and 2002, please refer to this 1 July 2011 CRS Report by Megan Suzanne Lynch.

In past history, the typical Congress passed appropriation bills separately to provide for total government spending.  As multiple bills are passed, total spending can exceed the limits that Congress has set for itself in the budget resolution.  When Congress has not enacted a new budget resolution, the one passed previously remains in force.  When spending exceeds the set limits, Congress can either agree to cut back on the total amount of funds allocated, or it can pass a higher Budget Resolution which is often referred to as raising the debt ceiling.  If Congress fails to either cut or raise the debt ceiling, an “automatic” form of spending cutbacks occurs.

That automatic cutback is termed sequestration because an amount of money equal to the difference between the limit set in the Budget Resolution and the amount actually appropriated is “sequestered” by the Treasury. It is simply not handed over to the agencies to which it was originally promised by Congress. In theory, every agency has the same percentage of its appropriation withheld in order to take back the excessive spending on an “across the board” basis.

The reason for the blanket “across the board” cuts versus allowing the different agencies to prioritize and streamline is to prevent a continuation of the political differences in Congress which created a sequester in the first place.  The intent was to make it unpalatable.  In an ideal environment, each agency receiving Federal funding would utilize its resources in the most efficient and effective manner as possible.  To encourage responsibility, Congress with the sole Constitutional power to allocate funds through persuasion or even coercion would enforce the necessity for efficient and responsible usage of funds which Congress allocates.  If sequester occurs, the respective agencies have either failed to make the most sensible decisions regarding their funding or Congress has been negligent by either providing too much to some agencies which is wasted and insufficient funds to others who have been prudent in their operations.

For information on how and why Congress has the “power of the purse” and insight into the Constitutional provisions and interpretations, please see here:

With that sequester background on what and why, the question of most is the sequester effect.

The HOW will sequester effect questions

That’s more difficult to determine because the truth which few seem willing to give is that it is impossible to determine.  These are the reports from the Office of Management and Budget to the White House and Congress.

You can find numerous articles and talks by President Obama, Members of Congress, Governors, and practically any and everyone with a range from doomsday to a casual stroll in a pleasant breeze.

Yesterday, House Majority Leader Eric Cantor (VA) on the House Floor accused President Obama for “scaring people, creating havoc.” “The president says to Americans that their food is going to go un-inspected, and that our borders will be less patrolled and unsafe. His cabinet secretaries are holding press conferences and conducting TV interviews, making false claims about teacher layoffs.”

On sequester and other issues, critics of the President have charged him with campaigning style attacks versus solving the problems.

One can cite any number of sources to see the politicking by both sides in Congress and the White House.  Here is one of many examples:

Of particular interest were the two plans proposed in the United States Senate to stop the sequester.

“The Democratic bill to replace the sequester would have reduced spending by $55 billion and raised taxes by $55 billion. Most of the tax revenues would have come from phasing in a 30 percent effective tax rate on incomes between $1 million and $5 million. Adjusted gross incomes above $5 million would have been taxed at a 30 percent effective rate. The bill cut agricultural subsidies by $27.5 billion and defense by the same amount.

The Republican alternative sponsored by Sens. Pat Toomey (R-Pa.) and James Inhofe (R-Okla.) would have given the president more flexibility to manage the cuts and limited the impact on national security. It would have allowed Obama to shift cuts slated for defense programs to other areas and explicitly prohibited tax or fee increases.

Republicans opposed to the bill, including defense hawks and the party’s top appropriator, said it would do too little to protect defense programs and would give too much of Congress’s authority to Obama.”

Each bill needed 60 votes instead of a simple majority for passage.  The Democratic bill received a vote of 51 YEAs to 49 NAYs, and the Republican bill received a vote of 38 YEAs to 62 NAYs.

Why were these plans and votes of particular interest?

Detractors of the Republican sponsored bill which received all 38 YEA votes from Republicans, argued that the bill would give too much of Congress’s authority to the President.

REPEAT:  Congress’s authority

Some argue that the percentage of cuts mandated by sequester are miniscule when compared to the amount of the current deficit and government spending.  That’s a fair argument.  The question is, however, are these mandated cuts actually solving any of the problems or even addressing the pertinent issues?  Some will feel the brunt of the cuts, while others might not feel any adverse effects.  You might argue, that’s life, but it isn’t about fairness; it is about doing things which address the problems and that was not and is not the purpose of sequestration.

The proposals to have sequestration with authority granted to either the President or any committee or individual(s) to decide how to implement the mandated cuts are ludicrous.  The amount of these cuts will not solve any of the issues.  The purpose was to encourage Congress and the Federal agencies receiving funds to become leaner and more efficient.  Instead, we have this rhetoric of “the President needs to lead,” “the President needs to present solutions,” “it’s the Democrats,” “it’s the Republicans” who are to blame.  Changing the rules only shifts responsibility to others while those granted the task by the Constitution can sit back and do nothing.

President Obama:

As to the President, where is the Constitutional authority for the Executive Branch to have the “power of the purse?”  Would we want the President to have that power?  As to leadership, is it possible to lead something that is highly unwilling?  Often, a simple gesture such as asking someone politely gets the goal accomplished.  What if that approach does not work?  What should be done if an employee refuses to do his or her job?  My own experience has been that an initial discussion and clarification of expectations which involves BOTH individuals listening can often solve the issue.  Sometimes it becomes more difficult, especially if one or both sides refuse to listen, but you still focus on a common element and try to work from that position.  Ultimately, however, any exchanges will become more intense and emotional with a likely conclusion of termination.  Whether you agree or disagree with President Obama making usage of a bully pulpit on the budget, the issue is that Congress, both House and Senate, Democrats and Republicans must reach some type of agreement.  That’s not blame; that’s our Constitution.

To get things done:

The 27th Amendment makes the entire no budget, no pay, position nothing more than political posturing.  Both media and constituents need to put emotions away, stop the incessant liberal and conservative labeling, and stop embracing hate, but actually practice the apparently bizarre concept of “hating hate.”

What now?

These four (4) issues appear to have bipartisan support in both House and Senate, with the White House, and with many in the public.

1) Deficit reduction

2) Entitlement spending reduction (using the broad definition entitlement to include pensions, welfare, and health care.

3) Defense spending (maintain levels or increase)

4) Simplify the tax code by eliminating loopholes, streamlining and clarifying deductions.

Those may look simple on paper, but each is very complicated.  There will be many arguments and disagreements on how and the best manner to accomplish the above.  Still, all of these shared goals are not being discussed with actual plans for incorporation.  They are only talking points, and we all have our own opinions.

The battle wages between these basic positions:

1) Remain at current levels or increase rates toward the top

2) Equal across the board cuts for both corporate and individuals at every level

Again, these are not that simple.  At this stage, however, how important are these differences and why must it be the issue discussed initially?  Both sides are equally guilty here.  More revenue is just plain stupid if it is only going to be wasted whether through inefficiency or just plain corruption or ignorance.  Too insist that discussions of new revenue are off the table is more ignorance because we do not know what is actually necessary at this juncture.

Oh for something other than blame from our representatives please:

If all you can do is point fingers, blame others, and pass the buck, is it likely to have an understanding of the multiplicity of issues?  This is a partisan shot, but the House held “how many” votes to repeal “Obamacare?”  The 30+ votes aren’t significant in my shot, but how many alternatives to the Act did we see introduced?  My opinion is that many aspects of “Obamacare” are positive, but there exists a significant amount of bloat and negative aspects as well.  Most people I know, however, will argue that healthcare is a major issue and some actions need to take place to make the system more efficient and cost effective.  So argue to repeal “Obamacare” but offer some real alternative plan.  The talk and posturing doesn’t cut it anymore as we need to identify problems and formulate both solutions and alternative solutions.

All we will most likely see is another stop gap spending bill to prevent a government shutdown before funding expires on 27 March.

History and applicability for today:

Sequester was designed to force some type of grand bargain on the deficit whether it be by increasing revenue through taxation, saving through spending cuts, or a combination.  That grand bargain did not occur because compromise is a forgotten word.  Historically, the issues confronting the former colonies who declared independence from England and created a government with the Articles of Confederation must be imaginary.  That new country almost imploded and thus a new government as opposed to the original charge of amending the old became a goal.  To get that government, a “Great Compromise” had to be reached for cooperation between highly populated states versus one’s with lesser populations.

Why is compromise unpopular today?  Why do some call Progressivism evil?  Many of what we claim to be rights were not granted by the signers of the Constitution.  They came from progressive movements.  The phrase “all men are created equal” is included in the Declaration of Independence.  How many have considered the definition of “men” at the time of the writing of that document?

Quote for Today:

Sequester:   “It’s just dumb. And it’s going to hurt. It’s going to hurt individual people and it’s going to hurt the economy over all,”  President Barack Obama, 1 March 2013

Democrat, Republican, supporter of the President, hater of the President, Men, Women, Children, Fellow Americans, Fellow inhabitants of the Planet Earth, sadly I think we can all find at least a portion of this quote from the President to which we agree.

A Message For Congress

Average wealth of Members of Congress

Average wealth of Members of the United States Senate and Members of the House of Representatives. Graph and data credit: Center for Responsive Politics

“I, (name of Member), do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God” (5 U.S.C. §3331).

Who is represented?

With all due respect to the Honorable Members of the House of Representatives and to the Honorable Senators of the United States of America, your oath of office does not include a caveat of supporting, defending, bearing faith and allegiance to a particular political party, but to the Constitution of the United States of America which begins in the Preamble with “We the People of the United States….”  Lest we forget on this Veterans Day 2012, the sacrifices of the men and women who have served in our Armed Forces during this nation’s history and those who serve today.   Lest we forget the sacrifices of the men and women who sacrifice(d) on the home front while troops are abroad, the sacrifices of civilians who work and volunteer in efforts to benefit their neighbors.  These men, women, boys, and girls are not similar in appearance, ideologies, or mannerisms, but they are all People of the United States.

Country First

You were elected to represent all of these People.  You are not the voice of just your political faction, your gender, your religion, your economic status, or just for yourselves.  You are the voice for all in your district or state and a single voice amongst 535 representing “We the People of the United States.”  Whether it is a result of Party loyalty or the monetary contributions from powerful industries and wealthy individuals, it often seems that the “We” has morphed into an “Us” and “Me.”  That might feel or sound justifiable when you are a member of “Us” or the “Me,” but what about the larger picture?  Coach John Wooden in his dislike for descriptors such as stars, bench warmers, and so on with its focus on factionalism said it simply when addressing the concept of  “Me, me, and me.”  “Everyone contributes to the success of everyone else.  This is called cooperation, and it is a value fundamental to my philosophy of competitive greatness.  It is a trademark of a real team.” (John Wooden).

A Congressman and Senator’s chance to write history

You might crave the personal glory.  You might even be bought and paid for by your political party or those who fund your PACs or who direct additional Super PAC and 501(c) resources in your direction.  Some of you may be that weak or insecure.  Regardless, consider the future of this great country if we allow for either ideology or money to expand that factionalism.   John Wooden’s “Preseason Letter to the Team 1969” is simple and accurate.  “Recorded history shows us that the underlying reason for the failure of every civilization or cause has been the breakdown from within, and I deeply believe that most potentially great teams did not measure up to what seemed possible and logical failed to do so because of friction in one way or another from within.  Let us not be victimized in such a manner.”

Would you rather be remembered as a Member of Congress who continued the ideas of hope and opportunity or as the individuals who took the lead in the United States losing its world status earned by previous generations by advocating separatism and partisanship?

Let’s Start Here:

Speaker Boehner and Senator Reid as Majority Leaders in your respective Chambers, please try to forget about differences for a brief period and find some common beliefs.  Economically, the pit is so large that you both know that horrendous amounts of money are simply wasted through inefficiency, duplication, corruption, and both ignorance and stupidity.  Unfortunately, the muck is so deep that plugging those gaps is only a beginning.  Some legitimate and highly worthwhile programs will need to be reduced whether we like it or not, but that does not necessarily have to be permanent as needs for the country continually evolve, and we can reduce the size of this expanse.

Will never be popular:

Cutting expenditures is difficult and must occur, but raising additional revenue is needed as well because of the depth of the muck.  Speaker Boehner I fully agree that the tax code needs to be reformed and I believe it should be a top priority of the next Congress.  In the immediate, however, outside the allegiances some Members have to Grover Norquist, some special interests, and a spin media push promoting factionalism to increase the profit margins for specific groups, increased tax rates should be a part of the deficit and budget solution.  Redistribution and punishment rhetoric aside, the ideology of the past has not worked for the benefit of the United States.  Economists will argue this data and the positions in this article, but there just might be a consensus that increasing income gaps within nations has been negative historically in terms of the stability of the country.

http://www.theatlantic.com/business/archive/2012/09/us-income-inequality-its-worse-today-than-it-was-in-1774/262537/

Reality or Rhetoric

The media and vested interests will cast labels of socialism and communism at any thought of economic class differences.  Unfortunately, however, those labels are partisan based and not on logic.  According to The Congressional Budget Office, the income of the top 1 percent of earning households grew 275 percent from 1979 to 2007. At the same time, the income of other American households grew just 62 percent.  http://money.usnews.com/money/business-economy/articles/2012/01/04/breaking-down-the-income-gap-into-real-terms.

Please consider that within the context of  individual tax rates historically:  http://www.taxpolicycenter.org/taxfacts/Content/PDF/individual_rates.pdf.

I guess when people rely upon emotionalism and partisan arguments, it makes sense that one minute President Obama is a weak President while one minute later he has become a tyrant who can single-handedly end the United States.

Let’s Face Some Truth

Sadly, everyone is blaming everyone else for the current economic conditions and number of jobs.  If it were true that increasing the tax burden on the highest income brackets would hamper job creation and economic recovery, there would be no issues today given the percentage increase in incomes of those at the top with the tax breaks received.  The jobs would exist today if that argument were correct.  The issue is that less money is being spent by consumers and thereby decreasing the need and demand to create.

Individuals and businesses with incomes under $250,000 return profits to the economy in tangible forms such as business expansion, building and purchasing of homes, and so on.  It is not used in speculation and other ventures which benefit only the investor.  Wealth is not created on paper or some database, but in tangible goods and services which can be seen and used.  It is these people, those in the middle economically, who buy goods and services and reinvest in the economy which in turn spurs growth.  Many in Congress seem to agree, yet they hold these individuals hostage in a quest to either truly redistribute or to further increase the income gap.

Tough Question for the 535

Members of Congress is your opposition to letting the Bush era tax cuts expire for  upper income brackets while maintaining them at the lower levels because it increases your personal tax burden?  Please compare, however, your average wealth to that of the median income in this country.  There seems to be quite a gap even using the broad range data you are required to disclose.  Using the logic put forth by many Congressmen and Senators of the damage increasing tax rates at the top would cause, that reasoning should mean that the country is not having any problems today as each Member of Congress would be investing considerable amounts of funds creating jobs and rebuilding our infrastructure if the trickle down approach worked.  Does anyone believe that?  How can anyone in Congress justify the amount of outside spending this election cycle and argue that money is not available at the highest income levels?

http://www.opensecrets.org/outsidespending/index.php?ql3

Outside spending this election cycle

Data and graph credit: Center for Responsive Politics

What do you feel is your role as one of the 535?

With all due respect, do you represent the United States of America and its entire people regardless of individual differences?  Do you represent yourselves and care nothing of the great history of our country?  Do you represent your Political Party and personal interests first and your constituents and more importantly the country last?  Are you individuals or commodities available for purchase to please the whims of those who own you?

Is this barefoot farm boy turned Professor of History wrong?

I would like to hope that America has not become that cheap where its elected leaders allow themselves to be bought and controlled as an ordinary item.  If you continue to place Party and personal loyalty first, and refuse to work together consider how you will be remembered in history?  Would you rather be remembered as a Member of Congress who continued the ideas of hope and opportunity, or as the individuals who took the lead watching and bickering amongst yourselves while the United States lost its world status earned by previous generations?

Whether as a kid in the strawberry field alongside my grandfather or standing in front of a classroom trying to continue lessons learned from those who experienced what we call history today, my opinion does not differ:

Given the history of this great country and the sacrifices made by previous generations, I still have faith in Congress to work together for the best of the country and represent all of the people.  Speaker Boehner and Senator Reid, I pray that you and your respective peers in the House and the Senate do not destroy that faith I have in you.  Remember that in order to have a Constitution, those present had to compromise.  On the issue of representation for both large and small states, the compromise which created the House of Representatives and the United States Senate where you have the honor of serving today became known as the Great Compromise.  I pray that you have the same integrity and belief in that decisions should be based on the best interests of not the loudest, or richest, but for everyone because “We the People of the United States” may not be the same, but we are all governed by the Constitution.  You are the leaders of those elected to represent “We the People.”  If failure occurs, it is not the fault of the President, other Chamber, or other Party.  If either of you wish to point a finger casting blame, it should be while looking into a mirror.  You will see a reflection of your image, but peer just a little deeper, and you’ll see my reflection along with the rest of the American people.  For those like me in the background, we care nothing about who gets credit; we are merely inseparable blurs of the masses.  Failure, however, by either or by both Parties failing to sacrifice and work together as a team means we all must bear the burden of defeat and lose the privileges that previous generations bestowed upon us.