YES WE STILL CAN

NO WE WON'T

AND THEY DIDN'T

Although President Obama was able to get a compromise with the GOP leadership, it continues wealth distribution upward and only temporarily helps middle class Americans. It may be the best that can be obtained, but it is hoped that the Democratic Congressional leaders can get A NEW DEAL.

One GOP assertion is the idea that the rich are “job creators”. They are not. Most of the high earners are Wall Street operators, who are getting the best of the GOP deal, are "finance managers" who only incidently (30% of business) invest in companies that are going to manufacture something. They sell short, speculate on currency differentials or gamble with hedge funds. Trading "credit default swaps"; creating & selling "collateral backed securities” and selling securities short; does nothing to grow the economy or to create jobs.(1)

These investments are big stakes gambling. If the investment firms and the "high earners" used their own money, no one could complain - or even care. However, they use bank deposits, 401k money, retirement funds and other “public” money. When these bets fail – the Federal Reserve Bank and the Bush administration protect them. Bush’s TARP (Troubled Asset Recovery Program) did not protect the depositor, or the people with IRAs and 401Ks, or even the stock holders in some companies. However, the money managers continued to receive billion of dollars in bonuses much of it from TARP. (2) It is these millionairs that are the receivers of the big tax cuts.

What can be done? Many have sent me Rabbi Michael Lerner’s recent article in the Washington Post that suggests action. That action perceives leadership failures of President Obama and the need to consider alternatives and seek new leadership. His admittedly sad recognition of the leadership failures of President Obama leads to the thinking of moving on without him. I do not yet agree with him but it is hard not understand his point. The Lerner article may be found at:
http://www.washingtonpost.com/wp-dyn/content/article/2010/12/03/AR2010120304148.html

We need a NEW – NEW DEAL. The GOP continues class warfare on the middle class. I understand the President's dilemma and fear of cutting off benefits for the 2 million unemployed and the reinstatement of taxes on the middle class. However, kicking the can down the road is not, in my opinion, the answer. The 7 or 8 Billion dollar deficit caused by the compromise saddles the middle class wage earners and not the future bonus millionaires.

When to hold them and when to fold them is always a tricky issue. We know that the President has his heart in the right place. He did get some real progressive benefits. However, I am afraid that we are just postponing the inevitable and that is the need to change the continued Corporate, Tea party and GOBP agenda. What happens when there is a need to increase the Debt limit. Will the GOP compromise? I suspect not and then we are arguing about cutting Medicare and Social Security. Should we not be discussing that issue before the compromise not after. President Obama and others have referred to the GOP has holding the unemployed and middle class hostage. The so called compromise does not release the hostages, but gives only a temporary reprive.

Political action is suggested as the partial answer in David Koren’s new book Agenda for a New Economy. It is an answer to consider – and that consideration is needed now. His long and short term goals need examination by all. In the meantime, political action is needed now. To the question of whether political action can overcome overwhelming corporate power – as Jefferson, Washington and Adams overcame the overwhelming Monarchy Power – the answer is YES WE CAN!

We need a long term plan but right now we need to call and encourage our Senators and Congressman Murphy. Urge them to work with Vermont Senator Sanders to get a NEW DEAL.

References:
(1) http://www.msnbc.msn.com/id/40504582/ns/politics-capitol_hill/
(2) The Big Short by Michael Lewis; When Genius failed by Roger Lowenstein, Agenda for a New Economy by David Korten
(3) The New York Times, Global Ed. www.nytimes.com/2010/04/01/business/01hedge.html
Pay czar: ‘Ill advised’ bonuses at 17 bailed-out banks. msnbc.com news services. http://www.msnbc.msn.com/id/38376709/ns/business-us_business/

How the Fox & GOTP Lies about National Debt & Deficits;

A Grand Old Tea Party friend of mine intentionally confronts me with Fox News and Gibson stuff. The kidding does not bother me but the fact that he really believes it, does. The confusion intentionally spread by, Fox News, the TEA Party & GOBP often confuse “National Debt” and “deficit”. That repeated confusion may be affecting this election.

Here are the actual facts. I will include reliable source references at the end.

1. The National Dept., comprised of all money the USA owes and is the accumulation of the deficits that are budgeted and incurred each Federal Fiscal year is: 12.4 Trillion. When President Bush started the National Dept was 5.7 Trillion dollars with Clinton budgets having surpluses so that the National Dept was going down.

2. The Deficit is the amount spent or budgeted to be spent over the expected revenues. Each budget year has its own deficit (or under President Clinton – a surplus. )

a. Fiscal Year 2009 President Bush’s last budget 1.7 Trillion
b. Fiscal Year 2010 President Obama’s first budget 1.3 Trillion
NOTE: a. President’ Bush’s last budget had the largest deficit in History!

b. President Obama reduced the budget and spent less than Bush did in his first year in office.,

So, when your right wing friends state that Obama had a “ Trillion dollar deficit” as my friend did - the answer was YES - but it was still 400 Billion less than Bush’s. Like my friend and Fox News – the facts don’t keep them from stating facts that don’t exist, but you will feel better and there may be other people that will listen.

References:

http://www.treasurydirect.gov/govt/reports/pd/mspd/mspd.htm
http://useconomy.about.com/od/fiscalpolicy/p/US_Debt.htm
http://en.wikipedia.org/w/index.php?title=National_debt_by_U.S

See Chart below showing:

Biggest deficit spenders and National Debt builders since Presidents Truman and Roosevelt both of whom had to pay for WW II

Ronald Reagan
George Bush
George W. Bush

Compare: Speaker Pelosi and Minority Leader Boehner

Recent Gibson Campaign Ads indicate without any proof that Speaker Pelosi is somehow very bad and so Congressman Murphy must be bad too. Neither Speaker Pelosi nor Minority Leader Boehner are "bad" but their policies are extremely different.

Lets compare her to Minority Leader Boehner who has campaigned for Mr. Gibson and is slated to become the Speaker of the House, if Mr. Gibson wins and the GOP take it over:

Minority Leader, John Boehner
"HELL NO WE WON'T"




and doesn't support:







Social Security, as we know it
He wants to "reform" Social Security



HELL NO WE WON'T
and he doesn't
Support Health and Insurance Reform
He led House voting against reform which:
- Stops Ins. Cos using pre-existing conditions even against children
- Stops Ins.Cos dropping young adults from parents health ins. policies
- Increased Medicare Spending from 529 Billion to 929 billion.
- Eliminating the "donut hole" in Medicare D and saved Seniors $ thousands.
- Limits the growth in medical & insurance costs, so much so that the non-partisan
- The BiPartisan Cogressional Budget Office found that it leads to deficit and debt reduction.


HELL NO WE WON"T
and he doesn't support
The Education Jobs and Medicaid Assistance Act>

He lead his minority to oppose
-creating 319,000 jobs, including 161,000 teacher jobs,

-closes tax loopholes that encourage corporations to ship American jobs overseas and reduces the deficit.

-included $10 billion in funding to save teacher jobs;

-included $16.1 billion in health assistance to the states that, by reducing shortfalls, will help keep many others on the job, including police officers and firefighters.

Speaker Nancy Pelosi

YES WE CAN(and did)

This is the Congresswoman and grandmother signing an education bill which became law that:

- saved or created 319,000 jobs, including 161,000 teacher jobs,

- closed tax loopholes that encouraged corporations to ship American jobs overseas and reduces the deficit.

-The bill includes $10 billion in funding to save teacher jobs;

-and $16.1 billion in health assistance to the states that, by reducing shortfalls, will help keep many others on the job, including police officers and firefighters.

She had been selected by a very diverse group of Representatives, comprised mostly of men. She has been a leading representative in the House of Representatives for many years and so was and is known for her smarts, diplomacy and knowledge. The allegation is that Congressman Scott Murphy follows her leadership. Thank goodness he mostly has. As an independent thinking man, he has not always agreed and has insisted upon matters important to the District. Remember, he voted no on Health and Insurance Reform until his ideas were included.

Mr. Gibson, on the other hand has been the recepient of Mr. Boehner's fund raising and has accepted advertising from a Corporate front group named 60 Plus Association. That organization has been funded by the World's Largest Pharmaceutical Corporations

Conclusion:

Mr. Murphy working with YES WE CAN Speaker Pelosi is a better choice than Mr. Gibson working with HELL NO WE WON'T Mr. Boehner.

Gibson, Plus 60 attacks on Congressman Scott Murphy

A recent TV ad attacking Scott Murphy was sponsored by 60 Plus, The irony is that 60 Plus, pretends to be an alternative to AARP, however it fights for corporate rights not Senior rights!

In actuality, this a GOP front for corporate interest such as Big Pharma, in general and Pfizer in particular. . There is further irony or duplicity in the fact that Pfizer recently bought Wyest and discharged 18 000 US employees. Another irony is the fact that Pfizer used President Bush's "tarp " money to finance the takeover. Pfizer, has extensive off shore operation.

The ads are against Scott and 16 other Democratic Congress Members. The ads are blatantly false in every way. In general, they do not represent seniors or have an organization to do so. In particular and thanks to the investigative reporting of:

http://www.factcheck.org/2010/09/misleading-onslaught-by-60-plus/

the actual lies are debunked.

One lie used against Congressman Murphy is that the Medical Care reform act caused a 500 billion dollar cut in Medicare. It didn’t! “CBO predicts that federal outlays for Medicare in fiscal year 2020 will be $929 billion, compared with projected spending of $519 billion this year”. So the program isn’t being cut below existing levels, or even stopped in its tracks.

Other references are:

http://www.sourcewatch.org/index.php?title=60_Plus_Association

http://www.businessword.com/index.php?/weblog/comments/422/

I suggest that if the people in the ads are not familiar in your neighborhood, just look at:

http://www.flickr.com/photos/ You can buy “generic photos on line.

It is hoped that the people will see thru the lies and distortions and re-elect Scott Murphy to continue the progress made in the past 2 years.

The Education and Middle Class Crisis

The Education and Middle Class Crisis

The reported direction of the NYS budget negotiations is wrong. That direction focuses on spending cuts and tax shifts. It will worsen the NYS Economy and deprive our kids of the education they need and deserve. The most devastating cuts are primarily in education. Those cuts will deprive our schools of the proper teaching of our children with special needs and of providing of other kids from essential programs. In addition to the catastrophic effect upon a generation of kids – the middle class will bear additional tax burdens.

Why?

There is the Great Recession. It was brought on by a Wall Street that is even now making more money than before. Regardless of the reason for the Great Recession, it has ruined the economy and reduced revenue to NYS and its localities. Below is a chart from Fiscal Policy Institute showing what has happened on Wall Street. Huge bonuses have been and continue to be taken regardless of whether or not there are profits and most recently regardless of whether the profits are from taxpayers bail out money.


The result has been to cripple the economy and because of declining tax revenues the NYS budget is a particular challenge. The indications from the negotiations in Albany are that the crisis is being “fixed” by taking away education from our children and taxing the middle class. Real Estate School taxes are going up in all districts. As the included chart shows, the middle class already pay a bigger portion of state and local taxes than do the high earners.

The amount of money estimated to hold the schools harmless is less than 3 billion dollars. That is but a small portion of the 2009 Wall Street profits or bonuses. A 15 % tax upon the 20.2 billion dollars given in bonuses, if dedicated to elementary and high schools would prevent raising real estate taxes or cutting programs and firing teachers. It seems only fair that Wall Street help the economy, which was wrecked by its wild gambling, but saved by our tax dollars in the biggest bank bailout in history. It not suggested that a 15% percent increase be imposed but the idea gives an example of the availability of money from sources which are better able to pay the additional taxes.

Current pervasive budget thinking gives no thought to the middle class. Current thought is to cut spending upon programs upon which the middle class depends and raising the middle class real estate taxes. Where does this thinking come from?

The simple answer is IGNORANCE. The more complicated answer is a decade of propaganda and myths that have been propagated by special interests. These myths must be dispelled and the truth must become common knowledge.

How?

Each of us must become familiar with governmental budgets and knowledgeable enough to put the lie to myths and misinformation. We cannot rely upon the media as it is as much responsible for the myths and misinformation as the special interest and those who do their bidding.
What must be done? The first step is education – our own.

There are many sources but I recommend the Web Site of Fiscal Policy Institute. This is an organization which gathers data on taxes and budgets. It furnishes analysis and projections. The Manhattan Institute does basically the same thing. Both have a “view” but we must be critical readers so we can use the data. Locally we have James Sheldon’s “Little Town View” which also collects useful data and analysis on the local setting.

Fiscal Policy Institute: http://www.fiscalpolicy.org/
Manhattan Institute: http://www.empirecenter.org/
Little Town View: http://www.littletownviews.com/

The following are a few ideas that we must use to persuade others to protect our schools and the middle class.

Myth # 1
Taxes cannot be raised as we are already taxed too much.

Truth
Taxes are too high on the Middle Class and the Home Owner because of the dependence upon real estate and sales taxes. High end earners are not taxed as much.

Taxes are going to be raised on the property owner and the Middle Class by the current NYS Budget. The Albany budget creates massive tax shifts to those least able to afford the increases. Almost all the recent headlines are about the increase of School taxes made necessary by the
NYS’ “spending cuts”. This means higher school taxes. In addition the middle class is paying more than its share of the tax burden.

The issue is not whether there will be tax increases – there will be. The question is who is to pay? Under the current budget considerations the middle class and the real estate tax payer will bear the brunt of the increases. Who is better able to pay the increase? Should it be the middle class taxpayer? Should it be the home owner?

Consider the following information from FPI. http://www.fiscalpolicy.org/

If you earn $ 33,000 – $56,000 your state and local tax rate is 11.6% If you earn $ 633,000.00 + your state and local tax rate is 7.2%

The following is the chart is the source of the information and is from FPI.


MYTH #2
A tax on high earners they will cause them to leave NYS.

TRUTH
In 2002, a 3 year temporary income tax increase was imposed upon high earners. The following years the number of high earners increased by over 100,000. This happened in spite of dire warnings by Governor Pataki when the legislature was able to override Governor Pataki and increased school funding with budget with a temporary “millionaires tax”.


What is the solution? The following are suggested by the Fiscal Policy Institute:

1. Enact temporary tax measures that recapture some of Wall Street’s profit windfall to spur Main Street’s recovery.
2. Close loopholes and reform New York’s tax system to make it fairer and more effective.
3. Support federal action needed for more fiscal relief, job creation, and ensure corporate taxation. ( note: The House of Representatives has passed such a bill but it has been blocked in the Senate for several months)

Note: The entire paper supporting the above is found at:
New York Has the Ways and Means: How and Why Wall Street Should Give Back to Main Street;
http://www.fiscalpolicy.org/CWF_FPI_NewYorkHasTheWaysAndMeans.pdf

What can we do?

We must educate ourselves so we will not be mislead by those interested in the status quo. Then we need to write, e-mail, blog, write to elected officials, write letters to the editors, picket, march and boycott. The status of the middle class is at stake, if not for us – for our children. We must begin now. Who is “we”? Each person effected and our organizations like unions, School Board members and leaders; as well as music and physical education boosters.

If you are interested in joining me and some others to promote a better budget, better schools, and fairer taxes, please let me know at:
mcgivneydoug@berk.com

Doug McGivney

Response to Faso Defenders

There were two letters to Register Star editors criticizing my response to Mr. Faso’s Feb. 15th Op Ed article urging teachers, public employees and schools to make “give backs” in order to help with our current financial woes. One called me a “typical radical Marxist liberal” and the other suggested I have a “socialist philosophy”. Mr. Shanahan also criticizes me for attacking Mr. Faso’s legal work as an attorney for Widewaters/Kohls IDA application.

None of the characterizations or criticisms is true.

I do not question Mr. Faso’s ethics as a lawyer or lobbyist and both are honorable professions and he is certainly doing an effective and competent job.

My point is that Mr. Faso’s Editorial piece is consistent with has conservative principals even when speaking as a citizen/politician. When Mr. Faso speaks out as a citizen/politician – his views needs to be viewed with knowledge of his corporate ties. His philosophy is consistent with protecting those with large incomes. It was his article that mentions the $ 750,000.00 per year earners and suggests we are “extremely dependant” upon them and instead urges reduction in schools spending, and “give-backs” by public employees, especially naming teachers.

I continue to find it ironic (although consistent) that Mr. Faso urges a 3 million dollar tax break for Widewaters/Kohls and yet for the $ 2 million Columbia County short fall, he urges teachers and public employees to give back negotiated gains. Worse yet, schools themselves must cut back vital programs and lay off teachers.

The issue isn’t whether there will be increased taxes. There will be tax increases as indicated in every school budget being proposed. The question is: who should pay the increased taxes? Mayor Bloomberg’s January Financial Plan for 2010-14 estimates that 2009 Wall Street profits were a record $58 billion, nearly three times the previous record (2006).

Again, who is better able to pay increased taxes? The home owner who may have decreased income but increased assessed value on the home or someone who enjoys a large income and even an increased income?

Mr. Faso’ most recent defender indicates that the high earners will leave NY. However, Fiscal Policy Institute reported after the 2003 millionaires tax; really a surcharge:
…. employment in the state grew each year that the surcharge was in place, and the number of high-income returns grew steadily from about 245,000 in 2002 to an estimated 420,000 in 2007.

Again, who is better able to pay the inevitable increased taxes?

Doug McGivney
Kinderhook

Response to Op Ed piece by John Faso in 2/10 Register Star

I disagree with Mr. Faso’s recent “op ed piece” in the Register Star. Mr. Faso’s position regarding NY’s funding woes is ironic but consistent with conservative/republican view.


His concern for those earning over $ 750,000.00 per year is consistent with his recent application for 2 million dollars in tax breaks for Widewaters. However his suggestion that the 3 million dollars due to teachers and other workers be given back is ironic when considering his lobbyist/lawyer role in the application for that $ 2 million in corporate tax breaks.



His advocacy of corporate welfare for Widewaters is consistent with right wing attitudes. He places New York’s funding woes on “ increased demands for K-12 education spending, Medicaid costs, and health and pension costs for public workers."

Public employees and eduction are easy scapegoats for conservative commentators; it seems easy to blame education costs and employees for our economic woes. I suggest that the real reasons for our economic woes are decreased federal funds caused by bailing out banking gamblers, deficit-causing tax breaks for those people earning over $ 750,000.00 per year and the conduct of two wars – one of which was a preemptive war of choice.



Our teachers deserve the money they earn trying to improve the next generation. Even Mr. Faso’s concern about 3 million dollars in “give backs” pales in comparison to the 175 million paid a single Health Insurance executive. It is also a tiny percentage of the bonuses being claimed by many of those earning over 750,000.00 on Wall Street. Billions of tax dollars given for those big earners does not seem to be a problem for the conservative, Mr. Faso.



Why not join President Obama and many others in calling for the return of bonus money by the corporate gamblers instead of the teacher's "give backs" of health and retirement benefits?


Why should a highway worker have to give back a raise that is small because of the increase in his/her health insurance or the increased co-pays and deductions?


Except for “ K-12 Education”, the other two woes quoted by the Mr. Faso in the Register Star are related to the high cost of Health Insurance. The cause is high insurance is not necessarily due to high cost of health care. The physicians, nurses and other health care professionals receive only a part of the health insurance premium. Insurance companies get the rest and much of that goes to obscene executive pay.

Perhaps, Mr. Faso’s photo at last summers “Tea Party event” shows his consistent conservative attitude toward Health Insurance Reform.

Why not join President Obama in seeking Health Insurance Reform?

Why not join President Obama in seeking a return of the bonus money taken by the banking gamblers instead of tapping teachers pay and benefits.











Who is better able to pay for what our economic “woes”?

Consider the following:

Gross domestic product and historically high productivity growth should have raised paychecks up and down the income ladder, but instead the benefits of that growth have bypassed most of the people who made it possible. From The State of Working America found at http://www.stateofworkingamerica.org/.

Also, 34.6% of all income growth over the past three decades has gone to the top one-tenth of 1% of all earners. By contrast, the bottom 90% of all earners has collectively seen only 15.9% of all income growth over the same period. The above information is taken from the Economic Policy Institute Web Site found at:
http://www.epi.org/analysis_and_opinion/entry/a_long_and_persistent_middle-class_squeeze/