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Posts Tagged ‘Tax Cuts’

Congressman John Sullivan’s Town Hall Meeting

Sat ,31/12/2011

Election season is coming up, and many of our representatives are, or will be, holding town hall meetings. Congressman John Sullivan (R-OK) held  one of his town hall meetings in Sand Springs on November 7, 2011. He told us that things have been crazy lately in Washington, and he illustrated that by talking about the budget.

 Budget: A Supercommittee has been formed with the goal of reducing the deficit by $1.2 trillion. Congressman Sullivan said he did not think that was enough and he supports a balanced budget amendment, with the goal of cutting $4 trillion from the budget. He said that we would have to cut entitlement programs such as Social Security, Medicare, Medicaid, and a list of other programs that mostly help the poor and the middle class.  He said he supports raising the age or cutting the benefits for Social Security, but that those over 55 should not worry, as the proposed changes would only affect those younger than 55.

 A member of the audience commented that he did not think that was fair, as he was just under 55. When the Congressman was asked if he would consider raising revenue rather than making such deep cuts in spending, he said he could not support raising taxes. That is not surprising as he and 276 Legislators have signed Grover Norquist’s anti-tax pledge, making it almost impossible for Congress to raise taxes. Any reasonable effort to balance the budget will require tax increases as well as spending cuts. Congress is trying to fight the budget battle with one hand tied behind its back.

 Congressman Sullivan also criticized the budget submitted by the President, saying that no one would vote for it and even Harry Reid voted against it. A member of the audience pointed out that Harry Reid changed his vote for procedural reasons and asked what the Senate’s vote was. The congressman replied he did not know. The records show that the President’s budget passed the Senate by a vote of 51 to 47, but not enough to overcome a filibuster. Harry Reid changed his vote as a procedural move so that it might be brought up again later.

 Banking reform: Congressman Sullivan said he could not support unneeded regulations and that the Dodd Frank law should be repealed because “it hurts small banks”. That is surprising, as the Dodd Frank bill was applauded by the Independent Community Bankers of America who said it would “level the regulatory and competitive playing field for community banks.”

Energy: The Congressman said he has introduced legislation encouraging the development of natural gas as a fuel. He pointed out that natural gas provides about three times as much energy and costs much less than gasoline. Natural gas is plentiful in Oklahoma and developing the infrastructure to use it as a fuel would help Oklahoma’s economy and reduce our dependence on foreign oil. Using natural gas would also significantly decrease our carbon emissions – but the Congressman did not mention that as he does not accept the scientific research on climate change.

 EPA: Congressman Sullivan was quite critical of the EPA and stated he has introduced legislation that would require the EPA to do a cost-benefit analysis for every rule it makes. His legislation would create a huge amount of paperwork for the EPA and would make its job impossible to do, which seems to be his goal. Perhaps Congressman Sullivan could help by including a value for human life in his bill, as the EPA says slashing toxic emissions would prevent many premature deaths. The American Lung Association  estimates that the EPA’s proposed  guidelines could prevent 38,000 heart attacks and premature deaths, 1.5 million cases of acute bronchitis and aggravated asthma, and 2.7 million days of missed work or school. The public agrees that the EPA should be setting standards to protect our health, not Congress. A recent poll found that more than two-thirds of registered voters supported EPA setting strong air pollution standards.

 Jobs: The Congressman spent considerable time criticizing the job creation efforts and the economic policies of the President, particularly the stimulus program. When he declared that the government could not create jobs, someone the audience asked him about the CCC and the WPA, which created jobs during the Great Depression and provided improvements in the infrastructure, such as creating the REA. The Congressman answered with a long criticism of the stimulus package, which he finished by claiming that the stimulus package had not created one job.

 A school administrator in the audience said that there were a number of jobs saved in education by the stimulus money and that the cuts to the school budget would’ve been much worse without it. Interestingly, the records show that District 1 in Oklahoma, Congressman Sullivan’s district, received $463 million in stimulus money which directly created 280 jobs. That did not include jobs indirectly created or jobs that were saved, such as the teaching jobs.

 Services: When asked about cuts to mental health services, the Congressman rather surprised us all by saying that one fourth of all Oklahomans have some form of mental illness. The Congressman said he supports mental health programs, efforts to help soldiers with PTSD, and programs that help those with substance abuse. However, it is rather difficult to see where money would come from to support those programs if the budget were cut by $4 trillion.

 2012: The 1st District covers the population centers in the northeast part of Oklahoma, mostly Tulsa and north to Bartlesville. We certainly appreciate Congressman Sullivan taking time to share his comments with us and answer our questions. Some of the things the Congressman said were of concern to the author, as you can discern from his comments. As the 2012 elections near, Oklahoma voters need to weigh carefully what Congressman Sullivan says and how he votes in order to decide if we should return him to Washington.

Co-authorship credit: Barbara Moore

(c) 2011 J.C. Moore

Is Grover Norquist Helping Your State Go Broke?

Thu ,06/10/2011

Tax Cuts: Though it sounds good to be against taxes, fiscal responsibility may require that taxes be raised, particularly after they have been cut beyond what is prudent. Because of the reduced revenue in Oklahoma caused by the 2004 state tax cuts, it has become very difficult for the state to meet its financial obligations. In spite of that, another tax cut that was set to be triggered when state revenues improved by 4%, will go into effect in 2012. Astoundingly, that tax cut was triggered only because the state revenue had fallen far below the amount needed to fund the state’s needs adequately. Oklahoma is not able to adequately fund K-12 education, higher education, infrastructure, transportation, public health services, public safety, and other services. Oklahoma ranks near the bottom of all the states in poverty, public health, education, crime, and infrastructure repair, yet the legislature has engineered another tax cut . While the tax cuts were touted as a way to lure businesses to the state, it is difficult to see why a business would want to move to a state where its management and employees would have to live in substandard conditions.

Oklahoma Taxes: Although it is easy to cut taxes in Oklahoma, it  is very difficult to raise them. Raising taxes requires either a three fourths majority in both houses of the legislature or approval by a referendum.  It is very difficult to convince voters that they should vote to increase taxes upon themselves. Tax decisions are best decided by the legislatures, who are charged by the Constitution with budgeting adequately for the needs of the state. However, it is unlikely that Oklahoma would ever get a three fourths majority to raise taxes as Oklahoma’s  Governor, Lt. Governor, 7 Senators( of 48), and 26 House members( of 101)  have pledged away their responsibility to raise needed revenue by signing Grover Norquist’s  Americans for Tax Reform Pledge.

Norquist’s   Pledge is not as much about reform as one might expect. The true nature of the anti-tax organization was revealed when Norquist claimed it was a violation of the Pledge to close tax loopholes for companies that outsource American jobs overseas. Apparently, Norquist has set himself up as the sole interpreter of what the Pledge means, and he uses it to intimidate those who have signed the pledge into following his wishes. He first said that allowing the Bush tax cuts to expire was not really a tax increase, then reversed his position, claimed he misspoke earlier, then claimed anyone voting to let the cuts expire would be violating the Pledge. He also claimed that Sen. Tom Coburn violated the Pledge when he supported ending the subsidies for ethanol, which have raised food prices and been disadvantageous to Oklahoma farmers. Grover Norquist, who was not elected, and whose name many would not even not recognize, has become a power broker in our national and state governments.

Oklahoma’s Constitution: Still, the responsibility rests with the elected representatives.  In Oklahoma, there is a prohibition against our elected Representatives signing such a pledge. The Oklahoma Constitution, says in Article X, Section 5: under Surrender of Power of Taxation :

“ A. Except as otherwise provided by this section, the power of taxation shall never be surrendered, suspended, or contracted away. “

There are no provisions in the section exempting Oklahoma’s elected representatives from abiding by the restriction stated in “A.”  Clearly, signing the Pledge is a violation of the Oklahoma Constitution, which the legislators have sworn to uphold. 

Your Representatives:  US Senators and Congressmen are important at the state level as they are considered to be leaders in our respective states. Norquist claims 235 US Representatives and 41 US Senators have signed  his Pledge. In doing so, they have clearly given up their responsibility as our elected representatives.   If your state is unable to meet its financial obligations, those at the state level who have taken the anti-tax pledge are listed in this article.  Also, those in the US Legislature who have signed the pledge are listed here. You may wish to check see who from your state has signed the pledge and contact them. Since Norquist claims that signing the pledge is binding into perpetuity, I would suggest that we make sure none of the signers are re-elected.

 

The Oklahoma Lists: Below is a list of those who have signed the pledge in Oklahoma. If anyone is listed who has not signed the pledge or has had their name removed, please notify the author in a comment on this article.

Oklahoma:  

Gov. Mary Fallin

Lt. Gov. Todd Lamb

 

7 Senators (of 48)

Cliff Aldridge (S-42)

Josh Brecheen (S-6)

Bill Brown (S-36)

Sean Burrage (S-2)

Kim David (S-18)

David Holt (S-30)

Jonathan Nichols (S-15)

 

26 House members (of 101)

Gus Blackwell (H-61)

Mike Christian (H-93)

 Josh Cockroft (H-27)

David Dank (H-85)

Lee R. Denny (H-33)

David Derby (H-74)

George Faught (H-14)

Corey Holland (H-51)

Charlie Joyner (H-95)

Sally Kern (H-84)

Charles Key (H-90)

Randy McDaniel (H-83)

Jason W. Murphey (H-31)

Charles Ortega (H-52)

Leslie Osborn (H-47)

Mike Reynolds (H-91)

Mike Ritze (H-80)

Dustin Roberts (H-21)

Sean Roberts (H-36)

Mike Sanders (H-59)

Earl Sears (H-11)

Colby Schwartz (H-43)

Randy Terrill (H-53)

Sue Tibbs (H-23)

John Trebilcock (H-98)

Paul Wesselhoft (H-54)

 

Six of Oklahoma’s seven  US Legislators have signed Norquist’s  Pledge. Those are:

Senators: Sen. Tom Coburn* (R), Sen Jim Inhofe (R)

 Representatives: John Sullivan (R), Frank Lucas (R), Tom Cole (R), and James Lankford (R).

* In all fairness, Senator Coburn has worked on a bi-partisan budget solution and recently drew Grover Norquist’s ire by suggesting we might have to raise revenue.

(c) 2011 J.C. Moore

Research credit:  Barbara Moore

Bits and Pieces 7: The President and the National Debt

Tue ,02/08/2011

This link is to a Tulsa World Cartoon showing Congress playing President Obama like a fiddle. Many who commented on it used it as an excuse to criticize Obama. They need to stop and think.

Yes, Congress is playing Obama like a fiddle. However, it reminds me of the story of Solomon. When two women came before him, both claiming the same son, Solomon ordered the boy cut in two and each woman given half. When one woman, cried “No”, she would give up her claim, Solomon awarded her the child, as she obviously cared more for it.

When Congress demanded Obama extend the tax cuts or they would cut benefits to the unemployed, Obama compromised. When Congress would have let us default on our debts, causing untold damage to our financil institutions and our citizens, Obama compromised. You may criticize Obama for compromising, but I think it is clear who cares more for America.

The Health Care Debate's Red Herrings

Tue ,15/09/2009

The debate on the healthcare has been filled with red herrings. Swallowing red herrings makes people irritable and they often say things in anger without thinking them through. If we trace the red herrings to their source, we would probably find that they were created by those who have the most to gain from the failure of health care reform. However, health-care reform is too important to let it be sidetracked into pointless arguments.

One of the red herrings popped up dramatically in the President’s address to Congress. When President Obama pointed out that the Health Care Reform Bill would not provide coverage for illegal aliens, Senator Joe Wilson (R-SC) shouted out “You lie.” Clearly someone had planted a red herring as the health-care bill specifically says on page 146: “Sec 246 — NO FEDERAL PAYMENT FOR UNDOCUMENTED ALIENS: Nothing in this subtitle shall allow Federal payments for affordability credits on behalf of individuals who are not lawfully present in the United States.”

The problem with illegal immigrants arose from a truly bipartisan and humanitarian effort.  In 1986, two major pieces of legislation were passed by the Democratic Congress, approved by the Republican Senate, and signed into law by President Reagan. The 1986 Immigration Reform and Control Act provided amnesty for 1.5 million undocumented aliens. Its purpose was to halt illegal immigration, but we now have 12 million illegal immigrant so it has apparently failed. The connection to health care came also in 1986 with the passage of the Emergency Medical Treatment & Labor Act which ensured public access to emergency services regardless of ability to pay. Those without money or health insurance now use the emergency room as their primary healthcare provider. The cost of that is staggering, and much of the cost is eventually paid by citizens in the form of higher taxes and more expensive medical services. Illegal immigrants have become a serious problem, but it is not one that can be corrected by the health-care bill.

There are strong feelings on both sides of the abortion issue. Health care reform is too important to those on both sides to let it become a battlefield for ideological differences. The Health-care Reform Bill does not provide public funds for abortions. The bill does not mention abortion. There are those who wish to insure that public funds are not used for abortion and their wishes should be respected. There are those who think providing health care to women who are now uninsured would surely reduce the number of unintended pregnancies and they are right. There are methods of birth control acceptable to every religious faith. Certainly, providing health counseling to women, good prenatal care for expectant mothers, and excellent health care for babies are goals that everyone can share.

 Tort reform is another red herring. The malpractice system is clearly broken. Doctors are afraid to admit error for fear being sued, malpractice insurer will not pay a claim without an admission of error, and an injured patient has little recourse but to sue.  A University of Michigan1 study has shown that malpractice lawsuits could greatly be reduced if doctors would admit their errors, apologize, and compensate the patient fairly for their mistakes.  It has been estimated that litigation costs and malpractice insurance add about 1-1.5 % to total health-care costs.2 The malpractice system needs to be fixed but doing so will not substantially reduce medical costs or help the uninsured. Perhaps malpractice insurance co-ops for doctors should be considered.

 Unfortunately, the cost of health care reform is not a red herring.  Most estimates put the cost at slightly less than $1trillion over 10 years. To put that in perspective, that is about the amount spent in seven years on the Iraqi war; the amount spent in one year to bail out the banks, insurance companies, and the auto industry; or half the amount spent over 9 years to provide tax cuts to those in the highest income tax brackets.3 (See note below.) Healthcare reform could easily be paid for by letting the 2001 tax cuts expire . The United States has a graduated income tax scale based on the idea that those who profit the most from the resources and opportunities our country offers should pay more in taxes. Perhaps seeing that every citizen has health care would let us feel good about paying more in taxes.

(1)   See: http://www.msnbc.msn.com/id/32011837/

(2)   http://www.upenn.edu/pennnews/sourcesheet.php?id=529

(3) Citizens for Tax Justice, using data from the Congressional Budget Office, calculate  that  the 2001 tax cuts have cost  about $2.1 trillion in lost revenue and another $0.4 trillion in  interest  on  the deficit created. Letting the tax cuts expire would  save about  $2.5 trillion over the next 10 years which would pay for Health Care Reform twice over.    See  http://www.ctj.org/pdf/bushtaxcutsvshealthcare.pdf  for their figures.

Research Credit:  Barbara Moore


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