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Original Content at https://www.opednews.com/articles/The-Rush-To-The-Cliff--T-by-John-Russell-121231-210.html (Note: You can view every article as one long page if you sign up as an Advocate Member, or higher). |
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December 31, 2012
The Rush To "The Cliff," The Deception vs Unspoken Alternatives
By John Russell
This article represents an expansion of the views delineated in my recent article on the Fiscal Cliff. In this article I compare the massive sales promotion of impending danger to that of the sales pitch that we hear as the functionaries push our nation toward war. Rather than blindly accept the propaganda I propose rationale solutions for a better country going forward that will broaden and strengthen our economy for all.
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There are some very close parallels between how the "corporatocracy" sells the American people on a rationale for going to war and the current national preoccupation known as the "Fiscal Cliff." The tools that are always in play for selling us the need for war, are similarly actively engaged in pushing the American people to accept the necessity of placing the cost of serial mismanagement of our economy by both parties over now several decades on the backs of those least able to afford it... RIGHT NOW! When it comes to buying in to a sales pitch and ake no mistake that is precisely what "The Cliff" is all about never give in to the deadline proposal that this deal MUST be accepted RIGHT NOW... or else you will pay a greater price later or whatever. It IS the health club membership pitch!
This maelstrom is being sold at every level possible 24/7. If you turn on your car radio, the TV, pick up the paper all you hear or read about is the World Wrestling Federation of D.C. self flagellating about the Fiscal Cliff and how "we just have to cut those nasty entitlements." How the old are placing the burden on the young by refusing to relent on Social Security and Medicare. This propaganda when the reality is never spoken that behind all this phony battle in the phoniest ring of all, Washington D.C., is the bipartisan effort to protect the major benefactors of the politicians residing there" "The TOP 1%" and "The Corporation!"
Never to be mentioned is the bloated nature of the budget benefiting our "Defense Establishment" which annually expends more dollars than the next ten closest nations combined. This IS the cost of Empire! Social Security on the other hand constantly mentioned as the root cause of all budgetary woes after all, is not even a part of the federal budget, excepting for the fact that the elected officials have been borrowing against the trust fund for more than half a century to fund defense appropriations and other assorted goodies.
Apparently these folks collectively now are finally coming to the realization that they do not want to raise the tax revenue necessary to reimburse the trust fund that they've used as a piggy bank for so long. The corrupt officials in league with the corporate media et al... and any other retired "lackies of distinction" who can be called upon to to lend their "credibility" to the propaganda, are sallied forth daily to enhance the Cause de Cliff as a further means of convincing a largely unwitting public to approve action to avoid the concocted deadline of disaster..
A sad but still very convenient and timely distraction from the reality of the whole fiasco has been the tragedy of Sandy Hook Elementary. The gun discussion once again takes the stage, distracting from the major cause of such incidents which is the horrendous lack of access to mental health services in this country due to budget cuts at the federal level, again taking place over many years under "bipartisan MIS-management. " One solution would be that of instituting access to health care for all by opening enrollment in Medicare to all Americans as an option in the Affordable Care Act as I have long suggested as a candidate for congress and an ARNP.
Still it is the selling of the masterminded deadline for action to avoid certain economic disaster in what can only be characterized as a national travesty of integrity on the part of our corporate managed political class in Washington. I encourage people to watch this video concerning the "selling" of war to the American people which merely regarding the issue of war is invaluable. In doing so, I am quite certain that most will see as I did the parallels in the sale of the crap known as the Fiscal Cliff. http://www.youtube.com/watch?feature=player_embedded&v=mpXZyhr1Sbg The solutions are available but because of the corporate proprietary interests of our collective elective "politique" in D.C., representation for the majority is AWOL.
Below, I offer some reasonable suggestions for solving America's Fiscal/Economic inefficiencies, however these solutions for the most part require those who have been the most successful to fork over some of their wealth so that America as a nation inclusive of all of its people can prosper. Major problem with this being that the "Top 1%" control the politicians and for the most part notable exceptions not withstanding like Warren Buffett and Nick Hanauer, the most affluent are not willing to do that.
If I wanted to Strengthen and Broaden the U.S. Economy I would advocate for the following policies, which collectively would begin to solve our long-term macro-economic problems including the federal budget deficit and the debt.
- In order to correct this major problem in our economy, we must make some changes in Federal Tax policy. As denoted in my Economic Policy, I would advocate treating Capitol Gains as Earned Income subject to marginal tax rates just like wages, salary and tips.
- I would advocate making the First $10,000 of Federal taxable income NOT subject to the FICA Tax.
- As for Social Security payroll taxes I would seek to lift the cap on Federal Taxable Income subject to Social Security/FICA Payroll taxes immediately... from the current level of $110,100 increasing the upper limit of income subject to FICA to $10,000,000.
- I would seek to designate as well, Profit Distributions from Chapter S Corporations as being subject to FICA tax to remove that GAPING LoopHOLE!
- I would place a .025-.05% transaction tax on all equity transactions on Wall Street including the most exotic varieties.
- I will advocate for increasing the Federal Estate Tax Exemption to $7 Million while also increasing the Federal Estate Tax Effective Rate to 55% from the current level of 35%.
- I will strongly advocate for the commencement of investigation and Federal indictment of Wall Street executives, as well as politicians and appointees, responsible for the 2008 economic meltdown. The names are there - Bernanke, Paulson, Geitner, Blankfein et al.
- I will advocate for a return to Glass-Steagall in re-regulating Wall Street, among other avenues such as the repeal of the Gramm-Leach-Bliley Act of 1999, to return security to the American financial system.
- I will advocate as well for the prompt repeal of The Commodity Futures Modernization Act of 2000, which opened the door to the world of Credit Default Swaps and Credit Default Obligations that gave us the 2008 Wall Street collapse. To date, there has been essentially no regulation of the banking industry in the wake of the 2008 debacle, as witnessed by the recent (multi-billion dollar) losses at J.P Morgan Chase.
- I will advocate for equal tax treatment of capital gains and earned income, thus restoring a modicum of equity to our federal tax policy. I will advocate for elimination of the "carried interest" tax loophole that allows private equity fund and hedge fund partners to claim their earnings as capital gains, thus paying an extremely low tax rate. This loophole will be eliminated automatically if we restore the current preferred tax treatment of capital gains to that of appropriate marginal income tax rates associated with that of earned income as suggested above.
- I will advocate for legislation to repeal the tax loophole that allows foreign subsidiaries of U.S. Corporations to avoid paying federal taxes on income generated by foreign operations.
- I will advocate STRONGLY AGAINST ANY legislation that allows for U.S. corporations and/or their subsidiaries to be granted a "Tax Holiday" in order to return earnings/profits to the U.S. either tax free, or subject only to an outrageously minimal tax.
In Order to Secure Social Security
I would recommend:
Details/Rationale
Twenty years ago give or take,I sat in Delaware Park in the City of Buffalo discussing the way things were headed in America with my good friend Dave Curry. I postulated that the next great battle would be the "Haves" vs "The Have Nots." I was not so far off in my points made that day. The graphs that describe the trends in real income/purchasing power tell the tale.
In the time since I had that conversation with my friend, the middle class has shrunk dramatically while the fortunes at the very top of the income pyramid have swelled. I won't bore you with the details...They are self-evident!
Most Americans are acutely aware that their prospects for income growth have either stagnated or shrunk over the past twenty years. Unless for example you are engaged in a particular area of the economy where your employment has remained more or less secure such as in my case, health care. Then you are feeling the crunch. Although, even those who are physicians are not doing so well financially as they once were due to a number of factors.
If you are a student at any level, you realize that opportunity has become increasingly limited in all sorts of fields that once promised prosperity and security. Though some who have no reason for concern with their employment and career prospects may cry "The Politics of Envy," more rational consideration depicts our shared dilemma as a system that is completely out of balance.
The Problem Is: Lack of Demand
Nobel prize winning economists describe a lack of demand as being behind our lagging economy. Businesses need customers and if those who would aspire to be their customers have not the wherewithal to purchase goods and services produced by a given business, then all concerned suffer the consequences.
So called "Trickle Down" or "Supply Side" tax policy has been tried for now better than three decades... IT HAS NOT WORKED! If ONLY we lower the taxes on the top, then and ONLY then will business "create" more jobs.... Simply LUDICROUS!
The immature thought that someday I just might win the lottery and I don't want to have to pay taxes on my winnings just does NOT hold water and should NOT fly. But interestingly, a certain relatively significant proportion of our fellow citizens do amazingly believe such propaganda. I hope that the suggestions that I have made and the rationale upon which they are based and upon which I based my candidacy for congress offer those who have read what I offer, at minimum some food for thought. Your feedback is invited.