Response to Anonymous Comments on Grover Norquist November 27 Blog

Ham on Wry offers apologies to readers for using the blog to reply to one person's comments, but has no other means of doing so, since comments arrive from blogger.com as a no-reply message.  To the person who wrote the comments, thank you for taking the time to send a comprehensive e-mail.  I will reply to those sections that warrant clarification.

Your second, third and fourth points are all related, so I address them as one.  Please note, I was referring to personal income taxes solely in that section.  Your point raises the issue of corporate (and I assume business) taxes, which does not pertain to my conclusion.  Personal taxes do not affect jobs creation, and I have researched that fully.  You asked if I meant to state public and private sectors rather than for-profit and not-for-profit.  No, I didn't.  Other than government jobs, which fall under the public sector, the for-profit businesses create the vast majority of jobs in this country.  Many emanate from entrepreneurial enterprises.  The not-for-profit sector includes some hospitals, charitable organizations, foundations, etc.  As for your use of "people:", I am referring to individuals, not corporations or other business classifications.  While the Supreme Court classifies corporations as people, which defies logic since they don't breathe, eat, marry, or attend school as a single entity, the tax code differentiates between personal, corporate and business taxes.  Consequently, when I wrote that raising taxes on people that have earned income of $1 million or greater, I was referring to personal income taxes.  FYI, Social Security Data show that 50% of Americans earned less that $26,364 in 2010, while 18% earned more than $1 million that year.

My blog was titled "Grover Norquist Still Spouting Nonsense on Meet the Press", so my conclusion about his statement with respect to his comments about Papa Bush having success in the Gulf War do relate to that title.  Norquist used that as proof that the only reason Bush was not re-elected had to do with a tax increase.

I, too, think national defense is important, but, unlike you, I feel no safer because we waged war in Iraq.  Hussein didn't threaten us, nor did he attack us, nor did he have WMD's.  Thus, I think it's outrageous that we spent over $1 trillion in direct costs and billions more in lost equipment and money that somehow disappeared over eight years and nine months.

You questions why I care who funds Americans for Tax Reform.  With a name like that, I want to see a cross representation of Americans in support of it.  The only contributors I find are foundations and corporations.  I'd like to see a list of individual contributors.  If individuals don't contribute, the name of the organization should change.  You also wondered why I have difficulty with Norquist's influence in Congress.  He is not an elected member of Congress, and, therefore, can't be removed from office.  He threatens Republicans with losing a bid for a seat in Congress, if they don't sign the pledge or rescind it later. Norquist stated it wasn't a pledge to him; it was a pledge to the American people.  I know many Americans who asked for no such pledge. Warren Buffett among them.

You said you'd like to be a millionaire some day, and I hope you succeed.  It is different when you want to make life better for your family than it is if you use money to sway political decisions.  Class warfare is a term I find divisive,.  It's employed anytime one suggest something that the uber rich might do, and my comments don't fault people for being rich.  I do take issue with people who have gained wealth by risking other's money and suffering no consequences.  Taxpayers pay dearly for that kind of personal gain.

Again, thank you for your comments.

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Grover Norquist's Alarming Control of the Republican Party

Photo from www.welt.de

Ham on Wry has been tracking information about Grover Norquist for a future blog, and the time has come to write it.  To use a favorite sentence typing teachers used for student practice, "Now is the time for all good men to come to the aid of their country."  Norquist has headed Americans for Tax Reform since 1986, but Grover Norquist's Quest for Aggrandizement Support would be more a more apt name for the group.

Norquist's mission should send the American public into a state of panic, and two situations arose this week to make that case.  The first occurred, Wednesday, November 16th, when Patriotic Millionaires visited Capitol Hill to advocate for a tax hike on those earning over $1 million.  Norquist gave them the following advice: "If you think the federal government can spend your money better than you can, then by all means pay more in taxes than you owe. The IRS should have a little line on the form where people can donate money to the government, just like the tip line on a restaurant receipt.” His smug, sarcastic comments typify his supercilious attitude toward anyone he feels beneath his level of intelligence, which pretty much means everyone except Grover Norquist.

The second occasion spurred Ham on Wry to move this post to critical status.  60 Minutes aired a segment last night in which Steve Kroft interviewed Norquist.  That interview should sound a wake-up call to all sentient citizens.  Norquist has successfully badgered almost every Republican member of Congress, 279 in all, to sign a pledge stating that they will never vote to raise taxes on anyone, under any circumstances.  The Speaker of the House, the Senate Minority Leader, and the six Republican Members of the Super Committee have all signed that pledge.  Never?  Ham on Wry deplores that pledge and the man who conceived it.  He'd like us to return to the beginning of the 20th Century with respect to taxes.  No wonder the Super Committee can't do its job.

What we have here is a megalomaniac who wields a level of power akin to that of a dictator.  If Republicans either rescind their signature or fail to sign the pledge, Norquist will gather his forces to make certain that they don't survive a re-election effort.  His insufferable smile depicts the self-satisfied, superior attitude of a man who has become "a legend in his own mind."  Republicans who buckle to his pressure are wimps and not worthy of making laws for this country.  Norquist spoke of weakening the Republican brand if total agreement to the pledge doesn't happen.  Ham on Wry grows weary of the term branding.  He really means that it weakens their targeted manipulation of voters and his power to control the Republican Party.  Political parties should comprise a range of beliefs, not a single-minded effort to achieve something that makes little sense, unless you have great wealth and want more at the expense of the majority of the country's citizens.  Norquist has revealed himself to be entirely self-serving.  He hides behind his non-profit and demands of others what he won't do himself.  He will not reveal the list of contributors to his organization.  I wonder why?  I leave readers to draw their own conclusions.

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Super Committee Predicts Failure to Agree

Members of the Super Committee/Democrats above Republicans below

Ham on Wry truly believed that the twelve Congressional members pictured above would leave partisan politics at the door and. as the Super Committee, forge some kind of agreement before Wednesday's looming deadline.  Given the consequences attached to the failure to do so, it seemed that the American public could count on some degree of success.  With comments made by members of the Super Committee on today's political talk shows, it appears little hope remains that they will start behaving like adults.

With the most recent polls showing an approval rating for members of Congress at 9%, this will most likely call the Grim Reaper forth on their political careers.  Years ago, I taught junior high and witnessed some of the most ridiculous posturing and name calling one could imagine; however, this debacle shows that just because someone ages in years, doesn't mean that wisdom accompanies the chronological changes.  Woe will fall on the vast majority of this country's citizens, as a result of the Super Committee's juvenile behavior.  There's no "throwing the baby out with the bath water" in this situation.  Everyone needs to go!  Instead of seeking compromise, both parties entrench themselves in political ideology.  Guess what?  That doesn't increase revenue, promote a fair and reasonable tax system, or fund critical program.

Now what happens?  That seems to depend on which expert one consults.  Sadly, if the Super Committee fails, a sequester will occur that forces them to cut $1.2 trillion from the budget, half from defense spending and half from other programs.  No matter how I study the issue, the picture looks dim for education of all types and programs for the disadvantaged.  Entitlement programs will surely fall under the ax as well.  Ham on Wry suggests that readers conduct their own research, rather than relying solely on that done by the blog.

Ham on Wry leaves this post with a warning for all Americans and for citizens of every county on the globe.  If the lack of leadership and initiative continues, our economy will do anything but thrive.  Citizens must exercise their right to vote in an informed fashion, and that probably means eschewing all TV and radio ads and relying solely on good, old-fashioned reading from a variety of sources and points of view.  A large part of this mess can be attributed to citizen apathy.  This years has shown the dawn of a major awakening regarding the failures we have experienced economically and politically.  No one is waiting in the wings to ride to our rescue.  We must save ourselves and that means taking action.  Do it now, or regret it later!

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Economic Inequity Rightfully Rankles Occupy Wall Street Protesters

Occupy Wall Street Protesters on Times Square October 15, 2011/Getty Images



In case Occupy Wall Street's message of income inequality still falls on a few deaf ears, Ham on Wry will review a few facts that pertain to the protest.  According to the US Census Bureau's report "Income, Poverty, and Health Insurance in the United States: 2010," several startling facts illustrate a decline in household income.  For example, real median household income declined 2.3% from 2009 TO 2010.   Since 2007, real median household income dropped 6.4%.  Further, real median household income has not returned to the all-time high reached prior to the 2001 recession.  One final statistic aptly illustrates the protesters' claims of inequality.  Changes in the shares of aggregate household income by quintiles indicate an increase in income inequality between 2009 and 2010.

Michael Moore

On Saturday, March 5th, 2011 in a speech to protesters in Madison, Wisconsin, Michael Moore claimed that just 400 Americans have more combined wealth than half of all Americans, with heavy emphasis on 400.  Politifact Wisconsin checked the accuracy of his statement and found it correct.  Moore published something on his website from a Forbes article stating that the net worth of the wealthiest 400 individuals in America in 2009 was $1.27 trillion.  In addition, he used data from a Federal Reserve Board report setting the net worth for all American households at $53.1 trillion in September '09.  Politifact did some further research and found that 60% of all households had a combined net worth of $1.22 trillion.  Thus, Moore actually understated the percentage.

Ham on Wry asks readers to consider one final statistic about economic inequity.  During the Bush presidency, the wealthiest 1% of Americans realized 65% of the economic gains.  Herman Cain, do you now understand the point demonstrators are making?  These numbers don't add up to anything remotely equal to a reasonable distribution of wealth.  CEO's of large corporations in this country receive average compensations 30 times greater than the average worker.  No other major industrialized nation has that kind of monstrous gap in employee pay.

Readers, go buy some walking shoes and start marching, if you fall in the 99% of Americans who don't earn that kind of money.  Some of you have adequate incomes and a comfortable lifestyle, but that might not last long, unless substantive changes occur.  As many of us learned in typing or keyboarding class, "Now is the time for all good men to come to the aid of their country."

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Ham on Wry Award--President Obama's Speech Attracts 31.4 Million Viewers

President Obama discussed the specifics of his plan to increase jobs and boost the economy Thursday night.  Don't let the expressions on Vice-President Biden and Speaker of the House Boehner fool you.  Obama presented a package valued at $447 billion that economists are giving high marks.  Most had a favorable reaction to the president's focus on infrastructure because it accomplishes a great deal more that jobs creation.  Deteriorating roadways, crowded, outdated airports and insufficient mass transportation impede the effective movement of people and products. 

The president's plan would eliminate payroll taxes for companies that add workers or increase wages of current workers, with a cap at the first $50 million in payroll increases. It also includes a $4,000 tax credit for employers who hire long-term unemployed workers, plus a "returning heroes" hiring tax credit of $5,600 to $9,600 for each unemployed vet hired.  In addition, by extending and expanding the existing payroll tax holiday for another year.  Americans will pay just 3.2 percent on the first $106,800 of income, instead of the previous 4.2 percent, which is the current rate under the payroll tax holiday, and far less than the previous 6.2 percent.  He also included money to support mortgage refinancing.

President Obama combined the legislation with specific offsets and reforms.  For example, he proposed closing corporate tax loopholes and levying higher taxes on the wealthy, much like Warren Buffett demanded in his op-ed piece in the NY Times a few weeks ago.  The plan he presented does not affect the deficit, and, later, he'll present proposals for significant, long-term fiscal reforms to the Congressional deficit super- committee.

Ham on Wry suggests that Congress pass this bill as quickly as possible.  A majority of Americans support Buffett'suggestions of raising taxes on the wealthiest Americans.  Middle and lower class citizens have stretched dollars as far as possible, while goods and services regularly rise.  Congress must put partisan politics aside and concentrate on what's best for the country in this time of economic hardship.

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Warren Buffett Tells Congress to Stop Coddling the Super Rich

Warren E. Buffett, CEO of Berkshire Hathaway

Warren Buffett chastised Congress in a NY Times op-ed piece Sunday for its refusal to raise taxes on the wealthiest Americans.  Buffett wrote in part, "While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as 'carried interest,' thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.

These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent."

Ham on Wry encourages readers to study his words carefully in order to grasp the full meaning of his message to Congress.  The last paragraph graphically presents a strong case for his entreaty.  While Buffett paid more money that most of us will ever earn, it totaled just 17.4% of his taxable income.  He explains, " To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot."

Buffett proposes that Congress add two new tax brackets to add revenues. The first will apply to those earning between $1 million and $10 million, and the second for those earning over $10 million.  The first bracket would cover approximately 237,000 people and the second only about 8,000.  Those people receive the most tax advantages, and, in so doing, place a heavier burden on those who earn less than $1 million and keep a larger percentage of their money.

Amy Bingham from ABC World News wrote online, Republican presidential candidate Michele Bachmann told the Wall Street Journal 's Stephen more in June that if elected she would eliminate the capital gains tax, which Buffett said should be increased and amend the tax code so every American pays income tax.  By eliminating the capital gains tax, which is currently 15 percent, the Tax Policy Center estimates that about 23,000 millionaires would no longer have to pay income tax because their only income comes from capital gains. This move would add $11 billion to the federal deficit, according to Forbes.

Many Americans pay little attention to the ramifications of candidates' proposals until its too late.  Buffett has more knowledge about finance and investing than the majority of people sitting in Congress currently.  The notion that raising taxes would cause job loss and curtail investment doesn't wash.  Thank you, Warren Buffett.  Perhaps many voters who have been "asleep at the wheel" will educate themselves before they cast their next vote.    

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Middle Class Morphs into Public Enemy #1

According to many state legislatures and Congress, America's middle class bears much of the blame for everything wroing in society today.  The economic debacle, astronomical health care costs, public education problems, and countless other societal ills exist because attorneys, teachers, firefighters, police,and other nefarious groups have caused them.  Wisconsin, New Jersey, Ohio, Michigan, Florida among others, have enacted laws that sharply reduce the numbers  and benefits of public employees.  Certain congressional members (readers know who I mean) have labeled the new health care law Obamacare, implying that evil lurks in the very thought of universal health care.  Those pesky citizens have done it this time!  They want access to health care when sick and preventive care when not.  What will they want next?  Freedom from unscrupulous politicians?

God forbid that we should examine the responsibility of large insurance companies, banks, investment firms, corporations that outsource to other countries, and politicians for having a role in this mess.  The problems our country faces are complex, and blame can't be assigned to just one faction.  All of us share in the responsibility.  Fund managers create funds that even they can't understand, with hedge funds among the worst of them.  Insurance companies gladly sell policies and use the proceeds to pay their top management outrageous salaries and bonuses, but balk when its time to pay legitimate claims.  Corporations reward their top eschelon with compensation packages that place far too much emphasis on their contributions to success, while at the same time ignoring the contributions of those on the front lines.  Many Americans pay little attention to the workings of government until something goes awry.  In the last presidential election, only 62% of registered voters cast a vote.  Shameful!  The statistics grow progressively worse in state and local elections.  So, what must we do? 

Write and call the politicians making choices for us.  Do this for both those with whom we agree and those we don't.  Vote in every election.  Read and view independent news sources.  Watch different channels each night for evening news.  If accessible, watch Canadian channels and BBC America.  Read non-fiction books about the economy, government, business, and finance, in order to lay claim to the "informed citizen" label.  And remember, the middle class isn't the enemy.  As written in Pogo, a comic strip that offered political satire, "We have met the enemy, and he is us."  Enough said!  If interested, access the link below for a short video about the importance of a thriving middle class.
http://bit.ly/lh8NmY

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Economic Gains Fizzle as Unemployment Stagnates

Before writing this post, I offer a disclaimer.  I am not a political pundit, nor do I aspire to be one.  However, I am a committed citizen, who reads prolifically on both sides of an issue.  In preparation for today's topic, I have read several articles by financial gurus and economists, and I have reached some conclusions of my own.  First, it seems the Republican Party has a schizophrenic approach to improving the economy.  They tout an austere method of balancing the budget that includes slashing budgets for education, police and fire protection, child welfare services, and existing health benefits.  In addition, some states, like Florida, have changed the retirement system so that public employees will contribute to their own retirement.  Some Republicans even suggest that we should wipe out the retirement system in its current form, and, instead, establish something akin to a 401 (k) so that workers will choose their investments.  Bad idea!  Even savvy investors were taken by the likes of Bernie Madoff.  Some instruments are so complex, the people who sell them don't truly understand what they're selling.  I know that for a fact, because it happened to me.  At the same time, Republicans insist on maintaining tax cuts for the wealthiest Americans.  Does that make sense to you?

On what basis, then, does the Republican Party have grounds to criticize President Obama for the achingly slow economic recovery?  Patriotic Millionaires for Fiscal Strength are demanding to pay higher taxes.  They confess that they do not use the money saved by lower taxes to add jobs.  They spend it on themselves and their families.  This group does criticize Obams for capitulating to Republicans in 2010 and extending the cuts for two more years.  Hey, guys!  He was making little headway with Republicans firmly entrenched in keeping the cuts forever.  Let's place responsiblity where it lies.  President Bush touted this plan as a sitmulus for the economy.  Guess what?  It didn't work, and it won't for the very reason expressed a few sentences ago.  A line from Network, a movie released in 1976, seems appropriate for this situation.  "I'm mad as hell, and I'm not going to take it any more!"  Does that ring a bell?

I don't have enough data to call jobs creation a zero sum gain, but we will certainly not alleviate unemployment by cutting jobs that already exist.  Florida's esteemd governor turned down money for a high-speed rail, thereby eliminating the possiblity for approximately 20,000 well-paying jobs.  Some of that money went to Michigan, as one reader commented last week, where they celebrated its positive impact.  It seems to me that Republicans are focused not on jobs creation, but on preserving the class divide.  Many of their ideas affect poor people most adversely, and, surpise, the middle class, what's left of it, does not benefit from any of their economic proposals.  Readers owe it to themselves to research how the middle class has shrunk over the last thirty years, and, in turn, how much of the wealth in this country is now concentrated in the top 1% of our population.  Get ready for a sick feeling in the pit of your stomach, if you haven't seen these figures before.!

On one topic, most pundits agree.  It will take years for the economy to rebound unless we stop budget cuts that hurt those who have already been sucker-punched by the econmic meltdown and the resulting mess that followed.  Wake up people!  We can't afford to do nothing.  Write your legislators, members of Congress, and the President, and then make plans to visit some of them personally, so that they can hear your voice.  Balancing the budget is important, but not at the expense of our most vulnerable citizens--children.  They have no voice, yet they will determine the future for all of us.  Isn't it time that we place them as our top priority?

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