Saving Federal Dollars

Some congressmen believe the government should not spend any money, shouldn’t borrow, shouldn’t raise the debt ceiling, and shouldn’t raise taxes. They are from “red” states or districts. And they don’t want to vote for hurricane relief for the northeastern states.

Others believe government should do what is necessary for the welfare of the people. When people are in trouble, good people help. They are from “blue” states or districts. And they voted for hurricane relief for the South and Midwest.

It’s not just Tea Party ideology. Whose ox is gored matters to them. If the hurricane hits my district, well, they’re good people, so we gotta help. But if it’s somebody else’s district, especially a “blue” district, we certainly do not want to help “those” people. So we have a combination of politics and ideology.

OK then, here’s a proposal.

Global warming demands a BTU tax

Last night at the Egg I heard Bill McKibben talk about climate change. I was very proud of Joe and Alan and WAMC for organizing it and proud of the WAMC audience for coming out in droves to hear him. The message he brings is not a happy one but it is a message we have to hear and understand; more, it’s a message we have to act on.

Why We Need a Carbon Tax

I hope you heard Steven Leibo’s commentary last week. If not, you can find it by searching for Leibo’s World Watch. He focused on the need for a carbon tax. I’d like to follow up.

To deal with the enormous problems that global warming will pose for all of us, problems that will be catastrophic for many, we have to be willing to make carbon based fuels more expensive, not bellyache about the price of gas, but tax it so it gets higher. Now before you turn off the radio or try to throw tomatoes at me, we would also need to address the inequities that would cause, by the way we handle the income tax. And that’s part of Steve’s point –with taxes very much at the center of the political debate, this is a good time to address a carbon tax.

Tax Rates and Business Investment

You and I have been hearing lots of rhetoric about the risk to small business if tax rates go up on people earning a quarter million or more. The expressed concern is that small businessmen won’t be able to invest and create more jobs. Of course in this world of sound bites it’s hard to get everything clear and correct. But this one is largely misleading. Tax rates and business investment in job producing enterprise are much less closely related than much of the commentary would make it appear.

Supreme Court Plays Guardian Counsel in the Health Care Argument

Let’s understand what that argument about the health insurance mandate was about. Everybody agreed that a single payer system would have been constitutionally OK. It would have been based on the taxing power. However toxic taxes are to the public, legally they are not particularly toxic. Everyone admits the taxing power is broad.

Capital Gains Tax Rates Hollow the Economy

Let’s look at tax law. Remember Romney’s tax returns. His average tax was approximately 15%. That’s the rate for capital gains. But for anything else earned above roughly $400,000 the rate is 35%. I’d love to reach that rate, to earn enough to pay 35% on some little fraction of my income. Alas, I don’t.