Choosing Mediocrity and Greed
Minnesota as a Microcosm of the Nation
Before Governor Dayton capitulated to demands the state continue to operate on a budget that excoriates the backs of lower income Minnesotans’ I wrote a commentary on the reasonableness of his proposals. They were based broadly on two assumptions most Americans have subscribed to forever.
First, there are functions government can provide better and more efficiently than the private sector and should provide through general taxation. Secondly, those who benefit the most from living in America should contribute more than those who benefit the least.
It turns out, because of the growth by topsy of our system of taxation; both the state and federal tax systems are regressive with the exception of the income tax. Income tax is the only tax opponents of increasing taxes point at. They never say income in front of tax.
Minnesotans in the top 1% of incomes pays less as a per cent of their income in state and local taxes than the bottom 99% of us.
Opponents of increasing taxes on the very highest income brackets point out taxpayers in the top 10% pay 56% of income tax. This is true according to the Minnesota Revenue Department’s Tax increment study (MDTI) of 2011. In the same paragraph they note the same taxpayers bore 38.5% of the total tax burden having 42% of a total income. The bottom 10% paid no income tax but they paid 2.4% of the total tax burden but received less than 0.9% of the total income.
Tax rates by deciles from the MDTI shows the rate of all taxes on Minnesotans (state and local) is the lowest for the highest incomes at 9.7%.
How the Democrats and Dayton could not get this into the media is beyond me. The scoring of his proposals after watering down his original proposals showed that 90% of his increase would be paid by the top 5% and fully 80% by the top 1% of incomes.
This would hardly be confiscatory on those poor million/billionaires. The MDTI shows this would be an increase of 1.77% on their total tax rate. Since state and property tax is deductible on federal taxes this would lower the effect on their state tax rate to a 1.22% increase. The federal government would pay for about 30% of the increase coming to Minnesota.
Instead of solving the budget problems the legislature pulled a Pawlenty. A name that should become an adjective describing kicking the fiscal can down the road by delaying payments, borrowing from future revenue, and defunding social safety nets for the politically and financially impoverished.
This is what the legislature did. Politicians will surely write in and try to confuse you about this. I invite you to explore the Minnesota Revenue web site yourself.
Minnesota is a microcosm of the nation and its fiscal madness. Both are saying, in effect, we cannot afford to join all other advanced nations in providing the same safety nets and services other nations do. They have convinced enough people that undeserving, slothful, and devious people are “milking the government cow from 300 million teats”. They still believe the fabrication of the welfare queen driving up in her Cadillac to get her welfare check that was disproved thirty years ago.
I have not found an IRS document like the Tax Incidence Studies. I did find a publication on the top 400 incomes reported for 2008. The top 400 reported had an average income of 270 million dollars. Approximately one third had an average federal income tax rate of less than 15%. Only 15% of such returns had an average between 30 and 35%. Less than 4 out of 5 returns for the fabulous 400 reported wage or salary income. They had income only from rent, dividends, interest, capital gains, and the like. All these are subject to preferential tax treatments. It also indicates these 88 of these folks do not contribute anything to social security.
The average tax on $270 was 49 million for an average tax rate of 18.11%. When you hear politicians say you can’t overtax “job creators” and throw 35% figure at you it might be interesting to ask them if they know the average rate billionaires pay in income tax. Their response will be the rich invest their money and create jobs. The rich invest their money in relatively mature and large business and industry. That is impossible to do and keep your investment in the U.S. Both General Motors and Ford are making most of the cars in other countries. Chrysler is owned by an Italian company. IBM, General Electric, you name a titan of Wall Street and they are global. Much of the uber rich create jobs in other countries.
F. Scott Fitzgerald said, “The rich are different from you and me.” I would rather dwell on a quote from Warren Buffet one of the richest men in the country. “There is something wrong with a system where I pay less of my income in taxes than my secretary”.
In a kinder and gentler time conservatives like Theodore Roosevelt knew it was not good to charge those riding in first class on the ship of state the same as those in steerage. Ronald Reagan recognized the need for a progressive tax and after his 1982 tax cut raised taxes 11 times. Reagan’s tax increases in 1983 were called the largest peace time tax increases in American history.
In a kinder and gentler time the public made a decision to protect our disadvantaged, handicapped, and disabled. We decided to honor our elderly, protect them from poverty, and provide dignity for them in their dotage. We are not broke. We can afford it. We choose not to. We choose to go back to 30% poverty for those over 65. We choose to go back to the poor farms. We choose Hoovervilles. We choose Grandma and Grandpa living with their children for the last decades of their lives.
I don’t remember the Hoovervilles but I do all the rest and I don’t choose it.
Saturday, September 10, 2011
Friday, September 9, 2011
Surprise-Surprise
Pew Research published a new poll about the public's view of problems facing the nation September 8th. The heading on their e-mail alert stated now more people view jobs and the economy more important than the nation's debt.
In the article there is a graph that shows the levels of concern for jobs, the budget deficit, inflation, financial and housing markets since March 2010. Jobs has always, since March 2010, been the area of most concern. Only in March, 2011 was inflation within 6% of jobs and the budget deficit has never been less than 10% below jobs in the publics concern.
Not only were the Republicans able to ignore the public's concerns. They were able to distract (along with Obama and the Congressional Democrats) the majority of the media with their constant message of deficits and the extortion of the debt limit raise.
Until Obama learns how to avoid falling into letting Republicans control the subject we will all go through this over and over again.
In the article there is a graph that shows the levels of concern for jobs, the budget deficit, inflation, financial and housing markets since March 2010. Jobs has always, since March 2010, been the area of most concern. Only in March, 2011 was inflation within 6% of jobs and the budget deficit has never been less than 10% below jobs in the publics concern.
Not only were the Republicans able to ignore the public's concerns. They were able to distract (along with Obama and the Congressional Democrats) the majority of the media with their constant message of deficits and the extortion of the debt limit raise.
Until Obama learns how to avoid falling into letting Republicans control the subject we will all go through this over and over again.
Medicare Did It Right, Again
For those who believe Government cannot do anything right I offer this example of a Government program that has done quite a few things right. The agency is the Center for Medicare and Medicaid Services (CMS). Boy that will explode a few right wing heads.
Six years ago the FDA approved, in an expedited process, stent devices similar to the stents used to open heart arteries that are plugged up with cholesterol plaques for use in preventing strokes and more specifically recurrent strokes. It seems intuitive that if it helps in heart disease and the problems in stroke are very similar it should help in stroke as well. It just isn’t that simple.
CMS knew it was not that simple. Since most strokes caused by cholesterol plaques occur in older patients Medicare was likely to be responsible for much of the cost of the new therapy. Standard medical therapy consists of strict control of blood pressure, strict control of diabetes, control of cholesterol/lipid levels, drugs to reduce the ability of blood to clot, cessation of smoking and life style changes.
CMS refused to pay for the stent treatment unless it was done for a controlled study to prove the stents would be effective. So a study was devised where matched patient populations were all given the intensive medical management and half were also given the stent after appropriate disclosure that it was a new procedure study. Adding the approved stent (Wingspan stent) would add $88,000 to the $24,000 cost of the intensive medical management.
The study found the stent produced no long term benefits and was statistically similar to the medically treated group after the immediate post operative period. The stent, however, was associated with a large increase in death and recurrent stroke in the immediate post operative period.
It is possible that further studies will find a niche for the stent in a rigorously selected group of patients. Stents for atherosclerotic heart disease went through a period of reappraisal. It is still the object of some skepticism and will undoubtedly continue to be studied and its indications for use will be refined.
Still, the indiscriminate use and the additional $88,000 cost will not be a factor in Medicare inflation. CMS did the taxpayers a great favor. Not only in protecting the Medicare funds from more rapid depletion but in influencing the private insurance industries costs. When Medicare makes this kind of move the private insurers almost always follow quickly. Medicare gives them cover for excluding this kind of unproven therapy from coverage.
Think of the vast number procedures and treatments that are no more than intuitively performed in this country that should be examined critically. That is the purpose of the section of the Affordable Care Act concerned with comparative effectiveness. You know, the part that Republicans demagogue as the rationing of care.
Ref. Stenting versus Aggressive Medical Therapy for Intracranial Arterial Stenosis: http://www.nejm.org/doi/full/10.1056/NEJMoal105335
Brain Stents do more Harm than Good, Rob Stein
http://www.washingtonpost.com/national/health-science/brain-stents-for-stroke-patients-do-more-harm-than-good-study-shows/2011/09/02/glOAAtRWS9J
For those who believe Government cannot do anything right I offer this example of a Government program that has done quite a few things right. The agency is the Center for Medicare and Medicaid Services (CMS). Boy that will explode a few right wing heads.
Six years ago the FDA approved, in an expedited process, stent devices similar to the stents used to open heart arteries that are plugged up with cholesterol plaques for use in preventing strokes and more specifically recurrent strokes. It seems intuitive that if it helps in heart disease and the problems in stroke are very similar it should help in stroke as well. It just isn’t that simple.
CMS knew it was not that simple. Since most strokes caused by cholesterol plaques occur in older patients Medicare was likely to be responsible for much of the cost of the new therapy. Standard medical therapy consists of strict control of blood pressure, strict control of diabetes, control of cholesterol/lipid levels, drugs to reduce the ability of blood to clot, cessation of smoking and life style changes.
CMS refused to pay for the stent treatment unless it was done for a controlled study to prove the stents would be effective. So a study was devised where matched patient populations were all given the intensive medical management and half were also given the stent after appropriate disclosure that it was a new procedure study. Adding the approved stent (Wingspan stent) would add $88,000 to the $24,000 cost of the intensive medical management.
The study found the stent produced no long term benefits and was statistically similar to the medically treated group after the immediate post operative period. The stent, however, was associated with a large increase in death and recurrent stroke in the immediate post operative period.
It is possible that further studies will find a niche for the stent in a rigorously selected group of patients. Stents for atherosclerotic heart disease went through a period of reappraisal. It is still the object of some skepticism and will undoubtedly continue to be studied and its indications for use will be refined.
Still, the indiscriminate use and the additional $88,000 cost will not be a factor in Medicare inflation. CMS did the taxpayers a great favor. Not only in protecting the Medicare funds from more rapid depletion but in influencing the private insurance industries costs. When Medicare makes this kind of move the private insurers almost always follow quickly. Medicare gives them cover for excluding this kind of unproven therapy from coverage.
Think of the vast number procedures and treatments that are no more than intuitively performed in this country that should be examined critically. That is the purpose of the section of the Affordable Care Act concerned with comparative effectiveness. You know, the part that Republicans demagogue as the rationing of care.
Ref. Stenting versus Aggressive Medical Therapy for Intracranial Arterial Stenosis: http://www.nejm.org/doi/full/10.1056/NEJMoal105335
Brain Stents do more Harm than Good, Rob Stein
http://www.washingtonpost.com/national/health-science/brain-stents-for-stroke-patients-do-more-harm-than-good-study-shows/2011/09/02/glOAAtRWS9J
Sunday, September 4, 2011
Government should stop licensing marriage
Government - Federal,State and Local should get out of the
Marriage Business
My wife and I recently had a conversation about the coming constitutional amendment vote here in Minnesota to declare marriage as the union of only a male and a female. This is being proposed after the Republican dominated House and Senate of the state passed a bill that cannot, by our constitution, be vetoed by the Governor. The arguments for this include the threat such unions pose to traditional marriages and the admonitions in the bible against such unions. Homophobia is alive and well in Minnesota.
The bible argument is a bit strange. There are, to my understanding, biblical admonitions against bestiality. Definite proscriptions against same sex unions, I believe, are based on loose interpretations of allegory from the old Testament and St Paul in the New. Many interpretations of any part of the bible have confounded scholars (especially skeptics) for centuries and, I suppose, still do. Even if you are so faith endowed you believe in the inerrancy of the bible you should agree there are many ways to interpret much of the bible.
My biggest problem, however, with the biblical argument is there are many people, even here in Minnesota, for which the bible is not their religious touchstone. Besides devotees of Dawkins, Harris, and Sagan Minnesota has the largest population of Somalis in the country and the second largest (to California) of Mung for whom the bible is of little import. There is a Buddhist Temple in Minneapolis. The Wiccans are a secretive lot and I’m not sure of their numbers. The reader can name many more religions I’m sure.
Man and woman unions had the added salutary effect, as far as the churches and synagogues were concerned, of producing offspring to fill up the pews and church coffers. Kings, satraps, and head men every where were given more fodder for their armies as well. Besides it is good for control of the masses if they accept control in the intimate matter of long term relationships they will accept control in many other areas as well.
There have been threats to my marriage but never have I considered the cohabitation of members of the same sex a threat. We had a gay couple live directly across the street from us in St Louis and they were wonderful neighbors. Quiet, industrious, and kept their property in great repair and the landscaping was outstanding. They were friendly, polite, thoughtful and circumspect. I have gay relatives who have not come out and so they are circumspect about their preferences. My wife had/has many gay friends because of the fine arts degree she returned to college for. None of these associations ever caused the problems between us that raising four kids did.
This is not just a rant without a proposed solution. I look at marriage as a religious construct. It was probably proposed centuries ago by the same kind of priests Jesus threw out of the temple in the oft repeated story in the bible. The motive was not to limit the number of wives and maybe the untold part of the story was it was not even to limit who married who. Remember Solomon and his finagling and multiple wives. David and even Moses had multiple wives. A practice we now abhor and have done away with. We can do the same for people who through no fault of their own have a same sex orientation.
The major biblical admonition most often quoted against same sex union is by St. Paul an author that can, without stretching the imagination, be considered probably schizophrenic. The bolt of lightning that knocked him off his horse had the effect of causing him to hear voices longer than a simple concussion should. In any case the churches seemed to have latched onto this rite in all cultures and most religions. There were other benefits besides the initial monetary one. The money coming into the church just for the ceremony was probably enough.
Man/woman marriage also had the salutary effect of producing offspring that populated the pews of the churches and the armies of the kings.
When civil government decided to get into the marriage business is difficult to determine. It varies from country to country but started somewhere in the middle ages. Certainly it started much later than the religious certification of marriage.
Libertarians do not believe the state/government has any business in the marriage of a man and a woman. A libertarian view on same sex marriage is more difficult and I suspect more varied. Be that as it may, my view is the state has no business in the marriage controversy at all. This may be the only situation where I am in at least partial agreement with Libertarians.
The state/government based its involvement on controlling sexually transmitted diseases, eugenics, to protect the citizen from illegal/improper marriage, and to keep accurate records. It was also used to prevent whites from marrying blacks, mulattos, Orientals, Indians and others in many states in the United States. The arguments now are effectively reduced to the biblical admonitions and the accurate records for issuing a license at all.
My opinion on this divisive and contrived political controversy is all government entities should stop issuing licenses to anyone. Religious sects should be free to marry whom ever they feel comfortably fits within their religious convictions. Gays, lesbians, and transgenders do fit into some orthodox religions it seems. If there are none local to all these groups they can form a congregation of their own if they wish.
The state can require couples to come forward after exchanging vows and register civilly as is done in some European countries. The couples signatures and social security numbers should identify the individuals for purposes of the state and federal governments. Surely this information can be transmitted securely to the IRS, Social Security, state and all other agencies that would require this to afford them the legal status of marriage without calling it anything except registering. The couple can call it marriage, bonding, union, partnering or anything else they want to.
This should protect divorce lawyers that will then be called to divvy up assets if the couples decide to part and decide if one should contribute the others cost of living. It should allow the couples to visit each other in the intensive care unit and make decisions about resuscitation. It should allow the remaining partner to collect the deceased partner’s estate, pension, and social security if appropriate. It should allow the couple to file joint tax returns no matter the construct of the union. There is nothing in the word marriage that is magical.
Those who want a big $25,000 church wedding and an even more expensive divorce can continue to do just that.
I want no part of peeking into anyone’s private life and I don’t think the government representing me should either.
Marriage Business
My wife and I recently had a conversation about the coming constitutional amendment vote here in Minnesota to declare marriage as the union of only a male and a female. This is being proposed after the Republican dominated House and Senate of the state passed a bill that cannot, by our constitution, be vetoed by the Governor. The arguments for this include the threat such unions pose to traditional marriages and the admonitions in the bible against such unions. Homophobia is alive and well in Minnesota.
The bible argument is a bit strange. There are, to my understanding, biblical admonitions against bestiality. Definite proscriptions against same sex unions, I believe, are based on loose interpretations of allegory from the old Testament and St Paul in the New. Many interpretations of any part of the bible have confounded scholars (especially skeptics) for centuries and, I suppose, still do. Even if you are so faith endowed you believe in the inerrancy of the bible you should agree there are many ways to interpret much of the bible.
My biggest problem, however, with the biblical argument is there are many people, even here in Minnesota, for which the bible is not their religious touchstone. Besides devotees of Dawkins, Harris, and Sagan Minnesota has the largest population of Somalis in the country and the second largest (to California) of Mung for whom the bible is of little import. There is a Buddhist Temple in Minneapolis. The Wiccans are a secretive lot and I’m not sure of their numbers. The reader can name many more religions I’m sure.
Man and woman unions had the added salutary effect, as far as the churches and synagogues were concerned, of producing offspring to fill up the pews and church coffers. Kings, satraps, and head men every where were given more fodder for their armies as well. Besides it is good for control of the masses if they accept control in the intimate matter of long term relationships they will accept control in many other areas as well.
There have been threats to my marriage but never have I considered the cohabitation of members of the same sex a threat. We had a gay couple live directly across the street from us in St Louis and they were wonderful neighbors. Quiet, industrious, and kept their property in great repair and the landscaping was outstanding. They were friendly, polite, thoughtful and circumspect. I have gay relatives who have not come out and so they are circumspect about their preferences. My wife had/has many gay friends because of the fine arts degree she returned to college for. None of these associations ever caused the problems between us that raising four kids did.
This is not just a rant without a proposed solution. I look at marriage as a religious construct. It was probably proposed centuries ago by the same kind of priests Jesus threw out of the temple in the oft repeated story in the bible. The motive was not to limit the number of wives and maybe the untold part of the story was it was not even to limit who married who. Remember Solomon and his finagling and multiple wives. David and even Moses had multiple wives. A practice we now abhor and have done away with. We can do the same for people who through no fault of their own have a same sex orientation.
The major biblical admonition most often quoted against same sex union is by St. Paul an author that can, without stretching the imagination, be considered probably schizophrenic. The bolt of lightning that knocked him off his horse had the effect of causing him to hear voices longer than a simple concussion should. In any case the churches seemed to have latched onto this rite in all cultures and most religions. There were other benefits besides the initial monetary one. The money coming into the church just for the ceremony was probably enough.
Man/woman marriage also had the salutary effect of producing offspring that populated the pews of the churches and the armies of the kings.
When civil government decided to get into the marriage business is difficult to determine. It varies from country to country but started somewhere in the middle ages. Certainly it started much later than the religious certification of marriage.
Libertarians do not believe the state/government has any business in the marriage of a man and a woman. A libertarian view on same sex marriage is more difficult and I suspect more varied. Be that as it may, my view is the state has no business in the marriage controversy at all. This may be the only situation where I am in at least partial agreement with Libertarians.
The state/government based its involvement on controlling sexually transmitted diseases, eugenics, to protect the citizen from illegal/improper marriage, and to keep accurate records. It was also used to prevent whites from marrying blacks, mulattos, Orientals, Indians and others in many states in the United States. The arguments now are effectively reduced to the biblical admonitions and the accurate records for issuing a license at all.
My opinion on this divisive and contrived political controversy is all government entities should stop issuing licenses to anyone. Religious sects should be free to marry whom ever they feel comfortably fits within their religious convictions. Gays, lesbians, and transgenders do fit into some orthodox religions it seems. If there are none local to all these groups they can form a congregation of their own if they wish.
The state can require couples to come forward after exchanging vows and register civilly as is done in some European countries. The couples signatures and social security numbers should identify the individuals for purposes of the state and federal governments. Surely this information can be transmitted securely to the IRS, Social Security, state and all other agencies that would require this to afford them the legal status of marriage without calling it anything except registering. The couple can call it marriage, bonding, union, partnering or anything else they want to.
This should protect divorce lawyers that will then be called to divvy up assets if the couples decide to part and decide if one should contribute the others cost of living. It should allow the couples to visit each other in the intensive care unit and make decisions about resuscitation. It should allow the remaining partner to collect the deceased partner’s estate, pension, and social security if appropriate. It should allow the couple to file joint tax returns no matter the construct of the union. There is nothing in the word marriage that is magical.
Those who want a big $25,000 church wedding and an even more expensive divorce can continue to do just that.
I want no part of peeking into anyone’s private life and I don’t think the government representing me should either.
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