Monday, November 14, 2011
Two Shining Lights Amid The Squalor
Tuesday, November 8, 2011
Paterno and Spanier Must Go
I'm an outspoken person who likes to think he can write a little bit. So, it pains me just a little to acknowledge what true professionals can do.
The Harrisburg Patriot-News' front page editorial of November 8 perfectly summed up my opinions on this subject. I've been a fan of Joe Paterno since the eighth grade, when he was named to replace Rip Engle. He put Penn State football on the map, winning two national championships, and probably deserving a couple more. He did it all by avoiding the shady tactics that have brought down many fine programs.
But, it's time for Joe to end his long and illustrious career. Perhaps Joe and Dr. Spanier didn't engage in criminal behavior. But, both have failed the children and young adults placed in their care. Joe did report Sandusky's behavior. But, he didn't follow up and insist that the proper authorities be notified and proper action taken.
They both need to go, and soon. I certainly hope Joe will announce his resignation right away. He needs to go out on his own terms, and not force the University to take action.
Sunday, October 16, 2011
A Facile Right Wing Dismissal of "Occupy Wall Street"
Saturday, September 24, 2011
The Republican Tea Party's Brave New World of Disrespect
Wednesday, September 7, 2011
Criticizing Warren Buffett For Doing His Job
After cutting through the accounting-ese, his main point seems to be that Warren Buffett is a hypocrite because he first criticizes the current federal tax code but then uses it to benefit his company, Berkshire Hathaway. My reaction is “Huh?” I wonder if Mr. Ryan has ever practiced accounting in a business setting, as opposed to serving in the Marine Corp Reserves and lecturing on ethics.
It’s not the least bit hypocritical or unethical for Mr. Buffett to use the federal tax code to the advantage of his company while competing in the marketplace with all of the other companies that are undoubtedly doing the same thing. In fact, if Mr. Buffett were to ignore the benefits of structuring that the government allows companies to take advantage of, he would be violating his fiduciary duty to his company. Because Berkshire Hathaway is a public company with millions of shareholders, he would probably be liable for damages to these very shareholders. As the CEO of a public company, Buffett is not free to ignore tax code provisions that would benefit his company just because he doesn’t agree with them.
Warren Buffett believes that our tax code should be changed so that the rich pay their fair share. Many of us would like to see the laws changed so that companies will be more focused on whether a particular transaction will be profitable over the long term, rather than whether it will be beneficial under the tax code. But, neither Mr. Buffett nor any other CEO of a public company is about to unilaterally disarm and refuse to take advantage of these provisions, while they are still in effect. To accuse him of being hypocritical is just silly.
Wednesday, August 3, 2011
ARE WE OVER-TAXED? THE OBJECTIVE EVIDENCE SAYS NO.
F. Scott Fitzgerald famously said: "The test of a first-rate intelligence is the ability to hold two opposing ideas in mind at the same time and still retain the ability to function." With that in mind, let me make a modest proposal. Yes, we do have to reign in government spending. But, the objective evidence shows that we are not over-taxed.
Most people agree with the first statement. But, the second one is absurd on its face, isn’t it? All we hear these days is how overtaxed we are, and what a drag this is exerting on our economy and its ability to prosper and create jobs. But, recently, a commentator on a national show noted that federal taxes are currently 14% of the nation’s Gross Domestic Product (GDP), which is the lowest since 1948. Who was this commentator, some liberal Democrat, right? Sorry, it was Reagan’s budget chief, David Stockman, a strong fiscal conservative.
It is simply a myth that we are overtaxed. Corporations and rich individuals currently have the smallest percentage of their incomes taxed in generations. Sure, the Tea Party rants about how high their theoretical tax rates are. But, no one with an IQ above room temperature actually pays those rates, because of all the exclusions, deductions and other loopholes available to them. The rich and corporations hire high priced accountants and tax advisors to take full advantage of all the loopholes. We don’t need higher tax rates. If we had a cleaner, simpler tax system, we could have lower marginal tax rates but still raise more revenue.
As Mr. Stockman noted, we have a fairly simple problem – federal taxes are 14% of GDP while federal spending is 24% of GDP. What we have to do is reduce the latter significantly and also increase the former somewhat. If we just increased the tax percentage of GDP to the level it was at in 2000, we would be in fine fiscal shape, if we combined this with some sensible expenditure cuts, such as reducing subsidies to oil and gas companies. If we’re over-taxed now, why was our economy doing so well in 2000, when taxes on upper incomes were much higher?
Another wise commentator hit the nail on the head the other day. David Gergen has advised several Presidents, including Ronald Reagan. He says our biggest problem is that too many politicians today lack imagination and backbone. He says we need to think back to Pres. Reagan, who raised taxes several times. He did it in cases where he was able to cut a deal that benefited his constituents and the country as a whole. He forged several deals with politicians like Tip O’Neill, surely his equal on the other side as an ideological liberal.
Then Reagan went straight to the American people and persuaded them that he was right. He convinced them to tell their political leaders to go along. Gergen says a clever and resourceful leader will succeed in this way. Sure, there is a chance he or she might fail in the attempt. But, isn’t that what leadership is all about. Too many of today’s politicians spend their time looking back to make sure the crowd is following, rather than boldly leading in the right direction. They blindly sign pledges put forward by right wing saint Grover Norquist. Once they’ve signed, they can never go back, no matter how sensible the plan, because they made a promise to Saint Grover.
I believe Ronald Reagan was far too savvy a politician to sign such a foolish pledge. Indulge me as I channel Pres. Reagan. Here’s how I think he would explain a grand bargain to get our country back on a proper fiscal footing:
“I hate raising federal revenue as much as anybody, and more than most. But, I’ve cut a deal with Congress that cuts $4.00 of federal spending for every $1.00 in additional federal revenue. We’ll have a streamlined, simplified tax code that frees businesses to make decisions based on how profitable they will be, rather than on which tax loophole they will qualify for. This is simply too good a deal to pass up. If you really care about your country’s future, you will join me in supporting this agreement.”
Will we ever find politicians with the imagination and guts to break out of the current left-right gridlock? For my future, and especially those of my children and grandchildren, I sincerely hope so.
Wednesday, June 29, 2011
Give Me Chastity, But Not Yet!!
Apparently, they'd like a balanced budget sometime in the misty distant future, but certainly not today or tomorrow. How can anyone take their position seriously. Are you listening, Tea Party?