Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Monday, September 19, 2011

The Idiot Right's New Poster Boy

The Idiot Right has a new poster boy. He’s Louisiana Congressman John Fleming, and he is a piece of work. He was interviewed by MSNBC’s Chris Jansing today. At first there was nothing new: the same old talking points bullshit (“if you go after the high income earners, you go after the job creators” and similar pseudo-economic slop). But Jansing is a good interviewer, and Fleming was, shall we say, not ready for that.

Here’s the exchange, starting at about the 2:26 mark of the link. I've taken the liberty of supplying the Congressman's inner monologue in brackets:
Jansing: Well, with all due respect, Congressman, the Wall Street Journal estimated that your businesses, which I believe are Subway sandwich shops and UPS stores—very successful—brought you last year six million dollars.

Fleming: Yeah, that’s before you pay five hundred employees, you pay rent, you pay equipment and food. The actual net income of that was only a mere fraction of that amount.
If he’d shut up right then, he might have escaped without serious damage. But he’s a politician, and apparently a remarkably dim-witted one even in comparison to the rest of the cretinous yahoos who populate the House. Here’s the follow-up [OMG—my staff didn't warn me she could ask me something else!].
Jansing: So, you’re saying that if you have to pay more in taxes, you would get rid of some of those employees? These are not as successful businesses as what we want to indicate?

Fleming (interrupting): [Shit, I’m trapped. I can’t tell the truth or my hypocrisy is on display. But if I don’t strut a little, she just got away with calling me unsuccessful. Quick! Change the subject!] I would say that since my net income, and again, that’s the individual rate that I told you about, the amount that I have to re-invest in my business and feed my family is more like 600,000 of that 6.3 million. And so, by the time I feed my family, I have, you know, maybe 400,000 left over to invest in new locations, upgrade my locations, buy more equipment, all of that.

Jansing: You do understand, Congressman, that the average person out there, who’s making forty, fifty, sixty thousand dollars a year, when they hear that you only have four hundred thousand dollars left over, it’s not exactly a sympathetic position. You understand that?

Fleming: Well, again, class warfare has never created a job. [Ah, relief, back on Talking Points!] And that’s people that will not get jobs. This is all about creating jobs, Chris, this is not about attacking people who make certain incomes. You know, in this country, most people feel that being successful in their businesses is a virtue, not a vice. And once we begin to identify it as a vice, this country is going down.
Before you ask, Gentle Reader, yes, he really is that stupid. Yes, he really is that arrogant. And yes, he really does think his shit don’t stink.

As I write this piece, I realize that tearing this douchebag’s argument to shreds is more difficult than I’d originally thought… because he has so many mind-bendingly inane things to say it’s difficult to decide where to start.

OK. So we’ll take what he says and doesn’t say chronologically. So, we start with where the majority of that $6.3 million went. He nets $600K. Therefore, he spends about $5.7 million on business expenses ranging from rent to equipment to personnel. And he’s got 500 employees. Anyone notice a problem? The federal minimum wage is $7.25 an hour. Multiply that times a 40-hour work week, times 52 weeks, times 500 employees, and you get $7.54 million, which, where I come from, takes up a sizeable chunk of that $6.3 million in gross income. And that’s with everyone working at minimum wage, with no benefits. It doesn’t include rent, utilities, equipment, or inventory.

So one of the following must be true: A). a huge percentage of those 500 employees are not merely making crappy wages, they’re also part-time, B). he’s lying about the number of employees, or C). he’s lying about his gross income. I’m going to give him the benefit of the doubt, and assume it’s choice “A.” According to Wikipedia (yeah, I know, but the internal link doesn’t work), he owns “owns 33 Subway sandwich shops in northern Louisiana and owns Fleming Expansions, LLC, a regional developer for The UPS Store, which supports stores in Louisiana, Mississippi, and Texas.”

So that’s at least 34 locations. Let’s say rent and utilities are a steal… say $2000 a month per venue. Let’s see… there’s $816K. The food for those Subway stores… a markup of what? Well, standard appears to be about 300%, but let’s give him a little lower expenses to maximize what he pays his workers. How about 400%? That would mean an expenditure of $1.26 million. Insurance and other overhead… again, let’s be conservative. $5000 per venue? Another $170K. So that leaves us a whisper over $4 million to be divided among those 500 employees: wages, benefits, payroll tax, everything. In other words, $8000 per employee per year. This, ladies and gentlemen is what the fat-cat “job creators” have to offer.

Don’t get me wrong. I understand that a business like Subway is likely to have a lot of part-time, short-term workers. But these aren’t the kind of jobs the country needs to recover its economic footing. And if Rep. Fleming thinks otherwise, he’s even stupider than I thought.

OK, next point. Now it’s time to notice that he never answered the question about whether he’d lay people off if his taxes went up. Of course, he wouldn’t: he needs those drones to work for subsistence wages to finance his lifestyle. He hires people because it’s more profitable to do so than to lose business because customers, miffed at the lack of service, go elsewhere. He can, poor lamb, try to figure out a way to survive on a mere half million or so.

Oh, and since small businesses pay taxes on their profits, not their gross sales, Mr. Fleming wouldn’t be affected by the proposed tax on those making over $1 million a year. That’s because he’s destitute.

Moving on. He nets $600K, but after “feeding [his] family,” he has only about $400K to re-invest into his business. His official website says his children are grown, so his family consists of himself and his wife. My wife and I can eat pretty well on considerably less than $10,000 a year. He, on the other hand, needs $200,000. Perhaps he is married to an allosaurus?

OK, OK, I get it. He’s talking about all the expenses of running a household, meaning that he’s scraping by on about twice what my wife and I make between us (I’m a Full Professor at a university; she’s the Director of Financial Aid at a community college). Well, of course, that doesn’t count all his other sources of income… like the $174K (plus an extraordinary benefit package) he makes as a Congressman, for example. Or whatever he makes in his medical clinic. Or…

But the impoverished Mr. Fleming says he’s left with a mere $400K to re-invest on things like “upgrading [his] locations” and “equipment.” Uh, Congressman… how does that create jobs? Really. How? Still, he clearly believes that having that kind of money to invest is his sovereign right. Newsflash: it isn’t. Not to mention the fact that it’s very clear that he does little if anything to actually earn any of that money. Being a Congressman is—or damned well ought to be—a full-time job. He’s almost certainly making over $1000 for every hour of actual work at his private business: money he can make because he has assets to begin with, not because he’s doing anything noble now.

Faced with a perfectly reasonable point that the average person isn’t going to weep for him, Fleming reverts to inane platitudes about “class warfare.” As I’m not the first to note, they only call it class warfare when the rest of us fight back. And “virtue” is an ironic word coming from an acquisitive ass like Fleming. There is nothing either virtuous or vicious about wealth. There is something virtuous about labor, but Fleming does little of that. Nor is asking the wealthy, the greatest beneficiaries of what the nation has to offer, to contribute a little to the common weal—to pay as high a percentage of your income in taxes as a cop or a schoolteacher do—an “attack.” But, sir, if you and your gluttonous and avaricious co-conspirators continue to adopt the smug, supercilious, and hubristic attitude you seem unable to suppress… well, the attack will come soon enough.

Monday, August 22, 2011

About that 46%...

One of the points I was trying to make in my last piece is that we have two different kinds of income-related taxes in this country: the one we call “income tax” and the one we call “payroll tax.” The former is putatively progressive, although it is demonstrably not necessarily so. The latter is unquestionably regressive, since it applies only to the first $106,800 of earned income per wage-earner: not only do people making a million dollars a year pay a far lower rate than ordinary folks do, but the kinds of income that tend to be reserved, at least at significant levels, for the wealthiest among us (capital gains, dividends, interest, rent) aren’t taxed at all.

But just as those on the left too frequently conflate Exxon’s or GE’s failure to pay federal income tax with not paying taxes at all, those on the right—Rick Perry being the latest, particularly stupid and/or disingenuous, example of this phenomenon—holler about the 46% of Americans who don’t pay income tax. It’s true, of course, and also a completely conscious fabrication: a family of four making $26,000 in 2010 would indeed pay no income tax. ($26K = 4 exemptions @ $3650, plus the standard deduction of $11,400.) That family would pay $1092 in payroll taxes, however, even at the reduced rate used in 2011. This figure doesn’t count the additional $1612 paid by their employers, which, as Syracuse University professor Len Burman points out in an article on the website of that leftist rag, Forbes, “economists believe is ultimately paid by the employee in the form of lower wages.”

But the fact that virtually any GOP politician you can name is completely and utterly mendacious on this point isn’t news. What I’d like to discuss instead is the underlying truth that goes too often unspoken: the problem with the country isn’t that nearly half the people don’t pay income tax, it’s that nearly half the people don’t make enough money to be taxed. I’m not the first to talk about this, but certainly there are far too few politicians or commentators, even on the left, who make this observation.

Here’s the reality: study after study shows that economic disparity in this country is bad and getting worse. Just a few examples: a study by sociologist G. William Domhoff of the University of California at Santa Cruz shows that nearly 43% of the financial wealth (net worth minus home value) in the country is controlled by just 1% of the population. The top quintile controls 91.3%, the bottom two quintiles combined, 40% of the population, own only 0.3% of the wealth. These figures are very much tied to race, as well; whereas whites (in 2006) had household incomes about 67% higher than African-Americans and 43% higher than Hispanics, their net worth exceeded African-Americans’ by a ratio of over 15.4:1 and Hispanics’ by more than that. But if you take homes out of the picture, the ratios become 87:1 and 109:1, respectively.

Still, while race clearly plays a part in this scenario, the division between rich and poor—or, more accurately, between the ultra-rich and everybody else—is what really matters. The richer you are, the less of your net worth is tied up in your home: an article by Dave Gilson and Carolyn Perot in Mother Jones this spring points out that “The 2007 data (the most current) doesn't reflect the impact of the housing market crash. In 2007, the bottom 60% of Americans had 65% of their net worth tied up in their homes. The top 1%, in contrast, had just 10%. The housing crisis has no doubt further swelled the share of total net worth held by the superrich.”

Particularly interesting in the Mother Jones piece is a chart based on the work of Jacob Hacker of Yale University and Paul Pierson of UC-Berkeley. These two political scientists charted what actually occurred in the generation from 1979-2005 compared with what would have been projected based on the data of the previous few decades. You will not be surprised, Gentle Reader, to learn that the richest 1% fared quite well over that period, raking in some $673 billion (nearly $600,000 per family) per year more than would have been predicted. The hardest hit in percentage terms, of course, were those at the bottom, but the biggest losses in dollar terms came from those at the very center: families in the third quintile made over $10,000 a year less than would have been predicted.

Finally, let’s look at how America compares to other countries in terms of wealth equity. Hint: it ain’t pretty. There’s some complicated mathematics that goes into figuring the Gini index—I won’t attempt to explain it here, but basically there are two things you should know: it’s an objective number rather than an analysis of any kind, and the lower the number, the more equitably a nation’s wealth is distributed among the population. According to the CIA, the most recent number for Sweden is 23; Hungary, 24.7; Slovakia, 26; Canada, 32.1; the United Kingdom, 34. The United States: 45 in 2007, up from 40.8 a decade earlier. True, that’s not as bad as Swaziland (50.4), Honduras (53.8), or Namibia (70.7), but are those really the economies we want to be comparing ourselves to? We’re behind the likes of Albania (26.7), Bangladesh (33.2), and Yemen (37.7). The European Union as a whole: 30.4. China: 41.5. India: 36.8.

Another metric would be the ratio of the average income of the top 10% to the average income of the bottom 10%. Using this statistic, Japan has the most equitable economy at a ratio of 4.5:1; Bolivia is the worst of those surveyed, at nearly 94:1. The United States, at 15.9:1, is behind every other first-world country, not to mention the likes of Bosnia and Herzogovenia, Tanzania, and Liberia.

Of course, having a high degree of income disparity is neither the full measure of an economy nor an inherently bad thing: I’d rather have our economy that Greece’s or Ethiopia’s, even though they both beat us in both the metrics listed above. That said, however, Domhoff’s statistics are revealing:
Americans from all walks of life were also united in their vision of what the "ideal" wealth distribution would be…. They said that the ideal wealth distribution would be one in which the top 20% owned between 30 and 40 percent of the privately held wealth, which is a far cry from the 85 percent that the top 20% actually own. They also said that the bottom 40%—that's 120 million Americans—should have between 25% and 30%, not the mere 8% to 10% they thought this group had, and far above the 0.3% they actually had. In fact, there's no country in the world that has a wealth distribution close to what Americans think is ideal when it comes to fairness.
There’s an outstanding graph that originally accompanied an excellent article by James Fallows in The Atlantic last fall about a study similar to Domhoff’s, this one by Michael Norton of Harvard Business School and Daniel Ariely of Duke. The chart, which I put on the Curmudgeon Central Facebook page last September, shows that whereas there are perhaps predictable variances between people who voted for Bush as opposed to Kerry, or who make more than $100K a year as opposed to less than $50K, literally every demographic both underestimated the existing disparity and believed that there should be more equity. Those making over $100,000 a year, for example, predictably showed the highest “ideal” percentage of wealth to be controlled by the top 20%. But their ideal would be 40%. They thought the reality was 62%. The actual reality: 84%.

So there seems to be some interest in a more balanced economy in which the gaps between the top and the bottom are less pronounced. This is true in theory, anyway—whether there’s actually as much egalitarian spirit as the subjects surveyed in either of these two studies seem to pretend is another matter. But the studies do highlight both the central flaw in the right-wing rhetoric in logical and ethical terms, and indeed the reason this spurious argumentation is effective. If, as the populace believes, those not paying income tax account for even the 15% of so of the nation’s wealth, that’s a fair amount of money not to be drawing any tax revenue at all. Trouble is, that bottom 46% make less than 3% of the income and have well under 1% of the wealth.

And so we’re back to where we started: if the right wants to make a big deal out of “nearly half” of the population not paying taxes (there were also a few thousand millionaires who didn’t, either, but that doesn’t bother them so much), then the appropriate response is not merely to point out that virtually everyone with a job of any kind pays payroll tax. It’s also to ask what the GOP is going to do to raise people up economically to the point where they’re going to be called upon to pay taxes. How do you do that, Governor Perry? I’ll give you a hint: it’s not by leading the nation in minimum-wage (and sub-minimum-wage) jobs.

Sunday, August 21, 2011

Just when you thought the GOP couldn't get any more hypocritical...

Seems like we just got over a skirmish on taxes and there’s another one looming. The Republicans decided in the negotiations over raising the debt ceiling that allowing the Bush tax cuts for the stinking rich to expire qualified as a tax increase, so they couldn’t possibly support it. Well, now the one-year break on payroll taxes (a.k.a. FICA), not to be confused with income taxes, is nearing its expiration, and President Obama wants to continue it. And the Republicans are opposing him! So much for any credibility any of them ever had.

GOP Grand Exalted Hypocrite Ways and Means Committee Chair David Camp says that tax reductions, “no matter how well-intended,” will add to the deficit. That’s true, of course, but where was that line of reasoning a month ago, when Republican petulance prevented any increase in revenue in any form from being part of the deficit deal?

The difference, say truth-impaired asshats like Lamar Alexander (I’m so old I can remember when he was sane) and Eric Cantor (he was never sane), is partially that the Bush tax cuts were intended to last for 10 years. Uh huh, and that decade was about to run out, and… Also, of course, Cantor “has never believed that this type of temporary tax relief is the best way to grow the economy.” Cantor is loony, lying or an idiot. My choice is D, all of the above, but you’re free to differ. Anyone not rendered brain-dead by adherence to the silly, demonstrably-failed, regressive policy known as supply-side (a.k.a. “voodoo”) economics realizes that the way to stimulate the economy is to put more money in the hands of people who will spend it. Logically, that means if we’re going to do tax cuts, they should go primarily to poorer people, who will purchase things they otherwise couldn’t afford, rather than banking the difference.

The Republicans, whose rhetoric, even more than Democrats’, concentrates on manifestations of the Puritan work ethic, don’t really value work. Thanks to them, for example, capital gains and most dividends are taxed at a significantly lower rate than earned income. (This is why the “hedge fund exemption” is so outrageous.) And FICA taxes are ultimately regressive, since they apply only to the first $106,800 of income.

A DINK (dual income, no kids) family making $50,000 a year will pay $5961 a year (11.9%) in taxes, between federal income tax and FICA. (In all three hypothetical families, we’re assuming they don’t itemize, although of course the wealthiest family would be far more likely to do so, since the percentage of income necessary to make itemization work to their advantage would be negligible.) A second family, making $100,000, would pay $16,894 (16.9%) in those combined taxes. But what of a third family, making, say, $1,000,000 in earned income and another $19,000,000 in capital gains? Their total tax would be $3,202,479 (16.0%). Yes, that’s a lower rate than the middle-class family.

Allow the payroll tax cut to expire, and the $50K family will see a $1000 increase in their taxes. It would be $2000 for the $100K family, and $4272 for the $20M family (assuming both spouses made at least $108K; otherwise, the increase would be smaller). That already tells you something: that the increase is barely over twice as high for the last family as for the middle one, even though their total income is 200 times as much. But let’s look at those numbers another way: allowing those cuts to expire would raise the first family’s total federal income-related tax burden by close to 16.7%, the second family’s by 11.8%, and the third family’s by about .1%. The tax increase as a percentage of income would be 2% for the working class and middle class families, .04%, or 1/50 as much, for the wealthy one.

And this, ladies and gentlemen, is the kind of revenue enhancement the Republicans can get behind. I posted the AP article linked above on the Curmudgeon Central Facebook page earlier today. The first comment read, “If the GOP are for it, it must be a tax on the poor.” Well, actually, yeah. It’s a big increase on the poor, a fairly substantial one on the middle class, and an almost imperceptible one on the wealthy.

A caveat: I’m not convinced in policy terms that extending this cut is actually a good idea. I do think revenues need to be raised, and I don’t think allowing this short-term cut to actually expire ought to be off the table. Then again, I wasn’t the one yammering into every available microphone that raising taxes in any way would be the moral equivalent of allowing the Four Horsemen of the Apocalypse to gang-rape your sister. No, that was the guys now nattering about fiscal responsibility and fighting to raise taxes on the poor and middle class.

Here’s the deal. I’m willing to pay a little more in taxes if it’s part of a comprehensive approach to raise revenue and decrease the deficit/debt. Such a policy initiative would necessarily include closing loopholes, ending or drastically reducing subsidies of corporations making literally billions of dollars in profits, increasing the rates on capital gains, and returning the top marginal rate to at least near Clinton-era levels. But until and unless I hear something that sounds like genuine willingness to negotiate in good faith (and actually to compromise) coming from Boehner, Cantor, McConnell, et al., then I’m going to fight these disingenuous and venal corporate water-carriers for every penny.

More to the point, one of my most significant disappointments with the Obama administration is in how inept they seem to be in political as opposed to policy terms. The President’s use of the bully pulpit has been sporadic, truncated, and diffident. Here is a gold-plated, gift-wrapped, all-expenses-paid donation from the GOP. If Plouffe, Axelrod, Messina, Carney, and indeed Mr. Obama himself aren’t bellowing from the rooftops at every opportunity for the next 15 months that the GOP was perfectly willing to let the country default in order to save tax breaks for billionaires, but want to raise your taxes, Mr. and Mrs. America, they truly deserve to lose the next election. Unfortunately, the rest of us don’t deserve the inevitable result of their cravenness, timidity, and overall political ineptness.

Sunday, July 3, 2011

Azdak Doesn't Live Here Any More

My favorite scene in my favorite Bertolt Brecht play occurs late in The Caucasian Chalk Circle, when a lecherous, venal drunk named Azdak who has somehow become a judge administers a justice more whimsical than rough. The play gets its title from this moment, when, in a moment reminiscent of the Biblical story of Solomon, Azdak determines that the true mother of a baby boy is the woman who can pull the lad out of, well, the chalk circle.

One of the contenders is the child’s despicable biological mother, who abandoned her infant when forced to flee an insurgency so she’d be able to take more of her clothes. The other woman is our heroine, Grusha, who had already risked her own safety more than once to protect her young charge. Needless to say, Grusha releases her hold on the boy lest he be hurt, revealing, in the play’s radically utilitarian terms, that whatever the legal arguments might be, she is unquestionably the more motherly of the women and ought to be awarded custody on that basis. And, indeed, that is precisely what Azdak does.

I’ve been thinking about that scene when reading about what’s been going on in Minnesota, with the shut-down of so-called “non-essential” governmental services. In what might be an opening act for a similar showdown at the federal level, complete with a Republican-led legislature and a Democratic chief executive, the budget battle came down to intransigence on both sides about whether or not to finance some of the impending budget deficit by imposing a slight tax increase on incomes over a million dollars a year. Yes, really. The GOP—and their members are in rather frightening lock-step on this point—are willing to shut down the state government rather than ask the people who can afford it most to contribute a little to solving the fiscal crisis.

Of course, ideology and pride on both sides have long since trumped both pragmatism and empathy. Governor Mark Dayton was elected in large part because of a pledge to raise taxes on the upper 2% (the final proposal rejected by Republican legislators would have applied to only about 0.3% of taxpayers); the GOP, meanwhile, took control of the legislature for the first time in decades on a pledge not to raise taxes. It’s probably true that the tiny fraction of Minnesotans who would be affected by the proposed tax hike were largely responsible for the GOP’s success last November: their financial support was no doubt critical. But they didn’t directly account for the victory—that came because everyday people like the idea of reduced spending in theory: it’s just the specifics they can’t stand.

No sane person who has spent even a couple of hours looking seriously at the last thirty years of fiscal policy really believes the supply-side silliness being proposed by the present-day GOP. Even Reagan budget director David Stockman describes the 21st-century Republican mantra of tax-cutting as:
… a religion… something that can't be questioned, something that's gospel, something that's sort of embedded into the catechism and so scratch the average Republican today and he'll say ‘Tax cuts, tax cuts, tax cuts’…. It's rank demagoguery.
Stockman goes on to advocate the thoroughly sensible (and politically suicidal) position that the Bush tax cuts should be repealed not simply for the richest 2%, but indeed for all of us.

Still, while virtually every Republican politician you can name has drunk deep of the neo-Reaganomic Kool-Aid, or at least purports to have done so, lest s/he be branded heretical, even stupid economic policies are at least economic policies. The same can’t be said for what GOP legislators presented to Dayton as conditions to negotiate: abortion restrictions, school vouchers, requiring photo ID’s at polling places, the elimination of stem-cell research, tuition caps on state universities (while, of course, cutting state funding to those institutions)… the list is nothing if not expansive, and completely irrelevant to any considerations of the budget.

About the best that can be said about these machinations is that they are not playing out behind closed doors in proverbial smoke-filled rooms. On the contrary, GOP legislators like Steve Gottwalt want to crow about their lack of seriousness about the issue at hand: “In a negotiation it is common for you to bring things forward and say let’s talk about these things, these are things that are important to our side.” This statement is true, of course, but pertains—or ought to pertain—only to that which is relevant. Honest and sensible people can disagree about whether prospective voters ought to need photo ID’s; there can be no disagreement about whether such considerations belong in budget negotiations.

It’s been a while since there was anyone in the Republican hierarchy could legitimately be considered a moderate—some, like John McCain, John Huntsman, and Mitt Romney were, but haven’t been so for years (of course, they’ve all been convicted of apostasy by the Rush Limbaughs of the world). These days, the terms “honest” and “not bat-shit crazy” are hard enough to apply to anyone who matters in the GOP. But the fanaticism is troubling not simply for the potentially catastrophic legislation that might be enacted.

More importantly, it is terrifying in its own terms. The only thing worse than True Believers is that (sizable, no doubt) cadre of politicians too craven to think for themselves: those who don’t really believe the stupidity being spouted by Tea Party ignoramuses and right-wing pundits, but who feel compelled to act as if they do, and actually end up taking more extreme positions than the TBs. The other variation on this theme is blind adherence to extreme ideologies, often with complete disregard for facts. If you want to repeal the healthcare bill, that’s fine. If you want to do so because of “death panels,” you’ve got your choice of self-descriptors: profoundly ignorant, moronic, and/or mendacious.

But the current GOP’s quest for ideological purity manifests itself also in a puerile resistance to anything that even looks like compromise: witness the skepticism of the ring-wing punditry at the candidacy of John Huntsman, who is almost certainly the most electable Republican currently in the field (not that he’d necessarily win or that someone else would necessarily lose). In the rarefied atmosphere of Republicania, compromise and cooperation are signs of weakness, and creating a system that works fairly and efficiently is far less important than creating a system that helps “important” people (hint: not the 99.7% of Minnesotans whose taxes would not increase in Governor Dayton’s plan), whether they need the assistance or not.

The situation in Minnesota is being described as a showdown, as a game of chicken, as a test of who will blink first. In any truly democratic (note the lower-case “d”) society, Governor Dayton would have a political winner: arguing in favor of the tens of thousands of workers laid off by the impasse, in favor of the 16-year-olds who can’t get driver’s licenses, in favor of the holiday vacationers who can’t use state parks or even highway rest areas, and opposed to a cadre of the super-rich being protected by their minions, the Republicans in the legislature. (Note: the foregoing refers only to politics, not necessarily to policy.)

But Governor Dayton, like Azdak (and Solomon), will see the whole picture. He’ll see the unemployment, the lack of services, the fact that the shut-down actually does nothing to solve the problem… in short, the serious harm to the state if there’s no resolution in the near future. More importantly, he’ll care. For him, accepting a political defeat is better than destroying the state.

The GOP doesn’t see it that way. Barring a huge groundswell of popular resentment (possible, but probably not on a significant enough scale to matter), they’re likely to stand their ground. You can’t be a good extortionist—and the Republicans in this case are no more than that—if ethics or morality cloud your Machiavellian (or Randian) weltanschauung. Let’s face it, once the GOP drew that line in the sand, they’d already lost any chance of support from that segment of the electorate likely to try to punish them for their support of the ultra-rich at the expense of everyone else. Moreover, the services being cut aren’t anything they or their financial backers care about (when was the last time you saw a millionaire at a state park?). So there’s no political benefit to being grown-ups.

Sooner or later, Governor Dayton is going to act like a true custodian of his state. He’s going to let the child go rather than allow the GOP to rip its arm off. And when he does, there will be no Azdak to put things right. Dayton’s compassion will be seen by his political opponents as vulnerability, and it will be exploited again and again. And we’ll all be one step closer to the abyss.

Monday, May 16, 2011

More on Budgets... and Moron Budgets

If you’ve been paying even a little attention lately, you’ve been hearing a lot about the federal deficit, which is ongoing, potentially crippling, and the subject of the rankest of hypocrisies from both sides of the aisle. Is raising the debt ceiling the first horseman of the apocalypse, as the Rush Limbaughs of the world would have us believe? Of course not. But the deficit is a serious issue, and one that won’t be solved without making some difficult choices.

And we’re going to continue to have a problem until and unless the Democrats decide to spend less and the Republicans decide to collect more. That’s an oversimplification, of course—the GOP certainly likes its military budget (well, except for actually paying the troops appropriately during and after their service: that part, the Republicans aren’t so good at), and the Democrats don’t want to raise taxes on anybody except the insanely wealthy, buying into the specious argument that with taxes the lowest they’ve been in two generations, it’s a struggle to survive on a mere $180K a year, even as the Dems try to claim they are the true representatives of families making a quarter of that.

But there some things we can agree on, and we ought to start there. The wars in Afghanistan and Iraq need to be wound down sooner rather than later—or, alternatively, we need a coherent and well-documented rationale for staying. New weapons systems even the Pentagon says it doesn’t need get the axe. Subsidizing oil companies that are making record profits has got to stop. House Budget Chairman Paul Ryan’s proposed gutting of Social Security and Medicare is indeed “radical” and “right-wing social engineering,” as Newt Gingrich said it was before he started the ever-so-predictable walkback, but something really does have to be done (e.g. making FICA less regressive?). Finally, when we say we’re cutting the budget, we need to… you know… cut the budget, not actually increase spending, as the last so-called “cut” did.

On the income side, we could start by collecting what the BPs and Transoceans owe us, and above all to stop making excuses for their perfidy. More significantly, of course, as I’ve said before, we also need to raise taxes: a lot on the richest folks, some on most of us. The supply-side canard that the “rich create jobs” and are therefore to be exempt from feeling any of the pain suffered by teachers, cops, and similar leeches must be revealed as the daft and/or insidious dogma it is. The weeping and wailing about how the richest among us are paying a greater share of the taxes than at the beginning of the Reagan administration has got to stop, too, even though it’s technically true.

Here’s why: according to the Tax Policy Center, the top 1%’s share of the total tax burden in fact doubled from 1980-2007, from 14.2% to 28%. The top 10%’s share went from 40% to 55%. So the GOP has a point, right? Of course not. Because the wealth in this country has been concentrated in fewer and fewer hands over that period. Figures from the the Tax Foundation demonstrate this shift. With the proviso that the definition of Adjusted Gross Income changed with the Tax Reform Act of 1986, so comparisons on opposite sides of that date aren’t strictly apples to apples, we see that in 1980 the top 1% made 8.46% of the income; in 2007, that was 20.81%. The figures for the 10%: 32.13% and 48.05%. (Note: the Tax Foundation has different numbers than those cited above. That’s because the Tax Policy Center includes Social Security and the Tax Foundation doesn’t.)

Let’s see how the math works out here. Between 1980 and 2007, the last year for which these statistics are available, the top 1%’s income as a percentage of the whole went up 146% and their tax burden went up 97%. The top 10%’s income went up just under 50%; their taxes, under 38%. What I’ve tried to create here are real statistics which, of course, can be read in multiple ways. Those on the left will see that the richest 1% of the population has seen their incomes rise once and a half as fast as their tax burden over the last generation or so; for the top 10%, it’s about once and a third as fast. So shut up, already, with the “rich pay more than before” arguments. They’re crap, and either you know it and you’re being disingenuous, or you’re transcendently ignorant and fit only to be a Vice Presidential candidate for the GOP.

Those on the right, however, will compare different statistics: they’ll concentrate on the fact that the rich are indeed being taxed at a higher rate than the rest of us. The top 1% pays 28% of the taxes on 21% of the income; the top 10% pays 55% of the taxes on 48% of the income. So the screams on the left that the wealthiest are paying virtually nothing are also so much fertilizer. (That claim is true about corporations, but that’s a rant for another day.)

There are lots of ways of either saving money or bringing more in. How about not sending difference checks for federal financial aid until courses have been completed successfully? This would also have the further benefit of incentivizing academic success. It would mean that students would need a little more of their own money up front; in exchange, we’d be subsidizing tens of thousands fewer lazy little bastards whose job it is to sign up for classes, get a difference check, and never go to class again until doing the same thing at a different school next time. Or how about raising the gasoline tax, bringing in about $1.4 billion a year per 1¢ increase? This would also incentivize fuel efficient vehicles, improve air quality, and provide a number of other advantages.

But we also need to be willing to say that saving a few million dollars actually matters. That aircraft engine that John Boehner wanted only because it would be built in southwestern Ohio? $450,000,000 is a lot of money in my neighborhood, even if represents only a fraction of one per cent of the deficit, let alone of the entire budget. The amount of money to be saved by eliminating energy company subsidies? About $20 billion a year: a little over 1% of the deficit. I actually just read an article (alas, I can’t find it to link) that suggested that it isn’t worth the bother to save a mere $20,000,000,000. Seriously, where do they find these people?

But even smaller wastes of money matter. How about this one: $2 million for cameras so that parents can see what their kids are eating for lunch at school. Really. Dr. Lloyd Werk, Chief of Consultative Pediatrics at Nemours Children's Clinic in Orlando, says this is a way to fight childhood obesity. Dr. Lloyd Werk is an idiot. Does he really think that a parent who can’t see that Junior is as wide as he is tall is going to suddenly start taking an interest in a healthy diet just because of some Junior Spy-Cam photographs? Or that what a kid eats at lunch, as opposed to between classes, after school, etc., is the problem? Or that asking the kid what he had for lunch wouldn’t generate the same results for a shitpile less money? Seriously, I can’t decide whether I’m most appalled by this project as a civil libertarian, as a taxpayer, or simply as a thinking adult. I’m leaning towards this last option.

This is an Agriculture Department project, but you know as well as I do that supporters and especially critics will tag it to Michelle Obama’s anti-obesity campaign. The Obamas—both of them—ought to run, not walk, away from this inanity. For one thing, it’s really bad politics. $2 million may be a drop in the federal government’s very large bucket, but it sure sounds like a lot of money to the average taxpayer. Of course, there’s going to be an interview with some Tea Party guru in every city in the country when this story finds its way to the local news, all of them suggesting that this is precisely the kind of wasteful spending they seek to eliminate. Trouble is, this time, with the surety of a stopped clock, they’re right. And that’s the real reason to ditch this program: not because it’s a political nightmare waiting to happen (although it is), but because it’s, well, stupid.

Sunday, April 10, 2011

Fracking Frackers.

As a well-informed citizen, Gentle Reader, you are no doubt aware of the state of Texas’s budgetary crisis that’s going to cost, among other things, somewhere in the vicinity of 100,000 jobs in the public education sector so we can maintain a “favorable business climate,” or whatever new euphemism Governor Perry is using for “screw everybody but my fat-cat campaign contributors.”

The newest revelation about the true nature of the deficit suggests, unsurprisingly, that Big Energy is not only making obscene profits with little if any regard for trivial inconveniences like groundwater contamination bad enough to set tap water on fire, but they’re apparently gaming the system to avoid literally billions of dollars in taxes. Indeed, a report commissioned by the Texas Legislative Budget Board but oh-so-conveniently not published—the decision to publish or not is made by the “leadership” (Lieutenant Governor and Speaker of the House), not the staff—shows that there has been some pretty shady stuff going on. The result is that a tax of 7.5% of market value has, because of “deductions, exemptions, and rate reductions,” actually generated a yield of only between 1.1 and 1.9%, or somewhere in the vicinity of a quarter of what would otherwise have been owed.

The most significant part of this discrepancy was in a tax benefit accruing to “high-cost operations.” The original rationale for this incentive makes perfect sense: encouraging companies to drill in places they otherwise might not, thereby creating a win-win: the company hires more people, makes more money and can keep more of it; the state collects a lot of tax revenue, even at a reduced rate, when there may not have been a well at all otherwise.

Problem is (quoting from the report):

• High-cost natural gas well certifications are based on 30-year-old production definitions that rely on the type of gas produced and manner of production rather than the actual cost to drill. In fiscal year 2009 this resulted in the certification of a $24,000 gas well as a high-cost operation when the median drilling cost was $2.3 million….

• Since fiscal year 2004, the value of high-cost gas tax rate reductions has totaled $7.4 billion.

• During fiscal year 2010, the State Auditor’s Office documented multiple instances in which tax audit processes did not prevent taxpayers from claiming rate reductions in excess of statutory limits. The Comptroller of Public Accounts later reported 357 natural gas wells had exceeded maximum rate reduction caps.

• [High-cost gas tax rate reductions are projected to account for] state revenue losses of $7.9 billion through 2019, from just the wells drilled in 2009.

The exact ratio of how much of the lost revenue is the result of actual criminality as opposed to simple corruption of the political process is unclear. What is evident is that the natural gas industry, with the active collusion of the state government, is getting enough in tax breaks at the expense of the rest of us to make a serious dent in the deficit. Ultimately, it matters little how Halliburton (to pick one such corporation at something short of random) harvests its taxpayer rip-off: by breaking laws it knows won’t be enforced, or by buying politicians who will do its bidding and legalize that which should be criminal.

To say that I am not a geologist or a tax accountant is rather like saying that water is wet… or that fracking isn’t worth the risk, at least at current technology levels. But it doesn’t take a lot of discipline-specific expertise to figure out what to do: 1). review the current policy, making appropriate accommodation for actual entrepreneurship, but ensuring that multi-billion dollar corporations aren’t screwing the rest of us (again), 2). actually enforce whatever the revised law does decree (collecting what's already owed wouldn't be a bad idea, either), 3). remove the TLBB from partisan control so they can and will release reports like this one, which they claim is an “internal working document,” not even subject to the Open Records Act.

There are legitimate concerns, expressed for example by commenter “L Streets Resident” on the excellent blog post by Jim Schutze on the Dallas Observer site, that a too-precipitous change of policy might turn out not to be cost-effective, costing more in jobs than it would generate in revenue. Perhaps. And Schutze no doubt exaggerates the situation: $8 billion over several years is different from $8 billion right now. But the energy industry’s defenders can’t seem to wrap their head around the idea that, say, cutting a third of the state’s teaching jobs might also have some significant negative repercussions extending well past the immediate families of the laid-off educators themselves.

Frackers.

Tuesday, October 12, 2010

The link, alas, is cowardice

One of the things any scholar does is to seek patterns other people might have missed. It becomes, in a sense, a variation on the theme of the $10K/25K/100K Pyramid. If you’d like to play along at home, here are the clues:

• a screed by Michael Moore about what Democrats need to do to maintain their control of Congress

• a story a couple of weeks ago that Senate Democrats would postpone until after the election a vote on extending the Bush tax cuts for everyone except the over-a-quarter-million-a-year-crowd

• a recent story week about how the Obama administration is issuing waivers to employers and insurance companies alike “to maintain even minimal coverage far below the new [health-care legislation’s] standards.”

• a travel advisory from the State Department about a potential terrorist attack in Europe

• a photograph of the statue of Oliver Goldsmith in front of Trinity College Dublin that came around on one of those annoying Facebook feeds

Okay… what do they have in common? The answer: Edmund Burke, the great Irish statesman and philosopher. For the Goldsmith statue, the connection is that a statue of Burke is the other famous memorial at the front gates of TCD. For the others, it’s Burke’s best-known line, “All that is necessary for the triumph of evil is that good men do nothing.” Another way of putting that famous aphorism: “Have some damned balls, good guys.” With me, now?

I start with a point Moore sort of buries in his piece, but which would make a huge difference: “announce that you will force the Republican senators (who until now simply have had to say they ‘intended’ to filibuster in order to kill a bill) to have to actually filibuster! Make them stand on the floor of the Senate and read from the phone book 24/7. They won't last a day. And America will see them for who they really are.” I’ve been saying this for a long time: make them do the Jimmy Stewart in “Mr. Smith Goes to Washington” thing.

Conventional Wisdom and the New York Times story (if there’s a difference), say the reason Harry Reid is parading his signature brand of cowardice with respect to the Bush tax cuts is to “[spare] some politically vulnerable incumbents from casting a potentially difficult vote to let taxes rise for the rich.” The polls show a pretty much divided electorate, with different results apparently (to me, at least) a function of how the question is asked. Thus, a CBS News poll from late August showed that by 20 points (!) Americans believe “the tax cuts should expire for households earning over $250,000 per year.” And while a subsequent poll by CNBC seems to suggest an opposite finding, I’d argue that the difference comes in large part from the phrasing: “increasing taxes on any Americans will slow the economy and kill jobs.” (Note the italics!) Or so it would appear the question was—I pulled that phrasing from the story; the alleged “complete poll results” are, to be polite, incomplete.

By the way, lest you think that the change is better explained by when the respective polls were conducted, there’s another one from Marist College’s Institute for Public Opinion, taken essentially contemporaneously with the CNBC poll. It shows a slight preference for continuing the Bush tax cuts for the middle class but not for those in the $250K income bracket. Interestingly, 54% of Republicans don’t think that income level qualifies as “wealthy.” Really. I’m a tenured faculty member at an accredited university; my wife is the Financial Aid Director at a community college. We’d need about a 150% increase in our family income to reach that threshold. Maybe it’s just me, but I’d suggest pretty damned strongly that bringing in a quarter million dollars a year would qualify a family as well off. Certainly, they’d be doing well enough to be able to afford a modest tax increase on income over $250,000 a year.

More importantly, it doesn’t matter. The nation is, at worst, divided. And this after an onslaught of post-Citizens United decision, anonymously-funded, misrepresentations of reality. The Republicans and their minions at Fox News (or is it the other way around?) have consistently mis-defined “small business,” fiddled with statistics, and pretended that they’re interested in the deficit while making sure their fat-cat friends continue to profit from the policies that are largely responsible for creating the size and scope of the deficit to begin with.

Even more to the point: you’re supposed to be Democrats. Stand for something, dammit! Remind people of why they voted you into office to begin with. Give them a reason to re-elect you, not just to prevent that lunatic you’re running against from getting into office. You’re going to be smeared by RepubliCorp anyway, so don’t worry about them. Put together a bill that extends the tax cuts for 98+% of the country. Vote down the inevitable amendment to extend the cut for the terminally-entitled rich.

And make the sons of bitches filibuster the bill! Make them stand on the floor of the Senate and, in full view of the American people, argue against a bill that would prevent a tax increase for the overwhelming majority of us. Or, alternatively, to “read from the phone bill 24/7,” demonstrating such contempt for the middle class they pretend to care about that they’ll do anything to thwart a bill that would help the 98% at the expense of the 2%. Do this before the mid-term elections and run on your attempts to help regular people, contrasted with Republicans’ petulance, arrogance, disrespect for the Senate and the citizenry alike. The chances of this happening, of course, are precisely zero, because the only thing in American political life as certain as Republican mendacity is Democratic cravenness.

We see this phenomenon again in the Obama administration’s unconscionable capitulation on healthcare. It wasn’t enough, apparently, to bargain away anything that looked like real reform (in exchange for what? and with the upside of how many Republican votes?). No, they’ve got to grant waivers to everyone with a lawyer and a lobbyist. Come on, who honestly believes that McDonald’s can’t afford to provide the very fundamental level of health-care dictated by so-called Obamacare? Or that insurance companies can’t make money except by extortion? Give me a damned break. If some company says they’ll pull out of a market, let ‘em, because they are passing up an opportunity to make money.

Indeed, there is something to be said for the claims that President Obama is a socialist. Not for the reasons the professional prevaricators of the right are claiming, of course. But the President doesn’t seem to have a lot of faith in the free enterprise system. Even in this economy, companies need to compete for good employees. Cutting insurance coverage isn’t going to help do that. And executives who choose to make no profit instead of some tend not to endear themselves to investors. There are times to regulate markets and times to butt out. This is the latter, especially if the rationale is somehow to avoid criticism. As Mr. Obama has repeatedly pointed out in recent days, the GOP is going to complain, regardless. So do what’s right.

A different kind of cowardice is at play in the “terrorism” nervousness. Of course there’s going to be a terrorist attack somewhere in Europe, sometime in the not-too-distant future. There’s also going to be some crazy with a gun on an American university campus, soon. (A week after the fatal incident at the University of Texas, for example, an “armed and dangerous” murder suspect was spotted on my own campus.) The chances that someone will be driving while drunk, stoned, texting, making calls on a cell phone, or otherwise not paying attention at any given moment in my small town: metaphysical certitude. I’m driving to work tomorrow. I’m also going to London over the holidays. This isn’t reckless behavior. I may be peculiar, but I’m not crazy.

I confess to being somewhat at a loss to explain the State Department’s curious warning. There doesn’t appear to be any specific new information that precipitated the announcement, and the advice is remarkable in its uselessness: “U.S. citizens should take every precaution to be aware of their surroundings and to adopt appropriate safety measures to protect themselves when traveling.” Exactly what “appropriate safety measures” might constitute, we’re left to guess. Well, pretty much so, anyway: in a telephone briefing, State Department Undersecretary for Management Patrick F. Kennedy argues for “common sense precautions” like avoiding unattended parcels, knowing how to use pay telephones, having contact information for the American Embassy, etc. Wow. Has the nanny state really reached the point at which we need a government edict to not be freaking stupid?

More to the point, if “we’re not recommending, that American citizens of any kind–business, tourism, study abroad–we are not–we are not, not, not saying that they should defer travel to Europe at this time, absolutely not,” then what the hell is the point? What is gained from this bizarre release? If this were the Bush administration, I’d be looking for a wag-the-dog moment, and I’m not so naïve that I believe Democratic administrations incapable of such chicanery. But there’s no reason for it: no particularly bad news to try to bury, no scandals to cover up. And, if anything, the Dems have been making inroads into the presumed GOP landslide in next month’s elections.

The best I’ve got as an explanation is pure, unadulterated cowardice. Two terms of Bush/Cheney fear-mongering apparently took their toll. Democrats are running from their own good work, avoiding confrontation instead of standing on principle (with the result that they’re beginning to look like they in fact have no principles). Americans in general are supposed to cower at the prospect of a specter which will almost certainly affect someone, but which is extremely unlikely to directly affect any particular individual. The post-9/11 bumper sticker of the American flag with the cutline “These colors don’t run” is looking increasingly fanciful.

Sunday, August 1, 2010

What If the Government Really Did Budget Like Families Do?

There was an interesting story on the HuffPo site by Johann Hari site a couple of days ago about the decision of Moody’s, the leading credit agency, to downgrade Ireland’s bond rating from Aa1 to Aa2. No, I don’t pretend to be economist enough to understand all the implications and repercussions (it would be nice if a few folks in Congress admitted similar ignorance), but the story caught my eye because of my affection for that country and because of Hari’s discussion of the implications of the Irish situation for the US:
The Republicans want to bring this vision from Ireland… to the US. They say–yes, this is rough, yes, it hurts, but it is for a necessary purpose. If we don't do it, the bond markets will downgrade our debt and we will be even worse off. Only austerity can hold off the prospect of a debt crisis.

So let's return to the truth buried in that little story on the financial pages. Ireland has been doing exactly what the Republicans urge, with a two year headstart. What are the results? Last week, a study by the International Monetary Fund nobody's idea of a left-wing pressure group—found that country’s economic collapse now “exceeds that being faced by any other advanced economy, and matches episodes of the most severe economic distress [anywhere] in post-World War Two history.”

Why? During a recession, ordinary consumers quite sensibly cut back and spend less. But if the government does the same, it means nobody is spending. This is bad enough for all the people who suffer immediately: the swelling army of the unemployed, the repossessed, the abandoned. But it turns out it makes its original goal—paying off the debt—impossible too. As the Nobel Prize-winning economist Joseph Stiglitz explains: “If you introduce austerity measures, the amount you can raise in tax falls, and welfare payments go up—so you don't have enough money to pay your debts anyway.”
If nothing else, I rather appreciate the phrasing of Stiglitz’s “cautionary note against deficit fetishism.” Hari also argues that:
When consumer spending collapses, governments need to borrow and spend to prevent a depression—and then pay off the debt from the proceeds of growth once we have brought the good times back. It's revealing that the countries that have done this hardest and fastest—like South Korea, which spent a fortune on employing people to green the country's infrastructure -- have been the first to pull out of this recession, while the countries glugging Republican-juice have sunk deeper into the gloop.
Needless to say, Hari goes on to assert that “the choice today is between a deficit and a depression. It is immoral not to borrow and spend when it could revive the economy and prevent all these lives being written off.”

A couple things intrigue me about this. One is the manifest hypocrisy of the Republicans, who exploded the deficit with their pet projects (read: tax cuts for fat-cats) but now fret about it with deep and abiding concern. Isn’t it about time somebody called “bullshit” on this tactic? Here are the facts for the last 50 years, based on figures posted on the usgovernmentspending.com website: From 1961-69, i.e. the Kennedy and Johnson administrations, federal debt as a percentage of GDP fell from 53.04% to 35.93%, a reduction of nearly a third. The Nixon/Ford years produced little change, as the percentage dropped slightly to 34.42% in 1977. The much-maligned Carter administration further reduced the rate to 31.91% in four years. By 1993, Reagan and Bush the elder had more than doubled that number to 66.17%, all the while yammering about fiscal responsibility. Then came Bill Clinton, who lowered the rate to 56.46% by 2001. Then, guess what? Along comes Bush the Lesser and the percentage shoots up to 83.29% by 2009.

In summary, then: every Democratic president in the last 50 years except Barack Obama, who inherited an economy in free-fall, has reduced the federal debt as a function of GDP. Every Republican president since (and including) the sainted Reagan has increased that debt percentage significantly. So this isn’t at all about Republicans caring a whit (or something that rhymes with “whit”) about the deficit. It’s all about budgetary priorities. If they’d admit that, I’d still disagree, but I might be able to muster a little respect (or at least less contempt) for their position.

But the other element of the Republican talking points that catches my attention is the whole conflation of government economic policy with family finances. In these difficult times, the argument goes, everyday people are being forced to tighten their belts; the government should do the same. Let’s leave aside the fallacy of considering these two fundamentally independent concepts as if they were the same thing. Let’s pretend, in other words, that the parallels are legitimate.

What, then, would the Republican strategy mean to a household? Well, they’d spend less (or they'd say they would, which isn't quite the same thing). In the world of family budgets, it probably is a good idea to put off buying the big-screen TV or the new Jacuzzi when times are tough. You might go out to eat less often, watch Netflix instead of going to the movies, keep your house a little cooler in the winter and warmer in the summer.

But there are some expenses you just can’t forgo. If you’re looking for work, cutting off your internet service might save you a few dollars in the short term, but it will also inhibit your ability to find out about job opportunities or to apply for those that do exist. If you live several miles from your place of employment, you could save money by not driving to work, but you run the risk of losing your job. If you’re a contractor, turning off your cell phone will save you perhaps $1000 a year, but prospective customers (or your telephone service) can’t contact you, and your business losses will outpace the savings. Cutting expenditures on clothes might be an option… unless you go for an interview at a place where dressing well is a job requirement. And on and on.

Similarly, fiscal responsibility in government is a good thing. Cutting back on unnecessary spending—say, a pair of bright shiny wars that have already cost nine years, over a trillion dollars (that’s $1,000,000,000,000) and over 5,000 Americans’ lives (not to mention the tens of thousands of Iraqi, Afghani, and Pakistani civilians who have also perished in the conflict)—might be a good idea. But refusing to spend money to stimulate job growth, to provide a safety net for those put out of work through no fault of their own, to provide short-term support for an automobile industry that directly or indirectly provides literally millions of jobs: that’s the equivalent of refusing to take your flu-ridden kid to the doctor because the credit-card bills are already kind of high.

And then, of course, there’s the income side. We don’t want any more than we’ve already got. Yes, we’re having trouble paying the bills, but collecting over half a trillion dollars (an estimated $564,000,000,000) just by allowing tax cuts on people making over $200,000 a year to expire—well, that, in Republicania, is simply beyond the Pale. Imagine if households really operated the way the Republicans say the federal government should: “No, that pay cut I took a few years ago, don’t worry about taking me back to my old income; we’ll just eat less, and my friend says sending your kids to college is over-rated, anyway.”

Don’t get me wrong. There is plenty of pork in every budget, and probably a considerable amount of our old friends Waste, Fraud, and Abuse, too. Nor does either party have a monopoly on self-righteous posturing or on prioritizing re-election over the common weal. That said, even if we buy the Republican talking point analogizing from federal spending to household budgeting, their argument just doesn’t make sense.