Tax Wealth Like Work

It’s apparent that the income and wealth gap in the US (and the world) is large and only getting worse. Out of the last ten years of economic growth all of the increase in wealth has gone to the top 1%. These extremely wealth people have seen an 18 percent increase in their yearly income and currently the top 1% control 40% of the total wealth in America!! During those same ten years the rest of us have seen a decrease in our yearly incomes. (The concept of “a rising tide lifts all boats” is utterly false by the facts)

All those facts are explained in Joesph Stiglitz’s article pretty clearly. While I suspected that our tax system was skewed towards the wealthy (and we know all about the infamous “Bush tax cuts”), I was unaware of the actual numbers on earned income taxes versus capital gains and dividend income. Those of us that work for a living, most contributing to the betterment of society in some fashion or another, are taxed 35% of our income. Those that live off dividends and investments, many of which are inherited, are only taxes 15%.

A recent group of wealthy individuals have come out to recognize this disparity and campaign for a change. Responsible Wealth and United for a Fair Economy have launched the “Tax Wealth Like Work” campaign. The goal of the campaign is to:

“Focus attention on the discrepancies in the U.S. tax system that reward income from wealth over income from work. Income from capital gains and dividend income – a type of investment income from stocks, real estate, and other holdings – is taxed at a top marginal rate of only 15 percent. Income earned from work, on the other hand, has a top rate of 35 percent.”

Check out the campaign here. (Thanks to Gift Hub for showing me this)

Here’s some graphics for your consideration, too:

Effective Federal Tax Rates = Wealth Inequality

Related posts:

1. Taxing The Bads
2. Ethical Banking Systems
3. Beyond Talk: Climate Action Now

The House of Representatives recently voted to eliminate public broadcasting. This means no more NPR, no more Sesame Street (won’t somebody think of the children?!), no more Wait! Wait! Don’t Tell Me, no more PBS Kids. As a parent with a child who loves Elmo, as well as a frequent listener of npr’s great programs, I cannot remain silent while this great resource is voted out of existence. I know that our corporate house representatives want to make this last public supported media resource, I do not!If you won’t listen to me, listen to Mr. Roger’s saving public broadcasting in 1969.

Check out this infographic released by the campaign to save public broadcasting, 170 Million Americans:

Tell you senator to vote against this bill.

Perhaps instead of eliminating a valuable public resource (that costs relatively nothing when compared to the rest of the budget) we should start taxing our corporations – you know those business that make billions of dollars a year and pay practically nothing in taxes! Read my last post about the One Good Cut Campaign or check out the newest issue of Mother Jones to see just how much we pay and how little those big fat cats pay.

Related posts:

1. PARK(ing) Day: A Celebration of Public Space
2. Accountability in Media?
3. The Green Economy vs US Politics

When you first learn about how our money is controlled, created and loaned you might very well not believe it. In fact, it is both so simple and so outrageous that often people think it is a lie. The reality is that our privately owned, corporate banking institutions have the power to create money out of thin air, then charge you for it. There is no real effective oversight either. Another lesser known fact is that the Federal Reserve, which set interest rates for banks and oversees banking in general, is not a entirely government agency. It is mostly controlled by the very private, corporate banks that it oversees.

All of this information just shows how distorted our banking systems and how reprehensible the actions of these banks are that led to a massive taxpayer bailout. They still show record profits and give out million dollar bonuses. These are just people who manage our money, not doctors or nurses or teachers – people who give real benefit to our society. Instead, because of the economic collapse caused by our bankers we have to lay off doctors, nursers, police officers and teachers while banks pull in still greater profits. Do they really provide such a useful service to our society that they should make millions while our basic social services are cut?

The creation of our money should be entirely in the hands of our publicly represented government, where we can see and control it! Banks provide a very basic service to our society, but when it comes down to it they shouldn’t run the world or have the power to ruin it.

One Good Cut is a great little film put together by Positive Money that outlines this issue and how we can repair it. Check it out:

Check out more on the One Good Cut website and take action!

Related posts:

1. Ethical Banking Systems
2. The Robin Hood Tax
3. Federal Reserve Transparency

I’ve often thought that the profit motive is one of the roots of our problems. That’s basically the statement behind the documentary The Corporation, which shows that the corporate model is, clinically speaking, a psychopath. When we are constantly chasing the “up and to the right” we are no longer striving for enough but more than enough. And the more than that. And still more than that. Profit motive drives the growth economy.

My wife’s been doing a lot of reading for a class about diseases around the world. One thing she commented on was regarding the “industrialization” of a lot of third world countries, namely those in Africa around the time AIDS appeared. These relatively flourishing countries had small, cyclical economies – that is, economics that produced enough for everyone involved. (Rob Hopkins talks about a similar economy in the intro to The Transition Handbook) These countries we not “developed” by western thought, but most everyone had a job and a stable home. Farmers produced enough food for their families and those in their community.

Then in come the western industrialists, saying “you can produce more than that and sell it to people in the next city/county/country to make more money!” And it was all down hill from there… Then the westerners leave the country pillaged, in ruins and aimless. No one benefited by the introduction of the growth concept in these examples except for the big company’s pocket books. And in order to feed that profit motive, in order to make even more money, these companies move on to the next unsuspecting country.

What if we were to change this line of thought? What if we were to introduce a cyclical line of thinking back into our corporate models? Instead of constantly “up and to the right” what if we said we need to maintain a certain level in order to sustain our employees, our country, our planet? What if we reinvented our way of living to serve our community and ourselves instead of just our bank accounts? Where is my rambling going? Well…

Donnie Maclurcan is a fellow Post Growther whom I’ve had the pleasure to work with a lot recently. (He also wrote a guest post a while back) He gave a TEDx Youth Talk a while back that is now available online. His concept is this: change the world to a not-for-profit model. Remove this destructive and unsustainable profit motive and focus on enough, on sufficiency instead of excess. I particularly love the story of the African village.

Check out the video:

Related posts:

1. Blueprint For A Better World
2. The Sigma Of Growth
3. The Green Economy vs US Politics

I don’t usually use this blog as a direct political outlet, but after opening up my mail-in ballet for the Washington State November Election I was inspired to write something. This election is important – not only because it represents a serious threat to progressive action on a national level (don’t vote in republicans!) but also here in Washington there are some important initiatives and elections. You can’t just read the ballet and understand the implications of these measures – especially since many of them include multiple changes to law, overlap in odd ways and are all the source of much campaigning by corporate interests.

I did a little research, as all members of a democracy should – be educated and involved. There are numerous sites out there, but you should at least look at your state voter’s guide to read about the measures before you vote. In the past I have used the local free newspaper, The Stranger, and the county/state guides to help me come to a decision. This year I did a little more research on these complicated measures, although I’ll admit I came to similar conclusions as The Stranger on most of them, it was of my own decision making skills.

Here are my choices for the 2010 November Election for Washington State (King County, Specifically):

Initiative 1053

Vote NO on Initiative 1053

“Initiative Measure No. 1053 concerns tax and fee increases imposed by state government. This measure would restate existing statutory requirements that legislative actions raising taxes must be approved by two-thirds legislative majorities or receive voter approval, and that new or increased fees require majority legislative approval.”

This initiative is pushed by the conservatives who think we’ve got a big government and want to make sure we don’t institute any new taxes. Right now we’re facing a serious budget problem, and will be for some time until we can get the economy repaired. If we can’t find good ways to create income for the state, and since states cannot go bankrupt, we’d be forced to cut services even further. This means less health care, less education, less essential services.

We are one of the least taxed countries in the world. If you don’t think the money is being managed well enough, then elect a better congress or run for office, but don’t strip the income when we’re already running short. Worse yet, this allows a minority to keep the state income down (tea party, anyone?), thus requiring further cuts in essential services down the road, while the costs (monetary, social, etc) are being placed on the people.

California has a similar law in place and they are bankrupt.

Initiative 1082

Vote NO on Initiative 1082

“Initiative Measure No. 1082 concerns industrial insurance. This measure would authorize employers to purchase private industrial insurance beginning July 1, 2012; direct the legislature to enact conforming legislation by March 1, 2012; and eliminate the worker-paid share of medical-benefit premiums. “

This initiative essentially privatized worker compensation and removes most of the avenues employees would normally have to suing their employers for damages when they are injured on the job. This initiative will hurt small business by increasing premiums, gives more business to the big insurance companies and removes important oversight at L&I. Sure, this department might be a pain for business when employees get hurt, but it is not something we can afford, socially, to remove. This initiative is just a way to screw the little guy and put more money in big business pockets.

Initiative 1098

Vote YES on Initiative 1098

“Initiative Measure No. 1098 concerns establishing a state income tax and reducing other taxes. This measure would tax “adjusted gross income” above $200,000 (individuals) and $400,000 (joint-filers), reduce state property tax levies, reduce certain business and occupation taxes, and direct any increased revenues to education and health.”

If there was every a modern-day initiative for a steady stater to support, this would be one. As The Stranger puts it, “Washington State has the most regressive tax system in the nation. The poor pay 17.3 percent of their income in taxes, while the rich pay only 2.6 percent of their income in taxes.” We need a more equal distribution of wealth, not only because it’s fair, but because our society will be better off because of it. Read The Spirit Level if you don’t believe me.

Initiative 1100 & 1105

Vote YES on Initiative 1100

Vote NO on Initiative 1105

“Initiative Measure No. 1100 concerns liquor (beer, wine and spirits). This measure would close state liquor stores; authorize sale, distribution, and importation of spirits by private parties; and repeal certain requirements that govern the business operations of beer and wine distributors and producers.”

“Initiative Measure No. 1105 concerns liquor (beer, wine and spirits). This measure would close all state liquor stores and license private parties to sell or distribute spirits. It would revise laws concerning regulation, taxation and government revenues from distribution and sale of spirits.”

I have a strong interest in these initiatives - our state liquor stores are horrible, bad selection and staffed by people completely devoid of knowledge. Want a good scotch? They can tell you which on sells the most, but that’s about it. These stores are a waste of our money and make you feel like a felony when you buy liquor. Now that we finally have small distilleries legally making craft liquor in the state, these bread-box stores need to be replaced with craft-loving stores and shopkeepers!

1100 and 1105 are very similar, but very different in key ways. I-1100 would allow private parties to sell liquor, and allow them to buy directly from liquor wholesalers (instead of through the state). It would remove the state’s monopoly on price increases (which, apparently is why liquor is so expensive in this state) but still save the state’s taxes on liquor. The tax is important as a stream of revenue and to recoup the social costs of alcoholism that the state pays for with police, hospitals, et cetera.

While I-1105 looks like it might do the same, it actually is worse. It removes the state’s mark-up and the tax. This means we’d loose all our revenue from liquor in one swoop, in a time when the budget is already tight. Liquor is not exactly a “good” and should be taxed for the many “bads” that result from misuse of it (drunk drivers, alcoholism, etc). Taxing liquor is a good thing, but controlling the sale and prices is not.  The losses from the inflated liquor prices are actually minor and can be taken car of with tax measures in the future (so long as we keep the liquor taxes).

If you’re one of those worried about more exposure to minors, you should know that California has a similar law and few underage drinking. Once the liquor board is out of the liquor selling business they can get back to focusing on enforcement, which should push our underage drinking down and is what the liquor board should be doing anyway.

If both of these measures pass then it will be drawn into the courts to decide, which will likely make matters worse, not better. I-1100 is a good measure, vote for it only.

Initiative 1107

Vote NO on Initiative 1107

“Initiative Measure No. 1107 concerns reversing certain 2010 amendments to state tax laws. This measure would end sales tax on candy; end temporary sales tax on some bottled water; end temporary excise taxes on carbonated beverages; and reduce tax rates for certain food processors.”

The state is in a budget crisis, so it has instituted a temporary tax on bottled water, candy and soda. These products are, in my mind, useless to our society. We have great tap water and plastic bottles are harsh on our environment, not only in production but especially in disposal. Candy and soda are full of high fructose corn syrup and a definite contributor to our society’s obesity and diabetes problems. Those problems have social costs in health care that should be accounted for in their price with taxes to discourage over consumption, just like we tax liquor and should tax many other bads.

Everything comes down to money, and this is another place where we have a progressive tax that is actually good for the people. I heard a guy on the radio, a “local” bottler who complained about how he had to lay off 6 people in his plant (out of hundreds, I would imagine). 6 people?! Everyone has had to lay off a few people in this recession, that doesn’t point a conclusive finger at the soda tax.

The state had to choose between cutting funding for public schools and child health care or taxing candy and soda. That’s an easy choice and they made the correct one. This initiative would reverse that and hurt our state. Won’t somebody think of the children?!

Referendum 52

Vote To Approve Referendum 52

“The legislature has passed Engrossed House Bill No. 2561, concerning authorizing and funding bonds for energy efficiency projects in schools. This bill would authorize bonds to finance construction and repair projects increasing energy efficiency in public schools and higher education buildings, and continue the sales tax on bottled water otherwise expiring in 2013.”

This referendum will expand the bonds available to improve the energy efficiency in schools. Our schools in Washington are old and horribly inefficient. This is smart for the kids, for our energy bills and when thinking about peak  oil and climate change. Enough said.

State Amendment Resolution 8225

Vote To Approve Resolution 8225

“The legislature has proposed a constitutional amendment concerning the limitation on state debt. This amendment would require the state to reduce the interest accounted for in calculating the constitutional debt limit, by the amount of federal payments scheduled to be received to offset that interest.”

This changes the way the state accounts for interest, allow us to borrow more federal money for infrastructure projects.

State Amendment Resolution 4220

Vote To Approve Resolution 4220

“The legislature has proposed a constitutional amendment on denying bail for persons charged with certain criminal offenses. This amendment would authorize courts to deny bail for offenses punishable by the possibility of life in prison, on clear and convincing evidence of a propensity for violence that would likely endanger persons.”

This amendment would allow courts to keep prisoners without bail until trail that are facing crimes punishable by life in prison. Last winter four police officers were killed by a guy who should have stayed in jail based on his record, but was instead released on bail shortly before killing the police officers.

King County

Charter Amendments No 1, 2 & 3

Vote YES on All the Amendments

I looked in detail at these only to find I should have just trusted The Stranger on this one. Basically, the charter needs to have some re-writing: clarifying the word “environment”; eliminating a reporting redundancy for political campaigns; ans transferring from the King County executive to the King County sheriff some of the responsibility in  public safety employees bargaining.

Proposition 1

Vote To Approve Proposition 1

“The Metropolitan King County Council adopted Ordinance 16899 concerning funding for criminal justice, fire protection, and other government purposes. This proposition would authorize King County to fix and impose an additional sales and use tax of 0.2%, spilt between the county (60%) and cities (40%). At least one-third of all proceeds shall be used for criminal justice or fire protection purposes. County proceeds shall be used for criminal justice purposes, such as police protection, and the replacement of capital facilities for juvenile justice. The duration of the additional sales and use tax will be as provided in section 6 of Ordinance 16899. “

What could be a more essential service than police departments? This proposition institutes a small sales tax increase to keep 71 sheriff’s department positions, 22 deputy prosecutors, and 42 superior court employees. It amounts to around $3 a month per household, but saves these essential crime prevention and protection departments. It also generates money to help cities in their budget deficits, like the $13 million for Seattle, for instance. Not supporting this would cut our sheriffs and courts, but likely also cut buses, transit, and other king county and Seattle city services. So Vote Yes.

United State Senator: Patty Murray, US Representative District No 7: Jim McDermott

The smear campaigns out for incumbent Patty Murray are pretty ridiculous, even for political commercials. Blaming her for “18 years” of government misdeeds or budget problems (most from the Republican-packed years of the Bush Administration) is just idiotic. I won’t say much more about the politicians, because I would like to avoid out-right support for them on this blog. I will say this: if you think things are bad now (which I think they’re getting better) they will without a doubt get worse if we give more power to the nut-job, right-wing republicans. Get out and vote for every democrat regardless! For more, read The Stranger’s reasons to support Patty and Jim here.

Image Credit: Picapp.com

Related posts:

1. Top Ten Steady State Posts of 2010
2. The Steady State Economy Conference 2010
3. The Political Push for a Steady State

My apologies for the near two weeks of silence, we’ve had some computer issues in my house and a wave of fall cold. I’ve been twitting when possible, but limited computer time has made it difficult to write much. Here is something I think you might find interesting…

The United States political arena is mind-bogglingly idiotic. There, I said it. The fact that our media and politics can take a scientific fact (climate change) and turn it into a “four-letter word that many U.S. politicians won’t even dare utter in public” is despicable, detestable and degrading to the intelligence of the American people. Thomas Friedman just wrote a great article about the “next great global industry” and how our media-political system has pushed us behind the curve.

China’s leaders are mostly engineers and scientist. They understand scientific data, unlike our leaders that are politically-driven lawyers and scoundrels - they only seem understand money. It’s just unfortunate that most of the money is held by oil and coal companies with free reign to purchase elections and fund anti-climate campaigns. From Friedman’s short article “Aren’t We Clever?“:

“‘There is really no debate about climate change in China,’ said Peggy Liu, chairwoman of the Joint U.S.-China Collaboration on Clean Energy, a nonprofit group working to accelerate the greening of China… The push for green in China, she added, ‘is a practical discussion on health and wealth. There is no need to emphasize future consequences when people already see, eat and breathe pollution every day.’

“So while America’s Republicans turned ‘climate change’ into a four-letter word — J-O-K-E — China’s Communists also turned it into a four-letter word — J-O-B-S.

“‘China is changing from the factory of the world to the clean-tech laboratory of the world,’ said Liu. ‘It has the unique ability to pit low-cost capital with large-scale experiments to find models that work.’ China has designated and invested in pilot cities for electric vehicles, smart grids, LED lighting, rural biomass and low-carbon communities. ‘They’re able to quickly throw spaghetti on the wall to see what clean-tech models stick, and then have the political will to scale them quickly across the country,’ Liu added. ‘This allows China to create jobs and learn quickly.’”

So the old worry of communism may not be too far off – they are in fact stealing jobs from us. But not because they are communists and we are capitalists, but because they are intelligently transitioning to a new green economy and we are busy arguing over whether or not to trust the science.

Note: don’t let my tone make you think I don’t believe the US can transition to a greener economy, far from it. It is just frustrating to be in the one country with a non-functioning congress. If anything, I want you to not let the regressive party (republicans) win seats in this next election – it will make things worse. Vote out the idiots who don’t “believe” in the science!

Related posts:

1. The New Green Economy Day 2: Recap
2. The New Green Economy
3. New Green Economy Day 1: Prologue