Puget Sound Liberals Weekly Newsletter #163

Enhancing Freedom, Opportunity and Cooperation in Puget Sound and Beyond

Through informing and networking Liberals and Liberal Organizations.

 

Our vision is hundreds of thousands of well-informed Puget Sound Liberals working together.

 

     3000 members                                   February 27, 2009                 formerly Lake Hills Liberals                

 

 

 

 

                                                     

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              Table of Contents   * Featured Articles

 

About Puget Sound Liberals

Communication With Our Members

Calendars of Events

Opportunities and Petitions

 

Commentaries from Our Members

Linda Clifton: Our Tax System Is Unstable*

Lisa Plymate: We Need to Restructure Taxes*

Ann Martin: Educate People about Tax Reform*

Linda Clifton: We Need to Set Tax Reform Agenda*

Dorli Rainey: We Need Income Tax Leadership*

Don Smith: We Need a Progressive Taxation Forum*

Rich Austin: Dave Reichert Votes Against Education

Ross Hunter: Criminal Justice Costs & the Budget

 

Liberals and Democrats Links to the Beef

Obama Watch – Week 5*

Our Economic Transition Has Only Gone Halfway*

Evaluating the Financial Condition of Big Banks

Dean Baker: Allow Foreclosures, Let Residents Stay

 

State and Local Links to the Beef

EOI: Fairer Taxes for Washington*

Legislators Should Offer Budget Choices to Voters*

Number of Washington Jobs that Will be Stimulated

 

Nation and World Links to the Beef

Savings Declined during Bubble, Now Increasing.

Like Poor, Rich Vote Against Their Economic Interest

Lower Production, Prices Harms Oil Producers

Newspapers vs. Blogs

Uighurs Should Be Freed from Guantanamo

 

Our Liberal Spirit

Dreaming the Impossible Dream

 

Recommended Books

 

 

 

Our Political Values

 

Our Political Priorities

 

·       Fair Clean Elections and Open Government

·       Fair Taxes and Competent Spending

·       Investment for Productivity

·       Quality Health, Education, Jobs, Income

·       Environmental Protection and Energy Independence

·       Security and Equal Rights

·       Justice and Peace Everywhere

·       International Cooperation and Leadership

 

Conservatives oppose all of these

 

     Let’s End Our National Nightmare

 

         Let’s Restore Our American Dream

 

More on Conservative opposition to our American Dream

 

Washington State’s 5 Major Needs

·       Federal Funding for Health and Education

·       Stop Corporate Abuse

·       Public Campaign Financing

·       Substitute a Progressive Income Tax

·       Replacing Conservative Legislators

 

Quote of the Week

Unless a man undertakes more than he possibly can do, he will never do all that he can.  Henry Drummond (1851-1897)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Communication with Our Members

 

My favorite advocacy groups are ones which best address our major issues.  These include: Economic Opportunity Institute (EOI), Washington Public Campaigns, Washington CAN (Community Action Network), Statewide Poverty Action Network), Sightline, Futurewise, and Environmental Priorities Coalition (and its members.  This issue contains a third commentary concerning EOI’s concerns.  Focusing upon promoting fairer taxes for Washington.

 

 

Calendars of Events                             

 

King County Democrats - LD Meetings            Some 2008 Legislature Lobby Days

Thurston County Progressive Net                  Western Washington Fellowship of Reconciliation

Alliance for Democracy                                Democratic Underground.Com                          

Sierra Club Cascade Chapter Calendar           Cool State Washington

Washington Public Campaigns Calendar          Town Hall Seattle Calendar

Washington State Labor Council                    Whatcom County Peace and Justice Calendar 

Conversation Cafe      Drinking Liberally          Seattle NOW          

Wallingford Neighbors for Peace and Justice – Friday Night Movies      Liberal films on PBS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Calendar of Events

Saturday, March 7 at 10 AM to 2 PM at Renton Carpenters Hall (231 Burnett Avenue North, Renton) – King County Democrats PCO Training, including precinct maps, precinct election history, Votebuilder and more.  RSVP.

Saturday, March 7 at 7 PM at Northlake Universalist Unitarian Church (308 Fourth Ave South, Kirkland) – David Korten addresses Real Security, Community and the New Economy.

Thursday, March 12 at 6 PM at Rainier Unitarian Universalist Center (835 Yesler Way, Seattle) – 2nd of three part discussion series on Islamic Religion in the modern Word, led by Ibrahim Soudy.

Saturday, March 14 at 6 PM at Seattle Center Fisher Pavilion – Futurewise Carnaval Dinner and Fundraiser, including live and silent auctions.  $85.  RSVP by March 6th.

 

Opportunities and Petitions

Opportunities

Useful Websites: contacts, maps, community organizing tools, and more.

Access to jillions of political cartoons.

Download Sightline Institute’s climate policy primer ‘Cap and Trade 101’.  About Sightline.

Watch key moments of Barack Obama’s speech to congress.

 

Petitions and Donations

Tell your Washington State legislators to consider raising taxes to help solve our budget crisis.

Tell President Obama to nationalize failed banks.

Tell Congress to pass a strong climate bill.

Tell Congress to cut militarily useless military budget items.

Tell your senators to pass the 2009 budget bill with funds for family planning.

Tell your senators to support President Obama’s vision to combat global warming.

Tell the pentagon to lift the ban on photographs of caskets containing returning from our wars.

Tell Democracy for America about your political priorities.

 

Commentaries From Our Members

 

Linda Clifton: Unstable Tax System Requires Considering Revenue Options

 

$8 billion is unprecedented, and it demonstrates the volatility and instability of our tax system. Revenue options must be on the table, and even if the LAC didn't consider an income tax, perhaps it needs to be more flexible on this issue now?

 

We need to look at previously granted tax exemptions, but we also need to consider how the very structure of our tax system actually worsens the pain. As people stop spending--I've certainly cut back too--revenues plummet even though more than 90% of us are still working, many of us with the same current income we had before September 2008. Businesses are forced to pay tax on gross revenue even as they may be operating at a loss, which means tax policy actually makes it more difficult to weather this storm. Most unfair of all, those already in poverty and those losing their jobs will have to continue to pay sales tax at ever higher rates, and even if there's no tax on food, there certainly is tax on other daily necessities.

 

Difficult as it may be, the Legislature does have the power to restructure Washington State's taxes, including instituting a flat rate income tax, to add some stability and a fairer revenue source. If such a tax excused the first $25-30K of income, it would enhance the fairness of our tax structure while it did not add to the burden of those at the bottom of the income ladder. Perhaps it is finally time for this state to bite the bullet and take this step.  I'm not sure I understand why such a tax is 1) not partially progressive, at least; 2) a revenue enhancer?  Linda Clifton

 

Lisa Plymate: We Need to Restructure Taxes

 

If we don't restructure taxes, none of the other bills will are pressing for will really matter - except those that are revenue neutral or positive, which aren’t many of them.  The legislators made it clear that simply closing loopholes won't begin to take care of our deficit.  The money from the stimulus package is short-term.  It essentially will help us hold things together temporarily while we work on restructuring our revenue sources - or else!

 

Rosa Franklin is a loner on this.  Instead of deciding it's a lost cause, why don't we try to drum up support?  Someone has to be bold.  This may be politically 'unrealistic,' but who's got their head in the sand if we don't make major changes?   It isn't necessarily our job on the LAC to back whatever the leadership wants, regardless of its merits.  Sometimes we have to go out on a limb.

 

We aren't going to get out of this without new taxes.  We need to begin a dialog to discuss the type of taxation we prefer.  Lisa Plymate

 

Ann Martin: Educate People about Tax Reform

 

I've been holding back because of all the good discussion that's been happening here.  I particularly like the fact that we aren't all just dropping into line and there are some really good strategic considerations being put forward.  That said, and for what it's worth, here are my thoughts:

·         Our sales tax system, which is regressive and subject to economic volatility, isn't working, as evidenced by the $8.3 billion deficit we are now faced with.

·         In all past efforts to institute an income tax, the voters have failed to support an income tax despite evidence such tax would be either be revenue neutral for them, or in many cases would reduce their taxes.  One of the main arguments I've heard countering this assertion is the fear that once the state implements an income tax, they will raise those taxes, i.e., they see this move as a way for the state to get its foot in the door.  They don't even want to open the door.

·         Times of crisis also may be a time of opportunity, but I don't think we should fool ourselves into thinking this will be easy.  The commission headed by Gates did some great work explaining why and how the state's tax structure should be changed.  It got some play, but quickly faded from the collective memory, I fear.  The information contained in that study would likely be a great resource. 

·         Rather than starting out with the conclusion that we need a state income tax, perhaps we could start holding some forums in Seattle and other jurisdictions in King County to discuss the deficit and strategies to address that deficit.  I think people need to hear that the state, unlike the federal government, cannot run a deficit; the budget must be balanced.  How do we do that?  What are the costs?  What are people willing to give up and what kinds of revenue increases are people willing to embrace?  This may be a way to get into the discussion of the income tax without leading off and getting people turned off from the very beginning.  All this will need to be carefully crafted.

·         Cutting out some tax breaks will help, but I agree with Lisa and the legislators we talked to earlier this week that these will not be enough.   Whatever we bring to a discussion, will need to include cuts as well as tax reforms.

·         For all of this we will need to identify some champions - public, private, big, and little.  Bipartisan would be nice, but I'm not sure that is as critical here as in other parts of the state.  However, if we can't get King County overwhelmingly aboard, I don't think we will have a chance across the state.

·         I don't think getting aboard a particular piece of legislation will help us right now.  We can, however, include Senator Franklin in the discussion.

As I said, just some thoughts.   I think we have an incredibly challenging "sales" job ahead of us.  Now may be the opportunity to educate the community on how the state does its budget, how revenues are generated, and how the system needs to change.  Or maybe we can't get it together.  If not now, when?   Ann Martin

 

Linda Clifton: We Need to Set the Agenda for Tax Reform

 

Even if a referendum were filed immediately once the Legislature passed a well-conceived tax restructuring (with a flat rate income tax to avoid the requirement for a constitutional amendment), legislative leadership well strategized, and supported by grassroots like LAC from the get-go would be setting the agenda, defining the debate, and could perhaps prevail in keeping the package in place.

 

Senator Franklin deserves a lot of thanks for keeping the notion alive.  Linda Clifton

 

Dorli Rainey: We Need Leadership to Implement an Income Tax

 

We hear our government officials bemoaning the fact that they have this huge deficit on their hands. Seems to me that the only real option to them is to implement a state income tax, to get behind it and to educate the public about the need for it. I realize that they always promise no new taxes when they run for office because they lack the gumption to educate the public about the finite amount of taxing power in an economic downturn.

 

Our governor is especially culpable because she not only is adamantly against a state income tax, but she also vowed "no new taxes." The wealthiest people in the state still are not paying a comparative share of taxes and reap all of the benefits of low sales taxes.

 

We need to have leadership, not hand wringing from our Legislature. To cut off the neediest people, education and public transportation is the most shortsighted form of government. How will they like to send their children to a hospital without good doctors? Who will teach your children if there are not educators? Outsourcing by tax-avoiding corporations will not solve our problems. We already see the problems at Boeing, which thought it would financially benefit from sending its 787 work all over the world, only to find that parts did not fit and its good workers were lost.  Dorli Rainey

 

Don Smith: We Need a Progressive Taxation Forum

 

Promotion of progressive taxation is the sort of thing that begs for coordination among progressive groups.  Numerous advocacy groups, nonprofits, and interest groups (e.g., teachers) are interested in promoting progressive taxation. The Democratic Party needn't take the lead.  Politically, it might be wiser to let other groups take the heat. 

At 1402 3d Ave, there's a building full of progressive advocacy groups. Washington State Budget & Policy Center (part of Sightline)  and Washington Tax Fairness Coalition  seem particularly relevant.  I'm CCing them.  I'm also CCing someone from WinWin (George Cheung). 

A forum on the topic seems like a good first step.  The Left needs a concerted effort to educate the public about these issues, and I know that sounds elitist. :)  Don Smith

Rich Austin: Dave Reichert Votes against Education

 

A question to rank and file members of the Washington Education Association (WEA): When the WEA endorsed Republican Dave Reichert over Democrat Darcy Burner, it broke ranks with organized labor and the Democratic Party.  What did you get in return?  Here’s what you got:  When Reichert voted “NO” (twice) on the stimulus package you got his single-digit salute.  The stimulus package has billions of dollars in it for education.   What gives?  

 

That would be a good question to ask those who decided to endorse Reichert:  “What gives”?  And while you’re asking that question, ask them why they broke ranks with organized labor.  Rich Austin

 

Representative Ross Hunter: Criminal Justice Costs & the Budget

 

For the past 15 years we've been on a trend of increasing the number of incarcerated people. We now lead the world in the percentage of people in jail. It costs the state an average of about $30,000 per year to put someone in prison, plus all the costs of the courts and police/sheriff. Sometimes this makes a lot of sense, and sometimes it does not. The 2003 Washington State Legislature directed the Washington State Institute for Public Policy (WSIPP) to determine if there are changes to Washington's sentencing structure that could reduce costs without endangering public safety. WSIPP is a non-partisan research agency that does this kind of scientific analysis of policy questions for us.
Click here for more of the story.  Ross Hunter

Liberals and Democrats

 

Obama Watch – Week 5

 

President Obama continues performing his busy agenda, including announcements about stimulating our economy and protecting people from its ravages, foreign policy and visiting our hinterland. 

 

Our Stimulus-investment Package Becomes Law

President Obama traveled to Denver to sign our stimulus-investment package legislation and on to Phoenix to unveil his plan to spend $75 billion of the second $350 billion of the TARP funds to assist 9 million people to avoid foreclosure.  For more.  The trips and previous ones to Michigan and Florida suggest that Obama may frequently visit Main Streets outside of Washington D.C.

 

Fiscal Responsibility Summit

Pledging to bring federal spending and tax collections back into balance after the deficits resulting from attempts to revive our economy, Obama held a White House summit on fiscal responsibility.  Bringing together leading Democratic and Republican lawmakers together with policy experts.  They separated into groups which discussed health-care costs, Social Security, tax reform, defense procurement and the federal budget process, topics which exist apart from our current recession.  While Conservatives would like to cut Social Security, Obama’s priority is to reform health care, military procurement and taxes.  For more.  Once again, Obama is seeking bipartisan solutions.  For more.  Cuts in spending for military hardware were discussed.  But no mention was made of cutting subsidies to oil and other wealthy and powerful businesses. 

 

Yes, We Can.  And Here’s How.

The next day (exactly five weeks after his inaugural address), President Obama delivered a magnificent speech to a joint session of Congress, in which he stated, “We will rebuild, we will recover and the United States of America will emerge stronger than before.”  For more.  For more.  Noting our economic difficulties, he presented a series of goals and actions to be taken.  Priorities include reviving our economy, through restoring credit, preventing foreclosures, infrastructure investments, reforming our environment, health care, and education and restoring fiscal responsibility through cutting ineffective expenditures and subsidies.  For more on eliminating ineffective military expenditures.  For more.  Health care reform will be addressed this year.  For more. 

 

Obama’s expression of obvious truths (not mentioned or denied by the Bush Administration) and presentation of clear goals and actions repeatedly brought our Democratic and even Republican legislators to their feet.  Immediate polls indicated that Obama’s popularity increased from 69 to 79%.  Hopefully this indicates that we can begin to gain confidence in our economy.  85% said they felt more optimistic about our country’s direction after listening to Obama’s speech.  Even our cynical commercial media pundits could find little to criticize.  Once again, Obama has demonstrated the power of his rhetoric.  For more.  With this speech, President Obama has moved the American center to Liberalism.

 

Let’s hope that our congress can address these multiple goals.  And that so many initiatives will make it difficult for K-Street lobbyists to concentrate their fire.  For more.  Campaign finance reform would help.

 

President Obama’s and Joe Biden’s Wednesday’s agenda was typically busy. 

 

Preliminary Budget Proposal

On Thursday, Obama delivered a preliminary view of his proposed 2010 budget, with the full budget proposal to be presented in April.  For more.  For more.  For more.  There will be more commentary on the 2010 budget in next week’s newsletter.

 

Foreign Affairs

Having previously met with Mexico’s President Felipe Calderon, Obama visited Canada to meet with Canadian Prime Minister Stephen Harper.   Japanese Prime Minister Taro Aso was his first foreign guest to visit him in the Whitehouse.  Described as a listening tour (like George Mitchell’s visit to the various Mid-Eastern countries and Richard Holbrook’s visit to Afghanistan, Pakistan and India), Secretary of State Hillary Clinton visited Indonesia, Japan, South Korea and China.  For more.  More on the China visit.  Other special envoys may be chosen for Latin America and other regions.  On talking and listening to Iran.

 

Republican Party May Become Small Enough to Drown in a Bathtub.

Grover Norquist wants to make the government so small it can drown in a bathtub.  But the way Republicans are going, the Republican party may become small enough to drown in a bathtub.  They have responded to President Obama’s bi-partisan approach with an almost unanimous ‘Just say no.’   Several Republican Governors are refusing to take stimulus-investment funds which would create jobs and alleviate misery in their states. 

 

Republican Congresswoman Michele Bachmann said that one of her excuses for 'just saying no' to President Obama's economic recovery bill was because "we're running out of rich people in this country."  Republican Senator Shelby has questioned whether President Obama is an American citizen.  Louisiana’s Republican Governor Bobby Jindal’s response to President Obama’s speech to congress was weird.  He indicated that Republicans support the things that Obama had just promoted, while accusing Democrats of opposing them.  9000 Conservative activists at the annual Conservative Political Action Conference (CPAC) are listening to their most Conservative leaders discuss how to repackage the same old stagnant ideas.  Let’s win the remaining red states in 2006. 

 

Washington State Has Become an Obama Administration Farm Team

Gary Locke for Commerce Secretary.  Ron Sims for Housing and Urban Development Deputy Secretary.  Seattle Police Chief Gil Kerlikowske to head the Office of National Drug Control Policy, a Cabinet-level position otherwise known as the drug czar.  And ethnic diversity with Chinese, African and Polish heritages. 

 

Our Economic Transition Has Only Gone Halfway

 

We need to change from our present Borrow, Consume and Speculate mindset and actions to Earn, Conserve and Invest mindset and actions, similar to that which we held following World War II.  Having lost many of our speculative housing and stock market gains, we are borrowing, consuming and speculating less.  Perhaps not just temporarily. 

 

But we still have not increased our workers’ earnings as a proportion of their production.  We need to increase our minimum wage, our earned income tax credit, the ease with which workers can unionize, mandate independent boards of directors who will restrict top management pay, and close tax loopholes which encourage companies to earn more untaxed profits, at the expense of their employees.

While some of us are conserving, most of us are not.  Shifting our jobs (FICA) tax to a value added tax would encourage employment and discourage consumption.  To keep our economy going, we need more public and private investment, which we have only begun to do. 

 

Evaluating the Financial Condition of Big Banks’

 

In what are called ‘stress tests’, our Obama Administration is examining the books of our 20 largest banks to evaluate how their viability under various recession scenarios.  For more.  This will provide better information for deciding whether to bail them out, to what extent, and in what way.  There has been a reluctance to reveal the condition of many of these banks, for fear that their stockholders would flee, leaving them in worse shape.  But enough is now known (and with the threat that our government make take over the banks) that investors are fleeing and their stock prices are falling severely.  The Dow Jones industrial average is now equal to what it was eleven years ago in 1997, down almost half from in peak.

 

Knowing the condition of the banks won’t remove the tension between bailing out stockholders to save mutual funds, pension funds, 401(k)s that have wide spread ownership or not bailing them out to protect our taxpayers.  Since many of us wear two hats, we stand to lose to some extent either way.

Nationalizing our large insolvent banks temporarily as the Federal Deposit Insurance Corporation is doing with smaller banks will allow us to clean them up at the expense of stockholders with little risk to our taxpayers.  David Sirota calls for nationalizing banks.

 

I should reveal that I have never owned directly or indirectly (through a mutual, pension or 401(k)) even a single stock.  Both my father and I have regarded owning stocks as primarily speculation which serves little public purpose.  We need a stock market to allow people to sell stocks.  But there should be a transaction tax and tax consequences for speculators who sell stocks after only holding them a short time.  I have little to lose if financial companies are allowed to fail.  Dave Thomas

 

Dean Baker: Allow Foreclosures, but Let Resident’s Stay as Tenants.

 

“We know that the people who run Citigroup, J.P. Morgan, Wells, and other major financial institutions may not be the sharpest knives in the drawer, but how much do taxpayers have to cough up to make up for their ineptitude? David Leonhardt's discussion of housing bailout plans never seems to consider the possibility that we would just let large numbers of foreclosures occur and let the banks eat their losses.

Yes, many, if not most, of the banks will go under. So what? Why should taxpayers support convoluted schemes to protect these bank executives and their shareholders from their own ineptitude. We can protect homeowners by simply giving them the right to stay in their home as renters following foreclosure. It's a simple, costless and bureaucracy-free solution, but it screws the banks. So, the folks in Washington and the media apparently are not interested.”

 

Here’s the Beef

President Obama is popular among Canadians.  Wasn’t so with President Bush.  For more.

Lots of protests are expected at April G30 Summit.

90% of the public wants Bush Administration officials to pay for their crimes.

President Obama should seek non-partisan involvement, while denouncing Conservative ideology.

Sierra Club appreciates Obama Administration environmental decisions and funding.

George Lakoff analyzes President Obama’s communication and moral values.  For more.

League of Women Voters praises progress toward passing Washington D.C. voting rights bill.

 

State and Local

 

Economic Opportunity Institute: Fairer Taxes for Washington

 

Of all 50 states, Washington State has the most unfair tax system.  Our poorest people pay up to 18% of their incomes in taxes while our wealthiest people pay as little as 3%.  Due to our reliance on sales, excise and property taxes, with no income tax.   Our Economic Opportunity Institute (EOI) fearlessly advocates taxing higher incomes. 

 

A tax on incomes over $200,000 would only affect the 4% richest households, raising $2 billion per biennium at 3% and $3.4 billion at 5%.  Note that this is a progressive flat tax of 5% with a deduction of $200,000.

 

Paired with reductions in regressive taxes, it would make our tax system fairer.  Lowering the state portion of the sales tax from 6.5% to 6% would cost $1.3 billion a biennium and save the typical Washington family $60 per year.  Cutting the state portion of the property tax in half would cost $1.5 billion a biennium and save the average homeowner $330 annually.  With the income tax set at 5% and making these cuts in our sales and property taxes would still leave an increase of $600 million per year.  96% of our people would pay fewer taxes.

 

A strategy for implementing a progressive income tax is to introduce an initiative which introduces the income tax, reduces sales and property taxes and dedicates extra revenues to education.  If the initiative passes, its constitutionality would be tested.  If it was ruled unconstitutional, our legislature might follow the will of our voters to launch a constitutional change.

 

Note what our constitution states:

Washington State Constitution: Article VII, Revenue and Taxation, Section 1 Taxation. 

 The power of taxation shall never be suspended, surrendered or contracted away. All taxes shall be uniform upon the same class of property within the territorial limits of the authority levying the tax and shall be levied and collected for public purposes only. The word "property" as used herein shall mean and include everything, whether tangible or intangible, subject to ownership. 

Income above a certain level may be a single class of property.  If so, a flat tax applying to certain incomes would be constitutional.

 

To pass an initiative would take some time, some effort and leadership and support from such organizations as our educational associations, labor unions and other Liberal organizations.  It’s time for them to step up to the plate to ensure that we don’t continue to starve our people with unfair taxes and inadequate services, especially during economic downturns.  Dave Thomas

 

Our EOI has also analyzed 576 tax breaks, including ones which benefit all or most citizens and others which benefit narrow special interests.  In the 5 legislative sessions from 2003 through 2007, our legislature passed 77 business tax breaks that reduce state revenue in the 2007-2009 biennium by nearly $600 billion.  There is little accountability for whether these business tax breaks benefit our public.  To retain and attract business, it would be better to invest the revenues (which these tax breaks cost us) in high quality education and other infrastructure. 

 

Legislators Should Offer Budget Choices to Voters

 

Our Washington State budgets have been very lean, with virtually no fat, as indicated by the difficulty in making any cuts in present programs due to our declining revenues.  Our education system is under funded as evidenced by the outcomes and comparison with other states.  In competition with Dino Rossi, Governor Christine Gregoire has committed to not raising taxes.

 

To avoid devastating our state, we need additional revenue, as an increasing number of people and some legislators are suggesting.  A group of 28 state economists and public policy experts have signed a letter calling for consideration of revenue increases by the Governor and state Legislature to address the growing budget crisis.   Under consideration is approving a Draconian budget and then offering the voters one or more choices, at least one of which would raise taxes.  Our present tax system is the most regressive in the nation.  Raising present taxes would produce more unfairness.

 

To raise more revenue and reduce unfairness, we need to add a progressive income tax, while lowering some of our existing taxes.  I commented on this continually last year.  See all these comments in one document.  My preference is a flat income tax with a large deduction equal at least to medium income.  Due to the deduction, this flat income tax is very progressive.  The tax rate can be set to produce the desired revenue to provide our people access to quality services, while reducing our sales, excise and property taxes.  The deduction and flat tax rate can be set such that 80-90% of our people will pay lower total taxes, the same argument that Barack Obama has used for his tax proposals which include raising taxes on our wealthy.

 

As noted in the preceding commentary, an income tax initiative might be passed which might be declared constitutional.  A constitutional amendment would otherwise be necessary, requiring approval by 2/3rds of our voters.  This may be impossible in the near term, but is ultimately necessary as demonstrated by the repeated attempts to implement an income tax during the last 70 years and our current budgetary crisis.  Provoking a discussion now will be beneficial to making progress toward eventually reforming our tax system. 

 

An added advantage will be to smoke out various Liberal organizations, which have resolutely refused to support or even mention an income tax, including educational and labor groups (which are severely harmed by our present tax system), the Tax Fairness Coalition, Statewide Poverty Action Network (for more) and newcomers: Fuse and Sound Alliance.  An examination of blogs on the Pacific Northwest Portal reveals only one which suggests a tax increase and it doesn’t mention an income tax. 

 

 

Present supporters of an income tax include the Economic Opportunity Institute and Washington CAN (Community Action Network).  Other organizations should join them, including even our Democratic Party which can afford to spend some of its political capitol.  Having the most to risk, our legislators should not have to take the lead in promoting an income tax.  The leadership should come from advocacy organizations, including present supporters and others who are failing to address this important issue, even though their members are the ones most harmed by our present tax system.  Dave Thomas

 

Remember that when Martin Luther King asked Lyndon Johnson to support a voting rights act, Johnson replied that he should provide the grassroots pressure to make me do it.  As told by Bill Moyers:

 

“As the pressure intensified on each side, Johnson wanted King to wait a little longer and give him a chance to bring Congress around by hook or crook. But Martin Luther King said his people had already waited too long. He talked about the murders and lynchings, the churches set on fire, children brutalized, the law defied, men and women humiliated, their lives exhausted, their hearts broken. LBJ listened, as intently as I ever saw him listen. He listened, and then he put his hand on Martin Luther King's shoulder, and said, in effect: "OK. You go out there Dr. King and keep doing what you're doing, and make it possible for me to do the right thing." Lyndon Johnson was no racist but he had not been a civil rights hero, either. Now, as president, he came down on the side of civil disobedience, believing it might quicken America's conscience until the cry for justice became irresistible, enabling him to turn Congress. So King marched and Johnson maneuvered and Congress folded.”

 

The passage of the Voting Rights Act of 1965 was an example of bi-partisanship as was the passage of the Civil Rights Act of 1964.  It also led to Democrats converting to Republicans throughout the south, leading to Republican domination of our government.  But now Liberal Democrats have regained control without including Trojan horse southern Conservatives.

 

Number of Jobs which Stimulus-Investment Package Will Produce

 

Washington

75,000

 

Congressional District 1  Washington

     8,500

 

Congressional District 2  Washington

     8,600

 

Congressional District 3  Washington

     8,800

 

Congressional District 4  Washington

     8,000

 

Congressional District 5  Washington

     8,100

 

Congressional District 6  Washington

     7,800

 

Congressional District 7  Washington

     8,600

 

Congressional District 8  Washington

     9,300

 

Congressional District 9  Washington

     8,100

 

Source: Stimulus Employment Projections: Romer, Christina and Jared Bernstein. "The Job Impact of the American Recovery and Reinvestment Plan." January 9, 2009.  Note: 75,000 is 1/50th of 3,750 jobs nationwide.

 

Here’s the Beef

Our budget deficit is 8% of our budget, 13th highest among states.

Washington economists call for tax increases to partially balance budget.

Former Republican Governor John Spellman says tax increases are necessary.

Senator Patty Murray tells us what’s in the stimulus-investment package for us.

Governor Christine Gregoire will be glad to take stimulus money that Louisiana doesn’t want.

Washington State Labor Council says lawsuits are about bargaining rights, not greed.

King County Democrats Legislative Action Agenda  Lots of good stuff, but mostly ducks budget issue.

Planning high density housing near transit stops is controversial.  For more.

Business lobbyists are destroying Governor Gregoire’s emissions cap and trade proposal.

 

Nation and World  

 

Savings which Declined during Bubble, Have Since Increased.

 

 

Note that bubbles cause savings to decline as more people borrow to consume and speculate.  When a bubble collapses, savings increase.

 

Like Poor, Rich Vote Against Their Economic Interest

 

Thomas Frank’s book, What’s the Matter with Kansas?  How Conservatives Won the Heart of America showed us that working class men and women often vote against their economic interest.  So do our wealthy.  They vote for Conservatives who cut their taxes.  But these tax cuts, excessive spending and redistribution of income to our wealthy also wreck our economy.  The result is that investments and speculations collapse in value.  The wealthy people often end up losing more of their wealth and income than they gain through having lower taxes. 

 

Besides voting for tax cuts, our wealthy people are influenced by ideology, even when it is contradicted by evident facts.  For example, business executives find their businesses uncompetitive due to health care costs, not incurred by foreign competitors.  But the vote against government paid health insurance anyway, deeming it to be socialistic.  Those who can make money.  But many of them also waste it and loose it.

 

Declining Production and Lower oil prices harm Russia, Iran and Venezuela

 

Russia, Iran, Venezuela and other oil producing countries are failing to maintain and improve their production facilities, resulting in declines in their production.  For more.  With lower oil prices, they are receiving fewer revenues, causing economic and political problems.  For more.  Unless these trends reverse, these countries will loose political influence.  In addition once our global economy recovers, oil prices will rise faster than they would otherwise.  For more.

 

Newspapers vs. Blogs

 

Many bloggers are poor researchers and commentators, full of sound and fury, signifying nothing.   But some do excellent research and reporting, on a par with the best newspaper reporters.  And many reporters are mediocre, presenting superficial reports which lack sufficient and key details necessary to understanding.  That amateurs can often do excellent reporting is demonstrated by wikipedia.  Some monthly and weekly magazines present excellent research, but others have succumbed to presenting People Magazine type gossip. 

 

I read many magazines, scan our local newspaper each day, and surf bloggers several times a week.  I receive and read many emails from advocacy groups whose email lists I have joined.  These give me ideas.  To research them, I use Google, including wikipedia and what ever else I can find. Dave Thomas

 

Uighurs Should Be Freed from Guantanamo

 

Our Guantanamo prisoners include 17 Chinese Uighurs, who are viewed by China as terrorists; but who have no animosity toward our United States.  I don’t know about these particular Uighurs; but Uighurs (who live in Northwestern China) range from simply wanting more autonomy to wanting to separate from China.  They range from hoping to peacefully negotiate to being willing use terrorist tactics.

 

We won’t send them back to China where they may be tortured.  China will object if we don’t send them back.  Nevertheless, we should bring them to the United States and free them.  China may object; but our countries have too many larger interests in common for that to harm our relations much.

 

Here’s the Beef

Is Starbucks a leading indicator of our economy?

Americans don’t want to hear bad news, even if it is the truth.

K-Street conspires to stop market reforms.

Securities and Exchange Commission's Inspector General David Kotz seeks whistleblowers.

Collapse of the housing bubble has reduced the housing wealth of homeowners by almost $6 trillion.

Falling home prices have left baby boomers with little savings for retirement.

Economic recovery must include everyone.  Creating jobs isn’t enough.

Maryland trains people for green jobs, weatherizing dwellings.

Small towns with few employers are suffering the most from our economic depression.

Can people be deterred from coming to our metropolitan area, by offering advantages to rural areas?

Manufactured homes provide affordable green housing.  

This year, health care costs will equal $8000 per person.

Publicly funded family planning prevents 2 million unintended pregnancies and 800,000 abortions.

President Obama should reassure people that social security doesn’t need saving.  It will be there.

$8 billion for high speed rail won’t build rail as fast as rail in other countries.

We need to invest in railroads to get dangerous trucks off the roads.

Instead of bailing out our auto companies, investments should be made in mass transit.

Some steps to take before nationalizing banks.

Some jobs are saved by furloughing workers, making them take unpaid time off.

Help employment by subsidizing employers who reduce hours with paid time off.

Separation of church and state requires government to honor civil unions, but not marriages.

Homeland Security Department Secretary Janet Napolitano continues immigration enforcement.

There’s no change yet from President Bush’s foreign policy toward Latin America.

Iranian women are gradually gain more rights.

Secular nationalist won the Iraqi elections, making it safer for Americans to leave.

Amnesty International urges President Obama to stop sending weapons to Israel.

 

Our Liberal Spirit

 

Dreaming the Impossible Dream

 

I suspect that most of us have dreamed impossible dreams.  I remember wanting to be a country gentleman intellectual similar to Newton and Darwin.  This evolved into wanting to be a human database storing huge amounts of knowledge concerning a wide variety of subjects.  It was only as I began forgetting knowledge as fast as I acquired it that realized the impossibility of my dream.

 

But my impossible dreams have motivated much of my thoughts and activities.  Unlike many people who are primarily oriented to obtaining career success and wealth, I have given a higher priority to study.  Reading.  Charting, outlining and organizing what I learn.  Exploring new subjects, beginning with purchasing and reading books and establishing files.  It is impossible to understand my life without understanding my impossible dreams.

 

I suspect that most of you have pursued impossible dreams, many originating during your childhood.  Like me, you may not have consciously considered your impossible dreams.  Do so, and you may better understand your life.  Your may to find that you have both benefited from and suffered from them.  Particularly as you become older, you may find yourself tempering them.  Dave Thomas

 

Recommended Books – See our list of books for liberals

Dean Baker, 2009, Plunder and Blunder.  The Rise and Fall of the Bubble Economy

Kevin Phillips, 2008, Bad Money, Reckless Finance, Failed Politics and the Global Crisis of American Capitalism

Charles R. Morris, 2008, The Trillion Dollar Meltdown, Easy Money, High Rollers, and the Great Credit Crash

Paul Muolo and Mathew Padilla, 2008, Chain of Blame, How Wall Street Caused the Mortgage and Credit Crisis

 

I have just read Dean Baker’s books.  The others have been described before.  All are excellent.  While Kevin Phillips’ and Charles Morris’s books are more detailed, Dean Baker’s Plunder and Blunder is very easy to read, with every sentence important and well stated.  Reading any or all three of these books will make you more knowledgeable about our bubbles and their collapse than virtually all politicians and many academicians.  Another housing and credit bubble whistleblower was Nouriel Roubini.  For more.

 

Dean Baker, 2007, The United States since 1980

Joseph Stiglitz, 2003, The Roaring Nineties

Albert T. Summers, 1988, The U.S. Economy Demystified

For a more comprehensive view of our economy since World War II, read these three books.  Economics is very complex.  But these good writers present very informative simple overviews.

 

 

 

 

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