Friday, August 26, 2011

King, in word and stone

Charles Krauthammer
Charles Krauthammer
Opinion Writer

It is one of the enduring mysteries of American history — so near-providential as to give the most hardened atheist pause — that it should have produced, at every hinge point, great men who matched the moment. A roiling, revolutionary 18th-century British colony gives birth to the greatest cohort of political thinkers ever: Jefferson, Adams, Madison, Hamilton, Washington, Franklin, Jay. The crisis of the 19th century brings forth Lincoln; the 20th, FDR.

Equally miraculous is Martin Luther King Jr. Black America’s righteous revolt against a century of post-emancipation oppression could have gone in many bitter and destructive directions. It did not. This was largely the work of one man’s leadership, moral imagination and strategic genius. He turned his own deeply Christian belief that “unearned suffering is redemptive” into a creed of nonviolence that he carved into America’s political consciousness. The result was not just racial liberation but national redemption.


Such an achievement, such a life, deserves a monument alongside the other miracles of our history — Lincoln, Jefferson and FDR — which is precisely where stands the new Martin Luther King Jr. Memorial. It opened Monday on the Tidal Basin, adjacent to Roosevelt’s seven acres, directly across from Jefferson’s temple, and bisecting the invisible cartographic line connecting the memorials for Jefferson and Lincoln, authors of America’s first two births of freedom, whose promises awaited fulfillment by King.

The new King memorial has its flaws, most notably its much-debated central element, the massive 30-foot stone carving of a standing, arms crossed, somewhat stern King. The criticism has centered on origins: The statue was made in China by a Chinese artist. The problem, however, is not ethnicity but sensibility. Lei Yixin, who receives a lifetime government stipend, has created 150 public monuments in the People’s Republic, including several of Chairman Mao. It shows. His flat, rigid, socialist realist King does not do justice to the supremely nuanced, creative, humane soul of its subject.

The artistic deficiencies, however, are trumped by placement. You enter the memorial through a narrow passageway, emerging onto a breathtaking opening to the Tidal Basin, a tranquil, tree-lined oasis with Jefferson at the far shore. Here stands King gazing across to the Promised Land — promised by that very same Jefferson — but whose shores King himself was never to reach. You are standing at America’s Mount Nebo. You cannot but be deeply moved.

Behind the prophet, guarding him, is an arc of short quotations chiseled in granite. This is in keeping with that glorious feature of Washington’s monumental core — the homage to words (rather than images of conquest and glory, as in so many other capitals), as befits a nation founded on an idea.

The choice of King quotations is not without problems, however. There are 14 quotes, but in no discernible order, chronological or thematic. None are taken from the “I Have a Dream” speech for understandable reasons of pedagogical redundancy. Nevertheless, some of the quotes are simply undistinguished, capturing none of the cadence and poetry of King’s considerable canon.

More troubling, however, is the philosophical narrowness. The citations dwell almost exclusively on the universalist element of King’s thought — exhortations, for example, that “our loyalties must transcend our race, our tribe, our class, and our nation; and this means we must develop a world perspective,” and “every nation must now develop an overriding loyalty to mankind as a whole in order to preserve the best in their individual societies.”

Transcending all forms of sectarianism to achieve a common humanity was, of course, a major element of King’s thought. But it was not the only one. Missing is any sense of King’s Americanness. Indeed, the word America appears only once, and only in the context of stating his opposition to the Vietnam War. Yet as King himself insisted, his dream was “deeply rooted in the American dream.” He consciously rooted civil rights in the American story, not just for tactical reasons of enlisting whites in the struggle but because he deeply believed that his movement, while fiercely adversarial, was quintessentially American, indeed, a profound vindication of the American creed.

And yet, however much one wishes for a more balanced representation of King’s own creed, there is no denying the power of this memorial. You must experience it. In the heart of the nation’s capital, King now literally takes his place in the American pantheon, the only non-president to be so honored. As of Aug. 22, 2011, there is no room for anyone more on the shores of the Tidal Basin. This is as it should be.


Massachusetts State Police Shutdown Twelve-Year-Old’s Green Tea Stand

Well it’s not exactly lemonade but it’ll do. Christopher Carr’s twelve-year-old stepson had set up a smoothie and green-tea stand near their house when they moved back to the States after the earthquake in Japan. After they’d set up shop, Christopher took his daughter back inside to get some lunch, leaving his son to manage things at the stand.


After my daughter finished eating and as we approached the end of our street where the drink stand was, I could see from afar that the sign was pulled up and put away, the cooler was shut with everything which we had so carefully arranged on the tray table put away, and my stepson was huddled up and sitting on the rail, staring out between his knees at the ocean.

“What happened?” I asked when I got down there. I wondered if he had gotten discouraged that no one was buying his drinks or maybe that no one could understand his accent. Or maybe he was just lonely down there by himself.

“The police told me to pack up and go home,” he said. Or, more accurately I discovered after making a few phone calls, the town police swung by and wished him good luck, and then afterwards, “someone in brown” came by and made my stepson stop selling drinks at the end of our street, because this required a permit, and my stepson did not have a permit to sell drinks.

After hearing a little more from my stepson and talking to the town police, I discovered that it was the Massachusetts State Police that broke up our lemonade stand. After attempting several times to contact the State Police, I reached only answering machines. Apparently, having someone on call on weekends is not in the Massachusetts State Police’s budget (but breaking up lemonade stands is somehow cost-effective).

This may be the first case of state police shutting down a kid’s green-tea stand, but the list of lemonade stands being closed down by various government agencies is long and growing.

Lemonade stand shutdowns may not be the same violation of liberty that no-knock botched SWAT raids or the incarceration of innocent people are, but they reflect the same mentality. It’s the mentality that needs reforming. No simple task.

For a list of lemonade shutdowns go here.

Why TV’s ‘Parks and Recreation’ should tackle the lemonade shutdown issue.

Follow me on Twitter.

[Update]

A number of commenters have noted that the Massachusetts State Police do not wear brown uniforms. I am trying to get clarification on this point from the blogger whose post I link to. It is possible that this was some other state agency or a plain-clothes policeman. Obviously there was some confusion around the events, so it’s hard to say for sure. I don’t doubt the facts of this case, however. Much more likely there was some miscommunication between either the son and father, or the city police.

Also, remember this is the description of police by a 12-year-0ld boy. Eyewitness testimony is notoriously unreliable. It’s quite possible he had the colors wrong.


Guitar Frets: Environmental Enforcement Leaves Musicians in Fear

[FELDEN] The Commercial Appeal/Zuma Press

Agents from the U.S. Fish and Wildlife Service pore through the workshop at the Gibson Guitar factory on Wednesday morning.

Federal agents swooped in on Gibson Guitar Wednesday, raiding factories and offices in Memphis and Nashville, seizing several pallets of wood, electronic files and guitars. The Feds are keeping mum, but in a statement yesterday Gibson's chairman and CEO, Henry Juszkiewicz, defended his company's manufacturing policies, accusing the Justice Department of bullying the company. "The wood the government seized Wednesday is from a Forest Stewardship Council certified supplier," he said, suggesting the Feds are using the aggressive enforcement of overly broad laws to make the company cry uncle.

It isn't the first time that agents of the Fish and Wildlife Service have come knocking at the storied maker of such iconic instruments as the Les Paul electric guitar, the J-160E acoustic-electric John Lennon played, and essential jazz-boxes such as Charlie Christian's ES-150. In 2009 the Feds seized several guitars and pallets of wood from a Gibson factory, and both sides have been wrangling over the goods in a case with the delightful name "United States of America v. Ebony Wood in Various Forms."

The question in the first raid seemed to be whether Gibson had been buying illegally harvested hardwoods from protected forests, such as the Madagascar ebony that makes for such lovely fretboards. And if Gibson did knowingly import illegally harvested ebony from Madagascar, that wouldn't be a negligible offense. Peter Lowry, ebony and rosewood expert at the Missouri Botanical Garden, calls the Madagascar wood trade the "equivalent of Africa's blood diamonds." But with the new raid, the government seems to be questioning whether some wood sourced from India met every regulatory jot and tittle.

It isn't just Gibson that is sweating. Musicians who play vintage guitars and other instruments made of environmentally protected materials are worried the authorities may be coming for them next.

If you are the lucky owner of a 1920s Martin guitar, it may well be made, in part, of Brazilian rosewood. Cross an international border with an instrument made of that now-restricted wood, and you better have correct and complete documentation proving the age of the instrument. Otherwise, you could lose it to a zealous customs agent—not to mention face fines and prosecution.

John Thomas, a law professor at Quinnipiac University and a blues and ragtime guitarist, says "there's a lot of anxiety, and it's well justified." Once upon a time, he would have taken one of his vintage guitars on his travels. Now, "I don't go out of the country with a wooden guitar."

The tangled intersection of international laws is enforced through a thicket of paperwork. Recent revisions to 1900's Lacey Act require that anyone crossing the U.S. border declare every bit of flora or fauna being brought into the country. One is under "strict liability" to fill out the paperwork—and without any mistakes.

It's not enough to know that the body of your old guitar is made of spruce and maple: What's the bridge made of? If it's ebony, do you have the paperwork to show when and where that wood was harvested and when and where it was made into a bridge? Is the nut holding the strings at the guitar's headstock bone, or could it be ivory? "Even if you have no knowledge—despite Herculean efforts to obtain it—that some piece of your guitar, no matter how small, was obtained illegally, you lose your guitar forever," Prof. Thomas has written. "Oh, and you'll be fined $250 for that false (or missing) information in your Lacey Act Import Declaration."

Consider the recent experience of Pascal Vieillard, whose Atlanta-area company, A-440 Pianos, imported several antique Bösendorfers. Mr. Vieillard asked officials at the Convention on International Trade in Endangered Species how to fill out the correct paperwork—which simply encouraged them to alert U.S. Customs to give his shipment added scrutiny.

There was never any question that the instruments were old enough to have grandfathered ivory keys. But Mr. Vieillard didn't have his paperwork straight when two-dozen federal agents came calling.

Facing criminal charges that might have put him in prison for years, Mr. Vieillard pleaded guilty to a misdemeanor count of violating the Lacey Act, and was handed a $17,500 fine and three years probation.

Given the risks, why don't musicians just settle for the safety of carbon fiber? Some do—when concert pianist Jeffrey Sharkey moved to England two decades ago, he had Steinway replace the ivories on his piano with plastic.

Still, musicians cling to the old materials. Last year, Dick Boak, director of artist relations for C.F. Martin & Co., complained to Mother Nature News about the difficulty of getting elite guitarists to switch to instruments made from sustainable materials. "Surprisingly, musicians, who represent some of the most savvy, ecologically minded people around, are resistant to anything about changing the tone of their guitars," he said.

You could mark that up to hypocrisy—artsy do-gooders only too eager to tell others what kind of light bulbs they have to buy won't make sacrifices when it comes to their own passions. Then again, maybe it isn't hypocrisy to recognize that art makes claims significant enough to compete with environmentalists' agendas.




Gibson Guitar CEO: “Obama Justice Department Wants Us to Just Shut Our Doors & Go Away”

Posted by Jim Hoft on Friday, August 26, 2011, 3:36 PM


Henry Juszkiewicz, the CEO of Gibson Guitars, Inc. was on The Dana Loesch Show this afternoon. Gibson is under attack by the the Obama Justice Department for accusations that the company broke American Indian laws.

Juszkiewiz said the government suggested that the company’s use of unfinished wood from India is illegal, not because of U.S. law, but because of the Justice Department’s interpretation of a law in India. The Holder Justice Department raided at least two Gibson manufacturing plants this week forcing hundreds of workers off their jobs. Juszkiewiz says the company lost a million dollars this week.

Finally, Henry Juszkiewicz told Dana, “The Obama Justice Department wants us to just shut our doors and go away.” He says he will continue to fight for the Gibson company and its workers.

Juszkiewicz held a press conference yesterday in front of the Gibson headquarters.





The Obama Justice Department confiscated over $500,000 in materials back in 2009. Gibson is going to court on Monday to discuss a previous request for the government to return the property.

More… Gibson Guitar CEO: “We’re Being Targeted.”

Still More… Tom W. added this:

Gibson is the only guitar company targeted by the Obama DOJ under the
Lacey Act.

Tennessee is a right-to-work state.

Fender, Taylor, Rickenbacker, Danelectro, Carvin, MusicMan, and ESP
are in California;
Spector is in New York;
Martin is in Pennsylvania;
Guild, Ovation, and Hamer are in Connecticut;
Alvarez is in Missouri;
B.C. Rich is in Kentucky;
Heritage is in Michigan;
Washburn is in Illinois.

All are forced-union states.

Peavey is another guitar and electronics company, located in the
right-to-work state of Mississippi.

Since 2009, Peavey has been the target of multiple lawsuits filed by
a competitor, MUSIC Group, which alleges that Peavy products fail to
meet federal safety and emissions standards.

Friday, August 19, 2011

Number of Green Jobs Fails to Live Up to Promises

Adithya Sambamurthy/The Bay Citizen

Rosa Ore practiced installing a solar panel at Richmond BUILD, which gives low-income residents training in green jobs.

Flanked by a cadre of local political leaders, Mayor Chuck Reed of San Jose used a ribbon-cutting ceremony for a solar power company last week to talk up the promise of the green economy.

Mr. Reed called the opening of the new headquarters of SolFocus, which produces large, free-standing solar panels, an “enormously important” development for the city’s economy.

“Clean technology is the next wave of innovation that Silicon Valley needs to capture,” the mayor said, noting that the San Jose City Council had committed to increasing the number of “green jobs” in the city to 25,000 by 2022. San Jose currently has 4,350 such jobs, according to city officials.

But SolFocus assembles its solar panels in China, and the new San Jose headquarters employs just 90 people.

In the Bay Area as in much of the country, the green economy is not proving to be the job-creation engine that many politicians envisioned. President Obama once pledged to create five million green jobs over 10 years. Gov. Jerry Brown promised 500,000 clean-technology jobs statewide by the end of the decade. But the results so far suggest such numbers are a pipe dream.

“I won’t say I’m not frustrated,” said Van Jones, an Oakland activist who served briefly as Mr. Obama’s green-jobs czar before resigning under fire after conservative critics said he had signed a petition accusing the Bush administration of deliberately allowing the Sept. 11 terrorist attacks, a claim Mr. Jones denies.

A study released in July by the non-partisan Brookings Institution found clean-technology jobs accounted for just 2 percent of employment nationwide and only slightly more — 2.2 percent — in Silicon Valley. Rather than adding jobs, the study found, the sector actually lost 492 positions from 2003 to 2010 in the South Bay, where the unemployment rate in June was 10.5 percent.

Federal and state efforts to stimulate creation of green jobs have largely failed, government records show. Two years after it was awarded $186 million in federal stimulus money to weatherize drafty homes, California has spent only a little over half that sum and has so far created the equivalent of just 538 full-time jobs in the last quarter, according to the State Department of Community Services and Development.

The weatherization program was initially delayed for seven months while the federal Department of Labor determined prevailing wage standards for the industry. Even after that issue was resolved, the program never really caught on as homeowners balked at the upfront costs.

“Companies and public policy officials really overestimated how much consumers care about energy efficiency,” said Sheeraz Haji, chief executive of the Cleantech Group, a market research firm. “People care about their wallet and the comfort of their home, but it’s not a sexy thing.”

Job training programs intended for the clean economy have also failed to generate big numbers. The Economic Development Department in California reports that $59 million in state, federal and private money dedicated to green jobs training and apprenticeship has led to only 719 job placements — the equivalent of an $82,000 subsidy for each one.

“The demand’s just not there to take this to scale,” said Fred Lucero, project manager at Richmond BUILD, which teaches students the basics of carpentry and electrical work in addition to specifically “green” trades like solar installation.

Richmond BUILD has found jobs for 159 of the 221 students who have entered its clean-energy program — but only 35 graduates are employed with solar and energy efficiency companies, with the balance doing more traditional building trades work. Mr. Lucero said he considered each placement a success because his primary mission was to steer residents of the city’s most violent neighborhoods away from a life of crime.

At Asian Neighborhood Design, a 38-year old nonprofit in the South of Market neighborhood of San Francisco, training programs for green construction jobs have remained small because the number of available jobs is small. The group accepted just 16 of 200 applicants for the most recent 14-week cycle, making it harder to get into than the University of California. The group’s training director, Jamie Brewster, said he was able to find jobs for 10 trainees within two weeks of their completing the program.

Mr. Brewster said huge job losses in construction had made it nearly impossible to place large numbers of young people in the trades. Because green construction is a large component of the green economy, the moribund housing market and associated weakness in all types of building are clearly important factors in explaining the weak creation of green jobs.

Advocates and entrepreneurs also blame Washington for the slow growth. Mr. Jones cited the failure of so-called cap and trade legislation, which would have cut carbon pollution and increased the cost of using fossil fuel, making alternative energy more competitive. Congressional Republicans have staunchly opposed cap-and-trade.

Mr. Haji of the Cleantech Group agrees. “Having a market mechanism that helps drive these new technologies would have made a significant difference,” he said. “Without that, the industry muddles along.”

Still, California has forged ahead with environmental legislation, including its own version of cap-and-trade that is part of the landmark anti-global-warming law AB 32 enacted in 2006. Another measure, signed into law earlier this year by Mr. Brown, requires utilities to generate at least a third of all their electricity from renewable sources by 2020.

State government officials said they were still banking on these new laws to propel demand for 20,000 megawatts of renewable energy, the cornerstone of Mr. Brown’s green jobs plan. In June, the governor attended the groundbreaking of the 3,470-megawatt Blythe Solar Power Project in the Mojave Desert, which backers say will create 5,390 construction jobs and 400 permanent positions.

The 600-turbine Alta Wind Energy Center southeast of Bakersfield is set to become the world’s largest wind farm when it is completed in 2015. Terra-Gen, a company based in New York that has received more than $300 million in private investment from Google and Citi for the Alta farm, says it will bring 1,020 megawatts on line by the end of the year. But even when it is fully up and running, the wind farm will bring only 50 permanent operations and maintenance jobs to rural Kern County, the company said.

Both the possibilities and limitations of the green economy were on display at SolFocus’s ribbon-cutting in San Jose.

A SolFocus spokeswoman, Nancy Hartsoch, said the company was willing to pay a premium for the highly-skilled physicists, chemists and mechanical engineers who will work at the campus on Zanker Road, although the solar panels themselves will continue being made in China. Mayor Reed said he continued to hope that San Jose would attract manufacturing and assembly jobs, but Ms. Hartsoch said that was unlikely because “taxes and labor rates” were too high to merit investment in a factory in Northern California.

SolFocus’s plans do not much resemble what Mr. Jones, the former Obama administration official, had in mind in his 2008 book, “The Green Collar Economy: How One Solution Can Fix Our Two Biggest Problems,” when he described the green economy as “Joe Sixpack with a hard hat and a lunch bucket going off to fix America,” and talked of millions of new jobs.

In an interview last week, though, he seemed to have scaled back. “The green economy as we initially conceived it,” Mr. Jones said, “was never supposed to save the entire global economy.”


Tuesday, August 16, 2011

Obama Espoused Radical Views in College

Monday, 08 Feb 2010 09:42 PM
By Ronald Kessler


As a college student, Barack Obama expressed Marxist views, including the need for a new socialist U.S. government, according to a student who says he shared the future president’s opinion at the time.

Such views by a college student may not be surprising. And like most students who hold radical views, Obama’s positions, at least publicly, have evolved substantially.

However, this new window on Obama’s youth and early political thinking demonstrates how little is known about the background of America’s 44th president.

Dr. John C. Drew, a grant writing consultant in Laguna Niguel, Calif., tells Newsmax he met Obama in 1980 when Obama was a sophomore at Occidental College in Los Angeles. Drew had just graduated from Occidental and was attending graduate school at Cornell University.

Drew’s then girlfriend, Caroline Boss — now Grauman-Boss — knew Obama because she shared classes with him at Occidental.

During Christmas break, Drew says he was at Grauman-Boss’ home in Palo Alto when Obama came over with Mohammed Hasan Chandoo, his roommate from Pakistan.

“Barack and Hasan showed up at the house in a BMW, and then we went to a restaurant together,” Drew says. “We had a nice meal, and then we came back to the house and smoked cigarettes and drank and argued politics.”
For the next several hours, they discussed Marxism.

“He was arguing a straightforward Marxist-Leninist class-struggle point of view, which anticipated that there would be a revolution of the working class, led by revolutionaries, who would overthrow the capitalist system and institute a new socialist government that would redistribute the wealth,” says Drew, who says he himself was then a Marxist.

“The idea was basically that wealthy people were exploiting others,” Drew says. “That this was the secret of their wealth, that they weren’t paying others enough for their work, and they were using and taking advantage of other people. He was convinced that a revolution would take place, and it would be a good thing.”

Drew concluded that Obama thought of himself as “part of an intelligent, radical vanguard that was leading the way towards this revolution and towards this new society.”

In contrast, “My more pessimistic Marxist perspective indicated this was not a realistic possibility, that we really hadn’t seen a sort of complete revolution take place anywhere in Western Europe, and that this isn’t what had happened in more socialistic Germany or in France,” Drew says. “He was pretty persistent, that I didn’t know what I was talking about.”

Drew’s viewpoint that a revolution was unrealistic “made me very unpopular that evening. It was considered a reactionary and insensitive thing to argue,” says Drew.

Drew saw Obama again at a party Obama and Chandoo gave in June 1981 at the house they shared. Drew went on to become an assistant professor of political science at Williams College.

In 1981, Obama left Occidental to attend Columbia University. During that year, Obama spent “about three weeks” visiting Chandoo and his family in Karachi, Pakistan, according to the account of Obama spokesman Bill Burton during the campaign.

Chandoo is now a financial consultant who was formerly a broker at Oppenheimer & Co. He has contributed to Obama’s campaign and helped raise more than $100,000 for him as a bundler.

“If that’s what John Drew said, that’s what he said,” Chandoo commented. “I can’t remember Obama ever talking like that. It sounds a bit absurd to me, but that’s my opinion. I can’t remember him ever expressing an interest in being a Marxist.”

Much of what is known about Obama’s past has been revealed and defined by Obama himself, largely through his two bestselling books “Dreams from My Father” and “The Audacity of Hope.”

In these works and throughout his career, Obama has clearly identified with the oppressed. In “Dreams from My Father” Obama details how white settlers and sugar companies came to dominate and exploit his native Hawaii.

In that memoir, Obama said that at Occidental, “To avoid being mistaken for a sellout, I chose my friends carefully. The more politically active black students. The foreign students. The Chicanos. The Marxist professors and structural feminists and punk-rock performance poets.”

As president, Obama has espoused the view that the rich are not sharing their wealth with the less fortunate. In a Sept. 6, 2001, radio interview, Obama expressed regret that the Supreme Court hadn’t engaged in wealth redistribution.

In some ways, Obama’s opinions about American-style capitalism seem to mirror the views of the Rev. Jeremiah Wright Jr., Obama’s minister who was his self-described mentor and “sounding board” for 20 years. Wright’s “Black Value System” denounced “our racist competitive society” and included the disavowal of the pursuit of “middle-classness.”

The Black Value System defined “middle-classness” as a way American society seduced blacks into achieving economic success, thus snaring them rather than “killing them off directly.”

In a similar vein, when he discussed politics with him in 1980, Drew says that in Obama’s view, “America was definitely the enemy, and American elites were the enemy, and whatever America was doing was definitely wrong and bad. He thought that perhaps the Soviet Union was misunderstood, and it was doing a better job for its people than most people realized.”

Chandoo said he doesn’t know which professors Obama was referring to in his book. Asked when he last saw Obama, Chandoo said he has not seen nor talked with him since before Obama became a U.S. senator. However, under “community member,” the White House listed Chandoo as a guest at Obama’s Ramadan dinner last fall.

When asked about that, Chandoo acknowledged from his home in Armonk, N.Y., that he attended the dinner. Despite the fact that fewer than 70 people were in attendance, Chandoo added, “I did not get a chance to see the boss.” He then said he shook hands with Obama in a receiving line.

Chandoo said he has been in touch with Caroline Grauman-Boss over the years. She did not respond to a request for comment.

Burton, now deputy White House press secretary, also did not respond to a request for comment.

Drew’s encounter with Obama’s early political thinking adds to the mystery that has shrouded his past.

For more than a year during the campaign, the media were aware of Obama’s ties with the Rev. Wright, for example, but the press did not reveal them until Obama was far ahead in the primaries.

Obama has contributed to the lack of knowledge about his past by refusing to release early documentation about his life, including his college and Harvard Law School transcripts and his senior thesis at Columbia.

Referring to Obama’s quote from “Dreams from My Father” that he associated with Marxist professors, Drew says, “What he’s not saying is that he was in 100 percent total agreement with those Marxist professors. When you understand that, Obama’s later associations and policies make more sense, including why he was taken in by Rev. Wright’s ideology.”

In 1983 and 1984, Drew says he came to realize that his own Marxist views were rubbish. He now considers himself a conservative.

In contrast, Drew says, Obama has never revealed how his political thinking evolved and “what were the logical steps he took to get out of his Marxist world view.”

Stop Coddling the Super-Rich

by WARREN E. BUFFETT
Published: August 14, 2011

OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.

While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.

These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.

Last year my federal tax bill — the income tax I paid, as well as payroll taxes paid by me and on my behalf — was $6,938,744. That sounds like a lot of money. But what I paid was only 17.4 percent of my taxable income — and that’s actually a lower percentage than was paid by any of the other 20 people in our office. Their tax burdens ranged from 33 percent to 41 percent and averaged 36 percent.

If you make money with money, as some of my super-rich friends do, your percentage may be a bit lower than mine. But if you earn money from a job, your percentage will surely exceed mine — most likely by a lot.

To understand why, you need to examine the sources of government revenue. Last year about 80 percent of these revenues came from personal income taxes and payroll taxes. The mega-rich pay income taxes at a rate of 15 percent on most of their earnings but pay practically nothing in payroll taxes. It’s a different story for the middle class: typically, they fall into the 15 percent and 25 percent income tax brackets, and then are hit with heavy payroll taxes to boot.

Back in the 1980s and 1990s, tax rates for the rich were far higher, and my percentage rate was in the middle of the pack. According to a theory I sometimes hear, I should have thrown a fit and refused to invest because of the elevated tax rates on capital gains and dividends.

I didn’t refuse, nor did others. I have worked with investors for 60 years and I have yet to see anyone — not even when capital gains rates were 39.9 percent in 1976-77 — shy away from a sensible investment because of the tax rate on the potential gain. People invest to make money, and potential taxes have never scared them off. And to those who argue that higher rates hurt job creation, I would note that a net of nearly 40 million jobs were added between 1980 and 2000. You know what’s happened since then: lower tax rates and far lower job creation.

Since 1992, the I.R.S. has compiled data from the returns of the 400 Americans reporting the largest income. In 1992, the top 400 had aggregate taxable income of $16.9 billion and paid federal taxes of 29.2 percent on that sum. In 2008, the aggregate income of the highest 400 had soared to $90.9 billion — a staggering $227.4 million on average — but the rate paid had fallen to 21.5 percent.

The taxes I refer to here include only federal income tax, but you can be sure that any payroll tax for the 400 was inconsequential compared to income. In fact, 88 of the 400 in 2008 reported no wages at all, though every one of them reported capital gains. Some of my brethren may shun work but they all like to invest. (I can relate to that.)

I know well many of the mega-rich and, by and large, they are very decent people. They love America and appreciate the opportunity this country has given them. Many have joined the Giving Pledge, promising to give most of their wealth to philanthropy. Most wouldn’t mind being told to pay more in taxes as well, particularly when so many of their fellow citizens are truly suffering.

Twelve members of Congress will soon take on the crucial job of rearranging our country’s finances. They’ve been instructed to devise a plan that reduces the 10-year deficit by at least $1.5 trillion. It’s vital, however, that they achieve far more than that. Americans are rapidly losing faith in the ability of Congress to deal with our country’s fiscal problems. Only action that is immediate, real and very substantial will prevent that doubt from morphing into hopelessness. That feeling can create its own reality.

Job one for the 12 is to pare down some future promises that even a rich America can’t fulfill. Big money must be saved here. The 12 should then turn to the issue of revenues. I would leave rates for 99.7 percent of taxpayers unchanged and continue the current 2-percentage-point reduction in the employee contribution to the payroll tax. This cut helps the poor and the middle class, who need every break they can get.

But for those making more than $1 million — there were 236,883 such households in 2009 — I would raise rates immediately on taxable income in excess of $1 million, including, of course, dividends and capital gains. And for those who make $10 million or more — there were 8,274 in 2009 — I would suggest an additional increase in rate.

My friends and I have been coddled long enough by a billionaire-friendly Congress. It’s time for our government to get serious about shared sacrifice.

Warren E. Buffett is the chairman and chief executive of Berkshire Hathaway.

Saturday, August 13, 2011

Summary of Latest Federal Individual Income Tax Data

by Gerald Prante and Mark Robyn

Fiscal Fact No. 249

Summary of Federal Individual Income Tax Data

Number of Federal Individual Income Tax Returns Filed, 1980-2008

Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980-2008

Total Income Tax after Credits, 1980-2008

Adjusted Gross Income Shares, 1980-2008

Total Income Tax Shares, 1980-2008

Dollar Cut-Off, 1980-2008

Average Tax Rate, 1980-2008

Download these tables in Excel format

The Internal Revenue Service has released new data on individual income taxes, reporting on calendar year 2008, a year of economic recession in which the world's financial system was temporarily in a perilous state.

The amount of individual income taxes paid fell substantially in 2008, by $84 billion, and nationally, average income tax rates were at their lowest levels since 2004. The average tax rate for returns with a positive liability went from 12.68 percent in 2007 to 12.24 percent in 2008.

As the data below show, incomes reported by tax returns at the high end of the income spectrum plummeted from 2007 to 2008, as did their share of the nation's income and income taxes paid. In 2008, the top 1 percent of tax returns paid 38.0 percent of all federal individual income taxes and earned 20.0 percent of adjusted gross income, compared to 2007 when those figures were 40.4 percent and 22.8 percent, respectively. Both of those figures—share of income and share of taxes paid—were their lowest since 2004 when the top 1 percent earned 19 percent of adjusted gross income (AGI) and paid 36.9 percent of federal individual income taxes.

Each year from 2005 to 2007, the top 1 percent's constantly growing share of income earned and taxes paid set a record. That trend reversed in 2008. In fact, the income share for the top 1 percent of tax returns was lower in 2008 than in 2000, largely due to differences in capital gains.

Another indicator of this reversal in the income and tax shares of the top 1 percent is that during 2007, the top 1 percent had actually paid more in federal income tax than the bottom 95 percent, a comparison that was much remarked on a year ago. But the diminished income of the top 1 percent in 2008 means that the comparison no longer holds. During 2008, the bottom 95 percent (AGI under $159,619) paid 41.3 percent of the total collected, a larger share than the 38.0 percent paid by the top 1 percent (AGI over $380,354).

The top-earning 5 percent of taxpayers (AGI over $159,619), however, still paid far more than the bottom 95 percent. The top 5 percent earned 34.7 percent of the nation's adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes.

For the past few years, the IRS has also been presenting data on a small subset of the top 1 percent, the top 0.1 percent (the top 10 percent of the top 1 percent). In 2008, this top 0.1 percent filed 140,000 tax returns, reporting nearly 10 percent of all adjusted gross income earned and paying approximately 18.5 percent of the nation's federal individual income taxes. The average income for a tax return in the top 0.1 percent was $6.0 million in 2008, while the average amount of income tax paid was $1.36 million, indicating an average effective individual income tax rate of 22.7 percent. Both the income figures and tax figures for this group in 2008 were down significantly from 2007 levels.

[Note: This very top income group actually has a lower average effective income tax rate than the rest of the top 1 percent of returns because these extremely high-income returns are more likely to have income from capital gains and dividends, which are typically taxed at lower rates. It's worth pointing out that in the case of capital gains and dividends, usually the income has already been taxed once by the corporate income tax, which is not included here, meaning the average effective tax rate numbers can be somewhat misleading.]

Overall, these data on high-income tax returns appear to confirm that the recent recession had the same diminishing effect on income inequality that most recessions have, and that it occurred for the same reason, a sharp decline in income at the high end. This appears to contradict recent reports based upon Census data suggesting the opposite, that this recession had actually increased income inequality. This inconsistency between IRS data and Census data is explained by a number of factors such as: (1) Census doesn't break down data for the extremely high income tax returns (typically stops at the 5 percent threshold), (2) Census income measures do not account for capital gains realizations, and (3) Census data gathered from household surveys are less reliable for income information at the high end of the income spectrum than IRS data.

The IRS data below include all of the 139.96 million tax returns filed in 2008 that had a positive AGI, not just the returns from people who earned enough to owe taxes. These figures exclude those tax returns filing a return merely to receive a stimulus check.

From other IRS data, we can see that in 2008, around 52 million tax returns were filed with either positive or negative AGI that used exemptions, deductions and tax credits to completely wipe out their federal income tax liability. Not only did they get back every dollar that the federal government withheld from their paychecks during 2008, but some even received more back from the IRS. This is a result of refundable tax credits like the earned income tax credit (EITC), the refundable portion of which is not included in the aggregate percentile data here. (For a detailed paper on the distribution of the entire U.S. fiscal system, including all federal, state and local taxes, read "Who Pays Taxes and Who Receives Government Spending? An Analysis of Federal, State and Local Tax and Spending Distributions, 1991 - 2004.")

Including all tax returns that had a positive AGI, taxpayers with an AGI of $159,619 or more in 2008 constituted the nation's top 5 percent of income earners. To break into the top 1 percent, a tax return had to have an AGI of $380,354 or more, which was significantly lower than the 2007 threshold of $410,096. The income threshold to break into the top 0.1 percent also fell dramatically from 2007 to 2008, from about $2.15 million in 2007 to $1.8 million in 2008. (Note also that the figures in the tables include data on the top 2 percent, 3 percent and 4 percent, available at http://www.taxfoundation.org/publications/show/23408.html.)

Although the 2001 and 2003 tax cuts were across the board (even though certain provisions within those cuts were targeted at various income ranges), the federal individual income tax remains highly progressive. The average tax rate in 2008 ranged from around 2.6 percent of income for the bottom half of tax returns to 23.27 percent for the top 1 percent. For the top 1 percent (as well as the top 0.1 percent), their average income tax rate actually increased from 2007 to 2008, despite shrunken income. This counterintuitive result is explained by the diminished capital gains and dividend income on high-income tax returns, income sources that are taxed at lower rates. With their 2008 income more dominated by ordinary income taxed at higher rates, then, the average rate on high-income returns rose in 2008. With the possible exception of the estate tax, the federal income tax is the most progressive tax in the United States, and these numbers show why.

The source for the following charts is the Internal Revenue Service, http://www.irs.gov/taxstats/indtaxstats/article/0,,id=133521,00.html ("Individual Income Tax Returns with Positive Adjusted Gross Income (AGI) Returns Classified by Tax Percentile - Early Release"). To view more-detailed versions of these charts or to download them in Excel or PDF, see http://www.taxfoundation.org/publications/show/23408.html.

The Facts Contradict Obama's Calls for Higher Taxes on the Rich and Corporations

During his attempt to calm the markets yesterday, President Obama once again signaled his belief that America needs higher, not lower taxes. Indeed, the Wall Street Journal is reporting that Obama's remarks had "included a call for tax changes that would boost payments from 'wealthy Americans and corporations,' but this phrase was taken out at the last minute. None the less, Mr. Obama seems obsessed with the notion that wealthy Americans and corporations are not paying enough taxes.

The President's notions are not, however, grounded in fact. Let's review the data on individual taxpayers first:

  • Recently released IRS data for 2009, shows that taxpayers earning over $200,000 paid 50 percent of the $866 billion in total income taxes paid that year, or $434 billion. Skeptics will say, "That's because they earn the majority of the income in America. Not so. These taxpayers earned 25 percent of the $7.6 trillion in total adjusted gross income in the country that year.
  • The 2009 IRS data also shows that a record 58.6 million tax filers had no income tax liability that year. This means that 42 percent of the 140 million Americans who filed tax returns that year contributed nothing to the basic cost of government.
  • Millions of people received cash "refunds" in 2009 even though they paid no income taxes: Some 21 million nonpayers received $27.5 billion in refundable credits from the child credit; Obama's Making Work Pay program gave out $12.8 billion in refundable credits to 32 million filers; The Earned Income Tax Credit program doled out $54 billion in refundable credits to 24.9 million filers; and, nearly 5 million filers received $3.9 billion in refundable Education Credits and roughly 1 million filers got $4.65 billion in refundable credits under the First Time Homebuyers credit program.

The data also shows that the corporate tax burden is extremely progressive as well.

  • In 2008, the roughly 1,900 largest corporations paid $152 billion in income taxes. This amounted to 67 percent of the $227 billion in total corporate income taxes paid that year.

Obama repeated statements that the wealthy and corporations are not paying their fair share of taxes are simply false. The facts show that the very taxpayers Obama wants to raise taxes on are already paying more than their fair share of taxes and that the majority of Americans are getting the benefits of government spending while contributing next to nothing to its basic cost. That is a recipe for fiscal and social instability.

Health Care Law Individual Mandate Ruled Unconstitutional By Appeals Court

Obama Health Care Law Ruling

GREG BLUESTEIN


ATLANTA — A federal appeals panel struck down the centerpiece of President Barack Obama's sweeping health care overhaul Friday, moving the argument over whether Americans can be required to buy health insurance a step closer to the U.S. Supreme Court.

The divided three-judge panel of the 11th Circuit Court of Appeals concluded Congress overstepped its authority when lawmakers passed the so-called individual mandate, the first such decision by a federal appeals court. It's a stinging blow to Obama's signature legislative achievement, as most experts agree the requirement that Americans carry health insurance – or face tax penalties – is the foundation for other parts of the law.

Chief Judge Joel Dubina and Circuit Judge Frank Hull found in a 207-page opinion that lawmakers cannot require residents to "enter into contracts with private insurance companies for the purchase of an expensive product from the time they are born until the time they die."

In a lengthy dissent, Circuit Judge Stanley Marcus accused the majority of ignoring the "undeniable fact that Congress' commerce power has grown exponentially over the past two centuries." He wrote that Congress generally has the constitutional authority to create rules regulating large areas of the national economy.

The White House argued the legislative branch was using a "quintessential" power – its constitutional ability to regulate interstate commerce, including the health care industry – when it passed the overhaul law. Administration officials said they are confident the ruling will not stand. The Justice Department can ask the full 11th Circuit to review the panel's ruling and will also likely appeal to the Supreme Court.

"Individuals who choose to go without health insurance are making an economic decision that affects all of us – when people without insurance obtain health care they cannot pay for, those with insurance and taxpayers are often left to pick up the tab," said White House adviser Stephanie Cutter.

The 11th Circuit's ruling, which sided with 26 states that had sued to stop the law from taking effect, is the latest contradictory judicial opinion on the health care debate. The federal appeals court in Cincinnati upheld the individual mandate in June, and an appeals court in Richmond has heard similar challenges to the law. Several lower court judges have also issued differing opinions on the debate.

Legal observers long expected the case would ultimately land in the Supreme Court, but experts said Friday's ruling could finally force the justices to take the case.

"There needs to be a pronouncement that's nationwide," said Carl Tobias, a professor at the University of Richmond School of Law. "It would be almost impossible to implement it if we have splintered decisions from different geographic circuits. The Supreme Court may feel now it has to take it."

J. Peter Rich, a Los Angeles-based health care attorney, said the Supreme Court had never weighed in on an issue such as the provision requiring individuals to buy health insurance.

"They have never ruled on this specific issue," he said. "This really is a case of first impression, although the Obama administration may try to argue otherwise."

Rich said it's not unconstitutional for individual states to have such requirements, noting that Massachusetts has a similar law in place. However, the high court has yet to weigh in on whether a federal requirement passes muster.

It's the latest hit the president's taken in what's been a rough month that's included humiliating blows on both the economy and in Afghanistan, while polls show deteriorating public support for both him and Congress.

Obama has been criticized by his Democratic base for his failures, which include dropping his push for tax increases as part of last week's compromise to raise the government's debt ceiling and his inability to let the Bush tax cuts for the wealthy to expire at the end of last year.

The Atlanta-based court is considered by many observers to be the most pivotal legal battleground yet because it reviewed a sweeping ruling by U.S. District Judge Roger Vinson, who not only struck down the individual mandate but threw out other provisions ranging from Medicare discounts for some seniors to a change that allows adult children up to age 26 to remain on their parents' coverage.

His reasoning was that the insurance requirement was "inextricably bound together" with the rest of the law, but the 11th Circuit concluded Vinson went too far. The panel's ruling noted that the "lion's share of the act has nothing to do with private insurance, much less the mandate that individuals buy insurance."

The provision requiring all Americans to carry health insurance or face a tax penalty has been at the center of the legal debate. The law does not allow insurers to turn away the sick or charge them outrageous premiums. To cover their health care costs, others – particularly the young and healthy – will need to pay premiums to keep costs from skyrocketing. The potential tax penalties are meant to ensure they will do so.

The Obama Administration also has a little-known fallback if it loses the court battle. The government can borrow a strategy that Medicare uses to compel consumers to sign up for insurance.

Medicare's "Part B" coverage for doctor visits carries its own monthly premium. Yet more than nine in 10 seniors sign up. The reason: Those who opt out when they first become eligible face a lifelong tax penalty that escalates the longer they wait.

The key difference is that the Medicare law doesn't require that seniors buy the Part B coverage. Experts say Obama's overhaul could also be changed in a similar fashion.

The states had urged the 11th Circuit to uphold Vinson's ruling, saying in a court filing that letting the law stand would set a troubling precedent that "would imperil individual liberty, render Congress's other enumerated powers superfluous, and allow Congress to usurp the general police power reserved to the states."

The Justice Department countered that Congress had the power to require most people to buy health insurance or face tax penalties because Congress can regulate businesses that operate across state lines, including health care providers.

The reaction was swift and celebratory from the states that filed the lawsuit.

Michigan Attorney General Bill Schuette called the decision a "huge victory in the fight to protect the freedom of American citizens from the long arm of the federal government." Alabama Attorney General Luther Strange called it a "monumental case" for individual liberty. And Texas Attorney General Greg Abbott declared: "'Obamacare' is closer to an end."

A separate legal ruling Friday also buoyed critics of the law. The Ohio Supreme Court appeared to clear the way for voters there to decide whether to reject parts of the health care law in November with a unanimous ruling that rejected a liberal policy group's challenge of the so-called Health Care Freedom Amendment.

But the administration did get a small dose of good news Friday. The federal appeals court in San Francisco found that a former California lawmaker and a legal foundation could not file another challenge on the overhaul.

The 11th Circuit's ruling in Atlanta didn't come as a complete surprise. During oral arguments in June, each of the three judges repeatedly raised questions about the overhaul and expressed unease with the insurance requirement. And each judge worried aloud if upholding the landmark law could open the door to Congress adopting other sweeping economic mandates.

The arguments took place in what's considered one of the nation's most conservative appeals courts, but the randomly selected panel represents different judicial perspectives.

None of the three is considered either a stalwart conservative or an unfaltering liberal, but observers were quick to point out that the decisive vote came from a Democrat appointee. Hull, a former federal judge in Atlanta, was tapped by President Bill Clinton.

___

Associated Press Writer Ricardo Alonso-Zaldivar in Washington contributed to this report.

Obama Drilling Rules Thrown Out By Federal Judge

Obama Energy


US President Barack Obama speaks on fuel efficiency standards for model years 2017-2025 cars and light trucks July 29, 2011 at the Walter E. Washington Convention Center in Washington, DC. (MANDEL NGAN/AFP/Getty Images)


CHEYENNE, Wyo. -- A judge on Friday threw out Obama administration rules that sought to slow down expedited environmental review of oil and gas drilling on federal land.

U.S. District Judge Nancy Freudenthal ruled in favor of a petroleum industry group, the Western Energy Alliance, in its lawsuit against the federal government, including Interior Secretary Ken Salazar.

The ruling reinstates Bush-era expedited oil and gas drilling under provisions called categorical exclusions on federal lands nationwide, Freudenthal said.

The government argued that oil and gas companies had no case because they didn't show how the new rules, implemented by the U.S. Bureau of Land Management and U.S. Forest Service last year, had created delays and added to the cost of drilling.

Freudenthal rejected that argument.

"Western Energy has demonstrated through its members recognizable injury," she said. "Those injuries are supported by the administrative record."

An attorney for the government declined to comment but Kathleen Sgamma, director of government and public affairs for the Denver-based Western Energy Alliance, praised the ruling.

"She completely discounted the government's argument that the harm was speculative," Sgamma said of the judge.

The Energy Policy Act of 2005 allows the BLM and Forest Service to invoke categorical exclusions and skip new environmental review for drilling permits under certain circumstances.

The circumstances include instances where companies plan to disturb relatively little ground and environmental review already has been done for that area. A categorical exclusion also can be invoked when additional drilling is planned at a well pad where drilling has occurred within the previous five years.

Categorical exclusions were widely used throughout the West – especially in the gas boom states of Wyoming, Utah and New Mexico – until last year.

In Wyoming, the BLM invoked categorical exclusions for 87 percent of the new gas wells drilled in the Upper Green River Basin between 2007 and 2010. Those drilling permits added up: Close to 3,000 over those three years in the basin's Jonah Field and Pinedale Anticline gas fields.

The Jonah Field and Pinedale Anticline ranked fifth and sixth for gas production in the U.S. in 2009.

Federal land agencies adopted new rules for interpreting the Energy Policy Act last year in response to an environmentalist lawsuit over the use of categorical exclusions. The Western Energy Alliance sued over the new rules last fall.

7 Reasons Why Government can no longer be trusted

by American Reform Party
posted on Tuesday, July 27, 2010

Government has FAILED miserably in every service, business or Entitlement program it has created and forced upon the American people since 1775. Their irresponsible trend and actions continue today with the creation of the Health Care Reform Law, Government controlled Student Loan program and if we don't stop them we will have the Cap & Trade program.

Here are just seven examples of programs created for the "Good of the People" by our caring Federal Government in which they have either completely looted, as in the case with Social Security, or have virtually Bankrupted.

  1. The U.S. Post Service was established in 1775. They had 234 years to get it right and it is BROKE.
  2. Social Security was established in 1935 (An illegal Ponzi Scheme). They had 74 years to get it right and it is BROKE.
  3. Fannie Mae was established in 1938. They had 71 years to get it right and it is BROKE.
  4. War on Poverty started in 1964. They had 45 years to get it right; $ trillion of our money is confiscated each year and transferred to "the poor" and they only want more.
  5. Medicare and Medicaid were established in 1965. They had 44 years to get it right and they are BROKE.
  6. Freddie Mac was established in 1970. They had 39 years to get it right and it is BROKE.
  7. The Department of Energy was created in 1977 to lessen our dependence on foreign oil. It has ballooned to 16,000 employees with a budget of $24 billion a year and we import more oil than ever before. They had 32 years to get it right and it is an abysmal FAILURE.
SO HOW CAN WE TRUST GOVERNMENT TO RUN A HEALTH CARE SYSTEM?? IF WE DON'T BRING AN END TO THIS LUNACY THEY WILL EVENTUALLY BANKRUPT EVERYONE OF US.

Thursday, August 11, 2011

Tax hike on the rich would impact just 3% of taxpayers

August 11, 2011: 1:51 PM ET
chart-rich-taxes-2.top.gif

NEW YORK (CNNMoney) -- As the government looks for ways to climb out of its massive hole of debt, all eyes are on the rich.

President Obama and many of his fellow Democrats continue to call for higher taxes on the wealthy. And, according to results of a CNN/ORC International Poll released Wednesday, many Americans agree that it's the only way the country can dig itself out of its current economic mess.

In the survey, 63% of the 1,008 people interviewed over the phone said they think the new bipartisan committee in charge of deficit reduction (required under the recent debt ceiling agreement) should raise taxes on higher-income Americans and businesses.

But just how many rich people are there? And are there enough of them for a tax increase to really make a dent in the United States' trillions of dollars in debt?

President Obama has defined the nation's wealthy as those who make $200,000 or more a year.

Debt ceiling: What Obama wants in taxes

According to a recent report from the Internal Revenue Service, that leaves out about 97% of the tax-paying population.

The report, which provides a complete breakdown and analysis of returns for the 2009 tax year, found that only a mere 3% of tax returns were filed by people earning a gross adjusted income of $200,000 or more.

Americans earning $1 million or more were even more rare, comprising just 0.2% of total tax filers and accounting for a mere 236,883 of the 140 million tax returns received in 2009.

The wealthiest taxpayers -- those earning $10 million or more in adjusted gross income -- are even less prevalent. There were only 8,274 people belonging to that elite club, according the IRS.

Out of the nearly 4 million "rich" people making more than $200,000 a year, 1,470 didn't pay any income tax whatsoever in 2009. But the people who did pay taxes earned a total of nearly $2 trillion in income -- about 26% of total taxpayer income in 2009.

President Obama's tax proposals -- which many Republican's call "job-killing" tax hikes -- include getting rid of some corporate tax breaks enjoyed by oil and gas companies and corporate jet buyers, and restoring some Bush-era tax rates for high-income households. If the Bush tax cuts expire as planned in 2012, the top two income tax rates will revert to 39.6% and 36% from 35% and 33%, respectively.

Yet, even though these high-income earners are a minority, Obama says the proposed tax increases would boost revenue by $750 billion over a decade.

It's not quite the multi-trillion figure the U.S. needs to pay off the deficit, but for many of those who responded to the CNN/ORC International poll it's evidently a good enough start.

Wednesday, August 10, 2011

Years of liberal dogma have spawned a generation of amoral, uneducated, welfare dependent, brutalised youngsters

By Max Hastings

Last updated at 12:49 PM on 10th August 2011


A few weeks after the U.S. city of Detroit was ravaged by 1967 race riots in which 43 people died, I was shown around the wrecked areas by a black reporter named Joe Strickland.

He said: ‘Don’t you believe all that stuff people here are giving media folk about how sorry they are about what happened. When they talk to each other, they say: “It was a great fire, man!” ’

I am sure that is what many of the young rioters, black and white, who have burned and looted in England through the past few shocking nights think today.

Manchester: Hooded looters laden with clothes run from a Manchester shopping centre

Rich pickings: Hooded looters laden with clothes run from a Manchester shopping centre

It was fun. It made life interesting. It got people to notice them. As a girl looter told a BBC reporter, it showed ‘the rich’ and the police that ‘we can do what we like’.

If you live a normal life of absolute futility, which we can assume most of this week’s rioters do, excitement of any kind is welcome. The people who wrecked swathes of property, burned vehicles and terrorised communities have no moral compass to make them susceptible to guilt or shame.

Most have no jobs to go to or exams they might pass. They know no family role models, for most live in homes in which the father is unemployed, or from which he has decamped.

They are illiterate and innumerate, beyond maybe some dexterity with computer games and BlackBerries.

They are essentially wild beasts. I use that phrase advisedly, because it seems appropriate to young people bereft of the discipline that might make them employable; of the conscience that distinguishes between right and wrong.

They respond only to instinctive animal impulses — to eat and drink, have sex, seize or destroy the accessible property of others.

Their behaviour on the streets resembled that of the polar bear which attacked a Norwegian tourist camp last week. They were doing what came naturally and, unlike the bear, no one even shot them for it.

A former London police chief spoke a few years ago about the ‘feral children’ on his patch — another way of describing the same reality.

The depressing truth is that at the bottom of our society is a layer of young people with no skills, education, values or aspirations. They do not have what most of us would call ‘lives’: they simply exist.

Nobody has ever dared suggest to them that they need feel any allegiance to anything, least of all Britain or their community. They do not watch royal weddings or notice Test matches or take pride in being Londoners or Scousers or Brummies.

Not only do they know nothing of Britain’s past, they care nothing for its present.

They have their being only in video games and street-fights, casual drug use and crime, sometimes petty, sometimes serious.

The notions of doing a nine-to-five job, marrying and sticking with a wife and kids, taking up DIY or learning to read properly, are beyond their imaginations.

Undercover police officers arrest looters in the Swarovski Crystal shop in Manchester. One rioter lies injured and blood can be seen on the wall

Undercover police officers arrest looters in the Swarovski Crystal shop in Manchester. One rioter lies injured and blood can be seen on the wall

Last week, I met a charity worker who is trying to help a teenage girl in East London to get a life for herself. There is a difficulty, however: ‘Her mother wants her to go on the game.’ My friend explained: ‘It’s the money, you know.’

An underclass has existed throughout history, which once endured appalling privation. Its spasmodic outbreaks of violence, especially in the early 19th century, frightened the ruling classes.

Its frustrations and passions were kept at bay by force and draconian legal sanctions, foremost among them capital punishment and transportation to the colonies.

Today, those at the bottom of society behave no better than their forebears, but the welfare state has relieved them from hunger and real want.

When social surveys speak of ‘deprivation’ and ‘poverty’, this is entirely relative. Meanwhile, sanctions for wrongdoing have largely vanished.

When Work and Pensions Secretary Iain Duncan Smith recently urged employers to take on more British workers and fewer migrants, he was greeted with a hoarse laugh.

Birmingham: People wearing masks swig alcohol next to a burning car in Birmingham city centre last night

Mindless: People wearing masks swig alcohol next to a burning car in Birmingham city centre last night

Every firm in the land knows that an East European — for instance — will, first, bother to turn up; second, work harder; and third, be better-educated than his or her British counterpart.Who do we blame for this state of affairs?

Ken Livingstone, contemptible as ever, declares the riots to be a result of the Government’s spending cuts. This recalls the remarks of the then leader of Lambeth Council, ‘Red Ted’ Knight, who said after the 1981 Brixton riots that the police in his borough ‘amounted to an army of occupation’.

But it will not do for a moment to claim the rioters’ behaviour reflects deprived circumstances or police persecution.

Of course it is true that few have jobs, learn anything useful at school, live in decent homes, eat meals at regular hours or feel loyalty to anything beyond their local gang.

This is not, however, because they are victims of mistreatment or neglect.

It is because it is fantastically hard to help such people, young or old, without imposing a measure of compulsion which modern society finds unacceptable. These kids are what they are because nobody makes them be anything different or better.

Rampage: We are told that youths roaming the streets are doing so because they are angry at unemployment, but a quick look at an apprenticeship website yields 2,228 vacancies in London

Rampage: We are told that youths roaming the streets are doing so because they are angry at unemployment, but a quick look at an apprenticeship website yields 2,228 vacancies in London

A key factor in delinquency is lack of effective sanctions to deter it. From an early stage, feral children discover that they can bully fellow pupils at school, shout abuse at people in the streets, urinate outside pubs, hurl litter from car windows, play car radios at deafening volumes, and, indeed, commit casual assaults with only a negligible prospect of facing rebuke, far less retribution.

John Stuart Mill wrote in his great 1859 essay On Liberty: ‘The liberty of the individual must be thus far limited; he must not make himself a nuisance to other people.’

Yet every day up and down the land, this vital principle of civilised societies is breached with impunity.

Anyone who reproaches a child, far less an adult, for discarding rubbish, making a racket, committing vandalism or driving unsociably will receive in return a torrent of obscenities, if not violence.

So who is to blame? The breakdown of families, the pernicious promotion of single motherhood as a desirable state, the decline of domestic life so that even shared meals are a rarity, have all contributed importantly to the condition of the young underclass.

The social engineering industry unites to claim that the conventional template of family life is no longer valid.

Protection: Asian shopkeepers stand outside their store in Hackney that was battered by the looters. This time, though, they're ready to take them on

Protection: Asian shopkeepers stand outside their store in Hackney that was battered by the looters. This time, though, they're ready to take them on

And what of the schools? I do not think they can be blamed for the creation of a grotesquely self-indulgent, non-judgmental culture.

This has ultimately been sanctioned by Parliament, which refuses to accept, for instance, that children are more likely to prosper with two parents than with one, and that the dependency culture is a tragedy for those who receive something for nothing.

The judiciary colludes with social services and infinitely ingenious lawyers to assert the primacy of the rights of the criminal and aggressor over those of law-abiding citizens, especially if a young offender is involved.

The police, in recent years, have developed a reputation for ignoring yobbery and bullying, or even for taking the yobs’ side against complainants.

‘The problem,’ said Bill Pitt, the former head of Manchester’s Nuisance Strategy Unit, ‘is that the law appears to be there to protect the rights of the perpetrator, and does not support the victim.’

Police regularly arrest householders who are deemed to have taken ‘disproportionate’ action to protect themselves and their property from burglars or intruders. The message goes out that criminals have little to fear from ‘the feds’.

Do rioters, pictured looting a shop in Hackney, have lower levels of a brain chemical that helps keep behaviour under control? Scientists think so

Do rioters, pictured looting a shop in Hackney, have lower levels of a brain chemical that helps keep behaviour under control? Scientists think so

Figures published earlier this month show that a majority of ‘lesser’ crimes — which include burglary and car theft, and which cause acute distress to their victims — are never investigated, because forces think it so unlikely they will catch the perpetrators.

How do you inculcate values in a child whose only role model is footballer Wayne Rooney — a man who is bereft of the most meagre human graces?

How do you persuade children to renounce bad language when they hear little else from stars on the BBC?

A teacher, Francis Gilbert, wrote five years ago in his book Yob Nation: ‘The public feels it no longer has the right to interfere.’

Discussing the difficulties of imposing sanctions for misbehaviour or idleness at school, he described the case of a girl pupil he scolded for missing all her homework deadlines.

The youngster’s mother, a social worker, telephoned him and said: ‘Threatening to throw my daughter off the A-level course because she hasn’t done some work is tantamount to psychological abuse, and there is legislation which prevents these sorts of threats.

‘I believe you are trying to harm my child’s mental well-being, and may well take steps . . . if you are not careful.’

That story rings horribly true. It reflects a society in which teachers have been deprived of their traditional right to arbitrate pupils’ behaviour. Denied power, most find it hard to sustain respect, never mind control.

Mob: A crowd of people rush into a fashion store in Peckham

Mob: A crowd of people rush into a fashion store in Peckham

I never enjoyed school, but, like most children until very recent times, did the work because I knew I would be punished if I did not. It would never have occurred to my parents not to uphold my teachers’ authority. This might have been unfair to some pupils, but it was the way schools functioned for centuries, until the advent of crazy ‘pupil rights’.

I recently received a letter from a teacher who worked in a county’s pupil referral unit, describing appalling difficulties in enforcing discipline. Her only weapon, she said, was the right to mark a disciplinary cross against a child’s name for misbehaviour.

Having repeatedly and vainly asked a 15-year-old to stop using obscene language, she said: ‘Fred, if you use language like that again, I’ll give you a cross.’

He replied: ‘Give me an effing cross, then!’ Eventually, she said: ‘Fred, you have three crosses now. You must miss your next break.’

He answered: ‘I’m not missing my break, I’m going for an effing fag!’ When she appealed to her manager, he said: ‘Well, the boy’s got a lot going on at home at the moment. Don’t be too hard on him.’

This is a story repeated daily in schools up and down the land.

Making a run for it: These four looters dash from the Blue Inc store in Peckham with looted goods

Making a run for it: These four looters dash from the Blue Inc store in Peckham with plundered goods

A century ago, no child would have dared to use obscene language in class. Today, some use little else. It symbolises their contempt for manners and decency, and is often a foretaste of delinquency.

If a child lacks sufficient respect to address authority figures politely, and faces no penalty for failing to do so, then other forms of abuse — of property and person — come naturally.

So there we have it: a large, amoral, brutalised sub-culture of young British people who lack education because they have no will to learn, and skills which might make them employable. They are too idle to accept work waitressing or doing domestic labour, which is why almost all such jobs are filled by immigrants.

They have no code of values to dissuade them from behaving anti-socially or, indeed, criminally, and small chance of being punished if they do so.

They have no sense of responsibility for themselves, far less towards others, and look to no future beyond the next meal, sexual encounter or TV football game.

Rioters in Hackney stand in front of a makeshift barricade

Behind bins: Rioters in Hackney stand in front of a makeshift barricade

They are an absolute deadweight upon society, because they contribute nothing yet cost the taxpayer billions. Liberal opinion holds they are victims, because society has failed to provide them with opportunities to develop their potential.

Most of us would say this is nonsense. Rather, they are victims of a perverted social ethos, which elevates personal freedom to an absolute, and denies the underclass the discipline — tough love — which alone might enable some of its members to escape from the swamp of dependency in which they live.

Only education — together with politicians, judges, policemen and teachers with the courage to force feral humans to obey rules the rest of us have accepted all our lives — can provide a way forward and a way out for these people.

They are products of a culture which gives them so much unconditionally that they are let off learning how to become human beings. My dogs are better behaved and subscribe to a higher code of values than the young rioters of Tottenham, Hackney, Clapham and Birmingham.

Unless or until those who run Britain introduce incentives for decency and impose penalties for bestiality which are today entirely lacking, there will never be a shortage of young rioters and looters such as those of the past four nights, for whom their monstrous excesses were ‘a great fire, man’.

Saturday, August 6, 2011

Fannie Mae seeks $5.1 billion more from taxpayers

By Reuters

WASHINGTON (Reuters) - Mortgage finance giant Fannie Mae said it would ask for an additional $5.1 billion from taxpayers as a weaker housing market causes continued losses on loans made prior to 2009.

The largest U.S. residential mortgage funds provider on Friday also reported a second-quarter net loss attributable to common shareholders of $5.2 billion, or 90 cents per share.

It forecast continued weakness ahead, with high unemployment and foreclosures expected to put more downward pressure on home prices.

Fannie Mae paid back $2.3 billion in dividends to taxpayers in the second quarter, reducing its net capital draw to $2.8 billion. Since the firm was seized by the U.S. Treasury in 2008, it has needed about $104 billion in government capital injections, although it has paid back about $14.7 billion in dividends.

Fannie Mae said its second-quarter loss "reflects the continued weakness in the housing and mortgage markets, which remain under pressure from high levels of unemployment, underemployment and the prolonged decline in home prices since their peak in the third quarter of 2006."

It said expenses related to mortgage modifications to keep struggling borrowers in their homes also contributed to its loss.

"Fannie Mae expects its credit-related expenses to remain elevated in 2011 due to these factors," the company added.

The $5.2 billion loss attributable to shareholders follows a loss of $8.7 billion in the first quarter and compares with a loss of $3.125 billion in the second quarter of 2010.

Fannie Mae turned briefly profitable in the fourth quarter of 2010, reporting earnings of $23 million. The firm and sister entity Freddie Mac currently support most U.S. mortgage lending.

Continued economic weakness and mounting foreclosures have caused U.S. home prices to fall this year, and it is unclear when they will finally bottom.

"I think it's going to continue to be a bumpy ride for a while," Fannie Mae Chief Financial Officer Susan McFarland told Reuters. "We've got to clear the mortgage market of the excess inventory and employment needs to recover, I believe, before we're going to see a stabilization of home prices."

Loans made in the past two years have been more profitable for Fannie Mae than loans made during the housing boom. Fannie Mae said it expects its book of loans made since 2009 to be profitable through their lifetime, but it has now recognized $130 billion of losses on its book of loans made between 2005 and 2008.

Fannie Mae realized credit losses, including net charge-offs plus foreclosed property expenses, of $3.9 billion in the second quarter, compared with $5.7 billion in the first quarter.

LOWER INTEREST RATES HURT DERIVATIVES

The company also recognized a $1.6 billion loss in net fair value, mostly from its derivatives due to lower interest rates, after a first-quarter gain in net fair value of $289 million.

Fannie Mae officials declined to comment on how recent further declines in interest yields would affect the derivatives book going forward.

Freddie Mac is expected to report its second-quarter results early next week. It posted a first-quarter loss of just under $1 billion, though it did not seek any new money from the Treasury.

To stay solvent, the two firms together have needed about $169 billion in taxpayer bailout funds, including Fannie Mae's latest request. Their net capital draw has been about $143 billion after paying back dividends.

Then-U.S. Treasury Secretary Henry Paulson seized control of Fannie and Freddie at the height of the financial crisis in September 2008 as losses mounted from mortgages gone bad.

The Treasury earlier this year floated some possible scenarios for restructuring the two enterprises, and U.S. mortgage finance in general, but Congress is not expected to take up the matter for several more months.

(Reporting by David Lawder; editing by John Wallace)

Friday, August 5, 2011

Food stamp use rises to record 45.8 million

August 4, 2011: 5:03 PM ET

food stamps

Food stamp use hit an all-time high in May.



NEW YORK (CNNMoney) -- Nearly 15% of the U.S. population relied on food stamps in May, according to the United States Department of Agriculture.

The number of Americans using the government's Supplemental Nutrition Assistance Program (SNAP) -- more commonly referred to as food stamps -- shot to an all-time high of 45.8 million in May, the USDA reported. That's up 12% from a year ago, and 34% higher than two years ago.

The program provides monthly benefits to low-income individuals and families, which they can use at stores that accept SNAP benefits.

To qualify for food stamps, an individual's income can't exceed $1,174 a month or $14,088 a year -- an amount that is 130% of the national poverty level.

The average food stamp benefit was $133.80 per person and $283.65 per household in May.

The highest concentration of food stamp users were in California, Florida, New York and Texas -- where more than 3 million residents in each state received food stamps in May.

The rise in food stamp use comes as the U.S. job market continues to sputter, and food prices across the country climb.

Unemployment benefits at risk

But a spike in food stamp users in Alabama may have been responsible for pushing total usage unusually higher in May. Following a series of devastating storms, many residents received disaster assistance under the Disaster Supplemental Nutrition Assistance Program, the USDA said. Food stamp use in the state surged from 868,813 in April to 1,762,481 in May.

"USDA does not anticipate that trend of increase to continue, given that it appears to represent a response to a single disaster," the USDA said.