Before the VP debates: My assessment of how it will go

Remember the first Presidential debate?  President Obama was put into a state of shock by the abrupt policy changes Mitt Romney decided to take effect immediately as of that debate night.  The President failed to call Romney on these and because of that, led some uniformed voters to see Romney's enthusiastic lies as facts.  Even though the Republican Campaign Committee has taken much of what he said back, the President has paid for his failure to respond to Romney's claims by loss of support in the polls.

It appears that Romney's exaggerated policy changes were just another move in this "chess game" for  the Presidency.  Being so far behind in the polls and having had so much bad press about his actions, words and deeds in this campaign, my guess is that Romney's campaign decided that they had nothing to lose and everything to gain by lying to voters to soften Romney's conservative views and improve his appeal to undecided voters.  After all, you have to win the Presidency first before you can carry out your actual policies.

Ryan

Biden

Tonight Vice President Biden and Congressman Ryan are debating each other.  I have to cite some of the differences that I think will make the first VP debate more honest and a better read of actual stances of the two contestants that voters can use to compare them.

Even though they are offensive to many voters, Paul Ryan believes that his policies are correct.  Having a somewhat slanted view of reality based on his faith in Ayn Rand's teachings, Ryan strongly believes in survival of the fittest.  Bill Clinton has aptly named this the "you're on your own" policy.  This belief system leads to such Ryan policies as removing the social safety net from the least fortunate Americans by cutting budgets for those services.  It leads to his desire to change social security into a privatized business.  It leads to Ryan's policies to reduce Medicare to a voucher system.  At the same time, Ayn Rands anti-Christian dog-eat-dog teachings taught Ryan that the most fit and powerful should receive the entitlements in society.  This leads to his policies of reducing taxes on the very rich without consideration for how the shortfall in tax revenue will be made up, even if it means that the less fortunate will pay or lose out for it.  Ryan will not run away from those beliefs.  Unlike President Obama's debate, there will be no surprises for Vice President Biden.

Ayn Rand

Vice President Biden will have an excellent opportunity to show middle class Americans that Ryan-Romney policies will hurt them.  I believe he will enthusiastically cite specific examples of their differences.   

Vice President Biden should reassure Americans that the Democratic Party is the Party of the middle- class while emphasizing that Republicans are the Party of the wealthy.   He should expose the Republicans' true stance on social issues, women's issues, tax plans, jobs plan and military spending and the effects those will have on people and on the deficit.  He should never let any of Ryan's debate  attacks stand un-returned.  If he can do those things he should revive the support of America back to President Obama.  

This debate means a lot and could turn the tide of popular opinion back to Obama.   Perhaps you don't agree but I believe President Obama should get a huge bounce in the polls because of Vice President Biden's victory this night.    

From Romney's Official Web Site - His Tax Plan explained

Romney and Ryan

While on the Campaign trail we hear a lot of platitudes and rhetoric from Romney and Ryan but very little factual information on how they plan to improve our economic condition.  The Romney tax plan has been one of these kinds of issues.  

So for this session, I will review the actual facts as presented by Romney on his official web site, http://www.mittromney.com  When I am done, I think you'll understand why he is so quiet about it on the campaign trail.  Those lines that are in quotes are extracted from Romney's web site.  Those lines that follow the quoted lines are my explanatory comments.

“To repair the nation’s tax code, marginal rates must be brought down to stimulate entrepreneurship, job creation, and investment, while still raising the revenue needed to fund a smaller, smarter, simpler government. The principle of fairness must be preserved in federal tax and spending policy.”

“Lower marginal tax rates secure for all Americans the economic gains from tax reform.”

The following paragraphs cite the various steps in Romney's plan.

Romney's Tax Plan For Individuals:

“Make permanent, across-the-board 20 percent cut in marginal rates"

Marginal rates have the greatest effect on the wealthiest of taxpayers. A twenty percent rate cut is a huge amount but only makes a real difference to the wealthiest among us.   Add to that the tax loop-holes that are only available to the wealthy and soon middle class America will not only be paying a higher tax percentage than the wealthy, but some may even pay more in absolute tax dollars than the rich.

“Maintain current tax rates on interest, dividends, and capital gains”

The categories of income included in interest, dividends and capital gains are used almost exclusively by the wealthy. The current tax rates for these are very low with capital gains as low as 15%. With the many tax loop-holes available to the ultra-rich, this tax rate is already lower than that for most wealthy taxpayers. The point is that this tax favoritism is again directed toward the rich. Most of the middle-class will have almost no tax savings at all because they do not have income from investments.

“Eliminate taxes for taxpayers with AGI below $200,000 on interest, dividends, and capital gains”

Again, these categories are already non-existent for most middle-class Americans. The estimated AGI income of the Middle class Americans is around $50,000. About 94% of America has AGI less than $100,000.  Ask yourself how much of your taxable income (not 401K investments) comes from cash stock trades done throughout the year.  Do you understand that Romney's plan is targeting benefits for the wealthy?

“Eliminate the Death Tax”

This tax is already non-existent for middle class Americans unless an individual has over $5,000,000 in assets.  And who do you think would benefit from such a tax elimination? Let me give you a clue.  It is estimated that the heirs of the each of Koch brothers would benefit by nearly $8 billion dollars if this tax was eliminated

“Repeal the Alternative Minimum Tax (AMT)”

The AMT is paid only if the regular tax amount would be less than the AMT amount. It is not used in addition to the regular tax rate, but as the name implies, as an alternative to the regular rate. It is normally required by individuals and Corporations with incomes over $200,000. Since Romney is proposing to make the regular tax rates for the wealthiest individuals much less, he must repeal the AMT, or his favoritism to the wealthy would be over-ridden by the AMT. So this strategy is not to benefit the middle-class, but instead to ensure that his tax favoritism for the wealthy stays in tact.

Romney's Corporate Tax Plan:

“Cut the corporate rate to 25 percent”

Romney's tax plan for Corporations calls for a 10% reduction in tax rates. Similar to the plan for wealthy individuals it goes without saying that Corporate Tax initiatives would favor the wealthiest in America. It has very little benefit on the middle class. No jobs will be created because Corporations have their taxes cut unless demand increases. The American worker is the source of nearly 75% of the demand in America. Reducing taxes for the rich will only benefit the rich as it has for the last thirty years with very little improvement in jobs or take-home pay for workers. When more workers are employed and wages are improved, demand will increase. This starts from the middle-class out and not from the top down.

“Strengthen and make permanent the R&D tax credit”

This tax advantage is intended to increase spending on Corporate Research. It is difficult to know how much of an impact that this tax credit has had on the economy but it is known what kind of tax advantages are had by Corporations because of it. A study by Ernst and Young in 2005 reported that 17,700 Corporations claimed $6.6 Billion in R&D Tax credits.

“Switch to a territorial tax system”

This is Romney's way of allowing American Corporations to escape paying taxes on any business carried out in foreign countries. A territorial Tax system is one that only taxes income earned in the United States. This would be a huge loop-hole for Corporate America to escape paying their fair share of taxes. It is difficult to estimate how much revenue would be lost since it would likely change Corporate practices to take advantage to the greatest extent possible.  It is easy to say that the reduction in Corporate tax revenue would be extremely high and outsourcing of plants and jobs would likely be increased to the max.

“Repeal the corporate Alternative Minimum Tax (AMT)”

For the same reason as the individual AMT repeal, this would be necessary if Romney's other reductions in taxes are to be effective in reducing taxes for the wealthy.

Ultimately, Romney's tax plan would favor the wealthiest of Americans and do little for the middle class.  With a territorial tax it may even hurt the middle class by taking more jobs out of the country.  And who do you think will get stuck paying the taxes that are being lifted from the rich?  You guessed it...Middle-class America.

If you hear Romney and Ryan proclaim that they are for the middle class during their campaign tour, now you'll know that they are both compulsive liars who will say anything to get your vote.  

Like sheep to the slaughter, millions of our middle class American Republicans are being led astray by the slick double-talk of their so-called concerned Republican leaders.  

Save your vote and your job.  Vote a total Democratic ticket this November.

Time for Republicans to put up or shut up on jobs, jobs, jobs

One year ago today, on September 8, 2011, President Obama submitted to Congress his American Jobs Act.  The bill is intended to facilitate the economic recovery in a number of ways.  It was supported by over 62% of Americans at the time.  Economists supported the Act, saying that it would prevent recession in 2012, increase GDP by 2% and return two million workers to the work force.

However, in the midst of the economic crisis, the bill got no support from Republican Congressmen, was filibustered and died.  The obstructionists were very proud of themselves for voting against this bill and the economic recovery act as well.  A true back-handed lesson to all of us if we think that Republicans in Congress want to represent the middle class as they claim.

Well, President Obama is going to give them another chance to put up or shut up about jobs and helping the middle class.

On the Campaign trail, one day after the Democratic Convention, President Obama is again asking Congress to fulfill their common goal of improving the economy in what has so far been an empty Republican pledge to work on "Jobs, Jobs, Jobs" by approving the American Jobs Act.

The highlights of the American Jobs Act are:

1. TAX CUTS TO HELP AMERICA’S SMALL BUSINESSES HIRE AND GROW

• Cutting the payroll tax in half for 98 percent of businesses: The President’s plan will cut in half the taxes paid by businesses on their first $5 million in payroll, targeting the benefit to the 98 percent of firms that have payroll below this threshold.
• A complete payroll tax holiday for added workers or increased wages: The President’s plan will completely eliminate payroll taxes for firms that increase their payroll by adding new workers or increasing the wages of their current worker (the benefit is capped at the first $50 million in payroll increases).
• Extending 100% expensing into 2012: This continues an effective incentive for new investment. 
• Reforms and regulatory reductions to help entrepreneurs and small businesses access capital.

2. PUTTING WORKERS BACK ON THE JOB WHILE REBUILDING AND MODERNIZING AMERICA

• A “Returning Heroes” hiring tax credit for veterans: This provides tax credits from $5,600 to $9,600 to encourage the hiring of unemployed veterans.
  
• Preventing up to 280,000 teacher layoffs, while keeping cops and firefighters on the job.
  
• Modernizing at least 35,000 public schools across the country, supporting new science labs, Internet- ready classrooms and renovations at schools across the country, in rural and urban areas.
  
• Immediate investments in infrastructure and a bipartisan National Infrastructure Bank, modernizing our roads, rail, airports and waterways while putting hundreds of thousands of workers back on the job.
  
• A New “Project Rebuild”, which will put people to work rehabilitating homes, businesses and communities, leveraging private capital and scaling land banks and other public-private collaborations.
• Expanding access to high-speed wireless as part of a plan for freeing up the nation’s spectrum.    

3. PATHWAYS BACK TO WORK FOR AMERICANS LOOKING FOR JOBS

• The most innovative reform to the unemployment insurance program in 40 years: As part of an extension of unemployment insurance to prevent 5 million Americans looking for work from losing their benefits, the President’s plan includes innovative work-based reforms to prevent layoffs and give states greater flexibility to use UI funds to best support job-seekers, including:

             › Work-Sharing: UI for workers whose employers choose work-sharing over layoffs.
             › A new “Bridge to Work” program: The plan builds on and improves innovative state programs where those displaced take temporary, voluntary work or pursue on-the-job training.
             › Innovative entrepreneurship and wage insurance programs: 
States will also be empowered to implement wage insurance to help reemploy older workers and programs that make it easier for unemployed workers to start their own businesses.

• A $4,000 tax credit to employers for hiring long-term unemployed workers. 
• Prohibiting employers from discriminating against unemployed workers when hiring.
  
• Expanding job opportunities for low-income youth and adults through a fund for successful approaches for subsidized employment, innovative training programs and summer/year-round jobs for youth.

4. TAX RELIEF FOR EVERY AMERICAN WORKER AND FAMILY

• Cutting payroll taxes in half for 160 million workers next year: The President’s plan will expand the payroll tax cut passed last year to cut workers payroll taxes in half in 2012 – providing a $1,500 tax cut to the typical American family, without negatively impacting the Social Security Trust Fund.
  
• Allowing more Americans to refinance their mortgages at today’s near 4 percent interest rates, which can put more than $2,000 a year in a family’s pocket.

5. FULLY PAID FOR AS PART OF THE PRESIDENT’S LONG-TERM DEFICIT REDUCTION PLAN.

• To ensure that the American Jobs Act is fully paid for, the President will call on the Joint Committee to come up with additional deficit reduction necessary to pay for the Act and still meet its deficit target. 

Below is the original presentation to Congress on September 8, 2011.
http://www.whitehouse.gov/videos/2011/September/090811_AmericanJobsAct_Enhanced_HD.mp4


 

Republican optimism is so refreshing it's like drinking soured milk

Mean old white men taking their football and walking off the playing field.  That's how I'm seeing the Republican Party lately.  It doesn't matter to them that the economy is in the dumps and that the American people who they are sworn to represent are suffering.  They will obstruct progress on economic improvement by simply refusing to play.

Many authors have written about this do-nothing Congress that we have been saddled with during this administration's term but writing about it doesn't help.  President Obama, in giving them the benefit of the doubt said that he believed Republican obstruction would end if he were re-elected.  His reasoning included the assumption that there would be no longer any reason to block legislation in his last term because there would be nothing for the Republicans to gain by it.  Now the Republicans, by way of Mitch McConnell have said they won't cooperate with Obama even if he wins the upcoming election.

America should be outraged.  Once again they are throwing America out the window for their own selfish reasons.  This Party does not represent you America.  They are a bunch of angry old white men who think that they are above the Americans they represent.  How many of you voted for your Republican leaders so that they could do nothing but obstruct progress and prevent resolution of problems?  These fools say that if a coach doesn't have any wins in three years, you'd boot him out.  So it follows that if the players all sat down on the playing field during every game in spite of their coach, you should be looking for better players.  

These worthless idiots are showing you how little they care about you.  They are all nice and cozy with their high paying government sponsored jobs with terrific insurance plans and excellent retirement plans.  They are already taken care of.  They do not care about you.

Republican leaders have proven that they are liars.  They have proven that they are obstructionists.  They have proven that they do not represent you.  What are they still doing in office?  

Your vote is the key.  Don't waste it.  Vote Democratic in all elections and let's get this country back on the right path.

Stark comparison between RNC and DNC conventions

The first day of the Democratic convention was inspiring.  It was a stark contrast to the first night of the Republican Convention.  Unlike the Republicans, the Democratic speakers were excellent.  The messages were right on.  And no one lied.

If you recall, the Republicans used that first Convention night to allow their Republican Governors to boast about the great job they had done in their states.  None of them really had much to say about Romney and seemed to be selling their Party instead of their Presidential candidate.  Each of them were sure to continue the lies about Obama's out of context words, his supposed $716 Billion medicare theft and their belief that he is taking the work requirement out of welfare.  One was left with the impression that Republicans are pessimistic, boastful liars.

This night the Democrats showed they are the intelligent, honest and in-touch Party.  Each speaker had positive messages and all focused on the capabilities, experience and accomplishments of President  Barack Obama.

They personalized Obama-Care, showing how much it meant to a real person whose child needed multiple operations on her heart.  The operations were so expensive that at six months old, the child would have used nearly half of her lifetime insurance cap if it weren't for Obama-Care eliminating the lifetime cap limitation.  With another heart operation due in the months after the election she worried because if Romney repealed Obama-Care, she didn't know what she would do.

Democrats fought back against the lies that the Republicans have been telling and attacked Romney's business affairs for having off-shore accounts, not investing in America and for not being transparent with his taxes.

All of the speakers did an excellent job. Two in particular were especially inspiring.  

Deval Patrick has been the Governor of Massachusetts since Mitt Romney left the office.  Patrick brought out the failures of Mitt Romney as a Governor of his state and energized the base with emotionally charged language that supported President Obama and emphasized his accomplishments.  It was the most powerful speech of the night.

President and daughters watching convention

Michele Obama gave a very touching explanation of her history and life with President Obama.  Her story showed the close connection that she and President Obama have with the middle-class.  She explained how his life experiences are what motivate him to help the middle-class.  You could see from the audience reaction that she really had an emotional connection with them.

Judging from this first night, the Democratic Convention should give President Obama a big boost in the public opinion polls.  I think I just witnessed the beginning of the end of Mitt Romney's political career.