The Fact of My Ignorance

Hey look, a timely article for a change!  Finally I’m addressing a phenomenon before it happens and not days/weeks after it has passed.  Anyway, you may or may not have heard about the “tea-party” anti-tax movement that’s developing around the country.  This tea-party movement consists of people gathering in various cities on April 15th holding protests about the “terrible taxes burdening americans”, and what they see as America’s coming descent into socialism.  Here’s a quote from one of the two fawning FoxNews articles that were up about it today.  From one of the organizers of the tea party protests:

“People are getting killed — they’re getting hammered with taxes and it’s not the way this country is supposed to be run. … We want to fight back,”

Are people really getting hammered with taxes?  I don’t challenge their right to gather and protest taxes or whatever they want, but they may want to check a few facts first.  And to make it convenient for them, I’ve gathered the pertinent graphs and information after the jump.  I should also note before I begin that not all tea-party participants are claiming taxes are too high and that some are doing this for other reasons (to protest the stimulus, just to express their anger that McCain lost etc), I’m not addressing those concerns here.  But these tea-parties are being billed as “anti-tax protests” so this is a significant part of what they’re organizing for and this article will address that issue.  Anyway, as best as I can deduce, here’s some relevant historical perspective… Continue reading

At this point I think most political observers agree that the selection of Tim Geithner for Treasury Secretary was not one of President Obama’s best decisions.  Its not his tax evasion that gets me, though that’s disappointing in its own right, its his apparent inability to recognize the great importance of image in his position.  I’ve just recently watched Geithner’s debut press conference from last week and it was shockingly poor.  Part of Geithner’s problem is that, while he’s undoubtedly an intelligent person with nearly ideal experience and education for his position (he has graduate degrees in East Asian Studies as well as International economics), his boyish features make him look like he’s still a frat boy from some angles.  And his jilted speech, constant eyes on the tele-prompter, nervous rocking back and forth, and deer-in-the-headlights facial expression make him come-off… Continue reading

Screenshot from real life political computer game: "Take Back Illinois"

Well the Monday night deadline for CA politicians to agree on a budget came and went so Schwarzenegger was forced to send out 10,000 layoff notices to state employees.  The reason for the stall?  They were one vote short in the state senate.  California has a very unusual arrangement that requires a two-thirds majority in both houses of congress for a budget to be passed.  And after months and months of negotiations and concessions to republicans (the bill now consists of millions more in spending cuts than tax hikes) they were only able to entice 2 of the necessary 3 GOP senators to support the bill.

So when everyone woke up the next day and 10,000 more Californians were facing unemployment, did any of the senators who had voted against the bill, have second thoughts?  Did they acknowledge in anyway that thousands of CA families would now be suffering (and not to mention on the unemployment and/or welfare roles of the state) because of their posturing?  Nope.  In fact they gave a big raspberry to bi-partisanship and ousted the senate minority leader who helped negotiate the compromise bill.  The reason for these legislators’ ire?  The bill still contains tax hikes.  Literally, many of them will not vote for the legislation if it contains any tax hikes at all.

Unfortunately, CA is facing a 42 billion dollar deficit that absolutely cannot be fixed by spending cuts alone.  Governor Schwarzenegger recognizes this:

“If you think that you can do this budget without any increase in revenues then you have a big math problem because you can’t erase a $42 billion deficit without revenue increases,” Schwarzenegger said. “I hate taxes, but you when you are faced with that kind of reality, that’s what you have to do. We can only solve this problem with additional revenues and with spending cuts.”

We slashed 11 billion from the budget last year and the current budget has 15.2 billion in further spending reductions in the works.  I don’t think we can cut our way to solvency without unconscionably… Continue reading