Scrap the Cap on Soc

Social Security has been one of the pillars on which the US has developed a solid Middle Class; and now that the Middle Class is under attack, Social Security is also enduring an assault. Politicians and some of their media puppets (Fox News) insist on telling us Social Security will run out of money in the future.

Those who understand what has happened know that politicians like George W. Bush have raided the Social Security Trust Fund to invade Iraq and fight a war in Afghanistan. The bottom line is that The Social Security System is quite capable of supporting itself and caring for those retirees who have invested part of their wages in the system. If the system were a "locked box" as Al Gore in 2000 suggested, it would be self supporting.

The "Locked Box"
that was never locked

On the other hand, George W Bush raided the fund and now Republicans are asking workers to pay more and telling potential retirees to work longer than the promised retirement in order to make up for the money that politicians like GW Bush have removed. However, there is an opportunity to strengthen the system, but most politicians don't want to consider it -- raise the maximum  earnings level on which workers pay Social Security taxes.

At the present time the limit is $118,500. The result is that corporate executives making hundreds of million dollars a year pay Social Security taxes only on the first $118,500, There seems to be no logical reason for such a maximum. Why not tax all earnings?

Since 1983 a larger and larger share of earnings have escaped the Social Security tax. Then (1983) 90% of total earnings were taxed; today only 83% is taxed. 17% of total earnings is not being taxed. If the Social Security System needs additional revenue, eliminate the the maximum earnings limit. Tax all earnings equally.

The growing divide in wages in the US, means that since the top earners, millionaires and billionaires, contribute only on the first $118,500, many of them have already reached the max in February while the average wage earner will be paying the tax all year long. These average wage earners are also now in the unenviable position of seeing their wages decrease or stagnate while their productivity continues to increase.

Our seniors, both now and in the future, who pay into Social Security over their lifetimes should be "secure" in their retirement, and we can make that possible by having wealthy Americans pay their fair share.

A Modest Proposal: A Small Sales Tax for Wall St.

Congressman Chris Van Hollen

One of the few taxes that Republicans espouse is the sales tax. which creates a disproportionate burden on the lower middle class and the poor. GOP governors, like John Kasich in Ohio, continually try to lower the fair, graduated income tax while they raise or extend the sales tax to cover more services. That being the case,  one would logically conclude that Republicans would favor a sales tax on financial transactions. Not happening.

So surely the Democrats would be fighting tooth and nail to pass such legislation. Again, not happening.

Since a small Financial Transaction Tax (FTT) is such a simple, common sense approach to raise much-needed revenue and solve other problems, it is difficult to understand why there is not a groundswell of support. Perhaps the key is the word "financial." Few politicians, especially after Citizens United, want to incur the wrath of Wall Street and the Big Banks.

A tax on financial transactions is often referred to as a "Robin Hood Tax," in that the wealthy will be paying a larger proportion than the middle and lower classes.

Maryland congressman, Chris Van Hollen, proposed a program for a FTT similar to the one the European Union is installing next year. "It would tax stock trades at a rate of 0.1 percent (10 cents on $100) and trades of derivative at a rate of 0.01 percent (1 cent on $100). Extrapolating from a recent study of the revenue such a tax would raise in Europe, Van Hollen's tax would raise more than $130 billion a year or more than $1.5 trillion over the course of a decade."*

Vermont senator and democratic presidential candidate, Bernie Sanders, introduced a bill in the Senate to offer a free public college education to all qualified Americans. As in Europe, this education plan would be paid for with a financial transaction tax.

Of course, those day-traders who make many trades a day will have an expense from which they have been exempt. But that may be a good thing. Those people may consider getting a real, constructive job. Or they will continue on as before and pay the toll.

But the bottom line is this: if a 50-week-a-year laborer has to pay sales tax when he purchases a pair of jeans for his son, why doesn't an investor have to pay a much lower tax when she or he buys a stock, not out of need, but out of greed.

And if you are going to tell me such a measure will shut down Wall Street, excuse me while I roll on the floor laughing.

*Deane Baker Nation of Change, May 11, 2015




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USGA Plays Games with the US Open

Chambers Bay Golf Course

The United States Golf Association has an identity problem. These august ladies (I assume there are some token women involved) and gentlemen are attempting to make the US Open resemble the British Open.

Most Golfers in the United States play on courses with trees, meandering streams or lakes, and green fairways/greens; but the USGA has chosen to stage the US Open at Chambers Bay (a course built on a sand/gravel pit) with one tree, a busy railroad track, sprinkler heads in the middle of greens, the remains of old buildings, and dormant or dead grass on the undulating fairways and bumpy greens, described by one golfer as "putting on broccoli heads."

In addition the USGA has chosen  not only to make the course the longest in history, but also to change par 4s to  par 5s and vice versa from day to day  I can't imagine the United States Tennis Association changing the heights of the net from day to day in the US Open, or Major League Baseball changing the distance from the pitcher's mound to home plate in the World Series. Why does the USGA feel the need for these gimmicks?

Enough with the gimmicks, USGA. Don't game the game.

15th hole

Fox sports announcers keep referring to the course as "beautiful Chambers Bay," and I guess it is beautiful if you are into moonscapes and railroad container cars. The only hole I could possibly consider beautiful is the par 3 15th (length varies significantly from day to day) as it features the course's only tree and the viewers and golfers are looking out over Puget Sound.

This is not a course to which US golfers can relate. We all appreciate the British Open because it is played on typical British course. It's time the USGA  stops being gimmicky and plays the US Open on typical US courses.