Feb

28

Tax OTC Derivatives

February 28, 2010 | Leave a Comment

There are 683 trillion dollars in OTC Derivatives contracts. I am not kidding. I am not making this up (http://www.everydollarmatters.com/otc_derivatives.php). Thinking that we can regulate this nonsense is a joke. We do not need to regulate this we need to stop it altogther. Here is my solution. It is one that could also significantly reduce out national debt in the next few years.

Tax OTC Derivatives.

First, on all new derivative contracts we will require a 1/2% on the face value of the contract itself, payable at time of the contract signing.  1/2% may not seem like much but on a $100 million dollar contract (which is not a big contract in that world) that comes out to a cool $500,000. For every trillon dollars written, Uncle Sam collects 5 billion dollars.

Derivatives started in 1980 (roughly) and have grown from 0 to $683 trillion in contracts. Simple math puts us at about 23 trillion per year in new contracts (Actually the number is much higher that that), but we will use that as our figure. This gives us 100 billion each year in new tax revenues.

But we are not done.

For payouts on a derivatives contract Uncle Sam collects a flat 25% tax.

We could be out of debt very quickly. In all reality, what will happen is this taxation will force this sector to quickly regulate itself.

 

Feb

28

On Wednesday by a vote of 406-19 the House passed HR4626. This bill will end the Health Insurance Industry’s 64 year Federal Antitrust Exemption under the McCarren-Ferguson Act.

What is astounding is how little media attention this vote got! The House seems to be the one body of government working “for the people.” The fact that this vote was so bi-partisan (in an election year) and so overwhelming in numbers says a great deal about how the American people feel about the healthcare insurance industry.

We can rest assured that it will not pass the Senate.

The two biggest problems we face today in this country are the “do nothing” Senate and our media. One is useless, the other dangerous. Both are the pawns of big business and special interest.

As much as I against a lot of the opinions and attitudes of the tea party movement, and the likes of Glenn Beck. I am aligned with them on one very important point. That is I believe government and big business are not looking out for the best interests of you and I.

You know, Americans and Communists formed an alliance during WWII in order to accomplish our objective and rid ourselves of the Nazi’s and Facists attempts at taking over the world.

I would watch out Washington, both parties, as I am not the only moderate/independent that feels this way. I think the House gets it. But the Senate remains utterly clueless (both parties), and the more days that go by I am not so sure about the White House.

I still believe President Obama cares about “we the people”, but he is catering far too much to Wall Street and the special interests for my good.  And, his recent signing of a 1-year extension to the Patriot Act, which violates our constitutional rights is not sitting well with me and will not sit well until we GET RID OF IT!

It is time for the White House and the Senate (both parties) to get a clue.

Feb

25

More lies.

The Bush Tax cuts which were debt financed were passed by Dick Cheney casting the final 51st vote in the Senate using reconciliation.

The Bush Tax cuts represented 2.48 trillion dollars of unfunded debt from 2001 through 2010.  What may be in dispute are the numbers. If we go with the CBO’s more conservative numbers we are still at 1.8 trillion dollars. This is not a big thing?

The Congressional Budget Office (CBO) estimated that extending the 2001 and 2003 tax cuts (which are scheduled to expire in 2010) would cost the U.S. Treasury nearly $1.8 trillion in the following decade dramatically increasing federal deficits. This comes directly from their report titled “An Analysis of the President’s Budgetary Proposals for Fiscal Year 2008″ that was released on March 2007. Here is a link to this report…

http://www.cbo.gov/ftpdocs/78xx/doc7878/03-21-PresidentsBudget.pdf (see page 6 of the document, pdf page 16). The line item on that page is titled “Subtotal, proposed extensions.”

Also, to see what you actually received for this tax cut see my blog entry Repealing the Bush Tax Cuts.

 

 

 

 

Feb

25

If you missed it, you missed a great hockey game. Strength, grace, and incredible athleticism. Rookie goalie Shannon Szabados played flawless in the goal for the Canadians. Eighteen year old skater Marie-Philip Poulin scored the games only two goals. Canadians 2 - US 0 in an remarkable game.

Congratulations to Canada on their win. Both teams left it all on the ice.

Feb

25

Representative Pelosi at the recent healtcare summit said the “Insurance companies have acted shamelessly.”

I disagree. The insurance companies have acted like a “for profit” business needs to act. There fiduciary duty is to their shareholders and it is to making a profit. A business makes money by cutting its bottom line.

Dropping people they are covering that have a higher probability for illness and disease is a smart business decision. Not wanting to cover people with pre-existing conditions is a good business decision. Covering the elderly that have a higher need for care is a good business decision. Without medicare how may people over 65 do you think the insurance companies would be covering.

No. Health insurance companies are acting the way they are supposed to act. This is a fact. You may not like it, I may not like it, but this does not change the reality of the situation.

Feb

24

It will be more of the same.

Republicans coming with no ideas. If you read what they have proposed they have not proposed anything substantative. It will be more of the same. They are really out of touch with what the mainstream populace wants.

I suppose I have to give credit for our President for playing this out. It is sad we only have two and a half branches of our geovernment trying to govern. Our nation is being held hostage by 40 Senators (jury is still out on Scott Brown).

Get to reconciliation and lets begin round one of healthcare reform.

Feb

22

I received this in an email from my father. It is presented in-full.

“Hi Guys,

I don’t normally pass on political stuff, but in this case I feel that Senator Bayh needs to be read by as many people as possible.

I know some of you already read the New York Times and have seen this article.

It’s clear that Evan Bayh is a “Man for all Seasons” and is saying what a lot of us are feeling.  Some of you are Republications, some Democrats, some Independents and some are out on the far ends of both the right and left wings.  You know who you are.  I am on the far left, so you know where I stand on most issues.  However, in this case, I agree with almost everything Senator Bayh is saying.  I can’t believe I’m saying this, but, at this point in time, we need a cooperative centralist view in government (both Democrats and Republications) to establish a balance and stop the gridlock.  Perhaps, even get something done.  It’s time we start supporting politicians with centralist views and put a damper on all the garbage being spewed by all this partisan crap, Tea Party garbage, filibusters and other nonsense.  There’s a time and place for radical disruptive behavior, (God knows I love a good fight) but now’s not the time.   Do what you will, but do consider what Senator Bayh has to say.

John”

…My take… 

These days in almost all walks of life we seem to have forgotten that it is okay to accept good ideas on merely the merit of the idea itself. Even people on the fringes can have a good idea. Yet, routinely we dismiss good ideas solely on there origin.

Having said all this I have one more observation to make. It takes “two to tango.” People seem to be calling for “bury the hatchet.”  If only it were that simple. What we have today is the party out of power and their base not willing to come to the table. It could very well be that only the media is reporting the extreme fringes of the conservative movement. But there would seem to be very few people speaking up.

We need to continue to have a free exchange of ideas and to do so in as civil a manner as we can. At the end of the day, and within the guidelines of our constitution and civil discourse we need to allow the party in power to govern as they were elected by the majority.

 

Feb

21

Have you ever noticed that? I do all the time. Bother you? Bothers me. Lots of catchy slogans, lots of hyperbole, but hardly ever does one hear it directly quoted.

Why is that?

Could it be that most folks have never read it?

Could it be that they have read it and realize that they cannot use the constitution to support their own positions?

Why is it?

Curious? …I am.

Here is quote from the constitution:

“Section 8. The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States”

I would like to offer a few points here.

For those that claim that our Federal Income Tax is unconstitutional because of issues concerning apportionment.  Note that section 8 authorizes “Taxes, Duties, Imposts and Excises” be collected for the purpose of paying its debts. But, it only mentions “Duties, Imposts and Excises ” needing to be uniform. It purposely excludes the word taxes.

Next point, section 8 authorizes Congress the power to collect revenues for not only our defense, but also for the “general welfare” of the United States. We have a healthcare system that in the last 20 years doubled expenditures when weighed against GDP.

We have insurance companies that have dropped over 2 million US Citizens from covereage. We have young people and other reckless citizens that refuse to buy healthcare but do not think twice about showing up at an ER knowing they must be care for in some way. Frankly, I want to blame the insurance companies. I really do. But, they are involved in a for profit business. The less they dole out in expenditures (our care) the more profit they make. That is their charter.

How is this problem not related to the “general welfare” of the Untied States?

You may not agree on the solution, but share with me an area of the constitution that will make your case that healthcare reform is in violation of the constitution. I just have cited you section 8 which unless you are a total bullshit artist and spin-meister (The name Dick Armey comes to mind) is in direct support of healthcare reform. This section also justifies single payor and even a complete takeover of healthcare by our government. This is not something I would be in favor of. But our constitution supports it.

Finally, I would suggest all you folks out there pick up and read our constitution. You will find that many of your positions are quite baseless when trying to tie them directly to the constitution.

Finally, section 8 says, and I quote… ”Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States”…

Hmmmmmm, “to pay the Debts.”

Maybe you could all quit the talk about bloodshed and revolution. The constitution also has provisions for dealing with idiots like you. If you have something that our government is doing that is unconstitutional then I am with you 100%…

Maybe some of you could become rationale again and we could start to have a meaningful dialog about how we are running up debt for things we really do not need, and that we are paying for it with debt. I believe in this we may have actually stumbled across something that is unconstitutional.

Like say… giving the American public a tax cut for 7 years that had to be financed through debt from other countries.

 

 

Feb

18

It is one thing to take a position on an issue. It is what makes our country free. It is even okay to take an extreme position on an issue. But when you advocate violence for your ideals you need to be accountable. Words matter.

There are people out there like Joe Stack and Scott Roeder and Timothy McViegh. Many more people like them. Your words matter. If you want to change the minds of the American public you need to do it through civil discourse.

Flying a plane into a building was an act of terrorism on 9/11. It still is. The size of the plane does not matter, nor does the citizenship of the pilot.

Feb

17

Check These Items That Fit Your Belief System, and the type of America you wish to be a part of

[ ] A nation is an organic community that requires strong leadership

[ ] Authoritarian nationalism with a corporatist economic system

[ ] Ability to commit violence and wage war in order to keep the nation strong

[ ] Identifies violence and war as actions that create national regeneration

[ ] Resists autonomy of cultural or ethnic groups

[ ] Blames capitalism and liberal democracies

[ ] Advocates a single-party state

I will bet none of you checked any of these. If you did, maybe one or two.  Yet if this does not spell the former Bush Administration, The Tea Party Movement, The incessant filibusters of the current minority party even on legislation they would normally support, and even many of you well educated Americans that for whatever reason cannot see the plain truth that is before you. 

This list is Glen Beck

This list is Bill O’Reilly

This list is Sean Hannity

This list is Fox News (sic)

This list is the Patriot Act

This list is two wars we still wage

This list is why you do not see a single Black, Asian, or Hispanic face in a Tea party crowd

This list is Sarah Palin

This list is Rush Linbaugh

This list is the Federal Reserve

This list is Wall Street

This list is the Health Insurance mobsters

This list is Wal-Mart

This list is what many in the Christian right have become

…This list is the very definition of FASCISM

…Joe McCarthy here we go again

— keep looking »

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