A Large Majority of People polled want Tax Reform to make Tax Code Simpler and Fairer

Posted by PITHOCRATES - April 14th, 2014

Week in Review

People fear the IRS.  (Oh, by the way, happy tax day.)  The IRS targeting of conservative groups to silence the opposition has been chilling to say the least.  But the tax code is so convoluted that it takes an army of accountants and tax lawyers to comply.  Easy for the big corporations.  But a nightmare for small business.  For complying is costly.  And tax audits are about as enjoyable as a colonoscopy the hard way.  Without anesthetic.  Creating a great disincentive for people to become small business owners.  Which hurts us all.  For small businesses are the number one job creator in the country.

So a simpler and friendlier tax code would go a long way to create economic growth.  And an IRS less like the Gestapo or KGB would make a lot of small business owners sleep easier at night.  And encourage more people to take the plunge and start a small business.  A majority of people polled in a NAM poll agree.  And believe the time for serious tax reform is now (see New NAM Poll Says Voters Want Candidates Who Support a Simpler Tax Code posted 4/14/2014 on National Association of Manufacturers).

•Over 76 percent of voters will be more likely to favor a candidate who supports comprehensive tax reform.

•Nearly 73 percent of respondents support comprehensive reform to make the tax code simpler and fairer, even if their personal tax burden remains the same.

•An overwhelming majority, 85 percent, believe it is important that Congress and the President put aside partisanship to enact comprehensive tax reform.

We know why the Democrats don’t want to reform the tax code.  For having that power did wonders to silence the opposition during the 2012 presidential campaign.  Allowing President Obama to win reelection with 4 dead Americans in Benghazi.  And having the worst economic recovery since that following the Great Depression.  So when their only campaign strategy is to attack and intimidate the opposition because their policies have failed it comes in handy to have a political force at your disposal to put the fear of God into your opponents.  Especially when you can place that political force above the law.  Which it apparently is based on no one being punished for said targeting of conservative groups.

But the people may be tiring of the same failed Democrat policies.  It’s been over 5 years and the economy is still horrible.  Some 10 million people have left the labor force since President Obama took office.  If you add these people to those the BLS counts as unemployed the unemployment rate (at the end of February) would be 13.7%.  Not 6.7% as officially reported.  So there is a lot of dissatisfaction out there.  At least among those who want a job.  And those who do and are paying ever more taxes with nothing to show for it.  So they may vote for the candidate promising tax reform this fall.  Even if it means voting Republican.  As the oppressive IRS is now forever tied to the Democrat Party thanks to their targeting of conservative groups.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , ,

Some in Canada consider a Parallel Private Health Care System to reduce Wait Times

Posted by PITHOCRATES - March 29th, 2014

Week in Review

People don’t want Obamacare.  And they are getting angry.  Making the Democrats very nervous.  Especially those up for election this fall.  Which is why there is yet another delay in implementing the Affordable Care Act.  To make voters less angry this fall.

This law was never popular.  The American people never wanted it.  The only reason why we have it is because the Democrats pushed it through when they had control of the House, Senate and White House.  And bought off a few recalcitrant Democrat senators (the Louisiana Purchase, Cornhusker Kickback, Gator Aid, etc.) to garner the 60 votes necessary to force this unpopular law onto the American people.  So the Democrats could put us on a path towards single-payer.  Which President Obama is on the record preferring.  Single-payer.  But accepted the Affordable Care Act as a means to that end.  So we can one day have a health care system like they have in Canada.  Because things are so much better in Canada (see Waiting times cost B.C. patients $155.5 million last year: Fraser Institute study by Bethany Lindsay posted 3/25/2014 on The Vancouver Sun).

Waiting for medically necessary surgeries cost British Columbian patients about $155.5 million in lost time last year, a Fraser Institute economist claims in a new study.

It estimates that the total cost to Canadian patients of waiting for treatment after seeing a specialist was $1.1 billion in 2013, up from $982 million in 2012. Quebec had the highest cost at $267.7 million.

Author Nadeem Esmail said the report explores a consequence of waiting for care that Canadians don’t often consider…

Esmail said that in order to address the problem of long waiting times, he’d like to see Canada allow more private sector participation in the provision of health care, including the development of a parallel private system…

Overall, British Columbians waited a median 10.4 weeks for treatment after their first appointment with a specialist last year, compared to 9.6 weeks across Canada, according to the study.

Imagine that.  The Republicans were right.  A single-payer health care system leads to rationing of health care resources.  And sick people waiting for their turn for fewer, rationed health care resources leads to, of course, longer wait times.  This is what the Democrats want to force on the American people.  Even when some in Canada are suggesting a parallel private health care system to reduce wait times down from 10 weeks or so.  Which is why the Democrats had to be as devious as possible to pass Obamacare into law.  With shady backroom deals like the Louisiana Purchase, Cornhusker Kickback and Gator Aid.  And then lying through their teeth about being able to keep the health insurance and doctors you liked and wanted to keep.  A lie so bold it earned President Obama the Lie of the Year from PolitiFact.

Will this anger boil over this November at the 2014 midterm elections?  Will voters remember how the Democrats lied and made backroom deals to change a health care system we liked and wanted to keep?  Apparently President Obama thinks so.  Which is why he violated the law once again and extended the enrollment period for Obamacare.  Without having Congress rewrite the law.  To make this latest change in the Affordable Care Act (and the 30 or so that preceded it) legal.  But then again, when the media keeps giving the president a pass on his law-breaking activities what incentive does the administration have to act lawful?  It’s kind of like Vladimir Putin taking Crimea.  The way Putin sees it no one is going to do anything when he breaks the law so what incentive does he have to abide by international law?  If anything he’s probably puzzled why President Obama is saying anything at all.  For what’s a little law-breaking between two law breakers?

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , ,

People seeking Privilege destroyed the City of Detroit

Posted by PITHOCRATES - March 16th, 2014

Week in Review

The history of the world is not pleasant.  It is one where brutal oppression has been the rule.  Where a king or a lord or a chieftain used brute force to establish a leadership position in a tribe.  Then that tribe followed that leader to conquer other people.  To rape and pillage those around them.  As these groups grew larger power concentrated in the few hands at the top.  Who lived very well.  As did the people who protected them.  But the people beyond this inner circle?  They were expendable.   And lived nowhere near as well.  For there just wasn’t enough for everyone to live like that.  Which is why people want power.  So they don’t have to live the miserable lives of the masses.

Times have changed.  But one thing hasn’t.  There is always a group of people that wants to live better than the masses.  Today some use politics to give themselves privilege.  Like the United Auto Workers.  And public sector unions.  Two things that led to the bankruptcy of Detroit.  See how people seeking privilege destroyed one of the greatest cities in the world.  The Motor City.  The city that won World War II.  See how it fell from glorious heights into the shell that it is today in this documentary (see BANKRUPT…. How Cronyism And Corruption Brought Down Detroit by FTR Media in conjunction with Ben Howe and Mister Smith Media posted 2/1/2014 on FTR Radio).

The message is clear.  And a clarion call for the elections this fall.  Detroit is a Democrat city.  And it has been a Democrat city for decades.  Detroit was a model of Democrat Party rule.  And that model failed.  As it is failing—or will fail—in other large Democrat cities.  And, perhaps, a Democrat-controlled United States.  Something we may be able to avoid if we stop voting for the party of privilege.  The Democrat Party.

www.PITHOCRATES.com

Share

Tags: , , , , ,

Senate sends LGBT Bill to House to Fail for Political Points in the Next Election

Posted by PITHOCRATES - November 9th, 2013

Week in Review

There are millions of transgender people who are being discriminated against in the workplace just as there are millions of people signing up for Obamacare.  President Obama can say both.  But even he must know neither is true (see Senate passes LGBT anti-discrimination bill by Leigh Ann Caldwell posted 11/8/2013 on CNN).

For the first time, the U.S. Senate approved legislation that would protect gay, lesbian and transgender employees from discrimination in the workplace…

Opposition in the Republican-controlled House is strong, minimizing any chance the measure will become law. House Speaker John Boehner also opposes it.

Still, President Barack Obama urged the House to take the bill up and said he would sign it.

“One party in one house of Congress should not stand in the way of millions of Americans who want to go to work each day and simply be judged by the job they do,” the President said in a statement. “Now is the time to end this kind of discrimination in the workplace, not enable it. I urge the House Republican leadership to bring this bill to the floor for a vote and send it to my desk so I can sign it into law.”

The bill would provide the same protections for LGBT workers as are already guaranteed on the basis of race, gender and religion.

It would not be lawful for employers to discriminate based on a person’s “actual or perceived” sexual orientation or gender identity…

“The Speaker believes this legislation will increase frivolous litigation and cost American jobs, especially small business jobs,” Boehner’s spokesman, Michael Steel, said.

Millions?  That must mean there are more than 2 million transgender people in the United States trying to get a job as this law basically adds “a person’s “actual or perceived” sexual orientation or gender identity” to a long list of federal protections.  According to a study by the Williams Institute only about 0.3% of adults are transgender.  According to the U.S. Census Bureau the U.S. population is about 313.9 million.  If we subtract those under 18 years of age (23.5%) and retirees (13.7%) from the total population that leaves 197.1 million people of working age.  Of this 197.1 million only 591,414 are transgender according to the Williams Institute study.  Which is 0.19% of the total population.  In comparison the latest Employment Situation Summary from the BLS shows the official unemployment rate (U-3) is 7.3%.  While the more accurate unemployment rate that counts all people who can’t find a job is at 13.8%.  But the more accurate picture of the economy is the labor force participation rate.  Which is now at 62.8%.  Meaning that there are 91.5 million people who have left the labor force because they can’t get a job.

There are not millions of transgender people being discriminated against in the workplace.  As there are only about a half million people who call themselves transgender in the nation.  But there are 91.5 million people who can’t find a job.  Perhaps that is the problem Congress should be working on.  Rolling back one of the most business-unfriendly environments ever to exist in the U.S.  To create jobs for the 91.5 million.  As well as the half million.

This legislation is, obviously, a political maneuver.  The Senate passed this bill so it can die in the House.  So they can say, “See?  House Republicans hate LGBT people.”  Which is how the left wins elections.  By making their base hate Republicans.  Which is why President Obama was able to win reelection despite his policies keeping 91.5 million people out of a job.  Despite a part of his base—the young—suffering the highest levels of unemployment.  But they will continue to suffer and vote Democrat.  Because Republicans hate LGBT people.  Even if it’s not true.  As long as there is a perception of it that’s good enough for them.  Even though it would be easier for LBGT people to get a job if there weren’t 91.5 million people on line looking for a job.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , ,

More Unions are Angry about the Unintended Consequences of Obamacare

Posted by PITHOCRATES - May 26th, 2013

Week in Review

The unions and President Obama were tight.  Once upon a time.  They helped the president win two elections.  Dumped truckloads of campaign money into his coffers.  And the thanks for all of this?  Obamacare.  Which they once enthusiastically supported.  But now they are learning what the opponents have been saying about Obamacare all along.  That it will make health insurance more expensive.  And likely that people will lose coverage they like and want to keep.  It’s getting so bad that unions are now coming out in opposition of Obamacare (see Some unions now angry about health care overhaul by SAM HANANEL, Associated Press, posted 5/24/2013 on Yahoo! News).

…some unions leaders have grown frustrated and angry about what they say are unexpected consequences of the new law — problems that they say could jeopardize the health benefits offered to millions of their members…

“It makes an untruth out of what the president said, that if you like your insurance, you could keep it,” said Joe Hansen, president of the United Food and Commercial Workers International Union. “That is not going to be true for millions of workers now.”

The problem lies in the unique multiemployer health plans that cover unionized workers in retail, construction, transportation and other industries with seasonal or temporary employment. Known as Taft-Hartley plans, they are jointly administered by unions and smaller employers that pool resources to offer more than 20 million workers and family members continuous coverage, even during times of unemployment.

The people who work in construction may work for many different construction companies throughout their working life.  But they have consistent benefits because of the one constant during their union life.  Their union membership.  Which makes these jobs different than someone working in the same UAW assembly plant all of their life.  Who also work for the same company all their working life.

A lot of people will stay in a job they don’t like because of their health insurance benefit.  Construction workers don’t have to worry about being stuck in a job they don’t like.  If they don’t like an employer they can quit.  Go to the union hall.  And pick up another job.  All without any interruption in their benefits.

Construction companies collectively bargain contracts with these unions.  For example, electrical contractors will negotiate a contract with the local chapter of the union representing electricians.  And health care costs are a big part of those negotiations.  For it is these electrical contractors that pay for the health insurance plans managed by the union.  And it’s costly.  Raising a contractor’s cost when bidding new work.  Which is why union construction companies try to keep nonunion companies from bidding their work.  Because nonunion companies don’t have this massive cost to pay for this generous union benefit.  Which can provide uninterrupted health insurance for an unemployed worker sitting at the hall for months waiting for another job.  As well as for his wife and his children.  Something people don’t enjoy when they get laid off from most other private sector jobs.

The union plans were already more costly to run than traditional single-employer health plans. The Affordable Care Act has added to that cost — for the unions’ and other plans — by requiring health plans to cover dependents up to age 26, eliminate annual or lifetime coverage limits and extend coverage to people with pre-existing conditions.

As it has added to the cost for ALL insurance plans.  There’s a reason why before Obamacare plans didn’t cover dependents up to age 26, had annual or lifetime coverage limits and excluded pre-existing conditions.  Because they add great cost.  Insurance companies aren’t greedy.  They’re just trying to provide insurance.  Having people pay a little bit for a policy to insure against a large financial loss.

For insurance to work you need a lot of responsible people paying a little bit for those policies.  Forcing plans to cover pre-existing conditions, though, makes people NOT buy health insurance.  For they think why should I pay years of health insurance premiums when I can just buy a policy when I’m sick?  Which they will.  So they will consume a lot of health care costs that have to be paid by people who are buying policies.  While contributing nothing to the pot for others.  Making those policies under Obamacare very expensive.  Because with preexisting conditions covered a few people will now have to a pay a lot.

Workers seeking coverage in the state-based marketplaces, known as exchanges, can qualify for subsidies, determined by a sliding scale based on income. By contrast, the new law does not allow workers in the union plans to receive similar subsidies.

Bob Laszewski, a health care industry consultant, said the real fear among unions is that “a lot of these labor contracts are very expensive and now employers are going to have an alternative to very expensive labor health benefits.”

“If the workers can get benefits that are as good through Obamacare in the exchanges, then why do you need the union?” Laszewski said. “In my mind, what the unions are fearing is that workers for the first time can get very good health benefits for a subsidized cost someplace other than the employer.”

You see, the Obama administration cannot give a subsidy to the unions.  Because they have to pay for subsidies they give to low-income people with a ‘tax’ on other insurance plans.  That is, the people who can afford to pay for health insurance have to pay the subsidies for those who can’t.

The ultimate goal of Obamacare is to put the private health insurers out of business so the government can step in and get what they want.  National health care.  Of course, doing that has one big drawback for these unions.  With national health care you don’t need to belong to a union any more for the kind of health care benefit that provides for you and your family even when you’re unemployed.

Labor unions have been among the president’s closest allies, spending millions of dollars to help him win re-election and help Democrats keep their majority in the Senate. The wrangling over health care comes as unions have continued to see steady declines in membership and attacks on public employee unions in state legislatures around the country. The Obama administration walks a fine line between defending the president’s signature legislative achievement and not angering a powerful constituency as it looks ahead to the 2014 elections.

The cost of unions has pushed most of U.S. manufacturing offshore.  Public sector unions are bankrupting city and state governments.  And even the state of Michigan, home of the automotive industry, has voted to become a right-to-work state.  The heyday of the unions is over.  And they’re struggling to hold onto what little they have.  Especially in the private sector.  Where their ranks have done nothing but fall since the Sixties.

The unions poured money into the reelection of President Obama because Democrats are supposed to make things better for unions.  Not worse.  At this rate unions may start voting Republican.  For though they may not have as generous union contracts they may at least still have union contracts.  Because with the business-friendly environment of the Republicans there may at least be a building boom.  And more union construction jobs.

As the 2014 midterm elections draw close you may see a louder voice for the repeal of Obamacare.  This time coming from one-time vocal supporters.  Perhaps giving Democrats a difficult time at winning their elections.  Unless they come out for the repealing of Obamacare, too.  For unions may have at one time thought about how nice it would be to get rid of that costly benefit from their benefit package.  Which will happen if Obamacare evolves into national health care.  But now they’re seeing that this outcome may make unions irrelevant.  And are likely thinking, “My God, what have we done?”

It just goes to show you have to be careful what you wish for.  Because sometimes those wishes come true.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , ,

Wall Street is Doing Well because the Fed’s Inflationary Policies keep Raising Prices

Posted by PITHOCRATES - March 9th, 2013

Week in Review

Investors like rising stock prices.  They don’t like falling stock prices.  Which is why Wall Street likes inflation.  And fear deflation.  Even though the economy is still sluggish with more and more people dropping out of the labor market (which is why the unemployment rate fell) investors are bullish.  Because of the Federal Reserve and all of their quantitative easing.

The more the Fed increases the money supply the more inflation there will be.  Investors like that.  Because inflation increases prices.  Such as the prices of their stocks.  As well as gasoline and groceries.  Making the current economic times odd.  For the stock market recently reached a record high.  Even though the labor participation rate (see THE EMPLOYMENT SITUATION —FEBRUARY 2013, page 4) continues to fall.  It is now at 63.5%.  Which means 89,304,000 people are not in the labor force.  A record high.  But you wouldn’t know this by looking at the official unemployment rate.  Or the stock market (see Stocks And Inflation: The End Of An (Abnormal) Affair? by James Picerno posted 3/69/2013 on Seeking Alpha).

The positive correlation between the market’s inflation forecast and the stock prices appears a bit looser these days, but it’s premature to declare that the link has been broken…

Normally, rising/high inflation doesn’t inspire the bulls. But the last several years have been less than normal in terms of the macro backdrop. The crowd has remained worried about disinflation/deflation, which means that signs of higher inflation in the future have soothed anxious traders…

And why not?  For when have inflationary policies ever caused an asset bubble? That burst into a long and painful recession?  Except the housing bubble that brought about the 1990-91 recession.  The dot-com bubble that brought about the 2000-01 recession.  And that other housing bubble that brought about the 2007-09 recession.  AKA The Great Recession.  So there is no worry that these record highs in stock prices aren’t just another bubble.  Just waiting to burst.  Bringing on another deflationary recession.  I mean, what are the odds of that happening again?

Actually, the chances are pretty good that 2013 will have a very painful recession.  Because we don’t have any real economic growth.  These gains in the stock market aren’t because businesses are expanding and hiring.  Not with a falling labor participation rate.  No.  For all intents and purposes we are still in the 2007-09 recession.  Only we should probably call it the 2007-(end date to be determined) recession.  Because the president’s economic policies haven’t helped the economy yet.  And probably never will.

There’s no reason to believe that the fifth year will be any better than the previous four years.  In fact, it will probably be worse.  In fact one would almost get the impression that he is not trying to help the economy.  But, instead, trying to destroy the Republican Party.  So he can win the House of Representatives back in 2014.  So he can pass even more anti-business policies.  To transform the country into something it was never before.  Less prosperous than communist China.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , ,