Economic Recovery Compromise Makes Rich, Richer: The Alternative Minimum Tax

The President's Economic Recovery Act plan, called the Economic Stimulus and much needed, is headed toward passage but only because of a compromise that essentially makes the rich, richer. It's also a good reason why I believe we need to have a program that gives at least $3,500 to each American under $100,000, rather than just tax credits.

Reportedly, $100 billion was shaved off the plan, but according to the blogger LithiumCola at The DailyKos, the big reason why the plan was cut, and why the Senate plan was about $80 billion more expensive than the House plan, was the installation of a provision adjustment in what's called The Alternative Minimum Tax, such that the AMT increases incomes for those making more money, whereas it has little if any impact on those making less, specifically:

Haley points to a study at the Tax Policy Institute which shows that slashing the AMT increases the incomes of Americans in the top quintile by 1.3%, Americans in the next-highest quintile by .7%, the middle quintile by .1%, and does nothing at all for Americans in the bottom 40% of incomes.

To put that another way, Americans in the middle 20% of incomes will get on average a whopping $52 because of Senator Grassley's demand, those in the second-highest 1/5th will get $502, while Americans in the top 1/5th of incomes will get an average $2,593 -- and that last one includes those in the top 5%, who will get an average of $4,511. This is what the WSJ calls "shielding millions of middle-income Americans from the so-called alternative minimum tax."

It's for this reason I continue to push for a targeted stimulus of $3,500 for every American under $100,000 in income, or an planned allocation capped at 100 million people. The total cost would be $350 billion, and worth every penny.




According to the Federal Reserve Board 2004 survey of consumer finances, the average balance for those carrying credit card balances was $2,200, but many American families do not carry a credit card balance, so the fear that this $3,500 would be used only to retire credit card debt is unfounded. Indeed, there's more evidence to support the observation that the money would be used -- especially by those in the lower income categories -- just to keep a roof over their heads.

US Sherriff's don't want people evicted as record home foreclosure rates are expected. This proposal, combined with relaxed mortgage rates and anticipated refinancing plans, could help to keep Americans in their homes for at least an additional two years. That buys enough time for the other job-producing aspects of the Economic Stimulus plan to take effect.

In closing, given the trillions of dollars sent directly to corporations, $350 billion to the Americans who need it the most is not too much to ask for.


news

President Obama addresses Economic Recovery House Meetings

I got this from David Plouffe of Obama for America:

"President Barack Obama talks directly to the American people about the immediate need for action on the economy. Join your friends and neighbors at an Economic Recovery House Meeting in your community: http://my.barackobama.com/recoveryplan

Actor Christian Bale Apologizes for F-Bomb Tirade

Christian Bale called in to the Kevin and Bean show on KROQ-FM (106.7) in Los Angeles to say he was sorry for the tantrum on the set of "Terminator Salvation" that was recorded and has been pinging across the Internet for days.

Michael Phelps Smokes Bong: American Hypocrisy

I had the pleasure of meeting Michael Phelps last fall at the Bank of The West Classic tennis event. I said then that he was "a cool guy" or words to that effect. The matter of his "bong" event is a study in American Hypocrisy.

Michael Phelps Smokes Bong: American Hypocrisy

I had the pleasure of meeting Michael Phelps last fall at the Bank of The West Classic tennis event. I said then that he was "a cool guy" or words to that effect. The matter of his "bong" event is a study in American Hypocrisy.

Senators reach deal to cut economic stimulus bill to $780B

Senators reach deal to cut stimulus bill to $780B: “With job losses soaring nationwide, Senate Democrats reached agreement with key Republicans Friday night on an economic stimulus measure at the heart of President Barack Obama's plan for combatting the worst recession in decades. "The American people want us to work together. They don't want to see us dividing along partisan lines on the most serious crisis confronting our country," said Sen. Susan Collins of Maine, one of two GOP senators who signaled support for the bill.

Officials put the cost of the measure at $780 billion in tax cuts and new spending combined. No details were immediately available, and there appeared to be some confusion even among senators about the price tag as floor debate continued late into the night.”

BART Shooting: Johannes Mehserle Released On $3M Bail

More at SF Gate: “(02-06) 16:48 PST DUBLIN -- Johannes Mehserle, the former BART police officer accused of murder in the Jan. 1 shooting death of an unarmed man on the Fruitvale Station platform in Oakland, was released this afternoon on $3 million bail, authorities said.

Mehserle, 27, posted bail at 3:45 p.m. and was released from Santa Rita Jail without incident, the Alameda County Sheriff's Department said.”

Madoff Client List, Fox Theater, Blog News: Zennie62

This is my experimental multi-show where I broadcast on USTReam, YouTube, and BlogTalk Radio all at the same time. The show is about the just released Madoff Client list and the six Oakland and 43 San Francisco persons who were listed as victims of Madoff.

I also talk about the newly opened Fox Theater which had its Gala event last night -- a success. Funny that the Oakland Tribune website doesn't have a post about it. They swapped their Fox post for something about an animation movie. Who cares?

There's more. I'm going to make the YouTube video another way because I do not like the quality of the quick-capture system. I may wind up using two computers for this. Here's the USTream video...

Video chat rooms at Ustream

And here's the BlogTalkRadio Link: Radio

Star Trek Movie Trailer Reveals Hit Star Trek Movie

The second Star Trek trailer reveals a movie that will be a sure-fire hit. J.J. Abrams, who directed the movie and co-produced it, and his staff aimed for a mix of realism and Star Trek and hit it right on the money.

I do hope we can see William Shatner in it, but I understand why he made this difficult -- he'll be sorry. But I hope he's in it with Leonard Nimoy.

President Obama on Economic Recovery

From BarackObamaDotcom on YouTube: President Obama recorded a series of interviews about his economic recovery plan. Help is on the way, and you can help spread the word. Join thousands of people across the country who are organizing Economic Recovery House Meetings: http://my.barackobama.com/recoveryplan

Leonard Nimoy's Ballad of Bilbo Baggins

What the hell was Leonard Nimoy doing singing this stupid song? Well, according to Wikipedia,..

"The Ballad of Bilbo Baggins" is a song composed by Charles Randolph Grean and performed by Leonard Nimoy, telling the story of Bilbo Baggins and his adventures in J. R. R. Tolkien's novel The Hobbit. The recording originally appeared on The Two Sides of Leonard Nimoy (Dot Records Cat. DLP 25835, 1968), the second of Nimoy's albums on Dot Records. It was also released as a single (Dot Records Cat. #45-17028), backed with a "modern thought-image" folk song called "Cotton Candy".

Well I guess that explains it, but I'd still like to talk to Mr. Nimoy about that one! LOL

US Supreme Court Justice has Pancreatic Cancer

From YouTuber SwimmingPolarBear: Supreme Court Justice Ruth Bader Ginsburg has undergone surgery for pancreatic cancer, apparently at an early stage. The court said the 75-year-old Ginsburg had the surgery Thursday at the Memorial Sloan-Kettering Cancer Center in New York. She will remain in the hospital for seven to 10 days, said her surgeon. Dr. Murray Brennan. This was according to a release issued by the court.