I’ll never understand this. At the coffee shop I frequent, they sell bumper stickers. The name of the place is “The Daily”, and the bumper sticker says “Drink Coffee Daily; Drink Daily Coffee”. Price: $2.00.

Question: Why would I advertise for you, even for free? And my god – why would I pay you to advertise for you? Do you think I’m that stupid?

I have taken off the dealership decals off our cars when we bought them. They come off easily when they are fresh – you just use a Tuffy pad. I asked the dealership not to put a decal on the last car we bought – they did anyway. I made them take it off. Then they gave us bright yellow temporary cardboard license plates to drive around advertising the name of the dealership. They came off that very day. I don’t wear T-shirts advertising any business – I once wore running shorts that said “Montana”, and I own a cap that says “Cooke City” – that’s as far as I go.

I see cars with product names plastered in the windows – the names of rock bands, for instance. I see clothing with manufacturers’ emblems pasted all over them – North Face and Nike and Kelty. I see shoes with a big “N” on the side. Are we so commercialized, are we so inured to this that we voluntarily become shills for profit-making entities?

I offer The Daily Coffee Shop a deal: You pay me $2.00 per day to put your bumper sticker on my car, I might consider it, but only if you supply the muscle to take it off when I am tired of it. That’s the only way I’ll advertise for you.

On second thought, never mind. Do your own advertising.

Well, it’s all over the news today – former Bush press secretary Scott McLellan says in his new book that he passed on lies from on high to a waiting and eager press. I take this as a sign of how completely out of touch I am with reality here. I assume that everything I hear is a lie, and look upon my job as a news consumer to ferret out those nuggets of truth that occasionally fall upon us, usually by accident.

And lest this be taken as “Bush Bashing” (def: criticizing George W. Bush in any fashion), it is not meant to focus on him. Yes, he lies, constantly, though usually unknowingly. He rarely says anything that is true, and then only by accident (def: gaffe). But his administration, and the one before it and before it … has a White House wing full of people whose job it is to sift through data and reinterpret it in a favorable light to the people in power (def: lie).

The job of the press secretary, then, is to pass along the most favorable information sifted up above – that is, to lie, but to do it professionally. To be good at the job, the person in that position has to create a climate of trust, and that is the key to being effective. The people on the receiving end of the lies have to believe in the person telling them.

And it is at that point that all of the lying pivots and turns on us – the press pool surrounding the administration has to be unusually trusting of people in power (def: toadies). Some aren’t, like Helen Thomas (def: gadfly), and if they are well known, they are tolerated. Most aren’t, however, and anyone in the White House press pool without a name who makes trouble (def: prig) can soon look at reassignment.

So here’s how it would work in a perfect world: 1) President says we have to invade a country that has not harmed us in anyway because they might attack us using weapons they might have. 2) Press corps is all over this, man – “Whoa!” they say – let’s have some evidence, some justification in law. One of them writes a long and thoughtful piece on how there seems to be a great deal of incentive here to lie, that there might be other reasons they want to attack this country (def: oil), and the piece is so insightful that it’s reprinted everywhere and quoted on network news. It sets off a firestorm – a talking circus of doubt (def: democracy). Skepticism mounts, and 3) the administration, defensive, backs down, and says they’ll try diplomacy. The issue vanishes.

Ha. I’m not a cynic (def: a disillusioned idealist). I just know how people in power operate. This administration, the one before it and before it … they lie because the truth doesn’t serve them well. They cultivate a culture for sycophancy because good journalism is harmful to them. So it is that the most “successful” journalists also turn out to be the biggest ass kissers (def: Tom Brokaw.) Those that get uppity, even a little bit, find themselves ostracized (def: Dan Rather, and I do mean just a little bit over a long toadying career.)

That’s just how it works, friends. Our job is not to be skeptical so much as to simply use our heads. If their lips are moving, they are probably lying. How to find truth? Sift, 24/7. Think, and sift. Never trust, always verify (def: citizenship).

Speaking of the Social Security Amendments of 1983 (see below), Reagan left another sour taste in the mouth – because of that act, many seniors now have to pay tax on their Social Security benefits, and (indirectly) pay tax on supposedly “tax exempt” income.

Here’s now it works – skip this paragraph if you don’t like numbers: A single Social Security recipient must take half of his benefits and add them to all his other income. If the result is more than $25,000, he must pay income tax on half the benefits. (The floors are higher for married taxpayers, but that’s the drift.) Worse yet, if half his benefits plus other income is more than $34,000, he has to pay tax on 85% of his benefits. For this purpose, “other income” includes interest on tax exempt bonds, in effect, taxing tax exempt bonds.

It gets worse. This provision was inserted in the 1983 act, and was not indexed for inflation. It has remained the same all these many years, each year hitting more retirees with no relief. Had the provision been indexed, the $25,000 and $34,000 floors would now be $47,500 and $64,600, respectively.

Simple tax justice demands indexing. I take it one step further – eliminate the tax on benefits. The original reasoning was that retirees were never taxed on the employer’s share of the tax paid in. I dispute that, and regard the employer’s share of the tax as merely a hidden tax. But let’s give them that point … at the very least, index the tax. Give our seniors a break.

Max Baucus chairs the powerful Senate Finance Committee. He’s the one to contact regarding this particular injustice. I’ll contact him if you will.

When Ronald Reagan took office in 1981, he immediately carried on with Jimmy Carter’s legacy. It was Carter who had deregulated trucking and the airline industry and also eliminated the 70% tax bracket. Reagan initiated huge tax cuts on the wealthiest Americans, and the predictable result was massive deficits. Something had to be done – the Laffer Curve was not working. A measure of fiscal sanity had to be restored. A massive tax hike was in order.

A Democratic congress passed and Reagan signed into law the largest tax increase in history – the Social Security Amendments of 1983. But unlike the initial tax cuts, which went to the wealthiest Americans, the tax hike was aimed squarely at the middle and working classes. By 1988, when Reagan left office, an additional $40 billion in new revenue had been generated for the government. Today, excess revenue generated by the Reagan tax hike is around $2 trillion.

Was this planned? Probably. Ronnie wasn’t a tax cutter – he was a tax shifter – rich to middle and working class.

The payroll tax – the financial engine behind Social Security and Medicare, became a major source of revenue for the Federal Government, collecting far more than was paid out in benefits. In 2004 the federal government raised $802 billion from payroll (Social Security and Medicare) taxes. These taxes were levied exclusively on people making wages of $87,900 and below.

On the other hand, the Federal government raised $801 billion from regular income taxes that year – less than from payroll tax. Most Americans now pay more payroll tax than income tax. Surely that was the intent.

So when you hear stories about how the wealthy are carrying water for the rest of us, how they are paying most federal taxes, be careful. Here’s a typical example – a graph taken from Sugi Sorenson, Defender of Liberty (I could have chosen a hundred sites, but Sugi’s had the best name):

Sugi is careful to say “income” tax, but the presumption in the mind of the reader is that he is talking about all taxes when he is only talking about one tax, and ignoring the largest tax of all, the payroll tax.

You see this story told all over the right wing … it gets repeated again and again. It’s not false, it’s just not true. It’s only part of the story. The other part is the payroll tax. I am yet to find a tax distribution chart that includes the payroll tax. Another day, another story.

I think this is called “linking” – David Crisp has a post up regarding willingness of liberals and conservatives to listen to the other side. Rather than having me repeat it, go there – it’s really interesting.

Effective January 1, 2008, taxes are set to go up for a very select group of people – those who are self-employed or earning wages and making between $97,500 and more than $102,000. The tax increase for those on the higher end will be $558 per year in perpetuity.

It’s a beautiful way to do tax increases – it’s hard wired into the code, so that no one in congress has to vote on it. And it happens every year. Since George W. Bush took office in 2001, taxes have gone up $2,678 per year for anyone making more than the annual benefit base for Social Security, which was $80,400 when he took office. He’s not taken any notice, and frankly, since it is never publicized, the people who pay this tax largely let it pass unnoticed. (Try Googling this increase – use whatever terminology pleases you. You won’t find it anywhere in the news.)

A few of things to note in passing:

First, George W. Bush, and the Democrats and Republicans in congress are not against tax increases. They only care about tax increases for those who can put pressure on them on election day – the people who finance their campaigns, the wealthy. That’s why this tax increase passes each year without notice – it hits people who are not politically connected.

Second, when payroll tax is added to their regular income tax, these self-employed and wage earners are being taxed at 39.2% of their last dollar earned. Add Montana’s tax to that – 6.75%, and they are paying taxes at a 46% marginal rate. That’s far more than Bush’s wealthy constituents who have benefited so much from his past tax increases pay. It’s a rate that in current temper of the times would be considered confiscatory – if it affected politically connected people.

Finally, there was a great outcry in years past when inflation would push people into higher tax brackets. Most of the code is now adjusted annually for inflation, to keep taxes from going up. The payroll tax is adjusted annually for inflation too. The tax goes up.

Our tax system is diabolically clever, designed to hit the middle class hardest. It’s essentially flat for most of us, but regressive for those who live on dividends and capital gains. The guy who flips your burgers pays a marginal rate of 24-29%, yet gets scoffed at as being a freeloader by those who pay less than him. Our tax system is the ultimate joke on working people, designed by people who apparently hold them in contempt.

###chirp###

According to Bruce Fein at Slate, Nancy Pelosi threatened to remove John Conyers from chairmanship of the House judiciary committee if he opens an impeachment inquiry.

Nothing rattles her more than Democrats who go after Republicans. She is indeed a strong leader. She’s just working for the wrong party.