Republicans Protecting Tax Cheats

 Eighteen months ago the then Democrat controlled Congress passed the Inflation Reduction Act. Since then, using funds allocated by that legislation the Internal Revenue Service (IRS) declared open season on wealthy tax cheats and so far has recovered over $480 million in overdue taxes from delinquent millionaires. Last month the IRS opened 76 new examinations into the largest partnerships in the U.S. that include hedge funds, real estate investment partnerships and large law firms.

More than 160 million Americans voluntarily pay their federal income taxes every year and generally pay what they owe. The right leaning Wall Street Journal reported that “Americans didn't pay an estimated $68 billion in taxes due on their 2021 returns—the largest shortfall ever.” Senate Finance Committee Chair Ron Wyden (D-Oregon) organized an investigation which found that nearly 1,000 Americans who make more than $1 million a year failed to file tax returns over multiple recent years, potentially owing $34 billion in taxes.

According to a 2021 White House study, the wealthiest 400 billionaire families in the US paid an average federal individual tax rate of just 8.2 percent. If you’re reading this article you likely paid around 10% of your total income in federal taxes. The really wealthy pay a lower percentage of taxes than you and I do and yet still cheat on their taxes.

During last year’s debt ceiling negotiations between the Biden administration and the now Republican controlled House; Monica de la Cruz, Chip Roy, and their cronies held the paychecks of millions of Americans hostage. In order to avoid damage to individuals and the national economy that a government shut down would cause, President Biden accepted budget reductions that include taking back billions of dollars allocated to the IRS. Those cuts will affect the ability of the IRS to continue pursuing wealthy tax cheats and modernization that was intended to reduce wait times and improve the experience tax payers have when calling the IRS for answers to questions about their incomes taxes.

The fact that supposedly budget conscious Republicans chose to target the IRS for major funding reductions when all indications are that for every $1 spent the agency will bring in an extra $2 goes to show you it isn’t really about the budget. The Republican attack on the IRS is all about protecting the wealthy tax cheats that provide campaign cash, high paying jobs for family members, and free vacations in posh resorts.

None of the billions in overdue taxes include the taxes evaded through tax shelters like owning professional sports teams or race horses, or other income re-classification tricks the super-wealthy use to game the system.

When Trump was in the White House an American earning less than $50,000 a year was more likely to be audited than someone earning $1 million a year and the percentage of mega-corporations earning billions hit an all time low. No wonder the super-wealthy want Trump back in the White House. How anyone earning less than $1 million a year can vote Republican is beyond me.

Published in the Seguin Gazette - January 17, 2024

Only Democrats Fighting to Save the Planet

While it has rained a bit and even cooled off some in the last couple of weeks much of Texas and the country still suffers severe drought conditions that have impacted agriculture. According to experts at Texas Tech University the High Plains area around Lubbock and Amarillo, the most productive of the state’s nine cotton-growing regions, will lose $2.1 billion of this year’s cotton harvest. Farmers in the Rio Grande valley will also have a much less profitable crop of vegetables as they’ve been unable to plant this year due to the drought.

You’ve probably seen news reports of various surprises found in rivers and lakes where the low water levels. Five bodies have been found in Lake Mead including one in a barrel that appears to be a mob-related murder victim. In Europe the Danube river water level has fallen to one of its lowest levels in almost a century as a result of the drought, exposing the remains of more than 20 German warships sunk during World War II near Serbia’s river port town of Prahovo. The sunken ships are now causing problems for ships navigating the river. In Spain, a prehistoric stone circle dubbed the “Spanish Stonehenge” has re-emerged; it is usually covered by waters in a man-made reservoir created in the 1960's which have fallen due to the worst drought in decades.

These world-wide droughts and outrageous temperatures are becoming both more frequent and more intense. Only by reducing the production of greenhouse gases by a large fraction by 2030 will we stand a chance of preventing starvation, disease, war, and migration all over this planet. If you think there is a crisis at our southern border now, wait until the drought in Central America takes hold.

Not a single sitting Republican in the United States Senate or House will acknowledge the threat of human caused climate change let alone take any action to stem that threat. Democrats led by Joe Biden have acted. In addition to the various incentives and projects included in the recently passed Inflation Reduction Act the Biden administration has directed all federal agencies to review and take action to reduce carbon emissions, recycle waste, set rules to make green energy projects easier to move forward, and put the funds they administer to work helping farmers, businesses, and individual citizens do the same. Another recently passed bill, the Chips and Science Act, includes funding for clean energy projects and battery production in addition to semi-conductors, nanotechnology, quantum computing, and artificial intelligence.

Joe Biden and the Democrats have made big strides toward reducing production of the greenhouse gases that are raising global temperatures but there is much more to do and not much time to do it. The only way that we’ll continue to see progress on this issue is if Democrats continue to control the House and Senate in addition to the presidency. Since Gov. Greg Abbott and Lt. Gov. Dan Patrick have not only failed to take action in Texas they’ve actively worked against protecting our environment we can look forward to more of the same here if they aren’t beaten in the November election. Fossil fuel interests all over Texas are providing massive funding for Republicans and argue that they’re producing jobs while hiding the fact that green energy projects actually employ more people in higher wage, safer jobs than they do.

If you want to have a livable climate here in Texas for your children and grand-children there is no more important action you can take than voting for every Democrat on the November ballot.

 

Cornyn and Cruz Betray Veterans

Republicans would have you believe that they’re all about supporting the troops and our veterans. Last week our senators, John Cornyn and Ted Cruz, proved once again that support is just talk as they both voted against medical care for our veterans.

Back in March, when President Joe Biden made his State of the Union address one of the issues he brought up was U.S. troops stationed in Iraq and Afghanistan who were exposed to toxic smoke from burn pits. “These burn pits that incinerate waste — the wastes of war, medical and hazardous material, jet fuel, and so much more,” said the president.

Medical evidence says that as a result, many servicemen and women who breathed in fumes from these burn pits returned home and experienced serious symptoms. Prolonged exposure to burn pits may be responsible for cancer in some veterans. Biden has made no secret that he believes toxic exposure may have contributed to the brain cancer that killed his son Beau.

In his speech Biden called on Congress to approve a law “to make sure veterans devastated by toxic exposure in Iraq and Afghanistan finally get the benefits and the comprehensive healthcare they deserve.” The legislation congress introduced, known as the Honoring Our PACT Act (Promise to Address Comprehensive Toxics Act), would expand treatment eligibility, and it has wide support in Congress.

At least it had wide support until it was announced that Senator Joe Manchin had reached agreement with Majority Leader Chuck Schumer to support a bill on an entirely different topic that has no effect on veteran health care. Then in a fit of pique 25 Republicans who previously supported the Honoring Our PACT Act flip flopped and voted against it which stopped the bill dead in its tracks as it only had 55 of the 60 votes needed to break the filibuster.

The bill Republicans are angry about is The Inflation Reduction Act of 2022 which includes measures to reduce the budget deficit by among other things raising taxes on billionaires to fight inflation. The bill also calls for investing in domestic energy production and manufacturing, and reducing carbon emissions by roughly 40 percent by 2030. In addition the bill will finally allow Medicare to negotiate for prescription drug prices and extend the expanded Affordable Care Act program for three years, through 2025.

Among the provisions of The Inflation Reduction Act of 2022 related to health care is a cap on Medicare patients’ out of pocket costs at $2,000 per year, with the option to break that amount into monthly payments of around $170 each. Currently, there is no cap on spending for prescription drugs seniors buy from pharmacies. This bill ensures that a devastating diagnosis, like cancer, will never again mean paying tens of thousands out of pocket for just one drug.

On the deficit reduction and tax side the current statutory corporate tax rate is 21%, but more than 200 highly profitable, large corporations use various tax loopholes to avoid paying that rate and actually pay below 15%, some pay no income tax at all. The corporate alternative minimum tax proposal would impose a 15 percent minimum tax on adjusted financial statement income for corporations with profits in excess of $1 billion.

So the reason that Ted Cruz and John Cornyn betrayed sick veterans is they’re mad their billionaire campaign donors might pay slightly higher taxes and pharmaceutical companies could see some of their outrageous profits reduced.

Just like the lies that Republicans spout about voter fraud, they also lie supporting veterans. Remember to vote them out of office in the upcoming election.

Published in the Seguin Gazette - August 3, 2022