Uranium one and Russia

In January of 2013, a Russian company Rosatom takes over a Canadian company with uranium interest in the US. Several men in this company were large donors to the Clinton Foundation. These same men then sold off their interest to Russian and the company became Uranium One. The CEO of this new company donated $2.35 million to the Clinton Foundation. A Russian bank promoted Uranium One stock paid Bill Clinton $500,000 for a Moscow speech. The US and Uranium One both agreed not to sell uranium to Russia but those promises were broken. The concern heightened when the Clinton Foundation received $250 million from mostly foreign nations during Hilary Clinton’s tenure as Secretary of State. No direct ties between the Russians and the Foundation were uncovered so the investigation was stopped.

Payroll tax

The latest addition to the senate tax bill is a benefit for low income people. It raises the child tax credit to $2,000 but can go against payroll tax. A family of four, earning $53,000 pays no income tax but pays $4,000 in payroll tax (social security and Medicare). This four grand will be refunded to them in the form the child tax credit which means they will pay no income tax and no payroll tax.

Democracy

When a person decides to run for public office one of the questions they face is what happens if my core beliefs conflict with what my constituents believe. There is a congressman in California who was a former tech guy and has software which will allow the people in his district to vote on his web site on all issues that come before him. He says he will vote as his people direct him and this answers the above question for him. He is willing to sacrifice his principals for the majority rule or what he calls direct democracy. The US is not and never has been a democracy but a representative republic. There is grave danger in a democracy where the majority rules so the courts will have to be alert to any threat to minorities that may come from this “direct democracy”. This congressman will also face the dilemma of what happens when his district is opposed to what his party wants. This concept is appealing since many people feel their representatives have lost touch with the people.

Energy policy

The United States is exporting coal and along with it air pollution. WASHINGTON/LONDON (Reuters) - U.S. coal exports have jumped more than 60 percent this year due to soaring demand from Europe and Asia. While the carbon dioxide from burning coal is affecting the air worldwide, the heavy metal contaminates like mercury and lead along with the acid rain chemicals like nitrates and sulfates stay in the area where the coal is burned. This means the US is exporting air pollution. The US imports rare earth metals to manufacture high tech stuff like wind mills and solar panels from mines in China where they are contaminating the ground water with various chemicals including some that are radioactive. There was a book written in the 50’s about the arrogance of American diplomats called “ The Ugly American” and the remnants of this idea have returned with our energy policy.

Solar subsidies

We often hear that renewable energy is growing faster than other areas. From that you might assume that this is a money making business but recall in 2013 the state of Minnesota passed a law saying that power companies must get 1.5% of their power from solar by 2020. Yet the state’s new solar standard, signed into law Thursday by Gov. Mark Dayton, will force four investor-owned electric utilities to generate 30 times more solar power than they do today. Solar power remains more expensive than electricity generated from conventional sources despite generous government subsidies estimated at more than $39 billion annually. The subsidies include among other things a 30% tax credit which was extended to 2019 when congress agreed to lift the ban against oil exports. A tax credit is not a deduction but a direct subtraction from the taxes owed. It is not unusual for the government to provide help to new industries but when articles about solar are written they often forget to mention the subsidies while showing the reduced cost. This is similar to the Obamacare mandate where the law demands that you buy something and then the law helps you to pay for it,

November walk

A NOVEMBER MORNING WALK A November morning walk is a special event. The gray clouds hang low on the horizon. The North wind, now filled with the first chilling reminder of winter, pushes the Autumn leaves across the pavement, rolling and crackling on their way to winter graves. The trees, that only last week, were bright with red and gold, now stand partially disrobed and dull brown against the morning sky. The heated activity of the past summer has subsided, and the time for regrouping is at hand. I look inward, and wrap myself up in the warm blanket of my feelings, as I prepare to hibernate with thoughts of peace and contentment. It is my time for preventive maintenance, and proper care of the soul. When I was in the first half of life, I had not time for such foolish behavior. I did not realize the joy of resting quietly in the forest, for I was busy rubbing the sticks of ambition and materialism together, to start the fires of progress that would set the forest ablaze. As I look back upon the charred remains of all this activity, I am thankful that I didn’t burn myself out. I will cherish each day of this seemingly forgotten month, as I build up my enthusiasm for giving and forgiving in the coming year, and then as the month comes to an end, it is appropriate that it burst open with a great thanksgiving for the past year. Now is the time when I will check my moral foundation, and my spiritual working parts, so that I am properly prepared to face the challenges that lie ahead. With all things in good working order I will best be able to share my gifts with others, and experience the truth, joy and love that is my destiny. Today’s reminder: Lean on me, when you’re not strong And I’ll be your friend I’ll help you carry on For it won’t be long Till I’m gonna need Somebody to lean on Lyrics from the song,”Lean On Me” by Bill Withers

Teachers

Much ado about nothing. Critics of the new tax plan complain that teachers will no longer be able to deduct out of pocket expenses for classroom activities. Under current law teachers can deduct $250 of unreimbursed expenses and that saves them $30 in taxes. This practice is most prevalent in new teachers who are trying to build up supplies. It is ridiculous that the teacher must buy these materials as there is no reason why the school should not provide them. Who wants to spend $250 so you can deduct $30 from the tax you own.

News

I watched with interest the interview with Bill and Hilary Clinton on stage as they celebrated the 25th anniversary of Bills election to the White House. Mrs. Clinton intimated that Bill had it easier than she because there was no Fox News and I totally agree. Back in those days talk radio was just getting started and most of the other press leaned left. In those days the mantra of the press was to comfort the afflicted and to afflict the comfortable, which meant to them, to go after big business which meant go after the rich republicans. As time passed big business became entangled with the big business of broadcasting and over the past 25 years polls show that trust in the press has dropped from 52% to 32%. Today the press doesn’t just report the news but picks news stories that push an agenda and this will cause further declines in their ratings.

New tax law

Most mortgage lenders have income ratios to determine how much debt a person can incur. Basically they want the mortgage payment not to exceed 30% of gross income. A $350,000 30 year loan has a monthly payment of $1,650. To qualify the gross income must be at least $66,000. The interest on this loan would be $19,000 and if the taxes were $4,000 the total would be $23,000 which is less than the $24,000 standard deduction in the Trump plan so this person would not itemize and thus not deduct taxes or interest. The new plan proposal states that a person can deduct mortgage interest up to a $500,000 mortgage and the can deduct real estate taxes up to $10,000. This sounds like upper income people who will lose deductions not middle income people. I don’t know any working people who have mortgages over $500,000 or pay more than $10,000 in property tax. The argument that this is a tax break for the rich doesn’t hold water so those opposed have now changed the argument to it is tax break for corporations which it is. Under the Trump plan a family of four with an income of $66,000 will pay $1,800 in federal income tax. Under current law this family would pay $2,700. This savings is because the child tax credit was increased from $1,000 to $1,600. As far as the superrich they don’t normally pay income tax but they pay capital gain tax. This is a big savings since the top rate on income tax is 39.6% and on capital gains it is 20%. In addition state income taxes are higher than state capital gains taxes which usually run about 3%.

Clear air and water

As coal and oil are being replaced by natural gas, the people in the US are enjoying the benefits of cleaner air. Meanwhile coal exports to Asia and Africa have increased dramatically and imports of rare earth metals have helped to grow the solar and wind industries. Mining these metals creates an environmental nightmare for China adding ground and water pollution to their already poisoned air. Wonder what the chances of getting a government grant to write about the advanced nations once again taking advantage of third world countries.

Franken

Al Franken has agreed to allow the senate investigation committee to look into accusations against him for sexual misconduct and this shows us why this problem in on going. Over the past 10 years there have been over 600 investigations into senators accused of some untoward activity and there have been zero convictions. This is part of the good old boys network and until this is corrected not much will happen.

America

Over the years people have wanted to change the national anthem because of the violence in the lyrics but recently a third verse which few ever heard was challenged as being pro-slavery. Their blood has wash'd out their foul footstep's pollution. No refuge could save the hireling and slave Perhaps other patriotic songs should be looked at, for example, America the Beautiful where in the first verse we have: America! America! God shed His grace on thee And crown thy good with brotherhood From sea to shining sea! Some feel that there is a lack of brotherhood in the country. Stars and Stripes Forever sounds a lot like America First. Then there is my all-time favorite The Battle Hymn of the Republic which depicts the Lord as pro-war and speaks of Christ. This may be offensive to non-Christians. In the beauty of the lilies Christ was born across the sea, With a glory in His bosom that transfigures you and me; As He died to make men holy, let us die to make men free! While God is marching on. Is it time for these songs to go the way of statues of past presidents who were slave owners? Let’s hope not!

Reshoring

The lowering of US corporate tax rates may or may not help middle income workers. If companies use their new found funds to buy back stock or to buy existing companies then it will not help working people. If instead the money is used to expand with new facilities it will help. Reshoring (companies returning production to the US) is on the rise. Countries like China have seen their wages increase. The work force in the US is better trained and better educated. The cost of energy has come down dramatically mostly due to fracking. With the concept of just in time inventory controls having the production close to home brings big savings and the same holds for making quick changes in product leaders.

Outsider

As I watch the Trump phenomenon unfold, I was reminded of something I wrote to my blog in 2011 and I reprint it here. The two party system is maintained by two forces. First each has a strong grass roots organization and second they provide a means for collecting money. Some have suggested that their stronghold on US politics may be threatened by the Internet. It is possible and some say likely that a very popular person with a large Blog following could collect money and spread ideas and become a viable candidate. As an example think of a person like Steve Jobs who has great name recognition and popularity. If a person like that had political ambitions chose to run an Internet campaign could they bypass the parties?

Fusion GPS

Fusion GPS is a Washington based company that does opposition research. They will check out any group or organization to find illegal or unethical activities that can then be used to discredit the group. While this is often directed at political groups it is not limited to politics. In September 2015, Fusion GPS was hired by The Washington Free Beacon, a conservative political website, to do opposition research on Trump and other Republican presidential candidates. When Trump became the nominee the program stopped and in April of 2016 the Democratic National Committee reopened the research against Trump. They hired Christopher Steele a British PI to look into Russian connections with Trump and he produced the Trump-Russian dossier. Steele also alleges that Trump has deep financial ties to key Russian figures that the Kremlin could use to blackmail him, and it contains a series of lewd allegations about the president. Listening in on conversations by Trump associates required getting permission from the state department and the FBI both of which occurred during the Obama administration. The main question is whether this dossier was used as the reason to select the special prosecutor. Congressional committees are investigating Fusion but so far the special prosecutor Meuller has not shown much interest and this has led to some speculation as to his involvement. He was head of the FBI when much of this was going on.

Leave early

I have some advice for those who work in the city. Leave a few minutes early. When you do that and someone is driving slow in front of you, that’s OK you have time. When you hit some red lights, that’s OK you have time. When someone cuts you off, that’s OK you have time. Now contrast that to the other person who is sitting forward in the seat, both hands clenched on the stirring wheel, left foot hovering above the break peddle, going faster and slower, changing lanes, honking the horn, blinking lights, mouth shut tight with teeth grinding and when he gets to work it takes only one thing to go wrong and his day is ruined. Ah the magic of a few minutes!

Bergdahl

In school this past week we read a story about a Civil War soldier who deserted his post and was summarily shot by a firing squad. We have certainly become a kinder, gentler nations since then, as witnessed by the recent case of Sgt. Bergdahl. Recall he was the soldier who left his post and was captured by the enemy. In the process of searching for him a number of soldiers were killed and injured. Then President Obama traded 5 Muslim terrorist for Bergdahl saying we don’t leave our soldiers behind. Obama then invited the parents of this soldier to the Rose Garden for a ceremony to welcome him home. Since then this soldier pleaded guilty to a charge of desertion and received a dishonorable discharge and reduced to the rank of sergeant but no prison time. The latest news is that the government is deciding whether or not Bergdahl should receive $300,000 in back pay For some odd reason this reminds me of the CEO who causes his company to lose billions and then gets a golden parachute when he resigns or some white collar criminal who gets a fine followed by a better job with more money. Compare that will some black kid in North Minneapolis who gets caught robbing a convenience store.

1st amendment

Religious freedom was one of the reasons that people came to America. The Puritans were a group of people who grew discontent in the Church of England and worked towards religious, moral and societal reforms.. The Puritans were one branch of dissenters who decided that the Church of England was beyond reform. Escaping persecution from church leadership and the King, they came to America. Because of this the first amendment was about religion. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; For these founders it appears they wanted to keep the Government out of religion but over the years the courts have changed that to keeping religion out of government, thus no prayer in public schools. The precise definition of "establishment" is unclear. Historically, it meant prohibiting state-sponsored churches, such as the Church of England.

Mole

Often times when the press interviews the president, or any president for that matter, they often ask about trivial matters which they believe are important in the eyes of people who don’t necessarily pay close attention to political news. Here is my parody on the issue As the president leaves, a reporter shouts out Mr. President, is it true that you have a mole on your buttocks and he responds saying, no but did not allow for any follow up questions. Next day the press reports that, president denies having mole on behind but doesn’t elaborate and leaves some questioning if there is more to this story.

State tax

People in upper income brackets, say $250,000 to $500,000 have been hurt by the alternative minimum tax, (ATM). For example they were able to deduct the amount they paid in state income tax from their federal income tax however the ATM then kicks in and negates that deduction. There is much hand ringing going on over the loss of the state tax deduction but I don’t believe these upper income people were allowed to keep that deduction anyway. The Trump plan eliminates both the state tax deduction and the ATM.

World series

Here is a small but illustrative example of what our news programs have come to. Last night was the seventh game of the World Series and at the start of the game five New York City police officers sang the national anthem and all players on both teams stood with hands on hearts. Fox news showed this but MSNBC did not.

Profiling

In watching the news about the New York City shooting it was mentioned that the FBI has gone to all the truck rental agencies in the area warning them about the possibility of a terrorist using their truck. My question is, what did the tell them. Did they say that all renters should be checked with the same scrutiny or did they make allowances for appearance? Should blue-eyed blond females be checked in the same way as brown-eyed males? I think they are indirectly telling these rental agencies to pro-file without saying that. I believe that happens on a regular basis but no one talks about it. I believe that people use their common sense and in cases like this understand that a 70 year old grandma is less likely to be a terrorist than a 25 year old male with a middle-eastern look and they act accordingly. Even the greeters at Walmart tell me that they more closely watch teen girls than other groups.