Payroll tax for healtcare

Bernie Sanders latest proposal is to use an increase in payroll tax to pay for healthcare. This is a good way to get income since everyone who works will pay. Payroll taxes bring in $977 billion and the tax rate is 7.65% from the employer and the same from the employee for a total of 15.3%. That means each percent brings in $63 billion dollars. Since healthcare cost $3.5 trillion it would require a 55% increase in the payroll tax to pay for this so he must mean it would be just one source of income. Another good source of income but Bernie has thought of it yet is the money that companies currently pay for healthcare. This is about $1.5 trillion and it is only a matter of time before he figures that out. Just like it took Senator Warren a few years to find out about wealth tax, it is taking Bernie a little time to think about the money that companies pay for healthcare.

Border numbers

After initial quibbling over numbers, most now agree that there is a problem with asylum seekers at the border. A recent poll in Guatemala indicates that 35% of the people want to come to the United States. This is about 4 million. It is not unreasonable to assume that people in other Central American countries feel the same. Millions of people are leaving Venezuela and may well see the United States as a place of safety and small numbers are entering from other Caribbean countries like Cuba. These people enter under the asylum rules which state they can stay here while they go through the asylum procedure to determine if they are eligible. Most of these would not qualify to stay but by the time the immigration courts rule they have mingled in with the general population and cannot be located. As the numbers continue to rise the pressure for congress to act will rise.

Wolff

Many people have capitalized on the public dislike for Trump but none more than Michael Wolff. His first book, Fire and Fury, which experts say contained many lies by omission or by ignorance was a best seller earning Mr. Wolff $7.5 million dollars. The book had very little to do with policy but was mostly about personality. He emphasized the many un-presidential ways and mannerisms that Trump exhibits including his off the cuff comments about people, many of which are uncomplimentary. Mr. Wolff has a new book coming out and it could be another best seller. With the economy in high gear will the upcoming election be more about personality than policy?

Likeable

Back when Bill Clinton was running, James Carville summed up the election by saying, its the economy stupid. Since that time the world has changed and the me too generation with their selfies has taken control and the new catch phrase is, its likability stupid. Important things like the economy have taken a back seat to personalities. The many candidates are getting prepared to make their debate debuts and the public is anxiously awaiting to see how they shine on TV. The one that comes across as most likable will have a step up on the others. Many onlookers will judge the policies of candidates base on how likable they are some will use that as the most important criteria. Even many Trump supporters are enthralled with his non PC approach to just saying what is on his mind instead of using focus groups to select the right words and having a professional speech writer put those words into stump speech. All those on the stage would be wise to remember that being who you are is the best way to be likable.

Purdue settlelment

Oklahoma received a $270 million dollar settlement from Purdue Pharma over the opioid problem and it is using much of the money to build new campus facilities that will supposedly study addiction but the labs will be used for a variety of things. This follows a patter of other states which have received settlements from Purdue. For example West Virginia used part of its $10 million to remodel the police department and build a new gym. This is mindful of the tobacco settlement in the late 90's. Billions of dollars that were supposed to be spent in treatment of illness caused by smoking were used for all sorts of things totally unrelated to smoking.

Biden

Joe Biden is keeping a low profile as his lead in the polls expands so questions arise regarding his platform. Joe will say the economic growth to help low income people started under Obama and Trump with his tax law has changed it to help the rich. He will say that Obamacare was a good program but Trump ruined it had he will repair the damage and bring it back. He will say that climate change is a serious problem and must be dealt with by providing clean energy jobs and gradually move away from fossil fuels. He will increase the number of border guards and electronic surveillance to control the border. He will promote a living wage not just a minimum wage. He will put pressure on universities to slow the increases in tuition. He will roll back the tax breaks given to the rich and to corporations and offer tax breaks to middle income people. He will propose a reduction in the payroll tax and that helps the very low income people those who pay no income tax. He will propose an infrastructure program and push for legislation to lower drug cost. He will be pro Israel and not reinstate the nuke deal with Iran. He will bring back dignity in dealing with foreign nations meaning going back to the Obama way.

Gift tax

On the news I saw a report about a man, Robert Smith who gave a commencement speech and then promised to pay off all the student debt of the graduates and my first thought was Oh oh. Having volunteered to do taxes for people at the senior center I knew that regulations would get in the way. Doing taxes is one of the best ways to see how regulations can be overdone. Will the students pay tax on the gift as it is canceled debt?. Will parents who saved money in 523 plans have to redo their taxes for those years. Will this reduce his life time gift tax deduction. It likely would if he paid off all the loans at once but if he paid them as they come due he could get around the gift tax using the $15,000 annual exclusion. There are probably other pitfalls using grants. The point is there are too many regulations not only regarding taxation but most everything else.

Legal immigration based on merit

When Trump first proposed replacing the lottery system for immigration with the merit system, Nancy Pelosi immediately said he was opposed to brown skin people. It was not mentioned again since most merit immigrants have brown skin. Most Western Nations are suffering from low birthrates and they are not able to replace their populations. One way to solve this problem is immigration and the US is expert at this. Many jobs today and more so in the future require certain skills and merit based immigration will provide those people. It would be wise for the US to change the immigration laws to allow illegals crossing the southern border to be returned to their countries of origin and open the door to more legal immigrants based on merit.

Roundup

A grounds keeper in California was awarded $289 million dollars later reduced to $85 million because he got cancer by using the weed killer Roundup. In insurance claims the loss is based on a persons earnings and their age. A calculation is made about the future loss of income and payment is made accordingly. There is another part to the law suit called punitive damages and that is to punish the company so as to deter such actions in the future. More than $80 million of this award was punitive. The companies insurance covered most of this loss but that money will be recouped by raising rates and all other companies will be charged. They in tern will have less money for other expenses, things like business expansion and salary increases. After the lawyers take their cut the victim will receive about $50 million.

Climate and people

Climate change is something that people talk about but they don't do much about it. The one thing that many have done is sort their garbage and latest results show this doesn't help. The subject is always hot before an election and dies out rapidly after the election indicating that it is more of political issue for people than a climate issue. Those who get grant money to write scary stories are always interested as are those who manufacture solar panels but most people as shown by their life styles are not interested. While the increase in CO2 levels are real most of the articles are about the detrimental effects but plant growth around the world is increasing including plants in the ocean which are the beginning food source for many fish. For those who are interested the best information is available after elections are over.

Retire or not

Many working people look forward or even long for retirement. They might consider why billionaires are working. Does Jeff Bezos, who is worth $100 billion dollars, go to work for the money. Not likely. He works for the challenge, the opportunity to help others grow and innovate. If all your work has to offer is a pay check, you dream of retirement but work can be a lot more. Even those who are retired can share their knowledge, talents and experience in ways that help others. To live another 20 or 30 years after retirement is not unusual and those years can be very productive especially when helping others. Most people who have reached retirement age have come to understand that happiness is all about help others. What are your talents and how can you share them?

Rare metals

In a little noticed news item, China has threatened to bargain with rare earth metals. Because the mining of these metals contaminates the environment the US no longer produces any and China has cornered the world market. These elements are needed for wind mills and solar panels and most other electronics. This will cause a conflict with those concerned about the environment in that mining is bad and fossil fuels are bad. If China decides to raise prices the cost of wind and solar will increase and push the economy toward oil and natural gas. In other such conflicts such as wind mills killing birds the news mostly looks the other way.

Electoral college

Some candidates are proposing to eliminate the electoral college and that requires a constitutional amendment. To change the constitution requires that 2/3rds of the house and senate approve and then 3/4ths of the states approve. Since this change would benefit the democrat party and since the government is strongly divided this is not likely to happen. It is being discussed as a political hot button for the democratic base. It follows other issues like the new green deal, open borders, retribution for slavery, Medicare for all and wealth tax. As the election approaches these controversial positions will go by the way side especially during the general election.

Equal pay

Kamala Harris, a candidate for president, said she would force companies to pay women the same as men and that is the way it should be but she will enforce the law by having transparency in salaries. Setting aside differences based on legitimate things like education and experience, both should be paid the same but this can cause problems because people are not the same and have not had the same career path. Some managers are more generous than others. If Joe and Jim have both worked with the same company for 20 years doing the same type of work, say research chemist, they may have different salaries because of reasonable things like performance or unreasonable things like personality (likability). Managers are not infallible and sometimes base salary on personality traits. Some of these traits like getting along with fellow workers can be very important and difficult to measure. We have seen this in unions where people working on a production line get the same pay regardless of their work ethic. The government does this based on job level and years of service. An E-5 in the military with 9 years gets the same pay as every other person with the same experience. It is possible that one person can get to be an E-5 faster based on performance or perhaps personality. It is difficult to treat everyone the same when everyone is different.

Church and gays

Students walked out on Vice President's Pence speech because they object to his religious belief's regarding homosexuality. A good scientist will preface his answer to a question by saying to the best of my knowledge and then proceed. Religion is often different in that they have more absolutes. Many Christian churches feel that homosexual acts are sins but they soften their objections by saying that they hate the sin but love the sinner. Many of these same churches say that if you don't believe in their tenets you will go to hell. This is common in religions around the world. There are no protest marches about sending people to hell but there are about other tenets.

Australian election

The election this week in Australia may well be a precursor of the upcoming US election. One party emphasized climate change while the other pushed for jobs. The country gets 70% of its energy from coal and the energy industry was under attack with opponents pushing to get rid of fossil fuels in 12 years. This is not only physically impossible but it would throw the whole country into chaos. Once again the polls showed the opposition party to be winning but the final vote was different. Thanking his opponent, Mr Morrison paid tribute to "the quiet Australians" who had voted for the Coalition. The winner Mr. Morrison summed things up by saying: It has been those Australians who have worked hard every day, they have their dreams, they have their aspirations, to get a job, to get an apprenticeship, to start a business, to meet someone amazing," he said. "To start a family, to buy a home, to work hard and provide the best you can for your kids. To save "for your retirement. These are the quiet Australians who have won a great victory tonight!"

Ocean plastic

There is a group selling bracelets for $20 and the money is used to clean up the ocean. They say over 2 million pounds have been removed through their efforts. They have found a way to make some money but it is doubtful that they can even make a dent in the problem. Of the 260 million tons of plastic the world produces each year, about 10 percent ends up in the Ocean, according to a Greenpeace report (Plastic Debris in the World's Oceans, 2006). Seventy percent of the mass eventually sinks, damaging life on the seabed This report shows that 50 billion pounds of plastic goes into the ocean each year and that was in 2006 so the amount is likely higher today. 95% of this plastic comes from Asia and that is where to start fixing the problem.

Nixon Clinton

One of the biggest political events of the last century would have been much different if Nixon were as smart as Hillary Clinton. When the government subpoenaed Hillary's emails she sorted through them removing all information not relevant to the subject and sent in the rest. If Nixon had gone through the tapes and sent in only those he deemed relevant he would not found it necessary to resign. If Bill Clinton could have gotten his hands on the blue dress he would not have been impeached. If, if, if!

Smart phones

I sub in 11 high schools but only one has a rule against cell phones and the difference is stark. Most times the students finish up their assignment early and are allowed what is called free time. It may be a few minutes or as much as 20 minutes. In the school with no phones the students spend time visiting but in the other schools most of them go on their phones. In study hall they are mostly on phones and for many even lunch time is spent on the phone. After school waiting for rides they are on the phone and even walking toward their cars they are on the phone. The ones that get to class early for first period go right on the phone. The only time it gets noisy is when two or three get together to share something amusing on their phones. They spend lots of time taking pictures of themselves and others and then laughing about the pics.

Trump Obama

The contrast between Trump and Obama is far and wide but never so clear as in their speaking styles. Obama was often accused of talking like he was in the faculty lounge. He was articulate, thoughtful and careful not to say anything that might seem impolite or subject to misinterpretation. Trump on the other hand speaks like the guy next door, the kind of guy that takes a shower when he comes home from work. His rallies are loud and boisterous with never a dull moment since Trump speaks extemporaneously and jumps around from topic to topic keeping everyone on edge. Obama was a natural public speaker who could wax poetically and make it sound off the cuff even though he was reading a prepared text from the teleprompter. Obama was a polished politician and Trump is a rough and tumble back alley fighter.

Taking assets

Mayor de blasio announced his run for president by saying, "Brothers and sisters, there’s plenty of money in the world. There’s plenty of money in this city. It’s just in the wrong hands". This is mindful of when Obama told Joe the plumber that he would spread the wealth around and Senator Warren's remarks about the wealth tax. It appears these people are serious about going after assets. Most people would agree that $10 million in assets should be enough and if the government confiscated all amounts over that they could then afford all of the promises being made by the various candidates.

Nixon

One of the biggest political events of the last century would have been much different if Nixon were as smart as Hillary Clinton. When the government subpoenaed Hillary's emails she sorted through them removing all information not relevant to the subject and sent in the rest. If Nixon had gone through the tapes and sent in only those he deemed relevant he would not found it necessary to resign. If Bill Clinton could have gotten his hands on the blue dress he would not have been impeached. If, if, if!

Social media

An old adage says that movies are like real life with all the dull parts taken out. This is the appeal that social media has for young people. Those on snap chat are only showing the exciting good times they are having and others think wow, why is my life so dull. For some who don't realize what is happening it can be a real downer leading to depression and maybe worse. For those who are addicted to social media it can lead to an unhappy life that effects their grades and their relationships.

Tariffs and Old Sam

I'm with Chuck Schumer in getting tough with China. Keep increasing the tariffs until they change their ways or just get out of the China market. When old Sam started Walmart he was a made in the America kind of guy but his son started looking for the lowest prices and went to China. I spend $1,000 per month at Walmart and will be a happy to spend 25% more of $1,250 if that means bringing manufacturing jobs back to America. Old Sam would be proud.

Hauwei

China is once again up to its old tricks with Hauwei trying to take over the communications of the world with its new 5th generation company. The Chinese government funds this company so they have a competitive advantage over US companies. Our friends in Europe have signed up with China on this and will pay the price. The company that controls this will be able to spy on anyone without their knowledge. All new innovation in places like Europe will be immediately available to China. The US has blocked Hauwei and will allow US companies to maintain control here in the US.

White guys

The upcoming election has too many candidates for my taste. I'm backing Donald, Bernie and Joe. We old white guys got to stick together. The rest of these young whipper snappers think that Bikini Atoll is a resort. See kid, you had to look it up.

GDP

The GDP makes news a couple of days every three months when the figures come out but many people are not aware that imports/exports are part of the GDP. Last year imports exceeded imports by $600 billion dollars. In 2018 there were $2.5 trillion in exports and $3.1 trillion in imports of both goods and services.The United States. This means that $600 billion was subtracted from the GDP figure. Germany for example has more exports that imports and the result is that they have a budget surplus. Their debt to GDP ration is 54% whereas ours is 110%

NYC area

I watched the Town Hall meeting with Senator Amy Klobuchar on Fox and the announcer said here we are in Milwaukee the Buck Eye state. I am once again reminded of how people from the Northeast are not that familiar with the Midwest. Once on Cheers, Norm said his wife was visiting his mother out west and when asked where out west he answered it is one of those rectangular states. People who live in the New York City area are sheltered in many ways from the rest of the country. It is obvious on shows like Morning Joe where a half dozen people, all from the New York City/Washington corridor, sit around and talk politics. They live in a bubble where they all think the same and thus often assume that they represent the thinking of the rest of the country.

Tariffs

Most economist are free traders but most want fair trade. If the US continues to increase tariffs many companies will have to look for local suppliers. This means consumers will pay higher prices. The upside is that people will be buying things like kitchen appliance made in America. Much of the extra cost will be higher wages paid to American workers. In time places like Home Depot will be selling more American made refrigerators which means more American manufacturing jobs. The best situation is no import taxes by any country but until that time comes the US will continue to tax as it is being taxed.

When the congress held hearings on climate change they did not ask outside experts to ask questions but tried on their own to understand the science and they looked inept. When they held hearings on social media they did not understand the intricacies of algorithms. But now when investigating the legal aspects of the attorney general report which they as lawyers are qualified to do they are asking for outside lawyers to help. If they ask questions they only get 5 minutes and it is difficult to properly cross examine in this short time. Outside lawyers can have more time.

Census counting

There was a local politician on TV today going around reminding people of the upcoming census. He told them that each person counted means more money from the state. He did not say where the state got the money but in fact they got if from the people he was talking to and thus they must be counted to get back their own money. The same concept can be applied to the federal government where each person gets $2,500.

Bless America

A few weeks ago a group went after Kate Smith, some say because she was famous for singing the National Anthem. This week a group sent a letter to a small school district in PA telling them to stop singing God Bless America and they stopped. They were fearful of a costly law suit. Now this same group can just send letters to other small districts and over time cause many districts to stop. This same tactic was tried with the Pledge but failed. Once these things gain success they will spread. Will, "In God We Trust" on money or the crosses at Arlington be challenged? These things are possible because they have become political issues as they are now seen differently by different people.

Israeli Wars

The news shows a group of Muslim children in Philadelphia singing songs about killing people in the name of Allah. The word in the song that caught my attention was, "humiliation". The Jewish people established their kingdom in Jerusalem under King David in about 1,000 BC. This promise land was under their control for about 400 years and then various other powers took over and the Jews were exiled and then they return and were exiled a second time and did not have a permanent home until 1948 when the current state of Israel was established. They were immediately attacked by the Arab Nations of Egypt, Jordan and Syria. Against all odds the Jews won the day and defeated an overwhelming force. There followed five more Arab/Israeli Wars in 1956, 1967, 1973, 1982 and 2006. Each time the Arabs were defeated and this led to the feeling of humiliation. The population of Israel is 7 million including 1.6 million Arabs and they are fighting against 150 million Arabs.

Beef and pork

I'm giving up on beef and pork. Consumers are demanding low fat meat and producers understand that fat increases their cost since fat takes more feed. The result is meat that is tough and lacks flavor. The one remaining exception is prime rib. I used to make a pork roast that was a true feast but those days are gone. From now on it is poultry and seafood for me.

Spying

On the front page of the NYT's today is an article saying that the FBI spied on the Trump campaign in 2016. In September 2016, under the guise of discussing foreign policy, a woman who went by the name of Azra Turk asked Trump campaign adviser George Papadopoulos in a London pub whether the campaign was working with Russia, the New York Times reports. The backdrop: Turk, masquerading as a Cambridge University research assistant, was in fact a government investigator sent by the FBI as part of a counterintelligence investigation into the Trump campaign's ties to Russia. Turk reportedly worked alongside FBI informant Stefan Halper to gather intelligence. However, the London operation "yielded no fruitful information," according to the Times. This is a story that Fox News has been reporting for two years.

CEO's

Senator Sanders pointed out the large discrepancy in wages between the CEO of Walt Disney and the average employee. It is ridiculous that one person should have a salary of millions. Here are some examples. The top paid 100 entertainers pulled in $6.2 billion dollars or $62 million each. The five top athletes last year. Floyd Mayweather. Total earnings: $285 million. Purse: $275 million. ... Lionel Messi. Total earnings: $111 million. ... Cristiano Ronaldo. Total earnings: $108 million. ... Conor McGregor. Total earnings: $99 million. ... Neymar. Total earnings: $90 million. The top ten CEO's made an average of $70 million Some years ago Magic Johnson and Bush 41 appeared on TV to promote the treatment of AIDS. Some people who saw that wondered why Magic was earning $2 million a year and Bush was paid $200,000. The answer is in a free market society if a person can do something than hardly anyone else can do then that person would be highly paid. The conclusion was that while Magic could be president there was no way that Bush could play point guard for the Lakers. The problem here is that there are many people who could be CEO's and the system is rigged and the market for CEO's is corrupted.