Category: Budget

Data Point of the Day

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Did you know that about 90% of Californians have lower taxes than Texas?

It’s true.  Texas, and this applies to a lot of so-called “Low Tax Jurisdictions”.

They are not low tax states for the bulk of their population, they are just low tax states for rich people and large corporations.

This certainly matches the experiences of two people I know/knew, an author and an artist.

The former found his taxes and fees lower in Maryland than in Pennsylvania, and the latter found the same case for New Hampshire and Massachusetts:

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These statistics are relevant, though, to any discussion of why so many people have been leaving California. Taxes often dominate public discussions of such trends, thanks in part to the unrelenting efforts of Republican policy entrepreneurs Arthur Laffer and Stephen Moore, whose 14th annual, mostly tax-based economic competitiveness report for the conservative American Legislative Exchange Council is out this month. But it’s awfully hard to argue that taxes have been the main thing driving the California exodus, given that (1) it has been concentrated among the less affluent, (2) their No. 1 destination has been Texas, according to 2010-2018 Internal Revenue Service data that I tallied up early last year and (3) lower-income and middle-income people face higher effective tax rates in Texas than in California.

………

Middle-class taxes are lower in Nevada, the No. 2 beneficiary of net migration from the Golden State, but for a household at the 2019 California median income of $75,235 the 1.8 percentage point difference in effective tax rate adds up to $1,354 whereas the difference in average annual rent for an apartment or house between metropolitan Los Angeles and metro Las Vegas is $6,336, according to Apartment List’s April estimates.

For those in the top 1% of the income distribution, who in California in 2018 had adjusted gross incomes that started at $680,687 and averaged $2.2 million, the story is much different.

I’m thinking that people who protest against inequality should try to address things like states tax codes, particularly those with no income tax, like Washington, Texas, and Florida, and those with flat income tax rates, like Massachusetts, Illinois, and Pennsylvania.

Soaking the rich is popular right now, and the number of people who actually relocate for tax purposes is very small.

Of Course They Did

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A bipartisan group in the Senate has come up with a new infrastructure bill. 

Why am I not surprised that whenever you add Republicans to a group, their first move is to put the kibosh on any tax increases for the rich?

Basically, the Republicans in the group with the acquiescence of the corporate “Democrats” in the group, are determined to make their bill as meaningless as possible:

A bipartisan Senate group is taking tax increases off the table as lawmakers try to craft an infrastructure proposal after GOP talks with the White House collapsed Tuesday.

Raising taxes on high-income earners and corporations has been a key part of President Biden‘s infrastructure plan, making it nearly impossible to garner enough GOP support for legislation that can clear the Senate.

Sen. Jon Tester (D-Mont.), who is in the bipartisan group, said tax increases are not under consideration as senators attempt to reach consensus on how to pay for their plan.

………

Sen. Mitt Romney (R-Utah), another member of the bipartisan group, also told reporters on Wednesday that Republicans won’t agree to tax increases as part of infrastructure talks.

The group is expected to be looking at a proposal of around $900 billion, but they’ve been careful not to publicly release a number, saying the level of spending isn’t yet locked in. Biden’s initial infrastructure proposal exceeded $2.2 trillion.

This is why you don’t waste your time trying to cut a deal with Republicans. 

They are never going to agree to raising taxes on the rich, one of the most popular policies in the United States right now, and they don’t want the country to succeed, because it would hurt their electoral chances.

Negotiating in good faith is in opposition to core Republican values.

 

If It Makes You Nervous, Find a New Job

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Arguably the most popular policies of  Joe Biden with the general public is raising taxes on the rich.

Even a majority of Republicans support raising taxes on the rich.

Still, it appears that this fantastically popular policy prescription is giving moderate Democrats the vapors, because they have nothing to offer but the ability raise money from rich people.

Seriously, soaking the rich is good policy and good policy, but these guys are so afraid of offending the money bags types they are useless:

President Biden’s desire to offset more than $4 trillion in spending proposals with higher taxes is struggling to gain momentum in Congress.

Pockets of skepticism have emerged within Biden’s party over White House plans to raise the corporate tax rate, revamp the international tax system and double tax rates on wealthy investors, among other measures critical to the administration’s plans. The party faces regional divides over taxes as well, with farm-state Democrats skittish about taxes on heirs and coastal Democrats demanding the repeal of limits on state and local tax deductions, which would amount to an expensive tax cut that would require higher taxes elsewhere.

Yes, these tremulous Democrats are determined to save tax breaks for rich folks.

………

The open-ended nature of the discussions has led to a bevy of ideas from Democrats and little clear progress toward a resolution. Democrats said some donors are anxious about the political ramifications of raising taxes before the midterms, especially given the party’s tough odds to hold onto the House. Rep. Sean Maloney (D-N.Y.), chair of the Democratic Congressional Campaign Committee responsible for party fundraising, has privately warned the tax plans could hurt vulnerable House Democrats up for reelection in 2022, said two people familiar with the matter, who spoke on the condition of anonymity to discuss internal matters.

It won’t hurt anyway.

………

“The administration knows these taxes are very popular,” said Celinda Lake, a Democratic pollster who advised Biden’s campaign. “But Democrats in Congress are nervous from decades about being attacked as tax and spenders.”

When Bill Clinton created budget surpluses, and destroyed welfare, Democrats were attacked as tax and spenders.  It is going to happen anyway.

Living in fear of your own shadow is not is not living/

Just Give them Money

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Essential Musical Accompaniment

It’s “Teacher Appreciation Week”, and the I agree with Anne Helen Petersen, if you have chosen to do any of the standard teacher appreciations, doughnuts, Starbucks, socks (!), or other various gifts, you are doing it wrong.

Just give them money, and while your are at it, fund the public schools:

All across the United States parents and caregivers are receiving and forgetting instructions on what they’re supposed to be preparing for their preschool and elementary school kids’ teachers. That’s because next week is officially “Teacher Appreciation Week,” an official holiday orchestrated by a combination of Classroom Parents and PTAs that, over the course of the last four decades, has exploded into an intricate, overly-complicated, largely hollow performance of gratitude.

Am I meant to eat twenty breakfast items???

— Emily (@themerriest) April 29, 2021


This year, Teacher Appreciation is particularly overdetermined, because most teachers have had an ass of a year — attempting, based on their location and particulars of their situation, to balance potential COVID exposure, extreme hygiene theater, in-person learning, distance learning, hybrid learning, vitriolic attacks from parents on their unions, and generalized demoralization. Depending on the state and strength of union, many elementary and high school teachers may be struggling to make ends meet; almost everywhere, ECE teachers receive truly garbage pay. That was true before the pandemic, and as with so many jobs deemed “essential,” the garbage pay feels even more insulting. 

………

Temporarily setting aside the fact that this is the sort of labor that almost always falls upon mothers, and serves as yet another way in which working moms, less financially stable moms, single moms, and/or less mobile moms can “fail” at public performances of proper motherhood…and also setting aside the many parents are already paying up to a third of their income on daycare and preschool…and also setting aside the fact that those failures often filter down and serve as sources of shame for children…and also setting aside the fact that making participation in these weeks “optional” is at once bullshit and gaslighting, these gifts don’t actually make the teacher feel supported. 

………

………These gifts can simultaneously “mean well” and serve to protect parents from larger, tougher, more challenging understandings of what support can and should look like.

So what does that support look like? The easiest route, at least in this moment, is money, filtered for actual use in the form of an actually useful giftcard. Depending on your background, you may or may not have internalized the idea that giving money as a means of thanks is tacky or untoward. That is bullshit posturing and you should forget it. A giftcard to Target will actual support a teacher in a way that a desk full of breakfast items cannot.

But that solution is also fairly shallow. There are several ways that you, as a parent or a caregiver or just an adult in the world, can support the teachers in your life in far more meaningful ways. In public, you can show up and back them and their unions at rallies. You can defend them when people start talking shit about them and their unions in Facebook Parent Groups. You can write them with specific and non-performative and non-passive-aggressive ways that they have impacted your child’s life, and be very clear that you don’t expect a response. 

In private, you can vote for politicians and support policies — especially education levies — that move to robustly fund public education. You can vocally support national plans that conceive of childcare and preschool as essential infrastructure: a market failure that demands public investment in order to 1) be affordable & and accessible to all families and 2) pay a living wage.

Preach it!

We under-invest in education, and we allow charlatans to extract tax dollars through charter schools.

Show them the money.

Their Tears Will Salt My Soup

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When I see a headline like this:

Richest Americans Face Biden’s Tax Hike With Anger, Denial, Grief

I smile.

It seems that many of these folks, who were born on 3rd base and thought that they had hit a triple, are so personally offended to be made pay their fair share.

They are losing their sh%$ over the lower tax rate for capital gains going away.

They keep saying things like, “Over-taxing success is un-American.”

Oh, you poor delicate snowflake.  Your subsidy is going away, and your feelings are hurt.

F%$# you with Cheney’s dick.

Unleash the Free Market

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New: This is a stunning chart.

The amount it costs to provide health care to people with employer insurance rises steadily with age.

Then, people turn 65 and go on Medicare, and the cost of health care drops precipitously.https://t.co/2HhgSvKrZr@matthew_t_rae @jcubanski pic.twitter.com/5kFiBllkj9

— Larry Levitt (@larry_levitt) April 27, 2021

This graph explains how the American healthacre system is failing.

If the market worked, healthcare costs would continue to increase, but they don’t.

Referring to the linked article, here are the money quotes:

  • Average health care spending per person per month for enrollees ages 60-64 in large employer plans ($1,061) is 38% higher than average monthly spending for traditional Medicare beneficiaries ages 65-69 ($770) (Figure 1). This comparison understates the savings that could be realized by shifting 60-64 year olds to Medicare, since one would expect 65-69 year olds to have roughly 20-25% higher spending, because health needs rise with age.
  • Average monthly health care spending for large employer plan enrollees ages 60-64 is similar to that of traditional Medicare beneficiaries in their early 70s, who tend to use more health care services than people in the younger age cohort.

From the Department of About F%$#ing Time

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It looks like members of Congress are getting sick and tired of skyrocketing operational costs and fiscal obfuscation by the Department of Defense, and will be pushing back against any increase in acquisition.

Unfortunately, the excessive costs of the program has been baked into the program, with the DoD signing off a model that is clearly intended to maximize rent seeking by Lockheed-Martin: (Paid subscription required)

In response to new delays to the F-35 fighter program, senior House Democrats are threatening to limit aircraft production and end the practice of adding funding for aircraft the Pentagon never requested.

The laundry list of program problems includes cost overruns, a large engine backlog at the depots, funding cuts to an already temperamental predictive maintenance system and delays to essential upgrades.

“If this program continues to fail to significantly control and reduce actual projected sustainment costs, we may need to invest in other affordable programs and backfill an operational shortfall of potentially over 800 tactical fighters,” Rep. Donald Norcross (D-N.J.), House Armed Services Committee (HASC) tactical air and land forces subcommittee chairman, said during a hearing on the F-35 program.

………

Now that Democrats control the Senate, Garamendi and Norcross may turn the tide and prevent lawmakers from increasing the F-35 quantity in future budget requests. During the fiscal 2021 budget cycle, the HASC failed to convince the other defense committees not to add extra F-35s.

………

F-35 Program Executive Officer Lt. Gen. Eric Fick, agrees with Abba’s assessment. Delays in delivering required support equipment and technical data, along with the increased work scope for F135 power module repairs, are driving the depot shortfalls, he said.

The Government Accountability Office (GAO) acknowledges that the Pentagon is taking steps to increase depot repair capacity for the F135 power module, but the GAO says the number of capable aircraft will remain an issue in the near term.

………

Along with those delays, the cost of the engine is growing. The increase, likely 3% for the 15th production lot, is the result of Turkey being removed from the program after Turkish President Recep Tayyip Erdogan opted to purchase the Russian-manufactured S-400 anti-aircraft weapon system.

………

Meanwhile, the F-35’s logistics system is experiencing yet another round of upheaval. The Pentagon was in the process of transitioning its Autonomic Logistics Information System (ALIS) to a new cloud-based network, the Operational Data Integrated Network (ODIN), by 2022. But the Pentagon has directed a “strategic pause” for the move to ODIN because of a 42% funding cut in fiscal 2021.

………

Other delays plaguing the program include the slowdown of Technology Refresh 3 (TR-3) and Block 4 development. Lockheed Martin waived $60 million in fees because of the delays to TR-3, the hardware providing the F-35 additive processing power, memory and open-systems architecture. The company says the delays were caused by supplier challenges related to the spread of the novel coronavirus.

Lockheed knows that they have the DoD, and particularly the USAF by the short hairs, and the “Mistake-Jet” continues to eat the operational capabilities of the USAF. 

The tail, now controlled by the contractors, is devouring the teeth.

I Am Amused

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Washington State, which is known, and notorious for, its regressive tax policies, has passed one of the higher levies on capital gains taxes in the nation.  (If passed, the 7% tax would take the state from 50th to 13th in the nation)

Given the enormous amount of wealth subject to the tax, and the fact that Bezos set up Amazon in Washington State specifically to avoid taxes, I am find this situation intensely amusing.

As a state that has some extreme wealth inequality, it’s also good policy:

The home of the two richest men in America is on the brink of implementing a new tax on capital gains that would raise billions of dollars for early childhood education and child care programs — while setting off a years-long legal fight that could end a nearly century-long resistance to an income tax.

Washington state legislators are finalizing language on a bill that would tax capital gains over $250,000 at a 7 percent rate, in what may prove to be one of the most substantial tax increases approved by any state legislature in 2021.

Supporters of the measure say it would fall on just a few thousand of the wealthiest families in a state full of major technology companies and budding startups, from Amazon and Microsoft — companies founded by Washington residents Jeff Bezos and Bill Gates, numbers one and two on the list of the world’s richest people — to IMDb and Redfin.

In a state where the tax code remains one of the most regressive in America, the new tax would help even out the growing disparities between the wealthy and a shrinking middle class that has been pushed to the brink.

………

The capital gains tax has passed both the state House and Senate, though the two chambers have appointed members of a conference committee to hammer out several disagreements between the two versions. The legislators on the committee have until Sunday, the end of this year’s legislative session, to reach a deal.

Tara Lee, a spokeswoman for Gov. Jay Inslee (D), said Inslee would sign the bill if it makes it to his desk in time.

Legislative analysts estimate the new tax would pull in $550 million a year beginning in 2023, when it would take effect. Some estimates suggest it would impact about 8,000 tax filers, while others say it could hit up to 60,000 people — in either case, just a fraction of the 2.9 million households in the state.

………

But the proposed bill, Washington Republicans say, comes with a twist: Opponents see a longer-term legal play aimed at overturning an 85-year-old policy that has made Washington one of the few remaining states without an income tax.

Washington’s Supreme Court ruled in a landmark 1936 case that the state constitution required all property to be taxed at the same rate. The court ruled that income counted as property, striking down a graduated income tax rate that voters had approved a few years earlier.

Since then, Washington has been one of just a handful of states without an income tax. Voters have defeated six subsequent attempts to implement an income tax at the ballot box.

If the new tax on capital gains passes, Republicans see it as a path to open a new legal challenge to the validity of a graduated tax, one that might find a more receptive audience before a more liberal state Supreme Court.

………

Washington is one of just nine states that does not levy a tax on capital gains. A 7 percent rate would put Washington on par with states like South Carolina, Connecticut and Maine, which tax capital gains at about the same rate.

I rather imagine that Jeff Bezos is going to throw a sh%$-fit over this, because not paying his fair share is something that he thinks is his due.

Also, the idea that it is a camel’s nose under the door regarding an income tax is something that recommends the tax even more.

Soak the rich.  The alternative is to eat the rich, and that is not kosher.

Surprised in a Good Way

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Joe Biden has announced that he intends to raise the capital gains tax rate on the wildly communist idea* that people who work for a living should be taxed at a higher rate than people who sit on their ass waiting for their properties to appreciate.

I did not expect Biden to do something like this, but it is the right thing to do.  Capital has been under-taxed, and labor has been over-taxed for decades:

President Biden will seek new taxes on the rich, including a near doubling of the capital gains tax for people earning more than $1 million a year, to pay for the next phase in his $4 trillion plan to reshape the American economy.

Mr. Biden will also propose raising the top marginal income tax rate to 39.6 percent from 37 percent, the level it was cut to by President Donald J. Trump’s tax overhaul in 2017. The proposals are in line with Mr. Biden’s campaign promises to raise taxes on the wealthy but not on households earning less than $400,000.

$400,000 is still rich.  It’s about 7 times the median family income.

The president will lay out the full proposal, which he calls the American Family Plan, next week. It will include about $1.5 trillion in new spending and tax credits meant to fight poverty, reduce child care costs for families, make prekindergarten and community college free to all, and establish a national paid leave program, according to people familiar with the proposal. It is not yet final and could change before next week.

………

To offset that cost, Mr. Biden will propose several tax increases he included in his campaign platform. That starts with raising the top marginal income tax and the tax on capital gains — the proceeds of selling an asset like a stock or a boat — for people earning more than $1 million. The plan would effectively increase the rate they pay on that income to 39.6 percent from 20 percent.

Capital gains income would also still be subject to a 3.8 percent surtax that helps fund the Affordable Care Act. It was unclear if the tax increase would also apply to income earned from dividends.

Hopefully, it will.  The rich, which means capital gains and dividends, have increasingly sucking more and more out of our society while contributing less and less.

*Note for the snark impaired, the invocation of communism is sarcasm.

This is a Very Good Thing

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Did you know that investors are pissed off because Biden’s infrastructure plans do not include any public-private partnerships? (PPPs)

They want to see public private partnerships, where the private participants are guaranteed a profit, and then borrow money at inflated rates from Private Equity, and ding the taxpayers for decades for user fees for doing basically nothing at all.

I feel pretty good about this:

Finance executives are lamenting being frozen out of plans to bolster America’s dilapidated infrastructure, as the Biden administration pushes a tax-and-spend approach to building projects.

President Joe Biden’s “American jobs plan”, unveiled last month, calls for $2tn of investment in highways, electrical grids and other basic infrastructure.

At the same time, the White House put forward corporate tax reforms that it said would generate enough money to pay for the investment spree within 15 years.

That has disappointed some investors and asset managers who once expected public-private partnerships would be a lucrative financing opportunity.

“I would love to put money into infrastructure projects,” said Christopher Ailman, chief investment officer of Calstrs, the retirement system that pays the pensions of California teachers.

The $290bn fund has held sporadic talks with the US Treasury about investing in infrastructure projects since the Obama administration, Ailman said. “A lot of long-term investors . . . look at infrastructure as being a source of stable long-term returns,” he said.

They are upset that they won’t have the opportunity to loot the taxpayers to buy another yacht. F%$# them with Cheney’s Dick.

………

While Biden’s infrastructure proposal revives some of the unfulfilled ambitions of his predecessor, it does not envisage a role for the private investors who had once expected to be in the driving seat.

“This is a very traditional ‘the government is spending on infrastructure’ plan,” said a lobbyist who regularly represents private equity firms in Congress.

Just kill yourself, you bloody parasite, it will be the best thing you ever do for society. 

Some of the executives say that PPPs can, “Impose commercial discipline and generate savings elsewhere,” only they never have, and they have to pay much higher interest rates on what they borrow than the government does, which means that they can’t.

Instead they are efforts to get money today at the cost of tomorrow, as Richie Daley’s incredibly corrupt parking meter deal in Chicago shows.

There never are any savings, just guaranteed profits with some of the vigorish skimmed off the top and returned to the politicians as bribes and campaign donations.

https://twitter.com/DanielaGabor/status/1381665203524415488

see full thwitter thread 

Cuomo Must Really be on the Ropes

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Because that’s the only way that he would allow taxes to be raised on rich people, and “Rat Faced Andy” just cut a deal in Albany.

Cuomo’s political brand has always been his fundraising prowess, and that in turn was driven by his constant kowtowing to the very rich, and protecting them from things like having to pay taxes.

This would not have happened a year ago:

New York State leaders announced they had reached an agreement on Tuesday on a $212 billion state budget that includes tax increases on the wealthy as well as substantial relief for renters, undocumented immigrants and business owners hit hardest by the coronavirus.

Many of the budget’s key initiatives are aimed at jump-starting the recovery of a state that was the onetime epicenter of the pandemic.

It includes $2.3 billion in federal funds to help tenants late on rent; $1 billion in grants and tax credits for small businesses that suffered from the economic downturn; and a $2.1 billion fund to provide one-time payments for undocumented workers who did not qualify for federal stimulus checks or unemployment benefits, according to budget highlights released by the governor’s office.

All were proposals championed by Democratic leaders of the State Legislature, who leveraged Gov. Andrew M. Cuomo’s weakened political position to forcefully lobby for their priorities, including a long-sought personal income tax rate increase on individuals making over $1 million — overcoming the governor’s longtime aversion to raising taxes on the rich.

Two new brackets would also be introduced for incomes over $5 million and $25 million. The changes mean wealthy residents of New York City would effectively be subject to the highest combined local and state personal income tax rates in the nation, surpassing California.

Good.  Our taxes are too damn low.

Some people will argue that the rich will move to lower tax states, to which I say, f%$# the rich with Cheney’s dick.

As was noted earlier, “The Problem with Living in Florida is that You Have to Live in Florida.” 

If there is a mass exodus of the rich from Manhattan, then the rents will go down, and the 99% will be able to afford to live there again.

It’s like They Are Playing to Lose

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The headline in New York Magazine says it all, “Democrats Strip $1,400 Checks From 12 Million for No Reason.” 

That’s 12 million voters who know that the Democrats lied to them, and they were likely the margin of victory in at least one of the Georgia runoffs that gave Democrats Joe Manchin control of the US Senate.

This is horrible policy, about $8 billion in a $1.9 trillion stimulus package, 0.42%, and it is worse politics.


The official hat of the Biden Administration

The stimulus checks are the single most popular part of the bill, but the so-called moderates in the Democratic Party establishment (There is no Democratic Party establishment) needed a scalp so that they could wave their dicks, and Biden caves.

To quote not-Tallyrand, (it is frequently misattributed to him) “It is worse than a crime, it is a mistake.

Democrats often wonder why they don’t get more votes, because their policies are popular.

They don’t get more votes because people do not believe that Democrats will actually follow through.

If You Have Neither on Your Side, Pound the Table

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With prospects for both a minimum wage hike and Neera Tanden’s becoming head of the Office and Management and Budget (OMB) dimming, the Biden administration has decided to ignore the minimum wage and go all in on the (rather unqualified and genuinely horrible person) Neera Tanden and ignore the plight of roughly 48 million people working for less than the proposed $15 per hour.

In their desperation, an old lawyer’s adage applies, “If you have the facts on your side, pound the facts. If you have the law on your side, pound the law. If you have neither on your side, pound the table.“

In this case, pounding the table means, ignoring the reasons for the opposition, as venal and corrupt as they and playing the “Race Card,” which in this case means getting Americans of South Asian extraction riled up about this simply because Tanden is of South Asian extraction:

President Joe Biden’s aides are urging Asian American groups to mount a last-minute campaign to try to rescue his budget chief nominee, Neera Tanden, as her prospects for Senate confirmation dwindle.

Those groups are calling and sending letters to Senate offices and advocating for Tanden on social media to try to combat what they are calling “structural racism” and “institutional racism.”

Their efforts have been actively encouraged by the White House and presidential transition staff, which remains in place to help with Senate confirmations, along with the Democratic National Committee, according to two people familiar with the conversations.

The opposition to her comes from two real, though stupid and corrupt, sources, Republican butt-hurt over her mean Tweets (as if there is any other kind of Tweet), and Joe Manchin’s decades long project to use his power as an elected official to benefit his daughter. (Manchin is lying about his being disturbed by the Tweets)

This is not an issue of Race.  If it were, Deb Haaland would have never gotten the nod, as indigenous Americans have always been further down in the racial hierarchy than pretty much everyone but Blacks and Hispanics.

Invoking racism is stupid and counter productive because it will not work and because it “wears out the batteries” on the tactic.

Keep your powder dry, because Tanden is all wet.

What Should Be Done Now, and Won’t Be Done

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Now that the Senate Parliamentarian has ruled that a minimum wage increase cannot be passed through the reconciliation process, the course of action is clear, or at least it should be.

The President of the Senate, Vice President Kamala Harris, can overrule the unelected Senate official, and it would require a vote of 60 Senators to overrule her decision.

Unfortunately, given that Biden has already said that he thought that a minimum wage increase was dead, and Biden’s chief of staff has said that Harris would not rule against her, it appears that they are playing to lose.

Not a surprise.  Learned helplessness, is an innate trait of the Democratic Party establishment (There is no Democratic Party establishment), and Joe Biden has enormous affection for an institution frequently called, “A Petri Dish for Psychopaths.”

If they were not cowards or delusional, here is what would happen:

On Thursday, a key Senate official advised Democratic lawmakers that the chamber’s rules do not allow them to include a minimum wage increase in President Joe Biden’s first COVID-19 relief legislation. The ruling from the parliamentarian means that Vice President Kamala Harris could decide the fate of one of the Democratic Party’s most significant campaign promises — but it remains unclear what she will end up doing.

As the presiding officer of the Senate, Harris — who has long touted her support for a $15 minimum wage — can now use the power her predecessors have used to ignore the advisory opinion and fulfill Biden’s campaign promise to boost the wage. A confidential memo obtained by The Daily Poster now circulating on Capitol Hill spells out exactly how that could be accomplished.

However, White House chief of staff Ron Klain this week declared that Harris will refuse to use that power — a decision that would effectively put the Biden-Harris administration in the position of potentially killing the prospect of minimum wage legislation for the foreseeable future. Immediately after the parliamentarian’s ruling, the White House issued a statement reiterating Klain’s comment, declaring that “Biden respects the parliamentarian’s decision.”

Some congressional Democrats have already been arguing that the Biden administration’s refusal to overrule the parliamentarian would be immoral and a political disaster for their party.

………

As such, Democrats are working to pass the COVID bill using the convoluted budget reconciliation process. The process will allow for a simple majority vote on the final legislation, but it also allows Senate parliamentarian Elizabeth MacDonough to recommend tossing certain provisions if she decides they violate the so-called Byrd Rule, which is designed to prohibit extraneous matters outside of federal spending issues to be added to budget legislation.

BTW, while not common, overruling the parliamentarian is by means rare, particularly given that the Senate can pass one reconciliation bill in a year:

Vice presidents have ignored the parliamentarian in the past. According to Slate, “Vice President Hubert Humphrey routinely ignored his parliamentarian’s advice.”

Roll Call reported last month: “Precedents for ignoring parliamentary advice include 1967, 1969, and 1975 efforts to change the Senate’s threshold to end debate from a two-thirds vote to three-fifths.”

 ………

In a new memo circulating to lawmakers and obtained by The Daily Poster, Harris’s power as the presiding Chair of the Senate is spelled out, citing a precedent set during the Clinton administration.

“It would take 60 votes to overturn the ruling of the Chair on a Byrd Rule point of order, regardless of what the Parliamentarian advises,” states the memo. “Based on a search of the Congressional Record, it appears that only twice has the chair’s ruling on a Byrd Rule point of order been appealed. Both instances occurred on August 6, 1993, during consideration of the Omnibus Budget Reconciliation Act of 1993. Neither appeal garnered the 60 affirmative votes necessary to overturn the Chair’s ruling.”

Like I said, the Dems are playing to lose, and come 2022, lose they will.

It’s Like Having Your Mother-in-Law Drive off a Cliff in Your Brand New Car

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So, the worst “Democrat” in the Senate, Joe Manchin, has come out against Biden’s choice of Neera Tanden, the worst think tank drone ever to come out of the Clinton machine, to head of the White House Office of Management and Budget (OMB).

What’s more, he has done so for the worst possible reason, because Tanden is mean to Republicans sometimes. (Her venom toward Republicans is her ONLY redeeming feature)

The awfulness of the distinguished gentleman from West Virginia is self evident, but I’ll list a bill of particulars on Tanden: (It’s an updatepast from an old post if it sounds familiar)

I am hoping for a way that they can both lose, because neither of them deserve a win ever: 

Sen. Joe Manchin (D-W.Va.) said Friday that he would oppose Neera Tanden‘s nomination to head the White House budget office, potentially sinking her Senate confirmation.

Manchin cited Tanden’s harsh tweets about Republicans as the reason for his opposition.

“I believe her overtly partisan statements will have a toxic and detrimental impact on the important working relationship between members of Congress and the next director of the Office of Management and Budget,” Manchin said in a statement. “For this reason, I cannot support her nomination.”>br>
………

“Neera Tanden is an accomplished policy expert who would be an excellent Budget Director and we look forward to the committee votes next week and to continuing to work toward her confirmation through engagement with both parties,” Biden press secretary Jen Psaki said in a statement distributed to reporters in response to Manchin’s remarks.

No, she’s a vacuous party hack, not that there’s anything wrong with that. 

The problem is that cannot keep good staff, has never had an original idea in her life, and has an affection for bad policy and bad politics that rivles that of her old boss, Hillary Clinton.

In a CNN interview Friday afternoon, Sanders was non-committal about supporting Tanden’s nomination, saying that he would speak to her next week about “what she wants to do.” Sanders reiterated that he was less concerned with her previous rhetoric than her future actions.

And Bernie Sanders is the only person in this entire sordid affair who is behaving like a mensch, probably because he is the only one in this entire sordid affair who values anything beyond his own career.

Whiskey Tango Foxtrot?!?!? Trillions of Dollars?

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An auditor has found that the US Army has engaged in trillions of dollars in dodgy spending:

The United States Army’s finances are so jumbled it had to make trillions of dollars of improper accounting adjustments to create an illusion that its books are balanced.

The Defense Department’s Inspector General, in a June report, said the Army made $2.8 trillion in wrongful adjustments to accounting entries in one quarter alone in 2015, and $6.5 trillion for the year. Yet the Army lacked receipts and invoices to support those numbers or simply made them up.

As a result, the Army’s financial statements for 2015 were “materially misstated,” the report concluded. The “forced” adjustments rendered the statements useless because “DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions.”

………

The new report focused on the Army’s General Fund, the bigger of its two main accounts, with assets of $282.6 billion in 2015. The Army lost or didn’t keep required data, and much of the data it had was inaccurate, the IG said.

“Where is the money going? Nobody knows,” said Franklin Spinney, a retired military analyst for the Pentagon and critic of Defense Department planning.

The significance of the accounting problem goes beyond mere concern for balancing books, Spinney said. Both presidential candidates have called for increasing defense spending amid current global tension.

I’m beginning to think that we will need to experience something akin to the sinking of the Vasa in 1628 (which led to the creation of the progenitor of the Swedish defense procurement agency, the FMV) before we end up with a defense procurement system that actually works.

Ka Ching!

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Guess what, despite the fact that the US spends more on defense than the next 7 nations, we still need to flush even more money down the toilet to combat coming Russian and Chinese technological superiority:

The fight against the Islamic State may get the headlines. But it’s the military threats from Russia and China that most worry top Pentagon officials — and are driving a new arms race to deter these great-power rivals.

This question of how to deal with Russian and Chinese military advances has gotten almost no attention in the 2016 presidential campaign. But it deserves a careful look. The programs begun in the waning days of the Obama administration could potentially change the face of warfare, in the United States’ favor, but they would require political support and new spending by the next president.

A drive to build exotic versions of conventional weapons may sound crazy in a world that already has too much military conflict. But advocates argue that strengthening U.S. conventional forces might be the only way to avoid escalation to nuclear weapons if war with Moscow or Beijing began.

Deputy Defense Secretary Robert Work argued for the new deterrence strategy in a presentation this month to the bipartisan Aspen Strategy Group, amplifying comments he made to me in an interview in February. The approach, awkwardly named the “third offset strategy,” would leverage the United States’ technological superiority by creating weapons that could complicate attack planning by an adversary.

The premise is that as Russia and China modernize their militaries, the United States must exploit its lead in high-tech warfare. In the world envisioned by Pentagon planners, the United States could field an array of drones in the sky, unmanned submarines beneath the seas and advanced systems on the ground that could overwhelm an adversary’s battle-management networks. Like the two previous “offsets,” battlefield nuclear weapons in the 1950s and precise conventional weapons in the 1970s, this one would seek to restore lost U.S. military dominance.

Those lucrative retirement gigs for Generals don’t pay for themselves.

The US military is looking at reducing the number of troops, to pay for the bling, which is exactly the wrong thing to do.

The markedly inferior Grumman F4F Wildcat achieved a 6.9:1 kill ratio over the Mitsubishi A6M Zero, an aircraft that could literally fly rings around it.

They did so because of superior tactics, superior situational awareness (better radar and radios), and a training regime that produced better trained pilots more quickly.

Technological superiority does not necessarily win wars.  Ask a Tiger tank commander in WWII about that.

This is Some Well Done, and Well Deserved, Trolling

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Following repeated cuts to the Missouri Public Defender’s office by the Missouri Governor, which has led the state to have the 49th most underfunded office in the nation, the head of the Public Defender’s office has invoked a section of state law to assign the Governor as a defense attorney for an indigent defendant.

It’s a “No Saving Throw” kind of thing under state law:

Fed up with what he says is the governor’s failure to properly fund his overwhelmed office, the state’s lead public defender ordered Gov. Jay Nixon this week to represent a poor person in Cole County this month.

Michael Barrett said he was using a provision of state law that allows him in extraordinary circumstances to delegate legal representation “to any member of the state bar of Missouri.” He’s starting with the state’s highest-profile lawyer: Nixon.

Barrett says the governor has repeatedly declined to give the public defender system the money it requests and is withholding promised funding increases this year.

“Providing counsel to poor people who face incarceration is the obligation of the state. It’s not fair to go after private attorneys who are trying to pay the rent when they had nothing to do with contributing to this,” Barrett said in an interview Wednesday.

Barrett never exercised this power before because he thought it was wrong to place the burden of public cases on private attorneys “who have in no way contributed to the current crisis,” he wrote in a letter to the governor dated Tuesday.

“However, given the extraordinary circumstances that compel me to entertain any and all avenues for relief, it strikes me that I should begin with the one attorney in the state who not only created this problem, but is in a unique position to address it,” Barrett wrote, referring to Nixon, a Democrat who was a four-term attorney general before becoming governor.

………

The Missouri constitution allows the director of the public defender system to assign cases to any lawyer in the state, regardless of whether the lawyer is a public defender, Barrett said.

Just this June, the legislature granted the public defender system a $4.5 million increase, which would’ve helped in hiring 10 more employees and some private attorneys on a contractual basis. The office currently employs more than 370 attorneys. Officials with the public defender’s office had asked for a $23.1 million boost, while Nixon recommended a $1 million increase.

Last month, Barrett and the Missouri State Public Defender Commission filed a lawsuit claiming that Nixon withheld $3.5 million of that $4.5 million increase. Barrett claims Nixon is targeting the public defender system for budget cuts while leaving more money for other programs he likes.

Rather unsurprisingly, the Governor is claiming that this assignment isn’t legal, but the law is pretty explicit here: the head of the Public Defender’s office can involuntarily appoint a bar member as counsel for an indigent defendant.

It’s gotten to the point where the US Department of Justice has expressed concerns that the state is violating defendants’ civil rights, and the governor keeps trying to gut the office.

Nixon deserves what’s happened to him.

A PDF of the letter is after the break:

Brownback’s Folly

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Turns out Speaker Boehner is indeed enjoying Kansas primary night. Just received this from former staffer! pic.twitter.com/hIzmFt8hn0

— carl hulse (@hillhulse) August 3, 2016

Well, Boehner is happy

Yesterday was primary night in Kansas, and Governor Sam Brownback’s motley crew of Teabagger scum got served:

A top Senate leader and at least 10 other conservative Kansas legislators lost their seats as moderate Republicans made Tuesday’s primary election a referendum on the state’s budget problems and education funding.

Senate Majority Leader Terry Bruce, of Nickerson, fell in his south-central Kansas district to Ed Berger, former president of Hutchinson Community College. Bruce’s defeat came amid a backlash against Republican Gov. Sam Brownback and his allies that appeared to spell trouble for conservatives.

“The way the state has been going, we have so many problems, and we need some changes to be made,” said Stanley Prichard, a 46-year-old manufacturing worker from Hutchinson, who voted for Berger in the Republican primary.

Five other conservative senators lost in races that spanned the state. So did five conservative House members, all of them from affluent Kansas City-area suburbs in Johnson County, the state’s most populous, where voters have cherished good public schools for decades.

The voting occurred against the backdrop not only of the state’s fiscal woes but ongoing legal and political disputes over funding for public schools. The state Supreme Court could rule by the end of the year on whether the Legislature is shorting schools on their state aid by hundreds of millions of dollars a year.

Browback got a sh%$ load of money a few years from the Koch Brothers to get antediluvian reactionary candidates, and once they were elected, they proceeded to destroy the state.

Their theory was that if they lowered taxes on rich folk to next to nothing, and strip mined government, that prosperity would ensue.

As you can see, it did not work.

BTW, one of the most obnoxious of Teabaggers in Congress, Tim Huelskamp, just got crushed in the primary.

Boehner is having a glass of wine to celebrate because he drinks a lot, and because Huelskamp was the most Teabagger of the Teabagger Caucus in the House of Representatives, and undermined the then Speaker at every turn.

I think that the new members of the state lege are in for a rude awakening if they think that Brownback will see this as anything by an excuse to double down on his failed policies, because in his mind, wing nuttery can never, it can only be failed.

Kansas will be having interesting times, as in the Chinese curse, over the next few years.

Quote of the Day

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Think rich people get too many nice things from the government? Raise their damn taxes. Don’t use it as an excuse to make giving nice things to everyone else so complicated that it practically isn’t worth bothering.

—Duncan “Atrios” Black

This is a most excellent take-down of the over use of means testing of social programs.

It is both morally and fiscally bankrupt.

Yes, I am referring to Hillary Clinton’s objection to Bernie Sanders proposal for free college tuition was the remote possibility that Donald Trumps kids might get a free college education.