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Posts Tagged ‘TAXES’

MACHIAVELLI VS. THE IRS

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on August 7, 2020 at 12:10 am

More than 500 years ago, the Florentine statesman, Niccolo Machiavelli, warned: A prince…must imitate the fox and the lion, for the lion cannot protect himself from traps, and the fox cannot defend himself from wolves.  One must therefore be a fox to avoid traps, and a lion to frighten wolves. Those who wish to be only lions do not realize this. 

And never is the need greater to imitate the fox than when dealing with the Internal Revenue Service (IRS).

Several years ago, a private investigative agency found itself in serious trouble with that agency.

One of its employees had suddenly quit the company—leaving behind a major financial disaster.

That employee—whom I’ll call Pete—had been tasked with sending payroll tax records to the IRS. The company’s owner, Bill, assumed he had carried out his assignment.

Until he learned from the IRS that they had never received the records.

Consider the potential consequences:

  • Failing to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.
  • Similar state and local penalties apply.
  • Failing to properly file monthly or quarterly returns may result in additional penalties.
  • Failing to file W-2 Forms results in an automatic penalty of up to $50 per form not timely filed.
  • A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS.
  • The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.

About 70% of the annual revenue collected by the IRS comes from payroll taxes. Under-reported and unpaid employment taxes account for about $72 billion of the United States tax gap. So the IRS makes the collection of payroll taxes a high priority.

No doubt about it—Bill was facing serious trouble.

Sales/Use Tax Alert | Green NRG Institute

What to do?  

Fortunately, Steve, one of Bill’s employees, had a B.A. in Communications and had worked as a newspaper reporter.

When Bill told him of the calamity he was facing, Steve offered his best advice: Immediately contest the charge that he had been delinquent in providing the records. And explain to the IRS—in writing—what had happened.  

Bill agreed.

First,  Steve interviewed him at length to make certain he fully understood the circumstances leading up to his present crisis. 

Then Steve sat down and typed up a letter—on office letterhead stationery—-to the IRS. Letterhead would give it an official appearance—and Steve wanted every advantage he could get.

Steve offered a straightforward presentation of what had happened: Pete, the number-two man in the company, had been entrusted with submitting payroll tax records to the IRS. But, nursing a grudge against his employer, he had dumped the records in a box and stashed this in a locked filing cabinet.

Then he had given notice and left the company.  Later, an investigation of the office turned up the records—as well as the revelation that Pete had often used his office computer to access pornography.

In his letter, Steve emphasized that Bill’s company had previously had an unblemished record for meeting its payroll tax obligations on time. And he stated that the newly-found records had been sent to the IRS by registered mail.

Finally, Steve wrote that Bill was prepared to fully meet his financial obligations  to the IRS. But he asked that Bill not be penalized for the irresponsible actions of a single, disgruntled employee.

The result? 

Bill ended up paying only those monies that he legally owed.  He was not forced to pay a penalty.

So what are the lessons to be learned from this episode?

  • In dealing with an agency as powerful as the IRS, don’t ignore its letters. 
  • You have nothing to gain by pretending it will go away.  It won’t.
  • If you owe money, don’t deny it. 
  • Remain calm, even if you feel angry or afraid. 
  • Don’t use profanity or insults. 
  • Don’t try to play tough-guy with the IRS.  Even the Mafia fears this agency.
  • And with good reason: Al Capone didn’t go to prison for murder or bootlegging. He went away for income tax evasion.

  • If you have a legitimate reason for having missed a payment, say so. 
  • Remember that everything you say to the IRS—verbally or in writing—is considered evidence given under oath. 
  • If you lie and get caught, you can face perjury charges as well as those for failing to comply with tax laws.
  • Offer to fully pay any monies that you legally owe.
  • If these amount to more than you can meet in a single payment, say so. Ask the agency to set up a plan by which you can pay it off in installments.
  • If the agency balks at cooperating with you, contact a veteran tax accountant or attorney.
  • The best accountants or attorneys for dealing with the IRS are former agents now working in private practice. They not only know the tax laws; they know the best ways to short-circuit an IRS audit and/or penalties.

DONALD TRUMP’S ULTIMATE STRATEGY

In Bureaucracy, History, Law Enforcement, Military, Politics, Social commentary on September 27, 2017 at 12:28 am

Since taking office as the Nation’s 45th President, Donald Trump has attacked or undermined one public or private institution after another.

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Donald Trump

Among these:

  • American Intelligence and military agencies: A Trump executive order allows the Director of National Intelligence and chairman of the Joint Chiefs of Staff to attend the Principals’ Committee only when it pertains to their “responsibilities and expertise.”
  • In February, Trump approved and ordered a Special Forces raid in Yemen on an Al Qaeda stronghold. The assault resulted in the death of Navy SEAL Chief Petty Officer William “Ryan” Owens.
  • Disavowing any responsibility for the failure, Trump said: ““This was a mission that was started before I got here. This was something they wanted to do. They came to me, they explained what they wanted to do–the generals–who are very respected, my generals are the most respected that we’ve had in many decades, I believe. And they lost Ryan.”
  • Medicare: During the 2016 campaign, Trump said he would allow Medicare to negotiate down the price of prescription drugs. At his January 10 press conference he charged that pharmaceutical companies were “getting away with murder.”
  • But after meeting with pharmaceutical lobbyists on January 31, Trump said: “I’ll oppose anything that makes it harder for smaller, younger companies to take the risk of bringing their product to a vibrantly competitive market. That includes price-fixing by the biggest dog in the market, Medicare.”
  • The press: On February 17, Trump tweeted: “The FAKE NEWS media (failing @nytimes, @NBCNews, @ABC, @CBS, @CNN) is not my enemy, it is the enemy of the American People!”
  • And, appearing before the Conservative Political Action Conference on February 24, Trump said: “I want you all to know that we are fighting the fake news. It’s fake, phony, fake….I’m against the people that make up stories and make up sources. They shouldn’t be allowed to use sources unless they use somebody’s name. Let their name be put out there.”
  • The Secret Service: Trump has kept his longtime private security force, and combined its members with those of the elite federal agency. By marginalizing the Secret Service, he has clearly sent the message: You’re not good enough, and I don’t trust you.
  • The Environmental Protection Agency (EPA): Trump believes that climate change is a hoax. He didn’t offer any proof for this. Instead, he appointed an EPA director–Scott Pruitt–who claimed that climate change wasn’t caused by human activity.
     CBO logo.png

Seal of the CBO

  • President Barack Obama: For five years, Trump, more than anyone else, popularized the slander that President Barack Obama was born in Kenya–and was therefore not an American citizen.
  • On March 23, 2011, Trump said: “I want him to show his birth certificate. I want him to show his birth certificate. …There’s something on that birth certificate that he doesn’t like.” 
  • Even after Obama released the long-form version of his birth certificate–on April 27, 2011–Trump tweeted, on August 6, 2012: “An ‘extremely credible source’ has called my office and told me that @BarackObama‘s birth certificate is a fraud.”
  • On November 23, 2014, he tweeted this: “@futureicon@pinksugar61 Obama also fabricated his own birth certificate after being pressured to produce one by @realDonaldTrump“.
  • Then, in June, 2015, Trump declared himself a candidate for President. By September, 2016, he found his popularity steadily dropping among black voters. Even the managers of Trump’s campaign urged him to put the “birther” issue behind him. 
  • On September 16, 2016—10 days before his scheduled first debate with Democratic Presidential nominee Hillary Clinton—Trump made his version of a reversal: “Hillary Clinton and her campaign of 2008 started the birther controversy. “I finished it.  I finished it. You know what I mean. President Barack Obama was born in the United States, period.”

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Barack Obama

  • On March 4, 2017, in a series of unhinged tweets, Trump accused former President Obama of tapping his Trump Tower phones prior to the election: “Terrible! Just found out that Obama had my ‘wires tapped’ in Trump Tower just before the victory. Nothing found. This is McCarthyism!”  
  • “Is it legal for a sitting President to be ‘wire tapping’ a race for president prior to an election? Turned down by court earlier. A NEW LOW!” 
  • “I’d bet a good lawyer could make a great case out of the fact that President Obama was tapping my phones in October, just prior to Election!” 
  • “How low has President Obama gone to tapp my phones during the very sacred election process. This is Nixon/Watergate. Bad (or sick) guy!”  

Thus, without offering a shred of evidence to back it up, Trump accused his predecessor of committing an impeachable offense.

* * * * *

Donald Trump isn’t crazy, as many of his critics charge.  He knows what he’s doing—and why.

He intends to strip every potential challenger to his authority—or his version of reality–of legitimacy with the public.  If he succeeds, there will be:

  • No independent press to reveal his failures and crimes.
  • No independent law enforcement agencies to investigate his abuses of office.
  • No independent judiciary to hold him accountable.
  • No independent military to dissent as he recklessly hurtles toward a nuclear disaster.
  • No candidate—Democrat or Republican—to challenge  him for re-election in 2020.
  • No candidate—Democrat or Republican—to challenge his remaining in office as “President-for-Life.”

TRUST ONLY ME–EVEN WHEN I’M LYING: PART TWO (END)

In Bureaucracy, History, Military, Politics, Social commentary on March 17, 2017 at 12:16 am

Since taking office as the Nation’s 45th President, Donald Trump has attacked or undermined one public or private institution after another.

Among these:

  • The Secret Service: Trump has kept his longtime private security force, and combined its members with those of the elite federal agency. By marginalizing the Secret Service, he has clearly sent the message: You’re not good enough, and I don’t trust you.
  • The Bureau of Labor Statistics (BLS):  As a Presidential candidate Trump slammed the agency’s employment numbers that showed the economy improving under the Obama administration.  His response on March 12, 2016: “The numbers are phony. These are all phony numbers. Numbers given to politicians to look good. These are phony numbers.”
  • In February, 2017, the BLS said  that American  businesses had added 235,000 workers to their payrolls.
  • On March 10, a reporter asked Trump’s press secretary, Sean Spicer, whether, given his past statements, Trump thought this jobs report was “accurate.” Spicer replied: “I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’”
  • The Environmental Protection Agency (EPA): Trump believes that climate change is a hoax. He didn’t offer any proof for this. Instead, he appointed an EPA director–Scott Pruitt–who claimed that climate change wasn’t caused by human activity. 
  • Pruitt ordered EPA staffers to remove pages from the agency’s website concerning climate change, threatened to review all of the agency’s data and publications, and cut the budgets of all scientific research in government.
  • The Congressional Budget Office (CBO): Fearing the CBO’s verdict on the costs and coverage of his proposed Trumpcare replacement for the Affordable Care Act (ACA), Trump ordered a preemptive strike on the agency’s credibility. Said Sean Spicer to assembled reporters: “If you’re looking at the CBO for accuracy, you’re looking in the wrong place.”
  • The director of the CBO is a Republican economist and former George W. Bush administration official who was chosen for his position by the Republican Congress in 2015. 
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  • President Barack Obama: For five years, Trump, more than anyone else, popularized the slander that President Barack Obama was born in Kenya–and was therefore not an American citizen.
  • On March 23, 2011, Trump said: “I want him to show his birth certificate. I want him to show his birth certificate. …There’s something on that birth certificate that he doesn’t like.” 
  • Even after Obama released the long-form version of his birth certificate–on April 27, 2011–Trump tweeted, on August 6, 2012: “An ‘extremely credible source’ has called my office and told me that @BarackObama‘s birth certificate is a fraud.”
  • On November 23, 2014, he tweeted this: “@futureicon@pinksugar61 Obama also fabricated his own birth certificate after being pressured to produce one by @realDonaldTrump“.
  • Then, in June, 2015, Trump declared himself a candidate for President. By September, 2016, he found his popularity steadily dropping among black voters. Even the managers of Trump’s campaign urged him to put the “birther” issue behind him. 
  • On September 16, 2016–10 days before his scheduled first debate with Democratic Presidential nominee Hillary Clinton–Trump made his version of a reversal: “Hillary Clinton and her campaign of 2008 started the birther controversy. “I finished it.  I finished it. You know what I mean. President Barack Obama was born in the United States, period.” 

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Barack Obama

  • On March 4, 2017, in a series of unhinged tweets, Trump accused former President Obama of tapping his Trump Tower phones prior to the election: “Terrible! Just found out that Obama had my ‘wires tapped’ in Trump Tower just before the victory. Nothing found. This is McCarthyism!”  
  • “Is it legal for a sitting President to be ‘wire tapping’ a race for president prior to an election? Turned down by court earlier. A NEW LOW!” 
  • “I’d bet a good lawyer could make a great case out of the fact that President Obama was tapping my phones in October, just prior to Election!” 
  • “How low has President Obama gone to tapp my phones during the very sacred election process. This is Nixon/Watergate. Bad (or sick) guy!”  

Thus, without offering a shred of evidence to back it up, Trump accused his predecessor of committing an impeachable offense. 

* * * * *

Donald Trump isn’t crazy, as many of his critics charge. He knows what he’s doing. His strategy is two-fold–both immediate and long-term.

In the short-term, he’s attacking anyone who dares to disagree with him. Much of this is driven by his own natural aggression–he can’t tolerate criticism or dissent.  

The long-term reason for his assaults on public and private institutions is far more sinister.

He intends to strip every potential challenger to his authority–or his version of reality–of any credibility with the public.  

If he succeeds, there will be:

  • No independent press to reveal his failures and crimes.
  • No independent law enforcement agencies to investigate his abuses of office.
  • No independent judiciary to hold him accountable.  
  • No independent military authorities to dissent as he recklessly hurtles toward potential nuclear showdowns.
  • No candidate–Democrat or Republican–to challenge him for re-election in 2010.
  • No candidate–Democrat or Republican–to challenge his remaining in office as “President-for-Life.”

TRUST ONLY ME–EVEN WHEN I’M LYING: PART ONE (OF TWO)

In Bureaucracy, History, Military, Politics, Social commentary on March 16, 2017 at 12:28 am

On February 19, Robert Reich, former Secretary of Labor under President Bill Clinton, posted a scathing–and accurate–attack on Donald Trump.

Writing on his Facebook page, Reich pointed out a series of statements Trump made during the 2016 Presidential campaign–and how each of them has proven to be a lie [italics in blue are added]:

Robert Reich at the UT Liz Carpenter Lecture 2015.JPG

Robert Reich

1.  He called Hillary Clinton a crook.  

You bought it.  

Then he paid $25 million to settle a fraud lawsuit.

2. He said he’d release his tax returns, eventually. 

You bought it. 

He hasn’t, and says he never will.

3. He said he’d divest himself from his financial empire, to avoid any conflicts of interest. 

You bought it. 

He is still heavily involved in his businesses, manipulates the stock market on a daily basis, and has more conflicts of interest than can even be counted.

4. He said Clinton was in the pockets of Goldman Sachs, and would do whatever they said.  

You bought it.  

He then proceeded to put half a dozen Goldman Sachs executives in positions of power in his administration.

5. He said he’d surround himself with all the best and smartest people.

You bought it.

He nominated theocratic loon Mike Pence for Vice President. A white supremacist named Steve Bannon is his most trusted confidant. Dr. Ben Carson, the world’s greatest idiot savant brain surgeon, is in charge of HUD. Russian quisling Rex Tillerson is Secretary of State.

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Steve Bannon

6. He said he’d be his own man, beholden to no one.

You bought it.

He then appointed Betsy DeVos as Secretary of Education, whose only “qualifications” were the massive amounts of cash she donated to his campaign.

7. He said he would “drain the swamp” of Washington insiders.

You bought it.

He then admitted that was just a corny slogan he said to fire up the rubes during the rallies, and that he didn’t mean it.

8. He said he knew more about strategy and terrorism than the Generals did.

You bought it.

He promptly gave the green light to a disastrous raid in Yemen- even though all his Generals said it would be a terrible idea. This raid resulted in the deaths of a Navy SEAL, an 8-year old American girl, and numerous civilians. The actual target of the raid escaped, and no useful intel was gained.

9. He said Hillary Clinton couldn’t be counted on in times of crisis.

You bought it.

He didn’t even bother overseeing that raid in Yemen; and instead spent the time hate-tweeting the New York Times, and sleeping.

10. He called CNN, the Washington Post and the New York Times “fake news” and said they were his enemy.

You bought it.

He now gets all his information from Breitbart, Gateway Pundit, and InfoWars.

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Donald Trump

11. He called Barack Obama “the vacationer-in-Chief” and accused him of playing more rounds of golf than Tiger Woods. He promised to never be the kind of president who took cushy vacations on the taxpayer’s dime, not when there was so much important work to be done.

You bought it.

He took his first vacation after 11 days in office. On the taxpayer’s dime. And went golfing. And that’s just the first month.  

* * * * *

Since taking office as the Nation’s 45th President, Trump has attacked or undermined one public or private institution after another.  

Among these: 

  • American Intelligence and military agencies: A Trump executive order allows the Director of National Intelligence and chairman of the Joint Chiefs of Staff to attend the Principals’ Committee only when it pertains to their “responsibilities and expertise.” 
  • Senior Adviser and Chief Strategist Steve Bannon–an anti-Semitic white supremacist–will now wield influence over the National Security Council.  
  • In February, Trump approved and ordered a Special Forces raid in Yemen on an Al Qaeda stronghold. The assault resulted in the death of Navy SEAL Chief Petty Officer William “Ryan” Owens.
  • Disavowing any responsibility for the failure, Trump said: ““This was a mission that was started before I got here. This was something they wanted to do. They came to me, they explained what they wanted to do–the generals–who are very respected, my generals are the most respected that we’ve had in many decades, I believe. And they lost Ryan.”
  • Medicare: During the 2016 campaign, Trump said he would allow Medicare to negotiate down the price of prescription drugs. At his January 10 press conference he charged that pharmaceutical companies were “getting away with murder.”
  • But after meeting with pharmaceutical lobbyists on January 31, Trump said: “I’ll oppose anything that makes it harder for smaller, younger companies to take the risk of bringing their product to a vibrantly competitive market. That includes price-fixing by the biggest dog in the market, Medicare.”
  • The press: On February 17, Trump tweeted: “The FAKE NEWS media (failing @nytimes, @NBCNews,@ABC, @CBS, @CNN) is not my enemy, it is the enemy of the American People!”
  • And, appearing before the Conservative Political Action Conference on February 24, Trump said: “I want you all to know that we are fighting the fake news. It’s fake, phony, fake….I’m against the people that make up stories and make up sources. They shouldn’t be allowed to use sources unless they use somebody’s name. Let their name be put out there.” 

A TAXING PROBLEM

In Bureaucracy, Business, Law, Law Enforcement, Self-Help on November 4, 2016 at 12:23 am

“We’ll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail.”
–Dave Barry

Several years ago, a private investigations agency found itself in serious trouble with the Internal Revenue Service (IRS).

One of its employees had suddenly quit the company–leaving behind a major financial disaster.

That employee–whom I’ll call Pete–had been tasked with sending payroll tax records to the IRS. The company’s owner, Bill, assumed he had carried out his assignment.

Until he learned from the IRS that they had never received the records.

Consider the potential consequences:

  • Failing to timely and properly pay federal payroll taxes results in an automatic penalty of 2% to 10%.
  • Similar state and local penalties apply.
  • Failing to properly file monthly or quarterly returns may result in additional penalties.
  • Failing to file W-2 Forms results in an automatic penalty of up to $50 per form not timely filed.
  • A particularly severe penalty applies where federal income tax withholding and Social Security taxes are not paid to the IRS.
  • The penalty of up to 100% of the amount not paid can be assessed against the employer entity as well as any person (such as a corporate officer) having control or custody of the funds from which payment should have been made.

About 70% of the annual revenue collected by the IRS comes from payroll taxes. Under-reported and unpaid employment taxes account for about $72 billion of the United States tax gap. So the IRS makes the collection of payroll taxes a high priority.

No doubt about it–Bill was facing serious trouble.

What to do?  

Fortunately, Steve, one of Bill’s employees, had a B.A. in Communications and had worked as a newspaper reporter.

When Bill told him of the calamity he was facing, Steve offered his best advice: Immediately contest the charge that he had been delinquent in providing the records. And explain to the IRS–in writing–what had happened.  

Bill agreed.

First,  Steve interviewed him at length to make certain he fully understood the circumstances leading up to his present crisis.

Then Steve sat down and typed up a letter–on office letterhead stationery–to the IRS. Letterhead would give it an official appearance–and Steve wanted every advantage he could get.

Steve offered a straightforward presentation of what had happened: Pete, the number-two man in the company, had been entrusted with submitting payroll tax records to the IRS.

Apparently nursing a grudge against the company, he had, in fact, done nothing of the sort.

Instead, he had dumped the records in a box and stashed this in a locked filing cabinet.

Then he had given notice and left the company. Later, an investigation of his office computer revealed that it had often been used to access pornography.

Steve emphasized that Bill’s company had previously had an unblemished record for meeting its payroll tax obligations on time. And he stated that the newly-found records had been sent to the IRS by registered mail.

Finally, Steve wrote that Bill was prepared to fully meet his financial obligations  to the IRS. But he asked that Bill not be penalized for the irresponsible actions of a single, malcontented employee.

The result? 

Bill ended up paying only those monies that he legally owed.  He was not forced to pay a penalty.

So what are the lessons to be learned from this episode?

  • In dealing with an agency as powerful as the IRS, don’t ignore its letters and/or phone calls. 
  • You have nothing to gain by pretending it will go away.  It won’t.
  • If you owe money, don’t deny it. 
  • Remain calm, even if you feel angry or afraid. 
  • Don’t use profanity or insults. 
  • Don’t try to play tough-guy with the IRS.  Even the Mafia fears this agency.

  • If you have a legitimate reason for having missed a payment, say so. 
  • Remember that everything you say to the IRS–verbally or in writing–is considered evidence given under oath. 
  • If you lie and get caught, you can face perjury charges as well as those for failing to comply with tax laws.
  • Offer to fully pay any monies that you legally owe.
  • If these amount to more than you can meet in a single payment, say so. Ask the agency to set up a plan by which you can pay it off in installments.
  • If the agency balks at cooperating with you, contact a veteran tax accountant or attorney.
  • The best accountants or attorneys for dealing with the IRS are former agents now working in private practice. They not only know the tax laws; they know the best ways to short-circuit an IRS audit and/or penalties.

PAY MORE TAXES, GET LESS FOR THEM

In Bureaucracy, Business, History, Law, Law Enforcement, Politics, Social commentary on November 1, 2016 at 6:20 am

The budget for the City and County of San Francisco for 2016-17 is $9.6 billion. Its proposed budget for 2017-18 is $9.7 billion.

San Francisco occupies 46.87 miles and has a population of 837,442.

Roughly half of the budget goes toward city-related business operations–such as the Port, the bus line, the Airport and the Public Utilities Commission.

The other half of the budget goes toward such public services as Public Health, Police and Fire Services, Recreation and Parks.

As the November 8 election quickly approaches, the most controversial issue on the city ballot is Proposition V.

Specifically, this calls for a tax of one cent per ounce from the distributors of sugar-sweetened beverages.

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Currently, San Francisco does not impose a tax on the distribution of sugar-sweetened beverage.

The initiative defines “a sugar-sweetened beverage” as “a beverage that contains added sugar and 25 or more calories per 12 ounces.

“These include some soft drinks, sports drinks, iced tea, juice drinks and energy drinks. The tax would also apply to syrups and powders that can be made into sugar-sweetened beverages, for example, fountain drinks from beverage-dispensing machines.”

Supporters of the initiative are trying to sell it via the “save our kids” argument. The Vote Yes on V campaign states:

“On November 8th, the health of children in San Francisco relies on us.

“Proposition V will tax distributors of soda and other sugary drinks that have direct links to obesity and chronic diseases such as diabetes, heart and liver disease.”

Left unsaid is how putting more money into city coffers would lead children to show more restraint in buying “sugar-sweetened beverages.”

Perhaps the real reason why many city officials enthusiastically back this measure can be found in a statement by the San Francisco Controller:

“Should this ordinance be approved, in my opinion, it would result in an annual tax revenue increase to the City of approximately $7.5 million in fiscal year (FY) 2017–2018 and $15 million in FY 2018–19The tax is a general tax and proceeds would be deposited into the General Fund.”

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San Francisco Controller’s Office

San Francisco takes in more than $9 billion in taxes every year. But for many San Francisco officials this just isn’t enough.

Yet for many San Francisco residents, it is. In 2014, they defeated a similar soda tax.

Opponents of the tax have attacked it as a “grocery tax.” They argue that grocers–especially those running the mom-and-pop stores popular in San Francisco–will pass on the costs to their customers by raising prices on groceries altogether.

Proposition V supporters claim this is a lie. Rebecca Kaplan, a member of the Oakland Council, told the Huffington Post: “People worry about having to pay for their groceries. To threaten that their groceries are going to be taxed when it’s not true is a totally despicable tactic from the soda industry.”

Actually, there is nothing in the measure to prevent grocers from passing the tax on to consumers.

Meanwhile, what are San Franciscans getting for the $9 billion in taxes City Hall collects?

  • Call the general number of the police or fire department–and chances are you’ll get a recorded message telling you to wait your turn in line.

Call even 9-1-1 and the odds are great that you’ll get the same message. And if you complain to a city official about it, you’ll likely be told: “Well, we have only so many operators.”

The last thing someone calling police or the fire department in a crisis wants to hear is: “We’ll get back to you when we feel like it.”

  • Or wander into downtown Market Street, a major thoroughfare into the heart of San Francisco.

You’ll find its red-brick blocks filled with stinking, disease-ridden, drug- or alcohol-addicted, often psychotic men and women whom city officials politely call “the homeless.”

In 2016, the city spent $241 million on “homeless” services. But the population surges between 7,000 and 10,000. Of these, 3,000 to 5,000 refuse shelter.

City officials admit that San Francisco ranks second to New York in homelessness. What they won’t admit is that they are largely responsible for it.

The city’s mild climate and social programs that dole out cash payments to virtually anyone with no residency requirement draw rootless, unstable persons like a magnet.

  • The problems affecting the San Francisco Police Department (SFPD) aren’t as obvious as the homeless infesting the city’s streets. But they are nevertheless real.

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In 2002, the San Francisco Chronicle found that the city’s violent criminals had a better chance of escaping punishment than predators in any other large American city.

The SFPD had the lowest violent crime “clearance rate” among the nation’s 20 largest cities. Among Federal law enforcement agencies like the FBI and the U.S. Marshals Service, the SFPD is considered a joke.

  • At the San District Attorney’s Office, prosecutors often can’t decide if they want to lock up criminals–or defend them.

From 2004 to 2011, Kamala Harris served as the city’s District Attorney. In total defiance of the law, she set up a secret unit to keep even convicted illegal aliens out of prison.

Kamala Harris

Her program, called Back on Track, trained them for jobs they could not legally hold. This was a flagrant violation of Federal immigration law. It is not the duty of local law enforcement, she said, to enforce Federal immigration laws.

In San Francisco, you don’t necessarily get what you pay for.

TRUST YOUR BOSS LIKE HE’S GOD–AND SEE WHAT HAPPENS

In Business, History, Politics, Social commentary on October 10, 2014 at 12:25 am

Microsoft CEO Satya Nadella says women don’t need to ask for a raise. They should just trust “the system.”

Speaking on October 9 at an event in Phoenix to celebrate women in computing, Nadella was asked: What advice do you have for women who feel uncomfortable asking for a raise?

His reply:  “It’s not really about asking for the raise, but knowing and having faith that the system will actually give you the right raises as you go along.

“Because that’s good karma.  It’ll come back because somebody’s going to know that’s the kind of person that I want to trust.”

Satya Nadella

This from a CEO at whose company women comprise only 29% of its more than 100,000 employees.  And where its CEO has a net worth of $45 million.

Click here: Satya Nadella – Wikipedia, the free encyclopedia

If it’s true that corporations are people, then they are exceptionally greedy and selfish people.

A December, 2011 report by Public Campaign, highlighting corporate abuses of the tax laws, makes this all too clear.

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Public Campaign is a national nonpartisan organization dedicated to reforming campaign finance laws and holding elected officials accountable.

Summarizing its conclusions, the report’s author writes:

“Amidst a growing federal deficit and widespread economic insecurity for most Americans, some of the largest corporations in the country have avoided paying their fair share in taxes while spending millions to lobby Congress and influence elections.”

Its key findings:

  • The 30 big corporations analyzed in this report paid more to lobby Congress than they paid in federal income taxes between 2008 and 2010, despite being profitable.
  • Despite making combined profits totaling $164 billion in that three-year period, the 30 companies combined received tax rebates totaling nearly $11 billion.
  • Altogether, these companies spent nearly half a billion dollars ($476 million) over three years to lobby Congress. That’s about $400,000 each day, including weekends.
  • In the three-year period beginning in 2009 through most of 2011, these large firms spent over $22 million altogether on federal campaigns.
  • These corporations have also spent lavishly on compensatng their top executives ($706 million altogether in 2010).

Among those corporations whose tax-dodging and influence-buying were analyzed:

  • General Electric
  • Verizon
  • PG&E
  • Wells Fargo
  • Duke Energy
  • Boeing
  • Consolidated Edison
  • DuPont
  • Honeywell International
  • Mattel
  • Corning
  • FedEx
  • Tenet Healthcare
  • Wisconsin Energy
  • Con-way

The report bluntly cites the growing disparity between the relatively few rich and the vast majority of poor and middle-class citizens:

“Over the past few months, a growing protest movement has shifted the debate about economic inequality in this country.

“The American people wonder why members of Congress suggest cuts to Medicare and Social Security but won’t require millionaires to pay their fair share in taxes.

“They want to know why they are struggling to find jobs and put food on the the table while the country’s largest corporations get tax breaks and sweetheart deals, then use that extra cash to pay bloated bonuses to CEOs or ship jobs overseas.

“….At a time when millions of Americans are still unemployed and millions more make tough choices to get by, these companies are enriching their top executives and spending millions of dollars on Washington lobbyists to stave off higher taxes or regulations.”

Assessing the results of corporate tax-dodging, the report states:

  • Using various tax dodging techniques, including stashing profits in overseas tax havens and tax loopholes, 29 out of 30 companies featured in this study succeeded in paying no federal income taxes from 2008 through 2010.
  • These 29 companies received tax rebates over those three years, ranging from $4 million for Corning to nearly $5 billion for General Electric and totally nearly $11 billion altogether.
  • The only corporation that paid taxes in that three-year period, FedEx, paid a three-year tax rate of 1%, far less than the statutory rate of 35%.

The report bluntly notes the hypocrisy of corporate executives who call themselves “job creators” while enriching themselves by laying off thousands of employees:

“Another area where these corporations have decided to spend lavishly is compensation for their top executives ($706 million altogether in 2010).

“Executives doing particularly well work for General Electric ($76 million in total compensation in 2010), Honeywell International ($54 million), and Wells Fargo ($50 million).

“Executives who have seen the greatest increase work for DuPont (188% increase), Wells Fargo (180% increase) and Verizon (167% increase).

Despite being profitable, some of these corporations have actually laid off workers.

Since 2008, seven of the corporations have reported laying off American workers. The worst offenders–by 2011–are Verizon, which laid off at least 21,308 workers, and Boeing, which fired at least 14,862 employees.

Insisting that “corporations are people” wins applause from the wealthiest 1% and their Right-wing shills. But it does nothing to better the lives of the increasingly squeezed poor and middle-class.

If the nation is to avoid economic and moral bankruptcy, Americans must demand that powerful corporations be held accountable–and punished harshly when they behave irresponsibly.

CORPORATIONS ARE GREEDY PEOPLE, TOO

In Bureaucracy, Business, Law, Politics, Social commentary on August 29, 2013 at 12:01 am

“How many men ever went to a barbecue and would let one man take off the table what’s intended for nine-tenths of the people to eat? The only way you’ll ever be able to feed the balance of the people is to make that man come back and bring back some of that grub that he ain’t got no business with!”

–Louisiana Senator Huey P. Long, 1934

It was August 11, 2011–one year before he would receive the official Republican nomination for President.

Hustling for votes, Mitt Romney was speaking to a crowd of hundreds at the Iowa State Fair. He was being pressed about raising taxes to help cover entitlement spending.

Suddenly, a heckler suggested raising corporate tax rates.

Romney responded: “Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to the people. Where do you think it goes? Whose pockets? Whose pockets? People’s pockets. Human beings, my friend.”

The line earned him a sustained round of applause from the crowd.

If it’s true that corporations are people, then they are exceptionally greedy and selfish people.

A December, 2011 report by Public Campaign, highlighting corporate abuses of the tax laws, makes this all too clear.

Public Campaign is a national nonpartisan organization dedicated to reforming campaign finance laws and holding elected officials accountable.

Related image

Summarizing its conclusions, the report’s author writes:

“Amidst a growing federal deficit and widespread economic insecurity for most Americans, some of the largest corporations in the country have avoided paying their fair share in taxes while spending millions to lobby Congress and influence elections.”

Its key findings:

  • The thirty big corporations analyzed in this report paid more to lobby Congress than they paid in federal income taxes between 2008 and 2010, despite being profitable.
  • Despite making combined profits totaling $164 billion in that three-year period, the 30 companies combined received tax rebates totaling nearly $11 billion.
  • Altogether, these companies spent nearly half a billion dollars ($476 million) over three years to lobby Congress. That’s about $400,000 each day, including weekends.
  • In the three-year period beginning in 2009 through most of 2011, these large firms spent over $22 million altogether on federal campaigns.
  • These corporations have also spent lavishly on compensatng their top executives ($706 million altogether in 2010).

Among those corporations whose tax-dodging and influence-buying were analyzed:

  • General Electric
  • Verizon
  • PG&E
  • Wells Fargo
  • Duke Energy
  • Boeing
  • Consolidated Edison
  • DuPont
  • Honeywell International
  • Mattel
  • Corning
  • FedEx
  • Tenet Healthcare
  • Wisconsin Energy
  • Con-way

The report bluntly cites the growing disparity between the relatively few rich and the vast majority of poor and middle-class citizens:

“Over the past few months, a growing protest movement has shifted the debate about economic inequality in this country.

“The American people wonder why members of Congress suggest cuts to Medicare and Social Security but won’t require millionaires to pay their fair share in taxes.

“They want to know why they are struggling to find jobs and put food on the the table while the country’s largest corporations get tax breaks and sweetheart deals, then use that extra cash to pay bloated bonuses to CEOs or ship jobs overseas.

“….At a time when millions of Americans are still unemployed and millions more make tough choices to get by, these companies are enriching their top executives and spending millions of dollars on Washington lobbyists to stave off higher taxes or regulations.”

Assessing the results of corporate tax-dodging, the report states:

  • Using various tax dodging techniques, including stashing profits in overseas tax havens and tax loopholes, 29 out of 30 companies featured in this study succeeded in paying no federal income taxes from 2008 through 2010.
  • These 29 companies received tax rebates over those three years, ranging from $4 million for Corning to nearly $5 billion for General Electric and totally nearly $11 billion altogether.
  • The only corporation that paid taxes in that three-year period, FedEx, paid a three-year tax rate of 1%, far less than the statutory rate of 35%.

The report bluntly notes the hypocrisy of corporate executives who call themselves “job creators” while enriching themselves by laying off thousands of employees:

“Another area where these corporations have decided to spend lavishly is compensation for their top executives ($706 million altogether in 2010).

“Executives doing particularly well work for General Electric ($76 million in total compensation in 2010), Honeywell International ($54 million), and Wells Fargo ($50 million).

“Executives who have seen the greatest increase work for DuPont (188% increase), Wells Fargo (180% increase) and Verizon (167% increase).

Despite being profitable, some of these corporations have actually laid off workers.

Since 2008, seven of the corporations have reported laying off American workers. The worst offenders are Verizon, which laid off  at least 21,308 workers, and Boeing, which fired at least 14,862 employees.

Insisting that “corporations are people” wins applause from the wealthiest 1% and their Right-wing shills. But it does nothing to better the lives of the increasingly squeezed poor and middle-class.

If the nation is to avoid economic and moral bankruptcy, Americans must demand that powerful corporations be held accountable–and punished harshly when they behave irresponsibly.

CORPORATIONS ARE GREEDY PEOPLE, TOO

In Bureaucracy, Business, Law, Politics, Social commentary on April 10, 2013 at 12:02 am

“How many men ever went to a barbecue and would let one man take off the table what’s intended for nine-tenths of the people to eat? The only way you’ll ever be able to feed the balance of the people is to make that man come back and bring back some of that grub that he ain’t got no business with!”
– Louisiana Senator Huey P. Long, 1934

Campaigning for the Presidency, Mitt Romney was speaking to a crowd of hundreds at the Iowa State Fair. He was being pressed about raising taxes to help cover entitlement spending. Suddenly, a heckler suggested raising corporate tax rates.

Romney responded: “Corporations are people, my friend. Of course they are. Everything corporations earn ultimately goes to the people. Where do you think it goes? Whose pockets? Whose pockets? People’s pockets. Human beings, my friend.”

The line earned him a sustained round of applause from the crowd.

If it’s true that corporations are people, then they are exceptionally greedy and selfish people.

A December, 2011 report by Public Campaign, highlighting corporate abuses of the tax laws, makes this all too clear.

Public Campaign is a national nonpartisan organization dedicated to reforming campaign finance laws and holding elected officials accountable.

Summarizing its conclusions, the report’s author writes:

“Amidst a growing federal deficit and widespread economic insecurity for most Americans, some of the largest corporations in the country have avoided paying their fair share in taxes while spending millions to lobby Congress and influence elections.”

Its key findings:

  • The thirty big corporations analyzed in this report paid more to lobby Congress than they paid in federal income taxes between 2008 and 2010, despite being profitable.
  • Despite making combined profits totaling $164 billion in that three-year period, the 30 companies combined received tax rebates totaling nearly $11 billion.
  • Altogether, these companies spent nearly half a billion dollars ($476 million) over three years to lobby Congress. That’s about $400,000 each day, including weekends.
  • In the three-year period beginning in 2009 through most of 2011, these large firms spent over $22 million altogether on federal campaigns.
  • These corporations have also spent lavishly on compensatng their top executives ($706 million altogether in 2010).

Among those corporations whose tax-dodging and influence-buying were analyzed:

  • General Electric
  • Verizon
  • PG&E
  • Wells Fargo
  • Duke Energy
  • Boeing
  • Consolidated Edison
  • DuPont
  • Honeywell International
  • Mattel
  • Corning
  • FedEx
  • Tenet Healthcare
  • Wisconsin Energy
  • Con-way

The report bluntly cites the growing disparity between the relatively few rich and the vast majority of poor and middle-class citizens:

“Over the past few months, a growing protest movement has shifted the debate about economic inequality in this country.

“The American people wonder why members of Congress suggest cuts to Medicare and Social Security but won’t require millionaires to pay their fair share in taxes.

“They want to know why they are struggling to find jobs and put food on the the table while the country’s largest corporations get tax breaks and sweetheart deals, then use that extra cash to pay bloated bonuses to CEOs or ship jobs overseas.

“….At a time when millions of Americans are still unemployed and millions more make tough choices to get by, these companies are enriching their top executives and spending millions of dollars on Washington lobbyists to stave off higher taxes or regulations.”

Assessing the results of corporate tax-dodging, the report states:

  • Using various tax dodging techniques, including stashing profits in overseas tax havens and tax loopholes, 29 out of 30 companies featured in this study succeeded in paying no federal income taxes from 2008 through 2010.
  • These 29 companies received tax rebates over those three years, ranging from $4 million for Corning to nearly $5 billion for General Electric and totally nearly $11 billion altogether.
  • The only corporation that paid taxes in that three-year period, FedEx, paid a three-year tax rate of 1%, far less than the statutory rate of 35%.

The report bluntly notes the hypocrisy of corporate executives who call themselves “job creators” while enriching themselves by laying off thousands of employees:

“Another area where these corporations have decided to spend lavishly is compensation for their top executives ($706 million altogether in 2010).

“Executives doing particularly well work for General Electric ($76 million in total compensation in 2010), Honeywell International ($54 million), and Wells Fargo ($50 million).

“Executives who have seen the greatest increase work for DuPont (188% increase), Wells Fargo (180% increase) and Verizon (167% increase).

Despite being profitable, some of these corporations have actually laid off workers.

Since 2008, seven of the corporations have reported laying off American workers. The worst offenders are Verizon, which laid off 21,308 workers, and Boeing, which fired 14,862 employees.

Insisting that “corporations are people” wins applause from the wealthiest 1% and their Right-wing supporters. But it does nothing to better the lives of the poor and middle-class.

If the nation is to avoid economic and moral bankruptcy, Americans must demand that powerful corporations be held accountable–and punished harshly when they behave irresponsibly.

A NEW APPROACH TO GANGBUSTING: PART TWO (END)

In Bureaucracy, Law, Law Enforcement, Politics, Social commentary on April 4, 2013 at 12:01 am

There is a phrase that’s well-known south of the border: “Pan, o palo.”  Or, in English: “Bread or  stick.”

And this, in turn, comes down to: Behave well and you’ll get this nice reward.  Behave badly and you’ll get your head beaten in.

In my last column I discussed the need for brandishing the stick when dealing with powerful street gangs such as the Aryan Brotherhood.

It’s the Brotherhood that’s suspected of being responsible for murdering two Texas prosecutors since February.

In this column I want to discuss creatively using the carrot to at least partially control gang violence.

It’s essential to remember the following:

  • Some 33,000 violent street gangs, motorcycle gangs, and prison gangs with about 1.4 million members are criminally active in the U.S. today.
  • Gangs are responsible for an average of 48 percent of violent crime in most jurisdictions and up to 90%  in several others.
  • Many are sophisticated and well organized; all use violence to control neighborhoods and boost their illegal money-making activities, which include robbery, drug- and gun-trafficking, fraud, extortion, and prostitution rings.

These gangs aren’t going to disappear, no matter how many of their members die or wind up in prison.

For decades, the rhetoric of the Cold War has carried over into the debate over policing.

“Hawks” on the Right have demanded a “hard” approach to law enforcement, emphasizing punishment.  “Doves” on the Left have pursued a “soft” line, stressing social programs and rehabilitation.

But it isn’t enough to be “hard” or “soft” in pursuing the goal of a safe, law-abiding society.  It’s necessary to be “smart” above all.

If you can’t eradicate evil, then you should try to direct at least some of its elements into a safer path.  Thus:

  • Each state should invite its resident gang members to take part in a series of competition for the title of “State Gang Champion.”
  • These would be modeled on competitions now existing within the National Football League–a series of playoffs to determine which two gangs will duke it out in the “Super Rumble.”

vs.

  • These competitions would be completely voluntary, thus eliminating any charges of State coersion.
  • They would be modeled on the country’s current mania for “Ultimate Warrior” contests for kickboxers and bare-kunckled fighters.
  • Contestants–as many as a score or more from at least two opposing gangs–would meet in a football-sized arena.

A modern-day Coliseum

  • No firearms would be allowed.
  • Contestants could otherwise arm themselves with whatever weapons they desired–such as baseball bats, swords, axes, spears or chains.
  • Everyone who agreed to participate would automatically be granted immunity for whatever carnage they inflicted.
  • The object of these contests would be to officially determine which State gang was the “baddest” for the year.
  • Tickets could be purchased by fans looking for an afternoon’s festival of gore.
  • Television networks could–and no doubt would–vie for rights to film the events, just as they now do for “pay-for-view” wrestling or boxing matches.

But would hard-core gangs even consider participating in such a series of contests?

Yes–most gangs would want to do so.  Here’s why:

  1. They would be able to eliminate members of rival gangs without risk of prosecution and imprisonment.
  2. They would be able to gauge–through the heat of combat–the toughness of their own associates.
  3. They would gain at least temporary stardom–just as successful gladiators did under the Roman Empire.
  4. The winning gang would gain official status as “The Baddest” gang in the State.

On the last point: Napoleon Bonaparte created the Order of the Legion of Honor, distributed 15,000 crosses to his soldiers and called his troops the “Grand Army.”  When someone criticized him for giving “toys” to his war-hardened veterans, Napoleon replied: “Men are ruled by toys.”

And for the State there would be gains as well:

  1. These contests would literally eliminate a great many gang members who cannot be removed any other way.
  2. Police and prosecutors could concentrate their limited resources on gangs that refused to participate or were deemed to pose a threat.
  3. Millions of dollars in State revenues would be generated through ticket sales and the buying of pay-per-view rights.

Admittedly, many law-abiding citizens would be repulsed by the carnage that would result from implemting this proposal.   But these are generally the people who disdain boxing or wrestling contests anyway.

But given our increasingly jaded and violence-prone society, most of them would eventually tolerate it as an effective way to simultaneously raise badly-needed tax revenues and reduce the size of criminal gangs.

Republican politicians would find this an especially attractive proposal, since it adheres to the two concepts dear to the hearts of all Right-wingers: Killing people and making money.

In short: With sufficient creativity and ruthlessness, it should be possible to reclaim control of our streets from the evils of gang violence.

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