I tremble for my country when I reflect that God is just.
Thomas Jefferson
How the Grinch Stole a Young Boy's Ear
Aidan Sullivan, a 9-year-old third grader who is the oldest child in a New York City firefighter's family, suffers from a congenital disease that left the right side of his head deformed, including no right ear. One can imagine how difficult it must be growing up as a child whom looks different from other kids. Aidan has already undergone 10 surgeries, but this one, which would form a right ear using cartilage from his ribs, is not covered by insurance, and two fundraisers had raised $8K to defray related medical expenses, when the donation box was stolen when it was briefly set down and backs were turned. Showing, once again, the fundamental goodness characteristic of our fellow Americans, others have stepped forward to replace the stolen money. I like Aidan's spunkiness; his open message to the unidentified thief is: "I'm going to kick your butt!"
Bipartisan Policy Center Deficit Reduction Plan: Thumbs UP: A Good Start
The BPC was co-founded by 4 former Senate Majority Leaders: 2 Democrat (Mitchell (ME) and Daschle (SD)) and 2 Republican (Baker (TN) and Dole (KS)). A second deficit reduction plan, this one independent of President Obama, was introduced by former Republican Senator Domenici (NM) and Democrat Alice Rivlin (former CBO and Clinton Administration budget director). There are several elements of note:
- a simpler, lower, two income tax rate bracket schema
- a payroll tax holiday, subsequently displaced by a national sales tax
- lower corporate tax bracket
- elimination of many idiosyncratic credits, deductions with a transformation of two of the most popular (mortgage and charitable giving)
- changes to social security include more contributions from the affluent, reduction of some benefits on all but the lowest income
- changes to Medicaid include more (means-tested) deductibles, reductions of some benefits
- $1T reductions of military and domestic spending (separately) over the coming decade
My brief take: I like the income tax simplification and lower income tax rates (particularly for business); I've been consistently calling for a more balanced tax system, including consumption taxes; I've also been calling for more vesting of consumers in health care payments. If there is going to be a stimulus, I like the idea of balancing it across employers and employees, e.g., through payroll taxes.
However, I have some criticisms to make. First, I'm hesitant about the wisdom of short-term tax cuts; I think it results in noise on the demand size and introduces end-point game playing. Second, I don't like the idea of making the entitlements even more progressive. In essence, in guaranteeing more benefits for lower-income seniors, we are describing more of a welfare net, and so those extra benefits should come from general revenues. Third, I don't like the fact this group is not looking at delaying the retirement age. Finally, I think the defense and domestic spending cuts will be easier said than done. I would have liked to see greater elaboration for some things, like the earlier plan which included things like pay freezes and staffing cutbacks. I think there should be a ceiling on certain types of deductions (e.g., mortgage). I also think everyone should contribute a portion of income, even the less affluent to ensure everyone has some stake in efficient government spending.
Political Humor
A few originals:
- President Obama got a split lip playing a game of pick-up basketball when Rey Decerega, director of programs for the Congressional Hispanic Caucus Institute, elbowed him in the act of shooting. No doubt it was a Freudian slip of the elbow over immigration policy... I expect that all future basketball opponents will now undergo a screening of their elbow pads, sweatbands, shoes, and trunks, just like pro wrestlers. That probably doesn't bother the players as much as openly gay Secret Service agents using the open-palm sliding motion during the pat-down.
- Sarah Palin is still smarting for her "North Korean allies" gaffe and responded with a Facebook message highlighting well-known Obama gaffes. No word on what Palin's reaction was to another beauty pageant veteran, former Miss Universe Alicia Machado's recent tweet: "Tonight I want to ask you to join me in a prayer for peace, that these attacks between the Chinas [i.e., vs. Koreas] do not make our situation worse." I'm sure Palin's discussion of the two-China policy did NOT make reference to the relative merits of bone china and porcelain.
Spike Jones, "All I Want For Christmas Is My Two Front Teeth"
