Announcing the LDS Democratic Caucus!

Soon, LDS Democrats will be an official caucus of the Utah Democratic Party! This is a pretty exciting development in Utah state politics. Utah has been effectively a one-party state since the 1960s, which is unfortunate because it means that the governing party has had little reason to worry about accountability, since they do not fear losing power. I previously posted a statement by an LDS General Authority regarding party politics in Utah. Specifically, Elder Marlin K. Jensen noted that the Church leadership did not want the Church to be viewed as a one-party organization. Additionally, he clearly stated that faithful members of the Church can be active members of any political party and attacked the misconception, perhaps spread by the Utah Republican Party, that devout Mormons cannot be Democrats.

In any case, for those who live in Utah and may be interested, the LDS Democrats caucus of the Utah Democratic Party is kicking off their organization in an event on October 1st in Salt Lake City. For more information, visit their website. The Salt Lake Tribune had a nice article today about the LDS Dems caucus.

Taxes and Used Car Dealers

To support their argument against President Obama's calls additional revenue to solve the budget deficit, Republicans have argued that the U.S. has one of the highest corporate tax rates in the world. Democrats, on the other hand, have pointed out that companies and wealthy Americans are paying historically low levels of taxes. Paradoxically, both parties are right. To understand why, you need to think of the U.S. tax code like code like a user car dealership. Sticker prices are usually high at used car dealerships, but hardly anyone ever pays sticker price. The same is true with federal tax rates, especially with corporate taxes. Although the corporate federal tax rate in America is high (too high in my view), most companies take advantage of a plethora of loopholes and deductions that result in a much lower actual corporate tax. The Government Accountability Office released a study in 2008 that revealed 55% of U.S. companies paid no federal income taxes during at least one year in the seven-year period covered by the study. This makes our tax code look like a proverbial block of Swiss cheese, as the wealthiest companies and individuals are able to become savvy at tax avoidance by hiring the best accountants and tax attorneys who can find loopholes. The U.S. corporate tax rate needs to be competitive with the rest of the world. However, most countries do not have the kind of loophole-ridden tax system we have. Simply stated, we can help solve the massive budget deficit by raising revenue while actually lowering the corporate tax rate. This means we need to close the loopholes, end the subsidies (corporate welfare) and make the tax code fairer and the tax environment more predictable for businesses. The current Administration has supported this, but to date, the Tea Party element of the House Republican caucus has opposed anything that would increase the amount of revenue coming into the Treasury. Hopefully saner heads will prevail.

Presidents and Vacation

I meant to post this in August while Congress was on recess and President Obama was on vacation. It's not exactly a timely topic anymore, but I think it still warrants mentioning:

This August was a crazy time for American politics. The debt ceiling debate (or debacle) along with the "compromise" bill where the Democrats essentially gave in to nearly all of the GOP's demands, followed by the stock market's precipitous drop and frightening volatility have resulted in hysteria among some of the political talking heads. One thing that annoyed me a bit was constant criticism of President Obama for taking a vacation after the debt ceiling crisis was finally solved. It seems to me that every time Barack Obama and his family take some vacation time, they are subject to relentless attacks by the right-wing media. Conservative pundits on FOX News and elsewhere assaulted the President for taking vacation during such distressing economic times. Of course after the debt ceiling compromise bill was passed, Congress took a 3-week recess, and there isn't much the President can do about the economy without Congress. Even if the President recalled Congress, everyone should know by now that there is little chance the two parties could come to an agreement on measures to stimulate economic growth and fight unemployment anytime soon.

In hearing all of this criticism of the President and his vacation-taking, I wondered how he compared with his predecessors regarding the amount of vacation days he's taken. Fortunately, there are folks in the media who have nothing better to do than track Presidential vacation days.

CBS Radio's Mark Knoller observed the following in August:

So far, President Obama has taken 61 vacation days after 31 months in office. At this point in their presidencies, George W. Bush had spent 180 days at his ranch where his staff often joined him for meetings. And Ronald Reagan had taken 112 vacation days at his ranch. Among recent presidents, Bill Clinton took the least time off — 28 days.

Would FOX News care to publicize that comparison during their prime time shows?

Where Did All That Debt Come From?

I've intended since the spring to write about our country's current fiscal situation and how we arrived here. For months, Congressional Republicans have been asserting that our federal government does not have a revenue problem, it has a spending problem, and have argued for draconian spending cuts largely aimed at programs that benefit the middle class. And President Obama and many Democrats have largely conceded to the GOP on the issue, allowing them frame the debate about our economic woes as being the result of a large federal debt and ongoing budget deficit. Polling shows that a large majority of Americans blame our country's budget woes on wasteful government spending. However, it is critical to examine our country's fiscal policy during the past decade, to fully understand why our deficit and debt have become so large. The data show that the current budget deficit is primarily the result of 3 factors:

• Significantly decreased federal tax revenue due to the 2001 and 2003 Bush tax cuts for the wealthy;
• The wars in Iraq and Afghanistan, and other post-9/11 defense and security spending, which have added trillions of dollars in new debt;
• And more recently, the financial crisis of 2008 and recession have led to a dramatic decease in the amount of tax revenue coming into the U.S. Treasury (estimated to have increased the debt by $3.6 trillion).