Tuesday, July 26, 2011

How the United States can Raise $311 billion in Revenues

I’ve had it. I’ve had it with this ineffective, corrupt, spineless government threatening to put this entire country into default, to be so reckless and close-minded as to not understand the consequences of not having a viable plan to solve this debt crisis. Where is the creativity? Where are the negotiations? Where are the solutions? Or is it something darker? A political game, where winning is more important than the well-being of this country? Our political system has become so polarized, so petty, so pro-this and anti0that that our leaders forgot how to compromise. Time and time again, they continue to demonstrate that they care about party loyalty, and their own reelections, than for their own country. It’s sad, it’s pathetic, really. If they all actually sat down, put their differences aside, and became innovative, perhaps they would have come to the following conclusions: Heck, if our Congressmen, and our president, cannot get together to make a plan, I’ll just make one for them! So here it is:
First, some background. The United States owes over 1.4 TRILLION dollars. You heard it. This is the money that we owe to other parts of the world, mostly to China. How did we get here? After Bill Clinton left office with a surplus, the Afghanistan and Iraqi War is estimated to cost almost a $2.4 trillion…almost TWICE MORE than our current deficit through 2017. This deficit translates to 141 billion annually, after which if we withdraw from Iraq and Afghanistan completely by 2017, should disappear. We need to fund this, and all of our other programs… we need to have money…and since it doesn’t grow on trees we can’t make more of it (if we do, inflation would make current bills virtually worthless, like pre-Nazi Germany where the Germans burnt paper money because that was cheaper than buying wood.

The first thing that needs to happen is for us to stop providing corporations with loopholes to pay less taxes than they should actually ownown. Currently, using the “Double Irish” and “Double Dutch” methods, companies can allocate their incomes to countries with much lower tax rates, yet attribute the expenses to higher-tax countries, thus getting taxed at much lower rates of pre-tax income thsan in the US. According to Kimberly A. Clausing, an economics professor at Reed College in Portland, Oregon, removing this loophole would allow the US government to collect up to $60 billon annually. Yet the Republicans are opposed to closing this loophole, arguing that this would discourage business ownership in the States. I’m pretty sure that this is bullshit…how exactly can American entrepreneurs start their businesses in countries where most of them don’t even hold citizenship? Once someone starts a business here, make a law that they must remain here and hire a certain percentage of their employees in this country. No corporation in its right mind will ignore one of the biggest economic superpowers, where so many citizens drive up consumption!

While the Republicans are staunchly opposed to closing tax loopholes, at least they have figured out a way to become more efficient. Republican Representative John Mica has recently concluded a report called “Sitting on our Assets”. This report provides some ways that we can cut down on our expenses by selling real estate, selling unnecessary government properties, and not building new buildings when old ones are perfectly functional. The report has some really good insights, which if you want to see for yourself, you can check out here. According to this report, we can save up. Over a 10 year period, this would save about $250 billion…or $25 billion per year. I do wonder why these recommendations have not been implemented…if Republicans are inflexible in finding ways to raise money, the Democrats are as bad at using it inefficientely and spending too much.
Here is a tidbit of information that I bet that you did not know. The US military spends 102 billion annually on foreign bases, NOT INCLUDING those in Afghanistan and Iraq. Why do we even have so many, most in countries that pose no threat to us? Why the hell do we still need military bases in Germany or Japan (OK< perhaps we needed them after the end of WWII, but why now)? Why in Italy, Spain, Cuba, or South Korea? Surely we can train all of our soldiers in the States. Surely the aforementioned countries do not present a threat to American interests. These bases should just be cut…they serve no useful purpose that could be accomplished at home, they do not remove any threats, and they just waste money. It does not make us any stronger militarily, and at a time of crisis, couldn’t we just contract with those countries to use their land as a launching zone for wars, if necessary?

Wanna save even more money? Here’s something controversial, which conservatives will decry. Legalize drugs…all of them! Let’s face it. The war on drugs has failed. It has created an underground of criminals and has turned otherwise harmless, maybe even productivem, citizens into hardened criminals. How many times do we need to learn that prohibition never works? It did not work with alcohol. Anyone who wants to smoke weed or other drugs will find it. Only difference is, they will buy their drugs at a premium, the cost of the dealer’s risk of getting arrested. What if that surplus went to the government instead? Not only could we raise additional revenue, but also save money from the police enforcing drug laws, and instead focusing on more dangerous criminals…you know, the ones who actually pose a danger to our society. According to Harvard economist Jeffrey A. Miron,  legalizing drugs would inject $76.8 billion a year into the U.S. economy — $44.1 billion through savings on law enforcement and at least $32.7 billion in tax revenues from regulated sales. Think about that number for a second. This is the golden opportunity that our nanny government is missing out on to generate additional money.
Here’s another controversial way to significantly raise taxes. Allow the illegal immigrants in this country a path to citizenship….as long as they contribute to this nation’s economy by paying a penalty for entering here illegally. Here is what I would do. First, I would have every illegal immigrant (yes, I refuse to call them “aliens”..they’re human beings, not from Mars!), pay $2,000 for permission to obtain a temporary green card. This would allow them to seek jobs at normal wages (i.e. not below the minimum wages). To fully become eligible for citizenship, these immigrants must then pay $8,000 within 10 years.  Illegal immigrants would take full advantage of this opportunity because then they could not only have higher wages but also live a normal life in the States without fear of getting busted, and be willing to pay for their kids, who could have a future here. Within 10 years, the government revenue raised from this legalization process would be $10 million* $10 grand, or 100 billion in 10 years (average to 10 billion annually). Look these people are here already, an nothing will change that. And yes, I realize that there is a fear of competition for jobs. Stop complaining just get more skills than the illegals…unlike them, you can go to college. After all, we are all immigrants, and many of the oldest generation Americans did not seek any special permission to get into this country; they just went, just like most of the illegals. Besides, more citizens would create  more people to collect taxes from, increase the growth more businesses, it would drive up consumption, and as a result make companies more profitable, which would not only increase their tax contributions but allow them to hire more employees with the extra income.

Oh yeah. Taxes. Republicans are absolutely against tax increases…of any kind. I just don’t get it. Ok, I might see the point that taxing the rich more is unfair, discourages them form working harder, and punishes them for making it. How about some alternative tax methods, then? Would raising taxes by a measly $10m a month be really that bad, if it helps the economy? So you may skip one movie a moth. You may cook once instead of eating out. $10 dollar a month is only $120, after all. Consider this a speeding ticket…without even an effect on insurance. In tough times, sacrifices need to be made.  The government needs to make cuts, and so do we…of we want our standard of living to continue. If each of 310 million Americans has to pay an extra $120, we would raise 37.2 billion dollars.

So let’s sum up. If the country adopted my plan, we could raise an extra 60+25+102+76.8+10+37.2=$311 billion. As I mentioned before, we would also have to spend $141 billion through 2017 on wars in Iraq and Afghanistan, so this additional revenue translates to an extra $170 billion. Assuming that interest will keep growing, it will take us 10 years to pay off our 1.4 trillion debt, as long as we are smart with our money and not borrow any more. There is absolutely no way that we can allow a default. Other than the consequence of the collapse of our economy, this would not allow us to borrow anything and have us lose international respect. If you borrow money from me and you don’t pay me back, I do not respect you as a person and would not want you as my friend. The longer you procrastinate in paying me back, the more I disrespect you. Let’s just hope that the parties know when to stop playing their destructive game of “chicken”…or they will crash head-on at full speed, with the consequence that the United States becomes that guy who cannot pay back a debt!

Thursday, July 14, 2011

Harry Potter…a Review of the Lesson on the Nazi Threat

In honor of the final chapter of the ‘Harry Potter’ books/movies, let me share my two cents about what I believe J.K. Rowling actually attempted to accomplish when she wrote this series. It seems to me that ‘Harry Potter’ exactly mirrors the British fight against Nazi Germany. Voldermort’s supporters are just like the Nazis. Harry Potter’s allies compare to the Brits. Muggles are the Jews and gypsies.  The whole struggle in the book is a lesson to us on how to prevent bigotry, fight evil governments, and be courageous and resilient enough to always stand up for what we know is right…even when it may be difficult or unpopular to do so. Don’t laugh until you fini9sh reading this whole blog! Just hear me out.
Let’s begin with Voldermort himself, whom J.K. Rowling created out of Hitler’s likeness. There is ample evidence for this. First of all, Hitler may have been a quarter Jewish; Voldermont was a mud-blood, half wizard but half Muggle. Of course, none of their followers knew about this. Nevertheless, Hitler wanted to kill all Jews with at least one Jewish grandparent; Voldermort wanted to kill every Muggle or half-Muggle. Hitler despised Jews, gypsies, homosexuals, Communists, and many others; Voldermort despised Muggles, Mudbloods, and ideological opponents. Thus, it is quite ironic that both Hitler and Voldermort both had a ‘superior race’, which they technically did not even belong in, yet were so hell-bent on exterminating ‘inferior’ races. The similarities are just beginning, however. Both Hitler and Voldermort were highly intelligent men; Hitler was superior at giving stirring speeches, while Voldermort was one of the most deadly powerful wizards ever; in both cases, their talents helped them to attract followers. The similarities get even eerier, however. Hitler was called the “Fuhrer”; Voldermort, “The Dark Lord”.  Hitler wanted to conquer the world, or at the very least, Europe; Voldermort, the most powerful wand in the world.
It isn’t just Hitler and Voldermort who share many parallels, however; their supporters do, too. Just as the Nazis wanted to “please” the fuhrer (by winning sporting events, looking “Aryan”, making healthy babies, gleefully responding to his speeches, etc,) Voldermort’s supporters went out of their way to “please” their ‘Dark Lord’,…by giving him their wands, their sons or friends, or even offering to capture or kill Harry Potter. The Nazis actively harassed, and even killed, Jews and other victims, even before the Holocaust, as did Voldermort’s supporters with Muggles. The brutal Brownshirts, who terrorized their opponents, are equivalent to the Death Eaters, who randomly committed atrocities against their victims for fun. Finally, the Nazis tortured people  in horrible medical experiments; sometimes, like in Babi Yar, they just shot them on the spot.  Voldermort’s pals  too tortured people who disagreed with them, inventing painful murdering techniques, both parties killed and opponents for sport
As if these similarities were not enough, J.K. Rowling brilliantly compares the governments under both dictators. Under the Nazi regime, the whole education process was completely “reformed”. Certain books were banned. Teachers were scrutinized to toe the party line. Likewise, after Harry Potter and his friends left Hogwarts, and Dumbledore died, a “reeducation” process took place there. Professors, like those who taught “Muggle Studies”, were removed and even killed. Each professor had to be “reevaluated”, to make sure that the lectures were censored enough to fit neatly into the propaganda. Furthermore, In the Nazi regime, people who weren’t technically Jews, and  just had even a single Jewish grandparent, or political opponents, were brought to courts, and usually rounded up and sent to the concentration camps. When Harry Potter and his friends sneak into the Ministry Department, they see witches and wizards who are accused of not being real witches and wizards being dragged into court. These unfortunate victims are given staged, pre-determined trials, with no chance to even defend themselves . Once their victims were in the concentration camps, the Nazis were notorious for inscribing tattoos onto the arms of their concentration camp prisoners. Likewise, in one of the books/movies, Hermione, when captured by the Malfoys, has the inscription “Mudblood” on her arm.
Interestingly, the bad guys are not the only ones who are mirrored…the Brits’ various forms of resistance closely parallel those of the enemies of Voldermort. First, just as the Allies naively did not believe, or refused believe, what Hitler was capable of before World War II, choosing instead to ignore or appease him, most anti-Voldermort witches and wizards, too, dismissed a resurrection of Voldermont as impossible, continually saying how it is impossible for him to regain power, even refusing to mention his name(He-who-must not-be named). However, the leaders, who would soon become central figures in the fight against evil, called the bluff of their future enemies immediately. Just as Wisnton Churchill saw Hitler’s dangerousness before anyone else dared to believe it, so did Dumbledore. Much like Churchill, Dumbledore gently prepared allies for the upcoming battle to get the world rid of an evil man by taking the appropriate precautions, without rushing to panic anyone. The facts of Britain’s battle against the Nazis and Harry Potter’s against Voldermort are closely related even during the conflict. For example, during the Holocaust, many people believed that reports about concentration camps were “exaggerated” by the Allies (just as they had been during WWI). Few people, too, believed Harry Potter’s first-hand accounts about his sightings of Voldermort and his allies, choosing instead to believe that he was merely exaggerating. In both cases, an evil tyrant was given time to become even more powerful, while numerous opportunities to stop him were naively ignored by the overwhelming majority of the unsuspecting public.
So what is the point of all of these parallels? Hitler was allowed to stay in power for too long, and as a consequence unleashed the Holocaust and a war, killing millions of people and wreaking much havoc.. J.K. Rowling clearly sent the message that people like Hitler need to be stopped BEFORE they can do too much damage. In the final book, after much suffering and fighting, Voldermort is finally defeated. No doubt that, like Hitler, the longer he had been untouched, the more powerful he would have become. Just as with Hitler, If Voldermort had won, the consequences would have been disastrous. Just as if the Nazis controlled the world, there would probably have been no Jews, gypsies, Communists, or homosexuals, Muggles and Mudbloods would be dying all over the place if Voldermort ruled the wizarding world. ‘The Final Solution to the Jewish Problem’ might as well be ‘The Final Solution to the ‘Muggle’ problem’!
J.K. Rowling is a fucking genius. From the very first book, knew we exactly what she was doing. First, she hooked pre-teen kids into Harry Potter through magic and lasting friendships and cool adventures of the protagonists. Then as these same kids got older, she gently and slowly exposed us to the evils in this world…the intolerance, the bigotry, the censorship, the propaganda…as well as the good….courage, friendship, loyalty, resilience, perseverance.
In reality, she was pleading with the future (kids) to take all necessary steps to avoid another Hitler. As we grew up and became first teenagers, and now adults, the books became more and more serious, the battles more and more important, Voldermort’s forces much more powerful and much more dangerous. As kids we were naïve about Voldermort’s power…just like our grandparents were naïve about Hitler during the 1920s and 1930s, but as we grew up, as Voldermort became more powerful, as more crimes against humanity began happening, we began waking up and we began understanding exactly how much danger we were really in…just like the Brits during World War II. In a way, J.K. Rowling, a Brit, is bragging about how her country stood up to evil, after almost succumbing to it due to its early naivety.

J.K. Rowling chose a brilliant and effective method to illustrate the evils of intolerance effective because Jew or Muslim, black or white, Communist or neo-Nazi, no matter which nationality, race, or religion, we all became one…Muggles…the victims of genocide by Voldermort’s plans. Our Muggle status allows us to sympathize and defend the victim because we ARE that very victim. making all of us the despised minority (as Muggles), J.K. Rowling is showing us how wrong and unfair it is to be racist, how unbridled xenophobia can ruin the world, and how we must stand up to these bigots, monitor their whereabouts and plans, and, if necessary, remove them in order to prevent them from harming society and to insure that “never again” will bigotry and hatred turn into something as ugly as genocide.

There are so many maniacs out there, and the scariest part is, we don’t even know how dangerous each of them is. But when and if we do find out, we must not hesitate to take those tyrants out, before they destroy the world.  J.K. Rowling wanted to send a clear message to the world, and especially to kids that dangerous men need to be stopped at all costs, before they could do damage. “Never again” must we allow another Hitler to rise again.. To do so, she compared the rise of Hitler to that of Voldermort, the responses of others, and how stopping Hitler of Voldermort before they could do more damage should have been the number one focus and priority.