Category: Companies

To prepare for this pandemic, our liberal and conservative leaders failed us

To prepare for this pandemic, our liberal and conservative leaders failed us

A lot of liberals won’t like this post. Please don’t read it if you are a liberal because you will get mad. It hurts when facts smack you in the face, so you should avoid doing that. This article points out that liberals completely failed to help the US prepare for a pandemic.

To be fair, conservatives shouldn’t read this post either because that same brick wall of facts is going to hit you in the face as well. Don’t read it as conservatives haven’t prioritized preparing for a pandemic either.

This is an article from 2009. It is from NPR, so no one is going to say it right-wing bias. Conservatives will say that it is MSM, but the facts on the ground have proven this article to be very accurate. 

Here is another article by Sheri Fink that covers the various studies in 2006-2009 about how woefully prepared the US is in handling a pandemic.

In 2007 and 2006, the country did studies that showed that during a pandemic, NYC would be short 15,000 ventilators, and 150K people could die. Sound familiar? There were probably studies since the publication of these articles. So did Bush or Obama do anything? Not much, and I will suggest they did zero. Trump didn’t come into office with any insight and initiative to fix this known problem, so he is just as guilty as Bush and Obama.

There has been a total lack of leadership by Bush, Obama, and Trump on this issue.

And Governor Cuomo? Nope. He didn’t fight for it either—more lack of leadership.

And neither did Pelosi, Reid, McConnell, Ryan, Boehner, Schumer, or any other leader of our Congress. A complete lack of leadership for a situation that everyone knew would eventually happen.

BTW, the current candidates for POTUS in 2020: Biden, Sanders, and Trump – nope. None of them did anything when they were in positions that could have influenced this.

All of our government leaders failed us on both sides of the aisle. They taxed the hell out of us. They whined and complained about other stupid shit. They gave incentives for solar energy, oil production, buying stuff on the internet, buying health insurance, fighting bad guys in Afghanistan, or Iraq, or Syria. But prepare the country for a pandemic? Nope. 

They all said, “Hopefully, that pandemic will happen when I am not in office, and the next person can worry about that.” Guess what, we are the next person. We are now worrying about it, and our bickering Federal government messed up big time.

The Federal government is really only good at two things

  1. the infrastructure that hundreds of thousands or millions of people rely on
  2. the defense of our country and people.

To be honest, the government isn’t all that good at those two things, but it is the only entity that can do them. The government shouldn’t be doing other things. It should focus on doing those two things and do them as well as possible, giving the inefficiencies of an organization that has no competition.

It is woefully incapable of doing anything else well. In just about every case other than the two cited, private industry that competes with others will do a better job. Will the private sector screw something up? Absolutely! But then that private enterprise will be displaced by a competitor that will perform better. 

Pandemic relief falls into both categories. It is the defense of our people, and it is the infrastructure to support that defense. We did both poorly for pandemic relief, and it is now costing us dearly.

What is the solution? Throw the bums out. Every damn one of them. They failed us. They screwed up. They should be rewarded with losing their jobs.

We need politicians that are focused on just doing the two things that only the federal government can do. We need politicians to look at a bill and say, “Is this something that ONLY the federal government can do and therefore is in the above two categories?” If the answer to that question is NO, then the politicians need to vote it down. If the answer to that question is YES, then the politicians need to approve it and give it the appropriate funding and oversight that it is done as well as possible.

Header Photo by Parentingupstream (Pixabay)
Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe

Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe

I am done with Nike.

Colin Kaepernic was a so-so football player that was close to the end of his career. He wasn’t even good enough to get a job as an ESPN analyst. He maintained his relevance to some American consumers by inspiring contempt for America’s symbols. His original protests were supposed to be about police violence but now he seems to be branching into other forms of outrage – whatever will get his name in print, it seems.

I think everyone that hates America’s symbols just because they are old should buy Nike products and everyone else that loves America and understands that we have never been a perfect country but we sure have been better than the majority of countries in the last 250 years should not buy Nike products.

Good job to Governor Ducey for drawing a line in the desert sand.

Source: Arizona Governor Withdraws Incentives After Nike Pulls Flag Shoe – Bloomberg

Many Politicians Are Two-Faced When It Comes To Tariffs

Many Politicians Are Two-Faced When It Comes To Tariffs

As I write this, POTUS Donald Trump is pledging to begin tariffs on Mexico for its accused lack of assistance in the immigration crisis on the southern border of the US. Here is a quick news account from Politico:

The White House pledged on Thursday to charge ahead on tariffs on Mexico, saying the U.S. position “has not changed” after officials met for a second day to address the steady flow of Central American migrants trying to enter the United States.

Talks between Mexican and U.S. officials at the White House wrapped up without resolution. Several key officials in the administration were unavailable for negotiations. President Donald Trump was in France for the 75th anniversary of the D-Day invasion, and both Vice President Mike Pence and Secretary of State Mike Pompeo were on the road.

Just about every politician is talking out of both sides of their mouth on this issue. This includes a good portion of the Republicans (especially Mr. Trump) and nearly ever Democrat that I can think of.

To be crystal clear, I despise the use of tariffs against another country. I don’t like taxes in general and using taxes as weapon (i.e. tariffs) is simply a bad practice.

Tariffs are taxes. Plain and simple. They are taxes on corporations that import from the punished country, which in this case is Mexico.

The problem with tariffs and corporate taxes is that corporations never pay taxes. They incur costs. They pass those taxes as costs on to their customers in the form of higher prices for the product. They think of taxes as the same as wages, costs of materials, rent on their buildings, etc. It is a separate line item on their financial sheet, but it is deducted from their income the same way when calculating earnings.

It isn’t the corporation that pays the taxes, it is the consumer. Worse, the tax is regressive in that it is applied to all consumers of the product regardless of their ability to afford to pay or their income. Nearly everyone agrees that regressive taxes that take a larger percentage of poor people’s income than the percentage of wealthy people is unfair. But corporate taxes and tariffs are exactly that – a regressive tax on poor people.

Trump and most Republicans want lower corporate taxes. This, in general, is a good thing because as I said above, corporations don’t pay taxes – they only incur costs that are passed to their consumers. Corporate taxes are an evil and regressive tax against consumers.

So it is illegitimate for Trump and these anti-corporate tax Republicans to support the tariff on Mexico (and probably on China, but China is a different problem).

Democrat readers shouldn’t get too excited about the above paragraph, as they are actually worse.

Most of the leaders of the Democrat party are in favor of raising corporate taxes. This is a terrible stance since, as I stated above, corporate taxes are simply a regressive tax against the poor. The Democrats are supposed to be the party of the poor worker and yet they support regressively taxing those people. That is incredibly evil and insincere. They only do it because it plays well in political speeches. Democrats don’t really want to help poor people, they just want to be re-elected (which is also the goal of Republicans). They are willing to be for a tax that hurts their constituents rather than be truthful and lead those constituents. This is unbelievably cruel and ruthless.

But then Democrats become even more two-faced. Because they hate Trump so much they oppose the Mexican tariff. This is ridiculous if they were ideologically pure since tariffs (while very bad IMO) are simply what most Democrats espouse – higher corporate taxes.

So what does all of that mean?

Unfortunately, it is simple. Both parties are mostly evil and don’t want to help Americans. They are willing to lie and mislead their constituents simply to retain their individual jobs. The only valid option as voters is to THROW THE BUMS OUT! EVERY LAST SITTING FEDERAL POLITICIAN NEEDS TO LOSE THEIR JOB IN THEIR NEXT ELECTION!

A tax plan that would promote economic growth

A tax plan that would promote economic growth

Both halves of Congress are trying to create a more fair tax plan that will promote growth and simplify the code. I am skeptical that anything will get done though as it appears that this Congress is incapable of doing anything significant.

Since Congress will almost certainly fail, I thought I would put my suggestion on the table. As I analyze it, it is probably the most likely plan that I have ever seen to encourage employment growth.

The first step is to not change anything for individuals except to increase the amount of money saved in long-term savings without tax penalty. This should be doubled from its present rate. The government is in the retirement business, and it isn’t doing a sufficient job of managing it. The government needs to get out of the retirement business because the government can rarely do something well. Social Security is a broken plan, and we all know it – we just need to transition out of the retirement business slowly so that we do not screw up the American workers that depend on Social Security.

Currently, the government taxes employees directly via the FICA tax on each dollar earned. The government increases this tax by assessing the employer an equal amount. This direct tax exceeds 15% and is used to fund Social Security. While it is essential to finance Social Security for today’s seniors, we need to get away from this transfer of cash from working Americans to retired Americans. We need to make it financially affordable for working Americans to save for retirement so that they can live off of their own money and not their children’s and grandchildren’s money. The fact that Social Security will be insolvent between 2025 and 2034 (depending on analyst assumptions) points to the fact that the system is systematically flawed. I have ranted on this in the past.

The biggest change in the tax plan is to change the way we tax our employers. Not just big companies but every employer – be they big or small. We need to reward companies for investing in their business and investing in their employees.

Currently, the corporate tax rate is around 35%. This tax burden is massive. Unfortunately, it is unevenly allocated and most directly hurts companies based in the US, primarily employs US workers, and principally sells to US customers. This is preposterous! Why is the federal government trying to hurt the best companies, but reward those companies that have substantial foreign investments?

My suggestion is to eliminate all tax loopholes in the corporate plan except for the ones that I itemize here. Yes, that means that Congress will never go along with me since every special interest lobbyist will argue and bribe vehemently to fight my simple and easy ideas. Here are the highlights of the plan:

  • Corporate income tax is 35% for all income.
  • Income taxed in a foreign country returned to the US corporate parent is the difference between the original tax paid and 35%. This balance of tax is still available for the following discounts (as well as all US based income).
  • For every dollar that is paid to train employees plus one additional dollar, there is no US corporate tax. Corporations should be encouraged to train their employees so that money shouldn’t be taxed and additionally they should be rewarded by claiming 200% of that investment up to 35% of corporate income. This reduction in taxes is good for the company, great for the employees, and magnificent for the US economy. In the 21st century, only smart workers are valuable, and we need to increase that pool of people.
  • Today, wages and benefits to employees are already written off and not counted toward income. This expense will remain the same (as with all business expenses) however if the employer hires more workers in the US and its territories from the previous year then the company should be rewarded. The company will be able to write off that new employee’s wages plus an additional 300% up to 35% of corporate income. Please note that this is ONLY for the growth of full-time employees from the previous year to the current year. The employer doesn’t get to deduct this cost for perpetuity but only for the first year. Also, note that this doesn’t allow the employer to increase foreign-based workers, the workers have to be reporting to work in the US and its territories.
  • Any improvements in facilities are already written off, and that will continue. However, this will be accelerated in my plan as the company can write off 200% of all INCREASES in facilities, marketing costs, sales costs, etc. as long as they are spent in the US and up to the 35% cap that already exists. They will be able to write this off in the year that the expense occurs. Note that this is only for increases in those costs over the previous year. If the company doesn’t grow those costs, then it is simply held at the standard 35% deduction, but if the company increases those investments in US-based assets, then the company can accelerate those year-over-year savings.

So how is this good for the US economy and the US worker? Simple, it is all about the economic growth, the growth of employment, and improving the lives of US workers. Companies that are unable to grow their business will not get this benefit, but companies that can employ more US-based people, create more US assets, and improve their ability to market to US-based customers will thrive. It puts America first in our corporate tax policy. It rewards companies that invest in America and it doesn’t help any company that chooses to invest internationally at the expense of America.

This plan will accelerate the return of money from foreign lands back to the US. This plan will encourage companies to hire more US-based workers and will significantly increase the quality of life of Americans.

This isn’t a giveaway to the corporations or a supply-side “hope for the trickle-down plan.” It only rewards companies that truly make the trickle-down (in the form of a gusher rather than a trickle) happen. No company will be able to take advantage of this plan unless they truly change that “trickle” to a firehose of economic prosperity.

This plan will never pass. Too many lobbyists will be hurt. Too many special interest groups will not have their interest served. However, this is one plan that would almost guarantee massive prosperity for the American middle class and therefore massively increased tax revenue for the Federal government.

It just makes sense which is why it will never be adopted by Congress. Simple things that make sense never seem to get done by Washington DC.

Photo by 401(K) 2013

Southwest To End Overbooking on Flights By June

Southwest To End Overbooking on Flights By June

 

I really enjoy Southwest airlines service. It is not overly convenient for me as they have a limited presence in airports under an hour from me, but I have been known to drive 90-100 miles to use Southwest.

A little-known fact about Southwest is that if you have a high seating number within the C list, you are at risk of not getting a seat at all. If the flight is overbooked, then all of the seats will be full when you get to the plane and the gate agent won’t let you on to the plane.

I never fly Southwest without paying the slightly higher cost of Early Bird seating. This will typically get you place in line in the mid-to-high A list, or in a really popular flight, a low B number.

Southwest Airlines said it would end overselling of seats on its flights by the end of June, accelerating the move in the wake of the furor surrounding efforts to remove a United Airlines flier earlier this month.

Airlines typically sell more seats than an aircraft’s capacity because of no-shows, though Southwest’s focus on airport-to-airport flying means it is less exposed to delayed connecting passengers compared with carriers such as United Continental Holdings Inc. that operate big hubs.

Southwest typically oversells just one seat on a jet carrying 143 passengers and expects a “fairly small” revenue impact that would be counteracted by a drop in costs from lower compensation payments.

But Southwest required almost 15,000 passengers to give up their seats involuntarily last year—more than the combined total of United, American Airlines Group Inc., and Delta Air Lines Inc. Some 80% of the Southwest total was caused by overselling, with the balance to make way for airline crew, said executives on a quarterly earnings’ call Thursday.

Source: Southwest To End Overbooking on Flights By June

GE’s Immelt: U.S. retreat from ExIm, trade will cost jobs, influence

GE’s Immelt: U.S. retreat from ExIm, trade will cost jobs, influence

When will Americans learn that in today’s globally connected world corporations have a choice where they make a product or service. It is up to our Federal government to compete for jobs just like our state governors and city mayors have been competing for decades.

President Barack Obama’s plans for a pan-Pacific free trade zone have stalled after Democrats defeated a key portion of legislation aimed at speeding negotiations.

“In two weeks the U.S. will have neither trade deals, nor an export bank. And at that point we’re going to be in full retreat on the global economic stage,” Immelt said.

Without Ex-Im, major export deals will be lost to China, Japan and Europe, where there is aggressive government support for exports, he said. Since GE does not want to lose that business, it will move production to countries where it can take advantage of export credit agency support.

“Good GE jobs in the United States will be moved to Canada and Europe. That’s a mighty high price to pay for ideological purity,” Immelt said.

Source: GE’s Immelt: U.S. retreat from ExIm, trade will cost jobs, influence