A miscellany of book reviews, rambles, opinions and outright lies
This book grabbed me in its first paragraph and held me until its end. The plot is intricate and anchored by two actual historical events. I won't spill any spoilers. If you want to know how respectable Dr. Peter Blood becomes a notorious pirate, or how love restrains bloodstained hands, you'll have to read the book.
Corporate tax rates fluctuate as well. From 1946 through 1949 corporate profits were taxed at a maximum rate of 53 percent. This rate applied to profits over $25,000 and under $50,ooo. The rate fell to 38 percent on profits over $50,000.
Between 1993 and 2017 the highest corporate tax rate was 39 percent on profits between $100,000 and $335,000. Above that amount, the rate dropped to 34 or 35 percent on profits below 15 million dollars. Between 15 and 18.33 million dollars profit the rate returned to 38 percent, before falling back to a top rate of 35 percent. Progressive tax rates increase as income grows, while regressive taxes take a larger bite of income from those with smaller incomes. This period’s tax rates are generally progressive, but don’t entirely follow a straight progressive increase.
The 2017 Tax Cuts and Jobs Act (TCJA) sets a flat tax of 21 percent on corporate profits. Flat taxes are usually considered to be regressive. Large corporations must love TCJA since it forces smaller ones to pay 21 percent instead of 15 percent on their first $50,000 in profits.
During its history, the United States has held debt at various times, but in 2001, it held a surplus. That didn’t last long. Today the national debt is an enormous three trillion dollars. Higher taxes can lower a nation’s debt. The rationale behind TCJA was that lower taxes would pay for themselves by growing the economy. Did it work? The economy did grow a bit, but not as much as predicted. Our nation’s high deficit grew instead of decreased as predicted. According to the Economic Policy Institute, TCJA “did not increase wages for working people, failed to spur business investments, decreased corporate tax revenues, and boosted stock buybacks in its wake.” No surprise here — taxes are paid on profits taken after employees are paid and R&D costs accounted for. There was never any logic to its boosters’ claim that TCJA would increase business investment and benefit workers. Who lobbied for this lie? The usual suspects, including among others, the Business Roundtable, the U.S. Chamber of Commerce, and the National Association of Manufacturers. These same organizations plan to lobby against the 3.5 trillion dollar economic plan.
If that economic plan isn’t implemented, there could be a long wait before climate change is meaningfully addressed. The poor also suffer when the wealthy don’t pay their fair share. During the mid-twentieth century when taxes were high the middle class was broader and more affluent than today. Taxing wealth to repair the climate would also benefit the bottom 90 percent of U.S. citizens. Speak loudly Citizen and shame the greedy into social responsibility.
Members of the U.S. Chamber of Commerce may, or may not, believe in climate change, but they certainly believe that protecting profits from taxation is more important than doing their share to address it. Joining the Chamber in its defense of greed are the Business Roundtable, and PhRMA which doesn’t want the government meddling in drug pricing.
The National Association of Manufacturers is also involved in a lobbying effort. Its senior vice president, Aric Newhouse, said that if the economic plan passes, “manufacturing families will suffer, jobs will be lost.” He’s lying. Profits are taken after employees have been paid, not before. A tax on profits has no effect on labor costs. Who really will suffer? Stockholders, because they receive their dividends after all taxes have been paid. Only the wealthiest Americans have significant stock holdings — they can afford to pay higher taxes, but spend millions to avoid doing so. According to Statista, the top 10 percent of Americans hold 70 percent of the nations’ wealth. Many of the other 90 percent of Americans are but a paycheck removed from homelessness. After seeing this summer’s hurricanes and wildfires, it’s obvious that climate change is coming for us all. It won’t spare the wealthy, even if they believe their money will cushion its blows.
Similar lobbying tactics were used to pass the 2017 Tax Cut and Jobs Act (TCJA). The name itself is a lie. The act failed to create the jobs it promised. According to the Brookings Institute:
"Overall, the TCJA's advocates promised many supply-side benefits and promised they would materialize quickly. But at least for the first two years, the Act failed to deliver its promises on investment and growth, leaving the country instead with higher deficits and a less equal distribution of after-tax income."
Gentle reader, consider speaking or writing the idolaters whose Mammon worship blinds them to the catastrophes to come. Here’s some contact information to get you started:
National Association of ManufacturersYour company is a member of the U. S Chamber of Commerce which plans to lobby against corporate tax increases slated to be used in fighting climate change. Money can wait, but the climate can't. Stop being so greedy and pay your fair share.Citi
It is difficult to review what one doesn't fully understand. Which isn't to say that I was totally baffled by these two books from these three authors. Their descriptions of socioeconomic problems made perfect sense to me. It was their solutions that baffled me.
"Radical Markets" looks at capitalism in a radical way, starting with the premise that property is monopoly. While their solutions are sometimes over-explained, they none-the-less failed to convince me. That may be due to my inadequate understanding of economics, or perhaps I've correctly intuited that something is missing in their solutions.
Regardless, the ideas are certainly worth reading. One in particular was splendid. It's called quadradic voting, and it works like this: let's say you have a number of vote credits and you can spend them across a number of issues. To vote once on an issue costs one vote credit, to vote twice costs four credits, and voting three times costs nine. If you really cared about an issue, you could vote four times, spending sixteen vote credits. The more you care, the more it costs you. This might be a good way to decide certain popular issues. We live in times where manipulating complex math is easy. There are all kinds of new solutions we could try.
The authors also discuss the idea of treating data as currency, giving credit for this idea to Jaron Lanier. The idea evolved as a solution to what Lanier calls "Siren Servers." I feel the same ambivalence toward Lanier's solutions as I do to those of the other authors. Lanier's label, "Siren Servers", refers to technology companies that make their money by mining other people's content or data. According to Lanier, people should be paid for the demographic data they provide to those who mine it for marketing products or gaining or suppressing potential votes. Sadly, in the United States a great deal of money is spent persuading voters to embrace policies that harm them while enriching those who already have too much. Paying people for their demographic data won't fix this problem. Limiting how much Political Action Committees can spend would do greater good.
I'm not sure Lanier's solution is workable, but I'm completely sure that Siren Servers are an engine of income inequality. Once software is written, only maintenance costs remain. Siren Servers don't require factories full of workers. Only a few, very well paid, employees are needed. Since there are only a handful of Siren Servers, there is little competition to limit price. Apple can charge an app maker 30 percent for a sale in its app store because no competitor charges less. It may not seem like much, but 30 percent of retail price is a strain for both the app maker and the app consumer. On the unregulated internet, price gouging is business as usual. In its earliest days the internet was used to share government and academic information. As the World Wide Web gained popularity, this information source was commodified. Going forward, the internet needs to be more like a library and less a device for monopolist rent collectors.
Every city has its secrets and Denver is no exception. Among Denver’s secrets are its miles and miles of trails shared by cycling, walking, rollerblading, and riding urban adventurers. Of course, not every trail is suitable for every conveyance—horses aren’t permitted in some places and rollerblades will suffer on unpaved portions—but all in all, there’s plenty for everyone, especially those who travel on foot.
Suppose you’re attending a convention in the mile high city. Day’s business done, adventure calls. You leave the Colorado Convention Center, cross Speer Boulevard, descend a few stairs, and you’re there. You’re now on the Cherry Creek Trail. Should you head southeast, you’ll pass through some of Denver’s older and more affluent neighborhoods. If you go all the way to the end of the trail, you’ll have travelled about thirty-nine miles. But by then you’ll be in Franktown, not Denver.
Heading northwest instead, you’ll soon arrive at Confluence Park where Cherry Creek meets up with the South Platt River. Heading north along the Platt you can go as far as 104th Avenue before the trail develops discontinuous portions. Heading south, the trail system will take you as far as Chatfield State Park. Trying to go this distance on foot isn’t quite practical. But, a bicycle can take you there if you’re fit and have the time.
The Bear Creek Greenbelt is a personal favorite. It runs from the South Platt River Trail through several parks, including Bear Creek Lake Park, and ends in Morrison. Bear Creek hosts a variety of water fowl. I once saw a night heron while cycling that path. I’d never seen one before and wondered what a penguin was doing that far north. (Since writing this in 2008, I've also seen a Malayan Night Heron, though in Taipei, not Denver.)
