Our Problems

If you are a delegate to the Democratic National Convention, then I think it is obligatory to bite the bullet, as it were, in that you made an election to a polity, and the idea that one can take one’s ball and leave if the game is not going your way is the kind of juvenile thinking that produces dismissal of millennials as callow.

Having said that, attempts at ridiculing those who are committed to reversing the decay that has resulted in the sorry parade of establishment hacks that now passes for the Democratic Party will serve little purpose save to fan the flames that should consume those intent on coronation. Old sour-pusses decrying as anathema the progeny of a pied piper intoning a tune perhaps forgotten by too many.

Their candidate is NOT as important as their children, our children, for children are always tomorrow, while the candidate will at some point be swallowed up like Ozymandias. So many were heard to snicker at Corey Booker’s comments as he appeared so oblivious to the fact that everything he decried was in fact nested so very close…Screen Shot 2016-07-26 at 9.21.56 AM

Poor grace is a sorry example to offer the tantrumming youth of how to share power. The Old Guard wants to celebrate their victory by eating their offspring. The Romans, ever an example to our propounding pops, would only inquire, being invited to the circus, “Where’s the bread”? The convention has become circus, as opposed to a place of business. It might serve the needs of Republicans, but it has become incredibly tedious for the rational.

Yes, I AM an old fart, and yes, millennials DO give me heartburn. But I know we need these people to turn the corner, and holding a coronation when 40% of your delegates would like nothing more than to burn your candidate at the stake is perhaps not the best way to proceed. Yes, some might think it “thoughtful” that a herring was tossed to the barkers from time to time (Diane Russell was magnificent, and Michelle, Elizabeth and Bernie had great speeches) but one could barely kindle a “unity” spark when someone stepped up to remind one and all that this was not about policy, it was a coronation.

Maybe it was as simple as forgetting that the nomination had yet to take place. Maybe it was the unaddressed hubris of those who, albeit without Debbie, continued to continue. So while I am going to urge Dem delegates to stay the course, I also want to suggest that Dems should start looking to primary a standing President in 2020. Hopefully, thanks to Senator Sanders, the party, as in Alaska, is changing course. There are many who have no problem with leaving behind those, enamored of neoliberalism, who choose to abandon ship.

HillHooey, and Not Innovative at That

Having seen the fanfare, perhaps it’s best if we have a look at under the hood at what little Clinton has actually published regarding her latest “bold” attempt to “help” the college student. For example:

A smaller proportion of millennials today are starting new ventures as compared to their predecessors.[12] This is not for a lack of desire—more than half of America’s millennials say they want to start a business—but barriers like student debt and a lack of access to credit are holding young people back.[13] Hillary is committed to breaking down barriers and leveling the playing field for entrepreneurs and innovators who are launching their own start-ups. Hillary will allow entrepreneurs to put their federal student loans into a special status while they get their new ventures off the ground. For millions of young Americans, this would mean deferment from having to make any payments on their student loans for up to three years—zero interest and zero principal—as they work through the critical start-up phase of new enterprises. Hillary will explore a similar deferment incentive not just to founders of enterprises, but to early joiners – such as the first 10 or 20 employees. Additionally, for young innovators who decide to launch either new businesses that operate in distressed communities, or social enterprises that provide measurable social impact and benefit, she will offer forgiveness of up to $17,500 of their student loans after five years. https://www.hillaryclinton.com/briefing/factsheets/2016/06/27/hillary-clintons-initiative-on-technology-innovation/

In fact, most federal student borrowers are already eligible for income based payments, minimal payments are always preferable collection-wise to deferment, and the plan is for a deferment of payment, not a suspension of accrual of interest. Moreover, such a plan does nothing to assist in capitalizing any business, especially as the loans render the borrower (and likely his family) unable to borrow any further funding.

Can I run a lemonade stand and get a 1/10 of the cost of my Bachelor’s degree forgiven? That would be a great question, but you won’t find any answers from the candidate, because the whole scheme is largely just lemon meringue pie (I won’t say “in the sky” because there is nothing really grand or elevating about the comments).

I think most “innovative” and “entrepreneurial” business initiative is simply cannibalistic, as I suggest above, much like the finance sector really does NOT increase our domestic production. The mass of Americans can’t do Algebra, their core problem being the inability moldy-peachesto understand use of symbols, which would likewise preclude them from becoming effective programmers. We don’t need high tech jobs… we need jobs sweeping streets, and growing food. We need more doctors and engineers. We need more manufacturing jobs.

We are well on our way to the future that H. G. Wells described.  Fruit, anyone?

I Be Reading Plenty Good

The apparent hallmark of the proud and the stupid with respect to the 2nd Amendment is the flashing of the plaque displayed here (together with the typically associated hashtags).

Screen Shot 2016-06-23 at 11.02.04 AMOf course, Washington never said that.  What he did say was:

Among the many interesting objects, which will engage your attention, that of providing for the common defence will merit particular regard. To be prepared for war is one of the most effectual means of preserving peace.

A free people ought not only to be armed but disciplined; to which end a Uniform and well digested plan is requisite: And their safety and interest require that they should promote such manufactories, as tend to render them independent on others, for essential, particularly for military supplies.

The proper establishment of the Troops which may be deemed indispensible, will be entitled to mature consideration. In the arrangements which may be made respecting it, it will be of importance to conciliate the comfortable support of the Officers and Soldiers with a due regard to œconomy.

There was reason to hope, that the pacific measures adopted with regard to certain hostile tribes of Indians would have relieved the inhabitants of our Southern and Western frontiers from their depredations. But you will percieve, from the information contained in the papers, which I shall direct to be laid before you (comprehending a communication from the Commonwealth of Virginia) that we ought to be prepared to afford protection to those parts of the Union; and, if necessary, to punish aggressors.

As a nouveau aristocrat, Washington despised the useless rabble, and useless was largely what the rabble was, which is in no small way the reason why Washington insisted on a regular army (consistent with the provisions of Article I Section 8 of the Constitution).

Perhaps the 2nd Amendment whiner who argued “There you go liberals. In case you forgot how to read. ‪#‎reformthesenutz ‪#‎merica” with respect to such plaques should have a look at the Common Core provisions regarding close reading and critical thinking…


From George Washington to the United States Senate and House of Representatives, 8 January 1790 – http://founders.archives.gov/documents/Washington/05-04-02-0361

The State Militant; militia in the 21st century https://opinion.alaskapolicy.net/pardonme/?p=109

Pookas on Patrol

No Virginia, there is no such thing as a “citizen soldier” OR Santa Claus. Screen Shot 2016-06-15 at 11.37.14 AM

In this country it you want to take part in any hostilities you must be a member of a unit of the Guard, the Reserves, or the regular services.  That’s the way it is now, and truth be told that is the way it has been since the get go. Unfortunately, the delusional Rockwellian right, always keen to rewrite history, has embarked on a propaganda campaign that now argues that the U. S. is alive and well because of these fictitious citizen soldiers, persons who engage in some voluntary and undefined association to violently repel threats to the policy; some anarchic defense force.

I am aware of two recent instances where the term has been used and in each it was specifically defined as something OTHER than as the term has now been bandied about by 2nd Amendment Crusaders.   One refers to those who were drafted, in that their primary societal role was not soldier.  The other is in reference to those whose duty does not require them to be in uniform all the time, as in the case of the Reserves and the Guard.

The concept of people just showing up to shoot at stuff and then wandering away has never existed in the US or in the British commonwealth. One reason for that, of course, is that people lived close to starvation, and you just could not leave what you were doing without being able to cover what would not get done, so people joined for a specific period, and expected to get fed, clothed, armed (shot and ball), AND paid. Whether you took the King’s shilling or enlisted with the Continental Army, once “in”, you were subject to military discipline and your term of enlistment. Of course, another important aspect of enlistment or conscription is the need for military discipline. In a situation where you were shot for not obeying orders, one had to be very clear whether one was in the service, and if so, under whose command one served.

Yes, the “Revolution” was fought by regulars, irregulars as well as some partisans,  but the concept that these participants did not surrender their civil liberties to military authority is nonsensical.

Protect This…

Recently I have been hearing another radical refrain, that being that the U. S. Constitution (as opposed to a scramble of Marines) protect my rights. Apparently small minds are working overtime…

Frankly, the Constitution has never protected anyone’s “rights”. The Constitution embodies a rather terrible bargain that was supposed to give voice to the conscience of a new people. As it was flawed, so were the consciences of its people. Waxing more and more selfish, as possessive narcissists are want to do, they pushed harder and harder until the fabric of consensus was simply too brittle to serve, to calcified to persevere.

The U. S. Constitution is essentially a side of mutton (that being the nature of parchment); it lays around like a dead sheep and doesn’t do much at all. Tough to do much when you are housed in a bullet proof glass case, after all.

Courts have very little enforcement power, and rely almost entirely on the executive branch, while legislatures, well, they legislate….. they have no muscle (and perhaps collectively show little to recommend them much of the time. The Supreme Court simply ignores the Constitution when it serves their purpose, as do the Congress and the Administration. So who or what does protect our rights?

Setting aside for another time the substantial question of whether we have any “rights”, the real answer to that question is to be found above, where we started.  It is found in the willingness of the polity NOT to push things to the braking point.

I teach my students that the crux of the U. S. Constitution is, “Give a little to get a little” (as much an understatement I suppose, as Hillel’s description of Torah) and while that brings smiles to their faces, I am very serious.  Literalists, in a sense, can’t be taken serious because there has never been a word written which was read the same way twice.  The essence of man is fractiousness, and the genius, if any, of western jurisprudence is the vagary of the “law” not its specificity. As with matter, it is the space between that is remarkable, and forbearance is as much the space between as mystical volume between nucleus and electron…

When we abuse the social fabric (the delicate consensus that allows us to live together in some remote semblance of peace) the disturbance ripples through our reality. Ignorance begets ignorance, hate begets hate, violence begets violence. Social behavior is not managed by a sharp, “NO!”, hurled by a two year old. It is managed by “moral suasion” (and Winthrop advises that moral suasion may be as ineffectual as legislation when it comes to wives).

What secures our rights is no more, nor any less, than Hillel’s prescription: “What is hateful to you, do not to your neighbor; this is the whole law. All the rest is a commentary, go and study it.”


http://www.sefaria.org/Shabbat.31a.82?lang=en&with=Rashi&lang2=en

Winthrop, John, and James Kendall Hosmer. Winthrop’s Journal : “History of New England”, 1630-1649. Volume 1. New York : Scribner, 1908. Accessed June 16, 2016. https://archive.org/stream/winthropsjournal00wint#page/278/mode/2up .

 

Bloody Hell

Unfortunately, much of what could be discussed with respect to events such as just took place in Orlando is obscured by the use of unstated definitions and confused labels. This event, despite the thousands and thousands of times the media have repeated the line,  is NOT the largest mass killing of humans in the history of the country – not even close.

What is true, and frightening (let’s avoid the “t” word altogether, as this was not about terrorism), is the fact that one person can easily obtain the armament necessary to kill so many people so quickly. Let’s go on to note (as some have already over the past decade) that agnostics don’t seem to be interested in mass homicide.

Let’s face it. Murdering people who we don’t like is an American “sport”.  It receives tremendous press coverage, results in a huge transfer of value, not only is a focus of daily conversation, but also of secondary and tertiary entertainment progScreen Shot 2016-06-12 at 9.54.28 AMramming. Homicide is what Americans do, and arguably perhaps what we do best; what makes us “exceptional”.

Doubt me? Look no further than the political pinnacle presented via the accepted wisdom: two hawks, competing to be the war lords of the deadliest gang in the ‘hood.  Where ever we have gone over the last two centuries we have sown corpses (and reaped tremendous profits, don’t forget).  Death R Us, don’t you know.  We are not talking here of Oppenheimer’s confusion over Krishna’s lesson to Arjuna, unless we are celebrating a recognition that we are corruption incarnate. This is just juicing.

Is “Multipurpose” Just Another Word for Poorly Done?

I was a bit distressed, considering the state our trails are in, to read about the proposed ordinance to make electric bikes legal on our trails.  Let us reflect for just a moment…

  • Is there a general speed limit on our trails?
  • Are there specific speed limits that address trail circumstances and conditions (turn radius and the number of turns, width of trail, slope, lateral visibility, other traffic, etc.)?
  • Is there any enforcement on our trails?

I think by and large the answer to these questions is a resounding, “NO!”, and yet suddenly, without regard to the multitude of issues we do face on our multpurpose trails (yes, horses are allowed on our trails…) here we have an ordinance about an electric bike.

Are we first going to do something about the presumably illegal Segues and powered wheelchairs on our trails? How about the loose dogs fouling our greenbelts? Or should we think about the thousands of kids illegal biking on the trails without helmets?

The simple fact of the matter is that we have a number of criteria for the funding of “trails”, yet we seem incapable of effectively managing use of those trails once they are built.

A two hundred pound individual moving at 25 mph down an MOA bike path on a bicycle colliding with an unmanaged two year old suddenly dashing across the trail is a recipe for disaster – yet we seem unconcerned. Missoula and other locations try to address some of these issues by creating BERMED bike lanes that allow high speed bicycles to use city streets without fear of automobiles, while other cities provide what amount to bicycle only highways (keeping the three parents with the 3 double wide strollers stopping to chat from shutting down the trail). We put some paint on the road and look the other way…

Cologne Bike Highways

And wait!  There’s more!  Despite Danny Sullivan’s protestations (and the Mayor’s decision to keep Mr. Rodda in place), we have a huge burden of deferred maintenance, an ongoing crisis in grossly inadequate construction practice in laying trail, and unmet continuity issues. Do we continue to argue that maintenance of trails only be managed through State Cap Budget items? Why use local bonding to deploy apparently inappropriate or inadequate infrastructure (wooden bridges, anyone)? Is it time to put a stop to “partners” running our parks?  How do we balance ENFORCEMENT of trail usage mandates as against planning, design, construction, and maintenance of those resources?

I think it only fair to say that Mr. Traini has the cart before the horse.

Woe Unto Thee, Atheist!

OK all you armchair political scientists.  Tell me who wrote this and the approximate time and place.

In reflecting on what has happened * * * I became keenly aware of our national humiliation and decline. In material respects our country has become insignificant. The level of our commerce and industry is at an all time low and the number of paupers steadily increasing. Politically we are in disarray, following a long series of constitutional experiments that have all failed. The soul of our body politic, the Nation, is hampered and frustrated. The lack of order extends to the whole of society: the distinction between estates has been abolished, there is unlimited competition, ancient bonds of love and subordination have been removed, workingmen are helpless over against the factory owners, the state of poor relief is increasingly ominous. Deterioration so widespread suggests the presence of a general cause.

But perhaps we have learned from experience and reflection and worked out more firmly established theories? The opposite is true. Never before has every problem been so uncertain. Our men of theory are skeptical and our men of practice are hesitant, content to deal only with matters imposed by the events from day to day. Never before have theories been so unpopular.

The same skepticism is apparent with respect to the foundations of religion, morality, and justice. On these questions our generation is hopelessly divided. Every view is subjective and individual, each one has his own belief, his own opinion, exchanged, as times and circumstances alter, for another one, equally fleeting. There are now persuasions and confessions without number, all supposedly Christian.  Controversy has diminished, not because of increasing consensus but because of growing indifference. Disputes over doctrine upset people’s sense of tranquility. Before long, our only hope, the truth itself, may be banned

Whence this regression, this confusion, this general decline? Do you blame the forms of government for it? We have had all kinds: democracy, aristocracy, monarchy,despotism, constitutional government — the whole storehouse of revolutionary governments has served us. Do you blame the circumstances? They have not always been unfavorable. Do you blame the degeneration of our people? They never fell so deep that they could not be lifted up again. Have we lacked men of ability and energy? There have been statesmen whom I for one would not deny talent and character, nor, for that matter, good intentions; so that we are all the more pressed to search for the reason why even their wisdom was deceived and their energy paralyzed.

Everything therefore points to a general cause, to which the political forms, the circumstances, the national character, and the acting personages have been subordinate. And this cause must be sought in the ideas which have predominated. I  agree * * * that “everything proceeds from doctrines:manners, literature, constitutions, laws, the happiness of nations and their misfortunes, culture, barbarism, and those terrible crises that sweep the nations away or else renew them, depending on their level of vitality.”

Historical events, in their main content and chief import, are nothing other than the shapes and contours that reveal the sustained action of the spirit of an age. This is what I propose to demonstrate to you in the succession of the revolutionary phases, in our country and elsewhere. Whatever may have been the subordinate action of secondary causes* * * the principal cause of history * * * for more than half a century has been the inevitable result of the errors that have made themselves master of the predominant mode of thinking.

In order to bring out the nature of this subject it is necessary to explain what I mean by Revolution and by Revolution ideas.

By Revolution I do not mean one of the many events whereby government is overthrown. Nor do I just mean by it the storm of upheaval that has raged * * *. Rather, by Revolution I mean the whole inversion of the general spirit and mode of thinking that is now manifest in all Christendom. {footnote in original: The Revolution is the unfolding of a wholesale skepticism in which God’s Word and Law have been thrust aside}.

By Revolution ideas I mean the basic maxims of liberty and equality, popular sovereignty, social contract, the artificial reconstruction of society by common consent — notions which today are venerated as the cornerstone of constitutional law and political order.

The conviction that many calamities suffered by our fathers and by our own generation have sprung from this wisdom and from its origin, the rejection of the Gospel, was reinforced in me by a fresh examination of the train of events. Once again I saw clearly that whenever these theories gain a foothold people are led about in a circle of misery and grief.

Let me give my main conclusions now. A strict, consistent application of the Revolution doctrine will bring men to the most excessive absurdities and the worst atrocities. However, whenever men become terrified by the revolutionary development (which they regard as exaggeration) and in reaction begin to insist on moderation, though without abandoning the principle, then to avoid anarchy, the only course of action open to them, since they shink back from the consequences of their own convictions, is a shilly-shally, capricious behavior which has no guide save in the succession and pressure of circumstances. Even today this very course of action is made out to be the height of political wisdom: I mean the method of consultation of the doctrinaires; the policy which under the name of juste-milieu or the middle-of-the-road is dominant at present: the theory of the conservatives; and the practice, or if I must speak the truth, the routine, the languor and lethargy, the rut which prevails in our own country.

The consequences of the Revolution ideas cannot be combated with any success unless oneScreen Shot 2016-05-11 at 3.38.07 PM places himself outside their influence, on the ground of the anti-revolutionary principles. This ground is beyond reach, however, so long as one refuses to acknowledge that the foundation of justice lies in the law the ordinance of God. * * *

The Revolution doctrine is unbelief applied to politics. A life and death struggle is raging between the Gospel and this practical atheism. To contemplate a rapprochement between the two would be nonsense. It is a battle which embraces everything we cherish and hold sacred and everything that is beneficial and indispensable to church and state.

Well, I had one correct guess, but more intriguingly, he guessed correctly because he had seen this pieces of this rhetoric replicated in the same places I had – the epistles of the Family Research Council and their affiliates – and had looked the curious artifacts of Van Dyke’s translation (e. g. “Revolution ideas”) up on the internet.

While there are some aspects of Van Dykes translation that might be adjusted to make van Printerer’s meaning clearer to today’s reader, the amount of consistency with the propaganda of the intolerant religious right is too much to be serendipitous.  I think it only fair to suggest that the 21st century Family Action groups are simply channeling the intolerance of 19th Century Dutch Reform Calvinism.

More to the point, I think it rather clear that these groups then are not looking for broader religious liberty; they are looking for nothing less than the abrogation of the social contract. In short, the religious right is correct: they are in a religious war, they started it, and we will all be much better off when their teeth have been pulled.

 


Dyke, Harry Van. Groen van Prinsterer’s Lectures on Unbelief and Revolution. Jordan Station, Canada: Wedge Publishing Foundation, 1989.

Time for State Employees to Walk in Others’ Shoes

I sent the e-mail below to the Medicaid Expansion Coordinator and the DPA Director, Sean O’Brien as a follow up to my prior investigation. It has only been a couple of days, but I suppose I really am not expecting much of anything with respect to a substantive response.  Like so much else, we have here a potentially great idea, with simply horrendous implementation.

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The communication below and any files transmitted with it
may contain privileged or confidential information. It is
solely for use by the individual for whom it is intended,
even if addressed incorrectly. If you received this e-mail
in error, please notify the sender; do not disclose, copy,
distribute, or take any action in reliance on the contents
of this information; and delete it from your system.

Thank you for your cooperation.
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Dear Ms. Martin,

While I have been more than willing to accept what the Chris
Ashenbrenner had to say about the problems with the roll-out of the
Medicaid Expansion, any experience dealing with the claimant side of the
system is immediately explanatory of why there are so many people angry
and frustrated  with that system.

To start with, much of the information received by applicants from DPA
offices, or provided on the ARIES website, is inaccurate or misleading.
When I have tried to bring that to the attention of agency personnel, I
have been blown off, with the result that to my way of thinking,
nothing is ever going to be done to fix it. By way of example, if you
are dumped into ARIES by healthcare.gov, your application does not show
up in ARIES, even AFTER someone has looked at the file and sent you a
demand for verification letter.  If you have an application on file, you
must be able to confirm the status of that application through ARIES.
Period.

Anyone who thinks this

That was not the greatest explanation, so let me try again.  
The number you reported prefixed with a T is a temporary 
application number while the application is in processing.   
No access is available at the self-service portal (where 
application was made) while in this temporary status.  
The application has been transferred (electronically) to 
an office for processing.  After the case is processed and 
approved it will be assigned a permanent number starting with 
a 3.  This permanent number can then be used to access features 
provided on the portal. 
is in any way explanatory (or satisfactory) needs to see a mental health
professional. Let's see... it suggests that the application number does
not become an application number until the application is not longer an
application, and suggests, contrary to what the ARIES site says, that
you can see the status of your application based on your application
number...  but of course since the only number you get while your
application is an application is the application number and that
application number is not an application number, it is fairly obviously
that most of what one might have tried to do for an hour trying to use
web tools to determine the status of an application has been totally
wasted.  Moreover, any attempt to speak to someone at the DPA office
results in you being put in a queue to leave a message which is never
returned.

As far as the back log is concerned, since it is fairly evident that no
one is doing triage on the applications, and a call to the published
telephone number about emergent issues results only in an e-mail to an
office manager who already is failing to triage applications, it is
pretty clear why applicants are getting steamed. For example, waiting 6
or 7 weeks to THEN tell an applicant he has 1 week to send in dozens of
documents while making it impossible for the applicant to discuss with
anyone the document request is, in a word, bizarre. And YES, that
is exactly what DPA is doing.  Calls to claim workers are not returned.
When they are, no message is left. And no call backs are ever attempted.

Indeed, as relates to FFM referrals, since data will in fact be sparse
because it is all electronic and no documents are accepted, you know
that no application will be accepted without receipt of additional
documentation where there is any evidence of self-employment, and yet
you sit on those applications.  Where gross FFM income is below $19000
you STILL sit on those applications, and eventually ask the applicant to
prove expenses, when it makes no difference what the expanses were if
the gross income was below the target income level (if I have $12000 in
W2 income and and $6000 in gross self employment income, it doesn't make
any difference what my business expenses are, I am still eligible).

And what IS one supposed to do in response to a request that simply
says, "Provide documentation of expenses." What expenses? What kind of
documentation? Questions? Sorry, you may NOT speak to anyone who can
answer them 

As far as published data, it is frankly unbelievable, and while there
may be an explanation for why it seems incredible, the Department does
itself no service by not providing same.  By way of example, consider
this data:

                             "Jan-16"   "Feb-16"  "Mar-16"
"Incoming Work"              "4,352"    "3,672"    "4,501"
"Work Completed              "5,136"    "5,075"    "5,042"
"True Application Backlog"   "2,692"    "1,573"    "2,053"

How can you have an Application Backlog of 1573 in February, complete
541 more applications in March than came in, and then have a resulting
backlog of 480 more than you had in February?

And providers. I have spoken to quite a few over the last several
weeks.  Many are just fed up and are ready to quit accepting Medicaid.
Yes, they have been told to go ahead and treat as Medicaid will
eventually pay (really?), but all the provider has is a voice on a
telephone, and that does not pay the bills if payment is in fact NOT
forthcoming. Thankfully, many will simply hold the bill for 30 days.
And if a provider won't hold the bill, and won;t serve you because
Medicaid can't provide even a claimant number?  Well, you are in a sense
worse off than you were before Expansion, aren't you?

The system simply is not working well for those who need it to work for
them, in no small part because communication is non-existent, and
urgency is treated with casual disregard by the system.  We can do better.

Marc

Marc Grober, Esq.
5610 Radcliff Dr.
Anchorage Alaska 99504
email: marc@interak.com
cell:  (907)2272417

Only a Reasonable Experiment

Screen Shot 2016-04-14 at 8.56.59 AMI have been stewing over Thomas Frank’s indictment of President Obama in Listen Liberal. He very effectively argues that the President shrank from his authority to pursue his view of a Presidency willing to compromise. And then, in reading a piece by Luigi Zingales it suddenly struck me, “Why not?” Let me explain…

Let’s try a little experiment. The IRS already makes it abundantly clear that

To be deductible, your employees’ pay must be an ordinary and necessary business expense and you must pay or incur it. These and other requirements that apply to all business expenses are explained in chapter 1.

In addition, the pay must meet both of the following tests.

  • Test 1. It must be reasonable.
  • Test 2. It must be for services performed.

The form or method of figuring the pay doesn’t affect its deductibility. For example, bonuses and commissions based on sales or earnings, and paid under an agreement made before the services were performed, are both deductible.

and then goes on to discuss implication where corporations are excessive

If a corporation pays an employee who is also a shareholder a salary that is unreasonably high considering the services actually performed, the excessive part of the salary may be treated as a constructive dividend to the employee-shareholder. The excessive part of the salary wouldn’t be allowed as a salary deduction by the corporation. For more information on corporate distributions to shareholders, see Pub. 542. ” https://www.irs.gov/publications/p535/ch02.html

In essence, though any executive action would be eventually tempered by judicial review, reasonable AND necessary is quite the hurdle if one thinks about it, especially where the burden would appear to be on the tax payer.

So why not imagine, for at least enough moments to savor the possibilities, the circumstances where the Administration places a cap on business employee deductions. Now such a move would NOT stop corporations from paying whatever they chose, but it would prohibit those corporations from dropping those inflated compensation packages from their profits, and more profit means a greater chance of collecting some revenue from corporate tax dodgers. Clink, clink, clink…

So will all these John Galts stalk away from their corporate welfare rolls? Will their corporate masters flee the country?  Not likely, as we have recently seen at least one company, Pfizer, decide that such a response was maybe NOT in their best interests.
So let’s have some fun and argue, for the hell of it, that the Presidency is the most important and toughest job on the planet. That job pays $400K plus perqs worth another $170K.  The CRS suggests that the cost to a federal employer of a pension is about 23% of salary.  So lets posit that we add an additional 25% of $600K to a total cap, bring that to $750K. Period.

If you are not snarfling in your beer, you are soon going to be seeing a much smaller pay packet 😉


 

Entrepreneurship, Luigi Zingales Luigi Zingales is the Robert C. Mc Cormack Distinguished Service Professor of. “Why We Should Tax and Shame Excessive Corporate Lobbying.” Evonomics, April 13, 2016. Accessed April 14, 2016. http://evonomics.com/tax-shame-excessive-corporate-lobbying/.
Frank, Thomas. Listen, Liberal: Or, What Ever Happened to the Party of the People? Macmillan, 2016.