Dave Johnson

Dave Johnson

Posted: March 9, 2010 09:28 PM

Cost Of Tax Cuts Catching Up To Us

What's Your Reaction:

This post originally appeared at Speak Out California

The following letter appears in today's San Jose Mercury News:

State not geared up for high-speed rail

Is high-speed rail really the answer in California? I think not. I originally thought, great, let's match Europe's and Japan's advanced transportation with our own high-speed trains.

However, California is not Europe or Japan. We do not have convenient trains and buses running everywhere you could possibly want to go in every city.

Consider that if you traveled from San Francisco to Los Angeles by high-speed train in 2½ hours, what do you do when you arrive? Catch a bus or light rail to your destination? Sorry, too inconvenient and time-consuming. Rent a car? Sorry, now you have lost the economy of train travel as well as the time savings.

Either alternative adds at least two hours to your trip making the time equivalent to driving.

I say, "no on high-speed rail." Let's save the money and reduce our debt in California!

Let it sink in what the writer is saying here: We should not even try to catch up to the rest of the world, because we have already fallen so far behind that it will cost too much. Instead let's just try to pay off some of the accumulated debt.

The writer is bearing witness to the results of many years of tax cutting and cutbacks in our government. After the tax cutting started in the 70s and 80s we stopped maintaining the infrastructure, so now we do not have convenient trains or buses or mass transit to use after the high-speed rail reaches your destination. We instead accumulated debt.

So here we are. The consequences of decades of cutbacks are arriving. The rest of the world leaps ahead of us. China has nearly completed a network of 42 high-speed rail lines connecting the major cities, and we can't even get one project off the ground.

It's certainly not going to get any better until we start asking corporations and the wealthy to pitch in and pay back some of what they gained from the infrastructure that we built in California, back in the decades before they got tax cuts.

Click through to Speak Out California

 

Follow Dave Johnson on Twitter: www.twitter.com/dcjohnson

 
Comments
130
Pending Comments
0
View FAQ
Comments are closed for this entry
View All
Recency  | 
Popularity
Page: 1 2  Next ›  Last »   (2 total)
JNarragansett   02:04 PM on 3/10/2010
People only travel about 400 miles a year in Japan and France on their high speed rail as compared to the 11,000 miles we spend on average on the highways. High speed rail would be underutilized, expensive, and the environmental costs of creating such a system of rail are so high that we are unlikely to see any real environmental benefit in having them. Efficiency in car and airplane fuel consumption is increasing, while running the diesel engines on trains at higher speeds will decrease their efficiency. High speed trains may be nice for the fraction of the population that uses them, but they are too expensive for what they actually provide.
HUFFPOST SUPER USER
Appleblossom   10:41 PM on 3/10/2010
Who says we have to use diesel engines?

http://en.wikipedia.org/wiki/Magnetic_l­evitation_­train
JNarragansett   11:45 AM on 3/11/2010
The current plan is for moderate speed rail, which would use existing rail lines and diesel engine trains. If you want to switch to true high speed rail and construct the track to go with it, then the costs are going to become so astronomical that it simply doesn't make sense to go forward with it. If environmentalism is your goal, the carbon costs of constructing the new rail would be so high that we would be unlikely to see any positive returns.

The truth is that high speed rail is fantastic when you have enough money to use it, but it is underutilized where it exists, would not be sufficient to cover the USA's travel needs, and would cost more than it would ever give us back.
HUFFPOST SUPER USER
Appleblossom   11:59 AM on 3/11/2010
No one thought about cost when it came to building the transcontinental railroad. They just did it.

So to say that "oh it costs too much money" is a cop out. Also, if you use it smartly then high speed rail is a good use. For instance-Tucson and Phoenix are within a hundred miles of one another now. No reason whatsoever to not have a rail between the two to let people get to where they need to go without driving. Same with DC and NY. I can think of other examples where connecting the cities is good economic sense long term.
robbcoffee   12:37 PM on 3/10/2010
Do keep in mind that it's not the corporate tax rate that needs to go up. Rather it is the eradication of loopholes that corporations use to avoid the actual tax rate. Our corporate tax rate is, on paper, higher than many European countries.'
Also there is too much focus on legislation through taxation. Progressive taxation is a reasonable policy, but overall what matters more is how money is spent. Now this is where the right-wingers claim we are spending too much and give a false argument of cutting waste being enough... Nope. We actually need more revenue to reach a level of spending that allows the public sector to accurately address issues. And to keep agencies accountable... Accountability actually costs money. And requires attention.
I can agree that the rich should pay more... but truthfully we should all be making more sacrifice. We should not have our trade-off overly obscured by putting taxation on corporations (leading to the corporation putting the losses on its "lowly" employees).
We should seriously consider incorporating value-added taxes as part of our tax system, perhaps cutting income taxes for all or cutting them for the well-off and exempting more people toward the bottom.
mdlawyer2   12:14 PM on 3/10/2010
Good example using China. Total Chinese governmental expenditures were $1.117 trillion in 2009. Total U.S. "federal only" expenditures were 3.517 trillion in 2009 (total govermental, including States and localities, expenditures in 2009 were over $6 trillion). The population of the U.S. is around 307 million. The population of China is around is around 1.33 billion. The Chinese nationally collect and spend about a sixth of the taxes collected and spent by the U.S. (a third federally) and support a population 4 times the size of the U.S. They have high speed rail, infrastructure expenditures galore and universal health coverage. Given the numbers above, it appears we're collecting and governmentally spending a whole lot of money, the real question is where is that money going. Government has lost the ability to wisely spend our national wealth, and in fact, has no clue where the money is going (corporate welfare, I believe). The system is utterly corrupt. It's not an issue of funds in, the real issue is where those funds go.
HUFFPOST SUPER USER
Appleblossom   10:43 PM on 3/10/2010
The Chinese government's published 2009 military budget was US$70.3 billion.

That is the problem right there. And the lack of UHC.
mdlawyer2   09:44 AM on 3/11/2010
Throw out a trillion dollars of excess military spending, and our government still spends five times the money on less than one fourth the people and we have less to show for it. Where is it going? Simple question, simple math.
photo
HUFFPOST SUPER USER
luckynewman13   11:21 AM on 3/10/2010
USAFVET76   10:07 AM on 3/10/2010
Are you nuts?
There's more than enough dollars in federal and state tax collections.
WAY more than enough.
The problem is the constant spending and waste.
Absolutely no prioritizing.
Absolutely no concern for the long term costs (such as these sweeet public union pensions with no method of payment).

Illinois is a great example of this.
Chicago is an even better example.
Huge taxes and broke.
jmwtex   11:23 AM on 3/10/2010
Wrong, people in countries with higher tax rates are happier. Taxation is a form of investment in the future on the basics that must always be maintained. Conservatism junked that idea for tax cuts so that we could buy more junk from Walmart rather than maintain the essential physical and educational infrastrucers. Conservatism, basically, has been a failure. The effects of these bad policies of tax cuts, deregulation and free trade at any cost is comming home to roost. The problem is that we are not willing to admit, yet, that conservatism is the problem.
photo
HUFFPOST SUPER USER
DavidShort   12:04 PM on 3/10/2010
The sole purpose of taxation is the funding of government operations. The government has proven they are incapable of spending money. They have usurped the role of legitimate charities and in the attempt to expand their reach ad control, they spent themselves into a corner. The solution is not more taxation, but less spending. The less government spends, the lower taxes will be. The less taxes confiscated from people, the more money in the market, allowing the market to improve and innovate.

The discussion of taxation has two sides, mostly we hear only of income. Why are we not talking about the other side of the equation? Why are we not holding our governments (local, state, and federal) accountable for their complete lack of restraint when they blow through the money they confiscate from us, under the guise of taking care of us?
Democrat in the South   12:18 PM on 3/10/2010
Well said!
mdlawyer2   12:20 PM on 3/10/2010
The Chinese example in the article bears out USAFVET76's assertion. China has one sixth of the governmental expenditures of the U.S. for a population more than 4 times the size of the U.S. Yet they spend liberally on infrastructure (and unfortunately their military as well), build high speed rail, and have universal health coverage. It's not that U.S. government doesn't spend enough, it's a question of where the money goes.
USAFVET76   01:07 PM on 3/10/2010
Well, if people are so happy with higher taxes then why are the progressives and liberals only focusing on the most wealthy and businesses?

If you want everyone to be "happy" then everyone needs to have a little skin in the game.

But, even if everyone participates it will do no good if our politicians continue to treat us as a never ending well of funds. This is a wealthy country. And ALL politicians are spending us into oblivion.

Look at the policies at local and state level. No military or wars and yet they still find a way to go bankrupt.

Politicians have 2 jobs.

1. Get re-elected.
2. Spend our money.
photo
HUFFPOST BLOGGER
Dave Johnson   06:05 PM on 3/10/2010
I have NEVER heard any Republican or right-winger spell out WHAT spending to cut, in a way that adds up to enough to get rid of the deficit.

Please, here is your opportunity. Tell us WHAT spending would you get rid of, and how much money are you talking about?
mdlawyer2   07:58 PM on 3/10/2010
Dave: I'm a Maryland Democrat and I want to know why we spend 16% of GDP on healthcare while the rest of the industrialized world spends on average 10%. They have universal coverage, we don't. They cover existing conditions, we don't. In other areas, such as transportation, we spend a ton, but get traffic jams and smog, they get high speed rail. My issue is where is the money going? As a society, I don't believe we are under taxed (this includes direct taxes, property, sales, income as well as indirect taxes, taxes embedded in telephone charges, gasoline, cable tv, etc., etc.). The government collects a boatload of taxes, spends more than it collects and has no idea where the money went (there's no accountability). I want universal healthcare, high speed rail, green energy, but I want the government to spend our national wealth more prudently and with greater accountability.
photo
okim5150   08:54 AM on 3/10/2010
Ever since Proposition 13, California has been in a race to the bottom. The poor have nothing to tax and the folks in the middle are disappearing fast. If the rich don't pitch in, California will make it to the bottom soon.
USAFVET76   10:22 AM on 3/10/2010
Psssssssssssst. It may have something to do with the BILLIONS they have decided to spend on the illegal alien population. Schools, medical, housing, jailing, crime rise, etc.

Don't forget to disrupt the agricultural economy to protect that little fish.

Politicians in CA were big spenders and wasters.
There is MORE than enough money in CA being taxed.
Its a goldmine of a state.
And yet they can't stop spending. The well is dry.
jmwtex   11:24 AM on 3/10/2010
Wrong!!!! They stopped investing in their future and the future arrived. That is what happened.
photo
gs-425   08:45 AM on 3/10/2010
No, the cost of overspending is catching up with us.
HUFFPOST SUPER USER
sbvpav   09:55 AM on 3/10/2010
yes, you are partially right. the cost to our government from bush's tax cuts to the wealthy will have cost us, even if left to expire on schedule, $3.7 trillion - that's more than the president's entire health care reform plan plus his 2011 budget - while job and income growth for the middle class was the lowest in any post WWII era.

the cost to us for the lied into and unnecessary war in iraq has been $1 billion a month plus the billions of dollars now given to those like blackwater and halliburton and kbr. the cost to us to bail out the very villains who nearly caused our entire economy to collapse from years of deregulation began under the republican president ronald reagan.

i am always and continually amazed at how the republicans can convince those who never profited from their agenda for the wealthy, to still decry "big government spending."
HUFFPOST SUPER USER
Appleblossom   09:56 AM on 3/10/2010
Then repeal all of those voter initiatives that raise costs but never pay for them.
photo
HUFFPOST SUPER USER
Carl Caroli   08:06 AM on 3/10/2010
"It's certainly not going to get any better until we start asking corporations and the wealthy to pitch in and pay back some of what they gained from the infrastructure that we built in California, back in the decades before they got tax cuts."

Politicians should do that, no doubt. But instead what they ask for is campaign donations, and in return promise favors, which by the way, is usually lower taxes or subsidies.
HUFFPOST SUPER USER
sbvpav   09:58 AM on 3/10/2010
"lower taxes" and deregulation to make all the more profit off the back of the american consumers. eric massa was a little strange (lol) on glenn beck yesterday but he did make one very important point. until and unless we the people insist on public financing for all congressional campaigns, nothing will change and no real reform for the good of the people will ever happen!
Eggsackley   05:23 PM on 3/17/2010
Was Glen Beck really promoting public financing for all congressional campaigns? If so, maybe he is not completely looney.
photo
tropkins   07:15 AM on 3/10/2010
Tax cuts Specifically For A Social Bracket (IE the rich) = A bad Idea
Tax Cuts Across the board For everyone = Great Idea
Our government Spending Less Money on Right Wing wars and Leftist
Social Engineering = Even Better Idea
A Minimal Government that Knows its Roll and Scope and Does not
over step its bounds at every turn = Priceless
Although the Last thing will never happen because we have Provided our
Bloated Monster of a Government all the Fuel it needs to Keep expanding
and taxing us into the ground.... Pretty soon we will all be broke and EQUAL
Equally Ruined...
Democrat in the South   09:04 AM on 3/10/2010
Translation, Republican policies lead to socialism.
Heath2740   09:31 AM on 3/10/2010
Correction, fake Republicians and progressives lead to socialism. If we are so far behind the rest of world, why do so many people flee there countries to come here. Lets be honest, taxing one person more than another is not fair. We are taxed to death in this country. A tax here, a tax there, why not let me keep more of my money to do what I want to do with it. I worked for it, keep your hands off it.
USAFVET76   10:20 AM on 3/10/2010
Liberal policies drive socialism and elimination or reduction of civil liberties as we know them.

Every socialist or communist government in the past began as what we know as a liberal based policy organization. Giving to the poor to take from the rich was their basic principle. And they extended those programs as much as they could. Eventually the govt was providing all aspects of livelihood; jobs, health care, education, transportation, housing, etc.

And the rich were no longer driving the economic cart.
The government was driving it.
And eventually the poor were still poor. In most cases MORE poor.
And the rich was smaller in number.
And the government became completely empowered.
photo
tropkins   09:16 PM on 3/10/2010
No NO No.... Republican Polices Lead to Imperialist Fascism...
Democratic Policies Lead to socialist Communism..
The US was designed to Be a balance of all of these Ideas....
that Keeps us in the middle...
and that is why there is always Such Drama when 1 party owns the entire process
Eggsackley   06:04 PM on 3/17/2010
We don't need wars. We do need some social engineering in the form of single payer health care for everyone. That would save billions in unnecessary costs. Our system is broken. We need to rein in the financiers before the ultra rich finish looting our national wealth and move on, leaving the rest of us to wallow in the wasteland they left behind. That means restoring most of the regulations that the radical republicans destroyed. The regulation of the financial system does need to be consolidated and streamlined, but we do need a separate agency to protect consumers from financial shenanigans. Most of us are paying more taxes than we need to because the rich are not paying their fair share. We really need to return to Eisenhower era tax brackets and Eisenhower era infrastructure building. High speed rail has a place, but we need to promote mass transit on all levels. Once we get a handle on our national debt and a good start on putting our people back to work, we can then return to the more moderate Kennedy era tax brackets. The Reagan-Bush voodoo economics and financial deregulation were the worst thing out government ever did to the American people.
photo
HUFFPOST SUPER USER
David Rozgonyi   05:29 AM on 3/10/2010
As a US/Hungarian citizen who has lived with both US and EU travel philosophies, I have this opinion: In some ways, he is spot on. American urban planning is far to sprawled as it is to use central stations; after all, what good is it to arrive in downtown Denver and have few to zero options to move around once there? Urban centers are rarely pedestrian friendly enough, and suburbs you can forget about... Where I live now (Hungary), I can walk from my doorstep, be at a train station in twenty minutes, and be on a train to Venice or Budapest or Istanbul or anywhere else, and once I get there, there are many options. Frankly, though, in my and most EU cities, I can also walk everywhere else; Within 500 meters from my door: my dentist, my doctor, my optometrist, five or six groceries and greengrocers, a national theater, a movie theater, six churches, a mosque, a synagogue, a huge mall, forty restaurants and bars, a few hardware stores, insurance agencies, schools, EVERYTHING within a tight, old community no more than 1/2 mile in diameter..... I literally do not have to drive, ever. Until the US moves toward such centralism, high speed trains will be less than useful.

I don't have a solution. Blame General Motors for ripping out rail in favor of highways and cars in the first part of the other century.
Democrat in the South   12:11 PM on 3/10/2010
This country was designed to be spread out. We need immediate solutions to transportation. I think high speed rail is a good idea. We can begin that, planning for the future, while addressing short term solutions. High mileage vehicles would be a good start. Just think what this country could do if we had all the money that goes into Wall Street and the pockets of CEO's. Trillions. We have our priorities backwards.
General Washington   05:21 AM on 3/10/2010
Raising taxes would do more than allow us to revamp our "unique" infrastructure.

An infrastructure (and by that I mean the Interstate Highway System and associated arteries - suburban or otherwise) I should add that has probably done more to alienate/separate the individual from the larger community - and has caused societal degradation - than any social program that conservatives despise ever could.

Consider what we could do with that $1.4 trillion in unused profits being sat on just by corporations?

Not to mention the under/un-utilized sources of income being held by all those newly minted millionaires and "Ultra High Net Worth Individuals".
USAFVET76   10:15 AM on 3/10/2010
Imagine what would be done with any tax dollars, to include any extra dollars received in increased taxes?

Give it to unions.
Triple the actual cost of any proposed project cost.
Kickbacks to supporters.
Divert it to some social program to those who have absoultely no skin in the game.
Pay for more illegal alien education.

Yeah, more taxes. So politicians can have even more to spend and waste.
How about some political accountability. You spend what you have available.
And putting those at the bottom of the run into the tax mix so they have some skin in the game versus just taking, generation after generation.
photo
HUFFPOST BLOGGER
Dave Johnson   06:02 PM on 3/10/2010
Can you come back after doing two things for us:

1) Go learn about how the government operates -- elected officials don't KEEP the money that is raised

2) Give the Limbaugh and Beck listening a rest for a few days
photo
unrepentant progressive   05:15 AM on 3/10/2010
Our country is spiraling downwards because we've been sold the idea that tax breaks for the wealthy is good for all of us.

From 1932-1981, when top marginal tax rates were much higher than they are today, we became an economic and military powerhouse. We got out of the Great Depression, won the largest war in the history of mankind, and the middle class blossomed (I'm not saying that there were no bad times of course).

On the flip side, top marginal tax rates were MUCH lower before the Great Depression and before the current recession. From 1982 to the present we haven't paid for things, we've borrowed. Why? Because we starved ourselves of revenue, by taxing the rich less in hopes that they're (supposedly) increased investments would make America better. Hasn't quite worked, has it?

Can Americans put two and two together? Nope. And that's why we're falling apart. We cannot have a healthy or economically sound culture while so few own so much. The fact of the matter is that money has to come back down, it has to recycle. If it gets stuck at the top, the consumer class will consume no more.
Democrat in the South   09:09 AM on 3/10/2010
I read recently that the Republican policies created SO much wealth at the top that the rich can support consumerism without a middle class.
photo
HUFFPOST SUPER USER
DavidShort   12:08 PM on 3/10/2010
Please cite that reference.
BuckCarson   11:10 PM on 3/09/2010
I travel Europe frequently. Last year I was there nine times. I love the convenience and the sense of freedom of the trains. I love Europe.

However, I love America as well. I think that America is very special in the world. We are the world's optimists and we are the world's doers. We do things other peoples' are trained not to even think about.

I am very afraid for my country. When I was a grad student in Physics, I was the only American. It was actually pretty embarrassing. All my undergrad friends went into accounting, law and journalism. Today I am the only person I know from that era that has a product (or a service) worthy of export.

Look at the commercials on TV; IRS representation, credit reports, credit card consolidation, and lawsuits for car accidents. Look at the movie stars: “Oh everything is so bad, the right sucks, global warming, blah, blah, blah.

We will not solve our problems by using democrats, republicans, health care reform, nor rail. It certainly will start within the individual. I am very glad that we have the current administration, because this fact of life is now obvious.
mamalisa38   11:04 PM on 3/09/2010
We also need to ensure that our fellow Americans earn a living wage. Every time I hear "union thug" I want to scream. We pay more income taxes than minimum wage jobs. As the unions declined so did money to fill the state and federal coffers. We have more disposable income as well, adding sales taxes that states aren't collecting now.
USAFVET76   10:12 AM on 3/10/2010
Scream then.
Union thug bosses are raping the tax payer.
And their members.
Chicago is a great example of what unions have done to destroy an economy.
They, along with politicians are a primary reason for the downfall of the economy.
I'll give big business some credit in that area too.
But, unions and politicians are the primary drivers of debt.
rodealer   10:58 PM on 3/09/2010
High speed Rail. It is a good idea but it will never get built. The government would have to acquire land to build the line. The rails must be straight so the Train can go fast. The Court Fights would go on for years and years. Other Countries just take the land. Will we do that here? Will the extra revenue be eaten up by court costs and getting the land? Will people pay and use it without Government funds? I don't know. There are always unintended consequences.
HUFFPOST SUPER USER
Appleblossom   10:00 AM on 3/10/2010
Ever hear of something called "eminent domain?"

And if we let the idea of unintended consequences rule our every action, we would never get anything done because it could have possible negatives.
photo
HUFFPOST SUPER USER
DavidShort   12:10 PM on 3/10/2010
The theft of private property is what eminent domain is. Are you really advocating official theft?

Twitter Edition