“A more progressive tax code, says International Monetary Fund, would both significantly reduce inequality and help grow the economy”
As a young girl, my daughter had a fear of flying. She overcame this through a thorough study of airplanes and landed on the 737 as her preferred means of transportation in the air. So naturally, she asked for a Boeing T-shirt for a present. It says, “If it’s not Boeing, I’m not going!”
So let’s talk about Boeing. You might expect that Boeing would treat Everett as the jewel in the crown of its operations. That is certainly what the Boeing management led legislators and the governor to believe when the company demanded first a $3.2 billion tax concession from the state, and then another $8.7 billion.
But what did this recent tax giveaway to Boeing get us? A loss of close to 12,000 jobs, 15% of the total Boeing workforce in our state. That means that the state gave Boeing about $138,000 for every single job they took away!
Boeing just heralded its new 787-10, built in South Carolina. This was the first Boeing jet to make its first flight outside of Puget Sound. The company is forecasting that production of the earlier 787 models may slow down. Where will the planes not be built? Well, naturally, not in Boeing’s old home of Washington. That tax money we gave them? It just finances outsourcing of jobs and investment to other states and countries.
Boeing is spending billions of dollars in South Carolina and not in our state just to stick it to the unionized workers, the machinists and the engineers, in our state. There is no other reason, financial or otherwise, to forsake decades of investment in plant and workers. Remember how all this got started: Boeing took over McDonnell Douglas in 1997, but actually the McDonnell Douglas management took over Boeing. Right away, they went looking for a new Boeing corporate headquarters, not in Seattle.
The guy who oversaw this flight from and fleecing of our state was Harry Stonecipher. He dreamed up outsourcing the 787 to Japan, Italy, South Carolina and other places, which resulted in billions of dollars of cost overruns when the quality of this outsourcing was not good enough to fly safely in the new airplane.
As Jim Albaugh, chief of Commercial Airplanes at Boeing, explained in January 2011, “We spent a lot more money in trying to recover than we ever would have spent if we’d tried to keep the key technologies closer to home.” But Stonecipher was not fired for his mismanagement of Boeing, he was fired for his mismanagement of his personal life after it came out he was having an affair with another Boeing manager.
Washington has not only given billions to Boeing in tax breaks, it has invested in workers’ education to insure a pipeline of skilled employees for Boeing. At Edmonds Community College, the Washington Aerospace Training and Research Center teaches manufacturing assembly, electrical assembly, quality assurance, aerospace tooling and aerospace composites. Everett Community College has both the Center of Excellence for Aerospace and Advanced Manufacturing and an aviation maintenance technology program. In 2012, the Legislature established the Aerospace and Advanced Manufacturing Pipeline Advisory Committee.
However, with Boeing’s job drain, we do not need a pipeline. These workers are picked off by companies in other states, with no investment by those states. Recently SPEEA, the Boeing engineers union, sent out a notice to its members about Lockheed Martin holding a Seattle job fair to hire for positions in California and Texas. So now aerospace companies are poaching Boeing workers from our state. These workers have been educated thanks to our public investments in K-12 and higher education to supply Boeing with a skilled workforce. Now Boeing does not need or want these workers.
Boeing is indeed going. There is no reason why the state of Washington must pay them to go. The Legislature should immediately close that $8.7 billion tax loophole, and put that money into education from pre-kindergarten through college. Then we would have workers ready for Washington companies, including aerospace companies, who are committed to our state. Boeing is not one of those.
Originally published a the Everett Herald
It’s time for policymakers in Washington state to take steps to reverse decades of widening economic disparities that threaten broad prosperity, now that it has again been shown that all income growth since 2009 continues to flow to the wealthiest Washingtonians.
An updated report from the Economic Policy Institute (EPI) shows that the richest 1 percent of households – those making over $388,000 a year – captured all of the new income generated in Washington state between 2009 and 2013 (see graph). By contrast, and in a stark reversal from past decades, average incomes among the remaining 99 percent of Washingtonians declined during this period, causing far too many hardworking families to fall even further behind.
The only thing correct in that article is : Job No. 1 should be to do what neither party has done for the past 20 years — ease the plight and address the needs of working-class families battered by the downside forces of globalization, technology and slow growth. That’s the cohort Trump has been inciting with calls for protectionism and nativism. What is wrong is the solution – we can no longer have bipartisanship compromise because it isn’t between the liberals and conservatives, or between the Republicans and Democrats. It is between the rich 1% and the 99%.
No more compromise – time to rain money on the people, like our legislators have done on the banks, corporations, and rich. The 1% get 95% of our crated wealth since 2009. Corporations receive tax breaks – more than our total annual budget. Corporations receive more tax breaks than our annual national deficit. Corporations get more tax breaks than Social Security and Medicare combined. Corporations get 10 times more money then programs to support our needy families. Corporations get more than our national debt. Time to rain money on the people.
TIME FOR A Basic Income? Yes! For Every One, A Basic Income? Yes! Radical Ideas About Fixing Inequality.
TIME FOR Sanders’ Economic Plan: Why Sanders’ Economic Plan Is Best For The 99 Percent.
TRUTH BOMB – A fact spoken in clear, easy to understand terms and without bias. https://www.facebook.com/groups/TruthBomb/.
Is it unconstitutional or even criminal when our elected leaders give more of our tax money to the rich and corporations than they do in serving and protecting the health and welfare of the American people? Corporate tax breaks are already twice as much than Medicare and Social Security combined, and corporate tax breaks are ten times as much as our three main programs needy families depend upon. Whether or not we elect Clinton or Trump, the multinational corporations have bought both sides to give them more of our tax dollar.
Washington State Supreme Court is on the verge of ruling tax expenditures unconstitutional to make the legislators accountable to the people.
President Obama legacy will show that by bailing out the banks and not closing the six corporate tax loopholes resulted in the rich getting richer, and the poor getting poorer, increasing the number of children living in poverty from 18% to 22%. THIS MUST BE STOPPED.
FACT: 2015 Corporate Tax Breaks- Expenditures $1.22 Trillion more than the US Budget – Discretionary Spending $1.11 Trillion Federal Spending: Where Does the Money Go
FACT: CORPORATE 2013 TAX BREAKS $3 Trillion dollars a year, twice as much as Social Security and Medicare. Tax Avoidance On the Rise: It’s Twice the Amount of Social Security and Medicare
FACT: The President could close Six Egregious Corporate Tax Loopholes Sanders Asks Obama to Close Six Egregious Corporate Tax Loopholes
FACT: PRIVATE FOUNDATIONS ARE PART OF THE PROBLEM, NOT THE SOLUTION. The Philanthropy Hustle
TRUTH BOMB – A fact spoken in clear, easy to understand terms and without bias. https://www.facebook.com/groups/TruthBomb/
The Tax Evasion Double Standard: How US CEOs Are Withholding Revenue by Thom Hartmann
If I refused to pay any taxes until the US government lowered my taxes to a so-called “fair rate,” I’d almost certainly be arrested for tax evasion. But when The Washington Post asked Apple CEO Tim Cook about the billions that his company has stashed in tax havens around the world, Cook declared: “We’re not going to bring it back until there’s a fair rate. There’s no debate about it.”
It’s up to us, we the people, if we want to save life on earth and build a better world for all. The 1% cannot and will not save us. They are afflicted with the deadly greed disease. The two major parties will not save us, the police and military will not save us; they are all owned and their power usurped by the 1%. We cannot unite under the banner of resistance groups with a great leader anymore. They will out our leaders just like they took out such people as John F. Kennedy, Martin Luther King, Malcolm X and others who take a stand for people.
We cannot have a violent revolution to set things right. When we resist violently to bring justice the 1% will use police and military power against us with deadly force. The 1% can’t help it, they are drugged with greed for power and wealth. They have indoctrinated our kids in schools to become good sycophants to their cause. Get smart, get a good job with their corporations and get ahead of everybody else. Students are trained to become good employees for the corporations owned by the 1%. Liberal arts have been denigrated. The game is to win. That is all that matters, compete and beat, that is what our world has become.
Let’s meditate on this a bit. Look where it has gotten us. We are in constant wars, our planet has been brought to the point of total destruction and disaster. Our air is polluted, our lakes, rivers and now the oceans are polluted and dying, all for their profit. We have created all kinds of technological developments. Every time something good is invented that can benefit people, they turn it around and use it against us and their other so-called enemies.
From the 1%’s viewpoint everything is positive and wonderful. They own over 50% of the wealth and can live in luxury. They can buy anything they want including our police, our military, our judiciary, our Congress and the executive branch. The rest of us do not matter. If we are not a consumer of their products or serve in their employment we are useless humanity. What happens to us doesn’t matter.
Okay, I’ve spelled it out; our world is in the deadly grip of the 1%. So what can we do about it? We must recognize and utilize our own power. Without us to do their work and consume their products the 1% is helpless and their power is broken. That’s it, we must break their power and build alternative sources to fill our needs. That’s what the capitalists did to conquer the feudal age. They built alternatives and made nobles superfluous. Now it is their turn to be replaced since they exploit rather than serve us.
Like I said, at this point we can’t organize groups to take corrective action. They will take out our leaders and come down with deadly force. Look at what happens in the rest of the world. When people in other countries try to organize and throw off the outside yoke of imperialism, drones take out their leaders, their citizens are bombed to hell and we buy their BS that they have taken out “the enemy.”
What can we do to change all of this? As organized groups, not much at this time, because of their deadly force. We must first break their power. We each must take personal responsibility. Start dealing with local folks to fill our needs. Get out of debt and quit borrowing money from their banks and credit cards. Buy from local farmers and merchants, who are there mainly to fill needs and make a living rather than huge profits. Get yourself a small piece of ground or use your backyard to start growing more food. Quit wasting your backyard on grass for appearances. Learn how to preserve food for the off seasons. If you have no need to grow food, do it anyway to learn how and to help others trapped in landlord-owned apartments. What you don’t need, give it away to help others become independent of the big corporations. Food and shelter are the first two basics. If we have these without having to depend on the big corporations, that is the path to freedom. If we work for a corporation that is exploiting others, making killing machines, or polluting our world, try to get away from them as quickly as you can. If we work at making their products to kill others, or destroy our environment we are part of the problem. It doesn’t make any difference how much money we make as a sycophant to them; it is not worth it if we are helping to bring death to life on earth. We really don’t need all this stuff they sucker us into buying with their advertising. If we can get an acre of this good Earth, feed ourselves and start rebuilding the soil, we become independent. If nothing else, use our backyards or sack-bags of dirt to grow vegetables. Treat land as sacred, it is here for all life.
We must demand that the UN has the power to hold war makers and those who abuse others to account. If we can’t make the UN do its duty, we must organize an international People’s Tribunal that will take action to hold war makers and polluters accountable. In the future we must settle our conflicts by law and courts rather than war.
We are better off when we cooperate and share rather than compete and beat. The state does not give life, therefore; the state does not have the right to take life. Let’s discipline ourselves and cut down on the world’s population explosion. Once we have broken the power of the 1%, we must change the system to register all people of legal age to vote regardless of circumstances. We must set up term limits and public financing for elections. Those people and corporations who utilize our public airways shall be required to dedicate 20% of each broadcast timeslot for 30 days prior to elections, as a royalty due the people, to be used by qualified registered candidates.
We shall create a world based on laws that bring justice for all. We shall develop an international power to hold war makers and exploiters to account. We start by taking individual responsibility, withdrawing our support and cease cooperating in their deadly game of destruction for profit. Resources of this earth are here for all life and not just for a few rich grabbers who take more than their share. Why should one person accumulate enough for 1000 lifetimes and 1000 families go hungry? Let’s start thinking about what personal action we can take. It is with our combined personal action that we shall end their power. We must stop allowing them to use people against each other. With life on earth we are all in the same boat, so let’s start bailing, even if we have but a thimble to use.
Imagine living in a relatively small nation, where per capita income is $11,000 less than in Washington state, and the only natural resources are timber, water and ice. People pay a 31 percent tax on personal income in excess of $82,000, a value-added tax of 14 percent on food and restaurants, and 24 percent on most other goods. How could anyone possibly do well there, much less run a business and prosper?
And yet, looking at living conditions — such as education, health care, quality of life, economic dynamism and political environment — this nation actually does much better than we’re doing in the U.S. Fewer people are poor, and more people there live longer, are more productive, and are … well, happier.
This place isn’t Arendelle of the movie “Frozen.” It’s Finland. Finland has a highly industrialized, largely free-market economy. The conservative Heritage Foundation rates Finland and the U.S. 74th and 76th, respectively, in terms of “economic freedom.”
In Washington state, our per capita income is close to $50,000 per resident. By that measure, we’re a rich state. But we’re underfunding our schools from pre-K through higher education; too many people are homeless, while many more face stagnating incomes and diminishing public services; and we’re all facing more uncertain economic futures.
So how do the Finnish people prosper with so much less, ostensibly, than we have? The answer is, they make shared investments to build their kids, families and communities.
Look at the economy in terms of peoples’ lives: When a baby is born in Finland, the family gets a baby box with clothes, diapers, bedding, towels, a picture book, a teething toy and other items. Paid family leave kicks in for at least a year, at 80 percent compensation with a guarantee you can return to your job. When mom or dad decides to go back to work, the cost of day care is subsidized so the maximum monthly payment is $322.
As kids grow up, their parents can devote real time to them. Every worker gets five weeks vacation, and the family budget is enhanced with a monthly stipend of $110 for the first child. The stipend increases with each child, so the stipend for the fifth child is almost $200. Pre-kindergarten is universal and free for all children. Schools provide meals for all children. In school, children are immersed in a system focused on creativity, teacher and student autonomy, foreign languages, math and music. No surprise: 15-year-old Finns are the top in the world in education. And when a student goes to technical college or the university, there is no tuition. Instead, the student gets a living allowance!
The Finnish health care system covers everyone. A friend of mine recently had surgery which required two nights in the hospital. His total bill: $103.74, inclusive of surgery, hospitalization, care and medicines!
In retirement, people receive about 55 percent of their average earnings along with a $560 monthly housing allowance. The average pension, including the housing allowance, comes to about $29,000 a year. Full pensions start at age 63. It’s guaranteed, like our Social Security, so the Finns don’t have to worry and hope that their 401(k) performs well. They don’t need 401(k)s! How is this financed? The Finns pay 5.7 percent of their wages into the pension system, and 7.2 percent after age 53. Compare that to our 6.2 percent tax for our Social Security. Employers pay more: 23 percent.
So sure, taxes are higher in Finland. But it’s a shared investment the Finns use to build their economy. The Finns have figured out that once you provide a universal platform of educational opportunity and health and social security, then businesses can just focus on doing business, being innovative, creating new products and systems.
That is what the Finns do. It has a dynamic private sector, ranked third in the world by Grant Thornton accounting (the U.S. is ranked 12th). There are double the number of small and medium enterprises per 1,000 people in Finland compared to the U.S.
And the Finnish people don’t have to scrimp to pay $1,500 a month for child care, worry about how to take time off from work when they have a child, wonder how to pay $12,000 yearly tuition for a public university tuition, or risk bankruptcy in a medical emergency, or wonder about having enough to eat when they retire.
That means that they can grasp their future with hope. Can we?
Originally published at the Everett Herald