Can we get real? For starters, $642 billion is serious money, and despite the modest improvements of the latest CBO report, the basic trends in federal finances remain the same. From 2014 to 2023, the government will spend $6 trillion more than it collects in taxes. The budget never comes close to balancing. Expanding spending on the elderly and health care continues to strangle the rest of government. As a share of the economy (gross domestic product), military and domestic discretionary programs (examples: drug approval, environmental regulation, Head Start, federal courts) drop about 40 percent from 2010 to 2023.

Nothing of consequence has changed. A few numbers have shifted slightly. That’s all. They moved in a favorable direction. Next time, they might go the other way. What’s also constant is the unwillingness of leaders of both parties, beginning with the president, to discuss budget choices candidly. The budget passed by the Democratic Senate barely touches entitlements for the elderly, which constitute the largest chunk of federal spending. The budget passed by the Republican House avoids a large tax increase only by making draconian and unrealistic spending cuts that would never pass Congress or be signed by the president.

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicaid • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Sandra Duck thinks she’s the victim of an undeclared Medicaid boycott. And she’s probably right.

When her artificial right hip became infected with the superbug MRSA in late 2009, Dr. Dale Mitchum, a general surgeon, drained, cleaned and closed the infected area. But when the infection returned in early 2010, Mitchum knew Duck needed another hip replacement surgery, which he couldn’t perform. He tried to find an orthopedic surgeon who would operate. More than a year later, he’s still trying.

“I cannot find a living soul that will touch her,” he said recently. “And I’ve tried everywhere, from Tallahassee to Pensacola.”

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • Law & Legal Issues • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • The U.S. Government • Medicaid • * Theology • Ethics / Moral Theology

Washington is now sinking its teeth into a real scandal: the Internal Revenue Service (IRS) using ideological criteria to choose the targets of its attention. What we already know is bad enough. Given the seriousness of the charges and the unreliability of IRS disclosures so far, purposeful, sober investigation is exactly what is needed.

At first, the IRS’s admission that it flagged applications for tax-exempt status from tea party-type groups brought reaction that broke along partisan lines. But on Monday, President Obama called the news “outrageous,” adding: “I’ve got no patience with it. I will not tolerate it. And we will make sure that we find out exactly what happened on this.” Senate Majority Leader Harry M. Reid (Nev.) joined other Democratic lawmakers to support an investigation in his chamber, something Republican leaders in the House had pledged on Friday.

Any unequal application of the law based on ideological viewpoint is unpardonable — toxic to the legitimacy of the government’s vast law-enforcement authority.

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Filed under: * Culture-Watch • Law & Legal Issues • * Economics, Politics • Economy • Taxes • The U.S. Government • Politics in General • * Theology • Ethics / Moral Theology

The staffers in the Cincinnati field office were making high-level decisions on how to evaluate the groups because a decade ago the IRS assigned all applications to that unit. The IRS also eliminated an automatic after-the-fact review process Washington used to conduct such determinations.

Marcus Owens, who oversaw tax-exempt groups at the IRS between 1990 and 1999, said that delegation “carries with it a risk” because the Cincinnati office “isn’t as plugged into what’s [politically] sensitive as Washington.”

Owens, now with the firm Caplin & Drysdale, said that before the agency’s most recent reorganization, it had a series of “tripwires in place” that could catch unfair targeting, including the fact that the IRS identified its criteria for special scrutiny in a public manual.

“There’s no longer that safety valve, and as a result, the IRS has been rolling the dice ever since.....

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Filed under: * Culture-Watch • Law & Legal Issues • * Economics, Politics • Economy • Taxes • The U.S. Government • Politics in General • * International News & Commentary • America/U.S.A. • * Theology • Ethics / Moral Theology

Responding to Carson’s testimony at a House Subcommittee on Africa hearing in July 2012, Subcommittee Chairman, U.S. Rep. Christopher Smith (R-NJ), remonstrated that poverty alone does not drive people to violence. And in any case, Boko Haram is well funded by outside Islamists. “Heavy machine guns” and “buses and pickup trucks mounted with machine guns” are just the latest examples to show that Boko Haram is not just a motley crew of impoverished, marginalized local Muslims. In February 2013 it was revealed that hundreds of Boko Haram members had trained for months in terrorist camps in northern Mali with the local “Ansar Dine” al Qaeda of Mali. Their former chef, explained that he cooked for over 200 Nigerians who had “arrived in Timbuktu in April 2012 in about 300 cars, after al Qaeda in the Islamic Maghreb (AQIM) swept into the city.”

In its 2013 Nigeria briefing, human rights group Justice for Jos +, a project of Jubilee Campaign USA, remarked, “Ironically, in northern Nigeria, it is Christians who are totally disenfranchised politically, economically, and socially in their own states and by their own ethnic groups due to their religious identity.” This is worse than just “political marginalization,” Mr. Carson! Justice for Jos + continues, “Christians are regarded as inferior to Muslims and suffer ongoing, systematic and comprehensive discrimination even by local and (Sharia) state governments.”

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Filed under: * Culture-Watch • Religion & Culture • Violence • * Economics, Politics • Economy • The U.S. Government • Foreign Relations • Politics in General • Terrorism • * International News & Commentary • Africa • Nigeria

Hospitals around the Lowcountry are billing Medicare at vastly different prices for the exact same procedures, according to data published Wednesday by the federal government.

For example, in 2011, Trident Medical Center billed Medicare an average $98,352 to insert a permanent pacemaker, while the Medical University of South Carolina billed $38,902 for the same surgery.

Read it all from the local paper.

Filed under: * Culture-Watch • Health & Medicine • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The U.S. Government • Medicare • * South Carolina

Lawmakers on both sides of the aisle reacted swiftly to the news that the Pentagon’s estimated number of sexual assaults jumped 35 percent, with several introducing legislation in the House and Senate to protect victims and improve response following report of an incident.

Sen. Kirsten Gillibrand, D-N.Y., chairwoman of the Senate Armed Services personnel panel, plans to introduce legislation next week that would eliminate a commander’s authority to overturn rulings in cases of sexual assault.

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Filed under: * Culture-Watch • Law & Legal Issues • Men • Sexuality • Violence • Women • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • House of Representatives • Senate

Beijing is engaged in systematic cyber spying on the US military and private businesses to acquire technology to boost military modernisation and strengthen its capacity in any regional crisis, according to the Pentagon.

In its annual report to Congress on the People’s Liberation Army, the Pentagon gives new emphasis to the threat of cyber-espionage from China, an issue that has been the subject of top-level complaints to Beijing by Washington.

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Filed under: * Culture-Watch • Blogging & the Internet • Science & Technology • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Foreign Relations • Politics in General • * International News & Commentary • America/U.S.A. • Asia • China

In a time when the whetted and arbitrary deficit-reduction knife is cutting bone out of critical U.S. government programs, the image of shopping bags stuffed with CIA cash handed off on a monthly basis to Afghan President Hamid Karzai — who reigns over one of the most corrupt governments on the planet — has outraged many Americans.

The New York Times, which revealed the years of payoffs this week, noted that "there is little evidence the payments bought the influence the CIA sought."

In fact, regular cash handouts of this type may do the opposite. They may well have enabled Karzai's frequent and theatrical outbursts against U.S. officials and policies, not to mention his collusion with some of his country's most corrupt and abusive officials. Such payoffs signal to Karzai — or other leaders like him — that he enjoys the unwavering support of the CIA, no matter what he does or says, and embolden him to thumb his nose at the United States whenever he feels like it.

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Filed under: * Economics, Politics • Economy • The U.S. Government • Foreign Relations • Politics in General • War in Afghanistan • * International News & Commentary • America/U.S.A. • Asia • Afghanistan

....as the Obama administration prepares to pull 34,000 U.S. troops out of the country by next February and most of the remaining troops by the end of 2014, estimates of the size of the Afghan force trained to take over this lead security role suddenly have grown fuzzy and possibly unreliable.

A new report made public this week by the government’s top watchdog over U.S. spending in Afghanistan casts doubt on whether the U.S.-led coalition and the Afghan government met a goal set in 2011 of enlisting and training a total of 352,000 Afghan security personnel by October 2012. Pentagon officials have said that target was meant to strike a balance between what was needed and what America and its allies could deliver in concert with the Afghan government. Earlier this year, in conjunction with President Barack Obama’s State of the Union address, the White House declared that the goal had been met.

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Filed under: * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • War in Afghanistan • * Theology • Ethics / Moral Theology

Employers kept hiring at a steady pace in April and the government revised up job tallies for February and March, easing fears that the economy is tumbling into a spring slump and propelling blue-chip stocks to record highs.

Nonfarm payrolls rose by 165,000 last month and the jobless rate ticked down to 7.5%, the lowest level since December 2008. The Labor Department also significantly raised hiring estimates for the two prior months, by a combined 114,000 jobs.

But the job gains in April, which were tilted toward the retail and business-services sectors, come alongside mixed signals for the economy almost four years into the recovery. While the housing and auto sectors are accelerating after years of industry turmoil, other major sectors are showing signs of trouble. In short: The Federal Reserve is looking for more broad-based and sustained job growth before easing up on its easy-money policies.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • Personal Finance • Stock Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

The economy lurched this spring into an even lower gear, from manufacturing to services to construction, leaving the Federal Reserve poised to prolong or expand its bond-buying stimulus.

Central bankers Wednesday kept benchmark rates near zero and quantitative easing purchases at $85 billion a month. But changes in their statement highlighted shifting emphasis.

"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," it said.

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The CIA pushed to have one of the suspected Boston Marathon bombers placed on a U.S. counterterrorism watch list more than a year before the attacks, U.S. officials said Wednesday.

Russian authorities contacted the CIA in the fall of 2011 and raised concerns that Tamerlan Tsarnaev, who was killed last week in a confrontation with police, was seen as an increasingly radical Islamist who could be planning to travel overseas.

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Filed under: * Culture-Watch • Urban/City Life and Issues • Violence • Young Adults • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • Terrorism

[...An] important strand of the British effort is what the UK government calls the “Prevent” strategy. This involves the police and local authorities working with Muslim organisations and communities to ensure that British nationals who become radicalised are identified and encouraged to channel their anger before they resort to violence.

Professor Michael Clarke, an expert on counter-terrorism at the Royal United Services Institute, a think-tank, says the strategy has had some success. “It is about getting the Muslim community to accept responsibility for people in their midst, helping to identify those who are radicalised and working with the police and local authorities to stop them before they plan attacks,” he says....like a number of UK experts, he argues that the US has been slow to tackle “homegrown” jihadism pre-emptively. “The Americans find it hard to accept that jihadism can arise from within their own society. They still feel the phenomenon is pushed into the US by outside forces or foreign actors.”

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Filed under: * Culture-Watch • Science & Technology • Urban/City Life and Issues • Violence • Young Adults • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Foreign Relations • Politics in General • House of Representatives • Office of the President • Senate • Terrorism • * International News & Commentary • America/U.S.A. • * Religion News & Commentary • Other Faiths • Islam

My read of the evidence is that the Affordable Care Act will have a much tougher first year than was initially anticipated but it won’t be the catastrophe that Republicans hope. The exceptions will be a handful of states where Republican governors have purposefully made it a catastrophe, but that’s likely to make the Republican governors look bad, particularly if the law is working smoothly in states that have tried to make it a success.

Conservative commentary on the law, with its continuous predictions of explosive premium hikes (and continuous omissions of the offsetting subsidies) and gleeful celebration anytime anything looks to be going wrong, is risking the mistake that the Obama administration made early on with the sequester. When the predictions of pain and chaos didn’t instantly come true, the whole narrative shifted in an instant.

Republicans have done a very good job prepping the country for the pain of Obamacare. They’ve not done a good job prepping the country for the people who will be helped by Obamacare.

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • Law & Legal Issues • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • Personal Finance • The U.S. Government • Medicare • Politics in General • * Theology • Ethics / Moral Theology

At this time of year, when most Americans have just filed their returns, exasperation with the income tax system reaches a peak. Hardly anyone denies it's a complex mess. In 2010, calculating their taxes cost Americans $168 billion, estimates the Taxpayer Advocate Service of the Internal Revenue Service. That's about 15 percent of taxes collected — a heavy overhead. Almost 60 percent of taxpayers pay accountants or other tax preparers. Public esteem for the tax system is low; in a 2011 Pew poll, 55 percent judged it unfair. Disaffection was fairly even politically: 47 percent among Republicans, 58 percent among Democrats and 56 percent among independents.

So “tax reform” ought to be a cinch, right? Well, no.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Personal Finance • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • The National Deficit • Politics in General • Office of the President • President Barack Obama • Senate • * International News & Commentary • America/U.S.A.

A lingering fog of uncertainty at the Boeing Co. campus in North Charleston lifted Friday when the Federal Aviation Administration agreed to clear the company’s 787 Dreamliners to fly again.

The revolutionary jet has been grounded since January because of batteries that overheated on two of the planes.

Flights could resume within a week, the Associated Press reported.

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Filed under: * Culture-Watch • Law & Legal Issues • Science & Technology • * Economics, Politics • Economy • Corporations/Corporate Life • The U.S. Government • * South Carolina

Whatever struck you, provoked you, moved you; whatever part of it which you believe is most significant or worthy of further consideration. Remember the more specific you are, the more other blog reads can participate in what you say--KSH.

Filed under: * Culture-Watch • Blogging & the Internet • History • Law & Legal Issues • Police/Fire • Psychology • Religion & Culture • Urban/City Life and Issues • Violence • Young Adults • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • City Government • State Government • * International News & Commentary • Europe • Russia • * Theology • Anthropology • Ethics / Moral Theology

In the waning moments of daylight, police descended Friday on a shrouded boat in a Watertown backyard to capture the suspected terrorist who had eluded their enormous dragnet for a tumultuous day, ending a dark week in Boston that began with the bombing of the world’s most prestigious road race.

The arrest of 19-year-old Dzhokhar Tsarnaev of Cambridge ended an unprecedented daylong siege of Greater Boston, after a frantic night of violence that left one MIT police officer dead, an MBTA Transit Police officer wounded, and an embattled public — rattled again by the touch of terrorism — huddled inside homes....

“It’s a proud day to be a Boston police officer,” Police Commissioner Edward F. Davis told his force over the radio moments after the arrest. “Thank you all.”

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Filed under: * Culture-Watch • Law & Legal Issues • Police/Fire • Urban/City Life and Issues • Violence • Young Adults • * Economics, Politics • Economy • The U.S. Government • Politics in General • City Government • State Government • * International News & Commentary • America/U.S.A.

The search for one of the Boston Marathon bombing suspects -- the man seen wearing a white baseball cap -- this morning led to the sudden shutdown of the MBTA’s entire network of commuter rail, bus, and subway services.

State authorities also asked people who live in Watertown, Waltham, Newton, Belmont, Cambridge, and Allston-Brighton to stay home and for businesses in those cities and towns to stay closed.

“We are asking you to stay indoors, to stay in your homes for the time being,’’ Kurt Schwartz, who leads the state’s homeland security department, said at a 6 a.m. press conference today. “We are asking business in those areas to cooperate and not open today until we can provide further guidance.’’

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Filed under: * Culture-Watch • Law & Legal Issues • Police/Fire • Urban/City Life and Issues • Violence • * Economics, Politics • Economy • The U.S. Government • Politics in General • City Government • * Theology • Ethics / Moral Theology

The FBI today released photos and video of two suspects in the deadly Boston Marathon terror bombings case, appealing to the public to help law enforcement officials find them.

“Somebody out there knows these individuals,” said Richard DesLauriers, special agent in charge of the Boston FBI office. He said the two men are considered “armed and dangerous.”

DesLauriers described the two men as Suspect No. 1 and Suspect No. 2. Suspect No. 1 was wearing a dark hat. Suspect No. 2 was wearing a white hat.

DesLauriers said Suspect No. 2 was observed planting a bomb, leaving it in place shortly before it went off.

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Filed under: * Culture-Watch • Blogging & the Internet • --Social Networking • Law & Legal Issues • Police/Fire • Science & Technology • Urban/City Life and Issues • Violence • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Terrorism

Commodity prices have been falling since September, culminating in a rout over the past two weeks. That is a classic warning for the global economy.

It is becoming ever clearer that the roaring boom in global equities since last summer has priced in an economic recovery that does not in fact exist. The International Monetary Fund has had to nurse down its global growth forecasts yet again. We are still stuck in an old-fashioned trade depression, with pervasive over-capacity in manufacturing plant and a record global savings rate of 25pc of GDP.

German car sales fell 17pc in March. That should puncture the last illusions that Germany is about to pull Europe out of a self-inflicted slump.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Personal Finance • Stock Market • The U.S. Government • Federal Reserve • * International News & Commentary • Asia • Japan

Senate Finance Committee Chairman Max Baucus, one of the health reform law's chief authors, says he’s worried about a “huge train wreck coming down” if the Obama administration doesn’t improve its public outreach about the legislation.

Baucus, a Montana Democrat who is up for reelection in 2014, sharply criticized the administration’s outreach efforts in a budget hearing on Wednesday. He told Health and Human Services Secretary Kathleen Sebelius that people and businesses “have no idea what to do, what to expect” from the law.

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • The U.S. Government • Medicare • Politics in General • Senate • State Government • * Theology • Ethics / Moral Theology

There is a great graphic here and some comment there.

Filed under: * Culture-Watch • Aging / the Elderly • Health & Medicine • Middle Age • Teens / Youth • Young Adults • * Economics, Politics • Economy • Consumer/consumer spending • Personal Finance • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • * Theology • Ethics / Moral Theology

The powerful blasts at the Boston Marathon finish line Monday underscore why the Federal Bureau of Investigation has spent years refining its "tripwire'' system for catching would-be bomb makers before they can build a deadly device.

For years, federal agents have asked businesses that sell materials useful in making bombs to alert authorities to any suspicious orders. The types of tripwires in place have shifted over the years. In the 1990s, law enforcement worried mostly about fertilizer-based bombs after such devices were used in the Oklahoma City attacks of April 1995. In the past decade, chemical-based bombs have come into focus as authorities adapt to the changing threat.

"The tripwires have certainly been successful in the past,'' said Don Borelli, a former counterterrorism official at the FBI who now works for Soufan Group.

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Filed under: * Culture-Watch • Law & Legal Issues • Police/Fire • Urban/City Life and Issues • * Economics, Politics • Defense, National Security, Military • Economy • Consumer/consumer spending • Corporations/Corporate Life • The U.S. Government • Terrorism

To tax reform advocates, the federal tax code is a shambling behemoth, its immense girth weighing down corporations and Jane and Joe Taxpayer alike. The code is more than 4 million words long and has been tweaked 4,680 times since 2001, or more than once a day, according to the Internal Revenue Service's National Taxpayer Advocate, whose job is to champion the poor schlubs who have to contend with the US tax system. Compliance takes more than 6 billion person-hours a year and costs $168 billion, the advocate's office reports.

Tax expenditures – the sober name for myriad loopholes, carve-outs, and incentives in the code – shield almost as much in revenue, at just over $1 trillion, as the $1.4 trillion collected each year.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Corporations/Corporate Life • Personal Finance • Taxes • The U.S. Government • Politics in General • House of Representatives • Office of the President • Senate • * Theology • Ethics / Moral Theology

Read it all.

Filed under: * Economics, Politics • Economy • Stock Market • Taxes • The U.S. Government • * International News & Commentary • America/U.S.A. • England / UK • Europe

The unexpectedly large number of American workers who piled into the Social Security Administration's disability program during the recession and its aftermath threatens to cost the economy tens of billions a year in lost wages and diminished tax revenues.

Signs of the problem surfaced Friday, in a dismal jobs report that showed U.S. labor force participation rates falling last month to the lowest levels since 1979, the wrong direction for an economy that instead needs new legions of working men and women to drive growth and sustain a baby boomer generation headed to retirement.

Michael Feroli, chief U.S. economist for J.P. Morgan, estimates that since the recession, the worker flight to the Social Security Disability Insurance program accounts for as much as a quarter of the puzzling drop in participation rates, a labor exodus with far-reaching economic consequences.

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Filed under: * Culture-Watch • Health & Medicine • Middle Age • * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • The U.S. Government • Medicare • Social Security • * Theology

Opponents of same-sex marriage resist it because it amounts to redefining marriage, but also because it will invite future redefinitions. If we embrace same-sex marriage, they argue, society will have surrendered any reasonable grounds on which to continue forbidding polygamy, for example.

In truth, proponents of same-sex marriage have never offered a very good response to this concern. This problem was highlighted at the Supreme Court last week in oral argument over California’s Proposition 8, the state constitutional amendment that defines marriage as a union of a man and a woman.

Surprisingly, the polygamy problem that same-sex marriage presents was raised by an Obama appointee, the liberal Justice Sonia Sotomayor. Sotomayor interrupted the presentation of anti-Prop 8 litigator Theodore Olson to pose the following question: If marriage is a fundamental right in the way proponents of same-sex marriage contend, “what state restrictions could ever exist,” for example, “with respect to the number of people . . . that could get married?”

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Filed under: * Culture-Watch • History • Law & Legal Issues • Marriage & Family • Sexuality • --Civil Unions & Partnerships • * Economics, Politics • Economy • The U.S. Government • Politics in General • State Government • * International News & Commentary • America/U.S.A. • * Theology • Anthropology • Ethics / Moral Theology

American employers hired at the slowest pace in nine months in March, a sign that Washington's austerity drive could be stealing momentum from the economy.

The economy added just 88,000 jobs last month and the jobless rate ticked a tenth of a point lower to 7.6 percent largely due to people dropping out of the work force, Labor Department data showed on Friday.

Analysts polled by Reuters had expected a gain of 200,000.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government

MarketWatch: Since Nixon’s “abomination” as you call it, we have had some periods where government spending to GDP actually went down, like during the Clinton era. Doesn’t that show it’s just the choices made by Congress rather than the Fed to blame [for the problem of rising national debt as a % of GDP]?

Stockman: There is the issue that Congress ultimately is the fiscal authority. But my argument is, when the Fed becomes a massive buyer of bonds and debt and artificially suppresses interest rate below market-clearing levels, it’s a terrible signal to the Congress that debt is cheap, that running deficits is a viable strategy. So therefore they are induced to kick the can, to let it drift and avoid hard choices. Who wants to tell the public you are going to take your broccoli of higher taxes and lower benefits and spending if you can issue debt on a three-year basis for 40 basis points. That’s free. I was in Congress, they don’t do decimal math, OK? And they think the money is free, it’s a bad problem philosophically, we shouldn’t be doing this for the great long run, but it’s no harm today.

Then they have professors like Krugman who give them the disingenuous advice that the bond vigilantes don’t care. The market is saying, “fine with us, we don’t care, keep piling the debt on, we love it.” That is so much baloney. The reason the interest rate on the 10-year bond 10_YEAR -0.33% today is 1.8% or whatever it happened to settle today, is the market knows the Fed is buying half of the debt and is front running the Fed. And it is renting the bond on repo, 98 cents on the dollar, based on overnight money that’s free thanks to Bubbles Ben as well.

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Filed under: * Culture-Watch • History • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • The U.S. Government • Federal Reserve • The National Deficit • * International News & Commentary • America/U.S.A. • * Theology • Ethics / Moral Theology

The vast majority of U.S. businesses expanded at a slower pace, and private-sector firms hired less, adding to earlier warnings the economy is losing momentum.

The Institute for Supply Management said Wednesday its nonmanufacturing index fell to a seven-month low of 54.4 in March from 56 in February, indicating activity cooled off. Analysts expected it to remain steady. The report saw sharp decelerations in jobs, orders and exports.

ISM's factory gauge out Monday also showed slowing growth .

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • The U.S. Government

Thanks largely to the U.S. Federal Reserve, Jeffrey Nelson was able to put up a shotgun as down payment on a car.

Money was tight last year for the school-bus driver and neighborhood constable in Jasper, Alabama, a beaten-down town of 14,000 people. One car had already been repossessed. Medical bills were piling up.

And still, though Nelson's credit history was an unhappy one, local car dealer Maloy Chrysler Dodge Jeep had no problem arranging a $10,294 loan from Wall Street-backed subprime lender Exeter Finance Corp so Nelson and his wife could buy a charcoal gray 2007 Suzuki Grand Vitara.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Personal Finance • The U.S. Government • Federal Reserve

The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Housing/Real Estate Market • Personal Finance • The Banking System/Sector • The U.S. Government • Politics in General • Office of the President • President Barack Obama

A new fight is brewing over health insurance companies letting millions of Americans renew their current coverage for another year — and thereby avoid changes under the federal healthcare law.

That may offer a short-term benefit for certain consumers and shield some of those individual policyholders from potentially steep rate increases. But critics say this maneuver could undermine government efforts to remake the insurance market next year and keep premiums affordable overall.

At issue is a little-known loophole in President Obama's landmark legislation that enables health insurers to extend existing policies for nearly all of 2014. This runs contrary to the widespread belief that all health insurance must immediately comply with new federal rules starting Jan. 1, when most provisions of the law take effect.

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • Law & Legal Issues • * Economics, Politics • Economy • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The U.S. Government • Politics in General • State Government

Richard Bejtlich was a cyber-specialist for the U.S. Air Force in the 1990s, a time when the U.S. military was going on the offense in the cyberwar. He remembers the day he realized how important a software vulnerability can be to a cyberweapons designer.

"Myself and a couple other guys, we found a zero day vulnerability in Cisco routing equipment," Bejtlich recalls. "And we looked at it, and we said, 'Did we really find this? Can we really get into these Cisco routers?'"

They could, and so Bejtlich and his colleagues reported it to Cisco. They thanked him and said they'd fix it. Days later, he was talking to some friends who worked on the offensive side of the unit, and they had quite a different reaction to them reporting the bug to Cisco.

"They said, 'You did what? Why didn't you tell us? We could have used this to get into all these various hard targets,'" he says.

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On Jan. 30, the Obama administration unveiled a long list of exemptions from the ObamaCare insurance mandate. Flaws and contradictions in the law will cause millions of people to be uninsured. The administration also estimated that the cheapest family plan will cost $20,000 by 2016. This new information indicates that the Affordable Care Act is failing in both goals: making insurance affordable and covering the uninsured.

Children are the biggest victims. The hastily drafted law, passed before it was read, overlooked them.

The law says that beginning in 2014, employers with 50 or more full-time employees must offer coverage or pay a penalty. The law's sloppy drafting left it unclear whether that meant worker's coverage or family coverage.

Read it all from IBD.

Filed under: * Culture-Watch • Children • Health & Medicine • --The 2009 American Health Care Reform Debate • Law & Legal Issues • * Economics, Politics • Economy • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The U.S. Government • Politics in General • House of Representatives • Office of the President • Senate

Budget constraints are prompting the U.S. Navy to cut back the number of aircraft carriers in the Persian Gulf region from two to one, the latest example of how contentious fiscal battles in Washington are impacting the U.S. military.

According to Defense Department officials, the USS Harry S. Truman, which was set to leave for the Persian Gulf region on Friday, will now remain stateside, based in Norfolk, Virginia.

Defense Secretary Leon Panetta ordered the change to the department’s “two-carrier policy” in the Persian Gulf region early Wednesday.

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Filed under: * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Budget • * International News & Commentary • Middle East • Egypt

The CBO forecast finds a persistent mismatch between tax revenue and spending over the coming decade. As the economy improves, tax revenue should rise to 19 percent of GDP for the period from 2015 through 2023, up from 15.8 percent in 2012, the report said. But federal spending, after an early-decade dip, will start rising persistently faster than revenues.

"After 2017, if current laws remain in place, outlays will start growing again as a percentage of GDP," the CBO said. "The aging of the population, increasing health care costs, and a significant expansion of eligibility for federal subsidies for health insurance will substantially boost spending for Social Security and for major health care programs relative to the size of the economy."

The CBO's current-law "baseline" calls for spending to reach about 23 percent of GDP in 2023 and, more worrisome, to be "on an upward trajectory."

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Update: An IBD article is also available on this, entitled "CBO Report Shows We're Still Headed Toward A Fiscal Cliff" and it may be found there.

Filed under: * Culture-Watch • Aging / the Elderly • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

...the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.

These Americans in their 50s and early 60s — those near retirement age who do not yet have access to Medicare and Social Security — have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.

Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”

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Filed under: * Culture-Watch • Aging / the Elderly • Health & Medicine • Psychology • * Economics, Politics • Economy • Labor/Labor Unions/Labor Market • Personal Finance • Pensions • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Medicare • Social Security • * Theology • Ethics / Moral Theology

The U.S. economy shrank for the first time in more than three years in the fourth quarter, underscoring the halting nature of the recovery. But the strength of consumer spending and business investment suggested that the economy will grow, albeit slowly, this year.

Gross domestic product—the broadest measure of goods and services churned out by the economy—fell at a 0.1% annual rate in the fourth quarter of 2012, according to the government's initial estimate out Wednesday.

The details weren't as discouraging as the headline. The drop, a surprise, was driven by a sharp fall in government spending and by businesses putting fewer goods on warehouse shelves, as well as by a decline in exports. The mainstays of the domestic private economy—housing, consumer spending and business investment in equipment and software—were stronger.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The U.S. Government • Budget • * International News & Commentary • America/U.S.A.

Every day more than 1.5 million Ohioans, nearly 14 percent of our population, wake up without health insurance coverage. As a result, many of them go without treatment until their condition becomes more severe and more costly to address. Often when they do seek treatment, it is in the most expensive way possible: through emergency rooms and hospitals. The cost of caring for the uninsured falls to everyone. Those with health coverage pay more in treatment costs, and we all pay more in taxes to support local and state public health programs.

This budget cycle the Governor and legislature have an opportunity to control health care costs for the benefit of all Ohioans by expanding our Medicaid program, as provided for in the federal Affordable Care Act (ACA). To do so is consistent with Gov. Kasich's efforts over the last two years to transform Medicaid in Ohio - reducing costs and improving the program's efficiency.
As Christian leaders, we hear the call of Jesus to reach out to the poor and those on the margins of society. We believe that Medicaid Expansion will help stabilize health care to the poor and marginalized among us. We are leaders of a faith community that believes all are equal in the sight of God.

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Filed under: * Anglican - Episcopal • Episcopal Church (TEC) • TEC Bishops • * Culture-Watch • Health & Medicine • * Economics, Politics • Economy • The U.S. Government • Budget • Medicare

The $1.2tn in automatic spending cuts that Barack Obama once promised to avert are looking increasingly likely to occur because of entrenched politics in Washington, threatening a shock to confidence in the US economy.

Economists have long assumed that the so-called sequester – a budgetary mechanism passed in 2011 that takes effect on March 1 and slashes the Pentagon’s budget by $600bn over 10 years while cutting discretionary spending for government programmes by another $600bn – would be replaced or reversed by Congress.

Many saw a recent move by Republicans on Capitol Hill to extend the US borrowing authority as a sign of greater co-operation with the White House. But conservative lawmakers have recently made it clear that they were simply gearing up for another fight, and are prepared to take a hard line on the $1.2tn in cuts even amid objections from military hawks.

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Filed under: * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Budget • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

One would have hoped that the Seattle opinion and common sense would be sufficient, but FEMA has apparently reverted to a position that provides less than full participation for religious institutions. Its reasons for doing so are not entirely clear but seem to include a mix of constitutional, statutory and regulatory concerns.

Many of these concerns should have been put to rest by the Oklahoma City experience and Congress's approval of aid to religious organizations there. Nobody suggests that government should entirely rebuild sanctuaries or pay for the printing of prayer books. But if roofs are being repaired and other structural damage is being remediated, the religious nature of what might occur below shouldn't matter. That is consistent with the reasoning of a 2003 Justice Department opinion that permitted the federal government to provide assistance to help restore the landmarked Old North Church in Boston.

In essence, federal disaster relief is a form of social insurance meant to help repair a tear in our social fabric. Houses of worship are an important part of that social fabric and are often where people turn for comfort and support after a disaster. After Hurricane Sandy, they are equally in need of repair and should be equally eligible for assistance.

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Filed under: * Culture-Watch • Law & Legal Issues • Church/State Matters • Religion & Culture • * Economics, Politics • Economy • The U.S. Government • Politics in General • * General Interest • Natural Disasters: Earthquakes, Tornadoes, Hurricanes, etc.

NARRATOR: Depending on the situation, the decision to kill comes from an intelligence officer who could be anywhere, a battle commander on the ground, or sometimes the pilot.

JEFFREY BROWN: Since the Obama administration came to power four years ago, the United States has vastly increased the number of drone strikes against suspected terrorists.

Just today, Reuters reported that six suspected al-Qaida militants were killed in Yemen. But their use has been highly controversial, on a number of levels.

And we move to that debate now, with Seth Jones, who worked for the commander of U.S. special forces in Afghanistan from 2009 to 2011 and is now a senior political scientist at the RAND Corporation, and Chris Anders, senior legislative counsel at the American Civil Liberties Union....

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Filed under: * Culture-Watch • Globalization • Law & Legal Issues • Science & Technology • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Foreign Relations • Politics in General • Terrorism • * Theology • Ethics / Moral Theology

Boeing Co on Thursday said it was working around the clock to resolve issues that have grounded the entire global fleet of the company's new 787 Dreamliner for over eight days, and underscored its regret about the issue.

Boeing said it welcomed Thursday's briefing on the 787 investigation by the U.S. National Transportation Safety Board and said it continued to assist the NTSB and the other government agencies investigating two recent 787 incidents.

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Filed under: * Culture-Watch • Law & Legal Issues • Science & Technology • Travel • * Economics, Politics • Economy • Corporations/Corporate Life • The U.S. Government

Governments continue to ask Google for more data about its users, with more than two-thirds of requests in the U.S. made through a subpoena, which usually doesn't require asking a judge for a search warrant.

User data requests of all kinds have increased by more than 70 percent since 2009, Google said in its biannual "transparency report" that tallies government requests for users' data. For the six months from July through December 2012, the company said it has received about 21,389 information requests for some 33,634 users -- up slightly from 20,938 requests for 34,615 users during the first half of the year.

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Filed under: * Culture-Watch • Blogging & the Internet • Science & Technology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • The U.S. Government • Foreign Relations • Politics in General • * Theology • Ethics / Moral Theology

We agree with Obama that it will take a combination of tax increases and spending cuts to put the government's fiscal house in order. Republicans swallowed hard and accepted an increase in tax rates for the highest incomes to start the year. It's the Democrats' turn to recognize that federal benefit programs, and particularly healthcare entitlements such as Medicare and Medicaid, are on an unsustainable path despite the savings from the 2010 healthcare law.

Obama should lead a Democratic push for reforms that preserve these programs for those who need them, while also reducing the deficit and stopping the federal debt from growing faster than the economy. He's in the best position to lead on this issue, able to provide political cover for Democrats concerned that their constituents won't put up with changes to the status quo, while showing Republicans that there are ways to save money without abandoning the government's commitment to the elderly and poor. To create an opening for the rest of his agenda, he needs to step up to that role.

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Filed under: * Culture-Watch • Aging / the Elderly • Health & Medicine • * Economics, Politics • Economy • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

Top officials at the US Federal Reserve took months to realise that the 2007 financial crisis would rock the world’s largest economy, according to an embarrassing set of meeting transcripts released on Friday.

The transcripts reveal that some Fed policy makers viewed the market turmoil, which erupted in August 2007 on the back of problems in the market for subprime mortgage loans, as good news because markets were pricing in more risk.

The records of the Federal Open Market Committee’s 2007 meetings, which are released with a five-year delay, raise the question of whether the recession would have been less severe if the Fed had reacted faster instead of continuing to forecast steady growth.

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Update: A Washington Post article is here.

Filed under: * Culture-Watch • History • * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

A political class that botched the fiscal cliff so badly are not going to be capable of a gigantic deal on complex issues. It’s like going into a day care center and asking a bunch of infants to perform “Swan Lake.”

--David Brooks in a piece on today's NY Times Op-ed page entitled "The Next Four Years"

Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Pastoral Theology

Last week, a fire on a Japan Airlines Boeing 787 Dreamliner parked in Boston prompted American regulators to launch a comprehensive review of the new jet program. But they maintained the plane was safe and allowed it to keep flying during their unusual if not unprecendented re-examination.

That changed Wednesday after pilots on an All Nippon Airways 787 had to make an emergency landing after another smoky battery malfunction. Before the day was over, the FAA had grounded Boeing’s technologically advanced jetliner, declaring that it won’t fly again until the onboard batteries are proven to be safe.

“Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the Federal Aviation Administration ... that the batteries are safe and in compliance,” the U.S. agency said in a statement accompanying its emergency airworthiness directive.

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Filed under: * Culture-Watch • Science & Technology • Travel • * Economics, Politics • Economy • Corporations/Corporate Life • The U.S. Government • * South Carolina • * Theology • Ethics / Moral Theology

Public debt as a percentage of gross domestic product was around 38 percent in 1965. It is around 74 percent now. Debt could approach a ruinous 90 percent of G.D.P. in a decade and a cataclysmic 247 percent of G.D.P. 30 years from now, according to the Congressional Budget Office and JPMorgan.

By 2025, entitlement spending and debt payments are projected to suck up all federal revenue. Obligations to the elderly are already squeezing programs for the young and the needy. Those obligations will lead to gigantic living standard declines for future generations. According to the International Monetary Fund, meeting America’s long-term obligations will require an immediate and permanent 35 percent increase in all taxes and a 35 percent cut in all benefits....

[The final 'solution didn't] involve a single hard decision. It did little to control spending. It abandoned all of the entitlement reform ideas that have been thrown around.

Whom should we blame for this? Again, we should not blame Obama and Boehner. In their different ways, they and a number of other people in the Congress are trying to find a politically palatable way to deal with these hard issues. They got what conditions allowed.

Ultimately, we should blame the American voters. The average Medicare couple pays $109,000 into the program and gets $343,000 in benefits out, according to the Urban Institute. This is $234,000 in free money. Many voters have decided they like spending a lot on themselves and pushing costs onto their children and grandchildren. They have decided they like borrowing up to $1 trillion a year for tax credits, disability payments, defense contracts and the rest. They have found that the original Keynesian rationale for these deficits provides a perfect cover for permanent deficit-living. They have made it clear that they will destroy any politician who tries to stop them from cost-shifting in this way.

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Filed under: * Culture-Watch • Aging / the Elderly • Health & Medicine • History • Psychology • * Economics, Politics • Economy • Taxes • The U.S. Government • Medicare • Social Security • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

A large and growing share of American workers are tapping their retirement savings accounts for non-retirement needs, raising broad questions about the effectiveness of one of the most important savings vehicles for old age.

More than one in four American workers with 401(k) and other retirement savings accounts use them to pay current expenses, new data show. The withdrawals, cash-outs and loans drain nearly a quarter of the $293 billion that workers and employers deposit into the accounts each year, undermining already shaky retirement security for millions of Americans.

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Filed under: * Christian Life / Church Life • Parish Ministry • Stewardship • * Economics, Politics • Economy • Consumer/consumer spending • Labor/Labor Unions/Labor Market • Personal Finance • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • * Theology • Ethics / Moral Theology

In the House, the majority Republican party says it won't raise the debt limit without spending cuts of equivalent amounts. Mr. Obama has said he won't negotiate over the matter, saying it is the responsibility of Congress to enable the government to pay bills it has incurred.

The government spends 40% more than it takes in and borrows money to cover the difference. Without an increase in the debt ceiling, the Treasury won't be able to borrow the additional money needed to pay all its bills.

Failure to make payment on even some of its obligations could wreak havoc in the economy and financial markets and possibly trigger another financial crisis and recession, analysts have warned.

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Filed under: * Economics, Politics • Economy • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

The Congressional Budget Office projects that over the next decade Social Security's annual cash deficit will rise by nearly $100 billion, reaching $155 billion a year. The cost of servicing the extra public debt tied to cashing in $1 trillion worth of Social Security's intragovernmental IOUs over the 10 years would add $40 billion to the deficit in 2022 alone, an IBD analysis finds.

Overall, Social Security would account for nearly $200 billion in annual deficits or nearly 20% of the $1 trillion-plus deficit that would occur under current policies, including fiscal-cliff tax hikes.

Then, over the following decade, the retirement program's impact on deficits would really balloon.

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Filed under: * Culture-Watch • Aging / the Elderly • History • * Economics, Politics • Economy • The U.S. Government • Budget • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

On top of the possible employment losses, what messages are we sending when the government penalizes marriage at any level? One message is clear. The decision by Congress to impose a marriage penalty only discourages couples from getting married and subsidizes cohabiting households. The Marriage and Religion Research Institute studies the social science data and research on the impacts of marriage and religious practice on the lives of children and the future of the nation. Statistics show that homes headed by married couples are less likely to need government assistance. Analyzing the data, they have found that children in homes headed by married couples are more likely to be higher-achieving students and better citizens, and are less likely to become dependent on the failing government subsidy system.

Add in the higher taxes (an average of $2,425 per employee) from the 2 percent tax increase in everyone’s paychecks to pay for Social Security and the myriad tax increases all families will pay thanks to the malady known as Obamacare, and it is likely that families will end this year with their own personal fiscal cliffs. If Congress is serious about tax reform, easing the burdens on all families should be at the center of any transformation.

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Filed under: * Culture-Watch • Marriage & Family • * Economics, Politics • Economy • Personal Finance • Taxes • The U.S. Government • Politics in General • City Government • Office of the President • Senate • * Theology • Ethics / Moral Theology

Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.

In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers’ filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.

In other states, like Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • The U.S. Government

There are two major reasons for Medicare’s rising costs. The first is the program’s design, often tweaked but left fundamentally intact since its creation in 1965, which basically pays doctors and hospitals fixed fees for whatever they do. At a time of rapid (and often beneficial) medical innovation, the dominant incentive has been to provide more, and more expensive, care. Hence the House Ways and Means Committee’s 1965 estimate that Medicare hospital insurance would cost $9 billion by 1990 fell short by $58 billion. The second reason costs keep going up, of course, is the rising number of elderly eligible for Medicare, which is inevitable; the 50 million beneficiaries today will be 78 million in 2030.

The ultimate solution is structural: to limit growth in expenditures per beneficiary. Easier said than done. Liberals would empower the Independent Payments Advisory Board (IPAB) to stop payment for treatments it deems not cost-effective. The idea hasn’t gotten very far, partly because Republicans denounce it as “rationing.” Conservatives favor “premium support,” which would subsidize seniors to shop among competing insurance plans, but Democrats, the president included, have tarred that idea as a skimpy “voucher.”

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Filed under: * Culture-Watch • Health & Medicine • * Economics, Politics • Economy • The U.S. Government • Medicare • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

For the first time in more than a quarter-century, Social Security ran a deficit in 2010: It spent $49 billion dollars more in benefits than it received in revenues, and drew from its trust funds to cover the shortfall. Those funds — a $2.7 trillion buffer built in anticipation of retiring baby boomers — will be exhausted by 2033, the government currently projects.

Those facts are widely known. What’s not is that the Social Security Administration underestimates how long Americans will live and how much the trust funds will need to pay out — to the tune of $800 billion by 2031, more than the current annual defense budget — and that the trust funds will run out, if nothing is done, two years earlier than the government has predicted.

We reached these conclusions, and presented them in an article in the journal Demography, after finding that the government’s methods for forecasting Americans’ longevity were outdated and omitted crucial health and demographic factors. Historic declines in smoking and improvements in the prevention and treatment of cardiovascular disease are adding years of life that the government hasn’t accounted for. ...

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Filed under: * Economics, Politics • Economy • The U.S. Government • Social Security

While many in Washington are breathing a sigh of relief and some are trying to spin the outcome as a win for the president, those who characterize this bill as a genuine victory for anyone at all have clearly lost perspective. The deal brokered by Vice President Joe Biden and Senate Minority Leader Mitch McConnell does make good on President Obama's promise to bring a little more equity to the tax code by raising rates on wealthier Americans, and it temporarily averts the most draconian "sequestration" cuts. But the list of what it does not do, and what it does wrong, is long.

By midday Tuesday, the Congressional Budget Office had concluded that the Biden-McConnell package would add nearly $4 trillion to federal deficits over the next 10 years. This was largely because it actually extends and makes permanent more than 80% of the Bush tax cuts. So much for the idea that this whole struggle was supposed to help America get its financial house in order.

Just as bad, or perhaps worse in terms of the day-to-day lives of average people, the bill only postpones the forced cuts of sequestration by two months, to precisely the moment the country will be engaged in another ruinous debate about lifting our national debt ceiling to ensure the country can pay its bills. It thus creates a new, even more dangerous fiscal cliff....

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Update: George Will has also written on this I see--Perils Of The Entitlement State And Our Decadent Democracy.

Filed under: * Economics, Politics • Economy • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

Congress' hectic resolution of the "fiscal cliff" crisis is the latest in a long series of decisions by lawmakers and the White House to do less than promised — and to ask Americans for little sacrifice — in confronting the nation's burgeoning debt.

The deal will generate $600 billion in new revenue over 10 years, less than half the amount President Barack Obama first called for. It will raise income tax rates only on the very rich, despite Obama's campaign for broader increases.

It puts off the toughest decisions about spending cuts for military and domestic programs, including Medicare and Social Security. And it does nothing to mitigate the looming partisan showdown on the debt ceiling, which must rise soon to avoid default on U.S. loans.

In short, the deal reached between Obama and congressional Republicans continues to let Americans enjoy relatively high levels of government service at low levels of taxation. The only way that's possible, of course, is through heavy borrowing, which future generations will inherit.

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

The budget deal passed by the U.S. Senate [and House]... would raise taxes on 77.1 percent of U.S. households, mostly because of the expiration of a payroll tax cut, according to preliminary estimates from the nonpartisan Tax Policy Center in Washington.

More than 80 percent of households with incomes between $50,000 and $200,000 would pay higher taxes. Among the households facing higher taxes, the average increase would be $1,635, the policy center said. A 2 percent payroll tax cut, enacted during the economic slowdown, is being allowed to expire as of [December 31]

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Personal Finance • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Congress approved a plan to end Washington’s long drama over the “fiscal cliff” late Tuesday after House Republicans surrendered to President Obama’s demand to let taxes rise on the nation’s richest households.

The House voted 257 to 167 to send the measure to Obama for his signature; the vote came less than 24 hours after the Senate overwhelmingly approved the legislation.

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Update: Here are the new numbers for 2013 in Congress--Democrats control of the Senate by 55 to 45 (change of 2) and Republicans control of the House of Representatives by 234-201 (change of 8)

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

A US Senate-backed deal [by a vote of 89-8] to stave off a "fiscal cliff" of drastic taxation and spending measures has passed to the House of Representatives.

President Barack Obama has urged the House to pass the bill "without delay".

However, several representatives have spoken out against it, with one calling it "bad for America".

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Senate leaders are racing against the clock to reach a "fiscal cliff" deal the House and Senate can approve on New Year's Eve.

Leaders in the upper chamber narrowed their differences Sunday as Republicans agreed to drop a demand to curb cost-of-living increases to entitlement benefits, while Democrats showed flexibility on taxes.

Yet after months of talks on ways to avoid the fiscal cliff of tax hikes and spending cuts at the end of 2012, House and Senate lawmakers find themselves approaching the new year without a bill to present to their members.
Significant differences remain over two key parts of a deal — the automatic spending cuts known as the sequester and the estate tax.

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Update: a BBC article is there.

I will take comments on this submitted by email only to at KSHarmon[at]mindspring[dot]com.

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Understanding the developing attitude of the central banks, and the effects of their actions, obviously remains central for investors in all financial assets. The “big picture” for global financial assets, involving very low government bond yields and a gradual shift of risk appetite into credit and equities, is unlikely to change until one of two events takes place.

The first would be a decision by the central bankers themselves that the era of unlimited quantitative easing must end, either because of the risk of inflation and asset price bubbles, or because of concerns about fiscal dominance over the monetary authorities. The second would be a realisation by the markets that further action by the central bankers is irrelevant because they have run out of effective ammunition. Either of these events would probably remove the central prop from the equity bull market which began in March, 2009, but neither seems very likely in 2013.

There is certainly no sign that the central bankers themselves will call a halt to the extension of their balance sheets.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Euro • European Central Bank • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve • The United States Currency (Dollar etc) • Politics in General • * International News & Commentary • America/U.S.A. • Asia • China • Japan • Europe • --European Sovereign Debt Crisis of 2010

When President Obama talks about taxing the rich, he means the top 2 percent of Americans. John A. Boehner, the House speaker, talks about an even thinner slice. But the current and future fiscal imbalances are too large to exempt 98 percent or more of the public from being part of the solution.

Ultimately, unless we scale back entitlement programs far more than anyone in Washington is now seriously considering, we will have no choice but to increase taxes on a vast majority of Americans. This could involve higher tax rates or an elimination of popular deductions. Or it could mean an entirely new tax, such as a value-added tax or a carbon tax.

To be sure, the path ahead is not easy. No politician who wants to be re-elected is eager to entertain the possibility of higher taxes on the middle class. But fiscal negotiations might become a bit easier if everyone started by agreeing that the policies we choose must be constrained by the laws of arithmetic.

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Filed under: * Economics, Politics • Economy • Personal Finance • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Whether or not there is a deal, the weeks since the election have produced a stark display of political gridlock. "The government is not working," said Steve Bell, senior director of the Bipartisan Policy Center, who was a senior budget adviser to Senate Republicans for many years. "There is no doubt that the policy-making apparatus in this town has collapsed."

Following the tea-party wave in the 2010 election, the 112th Congress looks set to be the least productive in recent history. By the end of November, the House had passed 146 bills over the previous two years, by far the smallest number for any Congress since 1948. The Senate passed fewer bills in 2012 than in any year since at least 1992.

Rather than smoothing over differences, the November election appears to have hardened them. "We came out of the election with both sides thinking they won and had an equal mandate," said Ross Baker, a professor at Rutgers University who is now interviewing lawmakers on Capitol Hill for a book on bipartisanship. "One problem is we don't have a common narrative to guide us."

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I will take comments on this submitted by email only to at KSHarmon[at]mindspring[dot]com.

Filed under: * Culture-Watch • History • Psychology • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * International News & Commentary • America/U.S.A.

A long line of America's top chief executives have rotated through Washington in recent weeks, loudly urging lawmakers and the White House to reach a broad deal to fix the budget. They once sounded optimistic. Now many of them aren't talking, and if they are, they're gloomy.

Mark Bertolini, chief executive of health-insurance company Aetna Inc., called the state of play "pitiful and embarrassing," saying the chances are growing that a deal might not be reached by the end of the year to avert $500 billion in tax increases and spending cuts.

"Set aside my interest as the CEO of a participant in the economy here—as an American, I'm embarrassed if that's where we end up," Mr. Bertolini said in an interview. "It feels like it's starting to fall apart."

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Filed under: * Economics, Politics • Economy • Corporations/Corporate Life • Taxes • The U.S. Government • Budget • Medicare • Social Security • Politics in General • House of Representatives • Office of the President • President Barack Obama • State Government

It is time, instead, to address one aspect of American exceptionalism of which I am not proud. We are the only advanced nation where medical bankruptcies are routine - as are deaths due to lack of access to proper health care.

And the worst part of the latter is the fact that mental health care is particularly unavailable to anyone who is not wealthy, or lucky enough to have mental health coverage through her or his insurance.

Persons with mental health problems need to be identified and helped....

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • Psychology • * Economics, Politics • Economy • Personal Finance • The U.S. Government • * International News & Commentary • America/U.S.A. • * Theology • Ethics / Moral Theology

The shape of a deal to avert the US fiscal cliff is at last emerging, with at least $1tn in new taxes, up to $1tn in fresh spending cuts and an increase in America’s debt ceiling, as negotiators scramble to reach an agreement before the end-of-the-year deadline.

Barack Obama, US president, and John Boehner, Republican speaker of the House of Representatives, held their third face-to-face meeting in eight days at the White House amid signs of growing momentum in the talks. If they strike a deal in the coming days, and are able to pass it through Congress, it would remove a huge cloud of uncertainty hanging over the global economy.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The U.S. Government • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

The actions on the eve of the Fed’s centenary year underscore Bernanke’s hallmark commitment to experimentation and forceful action, derived in part from his research showing too little monetary stimulus produced large economic costs for the U.S. in the 1930s and for Japan in the 1990s. He called the current state of the labor market, with unemployment at 7.7 percent, “an enormous waste of human and economic potential” and said the benefits of more bond buying outweigh the potential risks.

“Bernanke is pulling out all the stops to kick this economy back into a higher gear,” said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “They are buying everything in sight -- Treasuries, mortgage-backed securities -- and will keep rates low until everyone who wants a job has one.”

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Update: Brian Milner has some interesting thoughts on this there.

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

The Federal Reserve refashioned its bond-buying programs on Wednesday, extending its far-reaching effort to revitalize the jobs market and boost the economic recovery into 2013.

In addition, the Fed shifted its communications strategy by specifying the levels of unemployment and inflation that might prompt it to begin raising short-term interest rates, which are now near zero.

The central bank's policy committee, in its final meeting of the year, said Wednesday it would "initially" begin buying $45 billion of long-term Treasury bonds each month. The latest stimulus from the Fed will replace an expiring program known as "Operation Twist," in which the Fed has been buying about $45 billion of long-term Treasury bonds each month and selling about the same amount of short-term Treasurys.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Federal Reserve

Your medical plan is facing an unexpected expense, so you probably are, too. It’s a new, $63-per-head fee to cushion the cost of covering people with pre-existing conditions under President Barack Obama’s health care overhaul.

The charge, buried in a recent regulation, works out to tens of millions of dollars for the largest companies, employers say. Most of that is likely to be passed on to workers.

Employee benefits lawyer Chantel Sheaks calls it a “sleeper issue” with significant financial consequences, particularly for large employers.

Read it all from the front page of yesterday's local paper.

Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Labor/Labor Unions/Labor Market • Personal Finance • The U.S. Government

Budget negotiations between the White House and Republican House Speaker John Boehner have progressed steadily in recent days, people close to the process said, breathing life into talks that appeared to have stalled.

Both sides still face sizable differences before any agreement might be reached by the end of the year, and talks could well falter again over such controversial issues as taxes and Medicare before any deal is ultimately reached.

The people familiar with the matter say talks have taken a marked shift in recent days as staff and leaders have consulted, becoming more "serious." Both sides have agreed to keep details private, according to the people, who declined to detail where new ground was being broken.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Credit Markets • Currency Markets • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama

For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.

The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.

Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.

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Filed under: * Culture-Watch • Health & Medicine • --The 2009 American Health Care Reform Debate • * Economics, Politics • Economy • Taxes • The U.S. Government

From there:

[Here is a list of]...the most expensive tax breaks in the current tax code, based on what those breaks would cost the U.S. Treasury in lost revenue from 2013 to 2017:

1) Exclusion of employer contributions for medical insurance premiums & medical: $1 trillion

2) Mortgage interest deduction: $606 billion

3) Deduction for 401(k) plans: $429 billion

4) Accelerated depreciation of machinery & equipment: $375 billion

5) Exclusion of net imputed rental income: $337 billion

6) Capital gains: $321 billion

7) Charitable contributions: $293 billion

Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Taxes • The U.S. Government • Budget • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

....seasoned Washington hands say that once this rather gloomy back and forth has played out - and it might take another week or more - the work towards reaching a solution that both sides can sell to their parties and their lawmakers will begin in earnest.

A deal by Christmas, a week before the fiscal cliff deadline, remains uncertain but not out of the question. The so-called fiscal cliff is a combination of U.S. government spending cuts and tax increases due to be implemented under existing law in early 2013 that may cut the federal budget deficit but also tip the economy back into recession.

The pattern of little happening until very close to a holiday is well-established on Capitol Hill. The past three pre-Christmas seasons brought important eleventh-hour developments on health care in 2009, tax cut extensions in 2010 and the payroll tax holiday in 2011.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • Personal Finance • Stock Market • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

....President Obama's call for a return to Clinton-era tax rates is misleading: If the Bush upper-income tax cuts go away, tax rates will exceed those in place at the end of the 1990s.

The top effective federal marginal tax rate on work income would rise to roughly 44.6% from 37.9% in 2012.

That's higher than under President Clinton because of a 0.9-percentage-point Medicare payroll tax hike for upper-income households, which passed with Obama-Care and takes effect in January.

Tax rates on long-term capital gains also will be higher than when Clinton left office if Bush tax cuts expire as ObamaCare's new 3.8% Medicare tax on investment gains takes effect. Up to now, only wage and salary income has been subject to Medicare taxes.

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • * Theology • Ethics / Moral Theology

At first blush, it seems to make policy sense, too. The rich fabric of America’s civic life, from Boy Scouts to community orchestras to soup kitchens, is the envy of the world. Its diversity reflects in part how much it depends on private givers with diverse interests and motives, and not just on the government. Their giving is encouraged by the charitable deduction, enacted in 1917, just four years after the income tax itself. The deduction lets people feel they are beating the system even as they practice virtue.

But there’s a question of fairness that complicates the issue. Overwhelmingly, the deduction benefits the wealthy — and the rest of the country has to make up the gap.

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Filed under: * Culture-Watch • Charities/Non-Profit Organizations • * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

I listened to NPR yesterday for over an hour back and forth from a doctors appointment.

The entire time they talked about President Obama's proposal to implement the middle class tax cut now.
Everywhere I turn its middle class tax cut, middle class tax cut...

Except it isn't but no one thinks about these things.

What is being proposed is not letting the current tax code STAY THE SAME.
So 98% of Americans WON"T HAVE A TAX INCREASE.

Since when is not having an increase a cut?

Anyone you know say I am getting the same number of days vacation this year as last year I am angry I get a benefits cut!

Filed under: * By Kendall • * Economics, Politics • Economy • Personal Finance • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • Senate

President Obama’s re-election and Democratic gains in Congress were supposed to make it easier for the party to strike a deal with Republicans to resolve the year-end fiscal crisis by providing new leverage. But they could also make it harder as empowered Democrats, including some elected on liberal platforms, resist significant changes in entitlement programs like Social Security and Medicare.

As Congress returned Monday, the debate over those programs, which many Democrats see as the core of the party’s identity, was shaping up as the Democratic version of the higher-profile struggle among Republicans over taxes.

In failed deficit reduction talks last year, Mr. Obama signaled a willingness to consider substantial changes in the social safety net, including a gradual increase in the eligibility age for Medicare and limits in the growth rate of future Social Security benefits. An urgent question hanging over the new round of deficit talks is which of those changes Mr. Obama and Congressional Democrats would accept today....

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Filed under: * Economics, Politics • Economy • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

For the first time in decades, a bipartisan consensus has emerged in Washington to raise taxes. But negotiators working to avert the year-end “fiscal cliff” remain far apart on crucial details, including how taxes should go up and who should pay more.

Neither side gave ground in an opening round of staff-level talks last week at the Capitol. As President Obama and congressional leaders prepare for a second face-to-face meeting as soon as this week, the divide over taxes presents the biggest obstacle to replacing the heap of abrupt tax hikes and spending cuts, set to hit in January, with a less-traumatic debt-reduction plan.

People in both parties are exploring ideas for bridging the gap. Without a deal on taxes, there is not much hope for agreement on a broader strategy for restraining the national debt that also tackles the skyrocketing cost of federal retirement programs such as Social Security and Medicare.

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate

Among the many disconcerting leaps of logic taken by the federal government is the omission of food and fuel prices from its measures of the consumer price index — inflation. Somehow that doesn’t ease the bottom-line purchasing pain at the grocery store and the gas pump.

OK, so as of Friday, the average price of a gallon of regular had fallen by more than 30 cents over the last month.

Still, that was more than 6 cents higher than it was on that date a year ago — and nearly double what it was in early 2008.

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Filed under: * Culture-Watch • Dieting/Food/Nutrition • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • The U.S. Government • Energy, Natural Resources

Congressional negotiators, trying to avert a fiscal crisis in January, are examining ideas that would allow effective tax rates to rise for the wealthy without technically raising the top tax rate of 35 percent. They hope the proposals will advance negotiations by allowing both parties to claim they stood their ground.

One possible change would tax the entire salary earned by those making more than a certain level — $400,000 or so — at the top rate of 35 percent rather than allowing them to pay lower rates before they reach the target, as is the standard formula. That plan would allow Republicans to say they did not back down in their opposition to raising marginal tax rates and Democrats to say they prevailed by increasing effective tax rates on the rich. At the same time, it would provide an initial effort to reduce the deficit, which the negotiators call a down payment, as Congressional tax-writing committees hash out a broad overhaul of the tax code.

That idea could be combined with the reinstatement of tax code provisions that once prevented the rich from taking personal exemptions or itemizing deductions. Those rules were eliminated by the tax cut of 2001. Reinstating them would tack an additional one to two percentage points onto the effective tax rates of high-income households without raising the 35 percent rate, but which households would be affected has not been decided. In all, tax experts say, families in the top tax bracket would find their effective tax rate jump to 41 percent, even though the top statutory rate would remain 35 percent.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Housing/Real Estate Market • Labor/Labor Unions/Labor Market • The U.S. Government • Budget • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • US Presidential Election 2012

Most of the increases would result from the expiration of Bush-era tax cuts, which would cause marginal rates to rise. Simultaneously, several temporary tax breaks pushed by President Barack Obamaafter the financial crisis also would end.

And most households—121 million in all—would be hit by an increase in the payroll tax that employees pay to 6.2% from 4.2%.

Also expiring at year-end is a provision to reduce the so-called marriage penalty, a set of tax provisions that require many couples to pay higher taxes when they file jointly. And millions more families' earnings this year would be subject to the alternative minimum tax. The AMT was originally intended to prevent the very wealthy from avoiding taxes but would apply to middle-class households if policy makers don't renew a provision that expired last year.

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • Taxes • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • US Presidential Election 2012

...the biggest loopholes in the U.S. Tax Code — generally referred to as tax expenditures — aren’t just the tricks of the trade for millionaires with offshore bank accounts. For the vast majority of Americans, they’re just how things work: You don’t pay taxes on your health insurance or Medicare benefits; you contribute tax-free to your 401(k); and your mortgage interest pushes down your tax bill each year.

And even if you dump the biggest of the set, these tax perks don’t even come close to closing the deficit. At best, the top 10 would pull in an extra $834 billion a year, according to Joint Committee on Taxation figures. Considering the hole lawmakers are trying to fill is several trillion dollars large, it’s clear they wouldn’t even come close.

Here are the 10 biggest tax loopholes — and the reasons why most of them will survive the fiscal cliff....

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Filed under: * Culture-Watch • Health & Medicine • * Economics, Politics • Economy • Consumer/consumer spending • Corporations/Corporate Life • Personal Finance • Taxes • The U.S. Government • Budget • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • US Presidential Election 2012

U.S. companies are scaling back investment plans at the fastest pace since the recession, signaling more trouble for the economic recovery.

Half of the nation's 40 biggest publicly traded corporate spenders have announced plans to curtail capital expenditures this year or next, according to a review by The Wall Street Journal of securities filings and conference calls.

Nationwide, business investment in equipment and software—a measure of economic vitality in the corporate sector—stalled in the third quarter for the first time since early 2009. Corporate investment in new buildings has declined.

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Filed under: * Culture-Watch • Globalization • * Economics, Politics • Economy • Corporations/Corporate Life • Taxes • The U.S. Government • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • US Presidential Election 2012

Of the two programs, Social Security is by far the easier to fix. In 1983, a bipartisan agreement shored up the program for decades. It can be rescued again, much as it was then, by gradually raising the retirement age for able-bodied workers and bumping up the payroll tax. Other options include slowly reducing the rate of benefit growth, raising the wage cap and tightening eligibility requirements for disability

The more urgent and difficult issue is the surge in spending on Medicare, Medicaid and related programs. The numbers tell the story. In 1990, Washington spent $180 billion on health care, accounting for 14% of federal spending. In 2017, the expected tab is $1.4 trillion, or 30% of federal spending. As President Obama said at his news conference Wednesday, "Health care costs continue to be the biggest driver of our deficits."

One obvious place to start is bringing the Medicare eligibility age in line with that of Social Security. In their failed budget negotiations in 2011, Obama and House Speaker John Boehner tentatively agreed to raise it from 65 to 67. Such a rise would cut the government's bill while increasing the share of the population in market-based health care.

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Filed under: * Economics, Politics • Economy • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General

The Federal Housing Administration is expected to report this week it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the agency's finances, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.

Such a report would likely set off a political fight over the government's role in housing, as it raises the prospect of billions of dollars being added to the U.S. government's effort to stabilize the hard-hit sector in the aftermath of the 2008 financial crisis, which already includes $137 billion spent to bail out Fannie Mae and Freddie Mac. Together with Fannie and Freddie, federal agencies are backing nearly nine in 10 new mortgages.

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Filed under: * Economics, Politics • Economy • Housing/Real Estate Market • The Credit Freeze Crisis of Fall 2008/The Recession of 2007-- • The U.S. Government • Budget • The National Deficit

"After two foreclosures and two bankruptcies, Hermes Maldonado is as surprised as anyone that he's getting a third shot at homeownership. The 61-year-old machine operator at a plastics factory bought a $170,000 house in Moreno Valley this summer that boasts laminate-wood floors and squeaky clean appliances. He got the four-bedroom, two-story house despite a pockmarked credit history."

Who would loan to this gentleman? Anyone, anyone?

His reentry into homeownership three years later came courtesy of the Federal Housing Administration. The agency has become a major source of cash for so-called rebound buyers — a burgeoning crop of homeowners with past defaults who otherwise would be shut out of the market.

"After everything that happened, thank God I was able to buy another house," Maldonado said in Spanish. "Now, it's good because the interest rates are low and there are lots of homes."

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Filed under: * Economics, Politics • Economy • Consumer/consumer spending • Housing/Real Estate Market • Personal Finance • The U.S. Government • * Theology • Ethics / Moral Theology

As the high-stakes wrangling over the fiscal cliff gets underway, we though it might be the proper moment to remind everybody just how the United States managed to become the world's biggest debtor.

So, here's how....

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Filed under: * Culture-Watch • History • * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Census/Census Data • Medicare • Social Security • The National Deficit • Politics in General

There were nearly 50 million Americans living in poverty in 2011, under an alternative measure released by the Census Bureau Wednesday.

That's 16.1% of the nation, higher than the official poverty rate of 15%. The official rate, released in September, showed 46.6 million people living in poverty.

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Filed under: * Culture-Watch • Poverty • * Economics, Politics • Economy • Personal Finance • The U.S. Government • Census/Census Data

[Not many]...days ago, the citizens of this great land decided who would have the privilege of leading our Nation for the next four years. It is a time-honored process reflecting both the wisdom and the power of the American people. Today, America honors the men and women whose profound acts of citizenship — service in the armed forces of the United States of America — have safeguarded our country for 237 years and guaranteed our rights as Americans to choose our leaders.

Twenty-two million living Americans today have distinguished themselves by their service in uniform. Their devotion and sacrifice have been the bedrock of our sovereignty as a Nation, our values as a people, our security as a democracy, and our offer of hope to those in other lands, who dream our dreams of “Life, Liberty, and the pursuit of Happiness.”

For the past 11 years, the men and women of our armed forces have stood watch in Iraq, in Afghanistan, Europe, Korea, and more than 150 other countries around the globe. More than 1.5 million Veterans have served in the combat theaters of Iraq, Afghanistan, and the Horn of Africa. Since 9/11, nearly 3 million Veterans have departed the military, having fulfilled their duty to the Nation, and become eligible for the benefits and services we offer here at the Department of Veterans Affairs (VA).

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Filed under: * Culture-Watch • Children • History • Marriage & Family • Military / Armed Forces • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General

The woman at the center of the extramarital affair that led to the resignation of the head of the Central Intelligence Agency is a highly accomplished, extremely competitive person who got to know the high-profile general, in part, by going running with him in Afghanistan.

Paula Broadwell met Gen. David Petraeus six years ago, when she introduced herself after he gave a speech at Harvard's Kennedy School, where Ms. Broadwell was working on a master's degree.

She now lives in Charlotte, N.C. with her radiologist husband and two children, according to an online biography page associated with her book about Petraeus, "All In: The Education of General David Petraeus," which was taken offline shortly after her name was linked to the scandal.

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Filed under: * Culture-Watch • Marriage & Family • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • * Theology • Ethics / Moral Theology

If anyone in Washington could have weathered a sex scandal, Gen. David Petraeus would seem like that person.

Yet the retired general who inspired admiration bordering on reverence from so many in the capital was abruptly out Friday as Central Intelligence Agency director, just one day after President Barack Obama learned of Petraeus’s extramarital relationship.

Intelligence community insiders say Petraeus was felled by an increasing sensitivity in the Obama administration to extramarital dalliances, stemming from recent cases in which officials at various levels have seen their careers scuttled for similar personal misconduct.

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Filed under: * Culture-Watch • Marriage & Family • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • * Theology • Ethics / Moral Theology

Mr. Petraeus issued a statement acknowledging the affair after President Obama accepted his resignation and it was announced by the C.I.A. The disclosure ended a triumphant re-election week for the president with an unfolding scandal.

Government officials said that the F.B.I. began an investigation into a “potential criminal matter” several months ago that was not focused on Mr. Petraeus. In the course of their inquiry into whether a computer used by Mr. Petraeus had been compromised, agents discovered evidence of the relationship as well as other security concerns. About two weeks ago, F.B.I. agents met with Mr. Petraeus to discuss the investigation.

Administration and Congressional officials identified the woman as Paula Broadwell, the co-author of a biography of Mr. Petraeus. Her book, “All In: The Education of General David Petraeus,” was published this year. Ms. Broadwell could not be reached for comment.

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Filed under: * Culture-Watch • Marriage & Family • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • Politics in General • * Theology • Ethics / Moral Theology

CIA Director David H. Petraeus resigned Friday and admitted to having an extramarital affair, bringing a shocking end to his brief tenure at the spy agency and highly decorated national security career.

The affair came to light as part of an FBI investigation into a potential security breach involving Petraeus’s e-mails, according to federal law enforcement officials and a former senior intelligence official. The investigation uncovered e-mails describing an affair between Petraeus and Paula Broadwell, a former military officer and co-author of a glowing biography of Petraeus, according to two law enforcement officials who were briefed on the investigation.

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Filed under: * Culture-Watch • Marriage & Family • * Economics, Politics • Defense, National Security, Military • Economy • The U.S. Government • * Theology • Ethics / Moral Theology

Should lawmakers not reach agreement prior to the end of the year, the US budget deficit for 2013 would be cut almost in half, to $560 billion.

Which doesn't sound like a bad thing. After all, the US is staggering under a monumental pile of debt and could potentially begin to face the kinds of difficulties that have plunged several euro-zone countries into crisis. It is a viewpoint shared by the ratings agencies -- a year ago, Standard & Poor's withdrew America's top rating, justifying the measure by pointing to the unending battle over the debt ceiling. The agency noted that "the political brinksmanship of recent months highlights what we see as America's governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed."

From afar, it is difficult to argue; the ongoing battle between Democrats and Republicans in the face of a horrendously imbalanced budget looks catastrophically absurd. As their country heads toward the edge of the abyss, lawmakers preferred to debate whether or not French fries and pizza should be considered vegetables.

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Filed under: * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Medicare • Social Security • The National Deficit • Politics in General • House of Representatives • Office of the President • President Barack Obama • Senate • US Presidential Election 2012

Heavenly Father we ask that you will have mercy on America today and bless us in spite of ourselves. We ask that you will give wisdom to all who go to the polls to cast their votes. Help us as we make difficult decisions on a variety of issues and as we seek to elect men and women who will hunger for righteousness and seek the common good to positions of authority in our towns and cities, in our states and in our nation. We pray against any voter fraud or any corruption of proper voter access and ask that justice be done in each and every election, whatever the locale. We also pray for peace and grace with one another as the results are received and digested, through Jesus Christ our Lord, who with you and the Holy Spirit lives and reigns in glory everlasting, Amen--KSH.

Filed under: * By Kendall • * Christian Life / Church Life • Spirituality/Prayer • * Culture-Watch • Law & Legal Issues • * Economics, Politics • Economy • Taxes • The U.S. Government • Budget • Politics in General • City Government • House of Representatives • Office of the President • Senate • State Government • US Presidential Election 2012 • * Theology • Ethics / Moral Theology