MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘infrastructure’

Watch “The Great Infrastructure Rip-Off: Who Gets The Money?” on YouTube

Posted by M. C. on August 14, 2021

When everything (except infrastructure) is considered “infrastructure,” politicians are basically saying that they’re going to take your money, and they can make up any excuse that they want to do so. The role of government must be seriously reconsidered. We have deviated extremely far from the American government’s original role of protecting individual liberty and keeping the peace.

https://youtu.be/EF-StflWzlw

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Erie Times E-Edition Article-Audits eyed for infrastructure cash

Posted by M. C. on May 16, 2021

The Penn Wharton Budget Model, a research organization associated with the University of Pennsylvania, projected the proposed spending on IRS collection efforts would bring in about $480billion from 2022 to 2031.

Is more government brownshirt misery worth $48B a year?

20 years and $Trillions worth of endless wars and government malfeasance, such as the F-35 fiasco, makes $480B pale in comparison.

Government never has “enough”. How long before you are considered “rich”?

Why is smaller, accountable government never an option?

https://erietimes-pa-app.newsmemory.com/?publink=08b007527_1345d78

Kevin Freking and Marcy Gordon ASSOCIATED PRESS WASHINGTON – Republicans said they won’t raise taxes on corporations. Democrats said they won’t raise taxes on people making less than $400,000 a year. So who is going to pay for the big public works boost that lawmakers and President Joe Biden said is necessary for the country?

Enter the IRS.

Biden is proposing that Congress build up the depleted and often-maligned agency, saying that a more aggressive collection of unpaid taxes could help cover the cost of his multitrillion-dollar plan to boost infrastructure, families and education. More resources to boost audits of businesses, estates and the wealthy would raise $700billion over 10 years, the White House estimated.

It’s just the latest idea emerging in the bipartisan talks over an infrastructure bill, which saw Biden huddle at the White House this week with congressional leaders and a group of Republican senators.

The GOP senators, touting a $568billion infrastructure plan of their own, said they were ‘encouraged’ by the discussion with Biden, but all sides acknowledged that how to pay for the public works plan remains a difficult problem.

House Speaker Nancy Pelosi said Biden brought up his IRS proposal as he met Wednesday with the top four congressional leaders.

‘My understanding is it’s at least $1trillion, it could be a trillion-and-quarter, a trillion-and-a-half dollars of illegally, unpaid taxes in the country,’ Pelosi said. ‘Part of the answer is to beef up the IRS so they could take in those taxes, and that’s a big chunk. That could go a long way.’

She was referring to the tax gap, which is the difference between taxes paid and taxes owed. In a politically charged climate, there isn’t agreement on how big the tax gap is, let alone how much of it could be captured. But it’s a tantalizing target for lawmakers, raising the potential to raise hundreds of billions in revenue without needing to raise taxes at all.

The question is how big the tax gap really is – and how much it can realistically be closed.

The Internal Revenue Service has estimated the tax gap is $440billion a year. But IRS Commissioner Charles Rettig stunned his audience at a recent Senate hearing when he offered a new number: about $1trillion annually.

The old estimates don’t take into account the recent boom in income made by self-employed ‘gig’ workers, which can be underreported, concealed offshore income and the rising use of cryptocurrency, which makes it hard for the IRS to identify taxpayers in third-party transactions, experts said.

The $1trillion figure ‘is not crazy. That’s totally possible,’ said Steve Wamhoff, director of federal tax policy at the left-leaning Institute on Taxation and Economic Policy.

But Sen. Mike Crapo of Idaho, the senior Republican on the Senate Finance Committee, called it ‘speculation.’ And he’s worried it could push the IRS toward overzealous enforcement.

The IRS has been on the losing end of congressional funding fights in recent years, taking a cut of about 20% since 2010, adjusting for inflation, even as its responsibilities have grown. Biden’s new spending proposals include an extra $80billion over 10 years to bolster IRS audits of upper-income individuals and corporations.

But some experts said bolstered audits could fall far short of a $700billion windfall.

The Penn Wharton Budget Model, a research organization associated with the University of Pennsylvania, projected the proposed spending on IRS collection efforts would bring in about $480billion from 2022 to 2031.

In selling its plan, the White House has emphasized what it described as fixing a ‘two-tiered system of tax administration’ in the U.S. While regular workers pay taxes on the wages they earn, some wealthy taxpayers find ways to maneuver around them.

Those with annual incomes under $25,000 are audited at a higher rate (0.69%) than those with incomes up to $500,000 (0.53%), according to IRS data. Taxpayers who receive the earned-income tax credit, which applies mainly to low-income workers with children, are audited at a higher rate than all but the wealthiest filers. The audit rate for millionaires plunged from 8.4% in 2010 to 2.4% in 2019.

The IRS rejected the notion of unfair audit treatment, saying that critics have misinterpreted the data. Rettig bristled at the suggestion at the Senate hearing. High-income taxpayers ‘are audited more than any other taxpayer,’ he said, at a rate over 8% for those earning more than $10million.

So far, Republicans are only ruling out revisiting the 2017 tax cuts that they passed without any Democratic support. How much they are willing to boost the IRS as part of an infrastructure bill remains to be seen. Senate Minority Leader Mitch McConnell of Kentucky said Republicans would rather finance infrastructure through user fees such as tolls and gasoline taxes.

But after pushing the agency’s steep budget cuts over the past decade, it would be a remarkable shift for the GOP to back the kind of sustained investment in the IRS that Biden is talking about – and that experts said is necessary to narrow the tax gap.

Republican lawmakers with control over funding for the IRS have long accused it of overreaching into ordinary taxpayers’ lives. Their hostility toward the IRS erupted into outrage in 2013 during the Obama administration, when the agency admitted targeting conservative tea party groups with heightened, often burdensome scrutiny when they applied for tax-exempt status.

Sen. Chuck Grassley, R-Iowa, wrote in his home state newspaper, the Des Moines Register, that he’s not opposed to closing the tax gap, but he has concerns about the scope of the White House’s efforts.

‘Instead of promising a chicken in every pot, Biden’s plan promises an auditor at every kitchen table,’ Grassley wrote.

Sen. Chuck Grassley, R-Iowa

Internal Revenue Service Commissioner Charles Rettig stunned a House Committee on Wednesday by suggesting Americans underpay their taxes by about $1trillion annually

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White House might tax motorists by the mile to fund infrastructure plan

Posted by M. C. on March 27, 2021

If Modern Money Theory is true, why tax? Just print.

It is about control. Control of where you money comes from and how much you can keep.

You can’t be allowed to drive any old place without paying the price.

https://nypost.com/2021/03/26/white-house-might-tax-motorists-by-the-mile-to-fund-infrastructure-plan/

By Gabrielle Fonrouge

The Biden administration is considering imposing a vehicle mileage tax on Americans — as a way to fund a multi-trillion-dollar infrastructure plan set to be announced by President Biden, Transportation Secretary Pete Buttigieg said Friday. 

“I think that shows a lot of promise… If we believe in that so-called user-pays principle, the idea that part of how we pay for roads is you pay based on how much you drive,” Buttigieg said on CNBC during an interview

“The gas tax used to be the obvious way to do it; it’s not anymore… So, a so-called vehicle miles traveled tax or a mileage tax, whatever you want to call it, could be the way to do it.”

The levy would tax drivers on the number of miles they travel, as opposed to the amount of gasoline they consume, which is no longer a reliable stream of income with so many electric cars on the road. 

“I’m hearing a lot of appetite to make sure that there are sustainable funding streams,” Buttigieg said. 

“You’re hearing a lot of ‘maybe’ here because all of these things need to be balanced and could be part of the mix,” the secretary cautioned, saying the mileage tax is only a consideration at the moment. 

Buttigieg later added the White House is also considering bringing back Build America Bonds, which are a special type of municipal bond first introduced by the Obama administration that have interest costs covered by the US Treasury.  

He said the bonds show “a lot of promise in terms of the way that we leverage that kind of financing.”

His comments came one day after the first press conference of Biden’s presidency, where he announced plans to unveil a $3-4 trillion infrastructure bill in Pittsburgh next week. 

The president argued that rebuilding US physical and technological infrastructure was a key priority to not only boost a sluggish economy, but to remain competitive with overseas rivals like China. 

Buttigieg said a plan to rebuild the nation’s roads, bridges and waterways would bring a significant return of investment. 

“When you think about infrastructure, it’s a classic example of the kind of investment that has a return on that investment,” the former presidential hopeful told CNBC. 

“That’s one of many reasons why we think this is so important. This is a jobs vision as much as it is an infrastructure vision, a climate vision and more.”

A day prior, Buttigieg urged the House Transportation and Infrastructure Committee to make a “generational investment” to improve infrastructure while simultaneously combating climate change and racial inequity. 

“There is near-universal recognition that a broader recovery will require a national commitment to fix and transform America’s infrastructure,” the secretary said.

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Ending the Pentagon’s Long Con – Antiwar.com Original

Posted by M. C. on May 1, 2019

In short, the U.S. spends staggering sums annually, essentially stolen from a domestic economy and infrastructure that’s fraying at the seams, on what still passes for “defense.” The result: botched wars in distant lands that have little, if anything, to do with true defense, but which the Pentagon uses to justify yet more funding, often in the name of “rebuilding” a “depleted” military. Instead of a three-pointed pyramid scheme, you might think of this as a five-pointed Pentagon scheme, where losing only wins you ever more, abetted by lies that just grow and grow.

The Pentagon will never be forced to make significant reforms until Americans stop believing in (and consenting to) its comforting lies.

https://original.antiwar.com/william_astore/2019/04/30/ending-the-pentagons-long-con/

Originally posted at TomDispatch.

Consider it a conundrum. Both parties in Congress and the president simply can’t pour enough money into the Pentagon and the rest of the national security state. As a result, theirs has been a cumulative trillion-dollar budget for years and it’s still on the rise. On the other hand, the domestic basics are increasingly being starved. When the president’s long-delayed infrastructure plan finally made it to Congress, two years late, it disappeared without a trace. Meanwhile, the country’s roads, rail networks, dams, schools, and so on are in increasingly poor shape. (In reality, the only infrastructure being built up is the Pentagon’s.) Meanwhile, Medicare is now slated to become insolvent in 2026, three years earlier than previously expected. As for the Social Security system, according to the latest government report, its costs will exceed its income next year and it’s expected to become insolvent in 2035. The result: retirement payments are likely to diminish and healthcare costs for aging Americans rise.

I sometimes imagine bringing back my long-dead parents and trying to explain to them what this country now does and doesn’t invest in. They would, I know, be genuinely shocked and that sense of shock, so appropriate for their time and experience, should be no less appropriate now. After all – and here’s that conundrum I mentioned – Washington is no longer eager to invest in what actually works in this country, while politicians from both parties and the president are filled with enthusiasm for a vast and growing military system that doesn’t work at all. From ridiculous sums going into weaponry that’s superfluous or unlikely to function as advertised to ridiculous sums going into distant wars that never end, the U.S. military has in the twenty-first century been a misfire machine of the first order. And unlike infrastructure, Medicare, or Social Security, the less it all works, the more eager Congress and the president are to dump your tax dollars into it.

Consider it a first-class puzzle, one that, in his own striking fashion, TomDispatch regular William Astore, a retired Air Force lieutenant colonel and historian, takes on today as he considers how the Pentagon has conned us all. ~ Tom

How the Pentagon Took Ownership of Donald Trump

By William J. Astore

Donald Trump is a con man. Think of Trump University or a juicy Trump steak or can’t-lose casinos (that never won). But as president, one crew he hasn’t conned is the Pentagon. Quite the opposite, they’ve conned him because they’ve been at the game a lot longer and lie (in Trump-speak) in far biglier ways.

People condemn President Trump for his incessant lying and his con games – and rightly so. But few Americans condemn the Pentagon and the rest of the national security state, even though we’ve been the victims of their long con for decades now. As it happens, from the beginning of the Cold War to late last night, they’ve remained remarkably skilled at exaggerating the threats the U.S. faces and, believe me, that represents the longest con of all. It’s kept the military-industrial complex humming along, thanks to countless trillions of taxpayer dollars, while attempts to focus a spotlight on that scam have been largely discredited or ignored.

One thing should have, but hasn’t, cut through all the lies: the grimly downbeat results of America’s actual wars. War by its nature tells harsh truths – in this case, that the U.S. military is anything but “the finest fighting force that the world has ever known.” Why? Because of its almost unblemished record of losing, or at least never winning, the wars it engages in. Consider the disasters that make up its record from Vietnam in the 1960s and 1970s to, in the twenty-first century, the Iraq War that began with the invasion of 2003 and the nearly 18-year debacle in Afghanistan – and that’s just to start down a list. You could easily add Korea (a 70-year stalemate/truce that remains troublesome to this day), a disastrous eight-year-old intervention in Libya, a quarter century in (and out and in) Somalia, and the devastating U.S.-backed Saudi war in Yemen, among so many other failed interventions…

And this endless long con of the Pentagon’s was all the more effective because so many of its lies were sold by self-serving politicians. Exhibit one was, of course, John F. Kennedy’s embrace of that false missile gap in winning the 1960 presidential election. Still, the Pentagon was never shy in its claims. Take the demand of the Air Force then for 10,000 – yes, you read that right! – new ICBMs to counter a Soviet threat that then numbered no more than a few dozen such missiles (as Daniel Ellsberg reminds us in his recent book, The Doomsday Machine).

To keep the Air Force happy, Secretary of Defense Robert McNamara settled on a mere 1,000 land-based Minuteman missiles to augment the 54 older Titan II ICBMs in that service’s arsenal, a figure I committed to memory as a teenager in the 1970s. And don’t forget that some of those missiles were MIRVed, meaning they had multiple nuclear warheads that could hit many targets. It all added up to the threat of what, in those years, came to be called “mutually assured destruction,” better known by its all-too-apt acronym, MAD.

And the Pentagon’s version of madness never ends. Think, for instance, of the planned three-decade $1.7 trillion “modernization” of the U.S. nuclear triad now underway, justified in the name of “overmatching” China and Russia, “near-peer” rivals in Pentagon-speak. No matter that America’s current triad of land-based, submarine-based, and air-deployed nukes already leave the arsenals of those two countries in the shade.

Reason doesn’t matter when the idea of a new cold war with those two former enemies couldn’t be more useful in justifying the through-the-ceiling $750 billion defense budget requested by President Trump for 2020. The Democrats have pushed back with a still-soaring budget of $733 billion that accepts without question the “baseline” minimum demanded by Pentagon officials, a level of spending Trump once called “crazy.” Talk about resistance being futile!

In other words, when it comes to spending taxpayer dollars, the Washington establishment of both parties has essentially been assimilated into the Pentagon collective. The national security state, that (unacknowledged) fourth branch of government, has in many ways become the most powerful of all, siphoning off more than 60% of federal discretionary spending, while failing to pass a single audit of how it uses such colossal sums….

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graveyard

 

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