Welfare for Boat Docks

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Lee's Ford Marina

Recently an article in the local paper about the impending rise of the waters in Lake Cumberland was cause for rejoicing. A lot has been said about how the declining lake levels have negatively impacted tourism and the necessity for relocating boat docks has cut into profits. One of the local operators responded to the news with an appeal to the Corps of Engineers to help the dock owners recover some of their lost money.

Around here most of us love Lake Cumberland and want to see the businesses associated with the tourist industry do well but this is also a pretty conservative area politically. We hear a lot of talk about displeasure with government spending too much money but often we just don't realize where a lot of it goes.

Jamestown Dock

It this case the dock owners are asking the Corps of Engineers to come up with some money but the problem is that even the Corps has to get the money somewhere. The question is whether or not it is appropriate for the American taxpayer, (that is every one coast to coast), to chip in to help these private businesses manage the risk involved in operating their businesses. In every business there is some inherent risk that one may lose his or her investment if the business does not turn a profit. It is difficult to see how an operator of a business that depends on Lake Cumberland should not be liable for the risk associated with the business. There is no argument that these businesses have been negatively affected by the lowering of lake levels in order to repair the dam but it seems that it is risk that should be assumed privately and not the responsibility of the United States of America. One could make the argument that the businesses are vital to our economy in terms of jobs and tax revenue and therefore deserving of public investment but that could hold true for most businesses. For instance, my business is small but it keeps me and my family off the public assistance rolls and provides a couple of jobs. I doubt that my business would be vital enough to get government to bail me out if risk overtook my ability to make a profit.

Another relevant thought is the tax deduction for businesses to provide health care for employees. This expense is deductible for the company and is not taxed as revenue for the recipient when in fact it represents a sizable portion of a persons pay package. It is an example of what is called a tax expenditure. An amount of income that is not deemed to be taxable. If you were to not receive health care benefits from your employer and you bought insurance on the private market you would have the option of taking a deduction on your taxes for that amount. Think about that for a minute. Now, why would you not be taxed on that amount as income? You received the money as payment for your work, why is it not taxed? The other side of the coin is since you are not paying for your health care then who is? Be assured, the health care providers and insurance companies are getting paid but whose money is paying them? The inescapable fact is that the American taxpayer is paying for those benefits since the money lost through that federal tax expenditure has to be made up from somewhere.

Wait a minute! Isn't this what we were arguing about a couple of years ago? Isn't this still the most contentious bone in our public debate? Can it be true that we already have taxpayer funded health benefits only not everyone shares equally? That is exactly the case. You like your employer furnished health benefits? That's great but why should the American taxpayer have to pay for your health care through funding the exemption you or your employer enjoys? Fact of the matter is that if the American taxpayer was not picking up the tab you would have to pay quite a bit more in income taxes.

Don't get me wrong. Most of you know that I am a strong proponent of a system of national health care. I prefer something like Medicare for everyone that would be funded by the taxpayer but the difference is that more people would be covered and it would be more egalitarian. The way it is one could incorrectly conclude that he or she was working for it but since it is a tax deductible item it is the taxpayer that funds it.

But I would prefer that this column focus more on how people take advantage of government sponsored assistance and other programs without realizing where the money comes from. Then many of them go out a vociferously protest other government assistance programs. Having said this it should be acknowledged that government uses the tax system to promote or dissuade certain behaviors and this is an accepted use of the tax code if the results are intended to promote the greater good.

Just as Mr. Calhoun and I were speaking of a couple of weeks ago, government has its tentacles inserted into our lives in ways we fail to see. Our difference is in whether or not such interference is insidious. I believe that government can be a force for good and I think most other people take advantage of that characteristic of government even if they don't realize it.

Next time you itemize deductions on your tax returns or even when you take the standard deduction ask yourself how government makes up for these exemptions. Next time you complain about someone else's government benefits take a look at your own.

Well, that's my take on a couple of the quirks of the tax code and various government benefits. Enjoy the blessings of living in the USA.

Serving King Coal

In Kentucky's Coal Country, A Resentment For Obama | Minnesota Public Radio News

Here in Kentucky the death of King Coal will be a bitter pill.  This beautiful Commonwealth has long been a victim of extraction industries that pillage the natural wealth and leave destruction.  The people in Louisa and in much of this state blame the environmentalists and Barack Obama for the death of King Coal but the blame is misplaced.

Years ago Kentucky enacted the Coal Severance Tax which was to return to those coal producing counties a portion of the wealth torn from their soil.  That money was to be used to diversify the economic base for the time that coal would necessarily decline as a source of revenue.  The blame for the dearth of economic opportunity we now face should be squarely laid at the feet of local and state governments and the short sighted people who ran them for their failure to have enough vision to lead the people along the path of prosperity using different economic models.  In this article one person even says that one of his relatives drives a Komatsu bulldozer.  The bulldozer isn't even American.

Now the time has come that we can no longer rely on King Coal to provide cheap electricity and decent paying jobs.  It has run its course, one that was completely predictable.  Natural gas is plentiful and cheaper and cleaner although it too will run its course as our dependency on the burning of fossil fuels must in order to save the human race.  Make no mistake, the planet will survive but the geological record holds proof that humans are not necessary.

Don't blame Barack Obama, there are those to blame who are much closer to home.

Eastern Kentucky once belonged to the Democratic Party who were much more instrumental in joining the miners in their pursuit of better working conditions and better pay. The mines were unionized and the wealth was spread around a bit better but the arrival of the strip mine and mountaintop removal killed many of the mining jobs and turned others into heavy equipment operators. John L. Lewis was a name revered in the hills of Appalachia and he fought tirelessly for the betterment of the miners. Unionization of the mines was the last reasonable attempt to force the Barons of the East to halt their extraction of wealth from Kentucky and leave some in the state for the betterment and prosperity of the citizens. With the changing of the industry and the successful use of wedge issues politically the Coal Barons were successful in separating the miner and his family from the organizations that had nurtured them.

It has always been the case that the Coal Barons have utilized home grown businessmen to act as front men for their operations giving the illusion that it was Kentuckians who were operating the mining business. For instance, it was a native Kentuckian, John C.C. Mayo, who first came up with the infamous broad form deed that allowed the coal extraction industry to buy mineral rights to property without paying a fair price for the land, a practice that often left the land devastated and unusable for any kind of agricultural purpose as it had been.

Even now we see the money extracted from the soil of Kentucky used by those who have profited much the same as a medieval lord would shower favors upon those who pleased him. Money from the coal industry has funded the housing for the University of Kentucky Basketball team requiring that the name of the lodge be “Wildcat Coal Lodge” in addition to some other stipulations requiring some other things such as these from the funding agreement:

The gift agreement, obtained by the Herald-Leader under the state's Open Records Act,

said the building "will include an exhibit in the primary entrance lobby which presents in print, photographic, sound, video, DVD and/or other format, a discussion of and tribute to the importance of the coal industry to the Commonwealth of Kentucky, which exhibit shall be reasonably acceptable to Craft."

The reverence for King Coal pervades the political system of Kentucky. It is political suicide for any person from most of the state to take a position contrary to the wishes of the coal companies. The Governor is on record as opposing the regulations of the Environmental Protection Agency designed to mitigate damage caused by these companies on the grounds that it constitutes a “war on coal”. The preposterous nature of this allegation serves to obscure the fiscal and political malfeasance that has occurred at every level with the failure to adequately prepare Kentucky for the demise of coal as a major source of jobs and support for Kentucky government and the citizens of this state. It has left Kentucky in a similar condition as a third world country that long was a colony of a major power that stripped it of its wealth and then left. The sad story is that, just as it was with John C.C. Mayo, the coal extraction industry has used the Commonwealth's own people to do the dirty work. The “War on Coal” is nothing more than good old capitalism and market forces doing what they do best, kill one industry when a more efficient one comes along. The crime is that we Kentuckians have been lied to and stolen from and are left as poor as we were before the “coal companies came with the world's largest shovel.”

In a just world those responsible leaders would be held to account for their malfeasance but economic justice is a rare commodity in Kentucky, even more so than in the rest of the nation.

So, now those few remaining miners and their families face the demise of King Coal blaming Barack Obama and those who “war on coal” for the unnecessary regulation that they say is killing coal production. Never mind the many times Kentuckians have trooped to the polls and voted against their own well being all along trusting their leaders to guide them to the Promised Land. The wealth that rightfully belonged to our state has been used to enrich the few and leave Kentuckians impoverished.

In addition production from Canada is a game changer.

Cash Talks

Investing In Citizenship: For The Rich, A Road To The U.S. : NPR


I suppose it makes sense in a sort of perverted way that people with money would find it easier to gain acceptance in the United States.  We ask the world to send us their poor and downtrodden but we would rather have their wealthy and untrodden.  Just one of the distasteful things about the world.

Water Everywhere and Not a Drop to Drink

Injection Wells - ProPublica


this link will take you to a site that will then offer several opportunities for you to look at various things that are impacting our water supply here in the United States and North America.  The access to clean, safe water is going to be a critical issue before my generation has time to exit this globe.  That is withing 20 years.  Here you will see some of the issues that fracking opponents are talking about as well as pollution of deep water by other extraction industries.

We ignore these warnings at our own peril.  Just as we were warned 20 years ago of climate change now here is another warning we should heed.

Object of Resentment

In Kentucky's Coal Country, A Resentment For Obama | Minnesota Public Radio News


Here in Kentucky the death of King Coal will be a bitter pill.  This beautiful Commonwealth has long been a victim of extraction industries that pillage the natural wealth and leave destruction.  The people here in Louisa and in much of this state blame the environmentalists and Barack Obama for the death of King Coal but the blame is misplaced.

Years ago Kentucky enacted the Coal Severance Tax which was to return to those coal producing counties a portion of the wealth torn from their soil.  That money was to be used to diversify the economic base for the time that coal would necessarily decline as a source of revenue.  The blame for the dearth of economic opportunity we now face should be squarely laid at the feet of local and state governments and the short sighted people who ran them for their failure to have enough vision to lead the people along the path of prosperity using different economic models.  In this article one person even says that one of his relatives drives a Komatsu bulldozer.  The bulldozer isn't even American.

Now the time has come that we can no longer rely on King Coal to provide cheap electricity and decent paying jobs.  It has run its course, one that was completely predictable.  Natural gas is plentiful and cheap and cleaner although it too will run its course as will the dependency on the burning of fossil fuels must in order to save the human race.  Make no mistake, the planet will survive but the geological record holds proof that humans are not necessary.

Don't blame Barack Obama, there are those to blame who are much closer to home.

Taxation and Philosophy

I have a pet peeve. Well, to be truthful, I have several. But this one involves my business and what happens to the fees levied by the state to enforce regulations governing it. I believe in regulation as long as it is applied evenly. If it is done that way then the playing field is leveled and simple market forces drive competition. If it is not applied evenly then it places a burden on those most unable to sustain it and gives an edge to larger companies who have the cash flow to factor it in.

With my business I pay about $1000 per year to maintain licenses. I take time to do continuing education and I maintain business liability insurance per regulations. In addition, often there are permitting fees and inspection fees. The lion's share of those levies go to the department having jurisdiction. Those fees are to be used for enforcement and departmental overhead but each year me and my fellow business operators pay far more to those departments than is required. As a matter of fact, we paid licensing fees for over ten years to one department that did not perform one bit of regulatory duty. The excess fees are to be used for operations that would benefit the license holder or the public such as education or reduced fees to the license holder. But what really happens is that each year the Governor issues an executive order that confiscates those excess fees and places them into the general fund which is used to fund the operations of state government.

Here is my question and my peeve. Is this a fee or is this a tax? In my opinion, once the money is scooped up by the Governor then it becomes a tax. Up until then it is a fee. This is a tax that is never debated, never voted on and never sees the scrutiny of any legislative eye. When compared to the recent brouhaha over the library tax this executive exercise of power puts that accusation to shame. At least that tax was legislated even if in an obscure way.

I can live with this. I should not have to but I can as long as it is applied equitably which it is not. The burden falls heaviest on the small contractor while, as I said, the large contractor finds it easier to absorb the associated costs.

Philosophically, and I believe all political thought should have a sound philosophical basis, I disagree with the way this and many other taxes are levied. I believe that we cannot have good government without having the means of financing that government debated. In so many things we fund government with fees that are little more than hidden taxes and that has a profound effect on not just our taxation rates but also operations of government that are funded by these hidden taxes.

I am not a small government advocate. I believe that government should be large enough to accomplish the many goals of a complicated society including regulation and the provisions of our Social Contract. I just believe that those funding methods should be debated along with the efficacy of the legislation they are dedicated to serve.

For instance, I do not believe that the excess fees of my department should be moved to the general fund to make it easier for our legislators to fund government without raising taxes. We make it too easy on our legislators to avoid responsibility and we make it too easy on the voter to avoid responsibility for his or her demands. If we are going to demand stricter enforcement of some laws then we have to accept the responsibility for funding it. If we are going to expand medical care then we must accept responsibility for funding it. If we are going to put police patrols in schools then we must accept responsibility for funding it. If we have decided that drunk drivers are a public hazard then we must accept responsibility for funding their incarceration and policing. If we want our children to be educated then we have to accept responsibility for funding it. If we want to fight wars in which only a few percent of us will ever see battle then we have to fund it. If we want to have an economy that uses fossil fuels to generate power then we have to fund it. And not only it but the cleanup of the mess.

Everything has its costs and we must accept responsibility for the true costs of that item and that includes things such as waste dumps, dealing with the global climate change resulting from the use of fossil fuels and the treatment of men and women we bring home suffering from PTSD and horrible battle wounds. For way too long we have pretended that we can enjoy our cake but never clean up the kitchen. Attention to this would cause us to be more responsible with legislation and would make us act like adults.

When our representatives decide to act on a subject to regulate it we need to be told how much it is going to cost. We don't need to vote on everything but we need to know who did. Personally, I am willing to accept a significant increase in personal taxation to fund the kind of society I believe in. I am not going to throw out of office a representative who votes for legislation simply because I don't want to pay for it. Most of us make decisions from time to time that don't pan out and I would hate to be pilloried for every mistake I have made. But I am willing to be held responsible for the way I live my life and attend to those things in my care.

I am an advocate of universal health care along with quite a few other social programs. In truth, I would much rather pay for them than the decade long war we are pouring our treasure and lives into. Taxation is a necessary part of any nation that enjoys a Social Contract and we have a great nation and a great contract. Certainly there are some who are not carrying their weight and some who carry more than they should but if we attend to our responsibilities that will be minimized. Nobody in our country makes it to the top alone. In every way we enjoy the efforts of our fellow citizens and their taxation.

Now, this is just a part of my take on taxation and it's purposes. As I said, I believe that political thought should have a sound philosophical basis. One of the great things about philosophy is that people have been doing it for a long time and it doesn't require a degree to do it. It does, however, help to be aware of some of the roads already traveled.

Kentucky's Shame

Speak Your Piece: Why Regions Fail | Daily Yonder | Keep It Rural


this is a great article that pulls the plug on Kristof's demeaning column on Eastern Kentucky.  Our state has long been treated as a third world country by many who have attained great wealth by extracting natural resources while leaving nothing to serve the people.  Even the jobs they brought had no lasting significance after they evaporated along with our natural wealth.  Just as cartel money buys crooked cops along the border so has the great wealth extracted from our lands allowed for corruption in our local governments to benefit those who plunder.

If you can see past the simple excuses and explanations take the time to read this. The shame is that our native resources have been used to impoverish the people.

Climate Change and the Mississippi River

Army Corps' Options Dwindle Along With Mississippi River : NPR

Another article to read in my series on depletion of water resources due to climate change.  This one is closer to home since the effects are at the western border of our state.

Jordan Leads Peace Effort

Jordan forming int'l bloc to spur peace ta... JPost - Middle East

what has been lacking in the past is the participation of other Middle Eastern countries.  With King Abdullah leading the coalition perhaps there will be a modicum of success for peace in that critical part of the world.  Netanyahu seems intent on forcing a wedge between Hamas and Fatah to weaken them both but maybe the wiser course is to nudge them into peaceful resolution and effective government.  With the turn of events in many Middle Eastern countries and the favor that the Palestinian cause is finding internationally perhaps this is a window of opportunity.

Achieving a resolution to the Israeli-Palestinian conflict would do more to bring world peace than any other single event.

Hagel for Defense

Hagel's worldview shaped by business as much as war

Chuck Hagel is probably one of the most qualified people to have ever been nominated for this office.  His status as an enlisted man during Vietnam has exposed him to the horrors of war rather than the commanding of forces from the rear.  He will not be eager to commit military power in doubtful circumstances.

In this article his business acumen is noted.  This has been a potential weakness according to some who say he lacks administrative skills.  No matter what anyone says this is going to be a transformational time for the American military.  You may recall that Bill Clinton began this only to have W engage us in ground wars for which we were ill prepared and were unnecessary.  Those errors have cost the United States grievously in terms of lives and treasure.

His willingness to both work across party lines and to buck his own party bode good things for our country.  We need people who are uninhibited by political loyalties.

Are We Fighting the Wrong Enemy?

From Corn Belt To Main Street: The Drought's Far-Reaching Grasp : NPR

A while back I wrote about the threat of climate change to food crops and the impact that would have on poverty and emigration.  This is one of the largest threats to security facing our country and we are not talking about it.  Instead we are wasting resources fighting an enemy holed up in the mountains of Pakistan.  Does this make sense to you?   It is imperative that we address the problems that are facing us instead of the unimportant and trite issues of the past election.  This is one issue that will dwarf into insignificance ideology.

Almost time for the Green Flag

Generation 6 cars level NASCAR playing field - NASCAR News | FOX Sports on MSN

Only a little over a month until the big boys (and girl) take the track in a new edition of the SPRINT CUP CAR.  Interesting article about some of the changes.  I watched some of the testing on SPEED the other day.  The cars certainly look better but the rules changes may make some differences as to who is on the track.  Several drivers have changed teams.  This could be a good year for Michael Waltrip Racing.  He is emerging as one of the super teams and has a lot of backing.  I wonder how the changes will affect Hendrick Motor Sports.  Should be a good year for them.  Kasey Kahne and Jimmy finished strong and Jeff showed a bit of fire taking out Clint Bowyer.  Wonder if that dynamic will still be around?

Water Wars and more

Wednesday Roundup: Scare Coyotes | Daily Yonder | Keep It Rural

Recently I wrote a column that mentioned that access to usable water was going to be the next flash point.  Here is an article that deals with that issue among others.

Let Us Count The Reasons

Why Hagel? Let Us Count The Reasons : It's All Politics : NPR

The reasoning behind the Hagel nomination.  The GOP should not struggle against this one.  Soon we will see if the hawks want to belabor the point.

Past Time for an Intervention.

Israel’s True Friends - NYTimes.com


How long will we allow the nationalistic sentiments of a client state dictate the foreign policy of the United States?  It is far past the time we should implement a more balanced posture toward Israel.  This can easily be done without sacrificing the security of Israel, indeed, it will strengthen it.

In Defense of Hagel

Obama to nominate Chuck Hagel for defense secretary, source says - The Washington Post



Hagel would be an excellent choice for this post but the reasons that I like him are the very ones that may give him the most trouble in confirmation hearings.  He has a balanced approach toward Israel and does not generally support adventurous military excursions, a position not in favor among members of his own party and the Jewish lobby.  At a time when decisions are going to have to be made about trimming the bloated defense department budget he is an advocate of a smaller, more nimble military.

Of course, it is no secret that anybody sent to the Hill for confirmation by this President will be challenged.  It used to be that the President was afforded the right to name his team as long as they met generally accepted standards such as criminal proceedings or radical associations.  Not the case any longer.

Hagel is a Republican and served in the Senate from Nebraska where he has garnered praise for being willing to work across the aisle, a trait not universally admired these days.

An Octopus? So what?

Rebuttal

I have never had the pleasure of meeting Cline Calhoun but I hope to remedy that soon. He and I have communicated via e-mail on several occasions and I find him to be a personable and friendly man. I am impressed by his witty writing style and heartfelt comments but we often find ourselves on opposite sides of a political divide. That is all right. People can do that and still remain friends despite what we see on television and hear on talk radio. One of the great lies foisted on the American people is that we must treat those who are ideologically different as though they are pariahs too vile to associate with. Having said that I am going to pick on a column that Mr. Calhoun wrote lately about the octopus. His depiction of the octopus as a brainy creature is apt since it has one of the largest brains in the undersea world and is considered to be quite intelligent. His association with it as an evil example of government is something I disagree with. I am going to voice my disagreements using the same pattern Mr. Calhoun used in his column.

Department of Health and Human Resources---it appears the object of derision is the Affordable Care Act otherwise known as “Obamacare.” Previous Presidents, both Democratic and Republican, have had a vision of universal health care as a moral and ethical right for all citizens. Of the nations in the advanced world the United States is the only one that fails in that regard. But critics of the ACA fail to deal with the problem of ballooning health care costs and their impact on insurance rates, costs of doing business and Medicare. The premise of the ACA is that all people are involved in consuming health care whether or not they choose to do so. If someone falls ill from hepatitis that person is likely to be treated at an Emergency Room and then admitted to a hospital that will be forced to use dollars for indigent care. To pay for that indigent care the hospitals and insurance companies will pass the burden on to those who can pay. The only one who benefits from this is that person who did not participate in purchasing health care and even that is debatable because if he had purchased health care his disease may not have become an emergency thereby consuming thousands of extra dollars. $716 Billion was stripped from payments to insurance carriers for the Medicare Advantage Plans that cost more to deliver health care than even straight Medicare. It was a cash cow for the insurance companies. Do you want government to be efficient or not? The additional $500 Billion was to be cut from Medicare under the fiscal cliff penalties that have now been averted. The claim that one can do nothing about it is a matter of debate. After all, we just had an election that dealt with that. And a Supreme Court decision to boot. We went through all this just a few years ago. It is finally the law of the land, let's give it a rest.

The Department of Labor—we may just have a different opinion on this one. Mr. Calhoun paints this Department as being infiltrated by “unionists” as if that is a bad thing. The Department of Labor is there to protect the American worker against employer abuse in many different ways such as the many forms of discrimination, unequal pay, worker intimidation, sexual harassment and dangerous working conditions just to name a few. The allegation that the department favors union shops and instigates protests against the so called “right to work laws” is just preposterous as is the naming of unionization and battles against “right to work laws” as its “primary purpose.” My perspective is that without labor unions the rights of the American worker would more like the sweatshops in Latin America or Eastern Europe. It is the Department of Labor that protects the American worker from having the standard of living of Bangladesh and right now it's not doing a great job.

The Department of Homeland Security—we may actually agree on the vileness of this department but for different reasons. Mr. Calhoun sees it as uniquely supporting illegal immigration and I really don't know where that came from. There are a lot of complaints that are more fitting for the Department of Agriculture about food stamps and such. My complaint about this department is that it has financed some of the largest government boondoggles in our history. It has not only chipped away at our civil liberties in the name of security but it has jack-hammered them all in the name of terrorism. I am much more afraid of having my right to be secure in my papers and effects taken away than I am of some terrorist. We already had some very good agencies on the job that just needed some shaking up and called to task. We did not need this spy in the sky. Speaking of which, already the manufacturers of those drones are trying to get Congress to allow them over United States airspace. How long until they want to add a hellfire missile?

The Environmental Agency—I have to tell you. I am a big fan of this agency. My opinion is that it is a dirty job but someone's got to do it. Every action they take for the good of the American people is an action that has an impact on some corporation's bottom line. After all, it costs money to clean up messes and the question is who should pay for it. The public or the one who made the mess. However, the complaint against this department seems mainly to be invective against various forms of taxation which have nothing at all to do with this department.

I do, however, understand the use of the octopus as metaphor. The tentacles of government reach into every aspect of our lives. Some fear this and rightly so because the overreach of government can be as dangerous as the lack of effectiveness. We have a strange system of government that we tend to idealize but the fact is that it exists always in a state of tension with some pulling this way and some pulling that way. That tension is what keeps us more or less in a state of balance and allows our government to change to suit the prevailing tenor of the people, more or less.

This is why it is important to not demagogue the person who disagrees with you. His or her opinion is relevant to providing the balance our nation needs. Fact of the matter is that sooner or later you are going to need that person for the times all of us have to pull together. It is difficult to go hat in hand to ask forgiveness when you could have avoided the altercation altogether.

My take on a few of the points of the referenced column. As always, I am interested in your opinions so please write to me. Some of the other points of that column such as immigration will require more space than is available here. We will deal with that later.