Why Paul Krugman is a liar

The Final Insult
Today's Krugman column, carried in The Fishwrapper, was so full of lies and glaring omissions that I have to pick it apart. Read the whole thing then read my excerpts.

If the plan really would do that, it would be worth discussing. It's possible - not certain, but possible - that 40 or 50 years from now Social Security won't have enough money coming in to pay full benefits. (If the economy grows as fast over the next 50 years as it did over the past half-century, Social Security will do just fine.) So there's a case for making small sacrifices now to avoid bigger sacrifices later.
"It's possible?" Mr. Krugman is the ONLY economist who thinks that with no changes Social Security will pay full benefits to people at the current required retirement age. Oh, he clarifies that "small sacrifices" are needed. Let me help define "small sacrifices" for you.

Small Sacrifices v. Huge tax increases

Suppose you're a full-time Wal-Mart employee, earning $17,000 a year. You probably didn't get any tax cut. But Mr. Bush says, generously, that he won't cut your Social Security benefits.
Yes, suppose you earn $17,000 a year. Guess what you pay in federal income taxes? ZERO! NONE! ZILCH! But I guess I should tell you this: If you make $17,000 a year and have a child or two the federal government will GIVE you tax money that you didn't even pay! Obviously you can't give a tax cut to someone who doesn't pay taxes but making sure your Social Security benefits don't get cut is a pretty good deal.

In last fall's debates, Mr. Bush asserted that "most of the tax cuts went to low- and middle-income Americans." Since most of the cuts went to the top 10 percent of the population and more than a third went to people making more than $200,000 a year, Mr. Bush's definition of middle income apparently reaches pretty high.
Sigh. Let's go over this one more time. Tax cuts are like coupons. Say you and I both have 10% off coupons for Wal-Mart. I go to the store and spend $20 and you spend $2000. I will get $2 off while you get $200 off, we both got the same amount off PROPORTIONALLY to what we paid. Now if I had a 30% off coupon and you had a 10% off coupon and we spent $20 and $2000 respectively, me getting $6 off and you $200 off, I would have gotten a LARGER percent off than you even though the dollar amount you got off was more. At that point it's debatable who "saved more" which is how Krugman can claim that most of the cuts went "to the rich."

Let's consider the Bush tax cuts and the Bush benefit cuts as a package. Who gains? Who loses?
Why would we consider these as a "package" since they are completely separate. Income taxes have nothing to do with Social Security taxes or benefits.

I'm not being unfair. In fact, I've weighted the scales heavily in Mr. Bush's favor, because the tax cuts will cost much more than the benefit cuts would save. Repealing Mr. Bush's tax cuts would yield enough revenue to call off his proposed benefit cuts, and still leave $8 trillion in change.
I get very tired of hearing "roll back the tax cuts and Social Security would be just fine." Bush cut INCOME taxes not Social Security taxes. Income taxes did not fund Social Security, they went to the general fund where they were used to fund diversity programs and lavish D.C. parties.

So Krugman is of the opinion that Social Security is "just fine" as long "small sacrifices" (which will be determined during a Democrat administration) are made, that tax cuts should go to people who don't pay taxes and that Bush cut Social Security taxes instead of income taxes. That is an insult.

50 cuts: Day 1

As part of my suggested "50 cuts in 50 day" (see below post) I am suggesting that the state of Oregon eliminate the job classification of...

SEAMSTER 1

DUTIES AND RESPONSIBILITIES
1. Clothing and Linen Repair. Typical tasks: mends, patches, and repairs all garments and linen which are repairable; mends rips and torn seams in clothing; applies patches to worn clothing;

Salary: $1465 - $1999/monthly

This job is especially ridiculous as these workers are sewing patches on clothing for inmates. If I had to think of a group of people with too much time on their hands who could probably sew their own clothes I would initially think prison inmates.

According to the state classification listings this job is

PENDING ELIMINATION THROUGH TRADES & CRAFTS CLASSIFICATION STUDY

but we don't need to wait for a "study" to determine that this classification can be eliminated. And let's be honest, they probably hired 10 people for this "study" and one of them is going to realize that hey, my cousin Earl could use a job...

50 cuts in 50 days

The statement "I'll cut government waste by 10%" doesn't cut it. The newspaper editorial board will mock you for not being specific. The uninformed morons ignore this as something that all politicians say. (Even democrats say this so we know it has no validity) And conservatives have nothing concrete to hold you to.

So Mr. Saxton, I'm suggesting some very specific cuts to be made. Sure, DHS Diversity Manager Marita Baragli isn't going to vote for you whe you say that you would eliminate her position but she wasn't going to vote for you anyway. And you can bet that the general taxpaying public will like the idea of putting her salary + benefits towards something that actually matters.

So please stay tuned Mr. Saxton. Every day, an agency, a commission, a job classification or a specific position will be suggested for elimination. (Yes Alberto Moreno, you will be on this list)

Also, everyone feel free to offer your own suggestions for cuts, just please provide a link so we have something concrete to look at.

Today's cut

I'm going to continue to point out state agencies that could be cut/people whose jobs could be eliminated every day in the hopes that someone somewhere in the Saxton campaign will pick up on the idea that naming these specifics will sound a lot better than "I'll cut 10% by eliminating government beuaracracy." He could do a "50 cuts in 50 days" kind of thing. A daily press release with a running tally of how much money the taxpayers would save.

Today's agency to be eliminated:

Office of Multicultural Health
Improving the health status of under-served and under-represented populations in Oregon through multicultural and culturally- competent approaches that influence how services are delivered.

No sales tax

No I would not trade a reduction in the state income tax for the addition of a sales tax. Here is why:

The money gets taxed when I earn it and then it gets taxed when I spend it. If only they could figure out how to tax it while it's in my checking account the circle would be complete.

There would have to be a brand new "State of Oregon building for the Implementation and Collection of the Sales Tax" created. It would be filled with PERS recipients with job titles like "Sales Tax Cultural Competency Coordinator" and "Sales Tax diversity Manager." This grows government. Now if the proposal is "revenue neutral" meaning that the state would collect the same that they do under the current plan we will simply get less service because they will be spending more on state payroll.

It would be like switching from one 40-hour a week job to two 20-hour a week jobs at the same salary. You are worse off because you now have increased commute time and generally made things more complicated.

Next I would like to point out that the proposal to lower the income tax but add a sales tax operates from a position of weakness. It says that government isn't too big. It pretends that the government has multiple revenue streams when there is really only one source of money: US!

If we have identified a tax that is too high, like the income tax, then let's float a proposal to lower it. Why would a conservative pair that up with a proposal to raise another tax? To make sure that public art doesn't take a hit? To keep the needle exchange programs running on weekends? To make sure that we can hire more Art Therapists?

Government doesn't need more money and it doesn't need the same amount it is getting now, it needs LESS. If you need any evidence of this just look at my "50 cuts" posts.

I've said this before Mr. Bruin...

It seems I will have to copy and paste this every legislative session.

No I would not trade a reduction in the state income tax for the addition of a sales tax. Here is why:

The money gets taxed when I earn it and then it gets taxed when I spend it. If only they could figure out how to tax it while it's in my checking account the circle would be complete.

There would have to be a brand new "State of Oregon building for the Implementation and Collection of the Sales Tax" created. It would be filled with PERS recipients with job titles like "Sales Tax Cultural Competency Coordinator" and "Sales Tax diversity Manager." This grows government. Now if the proposal is "revenue neutral" meaning that the state would collect the same that they do under the current plan we will simply get less service because they will be spending more on state payroll.

It would be like switching from one 40-hour a week job to two 20-hour a week jobs at the same salary. You are worse off because you now have increased commute time and generally made things more complicated.

Next I would like to point out that the proposal to lower the income tax but add a sales tax operates from a position of weakness. It says that government isn't too big. It pretends that the government has multiple revenue streams when there is really only one source of money: US!

If we have identified a tax that is too high, like the income tax, then let's float a proposal to lower it. Why would a conservative pair that up with a proposal to raise another tax? To make sure that public art doesn't take a hit? To keep the needle exchange programs running on weekends? To make sure that we can hire more Art Therapists?

Government doesn't need more money and it doesn't need the same amount it is getting now, it needs LESS. If you need any evidence of this just look at my "50 cuts" posts.

50 cuts: Day 7

When I think of essential government services I think of the...

Diversity Developmentand Coordinating Council (DDCC)
The DHS Diversity Development Coordinating Council (DDCC) was formed on May 2000 at the request of the agency's administrator, Gary Weeks. Director Weeks initiated the formation of the council because he saw the need for a group within and across all of DHS to address diversity issues.

Note that the council has an acronym. That just goes to show you how important it is. It doesn't even have to be a clever acronym with the state, any combination of letters will do.

Seriously, Gary Weeks saw a need to form a new group to address diversity in DHS? First question: why? Is that the function of DHS? Doesn't putting all this time and energy into diversity distract from the real function of DHS which is to provide social services to illegal aliens?

Juan doesn't care if you speak Spanish or have brown skin or are gay when he goes to sign up for the Oregon Health Plan. You just gesture where to sign and he will put down his name and then the same social security number that his 20 cousins are also using.

Juan isn't really interested in sitting there and have a culturally competent conversation with a DHS employee, he's a busy guy, he's got laws to break you know.

50 cuts: Day 6

Percent for Public Art Program
The Percent for Art legislation, passed in 1975, guides the acquisition of Oregon's State Art Collection which includes more than 2,500 original art works.

ORS sets aside "not less than 1% of the direct construction funds of new or remodeled state buildings with construction budgets of $100,000 or greater for the acquisition of art work which may be an integral part of the building, attached thereto, or capable of display in other State Buildings".

There should be no money for art when there are claims of "budget shorfalls." Artwork may be a nice thing to have but it goes pretty low on the totem poll of priorities and I don't believe that a majority of taxpayers think that they should be paying for it while they are told that there aren't enough tax dollars to educate kids or fund the state crime lab.


This piece really speaks to me. It says "what a waste of money."

50 cuts: Day 5

The free market determines whether or not an idea is viable. Government has an idea and funds it regardless.

Oregon Harm Reduction Program for Injection Drug Users:
These are quarterly meetings for Oregonians providing HIV Prevention services to people who inject drugs. Meetings are held in Eugene, Oregon. The morning session is program updates and other business, afternoon sessions are skills building, topics TBA. Space is limited - meeting attendees must RSVP. If you would like to attend or for more information email or call Ann Shindo, HCV and Harm Reduction Programs Coordinator. ann.shindo@state.or.us, (971) 673-0153.

Am I really to believe that injection drug users take time out of their busy schedule of

a) using drugs
b) look for ways to get money to aquire more drugs

to attend "skill building" meetings with our taxpayer funded Harm Reduction Program Coordinator? And what skills are going to matter when you have a heroin needle stuck in your arm?

Interviewer: Well Mr. Smith, your resume says you have some nice skills but we notice that you are sweating profusely, you stole that gold pen off my desk and you appear to be getting ready to inject drugs right now during this job interview...

Sorry Ann Shindo, your job should be cut. But don't worry, if I was in charge I would use that money to hire a police officer who will take good care of the injection drug users that will no doubt be heartbroken that their quarterly meetings got cancelled.

50 cuts: Day 4

It's a touching story. A touching story about a man. A man... who helps illegal aliens with your tax dollars.

DHS seeks to improve migrant workers' health
When a co-worker shared the job announcement with him, Alberto Moreno immediately knew that being DHS migrant health coordinator would be a perfect fit.

This little story of Moreno and how he came to waste your tax dollars includes his boyhood experience where it would seem (I am assuming) that his father broke our immigration laws to get money and the fact that he is upset about missionaries, who do the work the Mexican economy won't, went to his country and didn't speak the language. (Italics added for irony)

The DHS Migrant Health Coordinator position should be eliminated.

We have all heard about the rules regarding illegal aliens and health care but Alberto Moreno doesn't seem to think that the laws apply to him. A while ago he encouraged my imaginary illegal alien friend to seek taxpayer funded health services.

50 cuts: Day 3

Yet another state agency that we could live without once Ron Saxton becomes governor:

The Oregon Liquor Control Commission

Their goals:

Provide optimal revenue in support of state and local governments.

Promote Commission employee growth through creating and nourishing a rich environment.

So government like to make money of alcohol sales and one of their goals is to further their own existance, kind of like a parasite.

So how many state employees does it take to make money off of liquor sales? (Get your mouse wheel ready for some scrolling)

OLCC Employee List

Now if you had a stated goal or reducing drunk driving and $5 million dollars (a made up number) would you invest that money in:

(a) more state police to patrol the roads
or
(b) a bunch of regulatory bureaucrats

Especially considering that the police patrol for people drunk on beer/wine/cough syrup that isn't covered by the regulatory bureaucrats, I think that I am going to go with A.

While I don't think a single Oregonian (other than the employees) would miss the OLCC if it went away tommorow this is really a no-brainer for conservatives. It would save taxpayer dollars, reduce the size of government and create a more free market for liquor sales.

Please Ron Saxton, keep governments hands off of our bottles!

50 cuts: Day 2

A state agency that we will be able to live without:

Oregon Pedestrian and Bicycle Program
The Oregon Pedestrian and Bicycle Program provides direction to ODOT in establishing pedestrian and bicycle facilities on state highways.

It's a matter of priorities. Almost everybody gets to work by car. Every bussiness trasports their goods with motor vehicles. Nobody buys a new tv and hauls it home on their bike.

Yet we spend a disproportionate amount of resources on non-motor "transportation" rather than improving the infrastructure for the majority.

I get very tired of hearing the traffic report say "normal slowing" on an interstate highway. And for some bizzare reason people seem to have accepted that going 15 mph on a road that says 55 mph is normal.

We can laugh at the old soviet union and how they had to stand in line for bread but look at us, we pay for the roads, government diverts the money and we "stand in line" to go to work and go back home.