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OPINION
Mountain Views News Saturday, April 23, 2011
STUART Tolchin..........On LIFE
HAIL Hamilton My Turn
Mountain
Views
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Susan Henderson
City Editor
Dean Lee
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Patricia Colonello
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Richard Garcia
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Lina Johnson
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Teresa Baxter
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Stuart Tolchin
Kim Clymer-Kelley
Christopher Nyerges
Peter Dills
Hail Hamilton
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La Quetta Shamblee
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John Aveny
THE MARCH
Income for 400 Richest
Americans Soars, Tax
Rate Falls
I keep
worrying
about the
future of the
planet and,
when I’m
not thinking
about that, I’m
wondering
about the origins of life. The
problem is that while I’m
thinking about distant pasts and
unforeseeable futures, the present
seems to be falling apart. For me
it feels something like being a
child whose parents have gone out
for the evening and have forgotten
to call a baby sitter. It feels like I’m
all alone and I don’t feel safe and I
don’t know what to do or who to
call.
It’s like the whole Nation is
supposed to root for the Yankees
without ever noticing that we are
not Yankees. Forget the trickle-
down theory - what helps the rich
and powerful does not help the
rest of us. Throughout our history
the general population has been
manipulated to lose sight of their
own interests. When I was in High
School and Viet Nam was starting
up, the Recruiters would come
to the School and explain that
we guys all had a 6-year military
obligation and were subject to the
Draft. I don’t recall hearing any
objections; it was too early for
anyone to think for themselves. At
UCLA, military training (ROTC)
was mandatory. I remember
because I got a D in it. (I could
never get the hang of marching
or shining shoes). The major war
that my friends and I fought was
our fight to stay out of the Draft
and to convince our parents that
this was the right thing to do. At
that time ,everybody had fathers
who fought in World War II who
believed in the United States
as the land of opportunity and
were willing to fight for it. This
generation had grown up in the
Depression and were living a life
much more prosperous in the
1950’s than the life they had lived
through in the 1930’s. Slowly the
times they were a’changing.
In the 1960’s we fought an
unpopular war, but still it was for
some agreed upon ends - we were
stopping Communism, and the
Nation agreed that this was a good
thing to do. I guess, of course,
that during the war the top one or
two percent were making millions
like they always do. Certainly,
one of their sons was President
and making love to movies’ stars,
but somehow most of us believed
that he was busy saving the
world and that we were in good,
responsible hands. I believe that
the eventual cancellation of the
draft resulted in a kind of decades-
long generational political
indifference. During this time the
March continued and, while the
rich got richer, the rest of us were
diverted and became increasingly
powerless without really noticing.
We were useful for awhile to help
the rich get richer. Those of us
who went to College incurred
huge debts which required us to
accept jobs that would allow us
to repay the debt, but at the same
time made us slaves to the system.
We were encouraged to take
financial risks, and we bought
properties and made more money
for the banks. After a while the
bubble burst and all this money
was given to the banks to save
them from going under. Sure,
we were told, the bankers had
made mistakes but they were too
big to be allowed to fail and they
had to be bailed out. Now, in
this very disappointing Obama
administration, these same
bankers are running the country
and there is a new Scapegoat. Who
is it? Of course, it’s us: the poor,
the aged, the Middle Class, the
debt-ridden non-special people.
We had the gall to get old, to get
sick, to buy houses, to belong to
Unions, and to believe in - the
new naughty word - Entitlements.
We expect to get our pensions, our
Social Security, and our Medicare.
We are not the bad-guys. We
are just the 98 per cent; the non-
innovators, the passive people
who do what we are told and hold
down the jobs. Already there
are not enough jobs. Does that
mean we are now useless and
redundant? If we are not needed
by the Special People, who may
well be on their way to forming
their own nation-less global
government, will we be prohibited
from reproducing like in China.
Maybe we will be starved to death
by artificially induced droughts, as
was the case in the Soviet Union
wherein twenty million people
died unnecessarily.
Help. I’m scaring myself. Maybe
a positive way of looking at this
potential horror-show is to view
the Tea Party Movement as simply
a way of not going along with a
program that leads to our own
destruction. No more passivity;
Demonstrations in the Street;
Homer Simpson for President.
Really, remember how we
celebrated when Obama was
elected? Time marches on. Let’s
just all work toward marching in
a new direction and I wish I could
point the way.
Now that all of us
have sent off our taxes
to Uncle Sam (at least
the 50% of us who still pay taxes), I thought
it would be a good time to look at the gross
inequities of our current regressive income
tax system.
According to a study by the Center for
Budget and Policy Priorities, the overall tax
burden has continued to increase for middle
class taxpayers, while the rich pay less.
The study reviewed pre-recession IRS data
from 1993 to 2007.
“The effective federal income tax rate for
the 400 taxpayers with the very highest incomes
— 3 out of every 1 million filers —
has declined by nearly half over the past
two decades, even as their pre-tax incomes
have grown five times larger, new IRS data
show.”
The top 400 households paid 16.6 percent
of their income in federal individual income
taxes in 2007, down from 30 percent in
1995. This decline works out to a tax cut of
$46 million per filer in 2007, or a total of
$18 billion in tax cuts for these households
per year.
To make it into the top 400, a household
needed an adjusted gross income of at least
$35 million in 1993 (in 2007 dollars) and
$139 million in 2007.
Avi Feller and Chuck Marr who authored
the Center’s study say, “The decline in
effective tax rates at the very top is due
in large part to the capital gains tax cuts
enacted in 1997 and 2003. The top marginal
tax rate on capital gains is now 15 percent,
less than half the top tax rate on wages and
salaries. The top 400 taxpayers derived two-
thirds of their income from capital gains
and qualified dividends in 2007.”
Over roughly the same period, the top 400
filers enjoyed huge gains in pre-tax incomes.
The average pre-tax income of this group
rose by over 400 percent between 1993 and
2007, equivalent to a $275 million increase
per person, after adjusting for inflation. In
2007 alone, average pre-tax incomes rose by
31 percent among these individuals.
In short, the top 400 filers now pay much
lower effective tax rates on vastly larger
incomes.
Even as their effective tax rates were
declining sharply, high-income filers
benefited disproportionately from economic
growth, other IRS data show. During the
last economic expansion (from the end
of 2001 to the end of 2007), two-thirds of
the nation’s total income gain flowed to the
highest-income 1 percent of Americans.
And between 1993 and 2007, the average
pre-tax income of the top 1 percent of filers
more than doubled, after adjusting for
inflation, rising by 114 percent.
The top 400 taxpayers enjoyed even
larger gains in pre-tax incomes. Between
1993 and 2007, their average adjusted gross
income increased by over 400 percent, after
adjusting for inflation: from $68 million
to $345 million (in 2007 dollars). Their
incomes grew rapidly between 1995 and
2000, dropped during the 2001 recession,
then rose rapidly again from 2002 to 2007.
Because of the steep reduction in effective
tax rates for the top 400 households, their
after-tax incomes grew even faster than
their pre-tax incomes. Between 1993 and
2007, their average income after federal
income taxes increased by 475 percent.
Feller and Marr conclude, “Although the
2007 data reflect the height of the last
economic expansion, effective tax rates on
the richest 400 taxpayers will likely remain
very low after the current recession, largely
because the portion of its overall income
this group derives from capital gains has
remained relatively constant over the past
decade. In the last recession, this figure
dropped from 64 percent in 2000 to 55
percent in 2002, before climbing again
amidst further capital gains tax cuts and a
strong stock market.”
This is not good news for those of us
unlucky enough to be stranded in the
middle class. If the markets rebound, with
the preferential capital gains tax rates
extended, the very highest-income filers
will continue to enjoy very low effective tax
rates well into the foreseeable future, even
as budget deficits become a more serious
problem.
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Circulation for the County
of Los Angeles in Court
Case number GS004724:
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Madre; in Court Case
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is published every Saturday
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Madre, California, 91024.
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Curbing Bad Behavior:
TEENS - SLOW DOWN!
by Ron Carter
SENSE OR NONSENSE?! -
Some Actions/Statements on County,
State and Federal Issues Made Recently
By Our Elected Officials:
Parents who have
teenage childred
should advise them
to stop speeding
and pay attention
while driving their
automobiles. Last
Sunday, I lost my
beloved nephew;
he was killed in a car crash in Brooklyn, New
York. This young man, Devon Burgess, 19
years old, had ambitous dreams. He was going
to attend Berkeley University next semester
and realized his dream of becoming an engineer.
You can imagine how proud I was of his
achievement to attend one of the premier universities
in the country. Finally, I was going to
have a blood relative on the West Coast (California)
with me. Thanksgivings and Christmas
was going to be memorable while I bond with
him. It was not to be.
The headline in one New York newspaper
read “Speed Kills Man.” Devon was the front
seat passenger in a Chrysler Sebring which
slammed into a utility pole killing him. The
driver, 19 years old, is hospitalized with internal
injuries. The two young women who were
sitting in the rear are also severly injured. One
of them may need cosmetic surgery, the other
has broken bones and was on a respirator. My
family is very sad and prayful with Devon’s
passing: he was our “shinning star.”
Devon’s passing gave me the push to write this
blog. I have been pondering scribing this blog
for a while. After his death at such a young age,
I realize that life waits on no one. So, I immediately
took action and wrote the first blog. He
will forever be remembered - by our family –
as an intelligent, kind, hardworking, humble
and Christian young man.
The statics of teenagers dying from automobile
accidents are way too many. There is a reason
why the insurance cost for teenage drivers is
very expensive; they, teenagers, incure too
many accidents. It is imperative that we save
our teenage children by helping them curb
their bad behavior. They must slow down and
pay attention, no texting or watching TV, while
operating a motor vehicle. We have to inform
them that motor vehicles can be “weapons”
and weapons kill. If we are allowing our children
to drive cars, the same attention that we
gave to buying the vehicle must also be present
in sharing with them the responsibility of
owning and operating an automobile.
Parents, please advise your teenagers to slow
down while driving automobiles. And, we
adults should heed to the advice we intimate
to our children.
Reprinted by permission from March 3, 2011 Post
Ron Carter is the Managing Director of the
Carter Agency in Pasadena. He hosts a blog
called: Curbing Bad Behavior that discusses a
variety of topics. Go to: www.thecarteragency.
com/blog/
ANTONOVICH PRAISES MLB WRESTING CONTROL
OF DODGERS, CALLS FOR RETURN OF O’MALLEY
FAMILY
“I commend Baseball Commissioner Bud Selig’s wrestling control
of the Dodgers and bringing integrity back to the game. It is
my hope that the Commissioner appoints a representative from
the O’Malley family to oversee the team’s business affairs during
the investigation – a return of the O’Malley family to the Dodgers
would be a home run for fans and the Dodgers,” said Mayor
Michael D. Antonovich.
Letters To The Editor
RIP VOLUNTEER FIRE DEPARTMENT
Dear Editor:
It is really disturbing that local newspapers and local gossipers have
failed to take note of one of the darkest days in Sierra Madre's recent
history with the dissolution of the Sierra Madre Volunteer Fire Dept. by
the city council at its last meeting. They have replaced the last volunteer
fire department in Los Angeles County with a part-paid/part-volunteer
department.
For those of us that have responded to thousands of calls as volunteers,
it is a bitter pill to swallow. Of course, with the mandates being
made by the state and federal government,, plus changes in personal
phiolosphies (let John do it), other commitments, we should have expected
this to happen.
There was a close call like this back in 1963 but was averted by the city
administrator and fire chief actively recruiting and seeking a change in
fire department by-laws to permit people who lived outside the community,
but worked in town, to join the department. A daytime fire at a
malt shop on Baldwin when only four firefighters responded. Between
Sierra Engineering and the Sierra Madre News six new members were
added to salvage the department. Unfortunately we don't have those
resources available today and thus the blot in our history.
The cost will be high and with the additon of perks that will have to
be offered, probably including retirement at 55 with personnel being
on the dole for more years then they worked, and the chance to 'double
dip', we are putting our future generaton in a debt volunteer fire department
were created to avoid.
Luckily, we are left with many fond memories of the past and sad for
those that did not have the opportunity to serve the community on a
department that served this city for 75 years.
George A. Maurer, Sierra Madre
What’s Wrong With This Picture?
Photo courtesy Irene Tolchin
Mountain Views
News
Mission Statement
The traditions of
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newspaper and
the concerns of
our readers are
this newspaper’s
top priorities. We
support a prosperous
community of well-
informed citizens.
We hold in high
regard the values
of the exceptional
quality of life in our
community, including
the magnificence
of our natural
resources. Integrity
will be our guide.
MR. PRESIDENT PLEASE!
It has become increasingly common, that news outlets refer to
President Obama as Mr. Obama. Mr. Obama? As a veteran of the US
military that served my country with pride for 10 years, I find this
trend to be disturbing and disrepectful. At the moment of his
inauguration, Mr. Obama became President Obama. The President of
the
United States of America is an institution not a person, and should be
respected at all levels of citizenship. In one day this week, two
different radio stations and every network news channel that covered
the president's visit to Southern California reffered to our president
as Mr. Obama. Presidents Regan, Bush(both), & Clinton were always
addressed properly and it is shameful that we offer any less to
PRESIDENT OBAMA.
Fred Thomas, Sierra Madre
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