6/25/2015

Exhale: Court protects Obamacare subsidies in Michigan, 33 other states

Thanks to the Affordable Care Act, millions of Americans - including myself - can be confident that a serious illness won’t force us into bankruptcy. Subsidies are an important part of the ACA’s formula for success.

Three years after losing a Supreme Court ruling on the constitutionality of Obamacare - and with the help of Michigan Attorney General Bill Schuette - conservatives made another attempt to gut the law through the Courts.

So much for that.

In a 6-3 ruling, the Court found that, yes, the subsidies do apply to states which take part in the federal exchange.

A couple of key liked from the ruling:

So when deciding whether the language is plain, the Court must read the words “in their context and with a view to their place in the overall statutory scheme.”
Here, the statutory scheme compels the Court to reject petitioners’ interpretation because it would destabilize the individual insurance market in any State with a Federal Exchange, and likely create the very “death spirals” that Congress designed the Act to avoid.
That's what the plaintiffs were trying to go for - at least that's what the cynic in me thinks. But despite the Court's known conservative lean (the majority from Citizens United is still there in its entirety), the latest attempt to dismantle life-saving Obamacare has run out of steam.

I stand by my prediction that in 40 years, the Tea Party of the 2050s will be holding up signs that say, "Get your government hands off my Obamacare!"

6/09/2015

Cotter vs. Jesus and Reagan

Last month, State House Speaker Kevin Cotter announced his attempt at a road funding proposal. It's about what you'd expect: Accounting gimmicks, high-minded rhetoric, and other malarkey we've come to expect from the Party of Palin.

Perhaps the worst aspect of Cotter's "plan" is the elimination of the state-level Earned Income Tax Credit (EITC). The plan would "save" $117 million dollars - a tiny fraction of what is needed to fix our infrastructure - by taking that money away from the working poor. With less money to spend, the working poor would be unable to spend more money - which would hurt the economy and reduce sales tax revenues (thus negating any "savings" from cutting the EITC).

Put another way, while tax cuts and credits for the rich have no economic benefit, tax cuts and credits for the poor have a significant effect on the economy.

This wouldn't be the Republicans' first attack on the EITC since coming to power in 2011. In 2010, EITC-eligible Michiganders could claim up to 20% of the federal-level EITC on their state returns. In 2011, Republicans reduced that to 6%.

Kevin Cotter thinks even that is too much. Ronald Reagan thought otherwise. Reagan called the EITC "the best anti-poverty, the best pro-family, the best job creation measure to come out of Congress." Indeed, it was the last Republican president before Reagan - Gerald Ford - who first signed the EITC into law.

But of course, Reagan - and especially Ford - would be far to the left of today's Republicans.

And Jesus Christ? The Nazorean whom Republicans like to trot out during campaign season? Well, perhaps a look at Matthew 25 would be in order.

Then he will say to those on his left, ‘Depart from me, you accursed, into the eternal fire prepared for the devil and his angels. I was hungry and you gave me no food, I was thirsty and you gave me no drink, a stranger and you gave me no welcome, naked and you gave me no clothing, ill and in prison, and you did not care for me.’ Then they will answer and say, ‘Lord, when did we see you hungry or thirsty or a stranger or naked or ill or in prison, and not minister to your needs?’ He will answer them, ‘Amen, I say to you, what you did not do for one of these least ones, you did not do for me.' And these will go off to eternal punishment, but the righteous to eternal life.”


So by targeting a credit that helps working people, Kevin Cotter is shunning Jesus. So are those who support eliminating the EITC.

For Cotter's sake, one hopes that he learns the error of his ways... before it's too late.

6/06/2015

President Obama's eulogy for Beau Biden

To know Beau Biden is to know which choice he made in his life. To know Joe and the rest of the Biden family is to understand why Beau lived the life he did. For Beau, a cruel twist of fate came early –- the car accident that took his mom and his sister, and confined Beau and Hunter, then still toddlers, to hospital beds at Christmastime.

But Beau was a Biden. And he learned early the Biden family rule: If you have to ask for help, it’s too late. It meant you were never alone; you don’t even have to ask, because someone is always there for you when you need them.

And so, after the accident, Aunt Valerie rushed in to care for the boys, and remained to help raise them. Joe continued public service, but shunned the parlor games of Washington, choosing instead the daily commute home, maintained for decades, that would let him meet his most cherished duty -– to see his kids off to school, to kiss them at night, to let them know that the world was stable and that there was firm ground under their feet.

As Joe himself confessed to me, he did not just do this because the kids needed him. He did it because he needed those kids. And somehow, Beau sensed that -– how understandably and deeply hurt his family and his father was. And so, rather than use his childhood trauma as justification for a life of self-pity or self-centeredness, that very young boy made a very grown-up decision: He would live a life of meaning. He would live a life for others. He would ask God for broader shoulders.

The full version is here.

6/04/2015

Bieber is new Michigan AFL-CIO chief. Ron, not Justin.

As you may know, Karla Swift stepped down as president of the Michigan AFL-CIO after four years. Taking her place is Ron Bieber, a longtime UAW leader.

Ron Bieber is a third-generation UAW member, and the son of former UAW President Owen Bieber. Prior to serving as CAP Director, Bieber served as Assistant Director of the UAW’s General Motors Department. Bieber joined UAW Local 730 at age 18, after hiring into General Motors Metal Fabricating plant in Wyoming, Michigan. He currently lives in Warren with his wife, Patti.

I can't say I know too much about Ron, although I've seen him at MDP events. Hs father is still quite involved in political and labor activities on the west side of the state, as is his brother.

5/22/2015

To Serve and Protect: Nickelback 'wanted' by Australian police

This is wonderful.

"Police are on the lookout for these men who are believed to be impersonating musicians," the force said in a Facebook post on Wednesday, which includes a rough drawing of the suspects.

As it turns out, the Queensland police have a history of detesting Nickelback. In December 2014, they stated they would destroy a Nickelback CD received as a Secret Santa gift.

God bless our police for all they do.


5/06/2015

Nine reasons Proposal 1 went down in flames

Some people would vote against a tax increase even to save their lives. But as I explained yesterday, most voters - even in Republican-leaning areas - do understand the need for taxes.

So what doomed Proposal 1? A number of factors:

People just don't trust Lansing politicians. The people who put this on the ballot are not trusted. People are naturally going to be suspicious of anything politicians in Lansing support.

Lawmakers didn't listen to voters. As I'll discuss later, the disconnect between lawmakers in Lansing and ordinary people across the state is bigger than ever. Lawmakers did not consider their constituents when putting together this proposal - in part because many of them haven't taken the time to understand their constituents' needs.

Folks want the rich to pay more. Many people would've been fine with the proposal had Lansing not shifted the tax burden away from corporations and onto individuals over the past four years.

It was a sales tax hike, not an income tax hike. Many people who voted against it did so out of concern about the regressive nature of the sales tax. Because poor people spend a higher share of their income on sales-taxable items, a higher share of their income is also paid to the state via the sales tax.

The legislature didn't do its job. This was a common frustration among pretty much everybody. It made supporters reluctant to vote Yes. For many opponents, it's what clinched their No vote. There were even quite a few people who didn't vote at all because of this. Lawmakers are paid $80,000 per year to tackle tough challenges - why didn't they do that?

It couldn't be explained easily. I know we all wish 30-second sound bites weren't the norm in our politics, but...

Voters didn't see what was in it for them. If you want someone to vote a certain way, you need them to (1) have a reason to go vote and (2) have a reason to vote the way you want them to vote.

It's not enough. $1.2 billion would have stopped the bleeding - but it wouldn't have done much to reverse the long-term problem of poor investment in our roads.

The anti-Prop 1 folks were much more energized. Whatever message people wanted to send, they were ready to send it - and they came out in force. Proponents of the proposal, on the other hand? Even many supporters 'held their nose,' the proposal was bad - but that the alternative would be worse. People who have to hold their nose to vote for something will hardly ever do much to persuade other people to vote.

Despite people's objections to Proposal 1, some things are clear: Voters do not trust the Republican-led government. They oppose cutting education and health in order to fund roads. They support funding our schools and communities. And they are willing to pay taxes - if they feel they're getting a fair shake.

5/05/2015

Voters OK with taxes, but not with Lansing

The Tea Party is already trying to spin Proposal 1's defeat as either (1) the voters sending sending lawmakers an anti-tax message or (2) the result of confusion from the addition of such things as Earned Income Tax Credit and education funding.

They're wrong.

Many things combined to doom Proposal 1, but as voters in Michigan have repeatedly shown, they're okay with paying taxes - if they know what they're getting.

Michigan Has Raised the Sales Tax Before

It was just 21 years ago - the same year as the "Republican revolution" of 1994 - that Michigan voters voted overwhelmingly to raise the sales tax from 4% to 6%. That proposal, like this year's Proposal 1, had a lot of complex parts, including provisions relating to taxable value of homes.

Nearly 70% of voters approved it.

Proposal 12-5

In 2012, tea partiers sought to get Michigan to require that any tax hikes get the support of 2/3 of the legislature.

That went nowhere fast. In fact, more people voted No on that proposal than voted for or against any proposal since 1963 - and possibly any proposal in Michigan history.

Politicians No Longer Punished for Raising Taxes

if the 1983 recalls of State Sens. Phil Mastin and David Serotkin seem long ago, it's because they are.

In 2011, Republicans passed a tax shift that forced poor people to bear the brunt of Michigan's financial burden. We've had two elections since then - neither of which led to Democrats gaining any control in Lansing.

After Democrats (and a few Republicans) voted to raise the income tax in 2007, Democrats gained nine seats in the state House in 2008. That year, Mark Schauer actually got a promotion, defeating Tim Walberg in a red-tilting district.

Republican Kent County Backs Millage Increases

Last year, Rick Snyder got 62% of Kent County's vote. Even Terri Lynn Land got 52% of the vote here. Yet voters in this Republican-leaning county passed three - not one, not two, but three - tax increases:



The result of these millage increases is that most Kent County residents who live outside of Grand Rapids are paying $31 per year for every $100,000 in value to their house.

In fact, today's vote on Proposal 1 is likely to represent the first failed tax vote on the ballot anywhere in Kent County in two years.

So don't fall for the anti-tax spin. Even many opponents of Proposal 1 know that taxes are necessary, even if they didn't like this proposal.

Who I'm voting for today

I'm voting for a lot of people today.

No, there are no names on the ballot - just proposals - but the results of these proposals will affect people both here and around the state.

So I'm voting for children to learn from the best teachers in state-of-the-art buildings. I'm voting for teachers to have good-paying jobs. I'm voting for Earned Income Tax Credit beneficiaries who would be better off with full restoration of the EITC. I'm voting for road workers who would have steady jobs.

What's right isn't always popular - and what's popular isn't always right. The results of Proposal 1 will likely bear that out.

Whatever.

Like a Democrat voting in a red district, I'm choosing conscience over popularity. I'm choosing students, teachers, workers, and the poor over letting Gary Glenn decide the future of road funding. I can live with a Yes vote. I can't live with letting Todd Courser and company decide how - or if - our roads get fixed.

It's been nearly five months since Proposal 1 was voted onto the ballot. I've heard few decent reasons to vote against it. Even the best reasons for a No vote can be debunked. And the worst reasons for voting No? Well, see Sunday's post about the cruelty of punishing people for potential political profit.

There's never been a perfect proposal. Prop 1 is no exception. But good things will never happen as long as we keep making the perfect the enemy of the good. Even if Prop 1 is "meh," I'll take "meh" over "blegh" any time.

So today, I'm voting Yes.

Then I'm going to do what I can to make sure Democrats win the State House (and other offices) in 2016. Then I'm going to help un-f**k the redistricting process. Then - and only then - can we even consider making responsible investments in infrastructure. And no matter how badly Prop 1 goes down, I'll be able to sleep knowing that I did my part.

4/08/2015

Demonizing the poor

One of the many consequences of having so many states controlled by Republicans is that there has been a flurry of bills demonizing the poor. One of the most common ways of doing so is by dictating what can and cannot be bought using food stamps and other forms of assistance. Many of these bills feed off of stereotypes of the poor - and stereotypes of "those people."

Emily Badger at The Washington Post notes that there are a lot of problems with these bills:

The first is economic: There's virtually no evidence that the poor actually spend their money this way. The idea that they do defies Maslow's hierarchy — the notion that we all need shelter and food before we go in search of foot massages. In fact, the poor are much more savvy about how they spend their money because they have less of it (quick quiz: do you know exactly how much you last spent on a gallon of milk? or a bag of diapers?). By definition, a much higher share of their income — often more than half of it — is eaten up by basic housing costs than is true for the better-off, leaving them less money for luxuries anyway. And contrary to the logic of drug-testing laws, the poor are no more likely to use drugs than the population at large.

The second issue with these laws is a moral one: We rarely make similar demands of other recipients of government aid. We don't drug-test farmers who receive agriculture subsidies (lest they think about plowing while high!). We don't require Pell Grant recipients to prove that they're pursuing a degree that will get them a real job one day (sorry, no poetry!). We don't require wealthy families who cash in on the home mortgage interest deduction to prove that they don't use their homes as brothels (because surely someone out there does this). The strings that we attach to government aid are attached uniquely for the poor.

That leads us to the third problem, which is a political one. Many, many Americans who do receive these other kinds of government benefits — farm subsidies, student loans, mortgage tax breaks — don't recognize that, like the poor, they get something from government, too. That's because government gives money directly to poor people, but it gives benefits to the rest of us in ways that allow us to tell ourselves that we get nothing from government at all.

Political scientist Suzanne Mettler has called this effect the "submerged state." Food stamps and welfare checks are incredibly visible government benefits. The mortgage interest deduction, Medicare benefits and tuition tax breaks are not — they're submerged. They come to us in round-about ways, through smaller tax bills (or larger refunds), through payments we don't have to make to doctors (thanks to Medicare), or in tuition we don't have to pay to universities (because the G.I. Bill does that for us).

I would add a fourth problem: many poor people don't vote.

There's a strong correlation between income an voter turnout. Nearly 80% of those who make $150,000 per year voted in 2008 - almost twice the turnout rate of those who make less than $15,000.

Of course, that also ties in with voter ID laws.

I've never been extremely poor (I've always had a roof over my head, for instance), but I've felt the pain of being on a limited income - and even no income.

It sucks.

But this sinister trend is is part of a vicious cycle that is undermining our civic life. Poor people are less likely to vote, so politicians ignore their needs. And because many politicians ignore the poor, the poor don't think government matters - so they don't vote.

It's up to us - poor, middle class, and everyone else - to break that cycle.

In the coming weeks, I'll talk about how we can break this cycle.

4/02/2015

Thank you, MLive Media Group and Jack Lessenberry


Michigan needs at least $1.2 billion per year to address its steadily deteriorating roads. Some experts say we need as much as $2 billion per year. The situation requires new revenue, and we need it yesterday.
Voters must pass Proposal 1 on May 5. Failure to do so will have harmful consequences for schools, cities and our state's economy -- not to mention your car and yes, potentially your safety.

Don't be fooled by the anti-Proposal 1 talk of a Plan B. There is no viable alternative. The closest thing to it was the failed Bolger plan of 2014, a scheme that would have eventually cost our schools a devastating $800 million per year.

Indeed, any proposal to fund road improvements without raising taxes will likely result in big losses for schools and cities. There isn't anywhere else in the budget that would provide the kind of money our roads need.

The whole thing is worth a read.

So is this from Jack Lessenberry who notes that if Proposal 1 passes:

There will also be a little more money for local governments and the schools, and even some to invest in mass transit. Plus, the working poor would get a much-needed break.

The EITC, the Earned Income Tax Credit stripped from them earlier in the Snyder administration would be fully restored; for many, this will make a significant difference.

Politics really is the art of the possible, and I don't think there is any other rational choice.

If the voters turn down Proposal 1, none of those good things will happen, at least not for years, and the roads will get worse and worse.

The arguments against it are mediocre at best, ridiculous at worst. I'll have more on that next week.