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The Wrongologist

Geopolitics, Power and Political Economy

Monday Wake Up Call – March 20, 2017

The Daily Escape:

(Restored American Cars at Jose Marti Airport, Havana Cuba. 2014 photo by Wrongo)

America is snoozing on the Republican effort to turn health insurance into a party for the powerful. The LA Times’ reporter Michael Hiltzik took a look at the back pages of Paul Ryan’s Trumpcare bill and found a loophole that allows health insurance companies to pay their CEOs more money:

It does so by removing the ACA’s limit on corporate tax deductions for executive pay. The cost to the American taxpayer of eliminating this provision: well in excess of $70 million a year. In the reckoning of the Institute for Policy Studies, a think tank that analyzed the limitation in 2014, that would have been enough that year to buy dental insurance under the ACA for 262,000 Americans, or pay the silver plan deductibles for 28,000.

This is the opposite of the executive pay strategy under Obamacare. The ACA decreed that health insurance companies could deduct from their taxes only $500,000 of the pay of each top executive.

That’s a tighter restriction than the limit imposed on other corporations, which is $1 million per executive. The ACA closed a loophole for insurance companies enjoyed by other corporations, which could deduct the cost of stock options and other “performance-based” pay; for insurance companies, the deduction cap is $500,000 per executive, period. The reduced deductions would have been the equivalent of raising $600 million in new taxes over 10 years.

Well, that was more than the executives and their bought and paid for Congress critters could stand, so buried in the 123 pages of the House Republican bill repealing the Affordable Care Act, Hiltzik found that:

The House Republican bill repeals the compensation limit as of the end of this year. The GOP hasn’t exactly trumpeted this provision; it’s six lines on page 67 of the measure, labeled “Remuneration from Certain Insurers” and referring only to the obscure IRS code section imposing the limit. Repeal of the provision apparently means that the insurers will be able to deduct $1 million in cash per executive, plus the cost of “performance-based” stock awards and options, like other corporations.

So now, insurance companies’ executives will have a level playing field with other CEO’s. This fits in with the rest of the GOP bill: It does nothing to bring coverage to more Americans or make it cheaper. But it does help to further line the pockets of the privileged, and maybe that’s the point.

Wake up America! As Don Henley once said, “The large print giveth, and the small print taketh away”. We need to read what the GOP is really doing on the back pages of their legislation. To help us wake up, let’s pay tribute to Chuck Berry. To call him a legend of American musical history is an understatement. He received a Grammy Lifetime Achievement Award and Kennedy Center Honors. Berry’s “Johnny B. Goode” was the only rock-and-roll song included on the Voyager Space Probe Record.

Among the bands in which you hear his influence are The Rolling Stones and The Beatles. Both recorded his songs, and John Lennon said this:

If you tried to give rock and roll another name, you might call it Chuck Berry.

Berry played a Gibson model ES350. Sadly, while many great Rock and Roll guitarists have signature Gibsons, there is no Chuck Berry model. Here is Berry with a live version of “Roll Over Beethoven” from 1956. While the video isn’t the best, check out his guitar work on the intro:

Chuck probably duck-walked up to the Pearly Gates.

Those who read the Wrongologist in email can view the video here.

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Sunday Cartoon Blogging – November 27, 2016

Are you sick of all the winning yet?

You have probably heard that Fidel Castro died yesterday. Wrongo was in college in October 1962, at the time of the Cuban missile crisis. We were glued to TV waiting for a nuclear attack that never came.

That Castro survived JFK by 53 years is remarkable, particularly since at least two American Presidents tried to kill him. At the time, Kennedy offered two things in exchange for Soviet removal of the Cuban missiles: (1) the US would pledge never to invade Cuba and (2) the US would secretly withdraw missiles from Turkey. The removal of the nukes from Turkey was delayed several months, so that the US would not appear weak in the face of the Cuban missile threat. The Soviet Union accepted this offer the next day.

After the fall of the Soviet Union, their archives of the Missile crisis showed that Castro wanted the USSR to fire the missiles at the US. Khrushchev came to regard Castro as a lunatic, bent on war. We came very close to invading Cuba, and the Soviets never fully trusted Castro again.

In most ways, Castro’s death is anticlimactic. He retired, and appointed his brother Raul to head the government years ago, and recently, the Obama administration has been effective in improving relations with Cuba. Had Fidel died during a period of greater tension, it might have signaled the possibility of a positive change in relations between our two countries. Sadly, it is probable that the next great change in Cuban/American relations will move us backward under a Trump Administration.

Onward to cartoons. Thanksgiving and Trump’s staffing plans dominated the week.

Many avoided politics at the family repast:

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Democrats weigh their strategy with Trump:

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Trump meets with the New York Times, tells them how to cover the news:

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Our Orange Decider has yet to decide a few things:

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Paul Ryan is locked and loaded for 2017:

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Many who voted for Trump have little or no retirement savings, or regular savings for that matter. Ironically, a majority of them will be reliant on Social Security, Medicare and Medicaid in later life. Sadly, they can’t seem to connect the dots between Ryan’s Ayn Randian dreams of privatization, and how it will affect their lives. It may be too late for many of them.

Deficits are part of the Art of the Deal:

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Those “responsible Republican deficit hawkswanted to restore earmarks the week after the election, but Ryan is making them wait until the new Congress is seated. That way, they won’t destroy the PRETENSE of budget deficits mattering.

The GOP really can’t wait to take off the debt girdle:

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