Israel’s Policies Similar to South African Apartheid


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Photo by Wissam Nassar

Severe civilian death tolls in the siege of Gaza and calls for war with Iran by Israeli Prime Minister Netanyahu call attention to the reality of the Apartheid state imposed by Israel on the Palestinian people.

The existence of Apartheid was verified recently in a poll of 503 Jewish Israelis published by Haaretz, of which 58% said they believe that there is Apartheid in Israel.  They are not alone.  A plethora of Jewish and non-Jewish activists, political leaders, and philosophers have likened the condition in Israel and the occupied territories to South African Apartheid.

Those who reject the notion that Israel is an Apartheid state argue that within Israel, a liberal democracy functions with participation in government by multiple parties including Arab parties. Also, Arab citizens of Israel are treated in hospitals next to Jews, share the same drinking fountains and so forth, which never could have occurred under South African Apartheid.

Israel, however, maintains control of how many non-Jews are allowed inside its borders. Palestinians, many of whom are, or are children of the 711,000 Arabs forcibly removed in 1948 from lands inside Israel’s borders, live in the Israeli occupied territories of Gaza and the West Bank.  Those who try to enter Israel are considered illegal immigrants and are sometimes shot when they even approach the border.  In the occupied West Bank, Palestinians are subjected to severe restriction of movement, being forced to drive on a separate road system from Jewish settlers there. Palestinian settlements there are being surrounded with high concrete walls which destroy farmland and make it difficult to access.  Palestinian residents of these lands under Israeli control have no rights of Israeli citizenship, access to services, or representation in the government.

Apartheid in S. Africa bore an uncanny resemblance. Blacks were removed from the white areas and forced on to “Bantustans” or “Townships” which were declared to be independent nations. There, blacks were deprived of the rights of citizenship and were made to carry passports to visit white areas. Israel was the only country, except for S. Africa, to recognize these “Nations”, institutions of the Apartheid state.

Israel and S. Africa have different histories but are implementing the same policies. President Jimmy Carter, author of Palestine: Peace Not Apartheid stated “that the system of Apartheid in Palestine is not based on racism but the desire of a minority of Israelis for Palestinian land and the resulting suppression of protests that involve violence.”  However, both countries were established in the colonial model, both forcibly relocated indigenous populations, and each formed a nation around a racial identity.  In both systems the threat of violent resistance to Apartheid policies has been used to justify separation.

The growing realization that Israel operates an Apartheid state will eventually cause that state to succumb under the threat of international divestment as S. Africa did. Israel faces the choice that President F.W. de Klerk of S. Africa faced, to end Apartheid and share power with those of another race or face growing international isolation.

In EG, DePetro, RI Future’s Hometown, It’s a Holiday Tree


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Photo courtesy of EG Patch.

The decorated tree in front of East Greenwich Town Hall, like the one on the State House rotunda, is called a holiday tree, reports East Greenwich Patch.

“Was this a Christmas Tree lighting?” wrote editor Elizabeth McNamara. “Not according to the notation on the town’s calendar, which referred to a ‘holiday tree lighting.'”

Ironically enough, East Greenwich is the hometown of both John DePetro, who has repeatedly attacked Gov. Chafee for continuing the tradition of terming the State House decoration with a secular monicker, and me, who has defended the governor for doing so.

Who would have thought East Greenwich, with its all-GOP Town Council, would side with progressive RI Future over conservative WPRO!?!

Well me, actually … not only did I tip off EG Patch to this last night, but also as was reported in Patch earlier in the week, East Greenwich is actually a lot more liberal than the local elected officials would have people believe. This dynamic is evident on this very issue: the town calls it a holiday tree but Council President Michael Isaacs says it’s a Christmas tree after the fact.

It will be telling if this goes unreported on WPRO today as that would lend credence to the criticism that the station is using the issue to beat up on Chafee, who generally snubs WPRO talk show hosts.

Maybe the holiday tree issue has something to do with the 02818 zip code area. Not only do DePetro and I live here, but Chafee lives in nearby Potowmut, which is technically part of Warwick but closer in geography and demographics to East Greenwich. Former Governor Don Carcieri lived here in East Greenwich when he called it a holiday tree as governor, too.

It’s also interesting that this issue would bubble up at the municipal level here in the 02818 zip code, as Chafee is also a neighbor of me and DePetro. He lives in the Potowomut section of Warwick that is actually closer to East Greenwich than Warwick.

RI—What Went Wrong: Competitiveness


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The devastating effect of property tax hikes and the less significant effect of a high unemployment insurance tax, discussed in previous columns, probably explain most of the portion of the unemployment gap that’s not explained by austerity. However, there is one more factor that might play a minor role in weakening our economy with respect to other states’. That factor is competitiveness. By competitiveness, I am not referring to the argument popular among conservatives that Massachusetts somehow has a more “competitive” individual income tax rate than Rhode Island. All that’s necessary to debunk that myth is to plot the tax rates:

Income tax rates in Massachusetts and Rhode Island.
Income tax rates in Massachusetts and Rhode Island.*
List of states by median household income, including Washington DC. Data from the Census Bureau.

What I am referring to is actual competitiveness. Although the Ocean State GOP would have you think otherwise, Rhode Island is not the poorest state in the union. Actually, we rank a bit above the average. The issue is that we are much poorer than the other blue states that surround us, as the rankings of states by median household income show.

As a blue state with a long history of unusually conservative government, this is to be expected. It does, however, have some consequences for our economy. By being a moderately wealthy state surrounded by much more successful states, we get many of the disadvantages of affluence with few of its benefits. One way this manifests itself is the strength of our currency. Because the Northeast is a wealthy region, it has a strong dollar, but this is more of a regional trend than a state-based one. A strong currency makes it harder for a state to compete in trade, which is why we want the Chinese to let their currency strengthen. This probably results in a trade deficit for Rhode Island, but the government does not track the trade positions of individual states, so it is impossible to know for sure. At the same time, we also suffer from competition with wealthier neighboring states, which can offer both lower taxes and better government services because of their wealth, as Josh Barro points out in Forbes. Competition probably explains a small portion of our unemployment gap, but the bulk of the blame falls on massive austerity and unusually silly tax polices.

There is little we can do about these structural disadvantages, but we can definitely learn from our mistakes.  Read tomorrow’s column, the last in this series, to find out how.
(Due to an editorial error, this piece ran out of order. It should have ran on Friday.)
*Graph updated to correct for an error (an out of date Massachusetts tax rate).

Chafee Takes On O’Reilly, Defends Religious Freedom


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Earlier this week I criticized Gov Linc Chafee for not taking on John DePetro, whom we all knew was champing at the bit to spew his annual holiday hate about all things secular – most specifically the dead fir tree in the State House serving as a yuletide decoration.

Tonight Chafee did me one better, snubbing DePetro and instead going straight to the reigning national champion of Christmas bullying: Bill O’Reilly. And Chafee did great. He killed it, in fact.

You can watch for yourself and make your own conclusions, but here are some quick highlights:

You’re going to lecture me now on traditions? Go ahead, tell me a story.

These controversies, you generate them here.

This is a public building, it’s paid for by people of all religions.

Your show, Fox News, you guys are too angry. Listen to you?

But Chafee’s best line of the night was when he surprised everyone with this sign off:

Merry Christmas

Meanwhile, DePetro will have to settle for his local partner in Catholic bullying Bishop Tobin.

Chafee: RI Should Honor Religious Tolerance


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After unceremoniously flipping the switch, Governor Chafee said he is surprised Rhode Islanders aren’t more supportive the state’s long history of religious freedom and tolerance but said he’s surprised more of the local media isn’t focusing on how those values contrast with controversy over the holiday tree.

“I’ve been surprised there hasn’t been more respect for our history here,” he told me in an exclusive interview after lighting the tree. “There hasn’t been that intellectual discussion about that in Rhode Island about these concepts that are now several centuries old.”

He wouldn’t speak directly about the coverage on WPRO in general or John DePetro’s in particular, but he did say it’s up to advertisers, not politicians, to determine who get a soap box on the radio dial.

“I’ve always thought advertisers make decisions on where they advertise,” when asked about the shock jock’s vitriolic and often untrue diatribes against the state’s tradition of calling the decoration a holiday tree.

Watch a short video of my conversation with Gov. Chafee here below:

Read RI Future’s full coverage of this topic here.

Whitehouse, Baldwin Press Obama on Buffett Rule


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Sheldon Whitehouse has joined with his new progressive ally in the Senate, Tammy Baldwin of Wisconsin, to implore President Obama to include his Buffett Rule bill in the so-called fiscal cliff negotiations.

Whitehouse, Rhode Island’s highest ranking progressive, introduced the Buffett Rule bill – also known as the Paying a Fair Share Act – earlier this year. Baldwin introduced the House version when she served in that chamber.

The legislation would ensure that those who make more than $250,000 annually would pay at least 30 percent in income taxes. Read this post Whitehouse authored exclusively for RI Future in April on the matter.

Here’s the text of the letter they sent to the president:

Dear Mr. President:

As you continue to negotiate with Congressional Leaders on a compromise to avert automatic tax rate increases and funding cuts, we write to urge you to include our Paying a Fair Share Act in any deal.  This legislation, which a majority of Senators voted to advance last April, would implement the so-called “Buffett Rule” by requiring multi-million-dollar earners to pay at least a 30% effective federal tax rate.

In remarks on April 11, 2012 urging Members of Congress to support our bill, you noted that, “one in four millionaires pays a lower tax rate than millions of hardworking middle-class households.”  Such inequity, inexcusable at any time, has been compounded by the funding cuts in the Budget Control Act, which fall disproportionately on programs that help lower-income and middle-class families.

In addition to letting the Bush-era tax cuts expire for incomes above $250,000 as you have pledged to do, we believe it is imperative to enact a safeguard to ensure that the highest-earning Americans cannot subvert the progressivity of the tax code through loopholes and special rates not available to middle-class families.  In addition to serving as that safeguard, our Paying a Fair Share Act would reduce the deficit by $47 billion, helping to avoid more painful budget options.

We know the task of negotiating a deficit-reduction deal is difficult, and we commend the work you have done so far.  We once again urge you to champion the “Buffett Rule” in your negotiations and stand ready to assist you in any way we can.

Sincerely,

U.S. Senator Sheldon Whitehouse
U.S. Senator-elect Tammy Baldwin

 

 

Holiday Tree Debate About Freedom, Not Christmas


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Let me be clear about something: just like every other reasonable Rhode Islander, it matters very little to me what the state calls its seasonal decorations. That is not at all why RI Future has dedicated so much space to this issue.

We’re revisiting this topic so often because WPRO, one of the most influential forces in Rhode Island, has effectively declared a biased and manipulative media war on Gov. Chafee’s decision to ever-so-slightly separate the state from the church.

This is not about a war on Christmas, as Fox News and WPRO suggest, this is about a war on religious freedom.

It’s alright for WPRO to take a strong stand on this or any other issue. It’s not alright for the long-standing and well-respected radio station to allow its employees to lie over the public airwaves about it. In fact, it’s a violation of Cumulus Media’s published code of ethics.

It’s not alright for the self-anointed “station of record” to blatantly and deliberately ignore and stifle views that differ from their own. Indeed, its bad for ad revenue, too.

And it’s not alright when any actor in the local marketplace of ideas goes unchecked. In fact, it’s one of the worst things that can happen to public debate.

Calling a dead fir tree draped with knickknacks a holiday tree is in the best tradition of Rhode Island, a state proud to be founded on the idea that the government should be independent of organized religion. It’s also a more inclusive way to honor everyone during the holiday season.

Furthermore, Rep. Art Handy, a progressive Democrat from Cranston, made the point yesterday that the original notion of a holiday tree is something Christians initially borrowed from pagan solstice celebrations.

The Christian Science Monitor has no problem making such reasonable points in a great piece on the controversy. Rev. Barry Lynn, of the Americans United for the Separation of Church and State tells The Monitor:

As a religious person, this idea that somehow anything that government does or what it calls a conifer – Christmas tree, holiday bush – that any of this has any effect on the integrity of the religious impact of Christmas for believers is just shocking, and really meaningless drivel in comparison to all kinds of other matters that do impinge on the sense of the season and the good spirit that may flow from it.

I pulled out that quote because it probably mirrors what the average Rhode Islander thinks about this story. But listen all you want, you’ll never hear these ideas taken seriously on WPRO. Not even during news reports. The closest News Director Bill Haberman could muster up this morning was to say, “we do strive to be different here in our little state.”

He said this just before declaring John DePetro, the meanest, loudest and most disingenuous actor in WPRO’s annual holiday hate spree, as being “Rhode Island through and through.”

The other talk show hosts don’t seem very interested in presenting another point of view either. I called in to discuss this yesterday with Dan Yorke and he kept me waiting through two segments during which he solicited additional callers and replayed audio of the governor. He took my call at 1:43. Some 10 minutes earlier I told his producer that I had a 1:45 appointment. Maybe it was a miscommunication, but maybe Yorke didn’t want to admit he didn’t want to take my call after I have been critical of his colleagues.

That’s why it’s a little useless to continue to put all the blame on John DePetro, though he is the easiest and most obvious target. At this point, blaming DePetro for inciting hate through lies and manipulation is a little bit like blaming a bull for making a mess of a China shop. There’s no reason to expect anything less.

However, as a former employee, a loyal listener and a Rhode Islander who wants to preserve the station’s position in our heritage, I do expect more from WPRO. More news consumers and advertisers should too. I can virtually promise that savvy Station Manager Barbara Haynes and her bosses at Cumulus will listen to us if we make a compelling argument.

Haynes knows well that Salty Brine rolls over in his grave every time DePetro opens his mouth.

Imagine what Salty would think of a WPRO personality using his influence to lead a flash mob at the State House interrupting signing children? You can watch video of DePetro doing this here. At that same State House rally last year, a co-worker said DePetro made an unwanted sexual advance that eventually led to her filing suit against him and WPRO. You can read about that here.

Even his coworkers are now publicly chastising him for his actions last year. Read this from a Ron St. Pierre blog post:

Note to the usual media opportunists who will once again seize the moment to get their pusses on the tube….this time how about you don’t drown out the innocent kids asked to provide the carols at the tree lighting ceremony. You can make your point…and get your mugs on TV….WITHOUT ruining their day.

Rhode Island would be well-served if more people stood up to DePetro’s war on religious freedom. WPRO would do a lot to boost its reputation, as well as its market share, if it led that charge.

RI – What Went Wrong: Unemployment Insurance Taxes


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Another singular component of Rhode Island’s tax system is unusually high unemployment insurance taxes. Unemployment insurance taxes don’t get very much attention (they are excluded from the graph of the distributional effect of taxes in the previous column, for instance), but they can have a very real effect on the economy, particularly in a time of high unemployment. The unemployment insurance tax system is hideously complex, with four different components and rates that go up when the company conducts layoffs. The result is a payroll tax that hits the working class far harder than anyone else, as this graph shows.

Unemployment insurance tax rates in Rhode Island, including the Employment Security Tax, the Job Development Fund Tax, the Temporary Disability Insurance Tax, and the Federal Unemployment Insurance Tax.

High unemployment insurance taxes can help exacerbate an economic collapse because once a business is forced to make layoffs, its tax rate can skyrocket. This tends to help push struggling businesses over the line, and Rhode Island’s high unemployment insurance tax rate pushed us over the line. In the Tax Foundation’s 2013 Business Tax Climate Index, the gold standard for biased conservative tax climate rankings, the unemployment insurance tax is the only tax category where Rhode Island ranks last.  There is relatively little evidence that a better tax climate ranking helps a state become more competitive, but there are real competitiveness issues that do matter, and they are the subject of tomorrow’s column.

Democratic Party Chair Pacheco’s Very Good Letter


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The first time I ever voted in a general election, I was down in North Carolina. A few weeks before Election Day, I had lined up a friend to drive me to the polls (Greensboro, NC is a very car-centric city, and no friend to the public transportation user), but health reasons prevented me from making it to the polls that weekend.

If that had been the only day I could’ve gone to vote, that would’ve been it. I would’ve missed my window of opportunity, and never would’ve cast a vote in 2008. Luckily, the Tar Heel State, despite its weird nickname, had implemented early voting under a previous legislature (early voting has since been reduced under the Republican legislature elected in 2010). I went the next week and cast my vote in a reasonably long line.

There’s no sensible reason to hold Election Day just on a Tuesday (especially given it’s not a day off). And there’s no sensible reason elections can’t take place during a far longer period.

Good thing the Democratic Party chairman understands that. In fact, in a letter to the editor that ran in The Providence Journal, Chairman Edwin Pacheco lays out a pretty simple list of changes; some of them changes of the changes that were just made to voting procedure. Early voting is the first thing. Others include:

  • Returning poll closing times to 9:00 PM rather than 8:00 PM.
  • Returning poll locations to serving only 1900 voters rather than 3000.
  • Review the Board of Elections.
  • Allow the Secretary of State to nominate BoE board members and its executive director, or else allow the Secretary to serve as an ex-officio member.

If this is, as many observers suspect, an opening salvo in Mr. Pacheco’s run for Secretary of State, it’s a pretty good one. If the other Democratic candidates have policy offerings of this caliber, we might actually have a really great campaign about election issues leading up to Primary Day. And though it’s not exactly a make-or-break issue, how we manage and control our elections can be really important. Case in point, you used to have tear your ballot out of the newspaper, and it’d be colored in favor of one candidate or another, meaning everyone could see who you were voting for as you walked down the street.

Fact Checking DePetro


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John DePetro is spreading holiday lies again this year.

Yesterday he falsely claimed a “flash mob” he organized last year did not interrupt the Children’s Choir when they began singing “O’ Christmas Tree” to drown out the kids who were singing “Have a Holly, Jolly Christmas.”

Video, taken at the scene, proves otherwise.

Also keep in mind that DePetro is accused of propositioning a co-worker who later sued him for sexual harassment on the way to this rally to defend Christmas.

DePetro also maintains that Gov. Carcieri always maintained it to be a Christmas Tree, which is another distortion of reality. Politifact covered this already. DePetro, even after the Poltifact story, went on Fox News and repeated the falsehood. This morning, the Providence Journal even runs a picture of a holiday ornament Carcieri had made that does not use the word Christmas.

It’s okay for WPRO to broadcast his unpopular and often disturbing opinions if they feel that is in the best interest of their business. It is not okay for the federally-licensed radio station to sanction obvious lies over the public airwaves.

Meanwhile, his national counterpart Bill O’Reilly is now on the holiday tree beat too. Last night, he too was misrepresenting the situation in Rhode Island.

What’s happening here is we have a governor who is trying to be inclusive, and DePetro and O’Reilly don’t like that.

RI – What Went Wrong: Property Tax Hikes


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In the previous installment, I discussed the large income tax cuts for the rich that hit Rhode Island in 2006, a major change to the economy that was followed by an early plunge into recession.  Unlike the federal government, states can’t offset income tax cuts with debt. So they have to offset them by either cutting spending or raising other taxes. Rhode Island took both approaches.

A critical mechanism for financing the income tax cuts for the rich was slashing the aid that the state government sends to the cities and towns. These severe cuts resulted in a wave of municipal budget crises that we are all too familiar with. Cities and towns closed part of the gap through severe cuts, but they also responded with drastic property tax hikes. Property taxes are notorious for being unusually bad for the economy. Even the Tax Foundation, a very conservative think tank, agrees that property taxes have a bigger effect on business location decisions than any of the other major taxes. Simply put, property tax hikes are very hard on business. The pain is not distributed evenly; property taxes hit small businesses especially hard. The problem is especially severe because the aid cuts were worst in Providence and Woonsocket, where businesses are disproportionately located, so the property tax hikes were worst in areas with the most businesses.

The other side of the economic devastation wrought by property taxes is the property tax on families, which squeezes budgets hard and reduces demand. Because the middle class is more likely to spend its money in ways that are good for the overall economy, shifting the tax budget to the middle class is a big blow to the economy. Redistributing wealth from the middle class to the rich is an especially bad idea when the vehicle is property taxes, because higher property taxes do extensive collateral damage. In the long term, property taxes create perverse incentives that lead to bad urban planning, extensive sprawl, and economic segregation of schools, but they also do serious damage to the housing market. The primary cause of the second Bush recession was the bursting of the housing bubble that inflated during most of Bush’s term in office. Like every state in the union, Rhode Island saw its housing market collapse. This was not the time to raise property tax rates sky high.

In much the same way as austerity begets more austerity by crashing the economy, property tax hikes can lock an economy into a vicious cycle, where higher property taxes depress the housing market, which in turn reduces revenue and requires higher property tax rates. States with large property tax burdens are particularly vulnerable to this feedback loop. Rhode Island, of course, is one of those states with large property tax burdens. Here’s how our tax revenue breaks down by the kind of tax:

Breakdown of Rhode Island tax revenue by type. Data from www.usgovernmentrevenue.com.

One of the consequences of our high property taxes is that our tax system is even worse than usual about taxing the 99% at a higher rate than the 1%. In Rhode Island, the bottom 20% pay a rate of 11.9%, and the top 1% pay a rate of only 5.6%. You can see how the burden breaks down in this (slightly out of date) graph from the Institute on Taxation and Economic Policy’s “Who Pays?” report. (For a fuller discussion of how this works, see Ted Nesi’s excellent piece in Providence Business News.)

Tax distribution in Rhode Island broken down by the Institute for Taxation and Economic Policy. This study was done on 2007 rates but updated for changes to the tax code up to 2009.

 

Athiest ‘Found Common Ground with Religion’

Author Chris Stedman will speak at Bryant University at 7PM on Wednesday, November 28. Copies of his book, “Faitheist: How an Atheist Found Common Ground with the Religious” will be available for sale, with proceeds going to benefit Habitat for Humanity of Rhode Island-Greater Providence. The event, co-sponsored by Humanists of Rhode Island  will be held in the Bryant Interfaith Center. The public is cordially invited to attend.

Having endured intolerance as a gay Christian and then as an atheist interfaith activist, Stedman now argues for respectful dialogue between atheists and believers and cooperation in social action between secular and interfaith communities. He is the Assistant Humanist Chaplain at Harvard University, Values in Action Coordinator at the Humanist Community at Harvard and author of “Non-Prophet Status,”  a blog dedicated to atheist-interfaith engagement.

Stedman earned his MA in Religion from the University of Chicago and served on the Leadership Team of the Common Ground Campaign, a response to anti-Muslim rhetoric and violence surrounding the Park51 controversy. He also served as a Content Developer for the Interfaith Youth Corps and now sits on the Board of Directors of the interfaith global development organization World Faith and advises the “Challenge the Gap” charitable initiative of the Foundation Beyond Belief.

The Bryant University campus is located at 1500 Douglas Pike in Smithfield, RI. Campus sponsors include Literary and Cultural Studies, History and Social Sciences, Applied Psychology, the Women’s Center, the College of Arts and Sciences and the Interfaith Center.

RI – What Went Wrong: Tax Cuts for the Affluent


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In the previous installment I discussed the devastation wrought by massive austerity, which was the principle cause of Rhode Island’s terrible jobs picture.  The traditional justification from austerity apologists is that those public sector cuts were necessary, and Rhode Island was forced to make those layoffs. Of course, this argument makes no sense in Rhode Island not just because the cutbacks began before the second Bush recession but also because the government found the money for a huge income tax cut for the rich, cutting the top rate from 9.9% to 5.99%.  This brings me to the subject of today’s column: taxes.

As I noted in the first column, the bottom fell out of the Rhode Island economy in late 2007, nearly a year before the second Bush recession began. Perhaps it is just a curious coincidence that this happened as the effect of the income tax cuts for the wealthy passed in 2006 began to kick in, but I suspect not.  Indeed, there is considerable evidence that it was these tax cuts that triggered the collapse of our economy.

The details of the tax cuts are slightly complicated. The original tax cut passed in 2006 and imposed an alternate flat tax rate that you could choose to pay instead of the traditional tax brackets. This rate started at 8% and fell by 0.5 percentage per year, hitting 6% in 2010, but in 2010, the government overhauled the tax code again in a tax cut aimed primarily at the upper middle class. You can see the three different rate schemes in the graph below.

Rhode Island tax rates before the 2006 flat tax, the rates after the flat tax (the flat tax, which decreased from 8% in 2006 to 6% in 2010, is shown with the 2010 6% rate), and the current tax rates.

Perhaps the most troubling aspect of these tax cuts is that they were pushed largely by Democrats, an act of conservatism that elated the Wall St. Journal’s editorial board.  Although they are often called the Carcieri tax cuts, and he vigorously supported them, much of the impetus came from General Assembly Democrats like Speaker of the House William Murphy (D-West Warwick) and Majority Leader Gordon Fox (D-Providence).  Fox predicted that “this new tax rate, as it did in Massachusetts, is certain to create new jobs, spur economic development, put money back in taxpayers’ pockets, and otherwise bring Rhode Island to a position of twenty-first century economic leadership in the region and, indeed, in the country.”  To say that did not happen is a severe understatement.

Income tax cuts for the wealthy at the national level provide mild, if inefficient, stimulus for the economy because they are offset by increasing the national debt. (Of course, there are much better ways to spend our nation’s money.) At the state level, however, it’s a different story. Because state taxes are deductible from national taxes, which tax the wealthy at a higher marginal rate, state level income tax cuts for the wealthy result in increasing national income taxes. The tax cuts also made it harder for Rhode Island to capture revenue from Rhode Island residents who have income in other states. Because so many wealthy Rhode Islanders work in Massachusetts, this is a serious issue. States can only tax out of state income if their tax rate is higher than the tax rate in the other state. So lowering Rhode Island’s income tax rate for the wealthy results in Rhode Island collecting less revenue from other states and other states collecting more revenue from Rhode Island, on top of sending more taxes to Washington. The net result is a considerable flow of capital out of the state, which is not good for the economy.

The real devastation from income tax cuts for the rich, though, comes from the spending cuts and property tax hikes that offset them.  The previous section discussed the spending cuts, and how they accelerated after the tax cuts.  The next section deals with the property tax hikes.

Drinking Liberally Hosts “Sock It to Homelessness”


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In a fitting follow up to Bob Plain’s five part series  “Homeless Like Me,”  Drinking Liberally Providence will showcase the important work of the RI Coalition for the Homeless tomorrow night, Wednesday November 28 from 7pm – 9pm at Wild Colonial Tavern.  Participants are encouraged to bring new pairs or packages of socks to donate to the Coalition to help their clients as we head into the harsh winter months.

2012 was a powerful and important year for the RI Coalition for the Homeless because of the landmark passage of the Homeless Bill of Rights, the first bill in the nation to prohibit discrimination of individuals and families experiencing homelessness.

Come learn more about the Coalition’s tireless work to end homelessness in Rhode Island at our next DL and help out the homeless by donating pairs of socks or making cash or check donations to help those most in need as we head into the winter months. Donations may also be made online at www.rihomeless.org.

Drinking Liberally organizers also encourage participants to not only bring sock donations but to wear their own liberal statement socks with loads of flair. There may even be a prize for most creative sock.  Let us know you’re coming by joining our Facebook event. 
What: Sock It to Homelessness with DL PVD
When: November 28 7-9 pm
Where: Wild Colonial, 250 South Water St, PVD
Why: To celebrate the RI Homeless Bill of Rights & to help constituents in desperate need of socks to keep warm this winter

Are We Getting Worked Up Over the Tree Again?


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1987 Rockefeller Center Tree (via Wikimedia Commons, © by James G. Howes, 1987.)

It seems there’s nothing we enjoy more than a good ol’ fashioned religion in the public square debate here in Rhode Island. And, once again, WPRO has come for The Tree. Due to the un-Christian manner in which so-called “Christians” behaved last time, Governor Lincoln Chafee has declined to host a tree lighting ceremony.* I think this is sort of lesson: if you want something to continue, don’t behave like jerks during it.

Personally, I’m weary of the whole damn thing. Okay, obviously, it’s a Christmas tree. People ain’t exactly throwing fir trees up to celebrate the Fourth of July. But the whole issue is surreal. John DePetro crashes the 2011 lighting singing “O Christmas Tree”, not realizing that the song itself is a repackaging of a completely secular song, “O Tannenbaum” (lit. “O Fir Tree”). “Keep Christ in Christmas” they say, but no one is complaining that the word “holiday” has ceased to mean “holy day” and instead just refers to any old day off.

Secularization isn’t just something you can use when it’s convenient. It’s not alright to declare a crucifix a perfectly secular monument to the dead of all creeds, but say that a tree can’t stand in for the celebration of a host of religions. The doublethink here is astounding.

A fir tree by any other name would smell as sweet. I’m sure that Mr. DePetro and his adherents would be horrified to learn that in Russia the tree was almost completely secularized under the Soviets. Laugh to yourself at the idea of these folks crowning their trees with the Red Star of communism for Novy God. But there you go, a symbol depends on the eye of the beholder. I mean, the Vatican didn’t even have a tree until 1982.

Here’s the great thing about Christmas; even an atheist like me can celebrate it (and atheists & non-Christians have been for years). Some people hate the stress of the Christmas season, but the whole idea of it has really affected American culture. There was a good point made by Hank Green of the Vlogbrothers about the holiday shopping season; yeah, it’s sort of symbol of rampant consumerism; but can you really get angry at people for wanting to go out and buy gifts for people?

This is the most altruistic part of the year, between Thanksgiving and Christmas. People get all dopey and cheery, all the music starts to be happy and kind of sappy. I mean, people get annoyed because things are too nice. That’s a pretty sweet problem to have.

I kind of don’t want to end this with a downer thought, but here it is: maybe conservatives are losing because they get worked up about things like what a tree is called and not worked up at all when someone says something terrible about rape, the poor, or anyone not white. Sweating the small stuff, ignoring the big stuff.

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*Update: It was announced that Governor Chafee will in fact continue with the tree lighting as normal, and the tree will remain a “Holiday Tree”.

Will DePetro, Tobin Incite Holiday Hate This Season


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I’m a little disappointed that Gov. Chafee is attempting to sidestep a skirmish with John DePetro and Bishop Tobin. Call it a holiday tree and let these two continue to alienate themselves from mainstream Rhode Island by acting like dogmatic religious bullies out of touch with the concept of equality.

Last year, Tobin likened Chafee to the innkeeper who turned away Jesus’ parents. A more apt historical comparison would be to say that Tobin and DePetro acted like the Romans who sentenced and tortured Jesus to death.

As a practical and reasonable matter – which of course has nothing to do with what DePetro and Tobin do and say – of course the public sector should call such decorations holiday trees rather than Christmas trees. There’s no church/state separation issue, but one term honors that American value and the other doesn’t. Perhaps more importantly, one term is more inherently more inclusive than the other.

What in God’s name is wrong with the Catholic Church when its highest local official chastises the governor for being inclusive! Catholicism in Rhode Island is fast becoming famous for its aversion to inclusion. No one is flocking to the church because it doesn’t respect gay people or other people’s beliefs. God bless the Church for all the good it does, but this crap is sinking it like a stone.

Catholicism, if it wants to survive, should recruit a spokesman more like Daniel Berrigan – who, by the way, used to summer on Block Island – and less like John DePetro, who’s the meanest person in our marketplace of ideas.

Check out his latest column; the only time he takes a break from being bigot is to pick on the governor’s teenage son. This, folks, is not to be confused with political commentary!! On the day before Thanksgiving, he used his radio show to chide poor people for using food stamps to buy a holiday meal. This is stuff that would make Scrooge blush.

We reported in August that the first time he allegedly “propositioned a co-worker who filed a sexual harassment suit against him was in a bus on the way to a rally to defend Christmas at the State House.” Yep, this is Christmas’ unofficial spokesperson in Rhode Island. Good luck with that one, Christmas…

But God bless DePetro too, for he is also the loudest voice for the local conservative movement too, making him the best tool progressives have in their political tool belt these days.

Every time he tries to incite a culture war, he further alienates the local conservative movement from mainstream Rhode Island. Even Don Carcieri, another fiscally-conservative Catholic from East Greenwich, was wise enough to call it a holiday tree and move on.

Far from being frustrated with him, partisan progressives should love DePetro, for he is a recipe for Republican disaster! My advice to anyone who want to foil the trickle-downers is to buy an ad on his show to help ensure that he stays the voice of the right in Rhode Island! To that end, in a sort of politically perverse way, I’m kinda hoping DePetro and Bishop Tobin incite another Holiday Hatefest.

 

ALEC Membership in RI Reduced by a Third


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Is the era of ALEC in the Ocean State coming to an end? It certainly looks like it.

It may have seemed for a short while that 2012 was going to be a banner year for American Legislative Exchange Council here. Rep. Jon Brien, a Democrat and a member of the House leadership team, was added to the right wing bill mill’s board of directors and a one in five state legislators were members.

But things haven’t gone so well for ALEC here in Rhode Island since then.

Not only did Brien lose his bid for reelection – twice, in fact, once in the primary and again in a write-in campaign in the general election – but Sen. Frank Maher, an Exeter Republican who was the other state ALEC chair, lost too. That means ALEC’s two primary points of contact to the General Assembly are no longer members of the General Assembly – talk about cutting off the head.

Brien and Maher weren’t the only local ALEC members to suffer defeat. So did Republicans Larry Ehrhardt, Dan Reilly and Glen Shibley. Add to that list Michael Savage who didn’t seek reelection and ALEC lost 6 members in the state legislature in this election. That’s a reduction of 25 percent.

If you factor in the two legislators who dropped out back in the spring – Sens. John Tassoni and Walter Felag – ALEC’s membership in the General Assembly has decreased by a third since news broke that Brien was on the board of directors.

Rhode Island isn’t the only state where ALEC took an electoral licking. In nearby New Hampshire, five of the 31 ALEC members lost reelection. In Minnesota, 11 of the 26 ALEC members lost and in Arizona 14 ALEC members lost.

While ALEC is down here, it might not be out. Conservative Democrat William Walaska could keep the RI ALEC/DINO tradition going, and look for Doreen Costa to assume the mantle from Brien in the House.

RI – What Went Wrong: Austerity’s Effects


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I ended my previous post on a promise to dig into the mechanics of how Carcieri orchestrated the downfall of the Rhode Island economy. Naturally, we begin with something Carcieri took great pride in—laying off huge numbers of public sector workers. To show just how severe the public sector cutbacks were under Carcieri, I’ve plotted the Ocean State’s public sector workforce alongside the national numbers since 2000. (Both are normalized to 100 at January 2000.)

Before Carcieri’s cuts began to bite, Rhode Island public employment tracked the national numbers fairly closely, but once his policies were in place, Rhode Island’s public sector decoupled from the national public sector and took a precipitous nosedive. The bleeding has continued ever since. The pace of the widening of the gap accelerated in late 2006 after the passage of the 2006 budget, with its infamous tax cuts for the rich, but things didn’t end there. Even though public employment began falling all around the country in the aftermath of the recession, we still lost 7.75% of state and local public sector employees between January of 2008 and April of 2012—the second highest drop in the nation.

In conservative junk economics, laying off those greedy public sector workers is always a great idea, but of course, in the real world those layoffs can have devastating effects on the economy. To begin with, the jobs lost in the public sector are themselves jobs the Rhode Island economy has lost. If public employment in Rhode Island had followed the same trajectory as it did in the nation since 2000, we would have almost 9,000 more jobs in the public sector than we do now, and the unemployment rate would be 1.6 percentage points lower. Roughly half of our unemployment gap is the direct result of mass layoffs in the public sector.

The devastation caused by public sector layoffs does not end there. When public workers are laid off, their finances are devastated, and they start spending much less, driving down the demand for goods and services in Rhode Island. They also don’t have the money to buy new houses and can often wind up in foreclosure, which has devastating effects on the housing market. Rhode Island also ceases to benefit from the work that the public sector workers used to do. As Scott MacKay notes, Carcieri oversaw a general breakdown of government services that Chafee has spent much of his term in office trying to clean up.

Everyone has their favorite story of mistreatment at the hands of our government, but mine is the angry letter I received accusing me of not paying my state income tax. When I called up to protest that Rhode Island had already removed the money from my bank account, the woman I finally reached explained to me that they didn’t really have the staff to check whether everyone they were sending these letters to actually hadn’t paid their taxes.

Estimating the magnitude of the collateral damage from Rhode Island’s public sector mass layoffs is difficult, but it is probably fair to say that does not explain all of the rest of the unemployment gap between Rhode Island and the U.S. average. Part of the rest comes from other public sector cuts, many of which were far more savage than the national average. Pensions cuts, stagnant wages, and reduced morale most likely took their toll by reducing demand, but these cuts happened in other states as well, and much of the pain is spread out over several decades, so it remains unclear how much they added to our unemployment gap (probably no more than a few tenths of a percentage point).

Although the Rhode Island media are reluctant to use the word, what happened in Rhode Island was basically European-style austerity. When governments decide to throw out a century of economics and pretend that taking a chainsaw to the public sector will somehow magically not wreck the economy, the results aren’t pretty. This is partially because serious austerity measures like Carcieri’s public sector cuts can lock an economy into the austerity death spiral, where austerity weakens the economy, prompting more austerity. This is a lesson being learned not just in Europe, but also in states like Rhode Island that went all in for the same bad economic policies. All across America, the states that opted for austerity during the recession performed worse than states that did not.  When conservative extremist Scott Walker took over in Wisconsin and implemented a severe austerity package that prompted mass protests, Wisconsin’s unemployment rate exploded. A similar wave of job losses is currently blowing through the Northeast region as governments from Maine to Pennsylvania opt for mass layoffs. Because Rhode Island’s recent public sector layoffs have been more in line with the national average, we have largely escaped this regional recession.

Comparing us with the broader Northeast region, however, does not usually paint Rhode Island’s economy in a very flattering light. In fact, because most of the Northeast region did not do as badly as the rest of the country, Rhode Island’s singularly bad record is even worse than it looks. So while public sector cuts explain most of our unemployment gap, alone they do not explain all of it. Some other factor must be at work here, a factor that will be the subject of tomorrow’s post.

House of Reps on Facebook Want to Hear From You


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Screen shot of the state House of Representatives Facebook page.

Progressives take note and take action: the state House of Representative’s Facebook page is now soliciting opinions on potential upcoming legislation.

Recent questions include: Do you think the House and Senate should repeal the Voter ID law? Would you support a tax credit for employers who hire graduates of local colleges and universities who choose to stay in Rhode Island after graduation? Would you folks support Marijuana Legalization in 2013?

To like the page and weigh in on its questions of the day, click here.

It’s a really cheap and effective way for the chamber to do some very informal polling on issues. Of course, by this very post I’m trying to manipulate it’s value to legislators. But tea partiers are sharing these posts as well, and flooding the comment stream already … if we want to ensure that our voices are equally heard (which they aren’t) we need to compete in the same venues.

Another question I have that I’m betting no one really knows the answer to yet: is the information contained on social media accounts belonging to state and municipal agencies a public record?

Welfare Program Stat More Misleading than Wrong


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The State House in late November. (Photo by Bob Plain)

Good for Politifact for calling foul on Rep. Patricia Morgan’s misuse of the old talking point that welfare programs account for more than 40 percent of the state budget.

First of all, her numbers were flat our wrong. As Politifact points out, her definition of welfare programs is quite broad. It includes “such spending as Federal Emergency Management Agency payments for storm cleanups as well as the legislative grants representatives and senators give out to such groups as Little League teams in their districts.”

The actual number, argues the ProJo, is 31 percent. Still, the paper of record decides to award her a half-true.

Fair enough, given that Linda Katz, executive director of the Economic Progress Institute, agrees with the number. But, watch this video to learn what programs are actually behind that number, who is actually fitting the bill and what some of the consequences would be of cuts to these programs.


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