December 2009

Costs Aren’t What They Were In 1980

Posted 12/28/09 at 10:41am by jamie

I am going to stick with 1980 for my discussion on the federal poverty level because in this post it also works to exemplify the problems.

In 1980 families didn’t have as many costs. Two costs are internet and cable. Some might argue that those are luxury items, but when you are talking about a family raising children then the internet becomes a necessity. Also given the new digital television requirements and the fact that many areas can no longer receive over the air broadcasts, cable becomes a necessity. On the low end these two items can total an additional $60 a month ($20 for bare basic dial-up internet and $40 for bare basic cable. This is prices in the Cincinnati area).

Another cost that exists today that didn’t in 1980 and is very much prudent when talking about families is school fees. Schools have gone to some unique practices that didn’t exist in 1980 to recoup costs and that is by charging parents for school. Having talked to people I know with children in high school I have found out that they are paying an average of $500 a year for student fees, books and materials per child. So if you have two children in high school then you are paying out an additional $1,000 a year.

So let’s go ahead and use my adjusted FPL for a family of four I have been going on today and add these new costs in

First as a reminder the FPL for a family of 4 is $22,050. As I laid out in my previous post the FPL adjusted by the true CPI-U comes out to $24,653 and now let’s add in these new costs that didn’t exist in 1980:

Republicans Don’t Care About Terrorism – They Care About Playing Politics

Posted 12/28/09 at 10:36am by jamie

We saw it after Ft. Hood and now we are seeing it again – a Republican Party that cares nothing about actual terrorism, but rather playing politics with it. A perfect example of this is Mary Matalin, who said on CNN yesterday that Bush “inherited” the 9/11 attacks.

Inherited to the point that Bush ignored a memo in August of 2001 stating “Bin Laden determined to attack the United States” and even that he was going to use airplanes.

But it’s interesting. I have heard numerous Democrats talk about the failures of the Bush administration and Clinton administration when it comes to the 9/11 attacks. That’s just like Ft. Hood and Detroit – both men were “on the radar” under the Obama administration and Bush administration, yet if you bring that up to Republicans you get accused of “shifting the blame” or “looking backwards”.

Instead of addressing the problems that allowed both men to slip through the system, the Republicans would much rather play politics. This is also evident when Republicans claim that Detroit was a terrorist attack, yet Richard Reid wasn’t. Both cases are extremely similar and to claim one was an attack and the other wasn’t is again, playing politics with the issue.

Applying My FPL Numbers To Real Life

Posted 12/28/09 at 8:59am by jamie

I want to take a post Marcy Wheeler did yesterday and change it to reflect my revised FPL I did in the previous post.

301% of Poverty Level: $66,370

Federal Taxes (estimate from this page, includes FICA): $8,628 (13% of income)

State Taxes (using MI rates on $30,000 of income): $1,305 (2% of income)

Food (using “low-cost USDA plan” for family of four): $7,712 (12% of income)

Home (assume a straight 30% of income): $19,275 (30% of income)

Child care (average cost for just one pre-school child in MI): $6,216

Health insurance premium: $5,243 (7.9% of income, max amount before opt-out w/o penalty allowed)

Transportation (assume 2 cars, 12,000 miles each, @IRS deductible cost of $.55/mile): $13,200*

Heat, electricity, water: $1,500

Phone, cable, internet: $1,200

Total: $64,276 (97% of income)

Remainder (for health care out-of-pocket, debt, clothing, etc.): $2,091

First off some of Marcy’s numbers seem a little high and some seem a little low (I would love to pay that little for utilities), but over all I would say they come out pretty good.

So let’s go by my new multiplier strictly based off of the CPI-U and change the current FPL for a family of 4 to reflect that.

The Mystery Of How The FPL Is Adjusted

Posted 12/28/09 at 7:49am by jamie

One thing I have been having trouble finding is how the federal poverty level is actually adjusted every year. Here is how Health and Human Services describes the process:

To calculate the 2009 poverty guidelines, do you use a projection of what the Consumer Price Index (CPI-U) will be for 2009?

No.  ASPE does not project price changes for the current year;  instead, we issue guidelines based on price changes through the most recent completed year.  Accordingly, the 2009 poverty guidelines, issued in January 2009, reflect actual price changes through calendar year 2008.

Now going by this method I found that something doesn’t add up. Let’s compare 1980 to 2009. Going by the explanation above we would use the CPI-U for 1979 and 2008 respectfully. I found the historical charts here and will do a quick calculation:

  • 1979 average CPI-U: 72.6
  • 2008 average CPI-U: 215.3

Going by those numbers we can quickly calculate that the CPI-U has gone up 2.93 times since 1979.

Next let’s look at the FPL for 1980 and 2009:

Again a quick calculation and we can see that this number has gone up only 2.52 times. So why the difference?

Let’s do another quick calculation. What if the $4,284 FPL was increased the same rate as the CPI-U was, or by 2.93 times? Well that would give us a new FPL of $12,552 – or an additional $1,722 for a single person. That also seems like a much more realistic number when you consider how much things cost in 1980 compared to today.

Sen. Harkin To Reintroduce Legislation Next Month To Fix The Filibuster

Posted 12/27/09 at 10:51am by jamie

Ezra Klein interviewed Sen. Tom Harkin and this really caught my eye:

Tell me a bit about your reform bill. When you first introduced this, Joe Lieberman was your co-sponsor, right?

Well, I introduced that first in 1995, when we were in the minority. I'm going to reintroduce that again in January. And people are going to say I only worry about this because I'm in the majority. But I come with clean hands! I started when I was in the minority!

The idea is to give some time for extended debate but eventually allow a majority to work its will. I do believe there's some reason to have extended debate. If a group of senators filibusters a bill, you want to take their worries seriously. Make sure you're not missing something. My proposal will do that. It says that on the first vote, you need 60. Then you have to wait two days, and on the third day, you need 57 votes. And then you need to wait two days, and on the third day, it's 54 votes. And then you'd wait another two days, and on the third day, it would be 51 votes.

I really hope he is successful in this move, but I’m not too optimistic. The problem is that even Democrats in the majority realize that a time will come when they are in the minority again and will want the power of the filibuster. You also have a problem with people like Ben Nelson and Joe Lieberman. The power of the filibuster is what gave them so much leverage over health care, and I doubt they will want to get rid of that, despite the fact that Lieberman was the co-sponsor of this bill in 1995.

Jim DeMint Trying To Slow Down Job Growth

Posted 12/27/09 at 10:22am by jamie

Dave Waldman has a great rundown of what lies ahead for the health care bill as both chambers of Congress attempt to merge two very different bills into one. Sadly the quickest path is once again meeting Republican obstructionism, this time by Sen. Jim DeMint (R-SC) objecting to the appointment of conferees and forcing a longer path to making two bills into one.

This is a rather interesting move given President Obama saying his first of the year priority is getting a jobs bill through Congress. Instead of being able to focus on getting Americans back to work, now the Senate could face up to 3 more cloture votes to finish up health care, just because Jim DeMint wants to play obstructionist. This move isn’t going to “kill the bill”, it’s just going to slow down the Senate. Way to screw American workers over Jim! Hell I wouldn’t be surprised if Firedoglake backs you for re-election this year.

Another Win For Terrorism

Posted 12/27/09 at 9:46am by jamie

Still catching up on the news of the attempted airline terrorist attack from Christmas and this story really caught my eye:

Some airlines were telling passengers on Saturday that new government security regulations prohibit them from leaving their seats beginning an hour before landing

The regulations are a response to a suspected terrorism incident on Christmas Day.

Air Canada said in a statement that new rules imposed by the Transportation Security Administration limit on-board activities by passengers and crew in U.S. airspace. The airline said that during the final hour of flight passengers must remain seated. They won't be allowed access to carryon baggage or to have any items on their laps.

Flight attendants on some domestic flights are informing passengers of similar rules. Passengers on a flight from New York to Tampa Saturday morning were also told they must remain in their seats and couldn't have items in their laps, including laptops and pillows.

The TSA issued a security directive for U.S.-bound flights from overseas, according to a transportation security official who spoke on condition of anonymity because the official was not authorized to speak publicly.

And this doesn’t even sum it up right. On This Week they were talking with Robert Gibbs and the new rule being looked at is that those on international flights can have no personal items in their laps. In a global economy, think of someone doing an 8 hour flight from New York to London wanting to get some work done on their laptop. Well no more. I guess we really can’t get on troubled companies having corporate jets because now they have a great excuse.

Pete Hoekstra Said We Had A Terrorist Attack Yesterday

Posted 12/26/09 at 9:59am by jamie

The news of the “attempted bombing” of a Northwest flight from Amsterdam to Detroit yesterday has brought out the craziness of the right, and nothing is crazier than this statement from Pete Hoekstra:

twtphdet

So if we are considering what happened yesterday a terrorist attack, then does that mean Richard Reid, the shoe-bomber, was also a terrorist attack? That really puts a crimp in the argument that Bush didn’t have a terrorist attack since 9/11.

Republicans are already going into the reflex reaction of blaming President Obama for this. Instead of being realistic and looking at what happened, or didn’t happen, they want to jump into politics while terrorism still thrives. Let’s be honest here. We are using the same airline security measures that were implemented under Bush, so if they want to blame Obama then Bush should get just as much blame. President Obama has done nothing to relax security measures or even remove them.

A Problem With The Senate

Posted 12/26/09 at 9:09am by jamie

I really like Chris Dodd and want him to start pushing his bill through to fix the FPL, but news like this really makes me angry with him too:

Sen. Chris Dodd (D-Conn.) on Wednesday ripped the Senate's "newest members" for the lack of comity in the upper chamber.

In a floor speech Wednesday night, Dodd said there is "nothing wrong" with partisanship, but added he has "been deeply disturbed by some of the [healthcare] debate I have heard, usually from newer members, usually those who have been here one, two, three years, who do not have an appreciation of what this chamber means and how we work together."

The general feel is that he was talking about people like Al Franken, who wouldn’t let Joe Lieberman extend his floor time this week.

Dodd is one of the long time Senators who don’t seem to realize that the Senate today is not the same as the Senate in 1981, when Dodd first went in. Partisanship is very much the order of business in the Senate today, and that is with a big thanks to the Republicans. Did he really think giving this speech would make the Republicans stop lying and obstructing and embrace the Democrats in some big Kumbaya moment? Was he even awake during the summer when Republicans were out filling the people’s heads with bald faced lies like “death panels”?

We have seen key issues that the majority of this country wants and voted for head to extinction because of the minority. We have also seen some Democratic senators paid off just to get their support (ie: Ben Nelson). This represents a key failure of the Senate and the whole “work together” meme is nothing more than a pipe dream.

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