What are the effects of high gas prices?

There is no point to consider the price of gasoline based on the price years ago. First, let us remember that the price of crude oil is being set by a cartel (OPEC), one that our government has been supporting in the belief that we are buying friends. A foolish task since our supposed friends has turned out to be (Al Kida from Saudi Arabia, Iraq, Venezuela, Russia etc).

We collectively have helped support the high price of oil by refusing to conserve gasoline, buying gas guzzlers, not using public transportation.

Now we are pursuing ethanol as a cure all. Unfortunately the government has decided to pursue using corn as a feed stock (possibly as a bid to get votes from the farm states), instead of buying ethanol from Brazil at a more completive price. As a byproduct of using corn, we are raising the price of food to unprecedented levels. Since so much of our food supply is based on corn. Think of beef, chicken, carbonated drinks, cereal. Food crops have been displaced by farmers growing corn instead of other crops. Now we have not only the high price of gas but also a big increase in the price of food.

I think we must take the lead and pressure the government to allow ethanol from Brazil without the high import duty. We should also buy cars based on their gas mileage instead of the number and size of cup holders. Truck traffic should be allowed on the road during slow periods and truck only lanes should be provided to allow port traffic to keep out of the way of commuter traffic. Train traffic should be better coordinated to minimize congestion and overpasses should be built to separate car and train traffic.

We need to act now, before we destroy our economy and enter a recession.

Alternative Minimum Tax Time for an update

I agree with Representative Bono’s comment that the Alternative Minimum Tax (AMT) needs to be changed. The tax was originally designed to force taxpayers that receive large amounts of money and do not pay any income tax to pay a minimum amount of tax. It now has become a burden on many low income taxpayers because the AMT tax has not been indexed for inflation.

As an example, before the AMT went into effect a taxpayer could have received millions of tax free income from tax free municipal bonds or from tax avoidance schemes and pay no income tax whereas someone working at a job and receiving a 1040 tax statement must pay tax on small amounts of income.

Bono’s solution is to return to the old system of not taxing individuals that receive large amounts of tax free income. This is typical of the Republican Party’s philosophy of allowing the rich escape the tax burden and transferring it to the middle class.

The AMT should be retained in its original form and indexed for inflation. In fact, I would go even further and support legislation that would tax all sources of income above a minimum amount. Income is income no matter where it comes from.

What now Ollie?

It seems that every day more bad news about the administration in Washington (President Bush or his appointees) is being revealed. The worst by far, is the treatment of returning disabled soldiers by the military and Veterans Administration. We sent these men and woman overseas to fight in Iraq and Afghanistan, and if injured, are returned to the US for care. Now, you don’t need to be an actuary to realize that if we send soldiers to war, there will be casualties and a need to hospitalize and treat them.

Our soldiers have been in active combat for over four years. Why didn’t the administration budget for, and provide funds to properly treat our returning soldiers? Is the president thinking about falling on his sword for the incompetence that is prevalent in his administration? He seems to make political appointees that are unable to perform their jobs. Political or religious philosophy is the only basis for appointment to a government job. From Supreme Court justice to the lowest political appointment the candidate must be vetted for both political and religious views.

I think it’s time we voted the leadership of the Republican party out of office and give some new candidates the opportunity to return our government to a philosophy of ”by the people and for the people”.

No drivers license and can’t read English

No drivers license and can’t read English

No drivers license and can’t read English. The result was a collision with a metro link train and a life lost. Before we consider giving a drivers license to a non English reading and speaking individual, the state must consider the danger that they are allowing to roam our streets and highways.

The same thought should apply to allowing Mexican truck drivers to drop off and pick up loads on our streets and highways. Can they read and speak English? Do the trucks and divers carry insurance in the event they cause injury or physical damage? Do the trucks burn low sulfur fuel or are they going to add to the pollution and particulate problem? Are the trucks safe and the drivers skilled enough to drive our freeways?

Is the administration (President Bush) willing to sacrifice our health and welfare in the name of NAFTA. I would expect that before any Mexican truck is allowed to freely roam the highways and byways of the United States they are inspected for having a qualified English reading and speaking driver, adequate insurance with a company based in the United States, and a safety inspected truck burning low sulfur fuel.

If the administration can’t insure these minimum requirements, then Mexican truck drivers should be banned from United States roads.

Medicare Plan D drug plan

Medicare Prescription Drug Plan

If you think the Republican Medicare Part D prescription drug plan did you a favor, consider this. In 2006 my total cost of prescriptions was $2,839 of which I paid $696. The allowable Medicare limit for the basic coverage was $4,000. If the total cost of medication, including the portion I paid was in excess of $4,000, I would be forced to pay the full retail for non-generic medications. According to my health plan, these allowable costs and limits are Medicare rules.

Now for 2007, I am estimating that prescription costs will increase by 5% (the increase from 2005 to 2006) for a total amount of $2,981 of which I will pay $731. The kicker is that the Medicare limit has been reduced to $2,500. So, everything above the $2,500 limit (except for some generics) will have to be paid at full retail, not even at the reduced rate that my Medicare Part D drug plan pays.

If the Medicare limit keeps decreasing, it will go to $0 in a short time. In other words, the Medicare Part D drug plan is a scam fostered on American seniors by Congress and the President trying to win an election.

What can we do; encourage Congress to allow purchase of drugs from Canada (the cost can be as low as 50% of American retail), go to a single payer plan where Medicare can negotiate rates as is done by the VA, work with Congress to eliminate the donut hole in the Part D drug plan, stop the practice where a drug company can buy off generic drug manufacturers to keep the generics off the market while they continue to sell their higher priced drugs, and come up with a solution that is more equitable to American seniors.

I think that seniors should pay their fair share of prescription costs, but not be taken advantage of by the drug companies trying to improve their bottom line. Use of generics, and fair pricing for non-generics should be the Medicare drug plan goal. If our government can't do it, then turn the program over to Wal-Mart. They know how to cut costs and keep prices affordable.

The President's energy policy

The President and energy

The President still hasn't got the message. It is not enough to cut gasoline use by 20% over 10 years; especially when it will be done by the increasing use of ethanol. Ethanol requires corn as a feed stock. If you watch the commodity market, the price of corn is at an all time high. This will shortly transform into higher food prices as corn is a prime food for cattle and sweetener for soft drinks.

What he should have said is that America is at war, and starting now everyone, not only the troops in the field, will have to make sacrifices. Higher mileage standards for cars,trucks and users of gasoline and diesel fuel, lower highway speeds, more use of car polls and public transportation. In addition to conserving energy, we need a Manhattan type project to develop newer and more efficient energy sources including low risk nuclear power plants and nuclear reprocessing to reduce the amount of nuclear waste.

It is a shame the country doesn't have leadership in Washington. I can't wait for the next presidential election to get someone who can lead this country in trying times