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The AMT shell game: Why Bush’s tax “cuts” aren’t

April 13, 2006 by Scott Rosenberg

Over at Slate, Daniel Gross is explaining, once more, the role the Alternative Minimum Tax continues to play in the Bush administration’s deceptive tax policies.

The AMT is a bizarre parallel-universe of taxation with its own set of complex rules that differ from the normal IRS system. It was passed decades ago as an effort to prevent gazillionaires from using elaborate tax shelters to reduce their tax bills to zero. For many years it was easily ignored by the vast majority of Americans, and as recently as a few years ago the only non-super-rich people who worried about it were tech-industry types who’d hit the stock-option jackpot but played their cards wrong.

But the AMT was designed with its very own time-bomb: It was never indexed for inflation, and so each year the rising tide of inflation — even the slow, relatively benign inflation the U.S. has experienced in the last decade — lifts more and more middle-class Americans into its maw. The obvious answer is to fix it, either by repeal or by indexing it for inflation so it continues to apply only to the gazillionaires who were its original target. Shouldn’t be so hard, right?

Wrong. Because all those improbable Bush Administration forecasts of gradual deficit reduction depend on vast new federal revenue from the AMT. If you “fix” the AMT, you plunge the government way deeper in the debt hole than even the shysters running Bush’s fiscal policy could defend.

In other words, those big tax cuts that the administration keeps demanding be made permanent aren’t tax cuts at all — they’re tax transfers. The Bush policy is simple: Let’s cut taxes on dividends — which happen to fall most heavily on the wealthiest Americans — and raise taxes, via the AMT, on the upper-middle class (and increasingly, the middle class). Right now, the AMT is kicking in on two-income families with kids earning $100,000 or more in high-tax states like California and New York. (And yes, it’s been often noted that the AMT tends to hurt those in “blue” states most.) Each year the threshold gets lower.

Gross warns that this spring the IRS will report big fat gains in federal tax receipts and the Bush team will crow about how successful their supply-side tax cut has been. Don’t buy it: They’re not cutting taxes, they’re playing a shell game, and — unless we make a point of exposing the fraud and educating ourselves and our neighbors — we’re the suckers.

Filed Under: Business, Politics

Random links

April 13, 2006 by Scott Rosenberg

## “Word Processors: Stupid and Inefficient” [link courtesy Metafilter]:

Ever since I discovered that my aging trove of files written in WordPerfect 4.x was getting harder and harder to rescue from the digital scrapheap, I have made a point of storing all my writing and notes in plain-text form. When the Web came along and I moved my career from print to online, this made even more sense, since for anything that’s going to end up as HTML, the detour into some proprietary word-processing format is not merely a waste of time but an active hazard, and at the end of the line you’re only going to want plain text anyway.

When the whole life-hacks movement got going I was pleased to learn that my own behavior matched those of many uber-geeks who preferred plain text files for their longevity and adaptability.

This “word processors” rant is an old piece but it makes a cogent argument for the separation of content from display formatting — a sensible principle that drives most content-management software and Web-site production tools today.

## Mark Dominus unearths the origin of the “equals” sign in a 16th-century manuscript page — and in the process, explains a fascinating phase in the development of English in a page from Robert Recorde’s “The Whetstone of Witte.” [Link courtesy Greg Knauss over at kottke.org]

 

I had recently learned that the twiddle in the Spanish ñ character was similarly a letter “n”. A word like “año” was originally “anno” (as it is in Latin) and the second “n” was later abbreviated to a diacritic over the first “n”. (This makes a nice counterpoint to the fact that the mathematical logical negation symbol ∼ was selected because of its resemblance to the letter “N”.) But I had no idea that anything of the sort was ever done in English.

Recorde’s book shows clearly that it was, at least for a time. The short passage illustrated above contains two examples. One is the word “examples” itself, which is written “exãples”, with a tilde over the “a”. The other is “alteration”, which is written “alteratiõ”, with a tilde over the “o”. More examples abound: “cõpendiousnesse”, “nõbers”, “denominatiõ”, and, I think, “reme~ber”.

Dominus follows up with more on diacritical marks here. Unlike other European languages, English gradually dropped this practice, but in some alternate universe, we might be spelling “annual” añual.

I am always delighted with such evidence of the fluidity and dynamism of English — the 16th century was a period when the language was constantly soaking up words and structures from other cultures. Shakespeare and his contemporaries took full advantage of the language melee around them, and even as standards and rules coalesced in later centuries, English never adopted a top-down system of rules dictated by some academy (or Academie). Which is why, while I enjoy the pedanticism of a book like “Eats, Shoots & Leaves” as much as anyone else who has ever edited copy, I am happy that no dictator governs the language I work with every day, and that it is free to evolve based on the needs and practices of the people who use it.

Filed Under: Culture, Software, Technology

Why clever blog headers are counter-productive

April 11, 2006 by Scott Rosenberg

From Clive Thompson:

  When I interviewed Cory Doctorow — cofounder of Boing Boing — for my recent New York magazine feature on blogging, he pointed out an interesting aspect of Boing Boing’s success: Simple, straightforward headlines. Many bloggers tend to write clever, wry, allusive heads to their blog posts. This is a big mistake, Cory said, because so many people use RSS readers to scan their favorite blogs. Many RSS readers are configured to display the headline to each blog posting and a bit of text; in some cases, they display only the headline, Cory noted. And many people have dozens of dozens of blogs in their RSS readers, which means they’re scanning hundreds or even thousands of headlines a day — and thus scanning them at lightning pace. If you write abstruse, punning headlines where the meaning isn’t immediately clear, the reader will never click on your entry. Boing Boing, in contrast, always writes simple, just-the-facts headlines — and this, Cory says, is one secret to the blog’s success. Get that? The human readers of blogs are beginning to behave like bots, too: Quickly scanning for semantic meaning and ignoring everything else.

So much for my clever-headline-writing ways. Out with the puns! Utilitarian headers ho!

Filed Under: Blogging

Tie me Webaroo down, sport

April 11, 2006 by Scott Rosenberg

Is it a bubble yet? There’s no way to be sure, but one telltale sign of irrational exuberance the last time around was the proliferation of companies based on ideas that simply made no sense.

The portents are beginning to loom once more. Look at the actual service that a new startup called Webaroo, featured in a little piece in the Times yesterday, provides.

Webaroo’s home screen screams: “Now you can search the Web when you’re NOT CONNECTED!”

Great. Just when we figure out that the value of the Web lies in the connections and conversations it facilitates; just when this “Live Web” gets booster-rockets in the form of AJAX-based Web applications; just when municipal WiFi and other newfangled forms of broad-based, cheap wireless connectivity are rolling out, so that we can be connected almost as much of the time as we want… Webaroo comes and gives us the Web on a hard drive — the disconnected Web — the dead Web!

Now, I’m sure there are situations and circumstances where the ability to store vast quantities of search-query results and cache gajillions of Web pages might come in handy. I’m not saying Webaroo is utterly useless. Just mostly. If you read closely on their site, it sounds like they started out focused on the vision of “The whole Web canned on your laptop!” — and that’s what the Times piece emphasized — but now they’re trying to reposition as a mobile-device content provider. I can’t see your PocketPC or Treo having enough memory to get you very far with this, though.

When I started covering technology in the early ’90s, CD-ROMs were all the rage. Almost immediately upon the arrival of the Web, it became clear that the new medium was more valuable — even though, at the start, CD-ROMs offered faster access to data and more elaborate interfaces. That’s because closed-ended, rich interactivity with a small static pile of data was infinitely less interesting than open-ended interactivity, however crude, with millions of other people.

So Webaroo will take the teeming ocean of today’s Web and bottle it for offline consumption. When a step backwards is branded as a leap forwards, and when people can be persuased to invest in such retrograde ventures, you know that dumb money has started to pile in behind the smart.

Filed Under: Business, Technology

General outrage

April 11, 2006 by Scott Rosenberg

When I wrote yesterday about the power of public dissent by military leaders, I hadn’t read the Time piece by Lieut. Gen. Greg Newbold (Ret.). Newbold, a Marine who was the Pentagon’s chief operations officer, “voiced his objections internally and then retired, in part out of opposition to the war,” but had not gone public till now. The article is a doozy. Here’s some key excerpts.

After Vietnam, “Never again, we thought, would our military’s senior leaders remain silent as American troops were marched off to an ill-considered engagement. It’s 35 years later, and the judgment is in: the Who had it wrong. We have been fooled again.”

 

Secretary of State Condoleezza Rice’s recent statement that “we” made the “right strategic decisions” but made thousands of “tactical errors” is an outrage. It reflects an effort to obscure gross errors in strategy by shifting the blame for failure to those who have been resolute in fighting. The truth is, our forces are successful in spite of the strategic guidance they receive, not because of it.

What we are living with now is the consequences of successive policy failures. Some of the missteps include: the distortion of intelligence in the buildup to the war, McNamara-like micromanagement that kept our forces from having enough resources to do the job, the failure to retain and reconstitute the Iraqi military in time to help quell civil disorder, the initial denial that an insurgency was the heart of the opposition to occupation, alienation of allies who could have helped in a more robust way to rebuild Iraq, and the continuing failure of the other agencies of our government to commit assets to the same degree as the Defense Department. My sincere view is that the commitment of our forces to this fight was done with a casualness and swagger that are the special province of those who have never had to execute these missions–or bury the results.

Filed Under: Politics

Wagging the Iran dog

April 10, 2006 by Scott Rosenberg

It is almost a clockwork kind of thing now: Last week saw one political disaster after another for President Bush and the Republicans. So of course we wake up Monday morning to find the new agenda of the week — another war.

There is no scarier read today than Seymour Hersh’s New Yorker piece detailing Bush administration planning for a war on Iran. If you’re saying to yourself, “What? How could that be? Aren’t we still busy trying to disengage ourselves from this gang’s last war?” then you are hopelessly mired in a reality-based perspective.

  The House member said that no one in the meetings “is really objecting” to the talk of war. “The people they’re briefing are the same ones who led the charge on Iraq. At most, questions are raised: How are you going to hit all the sites at once? How are you going to get deep enough?” (Iran is building facilities underground.) “There’s no pressure from Congress” not to take military action, the House member added. “The only political pressure is from the guys who want to do it.” Speaking of President Bush, the House member said, “The most worrisome thing is that this guy has a messianic vision.”

Hersh’s sources in Congress and the Pentagon say: (1) That the Bush administration is far advanced in planning for war with Iran as an active policy option; (2) such a war would begin with a campaign of air strikes and covert operations; (3) U.S. leaders are seriously considering the use of tactical nuclear weapons; (4) the U.S. goal is “regime change.”

Over at the Washington Post they’re a little less convinced than Hersh that the war plans represent a significant likelihood of an attack, and a little more inclined to think that the plans (and the talk about the plans) is intended as a gambit to scare Iran.

Meanwhile, the White House calls the talk “wild speculation” — a phrase that will ring a bell for those with memories longer than, say, a few months, since the same term was used in the run-up to the invasion of Iraq. Josh Marshall makes the obvious but necessary case that Bush’s credibility is utterly, irremediably shot on this matter.

One of Hersh’s sources says, “The President believes that he must do ‘what no Democrat or Republican, if elected in the future, would have the courage to do,’ and ‘that saving Iran is going to be his legacy.’ ”

No. Whatever happens with Iran, we already know Bush’s legacy. It is a legacy of reduced options and no-win situations. Given how much more likely an Iranian nuclear weapons program is than Saddam’s turned out to be, the administration’s legacy lies in the self-destruction of American credibility, the hobbling of the U.S. military in an unnecessary quagmire, and the loss of any short-term hope of persuading the world’s billion Muslims that the U.S. is not their enemy.

We now know that, at the same time the Bush administration was telling the world that talk of an Iraq attack was “wild speculation,” the plans were already in motion, the policy approved, the diplomatic effort a sham. The people who led the administration then are the people who are leading it now. (The only significant figure to have left the scene, Colin Powell, is the only senior administration figure who even put up token resistance to the Iraq scheme.)

So when we hear this new talk of war, the most foolish thing we can do is to close our eyes and say, “No, even George Bush isn’t that crazy.” As Paul Krugman says, the “But he wouldn’t do that” line of argument no longer holds. Bush has got that glint in his eyes again: He’s going to save the world. Look out.

This time around, there are just a few thin reeds of hope: We can at least cross our fingers that the reality of the failed war in Iraq will help the “won’t get fooled again” factor finally kick in with the American electorate. The Republican machine is in disarray, and the drums of war are beginning to sound pretty ragged.

Perhaps even more important, surely at this point the uniformed leaders of the U.S. military are surveying the shambles of their forces that Rumsfeld and company have made in the wake of Iraq, and they’re saying, “Never again.” I wouldn’t foresee, and certainly wouldn’t advocate, a “Seven Days in May” scenario of insubordination or coup. But honorable people in the military have other options. The public resignation is a powerful act.

It is virtually impossible to imagine a happy outcome from any conceivable scenario following from an American attack on Iran. The only silver lining in sight is visible from Bush’s vantage: a new war would wipe the front pages clean of all those headlines about corruption and incompetence, all the deficit figures and low poll numbers.

Bonus link: Jim Fallows in the Atlantic explains why, however dangerous the prospect of a nuclear-armed Iran might be, the preemptive assault is the worst option possible for the U.S.

Filed Under: Politics

Random notes

April 10, 2006 by Scott Rosenberg

## Mitch Kapor resumes his blogging at a new Web address with updates about Chandler and Foxmarks, a new project he has launched — it’s a Firefox extension for seamlessly synchronizing bookmarks across multiple instances of the Web browser.

## Chad Dickerson, a Duke alumnus, writes about the sense of privilege at that university in light of the Lacrosse team rape scandal there.

## The full text of the great Bruce Sterling talk at ETech is up here. Bonus: audio from Sterling’s South by Southwest talk.

Filed Under: People, Technology

Points of light

April 8, 2006 by Scott Rosenberg

I’m not sure anyone is ready for another John Kerry presidential campaign. Apparently the senator is pondering one, but he had a clean shot two years ago, and we’re still paying the price for his inability to exploit it.

Still, Kerry apparently has a new, terse and catchy ten-point plan, and before you snicker, hear him out (from today’s Times):

  “Tell the truth. Fire the incompetents. Find Osama bin Laden and secure our ports and our homeland. Bring our troops home from Iraq. Obey the law and protect our civil rights,” Mr. Kerry said in ticking off his list, which also included supporting health care, education, lobbying reform and alternatives to oil, as well as reducing the deficit.

Sounds like a plan to me. I wish the 10 points were out there on Kerry’s web site, but I couldn’t find them anywhere.

If the Democrats are rooting around for a 2006 equivalent to the Republicans’ 1994 “Contract with America,” they could adopt these points, which have the virtues of directness and good sense — and which neatly underscore the Bush administration’s abject failures to be honest, competent, to defeat our enemies, to bring an ill-considered war to an end, and on down the list. It’s good rhetoric, and that’s something Democrats could use.

Filed Under: Politics

User-generated discontent

April 7, 2006 by Scott Rosenberg

Derek Powazek explains why the term “user-generated content” feels so icky. It’s marketing-speak applied to an activity (creating writing, photos, artwork, and other original stuff and contributing it to the Web) that people care deeply about.

I agree that the phrase is icky, yet I have caught myself using it on occasion — because I have not found a good replacement shorthand term that says “stuff people contribute to a Web site or service that is created by visitors to said Web site or service rather than its proprietors.”

Derek proposes:

  Let’s use the real words. Those people posting to Amazon pages? They’re writing reviews. Those folks on Flickr? They’re making photographs. And if we must have an umbrella term to describe the whole shebang, I have a suggestion. Try this on for size: Authentic Media.

Well, I’m sorry, but “authentic media” is a problem, too. For one thing, it’s oxymoronic: “media” refers to the middle-man, yet this stuff is ostensibly authentic because it cuts out the middleman — as Derek suggests when he says, “Authentic media is what happens when the mediators get out of the way.” Furthermore, if “user-generated content” carries a whiff of contempt for unwashed amateur contributors, then “authentic media” is vaguely discourteous to those of us in the other, older-fashioned media who still aspire to some level of authenticity ourselves, and believe that it might be attainable, even if we don’t always achieve it. The label a priori rules out that possibility.

There are several different axes or spectrums at work here — inauthentic/authentic; professional (paid)/amateur (unpaid); one-to-one / one-to-many / many-to-many; and no doubt others I’m missing.

I’m happy to strike “user-generated content” from my vocabulary. But I still think we need a term for distinguishing those reviews and photographs and other works that are contributed by people “out there” from those created by people “in here.” Maybe some day the old-fashioned media model with wither and disappear, everyone “in here” will end up “out there,” and then the distinction will become meaningless. In the meantime, it remains of some use in our conversations, whether we are believers in or skeptics toward the Phenomenon That We Should No Longer Call “User-Generated Content.”

Filed Under: Media, Technology

Sound it out

April 7, 2006 by Scott Rosenberg

Sometimes you just have to hear a name.

I was clicking around My Yahoo trying to understand one aspect of how it handles RSS feeds, when I saw a featured feed from a site called Divester. And I thought — Wow! Like Gawker or Defamer or Treehugger, but devoted to socially conscious investing, trying to get universities and public institutions to sell their stock in companies that Do Evil!

So I clicked through to see more. Whoops — it’s not Di-vest-er, it’s Dive-ster. Diving site. “Divesting” must still be waiting for its blog.

Filed Under: Media, Technology

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