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Economy

Mega-Rich Professional Golfer Complains That Paying Higher Taxes ‘Doesn’t Work For Me Right Now’

As governments at both the federal and local levels attempt to cut down budget deficits, taxes are going up on wealthy Americans like superstar professional golfer Phil Mickelson. The federal tax rate returned to its Clinton-era levels for income above $450,000 at the beginning of 2013, and voters in California, where Mickelson lives, approved a three percentage point tax increase on incomes above $1 million in November.

Such increases have helped — California is projecting a budget surplus for the first time since 2007. But for Mickelson, who made more than $40 million in tournament winnings and endorsements in 2012, the higher tax rates are a reason for “drastic changes,” like potentially moving out of his home state, he told CBS Sports:

I’m not sure what exactly, you know, I’m going to do yet. I’ll probably talk about it more in depth next week. I’m not going to jump the gun, but there are going to be some. There are going to be some drastic changes for me because I happen to be in that zone that has been targeted both federally and by the state and, you know, it doesn’t work for me right now. So I’m going to have to make some changes. [...]

I’ll probably go into it more next year or next week. But if you add up, if you add up all the federal and you look at the disability and the unemployment and the Social Security and the state, my tax rate’s 62, 63 percent. So I’ve got to make some decisions on what I’m going to do.

If Mickelson is indeed paying 62 to 63 percent of his income in taxes, he probably needs new financial advisers. When state, local, and federal taxes are combined, California does have the nation’s highest marginal tax rate, but it’s likely Mickelson’s marginal tax rate (the rate he pays on his last dollar) doesn’t top 52 percent once deductions for state and local taxes are included. And if he is investing, contributing to charity, or planning for retirement, there are an assortment of ways for him to legally lower his tax rate.

But even if he does pay a higher tax rate, he doesn’t have it all that bad. The vast majority of his income came from sponsorships, meaning companies paid him $43 million to wear their logos, play golf with their equipment, and film commercials. He made another $4.8 million playing in 22 golf tournaments, bringing his career total to more than $66 million and his net worth north of $150 million. He is the world’s seventh highest-paid athlete.

Meanwhile, the amount of taxes paid by the wealthy has plummeted over the last two decades, even as states like California face budget deficits that force them to cut spending on education, public safety, and poverty and children’s programs. And while he complains about his burdensome tax rate, the average California household would have to spend the next 775 years working to make what he made last year alone.

Justice

How Allowing Undocumented Immigrants To Obtain Driver’s Licenses Can Save Lives

Unlicensed drivers are three times more likely to cause a fatal car crash compared to licensed drivers, according to a new report from the California Department of Motor Vehicles. And requiring drivers to pass a written test and driving test before they can obtain licenses plays a major rule in reducing traffic fatalities. In California, where the majority of unlicensed drivers are undocumented, this is reviving the debate about whether or not undocumented immigrants should be able to apply for driver’s licenses:

Immigrant rights groups say that granting such licenses would reduce fatalities and costly uninsured motorist claims. Insurance companies paid out $634 million in claims for collisions related to uninsured motorists in 2009, according to the most recent data from the state.

It “really goes against public safety because the current law forces people who would otherwise be properly licensed to drive without one,” said Angela Sanbrano, board president for the Central American Resource Center in Los Angeles. [...]

The DMV report looked at 23 years of data on fatal accidents. Its conclusions were similar to the last such report in 1997, which looked at accident data from 1987 to 1992. The latest report was also the first analysis since a 1994 change in the state law that required all licensed drivers show proof of legal residency, which significantly increased the number of unlicensed drivers.

Maria Galvan, a 42-year-old undocumented immigrant living in Los Angeles, told the Los Angeles Times that she continues to drive without a license because she has to get to work and take her children to school. “We need driver’s licenses to be comfortable and be trusted and follow the law,” she said.

There are roughly 2 million unlicensed drivers in the state, compared to 24 million licensed drivers. Previous legislative efforts to allow undocumented immigrants to apply for driver’s licenses failed, but the Los Angeles Times points out that the issue might be gaining support. For the 2013 legislative session, one Democratic member of the state assembly has introduced a bill to allow anyone who can prove they pay taxes to apply for a driver’s license, regardless of their immigration status. Los Angeles Police Chief Charlie Beck and L.A. County Sheriff Lee Baca previously have said they would support a measure like that.

Last fall, Gov. Jerry Brown (D-CA) signed a bill allowing young undocumented immigrants who are granted temporary legal status under a deferred action policy President Obama announced in June 2012. Sixteen other states have also agreed to allow deferred action beneficiaries to apply for driver’s licenses, but at least six states are preventing them from becoming licensed drivers.

Health

Why Undocumented Immigrants Are Turning To Underground, Cash-Only Clinics To Get Health Care

Obamacare seeks to extend health coverage to millions of previously uninsured Americans, but that doesn’t include the nation’s estimated 12 million undocumented immigrants. And as Kaiser Health News reports, that oversight — along with the historical difficulty that undocumented immigrants face when trying to obtain coverage — has led to the proliferation of underground, cash-only “bodega clinicas” in Los Angeles migrant communities.

The clinicas aim to serve Latino immigrants who do not have public or private health insurance. Strictly speaking, they are closer to private primary care doctors’ offices than public clinics that are subject to much tighter regulations. But while the community clinics provide immigrants with a much needed service, their off-the-grid nature has some health officials worried about the quality of care that they provide.

Still, care providers also see in the clinicas the potential to ease the burden of America’s primary care doctor shortage:

Health officials see in the clinicas the tantalizing opportunity to fill persistent and profound gaps in the county’s strained safety net, including a chronic shortage of primary care physicians. By January 2014, up to 2 million currently uninsured Angelenos will need to enroll in Medicaid or buy insurance and find primary care. And the clinicas, public health officials note, are already well established in the county’s poorest neighborhoods where they are meeting the needs of Spanish-speaking residents. The clinicas also could continue to serve a market that the Affordable Care Act does not touch: undocumented immigrants who are prohibited from getting health insurance under the law.

Dr. Mark Ghaly, deputy director for Community Health at the Los Angeles County Department of Health Services, said bodega clinicas, a term he seems to have coined, that agree to some scrutiny could be a good way of addressing the physician shortage in these neighborhoods.

“Where are we going to find those providers?” he said. “One logical place to consider looking is these clinics.”

The clinicas are obviously not a perfect solution. While the clinicas could make for an effective source of cost-effective primary care, their cash-only model does pose some risks for the people who may need more specialized and expensive care — after all, paying $120 in cash for antibiotics is one thing, but $5,000 for a surgery is another story entirely. For more extensive care, these immigrants will require some sort of public or private insurance coverage.

But barring comprehensive immigration reform or additional measures to extend health benefits to America’s undocumented immigrants, Los Angeles’ clinicas are many people’s realities.

Economy

After Raising Taxes, California Expects Budget Surplus In 2014

California Gov. Jerry Brown (D)

Since the Great Recession, California has epitomized the fiscal problems facing states. Its economy was ravaged by the housing crisis, and its budget gaps swelled into the tens of billions of dollars. Even before the recession, the state often struggled to balance its budget, hamstrung by legislative rules that made it nearly impossible to increase taxes.

Gov. Jerry Brown (D) took tax increases to the voting public in November, though, and voters approved multiple tax increases for 2013. After years of spending cuts and with billions of dollars in new tax revenue coming in, Brown now expects the state to have a budget surplus this year. The expected $851-million surplus would be just the second for the state in the last decade, the Los Angeles Times reports:

After years of red ink, Gov. Jerry Brown said on Thursday that California’s $96.7-billion general fund is now poised to end next year with a surplus, thanks to years of deep budget cuts and billions in new taxes approved by voters last year.

We achieved the position we’re in because of tough cuts … and then the people voted for taxes,” he said. “We broke the logjam by going to the people.”

Proposition 30, the tax increase on the wealthiest Californians voters approved in November, is expected to raise $8.5 billion in revenue, bringing balance to the billions in spending cuts Brown had already approved to close California’s budget gap. The tax increases and the budget surplus will especially benefit California’s school system, which will receive a $2.7-billion budget increase in 2013 and more than $10 billion in increases by 2016. Medi-Cal, the state’s health care system, will also receive increases aimed at implementing Obamacare.

In Washington, President Obama has pushed for a similar balanced approach to deficit reduction. Thus far, 75 percent of the $2.4 trillion in deficit reduction that has been enacted since 2011 has come from spending cuts, and Republicans are refusing to consider further tax increases in future deficit reduction packages. Without tax increases in future deals, the ratio of spending cuts to tax increases could reach as high as five-to-one, according to the Center on Budget and Policy Priorities. But if California is any evidence, combining tax increases and spending cuts can bring balance to the budget while also allowing lawmakers to avoid cuts to education, health care, and other important programs.

Justice

California Lawmakers Introduce Bill To Close Loophole In Rape Cases


Last week, a California appeals court overturned a man’s conviction for rape of an unconscious woman because she was unmarried. According to the court, under the 19th century-era law, someone is prohibited from impersonating the woman’s husband for sex, but not from impersonating a boyfriend.

California Assembly Speaker John A. Perez (D) and member Katcho Achadjian (R) have introduced legislation to address this loophole, after a similar bill died in committee last year. The bill would expand this outdated definition of rape to include cases involving unmarried women or men.

LGBT

California Gov. Jerry Brown Appeals Injunction Against Ex-Gay Therapy Ban

Gov. Jerry Brown

In December, the Ninth Circuit granted conservative groups an injunction against a new California law banning harmful ex-gay therapy from being offered to minors, preventing it from taking effect January 1. The temporary delay allows the Court time to hear the case and address the conflicting rulings offered by lower courts in two different suits challenging the law. In the meantime, Gov. Jerry Brown (D) has appealed the injunction, calling on the Court to focus on the decision upholding the ban issued by U.S. District Judge Kimberly Mueller.

The Liberty Counsel, which is leading one of the lawsuits along with the ex-gay organization NARTH, boasted the injunction when it was granted last month, doubling down on some of the most absurd and offensive claims used to justify ex-gay therapy. In particular, Liberty Counsel Chairman Mat Staver reiterated claims that sexual abuse is somehow responsible for young people’s same-sex orientations:

STAVER: The minors we represent have not and do not want to act on same-sex attractions, nor do they want to engage in such behavior. They are greatly benefiting from counseling. These minors have struggled with same-sex attraction and have been able to reduce or eliminate the stress and conflict in their lives by receiving counseling that best aligns with their religious and moral values.

Without this emergency injunction, the State of California would essentially barge into the private therapy rooms of victimized young people and tell them that their confusion caused by the likes of a Jerry Sandusky abuser is normal and they should pursue their unwanted same-sex sexual attractions and behavior.

Staver neglects to explain that the “stress and conflict” these young people experience is only the result of the family rejection that the Liberty Counsel and ex-gay advocates foment. Studies that have attempted to show correlations between sexual abuse and homosexuality have been largely inconclusive, and certainly plenty of gay people have never experienced abuse. Such claims only seek to stigmatize by implying that people with same-sex orientations are disordered and may themselves have a propensity for abuse themselves, which is completely unfounded.

In the state’s appeal of the injunction, California Attorney General Kamala Harris (D) cited mainstream medical opinion, condemning ex-gay therapy as “unsound and harmful.”

Health

Even With Medicaid Coverage, Some Poor Americans Still Can’t Get The Health Care They Need

California’s state Medicaid program, Medi-Cal, has struggled to remain fully funded as its budget — and particularly the reimbursements that go toward the doctors who accept poorer patients under the program — perennially falls under the knife. And the low-income Americans who need specialist care are particularly susceptible to the shortcomings of the strained social safety net.

The Los Angeles Times reports that poor Americans seeking access to specialist services — such as complex surgeries and neurological treatment — are faced with a dearth of specialists willing to service Medi-Cal, mostly due to its historically low reimbursement rates. And on top of that, the United States continues to face a growing doctor shortage that is leading to long waiting periods for Americans:

By the end of the decade, the nation will be short more than 46,000 surgeons and specialists, a nearly tenfold increase from 2010, according to the Assn. of American Medical Colleges. Healthcare reform is expected to worsen the problem as more patients — many with complex and deferred health needs — become insured and seek specialized treatment.

Many of the newly insured will receive Medi-Cal, the government plan for the needy as administered through the state of California. Clinics already struggle to get private specialists to see Medicaid patients because of the low payments to doctors. Last week, an appellate court decision that authorized the state to move forward with 10% cuts in Medi-Cal reimbursement, which could make finding doctors for those patients even more difficult.

“Specialists are paid so poorly that they don’t want to take Medi-Cal patients,” said Mark Dressner, a Long Beach clinic doctor and president-elect of the California Academy of Family Physicians. “We’re really disappointed and concerned what it’s going to do for patient access.”

This shortage disproportionately affects Americans on Medicaid because the program’s lackluster funding makes it difficult to attract specialists who — after expensive and time-consuming stints in medical school — are willing to take on poor patients for lower reimbursements. Unfortunately, saddled with long waiting periods for specialist treatment, some Americans resort to inefficient and expensive emergency room care, raising health care spending nationally.

Obamacare seeks to quell this problem by vastly expanding funding for states that open up their Medicaid pools to more Americans and providing medical schools incentives for producing more general practitioners and family doctors. But as the LA Times notes, the medical school incentives do not also extend to specialists, and all the extra Medicaid funding in the world will mean little if states do not offer doctors reimbursements high enough to attract their services.

Since the downward trend in Americans becoming doctors has long been in the pipeline, the health reform law is not the root cause of this shortage. But since Obamacare expands the Medicaid program to extend coverage to millions of previously uninsured Americans, it does highlight just how deep the existing shortage is.

Climate Progress

Built To Last: Proposition 39 And California’s Schools

by Kate Gordon

Lately the news has been full of articles urging the United States to invest in our future by bringing our aging infrastructure up to modern standards. As it washed away hundred-year-old concrete and brought down old power lines, Hurricane Sandy underscored the fact that our nation’s very foundation is crumbling, and our ability to compete with other nations along with it. This Sunday’s New York Times lead editorial gave one reason for this inaction, noting that “The need for investment in public works, never more urgent, has become a casualty of Washington’s ideological wars.”

Luckily, California ain’t Washington. On November 6, California voters cast a decisive vote in favor of investing in our state’s infrastructure over the long term by voting 60-40 in favor of Proposition 39.

On its surface, Proposition 39 was a tax measure, leveling the playing field for California-based companies by closing a corporate tax loophole that had allowed out-of-state corporations to pull their facilities and workers out of the state, and they choose to pay taxes based on the presence of those same facilities and workers rather than on their (impressive) California sales. Proposition 39 returned the state to a “single sales factor” state, requiring all companies to pay taxes on their sales within the state.

But what one supportive San Diego blogger called “the most boring proposition on the 2012 ballot” does more than restore order to a broken tax system. It also provides the opportunity for our state to invest in two critical pieces of our state infrastructure: our energy system and our public schools.

In closing that corporate tax loophole, Proposition 39 returns over $1 billion to the state of California each year. And the proposition made clear that half these funds, $550 million per year for five years, must go toward energy efficiency and clean energy projects in the state’s public buildings, primarily schools.

This week, The Center for the Next Generation released a white paper showing just how important these investments in schools will be for our students, workers, and communities. California’s school system is the largest in the country, serving over 6.2 million students — one in eight of the nation’s entire population of K-12 students. These students are housed in over 10,000 schools in which over 70 percent of school buildings are over 25 years old. One-third of classrooms in the state are held in portable or modular buildings, many of which are desperately in need of maintenance and energy retrofitting, and some of which are actually toxic because of the chemicals they contain.

Investing Proposition 39 funds into the massive infrastructure project that is the California public school system could save the state over $230 million in energy costs each year, which could then be used to keep teachers on staff and books and computers in the hands of our students. It could create over 11,000 jobs per year associated with the energy efficiency retrofit projects. And it could vastly improve the air quality and overall environment within school buildings, lowering student absentee rates due to asthma and other illnesses, and even improving student test scores.

Washington, take note: Proposition 39 proves that voters understand the critical need to invest in our nation’s infrastructure. It also proves that clean energy is a political winner: in a poll of California voters by Fairbank, Maslin, Maullin, Metz & Associates just after the election, 65 percent of “yes” voters on Proposition 39 revealed they had supported the measure because it would expand the use of clean energy and “improve the energy efficiency of buildings across California.”

The voters get it. The California legislature gets it: there are already several legislative proposals circulating in Sacramento with ideas on how to direct Proposition 39 funds in the most effective and efficient way possible toward our public schools and other public buildings. Other states get it, with infrastructure investment proposals cropping up across the country, many in response to concerns about new extreme weather events and their impact on roads, bridges, and the power grid. But ultimately it’s up to our federal government to provide the high-level, comprehensive policies that can make programs like Proposition 39 a reality across the country.

Washington, take note: if our nation physically crumbles, our status as a world leader crumbles too. It’s time to take action.

Kate Gordon is Director of Advanced Energy and Sustainability at The Center for the Next Generation.

Justice

California Judge Rebuked For Suggesting Women’s Bodies Can Shut Down Rape

A California superior court judge faces public admonishment this week after he said a rape victim “didn’t put up a fight” against her rapist and claimed that a woman’s body “will not permit [rape] to happen.”

In 2008, Superior Court Judge Derek Johnson tried to make the case that the woman in his court couldn’t have been raped because she showed no signs of physical harm. The woman, however, didn’t report the attack until 17 days after it occurred and not all rape is physically violent. Johnson ultimately sentenced the perpetrator of the rape to six years in prison, as opposed to the 16 requested by the prosecutor, downplayed the assault, and said that the crime was only “worth” six:

Johnson made the comments in the case of a man who threatened to mutilate the face and genitals of his ex-girlfriend with a heated screwdriver, beat her with a metal baton and made other violent threats before committing rape, forced oral copulation, and other crimes.[...]

“I’m not a gynecologist, but I can tell you something: If someone doesn’t want to have sexual intercourse, the body shuts down. The body will not permit that to happen unless a lot of damage is inflicted, and we heard nothing about that in this case,” Johnson said.

The California Commission on Judicial Performance voted Thursday 10-0 to admonish Johnson, saying that he violated ethics.

Johnson’s comments are reminiscent of the recent assertion by Rep. Todd Akin (R-MO) that rape victims cannot become pregnant because women’s bodies have a way to “shut the whole thing down.” Both assertions are reflection of a broader rape culture, the idea that women are somehow at fault for a rape, and that some other behavioral attribute effects whether she is perceived as a victim or a woman who is “asking for it.”

NEWS FLASH

Private Donation Funds Scholarships For Undocumented Immigrants At UC Berkeley | A private foundation’s $1 million donation to the University of California, Berkeley will fund scholarships for 200 undocumented immigrants. California allows qualified undocumented immigrants to pay in-state tuition rates at state colleges, but these students are still ineligible for for federal grants, work study programs, or government-backed loans. “These motivated, hardworking and inspiring students are an asset to our state and our country,” said Ira Hirschfield, president of the family fund that made the donation, said in a statement. Similarly, a North Carolina CEO donated $1 million in October to set up a nonprofit to provide scholarships to undocumented immigrants across the country.

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