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Alexi’s Taxes

On a strictly moral basis, I could care less.  You might notice I didn’t take on Bill Brady over the issue either. If you lose money overall, you don’t pay income taxes.  This makes economic sense and while the politically smart thing is to pay for your state salary, morally it has little to do with anything.  A business owner following the law is hardly something to be upset about. Even if you were to increase rates of taxes, that won’t affect someone losing money in a given year.  Overall, business owners pay a lot of taxes over time and a one year snapshot tells you very little. Obviously, if they aren’t paying year after year the law needs to be fixed or they aren’t going to last long.

All that said, it is a horrible looking situation and if you don’t pay the taxes for your state salary, it just hands opponents an easy score, so no demerits on the substance, but 10 on the political handling of the situation.  One of the issues facing both campaigns for the US Senate is everyone is set to autopilot to reply to every statement of the other campaign and to do it viciously.  The problem is you then end up attacking when you should be showing some humility and both campaigns have been doing a good job of that the last few weeks.

Josh Nails the Point On Doing Away with Public Employee Pensions

The staggering level of ignorance about public employee pensions never ceases to amaze me.  Josh writes the post I’ve been trying to get to for some time, though I think I’ve mentioned the issue previously:

I did some calling around on this issue yesterday and got much the same impression.  What Brady seems to have overlooked is that the state’s teachers — who make up about 80 percent of the government workforce — don’t get Social Security.  That means the state doesn’t have to pay the 6.2 percent federal payroll tax on these workers.  If new employyes were instead offered a 401K, the state would have to start paying that tax and there’s reason to believe that this would actually be more expensive than the current pension system.  Add to that the administrative costs of managing two retirement programs and … you get the picture.

Chalk it up as just the latest evidence that Brady doesn’t understand the ramifications of his own policy prescriptions.

 

In the effort to demonize public employees, Brady and those like him don’t seem to understand the basic math surrounding getting rid of public employee pensions and largely this is the fault of the press which can’t deal with this complicated of an issue well and just hears the constant fretting over how the state will make its pension payments.  The problem isn’t with outsized pensions, it’s with a state government that has relied on gimmicks to balance its budget and pensions have always been an easy target to divert.  That’s not the fault of public employees, it’s the fault of politicians not making hard decisions.

And the Blagojevich Palin Comparisons Continue

Hysterical:

 

IRS Agent Shari Schindler just testified that Rod and Patti Blagojevich spent $400,000 in clothing expenses between 2002 and 2008. Of that, $207,000 was spent Oxxford Clothes, a luxury clothier that Rod fancied. Thousands more were spent at Saks Fifth Avenue, Neiman Marcus and Geneva Custom Shirts.

Below are the Blagojevich’s top 10 categories of expenditures from Jan. 2002- Dec. 2008:

1. Medical

2. Travel

3. Childcare

4. Retail Stores

5. Private School

6. Groceries

7. House Expenses

8. Rental Property Expenses (a condo in Chicago and a condo in Washington, DC)

9. Home Mortgage Payments

10. Clothing

IL GOP Attacks Giannoulias for…Attacking Blagojevich?

In some ways It’s been nice seeing an Illinois GOP at least put up a fight instead of sending Andy McKenna around to whine.  However, it’s gotten a bit predictable:

 

Giannoulias Has Questions To Answer

“You have to be as transparent as possible and answer questions.” – Alexi Giannoulias, June 18, 2010

SEIU Official Tom Balanoff testified in federal court today that Alexi Giannoulias asked him to ask Rod Blagojevich about appointing him to Barack Obama’s vacant Senate seat.

Union leader Tom Balanoff testifies to a couple of other discussions.

He says Alexi Giannoulias, a friend to then President-Elect Barack Obama, asked him to ask Blagojevich about a possible appointment for him.

In a Nov. 24th meeting, Balanoff raises the point.

Blagojevich bristled, he testified.

“That mother f—–, I wouldn’t do s— for him. Every chance he got he took a shot at me.”[1]

Balanoff’s sworn version of events directly contradicts at least three claims made by Alexi Giannoulias.

December 4, 2008: Alexi Giannoulias told the Chicago Tribune that Rod Blagojevich’s staff had reached out to him about a possible appointment to the vacant Senate seat.

Giannoulias also said that staff within Blagojevich’s office have “reached out” to him as a possible candidat to replace President-elect Barack Obama in the U.S. Senate, though a Blagojevich spokesman said the governor has not contacted Giannoulias directly.[2]

December 4, 2008: In the same interview, Giannoulias told the Chicago Tribune that he was not “pushing for the seat”

Giannoulias said he’s not pushing for the seat, but if it’s offered he’d have to take a “very, very hard look,” at the opportunity to work in Washington D.C. alongside his close friend Obama.[3]

December 12, 2008: Alexi Giannoulias said that he hadn’t “really thought about” Obama’s Senate seat.

Giannoulias, a Democrat, said he’s been busy sorting through the state’s financial woes following Tuesday’s arrest of Gov. Rod Blagojevich.

“I haven’t really thought about it to be honest with you,” he said during an appearance at Aurora University. “I’ve been focused on trying to do my job and trying to rebuild the public’s trust in us as elected officials.”[4]

 

There’s nothing suggesting Giannoulias is actually lying here.  It’s entirely possible some staffer did reach out to him–it’s pretty clear that Blagojevich’s staff had to act on it’s own given they had an insane man as their boss.  December 4th and 12th appear to be pro forma answers to the press about something you are unlikely to get, but wouldn’t mind taking.

What we do know?  Alexi blasted Blagojevich enough to piss him so that he wasn’t go to be considered regardless of what he wanted which kind of blows a hole in the theory that they were in lockstep as the Illinois GOP keeps claiming.  Hell, Blagojevich may have hated Alexi almost as much as he hated Quinn and Jackson Jr.   What’s odd is that Alexi ran against Madigan’s candidate, won, and is now tarred as part of the Illinois Democratic machine.  I understand why Republicans make the argument, I don’t know why the press doesn’t laugh at them.  Alexi had no real allies in Springfield.  His two biggest allies are generally Durbin and Obama.

More seriously, there are two big issues the GOP has taken Giannoulias to task on that are legitimate.  The first is the Bright Start where one of the funds took a huge loss based on a bad operator.  Giannoulias and the state were able to reach a settlement where between 50 – 55 percent of the investment were returned to investors.  That’s not something to tout, but it’s also not the worst outcome and Giannoulias was the first to figure out the fraud amongst states involved in the fund.

The second is his family’s bank.  It’s legitimate and fair to point out the bank failed and Alexi has long touted it as experience. What’s weird are the zombie lies keep getting brought up about loaning money to the mob.  These were originally dug up by Madigan’s team (and everyone in the press seems to have forgotten that) and ultimately they amount to legal loans were made to some people who turned out to be unsavory, but also had loans at larger more established banks.

What all of this does do, though, is keep Mark Kirk from having to address his actual political beliefs that seem to change with the audience.

An Insanity Defense Would Probably Work

You always hear stories about how Blagojevich had no attention span so his staff just ignored him most of the time, but wow:

 

In the latest recording played at Rod Blagojevich’s trial, a breathless former governor can be heard pumping iron as he discusses his newest idea for Illinois’ next U.S. Senator: Oprah Winfrey.

“I think that’s, that’s crazy,” says then-chief of staff John Harris in the Nov. 21, 2008, secretly-recorded call.

“That’s where you’re wrong,” the then-governor says. “She’s the kingmaker. She made Obama. We know she’s a Democrat. We know she’s for Obama. … This one, she’s so up there, so high, that nobody can assail this pick. This would be huge.”

In reasoning for Winfrey, Blagojevich says he wants to make history by naming the first African American female U.S. senator — apparently forgetting that distinction went to Carol Moseley Braun, an African American from Illinois who was elected in 1992.

“The odds of her actually taking it are f—— slim to none. Who’s going to complain about it?” Blagojevich said. “It’s going to be huge.”

“It would certainly be way out there,” Harris answers.

=================

Blagojevich at one point suggests Harris find various African American candidates.

“Maybe a black Albert Einstein,” Blagojevich said.

At that, one African American juror gently shook her head.

Jesse Jackson Jr. resurfaced in the discussion with Blagojevich referring to the U.S. congressman as an “uber-African American.”

The same juror laughed quietly and placed a hand over her mouth to suppress laughter. The female juror beside her flashed a knowing smile.

Another female juror smiled at her transcript when Blagojevich suggested a Mother Teresa-type should be appointed.

Blagojevich on the call is insistent they “bolster the list” of potential candidates — even if it means looking outside of Illinois.

“I mean Arnold Schwarzenegger, you know what I’m saying?” Blagojevich tells Harris. “Tammy Duckworth is not from Illinois. Obama is not from Illinois”

Harris explains that Obama was an actual Illinois citizen before running for office.

“Picking somebody outside of Illinois has a whole host of problems,” Harris tells him. “[They’ll say], ‘There are 13 million residents [in Illinois], Rod hates them all.’”

 

Devastating Critique of Research 2000

Markos prints a critique of Research 2000’s polling that is stunning. I was reading through it and this is where I knew pretty much all I needed to, though the authors make the case in great detail:

 

Were the results in our little table a fluke? The R2K weekly polls report 778 M-F pairs. For their favorable ratings (Fav), the even-odd property matched 776 times. For unfavorable (Unf)  there were 777 matches.