Wednesday, June 20, 2012

Do Government Dollars Compromise Constitutional Rights?

  Recently, a liberal friend of mine wrote "the public is allowed to set rules ... through its elected representatives and those rules apply to all citizens." In America, that statement is only somewhat true.

Indeed, to insure that it never could be wholly true, our Founding Father adopted the Bill of Rights. But does the statement become true, if the citizen accepts money from the government?

In England, from the time of Henry VIII, often when a new monarch took the throne, the religion of the realm changed. Henry was Protestant. Mary was Catholic. Elizabeth I was Protestant. Charles I favored Catholics. Americans in 1789 wanted nothing to do with changing their religions every time the majority in Congress changed.

The First Amendment was designed to insure that religion was beyond the power of each new majority in Congress to "esRecently, a liberal friend of mine wrote "the public is allowed to set rules ... through its elected representatives and those rules apply to all citizens." In America, that statement is only somewhat true.

Our Bill of Rights (the first 10 Amendments to the Constitution) exists for the primary purpose of putting certain rights that James Madison and his contemporaries deemed essential to a free America beyond the power of the majority and their elected representatives to change. Indeed, those amendments has always denied the federal government power to do any of the following:

-- Designate a "state religion," or specify how Americans should worship. Such a law would run afoul of the "establishment" and "free exercise of religion" clauses of the First Amendment.

-- Prohibit individuals or the press from criticizing the president, Congress or the Supreme Court. This would run afoul of the First Amendment guarantees of free speech and free press.

-- Abolish the right to bear arms, as guaranteed by the 2nd Amendment.

-- Order the quartering of troops in private homes in time of peace, as prohibited by the Third Amendment;

-- Authorize the government to conduct indiscriminate searches and seizures in the absence of probable cause as required by the Fourth Amendment.

-- Take property for public use without paying just compensation as required by the Fifth Amendment;

-- Abolish the right to jury trial, and speedy and public trials in criminal prosecutions, as guaranteed by the Sixth Amendment

-- Impose cruel and unusual punishments as prohibited by the Eighth Amendment.

Were my friend to give the matter further thought, I'm confident he would concede that the Bill of Rights prevents the majority from changing our rights therein guaranteed. Still, he would probably argue that, "If the church accepts money (from the government) for its quasi-public activities, it must follow whatever rules the elected representatives of the public choose to apply to all citizens."

I think that statement is equally overly broad. By "quasi-public activity," he no doubt means universities, hospitals, and charities that provide adoption services. But hasn't the church for 1,000 years, and for centuries before our Constitution was adopted, considered these as part of its religious mission to love our fellow men and to teach all nations?

So does a church forfeit its First Amendment rights if the church accepts money? If so, how much money may it accept before it surrenders its rights? -- that is, before it must "follow whatever rules the elected representatives of the public choose to apply to all citizens?"

If the University of Notre Dame accepts a nickel from the U.S. government, must it provide to its employees and students insurance that provides coverage for contraceptives and abortifacients?

What if it accepts payments of tuition under a federal loan? What if it accepts tuition for ROTC students paid by the U.S. Navy? What if the university and the state share the cost of construction of a new road to alleviate traffic congestion on football Saturdays? What if it accepts the benefit of having its property tax exempt?

If any of these things result in forfeiture of rights, Notre Dame should have lost its First Amendment rights long ago. That First Amendment provides "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press."

Note there is nothing in the amendment, stating "except if the church accepts money for its quasi-public activities."

By accepting Social Security benefits or a state pension, have I forfeited my right to the "free exercise" of my religion? To free speech? If I don't, why would the church, absent a clear warning that that was the consequence?

There is no question that the government must have the right to legislate to protect the public. But when that power impacts upon the free exercise of religion, that power must be used delicately. That is the rule stated in the U. S. Supreme Court case of Cantwell v Connecticut (1940): "In every case the power to regulate must be so exercised as not, in attaining a permissible end, unduly to infringe the protected freedom."

Congress' power to protect the public from cannibalism would certainly trump a church's practice of cannibalism.

A president's desire to make contraception and abortion widely available would seemingly permit far less infringement.

Of course, when it comes to money, Congress can always offer a church a choice:

You can take our money, or refuse it. If you take it, these are the strings!


Posted Online:  June 19, 2012, 2:31 p.m - Quad-Cities Online

by John Donald O'Shea
Copyright 2012
John Donald O'Shea




Wednesday, June 13, 2012

While President's Fiddled, Social Security System Burned


The Roman Emperor, Nero, is reputed to have “fiddled while Rome burned.” Historians may well say something similar of Presidents Bush and Obama.    

 

On May 3, 2001, President Bush called for Social Security reforms. He appointed a 16- man commission (8 Republicans and 8 Democrats) to make to recommendations to insure the solvency of the System. 

 

Though the committee was to be co-chaired by Sen. Daniel Patrick Moynihan (D-NY. Ret’d), President Bush was instantly assailed for creating a “commission with a "skewed mandate and one-sided membership." In the face of intense vitriolic Democratic criticism, 

 

President Bush “punted.” His successor, rather then fielding the “punt” has not even taken the field. 

 

President Obama, rather than acting to fix Social Security and Medicare, has devoted 

his energies to creating a third huge entitlement: “Obamacare.”

 

In April of 2012, the Trustees issued their 2012 ANNUAL REPORT ... OF THE 

FEDERAL OLD-AGE AND SURVIVORS INSURANCE AND FEDERAL DISABILITY

INSURANCE TRUST FUNDS. To understand the report, you first need to understand 

how Social Security is set up. 

 

 

Social Security has two trust funds:

(1) Old-Age and Survivors Insurance (“OASI.”). This program pays monthly benefits to retired workers, their families, and survivors of deceased workers.

 

(2) Disability Insurance (“DI.”). This program pays monthly benefits to disabled workers and their families.

                        

The two components when taken together are referred to as “OASDI,” or Old-age, 

Survivors and Disability Insurance. 

 

At the end of 2011, the OASDI program was providing benefits to about 55 million people: 

• 38 million retired workers and dependents of retired workers.

• 6 million survivors of deceased workers. 

•11 million disabled workers and dependents of disabled workers.

Total expenditures in 2011 were $736 billion.

Total income in 2011 was $805 billion:

• $691 billion in non-interest income (payroll taxes + general fund transfers). 

• $114 billion in interest earnings.

Social Security also holds assets of $2.7 trillion in special issue U. S. Treasury securities (IOUs). Even if Social Security had no income, those assets would be sufficient to cover current expenditures ($736 billion per year) for just under 4 years. 

            

The 2011 expenditures of $736 billion exceed the non-interest income of $691 billion by $45 billion. That shortfall was occasioned by President Obama’s  “Payroll Tax Holiday” --even though payroll tax reduction law required the General Fund “replicate” the lost payroll taxes - “to the extent possible.”  That “replication” was $45 billion short. 

 

The  trustees report runs 247 pages, with many appendices. Here are key excerpts from TABLE VI.F7 -- Operations of the Combined OASI and DI Trust Funds, in CPI - indexed 2012 Dollars (in Billions), Calendar years 2012 -2090.

 

Intermediate Cost Estimates:

Calendar year           Total Income             Cost                Assets at End of Year

2012                           $846.0                        $788.7            $2,735.2

2016                           $952.8                        $910.2            $2,678.2

2021                           $1,082.5                    $1,088.9        $2,463.4

2025                           $1,146.3                    $1,250.6        $1.950.3

2030                           $1,174.8                    $1,442.7        $724.4

 

Under the Intermediate Cost Estimates the combined fund assets are exhausted in 2033.

 

 

High Cost Estimates:

 

Calendar year           Total Income             Cost                Assets at End of Year

2012                           $837.6                        $791.4            $2,724.1

2016                           $880.7                        $917.4            $2,367.1

2021                           $959.5                        $1,100.1        $1,556.8

2025                           $958.9                        $1,249.2        $460.4

            

Under the High Cost Estimates the combined fund assets are exhausted in 2027.

            

“Total Income” has two components: Non-interest Income and Interest Income. Non-interest income consists of payroll tax contributions, income from taxation of benefits, and reimbursements from the General Fund of the Treasury, if any.

            

“Cost” consists of benefit payments, administrative expenses, financial interchange with the Railroad Retirement program, and payments for vocational rehabilitation services for disabled beneficiaries.

            

To make an estimate - high, intermediate or low - the trustees make numerous actuarial assumptions. Those include, assumptions about levels of fertility, changes in mortality, legal and other immigration levels, changes in the Consumer Price Index, changes in average real wages, unemployment rates, trust fund real yield rates, and disability incidence and recovery rates. 

 

Bluntly, estimating income that will come into the Social Security System 5, 10 and 15 years down the road is at best an “educated guess.” The same can be said of estimating costs, including the benefit payments, that the system will incur down the road. 

 

But one thing is very clear: when the economy is in recession and people don’t have jobs, payroll tax collections will also be down, which means lower income for the System. A longer than anticipated recession means Social Security assets are depleted sooner. 

 

Private businesses generally estimate revenues (or income) conservatively, while 

they generally tend to overestimate costs (or expenses). If the history of our Federal 

and State governments tends to show anything, it’s that the government does things 

backwards. Government tends to overestimate revenues, and underestimate costs. 

 

Look what the Congressional Budget Office is now telling us about Obamacare.  For 

that reason, the trustees’ High Cost Estimate may not be high enough. 

 

By the way, this report was not prepared by Republicans hacks.  The Social Security Act established a Board of six Trustees.  At least three are Democrats: Timothy F. Geithner, Secretary of the Treasury, Kathleen Sebelius, Secretary of Health and Human Services, and Hilda L. Solis, Secretary of Labor.

 

It must be noted that the fact that the fund’s assets will be exhausted either in 2027 or 2033 doesn’t mean Social Security will quit paying altogether. But if costs exceed total income by, say, 25%, then benefits will have to be reduced by 25% — unless total income is somehow increased, or the the eligibility age is raised. 

 

Procrastination will not make the fix any easier

 

 

 

First Published in the Moline Dispatch, June 13, 2012.

Copyright 2008, John Donald O'Shea


Posted Online:  June 19, 2012, 2:31 p.m - Quad-Cities Online

by John Donald O'Shea
Copyright 2012, John Donald O'Shea 


Tuesday, June 5, 2012

Be Careful Whose 'Corporate' Constitutional Rights You Abolish!






Congressman James McGovern, D-Mass, recently introduced a proposed 28th Amendment to the U. S. Constitution -- "The People Rights Amendment. "

This amendment (or as I see it, this piece of abject stupidity) according to Rep. McGovern, "marks a major breakthrough in the growing movement across the country to end corporate personhood and restore democracy to the people."

He argues, "Corporations are not people ... they are artificial entities." His amendment would strip corporations of all Constitutional rights and protections.

McGovern was joined in introducing the amendment by House Minority Leader Nancy Pelosi, D-Calif., 26 other Democrats and one Republican. For Rep. Pelosi, this appears to be one more case of "we have to pass the .... bill so that you can find out what's in it."

Rep. McGovern (born 1959) represents Massachusetts' 3rd Congressional District. He has served since 1997. He is a member of the Democratic Party. He is a member of the Congressional Progressive Caucus and has been ranked as one of the most liberal members of Congress. His proposed Amendment shows why.

Fortunately, unlike the health care bill, this abomination is only a half page long. Here it is:

"Section 1. We the people who ordain and establish this Constitution intend the rights protected by this Constitution to be the rights of natural persons.

"Section 2. The words people, person, or citizen as used in this Constitution do not include corporations, limited liability companies or other corporate entities established by the laws of any State, the United States, or any foreign state, and such corporate entities are subject to such regulation as the people, through their elected State and Federal representatives, deem reasonable and are otherwise consistent with the powers of Congress and the States under this Constitution.

"Section 3. Nothing contained herein shall be construed to limit the people's rights of freedom of speech, freedom of the press, free exercise of religion, freedom of association and all such other rights of the people, which rights are inalienable.''

McGovern's stated purpose in proposing his amendment is to reverse the Supreme Court ruling in the Citizen's United case, which held that corporations (and labor union) -- like individuals -- have a First Amendment right to free speech.

Since 1791, the First Amendment says, "Congress shall make no law ... abridging freedom of speech or the press."

In the Citizen United case the Supreme Court read "no law" to mean "no law." Note that the First Amendment doesn't read, "Except in the case of corporations, Congress shall make no law ... abridging freedom of speech or the press." But McGovern's Amendment goes beyond that "minor" alteration.

Upon passage of the amendment, "the rights protected by this Constitution (will only) be the rights of natural persons." That would "not include corporations."

So, what corporations would be stripped of the Constitutions Rights?

All of them! General Motors, Deere & Co., Bank of American, Blackhawk Bank and Trust, CNN, Fox News, WHBF-TV, KWQC-TV, WQAD-TV, The Dispatch/Argus, Project Now, Planned Parenthood, the NRA, The ARC of Rock Island County, Bethany Home, the Catholic Church, any other incorporated church, the cities of Rock Island and Moline, Rock Island County, Key Auto Mall, Courtesy Ford, the Quad City Music Guild, Playcrafters Barn Theatre, the Col. Davenport Historical Foundation, The Republican Party, the Democratic Party, Moline High School, etc., etc., etc.

Every corporation -- large or small -- throughout the U.S.!

And if you read carefully, you will quickly see that it would not just abolish a corporation's right of free speech. This amendment would rob every corporation in the land of all their constitutional rights!

It would strip corporations of the right to be free from unreasonable searches and seizures, the right to due process and fair, speedy and public trial, the rights to be able to know the charge, to confront accusers, and to cross examine accusers, as well as the 14th Amendment rights to due process and equal protection.

Indeed, Corporations would have no right to just compensation if their property were to be taken for public use. Corporations would no longer be protected from ex post facto laws. Additionally if you are a corporate news organization, you would no longer have freedom of the press. If you are a church corporation, you would no longer have freedom of religion.

And note, the proposed Amendment makes no distinction between business corporation, advocacy corporations, ecclesiastical corporations, or newspaper corporations.

Under this Amendment, the government could shut down any corporate speech or press it did not like. This would include speech by NBC,CNN, Fox News Mediacom or any corporate internet provider. Nor would they, or this newspaper any longer enjoy freedom of the press!

Posted Online:  Posted Online: June 04, 2012, 3:07 pm - Quad-Cities Online

by John Donald O'Shea
Copyright 2012, John Donald O'Shea