Wednesday, September 19, 2012


Jane Lathrop Stanford (1828-1905) was the co-founder of Stanford University together with her husband, Leland Stanford.  They founded the university in 1891 as a memorial to their only child, Leland Stanford Jr.  After her husband's death in 1893, she funded and operated the university almost single-handedly until her death in 1905.  After the death of their only son Leland Stanford, Jr., in 1884 while on a trip in Italy, the elder Leland turned to his wife and said "The children of California shall be our children."  They then founded Leland Stanford Junior University in their son's honor.  The university opened in 1891.  After Leland's death on June 21, 1893, Jane in effect took control of the university.  The university suffered severe financial hardship because of Leland's death, and the trustees advocated a temporary closure of the university until tax and legal issues could be resolved, but she insisted it remain in operation.  For the next several years she ran the university as if it was her own household, paying salaries out of her personal resources and pawning her jewels to maintain the university's building program.  It was at her direction that Stanford University gained an early focus on the arts.  She also advocated the admission of women; the university had been coeducational since its founding.  She figured prominently in the issue of academic freedom when she sought and ultimately succeeded in having Stanford University economist Edward A. Ross fired for making speeches favoring Democrat William Jennings Bryan and favoring racism against Chinese American "coolies", outlining eugenics policies directed against Chinese people and other racial groups, and for his collectivist economic teachings.  This case resulted in the American Association of University Professors' "Report on Academic Freedom and Tenure" of 1915, by Arthur Oncken Lovejoy and Edwin R. A. Seligman, and in the AAUP 1915 Declaration of Principles.  She traveled to London during 1897, the year of Queen Victoria's Diamond Jubilee, hoping to find a buyer for her rubies and other jewels to raise funds for the university; however, she was not able to sell them at that time.  In 1905 she directed the university trustees that after her death, her jewels should be sold and the funds used as a permanent endowment "to be used exclusively for the purchase of books and other publications."   The board of trustees confirmed this arrangement, and the Jewel Fund continues to add to the university's library collections.  The endowment, originally $500,000, is now worth about $20 million.  Items purchased through the Jewel Fund display a distinctive bookplate which shows a romanticized Jane Stanford offering her jewels to Athena, the goddess of wisdom.   Since 2007, benefactors who provide endowments for library acquisitions are referred to as members of the Jewel Society.  http://en.wikipedia.org/wiki/Jane_Stanford

For decades, the excise tax on gasoline and diesel fuel has been the main source of funds for building and maintaining the nation's roadways.  It has paid for most of the four million road miles currently in service.  But now there is agreement across the political spectrum that the gas tax is broken and needs to be replaced, or at least overhauled.  The problem is twofold:  First, the tax has failed to keep up with the rising cost of highway construction and repair.  And second, improved fuel economy and the rise of hybrid and electric vehicles means that more driving won't be matched by higher gasoline sales, and that how much people pay for the roads won't necessarily reflect how much they use them.  Transportation experts have been warning for at least a decade about the looming crisis in the motor-fuels tax.  The federal tax, at 18.4 cents for gasoline and 24.4 cents for diesel, hasn't changed since 1993.  As a result, the tax buys about half the concrete, steel and other materials it did 20 years ago.  Some states have managed to increase the tax, but many have had to increase their reliance on other sources—registration fees, sales taxes and general-revenue funds—to meet their transportation needs.  Looking ahead, the Congressional Budget Office predicts gas-tax revenue will fall by a cumulative $57 billion over the next 11 years thanks to a scheduled increase in federal fuel-economy standards.  That's a 13% cumulative reduction in projections for the trust fund over that period.  Michael Totty  Read more, including options for replacement funds at:  http://online.wsj.com/article/SB10000872396390443864204577619082194372886.html?mod=googlenews_wsj 

Gasoline taxes map, combined local, state and federal  from American Petroleum Institute, July 2012  http://www.api.org/Oil-and-Natural-Gas-Overview/Industry-Economics/~/media/21EBD0B62EBA42B1965EE82EFFB6585D.ashx

 Inspired by a pillar of antiquity, the Library of Alexandria, Brewster Kahle has a grand vision for the Internet Archive, the giant aggregator and digitizer of data, which he founded and leads.  "We want to collect all the books, music and video that has ever been produced by humans,” Mr. Kahle said.  As of September 18, the archive’s online collection will include every morsel of news produced in the last three years by 20 different channels, encompassing more than 1,000 news series that have generated more than 350,000 separate programs devoted to news.  The latest ambitious effort by the archive, which has already digitized millions of books and tried to collect everything published on every Web page for the last 15 years (that adds up to more than 150 billion Web pages), is intended not only for researchers, Mr. Kahle said, but also for average citizens who make up some of the site’s estimated two million visitors each day.  “The focus is to help the American voter to better be able to examine candidates and issues,” Mr. Kahle said.  Many conventional news outlets will be available, including CNN, Fox News, NBC News, PBS, and every purveyor of eyewitness news on local television stations.  The Internet Archive has been quietly recording the news material from all these outlets, which means, Mr. Kahle said, capturing not only every edition of “60 Minutes” on CBS but also every minute of every day on CNN.  All of this will be available, free, to those willing to dive into the archive.  Kahle said the method for the search for information would be the closed-captioned words that have accompanied the news programs.  The user simply plugs in the words of the search, along with some kind of time frame, and matches of news clips will appear.  

Search the Internet Archive at:  http://archive.org/  Choose the Web, moving images, live music, audio or text.  My test search on September 18 was in the Web for alternative minimum tax, and the first entry was:  The basics of the alternative minimum tax  Keywords: Salman Khan; Khan Academy 

About half of those who don't pay federal income taxes are knocked off the rolls by targeted breaks such as assistance for the poor through the earned-income tax credit.  Others don't earn enough to meet the threshold for paying an income tax.  Troops serving in combat and elderly Americans also get tax breaks that can exempt them from paying federal income taxes.  The share of households not paying federal income tax has almost doubled since 1992, in part because Congress has continued to add tax breaks, particularly for lower- and middle-income Americans.  These include the creation of the child tax credit under Democratic President Bill Clinton and a doubling of its size under Republican President George W. Bush.  A small number of American households that don't pay any federal income tax earn more than $1 million a year, according to the Tax Policy Center, mostly because they deduct investment losses or claim numerous exemptions.  Two-thirds of those who don't pay federal income taxes still pay payroll taxes, leaving just 18% of Americans who don't pay income or payroll taxes.  Many of them are elderly Americans who receive Social Security benefits.  Damian Paletta and John McKinnon  http://online.wsj.com/article/SB10000872396390443720204578004650019634728.html?mod=googlenews_wsj 

The U.S. Congress passed the Tax Reform Act of 1986 (TRA) (Pub.L. 99-514, 100 Stat. 2085, enacted October 22, 1986) to simplify the income tax code, broaden the tax base and eliminate many tax shelters and other preferences.  Referred to as the second of the two "Reagan tax cuts" (the Kemp-Roth Tax Cut of 1981 being the first), the bill was also officially sponsored by Democrats, Richard Gephardt of Missouri in the House of Representatives and Bill Bradley of New Jersey in the Senate.  The Tax Reform Act of 1986 was given impetus by a detailed tax-simplification proposal from President Reagan's Treasury Department, and was designed to be tax-revenue neutral because Reagan stated that he would veto any bill that was not.  Revenue neutrality was targeted by decreasing individual tax rates, eliminating $30 billion annually in loopholes, and increasing corporate taxes.  The bill reduced overall revenues by 8.9 billion dollars.  As of 2012, the Tax Reform Act of 1986 was the most recent major simplification of the tax code, drastically reducing the number of deductions and the number of tax brackets.  The top tax rate was lowered from 50% to 28% while the bottom rate was raised from 11% to 15%.  Many lower level tax brackets were consolidated, and the upper income level of the bottom rate (married filing jointly) was increased from $5,720/year to $29,750/year.  This package ultimately consolidated tax brackets from fifteen levels of income to four levels of income.  This would be the only time in the history of the U.S. income tax (which dates back to the passage of the Revenue Act of 1862) that the top rate was reduced and the bottom rate increased concomitantly.  In addition, capital gains faced the same tax rate as ordinary income.  The rate structure also maintained a novel "bubble rate."  The rates were not 15%/28%, as widely reported.  Rather, the rates were 15%/28%/33%/28%. The "bubble rate" of 33% simply elevated the 15% rate to 28% for higher-income taxpayers.  As a result, for taxpayers after a certain income level, TRA86 provided a flat tax of 28%.  This was jettisoned in the Omnibus Budget Reconciliation Act of 1990,   The original Alternative Minimum Tax targeted tax shelters used by a few wealthy households.  However, the Tax Reform Act of 1986 greatly expanded the AMT to aim at a different set of deductions that most Americans receive.  Things like the personal exemption, state and local taxes, the standard deduction, private activity bond interest, certain expenses like union dues and even some medical costs for the seriously ill could now trigger the AMT.  http://en.wikipedia.org/wiki/Tax_Reform_Act_of_1986
 

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