taxation

by Lance Thompson

We are in the grip of the greatest economic downturn since the Great Depression of the 1930’s…which by the way folks, was a largely Democratic creation. If that sounds familiar it’s because many of the same power grabs that contributed to it then are in motion now. Here on the left coast, in once sunny California, even some of our 20 million ILLEGAL aliens have given up to move back home to Mexico and go to work for the great growth industry down there…drug cartels. Meanwhile, in the second biggest Fantasyland in the nation, Sacramento, the Democratically dominated State Assembly, along with that ever acquiescent RINO Arnold Schwarzenegger, have taken the State with the tenth largest economy in the world and destroyed it as a viable economic entity. If you think I’m exaggerating, wrap your ponytail and Birkenstocks around this: Our Great Central San Joaquin Valley, virtually BY ITSELF, could feed the world…or could before the gutless California politicians allowed the environmentalists so much sway (for a price) that a Federal judge was able to take water away from California ranches and farms, for the sake of a lousy 2″ trash fish…the Delta Smelt. Supposedly because they were getting trapped in the pumping stations of the main irrigation canals, thereby depriving the salmon of this delectable hors d’oeuvre. Um…seems like salmon all over the world thrive without a single visit to our delta…fancy that. There are dozens of examples of this abject environmental stupidity all affecting California business and investment, even education and infrastructure. Although I’ve researched most I can’t go into them…we’d be here all week. One thing you can be sure of, wherever the ENVIRONAZIS are in this state, there will be a politician nearby waiting to have his palm crossed with silver…our silver. I imagine it’s much the same in the other States as well. This, and the invariably higher taxes, both personal and business that go hand-in-hand with increasingly repressive regulation, have resulted in the MASS exodus of business and jobs from this State, once one of the most prosperous stand-alone economies in the world. Now our ever-sleazy State Legislature, probably jealous of  Nancy (Bugeyes) Pelosi’s one-sided attempt to railroad the country into Marxist servitude and unable to con the voters of California into saying yes to a handful of doublespeak hidden tax bond measures, have resorted to complete and total NO FRILLS (meaning no voters, no election, no governor) TAXATION WITHOUT REPRESENTATION. Illegal and unconstitutional as hell…blatant spit-in-your-eye we’re-going-to-do-it-anyway taxation, in the form of a 10% additional withholding from pay checks. This in a state with 12.5 to 17% unemployment, depending on which set of depressing statistics you’d care to peruse. The aforementioned San Joaquin Valley has closer to 40% unemployed and invaluable farm land being destroyed by neglect and disuse. Supposedly, this additional ‘loan’ will be deducted from State income taxes at the end of the tax year…where are those Madoff investments? We’ll make a killing. I know I can speak for a whole lot of people in this State when I say there’s not a damn thing anyone in that Statehouse does to represent me! Even the Kool-Aid crowd has begun to figure out that gay sexual indoctrination of our helpless children is of a higher priority for these creeps than anything approaching responsible governance. We’ve put Congress and the White House on notice. The spin machine is working overtime, but the truth is the Democrats back there are scared peeless. NOW it’s time to take the Conservative Revolution to the California Statehouse!!

Semper Vigilans, Semper Fidelis

© Skip MacLure 2009

The right has lost its way and a lot of people are starting to recognize this.  Books are being written (The Death of Conservatism, Republican Gomorrah: Inside the Movement that Shattered the Party, etc.)  Here are my thougths on what is wrong and what needs to be done about it.

Discredit those who are not helpful

Sarah Palin, Mike Huckabee, etc. have said a lot of downright crazy and dumb things (people with AIDS should be quarantined, etc.)  and are far too tied to Christianity.  They should be called out for that and pushed to the side so that true leaders on the right can rise to the top and give the right a real chance at regaining credibility and the minds of those who are undecided or in the center.  Those who espose hate, and anger should also be discredited and pushed to the side (Rush Limbaugh, Sean Hannity, etc.).  It is long past time for Conservative talk radio to become more academic, constructive, and hopeful sounding, and cater to the best in us (love, hope, unity, civics, etc.), rather than the worst (fear, anger, race, etc.).

Stop catering to the Christian right

Christianity has nothing to do with conservative ideas and theory on money, foreign policy, etc.  There is also supposed to be a strong seperation of church and state.  Our country was formed partially for freedom of religion, and if our government is run by someone who wants to impose their religion through laws and perspective, then we lose that.  In addition, America is not a Christian nation; though nearly 80% are Christian, there is still another 20% that are not.

Stop simply opposing every idea President Obama has and propose alternative solutions

The right has really been a thorn in our Presidents side instead of working with him to solve the problems in America.  The way to gain credibility and get some conservative ideas into law is to honestly work with the left to create good policy, and also proactively propose laws to solve some of our problems before the left takes up the problem.

Stop supporting causes that have nothing to do with Conservative ideology

The right should disassociate itself with such issues as abortion, and other things that are outside of the ideas of conservatism.  Abortion is an issue thats argument against it is primarily based in religion.  The same applies to marriage equality for gays; the argument against it can only be made from a religious standpoint.  Because of this, and because no party should be tied to any religion, just as our government should not be tied to any religion, the right as a whole and Republicans as a party should disassociate theirselves with abortion and start supporting equal rights for gays.  These two issues alone keep some of those in the center and on the left from ever supporting a Republican candidate.  It might cause a lot of those on the Christian right to be upset, but then they can choose the party that best conforms to what their idea of government should do on all other issues, or form a new 3rd party that is tightly tied to Christianity.

Stop being inconsistent

Right now many on the right are opposing government run health care on the idea that even though it may save a lot of lives, it isn't proper for the government or taxpayers to help others.  Yet, many of those same people are in support of the war in Iraq to give people in another country freedom and save their lives.  Why should we spend taxpayer dollars to police the world yet not spend taxpayer dollars to save those within our own borders?  Either we shouldn't spend money to help others, or we should and if we should then we should definitely want to help those within our own borders before those who are not within our borders.

Stop being hawks

The right has become a group of hawks and this is contrary to conservative ideas on foreign policy.  Conservative ideas on foreign policy are as spelled out by the Cato Institute:

Cato's foreign policy vision is guided by the idea of our national defense and security strategy being appropriate for a constitutional republic, not an empire. Cato's foreign policy scholars question the presumption that an interventionist foreign policy enhances the security of Americans in the post-Cold War world, and maintain instead that interventionism has consequences, including the formation of countervailing alliances, the proliferation of weapons of mass destruction, and even terrorism. The use of U.S. military force should be limited to those occasions when the territorial integrity, national sovereignty, or liberty of the United States is at risk.

Conservatives need to re-embrace those ideas.  They are the ideas that our nations founders had in mind, and they are the ideas that are the most ethical and that might also allow some on the left to consider the rest of our ideas.

Have a well thought out income tax policy

There either should not be an income tax as Libertarians would like, or there should be an income tax that works to support Conservative values.  A tax that is progressive helps strengthen families at the lower incomes and therefore helps literacy rates, etc. which helps to preserve conservative values of strong families, an educated populace, etc.  Right now the government has taken on far too much responsibility and therefore spends too much and our national debt is growing because of it.  It is time to start cutting back on spending, but at the same time increasing revenue and the only realistic way to increase revenue is through a progressive income tax because those in the middle and lower class cannot support any higher tax burden.

Start supporting alternative energy and embrace that global warming is real and might be caused by us

The science is in, global warming is real and it is probably caused by our actions (and can we afford to gamble that it is not?).  Most of the oil that is easily available is in countries with citizens that do not like us.  Because of these two things, it is long past time to start looking into energy sources that do not emit CO2, and that do not require us to work with countries that are not friendly to us.

Stop catering to Israel

We give far too much money and support to Israel and it hurts our credibilty around the world and doesn't help to reduce the hatred towards us in the Muslim world.  It is time to treat Israel as we would any other country that is a friend and ally of ours.  We should work with them, and be friends with them, but we should point out when they are doing something that works against peace in the middle east and use our monetary aid as a tool to help control their actions rather than blindly supporting them at all times.

Start rethinking drug policy

The war on drugs does not work, and will never work so long as it is punitive rather than based in medicine.  It only makes organized crime stronger, and leads to a larger role of government and often leads to violations of our constitutional rights.  The punitive war on drugs was originally based on racism, and is now based in morality that is derived from religion.  For these reasons, it is time for the federal government to take a non punitive role and start considering policy that would put organized crime out of business, make drug use safer and less damaging to society, and help those who are ready to reform their lives through cessation of drug abuse.

When Senator and former presidential contender John McCain proposed taxing health benefits, then candidate Obama minced no words when voicing his opposition.  Last September, while speaking in Dover, Delaware candidate Obama said, “… I can make a firm pledge: under my plan, no family making less than $250,000 will see their taxes increase – not your income taxes, not your payroll taxes, not your capital gains taxes, not any of your taxes. My opponent can’t make that pledge, and here’s why: for the first time in American history, he wants to tax your health benefits Apparently, Senator McCain doesn’t think it’s enough that your health premiums have doubled, he thinks you should have to pay taxes on them too. That’s a $3.6 trillion tax increase on middle class families. That will eventually leave tens of millions of you paying higher taxes. That’s his idea of change.” Then, in March, President Obama took a different tone altogether. Ceci Connolly, Washington Post writer, reported the following on June 3, 2009. “President Obama, in a pivot from some of his harshest campaign rhetoric, told Democratic senators yesterday that he is willing to consider taxing employer-sponsored health benefits to help pay for a broad expansion of coverage.” Today, Bloomberg.com reports, “Senate Finance Committee Chairman Max Baucus unveiled a plan to overhaul the health-care system that would mandate insurance for almost all Americans, impose a tax on health insurers and possibly cut the federal deficit. According to a “very preliminary” estimate by the congressional Joint Committee on Taxation, Baucus’s proposal would raise $259 billion in taxes, mostly from imposing a 35 percent excise tax on insurers that offer health plans valued at more than $8,000 for individuals and $21,000 for couples.” That’s the ticket – tax the insurance companies. I’m sure they’ll just eat that loss, surely they won’t pass the cost along to the customers. Liberals, I have a news flash for you. Individuals pay ALL taxes, whether directly or indirectly. I’d say Obama has the change part of his slogan covered. He changed his tax policy on heath benefits 180 degrees. It’s the hope part he still needs to work on. At least he can continue to claim transparency. This scam is visible from a mile away. More at http://commonconservativesense.com

Here is a good read making the free market case in opposition to the Obama economic plan. The article written by John Tamny of H.C. Wainwright Economics provides an important lesson in economics and the damage caused by ineffective and damaging government intervention.   Government moving wealth around, the essence of the Obama tax plan disguised as tax credits will stifle demand and not serve as a vehicle of economic growth.  Tamny points out that since no change in wealth will result from the Obama tax policy (unlike what would be the result of an across the board real tax rate reduction) it merely is a punitive measure aimed at the producers and achievers in favor of the non-producers and non-achievers in the economy. John Tamny's supporting argument as to why he believes that the Obama plan will result in slowing economic recovery is based in part upon the crowding out theory. Since government debt is now at historic levels both in real dollars and in percentage of the GDP less money can be made available for the sort of entrepreneurial activity which drives economic growth. The Obama plan at every turn takes decision making away from the private sector and replaces it with government redistribution and allocation of hard earned dollars.  The American people still have the ingenuity, creativity, and innovative spirit needed to lead the world economy if only the government will not stand in the way and not interfere with the free market's invisible hand.However, this time unlike in other recession and recovery cycles, the US government is now part owner of some of the biggest names in the financial sector and the auto sector due to billions of dollars in debt buyouts meaning, Uncle Sam sits on the boards of these companies that were bailed out. That debt belongs to all of us yet we have little to no say in demanding that those companies now partly owned by the taxpayers shape up.  Tamny points out the truth proven time after time that left alone, companies or industries are reorganized and that the bailouts are "... delaying the process whereby people and capital are managed productively. "

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hat tip to http://www.997wtn.com/custpage.cfm?frm=9347&sec_id=9377 Ralph Bristol's Nashville's Morning News, WTN 99.7

Ralph interviews John Tamny on Friday mornings.

John Tamny is editor of http://www.realclearmarkets.com (RealClearMarkets), a senior economist with H.C. Wainwright Economics, and a senior economic advisor to Toreador Research and Trading (www.trtadvisors.com). He can be reached at jtamny@realclearmarkets.com.

http://www.realclearmarkets.com/articles/2009/01/obamas_economic_solutions_are.html

Obama's Economic Solutions Are Contractionary  By John Tamny

It is highly unlikely that the federal debt will be paid off or that we will be operating under a balanced federal budget over the next election cycle or two.  Federal fiscal policy promises to continue to be one of the most important issues to voters for some time to come.

In whatever form the "Next Right" eventually manifests itself, formulating and verbalizing a coherent federal fiscal policy in a manner which resonates with the general public will be a necessity for electoral success.

Electoral success is more likely to occur if a wide variety of public policy organziations, polical candidates, office holders, party leaders, think tanks, the "right roots" and other right-leaning media are all singing from the same sheet of music -- as happened with the Contract with America.

Four primary options are available in developing a new fiscal policy proposal:

• Decreasing taxes while increasing spending
• Increasing taxes while increasing spending
• Increasing taxes while decreasing spending
• Decreasing taxes while decreasing spending

Other vital components of such a plan would probably include dealing with Social Security, balancing the budget, deficit spending and coming up with a proposal to pay down the national debt. There are probably additional great ideas out there; this is a great time to think outside of the box to help stimulate even better ones.

What sort of approach to fiscal policy do you think the "Next Right" should take, and why?