Tax the rich

The Sick Economy Party.

by asmwizard

Of course, they don’t really want the economy to be sick (with a few possible exceptions), but the Democrats are the party of the Sick Economy.  Their priorities say that government should be big, should control all aspects of life, and should do all it can for the poor and the middle class.  They believe business has to be regulated – can’t be trusted – so they favor all sorts of laws and rules to do that.  They create huge entitlement programs that take immense amounts of money to run, need lots of bureaucrats to oversee, and therefore need heavy taxes.  Because they spend more than they can raise through taxes, they print money or borrow and let the debt increase.  Big government, heavy regulation, heavy taxes, and running the government on credit or inflated money are the factors which guarantee the economy will be sick.

The Democrats have instituted several programs that actually pay people to exist and do nothing useful: the Earned Income Credit, a sort of reverse income tax, which pays people who don’t earn enough; food assistance; Aid to Dependent Children (the more fatherless babies you have, the more we’ll pay you); disability income (OK if the people are really disabled, but many aren’t); and infinitely extended unemployment.  So, fewer people want to work.  The government taxes a shrinking work force more and more, to pay for an increasing group of people who don’t.  Now, it’s almost an even split.  Democrats have a sneaky ulterior motive for promoting this: people who depend on government for their livelihood will vote for Democrats. 

Democrats bully big business with big taxes and heavy regulation.  They spout a constant theme: big business is evil – after all, they want to make a profit, and that’s at the expense of the little guy.  Never mind that a business cannot exist long without a profit. The Democrat propaganda constantly accuses Republicans of being the party of “the Rich” and of big business. 

American businesses are over-taxed.  The tax rate they pay is among the highest in the world.  With extremely high labor costs as well, American business doesn’t compete well in the world markets.  They are also clearly over-regulated, and have to spend a lot to satisfy government demands.  This means that cheaper foreign goods are imported and outsell American products, while American manufacturers go bankrupt and jobs move overseas.  This has been going on for decades, and is a major reason we have high unemployment.

To summarize, with huge entitlement programs, high taxes, big government, the tax and spend philosophy, and relentless regulation of business, Democrats are hamstringing our economy.  In fact, increasing government spending and taxation may cause out economy to collapse.  It’s that serious.  They aren’t likely to change anything, and have never considered reforms seriously under Obama.  As long as Democrats have the power, our economy will be sick.  There will be high levels of unemployment, few business start-ups, more people living in or near poverty, and fewer people achieving the American dream.  They have put our economy into a death spiral.  The Democrats are the party of the Sick Economy, and America’s economy, which hasn’t improved since Obama took power, won’t improve until Republicans take over the government. The sad truth is, that may not happen until after an economic collapse.

   

 

 

  

How to eliminate the IRS

by asmwizard

(As published in two parts in the Leavenworth Times, June 6 and 11, 2013)

Can you imagine life without the IRS?  No federal income tax, for example.  If you’re one of the shrinking bunch who actually works for a living, you would get to take home all the money you earn (except for state & local taxes; we wouldn’t have the payroll tax — the bite for Medicare & Social Security.)   You wouldn’t have that complicated tax form to file.  You wouldn’t have to worry about deductions.

More benefits: the government would have one less huge weapon to use against its political opponents.   No more tax audits.  There would be no more need to classify organizations as profit or non-profit.  There would be no leftist ranting about how the rich need their taxes raised, or how “unfair” the tax code is.   The government wouldn’t have to know how much you earn, or what deductions you take.

People would be a great deal more honest – no need to cheat.  Even Congress would get more work done, because they wouldn’t have to keep modifying the tens of thousands of pages in the tax code.

Businesses would have much less regulation to worry about.

Of course, every silver cloud has a dark lining: there would be fewer lawyers, accountants, and tax services making a living by charging money to fill out your tax forms.  But I can live with that.

Here’s how: there are various versions, but this is the one which has been most seriously analyzed: (link): The Fair Tax.  It really is fair to tax spending, if necessities aren’t taxed.  Rich people spend much more than the truly poor, so they would pay the bulk of the taxes.  Here’s an intelligent analysis of it from 2008, when Mike Huckabee advocated it (he still does.)

(link):Huckabee’s fair tax plan is brilliant.

If it came into existence, the Fair Tax would seem tough at first, but the economy would adjust.  People would get used to it.

The alternative plan which many favor is the flat tax – which is still an income tax, but is much simpler.  That’s a different discussion.  I’m for that too, if it comes with a VAT tax, because I believe that taxing consumption (commonly known as spending) is the only fair way to tax.

There are cons as well as pros to the Fair Tax plan; here’s a (link):Analysis of the Fair Tax which lays out the pros and cons very well.

I personally don’t like some details of the plan.  I don’t like the idea of paying poor people a “prebate” to cover necessities.  The government should never pay people for anything.  It’s a license to steal.  The plan says, the sales tax would not apply to imports, goods used by businesses to produce other goods, or used goods.  I’m iffy about exempting business.  It should apply to imports, high-ticket used goods, and perhaps businesses should not have to pay it for their purchases.  I’ll discuss my reservations and the changes I’d make in the next post.

The IRS has become a weapon of the Obama administration, and is feared by its political opponents.  But even the left should like to see it eliminated, if nothing else because Republicans may win the White House some day, and what goes around, comes around.  When the Republican IRS goes into action, who knows what rocks they’ll turn over when they investigate the heck out of Democrats?  Let’s make government impartial again, or better yet, eliminate the IRS altogether.

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How I would change the Fair Tax Plan

In my previous post, “How to get rid of the IRS”, I referred to the Fair Tax plan.  The bill,  Link to HR 25, Fair Tax Act of 2013 has about 64 sponsors in the House, is stalled in the House Ways and Means committee, won’t pass.  Possible reason: it has some provisions I consider hokey or scary, and maybe others do as well.  I’d like to offer some changes which I think would simplify the Fair Tax and make it more workable.  Maybe if you read further, you will agree with me.

We need tax reform.  The IRS has become the political arm of the Democrat Party, harassing conservative donors (to Romney, last election) and organizations.  Even if they straighten out and regain impartiality, the tax system has become onerous.  There are several proposals for reform, all involving drastic simplification.  The flat tax, for example, would eliminate most deductions and hit the earner’s income with only one or two rates.  But the simplest tax possible is a tax on consumption rather than earnings.  The Fair Tax Plan is a package based on a tax on sales.

Features of the Fair Tax Plan (HR 25) as proposed:

   1. Sales tax of 23% eliminates all federal taxes on income.  The rate is a combination of the lowest tax rate on income now (15%) and the FICA tax (7.65%).

   2. Everyone receives a prebate, paid to the taxpayer family by the federal government, of the spending allowance times 23%, paid monthly.  Prebate explained.

   3. Imported goods will be taxed.

   4.  Services will be taxed.  The guy who mows your yard will add the Fair Tax to his bill.

   5.  Used goods will not be taxed.

   6.  Businesses may purchase goods and services without paying the tax.  This will lower their cost of goods sold and the price charged to the consumer.

7.  The 16th Amendment to the Constitution would need to be repealed, so that the government could no longer level taxes on income.  We don’t want to end up with both.

These features are thoroughly discussed in the Frequently asked questions (FAQ).

Here are my thoughts on the features:

   1.  Big ticket items, such as homes and cars, would be much more expensive.  I think anything that comes with a deed or title should have a maximum tax of 5  to 10 percent, and I’d prefer 5%.

   2.  I don’t like the prebate idea at all.  I don’t think the government needs to pay anyone anything.  People below the poverty line could just have slightly improved income.  They will still have food stamps, housing support, etc.  The prebate is a really bad idea.

   3.  Don’t charge tax on rent.

4.  Allow the tax on real estate or other big ticket items to be financed with the mortgage.

5.  I believe the 23% rate is too high.  I think it should be a few points lower.  Don’t forget, the advocates of the Fair Tax (rightfully) claim the economy would run much better under Fair Tax.  Many more people would be paying the tax.

6.  I would tax resale of used big ticket items – again, anything with a deed or title – at the 5 to 10% rate I previously advocated.

7.  I would treat businesses a bit differently.  If they manufacture, I wouldn’t tax their raw materials, but everything else they buy should be taxed, in my humble opinion.  There may be good arguments for letting them pay no tax on anything, but that just provides a way to cheat the system.  Everyone would incorporate.  It’s much simpler to let them be tax free on raw materials only.

8.  I think you’d have to have very severe penalties for cheating the tax, particularly on corporations.

I think the results of implementing the Fair Tax would be awesome, particularly if my changes were incorporated.  By awesome, I mean awesomely good, not awesomely bad as in the present system.

Who holds the moral high ground?

by asmwizard

As published in The Leavenworth Times, April 3, 2012.

Liberals routinely claim the moral high ground.  They believe government should directly help the poor and other groups of victims, and assert that conservatives just want to make things better for the rich.  An air of superiority permeates the demeanor of many university professors, wealthy movie stars, and cable network personalities.  For them, there is no debate: they are morally superior.  To that end, they push for ever bigger, more intrusive government.  That has a feedback effect: the more people depending on big government, the more downtrodden to vote for Democrats to continue it, and the more superior they feel.

But are they more moral, as a group, than conservatives? Should we hold them up as models of morality? First, a disclaimer – politicians of all stripes are often corrupt and self-serving, but let’s ignore that and just assume liberals and conservatives act for what they believe is the greater good, not just for themselves.

First of all, liberals reside on the left of the big-to-smaller-government spectrum, as well as the left of the government-power-to-personal-freedom spectrum. They always push for bigger, more powerful government – with more regulations, more taxes, and less freedom for the individual.  Point for conservatives.

Liberals want government to decide who is poor, keep raising the poverty line, and do all they can to keep government largesse flowing to them, rather than improve their overall circumstances. They don’t really want the poor to help themselves. They have allowed nearly half of the public to get away with paying no taxes whatever.  In effect, they attempt to make many voters dependent on government money.  Conservatives want to make it possible for people to help themselves.

Liberals aren’t fiscally responsible.  They’ve grown the deficit and the public debt under Obama, and despite holding all power for two years, have made no move to reform anything.  They’ve run the government on continuing resolutions, never daring to produce a budget which might have to cut a government program.

Leftists are notorious for dishonesty.  They believe the end justifies any means.  Liberals dance dangerously close to that attitude.  For example, liberal journalists and TV personalities routinely pretend to be objective while pushing the liberal agenda.  This is hypocrisy. 

LIberals consistently attack family values, such as traditional marriage and religious freedom. They have asserted rights that never existed before, and imposed them on the majority.

Liberals have no compunction in using mobs to enforce their minority will on the majority.  The huge, organized demonstrations in Wisconsin are an example; the various Occupy movements are another.  Mob action is the opposite of rational discourse and democratic process.  Conservative movements like the Tea Party have behaved properly, and have never used mob action to try to enforce their will.

Liberals seem to hate capitalism.  They want totally regulated economy.  Never mind that such has never worked – even Russia and China have had to back away from it.  Vigorous capitalist economies have done more to raise the standard of living than anything else, particularly in America.  But Liberals still fight it.

From all of the above, and much more, conservatives in general really hold the moral high ground.  The Obama administration proves that.  Obama flaunts the will of the majority – mostly conservatives who want smaller, simpler, less intrusive government, personal freedom and responsibility, and a lawful society.  He has increased government power: ignoring congress on many issues, increasing government size, allowing the debt to grow more than all previous presidents combined, taking over health care, spending ever more, refusing to even consider entitlement reform (while saying he is interested in doing so), pushing irrational energy ideas, and on and on.   

He does all that with an arrogant, confident air.  But you can’t blame him: he’s a liberal, therefore he believes he is morally superior.  He’s wrong.  

 

   

 

 



The president has plans too

by asmwizard
This totally unbiased piece appeared in the Leavenworth Times on Feb. 14, 2012.  I hope you realize it is tongue-in-cheek.
The president has plans, too . . .

All we’ve heard lately are the plans of the Republican candidates, as to what they will do after becoming president. We forget that President Obama may be re-elected. He has plans too. He’s revealed most of them, in the State of the Union speech and in his actions so far, he just hasn’t written them down. I thought I’d write them for him so he won’t have to.

After his re-election, Obama will face a sobering challenge — it will be his last term. Without a reason to campaign full-time, he’ll have to divide his time between more vacationing and more partying with rich folks and taking money for Democrats in exchange for government favors and exemptions.

He plans to make the Executive Branch more efficient by creating two more cabinet positions: The Department of Republican Bashing will assume the job of telling everyone how bad Republicans are, freeing the President to play more golf and travel around. The Department of Tax Code Tweaking will seek new deductions that encourage businesses to hire more workers while going bankrupt. Complicating taxes has been an important tool of Democrats since President Wilson. The President is considering a deduction for not taking any deductions. Tax reform and simplification must be avoided at all costs.

The President’s plans for jobs, energy, and the economy are all related to environmental protection and union appeasement. The new cabinet positions will create many jobs. After increasing the number of federal employees by 15% in his first term, he ought to be able to add another 15% in his second. He’ll continue to create jobs – in other countries – by driving American businesses away with more regulations and higher taxes. His proposed minimum tax on millionaires is actually a doubling of the capital gains tax. To please the greenies, he’ll maintain his stranglehold on oil, gas, and coal production. For the unions, he’ll make certain that no state with right-to-work laws can obtain new business, if he can help it.

He plans to expand the Environmental Protection Agency. The EPA’s new breathing regulations will reduce the carbon dioxide emitted by the American public. The “no breathing on Sunday” rules are controversial, but will make a large dent in greenhouse gases. Obamacare will cover any side effects of not breathing.

His plans for entitlement reforms? He’ll let the Republicans do all the work, then he’ll stop them. Entitlement recipients vote.

Health care? When the Supreme Court strikes down Obamacare, he’ll ignore their ruling while saying he’s obeying it. Fortunately, he’s improved his game on ignoring the Constitution and his oath to defend it. He’s learned how to enforce only the laws he likes.

For illegal immigration reform, he’ll push for instant citizenship, allowing illegals to qualify for food stamps, welfare, and voting. But, they’ll have to pass a test. The test will consist of one question: “Habla English?” (“Si” is the correct answer.)

Obama’s plans for the federal deficit? He’ll tell the Senate to extend the record of no budget proposals by Democrats to 2000 days. He’ll instruct his party to ignore all urges to economize. Actually, they never have urges of this sort. He’ll raise the federal debt to mega-trillions, but at the right time, he’ll start a war with China, then confiscate all their American assets. China will go bankrupt. Easy win. Even if we lose the west coast cities, it’s worth it.

In his foreign policy, he’ll continue to ignore all problems in the Middle East, while saying what he’s doing is working.

The President will pursue his current wars. His war on Christians is going well. His class warfare plans are to tax the rich 500%. (send every millionaire a bill for 5 times his/her total income. They have savings, don’t they?)

President Obama will have many challenges in his second term, but he is up to tackling them. His new mobile golf course office will allow him to keep his finger on the pulse of the American people. No pulse? No problem.

State of the Union

by asmwizard

Instead of giving an accurate one sentence summary, “Its totally f***ed up”, President Obama elected to be positive.  This of course led to many inaccuracies about the state of the union.  

As usual, his speech was well done.  He might be the best speech reader in history.  His delivery is convincing.  There seemed to be little rancor, and at times you might have thought him conservative due to what he said.  As I watched, I kept in mind things he said he’d do in past speeches, and how few of them he had actually done.  Words and promises haven’t seemed to mean much to Obama. 

Before the speech, I made a list of things I thought he wouldn’t mention:  (My score in italics below – according to my notes and to the best of my memory)

  • Keystone Pipeline (not mentioned)
  • Entitlement reform (said he’d work with Congress.  Lots of luck)
  • Medicare reform (said he’d work with Congress. Lots of luck)
  • Social Security reform (said he’d work with Congress. Lots of luck)
  • Medicaid reform (said he’d work with Congress. Lots of luck)
  • Tax reform (said he’d work with Congress. Lots of luck)
  • Drilling in the Gulf (Not mentioned specifically, but said he would work to allow offshore drilling)
  • Reducing regulations (said has directed the executive branch to examine all regulations and recommend those not needed)
  • Reducing food stamp use (not mentioned)
  • High unemployment (not mentioned)
  • Obamacare  (not mentioned specifically, but he said he wouldn’t give up some features of it)

I also made a list of things I thought he would mention:

  • Raise taxes on the rich (he said this, in so many words)
  • I thought he would claim success.  (definitely)
  • Claim the economy is improving  (definitely)
  • invoke class warfare (not as much as I expected)
  • Call for more spending (not as much as I expected)
  • Fairness and equality (a whole lot)
  • Republican obstructionism (touched on it, but much less than I expected)
  • Republicans want to protect the rich (I don’t think he said this, may have hinted)

So, in many ways, his speech surprised me. 

Highlights of his speech as I saw it:

  • Last troops home from Iraq; Osama bin Laden no longer a threat; In Afghanistan the Taliban is broken (Is it?)
  • Imagine what we could accomplish if we worked together, like the military does.
  • Wants everyone to do their fair share. 
  • In 2008, house of cards collapsed, 4 million jobs lost before I took office; 4 more million jobs before my countermeasures took hold; but in the last 6 months, 3 million jobs created (Question – does that include the Christmas temps?  I don’t know)
  • I will fight obstruction (by Republicans?) with action.
  • I’m working to stop outsourcing of jobs; I have a blueprint for American manufacturers; tax credits for them to stimulate more jobs (credits the answer to every Liberal problem)
  • We saved General Motors; now GM is again the world’s leading manufacturer.
  • Tax code needs revision; no tax deductions for outsourcing; basic minimum tax for all companies; stop rewarding companies that ship jobs overseas.
  • Will form a trade adjustment bureau, will catch and penalize cheating by foreign countries; I’ve made trade agreements and will continue to do so; American exports will rise.
  • Businesses can’t find workers with tech skills, I will boost retraining, will commit to train 2 million workers; turn unemployment systems into reemployment systems.
  • We need more teachers; reward good ones, eliminate bad ones (sounds suspiciously like merit – teacher’s unions won’t buy that)
  • We shouldn’t let students drop out of school.  (Federal law to that effect?  Not so fast) Congress should reduce interest rate on student loans.
  • Illegals – we have put more boots on the border, fewest illegals crossing in the past 16 years (due to the economy?)  We need comprehensive immigration reform now (Not before closing the border, Charlie)
  • Women, equal pay for equal work; expand tax relief for small businesses; don’t gut federally sponsored research; develop every source of energy; no more subsidizing the oil industry; give it to clean energy (Like Solyndra?) I’ve directed the Navy to make a large purchase of clean energy (solar panels?  From China?) 
  • Congress should take the funds saved by no longer having wars, take half to pay off the debt, use the other half to fund infrastructure rebuilding (Let me count the ways this is wrong – we can’t pay off the debt as long as we’re borrowing a trillion or more per year from China.  What part about cut spending don’t you understand?)
  • No more bailouts for banks, ever.  We’ll regulate the heck out of them; I will establish a financial crimes unit within the FBI, which will chase down and punish financial fraud.
  • I want a minimum tax of 30% on the very wealthy (above $250,000); I’m prepared to reform Medicare, Medicaid, and Social Security as long as the rich pay more.  (Note – I believe he’s effectively raising the capital gains tax here, although he didn’t say.  I don’t think a minimum tax on income only would raise much money.)
  • Send me a bill to penalize insider trading by members of Congress.  (It would also be nice to see a penalty (say dismissal from office and a 5 year prison term) for presidents who engage in crony capitalism)
  • I want a rule in the Senate that all nominations receive an up or down vote within 90 days; I want Congress to give me authority to consolidate and modernize the executive branch (translation – appoint 50 more czars)
  • I will act with or without Congress.  It would be better if Congress would help.
  • America is back, anyone who tells you otherwise is wrong. 

 

Comments on Fox News:

Krauthammer – the speech was less partisan than I expected; it had a much narrower focus than his first state of union speech; it seemed to lack long term objectives.

A.B. Stoddard – He pushed clean energy.

Bret Hume – He had a long laundry list, wanted to please everyone; it was fairly boring.

There was a Republican response from Mitch Daniels, governor of Indiana.

  • The State of the Union is grave; was bad when he took over, but he was hired to make it better; he can’t claim that he has made it anything but worse.
  • He’s added trillions to the national debt; his middle class is built out of government jobs and dollars; the young have been harmed; there is economic stagnation; the time is running out to save us from a Greece style meltdown.
  • The loyal opposition must do more than complain, we must offer solutions.
  • We need a simpler tax system with fewer regulations; must unite to save Medicare, Medicaid, and Social Security.
  • Obama needs to stop accusing Republicans of obstructionism; Republicans have passed many bills which are blocked by the Democrats in the Senate and the President.
  • The President seeks to divide us; the government should serve, not supervise us.

My final take on the speech: it was an attempt to baffle us with Bulls**t.  It was a campaign speech. 

Occupying Wall Street

by asmwizard

(As published in The Leavenworth Times, November 1, 2011.)

Note – I may have gone too far with “mob rat”.  “mob stooge” might be a better term. 

What if your job was – to protest?  To be a part of the Occupy Wall Street mob.  What would your daily duties be?  What equipment would you need?  How would you live?

I call it a job if you’re paid to do it.  Glenn Beck (irritatingly right most of the time) said on Fox News Friday that some of the mob members are being paid several hundred dollars a week to lead the mob by example.  OK, it’s a vast left-wing conspiracy.  But let’s just concentrate on you, the typical mob rat.  Let’s say you aren’t being paid, you joined on your own.

You, the mob member, probably aren’t a deep thinker.  Since the movement has no declared goals other than to whine at certain realities — corporations operate for profit, and therefore must be greedy;  some people are paid more than you; big government may have to shrink and cut your entitlements.  Some might recognize that mob action can’t do much about those things.  But that’s not you.  

How were you recruited?  Probably, by looking at a website, such as OccupyWallStreet.org.  Or possibly by Facebook, from a friend.  All you needed to know was provided: your slogans, the time, the place, the fuzzy goals.  You were already angry at the world, you thought this was the way to rage at it.  So, you made up your mind to travel to New York.

What equipment did you need?  A bedroll, possibly a tent.  Warm clothes.  Sun block.  Money or a credit card, to travel.  A few foodstuffs.  Cardboard, sticks, markers, and tape to make signs.  A like-minded friend or two to go with you.

When you get there?  Find an open space to camp out.  Pitch your tent.  Make a sign with something like “**** the rich!”  Call home on your cell to see if mom can send more money.  Sing songs or talk until very late.  Finally, lie down and sleep on the hard ground. 

What happens each day?   You get up.  Build a fire, or better, join someone else’s.  Breakfast on whatever is available.  Around nine, follow the leaders (the ones with the bull horns, perhaps) to this day’s hangout point.  Stand around, in the group, waving your sign, all day.  If anyone comes by, engage them in conversation.  Annoy them.   Impede their progress.  Call them Capitalist Pigs, or something similar.  Hope it doesn’t rain.  Have a candy bar for lunch, or more – maybe some sympathizer will bring pizza and soda.  Talk with your fellow mob rats.  Laugh.  Yell.  Sing.  If there’s a nearby port-a-potty or public toilet, use it as needed.  If not . . . what the Hell.

When darkness comes, back to your tent, the songs, the campfire, the hard ground. 

The next day, the same thing, perhaps a different protest place, such as Times Square.  Hope you don’t get arrested.  Or, maybe, you hope you do.  That might be a hoot.

It’s a great life.  It makes you feel as if you’re accomplishing something.  What, you don’t know, but it beats working or going to school.