Casualties of War

In the ongoing liberal War on Prosperity, the most recent causality is Switzerland. The flight from the dollar and the euro have put increasing upward pressure on the Swiss franc, making their exports more expensive for the rest of the world and pushing some Swiss companies to the edge of viability thus expanding the front to one of the few remaining stable countries in the world.

In our own misbegotten economy we see community banks like the Main Street Bank in Kingwood Tx, and coal operators such as Ronnie Bryant in Birmingham Al, simply give up and close their doors rather than try to negotiate the mountain of regulation heaped up before them by the divisions of anti-prosperity troops in the various departments of poverty that have become our federal overseers.

From hospitals, to banks, from oil drillers to light bulb manufacturers, even solar companies now that their federal taxpayer stolen largess has run out, from car dealers to tanning salons, businesses large and small have taken the brunt of the fire and unless one is an Obama supporter like GE and Lockheed-Martin, or a Union leader, or have a national media outlet to offer for propaganda distribution, one is in the enemy camp and subject to a constant barrage of grenades and mortar fire as the administration pushes forward in it's attempt to subjugate our once great nation to its will.

What is the end game for the War on Prosperity, especially now that public opinion now seems to be tiring of the conflict? As re-election of the Commander in Chief begins to be called into question by even some of those loyalists in the main stream media, how will the Administration and the leaders of the Democratic faction hold on to power and finish their campaign to enslave the rest of us and our children?

This writer hopes his visions of the future are simply paranoia born of the endless onslaught against the freedom and prosperity once exemplified in our founding documents and institutions. So chock the following up to the mindless ravings of a patriot feeling disenfranchised by forty years of ever advancing progressivism. But be aware. Watch for the signs. If you see what the writer is about to foretell come to pass, then take cover, for the end of the greatest experiment in self-governance and freedom is near.

The writer hopes not to be giving aid, comfort, and ideas to the enemy, but it must be stated. One cannot help but observe the growing unrest and rioting in places like Greece, Spain and Great Brittan where those progressives ahead of us have already run out of other people's money to borrow or confiscate. The writer notes that their youth have been lulled into massive unemployment and continual expectation that the necessities of life will be provided for them, without effort or participation on their part. Now that the largess must be curtailed, those youth have decided to simply take, rather than wait for things to be given. Looting, burning and rioting seem to be the order of the day.

With re-election in doubt for the Obama crowd, perhaps the end game in the War on Prosperity is aligned with the youth of Brittan. We have already seen the rise of flash mobs in some of our cities. We are witnessing the encroachment of liberty, ostensibly to protect us from the violence. In Philadelphia a nine o'clock curfew is in place. In San Francisco, access to communication has been suspended on the rail system. In Oakland curfews are being discussed. Flash mobs have turned larcenous in Chicago and Wisconsin.

Is it possible that our great community organizer has plans to use the vast conglomeration of fomenters in his various and sundry organizations like the SEIU, moveon.org, the AFLCIO, Code Pink and others to incite enough riots so he can declare martial law. Once declared either change his fortunes in the election by showing “leadership” or maintain power by scrubbing the elections altogether like Rudy Giuliani tried to do in the wake of 911? This writer's hope is that the answer is no. Yet he cannot help the feeling, nagging at the back of his mind, that as re-election hopes dim, and the Commander in Chief becomes ever more desperate to hold sway at 1600 Pennsylvania Avenue, just such a turn of events may come to pass. 

The writer wonders if all the weapons from Fast and Furious have been accounted for.

Ah the ravings of a lunatic mind.

Stand Up for America!

When I was a boy, there was a plaque on the wall of my school homeroom that said “Do unto others as you would have them do unto you”. There was also a big wooden paddle with holes drilled in it.

I am only fifty years old, so I am talking about the seventies here, not exactly ancient history. Forty years ago we were taught about civics, the US Constitution, and responsibility. Yes, I am talking about public school.

We were also taught math, science, and English. We were taught geography. I actually know in which part of the world Taiwan is located, and I can tell you what the three co-equal branches of government are and what their function is supposed to be. From the current wrangling, I don't think every member of congress could do as much.

As we watch Great Brittan burn, and read about the rise of criminal flash mobs in our cities here at home, I cannot help but wonder if forty years on increasing liberalism in our educational system have not brought us to the brink of this great nation's demise.

Our President and leaders in Congress apparently cannot even accomplish simple mathematics, such as 2.2 trillion minus 3.6 trillion leaves one with a negative number. I realize those numbers have a lot of zeros, but the principal is the same as two minus three.

While the President is busy criticizing Standard and Poor's for lowering our credit rating, something they warned they were going to do a year ago, and then again in April, and something they should have done long ago, the rest of the world is coming apart for the same mathematical failings.

From Ancient Greece, to Rome, to the Pilgrims, to the Soviet Union, society after society have tried various forms of socialism/communism only to fall under the crushing weight of abdicating the citizens responsibilities to care for themselves in favor of cradle to grave nanny state-ism.

When I was in school, I was intrigued with our founders belief in individual people's ability to govern themselves and to be responsible for their own fortunes, or lack thereof. Men like Washington, Jefferson, Paine, Henry, Madison, Monroe, and yes even Hamilton risked their lives and spent years devising a system of government which would insure that government would never get so powerful as to become tyrannical. They sought to limit the power of their government, to ensure that the states would be sovereign, and the role of the Federal Government would be only to provide for the common needs of the several states, under those state's direction. They knew and so stated that such a system of government would only work with an informed and responsible electorate, who were guided by spiritual principals. The most notable of which is do unto others as you would have them do unto you.

These ideals are completely lacking in the curriculum of our public schools today. The ideas of discipline and hard work are completely lacking due to decades of assault on the public school system by atheists and socialists who pervade higher education and the national teacher's unions.

The results are self-evident. We have leaders who are not even passively familiar with the meaning of the US Constitution, who cannot understand that debts need to be paid, and street gangs who feel justified in overwhelming stores to take whatever they feel like, and if someone gets seriously hurt in the process they could not care less.

We have a President who scoffs at the Constitution of the United States of America, an Attorney General who thinks voter intimidation is right and necessary, runaway governmental agencies bent on regulating business and private property rights out of existence, and a populace who thinks their federal legislature is completely ineffectual and corrupt.

As the world burns while our President plays golf and raises campaign funds, I cannot help but long for the wisdom of Jefferson, Madison, and Henry to invade our leadership. It is left to us, then, those of us who understand and remember what this country was supposed to be, to stand up. We must write, talk, shout and extol the virtues this country was founded upon.

We must come together in groups of twos, fives, and tens. We must decide if our federal system might be saved or if secession is necessary. It is up to those of us who still believe in individual rights AND responsibilities to come together and say if not now, when, if not me, who, if we don't care enough about the founding principals of our nation, who will.

We are the ones who must pass the message of freedom on to our youth in our homes and our neighborhoods. It is up to us!

Stand by your convictions and join me. United is the only way we will stand, for divided we shall surely fall!

Serious Blog Alert! Our Government's Purse is Full Enough!

Our government does not tax too little, it spends too much.

In response to a “call congress” campaign to voice objection to a debt limit increase without a balanced budget amendment, real significant cuts in spending, and no tax increases, I received several standard “tax the evil rich” responses. In one response, a friend of mine stated that per capita GDP has increased throughout the economic meltdown. While it is true that GDP increased in 2007 and 2008, all be it at a very slow pace, GDP actually dropped in 2009 according to the Bureau of Economic Analysis. That being said, this “tax the rich” philosophy beg the questions how much is enough, and who is it that you consider rich? Leaving aside the fact that if you confiscated the ENTIRE wealth of the fifty richest people in the US (many of whom are democrats by the way i.e. Gates, Buffett, Ellison, Bloomberg, Page, Brin, Soros, Perelman, etc.), you get about 650 billion dollars (figures from Forbes Magazine). That is not even enough to make up half the deficit in this year's budget.

The current top rate for wage earners is 35% which cuts in at $379,150.00 of taxable income. My dear friend states that this is the lowest rates have been since shortly after the great depression. The fact is, however, that in 1992, the top rate was 31%. Be that as it may, let's explore this idea of taxing the rich some more. In 1992, the top 20% of wage earners paid 65% of the income tax. In 2001, when the top rate was 39.5% the top 10% of wage earners paid 64% of the income tax, and in 2008 when the top rate was 35%, the top 10% of wage earners paid 70% of the tax. The threshold for this 10% is an adjusted gross income of $113,799.00 per year. That is not what I would call excessively rich. The interesting thing about this is that the bottom 50% pays 3% of the tax, meaning that the other 40% of taxpayers with adjusted gross income between $33,048.00 and $113,798.00 pay 27% of the total income tax collected by the IRS. The percentage of tax paid by the bottom 50% has been steadily DECREASING since 2001. Federal Revenues have fluctuated from 2.0 trillion to 2.56 trillion from 2005 through 2010, peaking at 2.56 trillion in 2007, and dropping to 2.16 trillion in 2010. Spending, however, has steadily increased from 2.4 trillion/year in 2005 to 3.8 trillion/year estimated in 2011. The question we REALLY need to be asking, is where has that extra TRILLION dollars per year since 2008 gone? In 2009, 2010, and projected for 2011, we have spent an EXTRA trillion dollars more per year that we did in all the years gone before. Even under George Bush, who spent money like a drunken sailor, mostly on war toys, we weren't spending at anywhere close to the rate we are now. Were children starving in 2008? Were old people going without food, clothing and housing in 2008? I don't remember that. I don't remember autistic children starving in the street in 2008, do you?

So where did the money go? 28 billion dollars of it went to GE for high speed rail no one will ride. 0.5 billion for cash for clunkers, 10.6 billion for first time home buyers, 9.2 billion for child tax credits (one reason the bottom 50% pay a smaller share of the tax), 186 billion for grants to states to fund pensions, Medicaid and unemployment, 82 billion to the Department of Education and National Science Foundation (shrimp on treadmills program), 25 Billion to the Department of Energy and the Environmental Protection Agency, the list goes on and on. Of the 2.4 million jobs the administration has claimed to have “saved or created” each job cost $278,000.00 in stimulus money to create or save. That is a fairly expensive way to create and save jobs, which brings me to corporate taxation.

The current corporate tax rate is 35%. When a corporation is creating a budget for coming years, one thing it must take into account is its tax liability. Along with the costs of labor, raw materials, fixed operating costs and the like, they also estimate their tax liability. When a corporation decides how much to charge for its product or service, it must take its tax liability into account. If taxes go up, the price of the good or service goes up accordingly. That means the only thing increasing corporate tax rates, or capital gains rates for that matter, does is pass that tax on to the consumer. When tax rates are unreasonably high in comparison to rates in another state or another country, it provides an incentive for a corporation to move to another state or country. Please take note of the mass exodus of companies from New York, Michigan and California and the gain in Texas. We currently have the second highest corporate tax rate in the world, which explains why GE, our President's favorite corporation, moved much of its operations offshore, and paid NO corporate tax in 2010.

With all that said, it becomes clear that we do not tax too little, we spend too much. The only result we will get from raising top tax rates, is that we will shift an even higher burden on to those carrying 70% of the weight now, and diminish economic activity, pushing corporations overseas, and putting increasing strain on an overwhelmingly thin job market. With 9.1% unemployment, and REAL unemployment (including those who have given up looking) over 15%, the last thing that makes sense from an economic point of view is increase the burden on those who are carrying the bulk of the weight now. Anyone who has a sound background in market economics will say the same thing.

Finally, President Obama attacked private jet owners, saying they should lose the tax break that his administration gave them early in his term. This “break” allows a company to depreciate the cost of an airplane, or improvements to an airplane, over a period of five years instead of seven. For those of you without a background in accounting, depreciation is expensing a purchase over a period of time. If a company leases a car, for example, the monthly lease payment is an expense, and is subtracted from the company's income before tax is calculated on that income. If the company purchased the car instead of leasing it, the price of the car, minus it's expected value after seven years, has to be divided by the number of years (seven in this case) and 1/7th of that value is expensed from each year's income before tax is calculated. The only thing changing the length of depreciation for an airplane does is make the company either less likely to buy or refurbish an airplane, or extend the period of time in between such purchases. The reason the depreciation period was shortened in the first place, was to save airplane manufacturing jobs by encouraging companies to trade their planes in faster. Now we want to slow down the turnover of airplanes and put those jobs in jeopardy?

There is no clearer example of this kind of thinking as when George Herbert Walker Bush went along with the luxury tax in 1990. The reasoning was the same. It went like this; “When people are hurting, and need jobs, why shouldn't the rich pay a little more. They are buying yachts and other luxury items, like diamond rings, and we ought to put an extra tax on those items.” Against his better judgment Bush 41 went along with congress on that one. The actual effect though, as one might guess, is that “rich” people quit buying yachts, or bought them offshore. The net effect was that revenues went down, and 200,000 people who worked in the boat building industry lost their jobs. Ultimately it cost Bush the 1992 election.

If you still think “tax the rich” is a good idea, I would encourage you to read anything by Allan Meltzer, Professor of Economics at CMU, Milton Friedman, Nobel Prize winner in Economic Science and Professor of Economics at the University of Chicago, or Ayn Rand for that matter. Rather than take money from the folks in this country who work hard, create business, and create employment for the rest of us just so we can give it to other folks to see what happens when a shrimp gets some exercise, we ought to stop the excessive spending. We should fix our long term problem of unfunded liabilities for Medicaid, Medicare, and Social Security in a way that protects our seniors, and insures our safety net exists long into the future. That way we can let business get back to work doing what they do best, which is grow our economy!

History Lesson on the Fourth of July - Or So There Joe Biden!

I was appalled last evening to discover the results of a Marist poll taken on July first that found that only 58% of those polled could correctly say that the year of our independence was 1776, and only 76% could say that we became independent from England. The results were far worse for those under 30 years old! This is the kind of edumacation that Joe Biden and the NEA want for our children!

So on this Independence day, I find myself thinking about how this country came to be. I offer a short history of the founding of our nation, which will apparently be better than the one offered by public education these days.

Once upon a time, the earth was flat. This made it extremely dangerous to sail out of sight of land, as one might drop over the edge at any moment, and that could ruin an entire day! A fellow named Columbus, conned the queen of Spain out of some ships and supplies and proved the flat earthers all wrong. In the process he bumped into a new continent that no one, especially the flat earth people, had any idea was out there. The Spaniards believed there was a lot of shinny yellow metal there, and so sent more folks to explore. Word got around, as it often does. In jolly old England, they had a King who didn't like to stay married very long, mostly because none of his wives seemed able to produce a son, so he kept disposing of one wife after another. The Catholic church took a dim view of that, so, not to be restrained, King Henry formed his own church and required all his subjects to belong to the Church of England.

Some miscreants didn't like that very much, and had a desire to worship in a manner that suited them better. The King took exception and sent them packing off to the new land to worship as they pleased, and to find goodies to ship back to England, for the further enrichment the King.

After 150 years or so, these new colonies were thriving, containing some two and a half million people. The King at the time, George his name was, had helped out with some trouble the colonies were having with the Indians and the French. With the war over, he turned his attention to collecting some additional revenue to balance his budget. A lot of revenue. He reasoned that as some in the colonies were getting rich, they ought to spread the wealth around a little, contribute their fair share as it was. He put a tax on tea, which many folks in the colonies didn't like so much. They decided to brew the tea in the Boston Harbor. Next he required the colonists to purchase paper for all legal documents from England. At the same time, he was sending soldiers to the colonies to keep the peace, and requiring citizens to keep the troops in their homes. When colony legislatures objected, he disbanded them, in violation of their founding documents. He bypassed the duly appointed lawmakers and issued edicts about how the colonists were to live (is any of this sounding familiar?)

In 1776, late in the evening of the third of July, following a little skirmish a year previously in Lexington and Concord, the colony legislature's representatives finally came to agreement on the wording of a document declaring their Independence from Great Brittan. This document precipitated a prolonged conflict called The Revolutionary War, the result of which was that the Colonies were free from the tyrannical edicts of the King of England, and were free to govern themselves.

After experimenting with various ways of governing themselves for twenty years or so, including a little disagreement about whiskey and another about water rights, the colonies decided they needed a founding document which would for forever limit their federal government and allow each state to govern itself, except in areas such as arguments between the states, the common defense of the New Nation, and in arranging for trade with other nations. They called this document the Constitution of the United States of America, and it is THE foundation for the federal government's existence. The federal government is supposed to be bound by and constrained by the words in that inspired work. It is what gives our government its right to exist. It laid out a system of checks and balances to ensure that power would never be concentrated in the hands of a few, and it provided for redress of grievances against the government through the judicial branch of that government. If that fails, and the federal government becomes tyrannical, it provides the means, through the second amendment, to dissolve that government.

As the federal government reaches further and further beyond the bounds of Constitution, it heads ever closer to its own Lexington and Concord!

I hope this missive has helped clear up the confusion a bit. In any event, please enjoy your celebration of the Founding of our Great Nation! Happy Fourth everyone.