Category Archives: Taxes

Branding Obamanomics 101

I snagged this little ditty from a FB acquaintance named Lyn Morales. It has the look and feel of a viral urban legend, but it is well worth a moment's ponder. Thanks Lyn...

Obama Equals Government
Obama Equals Government
AN ECONOMICS PROFESSOR at a local college made a statement that he had never failed a single student before, but had once failed an entire class. That class had insisted that Obama's socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on Obama's plan".

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A. After the first test, the grades were averaged and everyone got a B. The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little. The second test average was a D! No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else. All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.

Could not be any simpler than that. (Please pass this on.)

If somebody is unable to understand THIS explanation, I have serious doubts about their ability to even function in society, much less run our country!

As the late Adrian Rogers said, "you cannot multiply wealth by dividing it..."

We've since seen videos of this very same scenario. Students were none too happy to give up an iota of their hard-earned grades or natural skills for the sake of the class. Harrumph, tricks are for kids. Branding Obamanomics 101.

An American Dilemma: Is Civil War Looming?

The American Genius

DOES THE UNITED STATES OF AMERICA need a drastic realignment of ideas and physical framework to deter a second American Revolution or Civil War and provide direction for the coming age where complexity is the norm? Yes. That is the opinion outlined in the penetrating Ludwig Von Mises Institute essay "On the Impossibility of Limited Government" described in more stringent detail in a most riveting book all patriots and political junkies should find time to absorb—Reassessing the Presidency:

"At the outset of the American "experiment," writes Hans-Hermann Hoppe, "the tax burden imposed on Americans was light, indeed almost negligible. Money consisted of fixed quantities of gold and silver. The definition of private property was clear and seemingly immutable, and the right to self-defense was regarded as sacrosanct. No standing army existed, and a firm commitment to free trade and a noninterventionist foreign policy appeared to be in place. Two hundred years later, matters have changed dramatically. What can possibly be done about this state of affairs? First, the American Constitution must be recognized for what it is—an error."

Read it all. It's not what you think.

The Charlatan's Tent

Robert Gibbs
White House Press Secretary Robert Gibbs quiets a reporters lighthearted comment about earmarks during the daily briefing in the Brady Press Briefing Room of the White House in Washington, Tuesday, March 10, 2009. (AP Photo/Gerald Herbert)

MY FAVORITE LINE from the charlatan's tent so far this year has tumbled out of the mouth from Press Secretary Robert Gibbs. When confronted with the fact that Mister President has not done a single thing he promised during the campaign and is instead spending money as if there is no tomorrow while gutting the potential of people by raising taxes, Gibbs replied, “It’s not like you weren’t told. McCain’s campaign said we were going to be doing this right from the start.”

Methinks Gibbs won't last out this year, perhaps not even six months. He's a giggling goofball. Surely smart, but can't handle what can only be described as a waterhaul task. I actually believe Obama puts white boy Gibbs out there to make himself look better by comparison. Otherwise there's no logic to it.

Detroit And The Last American Value

Detroit, Motor City, has seen better days...

JUST IN CASE you haven't been paying close attention to the news of the day, Detroit City, long on the frail side, is failing and failing fast. The key questions are centered, or at least, should center on the reasons of why the American automobile industry, once the paragon of manly strength echoing the pervasiveness of ingenuity, hard work, and the American Way, is failing. Even if you are sympathetic to this latest charade of tycoon muskateers looking for a bailout for their own house of cards, and want to believe in your hearts of hearts that everything is on the up and up—guess what—these empty suits are just there to collect a king's ransom, and even admit before Congress they have no clue how to turns things around.

Detroit's woes are not new. The irascible Pat Buchanan, in his latest column, has sounded a litany of reasons why this once proud industrial model has slammed into these hardest of times, placing the blame on the government and the unions. Or as another irascible character named Pogo once remarked, "We have met the enemy, and the enemy is us."

Nothing really new here, but the article is worth a glance, just in case you haven't been paying attention. And here is a poignant if somewhat ideologically unsympathetic comment by one of Buchanan's readers:

Our problems are...

1. In winning WWII, we inadvertently (most of us, not FDR and his cronies) made the world safe for communism, so part of the resistance to commie expansion included opening our markets to foreign imports. We don't need an export-driven economy, but have to reestablish trade balance.
2. As Pat points out, we won WWII in large part because we could build the weapons and vehicles to destroy the enemy. Not only our external enemies and rivals, but also the leftists who are our internal enemies, have been working to destroy that advantage ever since.
3. Our tax system is utterly unprepared for the degree of foreign participation and ownership of our economy, and much of the income arising from what we consume is now no longer taxable by the U.S.
4. The U.S. dollar is currently the world's reserve currency, in part because probably no country makes it easier for foreigners to own real estate and businesses, and the tax system lets them do it on a largely tax-free basis. We need to domesticate our dollar and establish a barter at the border, goods for goods trade system, that no goods can come into the U.S. without being paid for right then and there at the border by goods going out of the U.S. That would enforce trade balance.

I keep reading about this border barter solution. What a logistical nightmare for the boys down on the docks. But then, that's what heads up business communication and moral leadership is supposed to be all about, not a culture weaned on astonishing golf courses where everybody knows your name and overwrought golden parachutes and getaway private jets around every turn for these self-serving song and dance resumè-builders and corporate thieves who do little but handsomely enrich themselves while grappling for the next rung on the ladder, while the very businesses they were hired to run falter, or fail.

But things are never that simple. American cars aren't the problem, the business model is. Robotics in Detroit has greatly reduced the toil of the average line worker who now makes over $70/hr including benefits. The car companies have gone as far as they can in reducing labor costs but have more people on retirement than in production. Toyota and all other foreign companies now producing in the US have 1/2 the labor costs and do not have to contend with the many years of retirement and health cost benefits.

I'd like to add that while it seems outrageous that the rank and file have nice comfy retirements as Detroit suffers, shall we not point out that so do the executives, who by the way, have lived a lifetime in excess privilege while it was they who mapped out the corporate plans with all their papers and pie charts, jetting around to meetings and rounds of golf, living high on the hog in mansions. The fact that the future in the car business did not turn out exactly as they planned was THEIR failure in doing their own cushy executive job. But now they want the workers on the line who popped and welded and bolted and polished and shipped the cars to market, doing their jobs on the clock, now, years later, to take the big hit. Somebody should throw those number crunchers to the Lions...

Read it all.

Tale Of Two Candidates

AND JUST FOR KICKS, let's have a look at the respective tax plans of the two candidates. ABC news posted this comparison. In general:

  • If you make up to $18,725, Sen. John McCain, R-Ariz., will give you a tax cut of $65, while Sen. Barack Obama, D-Ill., will give you a tax cut of $567.
  • If you’re in the second tax quintile, earning between $18,725 and about $37,000 a year, McCain will give you a $259 tax cut, Obama will give you a $892 tax cut.
  • If you’re in the third quintile, earning between about $37,000 and almost $66,000, McCain will give you a $608 tax cut, Obama will give you a $1,118 tax cut.
  • If you’re in the fourth quintile, making between almost $66,000 and about $110,000, McCain gives you a $1,487 tax cut, Obama will give you a $1,264 tax cut.
  • If you’re in the top quintile, making above $110,000, McCain will give you a tax cut of $12,144 while Obama will raise your taxes $4600 more.
  • Here’s where the starkest differences come in. If you’re in the top 1 percent of wage-earners, making $602,000 to around $2.8 million, McCain gives you a $109,214 tax cut on average, while Obama raises your taxes on average by $121,689.
  • If you’re in the top 0.1 percent, making $2.9 million a year or more, McCain gives you a $577,148 tax cut, Obama raises your taxes $699,872.

So if you’re voting based on the tax proposals a candidate is making — there you go. ABC promises more on this tomorrow morning on “Good Morning America.”

Ed And Elaine Brown

Ed and Elaine Brown
By Doug Powers for WorldNetDaily

Every now and again, one hears of people being interviewed who believe federal income taxes are constitutionally invalid, and, as a result, they refuse to pay them. My first thought is usually "have fun in prison," but recent statements and proposals from some of our politicians have led me to believe that this is a cause worth fighting for.

Enter Ed Brown and Elaine Brown, New Hampshire residents who don't believe in paying income taxes. As a result, the Browns have been sentenced to five-and-a-half years in prison and ordered to pay more than $200,000 after being convicted of tax evasion and are now holed up in their home, complete with solar and wind power. So far, Al Gore has offered no defense of the carbon offset to his mansions and heated pools. Federal authorities now have their property surrounded, and the standoff could last indefinitely—ending much sooner if the Clintons are elected and put Janet Reno back in the Attorney General's office. CBS News reports that federal authorities have "cut phone, power and Internet service at the fortified compound" of the couple.

The terms "fortified compound" and "tax evasion" usually seem to go hand-in-hand in stories such as these. "Fortified compound" is a term applied by the government for psychological reasons that is repeated by the media out of psychiatric reflex. The government has trillions of dollars, tanks and armies of heavily armed individuals at their disposal. Our politicians have access to around the clock protection and bunkers that can withstand a direct nuclear strike. Not only that, but try running into any mainstream media building in New York or Los Angeles without being tackled by armed guards and tasered until your nose gives off a 75-watt glow.

But a married couple who lives in a six-bedroom colonial that might have an extra bolt on the door are the ones who the government and media says have a "fortified compound." The government and media parrot terms such as "fortress-like home" to imply paranoia, which implies mental illness, which implies there's a good reason for the government to move in and save the "fortified compound" dwellers from themselves and the rest of us.

What's gone wrong?

Taxes weren't always such a treacherous undertaking. For a long time, this country was run on very limited funds. Up until the early 1800s, the government was run purely on internal sales taxes and revenue from a gigantic powdered wig closeout sale. Then, in 1817, the government got rid of internal taxes and functioned completely on tariffs on imported goods. Can you imagine running the bloated monster of a federal government we have today solely on the 4 percent we'd get from taxes imposed on imports of running shoes and plastic novelty poop? We were created with the ability to create. All this is evidenced in the brilliance of many of our finest moments, from medicine to art to science—but that all came to an end with the adoption of the 16th Amendment in 1913. The amendment gave Congress legal authority to tax income and resulted in a revenue law that taxed incomes of both individuals and corporations. At that point, all the creative energy that would have gone into curing disease, designing grand buildings, creating art and music and exploring the farthest reaches of the universe now goes into trying to figure out a way to write off our lawnmower as a dependent or simply to hide out in a "fortified compound" in New Hampshire waiting for the tear gas to come flying through the window.

Here's what is really irksome about Ed and Elaine Brown's situation. They are legal American citizens surrounded by their own government. In the meantime, many members of Congress, along with President Bush, are pushing to legalize 12 million "undocumented workers" (the artist formerly known as "illegal aliens") while forgiving them any back taxes owed, along with any IRS fines.

Ed and Elaine Brown should renounce their citizenship, declare themselves "undocumented workers" and then push for the passage of an immigration "reform" bill. Their tax problem would be solved, and they'd be free. Maybe we should all do this.

Until American citizens are afforded at least the same rights and privileges that our politicians seek for illegal aliens, the government must free Ed and Elaine Brown!

Now if you don't mind, I have to run along and repair the screen door on my "fortified compound."

U.S. Presses China On Trade

Asian Import
UNITED STATES PRESSES China on Trade Issues—Treasury Secretary Henry Paulson, in Beijing, is said to have appealed for help in shoring up America's position on free trade.

Of course, a top Chinese official stated that change was already on the way, while complaining that Americans fail to understand China.

Fail to understand? Isn't that the same rhetorical device used by certain African-Americans to stonewall any accusations that perhaps much of that community's problems reside within its own ulture and attitudes? Recall the animosity Bill Cosby received on the heels of his straight talk on personal responsibility and hard work to his own community.

Fail to understand? Did not the hispanic community plead the same sorry case when authorities tried to crack down on loitering about and open air drinking on the streets in certain urban neighborhoods, behavior that usually leads to violence, and sometimes riots when some innocent is caught in the crossfire, such as the events that led to the 1991 Mt. Pleasant riots in the Washington?

Fail to understand? Is this not the same lame victimization ploy advanced by so-called "moderate Muslim" groups like CAIR who distort their own ideologies and statements to contemporary advantage while actively plotting to install sharia law and the Caliphate just as soon as they reach critical mass and can once again use the very real power of the sword instead of the feigned victimhood at the hands of infidels to thwart American ideals?

And now China. On trade issues of all things. Simple numbers. Language of the gods, right? Fail to understand. That's rich. China steals technology. Isn't China on Hollywood's hitlist for blockbuster DVD piracy?

This new world order, one world government thing is real. All sides are out to win this final thrust for global empire. I just don't believe America can win this by cow-towing to our competition, friendly or not. After all, lying is the language of diplomacy.
First of all, let's get this right, this trade quest should be correctly expressed as "fair" trade. Absence of tariffs or price manipulations is only part of the problem. The fact that China is buying up oil and storing oil they are only beginning to use, just to keep the market prices high, supply low, while exporting goods to the U.S. far in excess of what they purchase from American companies, shows quite well they understand the game, and are intent on winning.

This exchange with the Chinese at the start of a two-day gathering billed as a long-range "strategic economic dialogue" was intended to mollify American business groups and Democrats in Congress who want to rein in China's soaring trade surpluses. I was somewhat surprised to read that it was the Democrats who were calling for action, because I am old enough to recall that globalisation used to be a Dem issue. Has three decades of heavily exporting America's industry and capital to those who use our generosity until they gain advantage, only to later expose the weakness of many of these globalist strategies by turning against us, finally turned some heads on the Left? Maybe it's that Hollywood connection. The multinationalists and their new Manifest Destiny with its monstrous greed saddens me.

This new world order, one world government thing is real. All sides are out to win this final thrust for global empire. I just don't believe America can win this by cow-towing to our competition, friendly or not. After all, lying is the language of diplomacy.

The AP article said that Paulson and others in his high profile delegation, including Fed Chairman Ben Bernanke, argued that a more flexible currency, more open markets, and other changes are crucial to maintaining free trade.

Paulson's Chinese counterpart, Wu Yi, welcomed the chance to build "mutual trust" But she complained that Americans failed to understand China and said that could damage relations.

I say, press, and press hard!