Month: October 2015

Fair Tax? Ya Gotta Be Kidding!

Dear Friends,

It would seem the ONLY people paying attention to tax reform are the Fair Tax supporters and all the rest just want to get rid of the current 75,000+ pages of the current tax code and get the IRS off their back.  I will state unequivocally that the Fair Tax is the most misguided idea to come along… to the point, that I believe it has been introduced and promoted by leftists to distract from a reasonable approach via Flat Tax legislation.  I’ve copied a number of links below for you to review and to help you to come to your own conclusion.  I lived in a place (Hong Kong) where the Flat Tax worked very well at 15%.  Even at that level, there was tax evasion, but that is for another essay.  I know it works reasonably well because EVERYBODY has skin in the game… something Bobby Jindal is keen about besides myself (This keeps the takers off the makers backs).  Singapore and Russia also have flat tax systems.  I am repulsed by the idea that a person who earns more should also pay a higher percentage of their income in taxes, when some pay none and are stirred up by the puppet-masters to support more taxation of the higher wage earners.  This continues to fall on the middle class more than the persons able afford accountants to find holes in those aforementioned 75,000+ pages.

I will not argue the merits of the Flat Tax OR the Fair Tax, but will focus my vitriol on the naïveté of the Fair Tax via pointed critiques…

1.  The bureaucracy elimination and Constitutional amendment repeal are bridges too far.  To say that the IRS will be eliminated is downright stupid (I do wish it were so).  They will simply be re-purposed to administer what ever new revenue stream needs policing.  The Fair Tax people continue to “promise” this red herring.  Getting the Amendment repeal train in motion will only be accomplished in a police state from my viewpoint.  There are too many vested interests to allow that to happen.

2.  Next, what I call the “Kerry Effect” is so big a hole in the plan, one could “sail a boat” through it.  Bermuda decides to be a tax-free harbor for yachts.  The million dollar yacht is bought for $750,000 or less and the retail tax is avoided.  Of late, Fidel may even jump into this game… only 90 miles off-shore.  The same could apply for aircraft, vacation homes, you name it.  The U.S. will be “circled” with new tax havens for the ultra-rich.  Who gets clobbered?  The middle class.

3.  The old adage “If you want less of something, tax it!”  There will be new volumes of new regulations defining what is considered new and what is used in order to reduce the tax burden.  Since business wishes to move NEW product to the marketplace, this obvious tax burden of 23% will dramatically curtail sales.  We will start looking like Havana with infinitely refurbished old cars, etc.

4.  The elimination of Social Security and Medicare taxes at the payroll point will be another insurmountable barrier.  Again, too many vested interests in the status quo.

5.  I can’t even envision the new gray markets and various forms of smuggling which will rise up from this Fair Tax system.  Look at the Californians traveling to Oregon to save sales tax.

The change in the current tax system will have to be evolutionary, not revolutionary via a Fair Tax implementation.  How many state tax systems are also based on the U.S. Tax Code?  Another momentum barrier.

As far as I am concerned, the above five items are deal killers, but please read the links below and come to your own conclusions and let me know what you think.  I’ve read the Neal Boortz book “The Fair Tax Book”.  I am not moved.  I focus on the possible, not the impossible.

GEA

P.S.  If you want to get a deer-in-the-headlights look from a “Fair Tax” supporter, present Item 2 to them for a rebuttal.

http://www.freedomworks.org/content/flat-tax-vs-fair-tax

https://fairtax.org/research-library/taxes-and-tax-reform

https://patriotpost.us/pages/42

http://www.theblaze.com/contributions/flat-tax-or-fair-tax/

http://www.westernjournalism.com/fair-tax-vs-flat-tax-right-america/

http://money.howstuffworks.com/personal-finance/personal-income-taxes/flat-tax-fair-tax.htm

http://bigthink.com/experts-corner/fair-tax-or-flat-tax

https://en.wikipedia.org/wiki/FairTax

http://dailycaller.com/2013/06/04/fair-tax-or-flat-tax/

http://www.forbes.com/sites/kellyphillipserb/2015/08/07/our-current-tax-v-the-flat-tax-v-the-fair-tax-whats-the-difference/

My Take

Dear Friends,

When blood starts to spurt from my eyes from the continually emanating stupidity  from our Federal Government, I start to get writing fever, but then an article pops out on Town Hall which saves me a lot of time and energy.  I’ve pasted it below.  What is missing from Mr. Wilber’s critique are the essential factors or philosophy details contributing to this decline.  He focuses on the symptoms or outcomes, not the areas we need to address to set us back on course.

1.  Assuming the false narrative that humans are basically good and are taken down by environmental factors, thereby thrusting every bad person into victim-hood and ignoring the real victims.

2.  Young people need structure.  The left is doing its utmost to destroy that structure or at least twist it to their perverse ends which them can’t even clearly define… basically, bring it all down.  The trend has also been to extend the definition of young people into their late 20’s, thereby extending dependency on parents and/or government.

3.  With the left’s endless attacks on our moral fabric, people are floating around in a cesspool of moral relativism.  Many have the intellect to wade through this fog and thrive, but, I would posit, there are many more that cannot for various reasons.  The primary cause is the unforgivable destruction of our education system.  The secondary cause is the undermining of our religious institutions (Some would like to exchange this with the primary cause.  There used to be a link between the two.)

4.  Leftists and Libertarians (Libertarians are not bad people, just bloody naive on the nature of man) either undermine or eliminate societal reference points.  The devil is in the details regarding the delicate balance needed for liberty and not to devolve into anarchy and/or leftist chaos and moral turpitude.  It seems that many of the mass shootings (Roseburg et al) are under leftist watch?  Does the left EVER reflect on cause and effect?

Life goes on and the Marxist Imam bloviates on cue about gun control as in the meantime…

TKO

GEA

http://townhall.com/columnists/dwwilber/2015/10/02/obama-responsible-for-what-ails-america-or-just-good-timing-n2059934?utm_source=thdaily&utm_medium=email&utm_campaign=nl&newsletterad=

Obama Responsible for What Ails America, or Just Good Timing

D.W. Wilber

10/2/2015 12:01:00 AM – D.W. Wilber

Is Barack Obama responsible for all that ails the United States of America? Has his presidency brought this country to such a point that many question if America as we know it even has a future ?

Hardly. The truth is that we were already going down the toilet long before Obama came along. He has just helped hasten our trip into the sewer that the social engineers who preceded him, and who he aligns himself with now have made of our country over the last several decades.

For roughly seventy years now the anti-American teaching in our universities has helped create an environment where traditional American values have been denigrated and ridiculed. For seventy years our traditional morality has been questioned, dismissed as ‘old fashioned’, and eventually discarded.

And a couple of generations of Americans have grown up in an ‘MTV world’ where a false reality has been broadcast into millions of American homes. And into the impressionable minds of young people all over this country.

Back in the Sixties college radicals urged us all to “question authority” as they demonstrated against “the man”. They advocated the experimentation and use of hallucinogenic and psychoactive drugs of all types, and urged everyone to also discard traditional relationships for ‘free love’ and promiscuity. Communes sprang up around the country where a hedonistic lifestyle could be openly engaged in.

The reality is that the United States has been in a downward spiral for decades now brought on by liberalism and social tinkering that has weakened us morally, and changed American culture from a time when President John F. Kennedy told us to “ask not what your country can do for you, but ask what you can do for your country”, to the time of Barack Obama’s “fundamental transformation” of this nation.

We have done it to ourselves through greed, avarice and mendacity. Barack Obama just came along and took advantage of a country already in a severe decline. And bringing us to the point where sadly our best days may well be behind us. Are there enough Americans willing to bear the burdens required to get this country back on the right track ?

Many of us will go down swinging, but those of us willing “to pay any price, bear any burden, meet any hardship, support any friend, oppose any foe to assure the survival and the success of liberty”, as so eloquently said by President John Kennedy during his inauguration address, are far too few. And unfortunately vastly outnumbered by those who are willing to go along, just to get along.

Americans have become soft and addicted to modern conveniences. Take away their internet, cable and satellite television, and smart phones, and few Americans could make it through a single day, much less survive and flourish over the long haul.

As a nation we simply have become spoiled and dependent on machines and devices, or having other people take care of us. Self-sufficiency simply isn’t taught in American schools anymore.

I can recall a time when “Marksmanship and Firearms Safety” were part of a school’s curriculum, teaching young people responsibility and respect for guns. Part of an overall program intended to help build our young people’s character. Neither any longer allowed in American schools.

Nowadays guns are just a small part of the arsenal used in video games by ‘make believe soldiers’ to rip apart the bodies of ‘make-believe enemies’. With gratuitous amounts of blood and gore dispersing in all directions after a direct hit, scoring countless points for the person holding the joy stick.

I too grew up playing ‘soldier’, building my own Tommy Guns from a few nails and pieces of scrap wood lying around the garage. Taking on the identity of a John Basilone I fought through the jungles of Guadalcanal on the nearby school playground. Real, historical men of courage and bravery were my role models. Part of the character-building that helped raise American generations.

Unlike the idols of today who are emulated by far too many young people simply for at the top of their lungs screaming out vulgar rhymes, supposedly the lyrics to a “quote unquote” song, that disparages females and incites violence against the police. All accompanied by mind-numbing music blasting out of huge mega-speakers with the volume maxed out.

Generations have become shackled to Welfare and other government assistance never learning the importance of hard work and self-sufficiency. Why engage in hard work when one can sit in front of a 72 inch flat screen television and watch MTV, all paid for by someone else.

No, Barack Obama alone hasn’t brought this nation to the brink of destruction. He simply has taken advantage of a country already in decline, and one that apparently doesn’t have the will to do what it takes to change our course.

The blame rests with each of us who has looked the other way, drawn in the shutters and closed the drapes to block our view to what was happening. Instead of responding as we were challenged to by President John F. Kennedy so many years ago.