White House Considers National Sales Tax

"White House economic adviser Paul Volcker said yesterday the United States should consider imposing a "value added tax" similar to those charged in Europe to help get the deficit under control. "

Just weeks after signing into law an unconstitutional Trillion Dollar health care system, the White House is looking for ways to start making up for their spending habits... and the answer is: Rob the People!

Instead of looking at their spending habits as the root cause of the deficit problem, they explore ways to bridge the gap in income - typical government! Spend into oblivion then tax the people to death!

Enough is Enough... that is a common theme these days, and for a good reason!

In what universe is the federal government living? Do they actually believe that a European style national sales tax is right for America? Of course they do! And the universe, well, it must be a parallel one in which the wealthy senators and representatives are ruling from their marble palaces in DC, out of touch with all the peasants of the nation... oh wait, that sounds a lot like this one.

At what point do we just push our local state governments into rejecting any new federal taxation, or simply challenging the federal government directly on legitimate constitutional grounds across the board? We simply cannot afford this union under the direction of this federal government. The state leadership has got to step up and say it for the people - 'Enough Taxes, Enough Spending, and Enough Constitutionally Questionable Maneuvers from the tiny District of Washington!"

WA State Dems - 2010: 'tis the Decade of Taxation!

Happy New Year to you, my faithful readers and likeminded freedom lovers! After a week and a half of recharging the ole batteries, I reconnect to the newsfeed to get more of the same: Democrats in Washington State want to raise taxes…

Washington State Democratic Gov. Christine Gregoire and her Democrat team of Flying Monkeys have run this state so far into the red that no 'gimmick' or federal bail-out is going to help them in 2010. Democrat special interests and big government spending have sunk the state deficit to $2.6 Billion through mid 2011.

Gregoire may not be up for re-election in '10, but her Democratic led State House will be placed into a tough spot in an election year - TAX INCREASES. We are not talking your run-of-the-mill Washington State Sales tax - We are talking the dirtiest of all taxes: State Income Tax - though a sales tax increase will be billed as the sensible alternative. In a state where sales tax already reaches into the 8.9% range, gas tax is pushing $0.40 per gallon, and businesses are taxed to death, one has to wonder why the Democrats, instead of cutting budget and living within fiscal restraint, figure that a recession is the perfect time to tax the people.

True to their nature, the Democrats have 'cut as much as we can cut' and are starting the legislative season selling the same old story of “gutting the education budget”, etc, to rally support for taxes – of course, think of the children. Liberal fear mongering at it's worst!

The reality of the matter is that this proposed tax is nothing more than our punishment for continually electing Democratic Majorities into the state house in Olympia. Time and again they spend beyond their means, and we are left footing a larger and larger bill. To what end?

Even if we see tax ‘cuts’ in certain areas as a way to appear ‘tax revenue neutral’, (other than the Billions they’re trying to overcome), there is no stopping the eliminated taxes from returning when Democrats spend us into another corner in the future – again I ask, TO WHAT END?

Instead of rolling up the sleeves and doing the dirty work, the easy answer is simply to take more money from the loyal subjects of the state of Washington. Unfortunately the trends are similar in every state and at the federal level: unrestrained spending, mortgaging the future for fruitless delusions. The Democrats understand nothing about sound fiscal judgment.

What is needed is a simple tax system, a series of protections against future spending and future tax increases, and a serious look at the regulatory structure of the State of Washington. We can get there by limiting government special welfare programs, consolidating regulatory agencies, and cutting the government size and payroll significantly. Cut the SIZE of the government to within the budgetary means, not increase revenue to feed the larger beast - What a Novel Concept!!

The leaders in our state, as well as our federal, governments should understand that economic and social prosperity comes not under the heavy burden of taxes and overregulation, rather under the encouragement of innovation and individual success. Another burdensome tax will merely deepen the underlying problem – Democratic State Spending!

Biden: Our Platform is to Redistribute Wealth

Biden has finally admitted what we have known for so long - the goal of the Obama/Biden Democratic party is to force the final bits of socialization of the Untied States.

Call me a fear monger? Or am I just telling the truth?

Biden told ABC's "Good Morning America" that the wealthy must pay more taxes to show their patriotism.

"it’s time to be patriotic … time to jump in, time to be part of the deal, time to help get America out of the rut."

What Biden seems to be forgetting to tell people is that an increased tax at the higher level, coupled with a near elimination of taxes at the lower level is nothing more than redistribution of wealth. It is a punishment of those who work hard and accomplish more. It is a punishment on intellect, innovation, and accomplishment.

And what Biden fails to recognize is that Free distribution of wealth, through charity work and charity giving, is the True American Way!

Now, I would not expect Biden to recognize charitable giving, considering that his $300,000 income only afforded him $350 worth of bread crumbs to toss to the poor.

The socialization of America is nearly complete:

• The US government is continuing to "bail-out" mega-companies with Taxpayer dollars, seating the US government as the CEO of each company. They are months away from a complete take-over of the entire business market. Do you think the Taxpayers have a say? No - we are merely the working pawns, generating worth (not wealth) for the continuation of the government.
• The US has taken education out of the hands of the states, and federalized a state institution with "No Child" legislation. Obama and Biden promise to go further, eliminating state control to ensure equal schooling (for better or worse) throughout the United States, run entirely by a central Dept. of Education. Any hope for school choice? No - we cannot be trusted to educate our own children, or choose who we want educating them on our behalf.
• The Dept of Treasury has long since been usurped by the Federal Reserve, but in light of the current economic crisis it is important to point out the failure of the Federal Reserve. The Fed has no consideration for actual wealth - only perceived wealth. It is an institution that has devalued the American Dollar to the point that the money is worth less than the paper it is printed on. A perfect example is in the AIG bail-out. The answer from the Fed was to flood the market with newly printed dollars - driving the value of the dollar down. This gives the perception of wealth... however, when a $0.69 loaf of bread costs $5.00, and you find yourself in a breadline, you can thank the Socialist Reserve - um - the Federal Reserve.

The list goes on.

With Obama/Biden at the helm, the transformation from a Republican form of Government (article IV, section 4 - US Constitution) into a Socialist form of Government will be complete. They have shown the intent of their "change" to be the transformation of a free society to a society of proletarians - a working class whose only purpose is to provide worth for the government to continue survival.

Understand that the Socialist philosophy indicates that the source of wealth is labor. The more we work, as a collective society, the better off our society will be in the end. This is precisely the case for the symbolism of the socialist parties: Hammer, sycle, and gear. Symbols of labor. Dumb, hard, labor. From each according to his ability, to each according to his need.

In contrast, the Capitalist philosophy indicates that the source of wealth is innovation. The free market's freedom to succeed and fail based on leadership, new ideas, and creativity in the market causes fluctuation, but is based on the success of new technology.

If there was ever more of a reason to NOT vote for Obama, it would be that he supports the path that Bush has put the nation on - one of an authoritarian Socialized society. John McCain and Sarah Palin are the true anti-Bush on society, and have pledged to revisit the rules and regulations that are as outdated as an Atari. The real shake-up comes from a candidate with new ideas - not the instillation of old Marxist ideas.

Don't give Obama/Biden the free pass on their ideals. They are in favor of the further socialization of this once great nation... Don't support the "Che 2008"!

Denver's Pepsi Center Not Large Enough for Obama's Head?

Barack Obama will not accept the Democratic nomination at Pepsi Center in front of the 20,000 volunteers and delegates... instead he has chosen a larger venue to offer himself to the people - INVESCO at Mile High.

This move will be cause for change to city planning, state planning, and protester planning that has been in the works for some time.

But what it does is try to portray Obama as "the peoples candidate"... as in the "People's Republic of Obama"?

The acceptance speech is already going to be broadcast worldwide... what is Obama trying to show by snubbing the convention process in favor of a giant venue? His campaign's explanation is that he wants to make himself available to young folks who are new to the process...

While I would usually agree that this is a great idea, the 11th hour change to accommodate Obama's wishes is a sign of his arrogance and pompousness as he is dubbing himself Mr Inevitable... Alas, good sir... The American people are now watching you... and this intimate affair you have been having with the MSM is going to be coming to an end... The people of America will start to see your record, your habits, your confidants, and your true colors.

Hugh Hewitt, whom many of my long time readers know that I agree with rarely on Presidential Politics, has posted some great talking points regarding the True Obama. I will share some of them here, and we can begin to discuss why Obama cannot win in November.

1. He had a stumbling, bumbling close to his primary campaign, and the opening weeks of his general campaign have been marked by flip flops and lurches left. - Hillary Clinton made some of her biggest gains against Obama in the last few contests. Obama proved that he is not ready to handle a general election match-up.

2. He's hard left. - I have said it many times over, Barack Obama will implement change in America that will ensure that the United States of America becomes the United Socialist States of America.

3. He wants the marginal rate on total federal taxes, including his social security tax hike, to immediately rise at least 57% on the highest earners. Obama wants to raise taxes even in a weak economy, though this is a recipe not just for recession but worse. Obama also wants to raise taxes on dividend income and to return the death tax to its highs of eight years ago. - The top 1% of wage earners in the US already pay 50% of the total tax revenue, while the bottom 50% of wage earners pay 3% of the total revenue. The top 1% are the job creators. They are the innovative and motivated. They bear the highest burden of our society already, a burden that if it becomes too hard to bear may take them out of the game. Imagine if you earned $99 and paid $10 in taxes because you were in a lower tax bracket... That is where the middle class finds itself. Now imagine that you work overtime on the weekends to try and put your children through college, and you earn $101, putting you into a higher tax bracket... Now you pay $45 because you worked harder and earned more. It would have been more beneficial to NOT WORK and take the $89 instead of bustin' your hump to end up with $56.

4. Obama has proposed more than a trillion dollars in new spending - That is not total budget, like GW Bush's $3.1 Trillion budget he just sent to congress... it is additional spending. With no spending cuts for failed programs, no stop to earmarks, that brings the US federal budget to an unprecedented $6.1 Trillion.

5. He thinks the most liberal member of the Supreme Court, Ruth Bader Ginsburg, is a great model for future Supreme Court appointments - Please see my post about the Heller v DC Supreme Court Case to see how this one would turn out.

6. Obama is not a strong friend of Israel. He spent 20 years in a church that was openly hostile to Israel, and he reversed himself on Jerusalem as the undivided capital of Israel after one day of criticism by Palestinians - I have posted my feelings many times regarding Israel, and their right to exist as a free country. Obama's embrace of the Muslim Countries to the extent that they regard Israel as a nuisance is the most troubling, especially to Jews who fight for life and religious freedom every day in that tiny country.

7. He supports abortion on demand, including partial birth abortion - The founders wrote in the Declaration of Independence that we were Endowed by Nature's God with certain inalienable rights, the most important was Life (as it was listed first). The Right To Life is the single most fundamental right that every being, every soul, has. It is more than just a "burden" that parents have to endure, being "punished with a baby" (Obama - "if they make a mistake, I don't want them punished with a baby")... it is a responsibility for the action of sexual intercourse, and a result that, if unwanted, should not punish the child with death! Obama is absolutely wrong and extremely left-ward on his approach to abortion in the US.

The list continues, and I will continue to work so that all 75,000 seats in that stadium are empty, or at least filled with those who know Obama's looming damage to the country and the world.

Mayday! May Day?

When I was a tot, I remember May first as a day when we would sit around in class and make fake flowers, with the intent of leaving them on the door of some unsuspecting recipient as part of a celebration that "rung in spring"... Little did I know at the time that it was actually a celebration of communism / socialism in which we provide to those according to their needs based on our ability.

On this Snowy May Day, I am thankful that we are no longer growing up in the Cold War Era... but regretful that the latest generation doesn't truly "GET" Rocky 4... or the struggle that freedom had when faced with Socialism.

It makes me uneasy that in my class of 64 graduating Aerospace Engineers back in 2004, about half had no issues with moving to China to help China's goal of Lunar and extra-planetary exploration...

It upsets me that there is a lackadaisical attitude towards freedom and liberty in America anymore... and that "rights" are now defined as what the government "should give me" - without thought as to how the government obtained the goods in the first place (i.e. my pocketbook!)

It frustrates me that "Coming to America" is no longer a song in which the glory of America is exalted as the Right Choice and Moral High Ground in the world... Coming to America is now a right that our elected leaders believe every "citizen of the world" has, regardless of illness, intent, or ability... and once you "come to America" the government will provide everything you need... off the broken back of the taxpayer!

So on this May Day, I am remembering the communist training that I received so many years ago, as an unaware child... and I am thankful that in my life I was able to rise above the propaganda, and become a free thinking, liberty loving Conservative!

Fair Tax or Flat Tax? How Will Americans Benefit Most?

There is an old saying: Two things are certain, Death and Taxes.

Scientists are working hard every day to work on the Death predicament... but what are we doing about taxes?

Currently in the US, every dollar that we make is taxed on the order of +60% over four levels of government and by many means of taxation. We have Federal Income tax, Social Security and Medicare tax, State income tax, state sales tax, property tax, stamp tax, gas tax, gift tax, real estate tax, car tab tax, recreational vehicle tax, estate tax, luxury tax, capital gains tax, etc, etc, etc... I think the point is well made in that list...

So the general question that I would like to discuss is: With all these taxes on our achievements and wellness, not only how do we succeed, but why do we try?

It is very well known, and even discussed by Karl Marx, that the best way to stimulate economic growth is by reducing the taxation of the people. Imagine that... even the brainchild of the Communist Manifesto went forward understanding that communism stifled economic prosperity. But it seems that his followers today fail to grasp the fundamentals of economics, and have instead focused on his dreams of a Utopian communist society (aka Pipe Dream!)

Our infinitely complicated tax code in the United States is currently set up to stifle non-government controlled economic growth. There are penalties on savings, penalties on success, penalties on achieving breakthroughs in business that may bump you into a "higher tax bracket". So the harder you work, the harder you are taxed... Therefore, it is better to achieve the minimum and settle for modest results.

Let's look at an example. Imagine that you make $100 in a month in your business. The government says that if you make $100 in your business, you will be taxed $15. Your after tax earnings are $85. Now, suppose you had a boost in business, and the next month you made $101. The tax code is set up in a way that you are now in a new tax bracket, being taxed at a higher rate, and you will be taxed $20 for the month. So your second month after tax income, though you had more business, was $81. This is how our tax system currently works...

So where is the incentive to work harder?

It is in a new tax code system.

Currently, our tax code is 16,845 pages long... it is a mess of varying taxes, tax exemptions, blah blah blah... So how do we fix it?

Two solutions have been suggested: Fair Tax and Flat tax. Which one is better?

The Fair Tax is a plan that would eliminate income tax, and move the entirety of the Federal Tax to a consumption based tax rate of around 23%. What this means is that of the $101 made in the month, you get $101 in your pocket (or bank). Then the tax is applied when you go to purchase, say, a ream of paper for $5. The price after tax would be $6.15. Supposing that the ream of paper is the only purchase you needed to make in that month, your $101 will have been taxed only the one time, leaving you with an after tax amount of $99.85. Food is exempt from the consumption tax... so it is voluntary tax based on the level of your consumption. Assuming consumption rates stay the same, the net income to the government will be revenue neutral. However, there will be a boom to the economy because there is more money on the front side of the consumer process, so consumption rates would likely increase (though one would hope that SAVINGS rates increased!). There are a few down sides to the Fair Tax. The first glaring one is that to protect the citizens from a consumption tax AND an income tax, there will need to be a constitutional amendment. Repeal the 16th and rewrite to ensure that the Congress does not impose an income tax. The second is the uncertainty in tax revenue. You can predict trends in income, but if those trends do not pan out, the revenue will be short (which is fine by me... the US government does not need a 3 Trillion dollar budget!)

The Flat Tax is a flat, one rate, income tax. No matter what tax bracket you are in, you pay one tax one time. CATO institute suggests that maximum economic growth occurs with a total tax rate around 18%. That means if you make $100 you pay $18. If you make $101, you pay $18.18 and so on. There are no tax brackets, no penalties for success... just a one sentence IRS tax code that says: If you live and work in the US, You pay 18% income tax.

Of course neither tax fix deals with state and local taxes... so the flat tax rate would have to consider state and local tax rates to achieve the maximum economic growth. The logic behind the 18% is that all of the taxes listed above must add up to 18%.

Is one better than the other? I think they are equally effective in limiting government control on personal success and economic progress.

Is one easier to implement than the other? Yes. The flat tax would be the first step in halting the out of control government, and making a proactive change in our economy and society. The fair tax is a radical idea that would take much time and money to implement... though once implemented, it could be a great way to leverage power from the government back to the people (imagine consumption strikes to limit income to the government!).

The idea is economic freedom. The medium for freedom is through a people smart tax code. The rest is up to us.

Taxes, and tax code changes

With Mike Huckabee forcing the GOP contenders to no longer be considered "top tier", rather "top-five" contenders, it is also bring more discussion about the Fair Tax. Now, I must admit that I am a bit of a fan of the Fair Tax, which is why it upsets me when I hear folks like Romney insist time and again that the Fair Tax would mean a 33% national sales tax, and how it would hurt the retired folks who no longer pay income taxes... Let's stop the political dribble, and discuss real tax reform.

For starters, the Fair Tax will require no more than a 22% National Sales tax. This will be stand alone, no income tax at a national level. The lower rates will still fund the federal government for a few simple reasons:

1. Elimination of defunct government programs/departments/programs


2. The hidden taxes currently built into the current price system will go away - the prices will have to drop as consumers will be outraged to see a corporate profit increase of unreasonable amounts


3. We no longer will have to subsidise those failing to pay income tax. This is a system where more people will be paying into it, so the rates are lower with the same results

The tax code is currently so complicated, with loopholes, tax breaks, multiple taxes... for instance, if you overpay your taxes and your tax write-offs exceed $10,000, the money that was taxed once and then returned to you is taxed a second time the following year as income. There is a tax on savings, tax on dying, even a tax on selling your home too soon... Every aspect of our current tax code suggests that the government wants to penalize growth and innovation.

Imagine a tax system that would either eliminate the entire tax system, levying a one-time tax of 20-30% on income, or a tax system that has a 0% income tax and 22% sales tax. No loopholes, no tricks, no special deductions. Everyone pays tax one time on the same dollar.

The CATO institute suggest a flat income tax, eliminating all other tax loopholes. They suggest a maximum tax rate of 20% for maximum economic advantage. In time, this tax rate will provide economic growth rates upwards of 7-10%. Similar results would be seen with a Fair Tax, but the Fair tax has one HUGE obstacle: the Constitution.

During the era of the new deal, there was a tricky little amendment to the constitution that allowed the federal government to collect an income tax. The Fair Tax will never succeed unless we have a constitutional amendment to repeal the federal income tax, and replace it with a sales tax... furthermore, it would be almost necessary to constitutionally ban a federal income tax to ensure that the government does not hit us with BOTH! This is the reason that the CATO institute has chosen not to endorse the Fair Tax... the means to achieve the intended purpose are too great.

So as we move forward with the Presidential nomination process, we need to listen very closely to those with the biggest ideas on taxes. Senators Obama and Clinton have promised to increase tax rates to those of the 1990's... That is upwards of 40% plus multiple taxes. The only effect of taxes this high are stifled economic growth, higher unemployment rates, and lower disposable income in the hands of the citizens (and thus a lower quality of life).

Who is your candidate of choice when it comes to taxes? How will they best spend my money? And how will they ensure that my money stays in my pockets, not their coffers?