Saturday, December 11, 2010

What About Taxes?

Yesterday I tried to explain the foolishness and illegality of the federal government's attempts to buy votes through social legislation.  Today I will tell you why I am against any tax reform deals in conjunction with the status quo on the assessment and collection of taxes.  The cartoon above shows what a mouse trap would look like if it was designed by the IRS.  Our U. S. Constitution gives the government the power to tax when they need to in order to pay for expenses related to the four areas in which they have the primary legal role for jurisdiction.  One of these areas is taxation.  The other three are National Security, Interstate Commerce, and the Manufacture of Currency.  Here's how that plays out.  Keep us safe from foreign and domestic threats to our National Security so that we can pursue our lives in freedom and relative safety.  Set up rules so that our 50 separate states can engage in commerce with each other without undue interference. And, let the Treasury Department manufacture a uniform currency to allow us to engage in commerce.

That's not so hard is it?  (Enter the lawyers, legislators, and federal judges)  From this simple formula we have devolved into a quagmire of unbearable administrative costs and ineffective management never imagined or intended by the founders of our great nation.  Just read their comments related to how the government was intended to function.  The Federal Reserve now manufacturers our currency on an as needed basis with no viable backing.  It is an economy built on huge and ever growing debt.  This is illegal according to our constitution.  The Federal Reserve is illegal.  Their manufacture of our currency is illegal.  If you did the same thing you would most certainly be charged with counterfeiting.  Funding social welfare programs was never intended or authorized by our constitution and yet it was incrementally sewn into the fabric of government to purchase votes for whatever party happened to be in charge of the reins of government at the time.  Now it has become a self perpetuating parasitic blob which threatens the continued existence of our republic.

Remember, the party who holds the presidency doesn't always have the legislature.  So, when you are trying to unravel this mess of who's responsible during any political period, remember to look at the party who holds the legislative reins.  The administrative branch can't legislate.  It also takes years for simple changes to show their effectiveness (or not)  and provides ample opportunity for politicians to capture statistics and give erroneous interpretations that favor their party.  The truth is neither party has operated in an honorable and just fashion.  Therefore, when we talk about deals on whether to raise taxes or leave them the same we are once again being hoodwinked.  Our constitution is all about fairness in the administration of its legal requirements.  All people are to be treated fairly regardless of their status in life.  So a graduated scale of taxation is unconstitutional.  All citizens should be taxed at the same rate.  We could do away with a goodly portion of the IRS and its uninterpretable tax code.

This deal on maintaining the status quo is a ruse.  The deal will be fraught with selfish earmarks and legislative issues that couldn't pass the smell test if exposed to the nostrils of the majority of American voters and should be stopped until we can straighten out the process.

Everyone talks about the breaks the rich get.  Folks, they pay the majority of the taxes now anyway.  This is unconstitutional.


Summary of Latest Federal Individual Income Tax Data


Table 1
Summary of Federal Individual Income Tax Data, 2008

(Updated October 2010)

Number of Returns with Positive AGI
AGI 
($ millions)
Income Taxes Paid 
($ millions)
Group's Share of Total AGI
Group's Share of Income Taxes
Income Split Point
Average Tax Rate
All Taxpayers
139,960,5808,426,6251,031,512100%100%-12.24%
Top 1%
1,399,6061,685,472392,14920.00%38.02%$380,35423.27%
1-5%
5,598,4231,241,229213,56914.73%20.70%17.21%
Top 5%
6,998,0292,926,701605,71834.73%58.72%$159,61920.70%
5-10%
6,998,029929,761115,70311.03%11.22%12.44%
Top 10%
13,996,0583,856,462721,42145.77%69.94%$113,79918.71%
10-25%
20,994,0871,821,717169,19321.62%16.40%
9.29%
Top 25%
34,990,1455,678,179890,61467.38%86.34%$67,28015.68%
25-50%
34,990,1451,673,932113,02519.86%10.96%
6.75%
Top 50%
69,980,2907,352,1111,003,63987.25%97.30%>$33,04813.65%
Bottom 50%
69,980,2901,074,51427,87312.75%2.70%<$33,0482.59%
Source: Internal Revenue Service


The bottom line in all this is, we should adopt a tax system that taxes all citizens equally and requires a balanced budget and real fiscal accountability when legislation is proposed that requires federal spending.  We should also immediately examine the constitutionality of all programs and federal agencies and those found to be illegal and unconstitutional should be targeted for elimination.

If you are not criticized, you may not be doing much.
  - Donald H. Rumsfeld

Friday, December 10, 2010

You Can't Judge Anything By Its Cover


I know some of you look at me and say, "Judging by the set of his eyes and the slope of his brow, he's probably a domino player from Tara, Texas."  Well, a lot of thinking goes on behind these ominous eyes.  I have spent hours trying to explain things to people who don't want things explained.  The process has furrowed my brow and made me doubt the wisdom of continuing to pursue the exercise, however, I'm not giving up yet.

The current debate over taxing and spending has me grinding what few teeth I have left down to minimal nubs.  Every pundit and political prognosticator can site the cause and effect of the sorry state of affairs we are in financially in this country, and all use the same or similar facts and arguments to support their assessment of who's to blame.  The truth is, we are all to blame.  Ranking members of both political parties have used and abused the system to the point of failure, and the rest of us have let them do it because it was easier than keeping an eye on them.

I think the recent election showed some that thinking Americans are waking up and taking a stand.  Politicians should not ignore the resolve of the American people in their efforts to right wrongs.  The House of Lords (The U. S. Senate) seems to be the legislative body most unmoved by the stirrings around the nation.  These robber barons feel insulated by longevity and longer terms between elections, but nothing is sacred in this climate.  Mitch McConnell, (R) Senate minority leader did not get the message on stopping "earmark" legislation.  Why?  Because in 2009 McConnell bilked the American taxpayer out of 113 million for his own earmarks.  He has now capitulated, under pressure, and supports the legislation.

In a recent article by Mark Alexander, publisher of the Patriot Post, he gives the following assessment of what has to be done.  He says we must start by identifying programs and expenditures which are not permitted by  the U. S. Constitution and schedule them for termination.  

Where did we go wrong?  At some point we forgot the limited roll of the Federal Government as it was crafted by our founders.  These men understood what would happen if we forgot that government was meant to provide a safe haven for freedom.  It was intended to be closely monitored and regulated by the governed.  We also forgot that we have responsibilities to care for those who are not able to care for themselves.  The order of responsibility is family first, then friends, and lastly the community.  James Madison said, "I cannot undertake to lay my finger on that article of the Constitution which granted a right to Congress of expending, on objects of benevolence, the money of their constituents."

Some things just don't work.  Pouring money into programs to solve social issues is one of those things.  The eloquent economist, author, and educator, Thomas Sowell puts it this way, "Much of the social history of the Western world over the past three decades has involved replacing what worked with what sounded good."
We must exercise a tough love approach and rid ourselves of the cumbersome and wasteful sink holes of social welfare and replace them with local programs that can be more easily monitored and administered.  The help should not be without limits and should be attached to work and responsible action by the recipients.  

Later in the article by Mark Alexander we find the following:  Roger Pilon, director of Cato's Center for Constitutional Studies, aptly sums up the problem: "Over the 20th century, the federal government has assumed a vast and unprecedented set of powers. Not only has the exercise of those powers upset the balance between federal and state governments; run roughshod over individuals, families, and firms; and reduced economic opportunity for all; but most of what the federal government does today -- to put the point as plainly and candidly as possible -- is illegitimate because it is done without explicit constitutional authority. The time has come to start returning power to the states and the people, to re-limit federal power in our fundamental law, to restore constitutional government."

We must all undertake to regain control of our rogue government without regard to political party.  Our mission must be to restore the limited role of government in our lives.  In doing so we must take a more active role in the process and administration of programs to help our fellow citizens.  Our elected representatives must remember their oath and be thrown out of office if they fail to uphold it.

Article VI of our Constitution reads, in part, "This constitution, and the Laws of the United States which shall be made in Pursuance thereof ... shall be the supreme Law of the Land." It continues, "The Senators and Representatives before mentioned, and the Members of the several State Legislatures, and all executive and judicial Officers, both of the United States and of the several States, shall be bound by Oath or Affirmation, to support this Constitution."


We don't see things as they are, we see things as we are.
  - Anais Nin





Sunday, December 5, 2010

Pappy takes a trip.

Last week began with beautiful skies and moderate temperatures.  My desire to hit the open road for a little two wheeled adventure was off the charts.  I checked the weather forecast for five hundred miles in all directions and saw that all temperatures were in range and the chance of significant rain was minimal.  So, by Wednesday noon I completed all my "Honey do's", and when Barbara got home I was almost packed.  She graciously gave me permission to carry on as planned and by 2:30 P.M. I was cleared for take off.

The weather in the lower Rio Grande Valley was in the high seventies so I dressed in jeans and leather jacket and headed off into the Wild Horse desert.  I packed for cooler weather since my track took me north, but the riding was excellent just as I was dressed.  By 5:30 P.M. I was north of Corpus Christi, TX by about fifty miles in the town of Refugio.  The December sun hung low in the sky and I made a decision to ride thirty more miles to Goliad, TX.

The temperature dropped fast as the sun drifted below the tops of the mesquite trees and I felt a chill creep over the exposed exterior of my clothing.  It was almost dark when I got to Goliad and I was getting cold.  There were no available rooms to be found in the small town, and the next town, Cuero, was over thirty miles further north.  The sun was gone and I was in deer and hog country.  I decided to press on to Cuero.

I slowed my pace slightly and turned the seat and grip heaters up to the max.  I was chilled to the bone and wanting the miles to drift away quickly.  By 6:30 P. M. I saw the lights of Cuero and felt a sense of relief knowing soon I would be inside a motel room taking a hot shower.  I pulled into the parking lot of a new Best Western and saw that there was no vacancy.  Cuero is also a small town without many choices.  I saw a small motel just down the road and headed that way.  The Antlers Inn is not on the list of major motels and Mr. Patel was more than happy to provide me with lodging at a less than bargain rate.  I guess he couldn't see my gray hair under my "Do-rag".  I took the room without argument over price and pulled the bike up in front of the door.  The room was clean and warm, but not up to Bebe's standard for acceptable.  Since she wasn't with me I didn't check the bed spread and carpet for cleanliness.  I took a hot shower and went straight to bed.

The next morning when I woke I checked the bank thermometer across the street and saw that it was forty two degrees.  I put on my cold weather gear and started out again when the sun rose.  The rest of the ride was comfortable and I had great visits with a number of old friends.  Yesterday I started back.  The temperature had risen steadily over the previous two days and after some moderately cool mornings it was warm by afternoon.  I layered my clothing and by the time I reached the start of the two hour run through the King Ranch I was down to the bare minimum.  I completed my 1,000 mile run at 4:00 P.M. with a cold shower and a tall beverage.  I had to turn the air conditioner down just a little last night before I went to bed. It was a great trip.

Sanity calms, but madness is more interesting.
  - John Russell