Earning my presidential vote: taxation

As I noted yesterday, the economic portion of my study began with how people can better get more money in their pockets, but this morning I’m going to discuss how best people can keep what they earned. (To start from the beginning, go here. I’m linking to each succeeding part at the end.)

Regarding taxation, the next president should (in five bullet points or less):

  • Strive for a consumption-based taxation system to replace the income-based system.
  • Work to repeal the Sixteenth Amendment, as that is a key element in accomplishing the first point above.
  • Corporate taxes should be lowered to be competitive with other nations.
  • Do away with the estate tax while we’re at it.
  • Stop using the tax code to reward behavior, aside from the reward for saving and investing a consumption-based tax would produce.

So how do our candidates look regarding these points? Honestly, some look pretty good – and this is one of the shorter parts. This is the first of our double-digit point categories; 10 points are available.

Castle: I have proposed a taxing system whereby taxes would be apportioned to the states as the census dictates. If my state of Tennessee had two percent of the nation’s population, for example, it would be liable for two percent of the budget. It would be incumbent upon the representatives from Tennessee to help hold down Federal spending. The Federal Government would be encouraged to spend less not more. The states would be empowered and Washington would be dis-empowered. Washington’s hold over the states would be broken and the states would be sovereign again – Washington would have to ask the states for money. States would be free to collect their revenue as they see fit. Alaska might tax its natural resources and Florida might tax tourism. In Nevada, it would obviously be gambling. Since people could keep their income the economy would explode with growth.

Prefers FairTax to income tax, but has less control by states. “I would like to see (the Sixteeneth Amendment) repealed, if possible.” (Facebook page)

Hedges: Until renewed Volstead Act (Prohibition), higher taxes on alcohol and tobacco.

“There is no way to cut back income and at the same time deliver more services. Things that taxpayers want, the taxpayers must pay for.”

Hoefling: We consider the federal income tax to be destructive of our liberty, privacy, and prosperity. Therefore, we are working to bring about its complete elimination and the repeal of the Sixteenth Amendment to the U.S. Constitution. We recommend that the current system be replaced by an equitable, simple, noninvasive, visible, efficient tax, one that does not destroy or even infringe upon our economic privacy and liberty. (party platform)

Johnson: Stop special interest loopholes. Reward responsibility. And simplify our tax code.

Today’s federal tax code does all the wrong things. It penalizes productivity, savings and investment, while rewarding inefficiency and designating winners and losers according to political whim.

For far too long, tax laws have been used not just as a means to collect needed revenues, but as a way for special interests to penalize their competitors while subsidizing themselves. The result is a tax code that is more than 70,000 pages long, enforced by a government agency with almost 100,000 employees. As a result, our tax code has created a nightmare for the average American, while providing shelter for those with the means to manipulate it.

Governor Johnson advocates for the elimination of special interest tax loopholes, to get rid of the double-taxation on small businesses, and ultimately, the replacement of all income and payroll taxes with a single consumption tax that determines your tax burden by how much you spend, not how much you earn. Such a tax would be structured to ensure that no one’s tax burden for the purchase of basic family necessities would be increased. To the contrary, costs of necessities would likely decrease with the elimination of taxes already included in the price of virtually everything we buy.

Many leading economists have long advocated such a shift in the way we are taxed, and Gary Johnson believes the time has come to replace our current tax code, which penalizes the savings, productivity and investment we so desperately need. (campaign website)

McMullin: Evan McMullin will…make the tax code fairer and simpler, helping to spur business innovation, especially the growth of small businesses, which are the country’s most important job creators. Small businesses should pay closer to 25 percent of their profits in taxes, whereas now there are many that must pay almost 40 percent. Right now America also has the highest corporate tax rate – 35 percent – of any advanced economy. Even Barack Obama has said that it should be substantially lower. Income tax rates also need to come down, especially for the middle-class; once the economy starts growing again at an acceptable rate, high-earners should also get a break.

The Earned Income Tax Credit (EITC) is one program that shows how we can fight poverty while encouraging work—it provides a tax refund for those who have jobs but don’t earn enough to be self-sufficient. One shortcoming of the EITC is that tax refunds may not arrive until someone has been working for more than a year. To provide a stronger incentive to work, there should be immediate benefits for those who have jobs. This can happen by transitioning from tax refunds to wage supplements, which add money to every paycheck, starting from day one. Wage supplements also create a strong incentive to spend more time at work, since the benefit rises with each hour spent on the job.

By adding to the paychecks of low-income workers, EITC and wage supplements accomplish the same goal as an increase in the minimum wage, but without reducing the number of jobs available or punishing job creators. If the federal minimum wage rose from $7.25 to $15 per hour, many jobs that pay $9 or $10 per hour would disappear, because employers could not afford the cost. When such jobs disappear, the primary victims are the poor and unemployed, who depend on such jobs to acquire skills and get a foot in the door so they can eventually rise up. (campaign website)

With the exception of a slightly higher corporate tax rate, McMullin’s tax proposal is largely in line with the tax reform plan put forth by House Republicans over the summer. Individual income taxes would be reduced to three brackets from seven at rates of 12%, 25% and 33%. Small business taxes would be reduced to 25%, and the corporate tax rate would also be reduced to 25% (the House GOP plan pegs the corporate tax rate at 20%). (TheStreet.com)

**********

I think Darrell Castle‘s idea is very intriguing because it would certainly rein in the federal government. Let’s say the federal budget is $4 trillion. Castle uses 2% as an example; it so happens Maryland is roughly 2% of the national population. That would mean the state would be liable for $80 billion, which is about twice our state’s annual budget – but certainly is doable when you figure the state’s GDP is about $365 billion. If a state didn’t want to come up with its share, well, maybe its Congressional delegation would become serious about rightsizing government. To me, that’s the beauty of the idea. He also gets the point regarding the Sixteenth Amendment. 8.5 points.

I question the wisdom of Jim Hedges and his ideas about taxation. It’s understandable that he wants higher sin taxes given the nature of his party (albeit these are consumption taxes, which doesn’t make them completely bad), but the implication that taxpayers want more services is the part I am at odds with. I think taxpayers want more efficient services, but if you ask almost anyone they can point out something they feel the government is wasting money on. This is another area where Hedges’ more leftward tendencies step away from what I think his party really stands for. 1 point.

Tom Hoefling and his America’s Party platform is spot on, except for not specifying the types of taxation which would qualify as “equitable, simple…” and so forth. He has the basics down cold, though. 8 points.

In so many words, Gary Johnson is for a consumption-based tax, too. His misstep is not calling for repealing the Sixteenth Amendment because everyone knows that when the government wants to spend more money they will immediately return to soaking us with the income tax as double taxation. 5.5 points.

The problem with Evan McMullin is that his tax platform tinkers around the edges of a terrible system; in fact, he makes it worse and more progressive to the extent that high-income earners will have to wait for their break until the economy improves. (But who really drives the economy with investment as opposed to consumption?) I think the EITC was intended as a tool to help the working class but now it’s become just another government handout – yet McMullin wants to double down with wage supplements? We do not need another entitlement program. Stick with the lower rates for all, mmmmkay? 2 points.

Well, that spread the field out some. We will see how much more of that occurs tomorrow when I resume the series with immigration.

The case against Trump (part 2)

Since I finished part 1 last week, we’ve had a lot of developments in the race: Trump picked outgoing Indiana Governor Mike Pence to be his running mate (or did he actually make the selection?) and came up with an awful logo (that lasted one day) to celebrate. Meanwhile, the RNC apparently succeeded in binding their delegates to this dog of a ticket. (My question: how did our Maryland Rules Committee members vote? I believe Nicolee Ambrose, who has fought in that committee before, voted the proper way and against the RNC/Trump minions. Yes, they are shamefully now one and the same.)

Update: Indeed, both Maryland members voted properly, and Nicolee Ambrose is urging members to reject the Majority Rules Report.

So the question may be moot, but I’m going to press on for the record so I can point back at this and say “I told you so.” Not that it will do a whole lot of good, of course, but maybe people will listen to reason in the future. It’s worth a try.

Just as a refresher, the five issues I have left over are taxation, immigration, foreign policy, entitlements, and role of government.

Trump came up with a decent taxation plan during the campaign – maybe not all that I would want, but an improvement. But he later admitted that all of it was up for negotiation, so let me clarify: the rates will not go down for many taxpayers, but the increases that made the package “revenue neutral” in his words will remain. Those on the low end of the scale may get the “I win!” form but the rest of us in the middle will lose, again.

I’m tempted to save immigration for last because that was the first important issue for Trump and the one that propelled him from celebrity sideshow to true contender. Americans, indeed, want something done about the influx of foreigners and a large part of that is building a wall at the border. But it’s not my most important issue and I still run this blog, so it goes in order.

The first crack in the Trump immigration façade for me was the idea of building a “big, beautiful door” in the wall to promote legal immigration. Then I found out Donald was an advocate of what’s called “touchback” immigration, which is a fancy way of saying he’ll give amnesty. And I can see it already: in a “grand deal” to get the wall built, Trump will eliminate the “touchback” part – because it’s oh so hard for these immigrants to be uprooted and return to their homeland – for the promise that a wall will get built. News flash: we were promised this in 2006, but the Democrats (along with a few squishy Republicans) reneged on the deal. We see how Congress acts, and regardless of what Trump may say this is not a promise he would keep. Bank on it.

I know Trump did a sort of catch-all address on foreign policy some months back, but his criticism of the Iraq war (and accusations about soldiers therein) gives me pause. That’s not to say we are always right, but there is a little bit of hindsight he’s taking advantage of here. If Iraq were a thriving nation and American bulwark in the Middle East such as Israel is, I seriously doubt Trump would say word one about it being a bad idea. That’s the sort of person I take him to be.

It’s very possible to lump both entitlements and the role of government into one statement, reportedly made by Trump in New Hampshire back in 2015 and relayed by Andrew Kirell at Mediaite:

The Affordable Care Act, “which is a disaster,” he said, “has to be repealed and replaced.” That line drew applause.

“Whether it is we are going to cut Social Security, because that’s what they are saying,” he continued. “Every Republican wants to do a big number on Social Security, they want to do it on Medicare, they want to do it on Medicaid. And we can’t do that. And it’s not fair to the people that have been paying in for years and now all of the sudden they want to be cut.”

So will it be fair when the train goes off the tracks and millions of younger Americans are left with nothing? Trump is 70 years old, so (as if he really needed it) if Social Security runs out in 2030 he’ll likely be dead anyway. But I will be 66 years old and hoping to retire at some point, although thanks to the Ponzi scheme of Social Security all that money my employers and I grudgingly gave to the government over forty-plus years will long since be pissed away. And the more I deal with the “Affordable” Care Act, the less affordable I find it. The repeal is fine, but the replace should be with the old system we liked, not some new government intrusion.

In sum, it became apparent to me early on that despite his appeal as an outsider, Donald Trump is far from an advocate of limiting government. If he should win in November, conservative Republicans will likely be in the same precarious position they were often placed in by George W. Bush: it’s difficult to go against a president in your own party even if he goes against party principles.

The Republican Party I signed onto back in 1982 when I first registered to vote in Fulton Township, Ohio was ably represented by Ronald Reagan at the time: strong defense, lower taxes for all Americans, and a moral clarity of purpose that included the concept of American exceptionalism. Yet Reagan also intended to limit government; unfortunately he wasn’t as successful in that aspect because he always worked with a Democrat-controlled House (and usually Senate.) I often wish that Reagan could have worked with the early Gingrich-led House and a conservative Senate – we may have beat back a half-century of New Deal and Great Society policies to provide a great deal for all Americans who wished to pursue the opportunities provided to them.

I don’t know how we got Donald Trump as our nominee, although I suspect the early open primaries (and $2 billion in free media) may have helped. Democrats may have put together their own successful “Operation Chaos” to give Republicans the weakest possible contender. (And if you think that’s a recent concept, I have a confession to make: in my first Presidential primary in 1984 I requested a Democrat ballot so I could vote for Jesse Jackson, who I perceived as the Democrat least likely to beat Ronald Reagan in the general election. Not that I needed to worry.) It’s worth noting that the defeat of “Free the Delegates” also resulted in the defeat of some measures designed to reduce the impact of open primaries.

Alas, the GOP may be stuck with Trump as the nominee. So my message for the national Republican Party from here on out is simple: you broke it, you bought it. The mess is on you and I’m washing my hands of it.

Programming note: Over the next four days – in addition to her regular Tuesday column – I will run a special four-part series sent to me by Marita Noon, but originally written by John Manfreda, who normally writes on the energy sector like Marita does. She “spent most of the day (last Thursday) updating it, reworking it, and cleaning it up,” so I decided to run it as the four parts intended during the Republican convention.

I intend it as a cautionary tale, so conservatives aren’t fooled by a smooth-talking charlatan ever again. Don’t worry, I have a couple things I’m working on too so I may pop in this week from time to time if I feel so inclined. But I trust Marita and this seems quite relevant and enjoyable, so look for it over the next four afternoons…probably set them to run at noontime (how appropriate, right?)

The problem with The Donald

Most of the news cycle of the last three days or so has been about the Iowa Republican debate, but the conversation centered about who was not there. I don’t recall nearly as much ink about Rand Paul missing the previous debate because he finished just outside the cutoff for the prime-time affair and refused to be an opening act. Last night, those opening act players were Carly Fiorina, Jim Gilmore, Mike Huckabee, and Rick Santorum – the latter two then went to Donald Trump’s event set up to compete with the Fox news debate. (At least Gilmore was promoted to actually making a debate, so that’s progress for him.)

But this piece isn’t about the debate, but about something my friend Rick Manning wrote at NetRightDaily. In some respects it makes the same case I have been making about Trump all along.

A dealmaker by definition cuts deals, and Trump has by his own admission cut deals that used the government to serve his interests quite profitably. A dealmaker doesn’t stand on principle; instead, a dealmaker looks for common ground.

If the past seven years have taught me anything, it is that the Democrats are unrelenting in their pursuit of bigger, more expansive government, and the GOP consistently looks for common ground that is only partially disastrous, calling that a bipartisan win.

When Trump says he would repeal ObamaCare and replace it with a government-paid healthcare system, I believe him, and that makes me very uneasy.

Not because of the policy difference, but rather because what the policy difference reveals. It reveals a man who accepts big government and would expand it if the right deal were on the table. It reveals that a Trump presidency may be completely unmoored from the constitutional, limited government perspective that has traditionally driven Republican candidates.

In my study of the issues there are a number of areas, such as entitlements, ethanol, and even his tax plan, where Trump is far from a limited-government conservative. I will grant that my idea of limiting government in the case of entitlements and ethanol would be to sunset the programs and subsidies entirely over time, but part of that is not recalling just where in the Constitution it specified that the federal government had a role in retirement, supplying medical care, or propping up the fortunes of grain farmers. As far as the tax plan goes, whenever I see the idea of cutting rates at the low end and “paying” for it with reducing deductions for the top earners I know that the trust fund babies will find new loopholes in short order, leaving the government short and those business people who see accounting as a necessary evil (after all, they have a business to run and not beans to count) getting the shaft. You all know I would prefer a consumption-based system.

So when it comes to the “art of the deal” who do you think Trump will compromise with? Certainly the Republicans have nothing of interest to him since he is “representing” that party in the White House, so his dealing and compromise will be with the Democrats who we already know will bite the arm off anyone reaching across the aisle. The middle ground between the left-of-center (on most domestic issues except for immigration) Trump and the foaming-at-the-mouth statist Democrats promises to be right about where Hillary Clinton or Bernie Sanders would govern anyway. In the case of Trump Republicanism, there truly is not a dime’s worth of difference between the two parties.

Conservatives against Trump (and his hucksters)

January 23, 2016 · Posted in Campaign 2016 - President, Delmarva items, National politics, Politics, State of Conservatism · Comments Off on Conservatives against Trump (and his hucksters) 

In an attempt to tip the scales a little bit, and arguably give itself a little relevance in this current campaign, National Review gathered nearly two dozen prominent conservatives to make their case why nominating (and worse, electing) Donald Trump would be a mistake and a setback for the conservative movement. For the most part their reasons echoed a lot of what I said when I did my “dossier” series a few months back. Simply put, Donald Trump is not a conservative.

Had National Review asked me, my case would be made from the idea that Trump is a populist rather than a conservative, with ideas that sound great in a broad sense but when implemented evoke the old saying “the devil is in the details.” On immigration I share Trump’s concerns, and for the most part I think he has a sound approach to the issue. (This is in contrast to some at NR that would embrace immigration reform.) But in other areas such as taxation Trump works in a more steeply progressive, populist direction. Low-income wage-earners may get to send in a tax form that says “I win” but eventually we will all lose because the precedents will be set in punishing certain businesses. Talking tough with China is one thing, but putting the policies into practice another.

I don’t want to go through a complete rehash of what I said the other day when Trump got the Sarah Palin endorsement, but so far in the 2016 campaign – one which had the promise of a good, conservative candidate who could win on a message of rolling back the excesses of the Obama administration – we have instead seen the candidate whose campaign has most resembled the brashness and bravado of a WWE event reach the top of the polls and stay there despite the best efforts of several candidates to knock him off the perch. The argument that he’s not conservative enough seems to fall on deaf ears because people believe Trump can make America great again for some reason. It makes me wonder if the TEA Party was more of a cry for limited-government solutions or just a reaction to a President who was going too far too fast in a direction they didn’t expect.

To that end, there are now TEA Party people who want to cash in on the Trump name. Case in point: Amy Kremer, formerly of the TEA Party Express. I apologize in advance for the long blockquote, but you have to get a load of this fundraising appeal:

Dear Patriot,

Are you sick and tired of seeing America lose?

Are you fed up with Washington Elites and the liberal media screwing up, weakening our country and running us into the ground?

Do you think we need less mindless political correctness and more old-fashioned common sense?

And, do you think we need a bold, proven leader to win the Presidency and Make America Great Again?

Well I do too! And I am wholeheartedly supporting Donald Trump!

My name is Amy Kremer and I am one of the founders of the modern day tea party movement.

As Chairman of the Tea Party Express, I worked alongside millions of Americans just like you and we helped lead a revolution in American politics. I was just middle class mother who was fed up and spoke out, but together, we made a difference.

Now, America needs us again. We have to come together and elect Donald J. Trump President of the United States!

That is why I have founded TrumPAC, a brand new organization dedicated to supporting Donald Trump. And, I am going to need your help, BIG Time.

(snip)

The Elites are going crazy! They cannot stand the idea of President Trump, they are running scared, and as they quiver in their Ivory Towers, they plan to throw every thing they can at Mr. Trump to try and stop him, including the kitchen sink! No smear will be left in the bag or underhanded dirty trick will go un-played.

Their desperation is disgusting, but we know it’s coming. And we need to stop them!

That’s why we need you today, right now, to help Donald Trump weather the course. Mr. Trump has strong shoulders, and if we get his back and show the World that there is a movement behind him, ready to propel him all the way the Oval Office, nothing will stop us!

(snip)

Donate today and we’ll send $5 dollars directly to Mr. Trumps campaign so YOUR name will be on his FEC Report – we’ll handle the paperwork and even cover the credit card processing fees so every penny goes to the Trump campaign.

(snip)

AND BEST OF ALL – when his January finance report comes out, Your name will be on it, telling the world where you stand. You see, normally only big donations show up on finance reports, but because it came through us, just $5 will get your name counted too.

Mr. Trump will get a shot in the arm to see all of our names going on the record for him. Plus, his campaign will know how to follow up with you and get you involved when it’s time to vote in your state.

(snip)

I hope I can I count on you to chip in with a contribution and help reach our goal so we can get our winning message out to voters across the country.

Just $20 will help reach about 5,000 people through robocalls, social media, and Internet ads.

$35 will help reach about 13,000 individuals.

$100 will help reach nearly 36,910 folks. $150 reaches nearly 51,000 people.

Just $200 allows us to contact nearly 68,000 folks over social media and the Internet.

Whatever amount you can afford, your contribution will help us reach out and convince more voters that Donald Trump is what America needs!

So I send Amy Kremer $25 (which is the default amount on their fundraising appeal) and Trump gets five bucks? What a bargain! Not only that, the other $20 will “reach about 5,000 people through robocalls, social media, and Internet ads.” (Damn, I’d love to know where they are spending their $20 because I have a website I’d like to promote.) On that point, it looks like we have diminishing returns at some points so I’m wondering where this lady got her numbers. Math may not be her strong suit?

It’s interesting because when Kremer left the TEA Party Express in 2014 her plans were for “engaging in competitive Senate primaries and supporting fiscal conservatives in the coming weeks.” There must not have been enough money in that part of the political world so it was time to glom on to the most populist candidate we’ve seen since Barack Obama to be a moneymaker.

And people wonder why those of us in the heartland are so cynical about politics. It’s why we shouldn’t attach ourselves to a person but a philosophy, and mine is that of limited-government conservatism. Out of all the remaining candidates in the 2016 race, it’s a sad commentary to know that Donald Trump is the farthest from that ideal, yet many who call themselves conservative support him and apparently making money off his name is just peachy.

Update: Still need more evidence Trump isn’t a limited government conservative? Federally-controlled land is just fine with him.

About that TEA Party…

November 27, 2015 · Posted in All politics is local, Campaign 2016 - President, Delmarva items, National politics, Politics, State of Conservatism · Comments Off on About that TEA Party… 

My “10 from 10” post this morning regarding the 9/12 Rally back in 2009 got me to pondering where the movement has gone in the intervening years.

If you’ve been a reader around here for a long time, you may recall that I covered a significant number of TEA Party-related groups that sprung up in the local area over the next couple years. Not only did we have the TEA Parties themselves that went on in both 2009 and 2010, but also groups like Americans for Prosperity and the Wicomico Society of Patriots. They went on for a couple of years but essentially died off from a lack of interest. (On the other hand, we still have the Worcester County TEA Party and 9-12 Delaware Patriots.)

Having been involved to a limited extent with the Wicomico groups, I can tell you that some of the players who remain active have gone “establishment” to the extent they remain active in the local Republican Party. Three of those most heavily involved have served on the Central Committee – unfortunately, that’s the only election where some of the TEA Party leaders have found success. While many in the area take TEA Party values to heart, they seem to vote for the names they know.

This erosion of the brand is also reflected on a national level. I used to write quite a bit about the TEA Party Patriots and expressed hope that the TEA Party Express would bring some of its star power to the region. In the last few years, though, the national movement has suffered from infighting as well as a concerted media effort to impugn the brand. I don’t hear nearly as much from the group these days, as their function has by and large been superseded by SuperPACs that fight for specific candidates or causes.

If you consider the high point of the TEA Party as the 2010 election, where the political landscape dramatically shifted in a more conservative direction in the wake of two consecutive leftward shifts as well as the adoption of an unpopular Obamacare entitlement program, then the nadir came two years later with Barack Obama’s re-election. A conspiracy theorist could point out that the 2010 election results put the Obama campaign on high alert, meaning they pulled out all the stops to ensure re-election with a little help from a compliant media. But one could counter by noting the movement wasn’t strong enough to topple frontrunner Mitt Romney and they shot themselves in the foot by staying home on Election Day. (As it was, though, Romney did get more votes than John McCain did in 2008.)

So while you can credit TEA Party principles for winning the day in 2014, the actual movement itself seems to be receding to a low tide. Since TEA is an acronym for “taxed enough already” it’s been pointed out by the Left that taxes really aren’t that bad, at least in comparison to the rates in place for administrations from Hoover to Carter. (This is a neat little chart to see the differences.) Ronald Reagan dropped rates twice: from 70% to 50% in 1982 and eventually down to 28% with the Tax Reform Act of 1986. It had been over 50 years since the top rate was less than 50%.

But that only considers income tax. Certainly as a 100-year body of work our current rates are on the low side, but back then we didn’t have the maddening plethora of taxes and fees we do now. Some are consumption-based taxes like sales tax on goods purchased or per gallon of gasoline, while others are considered some sort of “sin” tax like additional levies on cigarettes or alcohol, a combination that Marylanders endure to a larger extent than several of their neighbors. Even speed cameras could be regarded as a sort of “sin” tax, since supposedly the only ones who pay it are the ones who are speeding well above the posted limit. (Try as they might to convince us that it’s about safety, we all know they need the Benjamins. Why else would they have to install cameras in more and more dubious “school zones”?) Nor does that consider property tax, which tends to be the preferred vehicle for raising money for the public schools. In most states where districts have taxing authority, it’s not uncommon to see a school district seek three to four additional property tax levies a decade as they strive to raise funds for buildings and operations. (Maryland is different because counties pay for their portion of school funding from their general funds, so there are no ballot issues to deal with property taxes.) To make a long story short, we still consider ourselves taxed enough already.

As far as a formal movement goes, though, for the most part we are back to where we were around 2008. There is a lot of frustration with the direction of both parties, but this time rather than a movement without a leader people are going the route of a looking for a leader for what they consider their movement – hence, political outsiders Ben Carson and Donald Trump have been ahead of the Republican field for most of this campaign. (As further proof, the other side is still believed to be behind Hillary Clinton.) Carson is cast as the Godly, principled man who would quietly and reverently lead our nation in need of healing, while Trump comes across as the brash general who would kick butt and take names, restoring America to its top of the heap status.

Conversely, those who are conservative but came up through the standard political channels have fallen out of favor this cycle. In any other cycle, we would look at governors like Rick Perry, Scott Walker, or Bobby Jindal as frontrunners – instead, all three are out of the race. In terms of political resumes, the front-runners on both sides have even less to go on than Barack Obama did, and that’s saying something.

So it’s hard to tell where the TEA Party trail runs cold. I think a number of them have coalesced behind Donald Trump despite the fact The Donald is not a movement conservative. One recent rumor is that a Trump/Cruz ticket is in the works, which would perhaps appease the true believers. Trump’s success has belied the predictions of TEA Party leaders that he will be a flash in the pan.

But it appears the days of rallies like 9/12 are behind us. Such a pity.

Some skin in the game

October 9, 2015 · Posted in Campaign 2016 - President, Inside the Beltway, National politics, Politics, State of Conservatism · Comments Off on Some skin in the game 

Even though he won the coveted monoblogue endorsement, I wasn’t really trying to make this an all-Bobby Jindal all the time site. Surely he’s spending hundreds if not thousands of dollars weekly on his own internet presence so Bobby doesn’t really need my help with making and sharing news.

But it seems as of late that Jindal is putting out stuff that’s, well, presidential. He grabbed the bully pulpit with his remarks on cultural decline the other day and now he has come out with a somewhat unique tax plan that makes the point people need to step up and take a little responsibility. Unlike many others in the race, Jindal believes that it’s a “terrible mistake” that nearly half of people pay no federal income tax. Instead, he proposes a modest 2% tax bracket for the lowest wage earners, with many others falling into a 10% bracket and the top bracket paying 25%.

Now that low top rate and the fact everyone pays will obviously get the Democrats and their class-envy allies screaming about tax cuts for the wealthy being paid for by everyone else. My advice to them: shut up. I’m tired of that rhetoric, particularly when we live in a nation where the top income earners pay far more in tax than their share of the overall wealth.

Even better from my perspective is that we’re not shooting for revenue-neutral here. No, this will bring less money to Washington so more stays in your pocket where it belongs. Jindal admits, “the only way to shrink the size and influence of Washington is to starve it.” Or, as I call it: an admirable start.

While this isn’t a substitute for the benefits of a consumption-based tax, Jindal makes an important nod in that direction by allowing tax-free savings accounts with contributions of up to $30,000 per year. If you can’t tax consumption, at least reward savings.

Winning my endorsement came not just because Bobby was well-versed in a conservative manner on the issues, but in large part because these positions are thought out and explained for the benefit of both the average voter and those who are interested in the wonkish side, like me. Compared to the Jindal campaign, too many others have the depth of a cookie sheet.

Finally, I want to play devil’s advocate for a moment. I can almost see the argument about how the states will have to step in and increase their budgetd because the federal government will have to cut out of necessity. This may be true – but wouldn’t you rather fight budgetary battles in Annapolis, Dover, or Sacramento than in Washington? Even after seven years, Jindal spends less money than his predecessor did. We praised Larry Hogan for only raising the budget by one percent, but imagine if he cut it nearly 10%.

We stand at a crossroads in this nation. Many seem to be conceding that our course is now just to do the best we can in hoping our freedom isn’t extinguished in one fell swoop, and seem to be happy with tamping on the brakes as we lurch toward a train wreck of our own making.

I look at things differently. People see Donald Trump as someone who would shake up the status quo, but I question his conservatism on a number of issues. He authored a tax plan which removes over half of taxpayers from the rolls, meaning the takers will always outvote the givers and the incentive to reduce government will be gone. In a nation formed on the principle of limited government, we retreat further and further from the ideal. Sooner or later we will be back where we started since Trump isn’t serious about addressing our runaway spending.

I spoke to my mom the other day, and I reminded her of what Washington is. Years ago we lived in a house where a colony of bees had taken residence under the porch. So my parents put out a piece of cardboard and spread a sticky substance on it – a couple days later it was full of bees. To me, Washington is that piece of cardboard and all that taxpayer money is the sticky stuff the bees flock to. The only differences are that we’re all stuck and we’re all being stung by that mass of bees that have taken up shop inside the Beltway.

It’s long past time to call in a beekeeper to put those worker bees in a more productive place. Bobby Jindal just might be that guy.

The ticket for job creation

October 4, 2015 · Posted in Business and industry, Delmarva items, Maryland Politics, Ohio politics, Politics · Comments Off on The ticket for job creation 

When I wrote my brief little synopsis on Friday regarding manufacturing, I noted in my promotion that it made me think of former gubernatorial (and future State Senate) candidate Ron George, for whom the most appealing part of his campaign was the emphasis on bringing industry back to Maryland.  In response Ron wrote:

Your article is spot on. Note also the companies that are taking their manufacturing jobs out of China and bringing them home to many southern and midwest pro business states. Our Maryland midsize cities need it back.

Governor Larry Hogan needs help by voters in these areas pushing representatives and candidates for low taxes for manufacturing at the state and local level. The increase of the number of new workers paying the payroll tax will itself greatly increase state and local revenues. Keep it up Michael Swartz.

So I decided to revise and extend my remarks. Those of you who have read here awhile probably have a good idea about what I’m going to say, but I do have new readers all the time so a refresher is in order.

I have no doubt that Maryland can compete for businesses large and small once they eliminate the mindset that employers are cash cows to be milked dry for revenue and embrace the thought that their main goal is to be profitable. I definitely show my age and home state bias, but the mantra I grew up with under Ohio Gov. James Rhodes was that “profit is not a dirty word in Ohio” and to get there we wanted people to make things, just as this 1966 advertisement in my hometown newspaper states. Those things Rhodes touted a half-century ago are still valid today for attracting industry – low taxes, financial incentives, a well-trained workforce, and easy transportation. Plus aren’t we the land of pleasant living?

In the first case, Maryland can make a splash at the cost of three cents per dollar of state spending by completely eliminating the corporate tax. Even if it were phased out over a two- or three-year period, the fact that progress is being made should vault Maryland higher on those business-friendliness lists those whose business is to attract business refer to.

As for financial incentives, I’m leery about having the state in the investment business because I don’t believe they should pick winners or losers. At this time, though, they already have the Maryland Venture Fund although it’s geared more toward startups.

Supposedly Maryland has the best educational system in the country, although I’m a little skeptical of that claim based on some of the recent graduates I’ve seen. One thing we need to focus more on, though, is the idea that vocational education can be valued as much as college prep. Maybe Johnny and Susie’s parents think otherwise, but even “A” students sometimes show not all high school students are college material.

But people with the aptitude to run machinery, know how to tinker and fix things, and are good with their hands don’t need a degree from State U to succeed – and oftentimes have the advantage of not being thousands in debt. To be perfectly frank, to succeed in my chosen profession of architecture one should not need a college degree if they are willing to spend several years learning the craft from the bottom up as one of my former employers did. Somehow they have picked up the idea that five to six years of college schooling plus a couple years in an intern development program is the only way to create good architects, and that’s simply not so. This is why money should follow the child, so they can explore the maximum number of educational options out there.

Finally, there’s the aspect of transportation. Maryland is a state in a great location, but in our case on the Eastern Shore we have the lousy luck of a large body of water limiting our ground-based options. We can either go north through a tangle of traffic lights and small towns along U.S. 13 north or go south through a different gauntlet of traffic lights and small towns. Of course, any improvement to that situation requires the assistance of Delaware or Virginia.

Yet the alternative of going west remains with a third Bay Bridge span. Environmentalists can stop reading after this sentence because I will give them a stroke over the next paragraph – just pick it back up two grafs down.

To me, the best place for a third span runs between Dorchester and Calvert counties, southwest of Cambridge along Maryland Route 16. Obviously roadway improvements would need to be made, but imagine the ease it would bring for traveling between Southern Maryland and the Eastern Shore. No longer would it be an arduous three-hour journey to travel perhaps 50 to 60 miles west as the crow flies. Would it go through some environmentally fragile areas? Yes. But I believe the benefits would outweigh the costs.

I know people will complain that bringing industrial development to Maryland in general and the Eastern Shore in particular would ruin the rural lifestyle, but lifestyle is what you make of it. The carrying capacity of the Delmarva Penninsula is probably at least double its population; a number that will increase with advancements in technology. Regardless, we are nowhere near the density of the I-95 corridor and that should remain the case for the foreseeable future.

I’ve often said that if an area doesn’t grow, it dies. I used to use North Dakota as my poster child for this until they got an energy boom and began attracting people seeking work in a lucrative field. While Maryland can get some benefits from doing the same and allowing fracking, perhaps the best way to make their mark is to adopt the old Ohio mantra that profit is indeed not a dirty word and take the bold steps needed to shake its anti-business reputation.

To enjoy the land of pleasant living, you have to be able to make one.

2016 dossier: Taxation

August 18, 2015 · Posted in Business and industry, Campaign 2016 - President, Delmarva items, Inside the Beltway, National politics, Politics, State of Conservatism · Comments Off on 2016 dossier: Taxation 

Coming in next in importance to me as the sixth of my ten pet issues in taxation. This may be the simplest to explain of all the issues because I don’t think there is a candidate among the 17 Republicans who wants to increase them.

However, if you ask me – and since I write this blog and you have read this far I’m going to presume you want my opinion – my preference is for a consumption-based tax like the FairTax. It creates a scenario where we have the most control over how much we pay while encouraging saving and allowing us to take home much more of our paycheck. My second choice, if I had to maintain an income-based tax scheme, would be a flat tax with a low rate and limited deductions. Sure, the tax preparer lobby would scream but they deserve to. It should not take me the better part of a weekend to compile the paperwork and prepare two tax returns, but as it stands now I have to.

As for corporate taxes, I would be amenable to a low rate of perhaps 10 percent. Right now our rate is more than triple that.

So let’s take a look at where candidates stand and how many of 10 points they gather. Alas, none get ten because there’s none talking about the very important step of repealing the Sixteenth Amendment.

If I am reading Rand Paul‘s “Fair and Flat Tax Plan” correctly, it has a relatively low rate for everyone but more importantly eliminates the FICA tax. Practically all working Americans would get a quick raise.

It takes the income-based tax about as far as it can go, but also has a better chance of being accepted by the public.

Total score for Paul – 9.0 of 10.

While he hasn’t really addressed what he would do as President, I’m giving Bobby Jindal high marks for two reasons. One is that, over nearly two terms as governor of Louisiana, he’s been highly resistant to increasing taxes as well as taking a meat ax to the state’s budget. Could he become the second coming of Calvin Coolidge at a federal level?

On the one hand, he was a backer of Rick Perry’s 2012 flat tax plan, but on the other hand he attempted (alas, unsuccessfully) to bring a version of the FairTax to Louisiana. That basically leaves a swing between 9 points and seven so I took the middle course.

Total score for Jindal – 8.0 of 10.

He’s been on record as supporting the FairTax, so Mike Huckabee is at the top of the heap. The only problem is that we don’t know the needed rate. We also don’t know what we will see with corporate tax rates, which may be because they are eliminated with the FairTax.

Unfortunately, Huckabee was criticized for his taxation record in office so I’m reticent to give him a really high score.

Total score for Huckabee – 7.5 of 10.

Combine the support of a Forbesian flat tax with the record of cutting taxes John Kasich has put together and he has a relatively strong case for improving taxation. In Ohio, he proposed an idea to eliminate income taxes for business owners, but make up the revenue through a higher corporate tax, additional sin taxes, and a sales tax increase. Although Art Laffer liked Kasich’s idea, I see it as a sort of Frankenstein hybrid of both income and sales taxes when we need to eliminate one in favor of the other.

Total score for Kasich – 6.0 of 10.

Ben Carson is looking for a tax system which is “fairer, simpler, and more equitable” with a call for “wholesale tax reform.” His idea is loosely based on Biblical tithing, which is generally considered a 10 percent tax; however, he conceded that the rate may have to start higher and work down over time to stay revenue-neutral. He’s also alluded to reducing the corporate tax rate, although it may not drop to 10% either.

The idea of eliminating the progressive tax has merit, though. It just may prove politically difficult to weather all the harpies who think their tax breaks are too important to eliminate – that should be a circus worth watching. The next step for Carson is learning that revenue-neutral is not necessarily what we need because government is not God.

Total score for Carson – 5.5 of 10.

“I will abolish the IRS,” says Ted Cruz. At one point, he was going to do it with the FairTax but more recently he’s lowered his sights to a flat tax with a few popular deductions, such as charitable contributions and the mortgage interest deduction. We don’t know just what rate Cruz is proposing for individuals, but he is on record that a 15% corporate tax rate would be acceptable.

I’m a little disappointed that he backed away from the FairTax for political expedience, for true leadership would bring people around to the merits of the issue.

Total score for Cruz – 5.5 of 10.

More or less, the one platform plank that Jim Gilmore has shared so far is the Growth Code, a plan to reduce individual taxes to three brackets of 10 to 25 percent while eliminating taxes on capital gains and other investment income. He would also reduce corporate taxes to 15%. It’s a good start, but I would like to see an end to progressive taxes altogether.

Total score for Gilmore – 5.0 of 10.

Much like others in this portion of this summary, Marco Rubio has a simpler two-bracket system he first unveiled last year with Senator Mike Lee of Utah. Since then the brackets have been firmed at 15 and 25 percent, with a 25% corporate tax. The rates fall between Gilmore’s and Perry’s, so Rubio’s score will, too.

Total score for Rubio – 4.9 of 10.

Rick Perry hasn’t revised his 2012 tax plan yet. It was a plan that gave people the option to pay a 20% flat tax on a specific year’s return or stay with the old system, which would eventually be phased out. He would also reduce corporate taxes to 20% as well.

Although the plan was endorsed by Bobby Jindal at the time, Bobby moved on in the correct direction. Until I find out otherwise, I have to assume this is the Perry plan and it’s just average.

Total score for Perry – 4.8 of 10.

I’ve been waiting for Rick Santorum to reveal his economic plan for weeks. Supposedly it will be reflective of the one from his 2012 campaign, which is fairly similar to those other hopefuls in the 4-to-5 point range. While rates may change, though, I don’t think the complexity goes away. So we work back to square one.

Total score for Santorum – 4.6 of 10.

On his website, Chris Christie keeps it simple, calling for “creating a flatter, fairer, and simpler individual income tax system and keep returns simpler by reducing deductions and giveaways.” He also advocates for a 25% corporate tax rate, which is an improvement to about average among industrialized nations.

Listen, anything to help can be considered a victory but those from this point down the candidates either just tinker around the edges or even make things worse.

Total score for Christie – 4.5 of 10.

He cut taxes in Wisconsin, but Scott Walker only wants to turn the clock back to the 1980s, expressing an interest in reviving the tax reforms Ronald Reagan put in place. This is all well and good, but to be honest we aren’t all that far off where Reagan was in comparison to where we were when he took over for Jimmy Carter. So it’s not all that impressive to me in a crowded field.

Total score for Walker – 4.2 of 10.

In his announcement speech, Jeb Bush alluded to creating “a vastly simpler system” with fewer rates. But some complain that Bush was no longer willing to participate in a “grand bargain” to reduce the deficit by taking a small tax increase for supposed cuts. (If only his dad had ignored that siren song, Hillary Rodham would be an activist lawyer for some far left-wing group and Bill Clinton would be another in a long line of Democratic presidential losers free to cat around at will.)

At any rate, his vagueness on the subject bothers me so he doesn’t score all that well.

Total score for Bush – 4.0 of 10.

Lindsey Graham is all over the map. He’s been for a flat tax, which would qualify for the “simpler” scheme he seeks if not the “fairer” that leftist critics who love the current super-progressive system don’t want. Lindsey also advocates for lower corporate tax rates.

But he falls victim to the same mentality plaguing Jeb Bush, thinking Democrats would actually cut spending if he raised taxes – even, as he clains, it would only be certain deductions. That’s just the start of hard-working Americans being rolled anew.

Total score for Graham – 3.5 of 10.

I’m looking forward to how Donald Trump puts H&R Block out of business. Until then, I can’t give him a good score.

Total score for Trump – 2.0 of 10.

George Pataki favors scrapping the tax code, but who among this group doesn’t? Described as a governor who started out as a serious fiscal conservative, he devolved into just another big spender by the end. What worries me, though, is that he’s considering raising corporate tax rates to pay for infrastructure. That’s a guaranteed job killer.

Total score for Pataki – 1.0 of 10.

Carly Fiorina wants a “transparent and fair” tax code and released a lot of returns to make her point. But that’s it. This makes it hard to take her seriously.

Total score for Fiorina – 0.5 of 10.

Postscript 9/26: Since Fiorina has since advocated for a simpler system that reduces revenue, I’m adding 1.5 points to her score. She should at least match Trump here.

Next on the docket, for eleven valuable points, is immigration. That may provide some sharp differences.

Is the Hogan business mojo wearing off?

It’s only one survey of 280 small (perhaps micro-scale) businesses in Maryland, but a recent poll conducted by a company which should be familiar to regular readers calls into question the effectiveness of Larry Hogan’s efforts at improvement in Maryland’s business climate in his first few months in office.

In cooperation with the Kauffman Foundation, Thumbtack.com has done annual, quarterly, and now monthly surveys of small business sentiment around the country. (I’ve written about their surveys on business friendliness in the past.) While it comes in a more graphical form than I can readily share here, some items I gleaned from the most recent Maryland and national data follow:

  • In terms of revenue and overall financial outlooks, Maryland businesses are less positive than the rest of the nation in the former and fall right at the national mean for the latter. The good news, though, is that over 70% of these businesses have a positive outlook over the next quarter.
  • Less than half, however, rate their financial situation as “very good” or “somewhat good.” Maryland’s total is 45.9% compared to 48.1% nationwide.
  • Maryland businesses are more pessimistic about profitability than their national peers; still, over 60% think they will do better. On the other hand, their perception on business conditions is actually better than the national average – 53.4% in Maryland think they will be better in three months’ time, while only 51.9% nationally share that outlook.
  • Finally, 24% of Maryland micro-businesses anticipate hiring over the next three months, while just 22.1% do nationwide. But while only 2.1% of businesses nationwide thought they would need to furlough workers, that percentage was 2.5% in Maryland.

As I noted above, this data was compiled at different intervals. Until March, this was done as a quarterly survey; now it is monthly. But one asset of this approach is that I can go back to the beginning of the year, and in their release accompanying the information Thumbtack.com noted:

In June, respondents nationwide indicated reduced optimism about the economy for the third month in a row, though sentiment about current and future conditions continues to be higher than that reported one year ago.

Key findings for Maryland include:

  • Maryland small businesses reported a sharp decline across each of the metrics tracked by Thumbtack, with the strongest declines coming in their expectations about future financial conditions and the economy.
  • Maryland experienced one of the largest overall business sentiment declines in the country in June; the state is now below the regional and national averages for small-business sentiment and ranks 30th overall nationwide.
  • Sentiment is still higher than it was one year ago, reflecting a broad-based increase in perceptions of economic conditions by small businesses across the country.
  • For the second month in a row, small businesses nationally expressed increasing pessimism about future economic conditions, which have been the largest contributors to the decline in overall sentiment.

Thus, it sounds like Maryland is reflective of a national trend.

But it’s also worth noting that the 2015Q1 survey showed broadly higher numbers across the board – revenue outlook has declined 10.9 points, financial outlook 5.2 points, profitability 11 points, and business conditions 8 points.

In addition, those who thought they may be hiring declined from 26% to 24.1%. Only the respondents’ assessment of their financial condition stayed relatively unchanged, declining just 1/10 of a point.

Unfortunately, these were the types of numbers we came to expect in the O’Malley administration. Obviously Hogan apologists would argue that their guy has been in office less than six months and it takes time to turn the ship of state around. And they would be correct, as the Augustine Commission agenda sailed through the General Assembly with its effective date in October.

Yet to me much of that was a simple rearrangement of deck chairs on the Titanic. While we can’t do a whole lot about the national economic climate, one thing Maryland could have done was allow these entrepreneurs to keep a little more of their money by reducing personal income tax rates; meanwhile, they could accommodate the entire elimination of corporate taxes with modest budget cuts of 3% or less. (The corporate tax brings in just over $1 billion of a $40 billion budget.) This would encourage larger businesses to consider Maryland for their growth and create more spinoff work for these micro-businesses.

Think of it this way under my scenario – Justin relocates from New York to work at the new Maryland corporate headquarters of XYZ Company, which was attracted here by the zero corporate tax rate as well as the other benefits Maryland brings. He needs a guy to fix his laptop, someone to watch the kids while Justin and Mrs. Justin are at work, and so on and so forth. Imagine what 250 Justins can do for a community and how many extra jobs they create. (I’m sure someone somewhere has done a study on this but today I’ll work without a net.)

The point is that addressing regulation and red tape is great, but the financial incentive has to be there as well. Among states with flat corporate tax rates, Maryland ranks among the highest. On a personal income level, Maryland’s rates appear to be a little better but that doesn’t add in the local county tax. (Granted, other states may also have the same practice.)

Let’s just say this: with an agenda that includes financial incentives as well as some cooperation from thoughtful Democrats in the Maryland General Assembly, by this time next year we can have a far more optimistic business community and in a few months after that they can better enjoy the results of hard work because the state takes a smaller cut.

A toast to our neighboring states

May 29, 2015 · Posted in All politics is local, Business and industry, Delmarva items, Maryland Politics, National politics, Politics, State of Conservatism · Comments Off on A toast to our neighboring states 

Summer has arrived – the kids are out of school (in some cases, like ours), the weather is warm enough to fire up the grill on the deck, and people are hitting the beach in droves. And it’s the weekend to boot. In many cases such as this, the setting is not complete without a cold one by your side.

So my interest was piqued by a piece in the Daily Signal asking how high the beer taxes are in our state. When it comes to high taxes, Maryland is generally right near the top and the data from the Tax Foundation found beer taxes in Maryland, expressed in their cost per gallon, are no exception – they rank among the highest in the nation.

But there were two surprises in the data. First is that states in the Deep South, which generally have the reputation as low-tax bastions, have the highest beer taxes int the country. I suspect this is a hangover (see what I did there?) from their days as the Bible Belt. While Maryland is 9th in the country, they are well outside the top 8 and the top four (Tennessee, Alaska, Alabama, and Georgia) have rates at least double Maryland’s 49 cent-per-gallon toll.

Second, though, is the large disparity between Maryland and its surrounding states, which rank no higher than 24th (Virginia.) A beer in Pennsylvania costs 41 cents per gallon less in taxes, as their 8-cent rate is tied for the sixth-lowest in the nation. (Wyoming drinkers only pay 2 cents per gallon in tax.)

Maryland may make a little more money soon, because recently two local breweries (and perhaps others yet to be created) were the beneficiaries of a bill signed into law by Governor Hogan at the behest of the Wicomico County delegation. Dubbed the “Evo Bill,” it allows Wicomico County brew pubs to create more product with their current licensing structure. This is good, but only slightly dampens the effect of a increased alcohol tax that took effect under Governor O’Malley.

So now that Larry Hogan has rolled back tolls, maybe it’s time for him to give more assistance to a fledgling industry by removing the additional 3% sales tax on alcohol. Remember, we exist next to a state which has no sales tax so we’re now at a 9% disadvantage to our neighbors to the north.

Swerving toward a hard truth

April 14, 2015 · Posted in Business and industry, National politics, Politics, State of Conservatism · Comments Off on Swerving toward a hard truth 

Each week I read Dan Bongino’s commentary at Conservative Review, normally nodding my head in agreement to the point being made. This week’s is no exception, but the title of the piece led me to believe he was swerving into a point I have made for years. He began moving in the right direction when he wrote:

As small business owners, my wife and I do not have income taxes withheld from the money we earn. As many small business owners do, we have to periodically write checks to the state and federal governments for taxes owed. I mailed these tax payments this past week and, while writing out the checks and observing the amounts, I couldn’t believe how much money I had to pay to finance this out-of-control government. I cannot be the only one writing these substantial checks who feels this way.

Later in the piece he adds:

Income tax withholding has softened us. Many of us no longer have to go through the motions of actually picking up a pen and writing out a check to the government to pay our individual tax bills. We all owe it to ourselves to look at the amounts we are paying and to ask ourselves why we aren’t demanding better.

As far as that goes, I couldn’t agree more. But several years ago I penned a series of pieces which eventually became the kernel of a book I wrote. One of them dealt with taxation, and it was written about a year before we had the unsuccessful attempts to “stimulate” the economy through tax rebate checks. At that time I noted:

All right, so I get an $800 check. The feds want me to buy something in the hopes of goosing the economy. But a lot of people who are behind on their mortgage bills and credit cards will simply send that cash along to whomever they owe, which will help bail the banks and creditors out. It’s a similar argument to the one over the subprime mortgage bailout, which helps the creditors but doesn’t teach those who weren’t of enough sense to borrow within their means that they should consider their options more carefully.

And why is it that the federal government now reflexively hands out taxpayer money when the chips are down? They seem to have become the insurer of last resort for America.

If you really want to put money in the pockets of Americans right now, I have another suggestion for a short-term fix. How about suspending backup withholding for a few months? Since most Americans have their tax lives set up to get a hefty refund and “screw” the government (who’s actually screwing these people by receiving an interest-free loan from them) all that would do is make their eventual refund a little smaller. Furthermore, maybe if people actually had to write a check for the full amount due they’d understand just how much of a bite we all have taken from us.

So a little over seven years ago, before anyone outside the circle of the Secret Service had ever heard of Dan Bongino, I was on this track of discarding backup withholding. The onus should be on the government to collect rather than the taxpayer to get back what is rightfully theirs because it’s our money. On the whole, I still think dispensing with backup withholding is a wonderful idea short of adopting a national consumption tax like the FairTax (after the repeal of the Sixteenth Amendment, of course.)

Still, this is a good indication of how much Dan Bongino “gets it.” Whether he decides to run for Congress again, the Senate again, or waits until 2018 to pursue a state office, it’s clear he has a clear understanding of how the economy should work.

Hoping to win a GOP Cruz in 2016

March 25, 2015 · Posted in Campaign 2016 - President, National politics, Politics, State of Conservatism · Comments Off on Hoping to win a GOP Cruz in 2016 

Ted Cruz 2016As most who do not inhabit the space under a rock now know, Texas Senator Ted Cruz formally announced his candidacy for President on Monday. While he Tweeted the news just after midnight, the formal announcement came in an address at Liberty University later that day.

Perhaps the best part about the announcement, though, is the absolute conniption fit those on the Left had at the news. First I heard from the so-called “factivists” at the Democratic National Committee:

President Ted Cruz.

If you’re like us, Michael, just reading that phrase probably sent shivers down your spine or produced a pretty serious roll of the eyes.

But as of this moment, Texas Senator Ted Cruz is officially running for president, and if we don’t do everything in our power to stop him, the possibility of President Ted Cruz could become a reality.

So here are three things everyone needs to know about wannabe President Ted Cruz:

  • He led the GOP’s government shutdown, costing the economy a staggering $24 billion, as part of a personal crusade to take away quality health care from millions of Americans and give control back to the insurance companies.
  • He has obstructed everything from raising the minimum wage to paycheck fairness to immigration reform.
  • He would give corporations and the richest Americans huge tax breaks, at the expense of working Americans.

Interesting how these “factivists” don’t know the real facts. And by the way, I don’t have too much of a problem with a President Ted Cruz. My eye roll is at your abject ignorance.

The government “shutdown” of 2013 (which was really a slowdown because essential employees still had to work) only “cost” $24 billion according to an estimate by Standard & Poor’s. Supposedly it was the amount taken out of the economy. But some believe that was a dubious estimate because it didn’t account for shifts in productivity. It was a gamble, where the payoff could have been a savings of $1.4 trillion over 10 years by the repeal of the ill-advised Affordable Care Act.

As for the second portion of that statement, the real question is whether we were in better shape when an insurance company “controlled” your health care or whether some far-off bureaucrat controls it. The real goal is patient control and I suspect Cruz would work us back in that direction more quickly, vowing in his address to Liberty University to make “health insurance personal and portable and affordable.” That’s just SO scary.

Secondly, it seems to me the people of Texas sent Cruz to the Senate for the very reason of obstructing the list of items these political “hacktivists” would like to foist upon us. Raising the minimum wage is a proven job-killer, the Obama administration needs to look in the mirror when complaining about “paycheck fairness” and immigration reform needs to begin with securing the borders.

And of course, whenever someone talks about simplifying the income tax system it’s always portrayed by Democrats as tax cuts for the rich. Why shouldn’t our tax form be only a page or two?

Of course, then the other liberal outlets delivered their usual amount of snark, calling his speech a revival of obsolete evangelism, reminiscent of televangelists, or sniffing that students were forced to attend. All that obscures the real point: Cruz laid out a very conservative agenda on a number of issues, and it will take a strong dose of common sense to undo the damage of the last six years.

I don’t think it’s coincidental that I have written this piece and found that my colleague Cathy Keim had her own thoughts. This quick take is tonight’s dose of Cruz, and tomorrow morning you’ll get to see what she has to say. It will be worth the wait, I promise.

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