Saturday, September 26, 2009

which is better - a national sales tax or VAT??

This is an interesting news bit.

Former Chief of Staff to President Clinton, John Podesta, favors the use of a national value-added tax. A Value-Added Tax - VAT - is a tax that is applied to a product throughout its production. A car would have taxes added to it throughout the production process, such as the construction of sub-parts and parts to an engine, the transmission, frame, etc. would all be taxedd and then added to the price of the vehicle. Then the car would most likely also be charged a sales tax and possibly a luxury tax. The problem with VAT is that it becomes part of the cost of production, significantly raising the final retail price.

A VAT tax would not be so bad if all other taxes were eliminated. If they were, it would become somewhat similar to the concept of the Fair Tax. Thus only the consumer would be charged for the consumption of a manufactured item. Of course, the problem is that all of the taxes are hidden into the production costs and the consumer would never really know the actual cost of the product minus the added taxes.

In contrast, the FAIR Tax does eliminate ALL taxes - sales, income, property, etc. - and just charges a sales tax. The consumer has better information regarding the actual production cost of the product. The consumer pays taxes for only what he/she consumes. Purchasers of luxury items like motor homes, yachts, or SUV's would not be perceived as bad people owning expensive stuff. If you want to pay the sales tax on an item, so be it. Go to their web site for a better explanation. But it is a much better and fairer tax.

The problem with Mr. Podesta's suggestion is that the VAT would be in ADDITION to sales taxes. He advocates this to increase more federal government revenue. What this will obviously do is hurt the national economy by discouraging purchasing and result in reduced need of labor - higher unemployment.

He justifies his position saying that Clinton raised taxes on the rich in the 1990's and it resulted in large increases in revenues while also growing the national economy. That is FALSE! Clinton happened to be the beneficiary of circumstances, namely the explosion of the era of technology. Home computers, the internet, and the overvaluation of technology companies during this decade. Once some intenet-based companies died or were bought out by other companies, the economy came back to reality.

Don't buy into VAT. It will do as much to destroy the economy as cap and trade and health care reform.

Friday, September 25, 2009

compare the protesters

It is quite humorous to see what is happening in Pittsburgh this week. Aside from the official events planned for the G-20 Summit, watching the planned protests and police response is very interesting. The city has been boarded up, fenced up, and locked down to control or limit the activities of protestors of the event.


The fear is that violence – whether planned or spontaneous – may spawn destruction or threaten the safety of the summit participants. The ACLU is there defend protester rights. Watch the videos and observe the number of law enforcement officers in the scene and the force they have available to maintain peace.



Now compare that to the march on DC back on 9/12. Protesters everywhere. Hundreds of thousands of participants. Yet, in all of the videos and photos how many police officers were present and how much firepower did they have available? What about all of the tea parties and health care protests around the country? What was the level of police presence? Significantly lower than that in Pittsburgh.

Yet the liberals in control of Congress are more fearful and willing to label conservative protesters as more dangerous to the peace of our country. They say blood will flow in the streets. It takes the Speaker back to the violence of the 1970’s.

I attended a tea party in Fort Wayne, Indiana earlier this year. Hundreds of participants, yet I did not see any police presence. I heard some were there, yet invisible. But this is very demonstrative of the expected behavior of protesters by the police. They don’t fear the conservatives. They are peaceful, yet vocal. They just want to live in peace, trusting that the government will protect them from enemies of that peace, both foreign and domestic.

This is objective proof that conservatives are not the people that the government needs to fear.

Sunday, September 13, 2009

Pride in the American economy

Recently, I finished reading the book The Last Best Hope, by Joe Scarborough. Joe was formerly a Republican Congressman from Florida elected as a part of the 1994 wave. He has since left Congress and is now host of the weekday morning show, “Joe in the Morning” on MSNBC cable network. Actually, I like his TV show. He does have a lot of liberal guests on the show, but some of the other regulars do have some centrist or conservative leanings. I do wish Joe would exhibit more conservative perspective. He has spent as much time criticizing Republican policies as he does Democrats’. Given the amount of liberal commentators on television today, every defender of conservatism is needed.

Anyway, back to his book. Generally, it is good. It does take Republicans to task in their need to be the true conservatives they need to be and that America wants. He also points out where common sense should prevail over politicization of an issue. He truly sounds like the conservative I could have a beer with (oh, that’s right, I don’t drink beer).

There is one topic in his book that I do take issue with. He is very critical in the amount of energy America consumes. We consume “a disproportionate amount of the earth’s energy” (p. 101). He favors energy efficiency. While I favor increase in efficiency, there is nothing wrong with the amount of energy we have consumed.

U.S. energy has powered the American economic engine. That engine has created a large amount of wealth, not only for Americans, but also for the rest of the world. It is through our largesse that has been shared worldwide. Annually, the U.S. government sends millions of dollars to foreign governments in the form of aid. We send more emergency relief to disasters than any other nation. Our technology has improved living standards everywhere. Yes, the US of A is great!

We can always improve, but we have no reason to apologize for what our economy has done to improve the lives of people everywhere.

Saturday, September 5, 2009

Another federal government spending topic

There is an excellent interview article in the Sept.5 issue of the Wall Street Journal by John Fund of former GAO head David Walker.

The small facts that are included in the article but not given much discussion involves the future obligations of Social Security and Medicare. To the tune of more than $56 TRILLION. Forget health care reform and its mind-boggling future expenses. The government debt is already here and growing faster than we can imagine. (See the spinning numbers of the U.S. debt clock).

The President's desire to reform health care is not about helping people. It's about gaining control of more private money to pay for future federal obligations. This is a shell game. Rob Peter to pay Paul. Dedicated funds for specific projects - don't exist. Well, the line item in the budget exists, but the funds are nothing more than federal IOU's because the money has been raided and used for something else.

To a quote a famous personality, Earl Pitts - "Wake up America!"

The justification of government to further gets its nose under the tent of health reform can't be proven, because it hasn't been able to prudently manage the current programs. Suddenly it can do better!?!?! Get real!

Liberals chide conservatives that the richest nation in the world can't afford to provide basic health care to all of its citizes. Liberals will soon have to face major, major, MAJOR reductions in federal spending. What choices can or will they make?

Thursday, September 3, 2009

Find the good in America

I've written about Keith Olbermann before. What a ranting, crazy liberal loon. (Is that all reduntant?) I watch him occassionally on MSNBC in the evening, but for only a few minutes at time. I really can't handle too much at once.

He has a spot each night on his show itemizing the 3 worst people for the day. Usually he lists Glenn Beck and Rush Limbaugh somewhere in those 3 every day.

What amazes me is his daily pursuit of finding what is wrong with America. Maybe this is what is wrong with America - the fixation on what's wrong. Maybe if Olbermann found the 3 BEST people of the day every day he may actually see his ratings increase.

We need more inspirational stories every day. We need motivation that is positive. I challenge every reader here to find and share the person's story around you.

Let's share that America really is full of really good people.