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A Hot Cup of TEA

Recently, the TEA Party movement celebrated its first anniversary. At first the TEA (Taxed Enough Already) Party activists were dismissed as a few grumpy right-wingers upset that America elected a black president. They were given little credence beyond being an amusing political side show. That soon changed. On April 15th hundreds of thousands of average Americans showed up at protest rallies across the nation, outraged at the “stimulus” package of goodies doled out to special interests, liberal activism organizations and Democrat pet projects. CNN reported that a few thousand people showed up at the rally in Atlanta, but I was there and can assure you that it was close to ten-fold that amount. It was shoulder-to-shoulder for about four blocks in one direction, not counting the people on the side streets.

Once they could no longer be dismissed as a fringe element, TEA Party activists were labeled as “Astro-turf” (fake grass roots), accused of being flunkies of Big Corporate America, mindlessly doing the bidding of their masters. They were accused of being a fabrication of FOX News and the Republican Party. They were accused of being everything except what they are…average Americans, generally with traditional conservative values, who were fed up over 20 years of Bush-Clinton-Bush politics, two political parties who paid only lip service to the people they claimed to serve while engaging in a bacchanalian orgy of political perks, who had finally been pushed over the edge by a pork-laden spending bill of almost $800 billion. They were saying “Enough is enough!”, and they were going to make their voices be heard.

Obama’s health care proposal increases taxes on middle class

As you probably know, President Barack Obama released his health care proposal yesterday (you can read it here), outlining what he sees as “reform,” in attempt to bridge the divide between the House and Senate versions of the bill:

The White House today unveiled President Obama’s health care overhaul bill, which it says will expand health insurance to 31 million more Americans and reduce the federal budget deficit by $100 billion in the next 10 years.

The White House also released the changes Obama wants to see in the Senate Democratic health care bill. Even before its release, the White House’s plan had already met with fierce Republican resistance.
[…]
Administration officials call the health care bill a “starting point” point for Thursday’s televised, bipartisan discussions on health care overhaul.

“I think it’s a starting point in as much… as Republicans come to Thursday’s meeting with constructive proposals that they’re willing to discuss,” White House Press Secretary Robert Gibbs said today.

Obama made sure to pander to his constituencies, such as labors unions, and while the Cornhusker Kickback is gone, other vote buying provisions, such as the Louisiana Purchase and the Medicaid provision for Florida, are still included in the proposal.

Flatline ObamaCare

Interestingly, government intervention in the 1960s introduced a third party (insurance co/HMO/PPO, etc) into the one-on-one relationship between doctor and patient. Prior to that, people paid premiums for medical insurance policies designed to cover catastrophic medical events like cancer, serious accidents and the like, NOT for physicals, check ups or routine visits. Instead, the DOCTOR and the PATIENT negotiated a rate for services based on the patient’s ability to pay on an individual case by case basis. The introduction of a third party shorts the doctor AND raises the costs for the the patient, as the third party must also be paid. Yes, health costs have soared, but further government intervention - especially a government takeover of a free market healthcare system - is NOT the answer.

Happy Birthday Federal Income Tax

Yes, it was indeed 100 years ago yesterday that the House passed a resolution to send the 16th Amendment to the states for ratification, thereby establishing the federal income tax.

Since then, teenage socialists everywhere quickly realized the sins of their ways the day they received their first paycheck….or, the percentage they were allowed to take home at least.  (Oh, I’m sorry, did you think you were getting the full amount?)

The tax system in the United States is terribly complicated, and when all of the rules, regulations and instructions are written out, it fills more than 70,000 pages. The darn thing is so confusing that Americans spend about $300 billion per year to hire professionals to pay their taxes for them.

Dissent is Not Unhealthy, It’s Patriotic

Dissent is “unhealthy”:

A top adviser to President Barack Obama takes a dim view of last week’s anti-tax “tea parties,” promoted by organizers in the spirit of the Boston Tea Party.

“The thing that bewilders me is this president just cut taxes for 95 percent of the American people. So I think the tea bags should be directed elsewhere because he certainly understands the burden that people face,” David Axelrod said Sunday.

The rallies coincided with the deadline to file income taxes, and gave people a chance also to voice frustrations about government spending and corporate bailouts.
[…]
Axelrod was asked on CBS’ “Face the Nation” for his opinion on what the show’s host described as “this spreading and very public disaffection with not only the government, but especially the Obama administration.”

MIAC Report: Ron Paul Supporters Labeled Domestic Terrorists?

Ron PaulThe general rule for me is if Alex Jones says it, don’t take it seriously. And that’s what I said on Thursday to several friends that e-mailed me a link to a story about how the Missouri Information Analysis Center (MIAC) basically correlates libertarians and more specifically supporters of Ron Paul, Bob Barr and Chuck Baldwin, with potentially being a domestic terrorist or member of a militia.

Cutting Taxes = Increasing Revenue

Around 150 BC, Emperor Ching Ti came to power in China and immediately faced a major problem: his treasury was empty.

Taxes were very high, but no real revenue was coming in. That’s because the system of taxes at that time was an early form of income tax that centered on the government taking a large percentage of a farmer’s crops.

So Ching Ti did something bold and innovative: he cut taxes.

Overnight, taxes went from over 50% down to about 3%. Farmers, who had fled to the hills to escape draconian tax rates, now came home and began farming again. To make a long story short, Ching Ti’s greatest problem while governing was trying to keep all the grain in his barns from spoiling.

It seems that ancient Chinese history is good for more than just cutesy script on a fortune cookie.

Why Do You Pay Taxes?

As various tax-related mail begins to appear in the mailboxes of hardworking Americans across the country, it’s instructive for all of us to reflect on why we carry the burden of our government every April.

Take this morning, for instance. We can credit the “ingenuity of the markets”, and specifically the ingenuity of John Thain, for moving annual executive bonus payments by Merrill Lynch up by a month last November, thus disbursing $15 billion in executive bonuses just before closing Merrill’s acquisition by Bank of America. Fast forward a few months, and the United States taxpayer just gave Bank of America another $20 billion in newly-borrowed funds to put a band-aid on mortar wounds in Merrill Lynch’s balance sheet.

The U.S. and Russia Compete Again

Apparently, there’s not much difference between the way in which a democratic republic (the United States) and an oligarchy (Russia) handle “economic crisis”. According to an article in The Moscow Times:

Former Soviet leader Mikhail Gorbachev accused the government on Friday of bailing out billionaires at taxpayers’ expense in a letter co-signed by four businessmen and economists.

Gorbachev has until now been supportive of the Kremlin, and by speaking out he has joined a small but growing chorus of influential Russians who say the government’s tight control of the economy and politics is making the slowdown worse.

“The Russian authorities have turned their back on structural reform and instead satisfied themselves with inventing a mythical model of an ‘energy superpower,’” said an open letter whose signatories included Gorbachev.

Is NPR Worth the Cost?

Throughout the country, every large town over 100,000 people seems to have a common element: a local branch of National Public Radio. In all, the partially publicly funded organization has 797 public radio stations that it syndicates to.

Public broadcasting has a place in Western society. Canada, the United Kingdom and Australia all boast creative and new publicly backed media enterprises. In the United Kingdom, the BBC provides all sorts of great programming, from adaptations of Jane Austen novels to modern day radio drama. Unlike its counterparts, however, it’s questionable whether NPR is providing much groundbreaking or innovative.

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