When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676

They call it Tax Reform. A Jobs Bill. That’s what it must be, right? Journalists and commentators are playing the same old game. Argue a proposed piece of legislation on its merits. Time to reset the boundaries in When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

Freedom Of Choice

While listeners to The Bob Davis Podcasts always have the freedom to choose what they think is right, I want to introduce the concept of marginal improvement. Legislators on both sides of the political spectrum talk big about ‘reform’. Usually though they make what really are marginal changes. This is especially relevant when we’re talking about the tax code.

The Real Football Game Is Congress

Team Red moves the ball back to the Blue thirty yard line. It’s hailed as a great victory. Team Blue moves the ball back to the Red twenty yard line a few years later. These are what both sides call marginal improvements. Meanwhile, as economist Milton Friedman famously suggested, they keep getting elected by making the tax code more complicated.

Budget Neutrality Isn’t A Thing

Enter a legislative concept called Budget Neutrality. The idea every expenditure must be ‘paid for’ with tax increases, or budget cuts. You think Tax Reform means lower taxes. What they’re really doing is taking away tax deductions and loop holes, and increasing our overall tax. The sad part is, it’s not their money, it’s our money. In When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

What Is Real Reform?

If you want real reform. The end to this kind of corruption? Then the power of the federal government to tax our incomes and our property must be permanently eliminated. Should corporations be taxed at all? Do you have property rights if you pay property taxes? How does government pay for the wonderful things both sides wants it to provide? We talk about it in When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676.

Already Socialists

So called conservatives like to argue the merits of capitalism versus socialism. It seems like I’d be on pretty safe ground if I suggested the United States has been collectivist for decades. Our economic system is not so much capitalist as it is a controlled market economy. Our elected Kings and their privy courts control our behavior and our futures with regulation and a tax code so complex, were it to be proposed as a single law in its present form, it would cause a revolution.

(Editor’s Note: While the first actual income tax in the United States was levied during the Civil War, it was later repealed as ‘unconstitutional’. Several attempts were made to establish an income tax through the late 1800’s which were unsuccessful, until the 16th amendment, ratified in 1913.)

Sponsored by Ryan Plumbing and Heating of Saint Paul and Reliafund

When Tax Reform Isn’t-What Congress Giveth It Taketh Away-Podcast 676

Has United States Been Socialist For A Long Time? Podcast 625

We hear a lot of words used to describe various political factions in the US. Most will say the US economic system is capitalist but is this just an illusion? Are we socialist? Have we been socialist for a long time? It seems to me, we have. In Has United States Been Socialist For A Long Time? Podcast 625.

Socialism Is Everywhere

Just because a country’s economic system is socialist, does not mean it’s a tyranny. Denmark and Canada aren’t dictatorships. Singapore is a Socialist Market Economy. Places where ‘the people’ own or control the means of production. Most socialist countries these days enjoy democratic political systems.

Government and Non Profits Dominate State Economies

Americans think of themselves as capitalists. The thing is, the top three employers in my state are public institutions. Americans depend on social security, medicare, or medicaid ‘entitlements’. Home buyers get tax subsidies. We enjoy many tax deferred investment options. Farmers get subsidies. Public workers get pensions. All kinds of grants for education exist. Then there are the business subsidies and government contracts. Some popular business personalities receive billions in subsidies from the government. We’ll talk about it in Has United States Been Socialist For A Long Time? Podcast 625.

Both Parties Support Socialism

Democrats complain about light rail projects running through their backyards, but support government programs because ‘It’s the right thing to do’. Republicans complain about big government unless it’s the military, support for their businesses, home mortgage tax credit, social security and 401K programs.

The Right Thing To Do

It’s true that many of these programs date back to the depression in the 1930’s. Also true that creation of these programs came with the best intentions. Whether we like it or not, government is deeply involved in our lives. Of course, what the government giveth, the government takeaway. We’ll talk about it in Has United States Been Socialist For A Long Time? Podcast 625.

Classic Liberalism Is Forgotten

Republicans and Democrats argue the same side of the coin. Both are collectivists. Neither adhere to Classic Liberalism, a philosophy of limited government with the sole purpose of securing a maximum amount of individual liberty, property rights and free markets. While no political scientist would argue the US is Socialist maybe we should consider the possibility we are and have been for some time.

Sponsored by Ryan Plumbing and Heating of Saint Paul and X Government Cars

Has United States Been Socialist For A Long Time? Podcast 625

 

 

 

 

 

 

Podcast 521

Stormy Weather. In a surprise only to ‘conservatives’ who listen only to ‘conservative’ talk show hosts, watch ‘conservative’ TV shows and go to conservative websites, the FBI decided not to recommend criminal prosecution of former Secretary of State Hillary Clinton over her use of a personal email server while she was in the Obama Administration. Why? The short answer is, intent is a key consideration in cases like these. The long answer is, Mrs. Clinton played her ‘Benghazi Card’ better known as ‘If I go down, you go down’ and she got action from the administration. At least that’s one possible explanation. In the past few days President Obama suddenly closed ranks with the Clintons (despite all the rumors of the rancor between the Obamas and the Clintons). Attorney General Loretta Lynch had a now famous ‘tarmac meeting’ with former president Bill Clinton and President Obama allowed Hillary Clinton to ride Air Force One with him to a campaign event, where they walked, hand in hand, down the steps. “If I go down, YOU go down”. Now it’s a matter of politics. He said, she said. He said she’s a crook. She said he’s an anti semite. Congress releases a damning report on the administration’s conduct regarding ‘Benghazi’…Democrats say it is a partisan document. Republicans say it’s the ‘truth’ about Mrs Clinton and her boss, President Obama. “If I go down, YOU go down.” More fodder for the campaign trail. They were asleep and the switch, says one side. They’re partisan dividers, says the other side. Meanwhile the world’s leading economies are drowning in a sea of paper money and deficit spending, and economies are faltering. Do you really think this election is going to fix anything? We live in interesting times, with the great potential of a new technical industrial revolution and all that portends, and a personal challenge to change the way we think and how we work, and what we demand of our political institutions. Too bad our sclerotic politics delivers a statist who wants to spend and tax more, and a statist who wants to wall the country off from the rest of the world. We could have this technology revolution now, or we can languish for another thirty years while these idiots we call presidential candidates stumble around in economic darkness. Yeah sure, go ahead and talk until you’re blue in the face about Hillary’s email server, or about the Star of David on Trump’s twitter account, while the printing presses debase the currency, governments spend themselves into the poor house, the media puts on cartoons and calls them news, and we hurtle toward our destiny, whatever that may be. The US is now a country that’s happy about revised economic growth from .5 percent to 1.1 percent, with 95 million people out of the work force, a media that writes gossip and calls it news, and a population that believes Russian Propaganda and You Tube conspiracy theories because…what’s the difference? The Earth is hollow, you know and there’s a whole civilization down there, right? And you wonder about moral hazard? Sponsored by Karow Contracting and Brush Studio in the West End, Saint Louis Park. (Editor’s Note: In this podcast I refer to former CIA Director David Petraeus’ offenses regarding passing classified information with intent, and engaging in a coverup after as occurring while Petraeus was on active military duty. I wondered whether he would be under the Military Code of Justice in this case. This is incorrect. Petraeus was director of the CIA when the offenses occurred and not on active duty. For comparison to the Clinton question, one should refer to the FBI director’s congressional testimony regarding the differences between the Clinton question and the Petraeus case.)