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.)

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

Podcast 522-BobDavis Podcasts Radio Show 34

Podcast 522-BobDavis Podcasts Radio Show 34. A tumultuous week ends in chaos and violence . Two officer involved shootings, and a sniper attack on police in Dallas, Texas which killed and wounded several officers. Further threats against police. People saying absurd and terrible things with no basis in fact, and that’s just the elected officials. News anchors, talk radio hosts, people on social media hurling accusations, name calling, explanations of what happened (especially by those who were not there), and terrible information on all these stories. A woman live streams an extraordinary event and the first reaction by FaceBook and some citizens is that people should not have the ability to live stream or post videos that might be considered ‘offensive’ or ‘controversial’? The original plan for the radio show this week was to condense Podcast 521 into three more palatable segments:  A segment focused on the decision by the FBI not to recommend indictment in the Hillary Clinton email scandal, which seems to have surprised only so called conservatives. One focused on how ill served we are by the media in general and a segment focused on a story no one is reporting; the financial situation internationally and the potential for a major breakdown due to the bad decisions that have been made by leaders on the economy. After delaying production of Podcast 522-BobDavis Podcasts Radio Show 34 to wait for more details on the big stories to break, I decided to change the opening segment and continue with the plan. Oddly enough, it all seemed to fit together. There are many problems in our society, but one of the big ones is how our media is not up to the task of dealing with the kinds of stories we’re seeing this week. Rather than investigate and report news, it advocates. Rather than investigate and advance the story so we’re better informed, it leaves that to cheeky types who yell at each other around a so-called roundtable, or interviews bystanders and calls it coverage. The population as a whole does not have the patience to learn the contours of an issue, is keen to argue and defend a position without any real knowledge on these stories, and social media seems to magnify the worst traits of the human character. Previous podcasts have discussed the possibility of unpredictable events to change our lives irrevocably. After what happened this week, I feel even more strongly that the black swan is just below the horizon. Sponsored by X Government Cars and Hydrus.

Podcast 516

Summer Starts The Year. Most of this year has been like living on an ice floe, or behind glass, or encased in cotton. Now that summer has started, it feels like things are speeding up. It feels like the year is just starting. If that assessment resonates with you, there are three stories to watch in the next few weeks that may bear fruit as major game changers. Or not. First, Britain votes on June 23rd on whether to exit the European Union. If you read the analysts it’s all gloom and doom. Such an exit will trigger an economic collapse, or worse, plunge Europe into a collection of disagreeable states that triggered two world wars in the 20th century. Yet, if you think about it, there are many states that aren’t in the EU, both in Europe and in the rest of the world and we all seem to get along just fine. The world isn’t going to stop trading with Britain whether it stays in the EU, or not. Second, Movements such as the British Exit movement are characterized by the worldwide media as “Populist” or “Nationalist”, or worse “Xenophobic”. Explanations are offered to suggest this is the effect worldwide of the Trump candidacy. What if that isn’t it at all? What if people are struggling to come to grips politically with overbearing and increasingly incompetent governments, and central banks who seem to be doing more harm than good. The west seems to have a disturbing faith in government as a solution to all that ails. What if governments, politicians, technocrats and elitist ‘leaders’ are the problem? Is it possible we have lost the language to be able to define the problem, since almost every story about the economy leaves one with the impression that there’s only one way to address economic stagnation in the US and the rest of the world and that is to stimulate demand. What if stimulating demand isn’t the issue at all. Since we’re all so steeped in one way of thinking regardless of what ‘side’ of the political divide we’re on, we seem to be struggling with the issue of how to describe the tyranny of government. Our political system doesn’t seem to have the capacity to address it, mainly because we don’t seem to have the language to name the problem. Thus, people get described as ‘populist’, or ‘xenophobic’, and non governmental solutions get described the same way. If we talked about government in terms of Monarchy, perhaps Americans would better understand the increasingly unlimited power of government over our lives, and the unlimited ability of government to fail. Maybe that’s what the British in favor of an exit are saying. Third, republican candidate for the nomination for president Donald Trump may suffer death by a thousand cuts, politically speaking in the next few weeks as more and more issues come to the forefront concerning his campaign effort. Vulnerable Republican Senators are so concerned about losing the Senate they managed to get Marco Rubio to announce he is running for Senate in Florida after all. Moreover, Romney supporters are getting appointed to powerful posts on the rules committee, a ‘conscience clause’ rule change is in the offing, former Bush Administration officials are endorsing Hillary Clinton and it was revealed this week Trump’s campaign only has 1.3 million dollars on hand for a national campaign, and isn’t fully staffed. Get ready, a major challenge to Trump is in the works, with all the usual suspects working behind the scenes. Did someone say Jeb Bush? Romney? Ryan? Rubio? Time will tell. Sponsored by Karow Contracting and Brush Studio in the West End, Saint Louis Park.