First off, we wouldn’t be in the mess of tax-withholding and all the filing complexities if it wasn’t for the Current Tax Payment Act of 1943.  This little gem has successfully hidden the real tax burden from the average American by getting us to look at our paychecks as “gross and net.” income.  Gross being that which we’ve earned and net equals what we get to keep after the federal, state and local governments legally plunder what it wants via payroll deduction.

Ok,  the point of this article.  I’ve begun hearing over and over again how necessary it is to buy TurboTax or some other software to make sure you get the biggest refund you deserve.  WHAT!  Biggest refund you deserve!?  You gotta be kidding me.

Frog In The Kettle to all readers…when you get a “refund” from the federal or state government, that means you paid in more to them than you should have; essentially, you’ve given the legal plunderers an INTEREST FREE LOAN!!  Is this REALLY what you want to do?

Let’s say you get a refund of $1,000 from the federal government.  Instead of earning $50.00 in interest had you invested that same $1,000 at 5%, no, you gave it to the federal government to use as they see fit with no interest paid by them.  Or, even if you decided not to invest it, it was still in your pocket to do with as you want.

Folks, in 2010, please do a better job tax planning…don’t give our legal plunderers FREE money…if they need more, they’ll borrow, legally plunder, or print more.  You’ve worked hard for your property…keep every penny you can.

Misc, Real Change, The Economy

 

Adam Smith coined the “Invisible Hand” metaphor over 200 years ago and how applicable it is during these trying times.  The “Hand” is at work and there’s nothing we can do to stop it; a reckoning is coming, one that even the vaunted federal government cannot stop, though it will try.

 

The Mother Of All Bubbles (MOAB) is upon us and ignoring or tinkering with it will only prolong, not solve this mess.

 

With over 12 TRILLION in current debt, another 7.5 TRILLION coming in 2009-2010 from bailout after bailout and 60 TRILLION in unfunded mandate obligations (Social Security and Medicare), the die is cast.  Now we just wait and see how this drama unfolds and how big a mess we’ll be in.  There is no blueprint and we’re in unchartered waters.

 

We American’s are an odd bunch with the uncanny ability to bury our heads in the sand and rely on some sort of cognitive dissonance to navigate difficult times.  On the one hand, we see the problems in the country and complain.  Oddly, at the same time, we act as though the problems aren’t real and go our merry way, spending and charging.  Rather than deal with the likelihood of a decreased standard of living, severe joblessness, and staggering financial loss, 63 million of us bought into “change” rhetoric.  Sadly, these naïve ones believe that the federal government will ride in on a horse and save the day…how sad.

 

Here’s the cold hard truth, the MOAB is unstoppable and its name is insidious – DEBT.  We’re a country that’s full of it.

 

Facts:

 

1.      Current National Debt – In excess of $12,000,000,000,000.00 (Yes, that’s 14 digits)

2.      Projected bailouts – In excess of $7,500,000,000,000.00

3.      Unfunded debt obligations (Social Security & Medicare) - $60,000,000,000,000.00

4.      Consumer Debt – 97% of GDP or roughly $14,000,000,000,000.00

 

MOAB (Mother Of All Bubbles)

 

What does all this mean?  In layman’s terms, GDP essentially equals how much is produced by our country each year.  In 2009, it will generally equal $14 TRILLION.  So, if the entire country didn’t spend a single penny all year (that means no mortgage payments, no food, electric, car payments, etc), we would still fall $79 TRILLION short of the debt we owe.  Of course, we cannot use all of our GDP to retire debt and really, we’re $93.5 TRILLION in debt.

 

Thus, the Mother Of All Bubbles is upon us and we cannot hide.  It’s a simple reality that we face and we’d better come to terms with it.  For starters, we’d better realize the government isn’t the solution.

The Economy

 

Just finished reading the Bloomberg.com report on “hidden” provisions regarding nationalized health care in this pile of pork.  It should alarm each and everyone of you and perhaps “stimulate” you to do something.

Listen folks, were getting closer to a Constitutional Crisis as the federal government takes more and more of our rights granted to us by our Creator.  Notice that the liberals rarely, almost never, refer back to the founders nor the Constitution when crafting legislation.  We should be asking why this is so and the obvious answer is…they don’t care about the Constitution and haven’t since FDR and his big government policies in the 30’s.  We’ve been on this trajectory ever since.

Pay very close attention to the workings on the Hill the next few weeks and to other like-minded conservatives.  You will here action plans that are being developed as you are reading this.

Real Change, The Economy

 

chiv·al·ry   (sh·v’·l-ry)  
n.   pl. chiv·al·ries

1. The medieval system, principles, and customs of knighthood.
2. The qualities idealized by knighthood, such as bravery, courtesy, honor, and gallantry toward women.
3. A manifestation of any of these qualities.
4. A group of knights or gallant gentlemen.

 

I’m coining a new phrase today; Economic Chivalry.  Combining economic and chivalry, I come up with this:

ec·o·nom·ic chiv·al·ry  - pertaining to the production, distribution, and use of income, wealth, and commodities in a manner that idealizes knighthood qualities such as bravery, courtesy, honor, and gallantry.

Going…going..GONE.  Honestly, is there anything brave, courteous, honorable, or gallant about what is going to be done to our children and grandchildren in the next few months.  And in case you’re not paying attention, we’re about to saddle them with TRILLIONS and TRILLIONS and TRILLIONSof dollars of debt so that we can have a pretend recovery.

I used to call my parents generation the “worst generation”, after all, they were the one’s who swallowed hook, line and sinker the promises of FDR’s “New Deal” and LBJ’s “Great Society” programs.  Throughout the 40’s, 50’s, 60’s, 70’s, 80’s, 90’s, they bought into the ponzi scheme called social security and medicare and demanded more more more.  They never gave a thought that the more, more, more was going to come out of their children’s, children’s, children’s pockets.  Well, I think my generation, the proverbial “baby boom” generation is, shall we say,…the worser generation.  Why?  Because we’re about to do whatever we need to do to avoid paying the piper.  The bill has come due, and we expect our children to pay for it by borrowing now and making them pay later.  After all, borrowing is the American way isn’t it.

Have we no shame, no conscience or are our heads really buried that far into the sand.  Sadly, the latter may be more accurate than the former if you interview any typical Obama supporter.  When I hear our big-government leaders use terms like “invest”, or “enhance”, or my favorite “put a down-payment on the future”, I cringe. 

So, what are we to do?

The Election Turn-Over Solution.  Many believe this is just the typical back and forth between election cycles, the demshave it for a while and then the republicans have it back for a while.  People who believe this say things like “you just wait til 2010 when we get the Congress back”  or “they’re gonna over-reach and then…fill in the blank.”  Little history folks; guess who ran the House from 1954-1995 (a short 41 YEARS!).  Hint, the democrats.  During the same period, 1954-1995, the democrats held the Senate 80.95% of the time, often with very and I mean VERY wide margins.  So, for republicans who think it’s just a given to “get the Congress back” when the democrats crank up the treasury printing presses, you’d better think again.  The republican party may be back in the wilderness for decades, quite honestly, they deserve it.  Personally, I don’t think they’re going to get the House back anytime soon and the Senate looks just a daunting.  Why?  Let’s just say there is a little less than inspiring leadership at the helm right now.

The Shift the Chairs on the Titanic solution.  This is one of my favorites.  Let’s just see if we can slow down the growth of spending by offering republican solutions.  Maybe, we can blunt the effects of the Obama revolution.  Of course, this is predicated on the belief that democrats play fair.  Another hint…they don’t.  Having worked on the Hill during Reagan’s term and being quite familiar with the sausage making legislation process under the eminently fair minded Jim Wright and Tom Foley, let me assure you, democrats have no stomach for fairness.  None.  Just look at what Speaker Pelosi did withthe House rules last week.  Essentially, republicans have just been sent packing and will have little if any influence on any legislation going forward.  The best they can hope for is to align with some “blue dog” democrats to alter the newest “New Deal” being proposed.  I know what it’s like in the wilderness…it ain’t fun.

The See no Evil, Hear no Evil, Speak no Evil Solution.  This is the scariest and one that I believe has really taken hold.  You hear it in phrases like “we have to hope Obama succeeds” or “give him a break, we don’t even know what he’s going to do yet.”  WHAT!!!  This one amazes me and really shows how much the concept of “tolerance” has deadened us.  Hope he succeeds!?  What the heck does “succeed” mean, total government control, nationalized health care, nationalized industry?  Look folks, we’re in a cultural and ideological war right now, let me emphasize the term war as in both sides are supposed to fight.  Trouble is, it appears as though the conservatives have no stomach for it and instead see no evil, hear no evil nor speak no evil.  And so, the Frog in the Kettle parable is in full affect right now.  The liberals have incrementally been turning up the heat on free markets, liberty, morality and transcendent truth for decades and the right, expressing itself though the republican party is no longer welcome there.  The water is very very hot now and conservatism is teetering, especially if we’re all going to hold hands and chant “Obama succeed, Obama succeed.”

The Constitutional States Rights Solution.  While most are sitting around the campfire chanting “Obama succeed, Obama succeed”, there are some rumblings of a States Rights solution, after all, the Constitution grants far and wide authority to the States and little and enumerated rights to the federal government.  Some are beginning to wonder aloud whether the States should reign in federal power or break their compact with it.  Lest you think I jest, just last February, as we awaited the Heller decision from the Supreme Court, the Secretary of State of Montana warned that they might secede if the Court took away an individual right to bear arms.  Others are testing with waters with ideas like “so do states have the right to seceede anymore.”  I doubt very much if this talk will decline any, in fact, it’s very likely to increase as more and more heavy-handed policy flows from Washington DC.  There are many who are weary of Washington DC dictating how people should live and robbing them of their earnings.

My Solution.  Some national stature leader will rise and state the obvious, America is broken and quite likely broken beyond repair.  What started out as a grand experiment has devolved into gaining and holding power.  The Constitution is no longer sacred and the 5th, 9th and 10th Amendments have little real bearing on federal policy.  American idealism, the now ancient idea of inalienable rights, hard work, trust, and honesty are all but gone in our march towards a HUGE centralized government where we look to DC to meet our every need.  In my view, the ideological divide is too big to repair and the citizenry and states must exercise their Constitutional prerogative and force a Constitutional Convention limited to a review of Article 1, Section 8 of the Constitution.   We must recognize the obvious, we are not a united country any longer and we have two completely separate interpretations of this section.  There are two distinct sides now and we don’t want to get to a point where we’re itching for a fight…believe me, we don’t.  And do we really want to be at a point where whomever holds power (whether democrat or republican) in Washington DC gets to force their will upon those who don’t want to receive it?  I don’t.

So, while economic chivarly is all but gone, it’s not too late to fix the problem.  I personally don’t want to force my children and grandchildren to pay a debt that my generation wracked up on them.  Do you?

Real Change, Restore America, The Economy, Unbelievable

 

Well, the President’s blank slate is beginning to fill in, and it ain’t pretty.

“At this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe,”

ONLY GOVERNMENT!  You gotta be kidding me.  Hold on folks, we’re in for a very bumpy ride and quite honestly, I’m not sure we can stop any of this.  Why?  We’ve got what boils down to lapdog leadership in the House and Senate; more than willing to roll over in order to make sure President Obama succeeds.  We’ve got a very disorganized conservative movement still gummed up by our relationship to the republican party.  We’re faced with an overwhelmingly liberal government.  Look out below!!!

So, what do we do, complain, complain, complain?  Not me.

The battle lines will be drawn very quickly folks:

• Health care
• Tax increases
• Gun control
• Whatever other freedom or right they choose to take away.

 

To fight back, it’s gonna take sacrifice; sacrifice of time and money.  If we don’t meet the liberals forceful attempt to enslave us to a HUGE Centralized Government with equal force for liberty, it’s all over but the crying.  Rush recently stated the obvious; “they get health-care and it’s over.”  He couldn’t be more correct and based on reports over the last few days, this will be our first battle out of the gate.

The Economy, Unbelievable

 

America is on the verge and it’s no joking matter.  This financial tsunami just off shore has been building for decades and is about to come crashing on beaches across the country.  Sadly, there really isn’t much we can do to stop it though one thing is for sure, even if we could, we’re not even close to the real solution.  Until someone is willing to take a stand against the tyranny that awaits us, things are just going to decline fast…real fast.

Why so gloom and doom you ask?  Well, almost everyone offering a solution is missing the real problem and in reality are just offering solutions that move the chairs around on the Titanic.  The problem is the size and reach of the federal government and republicans, like the democrats just want to control it, not shrink it.  Name a leader of national stature that has called for an ending to some agency or department…stop trying, you won’t be able to and this is why I’m gloom and doom.

In the end, it does us no good to debate republicans vs. democrats, there’s not a whole lot of difference; both platforms are predicated on a massive federal government and we end up just fighting over who controls the largess.  For that matter, our beloved Ronald Reagan wasn’t even able to shut down the Department of Education he promised he would once he assumed office.

We’re in the grips of a tremendous frog-in-the-kettle moment and unless someone with national stature is willing to call for radical change and then be able to articulate why, we’re headed for turbulent water.  Eventually, we’ll either devolve into a completely socialist state or the country will violently break apart.   The current trajectory is unsustainable.  Why?

• We have a current federal debt of 10+ Trillion Dollars - how’s that going to be paid?
• We have proposed federal deficits in the next couple of years adding up to another few trillion dollars - how’s that going to be paid for?
• We have Medicare and Social Security unfunded liabilities totalling potentially $54 Trillion Dollars - where’s that money gonna come from?

 

It’s going to be paid for by jacking the average hard-working slug on the street, that’s how.  But the dirty little secret is; it won’t work.  When they kill incentive for me to grow my business by taking more and more of my hard-earned money, guess what I’m going to do…slow down.  Why bust my rear-end, take risks, put up with more and more regulatory burden only to have the federal government slip their fingers into my wallet and slip out a few bucks while whispering into my ear that they’re just trying to “spread the wealth around”.  What arrogance.

It’s time people began to realize that the “government” is not just some innocuous entity.  It only exists in its current form because it can exercise the power of law over us to take our money that we’ve worked hard for.  The “government” produces nothing, has no bottom line, is accountable to no one, and contributes nothing to our GDP yet accounts for roughly 20% of the spending that occurs in our country.  In the end, our federal government only takes, takes takes.  Currently, it’s “taking” at a rate of $22,100 of your hard earned dollars not including state and local taxes and every other type of tax you pay.  Disgustingly, it can take more any time it likes and there’s really nothing you can do about it.  Feel a little helpless!  Let me pile on with some other data about taxes you pay.

Property Taxes	Alcoholic Beverages
General Sales and Gross Receipts Taxes	Death and Gift Taxes
Documentary and Stock Transfer Taxes	Corporations in General
Amusements	Hunting and Fishing
Insurance Premiums	Motor Vehicles
Motor Fuels	Motor Vehicle Operators
Pari-mutuels	Occupation and Businesses, NEC
Public Utilities	Other License Taxes
Tobacco Products	Individual Income Taxes
Other Selective Sales and Gross Receipts Taxes	Corporation Net Income Taxes
Severance Taxes	Add here!
Taxes, NEC

Folks, the Founders of this great land gave us a great start and we plain ole’ messed it up, we’re all guilty.  But before we can resurrect the gift of freedom, we must first take an honest inventory of how far we’ve strayed, and believe me, it’s far.  And unless we’ve all become beholden to the “living Constitution” crowd, we’ve got to go back to the origins of this mess; Hoover and FDR.  Hoover and bad leadership and FDR and mischievous leadership.  Historians in some camps are coming around to Smoot-Hawley as the cause of the gigantic downturn in the economy; Hoover’s fault.  After this downturn, the stage was set for FDR to come in with his Stalin infatuated “brain trust” and massively increase federal spending under the guise of “helping”.   Would people have suffered more had the republicans in the 30’s had more courage and stopped FDR?  No one will ever know.  But one thing we know for sure is that since FDR’s administration, trillions of dollars of productive energy and effort have been sucked out of our country, gone forever.

So, a new compact is needed.  The working men and women of this country must reassert themselves in these final hours.  We must deprive the federal government of all that is needed for its survival…money.  Regardless of the reason, wisdom alone should lead you to severely restrict spending.  The side benefit to this is that If you do, you will deprive the state and federal government tax revenue.  Drive less - you will deprive them of tax revenue.  Take every single tax deduction you can to reduce the amount they can withhold.  If you own a business, talk to your accountant about taking as much of your income as allowed as a dividend - depriving Social Security and Medicare of revenue.  Any other legal ideas?  If so, post them to comments section.

In the end, politicians know one thing…power.  They only have power because the have the money to sustain power.  For me personally, I’d rather deprive myself of things I’d like to purchase rather than let the, less than honorable on Capitol Hill deprive me of it by prying it out of my wallet.  They may be able to, by force of law, compel me to give them money, but they can’t by force of law make me spend money or work any more than I need to.  Want to really bring them to their knees, participate in a long work stoppage.  These may seem like surreal ideas, but really they’re not.  There was a time not too long ago when a few brave freedom loving citizens decided to protest against the heavy hand of King George…you know the rest. 

These politicians on the Hill are not worthy of being called “Statesman”, they’re not.  They’re power-hungry elitists who would throw you in jail in a minute if you oppose their rule.  Read some of the debate during the Taxpayer Act of 1943 for a real feel of what they think of you. 

 

The Economy, Unbelievable

 

So, how did the federal government become such an albatross that hangs around our neck?  This certainly wasn’t the intent of our Founders; they envisioned a small federal government and a more robust state government.

 

Answer: In 1943, the Congress in all their wisdom and in cahoots with FDR passed the Tax Payment Act of 1943.  Take a guess what this wonderful piece of legislation did?  This beauty provided the federal government with the power of law to sneak its fingers into your back pocket, lift out your wallet and slip out a few bucks…anytime it wants to.

 

You see, the Tax Payment Act of 1943 gave the government the power to withhold taxes from your paycheck,

all as a service to you so you wouldn’t have to bother with writing those big checks on March 15^th (that’s when taxes we due back in 1943).  Geeez, thanks for all the help.

 

Now why is this important?  Well, the sinister government (don’t for a minute think its benevolent) realized that if they could make paying taxes appear to be easy through removing a little bit each check, the average American would grow used to this method and not object to coming increases.  A typical Frog in the Kettle moment in history.

 

You can imagine what happened after they pulled this one off; the well was wide open and they (legislators) could drink from it til their hearts content.  Want to see this in practice?

 

Dateline November 11, 2008.  Against a overwhelming tide of opposition from the American public, legislators in both the House and the Senate today passed the Troubled Assets Relief Program (TARP); a $700 BILLION Taxpayer Bailout of the financial sector.

 

Taxpayer…hmmm, who’s that.  Oh that’s right it’s us.  So, because of the wonders of legislative sausage making in 1943, they continue to slip their fingers into our pockets and take out a few bucks whenever they need it.  And there’s NOTHING WE CAN DO ABOUT IT!  Or is there?

 

Sure there is.  First, quit talking/complaining and do something:

 

1. Stop thinking the Congress is a bunch of bums but your congressman is peachy.  Write your congressman and senator and ask them what they think about the Tax Payment Act of 1943.  Hint: they won’t have any idea what you’re talking about and some poor legislative assistant will have to spend an hour researching it.  You will then receive a form letter informing you that your congressman is very interested in your thoughts on this most important issue and then say or commit to nothing.  Send me a copy of any letter you get.
2. If you’re sick of this mess, run for office or help someone run who shares your values on this issue.
3. Help a coalition or organization that opposes this method of legalized theft.

 

In the end, do something.  Too often, we just sit around and whine about how bad things are…and they are bad.  But unless we do something about it, we deserve what we’ve received.  Imagine what the world would be like if African American’s just sat around and complained about their lack of civil rights?  Rather than sit back and just whine, they actually did something thank heavens.  They had the courage of their convictions and a willingness to act; something I see lacking in the conservative movement.

 

Are you willing to march on Washington DC?  How about a work stoppage to make sure the government understands their power to do anything rests in the majority of workers actually working?  How about opening your wallet for candidates that have the guts and courage of their convictions but don’t want to play the republican game?

 

Talk is cheap as they say and actions speak volumes.  Sick of those government fingers in your back pocket yet?

Must Read, The Economy, Unbelievable