When Liberals unwittingly apply conservative economic principles . . .

The principles of capitalism work and have raised more people from poverty than Communists and Socialists ever dreamed of.  And even though Liberals literally fail at basic economics, every now and then they accidentally get one right. See Official: NY tax breaks would apply to ‘Tonight’:

The bill expected to be voted into law in coming days would provide a 30 percent tax credit for a “relocated television production.” Past and current tax credits have gone to new productions starting in New York, such as “Law & Order.”

Hmmm . . . so if you lower taxes, a business will be more likely to come to your location. Shocking.  And it stands to reason that if you raise taxes then more will leave.

Are the NY officials being irrational by offering the tax break?  No, because they realize that luring the Tonight Show will have all sorts of other benefits.  Too bad they don’t apply that across the board.

When you consider how the same behavior applies to countries you can see why jobs get outsourced (it isn’t just the wages).

“I tip my urologist” and other tax philosophies

Dwight Schrute, from The Office: [After he didn't tip the sandwich delivery boy] Why tip someone for a job I’m capable of doing myself? I can deliver food. I can drive a taxi. I can, and do, cut my own hair. I did however, tip my urologist, because I am unable to pulverize my own kidney stones.

That theme fits in well with the tax philosophy regarding what we “need” taxes for.  I can’t — or it would be wildly inefficient for me — to defend the country, put out a house fire, etc.  But I don’t need the government to get involved in everything in my life.  More specifically, I want the right part of government doing the right job.  We do not need the Federal Government involved in education at all.  Even the smallest states are big enough to run things themselves, and could easily leverage the successful ideas (read: not California’s) of other states.

And note that the government doesn’t really do many of the things attributed to them.  They don’t build roads.  They collect our money to pay others to build roads.  This is probably the best way to do it, even though the politicians often get kickbacks when handing out contracts.

 

Good overview of Cain’s 9-9-9 plan

Herman Cain

Image via Wikipedia

See Is Herman Cain’s 9-9-9 plan revenue neutral? Does it tax the poor more?  I’m a big fan of the simplicity of flat taxes.  If you’ve ever worked in the finance area of corporate America you know how many business decisions are reverse-engineered to optimize the insane complexities of our tax code.

The whole purpose of a flat tax, à la 9-9-9, is to lower marginal tax rates and simplify the tax code. With lower marginal tax rates (and boy will marginal tax rates be lower with the 9-9-9 plan), both the demand for and the supply of labor and capital will increase. Output will soar, as will jobs. Tax revenues will also increase enormously—not because tax rates have increased, but because marginal tax rates have decreased.

By making the tax codes a lot simpler, we’d allow individuals and businesses to spend a lot less on maintaining tax records; filing taxes; hiring lawyers, accountants and tax-deferral experts; and lobbying Congress. As I wrote on this page earlier this year (“The 30-Cent Tax Premium,” April 18), for every dollar of business and personal income taxes paid, some 30 cents in out-of-pocket expenses also were paid to comply with the tax code. Under 9-9-9, these expenses would plummet without a penny being lost to the U.S. Treasury. It’s a win-win.

Here are three facts about Cain’s plan:

  • Fact #1: People below the poverty line are exempt from ALL the taxes.

  • Fact #2: It is a stupid objection to say that the tax rate can be raised.ALL taxes can be raised, and Cain has already said that his plan would require a 2/3rds majority to raise the tax rates.

  • Fact #3: This plan has nothing to do with state income taxes or state sales taxes or state corporate taxes – his plan only reforms federal taxes. State tax laws are outside of the jurisdiction of the President.

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Straw man of the year: The “So you say you hate taxes?” list

As if we needed more evidence that Liberals literally fail at basic economics, this anti-Tea Party piece is floating around Facebook as if it actually proves something: So you say you hate taxes? … well here is the solution.  Here’s a sample of the 102 items listed (they really put a lot of work into this logical fallacy!):

1. Do not use Medicare.

2. Do not use Social Security

3. Do not become a member of the US military, who are paid with tax dollars.

4. Do not ask the National Guard to help you after a disaster.

5. Do not call 911 when you get hurt.

I imagine that most of you will quickly spot the straw man fallacy: The Tea Party never claimed to want taxes to be zero.  Never.  They even used the “backronym” of Taxed Enough Already.  Therefore, the “but taxes pay for good things” argument is meaningless.  It proves nothing.  It was just an extended-play, petty vehicle to demonize one’s ideological opponents.

And you’ll probably realize that just because we need taxes for some things — and the Tea Partiers agree that some taxes are necessary — it doesn’t mean:

  • That taxes should be raised
  • That the current tax proceeds are being used efficiently and effectively
  • The tax proceeds are being spent in Constitutionally correct ways
  • That increasing tax rates will increase revenues.  For example, lowering the corporate tax rates would keep more jobs here, resulting in more personal income and Social Security tax receipts.

Side note: The commenters on the Facebook page included the typical “tea bagger” pejorative.  It occurred to me that the anti-Tea Party people must be real homophobes.  After all, why would they consider it to be such an effective insult to refer to Tea Partiers by a term describing a gay sex act?

With friends like these . . .

Reading How Obama’s plan to raise the minimum wage will hurt young black men reminded me of how counterproductive so many Liberal policies are for blacks.

The abortion rate is three times higher for blacks than whites, and Liberal dreams of taxpayer-funded abortions will deliberately take that higher.  Yet they are the ones claiming to have the long term best interests of blacks at heart?  Planned Parenthood kills more blacks in a week than the evil KKK did since their inception (and ironically enough, the KKK is pro-life).

They support teacher’s unions without fail and oppose charter schools, yet they are the ones claiming to have the long term best interests of blacks at heart?

They assume that poor blacks will always be poor and set up the welfare to perpetuate that, yet they are the ones claiming to have the long term best interests of blacks at heart?

Now here’s part of the post about how minimum wage increases hurt young black men.  I encourage you to read it all.

Moderate economist Gregory Mankiw of Harvard University lists the policies that are accepted by virtually all economists.

Here’s Greg’s list, together with the percentage of economists who agree:

  1. A ceiling on rents reduces the quantity and quality of housing available. (93%)
  2. Tariffs and import quotas usually reduce general economic welfare. (93%)
  3. Flexible and floating exchange rates offer an effective international monetary arrangement. (90%)
  4. Fiscal policy (e.g., tax cut and/or government expenditure increase) has a significant stimulative impact on a less than fully employed economy. (90%)
  5. The United States should not restrict employers from outsourcing work to foreign countries. (90%)
  6. The United States should eliminate agricultural subsidies. (85%)
  7. Local and state governments should eliminate subsidies to professional sports franchises. (85%)
  8. If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. (85%)
  9. The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. (85%)
  10. Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value. (84%)
  11. A large federal budget deficit has an adverse effect on the economy. (83%)
  12. A minimum wage increases unemployment among young and unskilled workers. (79%)
  13. The government should restructure the welfare system along the lines of a “negative income tax.” (79%)
  14. Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. (78%)
All this makes the race-baiting of false teachers like Chuck “Jesus is not the only way” Currie and the Leftist media so galling.  Tea Party members love people like Herman Cain because his ideas are so superior to those on the Left.  Yet they are the ones claiming to have the long term best interests of blacks at heart and that Tea Partiers are racist?  Leftists like that have no shame.

Why “soaking the rich” doesn’t work

They are remarkably waterproof.  Game the rules all you like and they will find ways around them, or just move their capital to an environment that isn’t so hostile to it.  Politicians endlessly create and exploit loopholes but arrogantly assume that no one else is as clever as they are and will do the same.

Driven by a combination of bad planning, a lack of understanding of  basic economics and plain old coveting*, California is now doomed to fail.

See Californians flee to red states at Haemet.

In the five-year period from 2005 to 2009, 870,000 people left California.  Most of them went to red states, like Arizona and Texas, wherein jobs are more plentiful, taxes are lower, and housing prices are lower.

Problematically for California, the type of people who leave a failing state are the ones that a state most needs.  The educated, the wealthy, and the ambitious are the ones who will pack up and move, taking their human capital, their assets, and their earning capacity to other states.  Most of the people who stay are the ones who need the strong and able to carry them.  California is on its way to a death spiral, wherein everything it will need to do will only exacerbate its problems.

This why we need simplified tax structures.  Yes, some will take advantage of them, but they always will.  Having a tax code multiple times the size of the Bible is doomed to fail.  It just increases bureaucracy and wastes money.  We also need to get rid of public-sector unions and radically cut back the welfare state.

* Remember that one?  It made the top 10 list.

Dear Illinois, Do you think you can keep raising taxes with no ill effects? Think again.

See Governor Christie is actively courting Illinois businesses to move to New Jersey (and he is not the only Governor to take advantage of Pat Quinn’s chronic stupidity) – Ah, the free market at work!  That pesky law of unintended consequences will get you every time.  Make your state difficult to do business with and people and companies will leave.

This works on the national level as well.  If you raise taxes and raise barriers to effective commerce, capital funds will go elsewhere and take their jobs with them.  And that lowers tax bases that further erode employment, and the spiral continues.

These are basic economic principles that a 7th grade Junior Achievement student can grasp yet these highly paid politicians cannot.  Like horrible chess players, they can’t think one simple move ahead.  And more and more people will suffer for their ignorance.

Beware of billionaires claiming they want to pay more in taxes

This is a must read for anyone following the super-rich who portray themselves as selfless do-gooders who want to be taxed more: Hey, Warren, put all your money where your mouth is « Hot Air.

First, let’s state the obvious: These folks have been free to send in extra money to the government.  No one is stopping them.  Did they take advantage of that?  Apparently not.

Did you notice how they didn’t propose this novel idea when they were “just” millionaires?

Did you notice how they use all sorts of ways to avoid taxes?  I don’t object to that, of course, as long as they play by the rules.  What I do object to is them pleading for someone to please, please tax them now!

Did you notice how this might just hurt their competition more than it hurts them?

Do you think they might find ways to avoid these increased taxes?

Don’t let these guys fool you into believing they are being altruistic.

Also see When “I can” Becomes “You Must.” These “altrustic” types who want to take other people’s money to solve a problem have the ability to solve it themselves.  Just write those checks, guys!

Another waste of taxpayer funds by people who don’t understand business

Government employees who have little, if any, business experience are bound to come up with wasteful ideas.  Here’s another one:

Via Obama Announces $33 Billion Hiring Tax Credit for Jobs – ABC News.

Under the president’s proposed tax credit, businesses would receive a $5,000 tax credit for every net new employee that they employ in 2010. The total amount of credit will be capped at $500,000 per firm to ensure that the majority of the benefit goes to small businesses.

This is simple: While a few companies might hire employees they otherwise wouldn’t have due to these incentives, the vast majority of businesses fall into one of two categories:

  1. Business that don’t have demand for their goods and services and don’t need to hire.  Even with a $5,000 incentive, hiring new employees means they’ll be paying more for wages than necessary.   They won’t use this program.
  2. Businesses that were going to hire anyway.  They had demand for goods and services but didn’t need the additional incentives.  Sure, they’ll cash the checks, but what’s the point?

Leave the $$ with the taxpayers and let them spend it how they like.  That will stimulate demand and lead to real hiring.  Don’t give it to an inefficient government that will take its cut then waste the rest by giving it to companies that were going to hire people anyway.

A big part of the problem

Listen to the President talk about why he would raise capital gains tax rates even though cuts by Clinton and Bush both increased revenues.

Amazingly enough, the liberal commentator Charles Gibson knows and tells the truth about what happens when the capital gains tax rate is reduced:

History shows that when you drop the capital gains tax the revenues go up.

But note how Obama ignores the facts and says he wants “fairness,” as if having a higher rate for those evil rich people will make things more “fair,” even though there will be less tax revenues to fund his liberal projects.

As I said in Jobs!!! Part one, here’s a huge part of the problem: Are You Smarter Than a Fifth Grader?  Self-identified liberals and Democrats do badly on questions of basic economics.  The video is just more evidence of that, not to mention the failure of putting Utopian ideals above financial facts.

And you wonder why unemployment is so high?  It is just like when ideology and feel good finger-pointing unnecessarily cost tens of thousands of jobs with the offshore drilling moratorium.

Hat tip to TNWAHM via Hillbuzz for the video

People who say that Social Security has a “trust fund” are ill-informed– or they think you are

You often hear from politicians that we must protect the Social Security “trust fund,” but the truth is that there is no such thing.  They know that – or at  least they should know that.  So they are ignorant and/or trying to deceive you, both of which are bad.

The government does not have the capability to set aside funds in a bank account like we do.  When the Social Security funds come in they are spent on Social Security, or, as they have done for decades, on other spending projects they didn’t want to raise taxes to fund.  Decades of dishonesty and financial mismanagement by both parties are becoming more visible.

If some of these Social Security funds went to private investments that you could control then that would limit how much the politicians could abuse.  But they don’t want to lose control, so they play on your fears that something bad will happen.

Yes, the market could crash and you could lose your investments.  It is a risky world.  But think about this: Whether your private account crashed or not it isn’t like the government is saving our taxes today to pay out tomorrow.  Either way the payouts they will make 10 years from now will come from taxes paid 10 years from now.

Simply put, we can’t lose by having at least part of current contributions devoted to private accounts.  The politicians will lose because they’ll have to find a way to fund current spending, or not spend the money at all.

Don’t let fear-mongering by politicians fool you.  The system has been broken for a long time.  Democrats didn’t want you to be informed and Republicans didn’t try hard enough to inform you.  But it isn’t that complicated.

Roundup

baby1.jpgPresident Obama is really bad at science.  He thinks that abortions don’t kill human beings.  He should check out secular embryology textbooks to see the scientific facts.  But why let pesky scientific facts get in the way of your worldview and your financial support?

Need a laugh?  I think you’ll get one from this list over at the Pugnacious Irishman’s place.  People took regular words from the dictionary, changed one letter, and made new definitions.  Samples:

Intaxicaton : Euphoria at getting a tax refund, which lasts until you realize it was your money to start with.

Reintarnation : Coming back to life as a hillbilly.

Bozone ( n.): The substance surrounding stupid people that stops bright ideas from penetrating. The bozone layer, unfortunately, shows little sign of breaking down in the near future.

Remember when the Left wanted to discredit and destroy Joe the Plumber over $1,200 of unpaid taxes?  Do you wonder why so many of Obama’s picks are tax cheats and are not getting roasted by the Dems?  Me too.  If only the media would have investigated Obama a fraction of the amount they did for Palin and Joe.

California can’t afford to pay its employees and is swimming in debt, but they can still afford to destroy human embryos for medical research and put up billboards pushing gay adoptions

The Human Rights Campaign Foundation has partnered with the California Department of Social Services and the Los Angeles County to promote a “Life, Liberty & the Pursuit of Family” campaign that invites homosexuals, bisexuals and transsexuals to adopt children.

Oh, good, not just gays but bisexuals and transsexuals as well.  Their perversions know no bounds.

Roundup

Tax stuff - The 2009 income tax rates are here.  The brackets moved up while the rates stayed the same (for now), so that should save you a few $$$.

The 401k limits increased to $16,500, so be sure to adjust your contribution %. 

I always use a spreadsheet to estimate my taxes.  There are often surprises, such as deductions being phased out, but it does help to ensure that I’m not over-paying.  I’d rather the money sit in my account all year than get a big refund. 

One year I literally got a $1 refund.  I should have framed the check.

Best guitar picks ever — Seriously, they have a unique grip of soft little dots.  I was bummed when the guitar store quit selling them but was glad to find them on Amazon.

Answering the top 15 lies of the pro-gay theological movement

A common falsehood about the reformation and Protestantism is that the concept of Sola Scriptura (that scripture is our standard for what is true) has caused there to be 33,000 denominations.  James White has a good piece showing just how wrong that assertion is.

Could it be?  Do I really agree with something from the Huffington Post?  See Mr. Gore: Apology Accepted, a nice summary of the falsehods perpetuated by Al Gore.

Mortgage pariahs — turns out that some liberals who called for an end to predatory lending were the guiltiest of all, and the MSM gives them a pass.  Sarah Palin = fair game, profiteering hypocrites = hands off.

Sarah Palin fights back — good for her!  The media was such an embarrassment with their outrageous bias against her.  In an odd way, they showed how much they feared her. 

New adddition to the blogroll — Syinly’s weblog — she has a real heart for God, true transparency and challenging messages.

Barack Obama: Pro-partial birth abortion, among other things

This has been one of my most popular pieces picked up in search engines, so I thought I’d refresh it.

Have you voted?  I voted yesterday, for McCain / Palin.   This election matters a lot.  Yes, God is in control, and He can make good come out of bad, but we should never avoid doing all the good that we can.  And voting for McCain is a far superior moral position than voting for Obama. 

It is not over!  If just 6-8% of the people claiming to support Obama are in the category of “I’m not racist, but I don’t like to be called racist” (i.e., the “Bradley effect”), then McCain can win.  And that assumes no ground is made up otherwise and that the young people actually turn out to vote for Obama.

P.S. The voting was crowded, so the volunteers asked me to tell all the Obama supporters that their voting day was getting moved to Nov. 11.  Just kidding!  Probably!

———-

Also see The scariest part about Obama

McCain is significantly better than Obama in every key area:

  • Pro-life – McCain has a track record of supporting good judges, while Obama is one of the the most extreme pro-abortion advocates I’ve heard of (and that is not an exaggeration – just keep reading).  Consider his bizarre standards for judges: Instead of picking people who can interpret the law honestly, he wants this: “We need somebody who’s got the heart, the empathy, to recognize what it’s like to be a young teenage mom. The empathy to understand what it’s like to be poor, or African-American, or gay, or disabled, or old. And that’s the criteria by which I’m going to be selecting my judges.”
  • McCain has much better fiscal policies.  Obama wants to take your money to give to his pet projects, but donates a pittance himself.  Giving other people’s money at the point of a gun is not charity.  “Spreading the wealth around” is socialism, and it doesn’t work.
  • We’ll be far, far safer with McCain.  Obama is relatively clueless about foreign affairs, would have us surrender in Iraq and set the Middle East progress back 50 years, and is so naive as to think we could or should eliminate nuclear weapons.
  • His energy policies will keep the cost of fuel up for decades.  McCain knows we need to drill now and get nuclear plants started asap.  This will provide jobs, reduce greenhouse emissions and reduce energy costs for us all.
  • Obama is anti-free speech.  Watch how they try to annihilate anyone who dares to even question him, such as Joe the Plumber.  He and the Democrats will want to impose the deceptively named Fairness Doctrine, so they can try to silence conservative radio while leaving the grossly biased mainstream media untouched.
  • McCain pays his female staffers more, on the average, than his male staffers; Obama, however, pays women $0.83 for every dollar earned by men.”
  • Obama is not about change at all.  He is about the same old liberal politics.  McCain is the poster boy for real change – whether you agree with the change or not – and for reaching across the aisle. 
  • Obama lies when saying he’ll reduce taxes for 95% of the people.  Nearly half don’t pay taxes, so it is impossible to lower theirs.  He is just talking about more welfare.
  • He will be pro-gay marriage.  Just wait.

Barack Obama, hero and “savior” of the left, isn’t just pro-abortion, he’s pro-partial birth abortion.   80% of the population disagrees with this stance, so be sure to tell others.  Just Google “obama partial birth abortion letter” or something similar if you want more sources. He is against informed consent and parental notification.  In his world, your junior high daughter needs your permission to take an aspirin but not to have an abortion.

He reveals his deceptiveness and/or ignorance with his latest ads trying to say that McCain will make abortion illegal. But overturning Roe doesn’t make abortion illegal. It returns the power to the states – to the people - and lets them decide. California, Massachusetts, NY, etc. can keep killing the unborn all they like.

He also defended the rights of hospitals in Illinois to let children die outside the womb by repeatedly opposing the Born Alive Infant Protection Act against infanticide and he is against parental notification laws.

He lies over and over on his views.  He is as radically pro-abortion as one can be.  Read this thorough analysisby Randy Alcorn to see what I mean.

In his July 17, 2007 speech to the Planned Parenthood Action Fund he said,

“We know that a woman’s right to make a decision about how many children she wants to have and when— without government interference—is one of the most fundamental freedoms we have in this country. . . . I have worked on this issue for decades now. I put Roe at the center of my lesson plan on reproductive freedom when I taught constitutional law. . . So, you know where I stand. . . The first thing I’d do as president is sign the Freedom of Choice Act. That’s the first thing that I’d do.”

If you don’t know about the Freedom of Choice Act, it was written by the most radical proabortion activists because they saw informed consent and parental consent laws being passed at the state level. They wanted something powerful that would dismantle anything that could serve to reduce abortions through requiring that people be told the truth before an abortion or before their sixteen year old, who can’t be given an aspirin without their permission, can have an abortion.

Here’s a piece on the audacity of being an abortion survivor.  Remember, Obama doesn’t just see the right of unrestricted abortions in the Constitution, he sees the right to a corpse. If the abortion fails, then that shouldn’t be a barrier to a dead human.

Obama is lying about others lying- will the MSM check the facts and let voters know his real stand on abortion, partial birth abortion (aka infanticide) and his opposition to the Born Alive Infants Protection Act?

Obama wants change . . . except when it comes to abortion as birth control, inside the womb or outside it.

Obama wants you . . .

  • to pay for abortion!
  • to sanction the killing of infants born alive!
  • to believe that pregnancy is a “punishment”!
  • to accept partial birth abortion!
  • to forget his close association with radical abortion groups like NARAL and PP!
  • to endorse liberal activist Supreme Court Judges that support abortion in the 9th month!
  • to embrace a culture of death!

Listen to his own words, plus his silly comment about the question of when life begins being above his pay grade:

He couldn’t be more clear about his plans:

See The Infanticide Shibboleth for more.  Simply put, Obama is super-duper pro-abortion, and pro-infanticide as well.

He doesn’t even hide his hostility towards preborn human beings.  Consider this quote (emphasis added):

“Look, I got two daughters — 9 years old and 6 years old,” he said. “I am going to teach them first about values and morals, but if they make a mistake, I don’t want them punished with a baby.”

News flash: Sex has consequences – emotional, physical and spiritual.  Destroying – and I do mean destroying – the evidence doesn’t take the consequences away.   

Despite being portrayed as a moderate, he is also against traditional marriage, including the Defense of Marriage Act

He has bad theology, thinking that other religions will get you to Heaven (of course, our current President is guilty of saying this nonsense as well). 

More hypocrisy: He wants to take lots of your money for his pet liberal causes, but donates a pittance himself.  Once again, folks, charity is when you give your own money, not when you force others at gunpoint to support your causes.

I can’t believe he threw his grandmother under the bus.  If anyone uttered “typical black person,” their political career would be over.  Yet he gets a pass for saying, “typical white person.”

Updates: Click here for a long list of reasons why he would make a bad President.