Tag Archives: taxes

It’s Not the Elites’ Fault; It’s Yours

My fellow liberty broadcaster Alan Mosely put out a humorous tweet that read, “Who knew Omicron would be such a hero?” He was retweeting an announcement that the World Economic Forum in Davos had been called off due to the Omicron variant.

Certainly, no good ever comes from a bunch of billionaires hobnobbing with the heads of national governments. Ditto the Bilderberg Group, The Council on Foreign Relations or any of several other such elitist gatherings.

But here’s the part most people miss: No bad really comes from them either. Sure, the Federal Reserve was cooked up at a secret meeting of elites on Jekyll Island. But it only became reality because of overwhelming support from the public after it was pitched as a way to protect them from the “elites.”

There was plenty of opportunity to hear opposition to the Act from the minority of Congressmen and Senators who voted against it. But the public ignored their warnings and supported the Act anyway.

Ditto the 16th Amendment. This was also pitched as a way to shift the burden of taxation away from the middle and poorer classes to the rich, the “elites.” The public swallowed this bait and switch hook, line, and sinker, and today clamor for the so-called elites to pay even more income taxes.

But whom do income taxes really hurt the most? The super-rich, making millions or billions in income? No. It’s those middle-income earners, especially those who work the hardest to get ahead, for whom that extra $10,000 – $20,000 paid in income taxes could represent significant capital accumulation over a period of years.

Maybe it’s just a coincidence that this provides a barrier to competition for those above. Does it really matter if it’s intentional or not, since it does?

Right down the line, the public overwhelmingly supports policies that harm them when pitched as protection from the elites. The god-awful Teddy Roosevelt styled himself the “Trust Buster.” His even more awful cousin sold the New Deal to protect the public from the “greed” of the rich.

Everyone was outraged by the EpiPen scandal a few years ago. This was the direct result of the FDA having legislative power, acquired during the New Deal without any amendment to the Constitution, and using it to keep competitors of the EpiPen off the market.

That’s just one little product protected by just one of scores of federal agencies but it’s representative of how the entire New Deal regulatory structure works. And the public not only approves of it but constantly clamors for more.

I don’t care how many private jets Elon Musk or Bill Gates owns. Their getting richer doesn’t make me poorer. Quite the opposite, in fact. But here’s what does make me poorer: government intervention that purports to protect me from “the elites.” That the elites overwhelmingly support it should tell you something.

No system in the past has ever resulted in economic equality; nor will any system in the future. But here is one thing history should have taught you by now: If you set up a system where the property of the elites and yours is subject to disposition by majority vote, you shouldn’t be surprised when the elites end up with all of yours.

Most people on my e-mail list get this. For all those who don’t, I offer these thoughts as some you can pass on to counter so-called “populist” arguments for further “regulating” or plundering the elites. It’s a sucker’s game.

Don’t forget my new e-book, It’s the Fed, Stupid, is also available in paperback here. It’ll cost you less than a sawbuck and is great for introducing friends to our ideas.

Like the music on Tom Mullen Talks Freedom? You can hear more at tommullensings.com!

Words and Phrases to Avoid on April 15

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We hear a lot about words and phrases we should or shouldn’t use these days, politics having crept into virtually every area of our lives. At the risk of promoting even more “political correctness,” here are some terms that can legitimately be considered “microaggressions” when used in the presence of net taxpayers on April 15:

fair share

not paying their fair share

common good

common sense (when used as an adjective)

public goods

the public interest

public servant

public spirit

public education

social contract

general will

will of the people

national conversation

“our” seniors

“our” roads

“our” schools

“our” infrastructure

“our” veterans

rebuild the military

support the troops

thank the troops

freedom isn’t free

keeping us safe

fighting for our freedom

national interest

the poor

the rich

the children

the troops

working Americans

work of the American people

sustainable

green energy

Green New Deal

(the old) New Deal

green anything

income inequality

the gender gap

the wealth gap

healthcare is a right

Medicare for all

single payer

These are just a few things to avoid saying on this somber day for freedom. If you find yourself about to parrot any of these talking points, then at least for today, please say the following instead:

TAXATION IS THEFT.

To all those who grant this humble request, THANK YOU FOR YOUR SERVICE!

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Big-Spending Republicans Seek Tax Hikes on Blue States

taxincreasesignTen days ago, Republicans passed the first $4 trillion federal budget in U.S. history, a version of which narrowly passed the House on Thursday. At $4.1 trillion, the budget represents an approximately 5% increase in spending over the last fiscal year of the Obama administration and sets the stage for President Trump to do what every GOP president has done since WWII: increase spending far more than did his Democratic predecessor.

A History of Spending Increases

Simple arithmetic will tell you that if spending increases, either taxes or deficits must increase, too. But although the GOP has been happy to let deficits explode in the past, they will have a harder time defending them this time around after their eight-year assault on Obama’s deficits, which increased debt from $10 trillion to $20 trillion.

Therefore, Republicans are going to have to raise taxes to avoid bigger deficits. They have set out to do exactly that to their political opponents while cutting taxes for their supporters. All of this makes their current narrative about eliminating the state and local deduction from federal tax liability especially unseemly. They claim the deductions force low tax states to subsidize high tax states like California, but that’s not true. California and New York pay more in federal taxes than they reap in federal benefits.

That isn’t to defend the egregious taxation in states like New York. But as Republicans love to remind us, the wealthiest 20% of Americans pay most of the income taxes and most of those people live in blue states Republicans are targeting for effective tax hikes. To raise spending by $200 billion and then claim the moral high ground based on fake news is exasperating even by Washington’s standards.

Read the rest at Foundation for Economic Education…

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

It’s Time to Repeal and Replace the Republican Party

Gop slash 2President Trump attempted Friday to put a smiley face on the defeat of the American Health Care Act (ACHA), known to its opponents as “Obamacare Light.” From his perspective, the failure to secure enough Republican votes to pass the AHCA will lead to a “better bill” in the long run, because that future bill will have bipartisan support. The president did not elaborate on how the bill he envisions would be better or what about this bill, which he virtually threatened members of his own party to vote against, he didn’t like.

Opponents of the AHCA opposed it because it was too much like The Affordable Care Act (Obamacare) itself. Trump’s comments beg the question for anyone hoping for less government in health care, rather than more: How exactly will participation by the Democratic Party make the next bill better?

It’s fair to say Trump is far from a typical Republican, especially on health care. He’s supported single payer government health insurance in the past, even as recently as his 2016 campaign. But what about the rest of the GOP? If the House of Representatives is any indication, merely tweaking and renaming Obamacare was a viable solution to what they have denounced for seven years as the first step down the slippery slope to socialism.

This is by no means an isolated incident in the GOP’s history. Despite running on reducing the size and influence of the federal government, Republican presidents and Congresses have consistently presided over more significant expansions than the Democrats. A look at historical data on federal outlays reveals that federal spending increases far more when a Republican is in the White House than under a Democrat, regardless of which party controls Congress.

Beginning with Nixon, federal spending has virtually doubled during the administrations of all three two-term Republican presidents. Even Eisenhower increased it fifty percent, despite two year-over-year cuts in 1954 and 1955, respectively, equaling the percentage increase under LBJ’s “Great Society” (although the latter was accomplished in one term). Spending increased far less under Democratic Presidents Clinton and Obama than under any post-war Republican president who served two terms. It seems unlikely that trend will change under President Trump, who has proposed $60 billion in increases to military and Homeland Security spending.

Republican rhetoric also typically includes “slashing” regulations on economic activity, but the reality rarely bears any resemblance to the rhetoric. Like many of his Republican predecessors, Eisenhower created an entire new department, Health, Education and Welfare, which paved the way for LBJ’s medical entitlements. Nixon created the EPA, which alone is responsible for some of the most stifling regulation on business. Reagan is widely credited for massive deregulation, but most of the meaningful deregulation was passed while Carter was president. George W. Bush’s only two meaningful economic policies were the economically destructive Sarbanes-Oxley Act and the TARP bailout.

Over the entire sixty-four years since 1953, voters truly interested in reducing the size and influence of the federal government have decried what have recently come to be called, “RINOs,” (Republicans-in-Name-Only). This is a term popularized during the Tea Party era to describe Republican politicians who run on shrinking the federal government, but who govern more like liberal Democrats once in office. If only a real Republican could be elected, say the grass roots, then the federal government would finally be brought back within its constitutional limits.

But when have these “real Republicans” ever existed? Once upon a time? If one goes back to its founding in 1854, the Republican Party was the big government party. By 1860, the platform included all the familiar big government planks from its predecessors, the Whigs and the Federalists. And spend big they did, particularly on railroads and other infrastructure, in addition to raising protectionist tariffs.

It wasn’t until Woodrow Wilson and the new Democratic Party leapfrogged the Republicans in terms of big government that Republicans even campaigned on shrinking the federal government, which wasn’t exactly a radical idea following the spending and regulation ramp-up during the largest war in human history to that point. Evidently, Warren Harding and Calvin Coolidge are the only “real Republicans” to have ever occupied the White House. And let’s not forget that both merely returned policy to that of their 19th century Republican predecessors. Harding and Coolidge praised Alexander Hamilton’s economic policies and governed accordingly.

Considering the present Republican administration, there has never been a better time for those truly interested in smaller government to confront reality: the ninety percent of Republican Congressman who would have voted for the AHCA are the real Republicans. They represent what the Republican Party has been about for the entire 163 years of its existence: big government conservatism.

It’s time to repeal the GOP and replace it with a party truly committed to less government, free markets and a peaceful foreign policy. While the numbers associated with third parties are not encouraging, one cannot ignore the vast potential represented by that half of the electorate who don’t vote at all. Together with the large number of Republican and Democratic voters who “hold their noses” and vote for the lesser of two evils, a new party formed from the Libertarian, Constitutional and Reform Parties, marketed to disaffected non-voters, could represent a viable alternative.

At this point, what could those seeking smaller, less intrusive government possibly have to lose?

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Merry Christmas: Mary gives birth to a great libertarian

TAMPA, December 24, 2012 ― It’s not a surprise that libertarian themes pervade many iconic Christmas specials. After all, they celebrate the birthday of one of the great libertarians of all time.

In the Gospels, government is exposed as evil right from Jesus’ birth. A paranoid Herod is willing to kill all of the babies in the kingdom to try to eliminate the perceived threat represented by Jesus.

Tax collectors are considered de facto sinners, on a par with prostitutes. Libertarians would consider this unfair to prostitutes, but for the times this couldn’t land better.

Jesus himself doesn’t disappoint, either. From the moment he begins his ministry, he wages a nonstop verbal war against the hypocritical, oppressive, tax-devouring Temple priests. Jews at the time were required to pay annual taxes to the priests and were also expected to come and make sacrifices at the Jerusalem Temple. To do so, they had to buy the livestock for the sacrifices from the priests and deal with the priests’ money changers.

That’s why the libertarian from Galilee kicked the money changers out. This would have been considered a revolutionary act.

One can’t help but equate Jerusalem at that time with Washington, DC, an entire city of tax-fed, opulent wealth.

Jesus has no patience for excessive regulation, either. When he encounters a Jewish law that does not address actual criminal activity, he encourages his followers to break it. When the meddling scribes confront Jesus with allowing his disciples to eat without washing their hands, Jesus lets loose with his customary anti-government invective, calling them hypocrites and then instructing “the people” to ignore this idiotic law and focus on not committing real crimes instead. (Mark 7:1-23)

Jesus doesn’t have much use for social conservatives, either. When they bring a woman who has committed adultery before him to be stoned, he shames them into letting her go (John 8:1-7). He does not condone her sin, nor imply that she may not be judged by God for it. He makes the distinction between those actions which constitute harm to other human beings and can therefore be punished by men and those which do not constitute harm and can only be judged by God.

Jesus shows no such objection to the law against theft, committed by the men crucified with him. Unlike adultery, this constitutes actual harm against the property of another. One of the thieves says that he is justifiably punished and Jesus does not contradict him. He offers forgiveness but not escape from punishment (Luke 23:40-43).

Michael Moore seems to think that Jesus’ message is inconsistent with free enterprise. Perhaps Mr. Moore should actually read the gospels. The heroes in most of Jesus’ parables are businessmen and property owners. The villains, like the evil vinedressers in Mark 12:1-12, are those looking for unearned wealth. The beauty of this story is that it affirms property ownership on the literal level and simultaneously represents a symbolic shot at the corrupt Temple priests.

The third steward of Matthew 25:14-30 is punished for not being a capitalist. Again, there is a symbolic meaning here, but Jesus chooses a free enterprise-friendly vehicle to convey his message.

While Jesus says that wealth can be a distraction, he unambiguously states that it is not a sin in and of itself. Jesus has many wealthy friends, including the wealthy women who support him and his disciples during his ministry (Luke 8:3). He does not consider them sinners as he does those who derive their wealth from taxation. If only today’s “liberals” would learn this distinction.

While Jesus often encourages people to voluntarily give to the poor, he never once implies that this should be accomplished by forced redistribution, especially through the Jewish government he spends the rest of the gospels criticizing.

Even during his passion, Jesus continues to make libertarians stand up and cheer. Anticipating the 5th Amendment by over 1700 years, Jesus refuses to talk to the cops or give evidence against himself. In John 18:20 he basically says, “If you have some proof, present it. You’re not getting anything from me.” He likewise refuses to talk to Pontius Pilate.

The result? Acquittal. Pilate “finds no case against this man.” Of course, both the Roman and the Jewish governments break their own laws and Jesus gets crucified anyway, providing another libertarian lesson about the moral character of most governments.

Whether they believe in God or not, all libertarians have good reason to celebrate the birth of Jesus Christ. If only more Americans would be Christ-like by holding the government in contempt, resisting its ridiculous edicts, rebelling against its wealth redistribution and honoring free enterprise, we’d all be a lot freer here in the “land of the free.”

And if we observed the one rule this great libertarian gave us on dealing with one another, “Do unto others as you would have them do unto you,” we’d live in a safer, more peaceful world.

Merry Christmas to all.

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? Part One and A Return to Common Sense: Reawakening Liberty in the Inhabitants of America.

Mitt Romney did not pay less in taxes than his secretary (and raising capital gains tax will destroy the economy)

TAMPA, December 1, 2012 ― President Obama and the Democrats were successful in 2012 largely on the strength of some rather outlandish demagoguery. “Billionaires pay fewer taxes than their secretaries” was one slogan that was particularly successful.

The Obama campaign successfully made an issue out of Mitt Romney’s taxes, finally getting Romney to admit that he paid around 13% of his earnings in taxes over the past several years. The “fair share” crowd contrasted this with the higher percentage that would have been paid by a secretary in the 28% bracket, for example, who would still pay more than 13% even after deductions.

That Americans bought this specious argument is more worrisome than that the Democrats made it.

Romney’s tax percentage was low because most of earnings came from capital gains, not income. Capital gains are just what they sound like. They are the appreciation in the value of one’s capital. If you buy a stock at $5 per share and its price goes up to $7 dollars per share, you have realized $2 in capital gains. If you sell that stock at a $2 dollar profit, the government wants a percentage.

Right now, Mitt Romney would pay 35% income tax and 15% on capital gains. The average secretary would pay 15% income tax and 15% on capital gains. So, Romney’s tax liability as a percentage of income is more than double the average secretary’s. His tax liability on capital gains is the same. Obviously, Romney’s nominal tax payments in both categories would exceed the secretary’s by orders of magnitude.

That’s how things actually are out here in the real world.

So why is the tax rate on capital gains lower than on income? Because “capital,” by definition, comes from previously taxed income.

Read the rest of the article…

The fiscal cliff: Another phony emergency to give the government more power

TAMPA, November 27, 2012 – The 24-hour news cycle is dominated with frantic warnings about the “fiscal cliff.” If you merely listen to the sound bites, there is another “emergency” facing the United States of America and only some drastic action by Congress can avert it.

What nonsense. Don’t Americans ever learn anything from even the recent past?

Just four years ago, we were told that if we didn’t allow Congress to give Wall Street almost a trillion dollars of our money, the end of the world would occur. The “bold” legislation was necessary to “save the financial system.” Other than preventing a lot of billionaires who made bad investments from losing their money, I’m not sure what that was supposed to mean.

It didn’t prevent millions of borrowers from losing their homes. That happened anyway.

We were told after 911 that “the world changed” and the 4th, 5th and 6th amendments to the Constitution would have to be trashed. Americans now subject themselves to unreasonable searches without warrant merely for the “privilege” of getting on a plane. They allow presidents to arrest American citizens without a warrant or charges and hold them indefinitely without recourse to a writ of habeas corpus.

The president can even kill American citizens without due process.

It was all supposedly necessary to protect us from…the shoe bomber and the underwear bomber. Both defeated the new government security apparatus and were subdued by private citizens.

Both initiatives were accompanied by a non-stop barrage of media propaganda trumpeting impending doom if the government wasn’t given more power.

The fiscal cliff scam is playing out exactly the same way. Day and night, Americans are bombarded with the same message. If Congress doesn’t do something, the world will end.

There are two components to this supposed disaster. The first is the “draconian cuts” to government spending built into the Budget Control Act of 2011. Supposedly, they will “gut the military,” while plunging the economy back into recession.

There is only one problem. Even if Congress fails to make a deal, nothing is being cut from the federal budget.

Let me repeat that. Nothing is being cut.

Read the rest of the article…

A Modest Proposal for Interposition

So, the Tea Party Congress is seated and the “revolution” is underway. After voting to repeal Obamacare, a largely symbolic gesture that has no hope of passing in the Senate or overturning a presidential veto, the new Congress has outlined its plan to attack the federal deficit. The result: A proposal to cut $100 billion in “non-defense discretionary spending.” While that may sound like a lot of money to someone who hasn’t taken a gander at the federal budget in about 50 years, it amounts to a little under seven percent of this year’s deficit.

That’s right. Seven percent of the deficit, not the budget. In other words, the tea parties, the stormy town hall meetings, the supposed “mandate from the people” to cut the size and scope of the federal government will result in the government spending $1,380 billion more than it collects in taxes this year instead of $1,480 billion more. Worse yet, the same people who “stormed the Bastille” and threw the former bums out will defend this proposal with half-hearted panaceas like “you have to start somewhere.”

However, if history has taught us anything, it is that this isn’t “just the beginning,” with more substantial cuts to follow. This will be the high water mark as far as reduction in government spending is concerned. We should expect that by the time that this proposal goes through the process of back room deals and compromises with special interest-motivated committee members, that the $100 billion number will be reduced by at least half, perhaps more. They may even end up increasing federal spending. Would anyone honestly be surprised?

It has been obvious for at least a century that “throwing the bums out” doesn’t make a lick of difference in the behavior of our elected officials. Now we know that staging protests, waving signs, raising a ruckus at town hall meetings, and then throwing the bums out doesn’t make a difference either. Clearly, it is time to stop doing the same thing over and over again and expecting a different result.

The nullification movement has been decried by the left as right wing extremism at its most dangerous, despite the fact that it was conceived and introduced by Thomas Jefferson, the father of the Democratic Party. However, I have a proposal that I believe both conservative and liberal Americans would find very reasonable. There is a way to use the idea of state interposition to force the Congress to at least listen to its constituents. Let’s put the idea of interposition together with another of Jefferson’s ideas, drafted by him in a resolution of the Continental Congress in 1775 in response to Lord North’s Conciliatory Proposal.

“That this privilege of giving or of withholding our monies is an important barrier against the undue exertion of prerogative, which if left altogether without our control may be excercised to our great oppression; and all history shews how efficacious is its intercession for redress of greivances and reestablishment of rights, and how improvident it would be to part with so powerful a mediator.”

Let me be clear. As opposed as I am to all taxation, I am not suggesting that one dollar be cut from the existing tax schedule for 2011. What I am suggesting is that the people exercise their right to withhold their taxes until the Congress does what the people have clearly mandated them to do – balance the budget. A seven percent cut in the deficit just isn’t enough and we are running out of time. We can argue later about the role of government and the wars in the Middle East and Social Security and the rest. Right now we have to take away this Congress’ ability to borrow any more money or we’re going to be in the same boat as Greece.

I am not calling upon people to exercise civil disobedience or rebel. The stakes are high in either of those endeavors and we have other options. I am calling upon people to utilize their state legislatures to support them in withholding their taxes until a balanced budget is passed by Congress. As much as I’d personally like to see them withhold their tax money permanently, they would then release the funds to the federal government.

This would be accomplished in the same way as several other recent nullification/interposition efforts. The state legislatures would pass a law indicating that no person or business in their state could be prosecuted or fined by the federal government for failing to file an income tax return or failing to pay their quarterly payroll tax deposits, so long as said filings and payments were made within sixty days of the Congress passing a balanced federal budget. For those who still trust the people less than they do the government, a stipulation could be added that the funds go into escrow and be audited by the states, if necessary.

This would accomplish two things. First, it would reestablish exactly who works for who in this relationship. Obviously, elections have failed to do that. More importantly, it would work. The blind fear that would grip our legislators when they realize that the party is really over would at least scare them sober enough to balance what would still be an over $2 trillion budget. While it wouldn’t solve our long-term problems, that truly would be a start.

Bloated governments are imploding all over the world and ours is poised to do likewise for all of the same reasons. Now that we have seen what “extremism” really looks like in Greece, Egypt, and Tunisia, this proposal should strike any rational person as reasonable and moderate. We do not need a rebellion or violence to balance the federal budget – just a little adult supervision.

Check out Tom Mullen’s hit book, A Return to Common Sense: Reawakening Liberty in the Inhabitants of America. Right Here!

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