Tag: taxes

–Letter from John McCain: 3/22/10

An alternative to popular faith

I just received this letter from Senator John McCain. I am reprinting it here, because I want it to become a permanent memorial to an “I’ve got mine, so don’t ask me to share” mindset. Through the years, I have tended to vote Republican, but this letter makes me ashamed of it.

“Late last night, the Democrats in the House of Representatives passed their massive government takeover of our health care system. (Specifically, what makes it a “takeover?”)

“This bill is terribly wrong for America and I call on you to join with me to challenge this bill in every way we can. The fact remains that by a two-to-one margin, Americans do not want this bill to become law.” (Two to one? Have you ever seen this phony research?)

“On Saturday, I held town hall meetings in Arizona and we could not find one person who liked this bill.” (Really? Not even one person?)

“It’s shameful that the Obama Administration and Congressional Democrats have chosen to ignore the citizens of America.” (Is ignoring the citizens of America similar to allowing 30 million to go without insurance?)

“I believe the will of the people will be reflected sooner or later. The Democrats will learn in November, that when you go against the wishes of the American people, you pay a steep and heavy price. Americans will not be silenced on this matter and I will continue to lead this fight each and every day. I assure you I am not quitting our fight. I believe we must repeal this bill immediately.

“I am currently working in every way possible on your behalf to accomplish this. However, I am facing a tough reelection campaign. If I am not reelected this year, I cannot fight for our shared values in the Senate. That’s why your immediate donation of any amount is so critical.” (Aha, now we understand. It’s all politics. Along with 100% of the Republican party, you decided that your political survival depends on voting “No,” for anything the Democrats propose. Imagine: Not a single Republican voted against the party line. Not one.)

“Your urgent support will enable me to continue our fight against this terrible bill. Through tax increases and expensive burdens on small businesses (False. It will cut costs for small business and poorer people, though it may raise costs for large business and the wealthy, a definite flaw), “this bill will bankrupt our great nation” (a fiscal impossibility, but don’t bother him with facts while he’s begging for money.)

“And while the inside-the-beltway Democrats are celebrating with champagne at the White House, anger is building outside the beltway. I need your immediate help to send a message to these Washington Democrats. I ask that you take a moment today to make a generous contribution of $25, $50, $100, $250 or more to ensure I may continue fighting on your behalf.”

(Better we give money to the poor uninsured, than to a senator who already has the best health insurance plan in the world, but doesn’t want the less fortunate to share.)

“I assure you that I will continue to challenge this bill in every way I can and will work to repeal it as soon as possible. Thank you for your continued support.

Sincerely,

John McCain

P.S. For the first time in American history, a major piece of legislation has been passed without bipartisan support.” (When was bipartisan support even possible?)

“The fact remains, the American public does not want this massive government-run health care takeover. I am working to repeal the bill but I need your support to continue my service in the U.S. Senate. I am facing a tough reelection campaign and your immediate donation of $25 or more will enable me to continue fighting. Please follow this link to make your urgent donation. Thank you.” (How about giving up your own Cadillac health care and pension plans, as a start?)

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

–How to cure federal tax loopholes

An alternative to popular faith

The March 15, 2010 New Yorker Magazine contained a piece by Mr. James Suroweicki titled “Special Interest.” The article described a quirk of federal tax law in which private-equity fund managers pay taxes on their share of profits (also known as “carried interest”) at the capital gains rate. Mr. Surowiecki says, “If you manage money for a mutual fund or a public company, you pay regular income taxes; do it for a private fund and you pay capital gains.”

Because capital gains are taxed at a lower rate than regular income, Mr. Suroweicki feels this “loophole” is unfair and should be closed. He probably is right, though his solution is maddeningly typical and wholly wrong. He would close this “loophole” by doing away with the tax break, i.e. increasing the tax on carried interest.

Nowhere does Mr. Suroweicki suggest decreasing the regular income tax, though that step equally would close his hated “loophole,” while additionally providing a tax-relief benefit to the public. Instead he follows the popular faith that all our money really belongs to the government, and should any group find a way to send less than others to the government, the solution is to make them pay more, rather than allowing us to pay less.

The very word “loophole” has pejorative connotations: something that begs to be sealed up. Why can’t the carried interest tax rate be considered the “normal” tax, while the regular tax rates are considered the anomaly. Why must every perceived unfairness in taxes be cured by raising a tax rather than by lowering one?

The federal government does not use tax money to pay its bills. It, in fact, destroys all the tax money sent to it, and it creates new money when it credits the bank accounts of creditors. Federal spending is not limited by federal taxes. When your neighbor finds a way to pay less, this does not increase your own tax burden (though the same cannot be said for state and local taxes, as these entities do not have the unlimited ability to create money).

Yes, there is the pathological, human jealousy the have-nots hold for the haves. But, something more harmful exists: The false beliefs that we are the government, anything taken from the government comes from us, and anything given to the government benefits us.

We are not the government. We pay taxes; the government receives taxes. We are limited in our ability to spend; the government is not. We live, lust, feel, fight, work, worry, conceive and care for children. We dream of the future, but eventually we die. The government does none of these things.

It is a giant machine, a remorseless, monster grinder, only more powerful, because it has the unlimited ability to create its own fuel. Some of us fall into the grinder and lose an arm or a leg. Others escape. Mr. Surowiecki would call that escape a “loophole.” His solution: Close that “loophole” by making sure everyone loses and arm and a leg.

How about making sure no one loses and arm and a leg. How about cutting taxes to address unfairness. Has anyone ever thought of that?

Rodger Malcolm Mitchell
http://www.rodgermitchell.com

–The bottom line on health care insurance

An alternative to popular faith

Despite all the claims and counter-claims, here are the facts about the proposed universal health insurance plan, whatever the specifics:

1. It will cover more people than now are covered by health insurance

2. It will lower rates for people who now pay high rates because of pre-existing conditions.

3. Therefore, the plan will cost money. No sleight-of-hand, no accounting tricks, can change that.

4. Trying to reduce costs by cutting pay to doctors, hospitals and pharmaceutical companies will reduce the number of doctors and hospitals and the amount of drug research – a self defeating idea.

5. Raising taxes also is a bad idea. History shows that higher taxes impede economic growth, while lower taxes stimulate it.

6. Put them all together – higher costs, no tax increases, no penalizing doctors, hospitals and pharmaceutical companies – and what is left? Federal deficit spending.

7. Increased federal deficits (unlike state, county, city, corporate and personal deficits) are infinitely sustainable, because the government has the unlimited ability to create the money to pay its bills. Despite massive deficit growth, no federal check ever has, or ever will, bounce.

8. Federal money creation has not caused inflation. In the past 50 years, the three years of greatest deficit spending – 1976, 1983 and 2009 – resulted in reduced inflation. Data indicates inflation is the result of oil prices, not federal spending

In summary, we should worry more about coverage than cost. To improve the lives of Americans (Isn’t that what this is all about?), the federal government should pay for the best possible health care insurance, and not spend endless hours trying to use magic to balance an unbalanceable budget.

Rodger Malcolm Mitchell

— All you need to know about the Left and Right

An alternative to popular faith

Here is all you need to know about the political Right Wing:
1. The RW wants to put President Reagan’s picture on the $50 bill, because he is the “most admired and accomplished Republican president of recent decades.” (Chicago Tribune)
2. The RW is strongly against big government and large deficits
3. President Reagan greatly expanded the federal government and up ‘til now, had run the largest deficits in U.S. history.

Here is all you need to know about the political Left Wing:
1. The LW wants to make excellent health insurance available to everyone, especially poor people and people with pre-existing conditions.
2. Adding all those insureds will require adding many more doctors and hospitals
3. The LW wishes to pay for improved health insurance by cutting payments to doctors and hospitals, by fining poor people who don’t buy insurance, and by taxing the “Cadillac” plans owned by union workers (which cover pre-existing conditions).

Rodger Malcolm Mitchell