Why Not Tax “The Rich?”

December 10, 2010

The DC criminals are in the middle of a planned shakedown. Make no mistake. Someone is going to be the target of this shakedown. Could be the rich…could be the President and his Democrats in Congress…but somebody is going to get shook down. The most likely victim is ALL the American people, since we are the ones who have to pay for all this criminal spending.

The present dog-and-pony show is between House Republicans and President Obama. With their new-found semi-gelatinous spine, the Republicans negotiated a deal with the President that extends all the Bush tax cuts for all taxpayers for two years. Naturally, these paragons of virtue could not leave the deal alone, but have loaded it with other proposals that complicate the issue and make it harder to get passed and signed into law. And don’t be fooled by this charade. Republicans are big spenders, just like the Democrats.

Allow me a momentary digression.

The new Republican leadership, in anticipation of gaining the majority in the House of Representatives, has named Kentucky Rep. Hal Rogers to chair the all-powerful House Ways and Means Committee. This is the committee that controls ALL spending bills that go through the House. Rogers has earned the moniker “The Prince of Pork,” for his ability to bring home hundreds of millions in tax dollars for his House district. Even Kentuckians know this. Kentucky’s Lexington Herald-Leader called Rogers “the very model of an old-fashioned pork-barrel politician who builds an empire out of government spending.” The Republican leaders shoved aside a much more conservative Rep. Jack Kingston of Georgia to install this “Prince” on his new throne.

John Boehner, the new Republican Majority Leader and likely Speaker of the House, and the rest of the Republicans, are laughing at you, America. You fell for their bullsh** once again when you went to the voting booth. When guys like Rogers are awarded the most cherished Chairmanships, you must know that nothing has really changed in DC.

OK…back to the rich.

The “Bush Tax Cuts” are really not tax cuts. They lowered some tax rates and revised certain sections of the tax code. But Democrats want to raise the tax rates on certain high-income citizens.

Why all the fuss about taxing the rich? Most people in American don’t make above $250,000 a year. Why shouldn’t those highly paid people pay more in taxes?

Answer #1: Because a graduated income tax is not equitable. Everyone should have the identical tax rate…that is, if we must have an income tax.

Answer #2: Because people with money to spend or invest cannot prevent creating jobs simply by spending their money.

Think about your individual circumstance. You earn income, and spend income to support yourself and your family. If you spend more than you earn, you are a typical American. If you spend less than you earn, you have surplus income.

Q: What do people do with their surplus income?
A: You have four choices….save it, spend it, invest it, donate it. But each choice nearly guarantees that jobs will be created or maintained. Look at each choice:

1. Save it: If you tuck in under the mattress or put it in the safe, that’s fine, since you’re putting money aside for a reason. If you exchange your paper currency for gold and silver, you are protecting your money’s value. If you place your money in a bank savings account, the bank will lend your money to another person or business for some purpose, like a new car, home improvements, or business investment. All of the purposes mean that a product or service is getting produced, and that requires humans to add the labor. Human labor is called “a job.”
2. Spend it: You spend your money on goods and services. That means that, before you wanted to spend, someone already created the product or service you want to buy. That is called risk capital at work. Some person put his money at risk to create that product or service so you could buy it. Human labor is a component of the product or service and is called “a job.”
3. Invest it: Investors seek a return on investment, which is your money at work making more money. You can invest in your own business or someone else’s business. But if whether bank savings, Certificates of Deposit, stocks, bonds, mutual funds…the money ends up being used by humans adding value with their labor…a job.
4. Donate it: Some people give away their surplus income or a portion of it. Even if they give their surplus directly to a needy person or needy family, the needy will spend it on goods and services. A charity that feeds the poor may accept donations of food, and then donate the food to the needy, but somewhere along the line, the ones donating to the charity had to have surplus. And surplus is a return on investment.

All four choices seek a return on investment. Even when you spend your money, you’re trading your dollars for goods and services, which is a return on investment.

Highly compensated individuals have more discretionary income to use for any of numbers 1 – 4. And they are just like you in that they will use their discretionary income by choosing numbers 1-4.

We all know that people at the lower end of the economic ladder are usually wage earners, and do not have as much discretionary income as people at the higher end of the ladder. People whose income is exceeded by their expenses do not typically hire maids, or gardeners, or nannies. They don’t create jobs since they don’t have the discretionary income to invest.

The rich are usually not wage earners. They are usually investors and business owners. They place their discretionary income at risk and seek a monetary reward…a profit. And the more profit they earn, the more naturally-occurring pressure they experience to make their profits earn more income. Few want to just take their profits and bury them in the back yard. They want their profits to generate more profits.

The rich pay more taxes under any system of taxation than do the poor or middle class. In some systems, they pay more in actual dollars than the poor or middle class. In some systems, they pay more as a percentage of their income than the poor or middle class. Some tax schemes get the rich both ways. The American tax system is the one that screws the rich both ways. And when the rich have to bear a greater burden of taxation for the whole economy, it means they have less capital to place at risk. Less capital at risk means less goods and services being created, which means less jobs created.

Simply stated, those with more discretionary capital create jobs for those who do not have as much discretionary capital or have none at all. But if government takes more of the income from the rich, they have less with which to create jobs and wealth for everyone. Tax the rich heavily and watch the economy suffer. Tax everyone fairly and watch the economy thrive.

It’s like a guy who owns a water well. He’s happy to sell you water. Sometimes he even gives away water. But when someone else comes along and steals his water, he has less to sell or donate. So everyone is more thirsty.

So, as the article title asks, why not tax the rich? Because it is the rich that place their discretionary income at risk, and seek a return on investment. In the final analysis, that almost always translates into increasing the total amount of wealth for the entire nation.

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.

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Tax Policy For A New Nation

December 9, 2010

We talk secession here at DumpDC.com. And as such, we think about what a newly seceded state, now standing on its own as a new nation, would do to raise money from the citizens to pay for the functions of the new nation.

Washington’s methods of taxation are insane. There are so many methods of taxation…so many assessments, fees, tariffs and penalties…that we cannot keep up with them. Then consider the voluminous IRS tax code. It has been said that there are so many laws in the IRS tax code that every taxpayer is likely violating some tax law at any given moment in their lives. And all of this tax insanity at every level of government robs Joe Taxpayer of about half his income.

The doublethink and mendacity coming out of Washington about taxes is enough to make even a liberty-minded free-market person confused. So today, I’m going to address some fundamental issues about taxation…kind of like “Tax 101.”

First lesson is about money. There is only ONE form of legitimate money, and that is precious metals such as gold and silver. But money is not currency and currency is not money. Currency…paper and coins not made of gold and silver, can easily be counterfeited and passed off as money. Most people think that the greenback paper bills in their wallets or purses are money. But that is just currency.

The word “Federal” would be dropped from the lexicon in a new nation, since the new nation is a single entity, not a confederation of states. The proper term going forward would be “National” to describe the government of the new nation.

A new nation needs to go on the gold and silver money system. For more about this, read Sound Money and Limited Government.

Once the money issue is settled, then the government can begin planning for how to generate revenue of money for its purposes.

“Taxation” is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state (or the functional equivalent of a state) such that failure to pay is punishable by law. That is one method whereby governments collect money to pay for the costs of the government.

All taxation is the ethical equivalent of theft. But taxation has been found, over centuries, as the most workable way for government to collect revenue from its citizens to fund government activities. Most taxation is inequitable, meaning that some pay more, some pay less. Much of taxation is an attempt by government to either reward certain activity or penalize other activity. The disparity of taxation between income earners in America is so great that a large percentage of citizens effectively pay no tax, while other groups of citizens pay the most. So the best that any government could do would be to make the taxation as close to voluntary as possible. The sales tax is the method of taxation closest to voluntary contribution. Think about it. The only time you pay tax is when you spend money.

And what about so-called “fairness?” I’ve said for a long time that “fair” is a place you take your pig to win a blue ribbon. The fairness in taxation ends up being whatever those in power say it is, and that’s certainly not fair. But should not every person pay taxes? Every person enjoys some benefit from the functions of government. Why should the poor be exempt from taxes? More to the point, why should ANYONE be tax exempt? I hold the position that all tax exemptions be ended, no matter if you are a poor individual, a charity or a church. And with a national sales tax as the only method of taxation, all of the other tax exemptions would end as a byproduct of reinventing the tax system. They simply wouldn’t be needed anymore.

Another even more insidious method of taxation is inflation. There is only one source for inflation, and that is a government that devalues its own currency. Inflation lowers the currency’s value. When currency is devalued, it takes more currency to pay for a product or service than before inflation. So it’s easy to look at price increases and think the increase is inflation. It is not. For some excellent information about inflation, go to www.Inflation.us.

I’m going to offer my proposals for generating revenue for the new nation. And when you read these, remember that I am throwing out everything that Washington has done over the last 200 years and starting with a clean sheet of paper.

National Sales Tax

A national sales tax only collects from taxpayers at the point of a retail sale. Every state already has a mechanism in place for the collection of retail sales tax. So any seceding state would have to revise the percentage of sales tax collected but that’s about it.

To fund all operations of the new National government, a sales tax of 15% will be assessed at the point of purchase. This turns national taxation upside down. No longer would the government be able to spend over its income. The new government would be forced to operate within its income, and that income would come from one source…the sales tax. Consequently, the new nation would have to prioritize the services it rendered based upon income, not providing services and then squeezing the citizens for money, borrowing or inflating to pay for it.

If this proposal seems unworkable to you, remember that a new nation, formed from a seceded state, would not have to start with the burdens presently laid upon all of us by Washington. No Social Security, Medicare, big military, and long list of three-letter bureaucracies like HHS, FBI, DOA, FTC, etc. The new nation would start with a very small government, and would be prevented from adding new government burdens unless it could pay for them.

Advantages:

• One tax, no other taxes. No property tax, personal property tax, estate tax, income tax, gift tax, capital gains, tariffs, duties, alternative minimum, Social Security, Medicare, and self-employment taxes.
• The gold standard money could be paid to the new national Treasury through coin, currency or electronic money.
• All government functions, from national down to county, city, village and townships, would be paid from the sales tax.
• All employees earning paychecks would have no government deductions of any kind.
• There would be no exemptions for any individual, business, charity or religious organization.
• No goods or services would be exempt, like food and medicine.
• There would be no tax forms whatsoever for citizens to fill out.
• It would eliminate the need for an IRS-type tax collector. Tax revenues would be forwarded to the Treasury by retailers. Retailers would be paid a service fee for collecting and forwarding taxes to the Treasury.
• No tax breaks, tax deductions, tax credits, tax amnesties, tax returns.
• The sales tax would collect revenue from citizens, aliens, illegals and tourists equally. If you spend money in the new nation, you pay sales tax.
• The national sales tax encourages savings and investment.

The Single Disadvantage:

Those who wanted to avoid the sales tax would sell stuff as a non-retailer, just like people do today when they do personal sales transactions like at yard sales.

There is no way to estimate the revenue that would flow from a national sales tax for any new nation. First, we’d have to know which state it was that seceded. Then, possibly some estimates could be made based upon the economic output of that state at the time of the secession. But a new national sales tax would be a game-changer for this new nation. What individuals or businesses would not LOVE the abolition of all other taxes and the establishment of the sales tax?

I predict that the economy of the new nation would explode with growth and prosperity. Capital from all over the planet would flow into the new nation as individuals and businesses sought the stability of this government and its monetary system.

The national sales tax as the sole method of taxation radically simplifies the taxation process while bringing taxation out into the light of day. It promotes transparency in the new government. Between the sales tax and the gold standard, it affords the new nation the freest economy in North America…arguably the freest economy in the world.

Secession is the hope for mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


Why Government Shouldn’t Build Roads

August 25, 2010

by Linda Brady Traynham

(Editor’s Note: This week is Linda Brady Traynham Week. Linda has been making comments here for a while. I like her writing style and her content is outstanding. She writes about Texas liberty issues and other stuff that engages her mind…just like your un-humble Editor. I am confident you’ll enjoy this week’s offerings.)

Dr. William Anderson’s superb article concerns a subject some of the Shooters and I have been kicking around recently. Our focus was on why governments shouldn’t build roads at all, part of which is that it is always inefficient to filter money through some bureaucracy. Between waste, the misallocation of funds to pay for the departments and personnel, inferior products, social engineering, and the inevitable corruption when tax dollars are being scattered around “public” roads are a very poor solution to the problem of how to move traffic from points A through Z.

As is always the case, unfettered private enterprise and a free market would be less expensive, generate real profits, and lead to better roads that reflected the true needs of traffic. Toll roads are also how the Founding Fathers dealt with problem.

Let’s break this down into individual categories, starting with where we live. As a pretty general rule residential streets are in good shape because there is little traffic. Developers build the roads in new areas so it would be prudent of new home buyers–should there ever become a good supply of those–to consider the quality of the streets which come, basically, as part of their purchases. It might be possible to negotiate upkeep for twenty years, which would give the developer an even stronger urge to insist upon quality.

What about those who live in older areas? What to do when a chug hole develops? When there is a market, someone will provide a service, and having the hole that is bothering you (and your neighbors) filled and paying for it will be a great deal more cost-effective than the current system. There are any number of paving companies which pave driveways in rural areas, and I am certain they would be glad to come dump a little hot, gritty asphalt in your depression at a price that only seems exorbitant until you consider the million dollar a mile roads that governments build. It is likely that someone would come up with a DYI product sold at Lowe’s and Home Depot.

The condition of the road in front of your home is of interest only to those who live on your street. Why should public tax dollars be spent to keep them in good condition? Not that the system works very well. Others may be paying to keep your Mockingbird Lane in acceptable condition, but you are paying for a great many other roads. We never get more than we pay out back; earmarks go to the “in” crowd.

Farm to market roads? Once again, those should be the responsibility of those who use them. There aren’t enough small farms and ranches left in America to speak of–some 2.1 million farms are all that remain due to high inheritance taxes and regulations in favor of Archer Daniel Midlands, Tyson, and so forth. That’s pretty frightening. FDR had a population of 125 million to feed and over five million farms to do it with. Agribiz is in big trouble with the cost of fuel, labor, power, feed, fertilizer, taxes, and government mandates. Too many of my neighbors are planting houses where dairy and beef cattle once grazed. However, roads hold up remarkably well when not subjected to traffic from heavy vehicles.

My theory is that people can and will put up with a deteriorated road until it becomes annoying enough to pay to have it fixed or to master the skills necessary to do their own repairs.

City streets? Again, those usually show little wear from regular vehicular traffic, and if the roads deteriorate to the point where customers flee, the merchants will see the wisdom of making repairs. If we pulled up the statistics on taxes budgeted to build streets and even highways we would be astounded by how much more money we taxpayers could keep if the government were forced out of the road-building and repair businesses.

Now we come to the big two, interstates and new construction. There are already “road use” taxes and a modest toll system should provide ample to keep current major links in repair. Whatever made anyone think that roads should be “free?!” Very little in life is free; we pay for it one way or another. At present those of us who pay taxes are subsidizing in yet another way those who do not for things that we neither want nor use most of the time.

Recently my darling Charles and I had to go to Houston (always a nightmare) to pick up something. We had a very frustrating experience on what should still be the wave of the future; a similar system is growing in at least the D/FW area. The problem with Tollway 8 is…it is very difficult for a one-time user to get on! Those who use this high speed marvel have a little sticker that is read automatically and they receive a bill for road use once a month. The traffic whizzes along, and the exits are well constructed not to lead to backups. About every third entrance there is a kiosk that sells the stickers, which was not practical in our case because we hope devoutly never to be on Tollway 8 again. Those are usually near an entrance that will allow the occasional traveler to hand over money–and access to these booths is designed splendidly so that they do not impede the other traffic. Our GPS was having a nervous breakdown insisting that we should get up on the tollway, not realizing that we were not allowed to. Tollway 8 has no silly “HOV” lanes, choosing–wisely–not to reduce the carrying capacity of their expensive investment in a futile attempt to force users to car pool. If there are three lanes an HOV restriction reduces capability by one-third; four lanes see the loss of a quarter of capacity and produces bottle necks when the HOV lane ends. Insanity.

What of those who do not wish to trade money for speed? It is still quite possible to traverse those miles on suburban streets. You pays your money or you takes your chances. In many areas it is faster to stick to city streets than it is to get on the “free” way. When John and I lived in Derby (a bedroom community near Wichita, Kansas) his truck went for service to a dealer on the far side of Wichita. John always took the freeways, while I always used ordinary roads. Invariably we ended up at the dealership in a dead heat! And no, I do not exceed the speed limit, ever.

The sad truth is that there are entirely too many people and far too many vehicles, a situation beyond repair other than in the minds of those who want to see the population of the earth reduced to a permanent maximum of five hundred million. No, friends, that isn’t conspiracy theory; I saw the speech in the UN where some sanctimonious female promised to “kill (us) as kindly and gently as possible.” Isn’t that sweet? How very thoughtful. Who chooses?

Government “planners” seldom put roads where they need to be. One of the major difficulties in Wichita, for example–it is possible this has been corrected in the nearly twenty years since I have been there–is that it is laid out almost entirely on a grid system. There was only one major diagonal road! Their planners hadn’t taken into account that the square of the hyptenuse is the way to reduce the swear words on the other two sides. Hard, clear-eyed entrepreneurs would work out which new roads would be the most profitable because that is where people want improved ease of travel enough to pay for it.

I only see one problem, but I am certain there is a solution if we troubled ourselves to work it out. I don’t approve of eminent domain anyway–and recent scandals bear out my scorn. No doubt James Howard Kunstler knows and might even be induced to tell us. Private corporations would have no power to force others to sell their land–and rightly so. This may mean that the solution is to build toll roads further out, encouraging flight from the cities. Perhaps it is selling the current freeway systems to private individuals who will make them function more efficiently, while raising a nice hunk of cash to reduce the debt. Perhaps social pressure would suffice to induce those who didn’t want to move to cooperate, or some deal could be made to swap nicer foreclosed upon homes for where the residents are now. Where there’s a profit there is a way.

Linda Brady Traynham is a former editor and analytical project report writer and is now a Whiskey & Gunpowder field correspondent on a ranch in the Republic of Texas. She studied Counseling at Boston University and got her Masters degree in Philosophy from the University of Hawaii.


Learn About the Oregon CAFR: Prepare to be Shocked

June 22, 2010

Editor’s note: Walter Burien sent me this email yesterday. It contains a copy of a letter he sent to Oregon Representative Bruce Hanna. Then follows the analysis.

I know that this article will bore some of you to death. But some of you have read my previous postings about Walter Burien and just didn’t get the seriousness of the issue.

Ladies and Gentlemen, there is no reason whatsoever that American citizens should suffer taxation any longer. The vastness of the wealth controlled by governmental bodies staggers a reasonable mind.

If you are one of the people dismissive of this information, you are still living in a fog. I pray that your fog lifts soon.

* * * * * * * *

TO: Representative Bruce Hanna
R-Roseburg – District 7
900 Court St. NE, H-395
Salem, OR 97301

Tel. (503) 986-1407

Rep. Hanna:

The following is an Audit Review of the 2003 Oregon CAFR (10.9 billion potential surplus identified).

In your recent statements your comments from the Oregon House Floor per OR identifying “a “surplus revenue source from within the CAFR, the following is a more in-depth ‘Comprehensive’ review of Oregon’s State 2003 CAFR.

An audit of the 1,000 + “other” local government’s CAFRs “in” Oregon that are separate from the state report would dwarf the $10.9 billion dollar potential surpluses shown for and from the State level Government accounting.

Please share this communication with your other members of the house and your press contacts for their review.

Sent FYI from,

Walter Burien – CAFR1.com
P. O. Box 2112
Saint Johns, AZ 85936

Tel. (928) 445-3532

* * * * * * * * *

Now, go to:http://CAFR1.com/Oregon.html to read the remaining portion of the article. You will be SHOCKED to learn how much money Oregon has squirreled away. And remember, Oregon’s population is only 3.8 million. Can you imagine the wealth controlled by their southern neighbor, California, with over 36 million residents?

DumpDC. Six Letters That Can Change History.

Copyright 2010 Russell D. Longcore


Cracking the Silence About CAFR Assets

June 21, 2010

Editor’s Note: Folks, I’m telling you that this could be the the biggest story in American history. You cannot afford to be ignorant about CAFR assets. They could free you from taxation FOREVER.

Oregon finally blew the lid of “silence” concerning the hidden assets, which are hidden in the accounts of every state under the Comprehensive Annual Financial Reports. I accessed the CAFR for my state, county, and school district in 1998. The school system alone had stashed away $27,000,000. All of these accounts are in the Bank of New York, according to a faxed response in my files from my State Treasurer. The accounts are all maintained by your State Treasurer, and you can access the accounts online.

This video is the first time a state legislator has admitted they exist. The SC Investment Pool declared in the State Investment Pool booklet the following statement: “Pursuant to Section 6-6-10 of the State of South Carolina Code of Laws, the State Treasurer established in May 1983, the South Carolina Local Government Investment Pool (the “Pool”), an investment trust fund, in which public monies in excess of current needs which are under the custody of any county treasurer or the government body of any municipality, count, school district, regional council of government or any other political subdivision of the State may be deposited.”

Bottom line: The legislators OVER TAXED us on purpose and took the money, accrued unreported interest, and are not disclosing the activity. They lied . . . every time they are asked about the accounts, they declared “that is a rainy day account.” Oh yeah? It is undisclosed. It is used without reporting. The interest disappears into thin air.

Finally, the legislators are desperate enough to admit the funds exist. Watch the Silence is Golden. It is time to learn how the originally Whistleblower on this activity, Walter Burien, suggests that the money be used . .. to end all taxes … forever.

FYI,
R.E. Sutherland, M.Ed./sciences
Freelance Investigative Reporter
contact: becworks@gmail.com

YOU MUST WATCH this 3 minute video – Breaking the “Silence is Golden” rule right from the floor of the Oregon House.

Silence is Golden


The Fair Tax Bites

June 15, 2010

I recently read an article posted at Tim Baldwin’s Liberty Defense League entitled How To Castrate The IRS, written by Lance Voorhees. The article promotes the so-called “Fair Tax” presently being shilled by radio talking head Neal Boortz and Georgia Congressman John Linder.

The Fair Tax bites. Most people like to say that something they don’t like sucks. But in my personal experience, sucking is good. It’s biting that I don’t like. Sucking on a Tootsie Pop is great, but you could break a tooth biting one. Sucking a refreshing beverage though a straw works well unless you bite the straw. And, in the best example of all…marital relations involving sucking are highly superior to biting.

But I digress.

Here are compelling reasons to reject the Fair Tax.

First: the Fair Tax is a consumption tax…a retail sales tax…that is meant to replace the personal income tax. Nothing wrong with that idea. The tax is levied as a percentage of the amount of a purchase transaction…when you buy something. But they want this sales tax to be a 23% tax! That’s 23% tax independent of any state or local sales tax. Here in Georgia, that would mean 23% plus between 5% and 8%, depending on the county or city your transaction would occur in. In the City of Atlanta, you would face a total tax of 31%! Make a $100 purchase and add another $31 of tax.

Second: The cheerleaders say the Fair Tax is “revenue neutral.” That means the Federal Government would collect roughly as much revenue with the Fair Tax as with the income tax. NOTHING is said about cutting Federal spending one dollar! Shouldn’t THAT be talked about BEFORE changing the method of taxation?

Third: No taxation for a family of four earning below the Federal “poverty threshold” of $29,140. That means that EVERY American would begin receiving a DC check for spending up to the poverty level. Now the entire population would be getting a government check. Even the wealthiest billionaires would get a rebate check for the tax on their first exempt income. But with a 2010 deficit of $2 Trillion, where is this money supposed to come from? Certainly not from Fair Tax revenue. The money will be fiat money, backed by nothing, simply printed up by the Federal Reserve and injected into the economy.

Fourth: Voorhees calls this a “Lifestyle Tax” and an “equitable system.” But what’s equitable about a system that creates an underclass of more Federal welfare recipients? What is equitable about a tax that exempts a certain group of people, while the remaining people subsidize the exempt group? There is NOTHING equitable about the Fair Tax.

Fifth: I don’t see Voorhees dealing with the large-ticket purchases like homes, autos and such. Are we to expect to pay an additional 23% on those purchases? If not, then some exemptions are going to be made. That is the beginning of another tax code, in which some receive benefits at the expense of others.

Sixth and finally: The entire Fair Tax controversy revolves around keeping Washington “as is.” Washington suffers no penalty for its profligacy and criminality. And, as I showed in Texas Secession: A New Nation Without Taxes?, no income tax or any other taxation needs to be collected by Washington from Americans. DC already controls enough wealth to pay off the entire national debt and continue operations without further taxation.

No, people like Boortz and Linder are still big-government lackeys, bowing and scraping before the DC criminals with fawning unworkable suggestions. I’m not sure about Voorhees.

Here’s a suggestion for a WORKABLE change: SECESSION.

Secession returns governance to the states, and ends Federal tyranny. No Federal taxation, no Federal debt, no Federal regulations, no Federal mismanagement. You don’t have to ask permission to secede. You just have to do it.

Don’t you think it would be easier, simpler and more manageable to have your only governmental unit on a local basis instead of in Washington DC? Even though all government is force, local force is more palatable than Federal force.

Secession is the Hope for Mankind. Who will be first?

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.


50 Statistics About The U.S. Economy That Are Almost Too Crazy To Believe

June 7, 2010

courtesy of End of The American Dream Blog

(Editor’s Note: Each of the 50 stats listed has links in it. I don’t have time to cut and paste the links. If you want to see all the links in the original article, Go HERE.)

Most Americans know that the U.S. economy is in bad shape, but what most Americans don’t know is how truly desperate the financial situation of the United States really is. The truth is that what we are experiencing is not simply a “downturn” or a “recession”. What we are witnessing is the beginning of the end for the greatest economic machine that the world has ever seen. Our greed and our debt are literally eating our economy alive. Total government, corporate and personal debt has now reached 360 percent of GDP, which is far higher than it ever reached during the Great Depression era. We have nearly totally dismantled our once colossal manufacturing base, we have shipped millions upon millions of middle class jobs overseas, we have lived far beyond our means for decades and we have created the biggest debt bubble in the history of the world. A great day of financial reckoning is fast approaching, and the vast majority of Americans are totally oblivious.

But the truth is that you cannot defy the financial laws of the universe forever. What goes up must come down. The borrower is the servant of the lender. Cutting corners always catches up with you in the end.

Sometimes it takes cold, hard numbers for many of us to fully realize the situation that we are facing.

So, the following are 50 very revealing statistics about the U.S. economy that are almost too crazy to believe….

#50) In 2010 the U.S. government is projected to issue almost as much new debt as the rest of the governments of the world combined.

#49) It is being projected that the U.S. government will have a budget deficit of approximately 1.6 trillion dollars in 2010.

#48) If you went out and spent one dollar every single second, it would take you more than 31,000 years to spend a trillion dollars.

#47) In fact, if you spent one million dollars every single day since the birth of Christ, you still would not have spent one trillion dollars by now.

#46) Total U.S. government debt is now up to 90 percent of gross domestic product.

#45) Total credit market debt in the United States, including government, corporate and personal debt, has reached 360 percent of GDP.

#44) U.S. corporate income tax receipts were down 55% (to $138 billion) for the year ending September 30th, 2009.

#43) There are now 8 counties in the state of California that have unemployment rates of over 20 percent.

#42) In the area around Sacramento, California there is one closed business for every six that are still open.

#41) In February, there were 5.5 unemployed Americans for every job opening.

#40) According to a Pew Research Center study, approximately 37% of all Americans between the ages of 18 and 29 have either been unemployed or underemployed at some point during the recession.

#39) More than 40% of those employed in the United States are now working in low-wage service jobs.

#38) According to one new survey, 24% of American workers say that they have postponed their planned retirement age in the past year.

#37) Over 1.4 million Americans filed for personal bankruptcy in 2009, which represented a 32 percent increase over 2008. Not only that, more Americans filed for bankruptcy in March 2010 than during any month since U.S. bankruptcy law was tightened in October 2005.

#36) Mortgage purchase applications in the United States are down nearly 40 percent from a month ago to their lowest level since April of 1997.

#35) RealtyTrac has announced that foreclosure filings in the U.S. established an all time record for the second consecutive year in 2009.

#34) According to RealtyTrac, foreclosure filings were reported on 367,056 properties in March 2010, an increase of nearly 19 percent from February, an increase of nearly 8 percent from March 2009 and the highest monthly total since RealtyTrac began issuing its report in January 2005.

#33) In Pinellas and Pasco counties, which include St. Petersburg, Florida and the suburbs to the north, there are 34,000 open foreclosure cases. Ten years ago, there were only about 4,000.

#32) In California’s Central Valley, 1 out of every 16 homes is in some phase of foreclosure.

#31) The Mortgage Bankers Association recently announced that more than 10 percent of all U.S. homeowners with a mortgage had missed at least one payment during the January to March time period. That was a record high and up from 9.1 percent a year ago.

#30) U.S. banks repossessed nearly 258,000 homes nationwide in the first quarter of 2010, a 35 percent jump from the first quarter of 2009.

#29) For the first time in U.S. history, banks own a greater share of residential housing net worth in the United States than all individual Americans put together.

#28) More than 24% of all homes with mortgages in the United States were underwater as of the end of 2009.

#27) U.S. commercial property values are down approximately 40 percent since 2007 and currently 18 percent of all office space in the United States is sitting vacant.

#26) Defaults on apartment building mortgages held by U.S. banks climbed to a record 4.6 percent in the first quarter of 2010. That was almost twice the level of a year earlier.

#25) In 2009, U.S. banks posted their sharpest decline in private lending since 1942.

#24) New York state has delayed paying bills totalling $2.5 billion as a short-term way of staying solvent but officials are warning that its cash crunch could soon get even worse.

#23) To make up for a projected 2010 budget shortfall of $280 million, Detroit issued $250 million of 20-year municipal notes in March. The bond issuance followed on the heels of a warning from Detroit officials that if its financial state didn’t improve, it could be forced to declare bankruptcy.

#22) The National League of Cities says that municipal governments will probably come up between $56 billion and $83 billion short between now and 2012.

#21) Half a dozen cash-poor U.S. states have announced that they are delaying their tax refund checks.

#20) Two university professors recently calculated that the combined unfunded pension liability for all 50 U.S. states is 3.2 trillion dollars.

#19) According to EconomicPolicyJournal.com, 32 U.S. states have already run out of funds to make unemployment benefit payments and so the federal government has been supplying these states with funds so that they can make their payments to the unemployed.

#18) This most recession has erased 8 million private sector jobs in the United States.

#17) Paychecks from private business shrank to their smallest share of personal income in U.S. history during the first quarter of 2010.

#16) U.S. government-provided benefits (including Social Security, unemployment insurance, food stamps and other programs) rose to a record high during the first three months of 2010.

#15) 39.68 million Americans are now on food stamps, which represents a new all-time record. But things look like they are going to get even worse. The U.S. Department of Agriculture is forecasting that enrollment in the food stamp program will exceed 43 million Americans in 2011.

#14) Phoenix, Arizona features an astounding annual car theft rate of 57,000 vehicles and has become the new “Car Theft Capital of the World”.

#13) U.S. law enforcement authorities claim that there are now over 1 million members of criminal gangs inside the country. These 1 million gang members are responsible for up to 80% of the crimes committed in the United States each year.

#12) The U.S. health care system was already facing a shortage of approximately 150,000 doctors in the next decade or so, but thanks to the health care “reform” bill passed by Congress, that number could swell by several hundred thousand more.

#11) According to an analysis by the Congressional Joint Committee on Taxation the health care “reform” bill will generate $409.2 billion in additional taxes on the American people by 2019.

#10) The Dow Jones Industrial Average just experienced the worst May it has seen since 1940.

#9) In 1950, the ratio of the average executive’s paycheck to the average worker’s paycheck was about 30 to 1. Since the year 2000, that ratio has exploded to between 300 to 500 to one.

#8) Approximately 40% of all retail spending currently comes from the 20% of American households that have the highest incomes.

#7) According to economists Thomas Piketty and Emmanuel Saez, two-thirds of income increases in the U.S. between 2002 and 2007 went to the wealthiest 1% of all Americans.

#6) The bottom 40 percent of income earners in the United States now collectively own less than 1 percent of the nation’s wealth.

#5) If you only make the minimum payment each and every time, a $6,000 credit card bill can end up costing you over $30,000 (depending on the interest rate).

#4) According to a new report based on U.S. Census Bureau data, only 26 percent of American teens between the ages of 16 and 19 had jobs in late 2009 which represents a record low since statistics began to be kept back in 1948.

#3) According to a National Foundation for Credit Counseling survey, only 58% of those in “Generation Y” pay their monthly bills on time.

#2) During the first quarter of 2010, the total number of loans that are at least three months past due in the United States increased for the 16th consecutive quarter.

#1) According to the Tax Foundation’s Microsimulation Model, to erase the 2010 U.S. budget deficit, the U.S. Congress would have to multiply each tax rate by 2.4. Thus, the 10 percent rate would be 24 percent, the 15 percent rate would be 36 percent, and the 35 percent rate would have to be 85 percent.
* * * * * * * * * * * * * * *

Do you see 50 reasons for secession here? Remember…every one of these statistics grips AMERICA in a death grip. Secession dissolves EVERY SINGLE ONE of these, and the seceding state is FREE!

Secession…WITHOUT TAXATION…is the Hope for Mankind.

DumpDC. Six Letters That Can Change History.

© Copyright 2010, Russell D. Longcore. Permission to reprint in whole or in part is gladly granted, provided full credit is given.