Monthly Archives: October 2011

Peter Schiff to OWS: “I Am the 1% Let’s Talk”

Here’s a very fascinating video taken at New York’s Zuccotti Park where Peter Schiff has a dialogue with some of the Occupy Wall Street protesters. Schiff brought a sign that read “I Am the 1% Let’s Talk,” and talk they did.

One of the things that occurred to me watching this was how little true discussion is going on between the OWS movement and their critics. Notice how some of the protesters say things like “you rich people” or “you Republicans” etc. Just as its unfair for these protesters to lump everyone into these groups is a mistake, I think it’s also a mistake to assume that all of these protesters are clueless and don’t have some legitimate grievances.

Kudos to Peter Schiff for going out among the protesters and having this much needed conversation. There seems to be some common ground concerning these grievances; the real differences are what the solutions should be.

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The Challenge of Creating an Economically Sound, Simpler, and More Just Tax Code (Part 1 of 3)

If there is one positive thing Herman Cain has contributed to the national debate it would be this renewed discussion about tax reform. While I am skeptical of some of the specifics of his 9-9-9 plan, if nothing else, Cain has forced the other candidates to come out with proposals of their own. Gov. Rick Perry in a seemingly desperate move to remain relevant proposed an alternative 20% flat tax – a single rate that’s less than the sum of all of Cain’s 9’s.

Before I was aware of and became a supporter of the Fair Tax (a 23% consumption tax that would replace the income tax, payroll tax and all other federal taxes; Gary Johnson and Herman Cain* both support the Fair Tax) I was a supporter of the Flat Tax as proposed by Steve Forbes in his 2000 presidential bid. If we must be subject to an income tax, it seems only fair that everyone pay the same tax rate. None of these proposed plans are perfect but at least everyone is subject to the same rates.

But apparently my definition of “fair” differs quite a bit from those who think a “progressive” tax (i.e. the more you make, the more the government will take) is fair. Take this article from Politico for example:

Taxing the poor has become a badge of honor among conservatives. When Occupy Wall Street protesters launched their cry of “We are the 99 percent,” the right-wing blogosphere responded, “We are the 53 percent,” meaning the 53 percent of American households that they say pay federal income taxes.

Conservatives have become fixated on the notion that largely because of the Earned Income Tax Credit — passed under Ronald Reagan and expanded under Bill Clinton — almost half of all Americans pay no income taxes.

Perry launched his presidential campaign expressing dismay at the “injustice that nearly half of all Americans don’t even pay any income tax.” And he was not alone. Every major candidate — Rep. Michele Bachmann (R-Minn.), Mitt Romney and Cain — has suggested that too many of the working poor aren’t paying income taxes, a position The Wall Street Journal describes as “GOP doctrine.”

[…]

The argument is disingenuous. Working poor people do pay taxes. They pay a larger portion of their incomes in payroll taxes and sales taxes than the wealthy. And they pay property taxes indirectly in their rental costs. Poor workers pay about one-eighth of their incomes in taxes, on average.

For the sake of argument, I will assume that the author’s assertion is correct that the working poor pay a greater share of their incomes than the wealthy counting both direct and indirect taxes. Indeed there are all sorts of hidden taxes that are embedded in every good or service we all buy.

Regulations on business (which the author of this article undoubtedly supports) that contributes to the overall cost of employing a worker** are potential earnings the worker might otherwise be paid. » Read more

Quote Of The Day

Marks, Percy, “Under Glass”, Scribner’s Magazine Vol 73, 1923, p 47

The idea is, of course, that men are successful because they have gone to college. No idea was ever more absurd. No man is successful because he has managed to pass a certain number of courses and has received a sheepskin which tells the world in Latin, that neither the world nor the graduate can read, that he has successfully completed the work required. If the man is successful, it is because he has the qualities for success in him; the college “education” has merely, speaking in terms’ of horticulture, forced those qualities and given him certain intellectual tools with which to work-tools which he could have got without going to college, but not nearly so quickly. So far as anything practical is concerned, a college is simply an intellectual hothouse. For four years the mind of the undergraduate is put “under glass,” and a very warm and constant sunshine is poured down upon it. The result is, of course, that his mind blooms earlier than it would in the much cooler intellectual atmosphere of the business world.

A man learns more about business in the first six months after his graduation than he does in his whole four years of college. But-and here is the “practical” result of his college work-he learns far more in those six months than if he had not gone to college. He has been trained to learn, and that, to all intents and purposes, is all the training he has received. To say that he has been trained to think is to say essentially that he has been trained to learn, but remember that it is impossible to teach a man to think. The power to think must be inherently his. All that the teacher can do is help him learn to order his thoughts-such as they are.

Hat Tip: “JKB”, in a comment over at EconLog

TBD Names Doug Mataconis Among “The 51 D.C. Journalists with the Most Klout”

Liberty Papers contributor Doug Mataconis has been named by a D.C. website called TBD as one of “The 51 D.C. Journalists with the Most Klout.”

According to the website the criteria for making this distinguished list is as follows:

If Twitter is a popularity contest, then Klout is the judge. Using an algorithm that factors “true reach,” “amplification,” and “network impact,” the website assigns every tweep a score, on a scale of 1 to 100. It’s not perfect, but nonetheless, here’s how Klout scored notable members of D.C.’s press corps.

Doug made the list at number 46 with a score of 74. This is what the site had to say about Doug:

Doug Mataconis: 74
“Lawyer, libertarian, Yankee fan. Very Opinionated, ‘Hell bound sinner,’ blogger.” Sample tweet: “OMG the extent to which these people don’t understand what Senate Reconciliation means is incredible #EconDebate.” Followers: 5,456


In addition to writing here* at The Liberty Papers, Doug is a contributor to Outside the Beltway, writes at his own blog called Below the Beltway, and as mentioned above, very active on Twitter with an impressive following.

On behalf of all of us here at The Liberty Papers, congratulations Doug!

» Read more

Ron Paul Unveils “Restore America” Plan

LAS VEGAS – Republican presidential candidate Rep. Ron Paul unveiled his economic “Plan to Restore America” in Las Vegas Monday afternoon, calling for a lower corporate tax rate, a cut in spending by $1 trillion during his first year in office and the elimination of five cabinet-level agencies.”

[…]

Paul does get specific when he calls for a 10 percent reduction in the federal work force, while pledging to limit his presidential salary to $39,336, which his campaign says is “approximately equal to the median personal income of the American worker.” The current pay rate for commander in chief is $400,000 a year.

Based on Dr. Paul’s speech, there’s not a whole lot not to like. Cutting $1 trillion of government spending in the first year would be a very good thing IMO.

As a Gary Johnson supporter, I can’t help but get more than a little annoyed each time one of Paul’s supporters, member of his campaign staff, or the congressman himself makes the claim that Dr. Paul is the only candidate in the race who would balance the budget. Gov. Johnson has promised a balanced budget, not merely in his first term but in his first budget in virtually every debate, interview, and speech he has given since he announced his candidacy.

That criticism aside, I hope this plan is given serious consideration by the primary voters and debated among the candidates.

Herman Cain is Either a Liar or Has a Very Short Memory

Just when I was starting to give Herman Cain another look, he lies to Rep. Paul’s face in last night’s debate concerning comments he made concerning the need to audit the Federal Reserve.

Yeah, there goes crazy Uncle Ron again with these crazy misquotes he picked up off the internet!

I’m not sure if the crowd was laughing at Cain or Paul at this point but it wasn’t that difficult to find audio of his “misquotes” on YouTube from when he was guest hosting The Neal Boortz Show.

But this wasn’t the first time Cain has been busted on a flip-flop followed by an accusation that he was misquoted or received “misinformation”. The next example: Cain changes his mind as to whether the president can target an American citizen for assassination without due process.

The Flip:

The Flop:

I never said that [President Obama] should not have ordered [the killing]. I don’t recall saying that. I think you’ve got some misinformation. Keep in mind that there are a lot of people out there trying to make me sound as if I am indecisive.

I don’t know all of the compelling evidence that the intelligence agencies and the military had. I’m convinced — I’m convinced that they have enough intelligence information that said he’s a threat to the United States of America. You don’t try to prosecute or capture him simply because he’s a United States citizen.

What will he say when he is confronted with these audio and video clips? Would he have us believe that these were imposters?

If Cain would have said on either of these issues “You know, I after thinking about it a little more, I was wrong…” I might be able to respect that. But to accuse people who challenge him of misquoting him when it’s so easy to prove otherwise is disturbing to say the least.

Tweet of the Day: Newt Says Include Gov. Johnson Edition

Fairness requires Gov. Johnson to be included in tomorrow’s debate. I encourage Wash Post/Bloomberg to invite him.

-Former House Speaker & 2012 G.O.P. Presidential Candidate Newt Gingrich via Twitter.

Some Ron Paul supporters think Gingrich is hoping to split libertarian support by saying that Gov. Johnson should be invited to the debate. That could be but it’s also possible that the former Speaker is being sincere. Either way, Gingrich is right and Ron Paul’s supporters shouldn’t feel threatened. We are on the same team!

10 Years of Failed Nation Building Policy

Last Friday marked the 10 year anniversary of the U.S. attack and subsequent nation building in Afghanistan. Most Americans, myself included, felt the attack on the Taliban and al Qaeda in Afghanistan was a perfectly legitimate response to the 9/11 terrorist attacks. I doubt that most Americans would have supported a nation building mission creep that would continue a decade later, however.

This policy has cost a great deal in blood and treasure; how well has it worked? The foreign policy experts in the first video below from the Cato Institute report on where things stand right now in Afghanistan. Their conclusion: 10 years is enough.

The second video below from the Ron Paul campaign deals with nation building more generally and asks a very provocative question: How would Americans respond if the Chinese or some other foreign power started occupying our country with troops with their own nation building program?

Obama Breaks Medical Marijuana Promise; How will his G.O.P. Challengers Respond?

Nearly two years ago, President Obama’s Justice Department announced a hands off approach concerning the states that passed “compassionate use” laws which legalized selling and using marijuana for medical purposes provided that all parties concerned operated within the state’s law. This seemed to give those who wanted to go through the legal processes to either operate a dispensary or acquire the paperwork to use marijuana within state guidelines the green light to proceed without worrying too much about federal drug laws – at least as long as Obama was president. Now it seems that the Obama administration is changing this policy, leaving patients and suppliers who operated in good faith on very shaky legal ground.

According to The Associated Press, at least 16 California dispensary owners and landlords received letters putting them on notice that they must close down their operations within 45 days or face criminal charges and confiscation of their property.

In the same article, Kevin Sabet, a former adviser to the president’s drug czar is quoted as saying “This really shouldn’t come as a surprise to anyone. The administration is simply making good on multiple threats issued since President Obama took office.”

To be fair, I don’t recall ever reading anything from the administration that explicitly promised they wouldn’t prosecute individuals under federal law but it certainly seemed that at the very least, medical marijuana patients and providers would be a very low priority for prosecution. Patients and practitioners had to know that there would be at least some legal risks even with Obama in office and realize that the next president could just as easily change the policy.

This presents a very interesting opportunity to find out which G.O.P. presidential candidates are truly committed to the notion of federalism (especially where the Tenth Amendment is concerned) and those who are not. Rep. Ron Paul and Gov. Gary Johnson obviously favor ending the war on (some) drugs and would clearly restore state sovereignty on this and other issues. Gov. Rick Perry in his book Fed Up! (as quoted here) writes:

Again, the best example is an issue I don’t even agree with—the partial legalization of marijuana. Californians clearly want some level of legalized marijuana, be it for medicinal use or otherwise. The federal government is telling them they cannot. But states are not bound to enforce federal law, and the federal government cannot commandeer state resources and require them to enforce it.

Rick Santorum seems to be the least committed to the notion of state sovereignty as he pillories Gov. Perry for this and other positions regarding state laws he deems to be “moral wrongs.”

It’s certainly Gov. Perry right to believe marriage can be redefined at the state level, that marijuana can be legalized and that tax dollars should be used to give illegal aliens special college tuition rates, but that’s completely out of touch with what most Americans believe.

So says the man who is polling at 2.7% (RCP Average).

Regardless of what one thinks about medical marijuana legalization at the state level or federalism in general, those who find themselves in legal limbo deserve to have a clear answer to where they stand. The candidates should all agree that this vague, unpredictable policy is unacceptable.