Category Archives: Taxation

Ron Paul Will Never Be President But He HAS Made a Difference

Those who support the establishment of the Republican Party tend to be irritated that Ron Paul’s supporters kept trying to put his name up for nomination against Mitt Romney at the convention in Tampa even though Paul had no realistic chance of winning. Even very early in the campaign, establishment whores such as Hugh Hewitt were arguing that Ron Paul along with Herman Cain and Gary Johnson should be “exiled” from the debates because they didn’t have “a prayer of winning” the nomination. But are political campaigns, especially presidential campaigns, only about winning the nomination and ultimately, the presidency?

As someone who supported Ron Paul in the primary, I believed his winning the nomination would be the greatest upset in political history to say nothing about becoming the next president. When Terry Moran asked Paul the question: “When you lay your head on your pillow at night, do you see yourself in the Oval Office?” Paul replied “not really.” This is not a typical response of someone who is making a serious run for president.

This isn’t to say in any way that Ron Paul was not making a serious run for president, I think he was. Paul made three unsuccessful runs for the presidency but has succeeded in changing the political conversation. He advanced the ball in ways that he otherwise would not have had he not made these runs for the White House.

The most obvious example of how Paul has changed the political debate would be his call for a full audit of the Federal Reserve. As recently as 2006, the following was written about the Federal Reserve in a book by Richard Brookhiser entitled What Would the Founders Do (Our Questions, Their Answers)*

Everyone likes the Federal Reserve System these days, partly because it seems to work so well. (Not one person in a thousand ever thinks of it, a rough definition of working well.) But suspicion of public banks could revive at any time, for the same reasons that many of the founders were suspicious of them — most people (the founders included) do not understand banks or banking, and some bankers are in fact crooks. (p.92)

Back when this paragraph was written, I don’t think the Federal Reserve was even on my radar and I don’t think I was alone. Maybe the Fed isn’t the top issue for the average voter even now but I do think it’s safe to say more people are skeptical of the Fed especially in the era of bailouts and quantitative easing (i.e. printing money out of thin air). The mere mention of Ben Bernake or the Fed, especially at Ron Paul or liberty oriented rallies bring about boos and chants of “End the Fed!” “End the Fed!” This in of itself isn’t that big of a deal; these are true believers. What is a big deal, however; is that language to audit the Fed has made its way into the 2012 Republican Party Platform. Even more importantly, Paul’s Audit the Fed bill passed the House by an overwhelming 327-98 vote margin. Every single Republican but one supported the legislation along with 89 Democrats.

The bill wasn’t brought to a vote in the Senate but pressure will mount on Harry Reid if the Democrats maintain control to schedule a vote. If the Republicans take the Senate, a vote is even more likely to happen and Audit the Fed would be more likely to pass. If it gets to the president’s desk, the president – be it Obama or Romney will sign the bill, I believe.

A bipartisan bill authored by Ron Paul – who would have thought?

Ron Paul, one man who prior to the 2008 campaign wasn’t a household name, has changed the conversation within the G.O.P. concerning the Fed, spending, constitutional government, taxation, and civil liberties. Though his delegates were mistreated in Tampa, the RNC saw fit to at least try to mollify them with this tribute to the congressman’s career.

Missing from the tribute video was Paul’s anti-war/anti-interventionist views that he has espoused throughout his political career. Paul challenged people to do their own research concerning American foreign policy, particularly in the Middle East. He openly challenged the notion that policing the world trying to “make the world safe for democracy” and nation building was in America’s national security interest. Though the Neocons and war hawks are still firmly in control of the G.O.P., more voices in the party are challenging the prevailing view and cautioning Americans about blowback – a term invented by the C.I.A. but popularized by the Texas congressman.

Most important of all, Ron Paul is leaving a legacy behind him as he retires from congress. What will become of the rEVOLution in his absence? A small but growing number of individuals are being elected to the House and the Senate who share many of Paul’s small government/pro-liberty views. Ron Paul’s son Sen. Rand Paul along with Sen. Mike Lee, Sen. Mark Kirk, Rep. Justin Amash among others will lead the movement into the future. If the Paul activists continue to fight the establishment from inside** the G.O.P., there is at least a chance that the party will actually live up to its more small government ideals it purports to stand for.

*Basic Books, New York.

**While I understand why some Paul supporters might be tempted to leave the party due to how they have been treated by the party establishment, I would advise against this. The G.O.P. is ripe for a hostile takeover BUT the establishment isn’t going to give up control so easy. If you drop out, you are allowing them to win; this is precisely what they want you to do. Don’t give them the satisfaction. Focus on the Senate, House, and races at the state and local levels and vote your conscience for president (the wonderful thing about voting is that you don’t have to tell anyone who you voted for). After this election, regroup and continue to fight for liberty.

What if President Obama Told Michael Phelps “You Didn’t Win That”?

Like many people, I found the idea that athletes for Team USA receiving a tax bill for any prize money that goes along with a gold, silver, and bronze medal an outrage. These athletes worked very hard to get where they are. They made sacrifices. They spent many hours getting their bodies in shape so they might one day stand on the podium. Why should the IRS get one cent from any of this?

When I first learned of the bipartisan effort to correct this outrage with a bill dubbed the Olympic Tax Elimination Act, a tax cutting measure President Obama actually says he will sign, my first thought was that this is something all Americans should support. After giving this some additional thought, however; I couldn’t help but think of President Obama’s “you didn’t build that” line when he was extolling the virtues of government and how those who have been successful are only successful because “somebody else helped out along the line.”

If President Obama was being consistent, rather than supporting the Olympic Tax Elimination Act, he would say something like the following:

If you were successful, somebody along the line gave you some help. There was a great coach somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to reach your athletic potential. Somebody invested in roads and bridges that your parents drove on to take you to practices and competitions. If you’ve got an Olympic medal, you didn’t win that. Somebody else made that happen.

Notice, the above sentences are exactly what Obama was saying about successful business people except I replaced the business references with athletic references. Now imagine the president actually saying that these world class athletes didn’t earn these medals and that someone else “made that happen.” How would most logical thinking people respond to such a nonsensical statement? Even in this “everyone gets a trophy because everyone’s a winner” culture we have now, I would expect that most people would be put off by the president’s lack of appreciation for all the hard work that goes into becoming an Olympian who has reached the full potential of human athleticism.

What the president and his supporters fail to understand is that it’s not just Olympic athletes who work very hard to be the best at what they do. Businessmen and businesswomen who aspire to achieve the American dream make sacrifices, spend many hours educating themselves, and take risks so they might someday be financially secure. Why aren’t these job creators worthy of being celebrated like athletes representing Team USA? Why don’t these entrepreneurs deserve a tax break?

While I still support the Olympic Tax Elimination Act, I would prefer to one day see an Income Tax Elimination Act in my lifetime. No one should be taxed on earnings regardless of whether the earnings come from cleaning a swimming pool or from cleaning up with gold medals at the London Olympic Games in most of the swimming events.

Taxpayers made that happen

By now, everyone has heard Barack Obama’s “you didn’t build that” line:

If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business. you didn’t build that. Somebody else made that happen. The Internet didn’t get invented on its own. Government research created the Internet so that all the companies could make money off the Internet.

That quote? It’s fiction. There is no mythical “somebody else”. There is no class of people separate from entrepreneurs and workers who created those things. The political elite would claim otherwise, as Obama does. They claim they built those and we owe them fealty for that.

The truth is obvious. That government? Those public works? They didn’t build those. That research? They didn’t fund that. Taxpayers made that happen.

Recovered from the Memory Hole: Sen. Obama Opposed to the Individual Mandate in ‘08

“If a mandate was the solution, we could try that to solve homelessness by mandating everybody buy a house. The reason they don’t have a house is they don’t have the money.” – Sen. Barack Obama during the 2008 Democrat Primary.

A long, long, time ago, way back during the 2008 primaries, then Sen. Barack Obama attacked then Sen. Hillary Clinton and Sen. John Edwards for the mandate provisions of their respective healthcare plans. Sen. Obama went on to explain how the RomneyCare mandates were not helping indigents in Massachusetts acquire the healthcare they needed leaving some without health insurance and paying the fine.

Fast forward to the present: President Barack Obama’s signature legislation, the so-called Affordable Care Act (A.K.A. ObamaCare, modeled after RomneyCare) is upheld by the Supreme Court, the main question being whether or not the federal government can force mandate individuals to purchase a product. Meanwhile on the Republican side, with about a dozen or so candidates to choose from in the course of the 2012 campaign, Gov. Mitt Romney will be the G.O.P. nominee who pledges to repeal ObamaCare if he is elected the next President of the United States. Mitt Romney, the man behind the very policy that Obama criticized and now embraces at the federal level.

Now isn’t politics fun!

Did Justice Roberts Help Romney and Provide a Path to Repeal ObamaCare?

Over at Red State, Erick Ericson theorizes that Chief Justice John Roberts joined the majority opinion as a way to put ObamaCare back into the hands of the political branches to decide the law’s fate:

The Democrats have been saying for a while that individual pieces of Obamacare are quite popular. With John Roberts’ opinion, the repeal fight takes place on GOP turf, not Democrat turf. The all or nothing repeal has always been better ground for the GOP and now John Roberts has forced everyone onto that ground. Oh, and as I mentioned earlier, because John Roberts concluded it [the individual mandate] was a tax, the Democrats cannot filibuster its repeal because of the same reconciliation procedure the Democrats used to pass it.

It seems very, very clear to me in reviewing John Roberts’ decision that he is playing a much longer game than us and can afford to with a life tenure. And he probably just handed Mitt Romney the White House.

Our own Doug Mataconis said he “would not be surprised to see it be a 6-3 decision” way back in April for the following reason:

Ordinarily, the most senior Justice in the majority gets to decide who writes the majority opinion. However, if the Chief Justice is in the majority he gets to make that decision. If Kennedy ends up voting to uphold the mandate then I could see Chief Justice Roberts joining him so that he can write the opinion himself and make the precedential value of the decision as limited as possible.

Erick Erickson also mentioned on his radio program that many conservatives and libertarians who aren’t thrilled with Romney as the nominee will put aside their objections and vote for him if it means repealing ObamaCare.

I hate to say it but I think Erickson has a point. ObamaCare being upheld is a game changer. Prior to this decision that was supposed to strike down all or part of ObamaCare, I was absolutely certain that I would enthusiastically vote for the Libertarian nominee Gary Johnson rather than settle for the lesser of the two evils. With ObamaCare being upheld, now I have to say I’m not so sure. I’m not normally a single issue voter but if ObamaCare isn’t stopped and soon, we will be stuck with it for at least a generation.

The problem is though, it might already be too late. Several things have to happen just right. First Romney must be elected and the GOP must take control of the Senate and hold the House. Second, we have to trust that Romney and the Republicans in congress will actually follow through. We’ve been disappointed before.

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