When a tax cut is not?
In order to have a perspective on this you need to view our country like
you would your family. Admittedly the country is a quite large “family”. You
are wanting to have more disposable income available but you can’t figure out
where you can cut back on your current expenses. You hope that your income will
increase over time, but you really do not have any guarantees. You decide to
borrow money to fund this desire and you count it as extra disposable “income”.
Is it really? Remember that you will eventually be required to pay back loan
and to make matters worse you will have to pay interest on this “income”. You
also decide that since you are the primary earner in your family that most of
this extra income should be at your disposal and you will only share a small
portion of this windfall with your remaining family members. This is exactly how the tax reduction
measure of 2017 worked for our larger family.
We decided to reduce our taxes by approximately $140 Billion a year, but
we did not address reducing any of our expenses. The theory was that this money
would be used by investors and consumers in a way that would boost the economy
and offset this “loan” through new taxes on “incremental” income (resulting
from a vibrant economy). Initially it
appeared that this theory might hold water (it did not when President Reagan
made a similar effort). The GDP rate picked up during 2018 and actually reached
4% during one quarter. However, that appears to have been a very short-term
reaction and 2018 should end up at 3%. This is a very good rate and at the top
end of what most economists believe is sustainable. The 2 – 3% range is
considered “healthy”. Higher rates have not been sustainable without fueling
higher rates of inflation. The trick is to maintain a moderate, sustainable (2
– 3%) rate of growth. The projection for 2019 is 2.5% and 2.0% for 2020. While
this is good is would be inaccurate to assume that it is the result of the tax
rate adjustment. “President
Trump promised to
increase economic growth to 4-5 percent. That’s faster than is healthy. Growth
at that pace leads to an overconfident irrational
That creates a boom
that leads to a damaging bust. The factors that cause
these changes in the business cycle
are supply, demand, capital availability, and the market’s perception of the
economic future.” The average rate from 2000 to 2017 has been 2.25%, despite
the 2008 disaster which was the result of prior loose banking regulations
fueling a glut of unreasonable loans. One
other noteworthy item regarding the tax cut is the distribution of the
approximate $140 billon of annual savings (actually borrowings). Who got the
money? Middle & lower class tax payers (incomes under the $183,000) only
received 1/3 of the total with the remainder
going to the wealthy. Like my small family example,
the wealthy have received the same benefit as my head of household!
The Ideal Candidate
In this week’s posting I am asking for a couple of special favors.
I have penned a “white paper” on The Ideal Candidate and is much too long to
include the entire narrative in this posting. My goal is to use it as the basis
in facilitating a grass roots movement. If consider yourself a moderate independent,
Republican, Democrat or a Libertarian I believe that you find the vast majority
of this candidates position to your liking.
What I am hoping is that you will use the
following drop box link to access the paper and take the time to read it (it is
quite long). If you believe that a candidate with this Presidential platform is
one that you would vote for in 2020, then please forward the drop box link to a
minimum of 10 of your friends via Facebook or any form of social media. When
you do this please ask them to: “Please take time to review the “white paper”
at the following drop box link https://www.dropbox.com/s/d6leve5mb43p6tg/IPC.pdf?dl=0.
If you believe that a candidate with this Presidential platform
is one that you would vote for in 2020, then please forward the drop box link to
a minimum of 10 of your friends via Facebook or any form of social media.” And do
so using the text inside of the preceding quotation marks (“…..”).
Discussion and solutions in the following areas
are included in the paper:
- Election & Term Reform
- The National Debt
National Defense, Security & Veteran support
- Tax Reform
- Income Security
- Energy Dependence
- Climate Change & the
- Immigration Reform
- Social Security & Medicare
- International Relations & Foreign
- Criminal Justice &
- Human Rights
- Gun Control
- Illegal & Prescription Drugs
- Population & Resources
- Right to Life
Many folks will consider this approach naïve and
they might be right. Going up against two heavily funded and entrenched Parties
will be extremely difficult. Consider that our current approach to selecting candidates
is the reason we find our country in such a mess. If each individual that reads
the paper is willing to take personal responsibility for change then we can do
The part of the favor will require you to
take some action. Obviously, the Ideal Candidate is now just hypothetical. That
leads me to the 2nd favor. I am asking you to take at least one more
of the following actions: 1. We need nominations for potential persons that are
willing to adopt the platform. If you would like to nominate an Individual
please send the nomination, with the word “Nomination” in the subject line, to firstname.lastname@example.org. Please
include the email address of the person you nominate. 2. If you have social
media skills and would be willing to volunteer your services please send an
email to email@example.com
with “Social Media” in the subject line. 3. If you are willing to assist with
the campaign in your state please send an email to firstname.lastname@example.org with “Volunteer”
in the subject line. Please include your state in the email.
The Patriot Amendment
Many of you are familiar with the reference to Amendment 28, which was,
while fictitious, did contain a few worthwhile provisions. Since the
legislature will never take corrective action it appears that the amendment
process is our only hope of repairing what ails our country, unless we can
elect a non-partisan President.
Our ailment begins with the election process as it is now structured. We
often hear that “we have the best representation that money can buy”. Elections
are almost entirely dependent on financing and the amount required is
outrageous. Outcomes are, in large measure, dependent on perception rather than
reality or facts. If elected to congress your primary focus, almost
immediately, is the next election.
I am firmly convinced that we could repair our broken system of governance
by strenuously reducing the influence of both “special” interests and election
funding. Along with reasonable term limits. Our founding fathers, in my
opinion, did not envision career politicians.
I am officially proposing
The Patriots’ Amendment to our constitution:
- No election campaigning, for a National position, can
commence prior to 180 days prior to the date of the election.
- Political Lobbying is abolished. Violations will be
subject to a minimum of $10 million in fines and termination of elected
representatives’ term for any participation.
- Per campaign donations are limited to $500 per individual
and $5,000 per company, trade and/or industry organization. If a company were
to “bonus” their employees with the intent to make a directed campaign donation
the company would be subject to a minimum $5 million in fines. These
limitations also apply to direct donations to a political party.
- House and Senate terms would be limited to a combined total
of 14 years.
- Retirement benefits would be limited to 1/40th
of their high salary times the years of elected service.
- Change the house terms from 2 to 4 years with 50% of the
positions up for election every 2 years (similar to Senate procedure) * Current
representatives will be grandfathered to a certain extent, yet to be
I realize there are several issues that could be
included, like requiring all elected officials to play by the same rules as the
voters, but I think we have a good chance of getting these issues addressed
through a non-compromised legislature.