1Declaration: Free Markets, Free People, Free Minds

In the Sunday April 20th, 2008 Opinion Page of the New York Times, an article was presented showing McCain as an irresponsible presidential candidate by wanting to cut taxes even more. McCain wants to make the Bush tax cuts permanent and to repeal the alternative minimum tax which would save American taxpayers over $1 trillion dollars in taxation that would be utterly wasted by an inefficient federal government on programs they have no Constitutional right to involve themselves in as it is. The opinion actually stated that these two tax cuts would reduce tax revenue to the government.

The Article points out that he wants to double the dependent exemption further reducing tax collections by $171 billion over the next 4 years, suspend the gasoline tax over the summer which would reduce taxes by $10 billion, and finally cut corporate taxes. The author of the article finally points out that McCain has given no way to make up these tax cuts except cutting out loopholes and McCain's favorite action to "cut pork-barrel" spending.

The author concludes that this is all political pandering to buy votes and McCain must go back to the drawing board to show how he would govern without adding to our fiscal problems.

Concluding with the authors opening thoughts. The author opens the article by stating the federal government will not be able to deal with problems of the future such as health care (not in the federal government jurisdiction - state and personal level), road and bridge repair (state and local level jurisdiction), and alternative energy (better handled by the free market, when the people demand it and when it can become economically viable without government subsidies it will occur).

The author of the article clearly misses the point that these issues are not in the federal governments jurisdiction (check the Constitution for your answer on this and then read the 10th Amendment, the answer to all these issues are there) and are all better left to the individual and state levels. Eliminating these costly programs would save Americans billions of dollars each year in unnecessary and inefficient government programs allowing Americans to invest more wisely and with much greater efficiency for their needs.

A little confusion seems to be out their with the Fair Tax so I will do a brief recap of the Fair Tax. The information is widely available for FairTax.org and numerous books.

The Fair Tax or HR 25 is a complete replacement of the current tax code. The Fair Tax will repeal all payroll, income, savings, investment, estate, gift, and death taxes. The Fair Tax is a 23% federal sales tax on the final purchase of any new item or service. Used items or items produced in the home are untaxed. The Fair Tax does not change any current government program like Social Security or Medicare. The only thing that changes are how taxes are collected.

Under the Fair Tax productivity and hard work are no longer penalized as taxes are no longer based off of your income. Likewise people are free to save and invest without paying taxes on the interest or resulting income from a stock, CD, or other investment related transaction.

Under the Fair Tax you will receive your full paycheck.

The Prebate:

Under the Fair Tax every citizen in the United States will receive a prebate each month to cover the taxes on spending up to the poverty level. The prebate is dependent only on family size and the current poverty level rate as determined by the Dept. of Health and Human Services (In some cases the poverty level is also dependent upon the state of residence). The prebate will be adjusted for the rate of inflation yearly in accordance with inflation changes by the poverty level.

Under that Fair Tax your income is not reported to the federal government. The only thing reported is your employment status by the company of employment to determine Social Security status.

To clarify. The Fair Tax prebate is not based on income. A single person with no children will receive $196 per month no matter their level of income. To the prebate size you would receive each month please visit FairTax.org prebate levels.

Since taxation is based on spending, those who spend more will pay more. If you don't spend above the poverty level you don't pay. A family that spends twice the poverty level will have a tax rate of 11.5 percent. As spending increases the rate of taxation will increase until the rate reaches 23% because of the prebate. Taxation is totally voluntary under the Fair Tax. Because of the prebate the Fair Tax is a progressive tax.

I hope this recap clarifies some misconceptions that have popped up about the Fair Tax.

Well I got too busy yesterday and really just forgot but I hope you had a Happy Tax Free Day. Yesterday was the first day of the year where you finished paying your federal income taxes and began earning your money. That's right! Up until yesterday April 23rd you were working to pay your taxes for the year.

If that makes you feel good I hate to think what makes you feel terrible.

With the Fair Tax you have the decision when and who to pay taxes to. If you don't like what the government is doing, stop spending. If you like what they are doing spend more. If you can't afford taxes you won't pay as long as you live within your means.

To find out how to change the tax system please review my blog or go to FairTax.org.

Hope is just a desire. Change can happen, but you have to make it happen.

I am torn right now between two candidates. One is a member of a party I identified with for my entire life (John McCain) and the other of as the potential nominee of the Libertarian Party of which I have just become a member. The decision is an important one and one that all Conservatives and Libertarians should consider if they truly support smaller government and individual liberty. The risks are large as a Democratic Presidency is very likely this year. The decision will be far from easy, as one will be a vote to keep the Democrat out of office while the other will be a vote based more on principal, and will not likely be resolved by myself well into the year, probably not until November.

Please take a moment to read this article by Bob Barr on his blog at bobbarr2008.com.

Light Up the Darkness
April 23, 2008 by Bob Barr

The time is drawing near for me to make a final decision on whether or not I will seek the presidential nomination of the Libertarian Party and run against John McCain and the Democrat candidate.

This decision does not come easy.

If I decide to run, not only will I be affected by the events of the next six months but my family, and those for whom I care, will be forced to sacrifice a great deal in their lives. Indeed, whatever the outcome of the election, my decision will impact the lives of my family for many years to come.

Powerful people and parties will do all that they can to discredit and discourage me and those close to me. As a matter of fact, this pressure has already started to a significant degree.

Just the other night, I discussed this matter with my friend, Russ Verney, who will be managing my campaign if I choose to run. Russ ran the campaigns for Ross Perot and witnessed firsthand what can and does happen when a credible, third party candidate enters the presidential arena.

Russ was completely candid with me and did not hold back on the tactics and strategies that will be used against me and my family.

This is both discouraging and infuriating, but it is a reality in today’s political climate. Anyone who dares to challenge the establishment, two-party system is bound to pay a price for such audacity.

While this factor alone hardens my resolve to seek the nomination, it also gives me pause in making a final decision.

In choosing my future path, I’ve thought back and imagined what some of my personal heroes would do in a similar situation.

One man I admire answers also to the name, “Bob.” He was a person possessed of a gift that allowed him to speak to and lift the spirits of other men and women with his words and music.

When watching a film one evening, I was reminded of an event in his life and how he inspired so many with what would normally have been an easy decision.

In December 1976, this other Bob, along with his family and friends, were rehearsing for an upcoming concert when gunmen burst into his home and opened fire.

Bob was wounded, with a round entering his chest and passing though his arm. His wife, Rita, had been struck with a bullet in the head while fleeing with their five children.

Both survived and were rushed to the hospital, treated and released a day later.

The following evening, the concert went on but, out of fear of further violence, without many of the acts that had been scheduled to play. Despite a realization that the main performer and others would most likely not appear, a crowd of 85,000 people managed to gather for the concert.

Not to be discouraged, Bob raced to the concert at the last minute and rushed onto the stage.

Wounded and more than likely staring at his own gunman in the crowd, Bob Marley promised the joyous audience, “just one song.” He and his wife Rita, wrapped in bandages, took the stage for 90 minutes.

Later, Bob was asked why he would go through the effort to perform just two days after being attacked. He answered simply, “The people who are trying to make this world worse are not taking a day off. How can I? Light up the darkness.”

I take faith in the brave words and actions of that man and his wife.

We live in increasingly dark times as the flames of liberty diminish with each new grasp at power by those who attempt to control our lives and our nation.

We have a responsibility to ensure that those flames burn brightly for others to see despite the overwhelming challenges that we face.

Because of those odds, it will take more than one man to carry a torch for liberty. It will take the tireless efforts of all of those who truly cherish freedom.

Only then can we light up the darkness.

In 2008, we will face a choice between two candidates, both of who seek to move us further away from freedom and toward increased government power.

Instead, I want to give our nation a choice for liberty.

My time for a decision is now, and I need to hear from you and know that I have your support today and when times get tough down the road.

In the coming days, call up a friend or talk to a neighbor to tell them about this race and the need for a pro-liberty candidate.

Not only do we have an opportunity to make in impact during this election year but I also believe we have an obligation to do so.

However, I cannot do this without your help.

Please do all you can — and together — we can carry a light of liberty to the people.

Hillary Clinton wins PA by 10% or over 214,000 votes with 96% of votes counted. This is great news for most Republicans as the race continues and the constant attacks of democrat on democrat will continue for the next few weeks and possibly months. Separation of the Democratic Party is increasing as recent polls have suggested the 26% of Clinton supporters would vote for McCain in the fall over Obama (the future nominee of the Democratic Party) and 13% would not even show up. A similar number of Obama supporters would be in the same boat if Clinton were to get the nomination.

Clinton has narrowed the popular vote lead down to around 500,000 tonight. 2 weeks from now when North Carolina and Indiana vote no real change will really occur. Obama will win North Carolina and Clinton will win Indiana making for a wash and continuing the primary further on into late May and into at least early June. Then comes the real entertainment.

Hillary will try to get Michigan and Florida delegates seated and will make an argument that the momentum in the election has changed and the she not Obama will be the stronger candidate because she has won the most important states, possibly tied the popular vote, and won the biggest states for the nomination. Momentum will likely be on her side but she will have to take a substantial number of super delegates to get the nomination something I don't expect to happen.

Obama will make the argument that according to the rules set forth that he has won the nomination, received the most popular vote (although a tie is possible), and most importantly has won more pledged delegates. If the nomination is taken from Obama, the Democratic Party will be irreparably damaged with major constituencies alienated.

The next few months should be fun. McCain is in good position right now. The one possible spoiler for McCain though is the Bob Barr factor, possible and likely nominee of the Libertarian Party, who recently polled in at getting 7% of the vote. Keep in mind he has had no national campaign yet and his numbers would likely increase due to alienated conservatives looking for a place for their vote. The one positive for McCain though and one that could potentially erase the Bob Barr factor is the Ralph Nader campaign. Recent polls have indicated that up to 17% of the Democrats would consider voting for Nader if their nominee does not get elected.

McCain is in solid position right now but he must capitalize on his strengths and minimize his weakness. This is an unusual situation though as McCain's expertise is foreign affairs where a very unpopular war comes into play. In order to win McCain must minimize his focus on the war and create a viable exit strategy that would allow for a further reduction in troop deployments. Americans as a whole want troops out but they want victory. This will be McCain's strength. McCain must create a strategy for exit of Iraq while still pushing for victory. Further, McCain must define what victory is and how it will be reached so troop levels can be drawn down in his first 4 years in office. If he can do this McCain should be able to minimize the affects of an unpopular war and the unpopular Republican President George W Bush and go on to win the presidency.

Secondly, McCain must pick a solid choice for VP that would help reintegrate alienated conservatives. The pick should be from a state that would not normally be Republican or one that is right now a draw. The pick should also be recognizable nationwide and preferably help McCain minimize his weakness's. The best pick would be a popular governor that is knowledgeable about economics.

McCain can win but he must stay positive, create an exit strategy, define victory and a plan to achieve that victory in his first 4 years in office, and pick a solid VP that would minimize his weakness's and reintegrate disenfranchised conservatives. McCain must act resolutely during the democratic infighting.

As covered before in my Fair Tax Myth post about 2 weeks ago we have learned that the Fair Tax contrary to popular belief is not regressive but progressive because of the monthly prebate. Remember, a progressive tax is one that taxes those most heavily those that can pay taxes while a regressive tax, like current payroll taxes, which tax those who have the least ability to pay more heavily.

The Fair Tax does other things to help lower and middle income earners versus the current income tax system. A Macroeconomic report performed by Arduin, Laffer, and Moore Econometrics in 2005 indicated that the Fair Tax would increase economic growth in our country significantly. This means that job growth will increase to account for new business opportunities and most of those jobs will likely occur in the lower to middle income range. Low and middle income workers will be the most likely to lose their jobs during and economic downturn. Since the Fair Tax has been shown to increase economic growth job security will increase. In addition, because of increased profits, wages will increase as companies try to retain and compete with other employers for employees.

Additionally, the Fair Tax eliminates income tax withholding, the regressive payroll taxes, and eliminates yearly compliance costs associated with their collection. As mentioned before, because corporations no longer pay taxes on their profit the embedded tax in goods and services, estimate to be around 22%, is eliminated. When replace with the Fair Tax the average increase in the price of goods is 1%.

Don't forget about the prebate. Those with the least ability to pay can pay no taxes if they control spending and spend at or below the poverty level. Even if you choose to spend over the poverty level, lets say twice the poverty level you will only pay an effective tax rate of 11.5% a dramatic increase for many Americans.

Also since investments are no longer taxed, you can put money away for a rainy day without having to worry about punishment for taking positive action to ensure your economic security in the future. The same macroeconomic report mentioned earlier (which I will review more thoroughly for you in an upcoming post) has shown that savings will increase dramatically under the Fair Tax. Since Social Security is quickly going bankrupt this is a net positive for lower and middle income earners who will be able to save for their retirement more effectively without the punishment of taxes for a sound economic decision.

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Over 161,000 signatures have been turned in on the petition for the Fair Tax. The movement is gaining momentum daily and is supported by liberals, conservatives, and libertarians (I'll explain later why each of these groups support the Fair Tax). I urge you to write your congressman about the Fair Tax and ask them for their support.

If you need information you can check my blog or go to FairTax.org to provide evidence in your letter. To figure out how to contact your congressman click here.