Ponderstorm My Brainstorm on Life & Politics

I wish I knew who to credit with the following idea but I do not. It is, however, so simple and yet so profound that I wanted to share it with everyone. Friends, this is something we should do. I quote:

Like most folks in this country, I have a job. I work, they pay me. I pay my taxes and the government distributes my taxes as it sees fit. In order to get that paycheck in my case, I am required to pass a random urine test (with which I have no problem). What I do have a problem with is the distribution of my taxes to people who don’t have to pass a urine test.

So, here is my Question: Shouldn’t one have to pass a urine test to get a welfare check because I have to pass one to earn it for them?

Please understand, I have no problem with helping people get back on their feet. I do, on the other hand, have a problem with helping someone sitting on their a** — doing drugs, while I work. . . . Can you imagine how much money each state would save if people had to pass a urine test to get a public assistance check?

I guess we could title that program, ‘Urine or You’re Out’.

Now that’s some good thinking and would save far more than it costs! What do you think?

I read where another guy expanded this concept a bit and proposed that all college Read More…

Posted under 60 Seconds, Economy, Taxes

Now that I’m more focused on preparing my own income taxes, some of the latest tax evasion scandals in the Obama Administration are even more frustrating. I think the two political cartoons below put the sins of Tom Daschle and Tim Geithner into a more proper perspective. It does seem that those with political connections are held to a lower standard than “the rest of us” who make the country work. What think you?

(Click images to enlarge)

Posted under Barack Obama, Taxes

Jeffrey A. Miron is a senior lecturer in economics at Harvard University. He is a Libertarian and was one of 166 academic economists who signed a letter to congressional leaders last week opposing the government bailout plan. His commentary, entitled Bankruptcy, Not Bailout, is the Right Answer, was published today at CNN.com and the American Future Fund, an organization that advocates conservative, free market ideals.

The latest bailout plan that was voted down yesterday would have authorized $700 billion for the U.S. Treasury to purchase “troubled assets” from Wall Street financial institutions. Miron argues that this bailout proposal was a “terrible idea” and explains why. First, however, he explains how we got ourselves into this mess.

The current mess would never have occurred in the absence of ill-conceived federal policies. The federal government chartered Fannie Mae in 1938 and Freddie Mac in 1970; these two mortgage lending institutions are at the center of the crisis. The government implicitly promised these institutions that it would make good on their debts, so Fannie and Freddie took on huge amounts of excessive risk.

Worse, beginning in 1977 and even more in the 1990s and the early part of this century, Congress pushed mortgage lenders and Fannie/Freddie to expand subprime lending. The industry was happy to oblige, given the implicit promise of federal backing, and subprime lending soared.

This subprime lending was more than a minor relaxation of existing credit guidelines. This lending was a wholesale abandonment of reasonable lending practices in which borrowers with poor credit characteristics got mortgages they were ill-equipped to handle.

Once housing prices declined and economic conditions worsened, defaults and delinquencies soared, leaving the industry holding large amounts of severely depreciated mortgage assets.

After pinning the blame squarely on failed government policy, Miron correctly reasons that it is unwise to let government do more of the same in the name of recovery.

The fact that government bears such a huge responsibility for the current mess means any response should eliminate the conditions that created this situation in the first place, not attempt to fix bad government with more government.

Miron then builds a case for allowing financial institutions to declare Read More…

Posted under Taxes

Think about this with me for a minute if you would. The government is asking us taxpayers to hand over $700 billion more dollars on top of the $2+ trillion we already give them (or they obligate us with in the form of debt). That’s an enormous amount of money.

Today there is an Associated Press article that looks at what just how big $700 billion is compared to other spending. I quote some of the article below:

You could buy yourself a war with that kind of money – the U.S. has spent $648 billion on Iraq war operations so far.

You could match Franklin Roosevelt on his New Deal and raise him billions more.

Even in a town where billions come and go without anyone blinking, the money that could go into the Wall Street rescue is eye-popping. The House on Monday voted down a proposed $700 billion bailout package, but congressional leaders said they were committed to trying again.

What else could the government do with a $700 billion blank check? There are, well, billions of possibilities.

It could ensure universal health care coverage for six years, for example, or upgrade the country’s most deficient bridges four times over. All the work to upgrade coastal levees that’s been done since Hurricane Katrina? It’s a mere drop in the proverbial $700 billion bucket – $7 billion, or just 1 percent. You could build 1,750 bridges to nowhere.

Or run an entire country. Seven hundred billion dollars is more than twice the size of the economy of Denmark, which had a gross domestic product of $312 billion in 2007.

Seven hundred billion dollars would buy 70 Hubble-type space telescopes. Or about seven international space stations. It would finance the National Institutes of Health, the nation’s premier medical research institute, for two decades. Or pay the U.S. national intelligence budget for 15 years.

According to the Wall Street Journal, half the money FDR spent on his New Deal program to lift the country out of the Depression and banking crisis was for public works projects. For $250 billion in today’s dollars, the nation got 8,000 parks, 40,000 public buildings and 72,000 schools.

The article provides even more examples but I think you get the picture. My question for the government is simple: You created this problem so why should I trust you to fix it with more government?

Posted under Taxes

Remember this simple fact whenever a political candidate or government official tells you he or she will give you something: Government does not have anything to give that it does not first take from somebody else.

It’s an axiomatic truth that our government cannot give us anything unless it first takes it from somebody else. In order for government to own something, it has to take money (taxes) or property (via a legal provision known as eminent domain) from citizens. Once taken, it is then considered “government property.”

Simply put, government extracts resources from producers (ex: income tax, corporate taxes) and spenders (ex: sales tax) to fill the public treasury. That is necessary and proper for legitimate government functions authorized by the Constitution and provided for by law. However, some political candidates and government officials have the audacity to go beyond that and say they’re going to give us something out of the public treasury. That’s such a lie! It’s not theirs to give. Even a tax cut is not giving us something — it’s simply taking less of something that was ours to start with.

The bottom line: It’s our money that they’re spending in Washington! The same is true for our state capitol, city hall, county courthouse, school district or whatever level of government. Think about this next time you vote.

Posted under 60 Seconds, Taxes