Radical Tax Reform (Part 1): Corporate and Business Taxes

Okay, let's break this down, because honestly it's really not all that complicated.  We all know that this country needs a radical overhaul of our close to 70,000 page tax code which covers everything from personal income tax to corporate and business taxes and even how much of your estate that you have to hand over to the government (instead of passing it on to your family) after you are dead.

Let's start by breaking down the most important part of our economy and how our tax system affects them; Corporate and the Business taxes.

It really torques my chain when people start talking about the Big, Bad, Evil and Greedy corporations and businesses (you know...the ones who employ you, give you your paychecks and help you put food on your table and pay your rent/mortgages...) who's primary goal in life is to make as much money as they can so that they can give the fat cat CEO's millions of dollars, becoming filthy rich and having dinner of caviar and champagne on their yachts and corporate jets.  HELLO?!  That's the whole point, isn't it?  And another thing, have you ever heard of a POOR person being able to employ another person.  Obviously the answer is no.  It is the rich business owner who has the ability to employ other people.

But I digress . . . we were talking about taxes, weren't we?

So what are the effects of taxes on corporations and businesses.  If you listen to our politicians in charge today (aka the ones on the left), they will tell you that the rich corporate fat cats and business owners have to pay their fair share and they need higher taxes.  Well, let's say we DO tax the corporations and small businesses (who might be individuals making over $250,000); what will happen then?  Let's break it down:

MORE TAXES=

1. Less money for the Corporation and the Business Owner.
2. Fewer dollars to employ people.
3. Fewer jobs and possible layoffs.
4. Higher unemployment.
5. Fewer benefits or a reduction/elimination of benefits.
6. Higher prices of goods and services passed on to the consumers (who now have no jobs), because the business has to try to make up the money somehow.
7. Corporations moving overseas to avoid the higher taxes and taking their money and jobs with them.
8. Corporations shipping jobs overseas because of cheaper labor and to avoid payroll taxes.
9. Hundreds of Billions of dollars moving out of this country looking to avoid the tax burden.

Sounds like a great idea, huh?  Well, now that we know what some of the consequences to higher taxes to corporations and businesses are, I would like to throw out a HUGE "WHAT IF" scenario.

"WHAT IF . . . we ELIMINATED all Corporate, Business and Payroll taxes?  What do you think would happen?  Let's take a look:  

No Corporate, Business and Payroll taxes =

1. More money for Corporations and Business Owners.
2. Businesses will have more money to hire people and expand their business.
3. Businesses will have more money for benefits to entice high quality candidates to work for them.
4. A major drop in unemployment.
5. Through basic principals of economics:  prices of goods and services will DROP because the cost of production will be less and competition will force the price to go lower.
6. Corporations that have gone offshore to avoid the tax ramifications WILL ALL COME BACK!
7. Foreign Corporations will ALL want to move their businesses to the United States, thus providing MORE jobs for the American worker.
8. Wages will go UP because competition for jobs and low unemployment will force companies to offer more money in order to get the BEST candidates.
9. Billions of dollars will come flooding back into the United States.

Now I know what you are thinking, "Oh my God!  We can't do that.  We need those tax dollars to help pay for Social Security, Medicare and all the other government programs that are being shoved down our throats!" 

Well, yes we can (no pun intended).  We can radically reform our tax code, simplify it and still have plenty of money to fund all of these wasteful government programs.  I don't want to spoil the surprise though and will leave that for a further blog posting.  Next time I'll throw out another "WHAT IF" scenario with some pro's and con's.

Taxes, taxes, taxes . . . WAKE UP PEOPLE!

Answer me this question. How much do you make every paycheck? I'm asking this question because I would be willing to bet that as you think about it, the first answer that comes straight into your mind is your NET income and not your GROSS income. Well people, it's time for you all to WAKE UP and start thinking about your GROSS income because that is how much money you are REALLY making.

When it comes to the topic of money, your job and your income, this could be the single most IMPORTANT question that you could EVER think about and hopefully it will help you PAY MORE ATTENTION to your paycheck and where your money is going.

Most people never think about their paycheck and the only important number that they look at is their NET income. They say, "Oh goodie! I made $750 this paycheck!" and are all happy, when in reality they made $1000 and should REALLY be saying, "Where the heck did my $250 go!" Well I'm here to tell you that it is far past time for you to open up your paycheck and take a closer look.

Here's the first thing I want you to do. Open your check and find the spot where it says NET Income and GROSS Income. Now, take a calculator and subtract your Net from your Gross incomes and this is the money that you are handing over to the Federal and State governments every single time you get paid.

Now that you have an actual dollar amount that is being deducted from you paycheck you need to take a look at where all that money is going. What you will find, at a bare minimum, are deductions for Federal Withholding, Social Security, Medicare, State Withholding and, in most states, State Disability Insurance. In most cases, depending on your tax bracket (aka how much you are taxed depending on how much money you make) you will find that the government is taking about 25% of your hard earned money out of your paycheck BEFORE YOU EVEN SEE IT!

But that's okay though right? You'll get it back come tax time and you file your taxes. After all, April 15th and tax time is when you get a check BACK from the government . . . It's a happy time of year, right?

Wrong . . .

Now your next task is to take EVERY SINGLE PAYCHECK you received last year and add up ALL the differences between your GROSS and NET incomes. Don't use your W2 that you received at the end of the year because I want you to get an actual FEEL for adding up all the money that has been taken out of your check throughout the year.

Once that is accomplished, go and get the amounts of you refunds that you received from the kind hearted and benevolent Federal and State agencies and add those two together.

Okay, here's the kicker. Now subtract the refund amount from the amount of money that they took out of your checks throughout the year.

UH OH! It looks like they are keeping a little bit more of your money than you thought, right? But don't forget, even if you are in a low tax bracket where you are getting your money back at tax time, just remember that the government is still taking your money in advance and investing it so that they, AND NOT YOU, will make the interest off YOUR money throughout the entire year.

Wouldn't it be nice if there was a better, more simple way, of paying your taxes? One that doesn't discriminate based on how much money you make but still forces the rich to "pay their fair share" and will still help the poor live a more prosperous life?

Well, there is such a plan, but it will take the "Will of the People" to get it implemented. It will take the will of the people because todays politicians rely on our current, convoluted tax code to stay in power and reap the financial rewards of Fat Cat lobbyist's who will more than happily perform any manner of bribery and corruption to get a beneficial outcome for their special interests. In other words, they won't change, because as soon as they do they will lose all their power. But guess where that power will go? IT WILL GO TO YOU! The American taxpayer. But a taxpayer that will DEMAND representation for the taxes that they will be paying.

But before you can change, you have to WAKE YOURSELF UP! Our country was founded and American Blood was spilled for MUCH less than what is being done to us now! The motto then was "DON'T TREAD ON ME!" and "NO TAXATION WITHOUT REPRESENTATION!", and this was over far fewer more inconsequential taxes. The citizens of this country raided ships and threw crates of Tea into Boston Harbor and that was for just a small tax on TEA!!

How much are you willing to put up with before you put your foot down? How much money are you willing to let them take before you say NO MORE!? Is it a car tax in your state? Is it a mandatory purchase of healthcare?

Well, what is it America? You have to choose. You have to make the call. You have to be willing to stand up as one and say NO MORE!

And now you ask "Well? What is this plan?" Stay tuned and I'll start telling you next time.

My 30-Day "Pledge"

The Pledge of Allegiance is almost forgotten in American culture today. For most grown Americans we probably remember reciting it each day in the classroom at school and then never saying it again after graduating. It is my hope that this will change.

I would like to propose a challenge to each and every person reading this to say the Pledge of Allegiance every day for 30 days. I will be putting out my flag each day, putting my hand over my heart and reciting the Pledge; and if I see others watching while I do it, I will invite them to join me.

Below is what the Pledge means to me. It was inspired by the comedian Red Skelton and an on stage performance he did explaining what the Pledge meant to him.

The Pledge of Allegiance

~I pledge allegiance~

“I” – me, myself, individually, not you, they them or us collectively
“pledge” – promise, agree, obligate, ‘cross my heart and hope to die’
“allegiance” – my love, fealty, obedience, devotion and honor.

~To the flag~

The Stars and Stripes, the Red, White and Blue, Old Glory, with 50 stars for each state on a field of Blue and 13 red and white alternating stripes for the 13 original colonies.

~of the United States of America~

NOT the United States of Mexico, Canada, England, France, Germany or even the United Nations. If you are in this country and want to assimilate and become an American Citizen and follow the appropriate rules to become one, then we welcome you with open arms. If you have come here illegally to take American jobs and abuse our welfare, healthcare, and education systems then GO HOME! We don’t want you here!

~and to the Republic~

“Republic” – We are a Representative Republic. We are not a Democracy, a Tyranny or a Dictatorship. “We the People” elect delegates to “represent” us. Delegates who take and oath, and I quote “ to support and defend the Constitution of the United States against all enemies, foreign and domestic; that (they) will bear true faith and allegiance to the same; that (they) take this obligation freely, without any mental reservation or purpose of evasion; and that (they) will well and faithfully discharge the duties of the office on which (they are) about to enter. So help (them) GOD. And if they fail in that sacred duty it is our Right, no, it is our DUTY to vote them out of office and elect someone who will.

~for which it stands~

“It”, our Flag and our Constitution. Those Rules and laws by which we are guaranteed “Life, Liberty and the Pursuit of Happiness”.

~One Nation~

Not 50 nations. ONE nation. Working together to provide a more perfect Union.

~Under GOD~

Under Christ, under Mohammed, under Buddha, or under Odin. It doesn’t matter, take your pick; and for you Atheists, it’s STILL under GOD, and don’t worry. Even though you don’t believe, we will still be praying for you.

~Indivisible~

United, joined, permanent and inseparable.

~with Liberty~

Freedom, independence, and the right to live life without fear of threats or retaliation.

~and Justice~

We are ALL created equal, under the law and in the eyes of GOD. Our Constitution gives us equal rights and opportunities in order to prosper and pursue our individual happiness.

~for all~

Which means, in the immortal words of Red Skelton that “This is as much your country as it is mine”.

This is the Pledge of Allegiance to this “United States of America” and this is what the pledge means to me. It should be said each day in every classroom throughout the country and each citizen should say it each day, with hand over heart and in the presence or The Red, White and Blue. Hopefully, the next time you recite it you will think of these things, and it’s meaning will become imbedded in your heart and in your soul.

For those of you who refuse or don’t want to take this pledge, feel free to come and visit Disneyland, our Capital, and our beautiful scenery, and then go back home.

Washington's Rules of Civility and Decent Behavior

We have come a long way in todays society. In technology, science and the arts the advances have been tremendous since the founding of our country. There is one area however where we have definitely NOT progressed, and in fact some would say, including myself, that we have regressed to the point where it seems that we, as individuals only care about ourselves. We can blame our culture, progress, technology or what have you, but it really comes down to one thing. Individuals today have thrown away the rules of common decency, manners and in general what we all learned as kids: "The Golden Rule". Paraphrased, "Do unto others as you would have them do unto you". Todays kids just don't seem to be taught that anymore, and it is all too apparent when you look at some of the actions of their parents.

This doesn't have to remain that status quo however. Our founders taught us a better way and all we have to do is learn those lessons, do the research and start behaving the way we know we should. One of the earliest manuscripts from George Washington was written when he was just 16 years old. At 16 years of age Washington copied 110 Rules of Civility and Decent Behavior in Company and Conversation. These rules are as relevant today as they were when Washington copied them onto that piece of parchment more than 260 years ago. To see the full transcript of all 110 Rules you can find it at: http://gwpapers.virginia.edu/documents/civility/transcript.html

I encourage you to follow the above link and read through these 110 Rules. It is time to start setting an example by our own behavior, and what better role model than George Washington and the rules that he lived his life by. I won't recite all of them here but let's hit on a few of the key ones. Hopefully they will give you a starting point and be a guide to how each one of us should start leading our lives.

1. Every Action done in Company, ought to be with Some Sign of Respect, to those that are Present.

6. Sleep not when others Speak, Sit not when others stand, Speak not when you Should hold your Peace, walk not on when others Stop.

17. Be no Flatterer, neither Play with any that delights not to be Play'd Withal.

19. Let your Countenance be pleasant but in Serious Matters Somewhat grave.

20. The Gestures of the Body must be Suited to the discourse you are upon.

21. Reproach none for the Infirmaties of Nature, nor Delight to Put them that have in mind thereof.

22. Shew not yourself glad at the Misfortune of another though he were your enemy.

25. Superfluous Complements and all Affectation of Ceremonie are to be avoided, yet where due they are not to be Neglected.

32. To one that is your equal, or not much inferior you are to give the cheif Place in your Lodging and he to who 'tis offered ought at the first to refuse it but at the Second to accept though not without acknowledging his own unworthiness.

35. Let your Discourse with Men of Business be Short and Comprehensive.

38. In visiting the Sick, do not Presently play the Physicion if you be not Knowing therein.

39. In writing or Speaking, give to every Person his due Title According to his Degree & the Custom of the Place.

40. Strive not with your Superiers in argument, but always Submit your Judgment to others with Modesty.

43. Do not express Joy before one sick or in pain for that contrary Passion will aggravate his Misery.

44. When a man does all he can though it Succeeds not well blame not him that did it.

45. Being to advise or reprehend any one, consider whether it ought to be in publick or in Private; presently, or at Some other time in what terms to do it & in reproving Shew no Sign of Cholar but do it with all Sweetness and Mildness.

49. Use no Reproachfull Language against any one neither Curse nor Revile.

50. Be not hasty to beleive flying Reports to the Disparag[e]ment of any.

51. Wear not your Cloths, foul, unript or Dusty but See they be Brush'd once every day at least and take heed tha[t] you approach not to any Uncleaness. (or . . . don't be a slob).

54. Play not the Peacock, looking every where about you, to See if you be well Deck't, if your Shoes fit well if your Stokings sit neatly, and Cloths handsomely. (avoid vanity)

56. Associate yourself with Men of good Quality if you Esteem your own Reputation; for 'tis better to be alone than in bad Company.

58. Let your Conversation be without Malice or Envy, for 'tis a Sig[n o]f a Tractable and Commendable Nature: And in all Causes of Passion [ad]mit Reason to Govern.

62. Speak not of doleful Things in a Time of Mirth or at the Table; Speak not of Melancholy Things as Death and Wounds, and if others Mention them Change if you can the Discourse tell not your Dreams, but to your intimate Friend.

63. A Man o[ug]ht not to value himself of his Atchievements, or rare Qua[lities of wit; much less of his rich]es Virtue or Kindred.

64. Break not a Jest where none take pleasure in mirth Laugh not aloud, nor at all without Occasion, deride no mans Misfortune, tho' there Seem to be Some cause.

Anyway, you get the picture. Personally, it would do the world and our society good if we could just "Do unto others as you would have them do unto you" and follow that Golden Rule. To conclude my diatribe I'll leave you with Rule 110. It's a rule that, if followed, will enable everyone to enact the other 109.

Rule 110. Labour to keep alive in your Breast that Little Spark of Ce[les]tial fire Called Conscience.

The American Herald - Beginnings

Education and history are our countries greatest assets. I grew up with what I thought was a very good education. I wasn't a poor kid by any means and I thought that the education I was receiving was top notch at the time.

What I didn't realize was the History I was being taught was incomplete, many times biased and often times just plain wrong. I have always had a deep curiosity for this countries history. I am a former teacher myself and I am ashamed to say that even I taught our American History to my students incorrectly. I didn't know it at the time because I was following my schools mandated curriculum and the assigned textbooks. Basically, I taught what was given to me and did what my department heads told me to do. Eventually, I grew tired of towing the Party line and decided that our educational system was not for me. It was at about that time that I decided to continue my education and do my own research. I decided that my research would contain ONLY the original documents and writings from our American History.

I decided to READ and STUDY our Declaration of Independence, Constitution and Bill of Rights. I've read the Federalist Papers, Poor Richards Almanac, the writings of James Madison. Then, do you know what I did? I decided to compare it to what I was taught and what I was told to teach to my own student.

My conclusion? Much of what we know of our history has been re-written to fit into the Social and Political framework of the times and our society. How did that make me feel? Used, suckered and REALLY, REALLY, REALLY PISSED OFF! Here are just a few of the things that have pissed me off, which I will elaborate on in future posts:

1. Almost ALL of our Black Founding Fathers have been eliminated from our American History. Did you even know that there were black founding fathers?

2. How about that before the Revolutionary war there really wasn't any segregation between Blacks and Whites? Churches had mixed congregations and some even had Black Pastors and also that Blacks and Whites fought SIDE by SIDE on the battlefield for independence from Great Britain.

3. Did you know that our Constitution mandated an END to Slavery in the Year 1808 and that our National Holiday of Thanksgiving was supposed to be celebrated on January 1st starting in 1808 commemorating that same end to the institution of slavery?

4. Did you know that from the signing of our Constitution it was the Conservative North and then the Republicans that created ALL Civil Rights legislation for the Emancipation and equality of African Americans and that from 1834 to 1964 it was the Southern Democrats that either blocked ALL Civil Rights legislation or had it repealed?

These are just a very few things that have set my blood to boiling since I have started educating myself on this countries GREAT history. My future posts will pick individual topics that will help bring to light some of our forgotten or re-written history. I hope you enjoy some of my ramblings. It is with great pleasure that I write these words.

Sincerely,

George W.