Categories
Accountability free trade & free markets property rights tax policy

Taxation to What End?

Oregonians have quite a few ballot measures this year.

And only one of them seems obviously nutty: Measure 97.

It would raise taxes on the very biggest of companies. The richest — that is, those with $25 million in sales.

Among the reasons given for this excise hike, which is estimated to be the biggest in the state’s history, are a whole bunch of “ooh, look at what we can do with all that loot!” enticements. Yes, and then there is the tried-and-untrue staple of the left, the “make large and out-of-state corporations pay their fair share in taxes” ploy.

Admittedly, trying to get out-of-state entities to pay for your benefits is classic. What “Let somebody else pay” lacks in nobility and morality it makes up for in avarice’s perennial appeal.

But the practical problem? A tax hike is just a bid on a future expropriation. Tax targets can, in effect, counter-offer by moving, or threatening to move, out of taxing territory.

Imagine yourself a thief. Then imagine first announcing to your victims where, when and how much you intend to take.

Right now Oregon sports the tenth best business environment in the country and, maybe, the lowest business taxes*. Raise taxes to the “middle of the pack” and businesses begin to look at states with lower rates.

Objectionable? Doesn’t matter. Folks go into business to make profits, not pay taxes.

Against this reality? Measure 97’s many bigwig supporters: the progressive Democratic governor, Democratic legislators and big-spending public employee unions eager to expand their bottom lines.

But by seeking to maximize near-term tax rates, these greedy special interests risk losing revenue further off, after businesses flee the state.

This is Common Sense. I’m Paul Jacob.

 

* The Oregon Center for Public Policy ranks Oregon as tied with Connecticut for the lowest in the nation.


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Oregon, tax, taxes, corporate, corporation, illustration, Measure 97

 

Categories
Accountability nannyism national politics & policies tax policy

The Year of Translucency

Barack Obama promised transparency in government. He didn’t deliver.

But others stepped up to the plate.

It’s now possible to see through a lot of political, elitist, and bureaucratic bunk courtesy of fugitives like Snowden, convicts like Manning, and citizens using FOIA (Freedom of Information Act) procedures.

And we are learning more about Hillary Clinton with each info dump from Julian Assange’s Wikileaks and every court-ordered disclosure thanks to lawsuits to enforce FOIA by organizations like Judicial Watch.

Some folks demand that Donald Trump release his tax returns. On the one hand, hooray for public demands for more information about candidates. But on the other hand, the richer you are, the longer and stranger your tax returns become. One shifts income around to avoid taxes — indeed, you take every “loophole” the law allows. As Justice Brandeis advised. Some folks may be shocked by Trump’s creative-but-legal accounting.

To avoid future confusion, we should demand simple tax returns from the rich. That would require jettisoning most of the tax code, simplifying the system. But ask your congressional representative why he or she will not support such a reform.

The reason we have an opaque and complicated tax code is . . . well, transparent. Under a simple tax system, there would be fewer favors to “trade” . . . and thus less power to accumulate, less oomph to parlay into pomp and splendor.

Which is why politicians rarely provide much transparency, and why it must often be wrested from them.

Merely by being merchants of opacity, our pols reveal, if inadvertently, the nature of our Too Big Government.

This is Common Sense. I’m Paul Jacob.


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tax code, power, politicians, transparency, illustration

 

Categories
folly free trade & free markets general freedom moral hazard national politics & policies tax policy too much government

Whose Side Are They On?

Excuse me if I drive over familiar roadways. But we are witnessing one of the great revolutions in human cooperation.

And our governments and politicians are working mightily to block traffic.

I refer, of course, to Uber and Lyft and the like.

The innovation that these companies bring to market? Enabling everyday drivers to leverage their personal investment in a capital good — a car or SUV — to make extra bucks (or even a living) while efficiently serving people who want rides.

Ride-hailing apps on smart-phones provide more security and consumer guidance than the old taxi services ever bothered to even try. The elaborate online rating system, where drivers rate riders and vice versa, provides a new market in information that outstrips government “regulation” as a consumer defense system.

And consumers get better rides, cheaper.

The Uberization of ride sharing competes directly with taxis, of course, and that’s a problem . . . for taxi companies. And the politicians who have regulated them for years. This regulation never was about consumer protection, but politicians just feathered their own nests with campaign contributions through crony capitalism, helping some taxi services at the expense of others.

And customers.

The latest idiocy hails from Massachusetts, which has enacted a 20¢ per trip tax on all ride-sharing apps, with 5¢ of each charge slated for subsidizing the old, established taxi services.

Taxachusetts’s Republican governor, Charlie Baker, has been sucked in to the government racket, choosing to support old cronies rather than customers.

Still, it could have been worse. The advocates of the tax had initially demanded Uber be banned.

This is Common Sense. I’m Paul Jacob.


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Uber, Lyft, Taxi, protection, tax, crony, cronyism, illustration

 


Illustration based on original cc photo by GörlitzPhotography on Flickr

 

Categories
Common Sense free trade & free markets general freedom ideological culture initiative, referendum, and recall responsibility tax policy term limits U.S. Constitution

Trying Our Souls

In Common Sense, his incredible hit pamphlet of 1776, Tom Paine appealed to “the inhabitants of America”:

O ye that love mankind! . . . Every spot of the old world is overrun with oppression. Freedom hath been hunted round the globe. Asia, and Africa, have long expelled her. Europe regards her like a stranger,and England hath given her warning to depart. O! receive the fugitive, and prepare in time an asylum for mankind.

Today . . . well, our country might be mistaken for an asylum. Just not the type envisioned by Mr. Paine

Worse still, freedom in America is under consistent attack.

Following the Orlando terrorist massacre (and don’t forget, “hate crime”), who could be surprised at yet another rush to infringe on Second Amendment rights by legislation? But I must admit I was still naïve enough to be shocked that not a thought was given to making our Fifth Amendment rights to due process so much collateral damage.

Secretly writing names on a classified list, whether you call it a “no-fly list” or the “terrorist watch list,” and using merely that to bureaucratically deny citizens fundamental rights (“top ten” rights, as in No. 2 and No. 5 in the Bill of) is no process of law at all.

Who could so cavalierly toss away the very bedrock of our freedom? It’s as if our so-called representatives don’t give a hoot about our rights.

Common Sense readers are well aware that two years ago every Democrat in the U.S. Senate voted to repeal the key freedom of speech provision of the First Amendment. The goal was to completely reverse the current wording of “Congress shall make no law” with new wording that incumbent legislators in “Congress and the States may regulate . . . the raising and spending of money by candidates and others to influence elections.”

The amendment didn’t pass. Thankfully. But, frighteningly, it continues to be promoted. Presidential candidate Hillary Clinton has endorsed it. Most folks are ignorant about the extremism of the approach, because the media reports mainly that the amendment reverses Citizens United, something the amendment actually doesn’t do.

The amendment simply awards Congress so much power that the highly-disapproved body could do almost anything.

Most people also don’t realize that the Citizens United case was about the Federal Election Commission (FEC) censoring advertising for a movie about Hillary Clinton, produced by a non-profit corporation.

Speaking of government censorship of the press, the FEC had been threatening Fox News with major fines for making corporate contributions to 17 GOP presidential candidates. What happened? The cable news channel decided to expand from a single debate featuring 10 candidates to two debates with the earlier “undercard” debate featuring an additional 7 candidates. A candidate not chosen to be one of the 17 candidates filed a complaint against Fox, alleging it amounted to an illegal contribution to all 17 candidates.

The FEC recently closed the case without beating up the disfavored news channel only because three Republican commissioners blocked three Democrats. The case should not only be closed, it should never have been brought in the first place. We don’t want our government dictating to the media about political debate coverage.

Or anything else.

And how can major federal agencies provide equal protection to all citizens, when they are staffed according to political party to provide protection for Republicans and Democrats? More of us are independents than either Rs or Ds.

The war against political participation isn’t confined to Washington. I know from my ordeal in Oklahoma nearly a decade ago, when for assisting initiative petition campaigns for a spending cap and eminent domain reform, I was charged with conspiracy to defraud the state and threatened with ten years in prison . . . until a year and a half later when, without ever completing even a preliminary court hearing, the charge was dismissed.

I’ve seen Eric O’Keefe and other brave citizens in Wisconsin endure dawn SWAT-style police raids for the awful crime of campaigning in favor of government policies they support.

And, of course, how can we forget that no one has been held in any way accountable for the years that the IRS blocked the formation of Tea Party and conservative and libertarian groups?

This country is in trouble.

In addition to the assaults on our rights, especially the right to participate politically, there is the dysfunction at all levels of government. Among the big national problems of massive debt and constant war, we find smaller local issues that signal a deeper, bigger problem.

Common Sense has long covered the school kid suspended for drawing a gun or eating one’s PB&J sandwich into a pistol or the school that photo-shopped out the musket from their Minuteman mascot. This last year we followed many of the twists and turns to the story of the Meitivs, the Maryland family that dared allow their two children, ten and six years of age, to walk home from a public park. The children were obviously well cared for, but nonetheless they were picked up and held by police several times and the parents were long threatened with losing their kids.

It took over a year for the authoritarians with Child Protective Services to agree that kids walking home from a park in broad daylight did not constitute prima facie evidence of child abuse or neglect. And to agree to leave the poor Meitiv family alone.

Common Sense has also highlighted the racketeering being done by police forces federal, state and local through what’s known as civil asset forfeiture — again, a complete denial of basic rights. Under current law — or more correctly, lawlessness — police can take people’s property and money when detaining them and then keep it, even if the person is never convicted of a crime, or even charged.

This suspension of the fundamental concept of “innocent until proven guilty” must not stand.

But who is going to stop it? Not just this one outrageous rip-off, but the whole societal slide to a system where individuals have no rights, especially if they lost the last election, and government makes more and more of our decisions for us.

Hillary Clinton?

Donald Trump?

Your state’s legislators? Your city council? Your congressman?

You and I must stop the erosion of our liberties. We have the tools — especially with state and local ballot initiatives available to most of us, allowing us to seize the agenda at the time and on the issue(s) of our choosing.

Liberty Initiative Fund works with Liberty Initiators across the country to hold government accountable, fight crony capitalism and protect our liberties through state and local ballot initiatives. Contributions are not tax deductible, but pack a powerful punch for liberty.

Citizens in Charge and Citizens in Charge Foundation protect the critical initiative and referendum process, so citizen activists can reform government and limit power. Donations to Citizens in Charge Foundation are fully tax-deductible.

The Foundation also supports Common Sense, which I offer the modern inhabitants of America to help keep us focused on the most important problems we face, with intermittent seriousness and humor, as well as uniting active allies from across the country, each pursuing their own issues in their own communities.

Today, I’ll enjoy being with the people I love and I’ll take some time to celebrate the birthright of freedom forged for you and me 240 years ago.

But I won’t pretend that freedom will be there for me or for mine unless together we forge our future freedom anew.

This is Common Sense. I’m Paul Jacob.


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Tom Paine, Thomas Paine, Laurent Dabos

 

Categories
folly general freedom national politics & policies tax policy too much government

Procrastinators’ Weekend

Usually, April 15 is the deadline date, in these United States, to file taxes or apply for an extension. This year it is April 18.

Why? Many of us think of the Fifteenth of April as Tax Day. It seems strange and arbitrary when it is jiggered with. And kind of annoying.

But a postponement of taxes could be a postponement we might all appreciate as a tiny (ever so slight) reprieve.

So, again, why this year’s three-day extra leeway?

First off, it is regularly postponed when the day falls on a Saturday or Sunday.

Could it be that the “Nothing Gets Done on Friday” Rule has been acknowledged by the fine folks at the Internal Revenue Service?

No.

People in Maine and Massachusetts celebrate Patriots Day on April 18, so their tax day is set another day later, April 19.

Which begs the question. Why the 18th in the first place?

Well, because of Emancipation Day, usually celebrated in Washington, DC, on April 16.

Because the 16th settles on a Saturday this year, and because the day is a traditional day off for federal workers, the holiday shifts a day in advance, to this Friday, the 15th. So, Emancipation Day — commemorating the signing of the Emancipation Act by President Abraham Lincoln — trumps Tax Filing Day.

Apt, since it might seem cruel to Americans to have Tax Day, marking the subservience of a whole population to its government, fall on something called Emancipation Day.

After all, consider: holding them on the same day? Hmmm. Might get people thinking.

Bigwigs in DC don’t want that.

This is Common Sense. I’m Paul Jacob.


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Emancipation Day, tax, taxes

 


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Categories
folly ideological culture moral hazard national politics & policies tax policy

Rebranding the Odious?

Being a clever person is hard work. Many of the truly clever things about everyday life have already been said. New and innovative cleverness? A rare thing indeed.

But if you are in the business of being clever, that puts you in a pickle, if “being relevant” and “worth our attention” is part of your cachet.

Take Alain de Botton, a very clever man who has written at least one brilliant book . . . and several not-so-brilliant ones. He has tackled Proust, Epicureanism, and is now deeply into religion.

Well, maybe not so deeply.

He wants politicians to follow the lead of religious leaders, who, he asserts, are masters of rebranding. (I had thought that was for marketing specialists.)

Recognizing that the word “tax” is an odious one — few people really like paying their taxes — de Botton says that politicians should follow what “religions do” and “rebrand ‘tax’ as ‘charity.’”

Charity, he notes, is a “much more appealing word.”

Well, yeah. That’s because charity is a word for love. It is all about deep concern, sympathy, etc., and “acts of charity” are expressions of love and concern.

And the only way that acts of charity can be determined to be expressions of concern is that they are voluntary. Taxes, on the other hand, are not voluntary. They are taken by force (try not paying them — force will find you).

Forcing people to “be charitable” will automatically scuttle that very purpose.

Trying to rescue politics from the stench of compulsion should not be done with rebranding, but by limiting government.

The less government, the less force.

And more scope for charity.

This is Common Sense. I’m Paul Jacob.


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tax, taxes, charity, IRS, I.R.S., Alain de Botton, branding, rebranding, illustration, folly, Common Sense

 


Common Sense Needs Your Help!

Also, please consider showing your appreciation by dropping something in our tip jar  (this link will take you to the Citizens in Charge donation page… and your contribution will go to the support of the Common Sense website). Maintaining this site takes time and money. Your help in spreading the message of common sense and liberty is very much appreciated!