Showing posts with label Tax Policy. Show all posts
Showing posts with label Tax Policy. Show all posts

Friday, November 2, 2012

Three Reasons why we’ve stopped voting, The Trail of Tears

10/18/2012 Portland, Oregon – Pop in your mints…

As we watched the Presidential debate Tuesday night, along with the rest of the huddled American masses, we were hoping to hear something that would sway us from our current non-voter status.  We hardly listened to what was said, although our radar went up as one attendee asked about inflation, which happens to fall into our realm of interests.  The periscope of our consciousness went down, however, as each candidate responded in turn with a stream of words which registered as a vague reference to a non-entity referred to as “the economy.”
They just don’t get it.  And unless someone at the top “gets” the concept of inflation and its root causes very soon, the current form of the United States government may not exist by the time the next Presidential term is completed.

With the exception of the inflation bit, we hardly listened to what was said.  Politics, as most politicians will attest, has nothing to do with the keeping or breaking of promises.  In the end, these expensive popularity contests boil down to the intangible of charisma.

As such, we were more interested in the demeanor of the candidates.  Both, while giving the appearance of physically fit, well dressed, and well informed men, seemed to lack something we call the spark of life, that thing that makes you want to be around somebody.  The intangible of charisma, so hard to define, yet so apparent when present, did not make an appearance last night.

We decided to retain our current policy regarding democratic elections.

At The Mint, our current policy is to refrain from voting on all matters which ask us to reach beyond our own city and county.  Even then, we inform ourselves and vote, not on individuals seeking election to sinecures, but on specific referendums, generally with the dual aim of obtaining personal benefit and minimizing both our tax bill and governmental interference in our personal affairs.

As such, if and when we vote, it is an exercise in shameless self interest.

How did we arrive at such an unreasonable stance with regards to voting?  How can we consciously fail to perform our “civic duty” year in and year out and still live with ourselves?
The conscious decision not to vote, at its base, is our way of peacefully resisting what has become a shameless power grab at the highest levels of government.  A series of well intentioned actions at the Federal level has lead to a number of unintended consequences which are about to cause a great deal of suffering.

Beyond this philosophical objection, there are practical matters to consider, which we submit for your examination and comment:

1.  Mind-boggling complexity

From time to time, a ballot measure will be presented which will be stated in a manner so clearly that one can place a vote and know exactly what a yay or nay will mean in terms of real world consequences.  As for the rest of the ballot issues, along with the selection of lawmakers and judges as our proxies, one can’t be expected to keep up with the chaos that passes as national and state governments, and for the most part, we feel that participating in elections or the political process on at these levels is at best a waste of precious time and, at worst, encouraging an enterprise which long ago overstepped any reasonable boundaries, both in its authority and its ability to manage its finances.  At this point, the best one can hope for is to stay clear of the amoeba.

Large scale democracy has a nasty habit of imposing the will of a few on all via the ignorance or indifference of many.  Circa 2012, voters are rarely asked straightforward questions like “Is it ok to steal and kill?” They are instead asked questions like “Do you prefer a fellow named Obama or Romney to serve as President?”  We will ignore the fact that politicians on the State and National level are thrust immediately into situations where keeping promises depends upon factors far beyond their control, and simply recognize that the choosing the President of the United States does little or nothing to change the underlying bureaucracies and interests which have turned the Government of the United States into a strange form of benevolent mafia.

2.  The question of taxes.

By our calculations, we give up roughly 16 hours per year just compiling data for and filing the required tax declarations at the State and Federal levels.  Not to mention the time spent generating the money to pay said taxes.  On the county level, this seems reasonable.  The county even has the courtesy to calculate the tax bill for us and simply request payment.  As for compliance, it is simple, you either pay the bill or you don’t.

Further, if you think that your tax bill is too high, you can leave the City or County and find a City or County with a more reasonable tax regimen, or no regimen at all.

While leaving the City or County may be a costly step, it may be feasible for those who desire to move.  Relocating geographically from a State or a Country is quite another matter, which makes their manner of taxation both understandable and sinister.

The Federal and State governments, as opposed to most county governments, have a much different take on both taxation, as well as the rest of the authorities which they have granted themselves over their subjects.  We use the term “grant themselves” because, as anyone who has tried to vote their conscience on a ballot measure can attest, many measures are written in a way that simply makes the voter a tool in the hand of those who crafted the legislation.

{Editor’s note:  We will refrain from going into the argument that somehow, the illusion of democracy, the Western embodiment of the “Might makes right” mentality, creates a government with legitimacy on the scale the the State and Federal Governments circa 2012 claim.  It is sufficient to say that there are an abundance of examples which would argue to the contrary.}

Returning to taxation with regards to the State and Federal regimens, it is up to the individual to file a declaration each year at their own expense.  Naturally, the governments reserve the right to audit said declaration, again, at the taxpayers expense.  If any inconsistencies are encountered, the taxpayer faces a myriad of penalties from the payment of additional taxes and penalties up to and including serving time in prison.

Even this tack could be considered reasonable were the tax codes written in a straightforward manner.  As things are, the income tax code serves as nothing more than a spider’s web, designed to entangle all who tread it.  We are all caught in it, it is just a matter of time until the spider makes its way over to devour us.

The saving grace, if there is one with regards to the State and Federal tax regimen is this.  They can’t take us all.  While it is likely that every single American has failed to fully comply with the 73,608 page tax code, it is extremely unlikely that the spiders of the various Government or State tax authorities will ever get around to eating all of those who are caught in their web.  As with any predator, they tend to go after the larger prey first.

In this sense, adopting the Franciscan/Marxian belief that poverty is a virtue may keep one safely off of the spider’s radar.

3.  The Trail of Tears

While both complexity and having to pay for something are generally good enough reasons to abstain from any activity, the most compelling reason not to vote is one that is best understood by examining one of the most shameful examples of the modus operandi of the Federal Government:  Their well documented dealings with the Cherokee people, whose world collided with the Feds in the early 19th century in the Southeastern part of North America.

Trail of Tears
The Trail of Tears, a painful chapter in US History – courtesy of http://katta1f.wikispaces.com/

We refrain from making value judgments and will simply examine the highlights of the interaction as we understand them.  A much more detailed account can be found, as always, in the Wikipedia.

The Cherokee found themselves generally prospering as a people and inhabiting lands in the Southeastern US in the 1700 and early 1800′s after presumably relocating there from the Great Lakes region.  During this time, they increasingly came into contact with European settlers and engaged them in trade.

As time went on, the increasingly organized and well armed colonies began to covet the lands of the various Indian groups in North America.  Once the revolution against the British and subsequent conflict known as the War of 1812 had been won, the States of the newly formed United States of America began to dispossess the various Indian peoples of their lands.


{Editors Note:  Sensitive readers are asked to excuse, for the moment, the use of the term “Indian” (Columbus most likely died believing that he had landed in India en route to China, hence the mistaken identity attached to Native Americans peoples), instead of the appropriate “Native American”.  The choice to change terms at this point in the essay was made consciously so that the reader may understand which groups were impacted by the barbarous Indian Removal Act.  No disrespect is implied or intended.}

While their tactics changed according to what was politically expedient at the time, the general policy of the State and Federal Governments was to ultimately expel the Indian populations and force them West, so that the vested interests of the States could take advantage of the lands which were occupied by the Indians.

What is most troubling about the treatment of the Cherokee people is that, from what we can tell, they had adapted to life amongst the new colonists and generally worked to comply with what were ultimately unreasonable demands of the governments.  As a case in point, the Cherokee allied themselves with and fought alongside the US against the pro-British factions during the War of 1812.  They served the US’s interests in the war alongside none other than Andrew Jackson.

Jackson later returned the favor by signing the Indian Removal Act in 1830 which sealed the Cherokee’s fate and began the final chain of events which would lead many of them to an early grave along the now infamous “Trail of Tears.”

While the the Indian Removal Act was passed on the assumption that the Cherokee and other Indian groups faced certain extinction were they to be forced to live alongside the increasingly numerous white settlers, it is generally acknowledged today that the real motivation for the Act’s passage was the discovery of gold in Georgia.

We have read about and watched similar scenarios of deceptions preceded and followed by apologetics play out too many times by centralized governments over the ages to believe that a group of persons who do not know our name and are so far removed from us that they would not recognize our moccasins if they took the time to walk a mile in them, have our best interests at heart.

Even if they did, we have observed that their best efforts to effect change on a large scale end up causing more harm than good.  While the economic damage done by such unilateral actions can be repaired or forgiven, the damage to the moral character of a society of embracing this might makes right mentality will ultimately destroy it.

The desire not to participate in the choosing of the next person to be called “Commander in Chief,” or any of their collaborators or subordinates, is the primary reason why we will not be walking around with a sticker on our chest or an ink stained hand on election day.

For The Trail of Tears has been tread for too long.  It is time to live in the Kingdom of God.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

Key Indicators for October 18, 2012

Copper Price per Lb: $3.72
Oil Price per Barrel:  $92.12
Corn Price per Bushel:  $7.39
10 Yr US Treasury Bond:  1.81%
FED Target Rate:  0.16%  ON AUTOPILOT, THE FED IS DEAD!
Gold Price Per Ounce:  $1,750 PERMANENT UNCERTAINTY
MINT Perceived Target Rate*:  0.25%
Unemployment Rate:  7.8%
Inflation Rate (CPI):  0.6%
Dow Jones Industrial Average:  13,557
M1 Monetary Base:  $2,449,400,000,000
M2 Monetary Base:  $10,157,100,000,000

Tuesday, September 20, 2011

A taste of Autumn, Greece remains on the hot seat, the US budgets to end wars?

9/19/2011 Portland, Oregon - Pop in your mints…
We've had our first taste of autumn here in the Pacific Northwest.  We found ourselves strangely welcoming the overcast sky and constant humidity.  It is the type of weather that is pleasant for a month or two.  Unfortunately, we get about 8 months of it here which requires some sort of escape to the sun, either Hawaii or California, for it to remain tolerable.

But still, the first taste was sweet and provided a warm feeling that all was well with the world, despite constant reports to the contrary.  Fortunately for us, the sun looks as though it will return this week.

On the whitewashed shores of Greece, where the sun seems to perpetually shine, there is now intense pressure from which there seems to be no escape.  The Prime Minister was called back from a trip to the US after receiving an emergency call from the Finance Minister as he stopped over in London.  The poor chap had to be on a conference call with creditors and the troika and didn’t want to take the lashing alone.
As if to give the world a taste of things to come, the Greek Government passed an emergency property tax which is to be collected via the citizens’ electricity bill to help ensure compliance.  Apparently the folks at the electric company are not happy about adding tax collection to their duties and are pushing back on the order.

The Greeks never have been good at collecting taxes, either that or their citizens are especially adept at avoiding paying them.  Either way, the combination makes for low tax revenues which makes servicing public debt, well, difficult.

We offer a suggestion to the Greeks, privatize the electric company and then enact an enormous tax on consumption.  At least then the riots would be staged at the electric company and not at parliament.

Meanwhile, before departing for New York in perhaps the least understood yet most important peace-keeping mission the US will ever embark upon, President Obama gave yet another clinic on teleprompter reading during his speech on, what else, government finances.  His proposal was to save $1.5 Trillion over the next 10 years by in large part by ending the wars in Iraq and Afghanistan.
Will Palestine become a UN Member?
We do not have any statistics, but we are willing to bet that this is not the first time that ending these wars has been proposed as a deficit reduction measure.  What is truly astonishing to almost every thinking person is that these two military adventures have continued for so long and have become such a drain on the public treasury  that ending them now would save $1 Trillion.

Less war, more money, what a novel idea!  It is as straightforward as it is unlikely to happen.

We sense that both this speech and bath time for Greek creditors will be interrupted by the Palestinian bid for statehood at the UN this week.  The Middle East has not seen a moment like this since Israel vied for statehood in 1949.  Let us pray that this moment passes in a peaceful manner

Stay tuned and Trust Jesus.

Stay Fresh!


Key Indicators for September 19, 2011

Gold Price Per Ounce:  $1,779 PERMANENT UNCERTAINTY
M1 Monetary Base:  $2,101,100,000,000 RED ALERT!!!
M2 Monetary Base:  $9,540,500,000,000 YIKES!!!!!!!

Friday, December 10, 2010

Obama and The GOP Finally get Stimulus Right! The Benefits of Lower Taxes Explained Part II

12/10/2010 Santa Cruz, Bolivia – Pop in your mints…
We are arriving in Bolivia today for what will be a wonderful holiday with our in-laws who live in Cochabamba.  In the coming weeks these chronicles will come to you from the southern hemisphere.  Stay tuned.  For today we must end the suspense which we left off yesterday, if nothing else for our own benefit!  So where were we?  Ah yes, we left off yesterday by making an assertion and then seemingly disproving our own hypothesis.  What is going on?  We must rectify this immediately!  So we head back to the car lot where we revisit our 100,000 prospective car buyers. 
You recall, don't you, dear taxpayer, the 100,000 persons trying to determine whether or not to purchase a certain car that costs $20,000 facing a 10% sales tax if they were to make the purchase?  Do you recall that 30,000 of those who wanted a car could make the purchase if only the tax were 5% instead of the current 10% and are forced to delay their purchases?  Do you recall that the government would lose $40 Million of tax revenue by lowering the tax rate to 5%?  Do you recall the most famous reindeer of all?

Thursday, December 9, 2010

Obama and The GOP Finally get Stimulus Right! The Benefits of Lower Taxes Explained Part I

12/9/2010 Miami, Florida – Pop in your mints…
We awoke Tuesday to some good news.  While we did not hear the tune of Kumbaya resounding out of Washington, details of a compromise on taxes between Democrats and Republicans did emerge.  On the surface it appears that this development is very promising and, dare we say, will turn out to be a truly effective form of stimulus.  We believe that it will be effective because it appears to do the only two things that a government can do to stimulate economic activity.  First, it provides a degree of certainty for key decision makers.  Currently, key decision makers had no choice but to plan for tax increases in 25 days.  Now, it appears that they can count on tax decreases for the next 755 days.  Second, and more importantly, is the nature of those tax decreases.  They include a 2% reduction in payroll taxes, which is roughly the equivalent of the government giving a nearly 2% pay increase to every worker.  It also provides businesses with a 100% tax break on all capital equipment purchased in 2011.
At The Mint we pray that this change in mentality will stick in Washington.  Over the past 3 years we have seen the government increasingly move in to manage the economy with increasingly disastrous results.  This tax deal would mean that the government is moving towards giving more power back to the people, where it rightfully should rest.
Free people are more productive.  This is simply a historical fact.  The fact is sometimes confused by applying the terms "Free" and "Democratic" to societies that, in terms of economic policy, are anything but free and democratic.