Sales Tax Holiday’s – Pure Politikal-Gimmickry

Angry Grizzly BearUntil I moved to New Mexico, I had never heard of a “Sales Tax Holiday.”  As a kid, I learned about rebates from an economist who defined rebates as money that did not have to be charged, which pays for a program to give some money back after the purchase concludes.  However, rarely are rebates actual cash returns, but get “built” into the price to sell the product.  Consider all the gimmicks and rebates involved in selling a car, and you know the truth and deceptiveness of rebates.  Sales tax holidays are one of the biggest scams perpetrated in 17-different U.S. states, and it is time to rip the bandage off this festering wound and apply some sunshine disinfectant!

What is Politics?

Politics is too often a word with so much baggage; people become confused and stop listening after hearing the word politics.  According to Webster:

As a Noun, “the activities associated with the governance of a country or other area, especially the debate or conflict among individuals or parties having or hoping to achieve power.”

    • The activities of governments concerning the political relations between countries.”
    • The academic study of government and the state.”
    • Activities within an organization that is aimed at improving someone’s status or position and are typically considered to be devious or divisive.”
    • A particular set of political beliefs or principles.”
    • The assumptions or principles relating to or inherent in a sphere, theory, or thing, especially when concerned with power and status in a society.”

As a Verb, politic/s is derogatory and is defined as “engaging in political activities.”

Knowledge Check!From Old French Politique “political,” Latin from Greek Politikos, and Polits “citizen” and Polis “city.”  Thus, we have described the term politics in all its glory and inhumanity.  Is the term more understood?

Politics is a descriptive tool used to identify certain human activities where power is sought, and devious means and divisive gestures are employed to obtain that power.  Every action tied to securing power through devious means and divisive gestures is politics or political, which means derogatory.  For those needing more, derogatory is “showing a critical or disrespectful attitude.”  Thus, at the root, politicians by their very name and nature are derogatory towards those who elect them into power.

What is Realpolitik?

Bobblehead DollRealpolitik is politics or diplomacy based primarily on considerations of given circumstances and factors, rather than explicit ideological notions or moral and ethical premises.  For a long time, the American public has witnessed the same political gamesmanship (realpolitik) in the U.S. House of Representatives, the Senate, and the Presidency.  All because those in power have intentionally blurred the line between a Republic and a Democracy to stay in control.  Never does realpolitik benefit the rule of law or provide equality as a primary and fundamental governance position.

Sales Taxes

Use the link on Sales Taxes to appreciate progressive and regressive taxes more fully.  The sales tax sits at the highest pinnacle for regression of all the progressive ideas needing to be eliminated.  Consider this, in states with the highest sales taxes, the sales tax is a reversed pyramid scheme where the final consumer winds up paying taxes on business-to-business transactions, dynamically increasing the price of the final goods or services delivered.Gravy Train 3

From an article on sales taxes by the Tax Foundation, we find the following important information:

“Narrow sales tax bases reduce collections, but more importantly, they make the tax less neutral and less economically efficient. Many states exempt certain goods (like groceries or clothing) from the sales tax for political reasons, excluding many consumer services (such as dry cleaning, haircuts, or tax preparation) largely by historical accident. Most states instituted their sales taxes during the Great Depression, when services made up a much smaller portion of the economy. Since then, the portion of total U.S. personal consumption dedicated to services has grown significantly, while the purchase of goods has declined. This trend has contributed to the erosion of states’ sales tax bases over time, an unintentional base narrowing that puts upward pressure on sales tax rates.

How can a person tell that sales tax schemes create inequitable tax bases:

Curiously, a policy expressly designed to inject progressivity into sales taxes—an exemption for groceries—largely fails to accomplish its purpose. Studies suggest that the exclusion of groceries beyond the necessary exemption for food purchased using SNAP or WIC does not favor lower earners.”

What is a Sales Tax Holiday?

Lemmings 2Simply put, a sales tax holiday is a day, usually just a single day when the government allows you to purchase goods and services without paying a sales tax on the receipt.  However, all the other sales taxes are still built into the cost of the good or service; just on this special day, the final receipt sales tax is not charged.  Sales tax holidays are one of the most inefficient and ineffective methods of “sharing unanticipated government money surpluses with the taxpaying public.”

How do we know sales tax holidays are a gimmick, are ineffective and inefficient, and are nothing but the practice of realpolitik?  In 2017, the Federal Reserve researched and found that sales tax holidays only shift normal patterns of purchases, not spurring economic growth, not increasing sales, just moving sales to a holiday to see a minor benefit on regularly planned purchases.  What’s worse, sales tax holidays discriminate unequally, making taxpayers the fool.

Tax Scheme 2For example, Florida in 2021 held a “Freedom Week” where camping supplies and outdoor hobby supplies were tax-exempt.  As a disabled person, I cannot camp.  As an empty nester, there are not many outdoor hobbies for myself and my retired spouse to enjoy where we need supplies.  Thus, people like myself and my spouse would not benefit from “Freedom Week.”  The same goes for tax-exempt school supplies; not having children in school, we do not benefit from a sales tax holiday as kids prepare to go back to school.

Worse, those in the lowest income brackets, guess what, they do not benefit from sales tax holidays either!  Just like in the example above regarding the sales tax “exemption for groceries—largely fails to accomplish its purpose and does not favor lower-income earners.  Hence the politikal-gimmickry of sales tax holidays.  If your circumstances do not allow you to participate in the sales tax holiday on the exact day (or days) provided by your state, you lose, and the politicians could care less.

Janelle Cammenga, writing for The Tax Foundation, makes the following case:

Sales tax holidays are political gimmicks that distract from genuine, permanent tax relief. Sales tax holidays are free marketing for businesses to advertise for a 4-7% discount on products.  If a state must offer a “holiday” from its tax system, it is implicit that the tax system is uncompetitive. If policymakers want to save money for consumers, they should work to reduce the sales tax rate year-round.”

Tax BurdenI agree, mightily, sales taxes are progressive, which makes them a poor tax, to begin with.  Adding sales tax holidays make a sales tax worse!  Yet, they are sold to the public as if they were the best thing since sliced white bread.  While it may be true that taxes are the cost of society, there are better ways to collect taxes, and there are infinitely better ways to spend taxpayer dollars than the profligate waste we see happening daily!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Political Dysfunction – The IRS Detailed in Spades!

Exclamation MarkEnlighten me, how is the taxpayer to “understand and meet” “tax obligations” when the agency who collects those tax obligations refuses to answer questions, actively hinders transparency, denies accountability and refuses scrutiny?  Through forced taxation, collected by fear of the stick, America has been abused since the IRS was created out of whole cloth, not from the U.S. Constitution, but the demented minds of a president and complicit Congress.

Under the heading of “Statutory Authority,” we find the following:

The IRS is organized to carry out the responsibilities of the secretary of the Treasury under section 7801 of the Internal Revenue Code. The secretary has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce these laws. The IRS was created based on this legislative grant.

Section 7803 of the Internal Revenue Code provides for the appointment of a commissioner of Internal Revenue to administer and supervise the execution and application of the internal revenue laws.”

Progressive

Progressive and progressivism is a political philosophy that empowers a more extensive and more intrusive government, a government without any shred of decency, and a government as intrusive as possible into your daily life.  Progressivism has been the catchphrase for all sorts of political hooliganism and liberty theft at all levels of government.  These abuses by the government have been made possible because, as everyone knows, progress, the root of progressivism, is a good thing; it is progress, right?  Not quite, according to the politicians and the bureaucrats who think they own you and me.Lemmings 1

Progress is defined as moving forward or onward towards the desired destination.  Also, progress can be advancement or development towards a better, or more complete, “modern condition.”  Archaic definitions sometimes provide critical insight into a word, and in this instance, the archaic meaning of progress was a state journey or official tour, especially by royalty.

Progressive means something relating to or characterized by progress without the political connotations, using new ideas, findings, or opportunities.  In the classroom, progressive relates to an educational theory marked by an emphasis on the individual child, informal class procedures, and encouraging self-expression to the point of sacrificing educational opportunities.  The meaning of progressive also refers to making progress, moving forward or advancing, increasing in severity or extent, expanding the base rate of something, and a few other definitions specific to the sciences of computers and lenses for glasses.Lemmings 4

President Woodrow Wilson (D) was a progressive, and many of his political detractors were regressive.  The distinction was drawn on a political scale to aid in differentiating and scorning political opponents concerned about the spread of government.  We need to be clear that any time anyone talks about progressive taxes, they discuss expanding the base tax rate.  Making tax increases sound more pleasant is a key to twisting the meaning of words and exercising tyranny on a population.

Regressive

As you might have probably guessed, regression is the exact opposite of progression.  Regressive relates to regression production, decreasing the rate as the base increases, and is characterized by simplifying structures in an evolutionary process.  Regression is the act of regressing. Regressing relates to the act of reasoning backward, moving backward to a previous and possibly worse or more primitive state.  It is also a privilege of going or coming back to something.Plato 2

Regressive is most used in refusing to cut taxes, so the opponents to “progressive” taxes are automatically regressive.  In actuality, progressive is all about increasing government size, government taxes, and government bureaucracy; thus, the opponents of progressive taxes should own and explain why being regressive is a good thing.  Yet, they never do, and representative governments across the globe are worse for this plastic language.  The consequences of ever bigger government and taxes, fees, surcharges, fines, etc., dreamed up as “progress.”

Tax Gap

Bait & SwitchDue to proposed legislation, the media has been quick to jump onto the tax bandwagon. The media are trying to drum up a lot of hype for the proposed bill, calling it fairness, catching the tax cheaters, working to bring “fairness” to the tax system, and progressing the tax system to close the loopholes improve tax enforcement.  The “tax gap;” is $600 million in mostly tax errors because the tax system is too complicated.  How do you tell the difference between tax cheaters and honest people trying to obey the tax authorities?  Therein lies the problem, to the IRS, everyone making an error is guilty until proven innocent, and either way, you will pay something to the IRS to get out of trouble.

What is the problem?  The IRS is going to use its newfound enforcement ability from this legislation to punish and abuse.  Congress is always talking about closing loopholes, but what they mean is allow political cronies and connections to keep doing what they are doing and force the rest of America to pay for the privilege of being abused.

Tax Enforcement

QuestionLong have I been concerned that the agencies of the Federal Government have become weapons against the citizenry.  With Lois Lerner and the 501 (C) (3) debacle still ongoing at the IRS, this concern about government weaponizing has only strengthened.  Yet, what do we find from politicians on both sides of the aisle; crickets, platitudes, double-speak, and an attitude of not caring.  What do we see from state and local government officials who are in a position to protect the citizen from run-away government, even less.  With the proposed legislation being kicked around, granting money to a Federal Agency with a history of sleight of hand, deviousness, and abuse of power, seems to be the worst mistake possible.  Why are the legislatures not taking the IRS to task and scrutinizing them more closely, ending the farrago of Lois Lerner and holding real people accountable for real crimes?

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Gasoline Taxes – The Epitome of Forced Taxation and Government’s Broken Promises

Exclamation MarkI do not care that Alaska has not increased its gasoline taxes in 50-years.  Frankly, the fact that the Federal Government has gone 27.4 years without increasing the Federal Fuel Taxes is not a problem.  Nor that the Federal Government has to either get the current taxes renewed, or the Federal Gas Tax goes to $0.042 a gallon is not a tragedy, but a good thing.  Gas taxes are not the problem; the problem is that the fuel taxes, excise taxes, surcharges, and fees built into a gallon of gas that equals more than $1.00 per gallon, are never prioritized to the infrastructure projects the tax was collected initially to pay for!

IronyI find the following ironic; the Federal Gasoline Excise Tax is actually two taxes combined.  $0.01 per gallon is paid as the Leaking Underground Storage Tank (LUST) fee.  Why is this ironic; because the government LUSTs after all types of money to misappropriate.  Before creating acronyms, one would think that the government would consider how much of a joke those acronyms will make.  One of the seven deadly sins that are constantly causing scandals for politicians, LUST!  Yes, I find this tax acronym very ironic and applicable to the discussion on why the roads and other infrastructure is rated as a C- and falling.  I find LUST very appropriate to the discussion on the misappropriation of funds and how the government wants to increase taxes to pay for something already well funded but where the money is consistently diverted.

QuestionPlease note that each state will have additional taxes, fees, surcharges, and tax projects built into the cost of a gallon of gas or diesel, aviation, or propane.  Fuel taxes are a tax scheme that seems to always pay for anything but roads, bridges, and infrastructure.  Some basic facts regarding gas taxes:

      1. The average state gas tax is $0.3006 per gallon of gas.
      2. The Federal Government gets $0.184 per gallon of gas.
      3. States have added other fees to a gallon of gas, including:
          • Environmental
          • Underground storage (payable even if the tanks are above ground)
          • Inspection fees
          • Certification and other weights and measurement fees
      4. If your state taxes Ethanol, your gas taxes include the Ethanol tax, as well as a fuel tax.
      5. All fuels are hit with taxes, and some of those taxes are disproportionately assigned to heavier vehicles. For example, diesel has a different formula for taxes due to the trucking industry using roads and bridges more; at least, this is the excuse used to tax diesel differently.

Gas Tax Revenue – Poor Roads and Infrastructure

Since I was a kid in Maine, who closely observed the gas tax debate, I have wondered the same question.  “Why are the roads so poor if the government is collecting all these taxes on gasoline?”  Now, keep in mind the words of Justice Oliver Wendell Holmes Jr. “Taxes are the price of civilization.”  Meaning that to “enjoy” the pleasure of a free society, the government will levy taxes.  But, the money collected does not have to go for what the tax was intended to pay.  Hence the broken promises of gasoline taxes.

Plato 2Fuel taxes are used for a myriad of uses, and the priority is all confused about how to spend fuel taxes:

        1. Schools
        2. Pay down the National Debt
        3. Mass Transit
        4. Cleaning up underground fuel leaks
        5. Law Enforcement
        6. Environmental Protection
        7. Pension Shortfalls
        8. State Debts
        9. Federal Highway Trust Fund Deficits of all types
        10. Enforcement Costs, including weights and measurement certification
        11. Roads
        12. Bridges

Now, do not forget the other obstacle in fixing roads and bridges, the labor costs, especially if the workers are unionized.  The government bidding processes for projects, especially in all forms of construction, are obscenely complicated, which increases costs long before a shovel hits the dirt.  If unions are involved, the time for the project and expenses will, at a minimum, double before the project completes, creating deficit spending.  I am not cynical here; I have witnessed this occur too often not to admit the truth.

Working DollarChris LeDoux sings a song, “Working Man’s Dollar,” which tells the story and details the difference between a working man’s dollar and the dollar in other places.  The fuel tax was first adopted in Oregon, and the proceeds were earmarked only for fixing, maintaining, and building roads, bridges, and other travel infrastructures, like tunnels.  Except, the money never is prioritized to the failing roads, bridges, and infrastructure costs.  The working man’s dollar, collected through forced taxation, is not respected by the government authorized through the ballot box to allocate spending.

I was in Maricopa County when a stadium was pitched to the residents to be located in Scottsdale.  A gas tax hike was proposed as part of an overall tax plan to pay for the stadium.  I asked, “If the stadium was worth the investment, why not just sell bonds?”  I never got an answer.  Not every citizen was interested in the stadium, not all citizens were going to benefit from the stadium, but every citizen was being asked to help pay for a stadium.  The stadium in that election failed, but the ideas did not die; a new location was proposed, and the voters there accepted the stadium’s tax hikes.  Want a surprising non-surprise, the stadium is built, but the taxes have never gone away, including property, sales, and fuel taxes!  Where is that money going?

Bait & SwitchNow, the Federal Government has a bunch of fuel taxes and surcharges (taxes called a fee) about to expire.  The question every voter in America needs to ask themselves is this, “Did the government properly use the funds dedicated to infrastructure?”  If so, then the fuel taxes should continue at the Federal level.  If not, then the fuel taxes should cease, for the government refuses to spend money according to the purpose it was collected.  Every single state in the union should be asking the same question and answering accordingly.

I lived in Albuquerque, NM., for several years.  To get potholes fixed, you had to ruin your car in an accident involving the street, then sue the city, county, state, whatever for the insurance costs.  Only then was that particular patch of road deemed important enough to repair.  There are bone-jarring, teeth-rattling, car-destroying potholes all over Albuquerque.  These never get fixed because the city has been too busy dumping tax money into a rapid transit project that is barely used, overly expensive, and desperately not desired by the taxpaying citizens.  They had “ART” (Albuquerque Rapid Transit) crammed down their throats by a judge.  ART has been a disgrace from Day 1.  Yet, money keeps pouring into ART instead of the many roads, bridges, overpasses, and other infrastructure that desperately needs repair.  A friend of mine hit a pothole, doing 35mph, dented his rim almost 2”, ruined his front alignment, and cost him a considerable sum.  That pothole is still there, still causing dents, still eating tires, and the city cannot fix it, the state will not fix it, the county was supposed to fix it, the Indian reservation owns it, and the federal government makes the pothole worse every day by traffic of federal employees going to work.

Tax BurdenHence the reason why fuel taxes are considered a tax scheme!  If you pass the buck enough, nothing gets done, and the money collected can be used in other projects while responsibility is determined.  Except, there is no money to fix the problem when the responsibility is determined, and the wheel just keeps spinning around.  Are you sick and tired of the games politicians play, yet?  Now, imagine your electric bill going up to pay for the fuel taxes not paid for by electric car owners, and tell me about proper government action and accountability.  My friend could not sue because responsibility cannot be determined; his insurance would not pay for the damages because the road damaged his vehicle; guess who was out almost $10,000.

Tax Scheme 2Some states are changing how the gasoline and other fuel taxes, including electricity due to the rise in electric vehicles on the road, are being priced and collected.  However, the problem is not the tax; it’s the fact that the tax never pays for what it was intended to when collected.  Some states got an increase in fuel taxes through their state legislatures this year.  Other states and the Federal Government are taking fuel taxes up in the coming months or the next legislating session.  But, not a single politician, anywhere in America, has stepped up to state the obvious, the current taxes collected are sufficient to pay for roads and bridges; we have to allocate more of the current money collected to roads and bridges.

Broken Promises – Broken Roads and Bridges

Question 3Is the problem apparent?  How many of your state taxes, lotteries, and other fees are supposed to pay for education?  Yet, education always seems never to have enough money.  How many taxes and fees go into the Department of Motor Vehicles and Department of Transportation, all of which are supposed to pay for infrastructure, e.g., roads, tunnels, bridges, overpasses, highways, etc.?  How much is the pension crisis costing your state, driving taxes and fees upwards, but the money never is delivered to pay down and lessen the pension crisis?

I repeat, only for emphasis, “America does NOT have a cash collection problem; it has a spending problem.”  At all levels of government, the elected officials are acting worse than drunken sailors on a seven-day binge, and this behavior needs to cease!  We cannot spend our way out of the hole dug through deficit spending!  The answer is not allowing the government to steal more money from our pockets, but to demand the money taken is used for the purposes intended!

Tax SchemeWe must tie political decisions to misappropriate funds to the legislators and executives making the decisions.  Thus, holding accountable the people who are being poor managers of the people’s money.  More importantly, when re-election decisions are made, the media, the influencers, and the political parties need to report this information.  Being able to hide funding shenanigans and criminal activities should never occur; businesses cannot do this, the government should not be able to do this.  Audits, investigations, and transparency are critical to putting the right people out of office and into prison, and keeping the honest and faithful stewards in office and working.

Knowledge Check!The size of government must shrink to an affordable level, from the city to the Federal; every government body in America, including those non-Government agencies acting like government agencies (USPS), need to be forced onto a diet of less money!  There is no excuse for the government to be the size it has become.  There is no excuse why we, the owners of the government, cannot demand government shrink, become efficient, and keep the promises made regarding money collected, used appropriately, and ended at the time promised.

Angry Wet ChickenAs sure as carts to horses and ducks to water, a Federal tax, fee, or surcharge, will be found shortly on your electric bill to cover the costs of electric vehicles on the roads.  When the Federal government does this, the state, county, and city will jump in with both feet, claiming “fairness” and “equality” so everyone is “paying their fair share” of the costs for infrastructure.  It doesn’t matter that you do not own an electric vehicle; the government will help you finance one through increased taxes and misappropriated fees collected.  Just like the “Obama Phone” scheme being abused by many people and paid for by a small minority.  Broken promises indeed!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

$1.8 Trillion Annual Deficit – The Problems with Biden’s Budget

Angry Grizzly BearWith gratitude to the National Conference of State Legislatures (NCSL), their analysis of the proposed budget was broken down, and some sense was made.  Not that the news is logical, acceptable, or palatable, just that the budget documents were broken down, which was helpful.  We start with the most bass-ackwards aspect of the budget by asking one question, “Where is the money supposed to come from?”

The 2022 Budget Proposal left President Biden’s desk requesting Congress to spend $6 Trillion and add $1.8 Trillion in new deficit spending to the bloated debt the government already owes.  “Who is going to buy the bonds and make money on this debt?”  When a person employs a search engine, asking this exact question, many answers come forward, and some do not make any sense.

Peter Schiff stated:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Thus the first problem with America’s debt and proposed budget transparent; there is no money that government can spend unless it first forcefully removes it from the owner.  That is theft, or as we recently discussed, legalized theft.  The Supreme Court of the United States (SCOTUS) has ruled that legalized plunder, legal theft, or forced taxation are the price we pay for civilization, thus making legal the government’s actions to steal money.Government Largess

Let me be clear; I am not an economist.  I select several very bright and experienced people to help explain things to me.  However, I can help others with less interest in economics understand what is happening in America right now to answer the question put forward, “Who is buying America’s debt instruments?”  The simple answer is that the Federal Treasury is buying the debt instruments, as the whole world sells their bonds and other American debt instruments.  What the Federal Reserve is doing is called “monetizing debt.”

Monetizing Debt

Gravy Train 3The definition of monetized debt is as follows. “Debt monetization or monetary financing is the practice of a government borrowing money from the central bank to finance public spending instead of selling bonds to the private sector or raising taxes. It is often informally and pejoratively called printing money or money creation.”  Money can only be created in two ways: selling products and services and lending money where the borrower pays interest.  While there are many different debt instruments, i.e., credit card, home loan, student loan, bonds, Treasury Notes, etc., the principle remains the same: you either sell goods and services to make money or lend money and make money on the interest.

Why does monetizing debt matter?

Two simple reasons the government allows debt to be monetized.  To hide debt, it doesn’t want the public to know about, and to absorb cash on the market as a tool to fight inflation.  Here’s the problem, there is too much debt on the government’s books to hide it from the public any longer.  Add to that the sheer volumes of cash in the marketplace after handing out money during COVID, and the Federal Reserve will monetize debt.  Even if the chair of the Federal Reserve denies monetizing debt, debt is being monetized.Burning money - THE JOSIAH BARTLETT CENTER FOR PUBLIC POLICY

In short terms, your pocketbook is going to take another hit on the chin, and possibly two.  First, your interest rate on privately held debt, credit cards, student loans, homes, etc., is going to go up, all while making lenders nervous and refuse to lend money.  Second, inflation is already making the dollars held less valuable.

Inflation first; inflation is the devaluation of dollars.  The government floods the marketplace with cash, and the currency you hold will drop in value.  For example, recently the inflation was reported to have been 4.6% higher year-over-year.  This announcement was made in April 2021, so all the money you earned last year suddenly became 4.6% less valuable this year, all before the interest rate increases affected those dollars.Inflation - 8 Things Everyone Ought To Know.

Case in point, the US Government sent me $1000 in January; I held onto those funds due to a move that was coming and spent the money in June.  However, between January and June, inflation moved up at a steady pace, and when I went to spend that $1000, it was only worth $850.  That is the power of inflation in your pocket.

Have you asked for a credit increase recently and been denied?  What about your credit limits on your credit cards, have they shrunk?  Both are indicators that the lenders refuse to lend due to the tremendous risks caused by fiscal insanity in the Federal Government.  What about home loans, have you had to produce more documentation, prove more income, and work harder to qualify for a loan?  What about student debt?  The government controls the lending of student debt.  Even here, the Federal Government cannot demand a lender loan money to student’s and many students have found their college expenses grow, and their ability to borrow shrunk.Inflation pickpocket | Cayman Compass

In a simple fact of life, every household in America understands perfectly. When your credit scores go down, your ability to borrow reduces, and it becomes harder to meet all your bills every month.  Every city, county, state, and even the Federal Government should know this lesson, but they refuse to believe problems arise when credit scores go down.  All because those elected believe they can tax some more, and the money magically appears.

Does money magically appear in your pocket; of course not!  It must be earned through working, selling goods and services, or trading your time for employment with an employer for a paycheck.  Does the law allow you to write blank checks, kite checks, backdate checks, or simply float a check waiting for a future payday; of course not!  Yet, this is what the government is doing right now with your money.  The government is spending money, promising the lenders that a future payday will be theirs, but the government has to spend money to get money.  Does that excuse work for you when the electric company, gas company, cellphone, and other bills arrive?A Helpful Chart : How Inflation Changes Mortgage Rates

The most heartbreaking statement I have heard in a long time was recently made by a physician’s assistant, who claimed, “Aren’t we all just one paycheck from disaster?”  The simple truth, mostly, yes!  Studies exist that talk about financial resiliency in America.  Financial resiliency is all about being able to weather a patch of trouble without losing your possessions in bankruptcy.  The conclusions were all but unanimous. Along with most industrial nations, America has no financial resiliency due to government fiscal policies that hinder saving money and the need to live on credit cards to keep the basics of life paid for each month.

When inflation is stealing the value of your money, no wage can compete with government theft, all before taxes.  Add in tax laws that are counter-productive, job-killing, and increase the cost of doing business, and the job you have becomes tenuous at best.  Add in the hidden debts the government is trying to hide, and nobody in America is making money.

QuestionWhat about those who consider themselves “Rich?”

The same problems you are having with inflation are the same problems everyone is having with inflation.  Let’s go back to my $1000 that became $850 through six months of inflation.  We all spend the same money, and inflation is killing everyone’s dollar equally!  Hence, I beg you, do not allow the media hype about rich versus poor to derail the point.  Inflation and monetized debt are killing the US Dollar, which is why so many foreign investors have dumped their US Debt instruments for safer financial shores.

While some people have more financial resiliency than others, everyone’s dollar is dropping in value.  Inflation and low financial resiliency mean making budget cuts to charities, hiring someone to maintain a lawn, and a host of other ways and means American’s share our money.  It can mean turning off services, weighing how much fuel can be used, and a host of other belt-tightening decisions.  All things the government should first be doing, and they refuse.24+ Inspirational Quotes For Unemployed - Audi Quote

Yours and my liberty and freedoms depend upon stable economic policy, firm fiscal policies, and elected officials scrutinizing the government for waste, fraud, and abuse.  Yet, what do we regularly find; fraud, waste, and abuse!  The Department of Defense has lost multiple trillions of dollars; not a single politician is asking for an audit and an explanation or is willing to withhold additional appropriations until the lost money is accounted for.  The Department of Veterans Affairs continues to mismanage funds, misappropriate funds, and waste money like overripe fruit; yet, still, we have zero interest from the politicians elected to scrutinize government.

I repeat Peter Schiff, only for emphasis:

The government doesn’t have money that it doesn’t take. Any dollar that the government spends is a dollar that the private sector can’t spend or can’t invest. The government has to take money out of the economy before it can put it back in. Nobody seems to understand this basic point because they see the Fed creating money, and they think, well, we just print money. They don’t realize that when they print money, they destroy the value of the money that’s already there. So, they’re not adding new purchasing power. They’re just redistributing it” [emphasis mine].

Inflation Quotes | Inflation Sayings | Inflation Picture Quotes - Page 2In redistributing your money, the government has proven they are the problem, and the solution begins locally!  Change your mayor, city council, county board, school boards, and every other elected official.  Getting the local governments in fiscal shape allows state governments to begin practicing fiscal health and sanity.  Then, we put people into the Federal Office more interested in scrutinizing the government than in writing endless laws and abdicating their legislative role to the executive bureaucrats and the judicial branch.

Knowledge Check!The budget put forth by President Biden is the height of insane, and I have only covered less than 1/10th of the budget problems in this article.  Granted, I covered the most egregious problem, but the fact that the legislative branch is even negotiating a compromise is beyond insanity and borders on criminal negligence!  We, each citizen of a representative government, must stand and tell our representatives NO MORE!  No more fiscal insanity, borrowing to buy votes, entering into debt obligations that make captives of unborn millions of other people.  No more will we allow them to buy votes to maintain power.  End the financial abuse of the taxpayer; your wallet will thank you!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Law and Ideas

Bird of PreySeveral days back, I came across some incredible quotes from Supreme Court Justice Oliver Wendell Holmes Jr. that started me thinking on several topics.  I beg your attention as we discuss the fundamental truths of the following two quotes:

The law is the witness and external deposit of our moral life. Its history is the history of the moral development of the race.” ~ Oliver Wendell Holmes, Jr.

The ultimate good desired is better reached by free trade in ideas [and] the best test of truth is the power of the thought to get itself accepted in the competition of the market.” ~ Oliver Wendell Holmes, Jr.

QuestionI am not here to debate the law.  However, in discussing these two quotes, predominantly since they originate from a Supreme Court Justice of the United States of America, we will discuss aspects of the law.  The same goes for religion and philosophy; it is necessary to discuss aspects of both religion and philosophy to discuss the law.  However, I am not here to debate either religion or philosophy.

The Law and Social Morals

2015, in a decision that shocked the American Nation, the Supreme Court decided Obergefell v. Hodges and same-sex marriage stopped being a state right’s issue and became a Federal issue, even though the Federal Government does not issue marriage licenses.  Using the two quotes above, we find the truth of both in the actions of the court.  The court decided that the Federal Government needed to “step into” a state’s right issue to prevent a kaleidoscope of legal decisions across the entire 50- and American Territories.Plato 2

What is wrong with 50-different states exerting their rights?  The SCOTUS decision states the following, “equal dignity in the eyes of the law.”  Apparently, SCOTUS forgot to read and understand decisions from previous justices who faced a similar moral issue.

I have no respect for the passion of equality, which seems to me merely idealizing envy – I don’t disparage envy, but I don’t accept it as legitimately my master.” ~ Oliver Wendell Holmes, Jr.

Same-sex marriage was all about envy, not rights, not liberties, not freedoms, envy!  Envy couched in the language of “equality.”  Love, devotion, sacrifice, family, all of it was smoke-screens and mirrors to hide envy.  Those who engage in bedroom practices that were not in the mainstream wanted their relationship to be a “marriage.”  With all the state and civil granted benefits involved.  The simple solution to this moral dilemma was to remove the government’s self-appointed authority to regulate marriage.  The day the state and local governments decided to regulate marriage was when citizens lost fundamental rights to keep the government out of their business.  One of the most significant privacy abuses in the world occurs every time the government forces a couple to register (license) a marriage.

ApathyWorse, the government forces you to pay a tax to get married.  By paying a licensing fee, the government taxes marriages, invades your privacy, and in doing so, provides you the ability to pay for the privilege of inviting the government into your bedroom.  The moral development of the law to govern society hinges upon justices not legislating from the bench, judges who refuse judicial activism because the elected representatives of the government are moving too slow on an issue, and judges who remain dedicated to the limits of the law.  Yet, the exact opposite has been allowed to occur by the elected representatives who abdicate their roles to the judicial branch, who refuse their duties as a co-equal branch of the government, and people who use the law for selfish ends and means.

Question 2What is more precious to you, government benefits, granted by the courts and purchased from taxpayers in another area, or privacy, freedom, and liberty?  How you answer this question should be revealing to you and a reminder of your obligations as a legal citizen of these United States of America, a free Republic (if we can keep it).  Freedom has a cost; the cost involves being involved in elections, voting smarter, watching and scrutinizing those elected, and monitoring the actions of judges and lawyers.

Privacy and Freedom – The Law and Ideas

From the US Bill of Rights and US Constitution as amended, we find that America’s founding fathers wanted an individual’s privacy held sacrosanct in American Law.  Unfortunately, what do we see in the laws of America the exact opposite?

        • Amendment I
          (Privacy of Beliefs)
          Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble and petition the government for a redress of grievances.
        • Amendment III
          (Privacy of the Home)
          No Soldier shall, in time of peace, be quartered in any house, without the consent of the Owner, nor in time of war, but in a manner to be prescribed by law.
        • Amendment IV
          (Privacy of the Person and Possessions)
          The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized.
        • Amendment IX
          (More General Protection for Privacy?)
          The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people.
        • Liberty Clause of the Fourteenth Amendment
          No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States; nor shall any state deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.

Knowledge Check!One might ask, where is the marketplace for ideas.  The answer begins inside the walls of your own home.  Except, if you enter your thoughts on social media, the Department of Internal Revenue Service has empowered your employer to withhold employment to express your thoughts inside your own home or on your social media accounts.  Worse, the government calls this a privilege of employment and a cost of doing business in a technological age.  Hence the first two places where ideas are testing truth, and competing for market share, are social media and your home.

Where else would one expect to have the freedom to share ideas?  Employment and religion are two other places where the government regulates and restricts ideas.  How many churches faced IRS sanctions for allowing political speech inside their walls, every single one!  What about employers; they limit the sharing of ideas on a host of topics under the language of diversity, inclusion, and risk.  Due to fear from the potential of people to become violent, the insurance companies and IRS allow your liberties, privacy, and constitutional rights to be curtailed, culled, and clipped as an excuse to protect your safety at work.

As a final thought, consider the following:

For my part, I think it is a less evil that some criminals should escape than that the government should play an ignoble part.” ~ Oliver Wendell Holmes, Jr.Never Give Up!

Playing an ignoble part in the confiscation, curtail, and culling of rights, liberties, and freedoms, has been the improper role of government since President Wilson (D).  He was allowed to do what he did by a complicit Congress and the K-12 educations of the populace.  The reason functional illiteracy is so rampant, the government in the 1860s approved Dewey’s ideas to make students dumber, purposefully, to ensure the government could steal power unconstitutionally.  By the end of the 1940s, the coup was complete, and you became the property of government to be used and abused as the government desired.  Some Sunday thoughts to begin your next week with; unfortunately, the ideas must lead to action if America is to be saved!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

Did you hear? The IRS Edition

Millstone of Designed IncompetenceFLASH:  20 May 2021, President Biden wants to spend $80 Billion on expanding the workforce of the IRS by 87,000 new employees over 10-years.  Riddle me this, $919,540.23 is the approximate amount per employee; Would someone tell me why the IRS needs to spend so much per employee?  Does this announcement seem particularly worrisome?  If not, please cease reading now, as I will never convince you to be wary of the Department of Internal Revenue Service. However, with its incredible price tag, if this announcement worries you, let’s discuss a few topics an expanded IRS means.

Where is the money to expand the IRS coming from?

Simple question.  I want clear and concise answers.  While President Biden thinks some of those funds will come from “catching tax cheats,” cheating taxes is a game for lawyers, and I want to know what the president means by “Tax Cheats.”  For example, will he further chase the rich people who are not paying their “fair share;” if so, when will Biden and Obama belly up and write a check for all the back taxes they owe?  When will the Clinton Machine be forced to become accountable for all the tax money avoided?  Are “tax cheats” regular people who missed a box, forgot to include some income, or cannot fathom how to fill out their taxes and made honest mistakes?IRS

Until Big-Tech did an excellent job of cleaning OIG reports for the IRS, I used to have an OIG report claiming that the Federal Employees owing the most in back taxes was the IRS.  Are they in the “Tax Cheat” category, or will the IRS employees continue to be exempt from audits and “fair share” taxpaying because the agency is overwhelming voting Democrat in every election?  The more I dig into the IRS; the more questions arise about “fairness,” transparency, accountability, and responsibility.

Politicized or unpoliticized, the IRS is a weapon.

Ziggy - IRS Non SequiturThere is a massive problem in the IRS; the “IRS Targeting Controversy” has never been settled at the IRS.  On 09 Feb 2018, the last non-profit targeting case was settled. The plaintiff sees no remuneration for the legal fees. The government had to admit it was wrong to target non-profits based upon political leanings.  The IRS is hoping lawmakers will see this last settlement and give them a break.  Yet, the core problems of being or not being a political weapon, the core complaint of the scandal, was never addressed!  The leadership in Congress stopped scrutinizing, and the IRS got away with browbeating people based upon political leaning.

Never forget, Lois Lerner, the IRS official at the center of the non-profit targeting scandal, who had contact with the U.S. President (Obama), pled the Fifth Amendment, and none of the elected officials did anything to get to the truth!  I will not allow the elected representatives off the hook to enable the IRS to become a weapon or remain a political animal!  America deserves better and can only obtain better through asking questions and demanding concise and truthful answers after transparent audits and investigations that conclude with punishment for wrongdoing!

Non-Sequitur - GovernmentThis leads to a simple question: Is the IRS a political weapon for Democrats and Liberals, or is it an apolitical unit of the government?  Let us test the current IRS leadership for a potential answer to this question.  17 June 2021, The Daily Signal reports that the IRS denied tax exemption to a Christian Group because the Bible the group adheres to is associated with the GOP (Republicans).  If that decision has you scratching your head, wait until you check out the rest of the story.

From The Daily Signal story, we find the following pretzel logic from the IRS.  The link is live; see the letter for yourself!

In an 18 May denial letter, IRS Exempt Organizations Director Stephen A. Martin said Christians Engaged is involved in “prohibited political campaign intervention” and “operate[s] for a substantial non-exempt private purpose and for the private interests of the [Republican Party].”

A “legend” at the top of the letter shows nine letters of the alphabet being used as shorthand to represent something. In this letter’s example, oddly, “D” represented “Republican.”

Specifically, you educate Christians on what the Bible says in areas where they can be instrumental, including the areas of sanctity of life, the definition of marriage, biblical justice, freedom of speech, defense, and borders and immigration, U.S. and Israel relations,” Martin wrote. “The Bible teachings are typically affiliated with the D party and candidates. This disqualifies you from exemption under IRS Section 50I(c)(3).”

Ziggy - IRS AuditTo me, it matters not that the letter D represents republican.  America is a Republic, and any political action taken can be connected to a Republican government.  Not necessarily the “GOP” as the Republican Political Party.  If the IRS official cannot ask questions, the voices inside his head speak louder than his abilities to make logical decisions. In that case, he does NOT deserve his position, having been promoted above his maximum level of incompetence!  In making this decision, the IRS official has declared that the democratic party does not ever use biblical teachings to reach conclusions.  Is Speaker Pelosi and President Biden aware of this fundamental change in political foundations?

Feel free to tell me in the comments section, do you feel the IRS Non-Profit Targeting Scandal of 2010 thru 2013 has been handled effectively and properly closed?  Better still, was it appropriate for Lois Lerner to plead the Fifth Amendment and not have legal actions taken? Finally, do you honestly trust the IRS to be an apolitical, unpoliticized, and neutral agency engaged in honest and forthright government business?

Details about the IRS.

Government Largess 3From irs.gov, we find the following, and it raises more questions than answers.  Under the heading, “The IRS Mission,” we find the following, poor grammar, wrong sentences, and detestable language and all:

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.

This mission statement describes our role and the public’s expectation about how we should perform that role.

            • In the United States, the Congress passes tax laws and requires taxpayers to comply.
            • The taxpayer’s role is to understand and meet his or her tax obligations.
            • The IRS role is to help the large majority of compliant taxpayers with the tax law, while ensuring that the minority who are unwilling to comply pay their fair share.”

Would someone at the IRS tell me, how are you “providing top quality service” when you cannot reach the IRS by phone, the office hours are limited, and answers are forced to come from hired third parties?  I have been forced into multiple-day issues with the IRS Website, no answers, no contact information, and no assistance until I hired someone who answered my questions at $100 an hour.  If the IRS reads this article, that is not how you define “top quality service.”

QuestionWhat is “fair share?”  Using this phrase, the IRS declares it is already politicizing the payment of taxes, as the expression “fair share” has been captured for more than a decade by the Democratic Party.  Using this phrase in your mission statement demands a straight and correct answer in the rest of your marketing materials.  Yet, no explanation has ever been found.

Enlighten me, the second bullet point, how is the taxpayer to “understand and meet” “tax obligations” when the agency who collects those tax obligations refuses to answer questions, actively hinders transparency, denies accountability and refuses scrutiny?  What are “compliant taxpayers?”  Through forced taxation, collected by fear of the stick, America has been abused since the IRS was created out of whole cloth, not from the U.S. Constitution, but the demented minds of a president and complicit Congress.

Under the heading of “Statutory Authority,” we find the following:

The IRS is organized to carry out the responsibilities of the secretary of the Treasury under section 7801 of the Internal Revenue Code. The secretary has full authority to administer and enforce the internal revenue laws and has the power to create an agency to enforce these laws. The IRS was created based on this legislative grant.

Section 7803 of the Internal Revenue Code provides for the appointment of a commissioner of Internal Revenue to administer and supervise the execution and application of the internal revenue laws.”

Gravy TrainAt least the grammar and sentence structure are better. However, having read sections 7801 and 7803 of the Internal Revenue Code, I have serious reservations.  For example, how did the IRS become the sole government agency in charge of defining an employee, controlling the employee/employer relationship, and acting as the force behind employment law?  When did Congress provide you with this authority?

Dont Tread On MeI repeat, only for emphasis, the following:
“The IRS governs every action made in an employment situation, and the IRS has given great latitude to the employer, making you the property of the IRS, with control granted to your employer. As a result, the IRS remains a danger to every American and the globe.  Why is the United States the only industrialized nation to not allow options to the employee/employer relationship, squashing innovation, curtailing small business opportunities, and unequally tipping the scales for large organizations?  Look to the IRS!  Want to point fingers, thank President Woodrow Wilson (D), his complicit Congress, and his executive orders!”

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Proper and Improper Role of Government – Part 3

Bait & SwitchThere many ideas I embraced as a child that brings me short mentally and cause some discomfort.  The biggest of these was the support of labor unions.  As a kid, I thought labor unions were the best thing since sliced bread.  I learned in K-12 how the labor unions had ended child labor, gave us weekends, Federal holidays, and the 8-hour day, among other tremendous and notable accomplishments.  Until I lost my job to a labor union guy who took four times as long to complete work, complained horribly and sent me to the unemployment line.  I never understood what he had to complain about, times were hard, and I lost a good job to a labor union member.

ApathyBecause of the hold, the Labor Unions have on government, the line between government policy and labor union influence is generally so blurred that confusion is bred as to why things work the way they work in government.  Unfortunately, every country with a representative government and labor unions has the same problem.  Labor unions are entirely Marxist in their ideology, but to keep the masses happy, instead of communism, we get rampant socialism instead.  J. T. Murphy writes specifically eloquently on the ties between socialism and the labor unions.  Frankly, I have never understood how a labor person can swear they love freedom and America while supporting tooth and nail their labor unions’ Marxist and socialist agendas.

Inflation and Socialism, plus the Captivity of Debt

Public Employment Retirement Costs Are At "Tipping Point"Public-sector labor unions are the number one reason many states in America have seen their credit ratings drop.  The debt of the retirement packages and pensions is a millstone around every state’s neck.  This is an absolute reality proven time and time again.  The pension crisis is so large that Forbes keeps coming back to this topic several times a year.  If you would like a primer on the public pension crisis, go here.  The public pension crisis is mentioned solely because it remains the number one budget item for too many states.  With that much money owed, the debt runs the state’s fiscal decisions, not people, and brings up the captivity of debt.

Look up the principle of “usury” in historical texts, and you find usury occurs when interest is charged on money borrowed, which creates captivity.  TheWalletcoach.com eloquently details how debt is captivity.  The oldest of historical texts, the Old Testament, is vehemently against charging usury of brothers and family members, but strangers being in debt captivity was okay.  Today, the confinement of debt, specifically the public pensions, leads the politicians like a goat to slaughter. But, unfortunately, none of the politicians can find the time to formulate a plan, gather their fellow politicians, and fix the problem.  Debt, to the height of the public pension crisis, creates inflation and leads to socialism, as the government runs out of other people’s money to pay for the failures of previous politicians to be fiscally literate and fiscally responsible.  Add in the labor unions’ consistent sticky hands, and the local and state governments are in deep trouble.  Add in the Federal Government’s debt obligations, and money trouble is a catastrophe!  Please note that catastrophe is not an “If” or “when;” it is a current issue right now!National Debt Graph + Bush-Reagan Voodoo Video - zFacts

16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, produced the greatest missive I have ever seen tying the principles of debt captivity to inflation and governments becoming socialized!  Historically speaking, Mr. Del Beccaro is 100% correct that the socialization of Greece and the fall of the Roman Republic are both tied to government debts. However, the Founding Fathers in America knew history, were literate, and they feared what would happen to this Free Republic (if we can keep it) when the government is allowed to rack up debts!  Every single publication I have on the Founding Fathers, and the Founding of America, come back to the bondage of debt and the problems with government debt. However, when the population demands “free benefits” from the government and uses their voting power to elect only those who keep the “Gravy Train” coming, socialism has been achieved in all but name!Government Largess

That fact alone should scare every member of the American Experiment into correcting their government!  Yet, what do we find, the exact opposite!  Frightening does not entirely cover my feelings here!

Socialism, Taxes, and The Workplace

Gravy TrainReturning to the pattern discussed on 16 March 2019, Tom Del Beccaro, writing an opinion piece for Fox News, discussed how taxes are a knee-jerk reaction to “keep that gravy train running.”  Therein lay the root causes for how socialism has been promoted in the workplace and how high taxes will eventually go!  I have written about this relationship for a long time, but please allow me to refresh memories.

In the United States, the Government Agency tasked with employment, employment laws, and employer responsibilities is not the National Labor Relations Board (NLRB); by statute, it is the Department of Internal Revenue Service (IRS).  The NLRB is only there to handle labor unions, labor union growth, and labor union law.  The IRS defines what an employee is vs. a contractor or knowledge vendor.  Worse, the IRS rigidly protects this relationship as a key to preserving the government’s interest (tax dollars) in keeping socialism in the workplace.  Some of my earliest articles deal with these exact principles and the socialized employee structures in which each worker and business is demanded to participate.Gravy Train 2

Upset with how your employer treats you, both on and off the employer’s property, there is only one place to put the blame, the IRS.  The IRS states the employer can invade your privacy, in your home, as an extension of “Risk Control” because your employer agreed to the IRS’s demands to pay taxes.  Your rights, freedoms, and liberties are curtailed, culled, and clipped in the workplace because the IRS demands the employer play ball with them, and your liberties are the price you pay for a paycheck.  Every time I see a labor union complaining about how the employer treats them, I want to shake the stuffing out of the leaders, for it is not the employer but the IRS that should be struck down and disbanded!  Yet, the NLRB will always side against the employer, and the labor union, a Marxist organization, wins, the IRS wins, and the employer and non-union employees lose. As a result, socialism in America becomes more powerful and influential.

Socialism and Mothers in the Workplace

As a means to improve the strength of the family in society, several religious organizations would love to see mothers provided the power to stay home.  Yet, socialism, as a fundamental operating principle, that all able bodied people must support the state, K-12 educators can rear kids, and the government acquires drones who do as they are told.  High fuel prices are no longer discussed on the nightly news because the government needs every able-bodied and disabled person working and asked the media to find something else to discuss.Plato 2

Why does the current president keep ducking questions about inflation; because the higher inflation goes, the higher prices are demanded, and the more people will rely upon the “Government Gravy Train.”  Unfunded liabilities (kited checks) are acceptable to socialists as a means of controlling the populace and keeping people in the game.  Higher taxes from inflation are good when it controls those in society who would raise their heads and ask questions under the thumb of totalitarian control.  If mothers returned home, how fast would demands for improved schools become the big issue in local politics, again?Gravy Train 3

My wife, a single mother due to divorce, while raising her two kids, relates stories of gathering mothers in Seattle to fight the school board and win.  Bewitched (1964-1972), the TV show reflects several times where Samantha got involved and changed local politics.  It used to be expected in local politics for mothers to have the ultimate last word on worthy politicians for whom to vote.  Yet, by increasing prices, mothers had to go to work.  It is now standard for politicians to get elected whose only desire is to keep socialism going, stealing liberties and freedoms while pontificating that the other party is at fault for your suffering.

Knowledge Check!I repeat, only for emphasis, the IRS remains the most influential, nefarious, and deadly threat to America.  America, what I am proposing will be a culture shock. It will turn many people onto their heads. It will appear anathema, all because we, the citizens, have watched the government become stronger and us the citizens weaker for so many generations.  But, the reality remains, we own the government, the government has been abusing us, and the time of big government to solve all the problems from a broken shoelace to fixing the weather has to end!  We must believe, gather knowledge, and act as a conjoined whole to make the necessary changes.

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

The Proper and Improper Role of Government – Part 2

QuestionThe following is the second part of the series on the proper and improper role of government. First, imperative to the discussion is a quick recap on the purpose of a government, and then we will discuss the actual role of government.  Second, the following cannot be stressed enough, America was founded upon a Judeo-Christian understanding and philosophy.  Other representative governments have removed the influence of religion globally, but America, thankfully, continues to keep it around.  Third, nothing herein is to be misconstrued as supporting any single religion, including atheism and agnostics.  My religious beliefs are not your business, just as your religious beliefs are not my business; we are not here to debate theology, philosophy, or anything but the government’s proper and improper role.

What is the purpose of government?

The second sentence of The Declaration of Independence is long but powerful:

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.”

The purpose of government is to “secure these rights… deriving their just powers from the consent of the governed.”  The rights the government is to secure are “Life, Liberty, and the pursuit of happiness.”  When talking about securing, we are not inferring that those rights come from the government, are tools of government, or can be dispersed by the government.  When discussing securing, we are talking about the government protecting against threats to, harm from, or the need to make safe from those who would do the collective body of citizens harm.  The government securing rights does not mean affixing those rights to an individual, as the individual already owns these rights.  The government’s purpose is to protect the body of citizens by making the body of citizens safe.quote-mans-inhumanity

The etymology of secure is vital to understanding the purpose and proper role of government. “Mid 16th century (in a sense ‘feeling no apprehension’): from Latin Securus, from Ee- ‘without’ + Cura ‘care.’”  Hence, without care for an individual, the government secures, protects, and defends the individual’s inalienable rights.  Not deciding what is good for the masses, not selecting winners and losers based upon the whims and wishes of a bureaucrat, but considering the entire mass of citizens without preference and defending their inalienable rights is the purpose of government.

What is the proper role of government?

Government LargessFrom many Judaic and Christian sources, one can find various systems of government in place throughout history.  From despots of the most vile to the judges of Israel, which brought liberty and freedom instead of kings, one can find just about any form of government represented in historical texts of ancient date.  More specifically, one can find the proper role of government, which is stated most simply in the Doctrine and Covenants (D&C) of The Church of JESUS CHRIST of Latter-Day Saints, specifically Section 134:2.

We believe that no government can exist in peace, except such laws are held inviolate as will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life.”

Is the proper role of government clearer? For example, suppose the government is only focused upon securing the free exercise of conscience, the right and control of [private] property, and the protection of life. In that case, that government is fulfilling its proper role.  Did you notice what is missing from the strict interpretation of the proper role of government?  Social services, arbitration, buying support through forced taxation, and much more.  Except, America was established as a Constitutional Republic with democratically elected representatives.  Thus, does America’s government have a different interpretation of the proper role of government?

Ziggy - IRS AuditThe founding fathers, and several of the first presidents in America, were considered statesmen. However, statesmen are not merely politicians, and politicians are never statesmen!  A statesman is a person who is well versed in the principles or art of government, actively engaged in conducting the business of government or in shaping its policies.  The statesmen are respected for their skill, diplomacy, power to communicate ideas, and being principled.  Thus, the statesmen are morally upright and can be trusted to understand why they are morally principled and why the law should be morally centered.  It cannot be stressed enough. The true statesmen values principles over popularity and works to create popularity for political principles in government operations that are morally sound and bring the most freedom to the most people.

Consider the following from Albert E. Bowen:

Right and wrong as moral principles do not change.  They are applicable and reliable determinants whether the situations with which we deal are simple or complex.  There is always a right and wrong to every question which requires a solution.”

The Duty of AmericansNow, returning to the proper role of government, any form of government instituted by man, we find the following as guidance in measuring said governmental role.  From D&C 134;1-2, 5:

1 We believe that governments were instituted of God for the benefit of man; and that he holds men accountable for their acts in relation to them, both in making laws and administering them, for the good and safety of society.

2 We believe that no government can exist in peace, except such laws are framed and held inviolate as will secure to each individual the free exercise of conscience, the right and control of property, and the protection of life.

5 We believe that all men are bound to sustain and uphold the respective governments in which they reside, while protected in their inherent and inalienable rights by the laws of such governments; and that sedition and rebellion are unbecoming every citizen thus protected, and should be punished accordingly; and that all governments have a right to enact such laws as in their own judgments are best calculated to secure the public interest; at the same time, however, holding sacred the freedom of conscience.”

From the US Constitution’s Preamble, a person will find why the government was instituted.  “… in order to form a more perfect Union (government), establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the Blessings of Liberty to ourselves and our Posterity.”  Between the Articles of Confederation, the Declaration of Independence, the US Constitution, and the offered verses, we find similar language discussing the purpose and role of government.

Thus, the proper role of government remains simple and easy to understand.  The proper role of government is to secure man’s inalienable rights, protect private property, and ensure each citizen may pursue their path of happiness.  A citizen’s path of happiness cannot infringe upon another citizen’s pursuit of happiness, steal their property, damage their property, or destroy public property.  Hence, the government must balance the inalienable rights of a person to commit crimes against the acceptable restriction to hold people accountable to socially acceptable laws while never infringing upon an individual’s conscience.  Therein lay the seeds of the improper role of government.Apathy

What is the improper role of government?

Ziggy - NSAThe improper role of government begins with refusing to accept that government power is limited to only those powers the citizens grant the government.  Thankfully, there is a simple test for understanding what powers the government has or does not have.  The test: Can you order your neighbor to pay for welfare for another person?  If not, the government does not have this right or power.  Can your neighbor call you to pay subsidies to them for keeping their lawn and home maintained?  If not, the government does not have the right to spend taxpayer money to subsidize another person’s housing.  This simple test relates the power of government, the government’s improper role, and reasonable government restrictions.

The line between the proper and improper role of government is thin but very distinguishable using the simple test described above.  Claude-Frédéric Bastiat was a French economist, writer, and prominent member of the French Liberal School. A member of the French National Assembly, Bastiat developed the economic concept of opportunity cost and introduced the parable of the broken window.  We present Bastiat as providing the logic behind the simple test.  “Nothing can enter the public treasury for the benefit of one citizen or one class unless other citizens and other classes have been forced to send it in.”  Hence, the simple test regarding a neighbor forcing you or forcing your neighbor is justified as the test for the proper or improper role of government.Patriotism

Forced taxation is a form of legal plunder, and since payment is the test for which powers are proper or improper for government, we must return to Bastiat for a delineation of legal plunder.

When a portion of wealth is transferred from the person who owns it – without his consent and without [just] compensation, whether by force or by fraud – to anyone who does not own it, then I say that property was violated; that an act of plunder is committed. … How is legal plunder to be identified?  Quite simply.  See if the law takes from some persons what belongs to them and gives it to other persons to whom it does not belong.  See if the law benefits one citizen at the expense of another by doing what the citizen himself cannot do without committing a crime.”

Government Largess 3Legal plunder is theft through the misuse of the power of government.  Consider the following example, your paycheck.  On that paycheck, the Federal and State governments demand money from you, not earned but forced through jurisprudence and legislative fiat, and those funds are given to another person.  As a private citizen, if I took your wallet and removed money from it, I would be guilty of theft and liable to the penalties of criminal and civil law, even if I did not keep your cash but donated it to a charitable organization.  Remember, the simple test that details the difference between the proper and improper role of government.

One additional piece of knowledge where the improper role of government is described and dictates that government cannot create wealth.  No government, at any time throughout history, has produced wealth.  The government takes from the citizens to survive, and the proper role of government would see every cent of forced taxation as a precious resource, needing to be accounted to the citizens forced to pay.  People create wealth, and if you desire a full explanation of how money is created, please see the following link.

Plato 2Why does it matter?

The government cannot exist without the consent of the governed.  Your inalienable rights should be the only concern of any government form, type, or methodology.  Yet, what do we find; legal plunder to buy other citizens’ support.  We find legalized plunder without transparency, without accountability, and without regard for those struggling to pay the forced taxation (legalized plunder).  We find Trillions in missing money in every government, where the representatives are not concerned, or even aware, of the money lost.  We see government spending above and beyond its intake, creating debt penalties for many future generations to pay for the benefits of the current generation, all because the government refuses to live on a budget.  We find bureaucrats treating citizens as property and abusing that property worse than any corporate polluter of the 1970s.

Knowledge Check!Look carefully, dear citizen; government only exists by the will of the governed.  Do you think it is time for a change in government?  Do you feel your government is fulfilling its purpose and proper role or is your government abusing its rights and powers as granted through the consent of the governed?  You must answer these questions and then decide where you stand.

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Come, Let Us Reason Together – Chapter 4

Bird of PreyPSA:  I am not a cynic; I understand the concepts being discussed, and it might appear that I am cynical about insurance companies by the tone of the writing.  Please note, I am generally in favor of the insurance industry.  However, when government mandates insurance coverage to spread the risks out for the benefit of the insurance industry, insurance has become a tax.  When a business offers insurance, but the co-pays and the costs are too high, insurance is no longer a benefit, and I want the option to opt-out of the employer “benefit.”

Insurance as a concept has been around for a long time, historically speaking.  Maritime insurance was a concept from the 1340s, and Benjamin Franklin dreamed up property insurance in 1752, becoming America’s first insurer.  Insurance separated investment as a method of managing risk, making investing more palatable and shoving the consequences of natural disasters, pirates, and other methods of losing onto another responsible party.  Some of the biggest names in insurance can trace their roots to the Great Fire in London in the 1660s.  We mention all of this, as a foundation for understanding the role and the meaning of insurance.

Interest vs. Investing

Ziggy - The GovernmentInterest, in this usage is referring to the advantage to a group or single person, as well as improving one’s welfare.  Maritime shipping would take on several loads, and people who owned those loads had a vested interest (having a personal stake in something) in seeing that ship arrive on time at its intended destination.  For example, sugar has been a huge commodity in history, and a sugar mill would ship the sugar to destinations for sale.  People interested in improving their welfare could invest in the sugar mill, or with a higher risk, expecting a higher return, invest in the shipping company, or the ship.  Thus, investing became one where opportunities to increase interest became popular.

The modern stock market traces its roots to the 1600s and the Amsterdam Stock Exchange, where for the first time, people interested in investing could be joined to companies needing investors, and money could exchange hands for certificates (stocks or bonds) showing interest.  A point of reference, the Dutch East India Trading Company was an original benefactor of the Amsterdam Stock Exchange, and sugar, molasses, and spices were the commodities being shipped.  Not saying all the Dutch East India Trading was in non-human commodities, but sugar was a huge driving factor for separating risk through insurance that drove the stock exchange creation.

photo_slideshow_maxOne final point, government’s have interests, generally traced to those paying the highest taxes, or with the most political connections.  Government’s do not have allies, as much as they have groups of governments that share a common interest.  For example, countries belonging to NATO.  NATO is the North Atlantic Treaty Organization and was designed for those countries with interests in seeing trade safely through the North Atlantic.  Not all the countries in NATO are friendly with all the other countries, but the common interest in seeing trade and markets operate smoothly has generated NATO and kept it alive since 1949.  Government never has friends; they only have relationships based upon mutual interests.  These are cogent points that must be remembered!  Incredible as it seems, interests change, and when interests change, relationships between countries and governments force ideological changes, and today’s relationship might not be the same tomorrow, which is one of the reasons why the United Nations is such a pile of hypocrisy and uselessness!

Insurance and Investing

Insurance as described by Webster’s dictionary is a practice or arrangement by which a company or government agency provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a premium.  The payments of premiums provide the insurance company with vast sums of cash.  Some of which are placed into long-term investments, medium -term investments, stocks, bonds, T-bills, and other methods of protecting the money paid in premiums.  The higher the risk, the higher the cost of the premium.  The one rule in insurance that has never changed from the 1300s is, if the insurance company can collect a premium, and not pay on a claim, the interest the premiums collect remains and the shareholders see larger returns on their investments.

Calvin & Hobbes - EnmityHence, lawyers and bankers have a vested interest in seeing insurance companies not have to pay claims, but still collect premiums.  Thus, contract law was established, and the insurance companies took full advantage of language to protect their premiums from paying a claim.  Another growth industry directly tied to the insurance industry, was special courts for hearing claims and awarding damages (Tort Law).  Cornell Law university provides some clarity on tort law, “A tort is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability.  In the context of torts, “injury” describes the invasion of any legal right, whereas “harm” describes a loss or detriment in fact that an individual suffers.”  Placing insurance companies squarely into the middle of tort law, and thus opening up new avenues for protecting against paying a claim from the premiums paid and invested.

Types of Insurance

ApathyImportant to understanding, Carl Marx and communism uses the ideas of mutual insurance companies to create a society where all share the risks, all benefit in the gains, at least in theory.  However, like insurance companies, someone in communism must enjoy all the benefits for taking the risk of establishing the community, and the reality of China, Cuba, and USSR become evident.  Where the leaders take everything for themselves, and the regular people live in squalor and depredation.

Janet Hunt wrote an great article on types of insurance companies and her article can be found here.  Currently there are nine different types of insurance companies available and are detailed below:

    • Mutual Companies – owned by policy holders who are also considered shareholders, sharing the risks, and benefiting from the lack of paid claims.  The mutual society of this type of insurance company shares dividends and when losses occur, generally the shareholders (policyholders) might not see an increase in premiums.
    • Stock Companies and Mono-Line Carriers – Stock companies are corporations and the distribution of dividends become payments to shareholders.  These insurance companies are very averse to paying claims.  Mono-line carriers only carry a single type of insurance.  For example, a company might only carry car insurance, specializing in just car insurance provides savings in overhead, and they might have agreements with other carriers to provide linked coverage for other insurance products.
    • Lloyds of London – When you want to insure the weird, Lloyds of London is the carrier of choice.  I cannot tell you how hard I have laughed at people willing to insure body parts, unusual, or high-risk items.  Share my laugh, look up what policies Lloyds has written insurance policies for and you too can have a good chuckle.  Lloyd’s does carry insurance for mundane and normal, but those policies do not make me laugh.  I feel sorry for the citizens of the United Kingdom, since Lloyd’s of London is backed by parliament, the taxpayers are on the hook for Lloyd’s losses eventually.
    • Alien Carriers – These are insurance carriers that are owned and operated in one country, doing business in another country, selling premiums, and paying claims.  Important to note about alien carriers, the lawyers charged with engineering methods to control risks to paying claims can create a nightmare using the laws of both countries.  Alien carriers can also be operating in one US State but be owned and governed in another US State.
    • Domestic Insurance – These are companies who are owned and operate in a single US State, or other geographical area.  For example, a domestic insurance company in Texas, might or might not have the ability to operate outside Texas, where it would be considered an alien provider.
    • Direct Sellers – Do not use insurance agents, selling directly to the public or insurance consumer.  To be considered a direct seller, the majority of the business occurs online or over the phone.  Direct sellers are pretty straight forward, and some of the biggest names in insurance providers are direct sellers.
    • Captives – A captive insurance company is a unique insurance provider, generally specializing in one type of insurance product for a specific industry or groups of individuals.  For example, if a business owns a fleet of vehicles, they will have insurance through a captive insurance company who specializes in handling the risks of fleet vehicles.  Another type of captive insurance company occurs when a parent corporation needs insurance but builds a branch of their company to handle the insurance instead of going through an insurance company.  In this model, the parent company keeps the premiums in-house and has a vested interest in protecting their investments.
    • Standard Lines – This is your normal insurance company with insurance agents, local offices, is regulated by the state board of insurance, pay fees into the general state guarantee fund, and are subject to the laws and ordinances of the state in which they operate.
    • Excess Lines – Think of these companies as insurance for high-risk individuals and companies, who cannot get insurance through a standard line company.

I know, that is a whole lot more than you think you want to know about insurance companies.  However, my only logic for making these distinctions in this article is to aid in understanding the classifications of insurance company, and some of the peculiarities in insurance products.  I feel the more you know, the better questions you can ask, leading to improvements in your bottom-line.

Emtional Investment CycleWith all the ties to investing, savings products, and the flow of money into and out of an insurance company, the discussion of insurance companies remains critical.  Especially when the government can create an insurance company, then mandate that company be used to provide coverage, creating a tax and fee that the taxpayer might not realize.  For example, around the time that states began demanding drivers have car insurance, GEICO began selling policies to non-government employees.  GEICO is an acronym for Government Employees Insurance Company, and by selling policies to non-government employees, the government is able to reduce the risk of insuring their employees.  Thus, an argument can be made that the government only created GEICO to reduce the risks of insuring government employees, as well as benefiting from a flush of cash from premiums paid.

Ziggy on GovernmentBoth Lloyds of London and GEICO leave me worrying for taxpayers.  However, since the US Government is the only provider for some types of insurance, specifically flood insurance, which is mandatory for homeowners living in a flood plain, one must ask more questions about where the money goes and why?  What steps have been taken to protect the public from large scale incidents where the insurance company will have to make massive payments?  What does the government invest in to protect the premiums paid against the time of claims?

When a person begins discussing savings instruments, investments, and the links between insurance companies and government, a lot of potential questions arise, and the answers become more sparse inversely to the specificity of the questions asked.  For example, if a savings account interest is so low, due to inflationary spending by the government, what interest does the government, as a holder of savings accounts, receive for their investment?  Where does the government invest their premiums from insurance payments?  How is the government protecting their customers from inflation as a result of poor fiscal policy?Plato 2

Never forget, an insurance company must pay dividends to their shareholders who have invested interests (money).  GEICO is a Berkshire Hathaway company, and stopped being publicly held in 1996.  The questions for why the Government Employee Insurance Company is wholly owned and operated by Berkshire Hathaway opens a lot of questions.  This would be akin to Lloyds of London being sold to a private company, where parliament stopped caring or backing Lloyds.  Why becomes a major question requiring detailed answers.  Look at the political situation in America at the time of the sell, and more questions rise, and less answers are provided.

Knowledge Check!America, when it comes to cash flow, money, and government fiscal policy, we need answers.  We need the elected representatives to understand basic economics, and we need to hold a tighter rein on those elected representatives.  The current fiscal health of America is poor, solely because of the elected representatives and their bureaucratic minions.  We must have a solution that protects America, and this solution needs every citizen involved and engaged.

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.

NO MORE BS: Come, Let Us Reason Together – Chapter 3

Making Money Online: A Guide on How to Earn Money From Home | ResellerClub  BlogWhen a person discusses making money, what does the phrase “making money” mean?  When talking about money, we are not discussing printing actual cash; while that is certainly a way to create money, that always leads to inflationary problems.  Simple economics relates there are two different avenues to make money.  These methods are as old as the Old Testament or recorded history, and every single civilization has used these methods.  The first method is to save money, where interest is paid while someone else uses your money to create products and services, bet on the futures markets for farmers, ranchers, etc., or stock and bonds markets.  Regardless, the first method generally involves receiving interest from saving money.  The second method is also well known; you borrow money and pay usury (interest).  The people who save money make money on those who borrow money and pay the penalty interest.  Through defaults on loans and bankruptcy, the unpaid interest penalty causes risks to increase, and classes of borrowers are created.  Risks also raise prices, remove the ability to borrow funds, and establishes another market, insurance.Taxpayer Money Cartoons and Comics - funny pictures from CartoonStock

In Las Vegas, the saying goes, “The house always wins.”  In simple economics, the house is a runaway government that claims, “let’s make things more fair to lower-income earners.”  In reality, they make the low earning income earners and fiscal illiterates, suckers, betting on the government to save them every time they make poor fiscal decisions.  These fiscal illiterates come in every shape, size, color, culture, and financial background in our modern times, but these two ways to make money remain essential to the following article.  Please note that the insurance topic will be covered in a later article; for now, just keep in mind the two methods of creating money, saving money and earning interest, and borrowing money and paying interest.

The Radical Theory That the Government Has Unlimited Money | Occupy.comThe Federal Government during this COVID-Hysteria has paid out vast sums of money, some of which in loans, placing the businesses who borrowed at significant risk, and other sums as payments to individual people.  Either way, that money is not “Free Money.”  Those funds were borrowed from somewhere, and the government will have to pay interest on those dollars borrowed.  When governments borrow money, higher taxes are a direct result from the school board to the Federal Level.  Except, every person in the world will have to be now also penalized a second and third time for the government borrowing money.  Inflationary prices are the second penalty for government spending/borrowing.  Lower interest rates on saving money are the third penalty for government spending/borrowing.

Deficit and Budget Cartoons | Cartoons | US NewsThe secondary and tertiary penalties are often called hidden penalties, or fees, that occur as natural consequences to the government borrowing money.  These penalties cannot be escaped!  The higher the inflation goes, the more people cannot borrow money, the higher prices go, and the less paid as interest for saving money, even if stocks and bonds continue to be traded at record levels.  Look at the stock market growth as the government has borrowed more and more money over the years, and you can trace this pattern.  As the stock market grows, savings accounts empty, and those savings accounts which remain are paid less and less interest year over year.

How to Make Money Online Without Using Google AdsenseThe banks, credit unions, and other saving institutions and markets will continue to use other people’s money on the stock exchanges and futures markets to return a profit to shareholders, but the account holders do not earn the same as a shareholder, even though their money is what is being bet on the stock exchanges, futures markets, and in government investment instruments.  Thus, one needs to understand these essential money creation tools to judge the following facts correctly.

      1. Some states and cities are about to be given $360 Billion in government stimulus to spur post-COVID-economic growth. Laying aside the facts previously covered that spending does not “spur economic growth.”  We, the citizenry, need to understand the money being dumped onto these states comes with a very high price for us individually.
      2. The money being dumped on the states will not be fairly divided but divided by political connection! The pattern was established long ago by the Federal Government and has been used every time the Federal Government wants to reward certain states while punishing others.
      3. There is no such thing as free money. Never has, never will, even money found on the street is not free.  The money found on the street was a loss by the person who dropped the money.  Hence credit and debit are the terms of money, for money cannot just disappear.  A credit to one person always creates a debit to another person.  Simple economics and the credit/debit of money are universal and historically accurate in every economy man has ever produced.
      4. Credits in one category have to come from somewhere as they travel to another area as debits.
      5. Debits in one category have to come from somewhere as they travel to another area as credits.
      6. Money cannot disappear. Money can be physically destroyed, but it never evaporates like water moving from a liquid into a gas.  Money travels, money travel, can be tracked, and even cash comes with these same conditions.

An easily understood example is paychecks.  Your employer pays you for your time as a credit to your wallet.  You deposit your paycheck (a credit to the bank) and immediately start paying bills (debits) to those whose services you enjoy (credits).  Make sense; the debits of your employer to you as a paycheck comes from both the sale of goods and services and through investors who expect to be paid for their continued contributions to that business.  The employee is not “making” money when they are getting paid; they have traded time, sweat, and labor; no money was created for a paycheck.  But that paycheck allowed that employee to pay for groceries, clothes, fuel to get to work, along with other goods and services.  Credits and debits tell the story of where money travels, recording prices for goods and services along the way that governments are supposed to understand as they set tax rates.  However, the more a government borrows and spends, the more the tax rates are set not by people in government but by the penalties of interest.

lb0602cd20160601043644 | Peter Grandich and CompanyMany, if not most, of the American States, are in this predicament right now.  The Federal Government has been in this predicament since at least the 1960s due to the imbalance in trade going to China, the loss of manufacturing jobs in America, and the incredible rate of spending the government has done since WWII. The states and the federal governments are in this predicament also because of union wages.

I am not anti-labor union, I do believe that labor unions are a tremendous legal Ponzi-Scheme, and the victims of labor unions are the people forced to pay higher taxes for the wages and the retirement benefits, as well as the medical, vision, dental, and other benefits of union workers both in the private and public sector.  I also firmly believe that government workers should never be allowed to unionize as the government pays the wages through forced taxation.  In the New Testament, regardless of how you perceive Jesus Christ, there is a story about the Pharisees and Caesar’s Poll Tax which was grievous to be born by the conquered nations in the Roman Empire.  As a point of interest, every time taxes are mentioned in the oldest books known to man; they are always referred to as grievous, or in a negative term; why, because taxes are always a penalty, a legal way to weaken the populace and bribe the citizens with their own money.Chris Hedges Quotes | Labor Unions Rise Against Wage Slavery ...

Historically, conquered nations used to be forced to pay tribute to the conquering governments for the purpose of keeping that nation weakened and unable to rebel sufficiently to overthrow the conqueror.  When standing armies and navies became the norm in history for nations to keep, taxes followed to pay for the standing armies and navies.  Throughout history the story of tribute and taxes have driven people to rebel, become slaves to be bought and sold, and prisons to fill up when the citizenry could not, or would not, pay the tax collector.  The same tax collector who incidentally received for his time, wages from the taxes collected.  Many times, the tax collector was also known to the population as a neighbor, making the paying of taxes a mental as well as a physical burden.  When you have personal friendships with the conquered nations representatives, the story of Ben-Hur becomes more poignant and the appearance of the burdens of the conquered as bitter bondage is better understood.

Gary Varvel's Editorial Cartoons - Lemonade Comics And Cartoons | The  Cartoonist GroupMy aim is to help improve understanding and open the discussion on money, taxes, and what your government has done in the name of “COVID-Relief.”  When the fraudulent president considers inflation to not matter,  one must begin asking why inflation was a major issue when President Obama dumped money into the economy, but magically, President Biden can sleep peacefully knowing there are no inflationary concerns.  The more the current sitting US President speaks, the more I wonder about who is pulling his strings to make him talk!

© 2021 M. Dave Salisbury
All Rights Reserved
The images used herein were obtained in the public domain; this author holds no copyright to the images displayed.