The Topsy-Turvy Liberal View of Taxation

By Anthony Gregory, The Independent Institute

Obama insists that the United States can?t afford to maintain corporate tax cuts. As with all modern liberals, when he says the U.S. can?t afford it, he means the government can?t afford it without cutting spending. With nearly four trillion dollars of expenditures a year, I suppose it?s very understandable that the president, as most of his ideological ilk, view tax cuts -- signifying where the government is refraining from taking privately owned money in the first place -- as a reasonable ?cost? to ?society,? that ought to be phased out, long before the empire, police state, and trillions of dollars in domestic goodies are trimmed back more than a nominal amount.

It is not only liberals. Some conservatives also spread this myth that tax cuts are the same as subsidies -- an area of government spending, rather than an area where the government is seizing less than it potentially could -- as we saw a few months ago, when a dozen conservative lobbying groups signed on to a petition demanding the end of tax credits for certain energy interests. This is an unfortunate and retrogressive retreat from the early American conception of taxation, an ideal that animated a revolution over 330 years ago and that is ostensibly being celebrated this very weekend. Taxation, after all, is the government using force and the threat of force to exact revenue from the private sector. It is warmed over tribute, a practice embraced by the ruling classes going back at least to ancient Egypt. The American colonists resented tax rates that were miniscule by today?s standards. And at their best, they saw taxation as an instrument of tyranny, rather than something to ensure was never lifted because society could not ?afford? it.

Some will argue, validly, that corporate interests do in fact benefit from state intervention -- various monopoly privileges, direct subsidies, regulatory advantages, preferential treatment, government contracts, protections from common law liability, and so on and so forth. But then the answer should be to eliminate these advantages, not counter them with tax increases. Indeed, if Obama thinks corporations have it too easy, and also wants honestly to deal with the deficit problem, he should work to eliminate or prevent, now and in the future, the vast agricultural subsidies that distort the market and mostly end up in the hands of rich corporate farming interests, the cushy contracts doled out via the military-industrial complex, the enormous bailouts and moral hazard pervading the financial sector, the stimulus spending that goes to favored businesses, the energy subsidies, the auto bailouts, the grossly over-zealous federal enforcement of patents, and the hundreds of other ways that the federal government actively redistributes money from the poor and middle class to the politically connected rich. Some of the left would even join him in much of this endeavor.

But he has no interest in that, and neither do most mainstream liberals, or most conservatives for that matter, because cutting tax credits, rather than eliminating corporate benefits, expands the power of the state. Ridding of corporate welfare and privilege would mean scaling back state power and diminishing the ability of politicians to play favorites, secure campaign assistance, and attempt to centrally plan the economy.

Taxation is a process whereby the government actively confiscates wealth that it didn?t earn. Even most of the somewhat corrupt businesses that, in our mixed economy, do not make all their profits due solely to free market principles but with the help of state intervention, are paragons of moral virtue and economic efficiency compared to the state itself. The state?s taxing power and thus its budget should be scaled back as much as humanly possible, for every dollar it takes without any ethical claim to it, it uses to solidify its own power and, in most cases, spends inflicting mayhem on the economy and social order. The liberals of the early American era -- classical liberals, of the Jeffersonian sort -- recognized these basic truths, and in their more honest moments, opposed the taxing power as a matter of principle, and did so in defense of the common man. Today?s liberals have turned the great American tradition -- identifying taxation?s immorality and opposing the institution -- on its head, calling tax breaks an instance of government spending that ?we? cannot ?afford.? Don?t be fooled by this sleight of hand. Taxes are one of the major prices we pay to see government wreck civilization, and reductions, cuts, exemptions and credits, although often implemented for disingenuous reasons, are nevertheless islands of freedom in a sea of tyranny.

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The Private Fireworks Show Of My Dreams

Chris | InformationLiberation

I just witnessed the private fireworks show of my dreams. At 10:00PM here in Ocean City, Maryland the government put their old boring taxpayer extravaganza money burning fireworks show on. It was 10 minutes of blas? fireworks being launched straight up into the sky. The finale was at least nice, they launched about 1,000 fireworks within a minute or so. Nonetheless, there was little excitement and little variety, it was just another typical "orderly" fireworks show at taxpayers expense.

When we got back into our condo, we heard huge bangs going on out on the beach. We went outside onto our back balcony, and that's where we had a front row view of the most spectacular fireworks show I've ever seen. There was seemingly two private citizens who were launching many of the same fireworks the government just shot, they must have spent thousands of dollars and been professional pyrotechnics, they launched literally thousands of them, yet they actually had even more fancy fireworks mixed in! There was people lighting paper lanterns and launching them off into sky, tons of people lighting roman candles, people shooting simple rockets, there was even a series of highly dangerous "screwy" fireworks which shot off one after another, many going directly in the direction of people's condos! The danger was palpable, the explosions were huge and directly before us, at one point I even ducked for cover! All this went on for easily an hour straight! Needless to say, the government would never grant a permit for such a spectacular show!

I said in my last article on July 4th, I'd only be happy when the fireworks shows were put on by private citizens. I just witnessed such a show, it was absolutely spectacular!

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so... you want charity.

"please sir, can we have some more fireworks"

"sir, your fireworks burned my house down, what do you mean you don't have insurance for that?"

no doubt his ever growing group of spectators will pick up the trash when they are done, and they will completely respect private property. or maybe that private citizen will also pay to clean up the mess that all those people leave?

i can't believe you're crying about the taxes spent on a fireworks show, one that you attended, then complain when not enough money is spent on it.

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4th of July Be thankful the small Easter Shore city of OC could have fireworks. They pulled off what Chicago, Tampa, and many other larger cities could not provide their citizens. You know what it's like to show up with a few hundred people and there be no fireworks? It leaves you with an "America has Died" feeling.

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Show Love to the Merchant Class

by Jeffrey A. Tucker

People can be downright nasty to store clerks and stores. It's their right: a feature of the market is that you don't have to trade with anyone in particular. And yet, it still troubles me when people are so dismissive of attempts at entrepreneurship. Why not refrain from buying and walk away? Why hurl invective or behave in a rude way?

In the sports store the other day, I heard customers muttering that this glove is too expensive, this tennis racket is too tightly strung, this shoe is too gaudy, this exercise equipment is not all it says, and that the store should carry this brand of ball, not that one. Most people are happy, else the place could not be in business, but other people (again, rightly) just assume that it is their right to dislike, refuse, cut down, put down, and generally dismiss any merchant with a wave of their hand.

Compare to the scene at airport security. This same class of citizen marches in lockstep, permits himself or herself to be subjected to invasive searches, holds the tongue even when subjected to barking orders from the TSA, and even allows property to be confiscated from personal bags. No one dares utter a word of protest or even complaint for fear of landing in the slammer. The goal is just to get to the other side of the government barrier, where the mini utopia of airport commerce awaits to serve us in a real way ? and that hamburger and beer had better be served up immediately, else we will demand our rights!

We are masters of the universe as customers and as compliant as lambs when acting as citizens. And perhaps that's easy to understand. The government has a gun pointing at our heads. The merchant is trying to persuade us to part with our money in exchange for goods and services. One won't take no for an answer; the other sees no as just part of daily life.

Still, we should be more conscious of the difference, and appreciate what it means. The class of people who have chosen the path of persuasion over coercion are deserving of our gratitude even when we don't buy from them. The merchant class is that which makes everything possible in our lives: our homes, our food, our medical care, our clothing, our air conditioning, our computers, our music listening ? absolutely everything that makes daily life tolerable and joyful.

We are too often tempted to think that the gas station, the drug store, the restaurant, the fast-food franchise, and the mommy-owned cupcake bakery are just a given part of the structure of our world. They are not. The decision to open a business is absolutely wrenching because the risk of failure is so high. The future is unknown in either a macroeconomic sense (will the economy collapse with falling incomes?) or a microeconomic sense (maybe no one really wants to buy my stuff). Often it involves cashing out retirement savings or being in hock to the banks. No matter what the business plan, it is scary.

And it's not only about money. You end up buying lots of capital equipment that is not easily converted to other uses or sold at anywhere near the price you bought it at. Custom chairs, tables, signs, and other decorations are all a pure waste if the business doesn't work. Then there is the issue of people. You have to hire employees and they must get paid long before the point of profitability arrives ? if it ever does. You are suddenly responsible for them.

You call yourself "boss," but you know the truth. You are responsible but not really the boss. The bosses are the consumers whose fickle ways can make or break your new livelihood. You are completely at their mercy.

Then there is the issue of marketing. You believe in your product, but you can't do it all yourself. You have to hire others to push, market, and sell. It is necessarily true that these people you hire are not as strong in their belief in your good or service as you are. They must be a "salesperson" of fame ? someone hired to be excited and interested in the craft but who is most often more interested in other things.

Never underestimate the problem of inventory, which requires daily entrepreneurial judgments. If you are selling plywood, for example, and your first month's sales are far beyond your expectations, your battles have just begun. You must make a judgment about next month's inventory. Buy too much and you squander all your profits. Buy too little and you lose customers who never come back. Your guesses must be close to correct all the time. But you have no crystal ball. And this problem never goes away: whether you succeed or fail, you never know whether more success or failure is around the corner.

Then there's the competition. Anyone is free to copy and replicate your successes. The more you succeed, the more you inspire imitators who are pleased to do exactly what you do but somehow manage to do it at a lower price. This means that you must constantly stay on your toes and innovate. At the same time, you have to constantly watch your back. A bad day of sales could mean nothing or it could mean everything. It could be a bump on the road to glory or the foreshadowing of disaster. There's no way to know for sure.

The forces of competition in a dynamic market are constantly working to take away your future successes. For the currently successful business, the market system amounts to a giant conspiracy to reduce your profits to zero. The only way to fight back is to serve others with ever more attention to excellence.

And yet, no matter how much your plans work out, there is nothing you can really count on for the future. Any day, any hour, it could all dry up. The consumers could go away. The fashions could change. The tastes of the spending class could shift. You are utterly and completely dependent on the subjective whims of everyone else. No matter how much determination you have, in the end you just can't control what others think or do. This is as true of the lemonade stand as it is of Amazon.com. No matter how big you get, no amount of money can buy a reliable fortune-teller.

Why does anyone do it? Why does anyone become a merchant and an entrepreneur? The usual rap is that people are in it for the money. But there is no bucket of money to grab. The money may or may not be there. And when it is there, it usually ends up being poured back into the business itself in order to stay on top. So why do people do it? It has to do with the dream of success, the hope of making a difference, the living out of a vocation, the fulfillment of an ambition to serve and make a difference. This is what drives the entrepreneur.

And how do we repay them? We snarl and sneer, refuse to buy, criticize at the slightest misstep, and otherwise refuse to give them credit for anything at all. We call them greedy and dismiss their pleas to buy as craven marketing. The state hectors these people with regulations, taxes, mandates, and impositions far greater than the rest of us experience, and yet people call for ever more.

Clearly, the merchant class is treated now as it was in the ancient world: as lowly and unfit. And yet here's the truth: the merchant class is the class that brings us all the things we love the most. We depend on them, and they depend on us.

People living in the age of the Leviathan state often feel powerless to do anything about the state of the world. I would suggest that one way to fight against the takeover of society by the state and its minions is to show a greater appreciation of their opposite. We should show love to the merchant class. We should begin by intellectually appreciating what they do for us. We should go further to actually say to the merchants how highly we regard their vocation.

Managing our affections is one way to fight back. Show love to the things and the people who are doing what is best for society and are providing a model for others to follow. The model and ideal of the kind of peaceful and prosperous society we want to live in might be as close as the convenience store right down the street.
___
Jeffrey Tucker is the editor of Mises.org and author of It's a Jetsons World: Private Miracles and Public Crimes and Bourbon for Breakfast: Living Outside the Statist Quo. Send him mail. See Jeffrey A. Tucker's article archives.

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Bathing in Irresponsibility

by Richard Shwartzman

To borrow from Neville Chamberlain, there is peace in our time here in Pennsylvania. Gov. Tom Corbett on June 23 signed into law a bill that bans bath salts, thereby saving us from self-responsibility.

The Keystone state is now the 21st state in the country to have a law prohibiting the possession or sale of these products that have been legally sold in head shops and tobacco and convenience stores for about $10.

The bath salts in question are synthetic drugs, and reports make these things sound like the second coming of LSD, or maybe they?re just reflecting the same fear-mongering, authoritarian attitude over drug use as was prevalent from the Nixon, Carter, and Reagan eras to the Clinton, Bush, and Obama eras.

?If left unchecked, synthetic drugs could have developed into the most dangerous drug crisis since methamphetamine labs found their way into our state,? the governor reportedly said when signing the measure.

These particular bath salts ?can cause delusional, violent behavior,? the report said. That sounds a lot like the bogus, bad-trip propaganda stories about acid.

Delivering or intending to deliver the salts carries a five-year prison term and a $15,000 fine. Possession brings a one-year sentence and a $5,000 fine. As if our prisons aren?t already overcrowded or court system clogged.

What the bill really does is prolong an already failed drug policy, a policy of militarized police waging a war on reason and liberty. It?s another war without end ? as is the war on terror ? one that can never be won.

...Continued

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ThinkProgress says 'Bachmann fails Econ 101' because she doesn't think inflation is of the lord

Apparently, Michelle Bachmann is a complete idiot because she doesn't think the government should print money Zimbabwe style. Here's the ThinkProgress article where they assure us even republican economists love government money printing, who'd a thunk?! See The Economics of Deflation by J?rg Guido H?lsmann for a thorough explanation of why these inflationists are wrong.

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Couple moves 'off-grid,' green police force them back and order them to get on welfare

Injunction to move by the end the of month
Mid Devon Gazette

A COUPLE living an "off-grid" lifestyle say they face prison unless they move from their own land in Willand and return to an existence in the benefits trap.

Stig and Dinah Mason bought Muxbeare Orchard after a sudden windfall allowed them to quit their impoverished lives on a Hertfordshire council estate two years ago.

The Masons have transformed what they described as a derelict four-acre plot into a haven of self-sufficiency boasting a 400 sq m allotment, a polytunnel and greenhouses to grow fruit and vegetables, chickens for egg production and an orchard they have regenerated by planting around 14 new apple trees of various species.

The couple, who have two boys, aged eight and nine, say because they moved onto the site in order to work the land, Mid Devon District Council is turfing them off as officers do not consider them to be conserving an agricultural area.

They faced magistrates on March 31 when they were served with an injunction to leave within 28 days from June 1.

Dinah, 35, who spent a year with her husband clearing four-foot high nettles and thistles which engulfed the four-acre site, said: "How anybody can say the orchard was being conserved before is beyond my comprehension."

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This is happening everywhere and must be stopped at every level. These stories need to be reported, illustrated, and re-reported everywhere that will allow them to be told. WE invite people to write synopses of the same and send them to deepinthedirt@quartzsitemineshaftdotcom and the more info that can be passed on the better. ALL OVER THE WORLD! Corruption wears many hats.

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Charlie Veitch: A Rebuttal

Charlie Veitch: A Rebuttal - informationliberationinformationliberation
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Charlie Veitch: A Rebuttal
This is a good video responding to Charlie Veitch's 'conversion' from truther to official fairy tale true believer. Apparently, he is taking part in some show for the BBC where he met a bunch of government 'experts' and they 'like totally' convinced him 9/11 happened exactly as the regime described! Now he rejects the 'religious dogma' that is questioning the government's bullsh*t! This guy is a weak minded idiot. On the bright side, this is a great rebuttal. - Chris, InfoLib
http://wideshut.co.uk - Analyzing Charlie Veitch's U-turn on 9/11 and rebutting some of his points.

Igan Interview:
http://www.youtube.com/watch?v=SavpCQlu2GA

Brit Interview:
http://www.youtube.com/watch?v=LMX3up1IHAY


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Comments 1 - 2 of 2Add CommentPage 1 of 1LygeiaPosted: Jul 04 2011, 1:26 PM

Link 752Charlie Veitch is probably just an opportunist who used the 911 movement to get the attention of the mainstream, which he promptly joined once he had the chance.Out-sourcedPosted: Jul 05 2011, 3:20 PM

Link 151200A very superficial activist (and/or researcher) sums this character the best.

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