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Cantor Loss, Tea Party Frugality, Corporate Tax Dodgers = VAT or Flat Tax

by John on 06/17/2014

Here are some thoughts over the past week. Radio Show link.

I think they start showing a trend and what’s happening with Americans. Also shows what happening around the world as well.

The good news is here in America is that grassroots efforts are taking shape. The tea party win in Virginia ousting Eric Cantor was the first sign.

I know a lot of tea party people are going to be jumping up and down with joy. But you have to remember, this wasn’t necessarily a tea party win. It was a grassroots win. The big Tea Party benefactors put no money into this campaign. This was clearly “throw the bums out” move.

Granted, there are other factors involved: 1.) would be a smaller turn out; 2.) would be Cantor’s bad campaign; and 3.) would be Democrats and independents voting for David Brat. We don’t know the full answer yet. But one thing is clear is that a group of people, actual voters, took things into their own hands. They are upset with establishment people controlling our country. This is a good sign. However it also shows how difficult it is to govern in the 21st-century. Moises Naim’s book The End of Power shows this beautifully. There are so many factions that are out there that have the ability to communicate through the Internet and other new media that there are a cacophony of ideas and bad ideas that are floating around out there. So finding a majority will be very difficult.

However I think those tea party voters in Virginia got it right. Look at the most recent study in the New York Times that just came out today. It shows how so many corporations are avoiding taxes. A survey of most corporations not only here in United States but also internationally show that they all have losses on their accounting sheets. Why? They’re hiding money and they’re hiding profits. Why? They don’t want to pay taxes.

I have been advocating a value added tax and or a flat tax. Let’s start paying into the government services that we need right away. On top of that, let’s get over this big government argument. There are two reasons there is big government. The first reason is our population is growing and we are also aging. Medicare is going to be taking up 40% of our federal budget in the next 10 to 30 years. Old farts like me are going to want our Medicare benefits. We also think we’re entitled to them. The real tragedy is I am only entitled to 1/3 of them. The other 2/3 will be paid by taxpayers. But this old age voting block has the ear of both the Democratic and Republican parties. So if you think big governments going bye-bye you are nuts.

The other fallacy about the big government argument is that we need big government or small government. Wrong. We need efficient government. We can easily expand our services and reduce our costs. There are technologies out there that can do this. But we also need cooperation with the unions. We cannot continue paying the benefits that were paying in the future. I know everyone makes the argument that government has to act like business. There is some truth to that. There should be more business principles that are put into government operations. For instance new technology that will reduce the number of workers.

But to think the government is going to work like a business is also a pipe dream. In real simple terms, businesses only need about one or 2% of the market to be successful: while government needs 51% of their market to be successful.

The biggest underlying factor to big government is big money in campaigns.

We need to either stop that money or allow all of that money that is being spent in campaigns and lobbying efforts to be open and seen by everyone. Let me go back to the defeat of Eric Cantor. Everyone knew where all of his campaign money was coming from. It was coming primarily from Wall Street. I have no problem with Eric Cantor getting campaign donations from the financial industry.

What I would’ve had a problem with is if we didn’t know about it. So let’s start asking for transparency in campaigns. And everyone should start looking at a value-added tax and a flat tax. Many people on the left will say this will hurt the poor. Maybe in the short run yes. But as the argument goes there are takers on the left and the right and from the rich and the poor. Read the book, A Nation of Takers by Nicholas Eberstadt. It shows how liberals and conservatives both drain our government. Take a look at the story done yesterday by Fareed Zakaria on his show GPS on CNN. He shows how sports organizations here in the US and internationally are raping countries and cities financially while acting as monopolies.

If we get our money based on how our economy is going to be moving, then we can spend our government money based on that.

Although switching over to these new tax systems will be difficult at first, in the long run it will create a more market-based economy and a government that moves along with it. Plus, we can get rid of the IRS. We can also get rid of income tax. It would also stop major corporations from taking welfare.

I may be a little idealistic here. Give me your take.

That’s informed not inflamed

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