On 8 August 2008 at 10 am Russia officially attacked the Republic of Georgia.
I don't think any explanation is necessary here.
CNN article
Timeline
edit 8 August 2008: see Cold War II: Part Two
I. Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof;
II. A well regulated militia being necessary to the security of a free State, the rights of the people to keep and bear arms shall no be infringed.
III.
IV.
V. No person shall be held to answer for a capital or otherwise infamous crime, unless on a presentment or indictment of a
VI. In all criminal prosecutions the accused shall enjoy the right to a
VII. In suits at common law, where the value in controversy shall exceed
VIII. Excessive bail shall
IX. The enumeration in the Constitution of certain rights, shall
X. The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively,
That is it. This is our world. And as time progresses more of our rights are being crossed off of the Constitution. It doens't look like it's going to be any better. The Republicrats seem bent on destroying the Bill of Rights. That's why I support Bob Barr and the Libertarian Party.
Today, I want to talk about another plan the Automated Payment Transaction Tax. It was created by Edgar L. Feige a Professor Emeritus (aka retired professor) of Economics at U of Wisconsin. The APTT is similar to the fair tax in some respects. It eliminates the IRS and proposes a system that taxes financial transactions instead of income. Unlike the fair tax, however, it taxes every financial transaction not just sales. Because of this, lower rates can be charged. In fact, the tax rate will be dropped to .3% or 3/1000. How? This new tax levies against any transaction. Here's an example:
Your family makes $50k a year. For the sake of simplicity we will say that you get paid it all in one lump sum at the end of the year. When your check comes in you would pay .3% in taxes: $150. Now the company that you guys work for also has made a transaction, giving you money, so they pay $150 in taxes. And also for the sake of simplicity you spend every cent of your $50k income every year. So you pay another $150 for spending your money, and the corporations that receive your money pay $150. All in all you pay $300, and the companies work with pay $300 for a total of $600.
Now, I'm sure you're wondering, "where does the money come from then?" Well the APTT taxes all transactions. So, you go to McDonald's and spend $5 on a combo, You pay $.015 in tax and McDonald's pays $.015 in tax. Now you go to the bank and take out $500 to pay a bill. You're taxed $1.50 in tax, the bank pays $1.50. But still, this isn't the bulk of the taxation. The bulk of the taxation occurs and stock trades, and foreign transactions. That's right. Under the current system stocks and foreign transactions aren't taxed like normal income. Because of this many leaders of hedge funds and stock trading companies only pay 15% in current income taxes. That's right. We pay a third of our cash, while the richest people in the world pay 15%. In fact, foreign transactions aren't taxed at all. The APTT will begin to charge people from converting their cash from Euros to dollars or vice versa. Also, due to the transaction fee, all US stocks owned by foreign entities will now be taxed. Under the current system only US citizens pay tax, so a foreigner can have all of his investments in US assets and not pay any taxes. These two things will provide for the bulk of the revenue under the APTT. Also, by taxing transactions, we essentially create progressive tax system. The poor, who won't have many assets to transact, pay less tax. Those with multimillions, and multibillions in stocks will now pay the brunt of the taxes, even though it will still only be a tax of 3 cents on every $10 you make, so it won't even dent their pockets. Not bad.
The main problem that could arise here is the question of whether people will continue trading stocks like the used to. Well, if for example stock trades drop to half as much as they are now, then it's already been worked out by Professor Feige that we will just pay twice the tax or .6%. Still not that much money. In addition to this, the use of this tax system will also save the government billions of dollars a year. How? Well, under the current system we have to pay for the IRS and all of its workers. If we eliminate the IRS then we eliminate the money we have to pay for it. Even under the fair tax, we would have to pay some government agents to give out rebates and prebates, and someone has to process all the paperwork for them. With the APTT, however, we won't even need that. Once we program the cash registers to automatically send .6% to the fed(.3 from you and .3 from the company), we won't have to worry about it anymore. We wouldn't even have to fill out forms. In fact, we would end up saving even more millions of dollars on paper and ink, because we would no longer need the forms. Not to mention checking for errors, distribution, and processing. Basically, the APTT would do it all for us. So I that is why I think everyone should check out the APTT.
What's the problem then? Why dont we use the fair tax now? Well there are a few reasons. One is ignorance. Most people don't know about the fair tax. How could we implement it if we don't know about it? The second major reason is a question of what is "fair"? It seems like a tax break for the rich and a burden for the poor similar to a flat tax. That, however, is not true. The fair tax is "fair." While those in higher income brackets will pay a flat 23% sales tax, those in lower incomes will receive tax rebates and prebates against the fair tax. So they will not receive an unfair burden of taxation as in the flat tax. In fact much like the current system the poor pay less than the rich. The major difference is that it taxes expenses rather than income.
Proponents of the fair tax says this is a good thing. Taxes on expense rather than income will also encourage Americans to improve themselves as people. It will encourage Americans to save more money because only consumed income is taxed. If you save, you get to keep your money. It also serves to simplify the tax code by levying a flat 23% tax instead of varying strata. This saves time in completing taxes, because they are all 23%, and the money the governments spends looking over taxes. In fact the entire Internal Revenue Service Administration(IRS) could(and will) be abolished. Also the current tax system rewards underreporting of financial figures and underachievement e.g.: by our current tax system if a single person makes $77,100 he will be taxed at 25%, but if he makes on dollar more $77,101 he will have to pay 28% in taxes. When calculated mathematically this causes a net loss in income of $2312.28 for making only a dollar more per year. That just doesn't make sense. And that's why we need fair tax. Because being taxed $2312.28 for a dollar just aint' right.
What's the world coming to nowadays. Did you hear this story. That's right. In one school in Massachusetts 17 girls got pregnant. That's 4 times the school's normal average of 4. Why? Is it the lack of sex education or a lack or morals. It's obviously not the first one. There's no place in American you can go to avoid sex education it's everywhere. In fact the girls repeatedly used the schools pregnancy tests to see if they were pregnant. They knew what was going on. It is their morals. It is reported that over half of these girls were members of a pact. What was the pact? To get pregnant by the end of the year. One of the girls even went as far as getting pregnant by a 24 year old homeless guy. That is just disgusting.
Back in my day when teenage girls wanted to get pregnant........
What am I saying? How bad of a state does the world have to be in for me to be criticizing how she pregnant over the fact that she did it. It's gotten ridiculous. What would make someone even try that? People need to be reeducated in morals. Obviously we cant do it at school, but at home parents should teach better values than this. Low self-esteem or not. This is the most irresponsible idea I have ever heard
Barack Obama:
This kid is a rookie. He's only been in the senate since 2005. That said, his plan is surprisingly mature for someone with only two years of experience(I won't count his last year since it was spent campaigning). He is and has been against the war in Iraq since even before it started. He plans to remove all combat troops from Iraq by 16 months after inauguration. He also boast numerous plans to better social security for seniors. He supports increasing social security taxes on the rich. By current laws only the first 102k a person makes per year can be taxed by social security. He also plans to eliminate taxes for seniors who make less than 50k a year. This will all bring in more revenue for seniors. As far as healthcare, Obama believes in universal child healthcare and create an affordable voluntary plan for everyone else. He also plans to lower taxes for the working class/lower middle class. He plans to increase taxes on the rich/upper middle class and industry to help compensate for some of these aims.
John McCain:
Old to congress. Very old in fact. His plan is essentially the opposite of Obama's. He calls for staying the course in Iraq while improving strategy so that we can actually win. His website is unclear on social security. For healthcare he promotes less government interference. He will repeal some of the regulations on private industry which would allow healthcare providers to lower their costs. He also plans to lower taxes on industry in general to promote innovation and creation of new technologies. He wants to keep the Bush tax cuts.
Bob Barr:
Old. Used to be a Republican. His plan for Iraq is a mixture of the above two. He does plan to leave Iraq, but he wants to do without an artificial time table. There will be a timetable, but it will be natural. Also it won't be publically revealed. His plan for healthcare is similar to McCain's: cut regulations and let the markets self regulate. Probably the most radical of his ideas is on social security. The Libertarian's Party's stance on social security is that it shouldn't exist. People should make their own savings. The LP even proposes giving Americans a tax credit for saving privately. He also plans to abolish the income tax and instead levy a federal sales tax.
Conclusion:
Who has the best plan. While the libertarian's of course. Obama's plan for healthcare and social security is comprehensive and it would help a lot of people, but how are supposed to pay for that. We're already in recession, and he claims he won't raise taxes. Also raises taxes on industry just hurts America. The companies just pass the extra fee on to the people. Next Iraq. We can't just leave in 16 months. That's giving the enemy a playbook. They'll just wait 16 mon and 1 day and then attack. McCain's view of Iraq is wrong also. We are wasting billions of dollars over there each year. If we want to fix the economy we will need that money for capital. That's why the LP wins on the war. They plan to withdraw, which makes financial sense, but not in a way that would definitely be harmful to the general public. And his plan on Social Security is also dead on. If we are going to fix the economy we need to save money somewhere. Social Security is the 3rd most costly thing according to the 2007 budget at $626.4 billion per year. Imagine what we could do with an extra $625 billion dollars a year! People were never supposed to live off of SS anyways. In the 1930's when this plan was created it was expected that you would die very soon after turning 65. No one was supposed to live into there 80's as is common today. Also there were less old people. Back then the ratio of taxpayers to old people receiving benefits was 16:1. Now it is 3:1 and soon becoming 2:1. With the baby boomer retiring soon we just won't be able to keep up. The same can be said with healthcare. We don't want to add even more debt to our economy as in Obama's plan. So, I say, for the sake of the economy
oh. and Im open for debate. Let's do this. There could be some good ideas out there. Particularly from some of the Romney people(he was my guy before he dropped out)
--Professor JP
