Archive for the ‘Taxes’ Category
Of Course, Social Security is a Ponzi Scheme!!
By Dr. Harold Pease
Governor Rick Perry is accused of referring to Social Security as a Ponzi scheme. To consider the authenticity of this claim we must return to the deceptive strategy of its origin.
Since Social Security was not on the list of the qualifiers of general welfare—Article I, Section 8 of the Constitution—government had no power to forcibly extract a portion of a man’s wage and force his employer to match this fund—not even close. So they used the power to tax to justify this action. But Congress had no power to tax for powers that it did not have. Never the less the government took over the responsibility for everyone’s retirement and the people lost the right to their own money—the portion that was forcibly extracted as a condition of employment. Moreover, since the federal government would now do this for them, they had no incentive to do it for themselves.
At the time the Supreme Court had ruled much of the New Deal legislation unconstitutional and Social Security probably would have met the same end had Franklin D. Roosevelt’s new Court Packing bill not been threatening the independence of the Supreme Court. They let this one slide. To do so they had to agree to place the new tax monies in the “Treasury like internal-revenue taxes generally, and … not earmarked in any way” (301 U.S. 619, 1937). They should have gone to Article V, adding an amendment to the Constitution empowering the federal government to do so, but they were uncertain that it would pass so enacted an end run around the Constitution instead.
President Usurps the Purse Powers of Congress
By Dr. Harold Pease
The power of the purse (both taxing and spending) is one of the most important powers in the Constitution. The Founders resolved that it should be left with the representatives of the people; “all bills for raising revenue shall originate in the House of Representatives (Article I, Section 7).” This made it impossible, without the people’s consent, for them to be over-taxed for more than two years as all members of this body come up for reelection on the same date—every two years.
Addressing this subject James Madison observed, “This power over the purse may, in fact, be regarded as the most complete and effectual weapon with which any constitution can arm the immediate representatives of the people, for obtaining a redress of every grievance, and for carrying into effect every just and salutary measure.” The U.S. Constitution mandates that “the House of Representatives cannot only refuse, but they alone can propose the supplies requisite for the support of government.” This power alone he added, “can overcome all the overgrown prerogatives of the other branches of the government. They, in a word, hold the purse… (The Federalist 58).”
Tea Party Patriots Win Debt Limit Deal
By Dr. Harold Pease
I do not usually write on themes getting extensive attention in the media but the establishment press has overlooked a big story in the debt limit debate. Every one has covered who lost: the President, Congress and both major political parties but almost no one identified the Tea Party Patriot movement as the clear victor.
Remember the over 2400 separate and spontaneous gatherings of Tea Party Patriots in 2009, geographically spread throughout the nation and proportionately held April 15, July 4, and Sept. 11, with about 800 such gatherings held each date. These gatherings, with no national leadership or direction, led mostly by moms with homemade signs, was perhaps the showing of greater anger against the federal government than in any single year in our history—certainly in my life time.
Should the “Poor” Pay Federal Income Taxes?
By Dr. Harold Pease
Lets see if I have this right. The President wanted to spend $3.7 trillion this year. Our total income for the year is about $2 trillion so that would leave a deficit of $1.7 trillion which will be added to the $14 trillion that is already placed upon the backs of my children and grand children, some not born yet.
Democrats wanted to cut $6 billion from this deficit, and thought that a hefty amount, leaving only $1.64 trillion for my children and grand children to make up latter, raising the national debt to over $15 trillion by years end. Not to be outdone, Republicans in the House and Senate wanted to reduce the budget by $61 billion leaving only $1.09 trillion to borrow from Communist China or elsewhere to be added to the $14 trillion national debt, making it in excess of $15 trillion by the end of this year. Democrats pat themselves on the back for taking a cup of water out of the Pacific Ocean and Republicans gloat when taking a mere bucketful of water from the same ocean.
A Socialized Christmas
By Dr. Harold Pease
I do not usually write satire but here is a scary proposition that could come true as witnessed by other extreme laws recently passed. The country is now 13½ trillion dollars in debt and it is incorrectly believed, by the less informed—mostly socialists—that the only way to solve this problem is to increase taxes.
Congress recently discovered how unfair Christmas really is as some get more presents than others. To correct this injustice a 1,500 page law called the Christmas Equalization Act is working it’s way through judiciary committees in both the House and Senate and will be on the floor of both houses very soon. Members are not likely to read it, as on other long-winded laws, but they are likely to pass a conceptual document instead from which lawyers spin the actual words—now an all too common practice.