Republic Rules - The U.S.A. is a great representative republic.

Lobbying is a part of political life. The influence and money of special interest groups exerts considerable pressure on politicians to vote in harmony with their biggest campaign contributors… so, who’s buying the votes?

And who is being bought?

The Center for Responsive Politics has examined the top 100 contributors over the past 20 years and presents their interesting data here… but you can get a very quick impression of what’s going on by just looking at the top 20:

Well over half of the MOST ACTIVE special interest groups are unions… and the rest are large corporations. Here’s the notable part:

While companies tend to “hedge their bets”… contributing more-or-less equally to both Democrats and Republicans… unions are totally committed to Democrats. Not a surprise, I grant you, but think about it. As a result of this lopsided flow of money, are Democrats more likely to represent the wishes of “the people” or the wishes of the unions?

There’s an old saying that, when you want to find the truth, all you have to do is “follow the money”.

Not only are unions in bed with the Democrats, it’s worth remembering that they are, on the whole, bigger contributors than “big business”.

Childhood is great… for kids.

While their bodies are growing, minds developing, and morals being learned children are free to believe in fantasies, stretch their imaginations, play all day and bear few responsibilities. As children grow up, they take on more obligations: school and homework, household chores, and so on.

Good parents take their children to church, teach their children the difference between right and wrong, how to live up to their promises, to treat others with respect, and much more. Bad parents try to be buddies with their kids and let them behave however they want. Good parents are preparing their kids for adulthood, bad parents are shirking their own responsibilities and doing their kids no favors in the long run.

Children who grow up in a reasonably disciplined home become solid citizens who work hard, pay their bills and balance their checkbooks, save for the future, and help others as much as they can.

Children who never learn the REAL lessons of life just become “older children” who get themselves into situations they could have easily avoided, indulge themselves even though they know they will get into trouble, and look to others to help solve the problems they regularly find themselves in.

Over the past few decades, society has increasingly encouraged people to believe that their actions are either OK or not their fault… that we can do whatever we want… the distinction between right and wrong is constantly blurred, messages regarding the truth are regularly ambiguous. At the same time, government has been promoted as a savior that will take care of everyone and pay for things they could/should pay for themselves.

We’re becoming a nation of child citizens:

“We” don’t know what’s good for ourselves so the government must tell us what to do and how to do it. “We” can’t take care of ourselves so the government so the government must pay for some things or directly provide certain personal services.

The only thing “we” are doing is voluntarily handing over OUR RIGHTS to government and becoming children of a “parent” government. The “child citizens” look to the government as a benevolent parent… now. But it’s inevitable that government will become abusive… one small step at a time… as more and more is demanded of it. Then, “child citizens” will wake up one day and realize they are “slave citizens”.

Kids can be kids… but it’s time for “older children” to grow up and become adults.

These days, you cannot pick up a product without being able to turn it around and learn how many calories it has, what daily percentage of all the vitamins and minerals in it, what the product is made of (including active and inactive ingredients), whether it meets various health, safety, and environmental standards, and so on.

I want a new piece of information to be stated on every product (or on the receipt when I buy it):

The total amount of taxes that are INCLUDED in the price.

I’m not talking about the state and local sales taxes that we ALWAYS see after the subtotal on the receipt. I want to know how much in tax is IN the product. That’s right, a summary item called “taxes” would appear and be clearly visible for everyone to see.

This might be hard, so it might be a good faith “estimate”, much like the estimated mileage you can expect to get on a new car… the big number that appears on the window sticker. It would include a proportional amount of all the taxes paid by the manufacturer, shipper, distributor, and retailer… everybody along the supply chain.

I think people would be SHOCKED to learn how much we are really paying in hidden taxes… over and above the income tax and all the other taxes we pay knowingly.

They say INFORMATION IS POWER. When the people know the truth, they will DEMAND lower taxes. At the very least, they would make better decisions… more informed decisions… and could see what direction the taxes they pay are going, up or down, sooner and easier than it is now possible.

The government requires all kinds of truth in labeling… yet requires no accountability for its own actions. How about tasting a little of their own medicine?

I’ve written many times about the many problems with our current income tax system and the fact that 10% of the taxpayers pay 70% of the tax.

Let’s put aside for the moment that, in 2005, “rich” meant anyone with a taxable income of more than $104,000 (which is a lot of money, don’t get me wrong… but hardly what I would call “rich”). It would be one thing, if those who are “not rich” at least had some skin in the income tax game… but when nearly half of U.S. households pay NO income tax (and some even MAKE MONEY from government programs!), then there is a structural and moral problem with the system… one that sets up a “game” that will be played and will lead to an inevitable, self-destructive end.

If you read comments after articles about the fact that “the rich” carry an inordinate portion of the income tax burden, one of the most common responses goes something like this:

ImAllAboutTheLittleGuy wrote:

So the top percentages pay income tax? The people that reap all the benefits and pleasures of America? The people that live the good life and have profited from those that do not pay income tax have to pay income tax?

I don’t see that as a problem.

I think this is at the root of the mindset of those people who think it’s OK for the “rich” to pay the bills while others (even MOST!) pay little or nothing. Very short-sighted thinking… and a morally bankrupt attitude. It seems these people think the “rich” got their money at the expense of the “poor”… that the rich are able to live a good life and the poor are not… that the rich have it all and the poor have nothing.

Look around. Sure, there are some very poor people that have a difficult lot in life… but are they HALF OF OUR POPULATION? Hardly. I’m guessing 10-15% of the people, if that, are truly in need… and I’m more than willing to help those who are, indeed, in need.

But half?

No way.

Even then, that half get to reap at least SOME of the “benefits and pleasures of America”… it’s certainly not like some third world country where 10% of the population lives in opulence and the rest are in dire poverty. We have a great nation and “the poor” still get to use the roads and libraries and receive protection from police and fire departments and enjoy liberties not found in many countries.

For the sake of argument, if 15% of the people are truly poor and should not pay income tax, that would make the rest of the half (35%) FREELOADERS.

And COMPLAINING FREELOADERS, at that.

While I have no deep problem with my tax money helping the sincerely poor, I must admit that I DO have a problem with my tax dollars supporting the 35% that don’t deserve my money. If they don’t want to work harder to earn more, that’s their choice… but they should not get any of my dollars ON TOP OF enjoying a free society with all kinds of wonderful benefits that THEY ARE NOT PAYING FOR. And I especially resent that, when you look closely, most of them spend money on a lot of things that, in any other circumstance, would be viewed as a luxury… cellphones, cable TV, and the list goes on.

The way I figure it, about ONE THIRD of our nation has been set up by politicians to be paid supporters of government programs… they know when they see a good deal for themselves… and they are foolish and selfish enough to sell their votes without thinking about what it is doing to our country… or that it ultimately hurts them more than helps them. They are IDIOTS.

Yes, ONE THIRD of our country consists of unthinking idiots who are mind-numbed slaves to their “leaders”.

It’s going to take a lot of work to overcome that momentum. I just hope we can ratchet this percentage back because, once it passes over 50%, the fools will continue to vote tax benefits for themselves until there is no more income to be taxed… and it will be too late then.

Even if we weren’t in an economically difficult time right now, the LAST thing we need is ANOTHER TAX!

The REAL problem, of course, is too much government spending… and we really need to tie the hands of Congress to get control over this and other abuses that our “leaders” take for granted now.

The answer to the problem is not to add another tax, but for government to cut back… like the rest of us have had to do… and to spend wisely. I’m not advocating NO government, just limited government… spending only on things it SHOULD be spending and spending only as much as we can afford on those things (no matter how much we might like them).

Rather than ANOTHER TAX, which would be subject to increases and more political abuse, I like the idea of the Fair Tax… which:

ELIMINATES the income tax…
… and estate taxes,
… and gift taxes,
… and capital gains taxes,
… and alternative minimum taxes,
… and self-employment taxes,
… and corporate taxes,
… and Social Security taxes,
… and Medicare taxes.

NO MORE deducting federal income tax withholding from your paycheck and no more filing tax returns by April 15th.

Just a single FEDERAL SALES TAX that REPLACES all of the above. The amount of taxes would not be different, it’s just the way the taxes are collected that would be different. This is a “revenue neutral” plan (meaning, it doesn’t collect any more or less taxes… just changes the mechanism for collecting those tax dollars). So, why is this a good plan?

First, it is a simpler and less-intrusive way for the federal government to obtain taxes from citizens.

Second, WE would know EXACTLY how much we are paying in taxes (the current scheme is so complicated and there are so many different taxes that it is very hard to determine precisely how much tax each of us pays).

Third, the tax RATE would be HIGHLY VISIBLE… and any attempt to change it would be VERY CLEAR to every citizen. No longer would Congress be able to manipulate little taxes or grant deductions or exceptions to special interests.

If we allow Congress to enact a Value Added Tax (V.A.T.), it will be just one more way they can get into our pockets… and one more way they can avoid being fiscally responsible in handling the business of our country.

NO V.A.T.!!!

I’ve previously discussed how our country is actually based on the idea that, in the eyes of Gods, all of us are created equal and the political fact that this concept has been construed to mean we should enjoy things equally.

The utopian idea that everyone should have the same things sounds great… which makes it easy for “leaders” to gain the following of those who do not think through the reality of such an absurd proposal. Dictators have gained power advocating such ideas, entire countries have lived in fear and virtual slavery under the false promise of a perverted equality.

Why will any system that promises equal outcome NOT work?

• SPORTS - professional football is wildly popular in the U.S. and we greatly enjoy the regular season as one team “battles” another and the level of excitement ratchets up during the playoffs as teams are eliminated until we get to the Superbowl and a single team emerges triumphant.

  If we’re all equal, then why keep score in these games? As points are scored, they should be divided equally… every game ends in a tie. What would happen to game attendance and TV ratings?

• SCHOOL - after taking tests, the grades would be averaged for the class and every student would receive the same grade. No “best and brightest”, no child left behind, all students are the same. Imagine the impact on the psyche of students after years of such handling as they “progressed” through school.
• WORK - most employees just do their jobs but a few put in extra time, extra effort to make the organization better. During the annual performance review, everybody receives the same standard raise in pay and promotions are based on something arbitrary, such as seniority; no exceptions. How many will be dedicated enough to help improve the organization if they receive no benefit at all?
• CHARITY - a few generous individuals donate their time to help others but, at the annual banquet, those who didn’t show up are given the exact same praise as those who did all the work. Are those who are contributing to the greater good likely to continue?
• TAXES - a few people work very hard and make a lot of money, a lot of work hard and make a moderate amount of money, a few people don’t work and make no money… but after taxes are applied and government benefits are redistributed, everyone ends up with the exact same amount of money. What is the incentive for the highest earners to continue working very hard? What is the motivation for the slackers to work at all?

No amount of government intervention will ever change human nature. While our current approach may not be perfect, it is so much better than the alternative that it is ludicrous to “reform” broad swaths of our economy to “fix” problems that not only cannot be resolved completely but will lead to a vast array of even worse unintended consequences.

Illinois Congressman Phil Hare says it out loud:

THIS is exactly what’s wrong with all-too-many of our elected representatives. It’s one thing to vote your conscience, to be accountable to your constituency, even to make expedient political deals… but if there’s one thing ALL elected officials must do (indeed, are sworn to do), it is to abide by the Constitution.

But many “don’t care about the Constitution”.

It’s all downhill from there.

The current government “leadership” has moved our country further away from its founding principles and seems intent on implementing programs that are even counter to human nature. All this done under the guise of helping the “little guy” or maintaining “equality” or implementing “social justice”… with little consideration of who actually gets to foot the bill and whether that is a sustainable approach, which begs the question:

ARE we all created equal?

Though progressives tend to deny a deity, we are truly equal only in God’s eyes. Ultimately, we will all stand side-by-side with no individual soul being better than another in any way. Our lives on Earth, however, are a different matter.

We are only equal in SOME ways… and not in others. The areas where we are equal should be obvious. One person’s life is just as valuable as another one’s, no matter what sex or race or age they are. EVERY life is to be cherished, whether rich or poor. In our great country, every citizen has the right to vote… and those votes carry equal weight. The laws of our nation are designed to mete justice equally to all.

It is obvious, though, that each individual is not equal in every way… this is a fact… and to deny it is to deny reality. Some people are born smarter, some have better physical skills, some are born with many natural gifts and some have few or none.

And no amount of legislation by any government will ever be able to change that.

The “equality” referenced in our Constitution is to those God-given attributes AND to the equality of OPPORTUNITY that our country offers its citizens. Unfortunately, the “God-given” part has been manipulated into “government given”, which is an impossibility… and “equal opportunity” has been corrupted to mean “equal outcome”, which is completely antithetical to its original meaning.

Over the past 2 or 3 generations, a growing blanket of liberalization has resulted in a large portion of our citizenry being mis-educated… and those individuals now have a skewed view of what our country is all about. Many actually think government can make them equal, that they are somehow owed the things they do not have, that they do not have to work to better themselves, that someone else will always step in and help them do what they are not willing to do for themselves.

And it is sad.

The only solution is RE-EDUCATION… and it will take at least 2 generations of dedicated effort to do that. The only question is: will that process begin soon enough or will it come too late to make a difference? We are at a cusp… THE TRUTH must be imparted immediately or we risk an inevitable slide into mediocrity.

I agree with many of the WISHES of liberals… there should be no poor people, everyone should have great health care, every individual deserves a job, all citizens should receive an education, and more. The world would be a wonderful place if all such things were possible… but they’re not. This is mostly due to the faults of human nature.

Suppose, for example, the government simply offered a job to any person who does not have one. Would they all show up? Many would, of course… and let’s not including those who honestly cannot due to some physical impairment… but would every able-bodied unemployed person show up for work? I’m betting not. Sad to say, there are a lot of people who are ready to complain about not having a job yet are simply unwilling to work.

Is it OUR responsibility to help those who will not help themselves?

Imagine, for a moment, that the government was paying for the health services of some individual who was sitting next to you in the doctor’s waiting room. Since that person doesn’t have to fork over their own money to receive medical services, do you think every visit will be completely valid… or might it be subject to abuse? How do you feel if you heard that person talking on a cell phone tell a friend they were actually okay but just wanting to get off work… while you had an actual problem and had to wait your turn?

Should honest people suffer because others “play the system”?

It seems too many people hold a utopian view of their fellow man. Unfortunately, some people not only won’t help themselves, they don’t want your help either… and others are more than happy to accept your help, but will not use it in the way you intended.

For decades, our government has waged a “war on poverty” and spent BILLIONS of dollars. Has it worked?

THIS is an example of how effective government is at solving human problems and REALLY helping people. For more than 40 years, the poverty rate has remained about the same (though I could argue that the definition of poverty has changed, but that’s another discussion).

If you consider the institutions responsible for TRULY helping “our fellow man” over the millennia, hospitals and universities would have to rank near the top. And what many overlook today is the clear fact that these are rooted in religion… CHURCHES were at the forefront in their creation and expansion. After all the attempts of government to “save the world” via socialistic or communistic means (or under rule of monarchy or dictator), it should be obvious that such pursuits are doomed to failure. Contrary to the view from the left, I firmly believe religion plays a HUGE ROLE in a civil society and, if anything, churches should be looked to for better solutions to the problems liberals SAY they would like to solve.

BY THE WAY, let’s just emphasize that when I said the government has “spent” or “paid for” throughout this piece that the government actually pays for nothing. The government is just an intermediary that collects taxes and redistributes those dollars to something/someone else. In reality, taxPAYERs are the ones actually doing the “paying”, of course.

Our current financial crisis was a series of bad decisions stacked on top of each other, which multiplied the terrible, yet totally predictable, outcome:

1. Making home loans to borrowers who realistically could not afford to make the payments.
2. Allowing loans to have ridiculous attributes, such as no money down and no proof of income
3. Authorizing FNMA and FHLMC to purchase those questionable loans from lenders
4. Minimizing the quality of some of those loans when packaging them into mortgage-backed securities (MBS)
5. Enabling certain derivative financial instruments, based on low-quality components of those MBS’s, to be created and sold, thereby multiplying the exposure to risk (setting up the potential for a domino effect).
6. Blindly trusting risk ratings given to the questionable bonds without rational analysis of the core/real aspects of the underlying loans.

Given the various players in the financial chain, there was tremendous incentive to push the limits… to leverage (and even cheat) at every step… and so that happened… in spades!

Where would we be today if… say… just the first step was avoided. Would any of the rest of the bad things occurred? Any reasonably intelligent person could have projected the results but common sense was ignored… and skewed “talking points” kept the lie alive until reality caught up.

NOW, fast forward to today and the health care situation and the new law:

• The government Ponzi scheme called Social Security is mathematically flawed and is rapidly reaching the point of implosion due to the all-too-foreseeable shifts in the population of workers vs. retirees… but nothing of substance done about it.
• Many union and government employee benefit plans are actuarially unsound, having been structured on defined BENEFITS rather than defined CONTRIBUTIONS, yet go unaddressed.
• Greater financial and reporting burdens are placed on employers.
• Fails to reform tort law and frivolous medical malpractice suits, which has led to skyrocketing insurance costs.
• Adds millions of people to the “demand” side of the industry while doing nothing about the “supply” of medical professionals.
• Adds large expenses (political payoffs) having nothing to do with health care.

Does anybody REALLY think the problem is solved?