Hedgehog Party

The Taxpayer Frog in the IRS Pot

This piece by Randall Hoven is a historical summation of the tax tyranny that we inflict on each other.  If that were all there was to it, then presumably we could "undo" any harm that we have done to ourselves.  Unfortunately, an array of well-connected rats feed off this system.  Key to this usurpation of money and power is the disconnect between taxation and spending.  The well connected rats use that disconnect to inflict a tyranny of self interest.  There is a solution in the "The Rats are in the Cheese."

Our Tax Code

This article by Yaron Brook in Forbes is a litany of the distortions produced by our tax code.  Taxpayers have become Pavlov's dogs for "treats" from this sorry tax system.  The well connected rats use the tax code like a drug pusher hooks and uses addicts.  If that is not tyranny, what is?

The Rich and Their Taxes

It is true that the rich pay about all of the income taxes as explained in this article by Steven Malanga.  It is true that the super wealthy pay a tax rate about equal to the labor tax rate paid by the poorest Americans.

The biggest truth is that we have a tax system that is unfair and it promotes serious class warfare.  The well-connected use it to cart the cheese out the back door, while the little rats and mice fight over the crumbs.

Where to begin?

This Wall Street Journal editorial reviews the most recent tax loophole offerings from Congress.  The excuse is the housing crisis...but Congress needs no excuse...just political cover for this very lucrative business.  "Business as usual" is selling out the average taxpayer to big corporate and financial institution interests for campaign contributions.  It really is sickening...but there is a solution...read "The Rats are in the Cheese."

Some Rats are More Equal Than Others.

Ted Kennedy is ambushed by the YAF in this video.  This is an old subject.  The super-wealthy do not pay estate taxes.  The estate tax is designed to entrap the new rich, the sorta rich, farming operations and small business.  The super-weathy remain firmly esconched in their trusts, off-shore trusts and foundations.  From that venue (in between Senate duties, yachting and jet-setting), they work tirelessly to improve our lives and their fortunes.

One little known fact about pre-1951 off-shore trusts (that have been extensively used by the old wealth of the United States), is that they are also exempt from taxes on new income.  Specifically, they are exempt from the foreign personal holding company laws that apply to rubes that have have gotten rich in the past 50 years.  Our elite class should feel superior to the rest of us...because they are.  It is time to end the reign of the well-connected rats.

Voters Will Limit Taxation and Spending

Who pays?  Milton Friedman was correct.  Taxation and new spending pass when it is perceived that the new spending will be paid by taxing someone else.  This Financial Times article reports how quickly a constituencies turn against a "tax and spend" politician when they get caught up in the "tax" part.

The Hedge Tax will make life hell for politicians, because major new spending programs will be balanced by new taxation.  Both will require broad support.  Special interests will suffer (loudly).  The days of taxation class warfare and "spite" taxation would be over.  The voters will begin to aggressively limit spending, and put everyone on a better footing vs. the well-connected rats.