“The Founding Fathers did their job –   Where are the Defending Fathers?”

Meet Herman Cain,  a business mastermind and problem solver who is considering a bid for the GOP nomination.  Cain says he would “take the race card off the table”  in 2012.  “We need a realistic candidate to run on the Republican ticket who can beat Barack Obama – not just beat the Democrats”.    “Obama is a master of deceptive language.  He is a master of rhetoric. . . Any white candidate who runs against him will be up against the race card.” 

Cain,  nicknamed the Hermanator, is a devout Christian,   an Atlanta radio talk show host,  a columnist for  World Net Daily, an associate pastor for Antioch Baptist Church in Atlanta, an author,  and president and CEO of  The New Voice.  He has also served as  former president and CEO of Godfather’s Pizza, former president and CEO of the National Restaurant Association and former chairman of the Federal Reserve Bank of Kansas City.  He has been vice president of  Burger King, vice president of Pillsbury Company, a mathematician for the U.S. Department of the Navy and a business analyst for Coca-Cola.  Cain  has a bachelor’s degree in mathematics from Morehouse College and a master’s degree in computer science from Purdue University.  He has 45,000 members in his Intelligent Thinkers Movement.

According to Mr. Cain, “one of the biggest challenges for the GOP and conservative candidates will be to educate the public on what has truly happened in the first two years of this administration and this Congress.  One of the tactics of the Left is the assumption that 50% of the American pubic is clueless and makes all of its decisions based on sound bites and pretty speeches.  They’re right.”  Obama’s supporters don’t want people to know the truth or challenge the administration’s policies.   “The true motivation of this Congress and this president is to change this country from a free-market capitalistic system to a socialized system moving toward communism.” 

Cain has issued a direct challenge for Obama:  Forget the slick campaign ads and pretty speeches and debate me solely on the issues.  “He’s not going to debate me face-to-face because he can’t do it with a teleprompter”. 

He has been a  keynote speaker at more than 20 tea party rallies where he  admits that  he is “crazy”, “crazy” about the U.S. Constitution, “crazy” about the Declaration of Independence and “crazy” about the United States of America.   He says he is also certain that the tea party movement is not racists – an accusation often hurled by left-leaning mainstream media outlets.

THE HERMANATOR ON THE ISSUES:

Immigration:   He doesn’t expect the administration to pass any type of immigration reform before the November elections.  “They just want to give the impression that they are passionate about the plight of illegals in this country so they do as little as they possibly can.  That’s what this is about – pandering to the Hispanic vote.”   True immigration reform requires securing the borders, enforcing the current laws and streamlining the process for becoming a U.S. citizen.  “Comprehensive immigration reform is a joke because it would mean government is capable of solving all three problems at once.  When was the last time government solved one problem correctly?”

Obamacare:   ”We have to first take back control of the House of Representatives and start a process to repeal it.  You’ll never repeal it under Obama, but you can at least slow it down.”  To solve healthcare we must change the tax code to level the playing field by allowing employees to have the same tax deductibility rules as employers.  Reduce costly government mandates and regulations.  The more the government tries to control costs, the more costs go up and the quality of care goes down.  Allow the purchase of insurance across state lines.   Expand Health Savings Accounts (HSAs).  Support Retail Health Clinics.  Implement Tort Reform.  Provide vouchers for the working poor and chronically ill.  It is the same principle as providing food stamps.  “Every nation that has gone the route of socialized medicine has made access,  cost and quality of care – worse.” 

Abortion:  Not an option.  “I believe life begins at conception, so I do not support abortion.”

Definition of Marriage:  “Marriage is between a man and a woman.”

Economy:  No new taxes or tax increases, a cap on federal spending, and restructuring of Medicare/Medicaid and Social Security.  He goes so far as to suggest suspension of the payroll tax for one year, a move he says would give an immediate 7.65% increase in take-home pay to all workers and would lower payroll costs for employers.   He estimates that this would inject about $900 billion into the economy immediately.   Replace the current tax code with a Fair Tax and replace Federal Income Tax with a national consumption tax on retail sales.   “This would produce a huge sucking sound of businesses from around the world wanting to establish a business in the U.S.  It would supercharge our economy like never before.  The problem the democrats have with this proposal (HR 25) is that it gives power back to the people.  WHAT A PATRIOTIC IDEA!”

National Security:  Champions a strong military and defense spending that is never cut below 4% of the GDP.

Energy:   Maximize use of America’s natural resources and pursue renewable fuel technologies.

According to Herman Cain, we are not in this fight alone.  The voice of  “WE THE PEOPLE”   has been hijacked by partsian politics, government bureaucrats,  and the influence of money.     We need to join together  – as republicans, democrats, libertarians and conservatives to hold our elected representatives’ feet to the fire.  “WHEN THEY FEEL THE HEAT, THEY WILL SEE THE LIGHT”.

The Justice Department is prepared to defend the new federal insurance mandate as an exercise of Congress’s “power to lay and collect taxes”.  You might remember that when the White House was pushing the new health care legislative they insisted that the bill’s passage would not create a tax increase.  The truth is the mandate is not a tax – and if it were, it would be unconstitutional.

A tax is when the government takes money from you, puts it in the Treasury with plans  to spend it (usually before they  get it).   The mandate requires  you to give your money to another private entity – not the Treasury – and if you don’t obey the mandate, you must pay a penalty to the Treasury – penalties are not taxes.   The mandate is legally separate from the penalty.   AND, even if the Justice Department were to get the mandate considered a tax – it would be an unconstitutional tax. 

Under the 10th Amendment, the government only has those powers enumerated by the Constitution.  Every federal action must be authorized by a Constitutional provision.  IF THERE IS NO PROVISION, THE ACTION IS UNCONSTITUTIONAL.   And, the last time I read the Constitution, there was no provision authorizing the government to command anyone to buy health insurance.

While Article l of the Constitution gives the federal government broad power to tax, that power was originally  limited to three (3) types of taxes:  DUTY (an  indirect tax on imports), EXCISE (an  indirect tax for the privilege of doing something),  and lastly, DIRECT.  The only type of direct tax authorized by the Constitution was a capitation tax (head tax) which everyone was required to pay.  And, that capitation tax was to be apportioned – meaning that every person in a given state had to pay the same amount.  

When Income Tax was created in the late 1800’s, the Supreme Court struck it down  on the grounds that it was a direct tax but not apportioned.  Which brings us to the 16 Amendment  that  instituted a national income tax.  Since 1913, income tax became the fourth type of tax the government could impose. 

THE HEALTH INSURANCE MANDATE FITS INTO NONE OF THESE 4 CATEGORIES AND IS THEREFORE NOT CONSTITUTIONALLY JUSTIFIED AS A TAX. 

In 6 months, the largest tax hike in the history of American will take effect. They will hit families and small busineses in 3 tidal waves on Janurary 1, 2011.

First Wave: Expiration of 2001 and 2003 Tax Relief

In 2001 and 2003, the GOP Congress enacted several tax cuts for investors, small business owners, and families. These will all expire on January 1, 2011:

Personal income tax rates will rise. The top income tax rate will rise from 35 to 39.6 percent (this is also the rate at which two-thirds of small business profits are taxed). The lowest rate will rise from 10 to 15 percent. All the rates in between will also rise. Itemized deductions and personal exemptions will again phase out, which has the same mathematical effect as higher marginal tax rates. The full list of marginal rate hikes is below:

- The 10% bracket rises to an expanded 15%
- The 25% bracket rises to 28%
- The 28% bracket rises to 31%
- The 33% bracket rises to 36%
- The 35% bracket rises to 39.6%

Higher taxes on marriage and family. The “marriage penalty” (narrower tax brackets for married couples) will return from the first dollar of income. The child tax credit will be cut in half from $1000 to $500 per child. The standard deduction will no longer be doubled for married couples relative to the single level. The dependent care and adoption tax credits will be cut.

The return of the Death Tax. This year, there is no death tax. For those dying on or after January 1, 2011, there is a 55 % top death tax rate on estates over $1 million. A person leaving behind two homes and a retirement account could easily pass along a death tax bill to their loved ones.

Higher tax rates on savers and investors. The capital gains tax will rise from 15 percent this year to 20 percent in 2011. The dividends tax will rise from 15 percent this year to 39.6 percent in 2011. These rates will rise another 3.8 percent in 2013.

Second Wave: Obamacare

There are over twenty new or higher taxes in Obamacare. Several will first go into effect on January 1, 2011. They include:

The “Medicine Cabinet Tax” Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin).

The “Special Needs Kids Tax” This provision of Obamacare imposes a cap on flexible spending accounts (FSAs) of $2500 (Currently, there is no federal government limit). There is one group of FSA owners for whom this new cap will be particularly cruel and onerous: parents of special needs children. There are thousands of families with special needs children in the United States, and many of them use FSAs to pay for special needs education. Tuition rates at one leading school that teaches special needs children in Washington, D.C. (National Child Research Center) can easily exceed $14,000 per year. Under tax rules, FSA dollars can be used to pay for this type of special needs education.

The HSA Withdrawal Tax Hike. This provision of Obamacare increases the additional tax on non-medical early withdrawals from an HSA from 10 to 20 percent, disadvantaging them relative to IRAs and other tax-advantaged accounts, which remain at 10 percent.

Third Wave: The Alternative Minimum Tax and Employer Tax Hikes

When Americans prepare to file their tax returns in January of 2011, they’ll be in for a nasty surprise—the AMT won’t be held harmless, and many tax relief provisions will have expired. The major items include:

The AMT will ensnare over 28 million families, up from 4 million last year. According to the left-leaning Tax Policy Center, Congress’ failure to index the AMT will lead to an explosion of AMT taxpaying families—rising from 4 million last year to 28.5 million. These families will have to calculate their tax burdens twice, and pay taxes at the higher level. The AMT was created in 1969 to ensnare a handful of taxpayers.

Small business expensing will be slashed and 50% expensing will disappear. Small businesses can normally expense (rather than slowly-deduct, or “depreciate”) equipment purchases up to $250,000. This will be cut all the way down to $25,000. Larger businesses can expense half of their purchases of equipment. In January of 2011, all of it will have to be “depreciated.”

Taxes will be raised on all types of businesses. There are literally scores of tax hikes on business that will take place. The biggest is the loss of the “research and experimentation tax credit,” but there are many, many others. Combining high marginal tax rates with the loss of this tax relief will cost jobs.

Tax Benefits for Education and Teaching Reduced. The deduction for tuition and fees will not be available. Tax credits for education will be limited. Teachers will no longer be able to deduct classroom expenses. Coverdell Education Savings Accounts will be cut. Employer-provided educational assistance is curtailed. The student loan interest deduction will be disallowed for hundreds of thousands of families.

Charitable Contributions from IRAs no longer allowed. Under current law, a retired person with an IRA can contribute up to $100,000 per year directly to a charity from their IRA. This contribution also counts toward an annual “required minimum distribution.” This ability will no longer be there.

The U.S. government’s fiscal gap is widening by the hour.  The 2009 deficit was  $1.4 trillion and, by the end of this year, the Office of Management and Budget says the gross federal debt will stand at $13.8 trillion.  Bruce Bartlett, a former Reagan economic advisor and supporter of VAT, puts it in terms everyone can understand – “the U.S. needs a money machine.”  They certainly would get it in a VAT.  The Congressional Research Service has estimated that each one percent of VAT would raise a (cool) $50 billion.     The Tax Foundation recently calculated that to balance the federal budget, VAT would have to be at least 18%. 

Because a VAT potentially taxes everything,  it would,  like all other tax laws, be riddled with exemptions.  Using the nanny approach, government could exempt so called “green” goods, certain foods they  think you should consume,  and  automobiles they feel you should drive.   It  could conceivably take years to implement and you know what that means – special interest lobbyists and Congress will carve it up  like a  Thanksgiving Turkey – everyone fighting for the choice meat to put on their plates for the next election.

Since VAT is a tax on the estimated market value it must be added to a product or to material at every stage of its manufacture or distribution.  Both VAT and a National Sales Tax are similar in that the end price would be identical.  The difference lies in the way the tax is levied and collected.  As a example, lets say VAT is set at 10%.  A farmer sells enough oranges to make one quart of  juice for .60 cents – VAT is  .06 cents.  The manufacturer’s cost to produce one quart of juice is $1.00 – VAT has now jumped to .16 cents.  The manufacturer sells the juice to a wholesaler who must add in his costs at .30 cents a quart – VAT hits  .19 cents.  From farmer to retailer, the total cost to bring the juice to market is $1.90 but, as the consumer, you would have to pay the VAT, making the actual purchase price $2.09, or a 10% increase out of your pocket.   Now, multiply that by every item you have in your basket.   Since the VAT is not listed on your sales receipt but is embedded in the price, Uncle Sam is hoping you won’t notice the extra tax you just paid.   This tax will be added to  every item you buy.

What they will neglect to tell you in their sales pitch is that  the accounting and paperwork associated with a VAT will inflate  the initial cost of everything you buy.   The fundamentals of supply and demand suggest that any tax will raise the cost to someone and in the case of VAT, to lots of someones.   The farmer must verify that he is actually selling his product to a manufacturer and issue a certificate of the value of his goods.  The manufacturer must determine that he is not selling his goods to an end seller and provide  a certificate showing the value of the purchase of raw materials plus the value of his cost to manufacturer to the wholesaler.   Then the wholesaler must follow suit when he sells to a retailer.  The retailer has the added burden of not only keeping track of all the paperwork associated with what he sells but filling out the endless paper trail for Uncle Sam when the VAT is paid.  While this may help the job market, it isn’t going to do much for your pocketbook.   That $2.09 orange juice just got a LOT more expensive.    And, it will continue to get even more expense as Uncle Sam slowly but surely increases that cash cow in small increments hoping you won’t notice another penny here and there. 

VAT was sold in Europe as a means to tax consumption with less economic harm than raising their income tax rates.  Unfortunately, it did little to protect their pocketbooks as income tax rates remain very high and VAT continues to grow.   

With the Bush tax breaks set to expire this year, we are already facing massive tax increases.  According to a Heritage Foundation fundraising letter I recently received, the overall tax increase faced by American families, seniors and businesss is $2.4 trillion.  The initial cost of the 18 new Obamacare tax increases, set to take effect next year,  alone  is  $503 billion.

Have you ever stopped to think about the indirect federal  taxes that you  pay in addition to income tax?   There are indirect taxes on gas, coal, diesel, airline tickets, fishing equipment, telephone service, cable, firearms, ammunition, tires, tobacco, alcohol, utilities, wireless, cell phones, ad nauseam.    Then you are hit with the State Income Taxes, Sales Taxes,  and State indirect taxes on utilities, landlines, wireless phone service, State E-911 wireless, public rights-of-way use fees on landline phones, relay center assessment tax on landline phones, gas, tobacco, alcohol, cable, satellite cable and radio,  ad nauseam.  And lets not forget the real estate tax, personal property tax and in some cases added sales tax in addition to the  indirect taxes you pay at the local level for 911, landline and wireless service, utilities, video programming on cable, cable,  ad nauseam.  WHERE DOES IT END?

“Money is time made tangible – the time invested in the earning of it.  Taxation is the confiscation of the earner’s time.  Although some taxation is necessary, all taxation diminshes freedom.  Adding a VAT without subtracting the income tax would constrict  Americans’ freedom much more than the health care legislation does.  Because the 16th will not be repealed, adoption of a VAT would proclaim the impossibility of serious spending reductions and hence would be the obituary for the Founders’ vision of limited government.”     George Will,  Washington Post

Attacking Robert Hurt over his voting record regarding tax increases.  I am not a fan of Robert Hurt but………..

The very fact the they have the Gaul to attack anybody on tax increases is laughable at best!!

After all of the garbage their candidate has been party to during the past 2 years with respect to the economic damage this country has taken I simply can’t believe their strategy is to attack ANBODY on tax increases!!

Here is the link to the press release.

JEEESSSSH!!!! 

WHAT ARE THEY THINKING??????????????

Please click on the link below to read what he said today.

http://perriello.house.gov/index.cfm?sectionid=25&sectiontree=6,25&itemid=393

Here are his Contact numbers

Phone: (202) 225-4711

Fax: (202) 225-5681

Here is a link to send him a email

http://perriello.house.gov/?sectionid=90

PLEASE NOW IS THE TIME, MAKE YOU FEELINGS KNOWN!!

The VAT taxes the value added to each step of production of every good or service. For example, the addition of a windshield to a work-in-progress new car would require a tax on the increase in value of the car. Providers of goods and services will, of course, pass these taxes along to consumers as costs of production; i.e., as higher prices. In effect, the VAT is a sales tax imposed on all goods and services deemed to be subject to the tax. Further, the complexity of keeping track of all these mini-taxes is such that the VAT is only cost-effective if the tax is high enough. This could result in the tax rate being set at 10-15% and it is further subject to the whims of Congress when it comes to raising the rate.

The VAT, as a flat-rate tax on most of what we buy or consume, is extremely regressive. Unlike the income tax, which has been twisted and contorted in order to give a break to this group or that person, the VAT hits everyone with the same bat. The poor will pay a greater percentage of their expenditures in tax than those of higher income. Only a further set of contortions can relieve this certainty. Bring on thousands more pages of tax regulations!

Fortunately, many of us in the Roanoke Valley are served by a Congressman, Bob Goodlatte, who can be counted upon to vote against a VAT proposal as often as it comes up. Other Congressmen serving our region are not so certain, nor are our two Senators. We need to contact our wavering representatives often and with a simple message: The VAT – Don’t even think about it!

There is an alternative to the income tax with or without the VAT: the FairTax. It provides for the elimination of the income tax and the IRS leading to a whole bunch of changes. Instead of taxing “earned income,” which seems to include money made from any source whatsoever, it taxes only money spent to make a purchase. Since earned income is not taxed there is no need for payroll and withholding taxes and you go home with your full paycheck. There are some workers who, having had their checks reduced in this way for so long, don’t know what their full wage is! Wait, there’s more! Each legal, resident family will receive a monthly refund for the FairTax that will be paid on expenses up to that family’s poverty level meaning that the poorest among us will, unlike the income tax and especially the VAT, pay no tax at all. The rich, on the other hand, will hardly notice the prebate. Between these extremes, every family will have some of its taxes refunded with the most effect felt at the lower incomes.

The income tax is already included in the costs of goods and services by virtue of hidden taxes collected from providers. The VAT would double down on this at every level of production. On the other hand, the FairTax would eliminate all of these taxes! Consequently, as the costs of new goods and services drop – the average amount is 22% – the FairTax is inserted at the level of 23%. Prices would remain essentially at the income-taxed level and well below the plus-VAT level. In fact, had the FairTax been effect a year or so ago, its full-paycheck property would have provided a strong stimulus on its own.

Act now to stop the tax madness! Tell your federal legislators: income tax…NO; VAT…NO; FairTax…YES. Reach them as follows: Perriello – 202-225-4711; Boucher – 202-225-3861; Warner – 202-224-2023; Webb – 202-224-4024. Let them hear from you.

For further information, see www.RoanokeAreaFairTax.com, www.FairTaxNation.com, www.FairTax.org, www.franklincountypatriots.net, and www.RoanokeTeaParty.com.

By Donald Koop

Plus this area enjoys some of the lowest costs for electricity in the country because of the amount of power produced by coal.

Carbon-reduction legislation approved by the House of Representatives in late June and ready for consideration by the Senate could sharply erode the earnings of coal-fired power generating plants and, by extension, the railroads that deliver their fuel.

A Standard & Poor’s report suggested that H.R. 2454, the American Clean Energy and Security Act of 2009 (“ACES”), also known as cap and trade, could cut utility earnings by 20%. Reps. Henry Waxman (D-Calif., top), chairman of the House Energy and Commerce Committee, and Edward Markey (D-Mass.), chairman of a key subcommittee, co-sponsored the bill.
 
S&P analysts said the House bill could cause the share of power produced from coal to drop to 33% from 50%. The bill aims to cut fossil fuel emissions from power plants and other users 17% below 2005 levels by 2020.

The report said the bill could also cause coal users to switch to natural gas, pushing up its price.

The importance of coal for rail profitability is indicated by the fact that coal accounts for more than 40% of rail traffic and around 20% of revenues.
 
Economists say that a reduction in the earnings of either utilities or railroads could have ripple effects on their customers, including cuts in capital investment that would affect service and capacity.

The website they are looking at is http://www.usdebtclock.org/

Remember, the numbers there are very conservative.  I think they are understating the level of our debt by half.