How the tax system works today; Tomorrow, try my way

Below you will find a very fundamental explanation of how the tax system works. However, I will submit to you that it is not working. Not if you wish for equal protection and fairness under the laws of a free society. But I’ll save that for the end. Here we go:

This is a VERY simple way to understand the tax laws. Read on — it does make you think!!Let’s put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for dinner. The bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men — the poorest — would pay nothing; the fifth would pay $1, the sixth would pay $3, the seventh $7, the eighth $12, the ninth $18, and the tenth man — the richest — would pay $59.

That’s what they decided to do. The ten men ate dinner in the restaurant every day and seemed quite happy with the arrangement — until one day, the owner threw them a curve (in tax language a tax cut).

“Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily meal by $20.” So now dinner for the ten only cost $80.00.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still eat for free. But what about the other six — the paying customers? How could they divvy up the $20 windfall so that everyone would get his “fair share?”

The six men realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, Then the fifth man and the sixth man would end up being PAID to eat their meal. So the restaurant owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.

And so the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of his earlier $59. Each of the six was better off than before. And the first four continued to eat for free.

But once outside the restaurant, the men began to compare their savings. “I only got a dollar out of the $20,” declared the sixth man who pointed to the tenth. “But he got $7!”

“Yeah, that’s right,” exclaimed the fifth man, “I only saved a dollar, too . . . It’s unfair that he got seven times more than me!”.

“That’s true!” shouted the seventh man, “why should he get $7 back when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison, “We didn’t get anything at all. The system exploits the poor!”

The nine men surrounded the tenth and beat him up. The next night he didn’t show up for dinner, so the nine sat down and ate without him. But when it came time to pay the bill, they discovered, a little late what was very important. They were FIFTY-TWO DOLLARS short of paying the bill! Imagine that!

And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.

Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straightforward logic!

END

Do you understand now? Do you see any logic in this? If not, may I suggest to you a FAIR tax? It consists of complete removal of the IRS forever (savings in that alone!) to be replaced with a federal sales tax that applies to everyone. This way the people who spends more pay more in taxes. This would be fine, since they are now given the choice on what to buy according to price.

Do not cringe, please! I know that the price and availability are so important to those of us who sit at a desk and crunch numbers, but trust me on this. This is a good theory. Here is why. There would be no taxation on anything not to be considered a final product. A final product would be designated as “A product available for retail.”

This way we are not taxed for the flour, sugar, eggs, transportation, etc. which go into the bread we buy. If flour is not taxed, that cost is not passed on to the consumer. Also, the bakery pays less for his product, so our cost is less. This only one of millions of examples.

This is being explained by someone who only took two courses in Economics, but it is also common sense. For each product we buy, every single solitary ingredient is taxed on its way to every place it stops on its way to market. Is that fair? NO! It should be a final product tax, and everyone should pay the same amount.

If you don’t want to be on the bottom rung of society, stop sitting there! Get an education, then get a better job. Better yet! Create your own job. This is America. Land of the *taxed to death* free!

By the way, are you aware that the Boston Tea Party was caused by an outcry over a 2% tax?

Hat tip: The Chicken Coop linked to Syringe.Net.Nz.

NGAUS Legislative Update: 4/13/2007

What’s Happening In Congress?

SACD Hearing
In Wednesday’s Senate Appropriations Defense subcommittee hearing on the Guard and Reserves Budget Overview Lt. Gen. Steven Blum, Chief of the National Guard Bureau stressed the National Guard as the “best defense bargain” in the country. With eleven percent of the Army’s budget supporting 365 “on-call” days for the Army National Guard and only six percent of the Air Force’s budget flying one-third of the aircraft and producing one-third of its capability, this statement is hard to contest.

The National Guard is no doubt the best defense bargain for the United States yet almost every Senator began their questioning time stating the incredibly low percentage of equipment on hand in their state. The Ohio Army Guard having the most with 65 percent of their equipment to the Maryland Guard with only 35 percent of their equipment on hand and New Mexico with less than 34 percent on hand.

The subcommittee ended the panel by announcing that they will be keeping the record open for two weeks in order to receive more information on shortfalls and needs. They have also requested a report from NGB on how much money it will take and how much time it will take to maintain a 100% equipment on hand.

CNGR Hearing
The Commission on the National Guard and Reserves met on April 12, 2007 to discuss changes contemplated and executed by the Department of Defense to transform the reserve components and make the operational reserve a sustainable force for “the long war.” Appearing on behalf of the National Guard was Major General Michael Sumrall, USA, Assistant to the Chairman of the Joint Chiefs of Staff for National Guard Matters. During the hearing, Major General Sumrall discussed such topics as the transitioning of the force into that of an operational reserve, total force management, the use of private contractors in the theatre, total force integration, rebalancing of the reserve and active components, human capital strategy program, Title 10 categories, and manpower issues. The Commission’s final report with recommendations shall be submitted to the Senate and House Armed Services Committees and the Secretary of Defense by January 31, 2008. Further information on the Commission can be found at CNGR.

Document on 4th Star Hits the Hill
According to a Defense Department document circulating in private meetings between congressional aides, the Pentagon has officially endorsed promoting the Chief of the National Guard Bureau to a four-star general and making him a “senior advisor” to the Secretary of Defense. The Pentagon has however rejected the commission’s recommendation that the commander or deputy commander of U.S. Northern Command be a Guard or Reserve officer.

Each of these proposals are elements of the National Guard Empowerment Act. Make sure to urge your Representatives and Senators to support the legislation and become a co-sponsor.

What’s Happening At NGAUS?

New Legislative Analyst Joins Staff
The NGAUS Legislative Department has been joined by Mr. Gareth Vaughan as the legislative analyst. Gareth comes to us from his most recent assignment as a Governmental Analyst for the Executive Office of Florida Governors Jeb Bush and his successor, Charlie Crist. He holds a B.A. from the University of Central Florida in English and another in History, as well as an M.S. in Political Science from Florida State University. He has also worked as a Legislative Aide for Florida State Senator Mike Haridopolos and as a Legislative Intern for Florida State Senator Lee Constantine. Gareth has experience as a professional writer and editor. He is a former Marine Reservist, serving from1995 to 2001.

What Can You Do?
Capwiz Update

4324 messages have been sent this year.
106 messages were sent this week.
1513 messages on Guard Empowerment.
2584 messages were sent on TRICARE fee increases.

Top 5 States:

1. Georgia – 528 messages
2. Tennessee – 471 messages
3. Missouri – 191 messages
4. Oklahoma – 186 messages
5. California – 169 messages

Our Goal for 2007: 54,000 messages. Only 49,676 messages to go!

Rich Green, Director
Pete Duffy, Deputy Director
Chris DeBatt, Army Programs
Emily Breitbach, Air Programs
Bernie Phelps, Senior Legislative Analyst
Gareth Vaughan, Legislative Analyst

For more information on NGAUS, check out our website: NGAUS.

NGAUS Notes: 4/12/2007

Four Guard BCTs Alerted for Iraq Rotations in 2007 and 2008
The Army confirmed Monday Defense Department plans to alert four Army National Guard Brigade Combat Teams for new Iraq rotations: Arkansas’ 39th Infantry Brigade Combat Team (BCT), Oklahoma’s 45th Infantry BCT, Ohio’s 37th Infantry BCT and Indiana’s 76th Infantry BCT.

The first would deploy in December 2007 and the remaining in 2008. These alerts are not associated with the current plus-up of forces and are a part of routine unit replacements. The Army is notifying more than 12,000 Army Guardsmen in advance to provide them the opportunity to plan, train and provide some degree of predictability for themselves and their families.

None of those called are strangers to deployments. Arkansas’ 39th deployed to Iraq as part of the 1st Cavalry Division from February 2004 to February 2005. It served both in the Baghdad Green Zone and in Taji, Iraq. The 45th most recently served in Operation Enduring Freedom deploying in the fall of 2003 for 12 months in Afghanistan to support the Afghan National Army.

Ohio’s 37th last deployed to support operations in Kosovo from August 2004 to February 2005. Known as the “Dragon Brigade,” the 37th is comprised of citizen-soldiers from Ohio and Michigan. Indiana’s 76th has had various elements deployed since November 2002 to both Operation Iraqi Freedom and Operation Enduring Freedom. Their last brigade-level rotation however, was in support of Operation Enduring Freedom in Afghanistan from May 2004 to August 2005.

According to the Defense Department, the entire mobilization will not exceed 12 months for any Guard BCT.

Gen. Casey Becomes Army Chief of Staff
Gen. George W. Casey Jr. became the 36th chief of staff of the Army on Tuesday, replacing outgoing chief of staff Gen. Peter J. Schoomaker. His most recent assignment was as first commander of Multi-National Force – Iraq, a position he accepted in 2003. Before his Iraq assignment, he served as General Schoomaker’s vice chief of staff. While it put him extremely close to the Army’s operations, his Iraq experience also led to contentious confirmation hearings in February.

“While I do not in any way question your honor, your patriotism or your service…I do question some of the decisions and judgments you have made over the past two and a half years,” Sen. John McCain, R-Ariz., told him Feb. 1. “During that time, things have gotten markedly and progressively worse, and the situation in Iraq can now best be described as dire and deteriorating.”

General Casey somewhat agreed. “What I have tried to do in my time there is strike the right balance that allowed the Iraqi security forces and the government to keep moving forward, but at the same time, having enough coalition presence there so that we could get the job done,” he said. “The situation in the [Iraqi] capital, as you point out, is not good.”

Despite the heated debate, the Senate confirmed him Feb. 8. General Casey was commissioned a second lieutenant in 1970, has served in Germany, Italy, Egypt, Southwest Asia and the United States and has commanded at every level from platoon to division.

New Web Link Connects ESGR with Guard and Reserve Members
National Guard and Reserve members now can get help with employment issues arising from their military service or mobilization via a new link on the Employer Support of the Guard and Reserve (ESGR) Web site at ESGR. The link connects reserve-component members to one of about 900 volunteer ESGR ombudsmen.

Through the link, users can explain their problem and provide contact information for both themselves and their employers, and the information is stored on a secure server. ESGR then assigns the request to an ombudsman who contacts the service member within 48 hours to resolve Uniformed Services Employment and Reemployment Rights Act (USERRA) complaints.

Ombudsmen initially try to resolve the problem through informal mediation. If that proves unsuccessful within 14 days, the ombudsman will refer the Guardsman or Reservist to the U.S. Department of Labor, which has statutory authority to enforce the USERRA law.

“While Guardsmen and reservists have always been able to e-mail us from the Website, the USERRA Complaint Request allows them the opportunity to initiate an ombudsman case online at any time of the day or night,” said Philip T. Pope, ESGR’s acting executive director. “The online request will complement the customer service center in making ESGR more accessible to Guardsmen and reservists serving all over the world.”

Reserve-component members also can continue to use ESGR’s customer service center at 800-336-4590. ESGR volunteers have provided free education, consultation or mediation for Guardsmen and Reservists on employment issues since 1972.

Jump Start Troops Get Presidential Kudos
On Monday, President Bush thanked National Guardsmen deployed across Texas, California, Arizona and New Mexico for helping the Border Patrol crack down on illegal entry across America’s southern border. The arrival of Guard reinforcements in four southern border states since last summer has allowed the Border Patrol to move more than 300 agents into frontline positions. [Gag me with a spoon.]

White House officials reported that the additional manpower is helping curb illegal immigrants from entering the country. National Guard magazine reported in February that illegal traffic and arrests have dropped 60 percent since the start of the operation last summer, according to border officials. [Another fib. If you don't arrest them, it does NOT mean they are not crossing!]

“It takes time to train the Border Patrol,” Mr. Bush said during the speech in Yuma, Ariz., “and until they’re fully trained, we’ve asked the Guard to come down.” Guard troops provide help with surveillance, construction and logistics at the border and also operate detection equipment at Border Patrol command centers. [This part is true.]

NGAUS History
Gen. Curtis E. LeMay, the second ex-Guardsmen to become Air Force chief of staff, received a commendation on behalf of NGAUS at a retirement ceremony in February 1965. The citation highlighted “his wisdom and guidance as chief of staff of the United States Air Force; his concept, support and utilization of the Air Force Reserve Forces.”

General LeMay served in the Ohio National Guard from 1928 to 1929. Of his elevation to chief of staff, he observed: “I believe the National Guard can say that it has a pretty good batting average for the position – two out of five.”

This Week in Guard History
April 11, 1944: Sterparone Airfield, Italy – The 840th Bombardment Squadron begins its first combat missions flying the B-17 Flying Fortress in Europe. The squadron, formerly the 128th Observation Squadron from the Georgia National Guard, was activated in May 1941 and spent two years flying antisubmarine patrols along the U.S. Gulf Coast before switching to a B-17 squadron. Assigned to the 483rd Bombardment Group, the squadron bombs targets such as oil refineries, marshalling yards, airfields, bridges, gun emplacements and troop concentrations over Italy, France, Germany, Poland, Czechoslovakia, Austria, Hungary, Romania, Yugoslavia and Greece.

Today, Georgia’s 128th Expeditionary Airborne Command and Control Squadron, which flies Boeing E-8C Joint Stars aircraft as part of a blended Air Guard and active Air Force unit, carries the lineage of the 128th/840th.

Produced weekly by the NGAUS communications department. Comments and questions should be directed to NGAUS’s e-mail. NGAUS members can sign up for electronic delivery of NGAUS Notes at NGAUS’s website.

U.S. retrieves soldiers’ remains

Source: CNN.

PANMUNJOM, Korea (AP) — U.S. envoys entered South Korea from North Korea in a rare border-crossing Wednesday after securing the remains of six American soldiers from the Korean War and pushing for action on the North’s nuclear disarmament.

New Mexico Gov. Bill Richardson and Anthony Principi, former U.S. veterans affairs secretary, were greeted at the frontier between North and South by U.S. Ambassador to South Korea Alexander Vershbow and U.S. military officials.

Richardson spent four days in North Korea, also joined by the top White House adviser on Korea, Victor Cha.

“Hopefully, we’ve done our bit to relieve the tension between our two countries,” Richardson said after crossing the border, referring to the U.S. and the North.

While in the North on a mission to recover the remains of the U.S. soldiers, the delegation met with officials to press Pyongyang to meet a Saturday deadline to shut down its sole operating nuclear reactor. The agreement was reached in February with the U.S. and other regional powers.

It’s unclear if the deadline will be met due to a separate dispute over frozen North Korean funds that Pyongyang has insisted be resolved before it moves to disarm.

Authorities in the Chinese territory of Macau, where North Korea had its accounts, said Wednesday that the money is now free for withdrawal. North Korea has yet to say whether it is satisfied with the resolution of the issue. (Full story)

On Wednesday, the Americans drove two hours from the North Korean capital Pyongyang along virtually empty roads, with the remains of the soldiers transported separately in small, black cases. They then walked across the North-South frontier at the truce village of Panmunjom, where the two Koreas stand face-to-face across the border that has divided the peninsula since a 1953 cease-fire ended the Korean War.

Principi said the mission to deliver the remains was one of the most emotional moments of his life.

“To participate in such a noble mission to bring home the remains of men who 50 years ago were in harm’s way, and now they’re home, it was really quite moving,” he said.

More than 33,000 U.S. troops died in the Korean War, which began in June 1950 when North Korea invaded South Korea. Some 8,100 U.S. servicemen still are listed as missing.

In 2005, the U.S. government halted a separate cooperative program that permitted U.S. military teams to excavate remains from North Korean battlefields, saying the North had created an unsafe environment. The program had recovered remains believed to be from 220 soldiers since 1996.

Later Wednesday, Richardson was to meet with South Korean diplomats before departing Thursday to Hawaii.

North Korea replaces its prime minister

Source: CNN.

SEOUL, South Korea (AP) — North Korea has replaced its prime minister during a session of its rubber-stamp legislature, an official report said.

Pak Pong Ju was replaced by Kim Yong Il, the North’s Korean Central News Agency reported late Wednesday, without giving any reasons for the change.

Pak had been promoted in 2003 from his job as minister of chemical industries in a move that was believed to indicate North Korea’s attempt to revive its moribund economy. His replacement, Kim, 62, has served as transport minister since 1998, according to South Korean intelligence.

North Korean leader Kim Jong Il attended the meeting Wednesday of the Supreme People’s Assembly, KCNA reported, but apparently did not make any comments there.

The move comes amid intense diplomacy aimed at getting North Korea to meet a Saturday deadline under a February disarmament agreement to shut down its main nuclear reactor in exchange for aid and political concessions.

The Supreme People’s Assembly usually convenes once or twice a year to approve budgets or discuss policy, but has little real power in a country ruled with an iron fist by Kim Jong Il.

At the assembly’s meeting, the delegates heard reports on the budget with officials claiming success in meeting goals for revenue and spending, although no money figures were given.

Vice Premier Kwak Pom Gi, who led the session instead of the ousted Pak, said the country’s main economic goals this year are to “improve the standard of people’s living” along with the “modernization of the national economy,” KCNA reported.

The premiership is among several high-ranking positions, but the country’s No. 2 leader is Kim Yong Nam, the president of the Presidium of the Supreme People’s Assembly.

North Korea is one of the poorest countries in the world. As many as 2 million people are estimated to have died from famine that began in the 1990s because of poor harvests caused by mismanagement and natural disasters and the loss of the North’s main benefactor, the Soviet Union.