Many of you are already familiar with my idea for a flat tax on all income with a generous standard deduction, and no other deductions, credits, or loopholes.
Here are the next three pieces of my plan to save America.
1) Cap on the number of laws. Set a cap on the number of laws. This cap would be significantly lower than the number of existing laws. Until we get below that cap, for every new law that is created by legislators (federal or state), three outdated or ineffective laws will need to be repealed. Once we are below that cap, the requirement would be one law repealed for each new law enacted. Bills would have to specify the laws that they would repeal to "make room" for the new law.
2) All laws will apply to legislators and their staffs, as well as the American people. Laws about insider trading, OSHA, employment, etc. would apply to all elected officials and their staffs.
3) Public service pay cap. No public employee would be allowed to make a salary of more than $100k per year in government pay. If they also receive non-government income that brings their total over $100k, they would be required to donate the excess to a non-religious, non-political charity sharing fund to be distributed equitably amongst qualifying charitable organizations. No public employee would be allowed to get a pension or retirement in excess of $50k per year in government funds - even if their salary exceeded $100k per year due to overtime, bonuses, allowances, or other special pay (total compensation not to exceed $200k per year). All government employees and employees of companies with government contracts of over $100k would have all of their pay and compensation listed in a publicly accessible database. This law would apply to current government employees and retirees/pensioners. These amounts would be open to a 5% increase every four years, if there is a budget surplus and the request is approved by a two thirds vote of congress.
Monday, December 19, 2011
Saturday, October 29, 2011
What is wrong with allowing students to share the culture of success?
As part of my teacher credential program, I was required to read an article about the importance of multiculturalism. The article began by telling us how important multiculturalism is, and saying that without active support for multiculturalism, we would have “deculturalization”. The article defined deculturalization as: “attempts to strip away the cultures of conquered peoples and replace them, through education, with European American culture”. This definition matches the example given in the article - American Indian boarding schools of the 19th century, where children were taken from their families, punished for speaking in their native languages during their “after school” time, and even given new names by the government agents who ran their lives. These are not practices that we see in today’s schools, and it seems that we are able to avoid deculturization of ethnic minorities in schools quite handily, without embracing the demands of the multiculturalists.
While we still attempt to ensure that our students learn English - particularly “Academic English” (since the term “Proper English” has been determined to be politically incorrect), and to be able to understand how our society works, and how to be successful within it, we actively encourage them to maintain their home languages and cultures at the same time.
In modern American schools, it could even be argued that “deculturalization” most closely describes the way that Christians and conservatives are treated – since they are told by one “multicultural expert” after another, that their culture is wrong, unimportant, and even “evil”. This occurs at the same time that we are told to “celebrate” and “value” diversity and “multiculturalism”. Unfortunately, our “multicultural” schools often value some cultures above others. Worse, they often contain monocultural students – students who are not sharing in the culture of opportunity, success, and freedom that is America’s greatest gift to her citizens, but who are instead trapped in a culture of failure. One "African American" Multicultural specialist hired by a Bay Area school district used the training session to tell us that "African American" students - particularly boys - were not capable of controlling their behavior, so we should excuse them from doing their classwork, and allow them to do things that disrupt the classroom and derail the learning process for the whole class. In short, this "ethnic" PhD was telling us that we should lower our expectations for African-American students, and not expect them to pay attention or learn.
It is great that our classrooms can reflect the many different types of people who joined together to become Americans. What is sad is that we are often asked not to celebrate and value the culture that we share as much as the differences that divide us. The strength of America has always been that, no matter where our ancestors came from, we were Americans, journeying into the future, together.
No matter where my students’ families are from, no matter what church they attend, no matter where they go on their vacations, no matter what language they speak at home, and no matter what their parents do for a living, my goal is that all of my students will be prepared to communicate, cooperate, and compete in the “mainstream” of America – to take advantages of the opportunities that our society offers, to expand their horizons, to dream big, to have options and choices in their lives - not be relegated to pockets of poverty and failure because they can’t communicate or navigate outside of their own neighborhoods.
The only way to achieve that result is to have a culture of success in your classroom. The fact is that there are only two cultures that can possibly exist in a classroom: the culture of success, and the culture of failure. A classroom can have one, the other, or a competition between the two different cultures.
I spent most of my adult life in the military, which is highly integrated and is made up of people from many different cultures, even as it is monocultural: Americans of a wide variety of backgrounds work together towards common goals. What my experience with varied groups of students has taught me is that every student is an individual, and the only two cultures that matter in the classroom are the culture of success and the culture of failure. Successful students share several common traits; they arrive on time, bring their materials, and are prepared to work and learn. My goal is to have all of my students join the classroom culture of success. This requires that students “buy in” to the classroom culture, and desire to be either successful, and/or part of the classroom culture.
The culture created and maintained in the classroom doesn’t have to be the same as the culture that the students experience in other places, such as at home. It needs to be a culture of success, centered around learning to work together and be responsible as an individual. The classroom culture needs to prepare students to participate in the larger American culture as they grow up, rather than restricting, limiting, and trapping them in subcultures that do not provide the same opportunities for success that exist in “mainstream” America.
While we still attempt to ensure that our students learn English - particularly “Academic English” (since the term “Proper English” has been determined to be politically incorrect), and to be able to understand how our society works, and how to be successful within it, we actively encourage them to maintain their home languages and cultures at the same time.
In modern American schools, it could even be argued that “deculturalization” most closely describes the way that Christians and conservatives are treated – since they are told by one “multicultural expert” after another, that their culture is wrong, unimportant, and even “evil”. This occurs at the same time that we are told to “celebrate” and “value” diversity and “multiculturalism”. Unfortunately, our “multicultural” schools often value some cultures above others. Worse, they often contain monocultural students – students who are not sharing in the culture of opportunity, success, and freedom that is America’s greatest gift to her citizens, but who are instead trapped in a culture of failure. One "African American" Multicultural specialist hired by a Bay Area school district used the training session to tell us that "African American" students - particularly boys - were not capable of controlling their behavior, so we should excuse them from doing their classwork, and allow them to do things that disrupt the classroom and derail the learning process for the whole class. In short, this "ethnic" PhD was telling us that we should lower our expectations for African-American students, and not expect them to pay attention or learn.
It is great that our classrooms can reflect the many different types of people who joined together to become Americans. What is sad is that we are often asked not to celebrate and value the culture that we share as much as the differences that divide us. The strength of America has always been that, no matter where our ancestors came from, we were Americans, journeying into the future, together.
No matter where my students’ families are from, no matter what church they attend, no matter where they go on their vacations, no matter what language they speak at home, and no matter what their parents do for a living, my goal is that all of my students will be prepared to communicate, cooperate, and compete in the “mainstream” of America – to take advantages of the opportunities that our society offers, to expand their horizons, to dream big, to have options and choices in their lives - not be relegated to pockets of poverty and failure because they can’t communicate or navigate outside of their own neighborhoods.
The only way to achieve that result is to have a culture of success in your classroom. The fact is that there are only two cultures that can possibly exist in a classroom: the culture of success, and the culture of failure. A classroom can have one, the other, or a competition between the two different cultures.
I spent most of my adult life in the military, which is highly integrated and is made up of people from many different cultures, even as it is monocultural: Americans of a wide variety of backgrounds work together towards common goals. What my experience with varied groups of students has taught me is that every student is an individual, and the only two cultures that matter in the classroom are the culture of success and the culture of failure. Successful students share several common traits; they arrive on time, bring their materials, and are prepared to work and learn. My goal is to have all of my students join the classroom culture of success. This requires that students “buy in” to the classroom culture, and desire to be either successful, and/or part of the classroom culture.
The culture created and maintained in the classroom doesn’t have to be the same as the culture that the students experience in other places, such as at home. It needs to be a culture of success, centered around learning to work together and be responsible as an individual. The classroom culture needs to prepare students to participate in the larger American culture as they grow up, rather than restricting, limiting, and trapping them in subcultures that do not provide the same opportunities for success that exist in “mainstream” America.
Saturday, October 15, 2011
How a "flat" tax can be progressive - and "fair" by multiple definitions
Recently, Warren Buffet has been bragging about how he uses his lawyers and accountants to manipulates the current tax code to pay no taxes, or just 1% in taxes, or however little he wants in taxes. He uses his situation to call for more and higher taxes on "the rich" - which would include himself. Why would he do such a thing? Obviously, he will continue to manipulate the system and only pay as much - or as little - as he likes, no matter what the tax rates are for "the rich". After all, it is common knowledge that many "rich" people and corporations are able to manipulate the tax code, find loopholes, shelters, and other means to avoid paying taxes on some or all of their income.
I'm not "rich" (unless you compare me to the truly poor in a third world nation - I have a computer, rent part of a house, own a car that usually runs, and can afford enough calories that I am overweight), but even so, I can put the same information into the online tax preparation systems of three different IRS approved tax preparers and get numbers that are vastly different (one would have had me pay twice as much in taxes as one of the others), based on how well the software matched my personal situation, exemptions, and deductions. It shouldn't be that complex. In fact, the tax for should be able to get the job done in ten questions or less.
What is needed instead is to replace our current tax code with a system that works, and is straightforward enough that anyone can do their own taxes. Herman Cain's "9-9-9" plan is interesting, and is certainly a good conversation starter on flat taxes. Of course, whether the flat tax itself will work depends largely on what exemptions, deductions, deferments, shelters, and loopholes remain in the tax code. The best policy would seem to be to eliminate everything but a personal exemption/deduction of a standard amount for the taxpayer and each dependent, and to allow certain types of savings accounts (retirement, education, and medical) to have taxes deferred until the money is taken out. No other deductions or exemptions are really needed.
A fair/flat tax system with a standard personal deduction and very few other exemptions or loopholes, coupled with a national sales tax (or VAT) would be a more effective means of increasing tax revenue, without having to raise tax rates. It would also simplify personal income taxes and allow most of the IRS to be downsized. Imagine the savings on just printing and distribution if the personal income tax paperwork was a single page form, with only one page of instructions.
Once they had the taxpayer’s personal identification information, the form would only need ten questions about income and taxes.
Of course, whenever the subject of a "flat tax" comes up, the "experts" all line up to tell us that it can't work, is unfair, and that it will put the "experts" out of work. Oh, wait, they don't mention that last part. IRS managers, tax accountants, and tax lawyers all have a vested interest in maintaining and continuing the labyrinthine, convoluted, and easily manipulated tax system that we currently endure. If the tax code were re-written to include a flat tax and a single page tax form, the IRS could be downsized considerably, and most tax lawyers and tax accountants would be forced to find new jobs - because nobody would need them for help with their personal taxes. So let's keep in mind that when a "tax expert" speaks up against a "flat tax" proposal, they have a serious conflict of interest that will keep them from being completely honest about the subject.
Here is my example of a 10 question, 1 page tax form that would improve on our current system.
For the purposes of this example, I am using a flat tax rate (including all federal taxes - income tax, Social Security, and Medicaid taxes) of 20%. And an income exemption of $10,000 per individual. The tax rate and income exemption would be set by Congress, and could even be 9%, if the numbers work that way. The personal exemption could be set at a different rate, and could even have two tiers - one for adults, and the other for dependent minors (for example, $10k per adult and $5k per dependent minor).
Taxpayer's name and Social Security Number:________________________________
Income:
1. How much money did you make in wages, tips, retirement payments, pension payments, interest income, sale of property (including real estate, stocks, bonds, or other property), or investment income during this calendar year (Failure to report all income from all sources may lead to severe penalties)? Any income generated while in the United States (and territories) or while you were a resident/citizen of the United States (and territories) will be included. Do not count money placed into tax deferred retirement, education, or medical savings plans - that money will be taxed as income in the year it is withdrawn.
Deductions:
2. How many dependents do you have (remember to count yourself)? If your spouse had no income, they may be counted as your dependent, if they had income, they must file their own tax form. Warning: both you and your spouse can not claim the same dependent/s - if you share custody you may count each as .5 of a dependent. You must provide the names and Social Security Numbers of all dependents on the reverse of this form.
3. Multiply your number of dependents (line 2) by $10,000. $10,000 is the individual income deduction, and is the only exemption/deduction allowed on your personal taxes.
Determine your taxable income:
4. Subtract line 3 from line 1. This is your taxable income. If line 3 is greater than line 1, you have no taxable income. If you have no taxable income, had no estimated taxes withheld from your pay, and paid no estimated taxes, you are finished.
Determine your fair tax:
5. Once you have determined your taxable income, multiply that amount by .20, this will give you your amount of tax owed (20% of taxable income).
Determine how much was already withheld for taxes:
6. Did you volunteer to have estimated taxes withheld, or make estimated tax payments? If "yes", continue to line 7. If "no", pay the amount on line 5. You are finished.
7. How much did you pay in estimated taxes or withholding? If you had taxable income, continue to line 8. If you had no taxable income, you need to be refunded the full amount withheld. You are finished.
8. If line 7 is less than line 5, subtract it. The difference is the amount you owe. Please pay that amount. You are finished.
9. If line 5 is less than line 7, subtract it. The difference is the amount you need to be refunded.
10. Would you like your refund to be credited against future tax bills?
Thank you for paying your taxes this year.
End of form.
How can a flat tax be progressive? If the flat percentage rate tax is applied AFTER the standard personal deduction is taken out of the income, then the percentage of actual income paid as tax increases as the income increases.
As an example, a single worker makes $35k a year, and his supervisor (also single) makes $60k a year. Given a $10k standard deduction, the worker is paying taxes on $25k, so pays $5k if the flat rate is 20%. Meanwhile, the supervisor pays taxes on $50k a year, so pays $10k at the same 20% rate. In this example, the supervisor pays twice as much in taxes as the worker, but is not making twice as much money. The supervisor is paying 1/6th of her income in taxes, while the worker pays only 1/7th of his. While this is not as draconian as the progression that some favor, it is still progressive. Combined with a removal of the many loopholes and exemptions that the wealthy are more often able to use, this would make taxes much more fair/consistent.
Why a combination of a “flat” tax and a national sales tax/VAT? Because sales taxes are a way to get tax revenue from people who aren’t paying taxes in other ways – either because they are working “under the counter” or are otherwise not reporting income.
So the flat tax is "fair" because everyone pays the same rate on their taxable income. It is also "fair" because wealthier people pay a higher percentage of their total income in taxes. In combination with a national sales tax or VAT it is "fair" because it gets people who hide their incomes to pay at least some taxes. It is also "fair" because it would eliminate the loopholes and special rules that often allow certain individuals and businesses to avoid paying any taxes.
Please note that I am not suggesting that this flat tax replace current business taxes - which leaves a market for at least some of those tax experts to stay in business.
I'm not "rich" (unless you compare me to the truly poor in a third world nation - I have a computer, rent part of a house, own a car that usually runs, and can afford enough calories that I am overweight), but even so, I can put the same information into the online tax preparation systems of three different IRS approved tax preparers and get numbers that are vastly different (one would have had me pay twice as much in taxes as one of the others), based on how well the software matched my personal situation, exemptions, and deductions. It shouldn't be that complex. In fact, the tax for should be able to get the job done in ten questions or less.
What is needed instead is to replace our current tax code with a system that works, and is straightforward enough that anyone can do their own taxes. Herman Cain's "9-9-9" plan is interesting, and is certainly a good conversation starter on flat taxes. Of course, whether the flat tax itself will work depends largely on what exemptions, deductions, deferments, shelters, and loopholes remain in the tax code. The best policy would seem to be to eliminate everything but a personal exemption/deduction of a standard amount for the taxpayer and each dependent, and to allow certain types of savings accounts (retirement, education, and medical) to have taxes deferred until the money is taken out. No other deductions or exemptions are really needed.
A fair/flat tax system with a standard personal deduction and very few other exemptions or loopholes, coupled with a national sales tax (or VAT) would be a more effective means of increasing tax revenue, without having to raise tax rates. It would also simplify personal income taxes and allow most of the IRS to be downsized. Imagine the savings on just printing and distribution if the personal income tax paperwork was a single page form, with only one page of instructions.
Once they had the taxpayer’s personal identification information, the form would only need ten questions about income and taxes.
Of course, whenever the subject of a "flat tax" comes up, the "experts" all line up to tell us that it can't work, is unfair, and that it will put the "experts" out of work. Oh, wait, they don't mention that last part. IRS managers, tax accountants, and tax lawyers all have a vested interest in maintaining and continuing the labyrinthine, convoluted, and easily manipulated tax system that we currently endure. If the tax code were re-written to include a flat tax and a single page tax form, the IRS could be downsized considerably, and most tax lawyers and tax accountants would be forced to find new jobs - because nobody would need them for help with their personal taxes. So let's keep in mind that when a "tax expert" speaks up against a "flat tax" proposal, they have a serious conflict of interest that will keep them from being completely honest about the subject.
Here is my example of a 10 question, 1 page tax form that would improve on our current system.
For the purposes of this example, I am using a flat tax rate (including all federal taxes - income tax, Social Security, and Medicaid taxes) of 20%. And an income exemption of $10,000 per individual. The tax rate and income exemption would be set by Congress, and could even be 9%, if the numbers work that way. The personal exemption could be set at a different rate, and could even have two tiers - one for adults, and the other for dependent minors (for example, $10k per adult and $5k per dependent minor).
Taxpayer's name and Social Security Number:________________________________
Income:
1. How much money did you make in wages, tips, retirement payments, pension payments, interest income, sale of property (including real estate, stocks, bonds, or other property), or investment income during this calendar year (Failure to report all income from all sources may lead to severe penalties)? Any income generated while in the United States (and territories) or while you were a resident/citizen of the United States (and territories) will be included. Do not count money placed into tax deferred retirement, education, or medical savings plans - that money will be taxed as income in the year it is withdrawn.
Deductions:
2. How many dependents do you have (remember to count yourself)? If your spouse had no income, they may be counted as your dependent, if they had income, they must file their own tax form. Warning: both you and your spouse can not claim the same dependent/s - if you share custody you may count each as .5 of a dependent. You must provide the names and Social Security Numbers of all dependents on the reverse of this form.
3. Multiply your number of dependents (line 2) by $10,000. $10,000 is the individual income deduction, and is the only exemption/deduction allowed on your personal taxes.
Determine your taxable income:
4. Subtract line 3 from line 1. This is your taxable income. If line 3 is greater than line 1, you have no taxable income. If you have no taxable income, had no estimated taxes withheld from your pay, and paid no estimated taxes, you are finished.
Determine your fair tax:
5. Once you have determined your taxable income, multiply that amount by .20, this will give you your amount of tax owed (20% of taxable income).
Determine how much was already withheld for taxes:
6. Did you volunteer to have estimated taxes withheld, or make estimated tax payments? If "yes", continue to line 7. If "no", pay the amount on line 5. You are finished.
7. How much did you pay in estimated taxes or withholding? If you had taxable income, continue to line 8. If you had no taxable income, you need to be refunded the full amount withheld. You are finished.
8. If line 7 is less than line 5, subtract it. The difference is the amount you owe. Please pay that amount. You are finished.
9. If line 5 is less than line 7, subtract it. The difference is the amount you need to be refunded.
10. Would you like your refund to be credited against future tax bills?
Thank you for paying your taxes this year.
End of form.
How can a flat tax be progressive? If the flat percentage rate tax is applied AFTER the standard personal deduction is taken out of the income, then the percentage of actual income paid as tax increases as the income increases.
As an example, a single worker makes $35k a year, and his supervisor (also single) makes $60k a year. Given a $10k standard deduction, the worker is paying taxes on $25k, so pays $5k if the flat rate is 20%. Meanwhile, the supervisor pays taxes on $50k a year, so pays $10k at the same 20% rate. In this example, the supervisor pays twice as much in taxes as the worker, but is not making twice as much money. The supervisor is paying 1/6th of her income in taxes, while the worker pays only 1/7th of his. While this is not as draconian as the progression that some favor, it is still progressive. Combined with a removal of the many loopholes and exemptions that the wealthy are more often able to use, this would make taxes much more fair/consistent.
Why a combination of a “flat” tax and a national sales tax/VAT? Because sales taxes are a way to get tax revenue from people who aren’t paying taxes in other ways – either because they are working “under the counter” or are otherwise not reporting income.
So the flat tax is "fair" because everyone pays the same rate on their taxable income. It is also "fair" because wealthier people pay a higher percentage of their total income in taxes. In combination with a national sales tax or VAT it is "fair" because it gets people who hide their incomes to pay at least some taxes. It is also "fair" because it would eliminate the loopholes and special rules that often allow certain individuals and businesses to avoid paying any taxes.
Please note that I am not suggesting that this flat tax replace current business taxes - which leaves a market for at least some of those tax experts to stay in business.
"Fast and Furious" an assault on liberty and common sense
A comparison of "Gun Walking" programs during the Bush and Obama administrations.
The program under Bush was small, and relied on the Mexican authorities to cooperate, since the arrests of the "big fish" would have to take place in Mexico. The program was designed to track guns purchased in America to criminal gangs in Mexico, and lead to arrests of gang leaders. The program didn't work, because the (often corrupt) Mexican authorities failed to do their part.
Under Obama, the failed program was repeated, but expanded to include many more guns, and the Mexican authorities were not involved - so there was no way that the "big fish" could ever have been found and arrested. The Obama/Holder plan had no possible benefit, since there was no plan to actually arrest anyone, with or without the help of the Mexican authorities. Since the program had no possibility of leading to arrests of criminals (unless we were planning to invade Mexico in pursuit of criminals, as we did when pursuing Pancho Villa), it is logical to look for other reasons that it was conducted, and only one possibility remains. Based on the facts of the program and the statements made by Obama, Holder, and the ATF, the "Fast and Furious" program was designed solely as a propaganda campaign against American gun owners, and had no legitimate law enforcement aspirations. Once again, the ATF "leadership" allowed their agency to be used to advance a partisan political agenda and endanger American citizens, rather than to enforce laws and protect the public. The administration and ATF clearly lied to cover up their part in this criminal conspiracy against the civil rights of Americans, that resulted in the deaths of American and Mexican citizens, to include at least one American peace officer.
This means that the program under the Bush administration was a failure, due to problems coordinating with Mexican law enforcement. Why would anyone want to repeat and expand a failed program? Why would you repeat and expand that failed program, and leave out the Mexicans entirely - thus making it impossible to have any arrests at all?
The program under Bush was small, and relied on the Mexican authorities to cooperate, since the arrests of the "big fish" would have to take place in Mexico. The program was designed to track guns purchased in America to criminal gangs in Mexico, and lead to arrests of gang leaders. The program didn't work, because the (often corrupt) Mexican authorities failed to do their part.
Under Obama, the failed program was repeated, but expanded to include many more guns, and the Mexican authorities were not involved - so there was no way that the "big fish" could ever have been found and arrested. The Obama/Holder plan had no possible benefit, since there was no plan to actually arrest anyone, with or without the help of the Mexican authorities. Since the program had no possibility of leading to arrests of criminals (unless we were planning to invade Mexico in pursuit of criminals, as we did when pursuing Pancho Villa), it is logical to look for other reasons that it was conducted, and only one possibility remains. Based on the facts of the program and the statements made by Obama, Holder, and the ATF, the "Fast and Furious" program was designed solely as a propaganda campaign against American gun owners, and had no legitimate law enforcement aspirations. Once again, the ATF "leadership" allowed their agency to be used to advance a partisan political agenda and endanger American citizens, rather than to enforce laws and protect the public. The administration and ATF clearly lied to cover up their part in this criminal conspiracy against the civil rights of Americans, that resulted in the deaths of American and Mexican citizens, to include at least one American peace officer.
This means that the program under the Bush administration was a failure, due to problems coordinating with Mexican law enforcement. Why would anyone want to repeat and expand a failed program? Why would you repeat and expand that failed program, and leave out the Mexicans entirely - thus making it impossible to have any arrests at all?
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