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In a recent article for the online journal Public Discourse, conservative Jay Richards asks the question: "Should Libertarians Be Conservatives?: The Tough Cases of Abortion and Marriage."

Richards is Director and Senior Fellow of the Center on Wealth, Poverty, and Morality at the Discovery Institute, a Visiting Scholar at the Institute for Faith, Work, and Economics, and co-author, with James Robison, of the New York Times bestselling book Indivisible: Restoring Faith, Family, and Freedom Before It’s Too Late (FaithWords, 2012). Richards and I have many common interests: Christianity, theology, economics, politics. He sounds like my kind of guy – except that he’s not.

Richards is your typical "criticize the welfare state while you support the warfare state conservative." I wasn’t sure at first, but after looking at his new book Indivisible, and especially his remarks in chapter five ("Bearing the Sword") on pacifism, just war, the war on terror, the military, and defense spending, my suspicions were confirmed.

Richards maintains in his Public Discourse article that libertarians "tend to disagree with conservatives on social issues." He views the issues of abortion and marriage as "the two greatest sources of conflict between libertarians and conservatives." He believes that "there is a tacit if inarticulate conservative wisdom that recognizes that the libertarian commitment to free markets and limited government is best preserved within a broader conservative context." He posits that this "conservative wisdom" should appeal to the "‘everyman libertarian’ who values limited governments, individual rights, and free markets, but is not otherwise committed to a deeply libertarian philosophy." Richards concludes: "We conservatives need to strengthen our base without alienating our near allies. One way to do that is to show how the central convictions of ‘everyman libertarians’ can find a peaceful repose in a conservative home."

Baloney.

One does not have to be a conservative to oppose abortion and defend traditional marriage. And one should certainly not be a conservative when it comes to other important issues.

I have argued that because the non-aggression axiom is central to libertarianism, and because force is justified only in self-defense, and because it is wrong to threaten or initiate violence against a person or his property, and because killing is the ultimate form of aggression that, to be consistent, libertarians should be opposed to abortion.

If conservatives are so committed to pro-life principles, then why did they continue to fund Planned Parenthood during the Bush presidency? Why did John McCain and others vote to confirm pro-abortion judges like Stephen Breyer, Ruth Ginsburg, and David Souter to the Supreme Court? Why did George H. W. Bush even nominate Souter?

I agree with Richards that "just as government may not redefine our rights as individuals, it has no authority to redefine marriage." Marriage has always been and will forever be the union of a man and a woman. God created Adam and Eve, not Adam and Steve. Anything else is just cohabitation, fornication, civil union, voluntary contract, or domestic partnership, whether it is called a marriage or not. Same-sex marriage, which is not even supported by some homosexuals, is like a square circle, solid jello, or liquid steel.

But more importantly, and as I have also argued, the state should get out of the marriage business. Why do governments at every level require a license for people to engage in consensual, peaceful activity? And not only that, in some states there is not only a hefty fee to get a marriage license, but a required waiting period or recommended premarital counseling course. Why do two individuals need the state’s permission to get married? Who knows better if two individuals are fit to be married than the two individuals? If they want advice regarding their union, they can consult their pastor, parents, co-workers, and/or friends. It is none of the state’s business.

Marriage predated the state. It needs no protection, regulation, or monitoring by the state to continue its existence.

The real threat to the institution of marriage is not homosexuals wanting heterosexuals to recognize their same-sex marriages, it is Christians standing in a church and saying "for better for worse, for richer for poorer, in sickness and in health, to love and to cherish, till death us do part" and then getting divorced a few years later. The real assault on marriage is by serial adulterers who preach family values like the thrice-married Newt Gingrich. As Doug Bandow has recently said: "When it comes to sex the Republican Party is divided. A few members actually don’t believe it is the government’s business. However, the GOP is full of leaders with multiple marriages engaging in multiple affairs who lecture everyone else about the importance of sexual morality."

So, should libertarians be conservatives? Did not Ronald Reagan famously say: "The very heart and soul of conservatism is libertarianism"? The issues of abortion and same-sex marriage are used by conservatives to sucker pro-life, pro-family libertarians into believing that they should abandon libertarianism for conservatism. This would be a terrible mistake, for there is much more to conservatism than its emphasis on social issues.

There are four areas I would like to briefly mention that show the incontrovertible divide that exists between libertarians and conservatives.

First, the state. As concisely summed up by Mises Institute chairman Lew Rockwell:

The problem with American conservatism is that it hates the left more than the state, loves the past more than liberty, feels a greater attachment to nationalism than to the idea of self-determination, believes brute force is the answer to all social problems, and thinks it is better to impose truth rather than risk losing one soul to heresy. It has never understood the idea of freedom as a self-ordering principle of society. It has never seen the state as the enemy of what conservatives purport to favor. It has always looked to presidential power as the saving grace of what is right and true about America.

Second, the welfare state. As recently explained by Future of Freedom Foundation president Jacob Hornberger:

Conservatives are having a heyday calling President Obama a socialist. What they block out of their minds is that by their own measure, they are socialists too. . . . But while conservatives want to protect the assets of the rich from IRS confiscation and welfare-state redistribution, conservatives cannot deny that they themselves also favor the welfare-state concept of taxing people so that the state can redistribute the money to others. The only thing different between conservatives and liberals is the identity of the people they wish to tax and the identity of people they wish to receive the loot.

Third, war. I have said on more than one occasion that the very heart and soul of conservatism is war. Patriotism, Americanism, and being a real conservative are now equated with support for war, torture, and militarism. I firmly stand by this assertion that I first made in 2009, although it was true long before then.

And fourth, the drug war. Out of one side of their mouth conservatives talk about individual liberty, free markets, limited government, less intrusive government, cutting regulations, personal responsibility, and the Constitution, but at the same time they say out of the other side of their mouth that if you buy, sell, or possess a substance the government doesn’t approve of then we will lock you up in a cage. And if you buy, sell, or possess too much, then we will throw away the key.

Should libertarians be conservatives? To be consistent, must pro-life, pro-family libertarians be conservatives? Absolutely not.

Originally published on LewRockwell.com on May 14, 2012.

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Finally, the truth comes out. At long last, we now know why Joe Carter is not and can never be a Christian libertarian – because he is a conservative Christian warmonger.

According to his profile at the Acton Institute PowerBlog:

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, online editor for First Things, and as an adjunct professor of journalism at Patrick Henry College. He is the co-author of How to Argue like Jesus: Learning Persuasion from History’s Greatest Communicator (Crossway).

Although I am familiar with the Acton Institute, and appreciate its defense of the free market, I had never heard of Joe Carter until I was directed to a series of posts he wrote attacking the idea that one can be a Christian libertarian. If you are interested in reading them, see here, here, here, and here. If you are interested in reading some responses, see here, here, here, and here.

I never bothered to respond to Carter because (1) I am much too busy writing other things, (2) I have already made the case for Christian libertarianism in a lecture I gave at the Mises Institute on "Is Libertarianism Compatible with Religion?" and (3) because I have a number of friends who are in fact Christian libertarians: David Theroux of the Independent Institute, Jacob Hornberger of the Future of Freedom Foundation, William Anderson of Frostburg State University, Doug Bandow of the Cato Institute, Andrew Napolitano of Fox News, Shawn Rittenour and Jeff Herbener of Grove City College, Guido Hulsmann of the University of Angers, Lew Rockwell and Tom Woods of the Mises Institute, Norman Horn of LibertarianChristians.com, Timothy Terrell of Wofford College, Gerard Casey of University College Dublin, Jason Jewell of Faulkner University, Robert Murphy of Free Advice, Gary North of GaryNorth.com, and Jeff Tucker of Laissez Faire Books (my apologies to any of my friends I have inadvertently forgotten).

But it’s not just Christian libertarianism that Carter has a problem with.

One post of his that I do feel compelled to respond to is "How to Love Liberty More Than a Libertarian Economist." The economist in question is Brian Caplan, a Professor of Economics at George Mason University who blogs at EconLog. In his attack on libertarianism, Carter refers to a post by Caplan titled "My Beautiful Bubble." To this post of Caplan, the conservative Steve Sailer replied: "Of course, if there were a big war, it would be nice to be defended by all those dreary American you despise. And, the irony is, they’d do it, too, just because you are an American." Caplan replied to Sailer’s comment in another post titled "Reciprocity and Irony: A View from My Bubble." In his post, Carter reprinted the concluding part of Caplan’s reply in full:

  1. I pay good money for these protective services. So I don’t see why my American defenders deserve any more gratitude than the countless other people – American and foreign – I trade with.
  2. Since my American defenders are paid by heavy taxes whether I like it or not, they deserve far less gratitude than my genuine trading partners, who scrupulously respect the sanctity of my Bubble.
  3. In fact, I think my American "defenders" owe me an apology. My best guess is that, on net, the U.S. armed forces increase the probability that a big war will adversely affect me. While they deter some threats, they provoke many others. If I lived in a Bubble in Switzerland (happily neutral since 1815), at least I’d know that I was getting some value for my tax dollars.

I take no sides in any dispute between Carter and Caplan or Caplan and Sailer. I only mention all of the above to provide the necessary context for Carter’s closing paragraphs:

What Caplan misses in Sailor’s criticism is that the "dreary Americans" are not protecting him because of the pittance he pays in taxes. They are protecting him because they love liberty more than he does.

Caplan’s libertarianism leads him (rightly, I believe) to embrace pacifism. As he says, the foreign policy that follows from libertarian principles is not isolationism, but opposition to all warfare. The [sic] is internally consistent yet self-defeating since the conclusion is that libertarianism means loving liberty only to the point that you are not required to defend it by means of warfare.

In contrast, I – like many other veterans in America – served my country (fifteen years in the Marine Corps) precisely because I loved freedom. I loved it so much that I was willing to sacrifice some of my own freedom, or even my life if necessary, to secure it for myself, for my nation, and for libertarian pacifists like Caplan. He is able to afford the luxury of living in his beautiful bubble because other Americans have bought that liberty for him. For over two centuries, American soldiers, sailors, airmen, and Marines have paid the cost necessary to allow people like him to live freely. We have provided him with the safety and security he needs to crawl off in his elite bubble and forget that people like us exist.

Caplan is free to move to Switzerland, though I suspect he’ll keep his Bubble in Arlington, Virginia. As a libertarian economics professor at George Mason he’s smart enough to do the calculus. He knows that his optimal choice is to stay put and keep free-riding on the benefits provided by other people – whether liberal, conservative, or libertarian – who love liberty more than he does.

I want to focus on Carter’s remarks about the military in the first and third paragraphs because most of the statements he makes are typical of conservatives, and especially conservative Christian warmongers.

According to the Department of Defense, "All four active services met or exceeded their numerical accession goals for fiscal year 2011." Here are the actual numbers:

Army – 64,019 accessions, with a goal of 64,000

Navy – 33,444 accessions, with a goal of 33,400

Marine Corps – 29,773 accessions, with a goal of 29,750

Air Force – 28,518 accessions, with a goal of 28,515

This means that 155,754 Americans joined the military in fiscal year 2011 (Oct. 1, 2010–Sept. 30, 2011). Does anyone besides Joe Carter actually believe that even a majority of those who joined the military did so because they loved liberty more than Brian Caplan? Could it rather have something to do with being talked into it by lying military recruiters, the billions the military spends on advertising, the No Child Left Behind Act, the promise of free money for college, the desire to get away from home, the chance to kill foreigners for real instead of just in video games, revenge for 9/11, the adventure, the world travel, family tradition, or the generous retirement benefits? I suspect the main reason is the economy; i.e., the poverty draft.

Sorry, Joe, you – like many other veterans in America – didn’t serve your country. You served the state. You helped maintain a global empire of troops and bases. You helped carry out an evil interventionist foreign policy. You didn’t defend anyone’s freedoms. You didn’t preserve the American way of life. You didn’t uphold the Constitution. You didn’t protect the nation. You didn’t "uphold the freedoms of life, liberty and the pursuit of happiness for future generations" like the lying Marine Corps recruiting postcard says that was sent to high school students. Your death wouldn’t have secured anything. Your death would have been in vain.

And as for American soldiers, sailors, airmen, and Marines paying the cost for over two centuries to allow libertarians to live freely – instead of defending our freedoms, they have jeopardized our freedoms. But don’t take my word for it; take it from VMI grad and Army reservist Jacob Hornberger: "The Troops Don’t Defend Our Freedoms" and "An Open Letter to the Troops: You’re Not Defending Our Freedoms."

Oh, U.S. troops have been busy for over two centuries, but they have been busy doing more intervening in foreign countries than defending Americans’ freedoms. Things like disaster relief, humanitarian aid, nation building, regime change, assassinations, forcibly opening markets, bombing, invading, occupying, maiming, torturing, killing, peacekeeping, enforcing UN resolutions, preemptive strikes, spreading democracy at the point of a gun, garrisoning the planet with troops and bases, training foreign armies, rebuilding infrastructure, reviving public services, unleashing civil unrest, policing the world, intervening in other countries, and fighting foreign wars.

Americans today face the triple threat of the warfare/national security/police state, largely due to conservatives in Congress (fully supported by conservative Christians outside of Congress) during the Bush years not overturning all the evils of the federal government that were already in place and adding much more evil of their own

One reason why conservative Christians like Joe Carter are so different from, and so puzzled by, Christian libertarians is because they are conservative Christian warmongers who worship the golden calf of the military.

Originally published on LewRockwell.com on May 2, 2012.

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Yet another federal budget charade is now in progress. This time for fiscal year 2013, which begins on October 1, 2012.

President Obama submitted his bloated budget to Congress in February. House Republicans issued their bloated budget in March. House Democrats then countered with their bloated budget.

Because the Republicans have a majority in the House, it was no surprise that the Republican budget passed by a vote of 228-191 and the Democratic budget failed by a vote of 163-262. It was also no surprise that not a single Democrat voted for the Republican budget and not a single Republican voted for the Democratic budget.

But because it is the Democrats that have a majority in the Senate, the Republican budget passed by the House has virtually no chance of passing in the Senate. Likewise, if the Senate were to pass a budget and send it to the House, it would be just as dead on arrival as the president’s budget was.

The Heritage Foundation, a conservative think tank in Washington D.C. always eager to do the bidding of the Republican Party, has pronounced ("First Reactions to Ryan’s Path to Prosperity Budget") House Budget Committee chairman Paul Ryan’s budget "a serious plan worthy of serious consideration" that "lays out substantive policy choices, cutting spending, reforming entitlements, and avoiding tax hikes." The House Republican budget "represents real progress toward tackling the nation’s fiscal and economic challenges." It not only "cuts spending, in the budget year of 2013 and into the future, from both discretionary accounts and entitlements," but "features strong, substantive, market-based reforms to the health entitlements and a solid, growth-oriented tax plan." Oh, the Ryan budget is not "perfect," but it "substantially advances the serious and necessary conversation about securing America’s future and its great legacy of freedom, opportunity, and self government."

Contrary to the glowing analysis of the Heritage Foundation, the Republican budget of Paul Ryan and the House Committee on the Budget, as I have recently shown, even though it is called "The Path to Prosperity: A Blueprint for American Renewal," is a bloated, unbalanced, fiscally irresponsible, mostly unconstitutional path toward, and blueprint for, the welfare/warfare state.

In their article on the Ryan budget plan, the Heritage coauthors list "six key elements to a successful federal government budget":

1. Does it cut spending sharply and quickly?

2. Does it begin decisive entitlement reform?

3. Does it avoid any tax hikes?

4. Does it ensure a strong national defense?

5. Does it contain pro-growth tax reforms?

6. Does it move swiftly and surely to a balanced budget?

The Republican budget fails miserably when it comes to cutting spending sharply and quickly. It actually proposes to increase spending by a trillion dollars over the next ten years. The Ryan plan also fails miserably when it comes to moving swiftly and surely to a balanced budget. Not only does it not foresee balancing the budget anytime in the next ten years, it plans on adding $4.5 trillion to the national debt during this period of time.

The Republican "Path to Prosperity" does include some entitlement reforms. I will let conservatives battle it out over whether they are decisive enough (they aren’t). There are two problems with these entitlement reforms. First, the Republicans propose to spend $517.1 billion on welfare (TANF, refundable EIC, SSI, unemployment, food stamps, housing and energy assistance, school lunch subsidies, etc.) in fiscal year 2013 (not including Social Security, Medicare, Medicaid, SCHIP), "only" $450 billion in fiscal year 2017, and then $511 billion in fiscal year 2022. A few billion less in proposed spending is hardly a decisive entitlement reform. And second, every president and every Congress talks about reforming entitlements and tinkers with them in their budgets. Didn’t Clinton the Democrats "end welfare as we know it"?

The Republican budget does avoid tax hikes, although not completely since it recommends clearing out the burdensome tangle of loopholes and broadening the tax base. And yes, there are some pro-growth tax reforms in the Ryan plan. Thank God the Republicans only want to take 25 percent of the income of successful Americans and American businesses instead of a higher percentage.

Ensuring a strong national defense is about the only thing that the House Republican budget plan does well – if all you look at is the level of defense spending. But is this a good thing? The United States spends about as much on defense as the rest of the world combined. This is because most U.S. defense spending is spent on offense not defense. It is spent on empire, imperialism, occupations, senseless foreign wars, and interventions in other countries. When the Heritage Foundation talks about a budget ensuring a strong national defense, it refers to the defense budget being a gravy train for defense contractors.

But not only is the Republican budget a failure, the Heritage Foundation’s budget elements are faulty as well. From a libertarian, constitutional, limited government perspective, here are six key elements to a successful federal budget:

1. Does it propose only spending authorized by the Constitution?

2. Does it begin to permanently end entitlements instead of just reforming them?

3. Does it cut taxes instead of just avoiding tax hikes?

4. Does it provide millions for defense but not one cent for empire?

5. Does it eliminate taxes instead of just instituting tax reform?

6. Does it balance the budget now, not in five or ten years?

Republican presidential candidate Ron Paul’s plan to cut the budget by a trillion dollars the first year and balance it in the second is the only thing that comes close to being a successful federal budget. All the Republican talk about cutting the budget is, as usual, just a bunch of hot air.

Originally published on LewRockwell.com on April 12, 2012.

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Apr
12

Budgeting Leviathan

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The U.S. government is the largest and most powerful government in the history of the world. But that stature comes with a price. Not only has the American government confiscated untold trillions of dollars in wealth from its citizens; it has borrowed trillions more and accumulated the greatest mountain of debt in human history. The federal leviathan has an insatiable desire for money to fund its vast income-transfer, wealth-redistribution, social-engineering, and crony-capitalistic schemes.

To plan for these vast expenditures, the president proposes a budget. Then the respective budget committees of the House and Senate propose their own budgets by means of concurrent resolutions that allocate spending among categories known as budget functions. Congress then passes appropriation bills based on and constrained by the discretionary spending allocations in the budget resolutions.

Barack Obama submitted his proposed fiscal year 2013 budget to Congress at the end of February. With its tax increases and built-in trillion-dollar deficit, it was dead on arrival.

At the end of March, the Republican-controlled House Committee on the Budget submitted its own budget plan. Then the Democratic minority on the House Committee on the Budget introduced their own budget plan in the form of an amendment to the Republican plan, H. CON. RES. 112.

Because of the Republican majority in the House, it is no surprise that, on party-line votes, the Democratic plan was rejected and the Republican plan passed. However, 10 House Republicans bucked the House leadership and voted against the Republican budget.

Two concurrent resolutions on the budget have been introduced by Republicans in the Senate, but they have no chance of passing in the Democrat-controlled Senate. Senate Democrats filed a “deeming resolution” establishing the Senate’s discretionary spending limits according to the levels enacted in the Budget Control Act of 2011.

A brief look at the respective budgets proposed by the Democrats and Republicans in the House shows that all of the Democrats and the overwhelming majority of the Republicans are firmly committed to budgeting leviathan.

For fiscal year 2013, House Democrats propose to spend $3.704 trillion (and run a deficit of $964 billion). House Republicans propose to spend $3.53 trillion (and run a deficit of $796 billion). That is a difference in spending outlays of only 4.81 percent.

That couldn’t possibly be true, I thought. Didn’t Sen. Jim DeMint just say in his book Now or Never: Saving America from Economic Collapse that there are “irreconcilable differences” between Democrats and Republicans and that Democrats “always expand government and spending”? Didn’t the Texas governor and former Republican presidential candidate Rick Perry also say in his book Fed Up! Our Fight to Save America from Washington that, in general, Republicans believe in “low taxes,” “low regulation,” and “less spending,” while Democrats believe in “higher taxes,” “more regulations,” and “more spending”?

To give the Republicans the benefit of the doubt, I tried looking at the figures in other ways, but the results were not much different. We could say that Democrats want to spend 4.92 percent more than Republicans. Or we could say that Republicans want to spend 4.69 percent less than Democrats. But it is apparent that no matter how you look at it, Democrats and Republicans are within 5 percent of each other. It looks like George Wallace was right when he quipped that there wasn’t a dime’s worth of difference between the Republicans and Democrats.

One way to decisively determine whether there is any difference between Republicans and Democrats is to look at the spending they each propose on certain specific budget functions.

On budget function 050, National Defense, Republicans want new budget authority of $562.2 billion, while Democrats want $553.9 billion. That is a difference of 1.48 percent.

On budget function 350, Agriculture, Republicans want new budget authority of $21.7 billion, while Democrats want $21.8 billion. That is a difference of .46 percent.

On budget function 500, Education, Republicans want new budget authority of $57.6 billion, while Democrats want $85 billion. That is a difference of 38.42 percent.

On budget function 550, Health, Republicans want new budget authority of $363.6 billion, while Democrats want $370.7 billion. That is a difference of 1.93 percent.

On budget function 570, Medicare, Republicans want new budget authority of $510.1 billion, while Democrats want $515.1 billion. That is a difference of .97 percent.

On budget function 600, Income Security, Republicans want new budget authority of $517 billion, while Democrats want $538 billion. That is a difference of 3.96 percent.

On budget function 650, Social Security, both Republicans and Democrats want new budget authority of $822.2 billion.

On budget function 970, Global War on Terror (Republicans) or Overseas Contingency Operations (Democrats), both Republicans and Democrats want new budget authority of $96.7 billion.

Because the majority of U.S. military spending goes to maintaining an empire and intervening in other countries, both the first and last categories relate to the warfare state. The difference in spending proposed by Republicans and Democrats is negligible. It is a myth that Democrats want to “slash military spending,” “leave the country defenseless,” “turn their back on the troops,” and other nonsense spewed by Republican warmongers. Both parties are firmly committed to maintaining the warfare state.

The other budget functions relate to the welfare state.

Spending on agriculture includes funds for direct assistance, export assistance, loans to food and fiber producers, agricultural research, commodity programs, crop insurance, and disaster assistance.

Spending on education includes not only the expenditures of the Department of Education, but also training, employment, and social services of the departments of Labor and of Health and Human Services.

Spending on health includes mainly funding for Medicaid (70 percent), but also the State Children’s Health Insurance Program (SCHIP), health research and training, and substance-abuse programs.

Spending on Medicare — national health care for older Americans — includes the Part A Hospital Insurance Program, Part B Supplementary Medical Insurance Program, Part C Medicare Advantage Program, and Part D Prescription Drug Benefit.

Spending on income security includes what is traditionally classified as entitlement or welfare: unemployment compensation, housing assistance, energy assistance, food stamps, school-lunch subsidies, Temporary Assistance to Needy Families (TANF), Supplemental Security Income (SSI), and the refundable portion of the Earned Income Credit (EIC).

Spending on Social Security — the crown jewel of the welfare state — includes benefits for retirement, disability, survivorship, and death to about 55 million Americans.

Both parties are firmly committed to maintaining every aspect of the welfare state. Only when it comes to spending on education do Republicans want to spend significantly less than Democrats — this year. It was just a few short years ago under a Republican president, a Republican House, and a Republican Senate that Republicans ballooned the education budget up to $100 billion. But regardless of how much less than the Democrats the Republicans want the federal government to spend on education, since the Constitution authorizes absolutely nothing to be spent on education, $57.6 billion is $57.6 billion too much.

When it comes to the welfare state, Republicans talk a lot about reforms, block grants, and cutting waste, fraud, and abuse. They chatter endlessly about streamlining agencies, consolidating departments, and making government programs more efficient. They wax eloquent about strengthening particular programs, making them sustainable, protecting them, and saving them. But they talk very little about eliminating, repealing, or abolishing anything. And, of course, their performance is even worse than their promises. Republicans have fully accepted the New Deal and the Great Society.

In spite of all their rhetoric about limited government and fiscal responsibility; in spite of their all their contracts, pledges, paths, and blueprints; in spite of all their talk about the Constitution; in spite of all their attacks on the evil Democrats; in spite of all their warnings about the dangers of socialism and collectivism; and in spite of all their endless and empty promises, the only government the Republicans want to limit is a government controlled by Democrats.

The budget numbers can’t be explained away. Both parties are firmly committed to the warfare/welfare state.

George Wallace may have been wrong about some things or many things, but he certainly got one thing right: There is not a dime’s worth of difference between the Republicans and Democrats. America is a sinking ship. The only thing the Republicans and Democrats in Congress are determining is whether the ship lists to the right or left as it goes down.

Originally published on The Future of Freedom Foundation on April 10, 2012.

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Originally published at The New American on April 10, 2012.

imageTax season is winding down once again, but the progressivity of the tax code is still with us. Most Americans who had more taxes withheld from their paychecks than they owe in taxes have already filed for their refunds. But not only did many Americans have no tax liability, some of them who didn’t owe any taxes to begin with still received a refund, all thanks to our Marxist tax code.

At the end of section two of Marx’s Communist Manifesto, in addition to calling for the abolition of private property and the centralization of the means of production in the hands of the state, he petitioned for “a heavy progressive or graduated income tax.”

This is based on the Marxist dictum (that many Americans think appears in the Constitution): “From each according to his ability, to each according to his needs,” and on Marx’s mistaken notion of the result of the inequality of wealth, as we see in his Das Kapital: “In proportion as capital accumulates, the lot of the labourer, be his payment high or low, must grow worse…. Accumulation of wealth at one pole is at the same time accumulation of misery, agony of toil, slavery, ignorance, brutality, mental degradation at the opposite pole.”

Yet, from its very beginning, the U.S. tax code has sought to soak “the rich” with “a heavy progressive or graduated income tax.”

The income tax began with a 1 percent tax on taxable income above $3,000 followed by a series of surcharges of up to 6 percent applied to higher incomes. The maximum rate of 7 percent was applied to taxable income over $500,000. In addition, there was an exemption of $3,000 for a single person and $4,000 for a married couple.

The tax rate in the highest tax bracket rapidly increased, up to 67 percent in 1917 and 77 percent in 1918, and then rose to 81 percent in 1940, 88 percent in 1942, and a whopping 94 percent in 1944. In 1942, the top rate began applying to all incomes over $200,000 instead of $5 million as it had previously. After dropping briefly, the top rate stayed near or above 90 percent between 1950 and 1963.

Under President Reagan, the top marginal tax rate fell from 70 down to 50 percent, and then down to 38.5 before stopping at 28 percent. The tax brackets were also eventually reduced to just two. This doesn’t mean that the government cut spending and balanced its budgets during the 1980s like it should have, or that it didn’t raise other taxes like it shouldn’t have, but the fact remains that the highest tax bracket fell to under 30 percent for the first time since 1931.

After both rates and brackets increased during the Bush Sr. and Clinton years, the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) gave us our current system of six brackets of 10, 15, 25, 28, 33, and 35 percent. The lowest bracket was scheduled to be eliminated, and four of the other rates were scheduled to rise, giving us five brackets of 15, 28, 31, 26, and 39.6 percent, were it not for the two-year extension of the Bush tax cuts enacted at the end of 2010.

But although the tax brackets have fallen in number and amount since their height in the 1960s, this does not mean that “the rich” have stopped paying their “fair share.”

According to the most recently released IRS data, in tax year 2009, the top 1 percent of taxpayers (in terms of adjusted gross income) paid 36.73 percent of all federal income taxes. The top 5 percent of taxpayers paid 58.66 percent. The top 10 percent of taxpayers paid 70.47. The top 25 percent of taxpayers paid 87.3 percent of the taxes, and the top 50 percent paid a whopping 97.75 percent.

There are a number of ways in which the tax code is designed to punish “the rich”; that is, punish success and reward those who do nothing but have children.

Consider the example of a typical American family with two children. Because of the progressive nature of the tax code, for tax year 2011, this family could make $45,399 and still pay nothing in federal income taxes. This is because the $11,600 standard deduction and $14,800 deduction for personal exemptions reduces this family’s taxable income to $18,999. This leaves a tax liability of $1,996, which is reduced to zero thanks to a $1,000 per child tax credit.

But it’s not just the progressive tax brackets that punish “the rich” and favor “the poor.” A tax credit is a dollar-for-dollar reduction of the amount of income tax owed. It may reduce the tax owed to zero, but if there is no taxable income to begin with, then no credit can be taken.

However, some tax credits are refundable; that is, you still get the credit even if you don’t have any tax liability. These refundable credits include the adoption credit (up to $13,360 per child), the first-time homebuyer credit (up to $4,000 or $8,000 if married filing jointly), the additional child tax credit (up to $1,000 per child), the American Opportunity credit (up to $1,000 per student, with 40 percent of the credit being refundable), and the earned income credit (up to $5,751 for three children).

Refundable tax credits can amount to a significant part of a family’s income. Consider once again a typical American family with two children. For tax year 2011, they can make up to $16,699 and not only owe nothing in taxes, but get a $5,112 earned income credit plus a $1,000 per child additional tax credit refunded to them. This effectively gives them an income of $24,111.

This artificial income of $24,111 is much better than a real income of $24,111, and for three reasons. First, the family’s income is still $16,699 when qualifying for public assistance. Second, no income tax is due on income from refundable tax credits. And three, the taxable wages for Social Security and Medicare are only $16,699.

Another way “the rich” are targeted is through the phase-out of tax deductions and credits. This means that the value of the credit is reduced as income rises. And in some cases, the credit is disallowed altogether.

The $1,000 child tax credit is reduced by 5 percent for each $1,000, or part of that amount, above the phase-out amount of $75,000 ($110,000 if married filing jointly).

The child and dependent care credit is 35 percent of expenses up to a maximum credit amount of $3,000 for one child and $6,000 for two or more children. But this is only if you make up to $15,000. The percentage is reduced by 1 percent (down to a minimum of 20 percent) for each $2,000, or part of that amount, of income above $15,000.

The retirement savings contributions credit (up to $1,000 or $2,000 if married filing jointly) cannot be claimed once adjusted gross income exceeds $28,250 ($56,500 if married filing jointly).

If you itemize deductions and your adjusted gross income is more than $109,000, you cannot deduct your mortgage insurance premiums.

IRA contributions for those covered by a retirement plan are reduced when modified adjusted gross income goes over $56,000 ($66,000 for married filing jointly) and not deductible at all once their modified adjusted gross income reaches $66,000 ($110,000 if married filing jointly).

Education credits and deductions take a hit as well.

Up to $2,500 of student loan interest is tax deductible. However, this deduction begins to be phased out once your modified adjusted gross income reaches $60,000 ($120,000 if married filing jointly) and is not allowed once your income reaches $75,000 ($150,000 if married filing jointly).

No American opportunity credit (maximum of $2,500 for each student) for qualified educational expenses can be claimed if your modified adjusted gross income reaches $90,000 ($180,000 if married filing jointly). And a phase-out of the credit begins at $80,000 ($160,000 if married filing jointly).

No lifetime learning credit (maximum of $2,000) for qualified educational expenses can be claimed if your modified adjusted gross income reaches $61,000 ($122,000 if married filing jointly). And a phase-out of the credit begins at $51,000 ($102,000 if married filing jointly).

The tuition and fees deduction of up to $4,000 per tax return for qualified educational expenses is lowered to a maximum of $2,000 once your modified adjusted gross income exceeds $65,000 ($130,000 if married filing jointly) and eliminated if your income exceeds $80,000 ($160,000 if married filing jointly).

The phase-outs also apply to the strictly refundable tax credits.

If you have three or more children and make over $43,997 ($49,077 if married filing jointly), two children and make over $40,963 ($46,043 if married filing jointly), or one child and make over $36,051 ($41,131 if married filing jointly), you are not eligible to claim the earned income credit. And the maximum amount of the credit drops steadily once your income exceeds $21,800.

To take the adoption credit, your modified adjusted gross income cannot exceed $225,210. And the amount of your credit is reduced once your income reaches $185,210.

To take the first-time homebuyer credit, your modified adjusted gross income cannot equal $145,000 or more ($245,000 if married filing jointly).

The income phase-out for the additional child tax credit begins, like the child tax credit, at $75,000 ($110,000 if married filing jointly).

No wonder the top 10 percent of income earners in America pay over 70 percent of the taxes! The brackets punish them, the phase-outs penalize them, and the refundable tax credits add insult to the injury of “a heavy progressive or graduated income tax.” There is nothing American about the U.S. tax code. It is straight out of the Communist Manifesto.

According to a recent report by the Heritage Foundation: “The percentage of people who do not pay federal income taxes, and who are not claimed as dependents by someone who does pay them, jumped from 14.8 percent in 1984 to 49.5 percent in 2009.” This means that about half of all Americans don’t pay any income taxes.

But the emphasis placed by some conservatives on the lack of taxes paid by some Americans is getting the whole issue backward. The solution is not a national sales tax or flat tax that forces all Americans to pay some arbitrary “fair share” and actually perpetuates the progressivity of the tax code. And neither is it to eliminate all the deductions and credits in order to punish those with low incomes by increasing their taxes.

The solution is to decrease the tax burden of those who are paying the taxes now by eliminating the income tax altogether. This is the Ron Paul approach. In a recent NPR interview, congressman and Republican presidential candidate Paul put the emphasis where it belongs — keeping as much tax revenue out of the hands of the federal government as possible. In reply to the question, “Do you believe that income derived from dividends interest or capital gains should be taxed at a lower rate than income earned from a salary or commissions?,” Dr. Paul said:

Well, I’d like to have everybody taxed at the same rate, and of course, my goal is to get as close to zero as possible, because there was a time in our history when we didn’t have income taxes. But when government takes it upon themselves to do so much, you have to have a tax code. But if you’re going to be the policemen of the world and run all these wars, you have to have a tax code. But as far as what the rates should be, I think it should be as low as possible for — for everybody.

The only reason it appears that we can’t do without an income tax is that Congress has an insatiable desire to spend money. But if the functions of the federal government were strictly limited to only those authorized by the Constitution, the government could be funded by user fees, land sales, excise taxes, and revenue tariffs (like it was from 1789 to 1913), or these things in combination with a lottery or donations. Don’t laugh, in fiscal year 2011, $3,277,369.23 was given by Americans to the federal government for the purpose of debt reduction. A small amount, yes, but only alongside the gargantuan trillion-dollar budgets of the last twenty years.

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