boortz

So the president would prevent seniors from getting their Social Security checks rather than taking back that $2 million of our money the California Academy of Sciences is going to use to photograph ants in the Southwest Indian Ocean? Or cancelling funding for the Aqua City Water Park in Dunkirk, New York? Does Mr. Obama really think that spending a half-million dollars on studying atmospheric circulation on Neptune is more important than seniors getting their Social Security checks? Why wouldn’t our president consider reducing farm and ethanol subsidy payments rather than withholding Social Security checks? What about those Northwestern University students who are spending nearly a million bucks to create a machine that makes up jokes? Maybe that machine would consider Obama’s comments to be a joke … most of America certainly does. Perhaps it’s time for Obama to consider acting presidential as we deal with our debt crisis instead of acting like a partisan hack.
—  Neal Boortz
Interesting website names

Got this from Neal Boortz:

Unfortunate Website Names
All of these are legitimate companies that didn’t spend quite enough time considering how their online names might appear …. and be misread.
1. Who Represents is where you can find the name of the agent that represents any celebrity. Their Web site is whorepresents.com

2. Experts Exchange is a knowledge base where programmers can exchange advice and views at expertsexchange.com

3. Looking for a pen? Look no further than Pen Island at penisland.net

4. Need a therapist? Try Therapist Finder at therapistfinder.com

5. There’s the Italian Power Generator company, powergenitalia.com 
(Under construction)

6. If you’re looking for IP computer software, there’s always ipanywhere.com

7. The First Cumming Methodist Church Web site is cummingfirst.com

8. And the designers at Speed of Art await you at their wacky Web site, speedofart.com

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A little truth on the “Fair Tax”

First this is what the Fair Tax is purported to be:

The FairTax is a national sales tax that treats every person equally and allows American businesses to thrive, while generating the same tax revenue as the current four-million-word-plus word tax code. Under the FairTax, every person living in the United States pays a sales tax on purchases of new goods and services, excluding necessities due to the prebate. The FairTax rate after necessities is 23% and equal to the lowest current income tax bracket (15%) combined with employee payroll taxes (7.65%), both of which will be eliminated.

Source

That all does sound really lovely and at first I thought so myself until I decided to do some research into the matter.

The biggest thing is the Consumables… Here is a list of things that you would get the 30% tax on (will explain in a moment):

  • Purchases of new homes
  • Rent
  • Interest on credit cards, mortgages and car loans
  • Doctor bills
  • Utilities
  • Gasoline (30 percent in addition to current taxes, which would not be repealed)
  • Legal fees

At today’s prices, gasoline would cost almost $1 per gallon more. A $150,000 new home would run $195,000 – plus the 30 percent tax that the buyer would pay on the interest on the mortgage. In short, the FairTax taxes everything that one buys, with the one notable exception of education. Any exceptions to the tax base (for instance, eliminating rent or credit card interest from the tax base) would require an offsetting increase in the rate.

30% Explained

When you buy something today, believe it or not the price actually reflects a portion of the tax that you are going to have to pay. This is known as a tax-inclusive sales price.

Under the “Fair Tax”: Imagine buying something for $100. If our tax rate is 23 percent of the tax-inclusive sales price, then of the $100 final price, $23 of those dollars will be for taxes, meaning that the original pre-tax price of the item is $77. To get $23 in taxes on a $77 item, one must impose a 30 percent tax. In other words, a 23 percent sales tax on the tax-inclusive sales price is equivalent to a 30 percent tax on the actual price of the item.

Is it really “Fair”

Not by a long-shot…

In the end all the “Fair Tax” really does is make it easier for the Wealthy 1% to have to spend less. Why? Because the Middle and Lower Class consumes more and therefore is taxed more.

Further Reading

If you are interested in learning more here is everywhere my research pulled from:

Unspinning the FairTax

There Is No Such Thing as a Fair Tax

Evaluating the Fair Tax

FAIRTAX FINE PRINT TRICKS

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I used to be a Hannity-Style conservative until I started listening to Boortz, and I read Bastiat’s The Law and Rand’s Atlas Shrugged on his recommendation. Him interviewing Ron Paul is kind of like a conversation between my political Moses and Elijah.

Neil Boortz Taunts #OccupyAtlanta, Repeats Lies About Stolen Laptops

Predictably enough, Neil Boortz was on the radio this morning gloating about the Occupy Atlanta arrests. He also almost giggled with glee while describing an execution by Israel where they had a cell phone rigged with explosives blow someone’s head off. Warmongers just love to see blood and death. He repeated a story told on the Occupy Atlanta facebook page, and other places, about 3 laptops supposedly stolen at Woodruff Park. We are waiting on the police report WSB is sure to provide. Every violation of truth is not only a sort of suicide in the liar, but is a stab at the health of human society. No man has a good enough memory to make a successful liar. Neil Boortz is a master at using the mute button and the early hang-up, but fears an honest debate. That is why he is too scared to even mention www.TheOccupiedWallStreetJournal.Com

IOU1C♪

Neal Boortz told a story puzzle about a hundred dollars being passed around a town, to paraphrase somewhat:

A Guest pays a $100 bill to a Hotel Keeper, on a condition that if he does not like the room, he will reclaim his money and stay elsewhere.  The Hotel Keeper uses the money to pay a bill from his Butcher, who does the same to his debts, et cetera until the $100 is used by a past guest to cover an outstanding bill for stay to the Hotel Keeper.  Then, the Guest complains about the room and re-claims the bank note.

The “point” of the story is that a number of debts are cleared, but the money is in the same hands at the end of the story as it was at the beginning of the story, and as told by Boortz, this is apparently intended to underscore null economic action related to “stimulus” efforts, implying that there is an economic loss along the line.

Let us see that each debt is partnered with a credit.  The Hotel Keeper, for example, owes $100 because he gained $100 in product and service from the Butcher.  Before the Guest appeared, this ring of local businesses was in a zero-sum state where each member was holding someone else’s $100 of value as a consumed good or past service.

The reason money as we know it exists, and is called currency, is because it has one unique attribute: anyone and everyone is (by common social agreement) willing to accept it, even when it is primarily useless matter such as gold, which is only good at being shiny and coating electrical contacts.  The story’s circle of debts was trapped in a high-energy state because each debtor lacked a means to settle the $100 owed that its creditor would or could accept.

By effectively loaning the $100 to the Hotel Keeper (we shall consider his ability to trial the room before being bound by his rental agreement to be his interest payment), the Guest introduced enough liquid asset to the ring that the debts could settle each individually and serially rather than as a whole.  That is to say, the whole of debts could be per agreement of all parties dismissed because and only because everyone in the ring owed the next and thus the matter settles completely if each member would accept as payment for one “neighbor’s” debt the other neighbor’s credit.  The effect of the $100 bill is enabling the debts to each be settled by the persons who incurred them.

Cash excels where bartering cannot because one-to-one trading is highly situational and beyond two persons it only functions when something like this, a contrived closed circuit of equal-value debts, can be constructed.

This story is focusing on the wrong aspect of the economy it is trying to describe.  Stimulation of economic activity is not a problem because activity is what resulted in these debts.  The economy described suffers from a liquidity problem, that it needed an outside source of cash to settle.  The critical component and moral of the story is that after the debts were settled, the $100 bill was removed from that economy.  The United States is good at introducing $100 bills, but apparently poor at steps two and three: settle the debts, and remove the excess cash after it has served its purpose.