The Poached Toad Squats on the High Bench and Other Maladies. The Economy will Crash.

Abstract: Taxes and proposed taxes of a higher order are now the norm in every conceivable category in our country. Everything from sugar to bottled water to energy and more will be taxed. The confiscatory taxation rates of some 55-57% now in most states coupled with 1-5% more on the ‘rich’ will drive the economy into depression. No business can now function profitably in the US where we have the world’s second-highest corporate tax rate and are headed for about the same level in personal income tax in the world.  The political battles in the Legislative and Executive Branches have been won so what remains is to stuff the courts with far left activists so as to legalize more and more taxation and discriminating against whites who are the most successful in our society.  The appointment of Sonia Sotomayor to the Supreme Court is just the beginning of a process to create and warp ‘law’ to allow the confiscation of the wealth of our successful citizens. This comes as we emerge into a fluid and global economy where vast sums can soar through the ether and move fortunes in microseconds from place to place. The high taxation rates here will drive talent and capital to other shores thus producing a cavernous void in the ability to grow our economy.  Certain states like California and Oregon and New York will experience a major diaspora of talent and tax revenue. The spending psychosis in California has reached the pandemic level and there is no hope of cutting spending to accommodate a 25% budget deficit. The Sacramento legislators now see future tax revenues from marijuana in their crack pipe fumes. The state issuing of IOUs and the request that the federal government co-sign for loans is lunacy. Coupled with the 5 states nearing bankruptcy, the federal government will run a deficit of some 10 trillion dollars in the next 4-6 years and trigger perhaps the biggest inflation event ever seen on this planet and may well eclipse the trillion-fold  inflation rate in Zimbabwe. Sotomayor is only a poster child for the kind of people the left wing has nurtured and cultivated in their many years to subversion of education and morality.  She is marginally competent and politically narrow in her racist and bigoted views—attributes that fit well into the molds of the far left. There is apparently no act too disgusting or perverted to be hailed as praiseworthy and vote-catching by the left. The financial collapse of the economy is at hand. Talent and capital will flee our country and we will be government by people with the mentality and morality of Sonia Sotomayor, Nancy Pelosi and Ted Kennedy.

Politics is a process where decisions are made by some select group, or a collage of groups, and some final decision is made according to various criteria. The decisions are imposed by ‘law’ we are told and political power is required to enforce these decisions.  Political parties are frequently violently divided on the problems of certain decisions such as taxation, war and the size of government. The size of the fractional tax burden is one of the most contentious decisions to be made in any country or state as this tends to define the size of government [direct proportion to the amount of taxes received] and the fate of the business community [inverse in  proportion to the amount of taxes received]. Capitalism, or more accurately its degree, thus becomes the most contentious decision to be made. All attempts to abolish capitalism have resulted in abject failure and all attempts to have the government act as the employer and dealer in free markets failed also.  Tax rates seem to determine where the economic tipping point lies in a given economy and varies from place to place. In the US, the LBJ-Kennedy tax cuts along with Reagan and Bush tax cuts appeared to spur the economy while the Jimmy Carter tax increases and the Clinton tax increases appeared to yield the opposite results. Higher taxation always seems to result in higher government spending and not in reduction of debt.  Much of the spending seems to be a payoff to voters who support one faction of government such as labor unions or health cares or business. Nancy Pelosi personally sanctioned the budgets of the last three years and approved all appropriations bills. Thus she helped spend some 5 trillion dollars of the citizen’s money that we don’t have and probably cannot borrow from the Chinese.

Most studies show that when taxes are too high the state or country tends to lose people and wealth as many flee to a more hospitable business and tax environment. California, Oregon and New York, having spent too much and accumulated too much debt, cannot cope with the current budgets and must increase taxes or win a gratuitous bailout from the feds.[1] Some states toy with the idea of taxing illegal drugs. [2] California, a place where there is no hint of fiscal responsibility, is clearly bankrupt and groping for ways to tax, tax and tax some more. [3] Many experts, such as Warren Buffett, see massive short-term or future massive inflation from too much spending. [4] California now prints money de facto by issuing IOUs. Certain ‘economists’ like Paul Krugman tells us that higher taxation and more spending are the solutions to California’s problems.[5] Some strange people want Washington to co-sign on state bonds in a state that cannot possible pay their debts and announce  that:

 “California is not asking for cash. “[6]--reported in the AP by Judy Lin May 27, 2009.

Out of a 104 billion dollar budget they are down 25 billion and counting in only the first three weeks of their new fiscal year and they want to borrow this sum! How would they pay it back?? More IOUs?? We are looking at a potential tax combined load [fed and state] of nearly 60% for some states.[7]

This all soars beyond reason, but there is hope that a combined effort by our three co-equal branches of government might sanction such high taxes may be at hand. The response is simple: if a significant majority of ‘citizens’ pay NO taxes, or very little to be strictly fair, then what do they have to lose if the tax rates soar? If the economy crashes the government will probably just keep subsidizing them and importing more illegal aliens [no matter what the cost] to keep the ballot boxes stuffed. They can, for the moment, just print more money. Thus, there is every political reason to ‘soak the rich’ and ‘redistribute the wealth’ as the old mantra goes because there is an imbalance in wealth in our system. It matters not that this imbalance has been a prominent part of political deliberations for some 7,000 years—the issue is moot. Even if we did divide up the wealth equally, to some say $50,000 to each citizen, the result after a generation would be that some people would again be ‘rich’ and other poor. There are no instances where ‘land reform[8]’ was instituted by a Marxist or socialist government and the ‘poor’ were able to build a prosperous society. In nearly all cases lands of the ‘rich’ were apportioned to the peasants but the amount of land was insufficient to allow a decent living. Many Marxist countries like Nicaragua and Cuba in forms like “the Piñata Plan which distributed large tracts of land to prominent Sandinistas.” In Zimbabwe, “Robert Mugabe moved, after 15 years, in the 1990s, from a "willing seller, willing buyer" approach to the "fast track" land reform program. This was accelerated by "popular seizure" led by machete gangs of "war veterans" associated with the ruling party.”[9]

The reason that this does not work is three fold: [1] the ‘poor’ don’t have to skills to be anything other than subservient peasants and [2] they are not given enough land or resources to ensure an independent success and [3] the government keeps a careful control of the ‘success’ of any program and mostly grabs the profits and the land if necessary. As in the USSR and other places the government finally gains control of the land and usually doles it out to party members for rewards. The USSR wound up with only 4% of the population-all party members—owning or controlling all the land and means of production in that horrible place. It crashed in 1989.

A modern variant of the phony land reform is the process of leftist minorities running inner cities in major cities in the US. Here, we find corruption and crime soar among those places controlled by left-liberal Democrats and particularly if they are of color. [10] It seems that minorities who embrace capitalism and avoid the inner cities can be very successful as in the case of immigrants from Haiti in Florida and from other parts of Africa such as Nigeria, most Asian immigrants and others. Thus the combination of low test scores, marginal cognitive skills and left-liberal politics along with high taxes drive away job suppliers from these cities and also from these states. The Dems know this:

"If you start taxing at times when [revenues are] receding, you'll drive job creators out of the state," Paterson said.” Governor Patterson of New York State quote.”[11]

We see that the health care portions of this alone might push taxes to %60. [12] Perhaps Governor Patterson is unaware of this. The Cap and Trade taxation of energy could push this to %70 or above.

This brings us to the central issue of this blog. We have two branches of government in the bottom of the political bag, so to speak, given the wide majorities in both houses and someone in the White House with some ideologically racist notions about whites and who are responsible for the economic ills of the world. The press follows Obama around like a lap dog in heat so they tend to rubber stamp any thing he wants.  Capitalism is on trial. That leaves the courts.

Many barriers to taxation and government usurpation of the rights of citizens are prevented, at least up to this point, by the courts as they struggle to preserve some semblance of the Constitution. Here the ‘right’ to privacy magically appears out of nowhere and becomes ‘settled law.’ Abortion, or as many think, the senseless murder of the fetus, certainly headed for adulthood baring in intervention of an abortionist, is now “law” thanks to an activist court. The second amendment is constantly attacked and the 9^th and 10^th which tend to proscribe the power of the federal government are somehow ignored. What the left clearly needs is more activist judges and Sonia Sotomayor is their new celebration.

Sotomayor is an activist, a major player in the La Raza Hispanic supremacy organization[13] and rules for minorities where possible. Her entrance into Princeton and law school was part of an affirmative action programs thus she pushed away others who might have been more qualified. Such bigotry and reverse discrimination are considered justified by the fuming left whose constituents cannot make it in society, education and business and require set-asides and such. Cognitive equality is an oxymoron. [14] Overt racism is accepted now in our society:

"Rev. Wright is also somebody who has made enormous contributions in his community and has turned a lot of lives around," Powell said, "And so, I have to put that in context with these very offensive comments that he made, which I reject out of hand."[15]—Colin Powell

Wright didn’t make any “enormous contributions in his community “—he is a racist and rabble rouser. President Obama, perhaps a citizen born here or perhaps not, spent 20 years listening to his racist rants and howls about white people. We can wonder how much of Jeremiah Wright is embedded in the brain of Barack Obama. Obama appears to be an ideological racist.[16]

Fulfilling all the cartoonish elements of a Poached Toad, Sonia Sotomayor will squat upon the High Bench and use her influence to facilitate higher and higher taxes to be extracted from those entrepreneurs who can create jobs and grow the economy. She is brash, arrogant, and short-tempered and endeared to the ‘soak-the-rich’ mantras of the far left. She is an affirmative action escapee of the sordid and disgusting South Bronx area of New York City, a place where hopelessness is actually a relief from the reality of drugs and sloth.

The tax burden is already more than we can handle and the debt is added to that with no way to even cover the interest on the debt. The economy is heading for a depression[17] and the obvious means to increase jobs is being destroyed. Small businesses are being crushed by high taxes so we cannot recover and provide new jobs.

It may be time to consider a bunker mentality.[18]

rycK

Comments: ryckki@gmail.com