How did we become addicted to big government?

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The growing national scandal surrounding the IRS targeting individuals and organizations with a certain political stand is endemic of big government. This large bureaucracy is fulfilling its role as the keeper of the big government keys. But how did America get to this point of a huge and intrusive government?

Social Security is perhaps the best example of  how Americans become addicted to big government, especially tax giveaways and the enshrined systems that sustain them. America’s addiction to government control over its citizens has increased to the point that today many are dependent on federal handouts to maintain their health, happiness and well being.

Karl Marx said, “Religion is the opiate of the people.”

Today, “Big government is the opiate of the people.”

Let’s review a brief historical perspective on how America got here and then open up the much needed national discussion on the need for big government. 

We the people began to embrace big government 104 years ago with the founding of the Intercollegiate Socialist Society (ISS) in New York City on September 12, 1905 in Peck’s Restaurant. An organizational meeting was held and Jack London was elected President with Upton Sinclair as First Vice President. The ISS was established to, “throw light [in America] on the world-wide movement of industrial democracy known as socialism.” Their motto was “production for use, not for profit.”

Production for use, not for profit is the prime goal of big government.

So how could socialists begin selling big government and its redistribution of wealth ideology? First they had to gain unfettered control of production. On February 3, 1913 Congress passed and the states ratified the Sixteenth Amendment to our Constitution. Congress grabbed control of production via the federal income tax. America taxed its productivity by tapping every American’s wages. With the millions, then billions, and now trillions of dollars that Congress collected, they could entice or even force the strongest American to take the big government drug.

Then on April 8, 1913 Congress passed and the states ratified the Seventeenth Amendment to the Constitution which transferred U.S. Senator Selection from each state’s legislature to popular election by the people of each state. These two events made it much easier to collect and distribute big government as now Senators were no longer loyal to their state legislatures or primarily concerned with state sovereignty. Now U.S. Senators, along with U.S. Representatives, saw the value of spreading  the big government drug amongst the people in return for votes.

During the Great Depression Congress created the first “opiate for the masses” and named it Social Security. It was to be a social insurance program run by government, in other words guaranteed government largesse for life. The Social Security Act was signed into law in 1935 by President Franklin Roosevelt. He and Congress said this new drug would keep those unemployed, retirees and the poor financially secure. He called it the New Deal. All we needed to do was just pay in and all would be well.

In 1937 the United States Supreme Court in U.S. vs. Butler validated the Social Security Act and stated that, “Congress could, in its future discretion, spend that money [collected from the income tax] for whatever Congress then judged to be the general welfare of the country. The Court held that Congress has no constitutional power to earmark or segregate certain kinds of tax proceeds for certain purposes, whether the purposes be farm-price supports, foreign aid or social security payments.” All taxes went into the general fund.

Testifying before the Ways and Means Committee of the House of Representatives in 1952, the chief actuary of the Social Security Administration said—“The present trust fund is not quite large enough to pay off the benefits of existing beneficiaries”—those already on the receiving end, in other words. In 1955 chief actuary believed that it would take $35 billion just to pay the people “now receiving benefits”.

In 1935 under the Social Security program the Congress included the Aid to Families with Dependent Children Act (AFDC). During the late 1950s many states realized that this act, while created to help widows with children, was being used to subsidize women having children with men they were not married to. Louisiana alone took 23,000 women off the AFDC act rolls based upon their immoral behavior.

Arthur S. Flemming, Department of Health and Human Services under President Dwight David Eisenhower

In 1960 Arthur S. Flemming, then head of the Department of Health and Human Services under President Dwight David Eisenhower and a key architect of Social Security, issued an administrative ruling that states could not deny eligibility for income assistance through the AFDC act on the grounds that a home was “unsuitable” because the woman’s children were illegitimate. In 1968, the United States Supreme Court’s “Man-in-the-House” rule struck down the practice of states declaring a home unsuitable (i.e., an immoral environment) if there was a man in the house not married to the mother. Thus, out-of-wedlock births and cohabitation were legitimized. In very short order, the number of women on welfare tripled and child poverty climbed dramatically. The assault on the family was on and Congress and the Supreme Court were co-pushers of this new government largesse drug called AFDC.

In effect big federal government became the pimp, the homes of single mothers became the brothels and the fathers became the Johns. The children begotten by these women became the next generation of big government addicts. Just as a baby born to a mother doing crack is addicted to cocaine, so too are these children born with a lifetime addiction to the onerous and destructive drug – big government.

Then Congress added a new ingredient to the powerful Social Security drug called Medicare on July 30, 1965.

Congress created Medicare as a single-payer health care system. Medicare was for those over 65 years old and was signed into law by President Lyndon B. Johnson. President Johnson called it part of his Great Society program. Congress immediately got more addicts to begin taking this drug. At the same time Congress added a second even more powerful ingredient to this drug called Medicaid. This new ingredient brought into being an entirely new distribution system – all of the states of the union. Even though this new program violates state sovereignty it was passed anyway, in no small part because Senators were no longer accountable to the State Legislatures but rather committed to pushing government largesse.

The states were now helping pay for and distribute this powerful and expensive big government designer drug. The drug was offered to low-income parents, children, seniors, and people with disabilities. Congress now had more people on the Social Security drug than ever before. Congress had turned a corner – addiction to government largesse was now imbedded in our society. But Congress was not finished for it kept looking for more clients until we now know that the estimated unfunded liabilities for these four drugs are:

• Social Security – $10.7 trillion

• Medicare Parts A and B – $68 trillion

• Medicare Part D – $17.2 trillion (created in just 3 years)

America’s addiction to big government will cost our children and grandchildren an estimated $95.9 trillion dollars. The gross domestic product of the entire world in 2007 was $61 trillion. Big government is the true opiate of the people. The following is a quote from a May 26, 1955 Herald-Tribune News Service article:

“Seven Amish bishops appealed to Congress today to exempt members of their church from receiving any benefits of the Social Security program. They are willing to continue paying Social Security taxes, however . . . . The bishops made it clear that no elder of the church would think, today, of applying for Social Security or any other government benefits. They want the law changed, they said, to ‘remove temptation’ from their children and grandchildren.”

The IRS scandal may be the straw that breaks the back of big government. It may even bring down the Sixteenth Amendment?

Rep. Tom Rooney (FL-17) co-sponsors HR-25, the Fair Tax Act

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Representative Tom Rooney (R – FL District 17)

Representative Tom Rooney (R – FL District 17) has now become the eleventh member of the Florida delegation to co-sponsor the Fair Tax Act (HR-25/S-13). Rep. Rooney represents South Central Florida including most of Hardee, Desoto, Highlands, Okeechobee and St. Lucie Counties. He sits is on the House Appropriations committee. A full list of House sponsors may be viewed by clicking here. Senator Saxby Chambliss (R-GA) is the sponsor of S-13 in the US Senate. Senate sponsors may be viewed here.

The IRS scandal has renewed interest in HR-25.

The Fair Tax Act is introduced, “To promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national sales tax to be administered primarily by the States.” The Fair Tax Act states:

SEC. 2. CONGRESSIONAL FINDINGS.

2 (a) FINDINGS RELATING TO FEDERAL INCOME

3 TAX.—Congress finds the Federal income tax—

(1) retards economic growth and has reduced the standard of living of the American public;
(2) impedes the international competitiveness of 7 United States industry;
(3) reduces savings and investment in the United States by taxing income multiple times;
(4) slows the capital formation necessary for real wages to steadily increase;
(5) lowers productivity;
(6) imposes unacceptable and unnecessary administrative and compliance costs on individual and business taxpayers;
(7) is unfair and inequitable;
(8) unnecessarily intrudes upon the privacy and civil rights of United States citizens;
(9) hides the true cost of government by embedding taxes in the costs of everything Americans buy;
(10) is not being complied with at satisfactory levels and therefore raises the tax burden on law abiding citizens; and
(11) impedes upward social mobility.

Members of both major political parties have stated that the IRS is a threat to freedom, fairness and economic opportunity. However, none have suggested the elimination of the 90,000 employee strong IRS. Many have voiced concerned that the IRS will expand its powers by being a key part of the implementation of the Affordable Healthcare Act, which is a national tax according to a recent US Supreme Court decision.

Rep. Vern Buchanan (FL-District 13) addresses the Congressional investigation:

Rep. Buchanan sits on the House Ways and Means Committee. He has not signed on as a co-sponsor of HR-25.

Disclaimer: The author sits on the Board of Directors of Fair Tax – Florida.

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Surprise! Obamacare Creating Some Jobs

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Sean Hackbarth from FreeEnterprise.com states, “I don’t think this was what the public had in mind when the President and supporters sold them Obamacare as a job-creator.”

The federal health law derided as a “job-killer” by critics will create an estimated 9,000 jobs in 14 states this summer to handle consumer inquiries about new online insurance marketplaces.

The jobs are through Vangent, a General Dynamics subsidiary, which was awarded a $530 million one-year contract by the federal government to set up call centers to answer inquiries (sic) related to the insurance marketplaces in 34 states where they will be run in whole or part by the federal government. Other states will run their own marketplaces with their own call centers.

“And these few thousand government-created, taxpayer-funded jobs don’t make up for the workers at the Circle K Southeast convenience store chain who will be pushed into part-time work because of the health care law. [via Free Beacon] Nor does it make up for those workers in local government, higher education, restaurants, a movie theater chain, and in other firms who will also see their hours pared back,” notes Hackbarth.

Read the full column here.

 

Rubio: Internet Sales Tax is a money grab by tax-hungry states

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Washington, D.C. – U.S. Senator Marco Rubio (R-FL) issued the following statement regarding this evening’s vote on the so-called Marketplace Fairness Act, which would force businesses that sell products and services online to collect sales taxes from consumers in other states where these businesses have no physical representation:

“The Internet sales tax is a terrible idea that will crush small businesses with the new burden of having to collect taxes from their out-of-state consumers. The Internet sales tax is nothing more than a money grab by tax-hungry state and local governments that are desperate for more revenue because they refuse to cut spending.

“As far as job-killing taxes go, the Internet sales tax is the worst kind because, rather than only take the hard-earned money of small businesses, it imposes more complications and burdens for businesses to comply with.

“To illustrate how bad an idea this Internet sales tax is, if it ever becomes law, it will force businesses in Florida to collect sales taxes imposed by over 9,000 jurisdictions throughout the U.S. That means companies will be forced to spend more time and money figuring all of this out and making sure they send the right amount to each state and municipality where their consumers reside. The more companies are burdened with new mandates like this, the less time and money they have to grow their businesses and create new jobs.”

Florida’s Internet sales tax

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According to NOLO, the online legal encyclopedia, “The Internet takes tax-free shopping to a new level. In fact, no-tax shopping has become a prime lure of online retailers looking to hook consumers on click-and-charge buying. Despite what you sometimes hear, however, some Internet sales are subject to sales tax, and even when a site doesn’t collect sales tax, consumers are technically responsible for remitting any unpaid sales tax on online purchases directly to their state.”

For information on the Internet sales tax laws for each state, see NOLO’s Internet Sales Tax: A 50-State Guide to State Laws.

NOLO states, “The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a “physical presence.” The physical-presence rule is based on a 1992 United States Supreme Court decision, Quill Corp. v. North Dakota, that addressed the obligations of mail-order businesses to collect sales tax on out-of-state sales. The decision has been extended to include online retailers.”

NOLO reports in its column “Florida Internet Sales Tax“, “A more specific statement of what counts as physical presence under Florida law can be found among the various definitions of “dealer” (meaning a person or entity required to pay sales tax) in Section 212.06 of Florida’s sales and use tax law. More particularly, a ‘dealer’ under this law includes ‘any person . . . who maintains or has within [Florida], directly or by a subsidiary, an office, distributing house, salesroom, or house, warehouse, or other place of business’.”

Senator Nancy Detert, R-FL District 28.

Senator Nancy Detert, Florida District 28, introduced SB 0316: Taxes. SB 0316 states:

Taxes; Reducing the tax rate applied to the sale of communications services; reducing the tax rate applied to retail sales of direct-to-home satellite services; revising the term “mail order sale” to specifically include sales of tangible personal property ordered through the Internet; providing that certain persons who make mail order sales and who have a nexus with this state are subject to this state’s power to levy and collect the sales and use tax when they engage in certain enumerated activities, etc.

NOLO notes that in 2012:

“The Florida legislature recently considered amending the state’s legal definition of a mail-order sale so that Internet “dealers” who do not have a physical presence in the state would nonetheless have to pay Florida sales tax. Laws of this sort have been considered in various forms in various states. They are sometimes referred to as “Amazon laws.”

[ … ]

More particularly, earlier this year the Florida legislature considered amending the state’s sales and use tax law to require out-of-state “dealers” without a physical presence in Florida, but with so-called “click-through” arrangements with persons in Florida, to nonetheless collect sales tax. Such a dealer would need to collect sales tax from Florida customers if that dealer:

  • had an agreement with one or more Florida residents to direct potential buyers to the dealer via a website link
  • compensated the Florida residents for directing potential buyers to the online dealer, and
  • the dealer’s “cumulative gross receipts” from such directed sales to Florida customers exceeded $10,000 within the preceding 12 months

However, the proposed legislation was never enacted. It remains unclear whether similar legislation will be re-introduced in the future.

We know that Senator Detert did introduce this legislation during the 2013 session.

Final Words from NOLO:

The issue of whether to require online retailers to collect sales tax in a state where they have no physical presence has been a matter of ongoing debate. At this time, however, Florida has not enacted any law that would require such retailers to collect sales tax from Florida customers.

In Florida, the physical-presence rule continues to apply for Internet retailers. However, because the issue remains contentious, you should consider checking in periodically with the Florida Department of Revenue to see if the rules have changed. Also, for more general information on taxes on Internet sales, see Nolo’s article Sales Tax on the Internet.

AARP files brief in the Florida Supreme Court challenging the Florida Public Service Commission

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Attorney Jack L. McRay – representing the AARP – has filed a brief with the Florida Supreme Court asking the Court to remand the recent decision by the Florida Public Service Commission (Commission) to approval a “secret” settlement agreement between Florida Power & Light (FPL) and three other parties related to FPL’s March 2012 petition filed with the Commission to raise electric rates for some 4.1 million customers.

McRay argues that AARP is a nonprofit organization with a membership that helps people 50+ years of age – have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. McRay argues that utility costs comprise a substantial portion of their housing expenses – that the burden can be severe – that even people who own their homes outright may pay over half their limited income for housing – due in large part to the high cost of utilities. Inability to pay utilities ranks as the second most common cause for eviction after inability to pay rent.

AARP is appealing to the Court to ensure that the Commission follows the law in setting residential utility rates that are fair, just, and reasonable. The Commission approved a non-unanimous settlement in the FPL case – contrary to Florida law – because it failed to make findings based upon competent, substantial evidence on the record as a whole to address the objections raised by OPC – representing the interests of residential ratepayers. Moreover, the Commission approval of the settlement includes new matters that should not be included in the rate case because no public notice of them was provided as required.

Check cashing anti-fraud bill passes Florida legislature

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Representative W. Travis Cummings

Tallahassee, Fla. – The Florida Office of Financial Regulation (OFR) today commended the Florida Legislature for the passage of House Bill 217, which if signed into law, will require check cashiers to log check cashing data into a statewide database designed to prevent fraudulent activity.

“It has been a pleasure working with the various stakeholders on this very important legislation that is long overdue,” said Representative Travis Cummings, sponsor of the bill.  “I am convinced that the use of technology via this real time database will significantly combat fraud that is currently costing our state roughly $1 billion annually.”

The new legislation will require check cashiers to log any checks cashed in excess of $1,000.  In addition to the check amount, each business will be required to submit traceable information such as payer  payee, fee charged, type of identification presented and payee’s workers’ compensation insurance policy number, if the check was made out to a business.  The bill also provides that multiple checks accepted from any one person in one day, which total $1,000 or more, must be aggregated and reported in the database.

“This legislation allows our state agencies to work together to prevent and fight fraud,” said OFR Commissioner Drew J. Breakspear. “The new database will allow the OFR to efficiently and effectively track and investigate potential fraudulent activity with real time information from our partners at the Department of Financial Services (DFS) and the Department of State (DOS).”

This legislation is one of the recommendations from a work-group convened by Chief Financial Officer, Jeff Atwater, to look at the complicated and organized premium avoidance scheme that is pervading the workers’ compensation insurance market.  In some cases, check cashing store owners are being used to accomplish this fraud.

“This work-group brought together all stakeholders to develop recommendations on how to clean up the industry,” said CFO Atwater. “I applaud the Florida Legislature for passing this bill and look forward to working with the OFR to prevent and prosecute fraudulent activity.”

The check cashing database created by this legislation will have the capability to interface with the Secretary of State’s database for purposes of verifying corporate registration and articles of incorporation.  The database will also have the capability to interface with the DFS database for purposes of determining proof of coverage for workers’ compensation.

“Florida’s financial service centers have worked hard to help ensure passage of House Bill 217 to provide regulators with a real-time database of check cashing transactions,” said Corey Mathews, Executive Director of the Financial Service Centers of Florida.  “This critical tool will help law enforcement to identify and prosecute criminals who are attempting to invade the financial services industry.”

“Workers’ Compensation fraud is a problem that negatively affects consumers and taxpayers every day,” said James Banks, Executive Secretary Treasurer of the Florida Carpenters Regional Council.  “Florida’s Carpenters applaud the steps the Legislature has taken to level the playing field in the construction industry by creating additional tools for our law enforcement community.”

Judicial Watch Uncovers USDA Records Sponsoring U.S. Food Stamp Program for Illegal Aliens

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(Washington, DC) – Judicial Watch today released documents detailing how the U.S. Department of Agriculture (USDA) is working with the Mexican government to promote participation by illegal aliens in the U.S. food stamp program.

The promotion of the food stamp program, now known as “SNAP” (Supplemental Nutrition Assistance Program), includes a Spanish-language flyer provided to the Mexican Embassy by the USDA with a statement advising Mexicans in the U.S. that they do not need to declare their immigration status in order to receive financial assistance.  Emphasized in bold and underlined, the statement reads, “You need not divulge information regarding your immigration status in seeking this benefit for your children.”

The documents came in response to a Freedom of Information Act (FOIA) request made to USDA on July 20, 2012.  The FOIA request sought: “Any and all records of communication relating to the Supplemental Nutrition Assistance Program (SNAP) to Mexican Americans, Mexican nationals, and migrant communities, including but not limited to, communications with the Mexican government.”

The documents obtained by Judicial Watch show that USDA officials are working closely with their counterparts at the Mexican Embassy to widely broaden the SNAP program in the Mexican immigrant community, with no effort to restrict aid to, identify, or apprehend illegal immigrants who may be on the food stamp rolls. In an email to Borjon Lopez-Coterilla and Jose Vincente of the Mexican Embassy, dated January 26, 2012, Yibo Wood of the USDA Food and Nutrition Service (FNS) sympathized with the plight of illegal aliens applying for food stamps, saying, “FNS understands that mixed status households may be particularly vulnerable.  Many of these households contain a non-citizen parent and a citizen child.”

The email from Wood to Lopez-Coterilla and Vincente came in response to a request from the Mexican Embassy that the USDA FNS step in to prevent the state of Kansas from changing its food stamp policy to restrict the amount of financial assistance provided to illegal aliens.  In a January 22, 2012, article, the Kansas City Star had revealed that the state would no longer include illegal aliens in its calculations of the amount of assistance to be provided low-income Hispanic families in order to prevent discrimination against legal recipients.

The documents, obtained by Judicial Watch in August 2012, include the following:

  • March 30, 2012 – The USDA seeks approval of the Mexican Embassy in drafting a letter addressed to consulates throughout the United States designed to encourage Mexican embassy staffers to enroll in a webinar learn how to promote increased enrollment among “the needy families that the consulates serve.”
  • August 1, 2011 – The USDA FNS initiates contact with the Mexican Embassy in New York to implement programs already underway in DC and Philadelphia for maximizing participation among Mexican citizens. The Mexican Embassy responds that the Consul General is eager to strengthen his ties to the USDA, with specific interest in promoting the food stamp program.
  • February 25, 2011 – The USDA and the Mexican Consulate exchange ideas about getting the First Ladies of Mexico and United States to visit a school for purposes of creating a photo opportunity that would promote free school lunches for low-income students in a predominantly Hispanic school. Though a notation in the margin of the email claims that the photo op never took place, UPI reported that it actually did.
  • March 3, 2010 – A flyer advertises a webinar to teach Hispanic-focused nonprofits how to get reimbursed by the USDA for serving free lunch over the summer. The course, funded by American taxpayers, is advertised as being “free for all participants.”
  • February 9 , 2010 – USDA informs the Mexican Embassy that, based on an agreement reached between the State Department and the Immigration & Naturalization Service (now ICE), the Women, Infants & Children (WIC) food voucher program does not violate immigration laws prohibiting immigrants from becoming a “public charge.”

As far back as 2006, in its Corruption Chronicles blog, Judicial Watch revealed that the USDA was spending taxpayer money to run Spanish-language television ads encouraging illegal immigrants to apply for government-financed food stamps. The Mexican Consul in Santa Ana, CA, at the time even starred in some of the U.S. Government-financed television commercials, which explained the program and provided a phone number to apply. In the widely viewed commercial the Consul assured that receiving food stamps “won’t affect your immigration status.”

In 2012, Judicial Watch reported that in a letter to USDA Secretary Tom Vilsack, Alabama Senator Jeff Sessions questioned the Obama administration’s partnership with Mexican consulates to encourage foreign nationals, migrant workers and non-citizen immigrants to apply for food stamps and other USDA administered welfare benefits. Sessions wrote, “It defies rational thinking,” Sessions wrote, “for the United States – now dangerously $16 trillion in debt – to partner with foreign governments to help us place more foreign nationals on American welfare and it is contrary to good immigration policy in the United States.”

“The revelation that the USDA is actively working with the Mexican government to promote food stamps for illegal aliens should have a direct impact on the fate of the immigration bill now being debated in Congress,” said Judicial Watch President Tom Fitton. “These disclosures further confirm the fact that the Obama administration cannot be trusted to protect our borders or enforce our immigration laws. And the coordination with a foreign government to attack the policies of an American state is contemptible.”

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Bill repealing ethanol standard passes Florida legislature

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Representative Matt Gaetz (FL-District 4)

Florida Representative Matt Gaetz sent out this email to his constituents:

Today, the Florida Senate passed SB 320 sponsored by Senator Evers.  This language is equivalent to the House bill that was passed two weeks ago and repeals the ethanol mandate in the state of Florida.  I am proud to say that both chambers of our Legislature agree that consumers in Florida should not be subject to oppressive mandates.

This legislation will now be sent to Governor Rick Scott. We are hopeful that after this long battle, the faithful patrons of our great state will be relieved of the overwhelmingly negative effects of ethanol. Following two years of fighting for this repeal, there is only one step is left before it will officially become law.

I cannot thank you enough for your endless support.  It is an honor serving you and I look forward to the final weeks of a successful legislative session.

Very truly yours,

Matt

Tax Day 2013: America waking up with a case of an in the red Monday

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The following is courtesy of the Heritage Foundation:

Americans are waking up today to the worst “case of the Mondays” they’ll have all year: It’s Tax Day.

Most Americans dread Tax Day, and for good reasons. Beyond the huge tab Americans pay to the government, the tax code is so complex that it’s difficult to figure out what we owe to the IRS. This is a pain for taxpayers and a huge drain on the economy.

According to the federal Taxpayer Advocate in its 2012 report, Americans’ cost of complying with today’s complex tax code totaled $168 billion in 2010. That’s almost as large as the impact of the Obama tax hikes in fiscal year 2013, and twice the size of sequestration this year [see chart].

It takes taxpayers 6.1 billion hours—or 51 hours per household—to complete all the required filings. That’s more than six full eight-hour working days per household!

The compliance burden comes on top of the direct financial cost of $3.5 trillion in federal spending. In 2012, Washington collected $20,000 in taxes for every household in America. But Washington spent nearly $30,000 per household.

TaxDay_403

Americans pay high taxes as it is, and with the 13 tax increases that hit this year, tax revenue is growing beyond its historical average as a share of the economy. But Washington’s deficits continue, because spending keeps going up.

Future Tax Days promise to be even worse because of the tax increases from the fiscal cliff deal and from Obamacare. Taxpayers will start seeing these costs when they do their tax returns next April and in future years.

Too much taxing and spending is bad for the nation. Americans are right to be concerned about how the President and Congress allocate their hard-earned money. As the above infographic shows, 45 percent or almost half of all spending went toward paying for Social Security and health care entitlements. Without reforming these massive and growing programs, Washington will have to borrow increasing amounts of money, piling debt onto younger generations and putting the nation on a dangerous economic course.

Growing government spending threatens current and future taxpayers with higher taxes. Congress should reduce spending and prevent any more tax increases. Congress also needs to reform the tax code so it is less of a burden on the American people.

Tax day is a real drag, but it doesn’t have to be this bad. Learn more at savingthedream.org.

Read the Morning Bell and more en español every day at Heritage Libertad.

Tampa Bay Young Republicans, Local Leaders Join Forces To Attract Magpul Industries Corp.

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Magpul products displayed with special operations soldier

Tampa, FL – Today, the Tampa Bay Young Republicans along with local county and state legislators have signed a letter addressed to executives at Magpul Industries Corp. of Colorado in an effort to earn their consideration of Hillsborough County as the site of their new manufacturing operations and corporate headquarters.

According to its website, “Magpul was founded in 1999 with the intent of developing a simple device to aid in the manipulation of rifle magazines while reloading under stress. The company’s name comes from this original product called the Magpul®. Over the last decade Magpul has continued to grow and develop using much the same mission and process with a focus on innovation, simplicity, and efficiency.”

On March 18, Magpul Industries Corp. announced via their Facebook page that due to Colorado Governor Hickenlooper’s signing of HB 1224 which limits firearm magazine capacities – their core business – that they would be relocating their manufacturing operations to a location to be determined 30 days from the signing of the bill.

“As the saying goes, their loss is our gain, and we have an incredible opportunity to attract hundreds of manufacturing jobs and one of the country’s largest defense contractors to Hillsborough County.” said Jonathan Torres, President of the Tampa Bay Young Republicans.” We are fortunate that like us, we have community leaders that have seen this great opportunity and joined us in this effort to attract such a perfect business partner for the Tampa Bay area.” said Torres.

Joining the Tampa Bay Young Republicans in this appeal is Hillsborough Board of County Commissioners Chairman Ken Hagan, and State Representatives Dana Young and James Grant. “The Tampa Bay region is a natural fit for Magpul Industries as it searches for a new place to call home.” says Grant. “Florida has a tremendous record of protecting Second Amendment rights and would welcome Magpul with open arms.”

Hillsborough County is currently home to MacDill Air Force Base, whose mission is to support the United States Central Command (USCENTCOM), United States Special Operations Command (USSOCOM), Special Operations Command Central (SOCCENT), and much more. The Tampa Bay Young Republicans are certain that this will be a great opportunity to create post-military service careers for many veterans of MacDill Air Force Base and help keep them in our community.

Magpul’s website reads, “There is something to be said for great ideas, however, ideas are nothing more than dreams until they are realized in a form that is accessible to the marketplace. Magpul is known for its creative design solutions, and we are proud of our accomplishments in this arena not only because they are novel, but because we have successfully turned many of our dreams into reality.”

Tampa is hoping one of their great ideas, which turns into a reality, is a move to the sunshine state.

To view the letter sent to the executives of Magpul Industries Corp. click here.

About the Tampa Bay Young  Republicans

The Tampa Bay Young Republicans is a social, philanthropic, and activist organization serving young professionals between the ages of 18 and 40 in the Tampa Bay region of Florida. TBYR’s mission is to create a network of politically conservative-minded individuals promoting Republican philosophies, values, and those candidates running under the Republican Party. For more information visit www.tbyr.com.

Exposing Tax Filing Costs

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As part of National Taxpayer Burden Month, Watchdog Wire is presenting a series of interviews, columns and videos dealing with the current progressive income tax system. The current income tax was created 100 years ago with the passage of the Sixteen Amendment to the US Constitution.

As part of our National Tax Burden Month activities we are highlighting a series of videos produced by Kerry Bowers, the State Director for Nevada FairTax. For 13 years Bowers lived in Florida, the last 4 as the Panhandle Director for the Florida FairTax Educational Association.

According to the Fair Tax website:

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.

Bowers support to FFTEA and AFFT has been through legislative expertise specific to HR 25/S 122, computer presentations, and video productions. The following is a video presentation exposing the true tax filing costs born by every taxpayer.

To video more video presentations by Kerry Bowers go to his YouTube Channel.

RELATED COLUMNS:

When is your tax freedom day?

VIDEO: Buchanan Tax Reform panel raises disturbing future without major changes

Disclaimer: The author is on the Board of Directors of the Florida FairTax Educational Association

Wealth is coming to Florida from guess where?

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Governor Rick Scott is working to make Florida business friendly. One part of what is happening, missed by the media, is the transfer of wealth from other states to the sunshine state.

The website HowMoneyWalks.com has an application that tracks how money moves between states and between counties within states. This is a great resource for anyone interested in how wealthy individuals literally vote with their feet, and bank accounts.

Below is the over view of the wealth gain for Florida from 1995-2010:

Florida

Wealth Migration 1995-2010

Gained $86.39 billion in annual AGI*

*AGI – adjusted gross income as defined by the IRS. For most people AGI is the starting point in calculating their taxable income.

Gained Wealth From:

$16.76 billion   New York
$10.20 billion   New Jersey
$6.22 billion   Illinois
$5.89 billion   Ohio
$5.68 billion   Pennsylvania

 

Lost Wealth To:

$1.38 billion   North Carolina
$710.67 million   Tennessee
$465.83 million   South Carolina
$413.47 million   Arizona
$345.49 million   Texas

 

Looking at the sixty-seven counties in Florida we find that Miami-Dade is the only county that has lost wealth between 1995-2010. Here is the view of wealth loss by Miami-Dade County, FL:

Miami-Dade County (FL)

Wealth Migration 1995-2010

Lost $2.18 billion in annual AGI*

AGI – adjusted gross income as defined by the IRS. For most people AGI is the starting point in calculating their taxable income.

Gained Wealth From:

$312.84 million   New York County, NY
$159.88 million   Queens County, NY
$105.37 million   Middlesex County, NJ
$88.39 million   Kings County, NY
$83.80 million   District Of Columbia, DC

 

Lost Wealth To:

$2.15 billion   Broward County, FL
$299.04 million   Palm Beach County, FL
$121.28 million   Orange County, FL
$107.22 million   Collier County, FL
$107.19 million   Hillsborough County, FL

 

Rubio: We don’t need a new idea. There is an idea. The idea is called America, and it still works. (+ video)

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Senator Marco Rubio (R-FL) visited Sarasota, FL on March 15, 2013. He was greeted by over 50 donors at a private event hosted by Jesse Biter, a local entrepreneur. During his remarks at the Sarasota event Senator Rubio restated his belief that “We don’t need a new idea. There is an idea. That idea is called America, and it still works.” This was what he said at CPAC 2013.

Watch Senator Rubio’s CPAC 2013 remarks:

Senator Rubio was introduced at the Sarasota event by Representative Vern Buchanan (FL-13). Rep. Buchanan noted that he has traveled across the globe looking at what other countries are doing to promote economic growth. Rep. Buchanan noted that China is doing better at growing its economy than the United States, noting that China is on track to create 20 million jobs annually.

Senator Rubio during his remarks spoke about the $1 trillion in outstanding student loans, half of which will be in default. He said that this student loan burden impacts the middle class and our youth most of all. He also raised the specter of a rising China and its impact on the global economy. Rubio warned of not having enough workers skilled to fill 3 million of today’s jobs. He touched on the national debt, Congressional spending and an intransigent White House.

Those in attendance at the Sarasota event and those at CPAC 2013 were impressed by Senator Rubio’s “the American idea” comments. However, Rabbi Steven Pruzansky, the spiritual leader of Congregation Bnai Yeshurun in Teaneck, New Jersey does not agree with Senator Rubio’s outlook.

Rabbi Pruzansky states in an email, “The simplest reason why Romney lost was because it is impossible to compete against free stuff.”

Rabbi Pruzansky notes, “Every businessman knows this; that is why the “loss leader” or the giveaway is such a powerful marketing tool. Obama’s America is one in which free stuff is given away: the adults among the 47,000,000 on food stamps clearly recognized for whom they should vote, and so they did, by the tens of millions; those who – courtesy of Obama – receive two full years of unemployment benefits (which, of course, both disincentivizes looking for work and also motivates people to work off the books while collecting their windfall) surely know for whom to vote. The lure of free stuff is irresistible.”

“During his 1956 presidential campaign, a woman called out to Adlai Stevenson: ‘Senator, you have the vote of every thinking person!’ Stevenson called back: ‘That’s not enough, madam, we need a majority!’ Truer words were never spoken,” states Rabbi Pruzansky.

Will there ever be a majority of thinking persons?

Rabbi Pruzansky does not think so. He closed his email with, “If this election proves one thing, it is that the Old America is gone. And, sad for the world, it is not coming back.”

Sinkholes: Florida taxpayers’ looming financial disaster

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Sinkholes have been in the news recently when Mr. Jeff Bush went missing after his bedroom was swallowed up. Efforts to find Mr. Bush have been stopped.

See the  map below to understand the extent of the Florida sinkhole problem:

Click on map for a larger image.

The tragedy of Mr. Bush is overshadowed by the potential costs of paying sinkhole claims by Citizens Insurance Corp. 

According to the September 2012 Citizens Property Insurance Corporation rate hearing, “Citizens lost nearly $1 billion on sinkhole losses occurring in 2007-2011 with a loss ratio for sinkhole business for 2011 of 877%. This created net loss for the PLA for year ended 12/31/11 and resulted in less financial resources to pay for future hurricanes.”

Unlike private carriers Citizens is not able to manage risk and reduce policy counts to manage such risk. As an insurer of last resort, created by Florida statute, Citizens must write most risks that apply for coverage.

Florida property owners received their property insurance bills and found the line item “FL HURRICANE CAT FUND PREMIUM RECOUPMENT”.

When Watchdog Wire asked Citizen Insurance: Is this recoupment a tax increase on all homeowners? The reply was, “Yes, all Floridians assume the potential for assessments should Citizens run into a deficit situation.”

This “recoupment” is a tax on every Florida property owner.

According to Citizens Insurance, ”Citizens may levy an Emergency Assessment when Citizens incurs a deficit in any year and that deficit exceeds the amount to be collected by the Regular Assessment.” See Florida Statue 627.351(6).

Florida taxpayers may be the next sinkhole victims – a sinkhole called Citizen Insurance.