Drinking and Driving – A Personal Anecdote

This personal anecdote is a prequel to our series about drinking and driving. 
Drinking and Driving – A Personal Anecdote
By: George Noga – September 3, 2017
     Proper public policy about drinking and driving can be summed up in one phrase: laws should focus on actions rather than on conditions. I present a persuasive case that America’s current approach to drinking and driving is wrongheaded. Please bear with me until you have read the entire two-part series of which this anecdote is a prequel.
       It was 2:30 AM on New Year’s Day 1964; I was 20 years old and driving home. I carelessly ran out of gas but luckily it was near an all night gas station. I walked to the station for a container of gas. Just as I began pouring gas into the car, two policemen arrived. It was obvious I was sloshed as I labored to hold the funnel and pour the gas. One officer, with a straight face, asked if I had been drinking. It was New Year’s, my car had college and fraternity decals and my motor skills were clearly impaired.
      My understated reply was that I had a few drinks earlier in the evening. The second officer asked if I was okay to drive. I blathered something to the effect that I could get home and would be exceedingly careful doing so. The police then suggested I stop at a nearby diner for coffee, whereupon they left with the parting admonition: “Be careful.
I returned the gas container, stopped for coffee and drove home uneventfully.
      There are several fecund facets of this story to speculate about. It could be argued I received privileged treatment as I was a white, well dressed, respectful college student. Legally, it could be argued the officers had not observed me driving; however, they could have held me for public intoxication or simply waited for me to drive and then cited me. Or, they could have held me for underage drinking. However, I knew from the outset the worst thing that would happen to me would be going to the station and drinking coffee with the officers until they deemed me okay to drive.
    The police evaluated the situation and correctly concluded I was not a threat to anyone. In that pre-Vietnam era, police would go out of their way to be helpful and their respect was reciprocated. Not only was there no animus between young people and police, there was a reservoir of good will. That is why I intuitively grasped I would not be charged with any violation. That is how things were in 1964 America.
    If the same incident occurred today, I would be jailed and charged with DUI. Lacking $10,000 for competent legal defense, I would be saddled with a permanent criminal record and forever barred from the military and many other jobs. I would be subject to a staggering array of risible sanctions including suspended/restricted driving, car boots, hackneyed counseling, alcohol/GPS monitors, curfews, fines, community service, asset forfeiture and even jail time. All of this would be followed by years of highly invasive probation. Is this truly better for America than the situation in 1964?
    I know many readers may diverge from me on this subject and I again ask that you suspend reaching a conclusion until you read the following parts of this series. If you agree with the present drinking and driving paradigm, the facts and logic will lead you in a different direction, i.e. to a policy that penalizes actions rather than conditions.

Next up in 3-4 days is Part I of our series: Drinking and Driving in America

Montana Moments – No Crying in Montana

The local PTA raised money by raffling an AR-15 semi-automatic assault rifle
and, but of course, the local community college offers courses in gunsmithing.
Montana Moments – No Crying in Montana
By: George Noga – August 27, 2017
     The first thing that hits you about Montana, other than the ubiquitous Rand Paul signs, is its size. When we first began summering in Whitefish, I mentioned to a friend, who had a ranch 100 miles east of Billings, that perhaps we could visit some weekend. He said, “George, that’s a 600 mile drive.” I made the same mistake visiting Europeans make, i.e. misunderstanding the scale. When looking at a map, Europeans believe they can drive from Whitefish to Chicago in one day; it really is 1,600 miles distant.
     A few years ago Montana’s population surpassed one million for the first time. Instead of  happiness and gratification, the news was greeted throughout the state with unalloyed dismay, bewilderment and consternation. Until recently, it was tough to find a national newspaper in Whitefish. We once stopped at a large general store to inquire if they carried USA Today. The perky 16 year old young lady who waited on us instantly replied, “We do not consider ourselves to be part of the USA.”
     Once I was beginning a round of golf along with three native Montana friends when the starter permitted a group of women to go ahead of us even though it was our turn. When questioned about his louche behavior by one of our group, the starter replied that one of the women had cried and he felt sorry for her. One of my Montana friends said, “There is no crying in golf“. The words were scarcely out of his mouth when the other two Montanans exclaimed in unison, “There is no crying in Montana“!
      In nearby Kalispell there are big box stores with alarms that go off when customers fail to remove anti-shoplifting tags. The alarms go off constantly and the explanation always is the same. The customers are packing heat and they forgot to leave their guns in the car. Despite the ubiquity of guns, the gun homicide rate in the Flathead Valley is less than one every four years. When police make a traffic stop, they expect to see a gun inside the car; it is no big deal. The local PTA recently raised money by raffling an AR-15 semiautomatic rifle. You read that right; the school raised money auctioning an assault rifle. Of course, the local community college offers a course in gunsmithing.
    A local man whose daughter was murdered (by a former boyfriend) with a gun blames the killer, not the gun. He remarked, “Having a gun is pretty much just a normal thing.” He went on to say that his daughter had her own .270 hunting rifle and that she recently got two bucks and mounted them herself. This leads to something my son (who moved to Whitefish four years ago) often says, “The girls here all know how to skin a deer, but they don’t know which fork to use.” That may not be all bad.
    Eastern Montana is part of the great plains where large farms proliferate. People there vote Democrat due to a populist tradition and huge agricultural subsidies. The mountainous western part of the state is conservative except for a liberal enclave in Missoula – home to the University of Montana. Locals are fond of saying that the best part of living in Missoula is that it is only ten minutes away from Montana.

Sanctuary Cities and Nullification

Sanctuary cities are but the latest in a long train of citizen nullification in America.
Sanctuary Cities and Nullification
By: George Noga – August 23, 2017
       Sanctuary cities are examples of citizens nullifying laws they deem objectionable. Our history reveals myriad examples as far back as the Salem witch trials in 1692 which ended for one reason only, i.e. jury nullification. There were 52 consecutive acquittals and/or hung juries before prosecutors quit bringing cases. Other notable instances of citizen jury nullification are fugitive slave laws, labor union strikes, prohibition, Vietnam protesters and sodomy laws. Jury nullification is traceable to English common law, Magna Carta, the American Constitution and the Bill of Rights.
       Last year an Oregon jury delivered a devastating nullification to the DOJ in the Bundy case. During the protesters’ occupation, federal agents descended on the nearby town of Burns and mounted license plate scanners on utility poles, flew drones overhead and monitored communications. Most startling was the revelation that paid government informants outnumbered defendants. After a prosecution costing taxpayers $100 million, the jury acquitted all defendants of every charge despite the evidence.
     Citizen grand juries, traceable to 12th century England, are another form of nullification. Our founders intended citizen grand juries to be a fourth government branch as a buffer between citizens and government. In the 18th and 19th centuries any citizen could bring complaints directly to a grand jury which conducted its own investigation. Only recently have prosecutors taken over the grand jury system.
      Yet another form of nullification is the longstanding theory that states have the right to nullify federal laws and acts of the federal government. This is traceable to Thomas Jefferson’s notion that individual states have a right (even a duty) to abrogate laws that are unconstitutional or usurp powers not granted to the federal government. Southern states threatened (but never actually invoked) such nullification during the pre civil war era. State nullification has oft been threatened but never implemented.
      This brings us to the present controversy about sanctuary cities, which is nothing more than another form of citizen nullification whereby states, counties or cities refuse to enforce federal law. As with other forms of nullification, this form has a lengthy provenance – back to 1798 when Kentucky and Virginia refused to enforce the Alien and Sedition Acts within their boundaries. Of course, many northern states refused to enforce federal fugitive slave laws. Moreover, sanctuary cities are not the only nullification issues active today. Several states refuse to enforce federal drug laws and have enacted contrary laws. Likewise, many states decline to enforce federal gun laws.
      The legal situation is fairly clear. The Supreme Court has ruled that the feds cannot compel state or local officials to spend money to enforce federal law. The Court also ruled that the feds may contemporaneously (but not retroactively) attach strings to money for states provided there is a rational nexus such as linking highway funds to lower speed limits. Therefore, the Trump Administration can withhold money from sanctuary cities only under future legislation that contains an appropriate nexus.
      Citizen nullification has a rich history and tradition in America with many forms and antecedents. It provides an effective tool for local resistance to federal tyranny. Remember: there are two sides to the nullification coin. A federal government with the power to force sanctuary cities to enforce federal immigration law also has the power, inter alia, to force cities to make abortions and euthanasia available on demand, to dictate transgender restrooms and to impose the entire gamut of liberal phantasms.

Our next post scheduled for Sunday contains more Montana Moments

Montana Moments – Guns and Rodeos

In blue-state America, 8 year olds ride bicycles and toy guns are banned.
In Montana, at the same age, kids ride bulls in rodeos and own real guns.
Montana Moments – Guns and Rodeos
By: George Noga – August 20, 2017
     I once observed a boy riding a tricycle in his front yard with both parents hovering nearby. Even though his head was near the ground and it is hard to fall off a trike, he wore a huge helmet. I instantly knew I was not in Montana where a young boy wearing a helmet means he may be riding a bull; yes, a real wild bull – and that’s no bull.
      Every Thursday during summer there is a rodeo in a small town (population 5,000) near Whitefish. Admission is $10 and often 2,000 people (40% of the town) attend. Rodeo participants are mostly locals. The opening ceremony promptly at 7:00 PM is moving. Riders full gallop into the arena with American, Canadian and Montana flags. They make a few loops and then come to rest for the playing of our national anthem. Instantly, the arena becomes eerily quiet as everyone stands, removes hats, holds them over their hearts and sings along. The simple ceremony imparts a warm feeling.
     There are many events during the 2-hour rodeo, one is youth bull riding. Kids can compete beginning on their eighth birthday. We once were seated next to a woman who averred she was a bit nervous because her son just turned 8 and was riding a bull for the first time. There are precautions: the bulls are young; their horns are trimmed back; and the boys wear helmets. Nevertheless, the 500 pound bulls are undomesticated.
      Many preteens and teens attend rodeo. It is not uncommon to see these kids with six-inch hunting knives strapped to their waists and freely mingling with the crowd. If kids turned up at a blue-state junior high football game wearing similar knives, panic would set in; SWAT teams would fast rope in; and the stadium would be evacuated. It would lead the local news and there would be a movement to ban knives in public.
      In blue-state America toy guns are banned. In Montana, toy guns are unnecessary because kids get real guns and not BB or pellet guns. Often by age eight they are on their second rifle. An 11-year-old can get a Montana hunting license and the first one is free. Montana has hunting seasons set aside strictly for youths ages 11-15. Youth deer hunting season always is the Thursday and Friday in October immediately prior to regular deer hunting season. So many kids go hunting that Montana has been forced to close all schools statewide during the two days of youth deer hunting season.
     Infantilization of children is child abuse. It hobbles their emotional development; they experience academic problems; and they have poor social skills. They are averse to responsibility and often fail as adults. The goal of progressives is to infantilize not just children but all Americans. They want a nanny state with government as the nanny and all of us as children. It is comforting to know there still are places like Montana where decisions about children are made by parents and not by the state!

Next: watch for our special MLLG mid-week posting about sanctuary cities.

Ultra Short Medley of Pithy Tidbits

A collection of ultra short but pithy nuggets from MLLG’s treasury
Ultra Short Medley of Pithy Tidbits
By: George Noga – August 13, 2017
      This summer I am experimenting with different formats. This post presents several ultra short, but blog-worthy, tidbits that have accumulated over the past year.
Dakota Access Pipeline now open Environmental protesters left 250 truckloads of detritus spread over 50 acres. The army cleaned up the toxic sludge before it flowed into Lake Oahe, the same lake protesters said would be polluted by the pipeline. This is not just a one off story; liberal protesters never clean up after themselves.
Who’s your progenitor? In Spain, birth certificates no longer use mother or father; instead they use “progenitor A” and “progenitor B“. Marriage licenses list “spouse 1” and “spouse 2“. Chimps, apes and orangutans have been granted full human rights.
The Chavez Diet is a sure way to lose weight. Just move to Venezuela and eat all the food you can scavenge. Last year 80% of Venezuelans lost at least 20 pounds. If you go, be sure to bring your own toilet paper to this socialist workers’ paradise.
When is climate change global warming? Progressives prefer climate change; but when summer rolls around, they revert to global warming. Canny, these liberals!
Obamacare for dummies To insure the uninsured, Obamacare first must uninsure the insured and then mandate they become reinsured at higher cost. The extra premium they pay is for the original uninsured now to become insured at far below cost.
Liberal Dogma: You can kill the golden goose but continue to get golden eggs.
The difference a day makes Young lovers born a day apart break no law until the day one of them turns 18. For that one day only, sex can be rape. The next day, when both are 18, everything is again legal. Teenagers have been prosecuted for this. Government has rendered the sex offender registry meaningless because of such lunacy.
Latest liberal food paranoia Celiac disease, a serious reaction to gluten, affects 1% of Americans although only 100,000 have been diagnosed. Nonetheless, 110 million progressives avoid gluten – equal to 1,100 for each person diagnosed. To make food gluten-free, many polysyllabic chemicals are substituted. Watch what you wish for.
Circus never closes Barnum & Bailey closed but the Washington circus never ends. Circuses, carnivals and freak shows have not disappeared; they simply moved to Washington and cable news shows. They feature prestidigitation, illusion, fake news, people who talk incessantly without saying anything – even bloody severed heads.
GMOs turn 20 The first GMO was used in 1997. Since then, not one person has gotten even a bellyache. Crop yields are up over 20% while pesticide usage declined nearly 40%. Without GMOs, an additional 100,000 square miles (Ohio and Indiana) would have to be cultivated. Someone please remind me why GMOs are Frankenfood.
Obama living the high life He gets $400,000 for speeches to Wall Street firms and jets all over the world cocooned in luxury and leaving a gargantuan carbon footprint. Pocahontas, a/k/a Elizabeth Warren, said he is out of touch with most Americans. And this coming from someone who received $430,000 to teach one class at Harvard.

Montana Moments – Whitefish

Montana Moments – Observations about life in Whitefish and Montana
Montana Moments – Whitefish
By: George Noga – August 6, 2017
        I always am surprised by the ardent reader reaction whenever I write about life in the Flathead Valley of NW Montana. This reminds me of Marjorie Kinnan Rawlings, who in 1930 moved to Cross Creek, Florida – not far from my home outside Orlando. Rawlings aspired to write Edwardian novels but her letters describing life in rural Florida won her acclaim and led to The Yearling, for which she won a Pulitzer Prize. I entertain no such Pulitzer pretensions; but after writing thousands of pages of pithy analysis and commentary, it is Montana Moments that endears itself to my readers.
       I’ll share more Montana Moments with you during this, our twelfth summer here. I begin with what makes Whitefish such a special place. It is the western gateway to Glacier National Park (“GNP”), the best such park in the USA. NW Montana is remote with little lodging capacity; hence, the park is not a mob scene even during summers. The range of activities in GNP is mind boggling. It contains the only US tri-continental divide, where waters flow into three oceans – Atlantic, Pacific and Arctic. Its main artery, Going-to-the-Sun Road, has to be one of America’s most stunning drives.
     While GNP is 30 miles east of Whitefish, Big Mountain ski basin lies but 7 miles north. Ski Magazine has rated it the eleventh best ski resort in the world – yes, the world. Due again to limited lodging capacity, the slopes are uncrowded, lift lines unknown and the cost a fraction of other top resorts. During summers Big Mountain is alive with mountain biking, hiking, zip lines and huckleberry picking. Whitefish Lake, a pristine 7 mile long glaciated lake, is right in town and offers all water activities. Just 30 miles south lies Flathead Lake, the largest lake west of the Mississippi.
    Whitefish is at 3,000 feet altitude, making it cool in summer but without the difficulties associated with high elevations. Summers are arid with temperatures most days hovering in the 70s and 80s. There are 3 scenic rivers nearby, the north, middle and south forks of the Flathead River. The plethora of year-round activities is breathtaking; every conceivable outdoor sport or activity is readily available.
       Segueing from the natural to the man-made environment, Whitefish’s population is 6,400 souls and it has the look and feel of middle America decades ago. Despite its low population, it has a year-round full symphony orchestra. Its theatre and entertainment would be excellent for a town 25 times bigger. It is endowed with abundant fine dining. There are non-stop events and festivals to tempt locals and visitors alike. Within a short drive there are several excellent golf courses, including the best course in Montana. There are times it is possible to golf and ski during the same day.
      Even with its veritable cornucopia of attractions, Whitefish remains welcoming to visitors, although it took me awhile to understand “drunken Canadian” was not all one word. It is surprisingly affordable. Last year a group of us went to a local watering hole for drinks; the tab for 27 drinks was $33. Even at happy hour prices, that is incredible. For some balance, I tried to find something negative to write. All I could come up with is the occasional forest fire that wafts smoke into town, sometimes for weeks.

Taxation in America – Buffet vs. Bosanke

Taxation in America resumes by examining the progressivity of the US tax code; also, we compare Warren Buffet to his secretary, Debbie Bosanke. 
Taxation in America – Buffet vs. Bosanke
By: George Noga – July 30, 2017
     We examine liberal assertions that: (1) the US tax system favors the rich; and (2) Warren Buffet pays a lower tax rate than his secretary. When including refundable tax credits, the lowest income 60% of Americans pay less than 1% of individual income taxes. This is by far the lowest of any nation; moreover, the share of Americans not paying tax has doubled in recent decades. OECD and other studies confirm America has the most progressive tax system including federal, state, local and payroll taxes.

      Let’s turn from the bottom 60% to the top income cohorts. The highest income 10% of Americans pay 35% more of the total tax burden than in Sweden for cryin’ out loud. Data are similar for the top 1% or 5%. During the past 30 years, the US has become far more progressive relative to Sweden, Germany, France and Finland. Corporate tax rates in America also are the highest in the developed world – by a large margin.

    The liberal reflex is to blurt out, “Although income taxes are progressive, payroll taxes are steeply regressive and this makes the overall tax system regressive.” They fail to distinguish between a general purpose tax and one linked to a specific benefit to a specific taxpayer. Consider: (1) the tax base is capped, but so is the benefit; (2) higher income taxpayers receive less of a benefit as a percentage of contributions than lower income taxpayers; and (3) Social Security income is subject to highly progressive income tax rates. Independent studies, including by the Social Security Administration, conclude that both Social Security and Medicare taxes are progressive.

Warren Buffet Versus Debbie Bosanke

    Using virtually any metric, the US tax code is the world’s most progressive. Liberals trot out disingenuous comparisons for misdirection and maskirovka to try and show the system favors the wealthy. Perhaps the most bizarre liberal attempt to bamboozle and to hoodwink is the assertion Warren Buffet pays a lower tax rate than his secretary.

    MLLG once published a highly detailed tax computation showing Warren Buffet’s true tax rate; this post was one of our all-time most popular and is easily accessible on our website: www.mllg.us.  This post summarizes and updates data from the original.

     Buffet asserted he paid 17.4% in income tax and his secretary paid a much higher rate. In truth, Buffet paid close to 80% solely on that tranche of his income. Before Buffet can invest, he must first earn income subject to taxes of federal 39.6%, payroll 6.2%, Nebraska 6.8% and Obamacare 3.8%. He may then invest his after tax income in Berkshire and pay federal tax on his share of Berkshire’s income at 35% and Nebraska tax at 7.8%. When he sells stock he pays a 20% capital gains tax. At death, Buffet is subject to a federal estate tax of 40% and a Nebraska tax of 18%. Whew!

     When properly computing his tax, Buffet is subject to an overall rate of nearly 80%. The 17.4% rate he cited was cherry picked from only the capital gains phase of the complete tax cycle. Furthermore, Debbie Bosanke earns $250,000+ per year – unlike a typical secretary who earns more like $25,000 and pays little or no income tax.

      Buffet (like liberals everywhere) was cynically banking on the ignorance and class envy of the American people. His deception transcends political spin and crosses into a netherworld of duplicity and deceit. It froths with contempt for the American people. All we can do is shine the bright spotlight of truth on this sordid affair.

We now begin our summer in Montana and the next post is a surprise.

Electromagnetic Pulse Attack

North Korea, Iran or ISIS could kill 300 million Americans with one EMP weapon
Electromagnetic Pulse Attack
By: George Noga – July 23, 2017
      We’ll get to EMPs after a few words about MLLG. I am ensconced in Whitefish, Montana until October. During August and September I will continue the Taxation in America series. I have more time while in Montana and will test some new posting formats such as personal anecdotes, ultra-short posts and more frequency. I will reprise the Montana Moments posts about life in Montana which is popular with readers. Email me with suggestions for topics or anything else you would like to see.

America’s Greatest, Least Understood and Most Preventable Threat

       Several of my 2017 posts have referenced electromagnetic pulse (“EMP”) threats to America without providing details. Readers have requested an explanation for how up to 300 million Americans could die, for example, from a single EMP weapon smuggled into the US on a container ship and launched from a river barge via weather balloon. EMPs are by far the most dangerous weapons ever known to mankind.

       An EMP is a high-intensity burst of electromagnetic (gamma ray) energy. A single EMP weapon detonated high over the center of the US would kill mainly through starvation. The death toll could reach 90% of the US (and Canadian) population even though no one would die from the blast. Without getting hyper-technical, an EMP blast would knock out all power and electronics causing irreversible damage to electrical transmission lines and anything with digital or electronic components.

     Airplanes would fall from the sky. Vehicles would stop. Water and sewer lines would fail. Transportation would cease. Food would rot and run out. There would be no electricity, communications or computers. US cities have only a 3 day supply of food. Society would collapse amidst mass starvation and the rule of law would be replaced by the law of the jungle. Few Americans would even know what happened.
Read William Forstchen’s popular trilogy about an EMP attack on America. Also, NBC’s TV series “Revolution” depicted life in America 15 years after an EMP attack.

       EMP damage is permanent and can’t be repaired. Nothing works – not planes, cars, trains trucks, pipelines, gas pumps, radio or TV stations, hospitals, communications, or electricity. There is no way to get food or fuel to people; most deaths are from starvation. New equipment would have to come mostly from outside the US and could take over a year to obtain. The US would become a third world country with a population of 35 million and vulnerable to occupation by potential enemies. In Forstchen’s trilogy, Mexico attacks, reclaiming all of the American Southwest.

     Pyongyang already has an EMP weapon which makes it likely that Iran, its strategic nuclear partner, also has one; if Iran has one, it is not far fetched ISIS could get one. Some North Korean missile tests likely are rehearsals for an EMP attack. North Korea could launch an EMP attack from one of its orbiting satellites. We might never even know who was responsible for an EMP attack launched via offshore freighter, satellite, river barge, submarine or weather balloon. EMPs are quintessential asymmetric warfare as our adversaries are much less reliant on modern electronics.

     The most important role of government is protection from external threats. Aside from some military sites, nothing in America is protected. If we hardened our electrical grid and stored back up equipment wherever needed, we could recover quickly. Even more importantly, such preparedness would deter possible enemies from launching an EMP attack in the first place. The cost is manageable and it could be done quickly.

     Protecting America from EMP attack is the ultimate shovel-ready project. However, our political class chooses to dither over ephemeral issues rather than to address an eminently preventable catastrophe and an existential threat to 300 million Americans.

Next up is part III of our intermittent series: Taxation in America.

Trump Presidency at Six Months

Trump earns an A+ for being Donald Trump – and not Hillary Clinton. 
Trump Presidency at Six Months
By: George Noga – July 16, 2017
     This post is in response to many reader requests for our take on the Trump presidency. Recall that MLLG is non partisan; we don’t much care for either political party. Our lodestar is all in our name – more liberty and less government. Nonetheless, unlike liberals, we don’t live in a bubble and must deal with the world as it is.

     First off, Trump has done a phenomenal job on the singularly most important aspect of his presidency, i.e. he is not Hillary Clinton! In the end, little else matters as he gives America a respite from its progressive-led death march toward Gomorrah. Each day Trump is in office is a day Hillary is not; that alone is ample cause to celebrate.

      If Trump is judged on his actions and appointments, and not his words and tweets, there is much to like. Assessed against the more liberty, less government standard, he also earns reasonably good marks. Trump’s critics err by taking him literally but not seriously; whereas the key to understanding Donald J. Trump is to take him seriously but not literally. His accomplishments, in addition to not being Hillary, are:

1. National Security. Trump’s national security team of Tillerson, Mattis, McMaster and Pompeo is outstanding and they work together seamlessly and in sharp contrast to the internecine feuding of the Bush and Obama teams. Trump is squarely addressing the festering problems Obama kicked down the road including North Korea, Iran and ISIS. However, Trump’s proposed increase in defense spending is far too little.
2. Cabinet Appointments. Including the inspired national security team, his cabinet is arguably the strongest since George Washington. Ben Carson, Betsy DeVos, Tom Price, Scott Pruitt and Ryan Zinke round out the cabinet; don’t forget Mike Pence.
3. Judicial Appointments. His Supreme Court and lower court appointments have been as good as anyone could wish for. In four (or eight) years, he can make a difference.
4. Taxes, Regulation, Environment and Energy. Trump aces all these business related issues. He showed courage and leadership in pulling out of the Paris climate accord.
5. Health Care. Although imperfect and incomplete, Trump has done about as well as possible given the resistance from Democrats. If Hillary had won, she would have used the implosion of Obamacare to impose nationalized health care on America.

     There are also many things not to like about Trump’s first six months; the worst ones, in approximate order, are: (1) protectionist trade policy including opposition to NAFTA, TPP and China; (2) lack of discipline in keeping on message, talking and tweeting too loosely and often; (3) failure to understand the traditions and protocols of his office; and (4) law enforcement issues including continuation of the failed war on drugs, civil asset forfeiture and ignoring the need for police reform.

     To evaluate Trump, judge him on his actions and appointments, not his words and tweets. Take him seriously but not literally. Finally, rejoice each and every day that Trump is president, because that is a day when Hillary is not. Hallelujah!

Our July 23rd post describes the threat America faces from an EMP attack.

Taxation in America – The Ideal Paradigm

This post presents the theoretically correct approach to taxation in America.
It is vital to understand the ideal – even if it has no chance of becoming law. 
Taxation in America – The Ideal Paradigm
By: George Noga – July 9, 2017
       Economists often begin by defining the ideal. In that spirit, we present the ultimate plan of federal taxation. Our plan is transparent, fair, simple, pro-growth and neutral with no corporate welfare or social policy. Compliance (now $600 billion per year) is cheap, quick and easy; evasion is nigh impossible. It abolishes the IRS and the need to provide government personal financial data. It taxes the underground economy (an enormous revenue enhancer), broadens the tax base and has no exemptions or mandates. It taxes consumption and not income, savings, investment or wealth.

      The ideal tax is a tax on consumption collected from consumers at the point of sale. All other federal taxes are abolished. Individual and corporate income taxes, payroll taxes, capital gains taxes and death taxes are abolished. Every American would know each time a purchase was made that he/she was paying a tax and the amount of the tax. If government raised taxes, Americans would be painfully aware every time they bought something. The true cost of government would be manifestly transparent.

       Everyone, even the poorest, would pay the tax. However, government could make the tax burden fair to all by any one of several means such as tax rebates for the first tranche of annual consumption or by a form of UBI (universal basic income). It is the proper role of government to decide which citizens are subject to the tax and the best method to rebate money to those who are fully or partially exempt from the tax.

      The national consumption tax (“NCT”) would be progressive, as those who spend more would pay proportionately more tax. Lower income Americans would benefit enormously because an NCT would be incredibly pro growth. Without a corporate tax, jobs and investment would flood into America from abroad. Without taxes on income, savings, investment or wealth, capital would surge into new investments creating new jobs; productivity would go on steroids. Note: The NCT could be in the form of a VAT, provided the tax was collected from consumers and not embedded in products.

      Economists of all stripes agree on much, if not all, of this. There is widespread consensus to abolish corporate and business taxes as nearly every dollar of such taxes comes from higher prices paid by consumers. Since most consumers are not wealthy, corporate taxes are highly regressive, harming the poorest among us. Payroll taxes are regressive as they are imposed only on the first tranche of income. The 50% paid by employers is entirely regressive as it really is the workers’ money. All in all, the new NCT would be less regressive than all of the taxes that are abolished.

        America can enact a simple, fair tax regimen that is the envy of the world. We can create a veritable cornucopia based on sustained economic growth for all Americans. We could generate enough growth to defuse the crisis of spending, debt and deficits, buttress Social Security and Medicare and fund a robust national defense.

    Unsurprisingly, the main obstacle is the Sturm und Drang between politics and economics. Economists of all persuasions broadly agree on a plan such as presented herein. Politicians however, prefer things complex and opaque; they prefer class warfare and demagoguing about how to divide the pie rather than growing the pie. They prefer to milk the system for political contributions. Saddest of all, they prefer to see their political enemies fail far more than they wish to see America succeed.

We return to Taxation in America in a week or two, following other posts.