It’s Wednesday, January 4th, 2012….and here’s The Gouge!

First up in 2012, the WSJ serves up yet another reason a Romney Administration will require firm, tea-stained hands in both the House and Senate:

Will Republicans Hand the Left a VAT Victory?

Mitt Romney won’t rule out the possibility of imposing a tax that’s the fast track to a European welfare state.

In a recent interview on these pages, presidential candidate Mitt Romney refused to rule out a value-added tax (VAT). He suggested that this hidden form of a national sales tax—which is embedded in the prices of goods and services during the production process—might be appropriate, particularly as a way of financing other tax cuts.

He’s not the only Republican to speak favorably of a VAT. Herman Cain’s 9-9-9 tax plan featured a flat tax and national sales tax. Very few people realized, however, that the final 9 was a VAT. And Rep. Paul Ryan, the chairman of the House Budget Committee and a favorite of the tea party thanks to his bold reforms to modernize Medicare and Medicaid, includes a VAT in his “Roadmap” plan, where it helps finance other reforms such as eliminating the corporate income tax.

What’s going on here?

Most Republican supporters are drawn to the VAT for relatively benign reasons. It is a single-rate system, like the flat tax, for raising revenue, so it does not raise the possibility of class-warfare demagoguery. The VAT also doesn’t hit savings and investment. And there are no distorting and corrupt loopholes. So there’s a lot to like about the levy—or would be, if there were some practicable way of substituting a VAT for taxes on income.

Others assume that taxes eventually will be increased and they’d prefer to raise revenue in a less-destructive fashion. Better to impose a small VAT, the arguments go, than allow higher marginal tax rates on personal and corporate income to distort and discourage work effort and growth-enhancing investment.

These are legitimate motives, but it’s important to look at what we can actually expect, not what some imagine in theory.

The most important thing to realize is that many people in Washington want bigger government, and a VAT is a necessary condition for that to happen. Simply stated, there is no way to turn America into a European-style welfare state without this new source of revenue.

But what about financing bigger government with higher income taxes, particularly on the wealthy? Though they’d never admit it publicly, smart left-wingers understand that there are two powerful reasons why soak-the-rich tax increases won’t raise much revenue.

First, there aren’t enough wealthy people to finance big government. According to IRS data from before the recession, when we had the most rich people with the most income, there were about 321,000 households with income greater than $1 million, and they had aggregate taxable income of about $1 trillion. That’s a lot of money, but it wouldn’t balance the budget even if the government confiscated every penny—and if it did, how much income do you suppose would be available in year two?

Second, higher tax rates don’t raise as much revenue as expected. Upper-income individuals are far more likely to rely on interest, dividends and capital gains—and it is much easier to control the timing, level and composition of capital income, so as to avoid exposing it to the tax man.

This doesn’t mean that those on the left won’t push for class-warfare tax increases—they will. But their main motive will be politics, not raising revenue.

And that’s why, looking at the long-run fiscal situation, the left needs a VAT. It’s is the only realistic way to collect the huge amount of revenue that will be necessary to finance the mountainous benefits promised by our entitlement programs. Which is exactly what happened in Europe, where welfare-state policies only became feasible after VATs were adopted, beginning in the late 1960s.

In this country, some manufacturers are willing to overlook the VAT’s flaws because the tax is “border adjusted.” This means that there is no VAT on exports, while the tax is imposed on imports. For mercantilists worried about trade deficits, this is a positive feature that they claim will put America on a “level playing field.”

But that misunderstands how a VAT works. Under our current tax system, American goods sold in America don’t pay a VAT—but neither do German-produced goods or Japanese-produced goods that are sold in America because their VAT tax is rebated on exports. Meanwhile, any American-produced goods sold in Germany or Japan are hit by a VAT, as are all other goods.

In other words, there already is a level playing field. To be sure, there will also be a level playing field if America adopts a VAT. But it won’t make any difference to international trade. All that will happen is that the politicians in Washington will get more money whenever any products are sold.

Unsurprisingly, President Obama is favorably inclined toward a VAT, having recently claimed that it is “something that has worked for other countries.” And yet it’s unlikely that the president would propose a VAT, in large part because he is fixated on class-warfare tax hikes. If he did, almost every Republican in Congress would be opposed, even if only for partisan reasons.

But what if a VAT sympathizer like Mr. Romney wins next November and decides that his plan for a lower corporate tax rate is only possible if accompanied by a VAT? There will be quite a few Republicans who like that idea because they want to do something nice for their lobbyist friends in the business community. And there will be many Democrats drawn to the plan because they realize that they need this new source of revenue to enable bigger government.

That’s a win-win deal for politicians and a terrible deal for taxpayers.

Seriously, anyone who thinks our country’s fiscal fiasco is a result of insufficient revenue, raise your hand; there’s a bridge in Brooklyn we’d like to show you.  We for one would willingly support a VAT, as it would finally subject approximately 50% of America’s population to the real pain of taxation….but only conditioned upon the total elimination of any form of income, capital gains, wealth or inheritance taxes.

Here’s the juice: John Fogerty had the majority of today’s politicians in mind when he wrote:

And when you ask them,
“How much should we give?”
They only answer “More! More! More!”

We say enough is enough….indeed, TOO much!

Next up, it’s the “MSM Bias….WHAT Bias?!?” segment, courtesy today of Newsbusters.com and the aptly-named Beth Fougy of the Associated Press:

AP Reporter Needles GOP Candidates For Rarely Bringing Up George W. Bush

In 1984, an Associated Press writer covering the Democratic primaries wrote that “In a presidential contest dominated by concerns over the economy, inflation, and unemployment, the Democratic candidates have been loath to acknowledge the extent to which Carter administration policies contributed to those problems. Democrats have also controlled Congress for most of the past three decades, which made it relatively easy to enact the policies Carter pursued.”

Of course, that AP report really never happened. The establishment press never razzed Walter Mondale, Gary Hart, and the other 1984 Democratic presidential candidates about the ruinous Carter-Era inflation, 20%-plus interest rates, and high unemployment against which the Reagan administration was making significant progress in the early 1980s. But on Tuesday morning, Beth Fouhy at the Associated Press felt it necessary to wonder why this year’s GOP primary candidates are rarely mentioning George W. Bush, even though the economy under Barack Obama is making relatively scant progress towards a genuine recovery and makes a much more appropriate target for criticism. Here was her comparable paragraph, plus the two which followed:

In a presidential contest dominated by concerns over the weak economy, government spending and the $15 trillion federal debt, the Republican candidates have been loath to acknowledge the extent to which Bush administration policies contributed to those problems. Republicans also controlled Congress for six of the eight years Bush was in the White House, clearing the way for many of his policies to be enacted.

There is no question that Obama’s policies, including the federal stimulus program and the auto industry bailout, have swollen the deficit and deepened the debt. And three years into his presidency, Obama often falls back on complaints about the bad situation he inherited when seeking to defend his own economic performance.

But while Obama may be overly eager to blame the Bush years for the nation’s problems, GOP presidential contenders seem just as eager to pretend those years never happened.

Get used to it; at the rate the economy continues to sink….along with the Dimocrats poll numbers….George W. Bush will be on the ballot well into the 2020’s!

Which brings us to Tales From the Darkside, and this just in from the California of the East Coast:

Lawsuit Claims Maryland Not Doing Enough to Desegregate Schools

A piece of patently prevaricative prose that brings to mind the words of the immortal Vincent LaGuardia Gambini:

Then again, if Congress can impose an individual mandate requiring the purchase of health insurance, how much of a stretch is it for the Courts to force Caucasians to matriculate at historically black colleges and universities.  Though we seriously doubt Mr. Greenbaum will advocate the forced integration of the respective HBCU’s football and basketball programs!

And since we’re on the subject of educational bullsh*t….

School Defends “Occupy” Song For 8-year-olds

A Virginia school district is defending a song allegedly written and performed by a group of third graders about the Occupy Wall Street movement that conservative bloggers are calling a form of indoctrination. The song, “Part of the 99,” was performed by children at Woodbrook Elementary School in Albemarle County, Virginia.

A spokesman for the school system said as far as they were concerned there isn’t a controversy and called criticism of the program unfortunate. “We really don’t censor the topics that students come up with,” school spokesman Phil Giaramita told Fox News & Commentary. “This is the first time we’ve had the lyrics of one of these songs criticized.”

The controversy surrounding the song was first reported by the Weasel Zippers website.“They’re actually claiming third-grade children wrote these lyrics and chose the topic as well,” Weasel Zippers wrote. “Because what eight-year-old child isn’t obsessed with class warfare?”

Giaramita said the song was part of a program sponsored by Kid Pan Alley. The boys and girls worked with a facilitator to come up with a theme and lyrics for a song. The songs are not allowed to promote any political or personal agenda. “This was written four months ago,” he said. “And I think this particular issue of the Occupy movement was being looked at in a different way than it is today.”

But some critics are wondering how a group of eight-year-old children could write the following lyrics:

Some people have it all
But they still don’t think they have enough
They want more money
A faster ride
They’re not content
Never satisfied
Yes — they’re the 1 percent

I used to be one of the 1 percent
I worked all the time
Never saw my family
Couldn’t make life rhyme
Then the bubble burst
It really, really hurt
I lost my money
Lost my pride
Lost my home
Now I’m part of the 99

Some people have it all
But they still don’t think they have enough
They want more money
A faster ride
They’re not content
Never satisfied
Yes — they’re the 1 percent

I used to be sad, now I’m satisfied
’Cause I really have enough
Though I lost my yacht and plane
Didn’t need that extra stuff
Could have been much worse
You don’t need to be first
’Cause I’ve got my friends
Here by my side
Don’t need it all
I’m so happy to be part of the 99

Giaramita said he has no doubts that eight-year-old children could write such lyrics and denied that teachers might have influenced their song choice. “Students aren’t told what to write by either school officials or by the people associated with Kid Pan Alley,” he said. “I’ve talked with teachers and they tell me you’d be amazed at how creative a lot of children are these days – even younger than that.”

“I’ve spoken with the Kid Pan Alley people, the principal and they all say the same thing – kids aren’t told what to write and you would be surprised or amazed at how creative and how thoughtful children even at that age are,” he said.

However, Kid Pan Alley issued a statement to NewsPlex.com expressing concern about the song. “Last November, when the Kid Pan Alley Board of Directors was made aware of the song in question, we took swift action to clarify our guidelines for lyrical content,” the statement read.

Sure they wrote it….but only if this….

….is the class in question!

On the Lighter Side….

Finally, we’ll call it a wrap with the “Idiots in the Wild” segment, courtesy of a fool named Chris….and we don’t mean Columbus!

iPhone Flashlight Helps Save Lost Hiker in Maryland

A Maryland man lost while hiking on New Year’s Eve is thanking modern technology for his rescue, MyFoxDC reports. Christopher Tkacik wasn’t alone out in the woods, he had his best friend and hiking companion with him, his dog named Boo. The pair are back home in Mount Airy, Md., safe and sound, rescued with the help of his smartphone by helicopter after being lost in the woods.

Tkacik and his pooch were hiking in Gambrill State Park when they crossed the same creek for the fourth time and knew they were lost. He called 911 and the sheriff sent a helicopter.

At home, his wife Aysem sent Tkacik a text message. “At 5:23 p.m., I ask, ‘Where are you?’” Aysem Tkacik says, reading the message that is still on her phone. “And he goes, ‘Lost. Police on their way.'” “Bad thing, but good thing,” Tkacik explains. “And she said, ‘Where are you?’ I really don’t know.” “And I keep asking ‘Ok. Do I need to worry?’” Aysem asked. “No,” Tkacik responded in the text conversation.

Tkacik was reassured by his iPhone. “Having a charged phone made a world of difference,” says Tkacik. “If I didn’t have a phone, I would have been stuck really bad.” But he says he couldn’t trust the Map application. “It kept telling me that I’m here,” he says, pointing to a location on his phone. But he knew that he wasn’t.

As soon as he heard the police helicopter, Tkacik turned on the phone’s flashlight, which caught the flight crew’s eye. “It’s really scary,” Aysem says. “You have no idea what kind of an ending it’s going to have.” After four hours of searching, two rescuers eventually rappelled 150 feet down from a park police helicopter and escorted Tkacik and his best friend Boo out of the woods.

“He gave me Steve Jobsbiography for Christmas,” Aysem says. “And I started reading it. Steve Jobs with the iPhone – oh my gosh – technology’s good.”

For those of you unfamiliar with The Land of Gentle Living, Gambrill State Park is bordered on the north, south, east and west by ROADS, one of which is Interstate 70….not to mention the spine of a mountain offering spectacular views of the surrounding area and ROADS runs down the MIDDLE OF THE PARK!!!

We can only hope Maryland authorities charged Mr. Tkacik for his lack of common sense.

Here’s wishing everyone a safe and prosperous 2012!

Magoo