When Radical Isn’t Radical–It’s Original

I am not an economist, but I am an observer of the obvious.

In a recent speech, President Trump talked about ending the Income Tax and restructuring the Federal Reserve. Either or both of those things would be good for all Americans and for the American economy.

Before 1913, the United State had neither the Federal Reserve nor the Income Tax. Both measures were passed in 1913. On February 25, 1913, the 16th Amendment (Income Tax) was certified as part of the U.S. Constitution. On December 23, 1913, the Federal Reserve Act created the Federal Reserve.

The men who met at Jekyll Island to create the Federal Reserve represented 25 percent of the wealth of the entire world. They met in secret, and their identities were concealed for many years afterward. Their goal was to keep that 25 percent of wealth in their hands. They created the system for the purpose of keeping New York City banks as the center of America’s wealth. The federal reserve created a system where money could be created out of nothing and loaned out through a leverage system to create interest. For example, over a 30-year mortgage, a bank can earn more from the sale of a house than any contractor who worked on the house.

The Income Tax was supposed to only impact the top 1 percent of Americans. Before 1913, the government’s expenses had been handled through tariffs.

To end the Income Tax, you would have to end the Welfare State. One way to do that would be to tax welfare benefits but not wages. When it becomes more lucrative to work than to collect welfare, it is possible that the work ethic that used to be part of American culture might be revived. You would also have to slash the bloated bureaucracy. The economic boom created by ending the Income Tax would give those who lose their jobs in government a great job market in which to search for new jobs. We need to get rid of any government department that is not successful–has education improved since the Department of Education was created? What has Housing and Urban Development accomplished? How many people in the Justice Department would have to be fired to end the corruption? You no longer need the Internal Revenue Service. You see where I am going with this.

The opposition to this plan would come from federal workers (fear of losing their jobs). Opposition would also come from Washington swamp creatures who would see it as a threat to their power (in Washington controlling money is power). It would also come from welfare recipients.

The other issue would be Social Security and its related taxes. That could be worked out easily by balancing payments to people who have paid into the program for more than forty years with alternatives for younger workers. With a retirement age of 70, most Americans pay the most into Social Security from about the age of 30.

This is all possible if Americans are willing to elect a businessman who has the economic knowledge to put it all together.

Imagine a world where you get to keep all of what you earn and the government cannot intimidate you about your taxes.

Ending The War On The Suburbs

The New York Post posted an article yesterday about President Trump undoing a policy put in place under President Obama that would impact the freedom of Americans to live where they choose to live in the neighborhoods they choose.

The article reports:

During the Obama administration, the Department of Housing and Urban Development tried to install Washington bureaucrats as the decision makers for how communities across all 50 states should grow. Using an obscure rule called Affirmatively Furthering Fair Housing, HUD sought to remake America’s cities, towns and villages by forcing any community that was getting federal funds to meet racial quotas.

To do this, HUD applied the notion of “disparate impact,” which unilaterally deems housing patterns to be discriminatory if minority representation is not evenly spread across the jurisdiction. Communities with high concentrations of minorities are automatically labeled segregated.

Westchester served as the petri dish for HUD’s “grand experiment.” On Jan. 1, 2010, the day I was inaugurated as county executive, a federal consent decree signed by my predecessor went into effect requiring Westchester to spend at least $56 million to build 750 units of affordable housing over the next seven years in 31 white communities — or face crippling financial penalties.

The article details the problems the program created in Westchester County, New York.

The article then notes the solution:

The impasse finally ended with the election of Donald Trump. Elections matter.

But the big win came last month, when — based on Westchester’s experience and expertise from groups like Americans for Limited Government — the Trump administration replaced Team Obama’s AFFH regulation with its own.

Gone is the federal mandate dictating the modeling of communities based on statistical formulas. Restored to local officials is the power that gives them the flexibility to weigh real-world factors in making housing decisions. Restored, too, is the prosecution of bad actors by the courts — not bureaucrats — under the Fair Housing Act.

And builders are now more likely to build affordable housing, since the attached strings have been removed.

The Democratic candidates for president didn’t get the memo. They continue to support radical, divisive and failed housing policies aimed at abolishing single-family residential zoning. And they’d use billions of our tax dollars to local communities — and the threat of lawsuits — to get their way.

The United States needs affordable housing. By replacing social engineering with common sense, guarded by strong nondiscrimination laws, the country is now better positioned to meet that need — and that’s a victory for everyone.

The free market coupled with individual choice and freedom is always the best solution for any problem.

A Really Good Idea

On October 24, The Federal Times posted an article about relocating some of the Washington bureaucracy. What a great idea. We need to move some of the people in charge of government agencies closer to the people they are supposed to serve. We also need to break up the concentration of power that is the Washington swamp.

It is not a coincidence that many of the wealthiest counties in America are suburbs of Washington, D.C.

According to Wikipedia (a questionable source, but I suspect this is correct):

Presented below are the 25 highest-income counties (with populations of 65,000 or greater) in the United States by median household income according to the 2016 American Community Survey[4] prepared by the US Census Bureau. Five of the counties are located in the state of Maryland, five are in Virginia, four in California, three in New Jersey, two in New York, and one each in: Colorado, Georgia, Massachusetts, Ohio, Tennessee, and Texas. (Disclaimer: This only includes counties that participated in this single survey)

The Federal Times reports:

The Trump administration’s decision to move three agency components outside the Washington, D.C., metropolitan area has spurred a sizeable amount of controversy, but Sens. Josh Hawley, R-Mo., and Marsha Blackburn, R-Tenn., want to keep going with that trend.

The two senators introduced a bill Oct. 23 that would move about 90 percent of the workforce at the headquarters for 10 federal agencies to other states around the country and pop the “bubble” of D.C. federal employment.

“Every year Americans’ hard-earned tax dollars fund federal agencies that are mainly located in the D.C. bubble. That’s a big part of the problem with Washington: they’re too removed from the rest of America,” said Hawley in a news release.

“The HIRE Act will move policymakers directly into the communities they serve, creating thousands of jobs for local communities and saving taxpayers billions of dollars along the way.”

Under the proposal, the Department of Agriculture would move to Missouri, Commerce to Pennsylvania, Education to Tennessee, Energy to Kentucky, Health and Human Services to Indiana, Housing and Urban Development to Ohio, Interior to New Mexico, Labor to West Virginia, Transportation to Michigan and Veterans Affairs to South Carolina.

Obviously there are objections to this idea. The swamp is not enthusiastic about being split up!

The article concludes:

About 20 percent of D.C. residents are employed directly by the federal government, according to OPM and population data, while each of the 10 states slated for agency relocation under the bill have about .3 to one percent of their populations working for the federal government.

But Washington has an incredibly small population when compared with these states, and even if the entire D.C. federal workforce were to be relocated equally across the 10 states, the state with the lowest percent of federal workforce, Michigan, would only move from .3 percent to .4 percent.

The bill is bound to get strong pushback not only from the Democratically controlled House, which has been opposed to many of the Trump administration’s smaller moves, but also from the Virginia and Maryland members of Congress, whose states and districts would be likely to lose a number of jobs due to a relocation.

Relocation might also clear up the incredible traffic jam that is Washington, D.C. I suspect that it also would be cheaper to run government agencies in places where renting or owning office space would be considerably lower.

This will probably never happen, but it is a great idea.

Common Sense Is Not Always Appreciated

Yesterday Breitbart posted an article about some recent comments by Dr. Ben Carson.

The article shows us how a smear campaign works. The article reports:

Secretary of Housing and Urban Development (HUD) Ben Carson issued an agency-wide email Friday attacking a “blatant mischaracterization” of his comments about transgenderism during his visit to California this week, which reportedly offended bureaucrats in San Francisco.

The Washington Post broke the story on Thursday, citing “three people present” at a HUD meeting:

Housing and Urban Development Secretary Ben Carson expressed concern about “big, hairy men” trying to infiltrate women’s homeless shelters during an internal meeting, according to three people present who interpreted the remarks as an attack on transgender women.

While visiting HUD’s San Francisco office this week, Carson also lamented that society no longer seemed to know the difference between men and women, two of the agency staffers said.

Carson’s remarks visibly shocked and upset many of the roughly 50 HUD staffers who attended Tuesday’s meeting, and prompted at least one woman to walk out in protest, the staffers said.

A HUD official, who had not been present at the meeting, defended Carson, saying he never used derogatory language against transgendered people. The official added that “Carson was referring to men who pretend to be women to gain access to battered women’s shelters — and not singling out transgender women as “big, hairy men.”

The article concludes:

In May, Carson announced a new HUD rule that would allow local homeless shelters to decide for themselves if they wanted to use biological sex, not gender identity, as a basis for deciding how to provide housing. The policy under the Obama administration had been a one-size-fits-all rule forcing all shelters to recognize gender identity.

Carson has decided that the safety of homeless women must come before transgender concerns about identity — and before the political sentiments of agency bureaucrats based in a state that has failed to tackle growing homelessness.

The issue here is the safety of women seeking shelter from abuse. What is to stop an abuser from saying he is transsexual to gain access to a shelter and then terrorizing the women in it? Who wants to be responsible for the first death in a women’s shelter caused by a man who gained access by claiming to be a transsexual when he was not?

The policy here is common sense. It is in place to protect women. Are we willing to sacrifice the safety of abused women in order to placate the transgender movement?