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Libertarian Candidates Pledge: Abolish the Income Tax

in Drugs, Economic Liberty, Elections and Politics, Liberator Online, Libertarian Party, Libertarian Stances on Issues, Libertarianism, Military, Taxes by James W. Harris Comments are off

(From the Intellectual Ammunition section in Volume 19, No. 15 of the Liberator Online. Subscribe here!)

Scores of Libertarian Party candidates for federal office have pledged to downsize the Abolish The IRSbloated federal government — in these big and specific ways:

  • Eliminate the federal income tax
  • End the War on Drugs
  • Abolish the NSA
  • Cut military spending by 60%

We’ll be examining those pledges in detail below and in the next few issues, because they show that these bold-sounding proposals are not only possible, but practical and beneficial. (Of course, you can jump ahead and read about all four positions right now.)

First, eliminating the hated federal income tax. The candidates pledge: “If elected, I will sponsor legislation to eliminate the federal income tax, cut federal spending to the 1998 level ($1.65 trillion), and get the IRS off the backs of taxpayers.”

(Yes, that’s right: government has grown so rapidly in recent times that if you cut spending to 1998 levels — the Clinton era of huge government — you could eliminate the federal income tax.)

Here are the benefits of eliminating the income tax, according to the Libertarians:

  • Immediately balances the budget — without raising taxes.
  • Gives back, on average, $11,525 to each American family — every year — that they can invest, save, spend, or give away as they see fit.
  • Pours $1.4 trillion into the productive, private-sector economy, stimulating massive investment in small businesses and creating tens of millions of new private-sector jobs.
  • Stops the devaluation of the dollar and stabilizes prices, preserving American wealth.
  • Forces politicians to eliminate destructive federal programs, regulations, and bureaucracies that do more harm than good. Examples include: stifling business regulations, the prohibition of marijuana, unnecessary foreign wars, and thousands of frivolous projects best left to the private sector (e.g., promoting the Hawaiian Chocolate Festival).
  • Creates a boom in charitable giving. Trillions of dollars back in the hands of American taxpayers enables them to take care of others in need through their churches and private charities, and by giving directly to help friends, family, and community members in need.
  • Eliminates wasteful bookkeeping needed to comply with IRS tax filings and audits, saving Americans 6 billion hours of their precious time and up to $378 billion in accounting costs — every year.
  • Aborts the Democrats’ and Republicans’ plan to add another $5 trillion over the next eight years to the already perilously high $17 trillion federal government debt, sparing future generations from footing a bill they played no part in creating.
  • Frees up billions of dollars for Americans to spend on music, entertainment, crafts, and the arts, enabling talented individuals — now unemployed or working in jobs they don’t like — to do what they love for a living.
  • Forces politicians to eliminate government waste.
  • Stops the growth in the interest due on the federal debt, now at $237 billion per year. This will help minimize this expense if interest rates ever rise, which is likely.
  • Restores America’s reputation as the envy of the world, demonstrating that the American experiment of free, unfettered trade creates prosperity and alleviates poverty. This sets an example for poor countries, helping them rise from hardship to abundance.

 

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Libertarian Party: Why Don’t Politicians Apologize When the Stock Market Goes Up?

in Liberator Online by James W. Harris Comments are off

Stock Market RisesThe Libertarian Party is asking an unusual and thought-provoking question: Why don’t Democrats and most Republicans apologize to the American people when the stock market goes up?

Think about it. When the stock market drops, politicians invariably exclaim: “Thank goodness we didn’t privatize Social Security! Just look how much people would have lost in the stock market!”

But what about when the market goes… up? Imagine the potential earnings that Americans coerced into Social Security have lost because the government won’t let them control their retirement assets.

“After an almost uninterrupted bull market since March 2009 and six consecutive months of stock market gains, why haven’t politicians who are against any kind of privatization of Social Security apologized to the American people?” asks Libertarian National Committee member William Redpath.

“More than two thirds of workers pay more in payroll taxes than the individual income tax. That is money that is forcibly taken from them by the government that they could invest to build real wealth over the course of their working lives, or money that could be spent to make their lives better today.

“Instead, workers are forced into a system in which their payroll taxes are immediately given to current retirees or spent by the government in other ways.

“People should be free to keep their payroll taxes and use those funds as they see fit. If they choose to save and invest, it doesn’t have to be in the stock market. It could be in more conservative investments. However, the stock market has been the best investment over the long run, and attempts by politicians to demonize it harm the American people.”

In fact, notes Redpath — who is a licensed CPA and a Chartered Financial Analyst (CFA) — during any 20-year period going back to at least 1926, the stock market has never had a negative return. According to Morningstar, $1 invested in a basket of small company stocks at the end of 1925 would have been worth $18,365 at the end of 2012.

Indeed, Social Security is a lousy deal for citizens in many ways, Redpath points out.

“Social Security returns are paltry at best and negative for some people. But the big enchilada that no defender of the status quo will address is this: Americans have no personal property rights in their future Social Security benefits. All Americans are beholden to future Congresses for their benefits. And, benefits can’t be passed onto their children and grandchildren, as private accounts could be,” says Redpath.

Plus, of course, Social Security is headed to insolvency, due to its Ponzi Scheme structure.

“Libertarians call for phasing out the current government-sponsored Social Security system and transitioning to a private voluntary system,” adds Geoffrey J. Neale, current chair of the Libertarian National Committee. “This will remove the looming threat of insolvency while allowing everyone… to be self-sufficient and prosperous in their golden years.”