Jealous of Herman Cain

Moulay Idris, Morocco - photo by JoAnn Sturman

Scott Sturman
fliesinyoureyes.com

In 1994 and 1995 one of the area’s well known and respected journalists and I published a newsletter, Common Sense Solutions, which discussed politics, economics, and philosophy. The twelve page periodical was published monthly, typed on colored paper, folded, placed in stamped envelopes, and sent through the mail to subscribers. Although we wrote most of the material, nationally known educators and politicians contributed articles. In the days before a sophisticated Internet, the effort was extremely time consuming.

This part of California's Central Valley is conservative politically, but the local newspaper which is owned and run by the McClatchy Corporation dances to the beat of NPR, CNN, and The Nation. One would think the local Republican Party would be interested in supporting a conservative, well written counterpoint to the Fresno Bee. With this in mind we approached party officials, not for financial support, but for help with the distribution of the newsletter which required so much extra time. To our dismay and surprise we were turned down; it was apparent that those who controlled the party wanted your money but not your voice it they cannot control it.

As long as I can remember leaders of the Republican Party have complained that there are too many career politicians, the tax code is too complicated and in need of a major overhaul, the government spends too much money, and society should reward the ants of the world, not the grasshoppers. Well, guess what? Herman Cain, a Georgia businessman who has never held a political office, decides to run for President. One would think Mr. Cain is the answer to prayers of the Republican Party: a man of faith raised by hardworking but poor parents, educated in mathematics and computer science, a successful businessman, and a former member of the Federal Reserve. Yet the most refreshing aspect of his candidacy, is rather than relying on platitudes and making promises that are easily broken, he has proposed a definitive solution to replace the hated national tax code. His answer, the 9-9-9 program, is simple and straight forward - perhaps overly so for the naysayers who either live by ambiguity or wish they had the courage to advocate such a clear minded approach.

Democrats and Republicans alike are lining up to to take pot shots at Mr. Cain, because his innovations will transfer power back to the people by depriving the major parties of the ability to adjust the tax code to reward friends, punish enemies, and influence economic behavior of the voters. However, Mr. Cain’s transparent and concise approach sits well with conservatives who are tired of the back room deals and loopholes.

In reality there is not that much difference between old school Republicans and Democrats. They may vary on the social issues, but both love to spend money, thrive in a system which if not opaque is close to it, and despise newcomers who achieve notoriety without their blessing. The old guard Republicans know what the voters want to hear but are uncomfortable with a man like Herman Cain whose actions are not confined to words.

Kudos to Mr. Cain for his boldness, willingness to tackle an immense problem, and do battle with the special interests who will do their best to obfuscate and confuse. If he is not elected President, then hopefully the Republican victor will have the good sense to keep him close by to help repair the economy. By the way, if in 2013 Herman Cain sits in the Oval Office, what are the chances he will win the Nobel Peace Prize later that year?

RX for Success

Stork in Morocco - photo by JoAnn Sturman

Scott Sturman
fliesinyoureyes.com

"Power corrupts and absolute power corrupts absolutely." - Lord Acton

The contentious debate on health care reform illustrates the disreputable side of Congress. Despite most Americans' antipathy toward the legislation in its present form, Congressional leaders are willing to buy votes with tax revenue to pass a law that will not solve the problem. To the imperious politician special deals, hidden agendas, bribery, and extortion conveniently are clumped under the disingenuous euphemism of statesmanship. Senators and Congressmen for life, omnipotent committee chairmen, and the convoluted federal income tax system are the fies in the ointment which threaten the Republic.

It is inconceivable current members of Congress will address these three issues. They are simply too comfortable with special retirement and health plans not available to the general public and the high profile, ego friendly environment of Washington. Transforming the political climate will erode their power base, and much of the control they wield will be transferred to the states and individuals. Change must be initiated from outside the cloistered halls of Congress – by the voters who unwittingly placed them there in the first place.

RX #1: Term limits, twelve years for Senators and ten years for Representatives, are the only manner to curtail the pernicious antics of the professional political class. It is exceedingly difficult, however, to cure an opium addict once he has access to an unlimited supply of the drug. Such is the case with the United States Congress where individual members are loathe to part ways with corrupting power. In the short term we voters must defeat the incumbents during the primary elections by supporting a competing candidate from their own party who advocates official term limits. Until the voters are willing to do so, enthroned politicians call our bluff and conduct business as usual.

RX #2: Congressional committees are the fiefdom of their chairmen. Their uncontested power marginalizes reasonable committee members and encourages partisans who shape debate to gain short term goals. They are particularly susceptible to the manipulations of paid political consultants who financially support their reelection efforts in return for special favors dispensed by the chairman's committee. Rather than continuing the tradition of selecting the most senior member of the majority party, a novel technique is required. It would reduce corruption (pork), foster meaningful input from both parties, and eliminate the automatic selection based on seniority. The committee chairman would represent the majority party and the term would be limited to two years, but the chairman would be determined by a vote of the minority party. This unique concept would undermine the power base of the ideologues and enhance the status of leaders who are able to craft legislation with bipartisan support.

RX #3: Since its inception, the federal income tax rate has varied significantly from less than 1% in 1913 to 90% during WWII. A summary can be found at: http://www.taxfoundation.org/publications/show/151.html. Accompanying these rate swings are a vast array of exemptions which effectively reduce the theoretical maximum tax rate. Congress always has had the ability to legislate social behavior by manipulating rates and write offs. The current tax system is overly complicated and serves as a vehicle by which the government controls individual behavior with the use of credits, penalties, deductions, and exemptions. Expensive to compute and collect, capricious, and confiscatory, the federal income tax is as much a tool for controlling behavior as it is for collecting revenue. Flat taxes and consumption taxes depoliticize and simplify the tax code. They encourage saving and reward initiative. An excellent summary of the flat tax can be found in The Flat Tax by Robert Hall and Alvin Rabushka.

In regard to taxation one other issue must be addressed. By 1994 the Tax Foundation cited that 40% of all Americans were outside the federal income system. The situation has deteriorated in the last fifteen years. In depth details can be found at: http://www.taxfoundation.org/research/show/542.html. Avoidance of payment of federal incomes taxes is possible by making too little income, not filing because of low income status, or representing other family members who pay no taxes. These sobering statistics demonstrate the escalating tax burden borne by fewer and fewer Americans. This disconnect between those receiving services and paying nothing for them and those paying taxes is worrisome. Even a nominal tax obligation of 1-2% of net income requires all citizens to contribute to the welfare of the society. It establishes a mind set that there is a price associated with receiving benefits, and the burden of taxation is just not someone else's problem.