Costa - Yes! Churchill - No!

Scott Sturman

fliesinyoureyes.com

Sir Winston Churchill

In 2010 Jim Costa won a fourth term as U.S. Representative from California's 20th District but only by a whisker.  He barely survived a challenge by political neophyte and cherry farmer Andy Vidak, who led after election night, but not surprisingly lost when absentee ballots were counted.  For this election cycle Costa, hoping for an easier victory, will be running in the newly formed 16th Congressional District where he will face another political newcomer, Republican Brian Whelan.

When people talk about Congressman Costa, they are most impressed with his mediocrity. “Not the sharpest razor in the drawer,” as my father used to say.  However, Costa has made a life of politics.  He served in the California Assembly and Senate for 24 years, where some say his claim to fame was a clumsy attempt to pick up two undercover cops posing as prostitutes which ended in an embarrassing arrest.  Obviously, the incident did not affect his career adversely.  He represented a safe Democratic district and was a single man out on the town.  What’s wrong with a little fun for a Fresno farm kid, when he’s away from home in Sacramento?  Yet after 24 years in Sacramento, one could make the argument Sacramento was home.

Costa declares himself a “Blue Dog Democrat,” but during the Pelosi era, she could count on his support 93% of the time.  Pelosi is extremely unpopular in California’s Central Valley, but as long as she was throwing this Blue Dog a bone from time to time, he catered to her whims, while hoping the folks back home had short memories.  

A shift in political power occurred in November 2010, and in any other state Costa would have been packing his bags and looking for a new job.  Even in conservative Central California with nearly 20% unemployment, a beleaguered agricultural industry, and gallons of red ink, these colossal problems were not enough to unseat a career politician who is unable to identify the cause of these problems, much less solve them.

The American political process is mind numbing, so to put it in perspective one should recall the experience of Winston Churchill, acknowledged as one of the greatest statesmen and orators in the history of western civilization.  He won the Nobel Prize for Literature and a plethora of awards bestowed by the British Empire.  While Prime Minister he led Great Britain through the perils of World War II, and forever will be known for his courage, tenacity, leadership abilities.  In 1945 shortly after the conclusion of  World War II, he was defeated in his bid to remain as Prime Minister.  Despite his stature and service to his country, the voters felt he was not the right man to lead England during the post war years.

In California a man of considerably less aptitude attempts to return to Congress once again thanks to gerrymandering, voter ignorance, and political inertia.  At a time when fresh ideas and personalties are essential, will the 16th District send a vote of confidence to the 60 year old Pelosi drone and career politician?  One thing is clear, Churchill's political career would have been far more certain in the Golden State where once you’re in, baring death or voluntary retirement, political office is a tenured lifetime position. 

For every Jim Costa there are sagas of similar politicians from both parties who do not belong in Congress.  They wade through their careers building alliances, acting in self interest, and hoping to serve in perpetuity.  When you hear the name Costa, term limits and competitive Congressional redistricting sound awfully good. 

 

Mr. Jim Costa

Rickshaw - A Children's Tale

Ribbon Falls, Grand Canyon - photo by JoAnn Sturman

Scott Sturman
fliesinyoureyes.com

Although the rickshaw is not a uniquely American mode of transportation, it serves as an apt metaphor for the nation’s philosophical transition from its founding until the present. This unique rickshaw (USA) is large enough for a driver (President), navigators (Congress), and citizens who legitimately need assistance; it is propelled by taxpayers who pull the vehicle by long poles connected to the front of the passenger compartment.

For most of the country’s history nearly all Americans lifted and tugged on these poles which provided a rapid but often reckless journey. Sometimes the rickshaw took a corner too fast and toppled, but there were plenty of helpers to right the cart and send it along the way. If someone decided not pull, that was a personal choice, but he was not welcome to jump on the rickshaw for a free ride.

Immigrants clawed and scraped for the opportunity to grab a spot on the pole. They faced years of sacrifice, disappointments, and back breaking toil, but millions succeeded and made a life for them and their families that they only could of dreamed of in their traditional homelands; here they had opportunity. Assimilation rather than cultural diversity and one unifying language allowed a hodgepodge of cultures to form a functional, vibrant society. In contrast to the jingoism and ethnic strife of the Old World, E pluribus unum embodied the ethos that made America the most powerful and wealthy country in the world’s history.

Americans are a generous people and in contrast to many other cultures are willing to help others who are not members of their family. Private charity provides the benefactor a personal relationship with the recipient and insures assistance is used for the intended purpose. In the aftermath of the Great Depression progressive political forces determined the state was better equipped than the individual to assume responsibility for the welfare of their fellow citizens. Charity took on an entirely new meaning where every economic class, age, and special interest group became eligible for government subsidizes.

Early on, relatively few were allowed to release their grip on the pole and ride the rickshaw. The additional weight was minor, so progress was little effected. Yet as the years progressed, restrictions to the passenger compartment eased, and public assistance became a right rather than an act of individual choice and generosity. To keep their friends happy the driver and navigators forced the pullers to give them money, so it in turn could be redistributed to the ever expanding group of riders. The passengers loved the navigators in particular and made sure they were navigators-for-life.

Just like the rickshaws of southern Asia, more and more people with their goats and chickens piled on until the vehicle slowed to a crawl. About half of the country continued to pull, but the other half including some very wealthy people who used tax loop holes and political connections joined the party. It was not necessary to be a citizen to take part in the feeding frenzy, as illegal immigrants were welcomed aboard.

Nearly three years ago Barrack, a new and popular rickshaw driver, decided to spend trillions of dollars foolishly and invited more of his friends to take a seat with him. Axles bent and floorboards buckled as the crushing weight caused the inevitable result. As hard as we pulled, no amount of effort could keep the wheels rolling forward. The rickshaw slowed, stopped, began to roll backwards then collapsed. Barrack became angry, yelled at us to pull harder, and blamed us for not doing our share to keep his friends happy.

Blistered hands, burning lungs, and tired legs are no match for a wheelless load that is too heavy to drag across the ground. At some point most of the driver’s and navigators’ friends who really don’t need help should get off, help repair, and push or pull the rickshaw to get it moving again. There is a lesson my children learned at an early age: the drivers and navigators must burn their credit cards and stop spending more than their weekly allowance.

Taxes - Not Getting Your Money's Worth

Preparing Dinner in Nepal - Photo by JoAnn Sturman

Scott Sturman
fliesinyoureyes.com

It is unreasonable to expect good governance without a tax code that mirrors this ideal. Theoretically tax revenue pools resources to provide benefits tax payers cannot obtain individually. Now into my fifth decade of paying taxes, it is apparent most of these funds are spent unwisely, and politicians have lost sight of fiscal responsibilities and adherence to the provisions of the Constitution.

Taxation is more than redistribution of money. A social engineering component is inherent in any system which rewards or punishes behavior by establishing arbitrary deductions, credits, and incentives or levying penalties and fines. Powerful interest groups are able to influence law makers to enact rules and regulations that benefit the well connected and their constituents. Senior committee chairman solidify their coveted positions by doling out favors and making deals that are not in the best interests of the country. Economic choices are made based on the tax code rather than efficiencies. Compounding the problem is the prodigious amount of time and expense necessary to compute tax bills. These are strong arguments for scrapping the graduated income tax and establishing either a consumption or flat tax.

However small the portion, everyone should pay federal and state income taxes. As fewer people pay taxes, the tax burden becomes “someone else’s problem,” and there is no impetuous to correct underling problems or demand financial prudence.

One of the most unfair and egregious acts perpetrated on my children’s generation is the manner in which the Security System has been administered. They are expected to pay for the retirement of others, including those who never paid into the system, but unless changes occur there is little chance they will receive similar benefits. These are regressive taxes, where everyone pays the same rate irrespective of income. One can argue the relative merits of a government sponsored retirement system, but the original intent of the social security trust fund was to set aside these savings for future retirement. However, during the Johnson Administration, Congress shamelessly made these monies available to the general fund, where they were no longer safe from free spending politicians.

The next generation cannot expect the political establishment to solve these problems without intensive voter involvement. A politician may go to Washington, D.C. or the state capital with the best interests of the electorate in mind. Yet with rare exception, it is too difficult to maintain ones innocence and integrity. The mantra for the next generation should be term limits, social security taxes spent only on retirement benefits, abolition of the graduated federal and state income tax systems, and the initiation of a flat or consumption tax.

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.