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Who Really Has the Edge on the Impending Mail-In Ballot Fiasco?

The Democrat’s have had court victories in Michigan, Pennsylvania, and other states in connection with requiring that votes received after election day must nevertheless be counted. And in many of these decisions, the Courts have simply overruled the actual wording of the relevant law. Since it is accepted that many more Democrats than Republicans will be voting by mail, there seems to be a general belief that this is good for Democrats. But should that really be the takeaway?

It is quite clear that no matter what concessions the Democrats win in court, a huge number of mail-in votes will be invalidated. Whether because of mail delays (past even the extended deadlines), signature issues, proper following of instructions, etc. many ballots will be invalidated. I believe that these rejected ballots will far exceed any additional votes gleaned by enabling people to not have to physically go to the polls. People voting by mail are likely to be those who would, absent Covid, have gone to the polls. Extra votes would probably only come from “harvesting”, which will hopefully be quashed.

Also, I believe it likely that Appeals courts will reverse at least the most egregious overreaches by the state courts. It is hard to see how blatant rewriting of legislation could be considered acceptable, even by Democratic leaning courts. But unlike some, I do not believe that the Supreme Court will weigh in. I believe that SCOTUS will say that the States have ultimate authority to determine their own voting procedures.

Biden Wants to Nearly Double the Capital Gains Tax

Democrat Presidential Candidate Joe Biden not only wants to return capital gains to Obama-era rates, but furthermore he would increase them while simultaneously returning the top rate on ordinary income. Biden has said, “I believe we should, in fact, the capital gains tax should be at what the highest minimum tax should be; we should raise the tax back to 39.6 percent instead of 20 percent.” 

Add to that the 3.8% Obamacare tax (NIIT) instituted in 2013, and he would have some taxpayers effectively paying a 43.4% long-term capital gains tax! The current total top rate is 23.8%

Biden should know better. The actual impact of raising the capital gains rate by the Obama administration was devastating to the economy. By discouraging the sale of assets, there was reduced capital available for new projects and opportunities, reducing job creation and wages, and resulting in lower revenue collection. Furthermore, the expected after tax rate of return on new projects went down, assuring that fewer of them went forward.

Additionally, there were a number of localities, like the state of California and New York City, which have tax rates of 12% or more and also a large concentration of wealthy people and high performing businesses. Obama’s capital gains rates of more than 37%  brought elective capital projects to a crawl. And Biden wants to raise them even higher?

Shame on Biden. Why sell an asset to fund further investment and opportunity when the government takes a large share of the gain with the loss remaining all yours? It makes virtually no economic sense to do so. A higher capital gains rate put a stranglehold on risk-taking and available capital, and would negatively impact the economy. 

The Club For Growth Needs Tweaking

For years I have been following the candidates that have been supported by the Club for Growth, contributing to both their campaigns and to the Club. Although overall they do a decent job finding and supporting candidates , there are two areas in which they are weak.

The Club For Growth has always been an advocate of the free market, limited government, and low taxes — the same thing that the Tea Party originally intended to be. However, within this realm, there are four things that the Club For Growth does not focus on, but they need to. These are: immigration, tariffs, the Jones Act, and ethanol. So you can have a good libertarian, free market candidate, but if that person turns out to also have unfavorable stances in one or more of those areas, they weaken their position. The Club For Growth needs to expand their vetting to include these four areas in their overall approach. 

Additionally, the Club For Growth needs to continue to monitor those who have taken office. While it is understandable that with somewhat limited resources, they want to use most of those resources to find new candidates,  it does no one any good if the people they have recommended end up going off the rails. There has to be some sort of follow up. For instance, Marco Rubio, Tom Cotton, and Josh Hawley are all examples of people elected in no small part by the Club, but for which we now have serious buyers remorse. These three have taken inexcusable positions on tariffs, free markets, big government, etc. It is disappointing and unacceptable to see Club For Growth focus only on getting new people elected while neglecting to hold these and other candidates accountable for their changed positions. It would be wise for the Club For Growth to practice better vetting and consistent follow up if they want to maintain being a trusted voice in the political landscape.

Voting Rights and Responsibilities

What happens when the government uses its power to give money from one group of people to another group of people? It’s happening. It’s not supposed to happen. See, in our Constitution, the government has the right do things — limited things — in order to safeguard the rights of the people. Our Constitution relates to individual rights; it’s not a document on democracy. Unfortunately, these lines are becoming more blurred all the time.

Maybe democracy as a system of government by itself cannot work; in other words, if a democracy allows two foxes and a chicken to vote on what to have for dinner, it reveals a fatal flaw — because it allows an unfortunate outcome. Of course the two foxes are going to vote on having the chicken for dinner!

At the same time, democracy is the only best form of government if the majority protects the rights of the minority, whether it’s racial, economic, or whatever — those rights must be protected. But this applies to all. In the same way, a democracy voting to allow the lower 51% to usurp the property of the upper 49% is just as intolerable as usurping rights based on gender, religion, or race.

You can elect a Chavez or a Castro in a duly elected election, but you can’t allow him to just use the fact that he got a majority of the people’s as an excuse to abuse a minority of the people. People just can’t vote to take all the money for themselves.

You could have a referendum on whether the richest people (making over $200,000/year) should give their money to those making under $200,000. You could vote that… but not really because people also have the right to their own property. What then? How do you resolve this kind of conflict?

There is no mandatory, compulsory requirement to vote. If our Founding Fathers want to put voting in the Constitution they could have, but they didn’t. On the other hand, our Constitution specifically does not allow our government to take money from somebody and give it to someone else. Our Constitution merely gives the Federal government enumerated powers, and it in no way allows us to take money from some people and give it to someone else that the government has deemed more worthy.

When Barack Obama stated for the first time that he would take money from one group and give it to another — when he announced he was going after millionaires and billionaires to pay their fair share — it was the first time he verbally stated something unconstitutional.

In contrast, the states are allowed to make laws to do that — they don’t have Constitutions with enumerated powers as in the case of the federal Constitution.. States can legally, actually vote that more wealthy people must give money to less wealthy people. If and when that happens, people have the right to move within the United States to a different state with different laws — but yet still remain a US citizen. You can see the effect of this mentality even now, as high tax states have seen a population exodus to states that are less punitive.

So, what do when it is happening at the federal level? Vote for a new president? Perhaps that will change it. But how do we curb the effects of people receiving more and more wealth transfers and benefits? The unintended consequence of such policy is that the recipients will learn to always vote for the person that will create or continue policy that will benefit the voter in a tangible, direct, and economic way. As a result, the elections become less fair and based on being an informed citizen, and more on “How can I benefit? What’s in it for me?”

In this way, it logically follows that the argument could be made that you shouldn’t be able to vote if you have a conflict of interest. The suggestion of curtailing voting rights from those who are recipients of such egregious and unconstitutional policy is indeed drastic. But perhaps it should be a consideration for those who are too short-sided to see the long-term problems for this country — because the idea that our federal government can economically abuse a segment of the population for monetary gain is also radical.

The Libertarian Party Ticket

The Libertarian Party just nominated Gary Johnson for President and William Weld for Vice President on the Libertarian Party ticket at their convention.

This is very interesting. With these two men who have extensive governing experience, we have clearly the best candidates running for office but they won’t win because they just won’t get enough traction. It will be interesting to see if they pull more from the Democrats or the Republicans.

Polls show them between 8-12% right now. If they get to 15%, they are allowed to participate in the debates. For the sake of healthy policy discussion during the election season, I hope they meet that threshold.