Confiscating Income

3 February 2004

”Tom” wrote to Tobias and was pretty forceful in what he requested in terms of a response to some very specific questions about the Democrat’s view on taxation. You can read about it here and follow the link.

Now we’ve got some view into how Wesley Clark sees the tax picture, but – better yet – we’ve got a Craig Cantoni rebuttal.

Let’s Confiscate Wes Clark’s Pension

by Craig J. Cantoni

Presidential candidate and retired general Wesley Clark is running the standard Democratic class-warfare TV ads. In one ad, he says that he will make sure that millionaires pay their fair share of taxes.

As a millionaire and a former Army officer who served in the active Army and eight years in the Army Reserves, I have this to say to Wesley: Go to hell, you thief, sir!

Clark has been on the government payroll so long that he has no idea of what it is like to work in the private sector all of one’s life and save money for retirement in the face of confiscatory taxes. With his collectivist philosophy, he should have served in the Soviet army.

Clark has a government pension and government retiree health care, two benefits that he received on a tax-free basis over his military career. Being self-employed, I do not have a pension or a retiree health plan provided by the Army or by an employer. Moreover, the tax code has discriminated against me and millions of other self-employed taxpayers by not giving us the same favorable tax treatment for retirement savings and health insurance that Clark has received. Unlike Clark, we paid income taxes on the money that went into our retirement savings. In a real sense, we have subsidized Clark’s tax-free retirement benefits. Now he wants to thank us by raising the taxes on the investment income that our savings earn

My millionaire status comes from my retirement nest egg, which is the result of 30 years of working hard, living below my means, and saving what I could from what was left over after paying taxes that consumed half of my income. I’m so frugal that I don’t even have a cell phone. How does Clark want to reward me for a lifetime of saving in the face of high taxes? He wants to leave my wife and me with less money for retirement, less money to pay our medical expenses and less money to send our kid to college. At the same time, his pension is guaranteed by the government.

The pension alone makes Clark a millionaire. His financial statements show a military pension of $85,000 per year. If he draws the pension for 20 years, he will receive a total of $1.7 million, guaranteed, with no fear that the government will wreck the economy and destroy his nest egg. His pension is in addition to his other income, which was $1.5 million in 2002 from speaking engagements and his CNN commentary.

To borrow the Democrats’ favorite whine, it’s just not fair that millionaire Clark has a pension that the average working bloke can only dream about. In the interest of fairness, we should send government agents to his home, point an M-16 at his head and confiscate his pension. According to him and his fellow Democrats, it’s the American thing to do.

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Mr. Cantoni is an author, columnist and founder of Honest Americans Against Legal Theft (HAALT). He can be reached at ccan2@aol.com

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European Meddling

23 January 2004

Review and Excerpts from
A Peace to End All Peace by David Fromkin
book review by Craig J. Cantoni

An outstanding book on the Middle East is A Peace to End All Peace, by David Fromkin. A nonpartisan work of pure scholarship written before the current Iraq war, it gives the history of European meddling in the Middle East during World War I and the few years following the war after the collapse of the Ottoman Empire. It should be read by all Americans, as it puts the Iraq war and the Palestinian issue in historical context.

Both sides of the political spectrum will find something to dislike in the book, thus attesting to its evenhandedness. Left-liberals will be offended because it is not politically correct and does not gloss over the religious fanaticism and tribal hatreds of Moslems in the region. Neocons will be offended because it reveals the past folly of nation-building in the region by the West, especially by imperialist France and Britain. And Zionists will be offended because it details the sordid beginnings of the Jewish state, including the influence of Jewish Bolsheviks and socialists.

The book leaves the reader with three disturbing conclusions: one, that Moslem enmity toward the West is understandable given the history of European imperialism in the Middle East, especially by the British; two, that the parallels between today and the early twentieth century are striking; and three, that it may have been a huge foreign policy blunder for the United States to follow in the clumsy footsteps of Britain and France in the region after the Second World War, thus redirecting Moslem enmity from Europe toward America.

Excerpts are below. Headings in bold are mine.

The Difficulties Encountered in 1918 by British Civil Commissioner Arnold Wilson in Creating a Country out of Mesopotamia (Modern-day Iraq):

While he was prepared to administer the provinces of Basra and Baghdad, and also the province of Mousul (which, with Clemenceau’s consent, Lloyd George had detached from the French sphere and intended to withhold from Turkey), he did not believe that they formed a coherent entity. Iraq (an Arab term that the British used increasingly to denote the Mesopotamian lands) seemed to him too splintered for that to be possible. Mousul’s strategic importance made it seem a necessary addition to Iraq, and the strong probability that it contained valuable oilfields made it a desirable one, but it was part of what was supposed to have been Kurdistan; and Arnold Wilson argued that the warlike Kurds who had been brought under his administration ”numbering half a million will never accept an Arab ruler.”

A fundamental problem, as Wilson saw it, was that the almost two million Shi’ite Moslems in Mesopotamia would not accept domination by the minority Sunni Moslem community, yet ”no form of Government has yet been envisaged, which does not involve Sunni domination.”

Gertrude Bell, working on her own plans for a unified Iraq, was cautioned by an American missionary that she was ignoring rooted historical realities in doing so. ”You are flying in the face of four millenniums of history if you try to draw a line around Iraq and call it a political entity.”

The Times (of London) on Iraq:

In a leading article on 7 August 1920, The Times demanded to know ”how much longer are valuable lives to be sacrificed in the vain endeavour to impose upon the Arab population an elaborate and expensive administration which, they never asked for and do not want?” In a similar article on 10 August, The Times said that ”We are spending sums in Mesopotamia and in Persia which may reach a hundred million pounds this year” in support of what it termed ”the foolish policy of the Government in the Middle East.”

Britain’s Quelling of Tribal Revolt in Iraq

The main population centers quickly were secured, but regaining control of the countryside took time. It was not until October that many of the cut-off Euphrates towns were relieved and not until February of 1921 that order was restored more or less completely. Before putting down the revolt Britain suffered nearly 2,000 casualties, including 450 dead.

When the uprisings in the Middle East after the war occurred, it was natural for British officials to explain that they formed part of a sinister design woven by the long-time conspirators.

In fact, there was an outside force linked to every one of the outbreaks of violence in the Middle East, but it was the one force whose presence remained invisible to British officialdom. It was Britain herself. In a region of the globe whose inhabitants were known especially to dislike foreigners, and in a predominately Moslem world which could abide being ruled by almost anybody except non-Moslems, a foreign Christian country ought to have expected to encounter hostility when it attempted to impose its own rule. The shadows that accompanied the British rulers wherever they went in the Middle East were in fact their own.

The House of Saud

Yet the First World War was barely over before the Cabinet in London was forced to recognize that its policy in Arabia was in disarray. Its allies—Hussein, King of the Jejaz, and Ibn Saud, Lord of Nejd—were daggers drawn.

Ibn Saud was the hereditary champion of the teachings of Muhammad ibn Abdul Wahhab, an eighteenth-century religious leader whose alliance with the House of Saud in 1745 had been strengthened by frequent intermarriage between the two families. The Wahhabis (as their opponents called them) were severely puritanical reformers who were seen by their adversaries as fanatics.

It was the spread of this uncompromising puritanical faith into neighboring Hejaz that, in Hussein’s view, threatened to undermine his authority. Hussein was an orthodox Sunni; to him the Wahhabis were doctrinal and political enemies.

A Statement by the Military Governor of Jerusalem, Ronald Storrs, about Non-Jews Inevitably Taking a Lower Place in Jerusalem as Jews Took Over:

”It will take months, possibly years, of patient work to show the Jews that we are not run by the Arabs, and the Arabs that we are not bought by the Jews….it is one thing to see clearly enough the probable future of this country, and another thing to fail to make allowances for the position of the weaker and probably disappearing element. The results of the changes will be more satisfactory and more lasting if they are brought about gradually with patience, and without violent expressions of ill-will, leaving behind them an abiding rancor.”

Winston Churchill on Arab Fears of Jewish Immigrants after Becoming Colonial Secretary in 1921:

Churchill further attempted to allay Arab suspicions by demonstrating that their economic fears were groundless. Jewish immigrants, he argued repeatedly, would not seize Arab jobs or Arab land. On the contrary, he said, Jewish immigrants would create new jobs and new wealth that would benefit the whole community.

Churchill’s Frustrations in Negotiating with Arabs:

Dealing with Middle Easterners such as these was far more frustrating than had been imagined in wartime London when the prospect of administering the postwar Middle East was first raised. In Churchill’s eyes, the members of the Arab delegation were not doing what politicians are supposed to do: they were not aiming to reach an agreement—any agreement. Apparently unwilling to offer even 1 percent in order to get 99 percent, they offered no incentive to the other side to make concessions.

A Churchill Statement in 1922 about a Jewish Plan to Build Hydroelectric Generating Dams in the Auja and Jordan River Valleys:

”I am told that the Arabs would have done it for themselves. Who is going to believe that? Left to themselves, the Arabs of Palestine would not in a thousand years have taken effective steps toward the irrigation and electrification of Palestine. They would have been quite content to dwell—a handful of philosophic people—in the wasted sun-scorched plains, letting the waters of the Jordan continue to flow unbridled and unharnessed into the Dead Sea.”

Winston Churchill’s June 13, 1920 Letter to Lloyd George about Palestine:

”Palestine is costing us 6 millions a year to hold. The Zionist movement will cause continued friction with the Arabs. The French … are opposed to the Zionist movement & will try to cushion the Arabs off on us as the real enemy. The Palestine venture … will never yield any profit of a material kind.”

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Mr. Cantoni is an author and columnist. He can be reached at ccan2@aol.com.

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The Media Run In Packs

19 January 2004

Plunder, Politicians and Lapdogs

by Craig J. Cantoni

Iowans are voting today in the Democratic primary for the candidate who they think is best qualified to lead the nation. Ha, ha, ha.

In reality, they are voting for the candidate who is best qualified to plunder the nation and give them free stuff in the form of farm subsidies, tariffs on imported agricultural products and more of other people’s money for education, Social Security and Medicare. They don’t care if the rest of the nation has to pay higher prices for food and if their entitlement bills are sent to future generations.

Sadly, Iowa does not have the market cornered in greed and self-interest.

Listen carefully to politicians from both parties in your state and you will see that the theme is the same. Other than such serious issues as national security, war and immigration, the theme is always about plunder. It is about the distribution of loot and not about liberty and personal responsibility.

At the sight of plunder, the lapdogs in the pack media salivate, bark their approval and wag their furry tails. Don’t believe me? Then try to remember one reporter who has asked a politician what he will do to advance liberty and personal responsibility, or why he thinks it is okay to take money from disfavored groups and give it to favored groups. Politicians know that they would be met with growls of disapproval from the pack media and be characterized as mean-spirited extremists if they advocated the founding values of the nation.

The standard exchange is like this:

Pack media: ”What will you do about the uninsured?”

Politician: ”I think it’s a tragedy that in the wealthiest nation 40 million Americans can’t afford health insurance. I will see that every person has health insurance.”

Pack media: ”Yap, yap. Lap, lap. Wag, wag.”

Now imagine this exchange:

Pack media: ”What will you do about the uninsured?”

Politician: ”I’d fix the problems caused by the government killing a free market in health insurance and health care 60 years ago. I’d make sure that there is a consumer-is-king market in health insurance and health care, like there is in food, shelter, clothing and transportation.”

Pack media: ”Grrrrrr.”

You will never hear the pack media ask a question such as the following:

”You advocate more spending on Social Security and Medicare. But a clerk with a young family who earns $84 a day at the local convenience store has about $12 of her earnings taken to pay the Social Security and Medicare of the wealthiest group of Americans, the elderly. Does this strike you as wrong?”

Or this:

”You advocate the nationalization of health care. To be intellectually consistent, why aren’t you advocating the nationalization of food, shelter and clothing? If nationalization is such a good idea, why shouldn’t all Americans buy their food at government commissaries, live in government housing and wear government uniforms?”

For sure, a member of the pack media will never write a story line like the following:

”Mary Jones, a twenty-something, is one of the 40 million Americans without health insurance. She spends $750 a year on double lattes and muffins at Starbucks, $1,125 on buying lunch at a deli instead of bringing a sandwich to work, $2,000 on $4.50 drinks after work, $1,820 on cigarettes, $5,700 on loan payments and expenses for her new car, $1,250 on concert tickets, $960 on cell phone charges, and $400 on CD’s. That comes to a whopping $14,005. If she spent $4,000 of that on a high-deductible, catastrophic health insurance policy, she could invest the remaining $10,005 in the stock market. If she did that every year for 40 years, she would have a nest egg of $2.8 million when she retires, assuming that the government wouldn’t confiscate most of it in taxes.”

Why won’t the pack media write such story lines? Why won’t it stop being lapdogs for the government and start being watchdogs for liberty and personal responsibility? Three reasons:

One, the pack media would have to know something about economics and about the moral, philosophical and historical foundations of capitalism and our constitutional republic. Such important subjects are not taught in government K-12 schools or in journalism school.

Two, such story lines would go against the pack media’s belief in redistribution and collectivism, which are fancy words for plunder.

And three, lapdogs live to please their master.

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Mr. Cantoni is not a lapdog. He is an author, columnist and founder of Honest Americans Against Legal Theft (HAALT). You can reach him at ccan2@aol.com.

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Still Timely

2 January 2004

What Craig Cantoni had to say leading up to the dawn of a new year is worth repeating monthly throughout the year:

My ticking New Year’s wish
by Craig J. Cantoni

(Not for publication or distribution before 12-31-03)

As the clock ticks towards midnight, I have an unusual New Year’s wish: that every high school student read ”The Long-Term Budget Outlook,” published by the Congressional Budget Office earlier this month.

Although the purpose of the 78-page report is not to teach history, it could be used to teach students how FDR and LBJ built financial time bombs in the form of Social Security, Medicare and Medicaid that are set to explode in their generation. It could also teach how their parents and grandparents added dynamite to the bombs instead of disarming them. Tick, tick, tick.

The report makes this sobering conclusion: ”Unless taxation reaches levels that are unprecedented in the United States, current spending policies will probably be financially unsustainable over the next 50 years.” Tick, tick, tick.

Instead of the ubiquitous warning labels on products, the following warning label should be put on the one-dollar bill: ”Warning: It is harmful to the financial future of children to keep printing and spending these at a record pace.”

Based on current trends, federal spending will increase in the next 50 years from the historical average of 20 percent of Gross Domestic Product to somewhere between 32.8 and 52.9 percent. And that does not include state and local spending, which also has been rising faster than inflation. Tick, tick, tick.

Although I doubt it, students may have learned that the Constitution limits the federal government to certain powers and thus to providing certain essential services, such as national defense and a banking system. They might be surprised to discover in the CBO report that the share of federal spending on such services has declined from 68 percent in 1962 to 38 percent today, being replaced by spending on entitlements, which are not mentioned in the Constitution. Tick, tick, tick.

Perhaps if students read the CBO report, they will realize that presidential candidates who promise more goodies at their expense are evil people, not compassionate people. And maybe the students will question why their local government spends money on sports palaces, training facilities for out-of-state baseball teams, Taj Mahal school buildings, light-rail boondoggles, art subsidies, developer subsidies, and other nonessential expenditures.

Of course, like most New Year’s wishes, mine will not come true. Government schools are unlikely to encourage students to read the truth about government spending.

Tick, tick, tick.

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Mr. Cantoni is an author, public speaker and consultant. He can be reached at ccan2@aol.com

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Do Facts Scare You?

31 December 2003

The True Cost of Public Education
by Craig J. Cantoni

Do you know what your family pays for public education? You probably don’t, because it is a number that the establishment media do not tell you and that the government and the National Education Association do not want you to know. If you knew, you might not put up with their incessant begging for more money.

If you own a home, your property tax bill shows how much of your property taxes goes to public schools, but that is only about half of what you pay.

The other half is hidden in your state and federal income taxes and other taxes, and in the cost of goods and services that you purchase from businesses, which also pay public school taxes through their income and property taxes. For example, when you have a sweater dry cleaned at the neighborhood cleaners, a portion of the bill goes to public schools, although your sweater doesn’t attend school.

While it is virtually impossible to know the exact amount that your family pays for public education, an approximation of the number can be determined by calculating the per-household cost of education in your state. To do so, divide the total state, local and federal money spent on public K-12 education in your state by the number of households in the state.

The cost will vary widely from state to state, due to wide variations in state education spending, which in turn are mostly due to wide variations in a state’s cost of living and per-capita income. And of course, what you actually pay in a given state will depend on your family’s tax bracket and home valuation.

To use my state as an example, the per-household cost of public education in Arizona is $3,137 per annum. If you have children in public school, that might seem like a bargain, until you realize that you and your spouse pay the cost over your entire adult lives and not just the 12 years that your children attend public school. Assuming an adult life of 60 years, the total lifetime cost, on average, is $188,220 per household. In high-tax states like New York, the cost is over $250,000.

In preparation for this article, I sent e-mails to 34 Arizona acquaintances, asking them if they knew the annual per-household cost for the state. All of them are highly intelligent, successful and politically active. Their answers ranged from a low of $600 to a high of $12,000. Many said they had no idea.

No doubt, the 34 acquaintances know what their house, car, utilities and groceries cost. But thanks to the government and media, they do not know what they pay for the big-ticket item of public education. Of course, it is impossible to make an informed buying decision about a service without knowing the cost, which is how the education establishment likes it.

By contrast, my wife and I know exactly what it costs to educate our son. We pay $4,000 a year in tuition and bus fees to send him to a local parochial elementary school, or $32,000 over eight years. We will spend an additional $28,000 to send him to a local Catholic college-prep high school for four years. The total of $60,000 is about one-third of the household cost of public education.

Public education is a raw deal for my family, because we get nothing in return for our household cost of $188,220, other than overblown rhetoric about the common good from well-off public school parents who take our money for their own good. But it is also a raw deal for most parents who send their kids to public school.

There are two children per family in Arizona (actually 1.97 children). Two children can receive an academically superior Catholic education for $120,000, or $68,220 less than the household cost of public education. The parents could contribute half of the $68,220 to the education of the poor and still come out $34,110 ahead.

Sure, someone can quibble over the numbers, but as I said at the beginning, an approximation is all we have in the absence of a government report that tells you what you actually pay. At least the Social Security Administration gives you a personal statement of what you have paid in Social Security taxes over your working life.

But don’t expect a report or statement anytime soon on what you pay in public school taxes. The government, the National Education Association and the establishment media know that there would be a public outcry if the true cost of public education were known.

Imagine frequent headlines such as the following in the Arizona Republic: ”School cost a record $188,220 per household.” Rich and poor parents alike would start demanding either a cut in education spending or a voucher for $188,220 that could be used at the school of their choice. Either way, the government and NEA hegemony over K-12 education would end.

We wouldn’t want that to happen—wink, wink—so let’s join the establishment media in keeping the number a secret.

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Mr. Cantoni is an author, columnist and founder of Honest Americans Against Legal Theft (HAALT). He can be reached at ccan2@aol.com

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