Is there truly an economic benefit to lower taxes?

Is there truly an economic benefit to lower taxes?

obama-vs-reagan-economics

I can attest to the veracity of this chart above from Sen. Ted Cruz. President Reagan held office from 1981 through 1989. We started our business in 1987 in the aftermath of the I-30 condo scandal that wiped out several savings-and-loan companies. It was an improved economy that got us over that disastrous scandal.

We enjoyed a booming business under two presidents, “government is the problem” Reagan and “it’s the economy stupid” Clinton.

gdp under 12 presidents

Taxes paid to governments by no means deserve to be labelled “investments”.

Investment defined: the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value

Taxes NEVER appreciate your value. It is the returns on investments that add value.

Gross Domestic Product (GDP) is a measure of economic activity that represents “the total dollar value of all goods and services produced over a specific time period.” [investopedia.com]

Trump haters virulently oppose tax cuts even when tax cuts work to their benefit. Blind hatred as defined in the Urban Dictionary is “to strongly dislike something without knowing the facts, or by using false information“. The Bible warns:

He also told them this parable: “Can the blind lead the blind? Will they not both fall into a pit? – Luke 6:39

Here’s a little wisdom if you can handle it: A rising tide floats all boats. This means that economic growth is good for Republicans, Democrats, Libertarians, anarchists, socialists, Christians, Jews, Muslims, atheists, and communists. (Anyone left out?)

Here’s a little more wisdom: Profitability of businesses forms capital to fund new businesses and to expand existing enterprises. We business owners are the folks who risk our net worth to provide goods and services and employment to add to your net worth.

No nation in all history has ever taxed itself into prosperity.

“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” – Sir Winston Churchill

As it is written in Holy Scripture, “you will know the truth, and the truth will set you free”.

John White
Rockwall, Texas

facebook symboltwitter-bird-blue-on-white

Venezuela struggling through a Cuban-style “Special Period”

Headline: Venezuelans Eating Dogs, Zoo Animals as Economy Collapses

venezuelans eating dogs.png
After the collapse of the Soviet Union, Cubans suffered greatly through what Fidel Castro called “The Special Period“. Collectively, the collapse of the USSR and the subsequent Cuban “Special Period” (my Cuban friends always make quotation marks when they mention this phrase) demonstrate the inevitable end of a socialist economy.

This is the result of 18 years of misery and socialis[m], and we have the responsibility to denounce it, but above all to do what is necessary to change it. To wait another year is to prolong hunger, allow more deaths, it is pain. How much more will we ask the people to withstand?” – Vente Venezuela Coordinator Javier Chirinos

What’s next? I foresee a violent and bloody civil war in Venezuela’s future. A Civil war in Venezuela could (and probably will) ignite rebellions in Columbia and Ecuador. I can even imagine anti-government uprisings in Mexico.

There are communists in all western hemisphere countries who hate Americans as they oppose civil freedoms.

Nicolás Maduro is without a doubt attempting to establish a communist government in his country of Venezuela. His adoration of Fidel Castro and his use of Cuban bureaucrats to run Venezuelan government is all the evidence you need.

John White
Rockwall, Texas

facebook symboltwitter-bird-blue-on-white

Impeaching the Impeachment Talk

senator chris murphy and president donald trump.png
“I don’t see President Trump acting very differently as a President than he did during the campaign. He did win the Electoral College despite this bizarre behavior as a candidate. So, you can’t impeach somebody for doing what they said they were going to do as a candidate. And whether we like it or not, he is fulfilling all of the very reckless promises or trying to fulfill some of the reckless promises he made during the campaign.” – Senator Chris Murphy (D-CT)

Is it possible the reason we, the American majority, expect great things from President Trump is due to the character quality highlighted by Senator Murphy? Yes, President Donald Trump is trying to fulfill the promises he made during the presidential election campaign.

In fact, as you can see for yourself, in at least the last nineteen years his views have been no different than they are at this moment in time. Tim Russert interviewed businessman Donald Trump on October 24, 1999.

Let’s demand that our U.S. senators and Representatives follow his example: Do what you promise to do.

John White
Rockwall, Texas

facebook symboltwitter-bird-blue-on-white

President Trump pardons former Sheriff Joe Arpaio and the liberals go nuts

President Trump pardoned former Sheriff Joe Arpaio. For what crime was he pardoned?

arpaio and trump - pardoned
Photo credit: CNN

United States District Judge Susan R. Bolton sentenced sheriff Joe Arpaio to prison for contempt of court. She ordered him to cease reporting illegal aliens to ICE. Yes, she ordered him to violate federal law – a federal judge orders a state sheriff to violate federal law. That was his so-called crime.

This morning I read via Twitter John McCain condemned President Trump’s pardon of Arpaio. Sen. McCain accused President Trump of not following the Rule of Law.

For the point of law, let’s understand what the president did. He followed Article 2, Section 2 of the U.S. Constitution which states, “The President shall be Commander in Chief of the Army and Navy of the United States, and of the Militia of the several States…shall have Power to grant Reprieves and Pardons for Offences against the United States, except in Cases of Impeachment.”

The Constitution empowers the president to pardon anyone, anytime, for any reason except impeachment. Period. Precedent? How about President Bill Clinton’s pardon of a criminal fugitive Marc Rich.

It is John McCain and a rogue federal judge who do not follow the rule of law.

Now you know the rest of the story.

John White
Rockwall, Texas

facebook symboltwitter-bird-blue-on-white

Inevitable stock market crash, says Mark Faber. Is this possible or even probable?

Inevitable stock market crash, says Mark Faber. Is this possible or even probable? His forecast:

 

mark faber prediction of market crash
click on image above for link to CNBC news story

 

Mr. Faber isn’t a prophet. He’s a student of history. His basic message is simply this: The U.S. is overdue for an economic correction.

I point to biblical economics and to a secular Russian economist’s research to highlight the 7-year and 50-year natural cycles of economic booms and busts.

First, the biblical model for economics.

Deuteronomy chapter 15 addresses cancellation of debts every seven years. Federal law provides Chapter 13 bankruptcy protection to cancel personal debts through a 7-year cycle.

Leviticus 25 provides for the 50th year of Jubilee at the end of seven sevens.

The seventh year of each cycle is called the Shemitah and you can read books and listen to podcasts that tell you all about this phenomenon.

Russian economist Nikolai Kondratieff studied history and the behavior of markets. The Russian leadership wanted him to prove the U.S. could not survive the Great Depression. Kondratieff’s research proved otherwise, so Stalin executed the messenger in 1938., but he couldn’t silence the message.

Economic downturns are painful. And necessary. And predictable.

In Texas, public school systems will be the hardest hit institutions due to dependencies on property tax revenue and extreme public indebtedness. Here in Rockwall, 65% of our property taxes go to the public school system.

The Appraisal Board can appraise all they wish, but fact of the matter is this: if a property owner can’t pay his or her taxes, that government entity will run short of cash quickly.

In this coming economic cycle, many governments will break down due to insolvency, including state governments.

How do you prepare for the inevitable?

  1. First and foremost, have faith in God. Read and study the Bible.
  2. Second, Learn from history as does Mr. Faber.
  3. Third, get out of debt as fast as you can and have ready cash on hand.
  4. Recognize how economic cycles are pretty much like day and night. A sunrise follows every sunset. Instead of losing hope, look forward expectantly to the next economic ‘sunrise’.

The Bible points to specific strategies that can help you.

What’s my plan? I will follow my own advice.

John White
Rockwall, Texas

Barack Obama’s Illegitimate ‘Child’

A Little Bit of ObamaCare History

The Patient Protection and Affordable Care Act – aka ObamaCare – was passed by both houses of Congress by Democrat votes. Not even one Republican lawmaker voted for it. On March 23, 2010, Barack Obama signed the act into law.

Subsequent to its enactment, insurance rates have skyrocketed, leaving consumers to choose paying penalties they can afford over paying insurance premiums they cannotobamacare just needs a tuneup - nonsense afford.

Major insurers have dropped out of the program due to losses. These include Wellmark Blue Cross and Blue Shield, Humana, Aetna, and United Health.

Illegitimate (Unconstitutional) At Birth

The Patient Protection and Affordable Care Act (ACA) was passed by both houses of Congress by Democrat majorities. Not even one Republican voted for it. Not one.

When Obama’s legal team argued the ACA before the Supreme Court, the penalties were justified as taxes and Chief Justice John Roberts, voting with the liberals on the court, infamously and erroneously declared the penalties are not taxes and also the penalties are taxes. His appointment as Chief Justice is probably one of the worst decisions of the 43rd president.

“How is ObamaCare unconstitutional?” you ask. Let’s think critically for a moment.

What is the sole purpose of taxation? To raise revenue for governments. Nothing more. Nothing less.

From what part of the U.S. Constitution to we look for authority to levy taxes? Article I, Section 7: “All Bills for raising Revenue shall originate in the House of Representatives; but the Senate may propose or concur with Amendments as on other Bills.”

The mandated penalty originated in the Senate, not in the House. A majority of the court ruled the penalty is taxation. Therefore, the taxation is unconstitutional.

Leading up to the 2016 elections, Republican lawmakers called for repeal of all or parts of the Affordable Care Act. But, now the game is compromise, effectively exchanging ObamaCare for ObamaCare Lite.

The Bottom Line

Why should Congress fully repeal the ACA? For one simple reason: it was an unconstitutional law from the outset. And, not John Roberts and the other liberal SCOTUS justices don’t get to craft law out of thin air.

The Patient Protection and Affordable Care Act – ObamaCare – was the illegitimate child of the radically leftist Obama administration and his Democrat congressional majority.

John White
Rockwall, Texas

Democrat Sen. Richard Blumenthal takes point on the assault on our president

Why Democrats chose the jackass to represent their party
Where was Mr. Blumenthal throughout the corrupt 8 years of the Obama administration? Why no call for a special prosecutor to investigate Benghazi-gate? Why no curiosity about Hillary Clinton’s shady uranium deal with the Russians?

To all you Democrat readers: We won. You lost.

Millions of Americans are suffering because they can’t afford ObamaCare and Sen. Blumenthal wants to keep that onerous plan in place so government forces us into a single-payer model like Great Britain and Canada.
 
MSM fake news and self-appointed ‘fact checkers’ say President Trump is incorrect that Canadians are coming to the USA for medical treatment. What do Canadians tell us? Read “Estimated 52,000 Canadians sought medical care outside Canada…Number of ‘medical tourists’ up 26% in 2014” CBC News, 2014.
 
 
Democrat leadership today is not the leadership of Harry Truman, FDR, or John F. Kennedy. Democrat leadership of today is atheistic, profane, dishonest, and totally corrupt.
 
Fake news and leading Democrats claim Republicans face a backlash from voters. Here’s news for you Democrat liars: You have already faced one major backlash from your voter base in the 2016 elections and the backlash will be even greater in subsequent elections because your party only represents special interests like Warren Buffet, George Soros (a frequent visitor to the Obama White House), and the homosexual activists (a tiny minority of Americans).
 
We the People are fed up with all corruption in the Nation’s capital and it is, for this reason, we elected President Donald Trump, the “Human Wrecking Ball” to cull out establishment politicians and bureaucrats.
 
May God bless America and may God bless President Donald Trump.
 
John White
Rockwall, Texas