Monday, April 27, 2009

Tea for two party system



The nationwide Tea parties we saw on April 15 are significant when you consider what they are meant to represent. First we have to review the original Boston Tea Party to understand the comparison.
The American colonists were then, as now, viewed as a great source of Tax money. King George III of England had run up a huge deficit by fighting the French and Indian wars. To pay for this they passed the Stamp Act in 1765, and the Townsend Acts in 1767.

The colonies refused to pay the taxes claiming they had no obligation to fund a foreign British Government in which they had no representation. In response, the British Parliament retracted the taxes with the exception of a duty on imported tea - a demonstration of Parliament's ability and right to tax the colonies. They reduced the duty the colonies would have to pay for the imported tea. The Americans would now get their tea at a cheaper price than ever before.
However, if the colonies paid the duty tax on the imported tea they would be acknowledging Parliament's right to tax them. The colonists were not fooled by Parliament's ploy. When the East India Company sent shipments of tea to Philadelphia and New York the ships were not allowed to land.
In Boston, the arrival of three tea ships ignited a furious reaction. The crisis came to a head on December 16, 1773 when as many as 7,000 agitated locals milled about the wharf where the ships were docked. A citizens meeting at the Old South Meeting House that morning resolved that the tea ships should leave the harbor without payment of any duty. The British Collector of Customs refused to allow the ships to leave without payment of the duty, producing a stalemate.
That evening a group of about 200 men, assembled on a near-by hill. Whopping tax-war chants, the crowd marched two-by-two to the wharf, descended upon the three ships and dumped their offending cargos of tea into the harbor waters.
Most colonists applauded the action while the reaction in London was swift and vehement. In March 1774 Parliament passed the Intolerable Acts which among other measures closed the Port of Boston. The fuse that led directly to the explosion of American independence was lit.
Let’s forward our story to 2009. American Conservatives are the force behind the Tax Day Tea parties. The overall feeling is we have just taken on 4,000 Billion dollars of new debt, without any representation. The Obama administration is going to have to pay for all these wild spending programs somehow. Taxes must be raised, collected and wherever present, dissent must be stifled.
Do you really believe we can add trillions in new spending - triple our debt - and still give a tax cut to 95% of Americans as they claim?
The taxation that is coming is going to cripple the average middle class taxpayer. We have not felt the slightest breeze of this storm yet, but it is out there. The first pass will be a reduction in your ability to deduct almost everything. Home mortgage deductions, charitable contributions to your Church, medical deductions, etc. will have to be eliminated. Tax rates will have to rise, and not by a little, but by a lot.
The only way to escape these taxes is to quit working or go underground by insisting on unreported cash or barter for payment. Google “The Laffer Curve” as it is the key to understanding the reality of what’s about to happen. When tax rates rise, people stop working or go underground. Economist Arthur Laffer described the phenomenon that a 100% tax and a 0% tax collect the same amount of money, i.e. nothing. When the government discovers they are collecting far less due to higher rates, the whole debt spiral we have entered could cause a collapse of our currency and even further tank our economy.
The Tea parties are a warning shot to all of us to remind us we have strength in numbers. You have to understand, Conservatives hate protesting anything in such a public way. We detest the rent-a-mob tactics of the left and want to have nothing to do with them feeling they are phony and useless. That being said, to get 350,000 conservatives to actually organize and show up at these events is amazing. They are the 1% of the iceberg that is showing.
The tax storm is just on the horizon and many Americans are going to switch their votes to support the small government, low tax policy of whatever political party chooses to seriously adopt such a platform.

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