HOW AND WHY WE CAN DO WITHOUT FEDERAL INCOME TAXES
What type of tax reform do you want? Simplification of the existing progressive income tax system? A flat tax? A sales tax? A value-added tax? Tax professionals, economists, elected officials and others heatedly debate the pros and cons of each. However, it is unlikely that real tax reform will occur until the financial crisis gets so bad that most people will agree to radical change. Most tax reform discussions and debates lead with the premise that any new tax system has to raise roughly as much revenue as the present system. But...why should that be? Evidence indicates that total government spending is at least twice as high as it should be to maximize job creation, economic growth and the general welfare. Given that, here's how we can fund government spending without individual and corporate income taxes.
EDWARD SNOWDEN’S WHISTLE
Odds are high you've heard about Edward Snowden, who told a British newspaper the National Security Agency is spying on American citizens. But have heard of Thomas Drake, William Binney, J. Kirk Wiebe, or Edward Loomis? They also worked for the NSA, also believe the collection of electronic data on Americans doesn't protect us from terrorists, and violates the law. If you haven't, its probably because they did what Edward Snowden's critics say he should have done. They expressed their concerns through proper channels. And what happened to them likely prompted Mr. Snowden to blow his whistle differently.
HALF-FULL REPORT 07/12/13
While waiting for my flight in the airport lounge in Sofia, Bulgaria yesterday (7/11), it was hard to ignore the big TV monitor tuned to ABC News. There was Diane Sawyer announcing the "latest development" of the Zimmerman trial, and up flashed the ABC intro graphic to start the story. On one side of the screen was a picture of Zimmerman in the gray suit and tie he wears to the trial. On the other side was a picture of Trayvon Martin - not as a six-foot tall 17 year old but as an angelic smiling 12 year-old. It's the same picture ABC uses to identify him on its website: Somebody switched the channel to CNN - funny how many American news channels there are in Bulgaria - which was devoted to some lawyers discussing mindless minutiae of the trial. Not a word about the real "latest development" - the disclosure on Wednesday (7/10) that Eric Holder's Justice Department organized with taxpayer money racial protests and racial unrest against George Zimmerman. The best op-ed of the week on this racist farce is in Tuesday's (7/09) IBD. It's IBD's conclusion that everyone needs to understand -- that any blood from planned race rioting will be on Obama's hands. Let's get out of the stuffy air in here and into the world a bit. There's no resisting, for example this headline of the week:
A HAPPY LIFE IS NOT PERFECT HAPPINESS
There is a great misunderstanding about what it means to live a happy life, and it can be summed up in the popular symbol of the smiley face.

AMERICA’S KING JAMES II
Is obeying the law optional? President Barack Hussein Obama seems to think it is -- at least insofar as it applies to him. The administration announced quietly last week that it plans to delay enforcement of the employer provision in Obamacare, even though the Constitution says the president "shall take Care that the laws be faithfully executed." (Article II, Section 3). In 1998, the Supreme Court ruled a law passed by Congress to permit the president to veto individual items in spending bills was unconstitutional because, "There is no provision in the Constitution that authorizes the president to enact, to amend, or to repeal statutes." (Clinton v. City of New York). This was no oversight. The Founding Fathers knew well that King James II of England was deposed in large part because he refused to enforce laws passed by Parliament he didn't like. They wrote Article II, Section 3 to keep such an abuse from happening here. But it has. Will Mr. Obama suffer the same fate as King James II?
SOUTHERN EUROPE IS SCREWED
Europe's debt-crisis strategy is near collapse. The long-awaited recovery has failed to take wing. Debt ratios across southern Europe are rising at an accelerating pace. Political consent for extreme austerity is breaking down in almost every EMU crisis state. And now the US Federal Reserve has inflicted a full-blown credit shock for good measure. A leaked report from the European Commission confirms that Greece will miss its austerity targets yet again by a wide margin. The Greek think-tank IOBE expects GDP to fall 5% this year. It has told journalists privately that the final figure may be -7%. The Greek stabilization is a mirage. Italy's slow crisis is again flaring up. Its debt trajectory has punched through the danger line over the past two years. The country's €2.1 trillion ($2.7 trillion) debt - 129% of GDP - may already be beyond the point of no return for a country without its own currency. Standard & Poor's did not say this outright when it downgraded the country to near-junk BBB on Tuesday (7/09). But if you read between the lines, it is close to saying the game is up for Italy. The game is up for all of Southern Europe.
A RACIST TRAIN WRECK OF A TRIAL
Neighborhood watch volunteer George Zimmerman "profiled" black teenager Trayvon Martin, "stalked" him, and started the fight that led to his death, prosecutors asserted. But the testimony of nearly every witness for the prosecution bolstered Mr. Zimmerman's claim he acted in self defense, said attorney Andrew Branca, author of "The Law of Self Defense." The prosecution's case was so weak that Judge Debra Nelson should have granted the defense motion for a directed verdict of acquittal, said Mr. Branca, who is covering the trial for the blog Legal Insurrection. If George Zimmerman had Hispanicized his first name (as Geraldo Rivera did) and adopted his maternal last name, it's doubtful he'd have been arrested, much less put on trial for murder, said historian Victor Davis Hanson. What a racist train wreck of a trial.
DINOSAURS, DEMOCRACIES, AND THE DEEP STATE
Sofia, Bulgaria. Today (7/10) is the 27th straight day of anti-government protests here in Bulgaria's capital. If you look at the picture in the Euronews story about yesterday's protest, you'll notice that the folks marching down Vitosha Street aren't a bunch of Occupy moocher-hippies. These are regular middle-class folks of all ages, Bulgarian Tea Partyers, totally fed up with endemic government corruption that seems impossible to get rid of. One of Bulgaria's neighbors is Turkey, where similar anti-government protests have been going on since early June as well. On Monday (7/08), police fired teargas and water cannons at protestors in Istanbul. There have been massive anti-government protests for over a month in up to 100 cities in Brazil. We all know what's going in Egypt, where tens of millions demanded the removal of an Islamist sharia tyranny, and got it. But now what? And now what for the US? Zero's Police State America expands exponentially by the day, we have the most corrupt and oppressive government in our nation's history by far - and where are the folks in the streets like here in Bulgaria, or Turkey or Brazil? I hear crickets instead. Yet there's no doubt the seething and frustration is reaching a boiling point. Is there something in common, some universal irritation, that causing all of this? Perhaps. First, however, we need to get rid of a metaphor.
AMERICA’S WORLD-SHAKING SHALE OIL CORNUCOPIA
In the US shale gas is old hat; it's the shale oil revolution that's proving a world changer, promising not just lower oil prices worldwide, but geopolitical ripples as America weans itself off oil imports and perhaps loses interest in the Middle East. One of the pioneers of the shale gas revolution, Chris Wright, of Liberty Resources, was in Britain last month. It was he and his colleagues at Pinnacle Technologies who reinvented hydraulic fracturing in the late 1990s in a way that unlocked the vast petroleum resources in shale. Within seven years the Barnett shale, in and around Forth Worth, Texas, was producing half as much gas as the whole of Britain consumes. And the Barnett proved to be a baby compared with other shales. Like many shale entrepreneurs, Mr. Wright is now spending a lot of time in North Dakota drilling for oil. The success of America's shale gas revolution drove the gas price so low that in 2010 most drilling rigs switched to looking for oil. With spectacular results. A new report (The Shale Oil Boom: a US Phenomenon) by Leonardo Maugeri of Harvard University, sets out just how astonishing this second shale revolution already is.
WHY ARE ECONOMIES AROUND THE WORLD STALLING OUT?
Stall speed is the airspeed at which an aircraft stops producing lift. Unless immediate corrective action is taken, such as reducing the wing's angle of attack or the weight of the aircraft, the results are not likely to be good. An economy can hit "stall speed" when it becomes burdened with too much dead-weight loss. The eurozone economies have hit stall speed, with France, Germany, Italy and Spain, as well as most of the smaller economies, having negative growth. In addition, the United Kingdom and Japan are barely above stall speed with an annual growth rate of less than 1 percent. The United States, Canada, Russia and Brazil are in the danger zone, all with annual rates of less than 2 percent growth. The basic questions are: Why has growth stalled, and what needs to be done to revive it? Good economists know the following: