independentsforkerry.org

Chuck Moulton is a former vice-chair of the Libertarian Party. He sent the following to IPR:
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Governor Johnson called me on Wednesday to ask for my support as a LP convention delegate in Las Vegas. We spoke for 5 minutes about problems with the Fair Tax before I had to leave to teach a class. Later that day I wanted to follow up with more information in written form. Unfortunately Governor Johnson does not post his direct email address on his website, so I called him back at the number that called me leaving a voicemail with my phone number and email address. He didn’t get back to me, so I’m posting these concerns as an open letter instead.

My hope is the timing of this letter will facilitate an airing of these concerns with Gary Johnson and Jeffrey Miron on the video chat scheduled for Monday February 13. I believe Jeffrey Miron will find many of these concerns to be very legitimate — and that might knock some sense into Governor Johnson.

-Chuck Moulton

Chuck Moulton: An Open Letter to Gary Johnson about the Fair Tax

Governor Johnson,

I will be a LP convention delegate from VA. We spoke on the phone at 11:20 am EST Wednesday.

I mentioned to you that many libertarians are not fans of the Fair Tax. The purpose of this email is to give you more information on that so you can better position yourself to libertarians in general and Libertarian Party national convention delegates in particular.

I see that your economics adviser Jeffrey Miron advocates a flat consumption tax, but I can’t find any writings or videos where he has advocated the Fair Tax in particular. I agree with him that a flat consumption tax would be preferable to our current tax code. But I have several strong objections to the Fair Tax.

The devil is in the details.

Main libertarian objections to the Fair Tax:
1. The prebate would start a new welfare entitlement.
2. The transition would redistribute from savers to borrowers.
3. There is a danger of getting BOTH an income AND a consumption tax.
4. Advocates disingenuously quote a 23% rate when it is actually 30%.
5. Advocates use protectionist rhetoric to sway populists.

I will elaborate on all of these objections. I’d encourage you to consult your economics adviser Professor Miron to see if he agrees with me. Also current LNC treasurer and ballot access guru Bill Redpath has strong opinions against the Fair Tax.

First, when people start receiving a government checks in the mail it will create a new political constituency that will vote in favor of keeping and raising the checks. When a new entitlement is put in place it becomes politically very difficult to remove that entitlement due to the public choice theory of motivated, self-interested voters and special interest political contributions driving political decisions. Indeed it is far more likely (given ample historical precedent) that politicians will keep raising the check higher to get votes. Many libertarians fear this will be the camel’s nose under the tent that paves the way for socialist income redistribution.

Second, seniors that have worked their whole lives and have now retired to live on their savings (right when the Fair Tax is implemented) will see that savings taxed twice: once as income and once as consumption. In actuality this isn’t a cost, but merely a redistribution because conversely people who have ran up a credit card debt buying things before implementation of the Fair Tax and will subsequently earn money to pay off that debt will never be taxed. So during the transition period any consumption tax replacing an income tax will redistribute money from savers to borrowers. Any transition from one tax to another will have a redistribution effect, so this should not necessarily be a deal breaker. However, consumption tax advocates should be aware of this effect because failure to admit it will seem like the politician is trying to pull one over on people.

Third, libertarians are worried about supporting any tax because historical experience shows that government will tax as much as it can by any method it can. The current incarnation of the Fair Tax contains a Title IV which sunsets it if the 16th amendment is not repealed. From 1999 to 2007 the Fair Tax bill introduced in Congress did not include that sunset provision. It was included in the 2009 and 2011 versions. Many libertarians researched the Fair Tax before 2009 when the plain text of the bill left open the possibility of getting both the income tax and Fair Tax together — especially given a government running large deficits. Passing legislation is messy and unpredictable. In the course of passing the Fair Tax, that sunset provision could be taken out by amendment during negotiations. Another small technical point: even if the 16th amendment is repealed, the federal government can still impose an income tax as long as that tax is apportioned among the states proportionally to the number of people in each state. Additionally other taxes (like the corporate tax, capital gains tax, etc.) may be re-imposed by Congress after the Fair Tax is implemented.

Fourth, if the Fair Tax is quoted like any normal sales tax, then people will pay 30% of their purchases. If you give the Fair Tax pitch to a normal voter then ask him what his sales tax rate will be at the register, most will say 23%. Deliberately leading people to the wrong conclusion (even if not explicitly saying anything false) in order to sell a proposal is a red flag showing the proposal isn’t good enough to be embraced on its own merits. Libertarians familiar with the Fair Tax see advocates quoting a 23% rate as either misunderstanding the Fair Tax or lying to the public.

http://www.fairtax.org/site/PageServer?pagename=about_faq_answers#47

Fifth, I’ve heard you claim that the Fair Tax will make America more competitive because American companies will not have to disadvantageously pay the corporate tax while foreign companies don’t. The logic is the Fair Tax will make imports relatively more expensive than before implementation and make exports relatively cheaper than before implementation, which will stimulate production. As an adjunct professor of International Economics, I cringe whenever I hear that. Unfortunately the rhetoric misses the fact that consumers in America are worse off because foreign goods are more expensive and producers in foreign countries are worse off because American goods are cheaper. The same competitive effects could be realized by imposing an export subsidy on American goods and an import tariff on foreign goods. Both the export subsidy and the import tariff would lead to a deadweight loss for the world as the costs exceed the benefits. Production is just a means to an end, not an end in itself (utility in the form of consumption and leisure is the real goal), so production should not be a loftier goal than consumption and sacrificing consumption for production with a net loss is very misguided. Similar rhetoric to yours about the Fair Tax’s effect on American competitiveness is used to justify protectionist tariffs. Practically all libertarians are for free trade, and many libertarians have an ear for economics. While populist protectionist rhetoric may play well with the general public, it turns off libertarians.

Finally there is a contingent of radical libertarians who will be turned off by any advocacy of any tax — even a tax that is lower or more efficient or fairer than a current tax. They are far more excited about Ron Paul’s plan to eliminate the income tax and replace it with nothing. There’s no pleasing everyone. Most pragmatist libertarians will support transition policies that move the ball down the field to lower, more efficient, fairer taxes… but the Fair Tax isn’t even a good incremental policy.

For the reasons above, in my opinion you would win over more libertarians by advocating for the general concept of a consumption tax replacing all other federal taxes (without a prebate, but with constitutional amendments prohibiting all other taxes) than you will advocating for the Fair Tax in particular. At a minimum you should be familiar with the Fair Tax’s deficiencies and present them honestly to libertarians so you won’t be seen as a shifty politician trying to put lipstick on a pig.

There are a number of your other positions that libertarians are worried about (e.g., Guantanamo Bay detainees, entangling alliance with Israel, not pardoning non-violent drug offenders while governor), but the Fair Tax is the big one.

Thanks for your time reading my concerns.

-Chuck Moulton

Biography:

Chuck Moulton has held numerous leadership positions in the Libertarian Party at the national, state, and local level including vice-chair of the Libertarian National Committee, chair of the Libertarian Party of Pennsylvania, at-large member of the Libertarian Party of California executive committee, and 10th congressional district chair on the Libertarian Party of Virginia state central committee. He ran for U.S. Congress as a Libertarian in 2004. Chuck is an ABD economics Ph.D. student at George Mason University with research interests in free banking. He is also an attorney licensed to practice law in Pennsylvania, New Jersey, and California and a professional registered parliamentarian who currently serves on the LP’s bylaws committee. Chuck has taught undergraduate courses in Money & Banking, Mathematical Economics, and International Economics.

Independent Political Report

In his latest column at Chuck Baldwin Live, 2008 Constitution Party presidential candidate Chuck Baldwin writes in part

While most Americans were celebrating the holidays, President Barack Obama quietly signed the National Defense Authorization Act (NDAA), otherwise known as the “Indefinite Detention Act,” into law. Obama had initially said he would veto the bill which contains the draconian language authorizing the US military to seize and incarcerate US citizens without warrant, due process, trial, etc. Of course, Obama quickly changed his mind after the bill passed both houses of Congress.

When signing the NDAA into law, Obama issued a signing statement that in essence said, “I have the power to detain Americans… but I won’t.” See this report:

http://tinyurl.com/6pqx4bg

Americans should realize that, coupled with the Patriot Act, the NDAA, for all intents and purposes, completely nullifies a good portion of the Bill of Rights, turns the United States into a war zone, and places US citizens under military rule. And what is even more astonishing is the manner in which the national press corps, and even the so-called “conservative” talking heads, have either completely ignored it, or have actually defended it. The likes of Rush Limbaugh, Sean Hannity, et al., should be ashamed of themselves!

Other alternative parties have also spoken out against this legislation.

Independent Political Report

Sioux Falls Conservative Examiner writer Lori Stacey reports that 2008 Constitution Party Presidential candidate Chuck Baldwin will run for Lieutenant Governor of Montana as a Republican:

The major announcement took place during the live broadcast of Pastor Chuck Baldwin’s sermon at Liberty Fellowship in Kalispell, Montana. He treated his congregation and many others watching online to a major political announcement this afternoon.

Dr. Chuck Baldwin, the 2008 Presidential Nominee of the Constitution Party has accepted an invitation by Republican Gubernatorial candidate Bob Fanning to be his running mate for Lt. Governor of Montana.

In looking up Bob Fanning’s campaign website, I noticed that this is definitely official as Bob already has Chuck Baldwin listed as his Lt. Governor running mate.

Bob Fanning, a retired manufacturing CEO, is one of ten candidates vying for the Republican nomination for Montana governor in 2012. In Montana, gubernatorial candidates pick their running mates before the primary.

Independent Political Report

According to Boston.com:
A federal judge today sentenced Chuck Turner to three years behind bars for accepting a ,000 bribe, a stinging rebuke to the former Boston city councilor.
US District Judge Douglas P. Woodlock rejected an appeal for leniency by defense attorneys, who had asked that the 70-year-old civil rights crusader receive probation and be [...]
Green Party Watch

Chuck Baldwin at ChuckBaldwinLive.com:

This column was initially released last June. Without a doubt, this has been one of my most requested columns. So, in response to the large number of readers who have asked me to re-release this column, I do so today. And in doing so, I have added some new material to the original column.

One does not have to be a prophet to know that we are on the precipice of some potentially catastrophic–or at the very least, challenging–days. In fact, most of us are already in challenging days, and some are already enduring catastrophic events. That is, if one would call being out of work, losing one’s home, facing life-threatening medical conditions without any prospect of medical insurance, several families being forced to live in one house due to homes being foreclosed, etc., catastrophic.

The potential for an escalation of cataclysmic events, however, is very real. Only a “blooming idiot” would call someone who attempts to prepare for “the day of adversity” a Chicken Little now. Anyone who does not see the storm clouds on the horizon isn’t paying attention.

For example, can one imagine what would happen if terrorists nuked a major American city or cities? (Once again, I encourage readers to go get the videos of the CBS TV series “Jericho” to get an idea of how quickly life, and even civilization, could change.) Imagine if there was another 9/11-type event. What would happen if some form of Zimbabwe-style inflation hit the US? What would happen if anything disrupted the distribution of Welfare checks, or food to local grocers? Imagine a Hurricane Katrina-style natural disaster in your town. I think people everywhere are beginning to awaken to just how vulnerable we all really are.

As a result, people from virtually every walk of life have recently been asking my thoughts on how they should prepare. Therefore, I will attempt to share with my readers some of the counsel I have given these folks.

First, a disclaimer. I am not an economist; I am not a survival expert; I am not a firearms expert; I am not an attorney; I am not a physician. In fact, I am not an expert in anything! For several years, however, I have tried to learn from others. I am an avid reader. My work has allowed me to travel extensively. I have had the privilege of sitting at the feet of–and learning from–many of America’s most learned, most trained, and most qualified “experts” in a variety of fields. What I write today, I have learned from others. I’ve formed my own opinions and priorities, of course, but everything I’m sharing has been said, or written about, before. But if I can share something in today’s column that will help someone be better prepared for the days to come, then my goal will have been achieved.

Location:

First, analyze your living conditions. Where do you live? Do you live in an urban or rural environment? Is it a big city or small town? Do you live in an apartment or condominium? How close are your neighbors? Do you even know your neighbors? Would you trust them if the electricity was off and they were hungry? Could you grow your own food, if you had to? How easily could you secure your home? If you live in a cold weather environment, how long could you stay warm without electricity? These are the kinds of questions you need to ask yourself now.

Over the past several decades, masses of people have migrated into large metropolitan areas. More people live in urban areas than at any time in American history. While this may be well and good for times of prosperity, it is an absolute nightmare in any kind of disaster. Does anyone remember what New Orleans looked like after Hurricane Katrina came through? Can anyone recall what happened in downtown Los Angeles during the 1992 riots? Needless to say, any inner-city environment could become a powder keg almost instantaneously, given the right (or wrong) circumstances. And the bigger the city, the bigger the potential problems.

If you live in the inner city, I suggest you consider moving to a more rural location. Obviously, now is a very good time to buy property (especially rural property), but the downside is, selling property is not as favorable. If you can afford it, now is a great time to buy a “safe house” outside the city. If you are fortunate enough to have family or some true friends nearby, you might want to put your heads–and some resources–together in preparation for serious upheaval. Obviously, a team of prepared people is much better than being alone.

If you must stay in your urban location, have some commonsense plans in hand in the event of a major disaster. Get to know your neighbors: find out whom you can trust and whom you can’t. Keep some extra gasoline on hand, in case you need to get in your car quickly and leave. Have several exit routes planned ahead of time, in case roads are blocked. Have a “bug-out” bag containing essential ingredients to live on for 3 or 4 days. If leaving is not an option, have a plan to secure your home as best you can. You’ll need to think about things such as food, water, medicine, warmth, self-defense, etc. But at this point, to do nothing is absolute lunacy!

Provisions:

During a major disaster, food will quickly disappear. Living for over 3 decades on the Gulf Coast, I can tell you with absolute certainty that whenever disaster strikes (usually an approaching hurricane, for us), food and provisions at the store sell completely out in a matter of a few hours. People panic, and within hours, you cannot find food, bottled water, ice, generators, batteries, candles, etc. In a matter of hours, every gas station in the area will be completely out of gas. Not days. Hours!

Furthermore, almost all disasters include a complete loss of electricity. The water supply is compromised. Bottled water becomes more valuable than bank accounts. Dehydration becomes a very real and present danger. I remember witnessing a man offer an ice vendor 0 for an extra bag of ice during Hurricane Ivan. My wife and I went 2 weeks (14 days) without electricity in the aftermath of that hurricane. Believe me, I got a taste of just how precious bottled water, ice, batteries, generators, fuel, etc., can become.

I suggest you have a supply of food and water to last at least 2 weeks. A month would be even better. Personally, I can live a long time on tuna fish or peanut butter. You can purchase MREs from a variety of sources, as well as “camp-style” packaged food from stores such as Academy Sports & Outdoors. Of course, bottled water is available everywhere during normal times. Stock up! Plus, I suggest you have some water purification tablets or a Katadyn water filter on hand. And, if you are able, prepare to grow your own food. Canning food is another very helpful hedge against deprivation. If your parents were like mine, this was standard operating procedure.

Get a generator. Keep a supply of fuel on hand. Stay stocked up on batteries, candles, portable lights, first aid supplies, and personal hygiene items–especially toilet paper. Trust me, during times of intense and prolonged disaster, toilet paper could become more valuable than money. I also suggest you never run out of lighters or matches. You never know when you’ll need to build a fire, and during a prolonged survival situation, fire could save your life. If you live in a cold weather climate, you probably already have some sort of wood stove or fireplace.

Obviously, you need to take stock of your clothing. Do you have clothes suitable for extended outdoor activity? What about boots? During a disaster, you would trade your best suit from Neiman Marcus for a good pair of boots. Do you have gloves? Insulated underwear? What about camouflage clothing? These could become essential outerwear in the right conditions. Plus, any “bug-out” bag will need to include spare clothing.

Communication and medical provisions are also a high priority in any kind of emergency. How will you communicate with your loved ones when the phones (including cell phones) go down? A preordained rally point (or safe house) might be something to think about. And what about medical supplies? Do you have enough to take care of routine (and not-so-routine) emergencies? What about your prescription drugs? How long could you function if you were cut off from your druggist for any length of time? Think about it now.

And one more suggestion, while we’re on this subject: the best resources in the world are of little use if one is physically incapable of making good use of them. In other words, GET IN SHAPE. During any kind of emergency situation, physical exertion and stamina become immensely important.

Commodities:

I suggest you have at least some cash on hand. Just about any and all disasters will result in banks being closed for extended periods of time. That also means credit card purchases being suspended. You need to have enough cash to be able to purchase essential goods (if they are even available) for an undetermined amount of time.

Of course, some survival gurus insist that during any cataclysmic climate, precious metals will become the only reliable currency. But when most of us are trying to feed our families and pay our bills, it is difficult to get excited about buying gold and silver. Obviously, I would never recommend that anyone jeopardize the present on the altar of the future. My parents made it through the Great Depression with canned goods and garden vegetables; gold and silver were certainly not a priority with them. On the other hand, a little gold and silver could go a long way in a prolonged emergency–if you can afford it without jeopardizing present needs.

In fact, in a disaster, what is considered a valuable commodity can change rather quickly, as the barter system takes a life of its own. What is valuable is determined by what you need and how badly you need it. In a prolonged disaster, simple things such as toilet paper, canned goods, ammunition, and clothing could become extremely valuable; while cars, video games, televisions, etc., could be reduced to junk status. In antiquity, wars were fought over things such as salt.

Speaking of cars, remember that during a prolonged “national emergency” that might involve some sort of nuclear attack or widespread civil unrest, an Electromagnetic Pulse (EMP) might be employed; in which case, most every late model vehicle would be completely inoperable. Accordingly, if one can keep an older, pre-computer-age vehicle in good working order, he or she might be driving the only non-government vehicle capable of going anywhere.

Self-Defense:

Needless to say, during any kind of disaster, your safety and protection will be completely up to you. If you really think that the police are going to be able to protect you during an upheaval, you are living in a dreamworld.

In both the New Orleans and Los Angeles disasters, police protection was non-existent. Lawless gangs quickly took control of the streets, and people were left to either defend themselves or swiftly become the helpless prey of violent marauders. In fact, in New Orleans, some of the policemen actually abandoned their oaths to uphold the law and joined with the criminals, turning their weapons upon the public.

Face it, folks: in any kind of disaster, you must be able to defend yourself, or you and your family will be meat for these animals of society that will quickly descend without mercy upon the unprepared, unsuspecting souls around them. This requires that you be armed! It also requires that you be skilled enough to be able to efficiently use your arms.

Therefore, I strongly suggest that you purchase firearms sufficient to keep you and your family safe, and also that you practice sufficiently to know how to use them.

Now, when it comes to a discussion of which firearms are preferable for self-defense, the suggestions are as varied as the people who proffer them. These are my suggestions:

I believe every man (along with his wife and children of adequate age) should be proficient with the following weapons: a handgun in .38 caliber or above, a .22 rifle, a center-fire hunting rifle, a semi-automatic battle rifle, and a shotgun.

My personal preference for a self-defense handgun is either a .45 ACP 1911 (either Colt or Kimber) or a .40 S&W. In the .40 caliber, my favorite is a Glock 23. In the 1911, I like the Commander size configuration. I also like the Glock 21, 30, and 36 in .45 caliber. My wife prefers to carry a Smith & Wesson .38 caliber revolver in the snub-nose, J-frame configuration. But this is primarily due to the reduced weight of these weapons for carry purposes. If needed, she could make a good accounting of herself with a Glock 19 in 9mm. If you are someone who has never owned and seldom fired a handgun, I recommend you buy a Glock. They are as simple as revolvers to operate, reliable, and almost indestructible. Plus, they provide increased magazine capacity, and are safe. They are also very easy to disassemble and clean. Of course, in dangerous game territory, you will need the power of a .45 Long Colt, .44 Magnum, or even a .454 Casull. These calibers are not for the limp-wristed, but when one is facing a brown bear or mountain lion, it is what one will need to survive. Plus, when your life is on the line, you’ll never feel the recoil.

For a .22 rifle, I really like the Ruger 10/22. For a hunting rifle, my suggestion is either a .270 or .30-06 caliber bolt-action rifle. I prefer the Remington Model 700 BDL or Browning X-Bolt, but there are several fine weapons in this configuration and caliber by numerous manufacturers. In dangerous game territory, a Marlin .45-70 could be a lifesaver. For a battle rifle, I suggest an AR-15-style weapon (I prefer Bushmaster) in .223 caliber or a .308 Springfield M1A. For a shotgun, I suggest a 12-gauge pump. Here I prefer a Winchester Model 1300, which is not made anymore. So, you’ll probably have to choose between Mossberg and Remington. For ladies, however, a 20-gauge shotgun is probably a better choice, and at “bad breath” range (where a shotgun shines, anyway), it is just as lethal.

Whatever you choose, practice with it to the point that you are able to use it proficiently. And be sure you stock up on ammunition. A gun without ammo is reduced to being either an expensive club or a cumbersome paperweight.

Go to your local independent sporting goods store (I don’t recommend the large national chain stores to do your firearms shopping) and get to know your hometown firearms dealer. Most of these people are kind and helpful folks who will be more than happy to assist you in finding exactly what type of firearm is suitable for you and your family.

Spiritual Power:

I firmly believe that man is created to have fellowship with his Creator-God. I really don’t know how people can face the uncertain future that we currently face without the spiritual knowledge, wisdom, comfort, and power that is made available through Jesus Christ. I believe the maxim is true: “Wise men still seek Him.” I strongly suggest that you seek to possess a personal relationship with God’s only begotten Son. In truth, spiritual preparation is far and away the most important preparation of all. Accordingly, be sure to pack a copy of God’s Word in your survival gear.

That we are facing challenging days is a certainty. Exactly what that means is yet to be determined. I trust that some of my suggestions will help you be better prepared for what lies before us. Plus, here is an excellent online Survival Blog chock-full of great suggestions and resources for all things survival. Check it out:

http://www.survivalblog.com/

I am sure that I have left out several items that others more qualified than me would include. I welcome their suggestions, as I am always desirous to learn from those who are wiser and more experienced. In the meantime, remember your Boy Scout motto: “Be Prepared.”

P.S. We are now successfully relocated in Kalispell, Montana. Wow! What a view. It’s a balmy, sunny 55 degrees as I write this column. I wish my patriot family (especially my Christian patriot family) could all join us here. We are at the “tip of the spear” in the liberty fight. We need as many patriots as possible to move to the Flathead Valley of Northwestern Montana. Pray about it, folks!

Letting everyone know, too, that our new ministry here in Montana is called “LIBERTY FELLOWSHIP.” For those who live within driving distance to the Kalispell area, we are searching for a meeting location and will let you know the location and times of our services as soon as possible. Please also be assured that we will begin livestreaming my Sunday messages just as soon as we can purchase the equipment and get it all functional.

Obviously, our move to Montana and the subsequent costs to establish our new ministry here is extremely expensive. Needless to say, we knew this was going to be a step of faith at our age, but we had no idea how much so.

Therefore, I am appealing to my friends and readers to make either a one-time contribution or a monthly contribution to LIBERTY FELLOWSHIP to help us establish this new work. LIBERTY FELLOWSHIP is an outreach of ChuckBaldwinLive.com and gifts made are NOT tax deductible. If you can help me get this new work started, please send your check or money order (we do plan to accept credit cards in the very near future) to:

Liberty Fellowship
P.O. Box 10
Kila, Montana 59920

Thank you very much for reading my columns and helping us fight the fight for God and freedom!

Independent Political Report