Thursday, August 28, 2008
History has been made
I don't have to tell you that history was made tonight, as the first African-American nominee of a major party for President of the United States accepted the nomination. I paid close attention to the entire convention, and will do the same next week as Republicans gather in the Twin Cities. And I am convinced that this election may be the most important in a generation. So I urge all of you to search your hearts, determine what's important, and above all else, vote.
I am a believer in the notion that God does not care who we elect as President, but does care that we, as a nation and as individuals, act toward other nations and each other in just the manner that we would have them act toward us. This requires us to be patient and understanding, but unrelenting in those ideals that are inspired by our founders and our faith. Between now and November 4, let us demand of our leaders and our candidates that they take the high road, avoid personal attacks and tell us the truth. If they will do that, we will make the right decision.
I know it's asking a lot. But America and the world deserve no less.
God bless America.
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Thursday, August 21, 2008
The New Topic Is Dano
In the meantime, I'm wondering what you all think about the issue of offshore drilling - I think that will be our next coin toss debate, so if you'd like to log in, we'll be happy to hear what you have to say. We won't comment on your posts until both Dano and I have logged in with our arguments, based on the coin toss - remember, it doesn't matter what we believe personally.
In fact (no pun intended), the only thing that matters is the truth. Your truth and mine may be different, but my truth is this - I am confident that Dano is one of the funniest, most decent and most intelligent people I've ever known, and his presence in my life and God's world is a positive thing. So I'll be praying for him.
Thank you for doing the same.
Agape',
Reed
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Monday, August 18, 2008
Reed: Flat Tax? A Wonderful, Unworkable Concept

If I were to say to you, "It doesn't matter how much money or how little money you make, or how much or how little you spend, we're all going to pay the same tax rate," your first reaction would be, "Well, makes sense to me."
That was certainly my reaction when Steve Forbes proposed a flat tax system during his Presidential campaign in 1996. While I gave the publishing magnate a less than 17 percent chance of actually winning the Republican nomination, I paid close attention to his point, well-received on both sides of the aisle, that our tax system was inherently unfair, unwieldy and complicated, and reform was necessary.
But my research then, and my belief now, is that the "flat tax" proposal Steve Forbes proposed, and most if not all such proposals prior and subsequent to Forbes', are incapable of meeting the revenue needs of the government of the United States while still preserving our institutions and protecting our citizens.
Forbes was certainly not the first to point out the flaws of America's system of collecting the funds necessary to run our government. From the founding of America to today, leaders and citizens have debated the pros and cons of taxation as a means to "establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty for ourselves and our posterity".
But no one denies that these principles, espoused in the preamble to our Constitution, are necessary to uphold, with our labor, our honor and our dollars.
So as our society has evolved over 232 years, so has our system of taxation, and no longer is it possible to say, "Okay, you earned $5000.00 this year, give Uncle Sam $500.00 and he'll protect you." What we earn, what we save, what we spend is all relative to factors that make a flat-tax system unworkable.
A simple but telling example of the fallacy of flat taxation rests in pure geography. According to the U.S. Census Bureau, the state with the lowest household income is Mississippi, at $34,500.00. (see: www.census.gov/
This would seem to indicate that our current tax system is "regressive", that is, skewed toward the wealthier citizens. Many in the upper middle class and beyond would argue the opposite. But most data indicate that almost any system of taxation is "regressive", based on definition and practical application.
The value-added tax, or VAT, has been offered up by some economists as a "flat tax" which could replace the income tax as the government's main source of revenue. The VAT is a sales tax which is applied to a product at all levels of its "life-span", from production to consumption (www.investorglo
The VAT is a regressive tax because the wealthy, with their income now non-taxable, can continue discretionary spending for such things as a new table, and still afford to invest and spend at will. The middle class family is left to determine if a heavily-taxed item is a necessity, or a luxury.
Another potential problem with the VAT also applies to the flat sales tax proposal put forth by organizations such as FairTax.org. A 30% sales tax as proposed would cause many products to be manufactured and sold on the "black market", through cross-border or Internet transactions. Tax evasion would become the norm for major purchases, especially in households where income was below the median. But the wealthy would certainly not miss an opportunity to take advantage of these shady offerings, and the U.S. Treasury would be unable to maintain the revenue stream necessary to meet the government's Constitutional obligations as a result.
The Hall-Rabushka flat tax proposal of the early 1980's, proposed by two fellows of the Hoover Institution, was a variation of the VAT that would apply to businesses and individuals. It made adjustments for the inherent "regressive" nature of the tax by taking into consideration a company's or individual's income, material costs, pension contributions, etc. In other words, it weighed itself down in much the same way as has our current, convoluted tax system.
William G. Gale, a Brookings Institution fellow and proponent of the flat tax, pointed out that "many of the gains (attained through the flat tax) are also available through judicious reform of the income tax, in particular by making the taxation of capital more uniform." Reform, then, according to Gale, could solve many of the problems of the current tax code.
One of the most recent proponents of the flat tax has been Daniel J. Mitchell of the Cato Institute. In Cato's July/August 2007 Policy Report, Mitchell argued the merits of the flat tax by pointing to the various countries and protectorates that have adopted such a method of financing their government programs. Estonia, Latvia, Serbia, Slovakia, Mongolia, Kyrgyzstan, Macedonia and Montenegro are among the 19 economic "powerhouses" that have found merit in such a system. Would we trade our system for theirs?
Alas, it takes great political will to achieve even small, incremental change in such a vast wasteland as is represented by America's tax system. And until Congress can muster such will, or until we elect a President willing to take on the special interests that most benefit from the convoluted nature of our current code, then modest reform is all we can hope for.
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Dano: The Flat Tax is Fair, Necessary

Many people don't know what a flat tax is, so I'll give just a brief description. The truest form of flat tax is one that taxes everyone and every business at the same, fixed rate; usually, there are no deductions or exemptions in such systems. A single mother of four making $18,000 a year would pay the same percentage of her income as would someone making $500,000 a year with no children to support. This is patently a bad idea, because it burdens the poor disproportionat
Assume a flat tax rate of 17%. The $3060 tax burden on the single mother is a more critical insult to the single mother's (and her children's) welfare than the $85,000 tax bill is for the half-million dollar earner with no kids. Because of this inequity, no serious flat tax proposals are true flat taxes - instead, they incorporate an income threshold below which there is one flat tax rate, 0%, and above which there is another flat rate, usually something under 20%. They also provide personal exemptions and exemptions for number of dependents. In such a system, with a taxable income threshold of $30,000 and the dependent exemptions, the aforementioned single mother would pay no income tax, while the wealthier worker with no children would pay the 20% flat rate. In this way, such a flat tax is progressive, or graduated, though it could be argued that there is still only one tax rate, and that those below the income threshold (or who have enough exemptions) simply aren't subject to the tax system. In any case, no serious proposals eschew the minimum taxable income "loophole."
The benefits of a flat tax are many. The most obvious benefit is simplicity. Our current tax code is some nine million words in length, and there are between eight and nine hundred forms necessary to deal with all of the exemptions, deductions, credits, exclusions and other complexities. More than 80% of the tax code deals with these issues. Under a flat tax, there would be two forms - one for individuals, and one for businesses. Both these forms would be so simple they could be placed on a post card (see, e.g., http://www.cse.
A related benefit, one that represents an almost immediate increase in personal and business wealth, is the money that would be saved by this simplification of the code. It has been calculated that Americans spend around $600 billion per year on income tax compliance; they feel compelled to hire tax accountants and lawyers and financial analysts to help navigate through the IRS rules. This expenditure would be unnecessary under a flat tax.
But there are more goodies. Without going into exhaustive detail, the following are several of the other beneficial features of a flat tax system:
- No double taxation or asset taxation. The flat tax system taxes only income, and only when it is first earned. Unlike the current system, it does not tax savings, capital gains, interest income, or dividends. There is no death tax, either. Because of this feature, a flat tax would instantly increase the value of assets held by Americans.
- Less IRS intrusion. Under a flat tax, the IRS has no need to know what your assets and liabilities are - just income. Because of the lack of deductions, exclusions, loopholes, and related audits, the IRS can be simplified and downsized, further saving Americans' tax dollars.
- Increased global competitiveness
. The current tax structure makes the U.S. one of the world's most expensive nations in which to do business. It is therefore attractive to migrate jobs and capital to countries with lower tax rates. A flat tax system, with a much lower tax rate, would eliminate this incentive to leave our shores, and would actually make the U.S. a more attractive operating arena for foreign owned companies as well. This is because the flat tax is based on "territorial taxation," meaning that only income earned within our borders is taxed. Eliminating "worldwide taxation" should make the U.S. much more competitive on the world economic playing field.
- No marriage penalty. The flat tax would apply to all earners, so both a husband and wife would get taxed at the same flat rate. It would no longer be possible for one spouse's income to push the couple into a higher tax bracket. Moreover, because a married couple's family-based allowance is twice as high as a single person's, there would be no penalty for being married and filing jointly.
- Reduction in political corruption. Much of what lobbyists and special interest groups do in the halls of Congress has to do with currying favor with regard to tax breaks and other loopholes. Under a flat tax, because of the lack of exemptions and exclusions, politicians would no longer be able to engage in the corrupt practice of trading favors with big business. This would greatly reduce corruption, but would also save corporations the immense cost of lobbyists and, thus, aid in business growth.
Fundamentally, the current Revenue Code is so complex and so flawed that some kind of tax reform is both desirable and necessary - particularly in light of the fact that world governments are jumping on the flat tax bandwagon in droves. The former communist nations in Eastern Europe have almost all adopted a flat tax system, and have achieved remarkable economic gains.
Representative Dick Armey (R-TX) has the most promising flat tax proposal here at home, and it has garnered the most support in Washington (http://www.ncpa
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Friday, August 15, 2008
Musings from the Co-Host
Our goal was to create a format for intelligent conversation, and so far we've succeeded. So it's sad to consider that, while we here in this little corner conduct debate in a way that can only be described as honorable, there are people on the national and international scale whose only agenda is to denigrate and destroy, through whatever means possible, those who would seek to lead our nation.
Jerome Corsi, who started the "Swift Boat" movement in 2004 which doomed the candidacy of John Kerry, is at it again. His book, listed as a New York Times Bestseller (not hard, by the way - 10,000 copies will do it. Print a 90-page anything and publish it from your computer, have your mom buy 10,000 copies, and you're a best selling author) is called "Obama Nation". Put the words together and you get his drift. This book, of which I have read inserts, is a collection of rumor, exaggeration and bold-faced lies regarding the Illinois Senator who would be President. It incorporates the worst of the worst the media, the Internet and the radical right has to offer to demonstrate that Obama's success would be the downfall of America.
Two things make me really sad in regard to this publication. First, Corsi doesn't deny anything I just said. He really doesn't care that his book portrays Obama in a false light. He freely admits that the only reason he wrote it is to help assure that Obama is not elected. For that reason alone, I would implore you to simply ignore anything you hear about it, or fight to get the media and the Republicans to vocally and vociferously repudiate it. America should hear no more from this malcontent.
Secondly, Mary Matalin, a conservative voice that I once respected, has lent her name to this fallacious diatribe, thus costing her whatever credibility she once had. Her husband, liberal commentator and political advisor James Carville, must be grinning over his corn flakes at his wife's major screw up. I would love to be a fly on the wall at their house as the "I told you so's" are mingling with his signature chuckle.
My hope is that the media will treat Corsi in 2008 as they treated Ralph Nader in 2004 - a non-entity on the political scene not worthy of conversation. If that happens, perhaps we will see a return to civility and respect on the campaign trail. Does this suggest there won't be attack ads and personal digs against the opposition? I'm not that foolish.
But maybe, just maybe, this will be the year when we make our decisions based on how well our candidates articulate their positions on the issues that are really important. In other words, how well they do what we're trying to do right here. God, what a wonderful world it would be.
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Wednesday, August 13, 2008
Reed: We Cannot Afford to Wait for Russia to Leave Georgia

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Dano: No Military Involvement in Georgia-Russia Conflict
President Bush and other world leaders have demanded that Russia cease military operations within the sovereign borders of Georgia, which declared its independence from the Soviet bloc in 1991, following the dissolution of the Soviet Union. Georgia is now a democratic state, and is a strong U.S. ally. Despite strong condemnations by the Bush Administration,

Second, engaging Russia with force is a no-win prospect--not just for the U.S., but for the European Union as well. Russia supplies much of Europe with oil and other resources. For instance, Germany gets 42% of its natural gas from Russia (see , http://voanews.
Finally, the U.S. simply doesn't have the military assets to engage Russia, or any other superpower. According to the Department of Defense, out of just over a million active duty military personnel, only about 122,000 are not currently deployed--eithe
Diplomatic measures are required in this conflict. Between the U.S. and European nations, much can be done to pressure Russia into scaling back their military operations. Russia has been seeking admission to the World Trade Organization, and is a sitting member of the G8, an informal group of leaders from eight of the world's most powerful industrialized nations that meets annually to discuss issues of global import. Russia's actions are violations of international law, and Russia risks expulsion from the G8 and exclusion from WTO membership if it does not ratchet down it's operations. This is where the power of the U.S. and our allies rests.
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Tuesday, August 12, 2008
Corporate Tax Breaks?
In a recent Butt and ReButt comment, J.T. Twilley educated us about corporations "not really paying taxes," because they pass on those costs to consumers through higher prices. But according to the Government Accounting Office (GAO), roughly half of U.S. companies are set up as pass-throughs (e.g., subchapter S corporations, or partnerships), and thus taxes are paid by the owners or shareholders through personal tax returns. These companies are not the problem. Democratic Senators Byron Dorgan (ND) and Carl Levin (MI) claim too many large corporations used loopholes and other questionable (illegal?) methods to avoid paying any taxes at all.
I will be shocked if our pro-big-busines
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Monday, August 11, 2008
Obama: Advance Notice on VP Available
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Toilet Paper Debate: Not Worthy
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Thursday, August 7, 2008
Reed: America Can't Afford Four More Years

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Dano: The Case for McCain
Let's face it, folks. There is no doubt whatsoever that McCain has a very long history of public service. He is a bona fide war hero (okay...those of you that claim he was a traitor---prove

The only argument of any weight against McCain, as near as I can tell, is that he represents "more of the same" conservative, pro-war, Bush-type governing. But that's not altogether fair. He believed the Administration'
McCain has certainly agreed with President Bush on most issues, and his record reflects this. However, he has been less than complimentary on Bush's prosecution of the war in Iraq. It is his very lengthy and honorable military experience, and, thus, his views on how the war should be conducted, that makes him look different from Bush. And nobody can argue that we need a different strategy than that of the great "decider." John McCain is uniquely qualified to bring about the strategic changes necessary to finally and honestly exclaim mission accomplished! To read Reed's point of view, click here.
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Timeline for Troop Withdrawal is Negotiated
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Monday, August 4, 2008
About Our Weekly Topics...
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Dano: The Case Against Obama

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For more information on his Government service, see http://www.bara
This means we are left to determine how qualified and effective Obama can be as a Government leader based only upon his legislative record. In the case of his Illinois legislative experience, a brief review of his stated accomplishments
1. a governor or lt. governor
2. a vice president
3. a high-ranking military commander
4. a Cabinet or department secretary
5. a U.S. congressman (for at least a full term, usually longer)
(see http://www.whit
We aren't talking about a "present" vote on whether to name a state office building after a deceased state official, but rather about votes that reflect an officeholder's core values.
For example, in 1997, Obama voted "present" on two bills (HB 382 and SB 230) that would have prohibited a procedure often referred to as partial birth abortion. He also voted "present" on SB 71, which lowered the first offense of carrying a concealed weapon from a felony to a misdemeanor and raised the penalty of subsequent offenses.
(see http://www.real
What's the upshot of this? Sure, he got a few good things done. But when it matters where Democrats are concerned, he frequently chose not to vote, rather than to have his views known to the voters. This represents a record that can be cherry-picked for good sound bites, but that truly reflects a lack of spine on partisan issues about which he should be proud to show his record. In the end, if he can't even support his own party platform in a convincing way, he can't expect to get bipartisan support for contentious issues while president. Obama is not nearly as conscientious or experienced as other presidents have been. He simply isn't qualified to lead the most powerful nation on earth.
There is one last thing that might deserve consideration. This country has roughly as many registered Republicans as Democrats. Then there are independents. It is highly unlikely that Obama will get a majority of the popular vote. Republicans know this. No matter whether Obama is qualified to be president, if he gets elected, can he gain the trust of congressional Republicans? Something more than a majority of voters might well support efforts to thwart his agenda. Without more experience in the U.S. Congress, does he have the length and strength of relationships to draw bipartisan congressional support for his agenda, despite pressure from unhappy Republican constituents to crush it? Potential post-election difficulties should not be included in the qualific
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Reed: Obama for President - YES
Barack Obama's critics will first and foremost stress his inexperience, especially when it comes to foreign policy. John McCain lambasted Obama for offering his opinions on the wars in Iraq and Afghanistan in spite of the fact that "he's only been to Iraq once, and has never been to Afghanistan." Talk about throwing down the gauntlet! And what happened? I think McCain has learned the truth in the old adage, be careful what you wish for - you may get it.
Obama went to Iraq and Afghanistan, talked to the troops and commanders, and conferred with leaders of those and other countries whose interests are affected. He then moved on to Europe, where he spoke to more than 200,000 people in Germany, many of whom were waving American flags as a tribute to one who they perceived to be a viable ally and leader.
Tell me please, when was the last time our allies in Europe felt compelled to wave our flag instead of burn it?
Be that as it may, the "inexperience" argument may fly with some, until we consider some history. Another politician from Illinois made it to the White House in 1861. Prior to his ascension to the Presidency, Abraham Lincoln served eight years in the Illionois Gene

Compare that to Senator Obama - seven years in the Illinois Senate, three years in the U.S. Senate, ten years in political office. Whoa - coincidence? Experience is only as important as the skills and wisdom we gain from it. Many experienced politicians, Hoover, Johnson and Nixon among them, failed the nation and her citizens through poor leadership and unwise decisions in spite of years of experience.
Leaders are indeed born, and from his early years, Barack Obama has proven himself a leader. Coming from a modest background, he graduated from Columbia University and went on to Harvard Law School where, in 1990, he became the first African-America
This is the kind of decision-making
Perhaps the most compelling reason I have for believing that Senator Obama is indeed qualified to lead our nation rests in a story that began in October of 2002. Support was growing for the Bush Administration'
(For more information, see http://www.wiki
And it is interesting to note that many, including 2004 Presidential nominee John Kerry and Obama's primary rival, Senator Hillary Clinton, both subsequently expressed regret for their support of the resolution. The 2006 Congressional elections were a clear sign that the American public was tired of a trumped-up war that Americans now felt should never have been waged.
But in a speech in Chicago on the eve of Congress' approval of the resolution, Obama, then a state Senator from Illinois, spoke passionately of the need to avoid the war in Iraq. In his speech he called on America to avoid what he referred to as "a dumb war. A rash war. A war based not on reason but on passion, not on principle but on politics" (see citation link, next paragraph). And while he agreed with President Bush that Saddam Hussein was a dictator whose removal would be applauded, he noted, correctly, as the facts have demonstrated, that Saddam's government and military were bankrupt and impotent and posed no grave danger to the world.
Senator Obama then spoke words which still ring with prescience. "I know that even a successful war against Iraq will require U.S. occupation of undetermined length, at undetermined cost, with undetermined consequences." (The text of the speech can be found at many sources, including http://www.comm
When a young, vibrant, passionate man stands and presents himself to the nation and the world in such a powerful and prophetic manner, the reasonable person can only listen, and observe, and agree - this man, Barack Obama, has the mind, the heart, and the soul of a leader. I say, let's let him lead. To read Dano's point of view, click here.
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Sunday, August 3, 2008
Comments Enabled, Comment Link Added
Friday, August 1, 2008
This week's topic: Obama as President?
Please understand the following:
The two of us have flipped a coin to decide who will go "pro" and who will go "con" on the weekly issue. Our posts do NOT reflect our personal politics, and those who know us personally are asked not to attack either of us for being "traitors" to a point of view (see SITE RULES in sidebar). The idea behind what we are doing is to teach everyone (and ourselves) how to better discuss and debate issues without resorting to diatribe, passion, emotion, or any other "less than rational" dialog. Any comment that includes vulgarity, name-calling, or any statements that are not supported by empirical data or honest emotion (without disrespect) will not be tolerated on this blog, and are not welcome here. If you feel strongly about an issue, feel free to say why, but please back your position up with a citation to the reference material from which you learned your point of view.
We intend to support our "pro and con" positions with neutral fact websites or other neutral resources such that every post we make is beyond reproach from a journalistic standpoint. In the case that we get information from a less than neutral website (and we will endeavor to figure this out in advance), we will indicate that in our posts. To the extent that we succeed at this, this site should flourish. We've called it an experiment; this is partly because we don't know if we can do it by the rules, but we will try. We ask only that commenters try as well. Please see the section on site rules in the sidebar. Note that it is our hope that all participants, including your hosts, but also school teachers and college professors will utilize this site to help people learn how argument and persuasion can and should be done. This means there is no room for vulgarity, name calling, or angry and unsupported rhetoric. If you don't follow comment rules, your comment will be removed. Young people may be reading here! Please act accordingly!
For posting rules, which reiterate these points and others, please see the sidebar entitled: Site Rules.
What will follow are individual postings by Dano and Reed on the topic for this week. Please feel free to comment on them, and expect us to comment on each others' posts as well. This is a learning process for us all.
One administrative note: we are attempting to have comments show up immediately under the relevant posts, but this has proven to be a glitch on our hosting site. If you want to see your comment, for now, you must click on the small "comments" link below the post. This will bring up a screen that shows all comments for each post, and you can bring up the original post there as well. We're trying to fix this problem.
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