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REPLACE THE CORPORATE INCOME TAX WITH A BORDER-ADJUSTED TAX by Tom Pauken Print E-mail
by Tom Pauken    Tue, Jan 17, 2006, 07:47 PM

Austin businessman David Hartman has been a strong advocate here in Texas for replacing the "Robin Hood" scheme of high property taxes with a business activities tax.

More recently, he had turned his attention to the federal tax system, particularly the corporate income tax.

If you are concerned about our huge trade deficits and loss of manufacturing jobs in the U.S., you had better listen to what David Hartman has to say. He makes a good case in a series of papers he has written on our federal tax system that the current way we tax business in the U.S. has the perverse effect of penalizing savings and capital investment while providing incentives to ship our manufacturing jobs overseas.

Mr. Hartman’s solution is to substitute "a border-adjusted tax’ for the corporate income tax. The tax is border adjusted in that it would exempt exports and tax imports. Mr. Hartman has examined the current revenues received by the corporate income tax and maintains that a "17.5% rate would generate sufficient tax to meet the requirement of tax-revenue neutrality" if we went to a border-adjusted tax.

By changing the way we tax businesses located in the United States, overnight you would begin to see the effects of a revitalized U.S. manufacturing sector and a lessened dependence on nations like China and Japan to continue to fund our massive trade deficits. As Hartman notes, "such a plan would foster extraordinary growth and investment – most particularly, in a resuscitated manufacturing sector."

Just as the Sharp Commission here in Texas is beginning to take a serious look at the Hartman proposal to replace the Robin Hood school finance scheme with a business activities tax, so also is President Bush’s Advisory Panel on Federal Tax Reform beginning to consider a border-adjusted tax as a possible replacement for the present corporate income tax system. David Hartman has an article on that subject in the January issue of Chronicles Magazine entitled "A Step in the Right Direction." To read that article, link here.

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MY NEIGHBOR FRED by Bill Murchison Print E-mail
by DallasBlog.com    Tue, Jan 17, 2006, 12:34 PM

I used to live across the street from Fred Freeman -- in a metaphysical sense, I mean: Fred's mother, Corinne, still residing in the house where he grew up; the neighborhood itself looking much as it had in the '20s, when the first houses were erected, the streets laid out, the sidewalks paved, the hackberry trees planted.

Thanks to reading Growing Up in the Park Cities: Life in the 1920-1940s, his very touching, thoroughly wonderful memoir of those days, I now find Fred more deeply rooted on "our block" than ever before: the block he left decades ago but, strangely, never left entirely.

The imprint of people who have been in a place...really been there, through up times and down; laughing, playing, gardening, breakfasting, sleeping, drinking: such imprints go deep. You don't readily efface them, nor will McMansions, or the demise of the hackberry trees, hide their traces. There remains...the neighborhood. There remains what happened there all those years ago.

Life happened. What you find out, from Growing Up in the Park Cities is how life was lived back when there were still porches and detached garages and rotating sprinklers flinging water on modest if meticulously tended plots of ground. It was the time from the Roaring '20s to World War II, and fires had to be lighted on cold winter mornings. Beds, placed in corners, were angled toward the center of the room for maximum climatic advantage. "[I]f you had a car, there was only one per family. The deep Depression had removed so much money and jobs from the people, and things were so bad that the only way to look was UP! So up we looked with great anticipation for the new and better cars, faster airplanes, and more take-home profit for dear old dad."

There were bicycles with horizontal bars "good for girls to sit on and ride sidesaddle with an arm around your neck." And a game of Spin-the-Bottle, interrupted by the discovery of two eyes at the windows, belonging to the mother of a participant. And 1931 Bell standing model phones, so heavy to hold they shortened conversations. And paper routes "in the fresh air, rain, snow, and ice, 100 + degrees heat or freezing cold." And the Texas Centennial: "a fantastic land of beautiful art deco buildings marching along on both sides of a 700-foot-long reflecting pool of water," with lighting that made night seem like day." And picnics at White Rock Lake -- chips, games, cold drink, and g-i-r-l-s, "a big full moon rising through the trees or across the lake, and with a warm beautiful girl snuggled by your side."

Then the war: the neighborhood left, for a time, to its own devices and divine providence. A stint with the Army Air Corps. Flight school in California and, at last, at long last, the sublime moment, two weeks after the 21st birthday, flying solo for 25 minutes, soloing on three take-offs and landings. Finally to France, the summer of '44, at the controls of a C-47.

I read on with fascination. Yes, and admiration. The "greatest generation" makes its bow, fights through to the end. But all is of a piece: the life before, the life now; the neighborhood merely extended overseas and into cockpits, taken into the skies over Holland and France.

And it is good: good to remember, good to have affirmation of this character; to know all that my neighbor Fred stood for, and his friends and sweethearts during a time like our own and yet utterly dissimilar to our own in so many urgent ways, not all of them economic. Growing Up in the Park Cities helps us stand between these two times and places, and to see, and to learn.

Learn what? Well, this, among numerous other things that concern those times, those people: We have so much more than they had. And we have so much less.

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MY NEIGHBOR FRED by Bill Murchison Print E-mail
by DallasBlog.com    Tue, Jan 17, 2006, 12:34 PM

I used to live across the street from Fred Freeman -- in a metaphysical sense, I mean: Fred's mother, Corinne, still residing in the house where he grew up; the neighborhood itself looking much as it had in the '20s, when the first houses were erected, the streets laid out, the sidewalks paved, the hackberry trees planted.

Thanks to reading Growing Up in the Park Cities: Life in the 1920-1940s, his very touching, thoroughly wonderful memoir of those days, I now find Fred more deeply rooted on "our block" than ever before: the block he left decades ago but, strangely, never left entirely.

The imprint of people who have been in a place...really been there, through up times and down; laughing, playing, gardening, breakfasting, sleeping, drinking: such imprints go deep. You don't readily efface them, nor will McMansions, or the demise of the hackberry trees, hide their traces. There remains...the neighborhood. There remains what happened there all those years ago.

Life happened. What you find out, from Growing Up in the Park Cities is how life was lived back when there were still porches and detached garages and rotating sprinklers flinging water on modest if meticulously tended plots of ground. It was the time from the Roaring '20s to World War II, and fires had to be lighted on cold winter mornings. Beds, placed in corners, were angled toward the center of the room for maximum climatic advantage. "[I]f you had a car, there was only one per family. The deep Depression had removed so much money and jobs from the people, and things were so bad that the only way to look was UP! So up we looked with great anticipation for the new and better cars, faster airplanes, and more take-home profit for dear old dad."

There were bicycles with horizontal bars "good for girls to sit on and ride sidesaddle with an arm around your neck." And a game of Spin-the-Bottle, interrupted by the discovery of two eyes at the windows, belonging to the mother of a participant. And 1931 Bell standing model phones, so heavy to hold they shortened conversations. And paper routes "in the fresh air, rain, snow, and ice, 100 + degrees heat or freezing cold." And the Texas Centennial: "a fantastic land of beautiful art deco buildings marching along on both sides of a 700-foot-long reflecting pool of water," with lighting that made night seem like day." And picnics at White Rock Lake -- chips, games, cold drink, and g-i-r-l-s, "a big full moon rising through the trees or across the lake, and with a warm beautiful girl snuggled by your side."

Then the war: the neighborhood left, for a time, to its own devices and divine providence. A stint with the Army Air Corps. Flight school in California and, at last, at long last, the sublime moment, two weeks after the 21st birthday, flying solo for 25 minutes, soloing on three take-offs and landings. Finally to France, the summer of '44, at the controls of a C-47.

I read on with fascination. Yes, and admiration. The "greatest generation" makes its bow, fights through to the end. But all is of a piece: the life before, the life now; the neighborhood merely extended overseas and into cockpits, taken into the skies over Holland and France.

And it is good: good to remember, good to have affirmation of this character; to know all that my neighbor Fred stood for, and his friends and sweethearts during a time like our own and yet utterly dissimilar to our own in so many urgent ways, not all of them economic. Growing Up in the Park Cities helps us stand between these two times and places, and to see, and to learn.

Learn what? Well, this, among numerous other things that concern those times, those people: We have so much more than they had. And we have so much less.

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HOW GOP HOUSE MEMBERS ARE ABOUT TO STEP IN IT BY ELECTING ROY BLUNT AS MAJORITY LEADER by Ken Molber Print E-mail
by Special to DallasBlog.com    Mon, Jan 16, 2006, 05:17 PM

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Congressman Roy Blunt
For an instant it looked safe to wade back into Washington, that cesspool of corruption created by Tom DeLay and others like him. The effluent seemed to subside with DeLay’s abdication and uber-lobbyist Jack Abramoff’s guilty pleas. But now, like a sewer line break on Sunday, word flows down from the Hill that GOP House members are poised to name Roy Blunt of Missouri as DeLay’s successor as House Majority Leader. Blunt says he has the votes to win.

I hope so. I’m for Blunt, too. I like to see the Republicans step in it, particularly when it serves a public purpose and not merely a partisan one. Unless the Republicans get their olfactory sense repaired before their Party caucuses in February, they are going accomplish this smelly deed all by themselves, meaning they won’t even be able to blame Bill Clinton.

Please don’t fault me for being uncharitable, which I freely admit to being. After all, we Democrats have stepped in a cow paddie from time to time—although not into a turd of this magnitude in some time—and when we did I never detected any sympathy from the Grand Old Party of DeLay, Abramoff, Pat Roberston, Ralph Reed, Grover Norquist, Jerry Falwell, et al. You know, those God-fearing, law-abiding, reasonable people who are the Republican Party of the 21st Century.

Simply put, I do not know of any other viable Republican representative who comes closer to being Tom DeLay than Roy Blunt. I say there is no other viable DeLay look-alike because potential alternatives like former Republican Congressman Duke Cunningham is on his way to the Uncle Sam Hotel and Rep. Bob Ney (R-Ohio), known as "Representative #1" in the Abramoff court filings, just walked the plank, "temporarily," he claims, on his chairmanship of the House Administration Committee. If he’s not forced out of Congress entirely, which he should be, I’ll be surprised. Thus, their unavailability whittles the ranks and leaves Blunt as the top contender.

In a previous column, I stated that DeLay and Blunt were joined at the hip; the new boss will be no different from the old one. If the new boss is Roy Blunt, there is ample evidence to support that statement, or, as my dad would have concluded after surveying the landscape, "That looks about right to me."

DeLay brought Blunt into the House Republican leadership in 1999 as his chief lieutenant, then greased his way to the majority whip position when DeLay stepped from there to the majority leader’s role. When DeLay was indicted, Blunt assumed DeLay’s job as "temporary" majority leader. (Someone needs to tell Ney what "temporary" means in the real world. Ney is fish food.)

From the get-go, Blunt adhered to the DeLay playbook for being a money changer in the temple. Like DeLay, he is a lobbyist’s congressman, jetting about here and there, at corporate expense, then voting for the major corporate interests he is literally in bed with. It’s really a family affair. Blunt divorced his wife of 31 years (that may make no difference to some of you so-called "family values" people, but it does to me) and married a lobbyist for Altria Corporation, which owns Philip Morris, one of the tobacco giants that have contributed thousands to Blunt in money and air fare. Coincidentally, Blunt’s son Andrew is also a lobbyist for Altria, just like his new stepmom was until recently, and for SBC Communications, too, which is also a major contributor to Daddy. Sound a little bit like DeLay, who used the power of his position to pay his wife and daughter from ill-gotten gains?

And then there’s those other pesky connections between DeLay and Blunt, like Jack Abramoff, the K Street Project (one of the most pernicious political schemes I’ve ever seen), the trading of funds between DeLay PAC and Blunt PAC, and the very recently defunct Alexander Strategy Group (ASG), a lobbying firm formed by DeLay’s former chief of staff, Ed Buckham, in which both DeLay and Blunt were major stakeholders. DeLay’s wife was even "employed" by the firm at a hefty salary, although she performed no substantial work. DeLay’s head political honcho, the now-indicted Jim Ellis, ran both DeLay’s PAC and Blunt’s PAC, and Blunt has given Ellis $10,000 for his criminal defense.

Like DeLay, Blunt filters senior congressional and political aides into the lobbying world—creating tailor-made cahiers for the dispensation of corporate political money and perks to him and his supporters. And like his mentor, Blunt assisted Abramoff in defeating efforts to eliminate sweatshop conditions in the Northern Mariana Islands—conditions that even former right-wing Alaska Sen. Frank Murkowski found so deplorable that he introduced and passed in the Senate legislation to undo this continuing travesty, only to have the legislation run fatally into Abramoff, DeLay and Blunt on the House side. If you want to see what the Republicans are stepping into with Roy Blunt, look at the just-released report by Public Citizen, no slouch of an organization. You can link here for the report.

Republican House members, please elect Roy Blunt as your next majority leader. He deserves it and so do you. Jack Abramoff—in fedora and trench coat, the gangster of the Hill—joined by the Tom DeLays and Roy Blunts—faux hair, face fixes, cigars and dripping with largesse, the Boss Tweeds of our new world: all odiferous names synonymous with corruption. The public needs Roy Blunt, too. It will enable them to better see and smell what’s been going on in their town. Maybe they will get a face full of the whoring taking place on their tab and do something about it come November.

 

Like hogs wallowing in their filth, the Republican House members who support Blunt can’t smell the stink because they’ve been in the sty too long. I’m betting that the American public will not like the aroma.

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REPLACING TOM DELAY by Tara Ross Print E-mail
by DallasBlog.com    Mon, Jan 16, 2006, 02:38 PM

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Tom Delay
"Did we [Republicans] change Washington or did Washington change us?"

The question came from Rep. John Shadegg (R-AZ) this weekend, as he was interviewed by news anchor Chris Wallace on Fox News Sunday. Wallace was interviewing each of the potential replacements for former House Majority Leader Tom DeLay (R-TX).

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Rep. John Shadegg
Shadegg’s question is a good one. He may be the only candidate in the race for Majority Leader who has not only the courage, but also the desire, to tackle the issue seriously.

Many Dallasites probably have not heard of Shadegg, a congressman from Arizona’s 3rd congressional district. Shadegg was first elected during the Republican takeover of Congress in 1994, and he is well known among fiscal conservatives for his commitment to restrained spending, low tax, and small government principles. Although many in Washington have since lost their stomach for the revolutionary principles espoused in the Republicans’ 1994 Contract with America, Shadegg never did. Indeed, from 2000 to 2002, he served as chairman of the Republican Study Committee, a group of the House’s most conservative Republican congressmen.

But why would a relatively low-profile congressman from Arizona suddenly find himself thrust into the race for House Majority Leader?

Simple. Many perceive that the other contenders in the contest, Rep. Roy Blunt (R-MO) and Rep. John Boehner (R-OH), will not offer the Republican Party the fresh start that it needs in the face of recent bribery and lobbying scandals.

The election of Roy Blunt as Majority Leader would not—could not—be a true departure from DeLay’s leadership of the House. To the contrary, Blunt is a protégé of DeLay. He was appointed to the position of chief deputy whip, then Majority Whip, at the urging of DeLay. He achieved the former in 1999, despite the fact that other congressmen then had more seniority and more experience. A May 2005 Washington Post article suggests that Blunt’s quick ascent in the chain of Republican leadership was the result of his ability to reach out to D.C. area lobbyists.

Further confirmation of Blunt’s close association with the tactics of the DeLay era was heard last September. When Blunt was chosen to serve as acting House Majority Leader pending resolution of DeLay’s legal woes, Rep. Dana Rohrabacher (R-CA) described the selection process as "very similar to a battlefield situation where a leader has been wounded and taken out of battle." The party, Rohrabacher concluded, decided to "stick with the chain of command." What makes some Republicans think that Blunt can now abandon the status quo and overcome recent Republican shortcomings?

He is unlikely to do so.

Similarly, John Boehner is an establishment candidate who will be unable to give Republicans the fresh start that they need. Boehner currently serves alongside Blunt as assistant Majority Whip. Boehner, too, finds himself mired in relationships with lobbyists. Consider an action that he took in 1995. As the House debated the possibility of ending subsidies to the tobacco industry, Boehner distributed checks from tobacco lobbyists to congressmen on the House floor. Boehner has subsequently labeled this action "a mistake," but shouldn’t we be disturbed that he considered such an act acceptable in the first place?

Additionally, Boehner takes more privately financed trips than most federal legislators. In the past five years, Forbes reports, Boehner has traveled on 31 trips financed by special interest groups. His wife accompanied him on 22 of these trips. Moreover, Boehner’s campaign coffers have benefited from the generous contributions of student-loan companies, such as Sallie Mae. Some allege that Boehner has returned the favor by protecting these lenders from the ramifications of proposed spending cuts. Boehner’s office denies any relation between contributions and legislative action.

Perhaps the two are unrelated. But, if so, why did Boehner tell an annual meeting of the Consumer Bankers Association, "Know that I have all of you in my trusted hands. I’ve got enough rabbits up my sleeve"?

The differences among Blunt, Boehner, and Shadegg are stark, indeed. Blunt and Boehner have been intimately involved in recent failures of congressional Republicans: The massive new prescription drug entitlement, out-of-control spending and earmarks, and close ties with ethically challenged lobbyists such as Jack Abramoff. By contrast, Shadegg’s connections to lobbyists are limited, and he was one of a handful of Republicans to vote against the massive prescription drug entitlement. Impressively, he refused to earmark funds for his district in last year’s federal highway appropriations bill.

Blunt, Boehner, and Shadegg each claim to recognize the need for reform in the House, but Shadegg is the one offering specific and numerous proposals to tighten lobbying rules, limit earmark spending, and change House procedures that have facilitated an out-of-control budget process. Most importantly, he is the one who practices what he preaches about spending restraint.

At least one Dallas-area congressman, Jeb Hensarling, has already endorsed Shadegg for Majority Leader. Hensarling is to be applauded for his initiative and bravery in endorsing Shadegg early, despite (I would imagine) much pressure from House leadership to stay with the status quo.

We should encourage our other area representatives to follow in Hensarling’s footsteps. The Republican Party will be put on the road to recovery if Shadegg is given the opportunity to serve as House Majority Leader.

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