Trifecta: Tax Revenue Stays the Same Whether or Not You Raise Taxes

As  a percentage of GDP this is largely true (with some moderate exceptions when tax rates hit a low “sweet spot” on the Laffer Curve).

They leave a few details out but  this is incredibly educational.

When the rate is raised too high, not only will there be more loopholes lobbied for, but there will also be massive non-compliance. Non-compliance can come in several forms, such as just not moving their money, storing it in gold or other assets, investing it in China, or the wealth producers simply expatriate.

Bill Whittle’s analogy about government taking a smaller piece of a larger pie is spot on.

Government already blew through the $2.1 trillion debt ceiling increase! Now Obama wants another!

This has got to stop and soon or the consequences will be dire.

Al-Reuters:

The White House plans to ask Congress by the end of the week for an increase in the government’s debt ceiling to allow the United States to pay its bills on time, according to a senior Treasury Department official on Tuesday.

The approval is expected to go through without a challenge, given that Congress is in recess until later in January and the request is in line with an agreement to keep the U.S. government funded into 2013.

The debt is projected to fall within $100 billion of the current cap by December 30, when the United States has $82 billion in interest on its debt and payments such as Social Security coming due. President Barack Obama is expected to ask for authority to increase the borrowing limit by $1.2 trillion, part of the spending authority that was negotiated between Congress and the White House this summer.

Under the agreement struck in August during the showdown over the government’s debt limit, the cap is automatically raised unless Congress votes to block the debt-ceiling extension. Lawmakers have 15 days within receiving the request to vote, which is largely symbolic because the president can veto it and Congress would be unlikely to muster the two-thirds majority to override it. Moreover, the U.S. House of Representatives also is in recess until January 17.

The deal called for raising the debt ceiling by $2.1 trillion to serve the nation’s borrowing needs into 2013 and also included mandatory cuts to the federal budget deficit. Since then, the extension has been increased twice by a total of $900 billion.

The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request.

Ron Paul: US and Israel Created Hamas…

Another speech filled with half truths, he makes a good point about blowback, but bends reality to make it.

If anything Ron Paul is making an argument for knowing our enemy without the lens of political correctness.

In part, the truth part of what he says is that we helped legitimize Hamas by encouraging the election when we should have known just how radicalized the Arab street is in that part of the world.

But ……his solution is to just let the bad guys do what they want and then maybe they will not try to harm us. And also to not encourage Israel to defend itself. Both are bad ideas that will encourage the enemy.

Showing weakness to Hamas is like showing weakness to the Romulans from Star Trek, you just don’t do it.

Appeasement reflects the hope that the crocodile will eat you last – Winston Churchill 

Islamist militants make a bloody Christmas

How much longer will we tolerate this?

(Hat Tip to Christian Writer Kerri Lauterbach)

The Economist:

CHRISTMAS celebrations were wrecked for a second year running in Nigeria when a radical Islamist sect detonated bombs that killed up to 40 people and injured dozens more. Boko Haram, which has been behind almost daily killings in northern Nigeria this year, claimed responsibility for several lethal bombings on December 25th, three targeting churches heaving with worshippers for Christmas services. The deadliest strike hit St Theresa’s Catholic Church in Madalla, a satellite town about 40 km from the capital, Abuja. In December last year Boko Haram claimed responsibility for bombings on Christmas Eve in Jos, which stoked violent clashes that subsequently killed over 80 people.

Boko Haram, which means “Western education is sinful”, is demanding the wider application of sharia law in Nigeria. It used to be largely confined to north-eastern Nigeria, but lately has been growing in ambition and capability. The Christmas bombings were preceded by a suicide attack on the UN headquarters in Abuja in August, which killed 24 people.

Hours after the first attack in Madalla, a bomb rocked the Mountain of Fire and Miracles church in Jos, the ethnic and religious fault-line which divides the mainly Muslim north from the largely Christian south. Jos has endured years of outbreaks of brutal ethnic and sectarian violence.  Hundreds have died this year alone. A third explosion hit a church in Gadaka, in northern Yobe state.

These attacks followed days of clashes between the security services and Islamist militants which left at least 68 people dead. The town of Damaturu has seen some Boko Haram’s nastiest attacks. A wave of shootings and bombings there left 65 people dead on November 5th. Two explosions were reported in Damaturu on December 25th; three people died along with the bomber.