Green Room

Everything Inside The State

posted at 3:55 pm on June 30, 2009 by

The Obama Administration has begun paving the way for the massive tax hikes that anyone capable of coherent thought knew were coming. A clumsy attempt by the White House spokesman to dodge the issue was met by laughter from the press corps, and outrage from anyone more interested in their own future than President Obama’s political success. Maybe we’re looking at this the wrong way. We’re angry that Obama is preparing to break his pledge not to raise taxes on anyone earning less than $250k per year. However, as revealed in a recent USA Today analysis, each American household now carries over $550k of the national debt. That means we’re all receiving over twice that $250k threshold in value from the government, so Obama can raise everyone’s taxes without breaking his promise. We’re all filthy rich, and we can even rely on the government to expertly balance the checkbook for us!

We’re not simply looking at an increase in income taxes under Obama. The cap-and-trade monstrosity passed by the House amounts to a titanic tax increase on both consumers and virtually every sector of the economy, since almost all economic activity consumes energy. (If you like the idea of $6 per gallon gasoline, you’ll love paying $7 per gallon for milk at your local grocery store.) A value-added tax is being considered, which would pour another layer of concrete on top of a nearly paralyzed retail sector, and likely put an end to the Internet shopping boom, at least for American companies. I doubt it would take long for the government to institute a surcharge in the VAT tax for Internet purchases, since they are currently escaping state taxes, and that’s not “fair.” Like all other tax increases, a Value Added Tax will produce less revenue than anticipated, because it will depress the very economic activity it was designed to feed from. New taxes always produce less revenue than the government predicts, spawning further tax increases to make up the difference.

The proposed health-care takeover can also be seen as a tax hike on the medical industry, to a rate of 100% if that industry is fully nationalized under a single-payer system. Every state takeover of an industry is a tax increase, because government revenue is infinitely flexible, with every dollar swept away by the massive federal bloodstream. Any profits earned by socialized medical providers will disappear into the bottomless maw of the ever-expanding super-state. The same thing will happen with General Motors, in the unlikely event it manages to turn a profit. Anyone familiar with state lotteries has seen them sold to the voters as a wonderful new source of funding for education, then watched greedy state governments pull regular funding away from education and spend it elsewhere.

In a way, the notion of “tax and spend” is becoming obsolete, because Obama’s plan is to complete the re-definition of the relationship between citizens and their State. Prior to the 20th century, the American government was run something like a business, gaining its income by selling land, and services such as protection from piracy, through taxation on trade. When the direct taxation of income was made legal through the Sixteenth Amendment, the idea was to treat government as a necessary expense, borne by the wealthiest caste of Americans, to ensure the welfare of the most desperately poor. As tax rates increased, more working people were added to the tax rolls, and ever-larger benefits were paid out by the government, the relationship between citizen and state changed from welfare to socialism – which begins when the people paying for the benefits no longer control them. The modern liberal’s belief that anyone who desires lower tax rates is guilty of “greed” is a deliberate expression of this altered relationship. The people paying taxes have no moral right, and increasingly no practical means, to determine how much money will be assessed or paid out. The only legitimate factor is how much money the government thinks it needs, and can get away with appropriating.

Under Obama, a final transformation is taking place: the government no longer sees itself as an expense borne by its citizens. Instead, the citizens are now seen as components of the State. If the State decides to follow the religion of global warming, the citizens will be made to pay tithe, no matter what their personal beliefs are. If the State thinks only its wise stewardship can “save” the financial industry, banks will be forced to accept government money and controls. If the State believes private health insurance is not inexpensive or comprehensive enough, it will create its own insurance program… and force everyone who does not participate to subsidize it. If the State decides an auto company must be kept in business, for the benefit of a union that has essentially become a component of the State, then all other Americans will be compelled to finance that auto company. People joke bitterly about being forced to buy cars from Government Motors someday, but the situation is far more outrageous: we all work for Government Motors already, through hundreds of dollars in subsidies extracted from our tax payments. Depending on how much you earn per hour, you’ve spent ten or twenty hours working for GM this year, and they’ll probably conscript you again before the year is through.

We are passing through the outer boundary of the era when your contributions to the government can be described as a mere “tax.” Taxes, mandates, and state-run industries all add up to one thing: control. Our destination that was made inevitable when the government was allowed to begin seizing portions of Americans’ income, instead of collecting fees for essential services it provides. It’s a course that was locked in when the recipients of welfare were allowed to retain the right to vote, creating the vicious cycle of an ever-expanding dependency class that accrues more political power as it demands more benefits. Now we’ve reached the point where simply paying “welfare,” as it has traditionally been understood, is a small fraction of bloated state and federal governments. The Obama government does not even pretend to limit itself to assisting the destitute with the bare necessities of survival. It believes it has the right, and responsibility, to provide prosperity… and to trade away however much of our prosperity it thinks is necessary, to achieve other ends.

Conservatives have often taunted liberals with the infamous slogan of Marxism: “From each according to his means, to each according to his needs.” The Obama concept of government is better understood through a different quote: “Everything inside the State, nothing outside the State.” The author was Benito Mussolini. He meant what he said. So did the people who voted for the cap-and-trade bill.

Recently in the Green Room:

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

If the State decides to follow the religion of global warming, the citizens will be made to pay tithe…

True enough. It has not be proven and is only believed by those with faith.

bob4096 on June 30, 2009 at 5:10 PM

Why isn’t the 10th Amendment called into play? Why is it suppressed / ignored?

Guardian on June 30, 2009 at 6:24 PM

The solution is to starve the beast. Work in the underground economy. Or quit your job and become a dependent. That bleeds the government of your money. But if you choose to continue working in a field where you can not avoid income taxes, then you are complicit in the destruction of the republic. Sacrifice your future for the future of the nation. Quit your job.

keep the change on June 30, 2009 at 6:25 PM

Someone once wrote that the US will go under, when those on welfare realize that they can VOTE their own candidates into office. Looks like we’re there.

GarandFan on June 30, 2009 at 6:25 PM

In the words of Gomer Pyle:
“Surprise, Surprise, Suprise, Sgt. Carter…”

txmomof6 on June 30, 2009 at 6:29 PM

keep the change on June 30, 2009 at 6:25 PM

Are you serious?

davidk on June 30, 2009 at 6:41 PM

Guardian:

Over the decades, the enumerated powers of the federal government and the Tenth Amendment has been compromised. Southern pigheadedness eroded respect for states rights, and the challenges facing the country tended to focus solutions on the national government. With the advances in communications represented by the Internet, Twitter, etc, there is no longer any excuse for the concentration of power in Washington D.C. There are several states pursuing Tenth Amendment / States rights acts, including Oklahoma. Of course, the governors and attorneys general will have to man up to enforce them. Expect some fireworks. Read up on Nullification:

http://tinyurl.com/mv5spj

JackOkie on June 30, 2009 at 6:41 PM

So did the people who voted for the cap-and-trade bill

Careful! We don’t want to suggest negative things about them or that’ll make us meanies.

Lehosh on June 30, 2009 at 6:47 PM

Someone once wrote that the US will go under, when those on welfare realize that they can VOTE their own candidates into office. Looks like we’re there.

GarandFan on June 30, 2009 at 6:25 PM

This is the quote you were looking for:

Alexander Fraser Tytler
1748 – 1813
Scottish professor of history at Edinburgh University, a.k.a. Lord Woodhouselee, author of The Decline and Fall of the Athenian Republic (1776)

A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.

Very well written, and concise as usual, Dr. Zero.

Thank you!

vapig on June 30, 2009 at 6:47 PM

Someone once wrote that the US will go under, when those on welfare realize that they can VOTE their own candidates into office. Looks like we’re there.

GarandFan on June 30, 2009 at 6:25 PM

This is exactly correct, its like why should they care its not there money, they have no “skin in the game” I just wish there was a way to do something like if “If you don’t pay any taxes then you have no say in how the money is spent”

mothra on June 30, 2009 at 6:48 PM

Must admit, Glenn Beck warned us of this day 1-2 years ago. I thought he was over the top. Silly me!

Keemo on June 30, 2009 at 6:51 PM

“Taxes, mandates, and state-run industries all add up to one thing: control.”

I am sure this quote is framed in oak and under glass……

……….. and is currently hanging in the Oval Office.

Excellent post, Doc, as always…….

Seven Percent Solution on June 30, 2009 at 7:04 PM

I used to call my Reps. in D.C. all the time. I would tell them to vote this way or that. But since last week, I’ve been calling my Governor (Perry), begging him to protect me and all Texans from the Federal Government. I was literally pleading with his office not to follow what the Feds are mandating. The States are the last resort, if the States don’t start pushing back in a very real and meaningful way, then I don’t know what’s going to happen in this country. Here, let me put it this way. I go to a PCA (Presbyterian Church of America) Church. Presbyterians are not known for pitchforks. Our congregation is made up of mainly white collar professionals (mechanical engineers, architects, geologists, and even one astrophysicist). And last week’s sermon by our pastor was about defending the Gospel of Christ against all forms of oppression, focusing on freedom and Liberty, and even including Mel Gibson’s pre-battle speech in Braveheart into the service. The implications were obvious, and all in the congregation knew where he was coming from. People know that what they see coming out of D.C. is destructive, corrupting, and robust. A lot of people are nervous, and are looking for some legitimate legal apparatus to put an end to all this craziness, but are finding few outlets. THe problem is, there are just as many people cool with it all…May you live in interesting times!

Weight of Glory on June 30, 2009 at 7:08 PM

Must admit, Glenn Beck warned us of this day 1-2 years ago. I thought he was over the top. Silly me!

Keemo on June 30, 2009 at 6:51 PM

People like him have been screaming about this for years. I hope, like you, the rest of our American family wakes up to this tyranny!

I just wish there was something we could do about it. That’s the thing that is missing in all these informative lectures on how we’ve been destroyed from within – how do we fix it?

I feel very powerless at this point and no one is telling us what in the world we can do to stop this takeover. All of our institutions, including the polling place, have been destroyed. What backup do we have?

Elections are stolen or those we put in office betray us and refuse to listen to us, their constituents. Even the courts have been corrupted! What recourse do we have when the entire structure of our republic has been compromised?

vapig on June 30, 2009 at 7:09 PM

“The solution is to starve the beast. Work in the underground economy. Or quit your job and become a dependent. That bleeds the government of your money. But if you choose to continue working in a field where you can not avoid income taxes, then you are complicit in the destruction of the republic. Sacrifice your future for the future of the nation. Quit your job.”

Aha! John Galt lives!

Archimedes on June 30, 2009 at 7:09 PM

The solution is to starve the beast. Work in the underground economy. Or quit your job and become a dependent. That bleeds the government of your money. But if you choose to continue working in a field where you can not avoid income taxes, then you are complicit in the destruction of the republic. Sacrifice your future for the future of the nation. Quit your job.

keep the change on June 30, 2009 at 6:25 PM

Are you serious?

davidk on June 30, 2009 at 6:41 PM

Short of an armed rebellion and takeover of DC by the military or the people (or both… I’m open to that)… yes.

Chaz706 on June 30, 2009 at 7:15 PM

Archimedes on June 30, 2009 at 7:09 PM

There has to be a better way than that! I own my home – I can neither quit my job, nor go on welfare. They would force me out of my home with no compensation. That’s what they want! Me out on the street!

There are smart people out there – I personally don’t pretend to be one of them. Think of something else.

Besides – from what I hear, this whole welfare program is part and parcel of the Cloward-Piven Strategy of collapsing the American economy by overloading the welfare state.

Obama is following this strategy and is installing a socialist net for the eventual collapse. I refuse to accept that!

vapig on June 30, 2009 at 7:23 PM

At some point, the only way for the parasites to die is for the hosts to stop feeding them.

I lost my job in December… and I’ve been torn between getting another one and not. I’ve been doing odd jobs since and have been thinking of many other things. Lately independent metalworking has caught my eye.

And I’ve been putting the two together… challenging work perhaps… but when you can build anything… it would be a much better way to pass the time than wait for my next unemployment check… and a good way to make cash under the table.

Chaz706 on June 30, 2009 at 7:26 PM

“The tree of Liberty must be refreshed from time to time with the blood of patriots and tyrants.”
– Thomas Jefferson

trs on June 30, 2009 at 7:28 PM

Obama is following this strategy and is installing a socialist net for the eventual collapse. I refuse to accept that!

vapig on June 30, 2009 at 7:23 PM

So do I but what are our other options?

If ACORN mucks up the voting process badly enough economic or armed rebellion become our only options! And if it wasn’t just for ACORN… Obama could just try to pull a Zelaya on us.

Just keep an eye out for the health of our more conservative justices in SCOTUS.

Every time I think that this country couldn’t turn out to be closer to Chicago Thugland Government Obama pulls another trick out of his hat. I’m done with that line of thought. He’ll go all the way. He has the power to, and torpedoes be damned cause he’s going full steam ahead. No one’s had the magic combination of (a) being able to stand up to this guy and (b) be in a position to do so. The establishment of the opposition party is so mucked up that it can’t seem to determine which direction is up. The Media is keeping the masses in a lulled sleep… and at some point I feel I’m going to spontaneously wake up in a pod somewhere in Post Apocalyptic America and get welcomed to the real world…

Seriously. I feel like I’m taking crazy pills. The picture I see around me would be much more acceptable if it weren’t so devastatingly true.

Chaz706 on June 30, 2009 at 7:32 PM

So do I but what are our other options?

If ACORN mucks up the voting process badly enough economic or armed rebellion become our only options! And if it wasn’t just for ACORN… Obama could just try to pull a Zelaya on us.

Just keep an eye out for the health of our more conservative justices in SCOTUS.

Every time I think that this country couldn’t turn out to be closer to Chicago Thugland Government Obama pulls another trick out of his hat. I’m done with that line of thought. He’ll go all the way. He has the power to, and torpedoes be damned cause he’s going full steam ahead. No one’s had the magic combination of (a) being able to stand up to this guy and (b) be in a position to do so. The establishment of the opposition party is so mucked up that it can’t seem to determine which direction is up. The Media is keeping the masses in a lulled sleep… and at some point I feel I’m going to spontaneously wake up in a pod somewhere in Post Apocalyptic America and get welcomed to the real world…

Seriously. I feel like I’m taking crazy pills. The picture I see around me would be much more acceptable if it weren’t so devastatingly true.

Chaz706 on June 30, 2009 at 7:32 PM

You pretty much summed up what i’m feeling myself. The GOP be damned – they lost their way long ago. Reagan briefly woke it up, but they’ve backslided into the socialist-lite mode.

I want real conservatives to step up. We outnumber those pukes 2 to 1, yet they control everything. From local counties, schools, states, feds, courts and the WH.

They have had control in most cases for over 70 years and it’s never enough for them! I think they want to slaughter us in the streets like they did in Iran. I think they want to be able to disarm us (that’s coming next, you know) and be able to break into our homes in the dead of night.

I fear this government like I have never feared anything in my life. They should be afraid of us – not the other way around.

vapig on June 30, 2009 at 7:48 PM

keep the change on June 30, 2009 at 6:25 PM
Are you serious?
davidk on June 30, 2009 at 6:41 PM

If you are young under 30 and have a college degree I can suggest going overseas to teach English. You can get $2,000 a month, is more than many jobs in US. If you have a skill that is needed overseas go for it. But try and get local contract and get paid in local currency deposited in local overseas bank. Under 70K USD then no US income Tax. If you get local contract you can also have your retirement SS go to local country system and get it out when you leave. US, North Korea, and USA are only countries that try and tax it’s overseas corporations and employees overseas. US limit it to over 70K for person. Philippines because almost half its GNP is from remittance from its people working overseas and sending money back to their families. The unfair treatment of US companies is why US companies are at disadvantage overseas, so many former US companies are now owned by other countries to avoid double taxation. Americans are so proud that they are screwing them selfs. THE US SYSTEM IS BROKE AND NOW COMMUNIST. Don’t think you will collect SS, because it will be so little, nothing or you will die first. It piss me off how much money is stolen from each pay check for SS and Medicare. LOOK! The Congress has been ripping off your retirement money to give to people who don’t work. I have been technically disabled for years, but cannot get may self to take disability SS. I know of people who have faked mental disabilities and collect Disability SS for Life. Their Parents who was on Welfare figured it out and had their kids act retarded. It is a big scam going on in inner city projects. Section 8 is a program that gives free or low housing rent to people who have money and work. It don’t matter if they can afford rent or not. I witness this as landlord in Chicago. I got so sick mentally with the mind blowing scams and government giveaways I cashed out and left. It is easy to just drop out the rat race and live a serine life. To start a business in US is now a legal nightmare. You have to have a lawyer to start a small business. Go to a former communist country or to China to be free.

Ed Laskie on June 30, 2009 at 8:07 PM

Fascism denies, in democracy, the absurd conventional untruth of political equality dressed out in the garb of collective irresponsibility, and the myth of “happiness” and indefinite progress

Are we upwardly impoverished to provide progess for the vargant?

ericdijon on June 30, 2009 at 8:42 PM

Ed Laskie on June 30, 2009 at 8:07 PM

Exactly what I plan on doing. If this Statist idiocracy wants to crush the individual under the weight of the state, I’m out.

daesleeper on June 30, 2009 at 9:26 PM

vapig on June 30, 2009 at 7:09 PM
Elections are stolen or those we put in office betray us and refuse to listen to us, their constituents. Even the courts have been corrupted! What recourse do we have when the entire structure of our republic has been compromised?
.
.
Honduras apparently has figured out an answer to this question you have posed. I sure hope it does not come to this here is the USA, but I fear it may. I am now sure that Obama is determined to bring the country down from within.

Ghostbuster on June 30, 2009 at 10:58 PM

“The solution is to starve the beast. Work in the underground economy. Or quit your job and become a dependent. That bleeds the government of your money. But if you choose to continue working in a field where you can not avoid income taxes, then you are complicit in the destruction of the republic. Sacrifice your future for the future of the nation. Quit your job.

keep the change on June 30, 2009 at 6:25 PM”

I agree. Conservatives usually are too proud to take “entitlement” benefits. One way out of this is to push this rush to collectivism over the edge by getting money from the government as fast as they are taxing you. At some point, this dumb beast will have to be starved to death. The sooner, the better.

Star20 on June 30, 2009 at 11:03 PM

Weight of Glory on June 30, 2009 at 7:08 PM

Good luck with getting Perry involved. He wouldn’t get involved even when a Texan soldier, on Texas soil, asked for help to keep the Federal Government out of his personal gun locker. I quote, “he has no jurisdiction” claimed an aide, even though the issue involved private property outside any Federal reservation. No law was violated by the soldier. He crossed no line to give the Federal government cause to gather information about his personal firearms. But try to gather the information they did, by coercion. The governor declined to offer any recouse of action the soldier might take to rectify the situation. It just wasn’t any of his business, you see.

Limerick on June 30, 2009 at 11:43 PM

Under Obama, a final transformation is taking place: the government no longer sees itself as an expense borne by its citizens. Instead, the citizens are now seen as components of the State.

Great! I am now going to be a member of Mao Ohmama’s ant colony.

If the State decides to follow the religion of global warming, the citizens will be made to pay tithe. no matter what their personal beliefs are.

Rather like the Catholic Church’s old “sin tax” with the “carbon credits”. Can atheists get an exemption?

MB4 on July 1, 2009 at 1:52 AM

“Everything inside the State, nothing outside the State.” The author was Benito Mussolini. He meant what he said. So did the people who voted for the cap-and-trade bill.

The audacity of hope was for his campaign
Supporting tyranny and thuggery are for his reign
His candidacy was rather like that of a Henry Houdini
His presidency is shaping up to be much more like that of a Benito Mussolini

Although he tries to slip it all in under another guise
To all his fascist action most foul we must still be wise
In spite of all the Houdini lies
Dancing in Obama’s Mussolini eyes!

MB4 on July 1, 2009 at 1:55 AM

The keystone of the Fascist doctrine is its conception of the State, of its essence, its functions, and its aims. For Fascism the State is absolute, individuals and groups relative.
- Benito Mussolini

MB4 on July 1, 2009 at 1:57 AM

Seriously. I feel like I’m taking crazy pills. The picture I see around me would be much more acceptable if it weren’t so devastatingly true.

Chaz706 on June 30, 2009 at 7:32 PM

I know it’s small consolation but I know exactly how you feel. It’s like I’ve woken up in some bizarre alternate reality America. Seriously. We’ve got an utterly servile, fascistic media laying down for a radical, anti-American president and people are too busy watching crap tv and getting fat as pigs off of the latest fast food “value meal” to even notice. We’re pretty seriously screwed.

Django on July 1, 2009 at 3:02 AM

Stunningly, a LOT of capitalist, working, productive people voted for this disaster of a dictator we now have.

Will they wake up?

Is it too late?

stenwin77 on July 1, 2009 at 5:11 AM

the government no longer sees itself as an expense borne by its citizens. Instead, the citizens are now seen as components of the State.

Yet another element of fascism.

Well written Dr. Zero. I hope you’re in my section of Gitmo.

rbj on July 1, 2009 at 7:31 AM

Y’all are missing a pretty important piece of this puzzle: the largest beneficiaries of the welfare state are those at the top of the economic ladder. The bankers and high finance folk drop a relative pittance into the campaign coffers of the pols, and get to write the laws and regulations that allow them to plunder the taxpayers. They pump up the real estate and market bubbles, and then swoop in to buy up the assets at pennies on the dollar after the evitable crash. Any losses they experience are paid back by the taxpayer through government bailouts engineered by their minions in Congress and the White House. Who do you think owns the Federal Reserve (which is a privately held entity, but the way)? Its stock is mostly held by JP Morgan, Citi group, etc. So, in essence the owners of the Fed provided themselves hundreds of billions to ‘save’ themselves from well-deserved bankruptcy. Neat trick.

So, yes, the small time, lazy recipients of re-distributed wealth are part of Obama’s target audience, but the big money is being stolen from right beneath our noses. This has been happening since the 1913 Federal Reserve Act through administration after administration–GOP and Democrat alike.

If you want to get exercised, get exercised about the transnational robber barons who own this country and who are moving us inexorably towards a stateless, one world kleptocracy of the fabulously wealthy. Obama is just the latest pony they’re riding.

PD Quig on July 1, 2009 at 9:50 AM