LIBERTARIAN VIEWPOINT

I was struck this month by the insidiousness of our income tax system. This blinding flash of the obvious was brought about by a personal example, but I will use fiction to relate it. Suppose two business people were friends. Maybe one does home repair while the other does some kind of computer work. On occasion, the they work for each other. Maybe the computer person needs his roof fixed, while the repair contractor wants to do something not business related with their computer. And, being good and upstanding business men, they always pay each other with a check. Imagine that in one month they both ended up charging the other ~$600 for services rendered.

To an extremely large number of people, this would be seen as a wash. They exchanged work, they exchanged money, and everyone came out even. That neglects, however, that these two are both in approximately the same 35% combined Federal/State tax bracket. Also, being self-employed, they must pay 13.5% in FICA and medicare withholding.

So, for the privilege of exchanging their labor, the government will come in and take $291 from each of them - nearly $600 disappears into the maw of the tax collector.

I am not naive, and nothing here is a surprise to me. What rankled in my real case was the timing and similar amounts. These transactions begged for bartering, but that is, in fact, very illegal.

The thought that comes out of this is that the income tax actually functions very effectively as a hidden transfer (or perhaps a Value Added) tax. In the normal course of events, we are completely unaware of it. Consider a set of transactions among small (ie, self employed) businesses. I collect a fee and pay my 50% tax. I buy some bread from a small baker, who pays 50% on his profit. Out of what is left, he buys some wine from a small wine merchant, who pays 50% tax on his profits. and on and on.

Question to you all: what tax rate would drag the entire system to a crashing halt?

COMMENT ON ANOTHER MATTER

While not terribly Libertarian related, I want to comment on our illustrious junior Senator's recent News Journal Op Ed on the Internet sales tax. His basic argument, despite his 'clarifying' letter a few days later, is that if Internet sales aren't taxed, then people who now come to Delaware for the 'Tax Free Shopping' will go to the Internet instead, and we will lose revenue.

Okay, we all know that people come to Delaware to avoid their home state sales tax. We all know that these shoppers are supposed to file a use tax return back home and pay this tax. We all also know that no one does this. They are all, every last one of them, breaking the law in their home state.

I used to be embarrassed by the state signs on 95 at each border proclaiming Delaware to be the 'Home of Tax Free Shopping'. But I am positively humiliated to have our Senator publicly calling for a tax increase on those in the states around us in order to encourage them to come and break the law in Delaware.

ANNOUNCEMENTS

We need a copy of Adobe Acrobat. We also need some advertisements for the next First State Libertarian. Please see the Help Wanted section for more on this.

The next 'Libertarian Discussion Group' will be 11am Sunday January 11th at 'A Piece of Ireland' (enter through the door facing Rt 4 to find us most easily). The topic will be 'Poverty, Immigrant rights, the ADA - Just what are we entitled to?' Please join us to share your insights and opinions. A 'reservation' (to me) is appreciated so the restaurant knows how many tables to set.

The New Castle County monthly meetings will be in a new location this year. Most likely, the January meeting will be at the Golden Castle diner on Concord Pike. Please watch for a confirming announcement from Lisa Busch, or write her at ldbusch@yahoo.com, so you don't end up at the wrong place!

Sign up for party announcements at YAHOOGROUPS.COM The list name is LPD-Announce

LP DE IN THE NEWS

Did you make news this month? Let us know. Send any 'Letters to the Editor' (LTTE) or articles you have published to Tom Uffner (tom@uffner.com) to post on the web site. Include where and when, and copy me to be listed here.

Jim Larsen: The Arden Page, December:"Constitution Rights" (Op Ed) John Colgan: News Journal, December 28:"Supporters of bailout should send money" (LTTE)

If you are not outraged you are not paying attention -- Unknown

RESOURCES

Both of the main candidates for the party presidential nomination, Gary Nolan and Michael Badnarik, have email newsletters to keep you up on their campaigns. If you follow these, you'll be better prepared to elect your delegates to the national convention at our convention in March. Sign up at http://www.badnarik.org and http://www.garynolan.com

I have been receiving the Rational Review News Digest for several weeks now. This is a news headliner like several others I have recommended in the past. This one, however, is explicitly Libertarian oriented. Each daily issue includes both a sampling of news items and a selection of political editorials. The downside of this newsletter is that it is quite long. If you only want one digest a day, however, this could very well be the one. http://www.rationalreview.com

A couple of months ago, I recommended Ron Paul's weekly telephone message. I want to bring it up again because I have enjoyed it so much. Just call 888.322.1414 anytime. The message seems to change on Sunday night.

CANDIDATE TIPS

January - 11 months to the next election! So, what is your platform?

The state party does not have an official platform, but we do have a set of campaign issues. I want to encourage everyone interested in the State House or Senate to campaign on the gerrymandering that happened in 2002. Of course, we don't want to call it that! Rather the issue is the disenfranchisement of the Democrats or Republicans in your district. Obviously, this only applies if your opponent is otherwise unopposed. I suspect that will apply to well over 50% of the seats up for election this year.

When you register your candidacy, you will get a map of your district. Try to find one from the 2000 election and compare them. My house district (10th) went from a nice blob centered on Tallyville to a huge swath that runs from the East side of Centerville (where my state rep just happened to move before the maps were released) clear across the top of the county to Claymont, with dips here and there as needed to guarantee a good Republican seat. Obviously, the fact that the needs and interests of the Greenville/Centerville area are somewhat different from those of Claymont are irrelevant to the pols. The more important campaign point however, is that Democrats in the 10th district no longer have a vote for state rep. It is amazing to consider the angst in this country over whether or not paper ballots are disenfranchising because a few of them may not be properly counted. However, that 98% of incumbents at the Federal level will win reelection because they have been gerrymandered a safe district is not considered worth discussing - except by term limit fanatics.

As Libertarians, we should be able to appeal to both liberals (on social issues, for example) and conservatives (free markets, perhaps). (And if you are not sure how to do that, come to the breakfast discussion group.) I suggest however, that the thrust of the appeal is on the disenfranchisement. They should vote for us as a protest. Now, if you can persuade them that we have the right ideas also, you may have created a committed Libertarian voter!

HELP WANTED

In order to have our paper newsletter printed, we need to send it to the printer in PDF format. At the moment, we accomplish that via a convoluted system involving several people and the web site. A copy of Adobe Acrobat (not the reader, of course) would allow the editor to do it in one step. If you have an unused copy around your office or home a donation would be deeply appreciated! * The convention issue of the First State Libertarian is mailed to all 650 registered Libertarians in Delaware. This year, rather then the usual photocopy, it will be a professionally printed tabloid newspaper. If you run a small business (and an amazing number of the active Libertarians do), please consider placing an ad. If you deal with professionals that have Libertarian leanings, please consider asking them to place an ad. If you deal with small businesses that comprise our core constituencies (ie, gun stores, bar owners), please consider asking them to place an ad. A business card ad is only $25. Double that size (1/4 page on the old 8-1/2x11) for $50. Mail copy to Terri Lewis (tslewis@comcast.net), who can then arrange payment by credit card or check as you prefer.

Money is the life blood of a political party. It would be wonderful if we could raise some other than by begging you for it! * Do you have something you think would fit in the Libertarian Viewpoint space? Send it along. Same goes for the FSL. The convention issue, in particular, must have lots of good content. Please participate.

CALENDAR

The Libertarian Party of Delaware state board meetings are open to the public, as are all of the county monthly meetings. As things are always subject to change, please email the indicated party before attending.

NCC Discussion Group: 11am Sunday January 11th (second Sunday), A Piece of Ireland ( Chesmar Plaza, Newark) Email Lisa Busch: ldbusch@yahoo.com

NC County: 6pm Sunday January 18th (third Sunday), (Tentative) Golden Castle Diner, Rt 202 Business meeting is at 7pm; 6pm-7pm is for eating and mingling. Email Lisa Busch: ldbusch@yahoo.com

Kent County: 7pm Tuesday January 20th (third Tuesday), Dover Email Jim Conk: jconk4@comcast.net

Sussex County: 7pm Tuesday January 27th (fourth Tuesday), Bella Capri Restaura nt, Georgetown Email John Elliot: tyre@dmv.com

State Chairs Conference Jaunary 23-25, Holiday Inn, Raleigh, NC Email George Smith: chair@de.lp.org

State Board: 2pm Saturday January 31st, Thomas England House, South Smynra Email Terri Lewis: tslewis@comcast.net

LPD Convention: 10am - 5pm Saturday March 6, 2004 Holiday Inn Select; Naaman's Road at I95, Claymont, DE

National Convention: May 27 - May 31, 2004 Marriott Atlanta Marquis Hotel, Atlanta, GA

Next issue of First State Libertarian On Line deadline for editorial content: January 28th

Next issue of First State Libertarian (convention issue) deadline for content: January 6th

Join the Libertarian Party of Delaware or contribute. Visit our web site at www.de.lp.org

Thanks to Tim Young and 123clickit.com for making libertarian@123clickit.com available to us.

QUIP OF THE MONTH

Talk is cheap-except when Congress does it. The government is like a baby's alimentary canal, with a happy appetite at one end and no responsibility at the other. --Ronald Reagan