1.) I didn’t pay any taxes this year! This irritating myth, often uttered around in early April, stems from a confusion between one?s tax burden throughout the year and any additional taxes one must pay by April 15th if they didn’t pay enough earlier in the year. I didn’t pay usually means I didn’t have to pay any more to Uncle Sam on Tax Day.

2.) No, I really didn’t have a tax burden this year! That’s certainly possible. Many lower-income and lower-middle class folk don’t pay federal income taxes especially if they have children. Federal income taxes are paid almost exclusively by those in the upper half of earned income. But that’s at the Federal level. What about state and local income taxes? In Indiana and Kentucky, many hard-working people in the lower income brackets have to cough up money to support state government including many below the poverty line.

3.) No, I didn’t pay any state or local income taxes either. Well, you don’t make much money then! In any case, you still paid a significant tax on your income?through the payroll taxes for Social Security and Medicare. No wage income is exempted and there are no deductions, so the 15.3% flat tax is applied to every dollar you earn (up to a cap of nearly $94,200 in 2006). About 80% of wage earners lose more to this tax on income than its far more famous cousin, the income tax.

4.) OK, but the employer pays half of that tax, right? Not quite. Firms are often able to shift the burden of taxation. Who do you think pays the tax on gasoline? The tax is imposed on firms and they cut a check to the government, but they easily pass on that burden to consumers through higher prices. In a similar manner, firms pass on the cost of the Social Security tax to workers through lower wages.

5.) Well, at least the corporations are paying their share. Yes and no. Again, companies will pass the burden to consumers as much as the market allows. Beyond that, a corporation is made up of people so the extent to which the burden remains with the firm, it will be shared by workers and owners/shareholders. Many taxes start with corporations but are transmitted to consumers, workers, and shareholders: sales taxes on most items and special taxes on everything from cigarettes to liquor, from telephones to recreational vehicles. And don’t forget about tariffs taxes on all sorts of foreign-produced goods.

6.) Well, taxes could be worse. Yes and they probably will be. Whatever one thinks of current taxes, things are actually worse because of government debt and unfunded mandates. Debt must be repaid?and government debt must be repaid through higher future taxes. Unfunded mandates like Social Security and Medicare (tens of trillions of dollars in promised payments) must be paid through future taxes or defaulted upon. So, save up now and support politicians who courageously address these difficult topics!

7.) Of all tax reforms, the flat income tax would be the worst since it’s regressive. Nope. The flat income tax has a number of merits, including the elimination of loopholes and greatly reducing the amount of time spent filling out forms. Beyond that, a flat tax is at least proportional the same marginal tax rate is applied above some exempted income level. Or using the common definition, a flat tax is progressive; the average tax rate would rise as income increases.

Assume a tax system with a 20% marginal tax rate applied to all income earned above $30,000. Someone earning $30,000 would pay no taxes a 0% average tax rate. Someone earning $40,000 would have $10,000 in taxable income (above the $30,000 of exempted income), pay $2,000 in taxes, and face a 5% average tax rate. Someone earning $100,000 would have $70,000 in taxable income, pay $14,000 in taxes, and face a 14% average tax rate.

Imagine how much easier life could be with a less complex and burdensome tax system. Or maybe you should let your imagination roam after you finish filling out your 1040s this year. It might be too frustrating to think about until your task is done.

D. Eric Schansberg
Professor of Economics, Indiana University (New Albany)

Adjunct Scholar, Indiana Policy Review

Author, Turn Neither to the Right nor to the Left: A Thinking Christian?s Guide to Politics and Public Policy

Reposted from our friend’s blog at http://lpinscr.blogspot.com/2007/04/schansberg-on-seven-myths-about-taxes.html

Andrew Thomas sent out a similar mailing for his race, but the incumbent in his race voted for budgets in excess of 15 billion dollars in new spending since she took office….Andrew’s mailing.

Montpelier: The Vermont Libertarian Party announced the survey results of local officials for 2006. There were 12 questions ranging from eminent domain to death with dignity. Responses were received from 31 towns across Vermont.

Hardy Machia, Chairman of the Vermont Libertarian Party, stated, “The survey responses highlight the need for a state government and party that better represents the respondents’ views.

Nearly all survey respondents wanted much tougher eminent domain restrictions. Only one respondent agreed with the weak bill passed by the Vermont Legislature this year.

Seven out of ten respondents thought spending should be reduced instead of raising gas taxes. A backlash of protest and some moderate leadership in the Senate removed the gas tax increase passed by the Vermont House.

Nearly all survey respondents thought we needed major reforms in health care, but were split 40-60 on whether a single payer system or free market system was the better way to accomplish those goals.

Support for Death with Dignity and treating marijuana like alcohol both had strong support, with over 80 percent supporting both these reforms.

Zero respondents thought our school system was working great. Getting out of No Child Left Behind received majority support, as did, public and private school choice, limiting spending to the rate of inflation, and shifting funding to an income tax instead of the controversial Act 68 & 68 property tax distribution.

Seven out of ten respondents thought Vermont’s state budget should be 4 billion dollars or less, with a quarter of respondents believing spending should be rolled back to 2002 levels, 3.3 billion. The Governor and Legislature passed a budget that was a 400 million in excess of 2005′s budget of four billion.

The open-ended question on the biggest issue facing their town revealed that education funding is still a top priority for many towns, followed by roads.

The Vermont Libertarian Party has been active in Vermont politics for over 30 years. Vermont Libertarians have served in local office throughout the state. The National Libertarian Party was founded in 1971 and is the third largest political party in the United States. Millions of Americans have voted for Libertarian Party candidates in past elections throughout the country. Libertarians believe the answer to America’s political problems is the same commitment to freedom that earned America its greatness: a free-market economy and the abundance and prosperity it brings, a dedication to individual liberties and personal freedom, and a foreign policy of non-intervention, peace, and free trade.

-30-

http://www.vtlp.org/main/media/ audio/WDEV406%20052406.mp3

WDEV406 052406

Libertarian Platform

Most people don?t pay much attention to Vermont?s tiny Libertarian Party, but they really ought to read the new Libertarian Platform. Her are a few juicy quotations from it.

?We believe, ? it starts out, ?in competitive free enterprise as the source of wealth for our people, jobs for our labor force, and the tax base necessary to support the legitimate demands of government. Confusing regulations and prolonged and often arbitrary enforcement has weakened the economic competitiveness of Vermont businesses. We will identify regulations that are outdated and unnecessary, and secure their repeal. We will identify regulations that ought to be rewritten, and we will rewrite them so they are strict in protecting consumers, business, our communities, and our environment, but certain in their requirements, reasonable in their demands, and swift and fair in their application. ?

On taxation, the platform says, ?We will stop the growth of state government and permanently cap the income tax rate at 2006 levels, rollback the sales tax rate to 5 percent, and cap rooms and meals tax at 9 percent. We will adopt a Taxpayer’s Bill of Rights to limit the growth of government to the rate of inflation, and to require a voter referendum to raise any tax.

The platform concludes with the section on Liberty. It concludes ?We will pass up every opportunity to tell peaceable, independent Vermonters how to live their lives.?

Now is that a great platform, or what?

This is John McClaughry ? thanks for listening.

John McClaughry has been President of the Ethan Allen Institute since its founding in 1993. He was Legislative Aide to Vermont Senator Winston Prouty, 1965-67; a Fellow of the Institute of Politics, JFK School, Harvard University, 1967-68; a member of the Vermont House, 1969-72; Senior Policy Advisor in President Reagan’s White House Office of Policy Development, 1981-82; member of the Vermont Senate 1989-92; and Republican candidate for Governor of Vermont, 1992. He has served on four Presidential Commissions by appointment of Presidents Nixon, Carter, and Reagan, and has been Kirby Town Moderator for the past 34 years.

(Montpelier) The Vermont Libertarian Party (VTLP) adopted a new platform at their state convention in Montpelier. Their single-page platform covers the specifics of fifteen areas libertarian legislators will work on over the course of the next few legislative sessions.

Hardy Machia, chairman of the Vermont Libertarian Party, stated, “We taken another step into the realm of practical politics with our new platform. It lays out a sensible middle ground toward more freedom, lower taxes, and smaller government-which a majority of Vermonters support.”

A few highlights of the Libertarian platform are:

1. ECONOMY: We believe in competitive free enterprise as the source of wealth for our people, jobs for our labor force, and the tax base necessary to support the legitimate demands of government.

2. TAXATION: We will adopt a Taxpayer’s Bill of Rights to limit the growth of government to the rate of inflation, and to require a voter referendum to raise any tax.

4. PROPERTY RIGHTS: We will protect the human right of private property ownership against government regulation, confiscation and eminent domain.

8. HEALTH CARE: We believe health care should be affordable and available to all Vermonters. We believe health care decisions are between patient and doctor, not patient, doctor and legislature.

15. LIBERTY: We will pass up every opportunity to tell peaceable, independent Vermonters how to live their lives.

The VTLP’s 2006 platform is available online at
http://www.vtlp.org/main/media/papers/VTLPPlatform.pdf

May 25, 2006

Vermont Libertarian Party Adopts New Platform

(Montpelier) The Vermont Libertarian Party (VTLP) adopted a new platform at their state convention in Montpelier. Their single-page platform covers the specifics of fifteen areas libertarian legislators will work on over the course of the next few legislative sessions.

Hardy Machia, chairman of the Vermont Libertarian Party, stated, “We taken another step into the realm of practical politics with our new platform. It lays out a sensible middle ground toward more freedom, lower taxes, and smaller government-which a majority of Vermonters support.”

A few highlights of the Libertarian platform are:

1. ECONOMY: We believe in competitive free enterprise as the source of wealth for our people, jobs for our labor force, and the tax base necessary to support the legitimate demands of government.

2. TAXATION: We will adopt a Taxpayer’s Bill of Rights to limit the growth of government to the rate of inflation, and to require a voter referendum to raise any tax.

4. PROPERTY RIGHTS: We will protect the human right of private property ownership against government regulation, confiscation and eminent domain.

8. HEALTH CARE: We believe health care should be affordable and available to all Vermonters. We believe health care decisions are between patient and doctor, not patient, doctor and legislature.

15. LIBERTY: We will pass up every opportunity to tell peaceable, independent Vermonters how to live their lives.

The VTLP’s 2006 platform is available online at
http://www.vtlp.org/main/media/papers/VTLPPlatform.pdf

Just before town meeting in Woodstock Hunter noticed no one was running for Grand Juror. He mounted a quick write-in campaign and got 29 votes. He needed 30 votes to win a write-in election, so he had to be appointed by the Selectmen for the position, which they did last week.

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TABLE OF CONTENTS

1. From the Chair
$73, Blog, Convention Speakers
2. Convention Schedule
3. Libertarians call on the Legislature to act on Death with Dignity bill
4. Vermont has Highest State Tax Burden in Country
5. Columnist Cal Thomas says “it’s time strong third party”
6. Calendar of Events
Apr 22, 10 M: State Committee Mtg, City Hall, Montpelier
Apr 29, 9:30AM-4PM: State Convention, Montpelier
7. Donate, Volunteer, Run for Office
8. Unsubscribe

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1. FROM THE CHAIR

Thanks to many generous supporters our 10/10/10 fund raiser is wrapping
up on April 15th. We raised another $1000 last month – putting us within
$73 of reaching our goal of $10,000. If all our readers could donate a
dollar, it would put us easily over the top. You can use PayPal to donate -
in the right hand column at http://www.vtlp.org/

When you visit http://www.vtlp.org, you will notice that we now have a
blog. Just under Upcoming Events is the Recent News section. Here you
will find something new just about every day. (If you know about RSS
feeds, then you can watch our blog at feed://www.vtlp.org/feeds/.)

Later this month:

Come celebrate with like minded Vermonters on April 29 at the Capital
Plaza in Montpelier at the Vermont Libertarian Party state convention.
We have a great line up of speakers.

• Ethan Allen travels through time to add some revolutionary gusto to
  the party.

• Rob Williams, editor of “Vermont Commons”, a monthly newspaper
  and multimedia forum championing Vermont independence ? political, economic,
  social, and spiritual.

• Martin Harris of Vermont Citizens for Property Rights
• James Dwinell, publisher of the weekly e-mail Dwinell Report.
• Professor Frank Bryan is one of Vermont best known political writers
  and humorists. Author of Real Democracy, The Vermont Papers, Real Vermonters
  Don’t Milk Goats, Vermont Quiz Book, and many others.

Register for the convention online at

http://www.vtlp.org/main/vtlp-convention.asp

Hardy Machia

Chair, Vermont Libertarian Party

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2. CONVENTION SCHEDULE

Vermont Libertarian Party Convention 2006

Capitol Plaza Hotel & Conference Center

100 State Street, Montpelier, Vermont

Saturday, April 29, 8:30 a.m. ? 4 p.m.

FOR RESERVATIONS OR MORE CONVENTION INFORMATION CONTACT:
SCOTT BERKEY AT 802-728-6211 OR BERKEYSCOTT@HOTMAIL.COM
Online Reservation Form
(http://www.vtlp.org/main/vtlp-convention.asp)

MORNING SESSION
8:30 a.m. Registration Opens
9:30 a.m. Chair?s Welcome, Recognition of VIP?s
10:00 a.m. Introduction of Attending Vendors
10:15 a.m. Nomination of Delegates to the National Convention
10:30 a.m. Adoption of Campaign 2006 Platform
12:00 p.m. Break

AFTERNOON SESSION
12:30 p.m. Luncheon (Reservations Required)
Ethan Allen travels through time to speak
2:00 p.m. Guest Speakers (Tickets Required $10)
Rob Williams, Vermont Commons/Second Vermont Republic
Martin Harris, Citizens for Property Rights
James Dwinell, Dwinell Political Report
3:00 p.m. Keynote Speaker: ?Frank Bryan
4:00 p.m. Social Hour

Lunch: Seating for lunch is by reservation only. Reservation may be
placed with Scott Berkey by calling (802) 728-6211, emailing
berkeyscott@hotmail.com?or through our online reservation form
(http://www.vtlp.org/main/vtlp-convention.asp). The price is $25 per
person if paid in advance and $30 if paid on the day of the convention.
The ticket for the speakers is included in the cost of lunch.
A vegetarian option is available.

Directions: The Capitol Plaza is located at 100 State Street in
Montpelier. Exit 8 off I-89, merge onto Memorial Drive. At second stop
light take a left onto Bailey Avenue. At intersection take right onto
State Street. Vermont State House is on your left, 1/2 block on the
Right is Capitol Plaza Hotel. The phone number is (802) 223-5252.

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3. Libertarians call on the Legislature to act on Death with Dignity
bill

March 13, Libertarian Party chair Hardy Machia spoke out in support of
death with dignity legislation that would allow people to retain the
right to make their end-of-life decisions themselves.

Libertarian Party State Chair Hardy Machia said, “Freedom starts with
the individual, and each individual is the owner of his own mind, body,
and spirit. The Death with Dignity bill respects this fundamental right
by allowing individuals to make decisions about how they want to live
their lives, and how they want to end their lives. We call on the
legislature to act on the death with dignity bill [H.168] this session.”

The Libertarian Party looks with approval on Oregon’s eight-year-old
assisted-suicide law that allows doctors to help terminally ill patients
who wish to end their lives. The Party disagrees with the Bush
administration’s argument against the Oregon law, that that hastening
death with medication violates federal drug provisions. Libertarians
believe that no federal or state provisions should truncate the
fundamental right of human beings over their own lives and bodies.

Libertarians agree with the recent U.S. Supreme Court decision rendered
in Gonzales v. Oregon that upheld Oregon’s Death with Dignity Act by a
vote of 6-3. “It is time for Vermont to pass similar legislation to take
a more libertarian approach to matters that are so intimate and personal
to our people,” Machia said.

The Death with Dignity bill [H.168] is currently in the House Human
Services Committee.

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4. Vermont has Highest State Tax Burden in Country

Burlington, Vermont — March 31, 2006

A new report says Vermonters pay more state taxes than people from any
other state.

According to the federal report released Friday, overall state taxation
rose from $1.8 billion to $2.4 billion in one year. That’s an increase
of 33%.

That pushes the per capita tax burden to $3,600, the highest state tax
burden in the country, but the numbers do not paint an entirely accurate
picture.

The new federal report is misleading. It turns out that Vermonters state
tax burden is not as bad as reported, but then again, as one expert made
very clear, Vermonters are still among the highest taxed in the country.

“One of the things that the Census Bureau did was this year was change
its methodology,” said Art Woolf, University of Vermont Professor of
Economics.

Woolf says it is the Census Bureau decision to include Vermont property
tax payments that accounts for the misleading impression that Vermonters
are paying the highest state taxes per person.

“So Vermont’s zoomed up in the rankings because it used to be that a lot
of property taxes were seen as a local tax, part of it was a state tax
and now they’ve just taken the entire property tax and put it in the
state tax which is why we’re number one in the nation in total state
taxes per capita,” explained Woolf.

Woolf points out that while state taxes may not be as burdensome as
indicated in the new report, Vermonters nevertheless remain among the
highest taxed citizens in the nation, especially individuals and
families that make income over 60-thousand dollars.

“Well we are highly taxed. We’re one of the top ten states in the
country in terms of our total taxes as a percent of the income we earn,”
said Woolf.

Maine residents pay the highest overall taxes in the nation, while New
Hampshire residents, by far, according to Art Woolf, have the lightest
overall tax burden per person.

Brian Joyce – Channel 3 News

http://www.wcax.com/global/story.asp?s=4710624

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5. Columnist Cal Thomas says “it’s time strong third party, or failing
that, another revolution”

The following editorial appeared in the Burlington Freepress. Cal Thomas
joins Alan Greenspan and others in calling for a strong third party.

Spending obscenities

By Cal Thomas

Mar 21, 2006

Not so long ago, in a country that now seems far, far away, Ronald
Reagan told the nation: “we don’t have deficits because people are taxed
too little. We have deficits because big government spends too much.”

He uttered those words in a year when Democrats controlled the House
(the body in which spending legislation originates) and the national
debt, according to the Bureau of Public Debt, was $2.3 trillion.

Last week, a Republican Senate voted to raise the debt ceiling to nearly
$9 trillion. Senators quickly passed a record $2.8 trillion budget. What
would Reagan say now? He said then, “the federal deficit is outrageous.
For years I’ve asked that we stop pushing onto our children the excesses
of our government.” He called for a balanced budget amendment to the
Constitution and labeled the budget process a “sorry spectacle.” That
Republicans are outspending the most reckless 1980s Democrat (and 1960s
Great Society Democrats and 1940s FDR Democrats) is the sorriest
spectacle of all.

The Senate vote increased the debt ceiling for the fourth time in five
years. The statutory debt limit has now risen by more than $3 trillion
since President Bush took office. That any Republican majority could
preside over such fiscally irresponsible spending ought to be grounds
for revoking their party membership.

This is mostly about politics, not terrorism. Republicans fear that only
gobs of money will endear them to voters in sufficient numbers to
re-elect their increasingly precarious majority. Why should Republicans
be re-elected when one of the major reasons the GOP exists is to reduce
the size and cost of government and free more people to do for
themselves instead of restricting their liberties through costly and
overreaching big government?

Sen. Jim DeMint, South Carolina Republican, rightly blamed
out-of-control spending on his colleagues’ political nervousness: “They
want to go and say they are helping people, but we are not helping
people when we are selling out their future.”

DeMint might have added that it doesn’t help people to cause them to
rely on and pay for ever-expanding government. Such a policy stifles
initiative and personal responsibility and discourages incentive. It
goes against the “Puritan ethic” that was one of America’s foundational
principles.

Sen. Lindsey Graham, South Carolina Republican, observed, “This budget
could be the final nail in our coffin if we don’t watch it.” Graham said
Republican spending habits are demoralizing voters: “I don’t think we
properly understand the keys to our electoral success.”

Sen. Arlen Specter, Pennsylvania Republican, defended spending an
additional $7 billion for health and education programs, claiming those
areas have lacked money in recent years. Is he kidding? The Bush
administration has sired the biggest new entitlement program in history
- a prescription drug benefit for the elderly. And let’s not forget “No
Child Left Behind,” which massively increased federal education spending
when there is no evidence of a connection between money and academic
achievement.

Perhaps the real culprit is not Congress, but us. The Pew Research
Center poll of March 14 found that only 55 percent of Americans rate the
deficit as a “top priority.” That contrasts with the 1990s when the
deficit resonated more strongly with voters. As long as we are willing
to take the money in exchange for our votes, politicians will give it to
us. This must change, not only because we are in debt up to our
eyeballs, but also because many of the note holders are, or might
become, our enemies.

Means testing for all government programs and term limits for Congress
are the answer to never-ending debt, but neither is likely to happen.

Reagan said his favorite president was Calvin Coolidge. In 1923, when
Coolidge was vice president, he said, “After order and liberty, economy
is one of the highest essentials of a free government.”

Coolidge left the presidency with a surplus. So did Bill Clinton. That a
Republican Congress and administration are engaging in such promiscuous
spending is obscene. If voting in Democrats -who in the past engaged in
deficit spending – punishes Republicans, little will change. What to do?

Maybe it’s time for a strong third party, or failing that, another
revolution.

Cal Thomas is the co-author of Blinded By Might.

Copyright ? 2006 Townhall.com

Find this story at: http://www.townhall.com/opinion/column/calthomas/2006/03/21/190629.html

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6. CALENDAR OF EVENTS

April 22 (10AM – Saturday): VTLP State Committee Meeting at City Hall in
Montpelier. Use the back door, go up stairs, Memorial Room
is on right.

April 29 (9:30AM-4PM): VTLP State Convention. Capital Plaza Hotel, Montpelier.

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7. DONATE, VOLUNTEER, RUN FOR OFFICE

To make a contribution to the Vermont Libertarian Party or to sign

your friends up for the newsletter, visit us on the web at

http://www.vtlp.org.

If you are interested in volunteering or running for office, then

contact Hardy Machia at chair@vtlp.org.

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8. LETTERS TO THE EDITOR / SUBMIT AN ARTICLE

For information or to submit news, letters, or articles, contact

Hardy Machia, Chair, Vermont Libertarian Party, chair@vtlp.org,

(802) 372-9512.

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The VERMONT LIBERTARIAN NEWS is a publication of the Vermont Libertarian

Party, PO Box 5475, Burlington, VT 05402. All Rights Reserved.

Copyright ? 2006.

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