Category Archives: Cato Institute

MUSIC MONDAY Paul McCartney’s song COMING UP

Paul McCartney – Coming Up-HQ

Making of the Coming Up Music Video (Paul McCartney)

Coming Up (song)

From Wikipedia, the free encyclopedia
“Coming Up”
Single by Paul McCartney
from the album McCartney II
B-side “Coming Up” (Live at Glasgow)
“Lunch Box/Odd Sox”
Released 11 April 1980
Format 7″
Recorded July–August 1979
Genre Rock
Length 3:49
Label Parlophone (UK)
Columbia (US)
Writer(s) Paul McCartney
Producer(s) Paul McCartney
Certification RIAA (US) Gold 21 July 1980)[1]
Paul McCartney singles chronology
Wonderful Christmastime
(1979)
Coming Up
(1980)
Waterfalls
(1980)
Wings singles chronology
Rockestra Theme
(1979)
Coming Up
(1980)
My Carnival
(1985)
Back cover

Reverse side of the picture sleeve
McCartney II track listing

Coming Up” is a song written and performed by Paul McCartney. It is the opening track on his second solo album McCartney II, which was released in 1980. Like the rest of the album, the song has a minimalist synthesised feel to it. It featured vocals sped up by using a vari-speed tape machine. McCartney played all the instruments and shared harmonies with wife Linda McCartney.

“Coming Up” was a major chart hit in Britain, peaking at number 2 on the charts. In America and Canada, the live version of the song performed by Paul McCartney and Wings (released as the B-side to the single) saw much greater success.

Background[edit]

In a Rolling Stone interview, McCartney explained how the song came about:[2]

I originally cut it on my farm in Scotland. I went into the studio each day and just started with a drum track. Then I built it up bit by bit without any idea of how the song was going to turn out. After laying down the drum track, I added guitars and bass, building up the backing track. I did a little version with just me as the nutty professor, doing everything and getting into my own world like a laboratory. The absent-minded professor is what I go like when I’m doing those; you get so into yourself it’s weird, crazy. But I liked it.

Then I thought, ‘Well, OK, what am I going to do for the voice?’ I was working with a vari-speed machine with which you can speed up your voice, or take it down a little bit. That’s how the voice sound came about. It’s been speeded up slightly and put through an echo machine I was playing around with. I got into all sorts of tricks, and I can’t remember how I did half of them, because I was just throwing them all in and anything that sounded good, I kept. And anything I didn’t like I just wiped.

—Paul McCartney[2]

Former band-mate John Lennon liked the song and credited it for driving him out of retirement to resume recording.

Somebody asked me what I thought of Paul’s last album and I made some remark like I thought he was depressed and sad. But then I realized I hadn’t listened to the whole damn thing. I heard one track – the hit, ‘Coming Up,’ which I thought was a good piece of work. Then I heard something else that sounded like he was depressed.

—John Lennon, All We Are Saying, 1980[3]

I heard a story from a guy who recorded with John in New York, and he said that John would sometimes get lazy. But then he’d hear a song of mine where he thought, ‘Oh, shit, Paul’s putting it in, Paul’s working!’ Apparently ‘Coming Up’ was the one song that got John recording again. I think John just thought, ‘Uh oh, I had better get working, too.’ I thought that was a nice story.

—Paul McCartney

Live version[edit]

A live version of the song was recorded in Glasgow, Scotland, on 17 December 1979 by Wings during their tour of the UK. This version had a much fuller sound and was included as one of the two songs on the B-side of the single; the other B-side was also a Wings song, “Lunchbox/Odd Sox”, that dated back to the Venus and Mars sessions. Both B-sides were credited to Paul McCartney & Wings.

Columbia Records wanted to put the live version on McCartney II but McCartney resisted the change, wanting to keep it a solo album. Instead, a one-sided 7″ white-label promotional copy of the Wings version was included with the album in North America.

“Coming Up (Live at Glasgow)” has since appeared on the US versions of All the Best! and Wingspan, while the solo studio version is included on the UK releases.

A different live Wings recording of “Coming Up” appears on the album Concerts for the People of Kampuchea, with an additional verse that was edited out of the Glasgow version.

Chart performance[edit]

In the UK, the single was an immediate hit, reaching number two in its third week on the chart.[4]

In the US, Columbia Records promoted the live version which subsequently received more airplay than the studio version. McCartney was unaware of Columbia’s move, otherwise he might have pushed for the A-side, which he thought was the stronger version. An executive from Columbia Records explained the switch by stating “Americans like the sound of Paul McCartney’s real voice.”[2] This single became Wings’ sixth and final number one single.

I always thought the single was going to be the solo version. We did the song on tour because we wanted to do something the audience hadn’t heard before. The live version on the B-side of the single was recorded on the last night of the tour in Glasgow. In America, a lot of the disc jockeys on the top 40 stations picked up on this side and so it became the A-side in the States. It’s the B-side in the rest of the world.

—Paul McCartney

In the US, “Coming Up” reached number one on the Billboard Hot 100 and was certified Gold by the Recording Industry Association of America for sales of over one million copies.[5] Although the live version received more airplay, Billboard listed the A-side on the Hot 100 for the first 12 weeks on the chart, including three weeks at number one, before switching to the more popular B-side for the remaining nine weeks on the chart.[6]

Music video[edit]

“Coming Up” is also well known for its music video, with Paul McCartney playing ten roles and Linda McCartney playing two. The “band” (identified as “The Plastic Macs” on the drum kit—an homage to Lennon’s conceptual Plastic Ono Band)[7]features Paul and Linda’s imitations of various rock musician stereotypes, as well as a few identifiable musicians. In his audio commentary on the 2007 video collection The McCartney Years, McCartney identified characters that were impersonations of specific artists: Hank Marvin (guitarist from the Shadows), Ron Mael of Sparks (keyboards), and a ‘Beatlemania-era’ version of himself. While others such as author Fred Bronson have suggested that there are other identifiable impersonations in the video, such as Andy MacKay, Frank Zappa, Mick Fleetwood and Neil Young,[8] McCartney said the other roles were simply comic relief.[9]

The video premiered in the US on Saturday Night Live on 17 May 1980,[10] although it had already been shown on British television, on the BBC music programme Top of the Pops on 24 April 1980.[11]

Chart performance[edit]

Weekly singles charts[edit]

Chart (1980) Peak
position
UK Singles Chart 2
US Billboard Hot 100 1
Canada RPM 100 Singles 1

Year-end charts[edit]

Chart (1980) Position
Canada RPM 100 Singles 11
UK Singles Chart [12] 48
US Billboard Hot 100 7

Track listing[edit]

7″ single (R 6035)
  1. “Coming Up” – 3:49
  2. “Coming Up” (Live at Glasgow) – 3:51
    • Performed by Paul McCartney & Wings
  3. “Lunch Box/Odd Sox” – 3:54
    • Performed by Paul McCartney & Wings

Personnel[edit]

References[edit]

  1. Jump up^ “RIAA Gold and Platinum”. RIAA. Retrieved 12 October 2012.
  2. ^ Jump up to:a b c Gambaccini, Paul (26 June 1980). “Paul McCartney’s one man band”. Rolling Stone. pp. 11, 20.
  3. Jump up^ Sheff, David. All We Are Saying.
  4. Jump up^ “Official Charts: Paul McCartney”. The Official UK Charts Company. Retrieved 13 October 2011.
  5. Jump up^ “Gold & Platinum Searchable Database”. Recording Industry Association of America. Retrieved 15 August 2011.
  6. Jump up^ Billboard Hot 100 Billboard 12 July 1980: 60
  7. Jump up^ The McCartney Years DVD, Warner Music, Rhino Entertainment, 2007, MPL
  8. Jump up^ Bronson, Fred. The Billboard Book of Number 1 Hits, Billboard Books, 2003, p. 526.
  9. Jump up^ Saturday Night Live transcript, 17 May 1980 interview by “Father Guido Sarducci” with Paul & Linda McCartney. Retrieved 9 April 2008.
  10. Jump up^ “Saturday Night Live: Steve Martin/Paul and Linda McCartney Episode Summary”. TV.com. Retrieved 13 August 2011.
  11. Jump up^ “Top of the Pops 24/04/1980”. BBC. Retrieved 2015-05-08.
  12. Jump up^ http://www.uk-charts.top-source.info/top-100-1980.shtml

External links[edit]

Preceded by
Funkytown” by Lipps Inc
Billboard Hot 100 number one single
28 June 1980 – 12 July 1980
Succeeded by
It’s Still Rock and Roll to Me” by Billy Joel
Preceded by
Cars” by Gary Numan
Canadian RPM Singles Chart number-one single
5 July 1980
Succeeded by
Funkytown” by Lipps Inc

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Dan Mitchell on Obamacare Supreme Court Decision: “I’m disgusted that the Supreme Court once again has decided to put politics above the Constitution!” (Includes lots of videos and cartoons)

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Enzi statement on the Supreme Court’s King Vs. Burwell decision

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I feel compelled to comment on the Supreme Court’s latest Obamacare decision, though I could sum up my reaction with one word: disgust.

  • I’m disgusted that we had politicians who decided in 2009 and 2010 to further screw up the healthcare system with Obamacare.
  • I’m disgusted the IRS then decided to arbitrarily change the law in order to provide subsidies to people getting insurance through the federal exchange, even though the law explicitly says those handouts were only supposed to go to those getting policies through state exchanges (as the oily Jonathan Gruber openly admitted).
  • I’m disgusted that the lawyers at the Justice Department and the Office of White House Counsel didn’t have the integrity to say that handouts could only be given to people using state exchanges.
  • But most of all, I’m disgusted that the Supreme Court once again has decided to put politics above the Constitution.

In theory, the courts play a valuable role in America’s separation-of-powers system. They supposedly protect our freedoms from majoritarianism. And they ostensibly preserve our system of checks and balances by preventing other branches of the federal government from exceeding their powers.

To be sure, the courts – including and especially the Supreme Court – have not done a good job in some areas. Ever since the 1930s, for instance, they’ve completely failed to limit the federal government to the enumerated powers in Article 1, Section 8, of the Constitution.

The Supreme Court’s first Obamacare decision back in 2012 then took that negligence to a higher level.

Now we have a second Obamacare decision. And this one may be even more outrageous because the Supreme Court decided to act as a pseudo-legislature by arbitrarily re-writing Obamacare.

Here’s what George Will wrote about the decision.

The most durable damage from Thursday’s decision is not the perpetuation of the ACA, which can be undone by what created it — legislative action. The paramount injury is the court’s embrace of a duty to ratify and even facilitate lawless discretion exercised by administrative agencies and the executive branch generally. …The decision also resulted from Chief Justice John G. Roberts Jr.’s embrace of the doctrine that courts, owing vast deference to the purposes of the political branches, are obligated to do whatever is required to make a law efficient, regardless of how the law is written. What Roberts does by way of, to be polite, creative construing (Justice Antonin Scalia, dissenting, calls it “somersaults of statutory interpretation”) is legislating, not judging. …Thursday’s decision demonstrates how easily, indeed inevitably, judicial deference becomes judicial dereliction, with anticonstitutional consequences. We are, says William R. Maurer of the Institute for Justice, becoming “a country in which all the branches of government work in tandem to achieve policy outcomes, instead of checking one another to protect individual rights.

Here’s the bottom line, from Will’s perspective.

The Roberts Doctrine facilitates what has been for a century progressivism’s central objective, the overthrow of the Constitution’s architecture. The separation of powers impedes progressivism by preventing government from wielding uninhibited power.

Here’s how my Cato colleagues reacted, starting with Michael Cannon, our healthcare expert whose heroic efforts at least got the case to the Supreme Court.

…the Supreme Court allowed itself to be intimidated. …the Court rewrote ObamaCare to save it—again. In doing so, the Court has sent a dangerous message to future administrations… The Court today validated President Obama’s massive power grab, allowing him to tax, borrow, and spend $700 billion that no Congress ever authorized. This establishes a precedent that could let any president modify, amend, or suspend any enacted law at his or her whim.

Now let’s look at the responses of two of Cato’s constitutional scholars. Roger Pilon is less than impressed, explaining that the Roberts’ decision is a bizarre combination of improper deference and imprudent activism.

With Chief Justice Roberts’s opinion for the Court, therefore, we have a perverse blend of the opposing positions of the judicial restraint and activist schools that reigned a few decades ago. To a fault, the Court today is deferential to the political branches, much as conservatives in the mold of Alexander Bickel and Robert Bork urged, against the activism of the Warren and Burger Courts. But its deference manifests itself in the liberal activism of a Justice Brennan, rewriting the law to save Congress from itself. As Scalia writes, “the Court forgets that ours is a government of laws and not of men.”

And Ilya Shapiro also unloads on this horrible decision.

Chief Justice Roberts…admits, as he did three years ago in the individual-mandate case, that those challenging the administration are correct on the law. Nevertheless, again as he did before, Roberts contorts himself to eviscerate that “natural meaning” and rewrite Congress’s inartfully concocted scheme, this time such that “exchange established by the state” means “any old exchange.” Scalia rightly calls this novel interpretation “absurd.” …as Justice Scalia put it, “normal rules of interpretation seem always to yield to the overriding principle of the present Court: The Affordable Care Act must be saved.” …like three years ago, we have a horrendous bit of word play that violates all applicable canons of statutory interpretation to preserve the operation of a unpopular program that has done untold damage to the economy and health care system.

Now I’ll add my two cents, at least above and beyond expressing disgust. But I won’t comment on the legal issues since that’s not my area of expertise.

Instead I’ll have a semi-optimistic spin. I wrote in 2013 that we should be optimistic about repealing Obamacare and fixing the government-caused dysfunctionalism (I don’t think that’s a word, but it nonetheless seems appropriate) of our healthcare system.

This latest decision from the Supreme Court, while disappointing, doesn’t change a single word of what I wrote two years ago.

P.S. Since today’s topic (other than my conclusion) was very depressing, let’s close by looking at something cheerful.

I’ve commented before that America has a big advantage over Europe because of a greater belief in self-reliance and a greater suspicion of big government.

Well, now we have further evidence. Here’s some polling data from AEI’s most recent Political Report. As you can see, there’s a much stronger belief in self-sufficiency in the United States than there is in either Germany or Italy.

Polling data like this is yet another sign of America’s superior social capital.

And so long as Americans continue to value freedom over dependency, then there’s a chance of fixing the mess in Washington. Not just Obamacare, but the entire decrepit welfare state.

 

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FRIEDMAN FRIDAY Reaganomics generated much better results than Obamanomics, and Milton Friedman had a lot to do with the success of Reagan!

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Milton Friedman congratulated by President Ronald Reagan. © 2008 Free To Choose Media, courtesy of the Power of Choice press kit

Reaganomics generated much better results than Obamanomics. Milton Friedman had a lot to do with the success of Reagan.

The No-Comparison Comparison of Reagan v Obama

Have you ever wondered why, in a hypothetical match-up, the American people would elect Ronald Reagan over Barack Obama in a landslide?

And have you ever wondered why Americans rate Reagan as the best post-WWII President and put Obama in last place?

There are probably a couple of reasons for these polling numbers, but I suspect one reason for the gap is that Reaganomics generated much better results than Obamanomics.

I’ve already made this point using data from the Minneapolis Federal Reserve Bank, but today we’re going to look at some updated information from Tom Blumer, who put together a strong indictment of Obama’s record for PJ Media.

He points out that both Reagan and Obama inherited very weak economies. But that’s where the similarity ends. Reagan pushed an agenda of free markets and small government while Obama doubled down on Bush’s statism.

The results, he explains, confirm that big government is the problem rather than solution.

Obama’s economic policy, with the help of a pliant Federal Reserve, has been built on the notion that massive deficit spending and easy money would bring the economy roaring back and “stimulate” job growth.  The former strategy was tried during the 1930s. It only succeeded in lengthening the Great Depression, as the nation’s unemployment rate never fell below 12 percent. The fact that Team Obama insisted on making the same mistakes, while at the same time unleashing the federal government’s regulatory apparatus to harass the economy’s productive participants, is enough to make reasonable people question whether this president and his administration have ever truly wanted to see a genuine recovery occur. On the other hand, five years of strong, solid and uninterrupted economic performance following a serious recession is how you create a positive economic legacy. Ronald Reagan’s post-recession economy — an economy which faced arguably greater challenges when he took office, particularly double-digit inflation and a prime interest rate of 20 percent — did just that.

Those are strong words, but I think the accompanying graphics are even more persuasive.

Here’s a chart comparing post-recession growth for both Presidents.

And here’s the data on jobs, including breakdown of private-sector employment gains.

And here are the numbers for median household income. Once again, Obama is presiding over dismal numbers, particularly when compared to the Gipper.

What’s especially ironic, as I explained back in March, is that rich people are the only ones who have experienced income gains during the Obama years.

So Obama claims that his class-warfare policy is designed to hurt the wealthy, but the rest of us are the ones actually paying the price.

Let’s look at one final chart.

These poverty numbers weren’t included in the article, but I think they’re worth sharing because you can see that both the poverty rate and the number of Americans in poverty fell once Reagan’s policies took effect in the early 1980s. Under Obama, by contrast, the best we can say is that the numbers aren’t getting worse.

One final point, I imagine that some leftists will argue that Mr. Blumer is being unfair by looking only at Reagan’s post-1982-recession numbers.

That’s a fair point…but only if you think that the recession was caused by Reagan’s policies. Like most economists, I disagree with that accusation. The recession almost certainly was an unavoidable consequences of inflationary monetary policy in the 1970s.

Indeed, Reagan deserves special praise for his willingness to endure short-term pain in order to address that problem and set the stage for future prosperity. Obama, by contrast, wants continued money printing by the Fed in hopes that easy money can cure problems caused by easy money.

As you might imagine, I’m skeptical about that approach.

P.S. Here’s some snarky humor comparing the Gipper with Obama. And if you liked the story of what happens when you try socialism in the classroom, you’ll also enjoy this video of Reagan schooling Obama.

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FRIEDMAN FRIDAY We got to give Milton Friedman’s voucher system a chance!!!

We got to give Milton Friedman’s voucher system a chance!!!

Happy Birthday, Milton Friedman: Champion of Educational Freedom

July 31, 2013 at 11:30 am

Newscom

Newscom

On the late, great, Nobel Prize–winning economist Milton Friedman’s 101st birthday, it is fitting to remember his legacy of school choice and continue the fight for educational opportunity he left for us.

“A stable and democratic society is impossible without widespread acceptance of some common set of values and without a minimum degree of literacy and knowledge on the part of most citizens. Education contributes to both,” Friedman once remarked.

Friedman knew that education is essential for a free society to flourish, but he understood that government-administered schooling is not the way to achieve quality educational options for all children.

Friedman was the father of the educational choice movement, which he first conceived through the idea of school vouchers. The Friedman philosophy of education promotes educational opportunity where parents are free to choose an education that best meets the needs of their children, with money following the children to any schools of their choice: public, private, charter, virtual, or home school.

Choice releases children from government-run schools assigned to them based on their parents’ zip codes. Options such as vouchers empower parents to choose better alternatives for their children’s education. Choice improves the amount of educational options available to families and promotes competition, applying economic pressure that can lead to better performance in the public system as well.

Friedman knew that educational choice is a win-win solution for everyone.

Friedman’s legacy of educational choice continues to expand. Several states now have a plethora of educational options: school vouchers, tax credits, charter schools, online learning, and education savings accounts (ESAs).

ESAs have especially refined Friedman’s original concept of a school voucher. A family with an ESA can use 90 percent of the per-child amount of state funds that would have gone to the child’s assigned public schools to instead be deposited directly into an ESA in the child’s name. The money in the savings account follows the child and can be used by parents to finance a variety of education-related services and providers. They can, for example, use their ESA funds to pay for private school tuition, online learning, special education services, and educational therapies—all while saving taxpayer money. It is an educational option that would have made Friedman proud.

Although educational freedom continues to grow, there are still millions of children around America stuck in low-performing schools.

Friedman understood that vouchers are only a means to educational freedom:

The purpose of vouchers is to enable parents to have free choice, and the purpose of having free choice is to provide competition and allow the educational industry to get out of the 17th century and get into the 21st century and have more innovation and more evolvement.

In 2013, America faces a fork in the road: One direction is toward educational freedom; the other is toward increased centralization through one-size-fits-all efforts such as the Common Core national standards.

In honor of Friedman’s birthday, we must rededicate ourselves to the unfinished task remaining before us, the true end of his philosophy of educational choice: educational freedom in America.

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FRIEDMAN FRIDAY I never thought I would say that U2’s Bono would agree with Milton Friedman but recently he did say that capitalism gives the poor of the world the best chance for a better life!!!

U2’s Bono Speaks at GU Global Social Enterprise Event

Published on Nov 13, 2012

Musician and activist Bono spoke to more than 700 Georgetown students and leaders in the corporate, nonprofit and political sectors on Nov. 12 at an event hosted by the Global Social Enterprise Initiative (GSEI) at Georgetown’s McDonough School of Business.

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I never thought I would say that U2’s Bono would agree with Milton Friedman but recently he did say that capitalism gives the poor of the world the best chance for a better life!!!
Back in 1980 I read the book “Free to Choose” by Milton Friedman and in that book I read these words:
There is an enormous amount of poverty in the world everywhere. There is no system that’s perfect. There is no system that’s going to eliminate completely poverty in whatever sense. The question is, which system has the greatest chance? Which is the best arrangement for enabling poor people to improve their life? On that, the evidence of history speaks with a single voice. I do not know any exception to the proposition that if you compare like with like, the freer the system, the better off the ordinary poor people have been.
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Many times people come into the poor countries in Africa and they believe that big government is the answer to building a great society. That is not the case. Milton Friedman has asserted:

The fundamental principal of the free society is voluntary cooperation. The economic market, buying and selling, is one example. But it’s only one example. Voluntary cooperation is far broader than that. To take an example that at first sight seems about as far away as you can get __ the language we speak; the words we use; the complex structure of our grammar; no government bureau designed that. It arose out of the voluntary interactions of people seeking to communicate with one another. Or consider some of the great scientific achievements of our time __ the discoveries of an Einstein or Newton __ the inventions of Thomas Alva Edison or an Alexander Graham Bell or even consider the great charitable activities of a Florence Nightingale or an Andrew Carnegie. These weren’t done under orders from a government office. They were done by individuals deeply interested in what they were doing, pursing their own interests, and cooperating with one another.

This kind of voluntary cooperation is built so deeply into the structure of our society that we tend to take it for granted. Yet the whole of our Western civilization is the unintended consequence of that kind of a voluntary cooperation of people cooperating with one another to pursue their own interests, yet in the process, building a great society.

I was so impressed with this statement that I actually emailed the White House about it.

July 31, 2013 10:59AM

Bono: Only Capitalism Can End Poverty

This is a great day. For years, Bono has been something of a pain, banging on about the need for billions of dollars in Western foreign aid to Africa. I have criticized him for ignoring the real source of African poverty – lack of capitalism – on numerous occasions.

But, unlike many who hate capitalism without reservation, Bono is open to changing his mind. Here is Bono giving capitalism its due recognition during a recent speech at Georgetown University. As the musician put it, when it comes to poverty “free enterprise is a cure.”

Indeed, the evidence is overwhelming.

According to the World Bank, global poverty is declining rapidly. In 1981, 70 percent of people in poor countries lived on less than $2 a day, while 42 percent survived on less than $1 a day. Today, 43 percent live on less than $2 a day, while 14 percent survive on less than $1. “Poverty reduction of this magnitude is unparalleled in history,” wrote Brookings Institution researchers Laurence Chandy and Geoffrey Gertz in a recent paper. “Never before have so many people been lifted out of poverty over such a brief period of time.”

As far as Africa goes, inflation adjusted per capita incomes rose by an astonishing 97 percent between 1999 and 2010. That is good news for Africa and for humanity. More people should recognize it.

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MUSIC MONDAY ABBA and their tax policy!!!

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One of my favorite groups growing up was ABBA. Here are some of my favorite songs:

Liberals hate tax deductions even if they are legitimate!!!

The tax code is a complicated nightmare, particularly for businesses.

Some people may think this is because of multiple tax rates, which definitely is an issue for all the non-corporate businesses that file “Schedule C” forms using the personal income tax.

A discriminatory rate structure adds to complexity, to be sure, but the main reason for a convoluted business tax system (for large and small companies) is that politicians don’t allow firms to use the simple and logical (and theoretically sound) approach of cash-flow taxation.

Here’s how a sensible business tax would work.

Total Revenue – Total Cost = Profit

And it would be wonderful if our tax system was this simple, and that’s basically how the business portion of the flat tax operates, but that’s not how the current tax code works.

We have about 76,000 pages of tax rules in large part because politicians and bureaucrats have decided that the “cash flow” approach doesn’t give them enough money.

So they’ve created all sorts of rules that in many cases prevent businesses from properly subtracting (or deducting) their costs when calculating their profits.

One of the worst examples is depreciation, which deals with the tax treatment of business investment expenses. You might think lawmakers would like investment since that boosts productivity, wage, and competitiveness, but you would be wrong. The tax code rarely allows companies to fully deduct investment expenses (factories, machines, etc) in the year they occur. Instead, they have to deduct (or depreciate) those costs over many years. In some cases, even decades.

But rather than write about the boring topic of depreciation to make my point about legitimate tax deductions, I’m going to venture into the world of popular culture.

Though since I’m a middle-aged curmudgeon, my example of popular culture is a band that was big about 30 years ago.

The UK-based Guardian is reporting on the supposed scandal of ABBA’s tax deductions. Here are the relevant passages.

The glittering hotpants, sequined jumpsuits and platform heels that Abba wore at the peak of their fame were designed not just for the four band members to stand out – but also for tax efficiency, according to claims over the weekend. Abba…And the reason for their bold fashion choices lay not just in the pop glamour of the late 70s and early 80s, but also in the Swedish tax code. According to Abba: The Official Photo Book, published to mark 40 years since they won Eurovision with Waterloo, the band’s style was influenced in part by laws that allowed the cost of outfits to be deducted against tax – so long as the costumes were so outrageous they could not possibly be worn on the street.

When I read the story, I kept waiting to get to the scandalous part.

But then I realized that the scandal – according to our statist friends – is that ABBA could have paid even more in tax if they wore regular street clothes for their performances.

In other words, this is not a scandal at all. It’s simply the latest iteration of the left-wing campaign (bolstered by tax-free bureaucrats at the Paris-based OECD) to de-legitimize normal and proper tax deductions.

So I guess this means that the New York Yankees should play in t-shirts and gym shorts since getting rid of the pinstripes would increase the team’s taxable income.

And companies should set their thermostats at 60 degrees in the winter since that also would lead to more taxable income.

Or, returning to the example of ABBA, perhaps they should have used these outfits since there wouldn’t be much cost to deduct and that would have boosted taxable income.

Shifting to the individual income tax, another potential revenue raiser is for households to follow this example from Monty Python and sell their kids for medical experiments. That would eliminate personal exemptions and lead to more taxable income.

Heck, maybe our friends on the left should pass a law mandating weekend jobs so we could have more income for them to tax.

Though I’m not sure how that would work since the statists are now saying Obamacare is a good thing because it “liberates” millions of people from having to work.

I’m not sure how they square that circle, but I’m sure the answer is more class-warfare tax policy.

P.S. If you want to a simple rule to determine what’s a legitimate tax deduction, just remember that economic activity should be taxed equally (and at the lowest possible rate). That’s why businesses should have a cash-flow tax, and it’s why households should have a neutral system like a flat tax or national sales tax.

P.P.S. Though it would be nice if we had the very limited government envisioned by the Founding Fathers. In that case, we wouldn’t need any broad-based tax whatsoever.

P.P.P.S. A very low tax rate is the best way of encouraging taxpayers to declare income and minimize deductions. Sweden Individual Income tax ratesWhen ABBA first became famous, the top personal tax rate in Sweden was at the confiscatory level of about 80 percent and the corporate tax rate was about 55 percent. With rates so high, that meant taxpayers had big incentives to reduce taxable income and little reason to control costs.

After all, a krona of deductible expense only reduced income by about 20 öre for individual taxpayers.

Corporate taxpayers weren’t treated as badly, but a rate of 55 percent still meant that a krona of deductible expense only reduced after-tax income by 45 öre.

But if the rate was very modest, say 20 percent, then taxpayers might be far more frugal about costs (whether the cost of uniforms or anything else) because a krona of deductible expense would reduce income by 80 öre.

By the way, the United States conducted an experiment of this type in the 1980s and the rich wound up declaring far more income to the IRS.

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It is sad that we are heading to where Sweden used to be and they are heading to where we used to be. Here is a great article from the Heritage Foundation:

Anthony B. Kim

April 16, 2012 at 5:30 pm

Sweden is known for, among other things, Swedish meatballs, the pop group ABBA, and IKEA.

Well, here is another thing that Sweden should be recognized for: tax cuts. Yes, you heard right: tax cuts.

Sweden used to tax corporations at a 60 percent rate. Now that has come down to 26.3 percent. As noted in a recent article by the U.K.-based Spectator magazine, Sweden’s finance minister, Anders Borg, who was named the most effective finance minister in Europe by the Financial Times, got something awfully right.

Since becoming Sweden’s finance minister, [Borg’s] mission has been to pare back government. His “stimulus” was a permanent tax cut. To critics, this was fiscal lunacy—the so-called “punk tax cutting” agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.… Three years on, it’s pretty clear who was right. “Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,” he says. “Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.” Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit.… He continued to cut taxes and cut welfare-spending to pay for it; he even cut property taxes for the rich to lure entrepreneurs back to Sweden. The last bit was the most unpopular, but for Borg, economic recovery starts with entrepreneurs.

The tax cuts, combined with Sweden’s highly efficient regulatory system, have raised the Swedish economy to 21st place in the 2012 Index of Economic Freedom. By sharp contrast, the regulation-loving “Yes, We Can” U.S. Administration has driven down our economic freedom ranking over the past three years and is steering our economy into “Taxmageddon.

Maybe it is time for President Obama to sit down with Sweden’s finance minister for a lesson on how to achieve economic recovery.

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Increasing Minimum-Wage will kill Jobs!!!

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Increasing Minimum-Wage will kill Jobs!!!

It’s very frustrating to write about the minimum wage. How often can you make the elementary observation, after all, that you’ll get more unemployment if you try to make businesses pay some workers more than they’re worth?

But it’s my mission to promote economic liberty, so I’ve written on why government-mandated wages can create unemployment by making it unprofitable to hire people with low work skills and/or poor work histories. And I’ve attacked Republicans for going along with these job-killing policies, and also pointed out the racist impact of such intervention.

Heck, just about everything sensible that needs to be said about the topic is contained in this short video narrated by Orphe Divougny

But I guess I’m the Sisyphus of the free-market movement because once again I’m going to try to talk some sense into those who think emotion can trump real-world economics.

Let’s start by citing some new reasearch.

States are allowed to increase minimum wages above the federal level. This creates interesting opportunities to measure what happens to employment when the national minimum wage is increased, since the change presumably doesn’t impact states that already are at or above that level.

Two economists from the University of California at San Diego took advantage of this natural experiment and examined employment changes in states that were “bound” and “unbound” by the law.

…we find that minimum wage increases significantly reduced the employment of low-skilled workers.  By the second year following the $7.25 minimum’s implementation, we estimate that targeted workers’ employment rates had fallen by 6 percentage points (8%) more in ‘bound’ states than in ‘unbound’ states.  …Over the late 2000s the average effective minimum wage rate rose by nearly 30% across the United States.  Our best estimate is that these minimum wage increases reduced the employment of working-age adults by 0.7 percentage points.  This accounts for 14% of the employment rate’s total decline over this time period and amounts to 1.4 million workers.  A disproportionate 45% of the affected workers were young adults (aged 15 to 24).

Gee, what a surprise. Fewer jobs.

But the mandated hike in wages didn’t just reduce employment.

There were also negative effects on income.

We find that binding minimum wage increases reduced low-skilled individuals’ average monthly incomes.  Targeted workers’ average incomes fell by an average of $100 over the first year and by an additional $50 over the following two years. …We provide direct evidence that such losses translate into meaningful reductions in upward economic mobility.  Two years following the minimum wage increases we study, low-skilled workers had become significantly less likely to transition into higher-wage employment in bound states than in unbound states. 

This evidence on income is particularly important because some statists make a rather utilitarian argument that it’s okay for some people to lose jobs because others will benefit.

Jared Bernstein is Exhibit A, as you can see in this debate we had for CNBC.

But let’s not just focus on numbers. There are painful human costs when low-skilled workers are priced out of the labor market.

Here are some excerpts from a column in the Wall Street Journal about a real-world example of people losing their jobs.

It’s well-established in the economic literature, if not in the minds of proponents of these laws, that the result will be job losses. Yet this empirical reality fails to capture the emotional reality of the employees who are let go, or of the business owners who had no choice but to let them go. …Michigan’s minimum wage rose in September to $8.15 an hour from $7.40 (the minimum wage for tipped employees rose 17%, to $3.10 an hour). The wage will rise to $9.25 by January 2018.

Now let’s look at the impact on a non-profit restaurant that helped disadvantaged people.

The staff at Tastes of Life was made up of recovering addicts, recently incarcerated individuals and others who would have a hard time landing a job elsewhere. Mr. Mosley explained that on-the-job offenses for which an employee would have been “gone that day” in a traditional work setting were instead used as training opportunities at Tastes of Life. …Mr. Mosley’s financial goal was to break even and use any excess funds to subsidize Life Challenge participants. After more than two years of operation on Beck Road, 2½ miles from the center of town, Tastes of Life had a steady flow of loyal customers, but rising food costs presented a challenge.Mr. Mosley and Ms. Tucker had planned to print new menus with higher prices to cover the food costs, but the September wage hike complicated those plans, in particular because the increase covered both tipped and non-tipped employees. …“If we had a $10 menu item, it would have to be $14,” Mr. Mosley said. The restaurant’s customer base of seniors on a fixed income and Hillsdale locals made this option a nonstarter. The restaurant also had to find roughly 250 new customers a month, unrealistic in a small town of about 8,300.

So the inevitable happened.

The increased minimum wage, he told me, was “the straw that broke that camel’s back,” forcing him to close his doors and lay off his 12-person staff. …with the higher wage costs, the arrangement was no longer feasible, and Tastes of Life closed on Sept. 28. …Four former employees have been able to leverage their restaurant experience to find new employment, but Mr. Mosley told me that eight are still out of work. …the loss of Tastes of Life cuts deep, because the benefit for Life Challenge participants was both valuable and is not easily attained elsewhere. These unintended consequences of a minimum wage hike aren’t unique to small towns in south-central Michigan. Tragically, they repeat themselves in locales small and large each time legislators heed the populist call to “raise the wage.”

Understanding “unintended consequences” is a key characteristic of a good economist.

Indeed, Bastiat’s wise words about the “seen” and “unseen” help to explain why Krugman makes so many mistakes.

But that’s a topic for another column (actually, a whole series of columns).

Today, the goal is simply to understand that it is pointlessly destructive to make low-skilled labor less affordable.

P.S. Given all the evidence that minimum-wage laws destroy jobs, why do some people persist in supporting such a destructive policy? In this post, I provide six possible reasons.

P.P.S. No wonder I get so frustrated on this topic.

P.P.P.S On the lighter side, here are some good cartoon on the minimum wage from Steve Breen, Lisa Benson and Henry Payne.

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“Friedman Friday” FREE TO CHOOSE “Who protects the worker?” Video and Transcript Part 4 of 7 “But when workers get higher wages and more civilized working conditions through the free market, when they get them by firms competing with one another for the best workers, by workers competing with one another for the best jobs, those higher wages are at nobody’s expense”

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A Little Café shows the USA the real cost of the Minimum Wage Increase!!!!

________ A Little Café shows the USA the real cost of the Minimum Wage Increase!!!! A Little Cafe That Sparked a Big Minimum Wage Debate Eric Boehm / @Watchdogorg / August 15, 2014 / 0 comments STILLWATER, Minn.—With its waitress and single cook, its retro-style booths with pale green cushions and its stainless steel wrap-around […]

Milton Friedman’s video and transcript from C-Span in 1994 Part 2

    Milton Friedman’s video and transcript from C-Span in 1994 Part 2 Milton Friedman on Hayek’s “Road to Serfdom” 1994 Interview 2 of 2 Uploaded on Oct 26, 2011 2nd half of 1994 interview. _________________________________________________________ Transcript below: LAMB: Where did you meet your wife? FRIEDMAN: In the first course in economics at the University of Chicago […]

Open letter to President Obama (Part 724) FEMA’s Top-Down Approach to Disaster Relief Is Fundamentally Flawed

Open letter to President Obama (Part 724)

(Emailed to White House on 6-25-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________

Ronald Reagan wanted to return more power to the states and that is what the Founding Fathers had in mine too. Here is just one example below where the federal government can cut out a lot of waste by returning disaster relief responsibilities back to the states. Instead, today we have politicians like Senator Mark Pryor trying to play politics with the issue.

FEMA’s Top-Down Approach to Disaster Relief Is Fundamentally Flawed

PrintPrint

Proponents of an activist federal government are citing the destruction wrought by Hurricane Sandy as evidence of the need for big government to manage and finance disaster relief. Of particular worry are possible cuts to the Federal Emergency Management Agency’s budget and devolution of responsibility to the states.

The federal government’s complete failure to adequately respond to Hurricane Katrina should have given proponents pause, as Katrina demonstrated that a top-down approach to disaster relief is fundamentally flawed. Federal efforts suffer from excessive bureaucratic red tape and an inherent inability to effectively coordinate the dispersion of relief supplies. State and local officials, on the other hand, are naturally closest to those affected and thus better appreciate the needs of their communities.

Another problem is that, like all federal aid, it is manipulated by policymakers for political gain. Studies have shown that presidents issue the most “major disaster” declarations in years they are up for re-election. Indeed, policymakers have apparently decided that handing out disaster relief funds is a good way to curry favor with voters as the average annual number of total disaster declarations has more than tripled since the mid-1990s.

The result is that disaster relief has effectively been nationalized. Instead of the federal government providing assistance for disasters that are truly national in scope, most declarations are made for standard events such as rain and snow storms. But why, for example, should taxpayers in, say, Maine have to subsidize relief efforts for tornado destruction in Kansas? If we allowed the states to again assume responsibility for what happens in their backyards, citizens in affected states would have more incentive to scrutinize the effectiveness and efficiency of relief efforts since they would ultimately be footing the bill.

Proponents of the top-down approach argue that the states are “financially strapped,” but so is the federal government. The problem is that the federal government tries to do too much with the result being that it does a lot of things poorly. Suggesting that the states ought to be responsible for handling their own affairs has nothing to do with callousness; it’s merely a recognition that the “locals know best.” Federal money — and the strings attached to it — won’t change that fact.

This article appeared on US News and World Report (Online) on November 1, 2012.

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Washington is lecturing us about eating too much when they are spending addicts!!!!

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Coldplay the documentary with pictures and videos (Part 6 )

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Open letter to President Obama (Part 138 B)

Real Time with Bill Maher March 16 2012 – Alexandra Pelosi Interviews Welfare Recipients in NYC Published on Mar 18, 2012 by vclubscenedotcom Real Time with Bill Maher March 16 2012 – Alexandra Pelosi Interviews Welfare Recipients __________ President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I […]

Are conservatives generous or are liberals?

Real Time with Bill Maher March 16 2012 – Alexandra Pelosi Interviews Welfare Recipients in NYC Published on Mar 18, 2012 by vclubscenedotcom Real Time with Bill Maher March 16 2012 – Alexandra Pelosi Interviews Welfare Recipients __________ Liberals like the idea of the welfare state while conservatives suggest charity through private organizations serve the […]

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Transcript and video of Republican Debate June 13, 2011 New Hampshire (Part 4)

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By Everette Hatcher III | Posted in Arkansas Times, Cato Institute, Ernest Dumas, Taxes | Edit |

Open letter to President Obama (Part 722) Welfare state may drag England down the tubes!!!!

Open letter to President Obama (Part 722)

(Emailed to White House on 6-25-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________

Welfare state may drag England down the tubes!!!!

I’ve shared this bit of political incorrect terrorism humor from England, as well asthis somewhat un-PC bit of tax humor.

But perhaps motivated by the scandal of giving welfare to terrorists, this new video is the most amusing thing I’ve seen from across the ocean.

I almost didn’t post this because it singles out immigrants from the developing world, but since I’ve shared horror stories from home-grown moochers in the U.K., as well as examples of scroungers from Europe who are robbing British taxpayers, I think I’ve covered all the bases.

But in the spirit of inclusiveness, here are other satirical videos worth sharing.

My all-time favorite video satire is from Iowahawk, featuring the Pelosimobile.

And I’ve always thought this left-wing attack against libertarianism is very funny.

And this Tim Hawkins video on the government Candyman is great, as isanother version of the song.

Speaking of Tim Hawkins, his home-schooling video is superb.

This spoof of the Chevy Volt also is extremely well done.

Last but not least, here are two brutal Obama teleprompter videos.

 

_____________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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We got to stop encouraging people to stay on welfare

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What does the welfare state do to people?

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Founders Fathers were against welfare state

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By Everette Hatcher III | Posted in spending out of control | Edit | Comments (0)

Open letter to President Obama (Part 720) Tax Freedom Day

Open letter to President Obama (Part 720)

(Emailed to White House on 6-25-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________

Tax Freedom Day

You are  from Illinois and you are  running our nation like the politicians of Illinois run their state with lots of wasteful spending and too many high taxes.

It’s time to celebrate.

That’s because we have reached Tax Freedom Day, meaning that – in the aggregate – we have finally earned enough money to pay for all the federal, state, and local taxes that will be imposed on us this year by our political masters.

But we’re not collectivists, so aggregate measures don’t really matter. Our individual tax burdens can vary considerably depending on the level and composition of our income, as well as the state in which we live.

Speaking of that, the good folks of North Dakota are the only ones actually celebrating Tax Freedom Day on this exact date. If you look at the map, Tax Freedom Day is as early as late March for residents of Louisiana and Mississippi, and as late as May for the unfortunate residents of New York, Connecticut, and New Jersey.

Tax Freedom Day Map

You’ll notice, by the way, that Tax Freedom Day is correlated with average state income. That’s one of the reasons why low-income states tend to get better scores. Simply stated, it’s hard to collect a lot of revenue from people who don’t have much money.

And a state that historically has been wealthy, like Connecticut, will probably collect a lot of revenue even if it has a good tax system (though, for the record, Connecticut has veered dramatically in the wrong direction in the past couple of decades).

So if you want to measure whether a state has a good or bad tax system, I recommend the “fiscal” and “tax burden” categories in the “Freedom Index” from the Mercatus Center. Using that measure, South Dakota gets the best score (compared to the 6th-best score using Tax Freedom Day).

P.S. If you like maps, here are some interesting ones, starting with some international comparisons.

Here are some good state maps with useful information.

There’s even a local map.

_____________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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You want a suggestion on how to cut the government then start at HUD. I would prefer to eliminate all of it. Here are Dan Mitchell’s thoughts below: Sequestration’s Impact on HUD: Just 358 More Days and Mission Accomplished March 12, 2013 by Dan Mitchell As part of my “Question of the Week” series, I had […]