Saturday, May 28, 2011

Progressive Harmonization

What can be done to stop federal government monopolies and their continual need for power that is infringing on the rights of American citizens and corporations? The answer is that states need to fight any federal government attempts to increase power. Many conservative states have low tax rates and pro-business laws. States such as Texas, Florida, and Wyoming have no state income taxes. Twenty-Two states have “right-to-work” laws which protect corporations and employees who do not wish to be unionized. Many of these same states have other pro business laws which eliminate the influence of government and special interests from interfering into their day to day activities.

The laws of these conservative states which protect individuals and corporations from high taxes, special interests, and government bureaucracy are keeping those liberal states with anti-business laws in check. Liberal states with high individual and corporate taxes coupled with anti-business laws, such as being union friendly, are struggling during this current recession. California, New York, New Jersey, and Illinois are examples of states with anti-business laws. These states penalize hard working individuals and profitable businesses with high taxes to pay for their social entitlement programs. This has forced many businesses and individuals to reconsider their residence. Hence, many individuals and corporations are fleeing liberal states for more personal freedom that can be found in conservative states. This, in turn, has drastically reduced the tax revenue base in liberal states and the problem is being magnified during the current recession. Thus, these states are in dire financial trouble.

One could surmise that this predicament would force liberal states to rethink its tax rates and restructure its welfare programs. Yes, to certain extent it has. On the other hand, liberals are stubborn and really do not like reducing taxes on wealthy corporations and individuals at the expense of the poor. Hence, many liberal politicians are crying foul. They think it is unfair that conservative states have laws to protect residents and corporations while lacking social programs to help the needy. Thus, liberal politicians believe in a concept called “progressive harmonization”.

Progressive harmonization means that all states should be complying with similar tax rates, restrictions, mandates, and regulations for businesses and individuals. Of course, liberals believe the taxes and laws of conservative states should mimic liberal states and not vice versa. This is obviously absurd since each state should have the right to tax and regulate industry as it sees fit, right? The answer to this should be unequivocally yes. After all, why bother having states if all state laws must be uniform and consistent. All of that being stated, in this day and age, the federal government can force states to do just about anything. Think about it, the recent ObamaCare legislation is mandating citizens to buy healthcare insurance. So is it really that far fetch to think the federal government cannot force states to conform to tax and business laws? No, it isn’t!

How can the federal government force states to conform to tax and business laws? They can claim the “commerce clause” of the constitution is being violated. The commerce clause was originally drafted to prevent states from developing “protectionism” laws that may yield unfair advantages within interstate trade. Today, the commerce clause has such a broad view it has been used to control everything including intra state commerce. In fact, liberals’ broad interpretation of the commerce clause is their reasoning behind the legality of ObamaCare mandates.

So what is to stop the Supreme Court from ruling that conservative states have “unfair” taxes and laws that are violating the commerce clause since it is allowing individuals and business to move from liberal states? They can certainly argue this a form of “protectionism”. Besides, the federal government can enact state tax and business laws that each state will have to follow since federal laws are the “Supreme” law of the land.

If the federal government pulls off this coup d’ tat, it will be the end of any state rights to combat the spread of socialism and government monopolies. Yes, progressive harmonization is the ultimate goal of Obama and his posse of liberal elitists.

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