E!! The True Conservative Story™

The following letter was sent yesterday to Treasury Secretary Henry Paulson:

September 24, 2008

The Honorable Henry Paulson
Department of the Treasury
1500 Pennsylvania Ave., NW
Washington, DC 20220

Dear Secretary Paulson:

As you continue to craft a financial stabilization plan with Congressional policymakers, I wanted to once again urge you to consider a move that could be executed unilaterally by the Treasury Department: indexing the basis of capital assets to inflation for purposes of calculating gain or loss.

There is a body of legal opinion which holds that the Treasury Department has the power to define “cost basis” when taxpayers calculate capital gain or loss. To date, Treasury secretaries of both parties have chosen to define “cost” as nominal purchase price.

This creates a situation whereby an asset held for many years and later sold may generate a capital gains tax liability when much or all of that gain is purely from inflation. For example, a stock purchased in 1990 for $1000 and sold today for $1676 would face a capital gains tax liability on the $676 “profit.” But in reality, 100% of that “gain” is attributable to inflation.

If the Treasury Department were to re-define “basis” to discount the effects of inflation, it would have a timely and pertinent effect on the current financial challenges. Households and businesses would be able to sell assets, unlock liquidity, and pay a much lower level of taxes. This liquidity is badly needed by capital markets. Best of all, this can be done by you unilaterally, substituting Congressional permission in favor of mere consultation.

Sincerely,
Grover Norquist

– E!! says:  This is better than nothing, but I’d like it much more if we eliminated the capital gains tax altogether.  (Yes, I realize that is probably a pipe dream.  That being the case, Grover’s suggestion is excellent.)

Tip o’ the hat to Jay Nordlinger for referencing this piece at Slate.com entitled:  “If Obama Loses” and subtitled “Racism is the only reason McCain might beat him.”

We’ve heard it before; we’re sure to hear it again.  If McCain wins, racism is the only explanation and the Decline of America is confirmed.

What a nasty Lie.

If the black nominee this year were a Republican, we wouldn’t be hearing a peep about Racism-As-Reason.  The liberal media would blithely loathe the Republican nominee, notwithstanding his blackness.  As Nordlinger points out:

The nominee would be just another Republican who needed to be defeated, like Lynn Swann, Michael Steele, or Ken Blackwell.  When Doug Wilder ran for governor of Virginia, everyone said, for months, “He would be the first black governor since Reconstruction.” It was also asserted, constantly, that the election was a test of Virginians’ racial maturity.

But earlier, the Republicans had a black nominee in my home state, Michigan – his name was Bill Lucas. No one said he would be the first black governor since Reconstruction. No one talked about the racial maturity of Michigan voters. Lucas was just another conservative politician who needed to be defeated.

And he was, by a garden-variety white liberal (Jim Blanchard).

I am sick of watching re-runs of the Whitey Hates The Black Man mini-series.  I am sick of accusations of Racism in America every time some person of color does not get what they want when they want it.  And I am sick to death of the over-simplification of issues and pseudo-polarization of our population via all Identity Politics.

If Obama loses this fall, it will be because he didn’t convince enough Americans that his governing skills and policies were better than McCain’s.  Period.

 I don’t follow NASCAR much and I know it has nothing to do with politics, but this story about cheating on Joe Gibbs’ NASCAR team is notable.  Everyone involved was suspended and fined, and Tony Stewart and Joey Logano were stripped of their points.

My Inbox is full of joyous emails from Nevada conservatives.  Here’s what they’re so darn happy about:

GOOD-BYE TO YOU:  Everyone is just delighted that incumbent Republican Assemblywoman Francis Allen - who refused to sign the Taxpayer Protection Pledge and also embarrassed herself and her supporters by recently stabbing her husband in a drunken rage - lost to Republican challenger Richard McArthur (who not only signed the Pledge but campaigned on it).  McArthur stomped Allen by a 2-1 margin.

BOB “LITE” BEERS IS OFF THE SHELF:  Mr. Beers reluctantly signed the Taxpayer Protection Pledge after he was elected in 2006 – and then immediately broke it during the 2007 legislative session.  Beers lost by a 2-1 margin to Republican Jonathan Ozark (who signed the Pledge).

JUST MARVELLOUS:  Another victory worth noting is that of former Republican Assemblyman Don Gustavson who defeated incumbent Republican Assemblyman John Marvel.  Marvel also broke HIS Tax Pledge by flip-flopping and voting for the gigantic tax hike in 2003.

Everyone’s glad that three Pretend Republicans have been replaced (subject to general election wins) by fiscally conservative Republicans.

SQUEAKER:  In the State Senate, Republican Senate Majority Leader Bill Raggio pulled out a close one over Republican challenger and former Assemblywoman Sharron Angle.  Despite 30 years of service to his district, his strong leadership position, and outspending his opponent by more than 10-1, Raggio only won by around 500 votes.  (”whew!”)

CHAOS AVERTED:  In a closely-watched county commission race, GOP leaders dodged a proverbial bullet when former Clark County Chairman Brian Scroggins beat longtime Commissioner Bruce Woodbury…whose name was still on the ballot despite being ruled ineligible by the state’s new term limits law.  Had Woodbury won, debates would have raged over who would replace Woodbury on the general election ballot.  Now the party can just unite behind Scroggins.

KIDS AND PARENTS - VICTORY #1:  Many of you may know that the Nevada State Board of Education voted last December to slap a moratorium on the approval of any new charter schools, despite Very long waiting lists.  Under pressure, the Board lifted its moratorium at their meeting last weekend. 

#2:  Four of the nine Board members who voted against charter schools opted not to even seek re-election – including Harry Reid’s daughter-in-law, Cindy Reid.  And then yesterday Board member Barbara Myers lost to challenger Dave Cook in a three-way primary fight.  The two will meet again in November with Myers the likely loser.  Which means the Board could end up with six new members who, hopefully, won’t be as anti-school choice and anti-education as the last one. 

Does all this bode well for Conservatives in November?  Perhaps.  For today, we’ll enjoy the Victory – and continue to Hope. 

Literary ref from header:  “And, has thou slain the Jabberwock? Come to my arms, my beamish boy! O frabjous day! Callooh! Callay!’ He chortled in his joy. …”