Did you know there are nine states that have no state income tax? The non-income-tax states (see chart below) are geographically and economically diverse, ranging from the state of Washington in the Pacific Northwest, to Texas and Florida in the South, and up to New Hampshire in the Northeast.

Why is it that some of the states with the biggest fiscal problems have the highest individual state income tax rates, such as New York and California, while some of the states with the least fiscal problems have no state income tax at all?  Further, on average, schools, health and safety, roads, etc. are no better in states with income taxes than those without income taxes.

Where is all the extra money from these state income taxes going? It is going primarily to service debt, and to pay for inflated salaries and employee benefits.  Thus, as two recent studies by my colleagues at the Cato Institute show, the keys to state solvency are no state income taxes and no public worker unions.

[This is the full text of Sarah Palin's speech in Indianola, Iowa, on Saturday, September 3. I consider this to be one of the greatest political speeches of modern times.  The video follows after the text. ---JW]

The reality is that we in America today are governed by a permanent political class, who derive power and wealth from their access to our money - to taxpayer dollars. 

They use it to bail out their friends on Wall Street and their corporate cronies, to reward campaign contributors, and to buy votes via earmarks. There is a name for this: It's called corporate crony capitalism.

This is not the capitalism of free men and free markets, of innovation and hard work and ethics, of sacrifice and of risk. No, this is the capitalism of connections and government bailouts and handouts, of waste and influence peddling and corporate welfare.

I believe in the free market, and that is why I detest crony capitalism. And Barack Obama has shown us cronyism on steroids.  It will lead to our downfall if we don't stop it now. We will not solve our economic problems until we confront the cronyism of our President and our permanent political class.

Between bailouts for Wall Street cronies and stimulus projects for union bosses' security and "green energy" giveaways, he took care of his friends. And now they're on course to raise a billion dollars for his re-election bid so that they can do it all over again. Are you going to let them do it all over again? Are you willing to unite to do all we can to not let them do it again so we can save our country?

Merry Christmas Eve!  It's a good time to turn our eyes towards Heaven, for the Congress from Hell has finally ended.

The Enemedia is celebrating the 111^th Congress and its Lame Schmuck Session as "the most productive in history," modern or even ever.  That's certainly true if you, as does the Enemedia, have a Hate-America agenda.  For anyone Pro-America, the 111^th has been the most destructive in US history, modern or even ever.

So - the multi-trillion dollar, fate-of-America question is:  will the 112^th ride to America's rescue and undo the damage?  The scientifically precise answer is... Maybe.

The Zero Presidency and Reid-Pelosi Congress have made many folks aware of this terrifying truth:  that Democrats are more dangerous to America than terrorists.

The damage any conceivable attack on America perpetrated by Moslem crazies is miniscule compared to the damage Democrats have already wrought upon our country in the last two years - and they intend via their Man in the White House to perpetrate vastly more.

This just-ended Lame Schmuck Congress adds an instructive codicil to this:  that RINO Republicans are just as dangerous as America-destroying Democrats.

If those managing a company had acted as recklessly and irresponsibly as has Congress with the U.S. economy, they rightly would be fired.

Congress by its actions is driving away foreign capital, new and existing companies and jobs; burdening the people with excessive debt - and even providing an incentive for murder.

The death tax rate this year will be zero as a result of the Bush-era phaseout of this destructive tax, but it is set to jump to 55 percent as of Jan. 1. There have been many articles about the likelihood of individuals attempting to time their deaths before the end of the year to save their heirs many millions of dollars in "death taxes."  

When incentive is given to cause a premature death by an interested party in order to gain a great deal of money, the probability is that it will happen in some cases.

Members of Congress normally are exempt from civil prosecution for actions and statements made in Congress, but it would not be beyond possibility to see some enterprising lawyer charge those irresponsible members of Congress with abetting murder (which is not protected by congressional immunity) because of their lack of action to "fix" the death tax. How just!

Many in Washington care little or nothing for the well being of Americans, other than themselves and their cronies. The widespread continued lying about the soundness of Social Security and Medicare isn't due to ignorance -- it is due to politicians aggrandizing  power regardless of the cost to others.

Either their careers will have to be terminated by a better informed electorate - not impossible, as demonstrated by Canada and Sweden - or the US central government and the scores of millions who depend upon it will crash and burn. 

The US central government is on the road to either radical reform or self destruction. Continued kicking the can down the road would soon send it over the economic cliff where the USA would join the USSR on the ash heap of history.

Radical reform could be as simple as refusing to increase the debt ceiling, auctioning the Ponzi scheme operator's assets off for the benefit of the Social inSecurity and MediScam victims, allowing unlimited expensing for all business capital investments, requiring that all regulations be voted on by Congress before becoming laws, and legalizing competing precious metal currencies.

It's this simple:

Most of the current problems facing America stem directly from the failure of our elected representatives to follow the Constitution. Much of what the Tea Party activists are demanding is a return to the principles and procedures found in the Constitution.

Many of those running for office are venting about excessive spending, deficits, taxation, regulation and so forth, but are struggling to say what they are for and what they would actually work to accomplish once they are elected.

To deal with this problem, candidates for office should state that, if elected, they will have a "Contract with the Constitution," much like the Contract with America that Newt Gingrich and Dick Armey developed for the Republicans in 1994.

Warren Buffett is a world class investor. He is also entitled to his opinion even when it demonstrates larceny with the truth.

His grand and magnanimous genuflection to "fairness" is fraught with dishonesty and does no service to the debate on the nation's economic future.  "We have abundance but we don't have as much fairness as we might have in the system," he announced at a fund-raiser he held for Mr. Obama in Omaha last week (8/16).

"Fairness" is a code word of the left which has its origins in the class hatred so beloved by Marx . It is meant to arouse the "masses" (another term of haughty illiberal insult to citizens ) to demand their illusory "rightful" share from the rich . It fabricates an enemy out of capitalism and implies some form of theft that must be redressed.

This is the essence of Barrack Huessein Obama's indoctrination and Mr. Buffett is simply feeding the beast.

Hard to believe Christmas Eve is two short weeks away.  For those folks not yet checked off on your Christmas gift list, the HFR suggests a copy of The Jade Steps. 

Or a Gift Subscription to To The Point.  You can gift a friend with a one-month, a three-month - or for a special friend an entire year - of the insights on the world that only TTP provides.  The HFR can't think of better gifts than these, that will be more valued and appreciated by your friends. 

(I should add here that Dr. Joel Wade's Pocket Guide to Mastering Happiness makes a great low-cost stocking stuffer...)

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Before we look at the dog's breakfast in Washington this week, let's have some fun at the Chicoms' expense.  Ever heard of the Confucius Peace Prize?  Neither did its recipient, who didn't bother to show up at the awards ceremony.  The result was the Chicoms ended up this week being laughed at and compared to the Nazis at the same time.  The world needs more of this.