January 2012

[youtube:http://www.youtube.com/watch?v=WBJrkn_kJw8 285 234]

In The Wall Street Journal, Glenn Harlan Reynolds, of Instapundit fame, describes the ways in which today’s “tea party” protests signal a new era of political activism.

So who’s behind the Tax Day tea parties? Ordinary folks who are using the power of the Internet to organize. For a number of years, techno-geeks have been organizing “flash crowds” — groups of people, coordinated by text or cellphone, who converge on a particular location and then do something silly, like the pillow fights that popped up in 50 cities earlier this month. This is part of a general phenomenon dubbed “Smart Mobs” by Howard Rheingold, author of a book by the same title, in which modern communications and social-networking technologies allow quick coordination among large numbers of people who don’t know each other.

In the old days, organizing large groups of people required, well, an organization: a political party, a labor union, a church or some other sort of structure. Now people can coordinate themselves.

CEI is joining the festivities. Check Openmarket throughout today for updates.

As Tea Parties brew across the land today, I’m reminded of the infamous “Tax Poem” chain email, or, spam, if you like. Set to music it could make quite the anthem I suppose.

THE TAX POEM

Tax his land,
Tax his bed,
Tax the table
At which he’s fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule.

Tax his work,
Tax his pay,
He works for peanuts
Anyway!

Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.

Tax his ties,
Tax his shirt,
Tax his work,
Tax his dirt.

Tax his tobacco,
Tax his drink,
Tax him if he
Tries to think.

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him know
That you won’t be done
Till he has no dough.

When he screams and hollers,
Then tax him some more,
Tax him till
He’s good and sore.

Then tax his coffin,
Tax his grave,
Tax the sod in
Which he’s laid.

Put these words
Upon his tomb,
“Taxes drove me to my doom…”

When he’s gone,
Do not relax,
Its time to apply
The inheritance tax.

—————–
Other taxes that didn’t exist 100 years ago:

Accounts Receivable Tax, Building Permit Tax, CDL license Tax, Cigarette Tax, Corporate Income Tax, Dog License Tax, Excise Taxes, Federal Income Tax, Federal Unemployment Tax (FUTA), Fishing License Tax. Food License Tax, Fuel Permit Tax, Gasoline Tax, Gross Receipts Tax, Hunting License Tax, Inheritance Tax, Inventory Tax, IRS Interest Charges IRS Penalties (tax on top of tax), Liquor Tax, Luxury Taxes, Marriage License Tax, Medicare Tax, Personal Property Tax, Property Tax, Real Estate Tax, Service Charge Tax, Social Security Tax, Road Usage Tax, Sales Tax, Recreational Vehicle Tax, School Tax, State Income Tax, State Unemployment Tax (SUTA) Telephone Federal Excise Tax, Telephone Federal Universal Service Fee Tax, Telephone Federal, State and Local Surcharge Taxes, Telephone Minimum Usage Surcharge Tax, Telephone Recurring & Non-recurring Charges Tax, Telephone State and Local Tax, Telephone Usage Charge Tax, Utility Taxes, Vehicle License Registration Tax, Vehicle Sales Tax
Watercraft Registration Tax, Well Permit Tax, Workers Compensation Tax

The Obama Administration’s Department of Homeland Security has developed new profiles of potential terrorists. Its definition of “right-wing extremism” is so ridiculously broad that you yourself may be branded as an extremist! For example, being “dedicated” to opposing “illegal immigration” is considered a hallmark of right-wing extremism by a new DHS report.

I’m a peaceful, Harvard-educated, constitutional lawyer married to an immigrant, but I am included in the list, too. That’s because I urged curbs on “federal authority in favor of state or local authority,” which DHS says is a sign of right-wing extremism. Specifically, I was one of the lawyers who got the Supreme Court to strike down a federal law (42 U.S.C. 13981) as a violation of states-rights (in United States v. Morrison (2000)). (That was only the second time in 70 years that the Supreme Court struck down a law passed under the Constitution’s Commerce Clause, so liberal critics claimed that my federalism-based argument was “extreme” — even though it was later vindicated by the Supreme Court).

I guess I shouldn’t be surprised about these false claims, given that the Obama Administration has lied about Supreme Court rulings and broken campaign promises, such as Obama’s pledge to enact a “net spending cut” and not raise taxes on people making less than $250,000 a year.

One would have thought that a belief in federalism, or enforcing immigration laws, would be viewed as an exercise of First Amendment rights, not a harbinger of terrorism. Government agencies that investigate people for their “politically incorrect” views can be held liable for violating the First Amendment, as happened in White v. Lee (2000), where a federal appeals court held that federal fair-housing officials could be sued individually for punitive damages for investigating citizens who spoke out against a group home for the disabled (in that case, mentally-ill substance-abusers).

The Department of Homeland Security’s incompetence is legendary.  It damaged airline security, which already was badly in need of improvement after 9/11, through its poor oversight over the federal Transportation Security Administration. The TSA fails to catch fake bombs three times as often as private security companies, and 2.5 times as often as the private companies the TSA replaced after 9/11. Obama would make things worse by implementing collective bargaining at the TSA — making it even harder to dismiss incompetent employees.

The Administration is no more competent overseas, where an indecisive White House is one factor in the spread of piracy. Piracy is rampant in the crucial shipping lanes off the coast of Somalia partly due to restrictions in a treaty that the U.S. has not ratified yet — but which is often described as “customary international law” binding on all nations. Partly as a result of the LOST Treaty, billions of dollars worth of cargo, and human lives, have been lost due to piracy. Harold Koh, nominated by Obama to be the State Department’s chief lawyer, argues that “customary international law” like LOST is binding on the U.S., even when it is reflected in treaties that the U.S. has refused to sign. Bizarre European human-rights conventions also are thwarting action against the pirates.

International “human rights” norms have been twisted into a restriction on freedom, rather than a way of protecting it. It’s now frequently claimed that hate speech, defined to include criticism of any religion, is a violation of international human-rights norms. Self-styled “human-rights” lawyers also claim that “customary international law” dictates a host of controversial requirements that few countries would voluntarily adopt on their own, like banning Mother’s Day as sexist, and mandating quota-based affirmative action. An international committee has claimed that human-rights norms require “redistribution of wealth,” “affirmative action,” “gender studies” in academia, government-sponsored “access to rapid and easy abortion,” “comparable worth,” and “the application of quotas and numerical goals and measurable targets aimed at increasing women’s political participation.”

How damaging would the so-called Employee Free Choice Act be to businesses? Enough to force some healthy companies into bankruptcy. Specificaly, EFCA’s binding arbitration provision could lead to newly unionized companies being forced to assume unsupportable new pension liabilities. Thus explained Brett McMahon of the construction firm Miller & Long, speaking to bloggers at The Heritage Foundation today.

EFCA supporters have tried to sell the legislation’s binding arbitration provision as a guarantee of first contract. In fact, it’s a recipe for a government-imposed contract. Under this provision, the company and the newly certified union have 90 days to negotiate a contract. If they have not reached a contract after that time, they must negotiate for another 30 days, at the end of which period a federally appointed arbitrator may step in and impose a contract. This creates incentives for the union negotiators to stall, and thus get a lot of what they want through arbitration.

McMahon describes this 120-day period as “a good time to start liquidating,” since newly unionized companies would then be required to enter into union pension funds, most of which are supposed to back multi-employer defined-benefit plans. “The problem’s they have no money,” said McMahon. “They were losing money hand over fist for a long time,” for various reasons, some of them demographic.

Employers who wish to back out of such plans must pay a withdrawal fee, because, unlike single employer private pension funds, multi-employer funds are insured primarily by the participating employers, not the Pension Benefit Guaranty Corporation (PBGC). This is an especially bad deal for workers, who could face huge losses when their pension funds default. Unlike single employer plans, which the PBGC insures for up to $54,000 per worker per year, the PBGC can only pay out to a miserly $12,870 per year.

For the company, it means millions (in some cases billions) in new liabilities, which must be stated under FASB 157 mark-to-market valuation rules, which as my colleague John Berlau has noted, force companies to overstate liabilities by making them price assets at what are essentially liquidation prices. Thus, otherwise healthy companies can suddenly find themselves burdened with pension obligations they cannot support. To illustrate how bad these could get, McMahon cited the example of United Parcel Service, for which the least expensive option was to pay $6.1 billion to get out of the Teamsters’ Central States pension fund.

I asked McMahon to comment on the reason so many union pension are underfunded: shareholder activism. He cited the example of the California Public Employee Retirement System (CalPERS), which, as a result of eschewing investments in politically incorrect industries, such as tobacco, has suffered opportunity losses of 17 to 18 percent. (I also referred the group to a study by Diana Furchtgott-Roth of the Hudson Institute for background on this topic.)

McMahon rightly characterized this kind of activism as a dereliction of fiduciary duty by pension fund administrators. “Their duties are fiduciary. Their duties are to the people who put their money in their trust,” he said. “They don’t act properly” by making investment decisions based on political criteria, rather than on which investments can provide the best returns. Shareholder activists often seek to promote a broad leftist ideological agenda, often in concert with other left-liberal constituencies (as a Politico article cited at the briefing today illustrates).

For more on EFCA, see here.

Piracy has flourished in the crucial shipping lanes off the coast of Somalia partly due to a treaty that the U.S. has not ratified yet — but which is often described as “customary international law” binding on all nations. Partly as a result of the LOST Treaty, billions of dollars worth of cargo, and human lives, have been lost due to piracy. Harold Koh, nominated by Obama to be the State Department’s chief lawyer, argues that “customary international law” like LOST is binding on the U.S., even when it is reflected in treaties that the U.S. has refused to sign. (European human-rights conventions and an indecisive White House also play a big role in thwarting action against the pirates).

That’s just one reason U.S. policymakers should think twice before following vague “international norms.”

Since customary international law is vague, liberal lawyers invariably use that ambiguity to claim that it dictates a host of controversial requirements that few countries would voluntarily adopt on their own, like banning Mother’s Day as sexist, and mandating quota-based affirmative action. For example, the CEDAW equal-rights treaty has been construed by an international committee as requiring “redistribution of wealth,” “affirmative action,” “gender studies” in academia, government-sponsored “access to rapid and easy abortion,” “comparable worth,” and “the application of quotas and numerical goals and measurable targets aimed at increasing women’s political participation.”

But they only adopt expansive interpretations of international law when it is ideologically convenient. When looking to foreign court rulings or international law would actually result in a conservative outcome, they cheerfully ignore international law or pretend it doesn’t exist. A classic example of that is Justice Ruth Bader Ginsburg, who claims that the Supreme Court should pay more attention to foreign court rulings, but ignores those rulings when they contradict her political preferences, even in those atypical cases where foreign court rulings actually deserve to be given careful consideration (like when they are interpreting a commercial treaty that also applies in the U.S.).

People who claim to care about foreign court rulings or “international law” cheerfully ignore them when they result in “conservative” outcomes, like limiting taxation or punitive damages against businesses.

Justice Ruth Bader Ginsburg says that American courts should look more to foreign court rulings in interpreting our Constitution. But she herself does so only when it is ideologically convenient.

For example, Justice Ginsburg cites foreign court rulings to advocate cutting back on the use of the death penalty. Some liberal lawyers go further, claiming that since most European countries don’t have capital punishment, the death penalty must be against “customary international law” and the weight of world opinion (even though ordinary citizens in many European countries, like the United Kingdom, typically support the death penalty).

But Justice Ginsburg, and American lawyers, tend to ignore foreign law and world opinion when it calls into question liberal policies in the United States. One classic example is the horror that most countries’ courts have for the American practice of letting virtually unguided juries award punitive damages. In most of the world, punitive damages are forbidden.

Justice Ginsburg is the biggest advocate of punitive damages on the U.S. Supreme Court. She opposes any limits on punitive damages under the Due Process and Excessive Fines clauses of the Constitution, and interprets federal laws as authorizing punitive damages even when they are silent on the issue.

Another example is abortion; while most European countries recognize the right to an abortion, they recognize that that right, like all rights, has limits, and typically require that abortions be performed prior to the end of the first trimester (unlike in the United States, where third-trimester partial-birth abortion was long de facto legal, and remains difficult to regulate as a result of court rulings).

Justice Ginsburg, by contrast, dissented against the Supreme Court ruling upholding limits on partial-birth abortion.

Foreign constitutions are often very different from ours, but that doesn’t stop Ginsburg from citing court rulings interpreting those constitutions as if they were relevant to ours. Yet she ignores relevant foreign court rulings involving provisions that are identical to American laws when it is convenient to do so.

For example, both the U.S. and foreign countries signed the Warsaw Convention, and helped craft it, so U.S. courts should look to foreign court rulings for any insights they may have about what its vague provisions mean and what its drafters intended. But in Olympic Airways v. Husain (2004), Justice Ginsburg did just the opposite, joining a Supreme Court decision that, as Justice Scalia noted in dissent, rejected the rulings of every foreign court that has considered the meaning of the Warsaw Convention. (The ruling that Ginsburg joined, not surprisingly, was “liberal” in that it allowed for more liability than foreign courts would have permitted). That ignored the longstanding principle that in interpreting a treaty, courts of one country are supposed to “accord the judgments of our sister signatories considerable weight.”

American lawyers also ignore foreign law when it comes to privacy. Many foreigners are puzzled by the multibillion dollar lawsuits brought by lawyers against phone companies for cooperating with government antiterror surveillance programs after 9-11. Other countries like Sweden permit their governments to engage in much broader surveillance than the FISA bill would permit the U.S. government to do. The belief by many liberal commentators that the government should have to obtain a warrant before monitoring communications with foreign terrorists strikes many foreigners as peculiar. So, too, does the claim that the phone companies should be subject to punitive damages, even if the government itself doesn’t have to pay a dime.

There are risks to looking to “international law” in interpreting our Constitution. So-called “international law” has been a major obstacle to combatting piracy in the crucial shipping lanes off the coast of Somalia, leading to killings, kidnappings, and billions of dollars in losses.

“International law” is also vague and manipulable. International tribunals and “human rights” bodies issue rulings that purport to have the force of law. But much of their reasoning is based not on written laws found in any law book, or agreed to by any legislature or citizenry. Instead, it is based on vaguely-defined “customary international law,” principles of so-called “natural law” derived from a supposedly “clear consensus” by enlightened people across the globe. But that “consensus” is often illusory, since it can easily be fabricated, manipulated, or distorted by international lawyers.

Lawyers are, on average, further to the left politically than the average citizen. And so-called international lawyers are even more so. Just as the grass always seems greener on the other side of the fence, lawyers often claim that the law is more liberal elsewhere in the world than in their own benighted country, and that such liberal norms — at odds with their own country’s law — constitute customary international law. Thus, it is commonly argued that customary international law bans the death penalty for mass murderers, and requires countries to ban disfavored forms of speech (such as “hate speech,” or criticism of any religion), although in reality, the strongest support for bans on such speech actually comes from undemocratic regimes like Cuba and China.

It is hard to fight these claims even when they are false, because ordinary people (and even most lawyers) don’t know much about foreign law. The lawyers who fashion “customary international law” are thus largely unaccountable. Perhaps as a result, customary international law is generally of poorer quality than domestic law. Scholars have cited this fact in celebrating the Supreme Court’s recent decision in Medellin v. Texas (2008), which refused to make Texas hear yet another challenge to a murderer’s conviction (which had already twice been upheld by different court systems) when ordered to do so by the International Court of Justice (a ruling at odds with the fact that virtually all ICJ member countries permit only one appeal of a conviction, not successive appeals).

Misleading the public about foreign law is common among “human rights” officials. For example, an official in Australia’s new Labour government claims that people accused of race discrimination should have to prove themselves innocent, rather than being proved guilty. To justify this outrage, he and Australia’s “human rights” commission claim that is the practice in America, when in fact it is quite the contrary.

American law puts the burden of proof on the complainant and the government, not the alleged offender, in discrimination cases. The U.S. Supreme Court explicitly so ruled in Texas v. Burdine (1981) and St. Mary’s Honor Center v. Hicks (1993). But Australia’s Race Discrimination Commissioner, Tom Calma, and the Australian Human Rights and Equal Opportunity Commission falsely claim that under American law, “the onus of proof” is on “the person who has been accused of discrimination.” (See “Call to Switch Onus on Racist Offenses,” The Age, News, April 5, 2008).

Joseph H.H. Weiler, a law professor who co-drafted the European Parliament’s Declaration of Human Rights and Freedoms, made American legal thinking seem more liberal than it is, by inviting to Europe to represent it two of America’s most radical law professors: the University of Michigan’s Catharine MacKinnon, who considers most heterosexual sex to be rape; and Harvard Law School’s Duncan Kennedy, who advocated having law school professors periodically exchange their positions with college janitorial staff in order to promote diversity and social equality.

By contrast, when laws across the world are more conservative than a law professor’s own, they are studiously ignored in formulating “human rights” law (like the world-wide aversion of most countries’ legal systems toward civil punitive damages and late-term abortions, which U.S. law often permits).

The very international “human rights” lawyers who insist that “hate speech” should be curbed are often radicals who are blind to certain forms of prejudice. A classic example of this is the disturbing Richard Falk, recently appointed by the U.N. Human Rights Council to investigate Israel. Falk, a liberal Princeton professor emeritus, has likened Israel to the Nazis, praised the Ayatollah Khomeini (the Iranian dictator whose regime ordered the killings and torture of many religious and ethnic minorities in Iran), and promoted 9/11 conspiracy theories that accuse the U.S. government of complicity in the 9/11 attacks. Falk’s wackiness may offend the general public and Israel, which plans to bar him from coming to Israel, but it apparently does not offend lawyers and state judges very much: it did not stop the Washington State Supreme Court from citing his advocacy of affirmative action to uphold a discriminatory, gender-based affirmative-action set-aside in public contracting, in Southwest Wash. Chapter v. Pierce County, 667 P.2d 1092 (1983).

An 82-year-old Australian grandmother says she is prepared to go to jail rather than pay a A$1-million (US$731,000) bill to clean up toxic chemicals spilled by her tenant.

Opposition spokesman for the environment David Davis described the EPA [Environmental Protection Authority] as a ramshackle organisation that needed to be overhauled.

He said toxic waste was leaking from the barrels and presented a risk to the local community of the light industrial area.

“Because of the EPA’s failure to act at an early point, failure to enforce regulations and failure to guarantee that toxic chemicals were not stored in capacities above what was allowed by permits, a landlord is now faced with a very difficult position,” Mr Davis said.

“The landlord here is being told she is responsible, despite her telling the EPA at an early point that they needed to act against a tenant who was breaking the law.”

In America, the Australian environmental agency’s initials make this case even more disturbing. (Thanks to Margaret Griffis for the Herald Sun news link.)

Legendary music producer Phil Spector was convicted this afternoon of second-degree murder for the killing of actress Lana Clarkson. Schocking as the story might be, it shouldn’t be that surprising that Spector’s story would end like this. As MTV music writer Kurt Loder wrote in 2003, shortly after Spector’s arrest:

The Ronettes had started out as go-go dancers at a New York discotheque called the Peppermint Lounge (one of the Beatles’ first stops on their first visit to the U.S. in 1964). Spector eventually married Veronica (Ronnie) Bennett, the group’s leader. Much later, in a 1983 documentary by filmmaker Binia Tymieniecka that aired on England’s Channel Four (from which I will liberally quote hereafter), she said of her ex-husband: “I think Phil was a very normal person at the beginning of his career. But as time went on, they started writing about him being a genius. And he said, ‘Yeah, I am a genius.’ And then they would say, ‘He’s the mad genius.’ And so he became the mad genius.”

And he just went downhill from there. For more background, read Loder’s entire article here.

You undoubtedly have heard that on April 15th many Americans will participate in Tax Day “Tea Parties,” a reference to the colonial tea parties that occurred in 18th century America. The protests have been widely covered by a broad range of media outlets.

The sentiment behind modern tea parties isn’t clear; it is varied. Some attending the protests want lower taxes, or to show their objection to the ways taxes are being used, some are there to object to the very idea of involuntary taxes all together and other protesters object to bailouts.

Like the original tea party modern tax day rallies should NOT be about taxes. Americans should protest the philosophy that led to high taxes, bailouts, and government waste; namely the presumption that government has a right to interfere in our economic lives at all. We should protest the presumption that government has the right to do anything other than protect the individual liberty of American citizens.

In 1773 The Tea Act gave special privileges to the East India Company that allowed it to sell tea at lower rates than all other companies, saving the company from economic ruin (a bailout 18th century style). Colonists refused the tea, turning away ships and in the case of Boston, destroying it. Why? Because Bostonians in the 18th century recognized the danger of such abuses of government power even though it provided a cheaper product in the short term. They rejected the tea on principle and it is that principle we should stand on today.

The American government seems to be mirroring the 18th century British government; applying discriminatory taxes on businesses, products, and citizens, using appropriated money to prop up preferred companies and failing to protect the freedom of individuals to pursue their own happiness. All the while those in power implicitly and explicitly in some cases attack capitalism, the only system under which individual rights are supreme. It is this attack on free markets and individual rights that citizens must oppose.

In the last two centuries Americans have forgotten that the only proper function of government should be to protect our individual rights which include the right to property, freedom from foreign and domestic force, and freedom to pursue happiness as we define it–not the happiness a governing body or society allows us to pursue.

It is time to remind the public that a government of the people and for the people must be constantly checked by the people. As Samuel Adams said

“The liberties of our country, the freedom of our civil constitution, are worth defending at all hazards; and it is our duty to defend them against all attacks”

If you want to participate in a tea party in your neighborhood you can find out more here