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Dell-EMC

Dell (Photo: Reuters)

Dell (NASDAQ:DELL) will buy data storage company EMC Corp in a deal valued at about $67 billion, the largest on record in the technology sector. The offer is $33.15 per share in cash and special stock, the companies said in a joint statement on Monday.

EMC shares were up 3.9 percent to $29.08 at one point in premarket trading. The deal will help the world’s No.3 PC maker tap into the faster-growing and lucrative market for managing and storing data for businesses amid waning demand for personal computers globally.

“The combination of Dell and EMC creates an enterprise solutions powerhouse bringing our customers industry leading innovation across their entire technology environment. Our new company will be exceptionally well-positioned for growth in the most strategic areas of next generation IT including digital transformation, software-defined data center, converged infrastructure, hybrid cloud, mobile and security,” said Michael Dell, who will lead the combined company as chairman and chief executive. “Our investments in R&D and innovation along with our privately-controlled structure will give us unmatched scale, strength and flexibility, deepening our relationships with customers of all sizes. I am incredibly excited to partner with the EMC, VMware, Pivotal, VCE, RSA and Virtustream teams and am personally committed to the success of our new company, our customers and partners.”

Dell said it would pay $24.05 per share in cash and the rest in a special stock that tracks the value of a portion of EMC’s economic interest in VMware, the virtualisation software company majority-owned by EMC.

“I’m tremendously proud of everything we’ve built at EMC – from humble beginnings as a Boston-based startup to a global, world-class technology company with an unyielding dedication to our customers,” said Joe Tucci, chairman and chief executive officer of EMC. “But the waves of change we now see in our industry are unprecedented and, to navigate this change, we must create a new company for a new era. I truly believe that the combination of EMC and Dell will prove to be a winning combination for our customers, employees, partners and shareholders.”

EMC is also planning to seek out other suitors, while the board has approved the merger agreement and intends to recommend that the company’s stockholders approve the deal. The deal will be financed through a combination of new equity from Michael Dell, MSD Partners, Silver Lake and Singapore state-owned investor Temasek Holdings as well as the issuance of the tracking stock, new debt and cash on hand.

“We are excited and honored to invest in the outstanding businesses built by Joe Tucci and his world-class management team. This is an extraordinary opportunity to continue and expand our partnership with the iconic technology entrepreneur Michael Dell and his talented team,” said Egon Durban, managing partner of Silver Lake. “We believe the strategic integration of EMC and Dell will generate unparalleled depth and breadth across servers, storage, virtualization and the next era of converged infrastructure, creating a global technology platform poised for sustained long term growth and innovation in the years to come. We are doubling down and increasing our investment in this differentiated market leader for the next paradigm of enterprise computing.”

VMware will remain an independent, publicly traded company. VMware shares were unchanged at $78.65.

Dell (NASDAQ:DELL) will buy data storage company

Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery. — Winston Churchill

Jazz-Festival-Moscow

Jazz festival in Moscow

While conducting some reporting on the former Soviet Union, I recently had the distinct pleasure of being invited to a free jazz, big band concert in Moscow, held during one of many music festivals. (I have to say, these people know how to have fun.)

The 20-plus Russian musicians, dressed in tuxedos, treated the audience to two hours of the greats of the jazz and big band era—Louis Armstrong, Benny Goodman, Erroll Garner, Glenn Miller, Cole Porter, Count Basie, Duke Ellington, Tommy Dorsey—and the list went on and on. The audience stood and cheered as one line of horns after another would stand up in unison and delight the listeners with distinctly American times gone bye.

The devushkas to the babushkas couldn’t sit still in their seats as legs were pumping, hands were in the air, and hoots and hollers of uncontrolled joy sprang naturally from their breasts.

Then it hit me.

This was the greatness of America.

I thought, how strange to experience this sensation here, so far away from home in a place not known for its freedom. The greatness of America was its natural optimism, the thought that if you worked hard you could fulfill you dreams. The joy of being free. It was the thought that a type of music born from the descendants of slaves could be honed and perfected to such level that the whole world could enjoy. It was the thought of racism being slowly destroyed in America. Yes, this was the greatness of America that even these former Soviet citizens and young Russians are acknowledging, whether they know it or not, as they tap their feet to the joy of this music. And then I thought: Why haven’t I felt this for such a long time? How sad.

Do you remember?

Do you remember the pride of being an American? Do you remember sitting in school as a child, learning about our Founding Fathers, civics class, our Constitution, our success in World War II, freeing the world from tyranny? Do you remember the pride of seeing the American flag because you knew, deep in your heart, that despite all of America’s flaws, it was a good country, it stood for freedom? Do you remember the shining city on the hill, the triumph of good over evil?

Do you remember when you trusted, for the most part, our federal government? Do you remember when the IRS was a pain in your you-know-what, but you weren’t scared it was corrupt, that it would come after you if you made a contribution to the wrong political candidate? When the Secret Service was a group of heroes, sent down from heaven, professionals who would give their life for our elected leader, who could be trusted not to use their vast resources for political gain? When federal agencies were, for the most part, good people, who were not buying vast amounts of military weapons to one day overcome any domestic resistance? When the Veterans Administration took care of our veterans and didn’t let them die in the waiting room as bureaucrats padded their pensions?

Do you remember when there was less racial tension, when there was hope of a united America? Do you remember when you didn’t fear a race war? Do you remember when immigrants, for the most part, were assimilated into the United States and the American dream?

Do you remember when you were optimistic about the future, when you were sure that your children would have a better, more successful, more secure life than you?

Do you remember when the rule of law was paramount? It didn’t matter what party you were affiliated with, if you broke the law, then you would pay the consequences, like when Richard Nixon resigned the presidency?

Do you remember when you could trust our teachers, when you could send you child to public school and not worry about their impressionable minds being filled with communist mush? Do you remember when our universities were halls of higher learning and not socialist re-education camps, when young people would graduate with the skills to confront the world, rather than sit in their parents basements, tending bar at night, and girls wouldn’t worry about how much of a victim they were when a guy held the door open for them?

Do you remember when our president didn’t actively pit one part of society against another for political gain or for some ancient grudge deviously planted in his genes? Do you remember when our president led the Free World? Do you remember when our president could be trusted, when what he said was what he would do? When he stood up for all races and religions? When your president wouldn’t dare be seen in a church service that preached, “God Damn America?”

Do you remember when Americans voiced optimism, instead of searching for the nirvana of victimhood? When they were self-reliant and not dependent on government? When 46 million people were not on food stamps? When almost 100 million people had not given up on looking for a job?

Do you remember when the Democratic Party, for the most part, stood for the old American values as well? When Democrats didn’t just want power at any cost? When they didn’t want to let American power atrophy? When they said, “Ask not what your country can do for you,” but what you can do for your country? That Democratic Party is no more, gone, kaput. Now the party’s creed is, get as much as you can before the lights go out!

We need a new leader to tell the story of America to the world. Heck, we need a leader to tell the story of America to our own children. The political system our Founding Fathers set up is the most successful political system in history. It provides the best hope for people to be free and successful and self-reliant. We weren’t born to be living under a king. We were born to be living under an oligarchy of socialist elites. We were born to be free.

This freedom is slipping away. The skies are darkening. The world is a much more dangerous place since America is no longer leading and standing up for freedom. The forces of evil are gathering, getting stronger, plotting, planning a less free world. The worst part is this loss of freedom is self-inflicted. It is coming from within.

We desperately need not a new vision, but the American vision of the past.

When I went through Survival, Evasion, Resistance, and Escape training prior to becoming an Air Force pilot, we were put in mock POW camp for days and mistreated in order to understand what it is like to lose your freedom, to learn techniques to resist the enemy, to survive and ultimately be free once again.

During the end of the training, (although we didn’t know it yet) the mock POW camp commander put us at attention on the parade field and preached to us how we weren’t Americans like he used to know. He told us stories of American heroes of wars gone by. He told us of suffering, hardship and torture that these men and women went through to make sure America stayed free.

And then, he said, you are now my prisoners, you have to salute my flag, you have to pay respect to my country. Now turn around and salute my flag! We did so, and there, waving freely in the wind, was Old Glory, flying proudly, free. That is when I truly understood what it meant to be an American.

I want that feeling back.

The greatness of America was its natural

Dan Webster is the Best Choice for the Republican Party, for America

FL-Rep-Daniel-Webster

Rep. Daniel Webster of Florida, attended a Bipartisan Working Group meeting in Washington, DC in June. (Photo: Tom Williams/CQ Roll Call/AP)

In a rare decision by the Editorial Board at People’s Pundit Daily (PPD), we are announcing our endorsement of Rep. Dan Webster, R-Fla., for Speaker of the House of Representatives. While we have endorsed particular candidates in statewide and national elections in the past, this marks the first time we’ve felt compelled to weigh in on any choice involving party leadership.

First, we want to commend House Majority Leader Kevin McCarthy, R-Calif., for withdrawing from the race. Mr. McCarthy is a good, decent man who did something extraordinary in modern American politics–he put the People’s House and the interests of the American people above his own political ambitions. For that, he deserves accolade and commands greater respect from House members moving forward as he stays on as majority leader.

That said, shortly after the surprise announcement, Rep. Darrell Issa, R-Calif., told reporters at a press conference that McCarthy “was by far the only one declared in that room who had the votes” to reach 218. That is simply not a factual claim. Though it is certainly true that McCarthy had more votes going into the preliminary vote, at the end of the day he didn’t have enough votes to reach the magic number and, from talking to members, it became clear he was not going to get them.

Dan Webster is the only candidate with both the experience and the appeal to bridge the widening gap in the Republican conference. He not only has the support of the House Freedom Caucus, which the next Speaker of the House will need if they hope to reach 218, but also of members like fellow-Floridian Rep. David Jolly.

Rep. Jolly, who told PPD he was honored to be asked to nominate Dan Webster last Thursday, will begin to make his pitch in a Dear Colleague letter that is going out to all members Monday. We fully support his efforts, and implore members to seriously consider the argument he will put forward in support of Dan Webster.

For those who may not know the Florida lawmaker or his record, Dan Webster became Speaker of the Florida House at a time when Republicans regained control of the state legislature under a Democratic governor and enjoyed the approval of only one-fifth of Floridians. By the time he passed the gavel, nearly 60% of Sunshine State voters approved of their legislature, a dramatic turnaround that seems pessimistically impossible to duplicate in Washington.

As of writing this endorsement, the PPD average Congressional Approval Rating Index is underwater by nearly 60% and Americans who believe the country is headed in the right direction are outnumbered 2 to 1. Dan Webster is the only candidate for Speaker of the House who can say he has faced such voter dissatisfaction, and yet successfully restored public trust in government.

Now, he is promising Republican members an opportunity to also restore public trust in the People’s House by reforming procedure and achieving conservative results. Dan Webster is the only candidate for Speaker of the House that has put forward a plan to take up appropriation bills in a way that will allow individual members to represent their own constituents, without the repeated threat of a government shutdown.

Dan Webster is the only candidate with a plan to end the tired politics of brinksmanship and shady midnight votes. He is a fresh face, yet has the experience of running a large state that is known for being a microcosm of the county as a whole, demographically and culturally speaking. The same cannot be said of any other candidate, not even Mr. McCarthy had he never dropped out.

The same cannot be said of Rep. Jason Chaffetz, R-Utah, who quite frankly, will never make it to 218 considering his history with the House Freedom Caucus. We won’t retell that story, but it suffices to say that Mr. Chaffetz’s past actions do not instill confidence within conservative circles that he is the man best suited to lead a reform movement in the House. By comparison, there is a unanimous consensus that Dan Webster’s integrity is beyond reproach.

It is time for the GOP leadership to take McCarthy’s example and put the People’s House, the interests of their constituents and the nation above the failing, K Street-dictated status quo. The decision by Speaker Boehner to postpone a scheduled vote is a transparently desperate attempt to deny Dan Webster a fair vote and salvage an ineffective power structure. These are the tactics that have so enraged conservative members and have made Main Street Republicans view K Street Republicans more of an enemy than the party across the aisle.

As PPD has repeatedly reported, the negative approval numbers in Congress and often abysmal favorability ratings for the Republican Party are largely fueled by dissatisfaction among Republican and Republican-leaning independent voters. Most Republican voters have long felt that their congressional representatives are out of touch with them, but now only 24% believe Republican lawmakers have done a good job representing their party’s values. The House, the Great Opportunity Party and the American people deserve better.

Elect Dan Webster as Speaker of the House, the best choice for Republicans and the best choice for America.

In a rare move for the Editorial

Obama-Bergdahl-Rose-Garden

President Obama hugs the father of U.S. Army Sgt. Bowe Bergdahl, a known deserter now charged with that and more under the UCMJ, after delivering a statement on their son’s swap for the notorious Taliban Five.

In January 2015, PPD reported that Army Sgt. Bowe Bergdahl would be charged with a watered down “leaving a post to avoid duty”desertion charge unless he took a plea deal and forfeited the $200,000 in back pay he received for the time in captivity. Fox News host Bill O’Reilly said “the fix is in” on the Bergdahl case, predicting that the Obama administration would let the known deserter and likely traitor go free.

Now, it would appear that Mr. O’Reilly was right, as PPD has confirmed that an Army officer is expected to recommend Bergdahl face a lower-level court martial that would not only spare him the possibility of jail time for leaving his post in Afghanistan, but also remain in the Army with a reduced rank.

Bergdahl was captured by the Taliban after deserting his post on June 30, 2009, and freed five years later in a controversial trade for five Guantanamo detainees. He was slow-rolled charged with “Desertion with Intent to Shirk Important or Hazardous Duty” and “Misbehavior Before The Enemy by Endangering the Safety of a Command, Unit or Place.” Former commanding officers and fellow-soldiers on the ground in Afghanistan say a 45-day search for Bergdahl resulted in the death of multiple servicemen.

Yet, Eugene Fidell, Begdahl’s defense attorney, said Saturday that Lt. Col. Mark Visger recommended Bergdahl’s case be referred to a special court martial, which is a misdemeanor-level military justice forum. It limits the maximum punishment to reduction in rank, a bad-conduct discharge and a term of up to a year in prison.

bowe-bergdahl-fox

Army Sgt. Bowe Bergdahl was charged with desertion and misbehavior in front of the enemy. (Photo: FOX News)

Fidell also said that Visger recommended that there be no prison time or punitive discharge against Bergdahl, and is now asking that the case instead be disposed of non-judicially, rather than by any court martial. Visger presided over last month’s Article 32 hearing in Texas that reviewed evidence against Bergdahl, which revealed the deserter had long communicated secretly with the Taliban before ever stepping off post.

When Visger submitted his report with a recommendation on Monday the Army hadn’t said what Visger recommended. General Robert Abrams, the commanding general of U.S. Army Forces Command, ultimately has the sole authority to decide whether the case should be referred to a court-martial.

No timeline has been given for a decision from Abrams. Paul Boyce, a spokesman for the U.S. Army’s Force Command, released a statement Saturday that appeared not to confirm Visger’s decision.

“As legal action is ongoing, we continue to maintain careful respect for the military-judicial process, the rights of the accused, and ensuring the case’s fairness and impartiality,” Boyce said.

But a conversation Fox News had with Mr. Fidell on Saturday, as well as a review of his memo to Visger, the appearance of “a fix” is more than evident.

“These are highly discretionary matters and, needless to say, I hope General Abrams does the right thing, but it’s his call,” Fidell told Fox News by phone Saturday. In a memorandum addressed to Visger sent by Fidell, the defense attorney said he was “grateful for the balanced, judicious, and humane approach you have taken to this complex case, and for the evenhanded way you conducted the public hearing.”

Philip Cave, a retired Navy judge advocate now in private practice in Virginia, sadly told Fox the commanders often follow the officer’s recommendation and that politics is at play.

“The real issue here is the politics. That’s the elephant in the room. How much is Abrams going to be affected by the politics?” Cave said. “I think the answer is, fairly little at this point.”

Meanwhile, Republican presidential front-runner Donald Trump said Thursday that Bergdahl should have been executed for leaving his post in Afghanistan and called him a “no-good traitor,” a position that he first made clear in August.

 

PPD has confirmed that an Army officer

ALASKA-STATEHOUSE-facebook

The Alaska state capitol building

If you look at oil-rich jurisdictions around the world, it’s easy to see why experts sometimes write about the “resource curse.” Simply stated, governments don’t have much incentive to be responsible when they can use oil as a seemingly endless source of tax revenue.

From the perspective of voters, this seems like a good deal. They can get lots of goodies from government without themselves paying much tax.

This is definitely a good description of how fiscal policy operates in Alaska, a state I just visited to give a speech to the Alaska Alliance.

But everything I said during my remarks will be familiar to regular readers, so instead I want to share some state-specific information from a presentation earlier this year by Professor Gunnar Knapp of the University of Alaska Anchorage. As you can see from one of his charts, the tax burden on households is very low.

But the fact that households don’t pay much tax doesn’t mean the Alaska government is starved of money. That’s because the state, on average, collects 90 percent of its revenue from severance taxes on natural resources. And since there’s a lot of oil, that adds up to a lot of revenue. A lot.

Here’s a map from the Tax Foundation, looking at per-capita state tax collections. It turns out that Alaska is actually a very high-tax state, collecting more money than 48 other states. It’s just that one sector of the economy pays the overwhelming majority of that tax burden.

By the way, notice that oil-rich North Dakota has the highest tax burden and resource-rich Wyoming has the third-highest tax amount of tax revenue. I suppose there’s some lesson to learn by comparing Alaska and Wyoming, which have lots of energy-related revenue and no state income taxes, with North Dakota, which has both.

But for purposes of today’s column, I want to emphasize a point about the boom-bust cycle and the value of spending caps.

Let’s return to Professor Knapp’s presentation and peruse a chart showing spending, revenue, and fiscal balance from 2005-present. Knapp’s slide puts the focus on surpluses and deficits, but I want to draw your attention to the fact that spending (the blue line) basically tripled from 2005 to 2013.

In other words, politicians in Alaska were not following Mitchell’s Golden Rule, which would have required them to limit spending so that it grew slower than the private sector. Instead, they responded to the influx of oil revenue during the boom years the same way alcoholics respond to an open bar. They had a spending orgy.

It’s no surprise that more revenue enabled more spending. That’s why it’s a mistake to “feed the beast.”

But let’s focus on the fact that Alaska is now in the midst of fiscal turmoil and make the very simple point that some sort of spending cap, starting back in 2005, would have prevented the current crisis.

If spending was limited so that it grew by 2 percent annually, outlays today would only be about $500 million higher than they were in 2005. Given the plunge in oil-related revenue, even that might not have been enough to balance the budget for 2015 or 2016, but the state would have had plenty of money in the state’s rainy day funds (technically known as the “statutory budget reserve fund” and the “constitutional budget reserve fund”) to fill in the fiscal gap.

And this is why spending caps are so important. Governments get in trouble because politicians have a hard time resisting the urge to spend money during growth years, when plenty of tax revenue is being generated. I’ve made this point when looking at data from California. It also applies when looking at the fiscal mess in Puerto Rico. And Greece.

But perhaps most relevant for Alaska, it’s exactly when happened in oil-rich Alberta. Politicians from a supposedly conservative party in that Canadian province also went on a spending binge when energy prices were high. But then oil prices dropped, energy-related tax collections fell, the ruling party was defeated at the polls, and a new leftist government has used the over-spending mess as an excuse to impose additional taxes.

Yet, none of that would have happened if Alberta had a spending cap. Just as the crisis in Alaska wouldn’t exist if there had been some mechanism to stop politicians in Juneau from over-spending.

Needless to say, there’s also a lesson here for Washington (one that actually was heeded between 2009-2014, but the real key is permanent, structural spending restraint).

CATO economist Daniel Mitchell explains his argument

Jeb! and Co. Have Been Quiet on a Viral Video Featuring His Appointee

Jeb-Bush-AP

Jeb Bush details his tax reform plan in a speech at Morris & Associates in Garner, N.C., Wednesday, Sept. 9, 2015. (AP Photo/Gerry Broome)

SEMINOLE COUNTY, Fla.–The Florida judge in a viral video who sentenced a domestic violence victim to 3 days in jail for failing to show up for her abuser’s trial was appointed by Jeb Bush. Seminole County Judge Jerri Collins was first appointed by former Gov. Bush in 2005, and almost fell short in the primary on August 26, 2014, garnering 51.1% of the vote. Sandra Rivera and Alex Finch also competed in the primary, splitting the vote.

During the hearing, which actually took place in July, the victim told the judge she had been having anxiety for months, was basically homeless and had been attempting to move on after she was attacked by the father of her child. She told the state’s victim’s advocate–and PPD separately confirmed that she repeated to the state attorney–that she wanted to drop the charges and move on with her life rather than testify.

In April, the woman called the police after the father of her child, who PPD has confirmed has multiple prior offenses, allegedly choked her, pressed his thumbs against her eyes and threatened her with a kitchen knife.

However, despite her requests to the victim’s advocate and state attorney, the state wanted a conviction and she was still subpoenaed to court. But she eventually failed to show, which landed her in the Seminole County jail and now she has a misdemeanor conviction, too. Worth noting, the original defendant, the father of her child, spent just 16 days in jail for simple battery juxtaposed to her 3.

Meanwhile, the Bush camp for has not responded to multiple requests for comment by People’s Pundit Daily (PPD).

[brid video=”17723″ player=”1929″ title=”Seminole County Florida Judge Jerri Collins Berates Domestic Abuse Victim Gives 3 Days in Jail”]

“You need to tell the court why I should not hold you in contempt of court, I can sentence you to jail,” Judge Collins said.

“I just, things were…” the sobbing woman said.

“Why didn’t you show up to court?” Collins interjected.

“I’m just, my anxiety, and I’m just…” the woman replied.

“You think you’re going to have anxiety now? You haven’t even seen anxiety,” Collins said to the woman in a sharp, callous tone.

“I know,” the woman said.

“Those statements you told to the police on the day of this incident, is it true? The incident that happened on April 2, is it true?” Collins asked.

“Yes,” the woman said.

“Then why wouldn’t you come to testify?” Collins asked.

“I’m just not in a good place right now,” the woman told Judge Collins.

“And violating your court order did not do anything for you,” Collins quickly spit out. “I find you in contempt of court. I hereby sentence you to three days in the county jail.”

Jeanne Gold, the CEO of SafeHouse, a domestic abuse prevention organization that offers shelter to abuse victims, said the sentence was unfair even though she didn’t blame the state for “wanting to get a bad guy.” To be fair, Judge Collins was completely within her power and on the law’s side with the sentencing on its face, as callous as that may sound.

“That’s just appalling. It’s horrible. Shame on that judge,” Gold said, adding that this could scare victims from calling for help in the future. “She’ll never call again. Look what happened to her. She could be lying, broken in a ditch somewhere, and she would probably not call police because of what happened to her in this place.”

Gold, who knows Judge Collins, said she intends to talk to her about how domestic violence victims should be handled.

“I can’t blame the state for wanting to get a bad guy,” Gold conceded. “But you cannot lean on a victim of domestic violence to solve the societal issues in our world.”

The Florida judge in a video who

Politicians love to think they can create jobs, grow the economy and, in the upcoming elections, you are going to hear all kinds of income inequality lines. The simple truth is THEY CAN’T. In this episode, I break down in very simple terms why politicians or government cannot create jobs and grow the economy. Then I share an example of who holds the keys to the economy.

I then move onto another argument from the left and even from Pope Francis, which we heard from him last week–income inequality. I break this argument down to its core and will explain why a “super-rich” person buying a Ferrari is actually a good thing for our society. Please think about these examples and use them in your discussions going forward.

Lastly, I close out the show by highlighting a couple of ordinary people who have achieved extraordinary things in life, and how it proves one simple point: the only limit you have in this life is the one you set yourself.

Please consider checking out the show which is under an hour below or by clicking on the links in Soundcloud or iTunes:

Politicians love to think they can create

[brid video=”17719″ player=”1929″ title=”Ben Carson responds to GQ article We should pray for them”]

Dr. Ben Carson, a leading GOP candidate, responded for the first time on Fox & Friends to recent attacks by the leftwing media, and the GQ article. There has been national uproar in response to and condemnation of an article entitled “FU@K Ben Carson” in the left-wing fashion magazine GQ.

Dr. Ben Carson, a leading GOP candidate,

Turkey-bombing

Oct. 10, 2015: Bodies of victims are covered with flags and banners as a police officer secure the area after an explosion in Ankara, Turkey. (Photo: AP)

Turkish Prime Minister Ahmet Davutoglu said there is strong evidence that the two deadly attacks at a peace rally in Ankara were suicide bombings. The explosions occurred Saturday as hundreds of people were gathering for the peace rally organized by leftist and Kurdish activists, just weeks before a pivotal election.

According to Health Minister Mehmet Muezzinoglu, 86 are dead and at least 186 are injured, though the death toll is expected to rise further. Prime Minister Ahmet Davutoglu also declared a three-day official mourning for the victims of the two explosions, as well as for people killed in terror attacks since July.

“Like other terror attacks, the one at the Ankara train station targets our unity, togetherness, brotherhood and future,” President Tayyip Erdogan said in a statement, calling for “solidarity and determination”.

Critics have accused Erdogan of purposefully inflaming tension and fighting with the Kurds for political and electoral gains, a charge he vehemently denies. The charge leveled against him is that he is literally counting on the turmoil rallying voters back to the ruling Justice and Development Party, or the AKP.  Electoral gains by the country’s pro-Kurdish Peoples’ Democratic Party (HDP) caused the AKP, founded by Erdogan, to lose its parliamentary majority in a June election after a decade of single-party rule. Erdogan links the opposition to the Kurdistan Workers Party (PKK).

“Suruc, Diyarbakir and now Ankara, all works of murderer Erdogan. We will tear down that palace,” a 21-year-old university student, Tarik, who had been less than 50 meters from one of Saturday’s blasts told Reuters.

Thus far, no group has claimed responsibility for the bombings.

Read Full Article at Reuters

ANKARA – Turkish Prime Minister Ahmet

white-house-irs-headquarters-dc-740

The White House at 1600 Pennsylvania Ave., left, and the Internal Revenue Service (IRS) headquarters in D.C., right.

I’m happy that many of the presidential candidates are proposing big tax cuts. Bobby Jindal and Donald Trump have large tax cuts, and Jeb Bush, Rand Paul, and Marco Rubio are proposing smaller – but still significant – reductions in the federal tax burden.

All of these plans, to be credible, should be accompanied by proposals for a sustained reduction in the burden of government spending (with real enforcement mechanisms). But there’s something else that needs to be part of the discussion. Yes, we need tax cuts and smaller government, but we also need radical tax simplification.

Consider this depressing chart showing the number of pages in the instruction manual for the IRS’s 1040 tax form. Or the number of sections in the tax law, which has skyrocketed in the past four decades.

1040-instruction-graph

I think it’s fair to say that complexity is a proxy for corruption (and even the World Bank agrees with me). Our tax code is a Byzantine mess because interest groups and lobbyists conspire with politicians to swap loopholes for campaign cash.

Some say that this problem could be solved by restricting the First Amendmentand limiting people’s ability to participate in the political process. But that’s naive. So long as we have a convoluted tax code, insiders will figure out how to curry favor with the political elite and manipulate the system to their advantage.

Rather than trashing the Constitution, we should be trashing the internal revenue code. I have lots of economic arguments for fundamental tax reform and I can wax poetic about the harm of high tax rates and double taxation of saving and investment.

But this new chart from the Tax Foundation, showing the ever-growing number of words in the tax code, is probably the single most compelling argument for a simple and fair flat tax.

Wow. It doesn’t seem to matter which party is in power. It doesn’t seem to matter who controls the White House or who controls Congress. Just as the number of pages in the tax code keeps expanding, so does the number of words.

And I think all of us know that this relentless growth in complexity is not good for ordinary taxpayers.

The only winners are the cronyists, politicians, and other insiders who get rich by using the coercive power of government.

And don’t forget that a complicated tax code means a very powerful IRS, and we’ve seen how that leads to venal corruption.

Now let’s circle back to where we started. I mentioned that many presidential candidates have proposed big tax plans that reduce the amount of money flowing to Washington. Many of those plans also include partial reforms of the tax code.

All of these components are desirable in that they both reduce the tax burden and simplify the tax system. And I could list other attractive partial reforms that are in the various tax plans. But I can’t help but wonder why no candidate has explicitly embraced the gold standard of tax reform.

[brid video=”17710″ player=”1929″ title=”The Flat Tax How it Works and Why it is Good for America”]

By the way, I’m ecumenical on a replacement system. There are other plans that satisfy the goals of real reform.

My only caveat, for those who advocate a national sales tax or value-added tax, is that we first need to repeal the 16th Amendment and replace it with something so ironclad that politicians could never do a bait and switch and saddle the American people with both an income tax and a consumption tax.

While the Republican candidates understand we need

People's Pundit Daily
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