Newsletter 40

Secure America's Future Economy

YOUR MEMBERSHIP

Please note that dues are now $10.00. Membership means you are supporting the next generations. Stay on board – our new name may inspire unexpected twists and turns.

In a January 17th “Brainstorming Session,” our Board of Directors agreed to change our name to “Secure America’s Future Economy”. This name, suggested by webmaster, Charles Kaszytski, retains “SAFE”, but de-emphasizes “Seniors”. Most of us will be seniors and we’ll still concentrate on the future well-being of the next generations – however, by removing the word “Seniors” we are more welcoming of younger Americans who share our goals and want to help.

We removed the “Against”, because it is negative. Our new name implies more than getting the government to spend less money. But, we intend to be adamant, militant, vociferous, and effective, (add your own adjective) opponents of the present out-of-control government spending.

We welcome your reaction to this change, and your suggestions for increasing our impact.

On January 19, 2006, SAFE sent letters to each of the three members of the Delaware Congressional Delegation – Senator Joe Biden (copy on page 4), Senator Tom Carper, and Representative Mike Castle.

The letters served two purposes. First, they advised of our organization’s name change and assured that we will continue to push for SAFE’s traditional goals. Second, they challenged Messrs. Biden, Carper, and Castle to “take the pledge,” that is, acknowledge the nation’s budget mess and say what they propose to do about it.

Typically, members of Congress ignore letters from outside their respective states. Also, there is value in repetition – ten individual letters (but not form letters) will get more attention than one. Accordingly, we would encourage other SAFE members to contact their Representatives and Senators.

Here are some suggestions for those of you who follow up on this matter. Personal contacts or phone calls may be particularly effective. If your message is in writing, send it by e-mail or fax rather than the U.S. postal service (current security procedures are very time consuming). Use your own words, except let’s all use the same language for “the pledge”.

SAFE Director Ed Fasig was contacted last year by Tom Schatz, President of Citizen’s Against Government Waste, suggesting a get-together when Schatz came to Delaware to visit his daughter, a student at the University of Delaware. This resulted from Ed’s support of CAGW.

Ed suggested that Tom give a talk at the Retired Men’s Luncheon Club in Wilmington, DE. The result is that a talk before the 100+ person group is scheduled for March 17^th.

We hope the result will be more supporters for both CAGW and SAFE. CAGW is huge compared to SAFE, but we are natural allies.

You may recall that we sponsored a 2001 talk by Maurice McTigue, a New Zealander who was instrumental in making the New Zealand government smaller and more effective. McTigue received the only standing ovation that we know of at the luncheon club. We have copies of an excellent talk McTigue gave at Hillsdale College which we’ll be glad to send you (call Bill Morris at (302) 475-7060).

No. 1: The AARP “Man of the Year Award” to Harry Belafonte has received a lot of criticism from the media. Belafonte’s support of Fidel Castro of Cuba and Hugo Chavez of Venezuela is part of the reason, as reported by SAFE Director Jerry Martin. SAFE member Lovell Lee of Arkansas tells us that a seniors organization was swamped by membership requests after criticizing the Belafonte choice on the O’Reilly talk show. Belafonte is quoted as saying “I not only think that they (U.S. Leaders) are misguided, but I think they know exactly what they are doing and I think they are men who are possessed of evil.”

As this is written we are not familiar with the senior’s organization, National Association of Seniors concerns (NASCON). Their self-description is that NASCON celebrates individual achievement, promotes less government, encourages personal responsibility and endorses a simpler tax code.

No. 2: A lesser known clunker is the Job Placement Assistance Program for senior citizens. The government grant for this program was increased from $25 million to $75 million. We understand that this program overlaps similar federal and state programs, and that the AARP program has a low success rate.

No. 3: Here’s the big clunker. AARP shares the blame for the new federal prescription drug program, which is another budget buster. U.S. is in danger of a financial meltdown, and this could be the “(more than a) straw that breaks the camel’s back.”

(Editor’s Note: The government is effective in the two areas that almost everyone agrees on – the military and the courts. Almost all other areas could be handled privately with better results).

The nonpartisan Congressional Budget Office Forecast deficits every year through 2015. The White House forecasts deficits through 2010, the last year of their forecast. This on top of a projected deficit of over $400 billion this year and $319 billion in 2005.

Allen Greenspan has repeatedly urged the President and Congress to get the country’s financial house in order. He reports that these deficits, if not curbed, could endanger the economy over the long run. Increased government borrowing would drive up interest rates and slow down economic activity. The incoming Federal Reserve Chairman, Ben Bernanke, is also troubled by the budget deficits. He, too, urges the government to trim the deficits.

One can say that we now have the Middle East war expenses and spending to help the Gulf coast recover from Katrina and Rita. Once these expenses are over we can then get spending under control. We feel that with this Congress and the absence of Presidential vetoes, it’s unlikely that we’ll see a balanced budget before 2015, as is forecasted.

We urge you to contact your Elected officials to urge them to do what’s necessary to achieve a balanced budget. We do not want to see an ever increasing debt passed along to our children and grandchildren!

Another of our concerns is the continuing reliance on Chinese loans to keep us afloat. How long can we continue to rely on China and other foreign countries to bail us out? Is this good for our future? It’s risky, at best, to rely on Chinese dollars, especially.

(Thank you, Jerry. Since this was written, I received the Citizens Against Government Waste (CAGW) Fall/Winter 2005 “Waste Watch.” The main article, entitled “The Coming Fiscal Hurricane” lays out the problem in great detail. The seriousness of the problem is illustrated by phrases such as “Ticking Time Bombs,” “Fiscal Nightmare” and “Economic Meltdown”. This is real, and won’t only affect the next generations, but will affect those of us who don’t die pretty soon. I suggest that if you don’t belong to CAGW, that you join them by sending at least $25 to P.O. Box 96463, Washington, D.C. 20090-6463. Then, communicate with friends, the media, and your members of Congress – your Editor, Bill Morris).

The SAFE Board of Directors has discussed the possibility of endorsing a change in federal tax policy, to help avoid a financial meltdown. We have discussed The Flat (income) Tax and The Fair Tax and the Board has taken no action, and welcomes input from you.

I am strongly in favor of The Fair Tax. Along with other Delawareans, I am publicizing it and trying to convince Congressman Castle and Senators Biden and Carper to co-sponsor HR25 or S25, The Fair Tax bills.

The Fair Tax is a federal sales tax which would replace personal and corporate income taxes, the payroll tax, gift tax and inheritance tax. To provide the same income to the government as these taxes, economists estimate the gross rate to be 23% for services and new goods. A rebate would go to each household equal to the taxes paid when spending at the poverty level. Those spending at the poverty level would pay no net tax, most Americans would pay a net tax of roughly 15%, and big spenders would pay almost 23%.

· The Fair Tax replaces the income tax, so taxpayers will no longer need to submit tax returns or be concerned about tax audits.

· Saving of the cost of complying with the income tax, which economists estimate to be $265 billion for 2005.

· The Fair Tax replaces the payroll tax, so workers will get an immediate raise.

· The tax base will increase because everybody will pay, including those now gaming the income tax, and those who don’t report earnings.

· The Fair Tax replaces the corporation tax which has resulted in U.S. companies re-locating overseas. Many of those companies will move back and foreign companies will also move here after The Fair Tax is enacted.

For more information, see www.fairtax.org. I recommend a 2005 best selling book, “The Fair Tax Book”, by Congressman John Linder and talk show host Neal Boartz.

● OUR NEW NAME	● 3 AARP CLUNKER
● PLEDGE FOR CONGRESSMAN	● DEFICITS COULD SLOW ECONOMY
● SAFE TO SPONSOR CAGW PREZ	● THE FAIR TAX