Just When You Start to Get Compassionate

Last week, I went to the bank to make an innocent transaction. I stood in the teller line to make a deposit (I am old school, I still like to get an immediate receipt for my deposit having been made to my account). The branch was busier than usual. There was a woman in front of me in line, fairly nondescript as I recall, but nicely dressed.

As we got to the point in line where she approached the teller, I could hear the banter. The woman told the teller that she just wanted to see if her AFDC check had cleared. Now, AFDC was eliminated in 1996 under the welfare reform act signed by President Clinton. It stood for Aid to Families with Dependent Children. Presumably, she meant her TANF check. TANF was the replacement program -- Temporary Aid for Needy Families.

This did not seem like an unusual request. Times are very tough these days. Lots of people are unemployed and many of them have been unemployed for historically long periods of time. I understand this. I have gone through periods of unemployment twice in the last seven years.

Here is where it got a bit disconcerting. While the teller was checking on her computer, the woman said to the teller, "Check out my new iPhone 4S." That's right -- she wanted to know if her welfare check had cleared and she has a brand new state-of-the-art iPhone, presumably with a data plan to go along with it.

I had just been feeling sorry for this woman. As I noted, many of us have gone through tough times recently. Many of us still are. I feel badly for those people. But, when they are on welfare and they are spending their money on things like iPhones, it certainly makes me wonder.

A Better Fair Tax

Those of you who know me well know that I am a proponent of the Fair Tax, HR 25 as it has been introduced in the current Congress. In a nutshell, here is how it works:

• Every household gets a 'prebate' equal to 23% of the cost of basic needs for a household of that size
• Income is not taxed
• Payroll is not taxed
• You pay a 23% national sales tax on consumption of all new end user products

Essentially, you can tax people on either of two components, or both: productivity or consumption. Intuitively, if you tax someone on productivity, then you are telling them that working hard increases what they give to the government and decreases what they keep. I realize that's not quite right, but it feels that way. On the other hand, if you tax consumption, you are motivating people to be more productive so that they are able to consume more. That makes a lot of sense to me.

I promised you a better Fair Tax, but first I digress. Many, including some Republican presidential candidates, are espousing a flat tax. Flat taxes are regressive by nature. They place a burden on lower earners that the low-income segment of the population cannot afford to bear. And, a flat tax does not promote productivity.

However, ask an American today what the top priority for the country should be. While some will disagree, many will say that we need more American jobs. 

As I said, I like the Fair Tax. In their book on the subject, former Representative John Linder (R-GA) and radio talk show host Neal Boortz point out that CEOs of most large foreign-domiciled multinationals would move jobs and facilities to the US if the Fair Tax were implemented. [The current version of the Fair Tax is sponsored in the House by Rob Woodall (R-GA) who was formerly Mr. Linder's Chief of Staff.] Suppose we had a Fair Tax that did even a better job of promoting and developing US jobs.

Are you listening?

I haven't done the math to know what the right numbers are, but let's put the Fair Tax on a sliding scale. The technology to do this is available today. Here is how it would work (remember that my numbers are approximate as I have not vetted the math). If a product subject to the Fair Tax is manufactured entirely outside of the US (made in a foreign country with foreign components), the sales tax is 25%. If it is made entirely in the US with US components, the sales tax is 16%. For products that are partially American, there would be a sliding scale between 16% and 25%. 

This would motivate buyers to buy American which would, in turn, motivate producers to make American products. You're worried about all the jobs that have moved overseas, this would move a bunch of them back quickly.

And, again, to counter the critics, the Fair Tax is not regressive. For low income earners who buy only the necessities, they will pay no federal tax -- not income tax, not FICA tax, not sales tax. The higher earners will continue to have more disposable income, will spend more and will pay more tax. And, finally, the underground economy will be taxed. 

I'm not commenting here on the illegality of things like narcotics or prostitution, but the fact is that neither the group that peddles illegal drugs nor the group that earns in the prostitution industry currently pays their fair share of federal taxes. This would change that.

I think this truly is the better Fair Tax. Let's make it the law.

Reflecting on the Occupiers

They are a new kind of movement. They call themselves the 99%. They started out by occupying Wall Street, and now, Occupy movements are springing up in every city and nearly every major college campus.

I applaud them for wanting to bring change to something that they see as being wrong. After all, we live in a country that was founded on that (and related) principle.

However, what is it that they want to change and what do they want to change it to? They seem to be against capitalism. Yet, most of them carry items routinely that you just don't see people carrying in countries that are not based on capitalism. Where else but the United States would you see the unemployed carrying the latest iPhone, a Kindle, an Eddie Bauer backpack? And, where else but the United States would you see an unemployed worker driving to a demonstration in a new BMW? Surely, this has come from capitalism, the very thing that the Occupy-ers want to see go away.

They also appear to be very communal, as compared to individual, in nature. In fact, in their occupation in Atlanta, they are not allowing outside speakers. Congressman John Lewis (D-GA) made an effort this morning to speak to them, and he is a supporter of theirs. They turned him down saying that would make him look more important than the movement. And, when people within the movement speak, no applause is allowed as this would interrupt the speaker. Instead, they hold their index fingers in the air and wiggle them.

Interesting.

While I don't think I agree with the Occupy movement, I think they could make a positive difference. But, they need a plan. They need to identify what needs to be changed and what it needs to be changed to. And, then they need to work within the system to change it. I'm sorry. We are a country with a Constitution and we have laws. You don't get to just take up space and effect change.

Perhaps we shall see. In the meantime, I remain mystified. I just can't see the point of camping out forever to protest something, and not even present a potential solution.

Maybe I've gotten old.

When Humanity Overtakes Politics

Yesterday, I witnessed a stirring event. It happened to be at a political event, but it wasn't about the politics. Personally, I think that regardless of your politics, you will find something more important in this one.

If you are reading this, there is a reasonable chance that you know that I am the father of an autistic son. Jimmy is 26 now, and while he does have political views, the issues that matter to him are probably not the issues that matter to you, or to me. That doesn't matter.

In any event, there were four of us having a family lunch at The Olde Blind Dog in a town called Milton in north Fulton County, GA. Outside, there were people gathered, a lot of people. They were there to see Herman Cain, a candidate for the Republican nomination for President of the United States. Right around the time he began to speak, we went outside to hear him as well. We were there among probably 1500-2000 people (guessing, but I know that he was signing 500 books for attendees and there were plenty who were after number 500 in line, as well as the many who chose not to buy his book).

After his speech ended, we moved to a shady area around the side of the building. Mr. Cain was signing books. From where we were standing, we had a pretty good view of him, albeit from behind.

To fully understand this, consider the day. Mr. Cain was at The Olde Blind Dog from 3:00 until 4:30. He had a 6:00 commitment at Peachtree-Dekalb Airport, a good distance away. Said differently, he was on a very tight schedule.

It doesn't matter how it happened, but let me assure you that no money was involved. Mr. Cain was on his way to his car after finishing the book signings. He stopped off to speak with Jimmy. They shook hands. Herman Cain asked Jimmy if there was anything he wanted to ask him. Jimmy told him his two priorities.

During that time, there were a few things that I noticed. Herman never took his eyes of Jimmy. He never let go of his hand. He listened carefully and he responded to both points. Then he shook Jimmy's hand again, got in his car and headed to Peachtree-Dekalb.

You may love Herman Cain's politics. You may despise Herman Cain's politics. You know what, this is a free country and I support your right to have your feelings, whatever they may be. But, regardless of political leanings, I was truly impressed with the man. This was an exhibition of true human kindness that you just don't see every day.

Vote as you see fit. If you think that the President has been doing a good job, then please get to the polls next November and support his re-election. If you think that a Republican could do a better job, then show your support in the primaries and hope that you can vote for your candidate of choice in November. This is all part of what makes the United States the greatest country in the world.

But, no matter how you vote, do not disparage this man.

Do not disparage this man!

A True Friend

You never know it when they happen. I certainly didn't. I didn't know that August 21, 2004 was going to be a particularly meaningful day.

What happened? It was the first time that I was picking Lisa up for a date (we had met at the date place before then). I arrived at the door and was greeted by a ferocious almost-black creature making loud noises and bearing his oh so sharp teeth held in place by massively strong jaws. He could have torn me to bits and at the time, I think I knew that.

Upon placing my heart back in my chest, I learned that his name was Shep and his much smaller (at the time) little 'sister' was Duckie. Shep was about 7 1/2 at the time while Duckie was just a puppy. I had never had a dog in my life. I didn't know what to do, but as my relationship with Lisa progressed, I knew I would have to learn.

By Christmas (probably much earlier) of that year, Shep was no longer ferocious to me. In fact, I learned that while those jaws and those teeth could tear me to bits, they never would. He was playful and he was loyal. I found out that he and Duckie were special creatures indeed.

I don't know exactly when they became my four-legged children, but there was a time when that happened. I could say pretty much all of the same things about Duckie, but today is about Shep.

He is a rescue dog --part Doberman, part Shepherd. He suffered a severe hip injury during his first year of life. When you see him, you could always tell that it bothers him, but rarely has he shown it in his spirit. He is lovable. He adopted me as his Papa as much as I adopted him as my four-legged child. And, he is loyal.

As Shep is in what may sadly be his last days, he remains oh so loyal. Today he has trouble moving. He is suffering with a number of ailments, difficult to diagnose because his version of English has a limited vocabulary, But, there is one thing that I know for sure. If someone out there were stupid enough to threaten Lisa and me in our home during these days, they would still have to deal with Shep. He would be there for us, and while I don't know what would happen to him, he would make sure that we were safe.

Unconditional loyalty ...

Unconditional love ...

A true friend ...

You've given me 7 good years and I know the end is near, but if you can sense what I am writing, I want you to know before you leave us what you have meant to me.

I love you Shep.

10 Pleasant Wine Surprises Year to Date

I haven't been blogging much about wine lately and when I do, it's usually critical of people not branching out. We try our fair share of different wines here and I thought I would share a few that I've been happier with this year than I would have expected. So, in no particular order, here it goes.

1. 2008 Juan Gil Jumilla. This is a $10-$15 bottle of wine depending on where and how much you buy. It's made primarily of Monastrell, the same grape that most of the world calls Mourvedre and some of the Aussies call Mataro. It drinks now and is a very flexible food wine. I give it about 90 points.
2. 2008 Achaval Ferrer Finca Bella Vista Perdriel Malbec. If I hadn't had it at a tasting, I wouldn't be able to comment on it. This wine from grapes grown at about 3,000 feet in Argentina, may be the new standard for Malbec. It has all the characteristic malbec flavors -- violet, tobacco, garlic, raisin. The finish goes on forever, with layer upon layer and each flavor and aroma blending effortlessly into the next. Drink now through 2030, at least. Pricey in the vicinity of $100, but the 99 points that I give it may justify it.
3. 2010 Barnett Vineyards Sauvignon Blanc. At $25, this is not an inexpensive Sauvignon Blanc, but the reasons it is here are these: first, I think of Barnett as a Cabernet vineyard, not a place for white wines. Second, it's flavors were fairly unique and well-defined. The wine is clean and crisp, and only slightly citrusy on the nose. When it hits the palate, you immediately detect some ripe, juicy honeydew melon, followed by kiwi and some hints of thyme. Drink with brie or other similar cheeses, or get my wife's recipe for cold cilantro cucumber soup. 91 points.
4. 2008 Tait The Ball Buster. I saw the name and had to own a bottle or two, especially at $15. Then, we opened a bottle on a night when we weren't expecting anything much. Wow, were we surprised. Characteristic flavors of Aussie Shiraz, but a bit less jammy. Quite chewy (stay away from it if you don't like mouth feel, but if you do, look out) and another long, layered finish. Would be great with lamb chops. 92 points. Drink now through 2019.
5. 2009 Page Springs Cellars Vino de Familia Arizona Table Wine. Yes, Arizona. Grown on the estate in Page Springs, Arizona (near Sedona), this is a blend of grapes of many styles. There are Bordeaux grapes, Rhone grapes and Arizona grapes. It drinks young, but at $10 or so, what would you expect. It's light, fruity and very pleasant. 87 points and good memories.
6. 2008 Andrew Will Meadow. This is a Washington winery, but I'm not sure if the grapes in this case are Washington or Oregon. In any event, it's a Pinot Blanc, fresh, fruity, crisp, and not oaky. It's in the $14 range, and is great for a summer wine, with some soft cheese. Do you have some friends who are not wine drinkers, but you want to introduce them? Well, this is a great starter wine, but it's a very good serious wine drinker wine as well. 88 points.
7. 2006 Sawyer Petit Verdot. OK, I cheated. I had this wine at the winery well before 2011. But, this year we opened a bottle. Most people don't think of Petit Verdot as a single varietal, but more of a grape to add structure to a Meritage or other Bordeaux-style blend. I believe this wine is in the $40-$50 range. It's not cheap, but it's character is very unique. Are you a hunter? Then, kill your dinner and when you have something gamey, drink this one now, or for the next 15 years or so. 92 points.
8. 2007 Van Duzer Pinot Noir. I had never heard of this wine. My wife liked the label. We tasted it. We liked it. We liked the price, too, at $19.99. Nicely crafted with wonderful floral and spice notes. Refined enough to drink with baked chicken or trout with lemon and butter, but powerful enough to handle beef. It's ready to drink now, and we have chosen to drink a lot of it. 89 points and a great label.
9. 2009 Avanti Mencia. What is Mencia? I thought Avanti Mencia was a long lost car, cousin to the Studebaker Avanti. How wrong I was! So, what is it? It's dark, it's peppery. It's loaded with anise, mint, rosemary, thyme, black cherry. That's a lot for a $9 wine. To the mouth, it actually tastes like it will age, but at that price, we are not going to find out. Buy a case (<$100 with case discount) and get about 1056 points. That's 88 points per bottle.
10. 2004 Armida Poizin Reserve Zinfandel. The bottle will frighten you. The bottom of the bottle is quite narrow and as it flares upward, you see the red skull and crossbones glazed deeply in the black bottle. Working your way up, you see that the bottle is tightly sealed in what appears to dripping blood (actually, it's bright red wax, I think). Open the bottle if you can. The aromas explode. It's plum, cherry, peppercorn, cranberry, and high-end brandy. Pour some. Chocaholic? Right up front you'll be satisfied. Like freshly picked strawberries. It won't take long till you get them. How about rhubarb pie? It will finish and finish and finish and finish. At $80, this wine is not cheap. Why is it here? It's simply the best zinfandel I have ever had. 98 points, but perhaps more as the years go by.

Whiskey Foxtrot Tango: Government Now Required to Write in New Language -- English

Last year, both houses of Congress passed, and President Obama Signed into law the Plain Writing Act of 2010. You can read it for yourself, all three pages of it, here. Sadly, it's not written very plainly.

Under the law, beginning sometime in October (roughly coinciding with the end of the world according to the people who say that the Rapture begins in two days), the government will be required to put all new or substantially revised documents in plain written English. The requirements include these:

• clear
• concise
• well-organized
• follows other best practices appropriate to the subject or field and intended audience

Wow! The federal government is going to conform to this? What will be paying them for? Don't they spend virtually every waking hour writing crap that is murky, wordy, haphazard, and written for nobody on this planet? 

The law gives them an out though. It does not include regulations. So, the Feds will still have regulations with which to boggle the senses. And, over time, they have come up with some beauties.My favorite, because I am a benefits person were the retirement plan nondiscrimination regulations. To move into the technical realm for a second, they are there to regulate Internal Revenue Code Section 401(a)(4), all one sentence of it. 

When final regulations were initially released, do you know how many pages it took to regulate on sentence? Come on, take a guess. I'll make it multiple choice for you.

a. 11

b. 609

c. 1

d. 2,716

e. 84

What was your guess? Did you get it right? I'm not going to give you the answer just yet. But I will tell you that this regulation was neither clear nor concise nor well-organized, and many practitioners still don't understand it some twenty years later, so I don't think it was written for its intended audience.

Did you get the multiple choice question correct? Did you answer "b. 609"? No? You didn't believe that even our government could do that? Think again.

Perhaps better yet, there was the Pentagon brownie recipe reference in a regulation. I swear, I'm not making this stuff up. I'm an actuary, I couldn't possibly be this creative. It included these lovely terms:

• Regulations promulgated thereunder
• Flow rates of thermoplastics by extrusion plastometer
• Shall be examined organoleptically (that last word means by smell touch or taste)

Whiskey Foxtrot Tango?

So, there is this requirement coming up. But, there is a problem. Violators of the law will not lose their genitalia or other equally important body parts. So, I guess the government shall continue to pollute our eyes with gibberish.