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Month March 2013

Alabama: Seething in Anger

It seems them colored folk really are seething with anger. It is hard to argue with though, he really hit home with snaggle-toothed imbred cracker. While a few of the baby raping type have figured out how to pick the pockets of the sons of Abraham putting Uncle Bernie to shame, our more back woods brethren aspire to making duck calls. This is Alabama, seething in anger.

State Rep. Joe Mitchell, D-Mobile, had an outlandish exchange via email with a Jefferson County man who asked him and other lawmakers not to pass any laws that would restrict gun ownership.

Eddie Maxwell sent a mass email to state legislators at 10:54 p.m. on Jan. 27, warning them that even attempting to introduce a gun control bill was, in his opinion, a violation of state law.

Mitchell responded from his public, ALHouse.gov email account at 11:59 p.m., telling Maxwell: “Your folk never used all this sheit (sic) to protect my folk from your slave-holding, murdering, adulterous, baby-raping, incestuous, snaggle-toothed, backward-a**ed, inbreed (sic), imported criminal-minded kin folk.”

“That’s not the type of reply I expect to receive from a state legislator,” Maxwell replied on Feb. 11. “I’m not a racist and I find your reply to be especially offensive considering the position you hold.”

Copies of the email exchange were provided to AL.com by state lawmakers who were included in the correspondence. The emails are printed below, edited only to remove the specific addresses.

Mitchell, who is black, did not respond to email and telephone messages from AL.com seeking comment this week. He told the Associated Press today that he was explaining that citizens who descended from slaves and were disenfranchised by the state constitution have a different view of history and the constitution than white citizens.

Maxwell, who is white, verified that he wrote the messages sent from his email address and said he was “surprised at the racial tones” in Mitchell’s responses.

He said the exchange was the first and only contact he’s had with Mitchell, who has served in the state House since 1994.

“It just makes me more determined that we the people need to stay involved,” Maxwell said in a telephone interview today. “It’s up to us as citizens to watch our government.”

Maxwell, a retired coal miner, said he’d heard from two state lawmakers who told him they regretted Mitchell’s comments. One of them was state Rep. Patricia Todd, D-Birmingham, who said in a Feb. 11 email to Maxwell that “this member hears you loud and clear.”

“I just received this chain of emails and wanted to let you know that I am with you on the gun issue and am saddened by the tone of my colleagues email,” Todd wrote, copying all members of the legislature, including Mitchell. “All of us have suffered from the racism of the past and I thank you for your civic and thoughtful response.”

Maxwell said he hoped that legislative leaders would discipline Mitchell for his comments.

“I think (Mitchell) needs to be called in to face his actions. I think he at least needs to be questioned about it,” he said.

Eddie Maxwell (photo provided by Eddie Maxwell)
Here are copies of the emails, as provided to AL.com:

From: Eddie Maxwell

Sent: Sunday, January 27, 2013 10:54 PM

To: (all members of state legislature)

Subject: Gun Control and our Constitutions

Can the officers of our state government change our constitution when the change is forbidden by the people? The Supreme Court of Alabama has ruled that it cannot in an opinion dealing with another matter where change is forbidden. You have sworn to support our constitution. You have defined a violation of an oath in an official proceeding as a class C felony (C.O.A. Section 13A-10-101 Perjury in the first degree).

Do not violate your oath of office by introducing additional gun control bills or by allowing those already enacted to remain in the body of our laws.

From: Representative Joseph Mitchell

Sent: Sunday, January 27, 2013 11:59 PM

To: Eddie Maxwell

cc: (all members)

Subject: Re: Gun Control and our Constitutions

Hey man. You have used the word ‘except’ when I think you mean somethin’ else.

Hey man. Your folk never used all this sheit to protect my folk from your slave-holding, murdering, adulterous, baby-raping, incestuous, snaggle-toothed, backward-a**ed, inbreed, imported criminal-minded kin folk. You can keep sending me stuff like you have however because it helps me explain to my constituents why they should protect that 2nd amendment thing AFTER we finish stocking up on spare parts, munitions and the like.

Bring it. As one of my friends in the Alabama Senate suggested – “BRING IT!!!!”

JOSEPHm, a prepper (’70-’13)

Mobile County

From: Eddie Maxwell

Sent: Monday, February 11, 2013 2:23 PM

To: Representative Joseph Mitchell

cc: (all members)

Subject: Re: Gun Control and our Constitutions

Rep. Mitchell and other members of the Legislature of Alabama,

That’s not the type of reply I expect to receive from a state legislator. The lack of response to your racist comments from your fellow members speaks volumes about the state of our legislature as a whole.

I’m not a racist and I find your reply to be especially offensive considering the position you hold.

My parents and grandparents taught me to love God and my fellow man as myself. My father was threatened by members of his church back in 1954 for inviting a black family to attend the church he pastored.

My father-in-law was threatened when he hired a young negro man to work in his shop back in 1968 in a community where several neighbors were members of the Ku Klux Klan. He didn’t allow those threats to keep him from treating people of all races equally.

In 1969, I was a draftee in the US Army and bunked with a young negro man named Earl Shinholster at Fort Benning. Earl later became a prominent leader of the NAACP back home in Georgia after serving with me in the Army. When I received numerous racist threats from negroes who knew I lived near Birmingham, Earl warned me of the knives they carried and cautioned me to be more careful around them. Earl had been watching me and he had come to know and respect me for my Christian values. Earl and I became friends and he helped me get through some tough times there.

Racism is not exclusive to my own people. I learned that before 1955. It is just as ugly now as it was then, regardless of the race of the person who is consumed by it.

I love my country and my state, and I vowed to support and defend our constitutions. I expect you and all of our representative to do the same.

Sincerely,

Eddie Maxwell

From: Patricia Todd

Sent: Monday, February 11, 2013 4:41 PM

To: Eddie Maxwell

Cc: (all members)

Subject: Re: Gun Control and our Constitutions

Mr. Maxwell:

I am Patricia Todd, a member of the house. I just received this chain of emails and wanted to let you know that I am with you on the gun issue and am saddened by the tone of my colleagues email. All of us have suffered from the racism of the past and I thank you for your civic and thoughtful response.

We all have different life experience that shapes our values. I pray that we can all respect, and, celebrate, our differences. That is what make America the greatest country on earth, scars and all.

This member hears you loud and clear.

From: Representative Joseph Mitchell

Sent: Wednesday, February 13, 2013 5:09 PM

To: Eddie Maxwell

cc: (all members)

Subject: Re: Gun Control and our Constitutions

Eddie. I grew up in Albany Ga. I was a military brat for most of my youth. Air Jump Master and DI USMC. Because I preference my issues with the values that I learned in ‘the heat of battle’ during the mid-fifties through the ‘70’s and into today might tell you what and who I am. I find no need to define it or explain it to you because you can identify with the threats of reprisals against your folk for helping somebody of African Descent. I know ol’ Ft. Benning and Columbus like the palm of my hand.

Where were you during the Albany Movement? Oh…. You shoulda been there. I am certain that your experiences through how your kin folk ‘helped’ colored folk would have helped us a lot when we were bombed in Albany, Leesburg, Newton and Sylvester.

I apologize for the restless nights your folk endured out of fear of the Klan. At least as they stood on the sidewalk watching my cousins and me get beat up by some of your neighbors they were able to push you out into the street to physically intervene. They did do that didn’t they? Oh …. Well, I rear where you were one of the first to integrate the all-colored school to prove your parents point.

Do you that your fathers ‘black’ friend was unable to get FHA benefits? Knowing about those knives and stuff were of benefit but did you know that colored military typically carried knives to protect themselves from folk who looked like your father? Historically, violence on Black folk was committed by White folk. It’s a fact but is it ‘racist?’ It is ‘racial.’ I had seven uncles and three aunts who served in three different ‘encounters. My father was Regular Army.

Eddie, a person without the power to exercise a threat cannot be a racist because he or she will be eliminated. A person who can, by merely stepping back on the sidewalk’ ore being quiet can support racism and benefit from the ‘first hired,’ affirmative action, preferential treatment fostered by systemic racism and bigotry.

It is unlikely that I, through sharing my many experiences on the receiving end, will convince you of your errors. For that matter, you will never convince me that our discomforts were comparable. Let the next generations resolve this continuing story.

Lock and load.

jmitchell

Alabama: Living In And Leaving A Death Spiral State

If you live in Alabama then you live in a death spiral state.

This is not good news to me but I can’t say it was completely surprising. Alabama has lost a lot of its traditional agricultural base over the years. It still is a state where there is a significant federal presence. Public sector teacher’s unions are strong. Government benefits are rich. Public pension funds are underfunded. The largest counties voted for President Obama in the last two Presidential elections.

William Baldwin of Forbes magazine wrote an article late last year where he identified eleven states that he considered to be “death spiral” states that were dangerous for investors who might be considering starting a business, buying a house or purchasing a municipal or state bond.

He based his list on a simple formula that took into account the ratio of takers compared to makers in the state. In other words, the number of individuals in the state who were receiving some form of government benefits (as an employee, government pension or welfare recipient), “takers”, compared to the number employed in the private sector, “makers”.

To arrive at the number of takers, Baldwin used the number of individuals on Medicaid as a proxy for those on welfare, the number of total state and local employees for government employees and calculated the pension number as being 1 for every $100,000 of unfunded pension liabilities (this seems fair as if the pension is unfunded it will need to be covered by future taxpayers. Funded pension assets should have no effect on taxpayers as the assets are in place to support the pension promise).

To arrive at the makers, he simply used the number of persons employed in the private sector. After all, the bill for any payments any government entity pays (worker, pensioner, welfare recipient) must be paid by someone. And all that money ultimately must come from the private sector because government does not create anything. It merely is a transfer agent or middleman.

The death spiral is so-named because as the number of takers increases in a state the more pressure it puts on the remaining makers. Baldwin puts it this way.

Let us give those takers the benefit of our sympathy and assume that every single one of them is a deserving soul. This person is either genuinely needy or a dedicated public servant or the recipient of a well-earned pension.

But what happens when these needy types outnumber the providers? Taxes get too high. Prosperous citizens decamp. Employers decamp. That just makes matters worse for the taxpayers left behind.

Let’s say you are a software entrepreneur with 100 on your payroll. If you stay in Huntsville, your crew will support 139 takers. In Texas, they would support only 82. Austin looks very attractive.

I saw this first-hand a couple of weeks when I was in Austin, Texas for an investment symposium. The firm that sponsored the event used to be headquartered in Santa Monica, California. It moved its offices to Austin several years ago and with it they took several hundred high paying jobs (and taxpayers) to Texas. Good for Texas. Bad for California. And especially bad for the taxpayers left in California. How long do they keep paying the bills before they also decide to move?

That is how the death spiral works. Every spiral down creates another spiral down. At some point you reach the point of no return.

Here are the 11 death spiral states according to Baldwin along with the Taker Ratio (the number of takers compared the the number of makers).

The five strongest states, in descending order, are North Dakota, Nebraska, Utah, South Dakota and Virginia.

What if you live in a death spiral state and you think about leaving to avoid the future tax bill?

Have you ever heard of an exit tax?

I was a tax attorney and CPA for a number of years and I must admit I never had heard about an exit tax until I saw this article in Real Clear Markets. However, the determination and creativity of a government entity to find ways to raise revenues should never be underestimated. Insatiable appetites require an infinite aptitude in separating taxpayers from their money.

What is an exit tax? It is a tax imposed on a citizen who chooses to leave the jurisdiction of a government entity. Exit taxes imposed on emigrants have a long history, including their use in both Nazi Germany and the Soviet Union. They were imposed under the theory that, since citizens were educated by the government and were either provided benefits or allowed to profit from jobs and business held while living under the government’s protection, they were obligated to pay back some of that money on their way out.

Sounds like something only a Hitler or Stalin would love? If only. Try surrendering your U.S. citizenship and moving to another country. Thanks to a series of expatriation tax laws passed by Congress dating back to the 1960s, with the most recent revision sponsored by Rep. Charles Rangel (D-N.Y.) (no stranger to tax evasion himself), emigrants leaving the U.S. must pay capital gains tax, including on unrealized gains, across all their holdings marked to market as of the day of departure. In addition, expats are liable for gift taxes on amounts above $12,000 a year given to anyone in the U.S., for the rest of their lives, even though they are no longer citizens themselves.

To date, the Supreme Court has had no problem with any of these laws. So what is to stop, say, California from imposing exit taxes on the steady stream of citizens heading off for Texas, Arizona, and Nevada? More than 200,000 people flee the Golden State every year, taking their money with them while leaving behind their share of the state’s $617 billion in state debt, which comes to about $16,000 per resident. That’s $3.2 billion a year in tax evasion!

I would be especially be mindful of exiting stage left in a state with leftist politicians at some point in the future. That is not to say that exiting stage right might be any better. When a politician runs out of money they run out of power. It does not matter what party they are in. You never want to be the person between the government and its appetite for spending. It would be better to be between a piece of red meat and a grizzly coming out of a long hibernation.

If you are reading this please consider the bulls-eye painted on your rear. Move if you can, move if you can- now.