Ron Paul takes the lead in Iowa.

[Dr Strangelove]

IIRC there is a cap on the amount of IRA contribution you can deduct.

If I go into debt so that I can earn more money is that not good? If I go into debt to buy a house is that not good? If it were not possible to borrow money to purchase big ticket items like homes I guarentee you that the modern way of life would be dramatically different. In fact there would be no developed nations, emerging economies or developing nations, the vast majority of the world would live a Third World life.

Oh, and banks lend out considerably more money than the amount of savings invested in them.

[giblets]

You're ignoring the fact that contributions to traditional IRAs are tax deductible. If you're making 50,000 dollars, and you put 5,000 into an IRA, you'll only be taxed as if you earned 45,000. Which was the whole point of what I was saying. Tax codes can influence savings.

No, I'm not ignoring that fact. In a traditional IRA you get taxed when you withdraw from it. They get taxed on their income once instead of two times.

IRAs are limited in how much you can contribute per-year. Sales tax would let you save as much as you want, tax free. Therefore, it does provide an additional incentive to save.

Yes, rather than raise the limit on IRA contributions we could do a complete overhaul of the tax system. Taking the path of most resistance

Every dollar spent paying credit card debt would be untaxed. That gives debtors a subsidy to help them get out of debt. And I've already pointed out two simple methods of alleviating the regressive nature of a sales tax.

Yes, people who got into debt under the current tax system would see their debt effectively reduced if we switched to a national sales tax, just as people who saved under the current system would see the value of their savings effectively reduced by an increase in the sales tax. Why you propose a redistribution of wealth from people who saved to people who borrowed for the intended purpose of promoting saving is a mystery to me. Hell, why don't we just have the government declare that all currently existing debts are now void and everyone starts over with a clean slate? I bet that would really spur saving and investment.

[Felch]

IIRC there is a cap on the amount of IRA contribution you can deduct.

If I go into debt so that I can earn more money is that not good? If I go into debt to buy a house is that not good? If it were not possible to borrow money to purchase big ticket items like homes I guarentee you that the modern way of life would be dramatically different. In fact there would be no developed nations, emerging economies or developing nations, the vast majority of the world would live a Third World life.

Oh, and banks lend out considerably more money than the amount of savings invested in them.

It's better to have access to credit than to not have access, you're right. But it's better to have assets than liabilities. A tax code structured to encourage the growth of assets is a good thing. Debt should be something that people are wary of, and only take on for a good reason, like expanding a business or buying a house. Banks can lend more than they hold, by leveraging their assets, but there's still a relationship between savings and debt. Leveraging increases risk, but if it is invested wisely, it can be profitable. If leveraging is used simply to finance consumption, it is wasteful and potentially destructive.

[Felch]

No, I'm not ignoring that fact. In a traditional IRA you get taxed when you withdraw from it. They get taxed on their income once instead of two times.

Because the tax is deferred until retirement, when income is likely to be lower, the overall tax burden is decreased.

Yes, rather than raise the limit on IRA contributions we could do a complete overhaul of the tax system. Taking the path of most resistance

Why not? Is the current tax system perfect? Is it impossible to improve? You're brand of conservatism is deeply troubling. If there's a way to make things better, we should consider it. Tossing out good ideas just because they represent change is unhealthy for society.

Yes, people who got into debt under the current tax system would see their debt effectively reduced if we switched to a national sales tax, just as people who saved under the current system would see the value of their savings effectively reduced by an increase in the sales tax. Why you propose a redistribution of wealth from people who saved to people who borrowed for the intended purpose of promoting saving is a mystery to me. Hell, why don't we just have the government declare that all currently existing debts are now void and everyone starts over with a clean slate? I bet that would really spur saving and investment.

Luckily there are more debtors than savers in this country. The average person would benefit from a shift. It's strange how I am both a horrible monster who wants poor people to starve, and a crazy commie who wants to destroy capitalism, but I guess there's no logic or coherence to your opposition is there? You're just an arch-conservative who fears all forms of change or progress.

[HalfLotus]

Why does Paul get this magic free pass from you guys that you would never give to any other politician?

He doesn't get a free pass from me, it's just that his proposed policies are so much better than the alternatives from other candidates that 20 year-old newsletters are pitifully insignificant by comparison.

End the senseless, unsustainable wars.
Balance the budget.
Move toward sound money and banking.

[kentonio]

He doesn't get a free pass from me, it's just that his proposed policies are so much better than the alternatives from other candidates that 20 year-old newsletters are pitifully insignificant by comparison.

Except that isn't what you've been saying before. Even after being presented with quotes that prove the man lied, you brushed it off as a 'smear'. As for the newsletters, they prove that hes a racist and a conspiracy nutjob with some very dangerously unstable ideas.

[Dinner]

Hell, the entire modern capitalist system needs there to be some debt or else the financial system would collapse.

[Hauldren Collider]

Newt Gingrich, Rick Perry fail to make Virginia Primary

Newt Gingrich declared confidently the other day that he would get his name on the ballot for the Republican presidential primary in Virginia. In fact, he said he already had the requisite 10,000 signatures and an additional 2,000 to 3,000 for safety’s sake and would probably collect even more.

But that turned out not to be the case. In the wee hours of Saturday morning, the Virginia Republican Party announced via Twitter that Mr. Gingrich had failed to submit enough signatures by the Thursday deadline, highlighting the organizational challenges to his campaign and raising questions about his prospects in a drawn-out nominating fight.

Many of the Gingrich campaign’s signatures were apparently invalid, which is why most campaigns try to collect almost twice as many as needed. Gov. Rick Perry of Texas and Representative Michele Bachmann of Minnesota also failed to make the grade.

The Gingrich campaign said it would work with the Republican Party of Virginia to pursue a write-in campaign, but Virginia does not allow write-in names in its primaries.

“Voters deserve the right to vote for any top contender, especially leading candidates,” Michael Krull, Mr. Gingrich’s campaign director, said in a statement.

This misstep is bad news for Mr. Gingrich on several levels. Virginia is his adopted home state. Failing to gather enough signatures in your own backyard creates an image problem, at the very least.

“It’s a disaster for him,” said Larry J. Sabato, a political scientist at the University of Virginia. “This sends yet another signal to Republicans that Gingrich is not able to organize.”

He added that such a lack of organization “suggests you’re not a serious candidate.”

The failure to get on the ballot in Virginia could also shake the confidence of voters in states that go to the polls before Virginia does. Why, his supporters in those states might ask themselves, should I throw my vote away on someone who might not be competing in other critical states?

Also, Virginia is the country’s 12th-largest state in population. It will be offering up a trove of delegates on March 6, and now they are out of reach for Mr. Gingrich. He has been leading in the polls in Virginia, and his brand of conservatism is a natural fit for the state.

This failure to qualify for the ballot comes at a bad time for Mr. Gingrich as he faces headwinds in Iowa, where the caucuses start the nominating contest on Jan. 3, and it comes as he remains behind in the polls in New Hampshire. His strength appears to be in South Carolina, but in Virginia, there will be no Southern candidate on the ballot.

Both Mitt Romney and Representative Ron Paul, whose organizations have been laboring in the signature-gathering vineyards for months, were able to get on the Virginia ballot.

Rival campaigns quickly seized on the setback as a sign of disorganization within the Gingrich campaign. Eric Fehrnstrom, a senior adviser to Mitt Romney, called it “cringe-worthy.”

“It’s a gut-check moment for Republicans,” Mr. Fehrnstrom said. “Winning campaigns have to be able to execute on the fundamentals. This is like watching a hitter in the World Series failing to lay down a bunt.”

Still, it is hard to predict the practical effect of Mr. Gingrich’s absence from the Virginia ballot. The state is one of 10 that vote on March 6, known as Super Tuesday. Eleven states will have voted by then, including big ones like Colorado, Florida and Michigan (and not counting Missouri, where delegates are not at stake).

If those earlier states have not winnowed the field, then Super Tuesday becomes all the more important. Because the Republicans will be picking most of their delegates proportionally this year, instead of winner-take-all, the candidates who are in the top tier now — Mr. Romney, Mr. Paul and Mr. Gingrich — are likely to be competing for each and every delegate in what is expected to be a protracted primary fight.

Mr. Gingrich does have a safety card on Super Tuesday. Georgia, which he represented in Congress, votes that day, and if all goes well for him, he should win most of its delegates. He can only hope that they make up for a shutout in Virginia.

But whether or not there is any practical effect, Mr. Gingrich immediately began suffering a psychological effect as pundits and people posting on Twitter questioned anew his ability to organize and his credibility, in light of his earlier declaration that he would make the ballot.

Michael Barbaro contributed reporting.

http://www.nytimes.com/2011/12/25/us/politics/gingrich-falls-short-of-signatures-needed-for-spot-on-gop-primary-ballot-in-virginia.html

Gingrich has also missed Ohio, right? This is becoming a pattern. Ouch.

[Dinner]

Newt never had a ground game and without that it's very hard to get the signatures you need to get on the ballot much less to get out the vote and actually win an election. BTW why is Virginia's primary laws so restrictive? Supposedly they only let a total of three candidates on the ballot for each party. That's hardly fair.

[HalfLotus]

As for the newsletters, they prove that hes a racist and a conspiracy nutjob with some very dangerously unstable ideas.

Even if he were 20 years ago, and I don't think he was, it still pales next to our dire need for a President who will stand up to the military industrial complex and to the bankers.

Stop the wars and stop the bankrupting of America, Ron Paul 2012

[Hauldren Collider]

Newt never had a ground game and without that it's very hard to get the signatures you need to get on the ballot much less to get out the vote and actually win an election. BTW why is Virginia's primary laws so restrictive? Supposedly they only let a total of three candidates on the ballot for each party. That's hardly fair.

I don't think that's true. Where did you hear that? Also, in terms of voting, Virginia is not very restrictive. It's an open primary--you can only vote in one party's primary, but you don't have to be affiliated with that party.

You're right about Newt not having a ground game. This is just pathetic though--he lives in McLean. He should be able to collect enough signatures in his own state.

[Elok]

Thanks for the good news, HC. Misfortune for Newt is a gift to America.

[Hauldren Collider]

Agreed

There's no way Virginia with all its military folks votes for Ron Paul. Looks like Virginia is going Romney

[HalfLotus]

Agreed

There's no way Virginia with all its military folks votes for Ron Paul.

????

Paul gets more donations from active duty military than all the other candidates combined.

[MrFun]

1995 interview