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    Guess Which Agency May Be Forgoing Millions in Federal Dollars?

    One article that recently appeared in the Star-Advertiser was titled, “State forgoing millions in federal reimbursements.”  The state agency referred to in that article was our Department of Education.

    We have children from indigent families in our school system. Some of them, especially in special education, can and do benefit when they receive services from health professionals. When that happens, the school can bill Medicaid for those services.

    According to the article, many states have done this.  In 2016, according to federal data, the average reimbursement that Medicaid sends to states was about $48 million. The federal data says Hawaii got around $0.26 million, but the DOE says the total is closer to $0.5 million.  Which is one percent of what the average state receives.

    As an example, one clinical psychologist’s report on the DOE system in 2006 noted that all students on Medicaid “are entitled to EPSDT (Early, Periodic Screening, Diagnosis and Treatment), a benefit that includes both a health screen and a mental health (social-emotional-behavioral) screen periodically between the ages of 0-21.  This can be done in physician’s offices, or in some states, it can also be done by Public Health nurses, even within the school setting.”  Catching psychological problems early in our student base is of course important so that they don’t later become complicated and costly, and if we can get Uncle Sam to pay for such services, so much the better for us locally.

    When questioned, a DOE spokeswoman quoted in the article said that the Department is “aggressively going to seek reimbursement for every service and every eligible child that we’re able to. We are committed to doing that.”

    But will they?  It’s a lot of work going after Medicaid reimbursements.  The services for which Medicaid is billed need to be deemed medically and educationally necessary, they need to be performed by a licensed provider, and they need to be properly documented.  It’s hard for doctors and their own medical staffs to keep track of all this, and there are even specialized shops who claim to be proficient in medical coding, which is the way the medical professionals are supposed to tell the federal government what was done, why, and how much it cost.  How do we expect schools, which aren’t in the medical business, to wade through all that federal government red tape?  Obviously, this is a nut that the typical school with typical educators is not going to be able to crack easily.

    Besides, under federal law the Legislature is supposed to be adequately funding special education, period, so it’s irrelevant whether the DOE seeks out federal dollars.  It is very tempting for a DOE administrator to think, “There’s no benefit for us if we do all this work because the Legislature needs to fund us anyway.  The only thing we can expect the Legislature to do if we get this money, is to reduce our general fund appropriation.  Who needs that?”

    Providing appropriate medical services isn’t within the expertise of a “typical” school, but these days we require our schools to go beyond simple education, especially in the special education realm.  Because the DOE must, and does, provide these services, the DOE should have infrastructure to take advantage of federal benefits to pay for them.  That would be helpful for us taxpayers, who are supposed to be whom the DOE is really working for.  Let’s make sure they keep their word and go after whatever available monies there are.

    Guess Which Agency Can Impose State Tax?

    Lots of the controversy swirling around the ballot measure seeking to impose a “surcharge” on investment property to support public education involves our Department of Education (DOE).  The DOE currently receives an appropriation from the State’s General Fund of about $2 billion and is also able to pull from other funding sources such as federal funds.

    But did you know that the DOE can also impose tax?

    The Hawaii Revised Statutes contains twelve sections  relating to “school impact fees,” starting with section 302A-1601.  The law states, in part, “New residential developments within identified school impact districts create additional demand for public school facilities.  As such, once school impact districts are identified, new residential developments shall be required to contribute toward the construction of new or expansion of existing public school facilities.”

    Builders of large projects within school impact districts are required to provide land for school facilities depending on the numbers of students expected in their projects and the amount of available classroom space in existing area schools.  Smaller developers and individual home owner-builders are required to pay a fee instead of land, when their project is too small to entertain a school site.  All home builders or buyers must pay a construction cost fee.

    This law, which we have discussed before, recently has been used to create a “school impact district” that goes from Kalihi to Ala Moana.  It’s defined as the areas served by the following elementary schools: Fern, Kalihi Kai, KalihiWaena, Linapuni and Puuhale in the Farrington Complex; and Kaahumanu, Kaiulani, Kauluwela, Likelike and Royal in the McKinley Complex.  Yes, the impact district “tracks” the path of the new Honolulu rail line, pardon the pun.

    In a news release, the DOE announced that the fee, which goes into effect on October 1, will be $3,864 per unit.

    That fee is considerably cheaper than the $9,374 proposed two years ago, but it’s not chicken feed by any means.  Multiplying the current fee by the 39,000 additional dwelling units that the DOE is anticipating yields more than $150 million, many times more than the $4.7 million in school impact fees it has collected to date for districts in Leeward Oahu, West Maui and Central Maui.

    These fees, of course, are going to have to be paid by someone.  If you think they are all paid by wealthy, fat cat developers who are going to be swimming in money because of the transient oriented development, think again.  These costs get passed along to home buyers or renters, in one form or another.

    According to its audited financial statements for fiscal 2017, our DOE’s total revenues were $2.915 billion and total expenses were $2.817 billion.  A recent Star-Advertiser article (Aug. 19, 2018) raises questions about whether the DOE is entitled to tens of millions more in federal reimbursements (and we will write about this next week).  And, of course, it is the only state agency with independent taxing power.

    Let’s now turn our attention to making sure that all entitled revenues are being properly claimed and those billions of dollars are being spent efficiently and wisely

    Falling for the Progressive Tactics on Kavanaugh

    BY FRANK SALVATO

    Where the sideshow political circus that is the Kavanaugh confirmation hearings is concerned there are a few quotes and realities that we all should consider. If we are not careful, the mainstream media and the Progressive-Left will turn us all into useful idiots…and that moment is coming quickly.

    “But the most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly and with unflagging attention. It must confine itself to a few points and repeat them over and over. Here, as so often in this world, persistence is the first and most important requirement for success.” – Adolf Hitler, Mein Kampf

    This is the source of the notion that if a lie is told often enough and loud enough, eventually the people; the masses, will accept it as truth. This is exactly what is happening with the Kavanaugh confirmation hearings and the alleged accusations of sexual misconduct; a “go-to charge” for almost every smear campaign levied by the Left. Sadly, sex sells, even in politics.

    We have heard nothing but the thump-thump-thumping of this story for weeks. First the accuser had to be anonymous. Then the accuser said she would not engage with testimony. Then the accuser wanted a full FBI investigation. Now the accuser is agreeable to testify. Thump (sex scandal), thump (sex scandal), thump (sex scandal).

    Thump. Polling is starting to indicate that people are entertaining the idea that the allegations might be plausible. Imagine that.

    Please note that there has been no law enforcement investigation into these 35-year old claims against Judge Kavanaugh. None. All of the supposition is based – exclusively – on an accusation with no evidence provided that would even remotely be admissible in a court of law. The Progressives knew this and, therefore, tried the matter in the insanely fickle court of public opinion, the Mrs. Kravitz’s of the world clucking on social media.

    So, for the past few weeks ,we have heard the unproven narrative – made by an activist professor and her Soros-associated attorney (who had a very different attitude toward sexual harassment when the accused were Bill Clinton and Al Franken) – repeatedly and the polling is starting to reflect the repetitive application of the message. People are starting to believe what has yet to be proven because the propaganda machine is feeding it to them like oxygen through an endotracheal tube.

    It is alarming – and that’s putting it mildly, that people are willing to consume unproven narratives as fact simply because it is printed in the media (both traditional and social) and spewed over the airwaves. There is no effort at all to corroborate the facts before they form their opinions. We should all be repulsed by the reality that we have become: an unthinking blob of a mass that exists beneath the gray machine cogs of the characters in Orwell’s 1984.

    Unless we can neuter the potency of a blatantly dishonest media and a social media apparatus that turns fiction into truths we have to come to the realization that the Republic is lost. If that is not to be our future we have an incredible amount of work to do in a short amount of time and that means doing some of that Sons of Liberty stuff, my friends.

    “The best propaganda is that which, as it were, works invisibly, penetrates the whole of life without the public having any knowledge of the propagandistic initiative.” – Joseph Goebbels

    Say It’s a Tax!

    The news recently mentioned a lawsuit that the City and County of Honolulu, now joined by the other three counties, has leveled against our state government regarding the HSTA-sponsored constitutional amendment.  The counties, obviously not overjoyed at the prospect of the State slapping a surcharge on their primary source of revenue, want the courts to void the ballot question.  They list several reasons, including that the ballot question is misleading; that “investment property,” the subject of the new tax/surcharge, is hopelessly vague; and that Senate Bill 2922, which contains the amendment, was improperly adopted.

    We at the Foundation decided we couldn’t sit still while all of this was going on.  We sought to jump into the action with a “friend of the court” filing.  Rather than dispersing our energies among all the arguments that the counties are making, we decided to weigh in on one issue only.

    The issue is this.  The ballot question that the voters will see is, “Shall the legislature be authorized to establish, as provided by law, a surcharge on investment real property to be used to support public education?”  This “surcharge” is going on top of the real property tax.  Yet the ballot question doesn’t say anything at all about tax.  Does that make the ballot question misleading or deceptive?

    We think it does.

    To make it clear, the Foundation is not taking a position on whether the public should vote “Yes” or “No.”  But we think the public should know that they are voting on a tax.

    As support, we found an Arkansas case from 1936.  That case, Walton v. McDonald, 192 Ark. 1155, 97 S.W.2d 81 (1936), involved a proposed law, which their ballot described as, “An Act to provide for the assistance of aged and/or blind persons and funds therefor, the administration and distribution of same, penalties for the violation of Act, and for other purposes.”  But it proposed a permanent 2% general sales tax to provide that assistance.  As here, there was no mention of “tax,” and the court was bothered enough to void the act even though the voters passed it.

    Whatever you may think of Arkansas or Bill Clinton country, the Arkansas Supreme Court has a point.  We need people to know what they are voting on.  The court said:

    The proposed ballot title fails to disclose the vital portion of this act, which is, not whether some provision shall be made for the aged and the blind, but how that provision is to be made.  We do not hold that it is essential that the ballot title should have disclosed what the provisions for the aged and blind should be, or the amount thereof.  But we do hold that the manner of making this provision is of the essence of the act.  It is an essential fact which should be disclosed to the elector, and could have been done by the addition of only a few more words and without recitation of details.  Every one knows the general operation of a sales tax.  The undisclosed fact is that such a law will be put in operation.  The ballot title does not, therefore, meet the test that it shall be free from any misleading tendency, whether of amplification or of omission, and we, therefore, hold it insufficient.

    In other words, mentioning “tax” is necessary for voters to understand what is going to happen if they vote “Yes.”

    Stay turned for further updates as this case makes its way through the court system.

    UN Makes Buying ‘Made in the USA’ As Hard As It Can Get

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    BY FRANK SALVATO

    Did you know that before you even wake up in the morning you are subsiding profits to Chinese companies? It has to do with how our country levies shipping costs for products shipped from China. The fact is, shipping costs for products shipped by China into the United States are tantamount to nothing.

    Without ever buying a single item online shipped from China, the American taxpayers – all of us – are subsidizing Chinese companies because of an antiquated system established by the Treaty of Bern in 1874. In its current form, it recognizes China as a poverty-ridden country and subsidizes shipping costs at a grotesque disadvantage to US companies and small businesses.

    This issue caught my attention as I listened to a radio interview a couple weeks back. It featured a short-documentary filmmaker named Ami Horowitz, who did research on the subject. I urge everyone to watch the YouTube video short “Going Postal: Why are US Taxpayers subsidizing all Chinese packages?!” You will be disturbed.

    As Horowitz explained, in addition to China’s low labor costs and almost non-existent regulatory oversight, China is taking advantage of a decade’s old antiquated system that established the Universal Postal Union, a creation of – you guessed it – the United Nations. This “specialized agency” allows member nations to ship any product anywhere in the United States for a discounted rate; for China, about $1.50 a parcel without regard for real costs associated with delivery.

    This means that a $5 one-pound package sent from China would cost $1.50 to ship to anywhere in the United States, while a $5 one-pound package sent from New York to Chicago would cost the business $7.42. The Chinese company would make a $3.50 profit and the American company would suffer a $2.42 loss, and all because the United States Postal Service has been directed to adhere to a dictate mandated by the United Nations.

    Within the system of the Universal Postal Union, China is considered a “Group 3” country meaning it qualifies for some of the lowest postal rates within the arrangement. China disingenuously joins destitute countries like Gabon, Botswana, and Cuba, as well as other poverty-stricken third-world countries, in special interest status because of their economies.

    These special interest shipping rates necessarily lend themselves to disenfranchising US companies and small businesses from the marketplace. Case in point: the Chinese behemoth Alibaba.com.

    Alibaba.com is the 500-pound gorilla in the online marketplace. They sell 3 times as many products as Amazon.com. To put that in perspective, Amazon.com sold 5 billion items via Prime Worldwide in 2017. Given the intense imbalance in the shipping cost playing field, Alibaba.com is well positioned to dominate the US online market in the years to come. And while this sets the stage for disaster for the US companies and small businesses who sell on Amazons.com, the situation gets much worse and all-encompassing.

    These unfair and discriminatory shipping rates – again, subsidized by the US taxpayer – affect everything from online sales to brick and mortar stores and all of the cogs of those machines as well. Because more and more people are making online purchases, brick and mortar stores are struggling to survive and that means everything associated with them suffers: the people who transport products, people who manufacture packaging for products, and all of the companies that employ people who touch those components.

    Recently, I posted comments in a Facebook Group covering the topic of loose leaf tea exclaiming my support for buying products that are “Made in the USA”. I was immediately confronted by Progressive-Left one-worlders who chastised me for being pro-United States. It would seem that even in an arena as innocuous as the tea world there are those who couldn’t care less about a fair and even playing field for the small and start-up business person here in the United States.

    As a point of reference, where this staple is concerned, all the tea we Americans buy in the stores is imported. The big exporters to the United States are India, Sri Lanka, Japan, Argentina – and the biggest of them all, China. And while there is one indigenous plant to the United States – yaupon – that is a true tea plant, only a few brave souls seek to cultivate and process the plant for sale here in the United States. Incidentally, most all of these small US businesses exist online (read: must pay shipping costs) and have to compete with overseas imports (read: China, that pays no shipping into the United States).

    Everything from tea to electronics, apparel to beauty products, and any and everything that can be bought online is bought at a disadvantage to American companies and small businesses thanks to the United Nations, the Universal Postal Union, and the one-worlder Progressives (and they exist on both sides of the political aisle) who are co-opting US tax dollars to subsidize a hybrid Chinese Capitalist-Communist economic system over our own economy.

    If there was ever a subject that could unite the Left and the Right politically in our country this topic simply must be it: the elimination of preferred (read: discriminatory) shipping cost rates in business by the United States Postal System.

    Making China and the other nations that market to Americans pay their fair share in shipping costs is a no-brainer. It would create fair trade in the marketplace, infuse funding to an already ailing postal system, and create employment opportunities across the United States as wealth and revenue streams infused our economy here at home.

    One has to wonder if the America-haters will ever understand that putting the United States – the largest consumer nation in the history of mankind – at a disadvantage economically is tantamount to killing the goose that laid the golden egg for every other nation and economy on the planet. As the line from Forrest Gump goes: “Stupid is as stupid does.”

    Historic Homes in Honolulu County

    One of the more unique property tax exemptions in the City & County of Honolulu is the exemption for “Historic Residential Real Property Dedicated for Preservation.”  Under the exemption ordinance, owners of historic homes can save thousands of dollars in real property taxes every year if they put up a certain plaque, allow viewing of the home, and meet other requirements.  For the fiscal year ending June 30, 2019, the City is giving the exemption to 342 homes and forgoing taxation on $600 million in property value, translating to a revenue loss exceeding $2 million.

    Eight years ago, the Honolulu Star-Advertiser fretted that our city “is giving major property-tax breaks to nearly 250 owners of historic homes – forgoing nearly $1 million in annual revenue – without adequately enforcing key requirements of the exemption program.”  At the time, the newspaper found examples of homes with no plaque, with views of the historic home blocked or obscured by vegetation, or at the end of a driveway with a “No Trespassing” sign.

    Five years later, the City Auditor issued its Report No. 13-02, finding at that time that the City could collect over $555,000 in property taxes from historic properties that didn’t comply with the exemption requirements.  The City Auditor found that several properties had no plaque, had view obstructions, or were being used for commercial purposes or illegally.  The Auditor observed that the exemption ordinance allowed the City to cite the owner, and if the noncompliance were not corrected to cancel the exemption retroactively.  The Auditor made several recommendations to address the perceived lack of enforcement.

    The City’s Real Property Assessment Division (RPAD), however, refused to acknowledge that any problems existed.  It pooh-poohed one of the recommendations, for example, by saying, “RPAD has no authority under the ordinance to cancel any dedications based on use.”  So, a homeowner could disregard the exemption requirements and get away with it scot-free?  It would be shocking if the lawmakers who penned the ordinance agreed with that interpretation.

    “After a thorough review of the report,” the department director continued, “we conclude that the recommendations will not lead to any material improvements … and many of the deficiencies cited by the auditor are not based in fact.”  And that’s not even the nastiest part of the response letter.

    Sadly, the head-butting between the City Auditor and the Department of Budget and Fiscal Services doesn’t end there.  The Auditor is required by the City Charter section 3-502(1)(d) to follow up and monitor compliance with audit recommendations.  In its Audit Recommendations Status Report, No. 18-03, the Auditor lists all 17 of the recommendations it made to RPAD in Report No. 13-02 (including all of the suggestions it made regarding the historic homes exemption) as “N” for Not Started, as of April 2018.

    Now, come on.  If we intend to be serious about improving our government, which is the objective of having an independent city auditor examine agencies and make recommendations, then we cannot tolerate agencies thumbing their noses at the auditor.  It is critical not to waste resources that are available, and to ensure that we aren’t encouraging scofflaws (or opportunists) to game the system.  At a minimum, our finance agencies need to be beyond reproach.  They need to give us, the taxpayers, a coherent explanation of how they are addressing the auditor’s recommendations, why they can’t, or why the auditor is mistaken.  Unvarnished disrespect shows that our government is dysfunctional and needs to be fixed.  Perhaps Mayor Caldwell needs to take a few people out to the woodshed….

    Medium: The New Mouthpiece of the Hyper-Leftist

    BY FRANK SALVATO

    Not too long ago, a new “media” platform emerged on the Internet. Medium promised to be something of an equalizer for new media writers. Someone who took the art of communication seriously (but lacked the indoctrination certificate of the ideologically-bent journalism schools) would have the chance, if diligent, to make a reasonable amount of profit for their knowledge and efforts. But just like anything that shows even a modicum of promise where the information sphere is concerned, Medium has fallen to Progressives and Leftists.

    A list of recent article titles says it all:

    • If You Think Socialism’s Unaffordable, You Don’t Understand Capitalism
    • The Quislings of the American Collapse
    • As QAnon Goes Mainstream, Trump’s Rallies Are Turning Darker
    • Fearing a Trump Return to Torture, Phycologists Keep Ban at Guantanamo
    • If You Want More Capitalism You Should Want More Socialism
    • Evangelicals, Catholics Attack LGBTQ Children
    • Selling the Idea of Empire to Americans
    • Can White Liberalism Save America
    • Protests Are Not Enough. The Trump Resistance Needs Money.
    • The Ethical Collapse at the End of Capitalism

    It goes on and on for as far back as you care to stomach it.

    First, it needs to be said (as if the aware don’t already know) that Capitalism is under attack by the Progressive Left in the United States. Ever since the election of Barack Obama, Progressives have believed they had the “goal line” in sight. They saw – and rightly so, a dysfunctional Republican Party leading a fractured Conservative Movement far behind them on the race to the finish line. The prize at the end of this finish line: transforming the United States from a Constitutional Republic to a Socialist Democracy. Progressives were racing for the goal line while the Right seemed to not even know what game was being played.

    But Progressives misjudged their time “came out,” racing for the goal line thinking victory was at hand. Then the country swung back to the center from its misguided surge to the ideological Left.

    The intellectual argument in If You Think Socialism’s Unaffordable, You Don’t Understand Capitalism, represents the still Progressive wing that still believes the country can be duped into believing the false promises of Socialism. The argument in the article not only doesn’t hold water, it is arrogant in its simplistic view of Capitalism. To wit:

    “Yet in America, the prices of all the basics of a good life…have risen by hundreds or thousands of percent. Perhaps you think I exaggerate. Very, well, let’s review the evidence. Healthcare has risen by two thousand percent. The price of education has gone up by 1000%. Food, 300%. Rent and house prices, 400%. Childcare, 500%. Those are all conservative estimate, too, from what I reckon…

    “…Predatory capitalism. In industry after industry, consolidation has been the norm. Huge monopolies have been built. Those monopolies have raised prices relentlessly every year, because that is what monopolies do — because capitalism demands rising profits, no matter what the cost to human beings is….”

    “How are Americans overpaying? Obviously, there’s the direct cost — they’re broke! But then there are the indirect costs, too — the “opportunity costs”, as Americans say. Americans live five years less than Europeans. The suicide rate is skyrocketing. They don’t trust their institutions or their society. Their kids can’t afford to move out. Mistrust, despair, loneliness, rage, futility, depression — right up to life itself. These are costs, too, that American pay predatory capitalism. They are massively overpaying capitalism for the basics of life, not just with money, but with their potential — their time, energy, minds, bodies, and lives…”

    “Socialism” — minor-league social democracy — just as in every other rich country, will lower the prices of the basics of life massively, systemically, and permanently. It reduces the price of all the basics of life, which American faces severe eudaimonic hyperinflation for now because capitalism keeps jacking it up…”

    A cursory look at every pure Socialist Democracy proves all of this to be a load of horse shit. Venezuela, Greece, Cuba (a Communist country masquerading as a Socialist Democracy) and the usual suspect despot nations in Central and South America and Africa, prove beyond doubt in their economic demises that Socialist Democracies always – and without fail – crash into full-blown Communism or the economic upheaval of revolution; their people crushed beneath the jackboot heel of poverty and oppression.

    Capitalism, on the other hand, is the only economic system – in the history of mankind – to create a Middle Class. In Socialism, Communism, Oligarchies, and Monarchies there are only the “haves” and the “have-nots.” Capitalism, even at its most flawed (yes, even with predatory Capitalism and the disingenuousness of monopolies like Google and Facebook), is a system of opportunity where one can work to elevate his or her financial situation; thus the absence of serfs and lords, and a Middle Class that spans the economies.

    Perhaps what Medium should do, if the powers that be there want to salvage their publication from the jaws of the propaganda monster, is to explain why colleges (who get federal and state tax dollars, donations from Alumni and corporate America, grants from philanthropic organizations, and who still charge outrageous tuitions) are turning out liver-damaged and indoctrinated masses of uselessness at every graduation. Maybe Medium should talk about some of the shocking salaries and benefits unions force employers to pay to employees thus forcing the cost of food and housing through the rhetorical ceiling. And childcare? How about making it easier to have a one-income family so that a parent – rather than a village idiot (read: Hillary Clinton and her ilk) – can raise a child?

    These are topics that should be explored by the new media (the mainstream media is too far gone to have credibility in discussing these issues), but Left-leaning and Progressive propagandists – like those who make the decisions at Medium – are more interested in social engineering and ideological indoctrination than the truth about society and economics.

    Until there are people with spines enough to speak without fear; to jettison political correctness and have the courage to brand an idiot an idiot, we are doomed.

    Seventeen Years After ‘The Falling Man’

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    BY FRANK SALVATO

    We are seventeen years on from the most significant event of our lifetimes: the Islamofascist terror attacks of September 11, 2001. For those who were aware on that day, the events were life-altering, changing the world forever, yet it seems as though we, as a society, have forgotten both the threat and the identity we all were forced to admit. We, the American people, are failing to learn from the events of history; we are failing to learn from the lesson of “the falling man.”

    On that fateful day, we all watched as our fellow Americans were brought to a very ugly decision: to weather the heat, flames, and smoke only to suffocate and/or burn to death, or jump from an unimaginable height to a certain death. We watched “the falling man” as he lept from the upper stories of the North Tower at the World Trade Center at 9:41:15 AM EST. In less than a minute he would meet his death at the pavement below.

    In the moments, days, weeks and months after the attacks of September 11th, our nation came together as a people. White, Black, Brown, Red, Yellow; Christian, Jew, Atheist, Agnostic and even Muslim, we all became one American people. We were attacked. Our country was attacked. Our people were slaughtered. We felt the grief, the anger, and the bewilderment as a people. We sought to learn about our attackers as a cohesive people and we, as a people, supported bringing justice to those who perpetrated the attacks.

    But almost as abrupt as the attacks, the Progressive-Left began shrieking about “tolerance” and “profiling”, labeling anyone who dared identify the origin demographic of the attackers as “Islamophobes” and “xenophobic.” They began to divide the nation, seeking to play on the emotions of the uninformed; those who would blindly look past the obvious to escape the ire of the ideological social engineers of the Progressive-Left.

    The mainstream media and social media giants literally took aim at those who tried to educate the American people on the tenets of Islam, the true meaning of jihad in particular. Those writers, pundits, and publications – physical and on the Internet – who did not sign on to the incomplete definition of jihad as solely an inner struggle were marginalized, with many online publications purged from critical-for-survival venues like Google News, Facebook and other popular social media platforms. They claimed that to educate the people on the full and accurate definition of jihad was “hate speech.”

    As explained in The Concept & Practice of Jihad in Islam by Michael G. Knapp and published in a paper of the same name by the US Army War College:

    “The last 30 years have seen the rise of militant, religiously-based political groups whose ideology focuses on demands for jihad (and the willingness to sacrifice one’s life) for the forceful creation of a society governed solely by the shari’a and a unified Islamic state, and to eliminate un-Islamic and unjust rulers. These groups are also reemphasizing individual conformity to the requirements of Islam.”

    Of course, the Progressive-Left only cited the dogmatic definition of “struggle” alluding to the internal-intellectual struggle of the devout, conveniently ignoring the functional definition used by Islamofascist terrorists and their organizations; the same groups that perpetrated the attacks of September 11th. At a time when it was imperative that the American people remained cohesive, the Progressive-Left sought to pull us apart.

    Seventeen years on we are more divided than we have ever been since the US Civil War. American pitted against American and because we have been manipulated into believing we have nothing in common when it comes to Left-Right politics and ideology. The truth is this. We are still the same people who came together in the aftermath of the attacks of September 11th. Nothing changed but the narrative we have been fed.

    Through it all, the falling man and 2,995 others who perished that day remain dead. Through it all, the truth remains the same: Islamofascist terrorists had declared war twice on the United States, trained terrorists both abroad and on American soil, and slaughtered 2,996 people, injuring over 6,000 more. The cost of the damage to the World Trade Center and the Pentagon is estimated at over $10 billion. Through it all, we buried our countrymen by the scores.

    We owe the people who died on September 11, 2001, so much more than what we have become. We owe the falling man more than being divided at the hands of disingenuous ideological actors.

    Remember the falling man…and act accordingly. Never forget the lesson of September 11th: We are all Americans, each and every one of us, together.

    Taking Exemptions Without Really Knowing

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    These days, our General Excise Tax (GET) contains exemptions and reduced rates that are supposed to reflect commercial reality but often contain leaps of faith.

    One common example is the wholesale rate.  If I sell you a mango that you then resell to someone else, then I need to pay not the 4% or 4.5% retail rate, but the lower 0.5% wholesale rate, on my income from selling that mango.

    The only problem is that I am not you, and I have no way of knowing what you really did with the mango once you bought it from me.  Did you eat it yourself?  (That would explain the suspicious orange stain on your chin.)  Did you give it to Auntie down the street?  Did you use it to make mango jam, and if so, did you sell the jam?

    If I get audited by the State, the auditor will ask me those questions, not you, because I am the one who claimed the tax benefit even though you benefited from it when I tacked on only wholesale GET on my invoice to you.  And if I simply told the truth and said that I had no idea whether you ate the mango, the auditor will charge me the 3.5% or 4% rate difference plus interest and penalties.

    To bridge this information gap, the State has forms known as “resale certificates,” such as Form G-17.  Before I lower the tax rate I charge you to 0.5%, I need you to fill one of these out and give it to me.  It says that you are reselling the mangoes you buy from me unless you tell me otherwise, and that if you’re lying to me you are going to pay the extra tax and interest that the auditor charges me.  (I probably won’t get charged penalties if I whip out your certificate and tell the auditor that I relied on it.)

    Taking a certificate from the buyer helps bridge the information gap for some of the common GET exemptions such as wholesale goods, wholesale services, and some export sales.  There are, however, more complex exemptions such as contracting in an enterprise zone, helping build or maintain an air pollution control facility or a federally funded scientific facility, providing certain nonscientific logistic and support services to a federally funded scientific facility, or for helping plan, design, finance, construct, or sell certified or approved affordable housing projects.  The Department hasn’t prescribed certificates for all these exemptions.

    Often an operator of one of these preferred facilities will approach a vendor and say, “Hey!  This facility has a tax exemption that applies to you, so we won’t accept your adding GET to any invoice you send us.”

    I pity the vendor in that situation.  The vendor usually has no clue whether the customer is in a tax-preferred facility or not, and usually takes the customer’s word for it to keep the commercial relationship intact.  But if the vendor gets audited, the vendor needs to establish the customer’s tax-preferred status, sometimes with minimal or no help from the customer.  If the vendor loses, the vendor gets charged additional tax, penalties, and interest, even though the vendor gave the economic benefit of the claimed exemption to the customer (which, by this point, has probably made itself scarce).  The vendor is taking most of the risk regarding the exemption and little or none of the reward.

    What can be done about this?  First, lawmakers shouldn’t be enacting complex exemptions that put the risks and rewards in different places like this.  Second, if they really want to use the exemption in this situation, they need to provide for a mechanism to bridge the information gap to reposition, or at least distribute, the risk.  Third, they should be thinking of clear, verifiable rules to determine the beneficiaries of any exemption consistent with the social policy they seek to advance.

    ThinkTech: Business in Hawaii with Reg Baker and SamrTummy’s Dr. Shim

    Dr. Walton Shim MD is a surgeon who started SmarTummy when he was in his 80’s. His patented surgical training innovation could revolutionize how surgeons are trained.