Separation of Church and State?
Imprimis
www.hillsdale.edu
Origins and Dangers of the ‘Wall of Separation’ Between Church
and State
October 2006
Daniel
L. Dreisbach Professor of Justice, Law and Society, American University
Professor of Justice, Law and Society is a professor in the School of Public Affairs at American University
in Washington, D.C., as well as
the William E. Simon Fellow in Religion and Public Life in the James Madison Program at Princeton University. He received his D.Phil. from Oxford University and his J.D. from the University of Virginia. He is author or editor of numerous books, including Thomas Jefferson
and the Wall of Separation Between Church and State; The Founders on God and Government; Religion and Political Culture in
Jefferson’s Virginia; and Real Threat and Mere Shadow: Religious Liberty and the First Amendment.
The
following is adapted from a lecture delivered at Hillsdale College on September 12, 2006, during a Center for Constructive
Alternatives seminar on the topic, "Church and State: History and Theory."
No metaphor in American letters has had a greater influence on law and policy than Thomas Jefferson’s
"wall of separation between church and state." For many Americans, this metaphor has supplanted the actual text of the First
Amendment to the U.S. Constitution, and it has become the locus classicus of the notion that the First Amendment separated
religion and the civil state, thereby mandating a strictly secular polity.
More important, the judiciary has embraced this figurative language as a virtual rule of constitutional law
and as the organizing theme of church-state jurisprudence. Writing for the U.S. Supreme Court in 1948, Justice Hugo L. Black
asserted that the justices had "agreed that the First Amendment’s language, properly interpreted, had erected a wall
of separation between Church and State." The continuing influence of this wall is evident in the Court’s most recent
church-state pronouncements.
The rhetoric of church-state separation has been a part of western political discourse for many centuries, but
it has only lately come to a place of prominence in American constitutional law and discourse. What is the source of the "wall
of separation" metaphor so frequently referenced today? How has this symbol of strict separation between religion and public
life become so influential in American legal and political thought? Most important, what are the policy and legal consequences
of the ascendancy of separationist rhetoric and of the transformation of "separation of church and state" from a much-debated
political idea to a doctrine of constitutional law embraced by the nation’s highest court?
The Wall that Jefferson Built
On New Year’s Day, 1802, President Jefferson penned a missive to the Baptist Association of Danbury,
Connecticut. The Baptists had written the new president a "fan" letter in October 1801, congratulating him on his election
to the "chief Magistracy in the United States."
They celebrated his zealous advocacy for religious liberty and chastised those who had criticized him "as an enemy of religion[,]
Law & good order because he will not, dares not assume the prerogative of Jehovah and make Laws to govern the Kingdom of Christ." At the time, the Congregationalist Church was still legally established in Connecticut and the Federalist party controlled New England
politics. Thus the Danbury Baptists were outsiders'a beleaguered religious and political minority in a state where a Congregationalist-Federalist
party establishment dominated public life. They were drawn to Jefferson’s political
cause because of his celebrated advocacy for religious liberty.
In a carefully crafted reply, the president allied himself with the New England Baptists in their struggle to
enjoy the right of conscience as an inalienable right-not merely as a favor granted, and subject to withdrawal, by the civil
state:
Believing with you that religion is a matter which lies solely between Man & his God, that he owes account
to none other for his faith or his worship, that the legitimate powers of government reach actions only, & not opinions,
I contemplate with sovereign reverence that act of the whole American people which declared that their legislature
should "make no law respecting an establishment of religion, or prohibiting the free exercise thereof," thus building a wall
of separation between Church & State.
This missive was written in the wake of the bitter presidential contest of 1800. Candidate Jefferson’s religion, or the alleged lack thereof, was a critical issue in the campaign. His Federalist foes
vilified him as an "infidel" and "atheist." The campaign rhetoric was so vitriolic that, when news of Jefferson’s election swept across the country, housewives in New England
were seen burying family Bibles in their gardens or hiding them in wells because they expected the Holy Scriptures to be confiscated
and burned by the new administration in Washington. (These fears
resonated with Americans who had received alarming reports of the French Revolution, which Jefferson
was said to support, and the widespread desecration of religious sanctuaries and symbols in France.) Jefferson wrote to these pious Baptists to reassure them of his continuing
commitment to their right of conscience and to strike back at the Federalist-Congregationalist establishment in Connecticut for shamelessly vilifying him in the recent campaign.
Several features of Jefferson’s letter challenge conventional, strictly secular constructions
of his famous metaphor. First, the metaphor rests on a cluster of explicitly religious propositions (i.e., "that religion
is a matter which lies solely between Man & his God, that he owes account to none other for his faith or his worship").
Second, Jefferson’s wall was constructed in the service of the free exercise
of religion. Use of the metaphor to restrict religious exercise (e.g., to disallow a citizen’s religious expression
in the public square) conflicts with the very principle Jefferson hoped his metaphor
would advance. Third, Jefferson concluded his presidential missive with a prayer, reciprocating his
Baptist correspondents’ "kind prayers for the protection & blessing of the common father and creator of man." Ironically,
some strict separationists today contend that such solemn words in a presidential address violate a constitutional "wall of
separation."
The conventional wisdom is that Jefferson’s wall represents
a universal principle concerning the prudential and constitutional relationship between religion and the civil state. In fact,
this wall had less to do with the separation between religion and all civil government than with the separation between
the national and state governments on matters pertaining to religion (such as official proclamations of days of prayer, fasting,
and thanksgiving). The "wall of separation" was a metaphoric construction of the First Amendment, which Jefferson time and again said imposed its restrictions on the national government only (see, e.g., Jefferson’s 1798 draft of the Kentucky Resolutions).
In other words, Jefferson’s wall separated the national government on one side from state
governments and religious authorities on the other. This construction is consistent with a virtually unchallenged assumption
of the early constitutional era: the First Amendment in particular and the Bill of Rights in general affirmed the fundamental
constitutional principle of federalism. The First Amendment, as originally understood, had little substantive content apart
from its affirmation that the national government was denied all power over religious matters. Jurisdiction in such concerns
was reserved to individual citizens, religious societies, and state governments. (Of course, this original understanding of
the First Amendment was turned on its head by the modern U.S. Supreme Court’s "incorporation" of the First Amendment
into the Fourteenth Amendment.)
The Metaphor Enters Public Discourse
By late January 1802, printed copies of Jefferson’s reply to the
Danbury Baptists began appearing in New England newspapers. The letter, however, was not accessible to a wide audience
until it was reprinted in the first major collection of Jefferson’s papers, published
in the mid-19th century.
The phrase "wall of separation" entered the lexicon of American law in the U.S. Supreme Court’s 1878
ruling in Reynolds v. United States, although most scholars agree that the wall metaphor played no role in the Court’s
reasoning. Chief Justice Morrison R. Waite, who authored the opinion, was drawn to another clause in Jefferson’s text. The Reynolds Court, in short, was drawn to the passage, not to advance a strict separation
between church and state, but to support the proposition that the legitimate powers of civil government could reach men’s
actions only and not their opinions.
Nearly seven decades later, in the landmark case of Everson v. Board of Education (1947), the Supreme
Court "rediscovered" the metaphor and elevated it to constitutional doctrine. Citing no source or authority other than Reynolds,
Justice Hugo L. Black, writing for the majority, invoked the Danbury letter’s
"wall of separation" passage in support of his strict separationist interpretation of the First Amendment prohibition on laws
"respecting an establishment of religion." "In the words of Jefferson," he famously declared,
the First Amendment has erected "‘a wall of separation between church and State’. . . . That wall must be kept
high and impregnable. We could not approve the slightest breach." In even more sweeping terms, Justice Wiley B. Rutledge asserted
in a separate opinion that the First Amendment’s purpose was "to uproot" all religious establishments and "to create
a complete and permanent separation of the spheres of religious activity and civil authority by comprehensively forbidding
every form of public aid or support for religion." This rhetoric, more than any other, set the terms and the tone for a strict
separationist jurisprudence that reached ascendancy on the Court in the second half of the 20th century.
Like Reynolds, the Everson ruling was replete with references to history, especially the
roles played by Jefferson and Madison in the Virginia disestablishment
struggles in the tumultuous decade following independence from Great Britain. Jefferson was depicted as a leading architect of the First Amendment despite
the fact that he was in France when the measure was drafted by the First Federal Congress in 1789.
Black and his judicial brethren also encountered the metaphor in briefs filed in Everson. In a lengthy
discussion of history supporting the proposition that "separation of church and state is a fundamental American principle,"
an amicus brief filed by the American Civil Liberties Union quoted the clause from the Danbury letter containing the "wall of separation" image. The ACLU ominously concluded that the challenged state statute,
which provided state reimbursements for the transportation of students to and from parochial schools, "constitutes a definite
crack in the wall of separation between church and state. Such cracks have a tendency to widen beyond repair unless promptly
sealed up."
Shortly after the Everson ruling was handed down, the metaphor began to proliferate in books and articles.
In a 1949 best-selling anti-Catholic polemic, American Freedom and Catholic Power, Paul Blanshard advocated an uncompromising
political and legal platform favoring "a wall of separation between church and state." Protestants and Other Americans United
for the Separation of Church and State (an organization today known by the more politically correct appellation of Americans
United for Separation of Church and State), a leading strict-separationist advocacy organization, wrote the phrase into its
1948 founding manifesto. Among the "immediate objectives" of this new organization was "[t]o resist every attempt by law or
the administration of law further to widen the breach in the wall of separation of church and state."
The
Supreme Court frequently and favorably referenced the "wall of separation" in the cases that followed. In McCollum v. Board
of Education (1948), the Court essentially constitutionalized Jefferson’s phrase,
subtly and blithely substituting his figurative language for the literal text of the First Amendment. In the last half of
the 20th century, the metaphor emerged as the defining motif for church-state jurisprudence, thereby elevating a strict separationist
construction of the First Amendment to accepted dogma among jurists and commentators.
The Trouble with Metaphors in the Law
Metaphors are a valuable literary device. They enrich language by making it dramatic and colorful, rendering
abstract concepts concrete, condensing complex concepts into a few words, and unleashing creative and analogical insights.
But their uncritical use can lead to confusion and distortion. At its heart, metaphor compares two or more things that are
not, in fact, identical. A metaphor’s literal meaning is used non-literally in a comparison with its subject. While
the comparison may yield useful insights, the dissimilarities between the metaphor and its subject, if not acknowledged, can
distort or pollute one’s understanding of the subject. If attributes of the metaphor are erroneously or misleadingly
assigned to the subject and the distortion goes unchallenged, then the metaphor may alter the understanding of the underlying
subject. The more appealing and powerful a metaphor, the more it tends to supplant or overshadow the original subject, and
the more one is unable to contemplate the subject apart from its metaphoric formulation. Thus, distortions perpetuated by
the metaphor are sustained and even magnified. This is the lesson of the "wall of separation" metaphor.
The judiciary’s reliance on an extra-constitutional metaphor as a substitute for the text of the First
Amendment almost inevitably distorts constitutional principles governing church-state relationships. Although the "wall of
separation" may felicitously express some aspects of First Amendment law, it seriously misrepresents or obscures others, and
has become a source of much mischief in modern church-state jurisprudence. It has reconceptualized-indeed, misconceptualized-First
Amendment principles in at least two important ways.
First, Jefferson’s trope emphasizes separation between church and state?unlike
the First Amendment, which speaks in terms of the non-establishment and free exercise of religion. (Although these terms are
often conflated today, in the lexicon of 1802, the expansive concept of "separation" was distinct from the narrow institutional
concept of "non-establishment.") Jefferson’s Baptist correspondents, who agitated for disestablishment
but not for separation, were apparently discomfited by the figurative phrase and, perhaps, even sought to suppress the president’s
letter. They, like many Americans, feared that the erection of such a wall would separate religious influences from public
life and policy. Few evangelical dissenters (including the Baptists) challenged the widespread assumption of the age that
republican government and civic virtue were dependent on a moral people and that religion supported and nurtured morality.
Second,
a wall is a bilateral barrier that inhibits the activities of both the civil government and religion-unlike the First Amendment,
which imposes restrictions on civil government only. In short, a wall not only prevents the civil state from intruding on
the religious domain but also prohibits religion from influencing the conduct of civil government. The various First Amendment
guarantees, however, were entirely a check or restraint on civil government, specifically on Congress. The free press guarantee,
for example, was not written to protect the civil state from the press, but to protect a free and independent press from control
by the national government. Similarly, the religion provisions were added to the Constitution to protect religion and religious
institutions from corrupting interference by the national government, not to protect the civil state from the influence of,
or overreaching by, religion. As a bilateral barrier, however, the wall unavoidably restricts religion’s ability to
influence public life, thereby exceeding the limitations imposed by the First Amendment.
Herein lies the danger of this metaphor. The "high and impregnable" wall constructed by the modern Court has
been used to inhibit religion’s ability to inform the public ethic, to deprive religious citizens of the civil liberty
to participate in politics armed with ideas informed by their faith, and to infringe the right of religious communities and
institutions to extend their prophetic ministries into the public square. Today, the "wall of separation" is the sacred icon
of a strict separationist dogma intolerant of religious influences in the public arena. It has been used to silence religious
voices in the public marketplace of ideas and to segregate faith communities behind a restrictive barrier.
Federal and state courts have used the "wall of separation" concept to justify censoring private religious expression
(such as Christmas creches) in public, to deny public benefits (such as education vouchers) for religious entities, and to
exclude religious citizens and organizations (such as faith-based social welfare agencies) from full participation in civic
life on the same terms as their secular counterparts. The systematic and coercive removal of religion from public life not
only is at war with our cultural traditions insofar as it evinces a callous indifference toward religion but also offends
basic notions of freedom of religious exercise, expression, and association in a pluralistic society.
There was a consensus among the founders that religion was indispensable to a system of republican self-government.
The challenge the founders confronted was how to nurture personal responsibility and social order in a system of self-government.
Tyrants and dictators can use the whip and rod to force people to behave as they desire, but clearly this is incompatible
with a self-governing people. In response to this challenge the founders looked to religion (and morality informed by religious
faith) to provide the internal moral compass that would prompt citizens to behave in a disciplined manner and thereby promote
social order and political stability. The literature of the founding era is replete with this argument, no example more famous
than George Washington’s statement in his Farewell Address of September 19, 1796:
Of all the dispositions and habits which lead to political prosperity, Religion and morality are indispensable
supports. In vain would that man claim the tribute of Patriotism, who should labour to subvert these great Pillars of human
happiness, these firmest props of the duties of Men and citizens . . . . And let us with caution indulge the supposition,
that morality can be maintained without religion . . . . [R]eason and experience both forbid us to expect that National morality
can prevail in exclusion of religious principle.
Believing that religion and morality were indispensable to social order and political prosperity, the founders
championed religious liberty in order to foster a vibrant religious culture in which a beneficent religious ethos would inform
the public ethic and to promote an environment in which religious and moral leaders could speak out boldly, without restraint
or inhibition, against corruption and immorality in civic life. Religious liberty was not merely a benevolent grant of the
civil state; rather, it reflected an awareness among the founders that the very survival of the civil state and a civil society
was dependent on a vibrant religious culture, and religious liberty nurtured such a religious culture. In other words, the
civil state’s respect for religious liberty is an act of self-preservation. The unfortunate consequence of 20th-century
jurisprudence is that the First Amendment, designed to protect and promote a vital role for religion in public life, has been
replaced with a wall of separation that, in the hands of the modern judiciary, has restricted religion’s place in the
polity.
Legacy
of Intolerance
In his recent book, Separation of Church and State, Philip Hamburger amply documents that the rhetoric
of separation of church and state became fashionable in the 1830s and 1840s and, again, in the last quarter of the 19th century.
Why? It accompanied two substantial waves of Catholic immigrants with their peculiar liturgy and resistance to assimilation
into the Protestant establishment: an initial wave of Irish in the first half of the century, and then more Irish along with
other European immigrants later in the century. The rhetoric of separation was used by nativist elements, such as the Know-Nothings
and later the Ku Klux Klan, to marginalize Catholics and to deny them, often through violence, entrance into the mainstream
of public life. By the end of the century, an allegiance to the so-called "American principle" of separation of church and
state had been woven into the membership oaths of the Ku Klux Klan. Today we typically think of the Klan strictly in terms
of their views on race, and we forget that their hatred of Catholics was equally odious.
Again, in the mid-20th century, the rhetoric of separation was revived and ultimately constitutionalized by
anti-Catholic elites, such as Justice Hugo L. Black, and fellow travelers in the ACLU and Protestants and Other Americans
United for the Separation of Church and State, who feared the influence and wealth of the Catholic Church and perceived parochial
education as a threat to public schools and democratic values. The chief architect of the modern "wall" was Justice Black,
whose affinity for church-state separation and the metaphor was rooted in virulent anti-Catholicism. Hamburger has argued
that Justice Black, a former Alabama Ku Klux Klansman, was the product of a remarkable "confluence of Protestant, nativist,
and progressive anti-Catholic forces . . . . Black’s association with the Klan has been much discussed in connection
with his liberal views on race, but, in fact, his membership suggests more about [his] ideals of Americanism," especially
his support for separation of church and state. "Black had long before sworn, under the light of flaming crosses, to preserve
‘the sacred constitutional rights’ of ‘free public schools’ and ‘separation of church and state.’"
Although he later distanced himself from the Klan on matters of race, "Black’s distaste for Catholicism did not diminish."
Black’s admixture of progressive, Klan, and strict separationist views is best understood in terms of anti-Catholicism
and, more broadly, a deep hostility to assertions of ecclesiastical authority. Separation of church and state, Black believed,
was an American ideal of freedom from oppressive ecclesiastical authority, especially that of the Roman Catholic Church. A
regime of separation enabled Americans to assert their individual autonomy and practice democracy, which Black believed was
Protestantism in its secular form.
To be clear, diverse strains of political, religious, and intellectual thought have embraced notions of separation
(I myself come from a faith tradition that believes church and state should operate in separate institutional spheres), but
a particularly dominant strain in 19th-century America was this nativist, bigoted strain. We must confront the uncomfortable
fact that the phrases "separation of church and state" and "wall of separation," although not necessarily expressions of intolerance,
have often, in the American experience, been closely identified with the ugly impulses of nativism and bigotry.
In conclusion, Jefferson’s figurative language has not produced the practical solutions to real world
controversies that its apparent clarity and directness led its proponents to expect. Indeed, this wall has done what walls
frequently do?it has obstructed the view, obfuscating our understanding of constitutional principles governing church-state
relationships. The rhetoric of "separation of church and state" and "a wall of separation" has been instrumental in transforming
judicial and popular constructions of the First Amendment from a provision protecting and encouraging religion in public life
to one restricting religion’s place and role in civic culture. This transformation has undermined the "indispensable
support" of religion in our system of republican self-government. This fact would have alarmed the framers of the Constitution,
and we ignore it today at the peril of our political order and prosperity.
Editor,
Douglas A. Jeffrey; Deputy Editor, Timothy W. Caspar; Assistant to the Editor, Patricia A. DuBois. The opinions expressed
in Imprimis are not necessarily the views of Hillsdale College. Copyright © 2006. Permission to reprint in whole or part is
hereby granted, provided the following credit line is used: “Reprinted by permission from IMPRIMIS, the national speech
digest of Hillsdale College, www.hillsdale.edu.” Subcription free upon request. ISSN 0277-8432. Imprimis trademark registered in U.S. Patent and
Trade Office #1563325.
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The
Wall Street Journal
www.wsj.com
COMMENTARY
The Top 1% . . . of What?
By ALAN REYNOLDS December 14,
2006; Page A20
As many others have done, Virginia's Democratic
Senator-elect Jim Webb recently complained on this page of an "ever-widening divide" in America, claiming "the top 1% now takes in an astounding 16% of national income, up from 8%
in 1980." Those same figures have been repeatedly echoed in all major newspapers, including this one. Yet the statement is
clearly false. The top 1% of households never received anything remotely approaching 16% of personal income (national
income includes corporate profits). The top 1% of tax returns accounted for 10.6% of personal income in 2004. But that
number too is problematic.
The architects of these estimates, Thomas Piketty of École Normale Supérieure in Paris and Emmanuel Saez of the University of California at Berkeley, did not refer
to shares of total income but to shares of income reported on individual income tax returns -- a very different thing. They
estimate that the top 1% (1.3 million) of taxpayers accounted for 16.1% of reported income in 2004. But they explicitly exclude
Social Security and other transfer payments, which make up a large and growing share of total income: 14.7% of personal income
in 2004, up from 9.3% in 1980. Besides, not everyone files a tax return, not all income is taxable (e.g., municipal bonds),
and not every taxpayer tells the complete truth about his or her income.
For such reasons, personal income in 2004 was $3.3 trillion, or 34.4%, larger than the amount included in the
denominator of the Piketty-Saez ratio of top incomes to total incomes. Because that gap has widened from 30.5% in 1988, the
increasingly gigantic understatement of total income contributes to an illusory increase in the top 1%'s exaggerated share.
The same problems affect Piketty-Saez estimates of share of the top 5%, which contradict those from the Census
Bureau (which also exclude transfer payments). Messrs. Piketty and Saez figure the top 5%'s share rose to 31% in 2004 from
27% in 1993. Census Bureau estimates, by contrast, show the top 5%'s share of family income fluctuating insignificantly from
20% to 21% since 1993. The top 5%'s share has been virtually flat since 1988, aside from a meaningless one-time jump in 1993
when, as the Economic Policy Institute noted, "a change in survey methodology led to a sharp rise in measured inequality."
Unlike the Census Bureau, Messrs. Piketty and Saez measure income per tax unit rather than per family or household.
They maintain that income per tax unit is 28% smaller than income per household, on average. But because there are many more
two-earner couples sharing a joint tax return among high-income households, estimating income per tax return exaggerates inequality
per worker.
The lower line in the graph shows that the amount of income Messrs. Piketty and Saez attribute to the top 1%
accounted for 10.6% of personal income in 2004. That 10.6% figure looks much higher than it was in 1980. Yet most of that
increase was, as they explained, "concentrated in two years, 1987 and 1988, just after the Tax Reform Act of 1986." As Mr.
Saez added, "It seems clear that the sharp, and unprecedented, increase in incomes from 1986 to 1988 is related to the large
decrease in marginal tax rates that happened exactly during those years."
That 1986-88 surge of reported high income was no surprise to economists who study taxes. All leading studies
of "taxable income elasticity," including two by Mr. Saez, agree that the amount of income reported by high-income taxpayers
is extremely sensitive to the marginal tax rate. When the top tax rate goes way down, the amount reported on tax returns goes
way up. Those capable of earning high incomes had more incentive to do so when the top U.S. tax rate dropped to 28% in 1988 from 50% in 1986. They also had less incentive to maximize
tax deductions and perks, and more incentive to arrange to be paid in forms taxed as salary rather than as capital gains or
corporate profits.
The top line in the graph shows how much of the top 1%'s income came from business profits. In 1981, only 7.8%
of the income attributed to the top 1% came from business, because, as Mr. Saez explained, "the standard C-corporation form
was more advantageous for high-income individual owners because the top individual tax rate was much higher than the corporate
tax rate and taxes on capital gains were relatively low." More businesses began to file under the individual tax when individual
tax rates came down in 1983. This trend became a stampede in 1987-1988 when the business share of top percentile income suddenly
increased by 10 percentage points. The business share increased again in recent years, accounting for 28.4% of the top 1%'s
income in 2004.
As was well-documented years ago by economists Roger Gordon and Joel Slemrod, a great deal of the apparent increase
in reported high incomes has been due to "tax shifting." That is, lower individual tax rates induced thousands of businesses
to shift from filing under the corporate tax system to filing under the individual tax system, often as limited liability
companies or Subchapter S corporations.
IRS economist Kelly Luttrell explained that, "The long-term growth of S-corporation returns was encouraged by
four legislative acts: the Tax Reform Act of 1986, the Revenue Reconciliation Act of 1990, the Revenue Reconciliation Act
of 1993, and the Small Business Protection Act of 1996. Filings of S-corporation returns have increased at an annual rate
of nearly 9.0% since the enactment of the Tax Reform Act of 1986."
Switching income from corporate tax returns to individual returns did not make the rich any richer. Yet it caused
a growing share of business owners' income to be newly recorded as "individual income" in the Piketty-Saez and Congressional
Budget Office studies that rely on a sample of individual income tax returns. Aside from business income, the top 1%'s share
of personal income from 2002 to 2004 was just 7.2% -- the same as it was in 1988.
In short, income shifting has exaggerated the growth of top incomes, while excluding a third of personal income
(including transfer payments) has exaggerated the top groups' income share.
There are other serious problems with comparing income reported on tax returns before and after the 1986 Tax
Reform. When the tax rate on top salaries came down after 1988, for example, corporate executives switched from accepting
stock or incentive stock options taxed as capital gains (which are excluded from the basic Piketty-Saez estimates) to nonqualified
stock options reported as W-2 salary income (which are included in the Piketty-Saez estimates). This largely explains why
the top 1%'s share rises with the stock boom of 1997-2000 then falls with the stock market in 2001-2003.
In recent years, an increasingly huge share of the investment income of middle-income savers is accruing inside
401(k), IRA and 529 college-savings plans and is therefore invisible in tax return data. In the 1970s, by contrast, such investment
income was usually taxable, so it appears in the Piketty-Saez estimates for those years. Comparing tax returns between the
1970s and recent years greatly understates the actual gain in middle incomes, and thereby contributes to the exaggeration
of top income shares.
In a forthcoming Cato Institute paper I survey a wide range of official and academic statistics, finding no
clear trend toward increased inequality after 1988 in the distribution of disposable income, consumption, wages or wealth.
The incessantly repeated claim that income inequality
has widened dramatically over the past 20 years is founded entirely on these seriously flawed and greatly misunderstood
estimates of the top 1%'s alleged share of something-or-other.
The
politically correct yet factually incorrect claim that the top 1% earns 16% of personal income appears to fill a psychological
rather than logical need. Some economists seem ready and willing to supply whatever is demanded. And there is an endless political
demand for those able to fabricate problems for which higher taxes are, of course, the preferred solution. In Washington higher taxes are always the solution; only the problems change.
Mr. Reynolds, a senior fellow with the Cato Institute, is the author of "Income and
Wealth" (Greenwood Press, 2006).

Phil Brennan, NewsMax.com
Analysis: Ten Good Reasons to
Vote GOP
Thursday, Oct. 26, 2006
If the polls are to be believed, the Republicans who control the White House and Congress
are in trouble.
Their problem?
People vote their pocketbooks, or wallets, the old adage goes.
But the economy is booming. Even gasoline prices have plummeted. Unemployment, the bogeyman
of politicians, has shrunken to a record low point.
As for the security matter, since 9/11, the worst attack on American soil since the
Civil War, the United
States has been free
of any significant terrorist attack. None. Zippo. Zilch.
If Americans do vote the GOP out of either House of Congress, many of these accomplishments
are threatened.
Should Democrats get control of the House of Representatives, they have already promised
that one of the Republican initiatives that made all these things possible will be rolled back.
Higher taxes -- and with it, economic recession and more unemployment.The Democrats will
also signal the terrorists a "victory" for their side with a push for a quick withdrawal from Iraq. Remember, the Congress,
not the president, funds our troops abroad. A Democratic Congress will most assuredly withhold funding unless Bush relents.
The list of Republican accomplishments is both long and real, and provides the platform
upon which even greater results will be built under a Republican Congress and White House.
For sure, the GOP has had its share of shortcomings. The economy could be doing better.
The deficit could be smaller. The postwar plans in Iraq
could have been better implemented.
If anything, the Republicans are facing a message deficit. The liberal media establishment
is just not letting them tell their story to the American people.
Here are 10 good reasons why you should vote Republican come election day. You won't hear
about them on ABCCBSNBC News.
Reason #1. The economy is kicking butt. It is robust, vibrant, strong and growing. In the
36 months since the Bush tax cuts ended the recession that began under President Clinton, the economy has experienced astonishing
growth. Over the first half of this year, our economy grew at a strong 4.1 percent annual rate, faster than any other major
industrialized nation. This strong economic activity has generated historic revenue growth that has shrunk the deficit. A
continued commitment to spending restraint has also contributed to deficit reduction.
Reason #2. Unemployment is almost nil for a major economy, and is verging on full employment.
Recently, jobless claims fell to the lowest level in 10 weeks. Employment increased in 48 states over the past 12 months ending
in August. Our economy has now added jobs for 37 straight months.
Reason #3. The Dow is hitting record highs. In the past few days, the Dow climbed above
12,000 for the first time in the history of the stock market, thus increasing the value of countless pension and 401(k) that
funds many Americans rely on for their retirement years.
Reason #4. Wages have risen dramatically. According to the Washington Post, demand for
labor helped drive workers' average hourly wages, not including those of most managers, up to $16.84 last month -- a 4 percent
increase from September 2005, the fastest wage growth in more than five years. Nominal wage growth has been 4.1 percent so
far this year. This is better or comparable to its 1990s peaks. Over the first half of 2006, employee compensation per hour
grew at a 6.3 percent annual rate adjusted for inflation. Real after-tax income has risen a whopping 15 percent since January
2001. Real after-tax income per person has risen by 9 percent since January 2001.
Reason #5. Gas prices have plunged. According to the Associated Press, the price of
gasoline has fallen to its lowest level in more than 10 months. The federal Energy Information Administration said Monday
that U.S. motorists paid $2.21 a gallon on average for regular grade last week,
a decrease of 1.8 cents from the previous week. Pump prices are now 40 cents lower than a year ago and have plummeted by more
than 80 cents a gallon since the start of August. The previous 2006 low for gasoline was set in the first week of January,
when pump prices averaged $2.238. In the week ending Dec. 5, 2005, prices averaged $2.19. Today, gasoline can be found for less than $2 a gallon in many parts of the country.
Reason #6. Since 9/11, no terrorist attacks have occurred on U.S. soil. Since 9/11 the U.S. has not been attacked by terrorists thanks to such programs
as the administration's monitoring of communications between al-Qaida operatives overseas and their agents in the U.S. and
the monitoring of the international movement of terrorist funds -- both measure bitterly opposed by Democrats.
Reason #7. Productivity is surging and has grown by a strong 2.5 percent over the past
four quarters, well ahead of the average productivity growth in the last 30 years. Strong productivity growth helps lead to
the growth of the Gross Domestic Product, higher real wages, and stronger corporate profits.
Reason #8. The Prescription Drug Program is working. Despite dire predictions that most
seniors would refrain from signing up to the new Medicare prescription benefits program, fully 75 percent of all those on
Medicare have enrolled, and the overwhelming majority say they are happy with the program.
Reason #9. Bush has kept his promise of naming conservative judges. He has named two conservative
justices to the Supreme Court, Chief Justice John G. Roberts and Justice Samuel Alito. In addition, he has named conservative
justices who are devoted to the Constitution as it is written and not as activist liberal judges think it means. The strong
likelihood that one or more justices will retire from the Supreme Court makes it mandatory for the Republicans to hold the
Senate and have a chance to name new conservative justices.
Reason #10. The deficit has been cut in half three years ahead of the president's 2009
goal, with the 2006 fiscal year budget deficit down to $248 billion. The tax cuts have stimulated the economy and are working.
In contrast to this stunning record of real achievement, the Democrats offer no real
plans for the way they want to improve America
or make us safer.
Instead, issues like the Mark Foley scandal have been used to smokescreen their own lack
of ideas in a public debate.
The choice voters will make is whether they want higher taxes and less security by surrendering
the tools used to combat terrorism or lower taxes and the continued use of tools like the Patriot Act, terrorist surveillance,
terrorist interrogations and missile defense.
Consider what leading Democrats are promising if they gain control of Congress.
· Rep. Charlie Rangel, D-N.Y., who would lead the House tax-writing committee if
Democrats win in November, said he "cannot think of one" tax cut he would renew. That agenda would result in $2.4 trillion
tax increase over the next 10 years.
· If Democrats take majorities in the House and Senate, the average family of four
can expect to pay an average of $2,000 more in taxes.
· The leader of House Democrats and the woman who would be speaker of the House,
Rep. Nancy Pelosi, D-Calif., said after 9/11 that she "doesn't really consider ourselves at war ... we're in a struggle against
terrorism."
· By opposing the Patriot Act, terrorist surveillance missile defense and even interrogating
the most dangerous terrorists captured on the battlefield, Democrats are in direct opposition to the vital tools we use to
fight terrorism.
· Many Democrats, including the prospective House Ways and Means chairman, favor cutting off funding for the war in Iraq .
· Democratic leaders have made it clear that they see investigations and impeachment
as viable options should they take control of Congress. They are therefore promising to tie the hands of the president and
his administration in the middle of a war.
· Democrats want to reverse the president's economic policies that have led to a
historically strong economy.
Enough said.
The Virginian-Pilot
Where
Local Legislators
Stand
On Transportation Issues By Tom Holden and Christina Nuchols
© September 11, 2006
Here,
in brief, are the views of local legislators who were asked questions recently about how best to deal with the region's transportation
problems.
Del. Kenny Alexander, D-Norfolk: wants a
penny-on-the-dollar sales tax or a one-half-percent increase in the income tax to help pay for transportation needs. Does
not favor using general fund money for long-term investments. Supports building the third crossing and the creation of a regional
transportation authority to collect tolls.
Del. Bill Barlow, D- Isle of Wight: declined
to answer.
Del. John Cosgrove, R-Chesapeake: declined
to answer.
Del. Sal Iaquinto, R-Virginia Beach: backs a plan creating a new Hampton Roads transportation authority with the power to impose tolls on new and existing
roads. Would consider an increase of local licensing fees, car rental car fees and hotel fees, and diverting some money from
the general fund to finance road projects.
Del.
Algie Howell Jr., D-Norfolk: declined to answer.
Del. Johnny Joannou, D-Portsmouth: wants
additional tunnel capacity to relieve congestion at the Midtown, Downtown and Hampton Roads tunnels. Favors expanding U.S.
460 and creating a regional transportation authority - if its members are directly elected.
Del. Chris Jones, R-Suffolk: backs a plan
creating a new Hampton Roads transportation authority with the power to impose tolls on new and existing roads. Would consider
increasing local licensing fees, car rental car fees and hotel fees and diverting some money from the general fund.
Del. Lynwood W. Lewis Jr., D-Accomac: declined
to answer.
Del. Ken Melvin, D-Portsmouth: declined to
answer.
Del.
Paula Miller, D-Norfolk: favors raising new income for transportation. Opposes relying on the general fund for long-term
transportation needs. Favors tolls and higher fees on bad drivers to help pay for new roads. Supports building the third crossing
and creating a regional authority to raise money - if there is no statewide plan.
Del. Bob Purkey, R-Virginia Beach: declined to discuss transportation issues, saying it would damage
efforts to build support for new proposals.
Del. Lionell Spruill Sr., D-Chesapeake: supports
raising more money for transportation but says it's a statewide responsibility. Opposes creating a regional transportation
authority, using the general fund for long-term needs or putting tolls on existing roads. Favors increasing gas taxes.
Sen. Kenneth Stolle, R-Virginia Beach: supports
using some general fund revenue for transportation as long as education and public safety are protected. Opposes diverting
existing sales or income taxes. Favors using more insurance premiums for road-building. Has supported plans calling for tolls
or local sales taxes to pay for priority projects.
Sen. Frank Wagner, R-Virginia Beach: has backed efforts relying on tolls or local taxes to pay for road
and rail projects. Says a regional plan alone will not be adequate unless new revenues are generated for statewide maintenance.
Del. Bob Tata, R-Virginia Beach: supports tolls on new roads, bridges and tunnels, and tolls on HOV
lanes allowing single-occupant vehicles during restricted hours. Supports diverting a portion of revenues now going to general
government operations such as schools and health care and using the money for transportation.
Del. Leo Wardrup Jr., R-Virginia Beach: supports
using tolls for new and existing roads, bridges and tunnels, and tolls on HOV lanes for single-occupant vehicles. Open to
taking revenues now earmarked for general operating expenses and using the money for road and rail improvements. He opposes
any regional authority that has the power to tax.
Sen. Harry Blevins, R-Chesapeake: declined
to discuss transportation issues for fear of hurting efforts to build support for new proposals. Has voted in favor of setting
up a regional authority in Hampton Roads with the power to collect tolls. Has voted for a bill that would allowed localities
to impose a sales tax for transportation. Has supported a statewide transportation plan that taxed fuel and motor vehicle
sales.
Sen. Louise Lucas, D-Portsmouth: supports
plans to boost investment in transportation projects through increases in taxes, tolls and fees. Opposes diverting existing
revenues away from education and health care to spend on transportation.
Sen. Yvonne Miller, D-Norfolk: supports plans
to boost investment in transportation projects through increases in taxes, tolls and fees. Opposes diverting existing revenues
away from education and health care to spend on transportation. Wants more state money invested in mass transit.
Sen. Frederick Quayle, R-Suffolk: supports
plans to boost investment in transportation projects through increases in taxes, tolls and fees. Sponsored legislation that
would set up a regional authority with the power to collect tolls on roads, bridges and tunnels in Hampton Roads. The measure
also would allow local governments to increase the sales tax to pay for transportation projects.
Sen. Nick Rerras, R-Norfolk: supports plans
to pay for transportation improvements using budget surplus and taxes. Would consider increases in the sales tax and auto
titling fee, and bad driver penalties and tolls. Prefers not to increase the gas tax.
Wall Street Journal
REVIEW
& OUTLOOK
Tax Tidal
WAVE
October 6, 2006; Page A14
Congress keeps breaking the Beltway Book of World Records for spending money, but the government will soon report
that the federal budget deficit for the just-completed 2006 fiscal year fell to about $260 billion.
What's the secret of this deficit success that you aren't reading much about this election year? It isn't spending
restraint. The federal budget expanded to $2.7 trillion last year, a 9% increase, or three times the inflation rate. Over
the past six years the federal budget has increased by 49.2%.
The main cause of the deficit decline -- 90% of it, says White House budget director Rob Portman -- is
a tidal wave of tax revenue. Tax collections have increased by $521 billion in the last two fiscal years, the largest two-year
revenue increase -- even after adjusting for inflation -- in American history. If you're surprised to hear that, it's probably
because inside Washington this is treated as the only secret no one wants to print. On the
few occasions when the media pay attention to the rise in tax collections, they scratch their heads and wonder where this
"surprising" and "unexpected windfall" came from.
One place it has come from are corporations, whose tax collections have climbed by 76% over the past two years
thanks to greater profitability. Personal income tax payments are up by 30.3% since 2004 too, despite the fact that the highest
tax rate is down to 35% from 39.6%. The IRS tax-return data just released last month indicates that a near-record 37% of those
income tax payments are received from the top 1% of earners -- "the rich," who are derided regularly in Washington for not
paying their "fair share."
More good news is that dividend-tax payments appear to be up as well, even though the tax rate was lowered to
15% from as high as 39.6%. A National Bureau of Economic Research study found that "after a continuous decline in dividend
payments over more than two decades, total regular dividends have grown by nearly 20%" and that this reversal happened at
"precisely the point at which the lower tax rate was proposed and subsequently applied retroactively." There hasn't been a
purer validation of the Laffer Curve since Ronald Reagan rode off into the sunset.
As for the budget deficit, at $260 billion it is now about 2% of our $13 trillion economy, well below the
2.7% average of the last 40 years. Most states and localities are also afloat in tax collections, and including their revenue
surpluses brings the total U.S. public sector borrowing down to roughly 1.5% of GDP. Not too shabby
given that we're waging a war on terrorism and Congress spent $50 billion last year on Hurricane Katrina clean-up.
Anyway, we thought our taxpaying readers might like to know how much you've all been contributing to the
falling deficit -- the best-kept secret in Washington.

Back to Basics for the Republican Party
A book by Michael Zak
Text Below from the website http://www.republicanbasics.com/1270328.html
For the past century and a half, the Republican Party has proven to be the most effective political organization ever to champion
equality and human rights in the United States and around the world.
From President Lincoln's victory in the Civil War to President Reagan's victory in the Cold War, the GOP shares credit for
the ability of hundreds of millions of people to live in freedom.
Many communities claim credit as the birthplace of the Grand Old Party. Perhaps the most significant place was
in Ripon, Wisconsin on March 20, 1854.
The agenda was simple at this schoolhouse gathering: oppose the pro-slavery policies of the Democratic Party.
Democrat House and Senate majorities and a Democrat President incited the 1854 meeting by approving a bill by Senator Stephen
Douglas (D-IL) to allow slavery into the western territories. Opponents of slavery expressed their outrage at
town meetings and rallies. The issue, as Lincoln foresaw, was whether the United
States would become all slave or all free. The Ripon
meeting earned particular attention from the national press, and anti-slavery Americans soon adopted the name "Republican"
nationally.
Republicans held our first state convention in Jackson, Michigan on July 6, 1854. That fall, the GOP swept to victory throughout the North. Other anti-slavery Members
of Congress joined the party, so that less than two years later, on February 2, 1856, Republicans elected a Republican Speaker of the House.
The Republican National Committee first met the next month, to coordinate opposition to the pro-slavery policies of
the Democrats, also known then as "slaveocrats." And that summer, Republicans held our first national convention.
There, we nominated our first presidential candidate, the Georgia-born former California Senator John Fremont. Four
years later, we won the White House for the "Great Emancipator."
As the nation sacrificed during the Civil War, Republicans planned the most significant amendments ever to our Constitution
and enacted — despite fierce opposition from the Democrats — the 13th Amendment to ban slavery, the 14th Amendment
to protect all Americans regardless of the color of their skin, and the 15th Amendment to extend voting rights to African-Americans.
The Republicans' 1875 Civil Rights Act guaranteed equal access to public accommodations without regard to race.
Struck down by the Supreme Court in 1883, this law would be reborn as the 1964 Civil Rights Act.
"Every man that wanted the privilege of whipping another man to make him work for nothing, and pay him with lashes on his
naked back, was a Democrat. Every man that raised bloodhounds to pursue human beings was a Democrat. Every man
that cursed Abraham Lincoln because he issued the Emancipation Proclamation was a Democrat." Robert Ingersoll, 1876
For its first 80 years, the Republican Party was the only one to provide a home for African-Americans. Until well into
the 20th century, every African-American Member of Congress was a Republican. The same was true for nearly all state
legislators and other elected officials. In 1888, Republican Senator Aaron Sargent introduced the "Susan B. Anthony"
Amendment to the Constitution, according women of all races the right to vote. Strong Democrat opposition to what
would become the 19th Amendment delayed
ratification until 1920.
The year 2004 was the 150th anniversary of the GOP as well as the 50th anniversary of Brown v. Board of Education, a watershed of the modern-day
civil rights movement. In May 1954, former Republican Governor and GOP vice presidential candidate Earl Warren,
appointed Chief Justice by Republican President Eisenhower, wrote this landmark decision declaring that "separate but equal"
is inherently unconstitutional. To help enforce this principle, the Eisenhower administration drafted the 1957
Civil Rights Act and guided it to passage over a Democrat filibuster.
The Republican Leader in the Senate, Everett Dirksen (R-IL), wrote the 1960 Civil Rights Act. Senator Dirksen
was the person most responsible for defeating the Democrat filibuster against the 1964 Civil Rights Act. The 1964
Civil Rights Act passed the House of Representatives with 80% Republican support but only 61% of Democrats. In
the Senate, 82% of Republicans supported the bill compared to 69% of Democrats. Similarly, the 1965 Voting Rights
Act was supported in Congress by a higher percentage of Republicans than Democrats. Democrats vigorously opposed
Republican efforts to protect the civil rights of African-Americans, from Reconstruction until well into the 20th century.
In much of the country, racist Democrats virtually destroyed the Republican Party, which did not become a force in those areas
until President Reagan's message of freedom and equality prevailed in the 1980s. Today, the Republican Party continues
its historical commitment to civil rights at home and around the world.

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