Teabagging? Seriously?

So, our acquaintances over at Fox News are hyping Teabagging, also known as anti-tax Tea Parties. Other than a Lipton plot to sell lots of tea, this "movement" doesn't make much sense. Except for 1991 and 1992 (when the top tax rate was 31%) today's top tax rate of 35% is the lowest since the 1920's! Now, we're no teabagging experts, but we believe the first instance of this back in 1773 was not overhyped. Taxes, like the saying goes, are as inevitable as death and the amount Americans are paying is very low. In other countries, the tax rates can go up to around 60% (such as Sweden and Denmark). In a recent Gallup poll, 48% of Americans say that the pay "about the right amount in taxes," while only 46% say they pay too much. This is a reversal from most of the past 50 years where a vast majority (about 60%) of Americans feel they pay too much. We just don't see how this is a "movement" that has any real footing.

Run for the hills! The Revenuers!

Tomorrow is Tax Day and this is the time of year many folks are freaking out. Especially this guy. From our friends at mental_floss, here are a couple of interesting tax related tidbits to keep you from freaking out.

1. 5 Tax Laws You Shouldn't Have to Worry About.
2. 9 Big Names Who Lived Above the (Tax) Law.

Don't worry, you have over 24 whole hours left!

Pirates: Now available outside the Caribbean!

With the recent events off the coast of Somalia, piracy seems to be back in style. Our classic interpretation of pirates were actually privateers (e.g. William Kidd, Sir Francis Drake and even the Barbary Pirates), who were state sponsored pirates who attacked other nation's shipping. The recent Somali pirate attacks offer a distinct situation because of the political situation in the country. Due to the fact that Somalia does not have a stable government which cannot effectively control its territory, the solving the piracy issue is significantly more complex. And that is not to say that the degree of difficulty is not still very high.

If Somalia were a stable nation with an effective government, applying diplomatic or economic pressure would push them to prosecute the pirates and eliminate the safe havens where the captured vessels are docked. That is not the case today. Regional warlords have significantly more power than the government and are allowing the ships to be docked in "safe" ports due to the extreme profitability of piracy. A necessary condition for eliminating piracy off the coast of Somalia is a stable state. Due to the fractured nature of Somalia, the duration as a failed state and the large number of warlords vying for power, nation building there would be as difficult as Iraq, if not more so. Economic aid and development would lend support to the government and help to stabilize the region. As people have more opportunity, the motivating factor in piracy is less of a draw. This will take time and a temporary solution will have to be implemented in the interim.

Avoiding the area is not an option because of the high amount of shipping that flows through the area. Containing the piracy issue is, at least for now, a more practical solution while efforts like economic development take hold. The current strategy favored by the pirates is to board a ship and take its crew and contents to a port and hold them for ransom. This means that there is a finite number of places where a ship like a supertanker can be docked. Regular patrols and potentially a multinational force (U.N. or otherwise) could oversee these ports and provide security and order. Without a place to hold the ships, the pirates would be forced to either change tactics or find a different revenue source.

Changing tactics is something that would have to be very closely monitored since there are a wide variety of things that could happen which would be devastating to international shipping. As the "safer" alternatives of docking a ship while waiting for the ransom dry up, desperate pirates could take to more reckless alternatives and desperate people can be very creative.

No Nukes is Good Nukes?

With the recent test launching of a Taepodong-2 intercontinental ballistic missile in North Korea and the recent statements by the Iranian president Mahmoud Ahmadinejad about welcoming talks with the United States, one begins to wonder why countries pursue nuclear weapons technology. Nuclear weapons have been around for over sixty years and there are only eight countries with confirmed nuclear weapons (nine when you include Israel which does not acknowledge its weapons). During their lifespan, the main uses of nuclear weapons have been as a deterrent or as a bargaining chip. Throughout the Cold War, both the United States and the Soviet Union had enough nuclear weapons to ensure that no matter what happened, each could destroy the other (See: Destruction, Mutually Assured).

Currently, Iran and North Korea are both pursuing nuclear technology (North Korea tested a bomb in 2006 and Iran maintains that its research is peaceful). North Korea has been funneling its very scarce resources toward advancing its nuclear program even though it is dependent on foreign aid. While it is such an economically poor country, why divert efforts toward a struggling nuclear program? One large reason is internal politics. In order to keep control, the regime is trying to maintain very high nationalist sentiments. If their country is internally perceived as among the world leaders in military power, North Koreans will think more highly of their government. While most consider the rocket test a failure (stages two and three failed and the missile did not reach orbit and subsequently fell into the ocean), the North Korean press was excitedly proclaiming that this was a great success. While failing to raise the living standards of its people, the government is creating positive spin in its own press.

Another reason for the test, as advocated by Victor Cha in his article "Pyongbang!", is that Kim Jong Il is in failing health and the the ruling class is stirring up trouble due to the "political fluidity within Pyongyang." Both of these factors are likely playing off of one another in a nasty feedback loop. Due to Kim's failing health, the ruling class is setting itself up for the eventual change in leadership as well as keeping internal pressures at bay.

North Korea is also setting itself up to reap rewards in the international arena by engaging in talks. In general, according to Henry Kissenger's book Diplomacy, talks are a favorite tool used by diplomats to buy time. While North Korea is engaged in talks, the longer it has to negotiate, the stronger its position will be as it will have advanced its nuclear project and it will be more difficult for other nations to take action against it which is why even though its test was a failure, it still was a success for North Korea.

April 1st: Full of Fools

If only this new feature in Gmail was true...

Tesla was an avid gamer

Many thanks to our friends over at MentalFloss for brightening our day here at Puggling. For those of us who remember our first Nintendo with great fondness in all its pixilated glory here is the greatest feat of Tesla coil music known to man.

Michael Steele Rap Battle

Embattled Republican National Committee chairman Michael Steele rap battles Stephen Colbert with hilarious results. Enjoy some conservative rhymes courtesy of the famed Colbert Report:

The Colbert Report	Mon - Thurs 11:30pm / 10:30c
Conservative Rap Battle - Michael Steele's Response
comedycentral.com
Colbert Report Full Episodes Political Humor NASA Name Contest

A daily dose of Schadenfreude

Recently we at Puggling have become somewhat addicted to the website fmylife.com. The joy in reading this site comes purely from the often times hilarious situations people find themselves in. Bad things happening to people, usually with comical results (although some are truly sad, so you have to be careful). There is a general breakdown of 50-50 of people whose actions cause their life to be f***ed and those who are innocent bystanders. For those who are in need of a quick pick me up, reading this is sure to do it, as long as you don't mind laughing at other's misfortune. A quick example:

Today, my rescue squad unit responded to a 911 call from a woman who felt she was going to pass out. We knocked on her locked door a couple of times with no answer. Fearing she might be unconscious, I kicked in the door. She was about to open it and only passed out from the concussion I gave her. FML.

538.com and Other Musings

Our friends of at 538.com (and by friends, I mean people who I have never met) have been keeping us busy here at Puggling. They have in depth statistical analysis of a wide variety of topics, which are both very entertaining and informative. One of the most enlightening posts recently posed an interesting question on the $1,000,000 tax bracket. Basically, Nate Silver of 538.com posits that over time, the highest income tax bracket has been steadily trending lower over time in real dollars. This is also in combination with the top marginal tax rate trending lower. It is a very interesting read and I recommend people check out his blog.

One very interesting facet that this does not take into consideration is the rate at which some other types of income are taxed. Currently the maximum tax bracket on dividends is 15%. Today, an individual making $50,000 and someone making $500,000 a year both have the dividends on their investments taxed at the same rate. Adding another step in the dividend tax schedule, taxing dividends at 20-25% for those in the top tax bracket, would still encourage investments by the wealthy because dividends would still be an advantageous way of generating cash and also give the government a boost in income. While those who would fall into these top brackets most likely would not be pleased, the extra income to the government could go a long way on staving off potential ill effects of massive deficits (provided it is used in conjunction with current spending levels and not as an excuse to spend more).

Welcome!

Bienvenidos! This is the inaugural post at the site. I will be coming up with original content sometime in the future, and will dazzle the fan(s) with fun topics.