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Straight Talk ***************************************************** It's Time for Some New Tea Parties Come April 15th, a lot of Americans will be taking the opportunity this Tax Day to tell their elected officials that they're T.E.A.'d off. That is, that they're Taxed Enough Already. Good for them! May their numbers multiply. And may more politicians in Washington and the state capitols start to listen to them. If you remember your history, the original Tea Party took place on December 16, 1773 in Boston, in what was then the British crown colony of Massachusetts. Earlier that year, the British Parliament had passed the Tea Act, imposing new taxes on the outraged colonists. Remember the "no taxation without representation" battle cry? (Look how bad it's gotten with representation.) When officials in Boston, acting on orders from the Royal Governor, refused to return the tea to England, a group of colonists, some disguised as Indians, boarded the ships and tossed the cargo into Boston Harbor. The Boston Tea Party, as it came to be known, led Parliament to clamp down on the colonists even further. In 1774, it passed the Coercive Acts, which closed Boston's wharfs until the British East India Company had been paid for the destroyed tea. Colonial resistance hardened, leading to the First Continental Congress and ultimately open rebellion. A year later, the war for American independence had begun. This time, no one is suggesting tossing anything (or anyone) into the water, more's the pity. Instead, patriotic Americans are gathering in cities and towns across the country to protest the Obama Administration's plans to tax us even more. And who can blame them? Despite the demagogic cry that the "rich" need to pay "their fair share," the truth is that the top five percent of U.S. taxpayers already pay 60% of U.S. income taxes. While the bottom 40% pay no income taxes at all. When President Obama talks about "lowering" their taxes, what he really means is that he's going to take more money from those who earn it and give it to those who don't. This is not a "tax reduction" — it is a blatant example of a Marxist redistribution of wealth. At the same time he's promising more give-aways to the poor, Barack Obama wants to raise the top income-tax rate from 35% to 39.6%. Plus, he intends to reduce the deduction the so-called rich can take on their charitable contributions, mortgage interest, and other taxes they pay. Slash the amount of those deductions by 20% and you're effectively raised their tax rate by another 7.9%. In other words, if your income stays the same, better get ready to see your after-tax dollars shrink … a lot. So what can you do about it? It's a little late to vote the rascals out of office — although we'll get another chance at the polls in 18 months. And while I'd never discourage anyone from writing your congressman, the sad truth is that Congress today — especially the House of Representatives, where by law all spending bills must originate — is solidly in the hands of the liberal left. What are the chances that enough constituent correspondence would cause Nancy Pelosi to change course? About the same as the odds of an ice storm in the Sahara Desert. That's why I was glad to hear about the Tax Day Tea Parties being organized across the country. Newt Gingrich, the best-selling author and former Speaker of the House of Representatives, has become one of the chief promoters of the protests. Here's how he describes what's happening: "In outrage against the billions of our dollars being used to pay for the irresponsible behavior of others — and the trillions more in the Obama budget that will be used to expand government even further into our lives — the Reagan coalition of the faithful and the fiscally conservative is reassembling." And Newt adds, "There's no super-rich sugar daddy like George Soros pulling the strings. There's no special-interest group like Moveon.org creating the illusion of a grassroots movement. And it's not a taxpayer-funded ‘protest' group like ACORN. It's just ordinary Americans who believe in preserving American values and principles, like faith, freedom, and smaller government." If that sounds like you, I encourage you to contact one of the sponsors of the Tax Day Tea Parties and make plans now to spend part of next Wednesday, April 15th, at the meeting nearest you. According to the latest reports, there are more than 250 such gatherings planned in all 50 states. Go on the website www.TaxDayTeaParty.com or www.TeaPartyDay.com to find the location nearest you. The first is a coalition of various conservative and patriotic groups; the second is a joint effort by Renewing American Leadership and the American Family Association, which say they already have more than 10,000 people of faith signed up. Also, Newt's own organization, American Solutions, is offering a "Tea Party Tool Kit." To get yours, go to his website, www.AmericanSolutions.com. You Are Not Alone How many times have you asked yourself, "How come no one else feels like I do?" The truth of the matter is, tens of millions of your fellow Americans share your values and your concerns. But thanks to the liberal control of the mainstream media, the left has done an excellent job of making us feel as though we are alone … and that any resistance to their schemes is futile. If you're sick and tired of Big Government getting bigger and more bloated, now's your chance to say so. And to meet with a whole bunch of other folks who feel exactly as you do. By the way, when you do go, pay close attention to which of your elected officials also attend and which ones wouldn't come within a mile of the place. That will give you a very good idea of who deserves your support, and who you'll want to replace, come the next elections. A Tribute to Richard Russell I'm so sorry that I wasn't able to attend the tribute dinner to Richard Russell, which was held in San Diego last Saturday night. I had been invited to serve as Master of Ceremonies for the grand occasion, but couldn't rearrange my schedule to make it. Happily, more than 400 other newsletter writers, publishers, advisors, and grateful subscribers were there, to pay tribute to the man who has been writing The Dow Theory Letter for more than 50 years. In his remarks, Richard told the crowd about living through the Great Depression and the lessons he learned. He said he had seen Babe Ruth hit a home run, watched Joe Lewis box, and paid 75 cents to watch a very young Frank Sinatra sing with Tommy Dorsey. "The automats were huge hangouts," he said, "because you could buy something to eat and sit there all day. People would buy hot water and put ketchup in it to make tomato soup." What about today? Richard Russell expects things to get a lot worse. "People in this country don't realize how bad things can be," he said. "The restaurants are still full. People are still spending money. They may be worried and they may be beginning to save, but there's no sense of urgency. There's a rally on Wall Street. You know, every bear market produces a rally. You can expect the market to retrace its steps by one- to two-thirds." And then he added, "And every bear market has a surprise. I think the surprise is that this is going to be a lot worse than people expect." During a question-and-answer period, Richard was asked, "If you were in charge of the country, what are the top three things you'd do to turn this country around?" He replied, "I wouldn't do a thing. I'd let the bear market take its course. The fixes won't work. They prolong and compound the problem. And they're costing us trillions." I'm told the crowd went wild with applause, giving him yet another standing ovation. To enjoy some of the wit and wisdom of this grand old man of the newsletter business, go to his website, www.dowtheoryletters.com. Scroll down to two links — "Rich Man, Poor Man" and "The Perfect Business." Both are must reads. And both are free to non-subscribers. Once again, congratulations, Richard. I hope we'll be reading you for another 50 years. This Week in History With that meeting, the bloodiest conflict in U.S. history was over. Or at least the official fighting had come to an end. In the former Confederacy, there's still a huge market for "The South Shall Rise Again," "Forget, Hell!" and other mementos of the War of Northern Aggression, as it's frequently referred to below the Mason-Dixon Line. Upon his return to these shores, MacArthur enjoyed a hero's welcome in San Francisco and New York. The following week he addressed a joint session of Congress, concluding his remarks by saying, "Old soldiers never die, they just fade away." And that's basically what Generals Lee and MacArthur both did. ************************************************* Straight Talk is a weekly commentary written by Chip Wood. For many years Chip was the host of an award-winning radio talk show in Atlanta, Georgia. He is the founder of Soundview Publications and serves as an MC at several investment conferences. His weekly rants and raves are free for the asking at www.straighttalkletter.com. 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