Congress Defaults

The so-called “Super Committee” failed to yield one iota of progress in resolving our debt crisis and credit-rating downgrade. We knew this would be the result the day it was announced. The leadership of both parties and President Obama should be ashamed for supporting this stunt that merely wasted precious time. The notion that 6 Democrats and 6 Republicans could agree on anything was and is ludicrous. That Congress would abdicate it’s duty in this way is shameful. This will be Boehner’s legacy.

I don’t know what is more frustrating: the ridiculous straw man arguments that the Democrats keep recycling — or the Republicans inability to debunk them.

The left has assailed sensible economic policy for decades via this tactic. Reagan’s policies that focused on cutting top tax rates, a strong dollar and selective deregulation were smeared with the moniker “trickle down” — as if that is what the conservatives were hoping would result. In a grand compromise, tax rates were cut with the promise that spending would be cut later. The Democrat-controlled Congress reneged on that pledge and the resulting deficits were blamed on Reagan’s tax reductions. The fact that revenues doubled in 8 years as top rates were cut from 70% to 28% was and is intentionally ignored. It is worth noting that it was Newt Gingrich and the GOP-led Congress that did get things under control resulting in the alleged surpluses of the Clinton era. (This was mostly smoke and mirrors that involved the raiding of the mythical Social Security “trust fund”; an accounting ruse that would land a CEO in jail.)

Now the Democrats are trying to pretend that the GOP has only one solution to every economic ill. They’ve consistently referred to unchanging tax rates as “tax cuts”. Democrats ramped up spending by 25 % in their 2 years of control and we have a jobless, weak recovery with record debt to show for it. Their stimulus failed as every sensible economist said it would. Keynesian economics can now be relegated to the “ash heap of history”.

The truth is that it is the Democrats who are offering a single solution to all our problems: hike tax rates on the top-earning bracket. A quick analysis shows that this doesn’t result in a substantial increase in revenue or a reduction in debt. Why? As always, there just aren’t enough rich people around. When this is acknowledged the next logical question must be: if taxing the top bracket is insufficient and we refuse to cut spending what must happen? And the only possible answer is: tax rates must then be raised across the board or our exploding debt will lead to excessive money printing, hyperinflation and ultimately, default and economic collapse. The middle class would be wise to take notice and vote accordingly.

Polls consistently show that we hold Congress as a whole in utter contempt – yet tend to give our own representative a passing grade. News flash: If your Senator or Representative has been around for more than 2 terms they are the problem.

I suggest Newt or Mitt or whoever make this their campaign theme:

It’s the spending stupid.

At some point spending and taxes must equate. Deficits at any point ensure higher taxes later. Politicians always prefer later. Later is here. We are at a point on the Laffer Curve where higher rates will produce diminishing returns. Comparisons to rates of earlier eras become faulty as local governments raise their taxes ever higher.

The tax demagogues should be confronted with this simple graph:

The lower rates accompany a period of tremendous growth, falling inflation rates and low unemployment. When I see this graph my impulse is to ask: what gives us the right to seize 90% of anybody’s anything? How did this happen? Isn’t our Constitution designed to prevent exactly this type of tyranny?

As for the spending, our next GOP nominee would be wise to choose Oklahoma Sen. (and Dr.) Tom Coburn as VP. He has outlined hundreds of billions in wasted spending – and yes, much of it is earmarked for Republican projects. This is the time for leadership. The GOP must take the first steps and specify where they will make cuts dear to their own constituency for the good of the country.

We have all the ammunition we need to support a conservative plan for real spending cuts – not just smaller increases – and tax reform that would eliminate the loopholes and streamline the filing process. When properly presented this common sense approach reveals the Democrats singular alternative for what it is: a simplistic and naïve approach that has been used before with disastrous results. Their insistence that it be tried once more is not policy it is a tantrum.

If the current President and Congress can’t take the obvious steps we need to fire them and elect a group who will.

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It’s This Simple

Obama and the Democrats want to raise taxes on “millionaires and billionaires” — but then define them as those making more than $250,000 per year.  I think the key to negotiating with these nitwits is to give them what they want.  By how much would we need to “raise taxes” on these selfish bastards to balance the budget?  Well, for those making $250,o00 per year they’d need to cough up an extra $500,000 annually.

Read more here: LINK

Now that we’ve put that to rest, what is their next great idea?

Thanks to Mark Steyn for the tip.

Published in: on October 24, 2011 at 12:29 pm  Comments (1)  
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Obama Pivots Back

Well that didn’t take long. Obama presented his budget proposal today. It is an insult to the intelligence of the American people. Government spending, taxes, deficits and their impact on the economy are of concern to all tax paying Americans-but apparently not to the President. There was no pivot to the center-just pandering to the voters and a compliant media.

I am not going to go into detail on the numbers or post one link. Any reader can simply go to his favorite news page or turn on the TV. The specific numbers simply provide a laugh track.

The government is currently running ANNUAL deficits of 1.5 TRILLION DOLLARS. Obama is proposing overall spending increases on top of an already inflated base to set a new spending record. He is also proposing myriad tax increases, including a hike in rates in two years when he just admitted that would be harmful for the economy. He combines the tax hikes with  puny spending cuts in targeted programs and voila! He claims he will reduce the deficit by 1 trillion over 10 years.

This is Orwellian double-speak. The deficits and debt are increasing. Period.

The GOP should denounce this for the stinking pile of crap that it is. Every serious Democrat should renounce this. The 2012 campaign starts now. Obama just gave the challengers are huge head start.

Pat Duggan

TEA Party Analysis

I am not a big Peggy Noonan fan. She swings from the right side and yet drank the Obama Koolaid.

But this is great analysis of the TEA party phenomenon.  I really like the yardstick analogy. George Bush is the poster boy for big government / big spending Republicans. The TEA party is a reaction to 75 years of creeping socialism and nanny state intrusion.

Check it out:

LINK

Published in: on September 17, 2010 at 9:46 am  Leave a Comment  
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Stop Calling Them “Tax Cuts”

The GOP has bungled this situation for 10 years and running. This is about tax RATES and how high is too high. It appears that the GOP is not much better informed on economics than the Democrats. They got suckered into lowering tax rates back in the early Bush years with sunset provisions and now we have to vote for passage again with a hostile congress and a stubborn president without an economic clue.

This is one of the top reasons Michael Steele should be forced out. The GOP has a golden opportunity here to frame the debate in it’s proper terms: Optimal rates and the Laffer curve. The Democrats would have you believe that “tax cuts” are no different than welfare checks and are simply handed to wealthy folks that don’t need them. This is not about how the government spends money this is about where the government gets the money in the first place. Taxing top earners at punitive rates sucks the life blood out of the economy. The GOP has a chance to prove once and for all that the Laffer curve is not a “supply-side” theory, it is an economic truth.

They need to prepare now. Take the house in 2010 and the senate with a new President in 2012. Then gradually lower rates while holding the line on spending and watch the deficits turn to surpluses and showcase the results. The revenue gains from the Reagan and Bush tax reductions were obscured by spending increases. This is the time to take control and regain the title of fiscal responsibility.

Robert Tracinski of the Intellectual Activist reminds us of the toxic policies of the FDR era  in his latest missive, “And let me add that the Republicans of today are (with a few notable exceptions) more radical than the Republicans of 1946, back in the era when “me-too” was the official policy of the right. And that’s not to underestimate the achievement of the post-war Republicans, who did a lot to dismantle FDR’s sweeping wartime economic controls—which is what actually ended the Great Depression and ushered in the prosperity of the 1950s.

You can sign up for a free trial here: LINK

This is a battle of ideas. The GOP needs to prove they have a better idea and this is the way to do it.

Pat Duggan

Illinois Construction Strike

It is aggravating enough dealing with the poorly planned construction projects here in Illinois, now we have to tolerate a slowdown due to striking workers. They are making $50 to $68 per hour ($100K+ annual) and asking for more in a deep recession from a bankrupt state. This is what happens when necessary work is funneled through the government process and comes out the other end as a wasteful bloated mess. Our elected officials are blessing this malfeasance to but the union votes with our money.

Vote every single incumbent out now and every election going forward until this ends. Take care to be sure that when you throw the current bum out you are not replacing him / her with just another political hack who was waiting in the wings. The most important votes will continue to happen in the primaries. The last one produced hacks like Kirk and Gianoulias but we can still send the message this fall and in the future.

LINK

Pat Duggan with thanks to a friend for the story link.

More Chris Christie

We desperately need more leaders just like this. The public education system is broken. The anti-voucher movement’s solution? Status quo. Keep doing the same thing over and over expecting different results.

Watch this video:

LINK

Timeless Wisdom

Sent by a friend…no comment needed:

“The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance.”

~ Cicero  55 BC

Published in: on June 3, 2010 at 11:46 am  Leave a Comment  
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Illinois is Doomed Unless…

“No”

“Non-vote”

That’s how Democrat state reps Keith Farnham and Jack Franks “voted” on the forensic audit resolution they sponsored. In spite of their supercilious backing of the resolution, Farnham voted against it and Franks “went to the bathroom”.

Read the full story here: LINK

Illinois is in deep financial trouble. Michigan and California are also. Democratic politicians refuse to acknowledge that raising taxes simply is not an option. Businesses are fleeing for other states. Overall populations are shrinking in some cases.

For a refreshing alternative look at what Chris Christie is accomplishing in New Jersey. The media and union members are apoplectic that he is not dancing to their tune.

Read the full story here: LINK

Published in: on May 27, 2010 at 2:25 pm  Comments (1)  
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