Free Markets, Free People

Bruce McQuain


Jobs, Jobs, Jobs …

Or not.

What is something you probably shouldn’t do if you want to see an industry “save or create” jobs?  

Increase their costs?

U.S. oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to global warming, U.S. Treasury Secretary Timothy Geithner told Congress on Wednesday.

It was one of the sharpest attacks yet on the oil and gas industry by a top Obama administration official, reinforcing the White House stance that new U.S. energy policy will focus on promoting renewable energy sources like wind and solar power and rely less on traditional fossil fuels like oil as America tackles climate change. 

Got that? They shouldn’t get tax breaks because they “contribute to global warming”. Freakin’ incredible. An ideological reason given to deny tax breaks. Here’s government again picking winners and losers.

The Obama administration’s budget would levy an excise tax on oil and natural gas produced in the Gulf of Mexico, raising $5.3 billion in revenue from 2011 to 2019.

And in a time of financial crisis, that cost will be passed on to whom?

Obama’s budget would also place a $4 per acre annual fee on energy leases in the Gulf that are designated as nonproducing. The budget proposal projects the fee would generate $1.2 billion from 2010 to 2019.

Of course, they’re talking millions of acres out there. As Sen. Cornyn points out, it won’t be the ExxonMobile’s or the Chevrons which will be hurt by this:

Senator John Cornyn of Texas criticized the tax increases, saying they would hurt independent energy companies that provide a large share of U.S. oil and gas supplies.

“My view is that higher taxes on small and independent producers here in America will make us more dependent on imported oil and gas while we transition to cleaner energy alternatives, a goal we all share,” said Cornyn. “And it will also hurt job retention and job creation in the energy sector, which provides an awful lot of jobs in this country.”

Pure brilliance.

Yup – it’s all about “saving or creating” jobs – if government approves.

~McQ


When “Waste” Isn’t Waste

When it comes to military procurement, President Obama says:

“I reject the false choice between securing this nation and wasting billions of taxpayer dollars,” Obama said on a day when he signed a presidential memorandum reforming the contracting system across the entire government.

But when it comes to a spending bill with 9,000 earmarks?

*crickets chirping*

Democratic Senator Evan Bayh calls it what it is – wasteful spending.

Where’s the presidential leadership on this?  If there’s waste in the procurement system and that’s a target, why isn’t waste in the spending bill also a target?


Petard. One Each. Hoist When Ready …

Do you like the thought of “pollution free power?”

Yeah, me too. That’s why I like nuclear power and processing the waste as France does (yeah, yeah, even a blind pig finds an acorn, ok?).

But I also want my “pollution free power” to do two things – be consistent in its output and not kill thousands of bats and birds.

Heh … yes friends the latest obstacle the “wind power” advocates have to overcome are -wait for it- environmental activists.

Wind-energy programs in New York – including a developer’s plan to build the city’s first wind farm at Staten Island’s mothballed Fresh Kills landfill – are tied up in red tape because their projects will endanger bats, birds and other wildlife, The Post has learned.

The nocturnal flying mammals are getting slaughtered because they have a strange habit of flying into the blades of wind turbines during the warm spring and summer months, operators and wildlife advocates said.

“An energy source simply cannot be ‘green’ if it kills thousands upon thousands of bats,” said Bat Conservation International.

Moonbat Dream Killers

Moonbat Dream Killers

Uh, no, it can’t. So, if fish can hold up dams and marsh rats can hold up developments, certainly the lives of “thousands upon thousands” of bats are worthy of saving.  We have to stop this unmitigated slaughter by those brutish wind turbines. – I mean if everyone is going to be consistent about all of this.

[As an aside, can you think of better spokes person for the Bat Conservation International than Gotham's favorite bat?]

Staten Island Borough President James Molinaro blasted a city Parks Department report that raised objections about the proposed Fresh Kills wind farm. The study warned of “significant adverse impact to birds and bats.”

Molinaro said the city study even complained the 460-foot turbines would impact insects.

“Can you imagine that? They’re worried the turbines would kill too many mosquitoes,” he fumed. “We want to kill mosquitoes! The city spends lots of money each year to kill mosquitoes because they carry the West Nile virus.”

Er, Mr. Molinaro, can you guess what bats and birds feed on? In fact the bats ingest about 600 mosquitoes an hour.

There are those who say bats and windmills can coexist:

He conducted a study that found that lowering the speed of wind turbines or shutting them down during “low-wind” nights reduced bat fatalities by 82 percent at a Pennsylvania facility.

Shutting them down, eh? You sure generate a lot of power when they’re in that state don’t you?

But the bats, and activists, are happy.

The point? Getting solar and wind power on-line isn’t going to be any easier than any other power source the environmentalists take a dislike too. If you think, for instance that the enviros are going to let someone carpet the Mojave Desert with solar panels, you’d probably believe that Tim Geithner made a “mistake” on his taxes.

And even if you can get past the enviros and their law suits every step of the way, there are right of ways to attempt to purchase, permits, regulations, etc all of which have to be met and/or accomplished before the first kilowatt of power courses from any of these facilities (providing its a windy day and the bats are asleep). Anyone who thinks this is a quick and easy process on the road to pollution free energy independence just hasn’t been paying attention.

~McQ


Quote Of The Day

Who said:

“Over the next several months the President will propose a series of legislative and enforcement measures to reduce such U.S. tax evasion and avoidance.”

Why that would be tax cheat and now Treasury Secretary Timothy Geithner.

Heck, if they could just get half the Democrats in the administration to pay their taxes, they could probably put a big dent in the deficit.


Brits Not Happy With Obama’s Treatment Of Brown

And I have to wonder, given some of the comments, whether this isn’t an indication of his overall disinterest in foreign affairs.

Anyway, a raft of British writers are not happy with Obama’s treatment of them or of British PM Gordon Brown.  Some samples:

Tim Shipman, Telegraph:

A Washington Post colleague just called me and said that the White House press corps cannot think of a single previous occasion when a British Prime Minister was treated in this way.

British Embassy staff, irritated themselves, had to twist Robert Gibbs’ arm to get even two questions per side in a quick oval office doorstep.

Alex Massie, Spectator:

Indeed, for a President who wants to “renew” America’s relationship with the rest of the world, Obama is strikingly reluctant to actually, you know, speak to the rest of the world.

Benedict Brogan, Mail:

If Downing Street was expecting the kind of love-in that marked the first Blair-Clinton gala at the White House or the Blair-Bush Colgate and video moment at Camp David, this new administration has proved it wrong. There never was going to be a press conference, despite what No10 said. And there is no couple time planned. No Stevie Wonder, no Meet the Parents, no burgers.

Daniel Hannon, Telegraph, combines a couple of shots:

Incidentally, did you notice that the president silkily downgraded us? Britain, he said, was “one of our closest and strongest allies”. Well, fair enough. US Presidents have to be sparing with their superlatives lest they irk the Canadians or the Israelis or some other favoured people. Still, Dubya never had any problem with describing the United Kingdom as “our closest friend and strongest ally,” adding, on the day Baghdad fell: “America has no finer ally than Great Britain”.

Some will see Obama’s vocabulary as a calculated snub. The forty-fourth president, they will say, has never been keen on Britain. He’s resentful about the way our colonial officers treated his Kenyan grandfather. He was dismissive of us in his autobiography. But I think there is a simpler explanation: he just doesn’t think much of our Prime Minister. Neither do we, Mr President; neither do we.

One of the first things Obama did on taking office was send a Winston Churchill bust, given by the British to President Bush, back to the British. And now this bit of embarrassment.

I’m sure this will be remembered when the Obama administration asks the Brits, our most solid ally and contributor of troops in Afghanistan, to up their commitment.

Iain Martin of the Telegraph sums that sentiment up best:

We get the point, sunshine: we’re just one of many allies and you want fancy new friends. Well, the next time you need something doing, something which impinges on your national security, then try calling the French, or the Japanese, or best of all the Germans. The French will be able to offer you first rate support from their catering corps but beyond that you’ll be on your own.

When it comes to men, munitions and commitment you’ll soon find out why it pays to at least treat the Brits with some manners.

Ceremony and press availability are expected parts of these sorts of events. And precedent is very important as well. Any deviation which makes the event less than the last one is seen as a diplomatic snub. Diplomatic snubs are not well received and payback is indeed always calculated.

Much of what you’ll read is press hacks whining about not getting the expected and anticipated access. But they do have a point as Tim Shipman describes. True or not, these are now the leading meme’s emerging in the wake of yesterday’s decidedly fumbled diplomatic event:

Why does this matter? Three reasons:

- Major British hack involvement in a full blown press conference has always been regarded as useful by the White House press corps. We ask different questions from them, usually more aggressively and get answers they could not. There were several spiky and revealing moments between President Bush and the BBC political editor Nick Robinson. It is bizarre that Mr Obama is less willing to answer questions than Mr Bush. It reflects very poorly on his tendency towards control freakery, which has been in evidence since his campaign.

- It’s discourteous to Mr Brown, who was desperate for his big moment with the podiums. On his two set piece trips to see Bush there were proper pressers at Camp David and then in the Rose Garden. Why gratify him with the first European trip and then snub his big PR moment? There will be no private relaxation time for Mr Brown with Mr Obama, a given on previous prime ministerial trips. I know he’s busy but it shows that he is not really that interested, as my sources were telling me last week.

- Obama has been running scared of the international media and the British press in particular since the start of his campaign. He didn’t give a single interview to a British outlet even when he was in the UK. This is very unusual, particularly from a man who so desperately wants to be loved on the world stage. We know we’re not special, given Obama’s general contempt for beat reporters (as opposed to his schmoozing with editors), but it is still peculiar.

We’ll see how it goes the next time Obama shows up in the UK or asks for British cooperation and help. Given this little show, however, I’d say Obama’s diplomatic skills need some sharpening. Additionally, the British press is now going to be laying in wait for an opportunity to embarrass Obama. As you can tell, this really PO’d them and he’s not going to be able to avoid them forever. For someone who so masterfully manipulated the domestic press, this is a pretty ham-handed performance. And as we’ve all come to understand, the press will get its revenge.

~McQ


About Those Tax Cuts (Update)

So, 95% are going to get a tax cut are they?  Well, that’s great.  But what the government gives on the one hand, it will find a way of taking with the other.  It needs money folks, and it will get what it needs one way or the other:

A senior Senate Democrat said Tuesday he would consider taxing U.S. workers on their employer-sponsored health insurance to help pay for extending coverage to millions of uninsured Americans.

“I think that tax provision should be on the table,” said Senate Finance Committee Chairman Max Baucus, who will play a major role in writing the legislation to revamp the U.S. healthcare system as promised by President Barack Obama.

“It’s too aggressive. It skews the system,” he said of the tax benefit.

Most U.S. workers with health insurance get it through their employers — 160 million of them — although recent surveys have shown that number is declining as businesses try to cope with the rapidly rising cost of insurance.

The employer-provided benefit is not taxed as income and critics say the tax break encourages workers to seek a more generous benefit package than they might want if it was taxed.

You shouldn’t be getting as “generous” a benefit as you now have, you see – government decrees it and will remedy the “problem” with a tax. You skew their cobbled together system as if it is “the” system, not your welfare, which is most important.

Result – more money out of your pocket at the Doctor’s office (as you scale back the benefit to reduce the tax) and more money out of your pocket to the government.

And you wondered what you’d spend that $13 a week windfall on didn’t you?

This may never come to pass, but understand that when it comes to taxes, the “tax cut” promised is mostly smoke and mirrors – whatever income it preserves will be gotten some other way, mark my words.  The government wants revenue and there’s only one large pool available too it.  It may not be income, per se, that’s taxed, but government will manage to find a way to get what it needs from  you in the coming years.  It has bridges to build and signs to make.

UPDATE: If you need more proof of this, here it is:

Despite President Obama’s promise that “If your family earns less than $250,000 a year, you will not see your taxes increase a single dime. I repeat: not one single dime,” his new budget raises 45 percent of its revenue from energy taxes that will be paid by everyone who fills a gas tank, pays an electric bill, or buys anything that was grown, shipped, or manufactured.

Who in the world do you think will actually end up paying the “cap-and-trade” bills?  It’s the “excise tax” of the ’30s and will have the very same effect.  Read the whole article.

~McQ


The New “O”

Coming to a bridge abutment near you, uh, someday:

The Big "O"

The Big "O"

Somehow it doesn’t surprise me that the new NRA Eagle is in the shape of an “O”. Jake Tapper reports:

President Obama announced today that his administration will begin stamping an emblem on projects funded by the economic stimulus package so that people can easily recognize the effects of the American Recovery and Reinvestment Act.

All projects will be stamped with the ARRA logo (short for the American Recovery and Reinvestment Act) and lists the recovery.gov website on the emblem.

The Blue Bird Of Happiness

The Blue Bird Of Happiness

There truly is nothing new under the sun – just uglier.

And if the new “O” hasn’t made you slightly nauseous, try the new “Transportation Investment Generating Economic Recovery”, or TIGER logo on for size.

From Disney World To Vegas

From Disney World To Vegas

One thing you can say for these folks, from the “Office of the President Elect” to “TIGER”, they have the trite sign deficit licked.

~McQ


Christopher Buckley Also Has Second Thoughts

The scion of conservative legend Bill Buckley seems to have suddenly misplaced his rose colored glasses as well:

The strange thing is that one feels almost unpatriotic, entertaining negative thoughts about Mr. Obama’s grand plan, as if one were indulging in—call it—the audacity of nope. It is on the one hand clear that something must be done about our economic woes. But that is very different from saying that spending these vast, oceanic sums of money is the right corrective to a decade of fiscal incontinence.

One thing is certain, however: Government is getting bigger and will stay bigger. Just remember the apothegm that a government that is big enough to give you everything you want is also big enough to take it all away. And remember what de Tocqueville told us about a bureaucracy that grows so profuse that not even the most original mind can penetrate it.

If this is what the American people want, so be it, but they ought to have no illusions about the perils of this approach. Mr. Obama is proposing among everything else $1 trillion in new entitlements, and entitlement programs never go away, or in the oddly poetic bureaucratic jargon, “sunset.” He is proposing $1.4 trillion in new taxes, an appetite for which was largely was whetted by the shameful excesses of American CEO corporate culture. And finally, he has proposed $5 trillion in new debt, one-half the total accumulated national debt in all US history. All in one fell swoop.

He tells us that all this is going to work because the economy is going to be growing by 3.2 percent a year from now. Do you believe that? Would you take out a loan based on that? And in the three years following, he predicts that our economy will grow by 4 percent a year.

This is nothing if not audacious hope. If he’s right, then looking back, March 2009 will be the dawn of the Age of Stimulation, or whatever elegant phrase Niall Ferguson comes up with. If he turns out to be wrong, then it will look very different, the entrance ramp to the Road to Serfdom, perhaps, and he will reap the whirlwind that follows, along with the rest of us.

Have you ever seen such a mish-mash of contradictory thoughts?

“If this is what the American people want, so be it …”, said the modern day Pilate as he washed his hands of it all.  And then the acknowledgement that these things being passed into law will never go away?

Where was he during the run-up? Eagerly lapping up the kool-aid and projecting his idea of hope and change on the blank screen Obama provided. And now he voices concern? Now he’s not sure about what seems to be planned?

What a fundamentally dishonest guy Chris Buckley is – sell the agenda knowing full well the probable outcome of its implementation and is now saying “well if this is what the American people want, they can’t complain when it takes us all to hell”. If you want to tap into an unlimited source of renewable energy, hook something up to Bill Buckley’s grave. He’s probably spinning so hard he could power NYC.

~McQ

[HT: RWN]


David Brooks Finally Figures It Out

Well sort of.  He tells us in his latest piece that he considers himself a “moderate-conservatitve” (what in the world is that?) and he finds the Obama budget (and agenda) waaay to “progressively liberal” for his taste.

Like David Broder, he seems to be surprised by that.

But the Obama budget is more than just the sum of its parts. There is, entailed in it, a promiscuous unwillingness to set priorities and accept trade-offs. There is evidence of a party swept up in its own revolutionary fervor — caught up in the self-flattering belief that history has called upon it to solve all problems at once.

So programs are piled on top of each other and we wind up with a gargantuan $3.6 trillion budget. We end up with deficits that, when considered realistically, are $1 trillion a year and stretch as far as the eye can see. We end up with an agenda that is unexceptional in its parts but that, when taken as a whole, represents a social-engineering experiment that is entirely new.

The U.S. has never been a society riven by class resentment. Yet the Obama budget is predicated on a class divide. The president issued a read-my-lips pledge that no new burdens will fall on 95 percent of the American people. All the costs will be borne by the rich and all benefits redistributed downward.

The lesson the left learned from the Clinton era is to move boldly and unapologetically toward what they want while they have the power and popularity to do so instead of screwing around with moderation, incrementalism and governing from the center. And the Republicans only reinforced the lesson when they tip-toed around while they had power, seemingly more worried about being liked than getting things done that agreed with their principles. Well, as Brooks and the “moderates” who were fooled into thinking Obama would be another Clinton have found out, there’s nothing “centrist” to this bunch now in power.

To their horror, they find they’re getting exactly what they were told they would get and, for some reason, they’re surprised and don’t like it. But without them, this little progressive song and dance never had a chance of hitting the main stage.

Now, per Brooks, its up to the moderates to save the country.

Oh goodie.

Pardon me if I don’t hold my breath. The squishy middle save us from anything? Based on what?  What principles do they rally too?  As easily as they were gulled in the last election, they have little credibility when it comes to such activities. And to whom or what would they appeal? Other moderats who were as clueless as they were? Then what?

But losing the middle would be a bit of a blow to the Obama administration’s plans. Obama is presently trading off of his popularity and there seem to be more questions about his true intentions than satisfactory answers. A loss of popularity might stiffen the spines of some blue dog Dems and slow this rocket sled to hell down a bit. Of course, it seems there’s a RINO in the weeds for every blue dog that says no, so I’m not sure what real impact that would have.  But hey, even the RINOs may get the message (again, not holding my breath).

I know it’s not much to hope for, but it is interesting to see the scales finally begin to fall from moderate eyes.  It demonstrates the brilliance of the candidate being the projection screen and with a few key words like “hope” and “change”, conning the middle into pretending that the fantasies they’ve conjured up and projected on him would become reality.  Now we pay the piper for that little screw up, don’t we?

~McQ


Atlas Appears To At Least Be Warming Up

As you might imagine, the 5% (the taxable “rich”) are trying to figure out how to become a part of the 95% (the “tax cut” rest):

President Barack Obama’s tax proposal – which promises to increasetaxes for those families with incomes of $250,000 or more — has some Americans brainstorming ways to decrease their pay, even if it’s just by a dollar.

I’m sure this comes as a horrific surprise to those who have been clapping their hands gleefully in anticipation of the “rich” finally “getting theirs”. But the “rich”, or at least some of them, may have other ideas. The following anecdote best illustrates the most important points:

Dr. Sharon Poczatek, who runs her own dental practice in Boulder, Colo., said that she too is trying to figure out ways to get out of paying the taxes proposed in Obama’s plan.

“I’ve put thought into how to get under $250,000,” said Poczatek. “It would mean working fewer days which means having fewer employees, seeing fewer patients and taking time off.”

Generally it means being less productive,” she said.

The motivation for a lot of people like me – dentists, entrepreneurs, lawyers – is that the more you work the more money you make,” said Poczatek. “But if I’m going to be working just to give it back to the government — it’s de-motivating and demoralizing.”

Like the probable results of the Obama plan so far?

Fewer employees (that’s jobs for those missing the point), less money (which means a tax cut instead of a tax increase), less production (scarcity), less in taxes for the government and thus less in revenue with which to meet its spending goals.

She is, of course, exactly right – working to make the government’s coffers fatter is both de-motivating and demoralizing.  

So assuming that the majority of that percentage of the population now under the tax hike gun is successful in lowering their earning profile  to the “tax cut” category,  what alternative does that leave for a government hungry for revenue?

It can redfine “rich”.  

The cycle repeats with the “new” rich going through the same type of cutting back – letting employees go, doing less work and leaving government with less anticipated revenue.  The engine of commerce – the engine of prosperity and jobs – goes into reverse as each new attempt to secure the funding necessary to move the dream agenda forward is scuttled by selfish Americans not willing to work just to hand over what they earn to government.

I can’t imagine why people still wonder why I want to see the Obama agenda fail?

~McQ

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