Apparently when you pledge your word and you’re a politician, that pledge (and your word) has a shelf-life:
The decades-old pledge from the Americans for Tax Reform group has been signed by 238 House members and 41 senators in this Congress and has essentially become inescapable for any Republican seeking statewide or national office over recent election cycles, especially in the Republican-controlled lower chamber.
New York Rep. Peter King and Sen. Lindsey Graham said Sunday they would break the pledge and accept tax changes to generate more revenue to curb the trillion-dollar federal deficit.
Their statements followed a similar one Thursday by Georgia Republican Sen. Saxby Chambliss.
“I agree entirely with Saxby Chambliss,” King said on NBC’s “Meet the Press.” “A pledge you signed 20 years ago, 18 years ago, is for that Congress. … The world has changed, and the economic situation is different.”
That’s what you get for electing moral cowards (aka, “politicians”) to office.
Forget about it. It is your fault they spend more than they have so pay up and shut up. After all, voters don’t seem to hold them accountable for any of this so why should they worry or take responsiblity?
The great cave-in begins.
The good news? We won’t have to hear any moralizing by the GOP about “principles” … or at least we won’t have to take it seriously.
California, of course:
“The California Republican Party is functionally dead. And how is California doing, now that liberals have successfully terminated the state’s remaining conservatives?” #1 in debt, #1 in welfare, #1 in taxing the rich. And hoping for a federal bailout, I suspect. As is Illinois, which is in similar straits for similar reasons. “One-third of all the nation’s welfare recipients live in the state, despite the fact that California has only one-eighth of the country’s population. That’s four times as many as the next-highest welfare population, which is New York. Meanwhile, California eighth-graders finished ahead of only Mississippi and District of Columbia students on reading and math test scores in 2011.”
You can warn people till you’re blue in the face (no pun intended) how the blue state model is going to end up, but sometimes it is instructive to just let it happen. Of course that assumes that those observing the train wreck try to understand how it happened and work to avoid it elsewhere. I’m not so sure that’s the case in this nation. But fair warning, given the fiscal road we’re on California is as much in our future as Greece:
“For a century or so, guided by brilliant private sector leadership, California was a beacon to the world, a land of opportunity such as never had existed in human history. Unimaginable wealth was created. Yet it required only 40 years of liberal governance to bring the whole thing crashing down. Today, California is the most spectacular failure of our time. Its government is broke. Productive citizens have been fleeing for some years now, selling their homes at inflated prices (until recently) and moving to Colorado, Arizona, Texas and even Minnesota, like one of my neighbors. The results of California’s improvident liberalism have been tragically easy to predict: absurd public sector wage and benefit packages, a declining tax base, surging welfare enrollment, falling economic production, ever-increasing deficits. Soon, California politicians will be looking to less glamorous states for bailout money. Things have now devolved to the point where California leads the nation in poverty.”
California is a state which has modeled blue government for decades, despite warning of where it’s continuance would lead.
And, shockingly to the left, it has ended up right where it was predicted it would end up. Yet, they blindly and willfully continue to march along as though the reality will change and economic laws will disprove themselves if they just persist in their actions.
California is our future. Our near future. See, it’s pretty much as simple as this:
If a country runs a deficit (as a percentage of GDP) that is equal to its growth rate, the debt level will remain constant. This year U.S. GDP will be a little less than $16 trillion, and its historical growth rate is 3.25%. That works out to what we might call a “safe” deficit of $520 billion, or even $600 billion if you allow for a little inflation. Last year, however, the U.S. deficit was $1.1 trillion — or roughly $500 billion too much.
That gap could be closed by ending all tax cuts, tax breaks and stimulus payments for everyone, according to the Tax Policy Center. But two-thirds of the burden would fall on the middle class — something both political parties want to avoid. All the proposed tax increases on the wealthy, however, even combined with the end of the payroll-tax cut, would raise only $295 billion. So unless there were spending cuts twice as big as the ones currently scheduled, the deficit would still be too large.
Those sorts of cuts aren’t even being discussed. Imagine, if you would, radical cuts in the size and scope of our current federal government. Imagine subsidies of all sorts being eliminated. Imagine backing government out of many of the areas it has no business. Imagine simplifying the tax code and giving business a warm fuzzy feeling about the business atmosphere by freezing regulation and in some instances rolling them back. Imagine all of that, because none of it is going to be done.
Instead, the solution is to “tax the rich”.
So let ‘em have it (only if they repeal the Hollywood tax cut). Tax the rich. And when it doesn’t work, and it won’t (in fact, I’m not sure what “work” means in this particular case since the amount to be collected is a mere drop in a 1.6 trillion dollar ocean of debt that’s planned each year for the foreseeable future), they’re left with a lot fewer excuses, huh?
Not that they won’t try to point fingers when their grand plan crashes.
Yup, in the end it all looks like we’re headed to California. Apparently we’re going to have to recreate that debacle on a national level before the blinders come off of the public and the realization that you can’t spend more than you have forever finally sinks in.
Whether or not it will too late to salvage the country at that point, remains to be seen.
Obama has strained to make everyone believe he is open to “negotiations” on the tax rates in dispute that are leading us inexorably to this “fiscal cliff” everyone is talking about.
The word “negotiate” implies compromise. You give a little, he gives a little, you reach a deal neither really likes but both can live with.
He has no intention of giving anything. Why should he? He can’t run for a third term. He has nothing to lose if he stands his ground. Nope, the only one’s who have anything to lose in this one are the usual deer-in-the-headlights suspects. And, of course, Obama has someone else to blame:
By taking an absolutist line, he’s basically gambling that Republicans will be more reasonable than he is and will blink. But if they don’t blink and we go over the cliff, from his point of view so what? Mr. Obama then has an excuse to blame Republicans if there’s another recession. Meanwhile, he pockets the higher tax rates that take effect on January 1 anyway, and he can then negotiate a budget deal next year without having to make any tax concessions.
He pleases his left wing for which higher tax rates are a secular religion, while pinning one more defeat on Republicans. Lest you think this is a conservative fantasy, it’s more or less the tax cliff strategy that Democratic Senator Patty Murray of Washington advocated on Sunday on ABC’s “This Week” and that labor leaders lobbied for at the White House on Tuesday.
So, as we wander toward Taxmageddon, fear not, either way it goes, Obama figures he wins. So why try?
The cultural corruption of entitlements should, by now, be well known. But it also is just as well known that our current system incentivizes the “Santa Claus” form of government vs. that of the night watchman. The end state is inevitable. It isn’t a matter of “if” but “when”.
“The more government takes in taxes, the less incentive people have to work. What coal miner or assembly-line worker jumps at the offer of overtime when he knows Uncle Sam is going to take sixty percent or more of his extra pay? Any system that penalizes success and accomplishment is wrong. Any system that discourages work, discourages productivity, discourages economic progress, is wrong.” – Ronald Reagan
You’d think that would be self-evident. Apparently it’s not. And if you doubt that, watch what happens next year as our “leaders” try to figure out how to get us to pay their way out of the mess they’ve made (and for which we’ve never, ever held them accountable).
All I could do when I read this was laugh. And laugh. And laugh:
The Danish government has said it intends to abolish a tax on foods which are high in saturated fats.
The measure, introduced a little over a year ago, was believed to be the world’s first so-called “fat tax”.
Foods containing more than 2.3% saturated fat – including dairy produce, meat and processed foods – were subject to the surcharge.
But authorities said the tax had inflated food prices and put Danish jobs at risk.
Gee, Econ 101 strikes again.
It is quotes like this that drive me crazy:
“Climate scientists agree the Earth will be hotter by the end of the century, but their simulations don’t agree on how much. Now a study suggests the gloomier predictions may be closer to the mark. … That means the world could be in for a devastating increase of about eight degrees Fahrenheit by 2100, resulting in drastically higher seas, disappearing coastlines and more severe droughts, floods and other destructive weather.”
First, some “climate scientists agree”, not all. Some climate scientists actually disagree. In fact, quite a few.
Second – their simulations have been shown to be factually invalid. They can’t even recreate the past. Yet here we have a newsie asserting, by fiat, that they’re valid and the only problem we face is figuring out “how much” is “right” from these hopelessly flawed models.
Finally, a “new study” based on these flawed models predicts even more extreme consequences than most. Wow … there’s a surprise.
Zombie climate apocalypse continues to stagger on. Why? Because it will be used as a basis to claim we need a carbon tax. Government is not going to miss the opportunity to create a revenue stream out of thin air no matter how questionable the “science” supporting such a power grab remains. It has paid it’s grants, gotten the “science” it paid for and now plans to cash in.
For those on the left who still don’t get the economics thing, much less how taxations is supposed to work, perhaps a little “101″ on the taxation part of it will help you onto the road to understanding the rest:
And no, a “Department of Business” won’t help.
A horrifying combination of expiring pro-growth tax policies from 2001 and 2003, the end of the once-temporary payroll tax cut, and just a few of Obamacare’s 18 new tax hikes, Taxmageddon will be the largest tax increase EVER to hit Americans. It’s nearly $500 billion in one year, starting January 1. That’s two months away.
What that means per person:
One result you can count on:
The businesses that would pay the higher tax rates proposed by President Obama earn almost all the income earned by small businesses that employ workers. According to President Obama’s own Treasury Department, these job creators earn 91 percent of the income earned by flow-through employer-businesses. These are the biggest, most successful small businesses. They employ more than half the private workforce, according to an Ernst and Young study. Raising their taxes would destroy more than 700,000 jobs.
Meanwhile the guy in charge? Well he’s got other things on his mind:
It is worth recollecting the array of attacks from the Obama camp that failed to carry the day. Romney’s approval rating is now higher than Obama’s and the Obama team tried portraying Romney as: 1) the “vulture” capitalist; 2) a tax evader and/or a felon for signing (or not signing) Bain documents after he left to run the Olympics; 3) killer of Joe Soptic’s wife; 4) outsourcer of jobs to China; 5) determined to take contraception away from women; 6) ready to give a tax cut to the rich and hike middle-class taxes; 7) egging on the auto industry’s demise; willing to throw granny over the cliff on Medicare; 9) President George W. Bush’s political twin; and 10) Big Bird terminator.
Taxmageddon? Yeah, not so much. Romeny wants that, apparently. No mention of the 18 ObamaCare taxes by our man. Wonder why? Jobs? See result of Taxmageddon. But he’ll tell you he’s focused like a laser beam. Or is that Uncle Joe’s job? Sequestration? What’s that?
He does have a shiny new booklet out that he calls “a plan”. Nothing new, but lots of pictures.
No sweat though … after the 700,000 jobs are destroyed, he’ll talk some more about a “Department of Business”, okay?
I tend to be more optimistic than Dale about the near-to-intermediate future for the economy and for the culture. This may be unusual for a libertarian, but I’m heartened by many of the ways in which our opponents’ system is unsustainable.
Let me start by saying that, given a certain size of central government, libertarians could do worse than spending almost two-thirds of the budget on a few wealth transfer programs (Social Security and Medicare, both mostly funded by flat taxes, plus Medicaid, which gets much of its funding from the states) and a military like ours. Imagine if that money was spent employing domestic police and busybodies.
But even that government is fiscally unsustainable, so we expect our government to eventually be forced to give up some of its “responsibilities.” Assuming the country avoids a sovereign debt crisis, that adjustment might not be so bad for libertarians. Continue reading
Obama 2012: “I never said it would be quick or easy”
Obama 2009: “If this isn’t done it three years, we’re talking about a one term proposition”
Last night we heard, well, we heard a speech that was not so hot. Oh he said lots of stuff, but we’ve all learned over the past 3 plus years not to really trust what he says, but instead to watch what he does. He knows how to own the rhetoric, he just rarely if ever lives up to it.
He’s the “I want to have it both ways” president.
For instance – last night he said this:
We don’t think the government can solve all of our problems, but we don’t think the government is the source of all of our problems …
And the truth is, it will take more than a few years for us to solve challenges that have built up over decades. It’ll require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one.
On the one hand he tells us government isn’t the answer and on the other, he claims it more government is the answer. Which should we believe?
Well in this case, the latter, given his actions (see ObamaCare which he never once mentioned last night, just like the number “8.2%.). He spent two years going the FDR route with a Democratic Congress and had he not seen his party go down in flames in 2010 and a check put on him in the House of Representatives, you can be assured he and the Democrats would have attempted to grow government even more.
This is a guy on whose watch we almost doubled the debt. Yet not a mention of that last night. Instead he tried to tell us how much he was going to take off the debt . 4 trillion he claims.
Independent experts say that my plan would cut our deficit by $4 trillion.
But another thing you learn listening to this president is to take his claims with a grain of salt. 4 trillion? Only if you believe in “creative” accounting. Jennifer Rubin, quoting the Washington Post’s Glenn Kessler’s fact check of that claim points out why it is a load of rubbish:
By the administration’s math, you have nearly $3.8 trillion in spending cuts, compared to $1.5 trillion in tax increases (letting the Bush tax cuts expire for high-income Americans). Presto, $1 of tax increases for every $2.50 of spending cuts.
But virtually no serious budget analyst agreed with this accounting. The $4 trillion figure, for instance, includes counting some $1 trillion in cuts reached a year ago in budget negotiations with Congress. So no matter who is the president, the savings are already in the bank.
Moreover, the administration is also counting $848 billion in phantom savings from winding down the wars in Iraq and Afghanistan, even though the administration had long made clear those wars would end.
In other words, by projecting war spending far in the future, the administration is able to claim credit for saving money it never intended to spend. (Imagine taking credit for saving money on buying a new car every year, even though you intended to keep your car for 10 years.)
Rather than good arithmetic, independent budget analysts called the maneuver “a major budget gimmick.”
The administration also counts $800 billion in savings in debt payments (from lower deficits) as a “spending cut,” which is a dubious claim. We didn’t realize that debt payments were now considered a government program.
There are a number of other games being played, so fake money is being used to pay for real spending projects. In effect, most of Obama’s claimed deficit reduction comes from his proposed tax increases.
And, as we’ve all learned, those tax increases are but a drop in the sea of red ink this president has unleashed. His appeal to authority notwithstanding, his claim is as empty as his rhetoric.
As most have figured out, the problem isn’t about who is or isn’t “paying their fair share”, it’s about out-of-control spending. In the entire speech last night, that was not a subject that was addressed. Instead, as you saw above, we were given a real preview into what he has in store for us when he can be “more flexible”. FDR type experimentation.
What does FDR type experimentation require? More government and more spending.
Finally, if you missed this, you need to be reminded:
And yes, my plan will continue to reduce the carbon pollution that is heating our planet, because climate change is not a hoax.
That says two things. One, he plans to do the same sort of slow walking for fossil fuel he’s done this past four years while doubling down on his disastrous green policy. And part of the doubling down is undoubtedly to somehow impose a carbon tax that will help feed a ravenous spending machine.
The president who said he would return science to preeminence in decision making during his administration, is now planning on using the pseudo-science of AGW as an excuse to raise taxes on everyone. If that’s not clear, you’ve just not been paying attention.
So he’s right, there’s never been a more clear choice. Continued disaster, keeping a country on the wrong track on that track or an attempt to change that.
Will Romney be better?
He’s actually a turn-around specialist with experience and success in the field. How could he be worse?
I say we make Obama stick with the 2009 statement – for the good of the country.