Tag Archives: Debt Limit

President Obama Calls for Budget Cutbacks and Fiscal Responsibility

Today, President Obama’s Office of Management and Budget released a memo directing Obama’s Cabinet Members to propose 2013 budgets at levels 5% below 2011 enacted appropriations.  With the baseline established on the Republican passed Continuing Resolution, which already began the … Continue reading

Warren Buffett’s Tax Policy

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Warren Buffet made headlines yesterday with his opinion piece in the New York Times entitled, “Stop Coddling the Super Rich.”  Apparently the multi-billionaire investor Warren Buffet does not believe he pays enough taxes, posting an effective tax rate of 17.4%, which includes the … Continue reading

Obama Hits the Campaign Trail: More Stimulus and Bad Luck

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President Obama is meeting with America, but only in key battleground states that he needs to win in 2012.  And while many conservatives are harping on the $1.1 million dollar buses he’s riding, that’s not really what the focus of … Continue reading

America’s First Day of Freedom – Cost of Government Day Is Here at Last

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Every year, the Americans for Tax Reform Foundation publishes its Cost of Government Day Report, detailing the costs of government on the day of the calendar year at which the average American has paid off the burden of government spending … Continue reading

The Obama Hypocrisy Tax

The Onion headline for today, Obama Proposes Tax Increase on Meanest 2% of Population, gave me an idea.  There are lots of rich liberals who advocate for higher taxes on the rich.  And there are even rich liberals that say … Continue reading

Debt Supercommittee Headed for Gridlock

By August 16th, leaders in both chambers of Congress must appoint three members each to serve on the Joint Select Committee on Deficit Reduction. At the time of this writing, nine members have been announced, with only Nancy Pelosi’s selections yet to be released. The committee picks do not yield much hope for a bipartisan agreement by November 23, and turning the slim area of ideological convergence into a bipartisan deal with cuts of $1.2 trillion will be a formidable task. Continue reading

Obama Stimulus Symbolizes the End of Keynes

A key tenet of Keynesian economics is that government spending can boost aggregate demand during periods where the animal spirits have caused private investment to drop and the marginal efficiency of capital to diminish.  And while under President Carter, “stagflation” … Continue reading

Obama Lying About Taxes in the Wake of S&P Downgrade

Last Friday, Standard & Poors officially downgraded U.S. sovereign debt from its highest rating, AAA, to one notch below it, AA+.  Their report, says that the recent debt deal does not do enough to control the United States’s debt trajectory, … Continue reading

Obama’s Union Thugs

With the debt deal solved and Congress noticeably absent from Washington, the FAA short-term extension was passed in a pro forma session of the Senate.  The FAA reauthorization, a long-term bill to fund the Federal Aviation Administration through 2015, has been stalled for two years because of a Republican-led initiative to block new labor rules that would make it easier for airline workers to unionize.  And while the Senate only agreed to the short-term extension passed by the House because Obama promised to negate the cuts made to the Essential Air Service through executive action, the point I wanted to draw in this article is the unflinching support which Democrats have given to their union friends.  They like to blame Republicans for the shutdown, but the FAA would have been extended and 74,000 workers never furloughed had Democrats agreed to either the removal of a wasteful subsidy for rural airports.

In this case, the particular union rule allowed certain airline employees to unionize with 50% of the votes cast in the unionization election.  Sounds fair?  Well it isn’t.  Standard procedure is that unions must acquire over 50% of the employees in a company, not half of those that vote.  Say a Pittsburgh company has 10,000 employees, but the union schedules the election for a Monday night during a Steelers game.  Only the hardcore union activists show up to vote, and the union gets 100 votes out of the 150 people that show up.  Under the old rules, that would mean the union was defeated, because they could not get over half of the employees in the company to approve of making the union their sole negotiator.  Under the new rules, the 100 hardcore union activists who voted, 1% of the company, would be enough to force 9,900 people into a union that they didn’t care enough about to vote for.

Would unions use such slimy tactics as subverting an election?  Yes they would.  The Service Employees International Union field manual for labor organizers encourages its members to knowingly commit felonies, lie about companies to the media, harass corporate executives, and generally hamper the business’s operation until it collapses.  Obviously Delta Airlines would rather this not happen, and when they defeated a unionization attempt years ago, the mediation board created the new rule to make unionization easier.

The National Labor Relations Board also thinks that it can tell Boeing where to build its companies, while the actions of its Washington state affiliates have cost the companies billions over the last ten years.  Unions aren’t about workers any more, they are about power and money.  Power over companies and money from workers.  If they were about workers, they would not resist common sense Right to Work laws and paycheck protection laws, both of which allow workers to choose whether they want to belong to a union.  But they don’t, because that threatens their bottom line, and their power.  So next time you hear a liberal complaining about anti-union policies, remember unions no longer represent workers, they represent themselves and a small percentage of workers (about 7% in the private sector) at the expense of other workers and American businesses that create jobs and wealth.

The Tea Party’s Next Debt Deal Move

It is no secret that the Tea Party was not happy with the Budget Control Act of 2011 in its final form.  As the newcomers to the process, elected on a mandate to make substantial cuts, Tea Party representatives were understandably disappointed with the relative scarcity of the cost savings, only $21 billion in FY 2012.  Yet turning the ship of state is no easy matter, and the Tea Party should start thinking about what their next move should be.  I have two suggestions.

First, stop worrying about the “super committee,” officially the Joint Select Committee on Deficit Reduction, and whether it will end up reporting a bill with tax increases.  The House will not pass a tax increase, so focus on getting staunch conservative members onto the committee, filling it with members who are focused on rooting out government waste and combating the rampant overspending in Washington.  Speaker Boehner and Leader McConnell will both be looking for ways to reach out to the Tea Partiers that felt they were slighted during the final days of the debt deal debate – and what better way to do that than putting some of the most conservative members onto the Joint Committee.  With 6 staunch conservative members from strong districts on the committee, the chance of a tax increase being pushed into the deal gets significantly less.

Second, implement serious transparency reform to the super committee’s operations, opening their deliberations to the public.  The public reacted with disdain and disgust to the wrangling of legislators during the latest debate, in large part because they were not a party to the discussion.  Bring them in, shine the light onto the discussion and let the public see exactly what our plans are.  Members who stand on their principles will not shy away from making the same bold statements they have been as they look for ways to cut $1.2 – 1.5 trillion, especially as most members are already on the record supporting social security reform, medicare cuts, and other politically dangerous topics.  Including the public in the deliberations is a great way to draw the contrast between Democrats, who have no real spending cuts (outside gutting national defense), and Republicans who do.  Plus Democrats will have to put their tax increase plans on the table in front of the taxpayers, something they have been historically loath to do.  In the tax and spend battle, Republicans are clearly winning.  Let’s not leave the public out in the cold feeling disgusted, let’s bring them in, show them the dirty process, the insider wrangling, etc.  And when they take our side, lets take Democrats to the cleaners in 2012.