Thursday, September 30, 2010

Who Owns Your Money?

Have you been following the ongoing kerfuffle in Congress over the Bush Tax Cuts? You know, the legislation passed almost ten years ago to reduce taxation rates across all income categories in a very successful attempt to spur growth in the economy and increase revenues to the Treasury? Like tax cuts almost always do? Well folks, those tax cuts sunset at midnight on New Year's Eve. If not extended in some form or fashion, what would then follow is the largest single tax increase in American history. And, given that Congress has just adjourned without action on this all-important matter bodes ill for everyone that draws a paycheck.

Congressional Democrats want to extend the tax cuts only for the so-called "middle class" and let them expire for the "rich." Rich, in this context, is defined by the Dems as those in the top 2% of wage earners. That's individuals making over $200,000 annually, and couples earning more than $250,000. Think of it as the income of your experienced fireman and the nurse he's married to. They're now rich, you see, whether they feel "rich" or not. Republicans want to extend the cuts for everyone. The President tells us we simply can't afford the $700 Billion it would cost us over 10 years to grant such largesse to those nasty rich people. Cost? There's no cost to leaving things exactly the way they are. And if cost is the issue, why aren't they focusing on the $3+ Trillion it would cost over the next decade to extend those same tax cuts for the middle-class? How, I ask, could it possibly cost us to allow those productive individuals among us to keep that extra money that they earn? That's the money with which they can invest and build companies and buy equipment and hire people. And yes, cars and houses and planes, which keep people employed building them. They are already disproportionately paying over three times the lowest tax rates. In fact, the top 2% already pay more than 25% of all income taxes. It seems to me that's punishment enough for being successful.

Where did all this class warfare come from? Why are the Dems on Capitol Hill so dedicated to penalizing the only folks who can reasonably get us out of this economic morass? I can come up with only one reason. They believe that all the money is really theirs, to do with as they see fit. And they believe they can spend it far better than can we. And redistribute it better, too, selectively buying votes in the process. It's been noted you can't make poor people rich by making rich people poor. Winston Churchill once remarked that trying to tax ourselves into prosperity is like standing in a bucket and trying to lift ourselves up by the handle. I close with one key question: When was the last time a poor person hired anybody?

Wednesday, September 8, 2010

A Lie Repeated Often Enough is Still a Lie

I've grown weary of the constant drumbeat from the Administration and the Mainstream Media that this economic hole we're in was created by George W. Bush. Our new President continually states that he "inherited" the big Federal budget deficits and has to "clean up the mess" left by the Republicans. Although I risk sounding professorial here, please allow me to remind everyone that the President of the United States doesn't spend a single dime. He doesn't vote for expenditures, he doesn't allocate who gets what and he doesn't write the checks. As per our Constitution, which is all-to-often disregarded these days, all spending measures must originate in the House of Representatives and be voted into law by the Senate. Then and only then does the President sign them into law or choose to exercise his veto pen.

It bears repeating that the Democrats took control of both houses of Congress on January 20, 2007. That's nearly four years ago. Nancy ("You've got to pass the (healthcare) bill so we can find out what's in it.") Pelosi, Speaker of the House, and Harry ("This war is lost!") Reid, Majority Leader of the Senate, have worked hand-in-hand with Barack Hussein ("America is the greatest country on Earth. Join with me as we begin to fundamentally transform it.") Obama, POTUS, to grow our Federal debt from $9.2 Trillion amassed over a 230 year period ending with President Bush, to $13.45 Trillion today. More than $4 Trillion dollars of increased debt in just a bit over one and one-half years. And remember that then-Senator Obama voted for every single appropriations bill that he now oversees, and that now threatens our kids' future. Democrats are responsible for every dollar appropriated, every dollar spent and every dollar of increased indebtedness. Our Federal debt now equals more than 90% of our Gross National Product. By the time Obama leaves office, our debt will completely eclipse our GNP. That's Greek territory, folks. So if Greece, Italy, Spain and Portugal are threatening the very existence of the European Union, can our economy be far behind? Oh, by the way. Yes, I'm a graduate economist, so I actually do know a little bit about this subject.

Remember that the whole housing crisis was caused by Barney Frank and Chris Dodd, Democrat leaders of their respective banking committees in the House and the Senate. They loosened requirements for home loans to the point where only a heartbeat was necessary to qualify. Then they forced Fannie Mae and Freddie Mac to buy up the bogus mortgages. Then they cut up the tranches of mortgages into little pieces and sold them off as solid securities around the world. Tens of thousands of folks who should have never purchased homes soon started defaulting on their mortgages, driving home prices into the cellar. That's why we as a country and the whole wide world are in this colossal mess. This was a Democrat plan, a Democrat policy and a Democrat debacle.

So folks, as we head into the "silly season," don't be hoodwinked by those who attempt to evade responsibility for our sorry situation. Those who elect to vote on November 2nd for politicians who believe in more and bigger government, ever increasing taxes, borrowing and spending on a monumental scale, redistribution of somebody else's wealth, class warfare, government takeovers and bailouts and ever more onerous regulations which are squeezing the private sector into near oblivion, I invite them to do so. Pull that lever remembering you're entitled to your own opinions. But you're not entitled to your own facts...