Ideological Blindness

Political Cartoons by Nate Beeler

Treasury Secretary Timothy Geithner told the House Small Business Committee on Wednesday that the Obama administration believes taxes on small business must increase so the administration does not have to “shrink the overall size of government programs.”

The administration’s plan to raise the tax rate on small businesses is part of its plan to raise taxes on all Americans who make more than $250,000 per year—including businesses that file taxes the same way individuals and families do.

Wasn’t it Obama and Company that said they weren’t raising taxes on small businesses? 🙂

And shrinking the size of government programs is the whole F*cking point these days, at the people believe.

But not in Washington. They are still trying to get around it. They don’t want to do it. They just want to look like they are.

Which is why I say, the nuclear hot potato they are playing with will go off in our faces before anyone does anything. Guaranteed though, that the liberal will blame it on anyone but themselves.

Geithner’s explanation of the administration’s small-business tax plan came in an exchange with first-term Rep. Renee Ellmers (R.-N.C.). Ellmers, a nurse, decided to run for the U.S. House of Representatives in 2010 after she became active in the grass-roots opposition to President Barack Obama’s proposed health-care reform plan in 2009.

“Overwhelmingly, the businesses back home and across the country continue to tell us that regulation, lack of access to capital, taxation, fear of taxation, and just the overwhelming uncertainties that our businesses face is keeping them from hiring,” Ellmers told Geithner. “They just simply cannot.”

She then challenged Geithner on the administration’s tax plan.

“Looking into the future, you are supporting the idea of taxation, increasing taxes on those who make $250,000 or more. Those are our business owners,” said Ellmers.

Geithner initially responded by saying that the administration’s planned tax increase would hit “three percent of your small businesses.”

Ellmers then said: “Sixty-four percent of jobs that are created in this country are for small business.”

Geithner conceded the point, but then suggested the administration’s planned tax increase on small businesses would be “good for growth.”

Just like the liberal who sight “15 months of private sector job growth” as their way of saying the economy is growing when it’s not. But they want to ignore the burning forest to focus on the one tree that isn’t burning yet and say, “see, I told you it wasn’t on fire!

Raising Taxes during a near-depression is always a good idea. Liberals just don’t get it, and more importantly, don’t WANT to get it. They just want to do what they want to do because they want to do. And they fantasize that it will all work out because in their heads it make so much sense to them. Reality is not their strong suit.

“No, that’s right. I agree with that,” said Geithner. “But just to put it in perspective, it’s important to recognize why are we doing this. You know, our deficits are 10 percent of GDP, higher than they’ve been since any time in the postwar period really. We have a big hole to dig out of, and we have to figure out how to do that in a way that’s balanced, good for growth, fair to people as a whole.”

Geithner, continuing, argued that if the administration did not extract a trillion dollars in new revenue from its plan to increase taxes on people earning more than $250,000, including small businesses, the government would in effect “finance” what he called a “tax benefit” for those people.

What they hell do you call ObamaCare for godsake?

“We’re not doing it because we want to do it, we’re doing it because if we don’t do it, then, again, I have to go out and borrow a trillion dollars over the next 10 years to finance those tax benefits for the top 2 percent, and I don’t think I can justify doing that,” said Geithner.

Ah, there’s the Class WarFare mantra. it always rears it’s ugly head because it’s at the heart of Liberalism.

By the way, the top 1% pay 40% of ALL TAXES. 47% of the American people pay NO TAXES AT ALL!

The top 5% pay 60% of all taxes! (which by the way is well below the $250,000 threshold).

So half the people who pay taxes would be taxed more and the half that doesn’t pay now anyhow wouldn’t. Gee, that sounds like a great idea! 😦

So let’s make them pay more because Liberals want to be “fair” and appease their burning desire for Class Warfare and ‘peasant’ resentment!


And you’re it, buddy!

Not only that, he argued, but cutting spending by as much as the “modest change in revenue” (i.e. $1 trillion) the administration expects from raising taxes on small business would likely have more of a “negative economic impact” than the tax increases themselves would.

“And if we were to cut spending by that magnitude to do it, you’d be putting a huge additional burden on the economy, probably greater negative economic impact than that modest change in revenue,” said Geithner.

Yeah, Over $14,000,000,000,000 in debt is not a worry at all.

Tax and Spend!

Spend and Tax!

When Ellmers finally told Geithner that “the point is we need jobs,” he responded that the administration felt it had “no alternative” but to raise taxes on small businesses because otherwise “you have to shrink the overall size of government programs”—including federal education spending.

Ah, poor baby… 🙂 (This would be the education spending where 12% of students could pass a basic history test after 12 years of it, right?)

“We’re not doing it because we want to do it, we’re doing it because we see no alternative to a balanced approach to reduce our fiscal deficits,” said Geithner.

Yeah, like cutting spending. The myopic Liberal view only sees Keynesian economics and nothing else.

Tax and Spend. Spend and Tax. Class Warfare. That’s it.

“If you don’t touch revenues and you leave in place the tax cuts for the top 2 percent that were put in place by President Bush, if you leave those in place and you’re trying to bring our deficits down over time, then you have to do exceptionally deep cuts in benefits for middle-class Americans and you have to shrink the overall size of government programs, things like education, to levels that we could not accept as a country,” said Geithner.

So you have to grow the size and scope of government and taxes to shrink a deficit?

Elections have consequences people!

“So to do a balanced approach to reduce our deficits you have to make modest changes in revenues,” he said. “There’s no realistic opportunity to do alternatives to doing that.”(CNS)

What we need is a drastic CUT in SPENDING. The revenues will follow.

But since Liberals can’t even fathom that concept this is what you get.

Now that’s you’re Hope & Change! 🙂

More recently we’ve witnessed the creation of new historical narrative about the financial crisis of 2008. The perceived history, eagerly peddled by liberals and Democrats, is that the crash of 2008 was the result of Wall Street greed. It was unregulated capitalism that brought us to the brink of financial meltdown, the Democrats insisted. And they codified their manufactured history in a law, the Dodd-Frank Act, that completely avoided the true problem.

It’s both surprising and gratifying, therefore, to report that a great revisionist history has just been published by none other than a New York Times reporter, Gretchen Morgenson, and a financial analyst, Joshua Rosner.

In “Reckless Endangerment,” Morgenson and Rosner offer considerable censure for reckless bankers, lax rating agencies, captured regulators and unscrupulous businessmen. But the greatest responsibility for the collapse of the housing market and the near “Armageddon” of the American economy belongs to Fannie Mae and Freddie Mac and to the politicians who created and protected them. With a couple of prominent exceptions, the politicians were Democrats claiming to do good for the poor. Along the way, they enriched themselves and their friends, stuffed their campaign coffers, and resisted all attempts to enforce market discipline. When the inevitable collapse arrived, the entire economy suffered, but no one more than the poor.

Jim Johnson, adviser to Walter Mondale and John Kerry, amassed a personal fortune estimated at $100 million during his nine years as CEO of Fannie Mae. “Under Johnson,” Morgenson and Rosner write, “Fannie Mae led the way in encouraging loose lending practices among the banks whose loans the company bought. A Pied Piper of the financial sector, Johnson led both the private and public sectors down a path that led directly to the credit crisis of 2008.”

Fannie Mae lied about its profits, intimidated adversaries, bought off members of Congress with lavish contributions, hired (and thereby co-opted) academics, purchased political ads (through its foundation) and stacked congressional hearings with friendly bankers, community activists and advocacy groups (including ACORN). Fannie Mae also hired the friends and relations of key members of Congress (including Rep. Barney Frank’s partner).

“Reckless Endangerment” includes the Clinton administration’s contribution to the home-ownership catastrophe. Clinton had claimed that dramatically increasing homeownership would boost the economy, instead “in just a few short years, all of the venerable rules governing the relationship between borrower and lender went out the window, starting with … the requirement that a borrower put down a substantial amount of cash in a property, verify his income, and demonstrate an ability to service his debts.”

“Reckless Endangerment” utterly deflates the perceived history of the 2008 crash. Yes, there was greed — when is there not? But it was government distortions of markets — not “unregulated capitalism” — that led the economy to disaster. (Mona Charen)

But I’m sure the liberals will CUT that out of the education they are so desperate to preserve. 🙂

Just Spend More Money!

Political Cartoons by Gary Varvel

Political Cartoons by Chuck Asay

Political Cartoons by Lisa Benson

Political Cartoons by Michael Ramirez

Political Cartoons by Chuck Asay


Can I have an Order of Fear & Freeloaders, Please…

A Michigan man who won $2 million in a state lottery game continues to collect food stamps 11 months after striking it rich.

And there’s nothing the state can do about it, at least for now.

Leroy Fick, 59, of Auburn won $2 million in the state lottery TV show “Make Me Rich!” last June. But the state’s Department of Human Services determined he was still eligible for food stamps, Fick’s attorney, John Wilson of Midland, said Tuesday.

Eligibility for food stamps is based on gross income and follows federal guidelines; lottery winnings are considered liquid assets and don’t count as income. As long as Fick’s gross income stays below the eligibility requirement for food stamps, he can receive them, even if he has a million dollars in the bank.

Food stamps are paid for through tax dollars and are meant to help support low-income families.

“If you’re going to try to make me feel bad, you’re not going to do it,” Fick told WNEM-TV in Saginaw on Monday.

After all, he’s “entitled”. As I have said before and will say again, Liberals are the greediest, most self-centered because they feel the most entitled to other people’s money.

Oh, and if you disagree with Liberals on this Grandma is going to be thrown off a cliff (that’s coming later on in this blog).

Then there are the frauds. Like AARP.

“I think I’m scheduled to get my AARP card in a couple of years?” President Barack Obama asked today.

“Anytime you want one,” the organization told him. “Platinum.”

Obama at AARP.jpg

The stage was set at AARP, the powerful Washington-based lobby for senior Americans, for Obama to host another “town hall” forum on healthcare reform, where the president allowed that both he and his wife Michelle have “living wills” drafted but hope they don’t have to use them anytime soon.

“If you have insurance that you like, you will be able to keep that insurance,” Obama said of the healthcare reforms that he is pursuing on Capitol Hill. “Nobody is trying to change what works.” (Obama 2009)

They were a massive supporter of ObamaCare.

Now they get a waiver for their MediGap insurance. Their main rival, Medical Advantage gets savaged by ObamaCare.

Effectively, AARP is no longer a senior advocacy group, but just another “evil” “greedy” insurance company. But since they are in bed with Obama and the Liberals, that’s ok.

Their moral outrage is selective.

The Daily Caller has learned that the Department of Health and Human Services (HHS) rate review rules, which it finalized on Thursday, exempt “Medigap” policy providers, like the American Association of Retired Persons (AARP), from oversight when such providers increase payment rates for their supplemental insurance plans.

Insurance providers who aren’t exempt from Obamacare’s rate review rules are required to publicly release and explain some health care payment rate increases.

The AARP is the nation’s biggest seller of Medigap policies, or supplemental healthcare plans that add onto what Medicare won’t cover for seniors. The senior citizens interest group advocated for Obamacare to include an attack on Medigap policies’ biggest competitor, Medicare Advantage.

Though the White House and HHS dismiss allegations of political favoritism when it comes to who’s getting exceptions from the new health care regulations – such as in the recent uproar over the disproportionate number of Obamacare waivers that went to companies in House Minority Leader Nancy Pelosi’s district — Obamacare critics say the mere appearance of the administration helping friends is disturbing.

The appearance of favoritism exists with the new AARP exemptions, too. Senate Majority Leader Harry Reid and Sens. John Kerry, Massachusetts Democrat, and Max Baucus, Montana Democrat, wrote to HHS Secretary Kathleen Sebelius last October asking her not to do what HHS just finalized today – that is exempt Medigap policies from rate increase oversight.underwriter

“While Medicare Advantage premiums are declining, we are hearing disturbing stories from beneficiaries across the country about excessive premium increases for Medigap supplemental insurance policies,” Reid, Baucus and Kerry wrote to Sebelius on Oct. 6.

“For example, some beneficiaries enrolled in the United of Omaha Life Insurance Company will see their Medigap premiums increase by approximately 40 percent between 2010 and 2011,” the letter read. “An increase of this magnitude raises serious concerns about premium-setting practices and rate review procedures in place for Medigap policies.”

Instead of listening to three top Senate Democrats, the Obama administration decided to go ahead anyway with the Medigap exceptions from rate increase reviews.

The AARP was a driving force behind getting Obamacare through Congress, contributing a large sum to the $121 million advertising campaign pushing it, and spending millions more lobbying for it on Capitol Hill.

The senior citizen advocacy organization stands to make huge profits from Medicare Advantage cuts and from the exemptions it will benefit from when it comes to the Medigap plans sold under what AARP CEO A. Barry Rand calls the AARP’s “for-profit side.”

The AARP’s support of Obamacare during the debate over the legislation raised lots of eyebrows nationwide, as President Obama called for $313 billion in cuts to Medicare to push the plan through. Seniors weren’t happy about it, and many ripped AARP representatives at town hall meetings nationwide.

Now, though, it’s clear that the AARP is set to make millions, if not billions, of extra dollars in Medigap plan sales moving forward because they’ve effectively knocked out their biggest competitor, Medicare Advantage, through Obamacare. (DC)

AARP aided and abetted Democrats’ efforts to inflict a disastrous bill on an unwilling public.  They now stand to profit from the resulting law — while simultaneously receiving convenient exemptions from provisions that may hurt their bottom line.  Ed Morrissey pens the appropriate response to this outrageous report:  “If the AARP and the labor unions that backed ObamaCare need waivers from its consequences, then we all do.”  Amen.  I’ll leave you with this delightful AARP/Obama walk down memory lane.  This clip still makes my blood boil:
Update from AARP: “To be clear, AARP is a non-partisan, non-profit organization with a membership. While there are insurance products that carry the AARP name, they are underwritten by insurers such as Delta Dental, UnitedHealth Group, and Aetna and others—not AARP.  We work to ensure those products meet our standards and provide value to our members.

And, NATO is the US so the US didn’t attack Libya…right….. 😦
Oh and if you disagree with them, Grandma is going off a cliff…
Democrats continue to try to scare seniors with a new anti-GOP Medicare ad that shows “Grandma” getting thrown off a cliff and then asks, “Is America beautiful without Medicare?”

Welcome to the land of the freeloaders and the home of the depraved. No image captures America’s regressive ethos better than that of 30-year-old Stanley Thornton Jr., self-proclaimed “Adult Baby.” Profiled on a recent National Geographic reality television show, Thornton claims to suffer from a bizarre infantilism that leads him to wear diapers, lounge around in an oversized crib and seek constant coddling.

The nappies may be extreme, but let’s face it: Thornton Jr. — let’s just call him Junior — is a symptom of our Nanny State run amok, not an anomaly.

Junior came to Washington’s attention this week when Oklahoma GOP Sen. Tom Coburn challenged the Social Security Administration to probe into how the baby bottle-guzzling 350-pound man qualified for federal disability benefits. A former security guard, Junior is handy enough to have crafted his own wooden high chair and playpen.

Junior can drive a car and has sense enough not to go out in public in his XXL footie pajamas. Yet, welfare administrators treat him as an incurable dependent. Also collecting taxpayer-subsidized paychecks: Thornton’s adult roommate, a former nurse, who has indulged Thornton’s baby role-playing for the past decade.

Junior, naturally, threw a tantrum when his government teat-sucking was called into question. He wiped his nose and un-balled his fists long enough to type out an e-mail to The Washington Times: “You wanna test how damn serious I am about leaving this world, screw with my check that pays for this apartment and food. Try it. See how serious I am. I don’t care,” Junior threatened. “I have no problem killing myself. Take away the last thing keeping me here, and see what happens. Next time you see me on the news, it will be me in a body bag.”

Not from nowhere has this stubborn, self-destructive sense of entitlement sprung. As I reported last month, a record-breaking 12 million Americans have been added to the federal food stamp rolls over the past two years, and the bloated $6 billion AmeriCorps social justice army has been converted into a publicist corps for the welfare machine.

Just this week, a Michigan man boasted that he’s still collecting food stamps after winning a $2 million government-sponsored lottery prize. “If you’re going to … try to make me feel bad, you aren’t going to do it,” he told a local TV reporter. Embedded in his rebuke is the eternal refrain of the self-esteem-puffed teenager: “You can’t judge me!”

Diana West, author of “The Death of the Grown-Up,” traced the modern abdication of adulthood to the Baby Boomer generation. “The common compass of the past — the urge to grow up and into long pants; to be old enough to dance at the ball (amazingly enough, to the music adults danced to); to assume one’s rights and responsibilities — completely disappeared” after World War II. A culture of behavioral restraint gave way to “anything goes” and morphed into the current generation’s “whatever” attitude.

Look around: Junior’s infantilism is of a piece with the refusal of celebrity mothers Dina Lohan and Tish Cyrus to act like parents — and instead serve as best friends and tattoo parlor pals for their wayward daughters Lindsay and Miley. They’re the kind of women who shop at Forever 21, buy beer for their daughters’ prom parties and give them Botox certificates for high school graduation.

Junior’s penchant for pajamas is of a piece with perpetually stunted Hugh Hefner’s fetish for velvet robes 24/7 and self-indulgent decadence. Junior’s giant playpen is a cringe-inducing symbol of the Farmville-tethered, “funemployed” class of self-gratifiers who continue to live for today and spend like there’s no tomorrow.

Adult Baby Syndrome isn’t an isolated pathology. It’s the new American Way. Or, I should say, the new American Wahhhhh. (Michelle Malkin)

On issue after issue, Republicans are putting forward serious, sober and often politically risky solutions (if sometimes a bit weak kneed) to the nation’s most pressing problems, while Democrats play class-warfare games and stoke the public’s fear.

Oh, and today was supposed to be the end of the world… 🙂

Michael Ramirez Cartoon

Political Cartoons by Nate Beeler

Political Cartoons by Chip Bok

The Golden Years

I’ve said this before, that AARP is not a seniors advocacy group any longer. It’s a business. And mostly, it’s a greedy, capitalist one.

It’s an INSURANCE company really. 🙂  A tax-exempt one at that.

It will benefit from the destruction of Medicare Advantage. The more expensive and less productive MediGap insurance is backed by….AARP.

Gee, now that’s not ruthless, heartless, Me-me, capitalism now is it!

Gee, I thought Liberals were against such tawdry things. 🙂

Health Reform: The tax-exempt seniors group that pushed hard to get ObamaCare passed stands to reap a billion-dollar reward over the next decade as ObamaCare destroys the competition to the products it endorses.

During what passed for a debate on ObamaCare, the Centers for Medicare and Medicaid Services (CMS), which administers benefits under Medicare, issued what can only be called a gag order after private insurer Humana Inc. warned its Medicare Advantage customers in a letter that ObamaCare might cause them to lose some benefits.

It was because that letter exposed one of Obama-Care’s biggest lies — the claim that if you liked your coverage you can keep it. Millions of seniors liked Medicare Advantage and still do. Fearful of the consequences of the hundreds of billions ObamaCare would cut out of Medicare, and angry about AARP’s support for health care reform, CBS News reported in 2009 how at least 60,000 seniors tore up and mailed back their AARP membership cards.

President Obama told a town meeting in Portsmouth, N.H., “We have the AARP on board because they know this is a good deal for our seniors.” Now a new report released by GOP members on the House Ways and Means Committee, “Behind the Veil: The AARP America Doesn’t Know,” says the AARP may have been on board simply because it was a good deal for it.

The report by House Ways and Means Committee members Wally Herger, R-Calif., and Dave Reichert, R-Wash., compiles the results of a yearlong investigation. It notes that as a result of the health care law, the Obama administration estimates more than 7 million seniors will lose their current Medicare Advantage plan and that AARP stands to benefit handsomely from that fact and the law it lobbied for through the sale of its competing, endorsed Medicare insurance products.

According to the report, AARP had the fourth-highest lobbying expenditures from 1998 to 2010, just below General Electric but above PhRMA. In its lobbying efforts, AARP sold itself as an advocate for seniors against those big, bad insurance companies. Yet it makes tons of cash from endorsing products sold by those same insurance companies.

Royalties from licensing the use of AARP’s name earned $657 million for the organization in 2009, some 46% of its total revenue vs. just 17% from membership dues. Since 2002, income derived from AARP’s business relationships, primarily with insurance companies, has nearly tripled, increasing by $417 million.

The millions forced by ObamaCare to lose the Medicare Advantage coverage will result, the report says “in a massive migration of seniors to Medigap plans. AARP is the nation’s leading provider of Medigap plans and has a contract in which AARP financially gains for every additional Medigap enrollee. “

The amount AARP will gain from ObamaCare — with cost-effectiveness mandates leading to rationed care, the destruction of medical innovation and health care decisions made by bureaucrats rather than doctors and patients — is staggering.

“AARP’s financial gain from the health care law,” the report states, “could exceed $1 billion during the next 10 years. This is because AARP will see their royalty payments increase as seniors are forced out of (Medicare Advantage) plans and buy AARP Medigap plans instead.”

This morphing of a touted seniors service organization to just another lobby feeding at the federal trough for fun and profit has Republicans questioning the group’s tax-exempt status.

“During this investigation it became very clear that despite its privileged tax-exempt status, in many cases, AARP represents a for-profit entity, in fact, an insurance company,” said Ways and Means Rep. Charles Boustany, R-La.

This shameless exploitation of seniors for profit is yet one more reason for pulling the plug on ObamaCare and issuing a “do not resuscitate” order for this government power grab.

So next time you see an AARP commercial about how great they are, wonder just a bit more about whether they actually give a crap about grandma, or whether it’s their bottom line that comes first.

Like a all good demonized “evil” capitalists. 🙂

Political Cartoons by Glenn Foden


People can change the volume, the location and the composition of their income, and they can do so in response to changes in government policies.

It shouldn’t surprise anyone that the nine states without an income tax are growing far faster and attracting more people than are the nine states with the highest income tax rates. People and businesses change the location of income based on incentives.

John Fund of WSJ’s Political Diary breaks down Tuesday’s most interesting primary contests. Also, WSJ Columnist Mary Anastasia O’Grady translates the latest economic signals from Washington.

Likewise, who is gobsmacked when they are told that the two wealthiest Americans—Bill Gates and Warren Buffett—hold the bulk of their wealth in the nontaxed form of unrealized capital gains? The composition of wealth also responds to incentives. And it’s also simple enough for most people to understand that if the government taxes people who work and pays people not to work, fewer people will work. Incentives matter.

People can also change the timing of when they earn and receive their income in response to government policies. According to a 2004 U.S. Treasury report, “high income taxpayers accelerated the receipt of wages and year-end bonuses from 1993 to 1992—over $15 billion—in order to avoid the effects of the anticipated increase in the top rate from 31% to 39.6%. At the end of 1993, taxpayers shifted wages and bonuses yet again to avoid the increase in Medicare taxes that went into effect beginning 1994.”

Just remember what happened to auto sales when the cash for clunkers program ended. Or how about new housing sales when the $8,000 tax credit ended? It isn’t rocket surgery, as the Ivy League professor said.

On or about Jan. 1, 2011, federal, state and local tax rates are scheduled to rise quite sharply. President George W. Bush’s tax cuts expire on that date, meaning that the highest federal personal income tax rate will go 39.6% from 35%, the highest federal dividend tax rate pops up to 39.6% from 15%, the capital gains tax rate to 20% from 15%, and the estate tax rate to 55% from zero. Lots and lots of other changes will also occur as a result of the sunset provision in the Bush tax cuts.

Tax rates have been and will be raised on income earned from off-shore investments. Payroll taxes are already scheduled to rise in 2013 and the Alternative Minimum Tax (AMT) will be digging deeper and deeper into middle-income taxpayers. And there’s always the celebrated tax increase on Cadillac health care plans. State and local tax rates are also going up in 2011 as they did in 2010. Tax rate increases next year are everywhere.


Now, if people know tax rates will be higher next year than they are this year, what will those people do this year? They will shift production and income out of next year into this year to the extent possible. As a result, income this year has already been inflated above where it otherwise should be and next year, 2011, income will be lower than it otherwise should be.

Also, the prospect of rising prices, higher interest rates and more regulations next year will further entice demand and supply to be shifted from 2011 into 2010. In my view, this shift of income and demand is a major reason that the economy in 2010 has appeared as strong as it has. When we pass the tax boundary of Jan. 1, 2011, my best guess is that the train goes off the tracks and we get our worst nightmare of a severe “double dip” recession.

In 1981, Ronald Reagan—with bipartisan support—began the first phase in a series of tax cuts passed under the Economic Recovery Tax Act (ERTA), whereby the bulk of the tax cuts didn’t take effect until Jan. 1, 1983. Reagan’s delayed tax cuts were the mirror image of President Barack Obama’s delayed tax rate increases. For 1981 and 1982 people deferred so much economic activity that real GDP was basically flat (i.e., no growth), and the unemployment rate rose to well over 10%.

But at the tax boundary of Jan. 1, 1983 the economy took off like a rocket, with average real growth reaching 7.5% in 1983 and 5.5% in 1984. It has always amazed me how tax cuts don’t work until they take effect. Mr. Obama’s experience with deferred tax rate increases will be the reverse. The economy will collapse in 2011.

Consider corporate profits as a share of GDP. Today, corporate profits as a share of GDP are way too high given the state of the U.S. economy. These high profits reflect the shift in income into 2010 from 2011. These profits will tumble in 2011, preceded most likely by the stock market.

In 2010, without any prepayment penalties, people can cash in their Individual Retirement Accounts (IRAs), Keough deferred income accounts and 401(k) deferred income accounts. After paying their taxes, these deferred income accounts can be rolled into Roth IRAs that provide after-tax income to their owners into the future. Given what’s going to happen to tax rates, this conversion seems like a no-brainer.

The result will be a crash in tax receipts once the surge is past. If you thought deficits and unemployment have been bad lately, you ain’t seen nothing yet. (Mr. Arthur Laffer is the chairman of Laffer Associates and co-author of “Return to Prosperity: How America Can Regain Its Economic Superpower Status” (Threshold, 2010).)
And there’s the “reduction” in the Deficit from The Government takeover of health care and those associated taxes.

Then the proposals for Cap & Trade that will tax your energy.

Fifty three of the Senate’s 59 Democrats gave unelected, overpaid bureaucrats at the U.S. Environmental Protection Agency a green light yesterday to do pretty much whatever they choose in their quixotic crusade against global warming. All 41 Republicans and six brave Democrats voted for Alaska Sen. Lisa Murkowski’s resolution nullifying the EPA’s recent usurpation of authority under the Clean Air Act to regulate the U.S. economy to combat greenhouse gases. Thankfully, this craven surrender of congressional authority isn’t the last word on the issue, assuming that the November elections produce a Senate with enough backbone to reassert the legislature’s rightful power.

In the meantime, it’s vital to understand how bureaucracies function. Whatever else they may do, leading bureaucrats always do two things, regardless of which party controls the White House or Congress: They limit choices available to the rest of us by imposing regulations that increase government power and thus justify expanding their budgets and staffs; and they protect themselves and their turf by suppressing internal dissent, often at any costs.

As an example of the latter, consider career EPA scientist Alan Carlin. Last year, Carlin went through all the proper channels in submitting a study to the EPA’s top leadership in which he raised serious questions about the credibility of scientific reports used to justify the agency’s decision to regulate greenhouse gases. Carlin’s study became public thanks to the Competitive Enterprise Institute. Carlin’s reward was to be publicly pilloried by President Obama’s EPA administrator, Lisa Jackson. His work was suppressed within the agency, and he was threatened with additional retaliation if he continued voicing his views. Rather than endure this bureaucratic muzzling, Carlin retired.

Similarly, EPA lawyers Allan Zabel and Laurie Williams — a married couple living in San Francisco who between them have four decades of experience at the agency — became so concerned last year about the EPA’s support of cap-and-trade legislation that they created a YouTube video titled “The Huge Mistake” to explain their case. They made it clear that the video represented only their personal opinions, but the EPA still ordered them to change the video’s content or face severe punishment.

Sen. Lamar Alexander, R-Tenn., predicts that a suffocating new round of EPA regulations will soon descend upon the “one-fifth of our restaurants, one-fourth of our schools, two-thirds of our hospitals and doctor’s offices, 10 percent of our churches, thousands of farms and millions of small businesses” that emit greenhouse gases. Considering how the EPA grandees mistreat their underlings, we wonder how the agency will respond to the soon-to-be-swelling ranks of critics on the outside.(Washington Examiner)

Then there’s the bankruptcy of Social Security and Medicare.

But don’t worry, you can be safe and secure and get the warm fuzzies…


So have your Two Minute Hate (A hideous ecstasy of fear and vindictiveness, a desire to kill, to torture, to smash faces in with a sledge hammer, seemed to flow through the whole group of people like an electric current, turning one even against one’s will into a grimacing, screaming lunatic. And yet the rage that one felt was an abstract, undirected emotion which could be switched from one object to another like the flame of a blowlamp-George Orwell) and go out and work 3 jobs just to put food on the table and a roof over your head.

The Guardian reported on June 2 that the UN was supporting a switch to a radical anti-meat agenda. “A global shift towards a vegan diet is vital to save the world from hunger, fuel poverty and the worst impacts of climate change, a UN report said today,” wrote the paper.

Here’s how the group Vegan Action describes this extreme vegetarianism. “While vegetarians choose not to use flesh foods, vegans also avoid dairy and eggs, as well as fur, leather, wool, down, and cosmetics or chemical products tested on animals

The UN report is all about the environmental impact of “consumption and production,” or pretty much what humans do – eat and make stuff. It warns: “A substantial reduction of impacts would only be possible with a substantial worldwide diet change, away from animal products.”

So evil carnivores everywhere beware, the Politically Correct are gunning for you too!

Best rest assured, the government will be here to save you! 🙂

We see it as a entrepreneurial bill – a bill that says to someone, if you want to be creative and be a musician or whatever, you can leave your work, focus on your talent, your skill, your passion, your aspirations because you will have health care.”-Speaker Nancy Pelosi

Doesn’t that just make you feel so much better! 🙂