Double Dip??

"The problem with these downgrades is that they have a tendency to quickly spiral out of control."

 - John Lott, Fox News

Yes, I know...I haven't blogged in a while. In the past eight months I had a baby, my husband left his job, he took a few months off, and recently started a new one. Life has been crazy; however, I am planning on slowly working my way back into my conservative blog. And with my older kiddos out with their aunt and uncle tonight, I wanted to post something about the recent S&P downgrade of American debt. 

This article speaks to the serious nature of this recent development. It's a quick read and will give you some thought as to what may lie ahead for this country. It's serious. And in the words of Mr. Lott: "S&P's decision to downgrade the U.S. bond rating isn't a real disaster yet, but it is a wake up call. And it's one that should force Washington's politicians to re-examine the debt ceiling deal that they just made."

I was really disappointed with the recent debt ceiling deal. It's not enough. Nobody will touch entitlement programs and that's the meat and potatoes of our country's problems. I want someone with guts to get in there and get it done. Which speaks to my thoughts about the 2012 election. I'm not sure which Republican can take this on....that has yet to be seen, but I'm waiting to be impressed. 

Our President continues to show his hand of inexperience. Words and speeches will not solve our economic and debt problems. Jobs are the core. Businesses need to have a better outlook to hire. They need certainty in the marketplace. Until there are jobs, we will continue on this path. 

Read the full article here. Obama promised change, but it's not the kind of change that has brought America back to prosperity. Things could get ugly unless REAL positive change happens NOW.

Source: Fox News Opinion, 08/05/2011

You Squeeze Wall Street...You Squeeze Me

"Banks and other financial services companies generate one quarter of all taxes collected here [NYC], so anything that hurts their revenue really puts the squeeze on the City's economy."

Mayor Michael Bloomberg of NYC is gettin' mad.  I don't blame him one bit. His city needs the financial services industry to be profitable and keep the city afloat. But Obama has a vendetta against Wall Street and he won't let it go. The legislation is already in the works to cripple Wall Street with more red tape and regulation...which means more costs, less revenue.

This is bad for NYC, but here's the problem for you and me:

We are ALL in Wall Street.  

Do you have a 401k? Stocks? Bonds? What about an IRA? Pension?

Most people are trying to responsibly save now to achieve financial security following retirement. But in order to do so we need the help of a successful Wall Street. We need earnings, profits, and healthy businesses nationwide to push our investment along and allow our own personal wealth to grow.

Before my stay-at-home mom days, I did have a career way-back-when and paid into the Social Security system making me eligible for SS benefits. But considering my age/distance from eligibility and Social Security's inability to meet even current payouts, I'm not counting on it. My chances at SS checks dwindle with each year. But...Obama wants me to count on it. He wants me to NEED it. He wants a middle class dependent on the government. And by crippling Wall Street, Obama will have his way. 

Source:

http://wcbstv.com/topstories/obama.wall.street.2.1633143.html
Rush

April 15th - Payday?

"According to the IRS, the bottom 50 percent of tax filers pay less than 3 percent of all taxes. That share is decreasing every year, and the trend shows no signs of reversing."

 - The Heritage Foundation

I come from a long (and proud) line of accountants. Accountants know firsthand how people despise the April 15th deadline. But for a growing majority, Tax Day is a godsend. More people are paying no income tax...and still others end up getting the government to pay them! 

Go with me here...some more money/tax jargon to follow...but it's important!  Stay...with...me...

Tax Cut vs. Tax Credit

The so-called "2001 and 2003 tax cuts" benefited all payers. Tax cuts do not eliminate your tax bill entirely, but instead lower it. Heritage says, "Lower tax rates cannot make a tax filer a nonpayer.  Tax filers are falling off the tax rolls at an increased rate because of tax credits."

Tax credit examples are: the home buyer tax credit, the Making Work Pay credit, energy-saving credits etc. A credit directly lowers your tax liability. It comes off the bottom line. Politicians love these because they can target one specific group of people and claim credit for the gain. And tax credits encourage certain behaviors like buying a house, or a Prius, or going green...the government loves this!

But here's the problem...

Tax Credits Create a Downward Spiral

• The government is creating MORE tax credits.
• Tax payers can use multiple credits to literally erase their bill. More tax credits means less people actually pay taxes.
• It is estimated for 2010 more than 50% of taxpayers will be NON-PAYERS. Non-payers get everything back, and some earn everything back plus extra. 
• This is when Tax Day becomes payday. How? --> If a tax credit causes your tax bill to go below zero...and it's called a "refundable" credit, the government will PAY YOU whatever that negative amount is. 

EXAMPLE: If your tax liability is $100 and you're eligible for a $150 refundable tax credit, the government pays you $50.

Are you with me? 

Now...this is where disaster looms.

What happens when you have fewer taxPAYERS?

• When you have a majority of voters NOT paying taxes, theoretically they could vote themselves "an increasing share of government benefits at no cost to themselves."
• Then all hell breaks lose. Why would a politician cut back on government spending when the majority of the voters benefit without any increased burden personally?
• This creates a growing state of dependency. "Growing dependence on the tax code for income will reduce individual initiative to achieve because [people] will be able to sustain a satisfactory standard of living without exerting any additional effort."
• And your top performers will have less incentive to work hard and earn more because "they will need to pay increasingly higher tax rates to fund the growing dependency of those that earn less."
• You have slower economic growth and a lower standard of living.

I'm not saying my family refuses to claim tax credits simply because the ultimate effect could be disastrous. But just like me, everyone takes advantage. The government wants it that way. Heritage sums it up quite nicely:

"[It's] a deadly recipe for never-ending increases in government spending that will inevitably lead to a fiscal implosion when there are no longer enough productive taxpayers to pay the bill for the expanding welfare state."

Source:

Heritage Foundation: Tax Day or Payday

Understanding Unemployment

"To increase job creation, Congress must treat the disease, not manage the symptoms.  Government hiring will not spur private investment -- it will crowd it out.  Congress should instead promote private-sector investment and entrepreneurship -- which promote wealth creation."

 - James Sherk, The Heritage Foundation

Do you remember the State of the Union address?  Do you remember Obama promising to focus his priorities on job creation? Well, here we are two months later and it seems "jobs" is just a four-letter word he's required to say every once in a while, but in actuality, has taken very little focus at all.

The Heritage Foundation has a great article today discussing the basic causes of our high unemployment. Go with me here...this is important. Heritage is comparing data from the downturn in 2001 to our current recession and the results are very interesting. 

Before you read below, remember unemployment is a result of two different things:

(1) Layoffs (businesses letting people go...this is mostly what the media focuses on)

(2) Decreased hiring (businesses not adding to their payroll)

Here are quotes directly from Heritage:

Job losses were worse [in 2001 recession] than now. Net employment has fallen more during the current recession because employers have created 7.3 million fewer new jobs than during the 2001 recession.

Decreased hiring is the most important factor driving unemployment up.

Lay offs have now returned to their pre-recessionary levels. Hiring has not.

The main reason why unemployment rises during economic downturns is that job creation falls while the labor force continues to grow, making new jobs harder to find. Those without work remain unemployed longer, driving up the unemployment rate. 

Low hiring is primarily a symptom of America’s economic weakness, not its cause. Businesses did not suddenly decide to stop hiring. Rather, economic and political conditions changed in ways that discourage investment and entrepreneurship.

The large expansion of government is also contributing to the problem. The resources the government spends do not materialize out of thin air— they come from the economy. When the government increases spending, it crowds out the resources that business owners could have invested in their enterprises. Private investment falls sharply when government spending rises.

Many items on the congressional agenda—the gargantuan health care legislation...cap-and-trade regulations of CO2 emissions, and abolishing private ballots for union organizing—would significantly raise taxes and business costs. In addition, enormous increases in federal spending raise the prospects of yet higher taxes and rapidly rising inflation.

These combined factors have particularly affected small businesses...[who] have less room to absorb the cost of additional regulations or taxes. Unsurprisingly, then, small business hiring has dropped much more sharply than in the past. Small businesses now account for 35.8 percent of job losses in this downturn—triple the 2001 amount.

Heritage has a couple great charts within the article.  I've cut and pasted this one because it shows MORE losses in 2001, but also MORE gains compared with today, thus a shorter and less devastating downturn.  The political climate in '01 was such that the private sector was still adding jobs! 

Heritage outlines a slew of options and suggestions to promote job creation, so check it out. But just remember...the government cannot SPEND it's way out of a recession. The private sector needs to start investing, spending and hiring, otherwise 10% unemployment is going to become the norm around here.  

Source:

The Cause of Unemployment: Still Due to Dwindling Job Creation  

You Can't Argue With Liberals

"I am committed to continuing to fight for the revenue necessary to get folks back to work..."

WA State Rep, Geoff Simpson

[Reese translation: revenue = TAXES!]

"When you argue with [liberals], you are not arguing facts or statistics, you are arguing against a religion...Leftists' idealogy is not based in reality.  It is based in a belief....There is no rational thought or intellectual honesty or rigor involved.  It is simply something for the masses to opiate themselves on and feel good about."

 - Captain Capitalism (Why You Can't Argue with a Liberal)

I just don't get it.

Liberals are killing me...and my budget. 

I made a phone call last week to our Washington State Legislative office and in return received a nice letter from my representative, Geoff Simpson, where he outlined his position on taxes. His above quote is an oxymoron, and my eyes-rolled while reading the letter. 

Oh brother.

Please tell me....how does taxing the citizens of this state MORE help them get back to work?

I feel like a broken record. The folks in charge just don't get it.

Businesses will not hire until economic uncertainty dies down...they are waiting to see what their tax bill will become. Health care is killing it...so is Cap and Trade...and so is the "Jobs Bill", which is continuing to just throw money at the problem.  

But Captain Capitalism has it right...you can't argue with a liberal.  They are so rooted in their ideals it's religious-like and they continue to argue against empirical facts and evidence.  

**heavy sigh**

But, anyway, the battle for passage of ObamaCare is going to be in the House.  So,  

HERE IS WHAT YOU SHOULD DO....

Go to this website...find your Representative in the House and 

write them, 

email them, 

call them.  

My representative, Dave Reichert, also had a health care survey on his website. I'm really interested in the results, but he doesn't share.  Whoever your representative is, it's time to lay on the pressure.  Reichert will most likely vote against the health care bill, but it doesn't hurt to make your opinion known.

IT TAKES 5 MINUTES.  

And while uncertainty swarms the nation, my home state also faces some troubled times ahead.  Our State Congress is looking to impose MAJOR new taxes:

• Imposing a progressive income tax (yikes!...we currently don't have a STATE income tax)
• Increasing the sales tax 
• Imposing special taxes for: candy, bottled water, gum, soda, and cigarettes.  If you know me personally, you know my budget will be in a tight spot if this passes (minus the cigarettes...ick...but I can't live without a certain diet beverage and certain "nannies", aka candy).  

And so, my fellow Washingtonians, write your state congressional members as well.  

Here goes another week.  My stock of a certain diet beverage is dwindling fast as I deal with this chaos.


**Note: for people living in close proximity to me, the representative-finding website listed my representative incorrectly as Adam Smith...it's really Dave Reichert.  I am right along the border, so check your representatives map, just to be sure!

Sources:
Dave Reichert Website
Captain Capitalism 05.01.09
http://fns.blogs.foxnews.com/2010/03/07/house-dems-still-undecided-on-health-care/

The People Have Spoken

"This little campaign of ours was destined for greater things than any of us knew, and the message went far beyond the name on the sign."

- Scott Brown, Acceptance Speech

The last of the checks and balances came out in full force today: the people.  I was on watch most of the day and was elated when the numbers came through this evening.

 Whether or not our elected officials actually listen to the people remains to be seen. Brown had some great comments today. I wonder if our panic-stricken Congress listened in. Uncertainty abounds with respect to health care and it appears tonight the Dems have a few ideas floating around, but not a lot of direction. We'll see what the Obama-Pelosi-Reid trio have to say tomorrow.

Best case scenario: ObamaCare dies. I'm not naive...I know it will not die forever, but a girl can dream right? I hope it goes away at least until the election this fall. If "The Machine" continues on its crash course of ignoring public opinion the Tea Party movement will certainly affect the open seats and reclaim some ground in Congress. And maybe we'll see a significant stretch of time pass before health care reform can have some momentum. I said I could dream right?!

"We had the machine scared and scrambling, and for them it is just the beginning of an election year filled with surprises. They will be challenged again and again across this country. When there’s trouble in Massachusetts, there’s trouble everywhere – and now they know it." (Brown)

I've talked about the polls previously, but it's evident Obama and Congress are focusing on the wrong agenda item. Most of the country is worried about the economy and jobs. If I was unemployed I would be more worried about getting a job than my health care premiums. White House Press Secretary Robert Gibbs gave nothing away today in speculating about a GOP win in Massachusetts, but he did elude to job creation taking priority over health care.

QUESTION: What's the President's agenda for his second year in office and what's the top priority?

MR. GIBBS: I think the top priority...is to continue to work hard on getting this economy back on track and creating jobs again...his primary focus will be on creating jobs.

Very interesting.  Could Obama be getting the message?

Here's another Brown quote:

"Raising taxes, taking over our health care, and giving new rights to terrorists is the wrong agenda for our country. What I’ve heard again and again on the campaign trail, is that our political leaders have grown aloof from the people, impatient with dissent, and comfortable in the back room making deals. And we can do better."

I'm hoping our country can have some economic focus. But in the economic realm Obama's lack of experience is evident. I fear Obama will push for another stimulus, which I've blogged about recently, and my opinion is "Are you freakin' kidding me?" Can someone please consider tax cuts!! Let's infuse some cash into our economy...give businesses some opportunity to hire...invest in their businesses. It's a complete no brainer. Tax Cuts = Job Creation. Maybe someone will get the message.

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In a related item...THANK YOU!! I'm so happy with how the blog is being received. Thanks for all your comments and opinions. Obviously, with this being a conservative blog, most of the input and ideas are conservative...but liberal or conservative, keep 'em coming. Let your voice be heard. What we've learned from Scott Brown and his supporters is conservatives are NOT alone. The tea party movement is not to be ignored. Conservatives abound and they WILL stand up.

Source:

Robert Gibbs Briefing 011910

Scott Brown Transcript for Acceptance Speech

MSNBC Skepticism over Obama's Agenda