GM "Success"...Read on...

"The heart of the case against the bailout is that it saps the life-blood of entrepreneurial capitalism."

 - Don Boudreaux, George Mason University economist

I've had this in my "TO BLOG" pile for ten days...but the holidays are upon us...I'm too busy having fun!!  I hope you are too. Despite our country's woes, it's okay to be happy. You are not a bad person if you are finding daily happiness. Sometimes I think our government thinks happy people are bad people...but that's not the case - we are just happy!

But back to my point...

This article by The Heritage Foundation is eye-opening and important for anyone who sincerely believes the GM bailout was a "success".  It's a quick read, but it will clarify what happened, and what would need to happen for taxpayers to get a return in full...even though it's not completely about getting a return on our investment (as my initial quote suggests). 

Direct quote...this is where we are on the money:

"Before this week, taxpayers put a net $40 billion into GM and held a majority stake in the company. The IPO allowed the Treasury to sell about a quarter of their share at $33 per share, raising $13.6 billion. That leaves taxpayers, post-IPO, with $35.9 billion “invested” and about a 37 percent stake in the company. At $33 per share, that leaves taxpayers still almost $10 billion in the hole. The shares would have to jump to $51 for taxpayers to break even, a price level considered by most analysts to be unlikely."

Direct quote...this is why bailouts are not the answer:

But perhaps the biggest danger of all is the prospect of the GM “success” being used to justify future bailouts of other firms. That would be the true catastrophe. As George Mason University economist Don Boudreaux wrote:

The chief economic case against the bailout was not that huge infusions of taxpayer funds and special exemptions from bankruptcy rules could not make G.M. and Chrysler profitable. Of course they could. Instead, the heart of the case against the bailout is that it saps the life-blood of entrepreneurial capitalism. The bailout reinforces the debilitating precedent of protecting firms deemed “too big to fail.” Capital and other resources are thus kept glued by politics to familiar lines of production, thus impeding entrepreneurial initiative that would have otherwise redeployed these resources into newer, more-dynamic, and more productive industries. The “success” of the bailout is all too easy to engineer and to see. The cost of the bailout—the industries, the jobs, and the outputs that are never created—is impossible to see, but nevertheless real.

Source: Morning Bell: Our Economy Can't Afford More GM "Success" Stories, James Gattuso

Message Received!

"With their voices, the American people are demanding a new way forward in Washington."

 - House Minority Leader, John Boehner

It was a success at the polls, as far as I'm concerned. Republicans taking over the House is a huge game-changing play in Washington...and it's because the people made their voices and opinions heard. 

This election is our message to Pelosi and other House members who:

(1) Rammed Obamacare down our throats,

(2) Continued to pass Stimulus packages that are having no impact on the economy, and

(3) Have grown the government and in turn our national debt to the brink of bankruptcy

And I just love how our President has been saying in recent days that should Republicans take the House, they better compromise!  Well, that's interesting, since he wasn't too interested in what Republicans had to say during the closed-door Obamacare meetings earlier this year. I hope the Republicans don't compromise. Stick to your guns, stick to your promises. It's time to make a stand.

The message to Obama and his administration is clear...we don't like what you've done, and it's time to chart a different course!

AND here in Washington state....

I'm elated on the defeat of I-1098 (the income tax initiative).

I'm elated on the passage of I-1107 (ending the candy/soda tax)

I'm elated on the passage of I-1053 (requiring 2/3 legislative majority for tax increases)

It's obvious the people, even the liberal people here in Washington, are conscious of the economy. They know Washingtonians need less taxes and more prudent spending in this State. And Governor Gregoire was doing a bit of complaining last night saying she will have to make some serious cuts. I would like to remind our Governor that IT IS YOUR JOB!  Now is the time to make the tough decisions and earn your keep...otherwise, you'll be out!

I'm off to Washington D.C. (for a personal matter), but I will probably feel a bit euphoric walking near the Capital knowing MY voice has made a difference. I hope you feel the same about yours.

1098 Union Power

At issue on this Washington ballot is how government is to respond when it is spending more money than it takes in.  The answer may help tell the rest of us whether our future is to be government of the public employee, by the public employee and for the public employee."

 - William McGurn, WSJ

Have you heard the phrase, "FOLLOW THE MONEY"? 

Finding out where the money is coming from and where it's going can give a person the truest sense of what's really going on.

With I-1098, the money here is VERY important. The Wall Street Journal has a great piece by William McGurn today about how Unions are (by far) the largest supporters of the "Vote Yes" campaign for 1098.

Just a few great snippets from McGurn:

"Far from a civil war among the rich, the push for I-1098 is being led and financed by unions. In a day when organized labor claims more members in government than in the private sector, it's not surprising to learn that public-employee unions are front and center. Their leadership raises a question asked by beleaguered taxpayers across America: Do state budgets exist to serve their citizens or their government employees?"

"The unions are involved in this initiative because they see it as the only way to maintain vital health-care and education services."

"Of the roughly $6.2 million raised by the lead group urging a "yes" on 1098, $4.1 million comes from unions. The largest chunk of this money comes from two unions and their local affiliates: the Service Employees International Union and the National Education Association (the teachers union)." 

"In a recent article for the Seattle Times, one local businessman pointed out that 60% of the state budget is untouchable because it relates to salaries and benefits for public employees that are governed by union contracts. At a time when the government is facing shortfalls totalling $4.5 billion, he says that the government unions 'have more control over our state budget than we the people have.'"

Doesn't it make sense the Unions are all over 1098? The livelihood of their outlandish health care benefits and retirement packages are all based on a tax structure that can keep up with their demands. And who is responsible for the bill? Private sector taxpayers who fund these benefits while getting by with their more market-driven benefit plans. 

Do you see a trend here? The Unions have P-O-W-E-R...more than you or I realize. 

Just today, Boeing announced increases in 2011 health care contributions for their non-union employees.  The unions, however, are untouched because they are bound by union contracts. And you can bet the unions will put up a huge fight when negotiations begin and an increase in personal benefit contributions are at the table (can you say strike?). 

Yes, Bill Gates is out there saying 1098 is such a good thing (and in my opinion he can go ahead and write a bigger check to the government out of the goodness of his heart if he so chooses), but the real backers of 1098 are Unions who refuse to accept a contraction in their way of life. 

But where does that leave you and I? 

Sources:

WSJ: William McGurn 10.19.2010

Boeing Raises Health-plan Costs for Most NonUnion Workers, 10.19.2010

Ballots are Coming

The ballots are coming. Voting day is approaching...can you feel the intensity? I'm already feeling bombarded with the print ads and TV advertising, but it will still heat up as November approaches.  Here's what I have to say about our Washington races:

(1) DINO vs. MURRAY

Stick with the issues. Murray continues to attack Dino with half-truth allegations and forgets that she's the one on the hot seat. She's part of a Congress that's made our economic situation go from bad to worse. She's part of a Senate which has neglected to pass a budget, and has avoided a vote for our tax structure which is set to begin in 2 1/2 months. She has been a proponent of the stimulus, and Obamacare, which they continue to say, "You're gonna like it, I promise" (Obamacare) and "It will eventually create jobs" (Stimulus).  The problem is we don't like it because the only way to support these programs is through OUR precious tax dollars. 

Do you find it interesting there isn't a single incumbent Democrat around the country running on how they passed milestone legislation for health care???  They know Obamacare was rammed through without support of the American public and they won't win any points by touting such a shameful, unconstitutional "achievement."  

This election is about jobs, the economy and reigning in government control over our lives. What has Patty Murray done to make any improvement?  She's been in office during our boom and now through our recession and yet still is mum about her track record and how that's affected me and you.

Just remember to stick to the issues. Stick to the issues. JOBS and the ECONOMY. 

(2) I-1098

It appears the State Income Tax initiative is in a dead-heat. I am so passionate about defeating 1098 but I think a lot of Washingtonians are feeling indifferent since it's only written to tax wealthier Washingtonians. 

Please share these facts with your friends and neighbors...two years, people...TWO SHORT YEARS and our State Government can make this income tax apply to ALL income-earning Washingtonians. And since our state re-wrote the law on tax hikes a few months ago, it only requires a simple majority vote. And if you trust them to hold back just look at our Sales Tax. It's one of the highest in the country and it continues to go up.  

1098 will not exist in a vacuum either. The effects of a state income tax will filter down to negatively affect our state economy and job growth. A state income tax will deter businesses from relocating to Washington and will deter businesses from expansion. That is job growth and we will see less of it. 

I am probably a broken record...but PLEASE, speak up. Share the details. And VOTE. Vote Vote Vote.

Business speaking out

"For years, the lack of a state income tax has been a powerful selling point to companies and individuals looking to move to Washington. This November's vote will have a big impact on our region's future growth opportunities."

 - Mike Hughes, President of Safeco Insurance

The State Income Tax debate is in full force here in Washington. If Initiative 1098 passes, our state will go from having the lowest state income tax (ZERO) to the fifth highest in the nation. 

Are you eyes wide open now?!...yes, the FIFTH highest.

And some of you are saying...well, that's only for the rich. I'll be fine.

But, like I've blogged about before, just give it two years, my friends, and we'll all be paying into this system.

Want to know who's speaking out against 1098?  Businesses. LOTS of them.

To see a list of businesses that have publicly come out against I-1098 and some great press releases from leaders at some of our largest businesses (Microsoft, Boeing, etc.), click here.

Even if you STILL believe the state income tax won't affect you, you should STILL oppose I-1098 to give our state the best advantage in retaining and attracting businesses to Washington State. It's not just a tax on the super rich...the effects will be far more reaching.

Distinction...from Chris Matthews???

It just goes to show the rest of the media might be getting better at translating Obama speak. 

From the mouth of Chris Matthews:

"He (Obama) should stop saying that giving people tax cuts is giving people money.  It's their money! A tax cut is when the government doesn't take our money.  It's an important distinction."

Do You Trust These Guys?

"Start with the damage it would do to Washington's business climate, and how smacking a narrow band of successful people with a new tax of 5 to 9 percent would take almost $2 billion a year out of the private sector.  An income tax would fall like a ton of bricks on some of those involved with the most innovative, job-producing businesses and companies in Southwest Washington and the rest of the state."

 - WA State Senator Joseph Zarelli

Voting day looms...but Washingtonians need to pay attention to Initiative 1098. It could change your life...not all at once, but it will...and not in a good way.

  

Washington State is in financial trouble and this is the solution: Create a state income tax.

They will start with the highest wage earners (those making over $200k)...these people don't need that money anyway. Who the heck gets to decide who doesn't need their hard-earned cash-o-la? 

I hate this idea of pitting lower wage earners against higher wage earners.  I don't fall into the "rich" category, but I am still freaked out of 1098.  Here's why: I don't trust the government.  1098 paves the way for a full-fledged state income tax in two years for ALL income earners and you better believe they will move in that direction.  

This new state income tax structure will eventually include lower wage earners and the promised tax "eliminations" with 1098 are not permanent and will most likely be re-instated within a few years.  

From defeat1098.com, here are 5 points to consider:

1) We can’t trust the politicians in Olympia with an income tax. If this state income tax on “the rich” is passed, a simple majority of the legislature can extend an income tax to everyone in just two years.

2) The 1098 income tax initiative includes no protections on how high the tax rates can go. 1098 is a new tax on income of more than $2 billion in the first year alone.

3) The supporters of Initiative 1098 say that the revenues from a state income tax would be used for education and health programs, but the truth is that the legislature can spend the funds however it wants.

4) While the income tax would be permanent, the promised relief on property and business taxes is not guaranteed to be permanent and could be eliminated by the legislature in just two years.

5) Job creation will be harmed by the 1098 income tax. As The Seattle Times wrote, “I-1098 also takes away the most important tax-based advantage Washington has in attracting businesses and jobs here: our lack of a state income tax. This state needs that advantage.”  - -

This last one is very scary to me. The health of our state depends on the health of the private sector, which is the ONLY area of the economy that actually creates a single job. Lack of a state income tax is a huge windfall for companies that move here...but we will soon lose that advantage if 1098 is passed. 

And what I find very interesting is the Bill Gates, Sr. television ad tnever actually mentions the words "Income Tax"...it just talks about lowering your tax bill.

If you knew Steve Ballmer (CEO of Microsoft) and Steve Bezos (CEO of Amazon.com) have come out against I-1098 you would realize what this bill will do to attract businesses to this state. Businesses large and small are worried. I am too.

It's a job killer, my friends. Wake up and smell the Starbucks...it may not be here much longer.

More Reading:
Wall Street Journal: The Gates of Confiscation
No on I-1098 - Imposing Income Tax Would Kill the State's Advantage

Taking Credit...NOW!?

"If we're serious about taking action to help our economy get back to creating jobs, Democrats and Republicans must come together and pass legislation this month that makes significant cuts in spending and stops President Obama's tax hike on small businesses."

House Minority Leader - John Boehner

Don't you just love how the media now calls the issue of extending the Bush-era tax cuts as "Obama's Middle Class Tax Cuts"?

I find it quite interesting that he's taking credit NOW...as if he's enacting some sort of tax break for the middle class, which, of course, is not the case.  He's merely extending tax cuts that allowed prosperity under the Bush administration.  

And...if you didn't know...these tax cuts HAVE BEEN IN PLACE for everyone, even the wealthiest of Americans. 

A correct restatement of Obama's strategy is more like: Raise taxes on the rich and small business owners, but maintain the tax structure for everyone else.  

And, yes I've included small businesses in that category, because what you may not realize is most of the "wealthiest" Americans are owners of small businesses, and their small business income is reported on their personal tax return. This tax hike will kill small businesses and contract the economy further. Small businesses will have to either layoff employees to compensate for the tax hike or pull back on any type of expansion. 

Don't get fooled on this one. Obama continues to blame the rich for some type of increase in the deficit. But read between the lines and understand what he's really saying.  He knows he needs more taxes to fund his deficit-type spending. He NEEDS this tax hike. He hasn't had this extra income from the wealthiest of Americans, but he needs it now. He is desperate to fund his promises and has no other solution.

I would say start cutting the budget with an ax and repeal ObamaCare, but he won't listen to me...  

P.S. I'm working my way back into blogging...it's been a crazy few months at our house, but I'm starting to get enraged, so  my conservative outlet must resume! 

Source:

Obama's Middle Class Tax Cuts, FOX News 09162010

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

Side Effects Include...

"A lot of the ideas in terms of the exchange...and improving the purchasing power of individuals in the insurance market originated from the Heritage Foundation."

 - President Obama

You better believe The Heritage Foundation feels slandered about this recent comment from our President.  Heritage will refute this from every angle.  

But they are now working on a feature of the Side Effects of Obamacare. After the bill was passed Obama said, "After I signed it, I looked around and no asteroids had hit the planet (chuckling) and no cracks had appeared in the earth."

Again with the arrogance. Of course, people didn't believe literal Armageddon would occur, but the side effects will represent a sure decrease in our liberties and freedoms.  Here are some already highlighted by Heritage:

FIRST - Higher health insurance taxes --> Remember the tax on so-called "Cadillac" health plans? Under the reconciliation bill, a provision was added to index the threshold of what is considered "Cadillac" to the general inflation rate PLUS 1%.  Do you know what that means?  "The high cost plans tax will hit the average family plan five years earlier."  Over time most plans will fall into the "Cadillac" category and be subject to the tax.  See more here.  

SECOND - The young to pay higher premiums --> A new provision in the plan makes it more difficult to charge older people more for their premiums (as is the case today). "So how will insurers make up the difference? It 'will be shouldered by young people in the form of higher premiums.'" Heritage then suggests these young adults will choose to opt out of increased premiums and pay the penalty instead, which will only "fuel a 'death spiral' of out-of-control premium price hikes." See more here.  

THIRD - Medical devices tax will cut jobs --> Obamacare puts a new tax on medical devices to generate $2.2 billion per year in revenue. The industry simply cannot stay afloat with such a tax burden. CFO at Zoll Medical Corp has said, "We could be forced to (move) manufacturing overseas if we can't pass along these costs to our customers." But either way, it's more cost to the consumer and job losses all around.  Read more here. 

FOURTH - Obamacare fatal for your HSA --> If you use a Health Savings or Flex Spending account you should check this out.  Obamacare limits these accounts as follows: (1) restricts what you can use the money for, (2) reduces the election amounts in your FSA, and (3) doubles the tax penalty for using HSA funds for non-medical expenses. "But the worst news for those using HSAs is the provision requiring all policies to cover at least 60 percent of the actuarial value of the benefits offered."  Basically, high-deductible plans which include HSAs may no longer be viable.  Read more here. 

FIFTH - Laws no longer mean what they say --> Did you hear the leaders of the House discovered a major snafu after the bill was signed?  They messed up the provision that children no longer be denied coverage because of a pre-existing condition. Oops.  They've since said it was their "intent to cover these children and the health care industry has kindly opted to go along.  "But is this any way to run a country? To have lawmakers and regulators coerce the private sector into doing what they simply declare to be their "intent," rather than what is actually written in the law?"  I'm pretty sure that's not how a country is supposed to be run. Be prepared for more of this...

Read more here.

If you want to know how Heritage believes the health care crisis should really be handled, read here. And in the meantime, stay informed. Don't let the press demonize you for opposing this hostile takeover of our basic rights and freedoms. Despite what the media reports, I'm not a racist nor a homophobe nor a feminist. I just refuse to tow the progressive line.

Happy Easter, everyone! We are taking a trip to be with some family. There will be no redistribution of easter eggs going on. It's a free for all, and I like it that way!

Surces:

http://www.rushlimbaugh.com/home/daily/site_040110/content/01125112.guest.html
The Heritage Foundation - Side Effects
Side Effects image from The Heritage Foundation

Government Lingo Excludes "Efficiency"

Anybody who disagrees our government is inefficient and has difficulties conforming to a budget, here is a prime example:

"Census Bureau over budget as heavy counting gets under way."  

 - Fox News

Do you remember seeing the Census commercials during the Super Bowl? Or what about the advanced letter reminding us the Census was on its way? The Census website touts both of these actions as "cost-savings in the long run," but that's hardly believable now. The Census is now over budget before the real meat of the program even begins.  

Fox reports: "Auditors also found the Census Bureau provided training to some 15,000 workers who either worked not at all or less than a single day -- at a total cost of $5.5 million."

Are you kidding? They can't even manage the training or the staffing plan.

Just think of this in reference to health care.  

Mark my words, it will be mismanaged from the get-go.  

Starting with the revenues. The taxes to support health care begin immediately. How much do you trust the money will be left alone for its intended purpose? Social Security is in a hole, Medicare is in a hole, just wait for it...Obamacare will follow suit.  

Anybody who thinks the President is correct on his Obamacare price tag should raise the projected expense a few 100 billion dollars. Thinking a government program can be managed efficiently is an oxymoron.

The only thing better than modeling a government program after a private sector one is to just back off and let the private company continue to manage it.  

Consider if the Census were opened up for bidding and contracted out to a private company...

Cheaper?  YES.  More efficient?  Undoubtedly.  

Source:
FOX: Census Bureau Over Budget
2010.Census.gov FAQ

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/

Too Good to be True? Then it's not true...

"Yesterday Mr. Obama again invoked the 'nonpartisan, independent' authority of CBO*, which misses the reality that if you feed the agency phony premises, you are going to get phony results at the other end."

 - WSJ 03.04.10

"Hiding spending doesn't reduce spending."

 - Rep. Paul Ryan (R - Wisconsin)

In case you were wondering, I am still opposed to Obama's bill...although it has yet to be drafted. The abortion language is a major hiccup, especially for a large group in the House, and a MAJOR hiccup is the cost.   

The Wall Street Journal published an Op Ed Thursday discussing the blatant falsehoods with which Obama touts this bill. The commentary is based on Rep. Paul Ryan's comments from the Health Care Summit, which Democrats and the President himself have yet to refute...because they can't.  Ryan has this thing sorted out.  

BACKGROUND:  I used to work at Boeing.  In a nutshell my job required meeting with Engineers and Project Managers charged with developing new products to create a business case estimating total costs of production, how to amortize and allocate costs, and developing a pricing scheme based on a profit margin target.  It was extensive work...loads and loads of Excel spreadsheets...*sigh*...sometimes I miss it. 

It didn't take long to learn the most important aspect of my job and my estimates:

ASSUMPTIONS

The assumptions, which act as the foundation for an estimate, will make or break the outcome, final numbers and subsequent "Go - No Go" decisions.  

Obama claims his bill is "fully paid for" and "cuts the deficit" and brings the "largest tax cuts to middle class families in history".  But his claims are based on half-truths and deceptive assumptions.  Here are a few:

• Obama has accounted for 10 years worth of taxes but only 6 years of spending. 
• Obama claims the bill will only cost $100 billion/year, but forgets to take into account how the cost will increase every year the program is in existence.
• Obama says cost offsets will come from cuts in Medicare, but everyone knows they will postpone these reductions (they always do); thus the touted savings will evaporate.  And even if they allow the cuts to pass, "Using Medicare as a piggy bank...raids a half trillion dollars from retirees health coverage to fund the creation of another open-ended health care entitlement." Our government cannot run Medicare profitably, what makes you think they can run health care for the entire country?
• Some of the savings is claimed from increased Social Security payroll revenue.  This is an obvious double-dip...and a reason Social Security is upside-down...those funds should be saved/invested for OUR Social Security.
• Obama claims additional savings from CLASS Act long-term care insurance. "These so-called savings are not offsets, but rather premiums collected to pay for future benefits."  

Paul Ryan says, "When you strip [this] away...the deficit increases by $460 billion over first ten years and $1.4 trillion over second ten years."  And some aspects of Paul Ryan's estimate is pretty conservative.   

So despite our disagreements about Health Care reform and this plan's provisions, when it comes to the nitty gritty, the plan is expensive...and your grandchildren are already on the hook to pay for it.  Now that doesn't seem right now does it?

*CBO = The Congressional Budget Office, which aids the legislative body in analyzing bills and providing data to assist in making budgetary decisions.  AKA...they run the numbers.  

Sources:

WSJ Op-Ed

Paul Ryan's Statements from Health Care Summit

El Rushbo's Commentary

No One is Above the Law - Not Even the Legislature

"So even if you raise tax rates, revenue continues to go down.  Governor Corzine raised tax rates last year.  Revenue was down by $2 billion."

 - Governor Chris Christie, New Jersey

I've been fired up the last few days with New Jersey's new Governer Chris Christie's speech and repeated attempts to defend his plan to CUT SPENDING.  He is requiring cuts across the board and promises no tax hikes...and the press is ALL over him.  But he's not backing down.  Man, I respect this guy.  I wish my own state would take note...

Our Washington, like most states, is in a budget crisis and needs to close the gap.  Unfortunately, the only thing WA knows how to do is raise taxes.  

But what is embarrassingly unethical and ridiculously irresponsible is our legislature is ever so close to suspending a voter-approved initiative (I-960) which requires a two-thirds majority to increase taxes. They will now only need a simple majority.  The elected officials with power to raise taxes are changing the law to ease the process to increase taxes...circumventing the will of the people.

*tilting head*  

*shivering*

That is soooo not right.

Have you met a 15-year old on the cusp of driving?  One that knows the days, hours, minutes until they take their driving test?  What if these 15-year olds were given the power to change the legal driving age...do you think they would?  Um...yeah.  What about asking a 20-year old their thoughts on adjusting the legal drinking age?  Difficult decision?  Hardly.

Well, these representatives are the same!  They are changing the rules to improve their position and get what they want.  I-960 is a check on taxes. But now our representatives are willfully ignoring this check imposed by the people and giving themselves a free pass.  It's too dang easy.  Nobody wants to make the hard decisions.  Nobody wants to say no.  

The arguments for suspending I-960 sound so ridiculous to me!

Here from The Daily Evergreen Online, get a load of these statements:

"Republican demands to find solutions for the state debt without raising taxes are simply unrealistic.  Republican propositions would force the Legislature to make cuts across the board to all programs."

Oh, boo hoo!  YES...it's hard!  Have you had to sit down in your own family and make cuts across the board?  It's never easy.  Some programs will have to cut back...or become more efficient.  It's not impossible.  

"This proves lawmakers are not attempting to remove the democratic process, but allow for less debate and more action."

I do believe the root of the democratic process requires debate and discussion. Herbert Humphrey said, "Freedom is hammered out on the anvil of discussion, dissent and debate."  Debate is necessary.  Rash action is damaging and almost always regrettable in hindsight.  

"By the time I-960 is reinstated, Washington state's economy may have improved so taxes can be lowered to previous levels."

Let me tell you something....

TAXES NEVER GO AWAY!!!  

I have no doubt in my mind if a tax increase is authorized to close our current gap we will live with it permanently.  This is so short-sighted and plain 'ole dumb.  

Now the other side...my side:

 

"Our system cannot withstand a tax burden that continually increases. There's a tipping point when there will be more people in the wagon than those pulling it.  The voters' approval of our taxpayer protection initiatives year after year is proof positive that politicians still aren't listening."  (Tim Eyman)

And this from the Yakima Valley News:

"The majority's willingness to tell citizens they know better is a slap in the face to hardworking employers and families.  This is just more evidence for folks who don't trust their government anymore."  (Rep. Charles Ross, R-Naches)

And just like New Jersey's Gov. Christie has said (paraphrasing)...when you raise taxes on people who are already struggling to meet the day-to-day challenges of maintaining a job and keeping their homes, you essentially drive them out.  When they get tapped out, they leave...and the government LOSES money.  

Sayonara, Washington!  

Be prepared for an exodus...and I'm on the list to leave if things continue to worsen (and I can convince the hubster!).   

Sources:

http://seattletimes.nwsource.com/html/opinion/2004366567_timeyman23.html

http://www.dailyevergreen.com/story/30976

Gov Chris Christie's soundbites

KNDO Yakima News

In Honor of Presidents' Day

Have you heard about this billboard? It's in Minnesota and was paid for by a group of small business owners who felt "Washington was against them." 

And the answer?  YES

YES

YES

Yes, I miss him.

And yes, Washington is against small businesses.

Washington has small businesses completely wrong.  Last week Obama stated small businesses weren't growing because they can't get loans to meet payroll.  

Ah-hem.  

I don't own a small business, never have, but I DO know the first checks (after taxes, of course) go to the employees. 

Meet payroll first.

Now, if Obama thinks businesses can't get loans, could it possibly be a result of the new restrictions he's placed on the banks? And even if they have loans and are using them to meet payroll, doesn't that suggest these business are in trouble?  If they need cash to meet payroll, they have bigger probs on the horizon. 

In actuality, small businesses are hedging.  They are waiting.  They don't want to hire and then be forced to downsize after Obama's taxes are approved. Small businesses will see HUGE tax liabilities if Cap and Trade and Health Care come to fruition...not to mention the other income/earnings tax hikes down the pike. 

Our President has no business experience.  He's never run anything in his life...except for this country and he's running it into ruins. Too bad we are the guinea pigs. But yet again, he claims to be all-knowing and out for our best interests, which is ridiculously arrogant.  

So, in honor of Presidents' Day I'm remembering my conservative Presidents and looking forward to a new president in 2012.

Sources:  

Billboard Report on Fox News

Obama's Press Conference

Buyer's Remorse

If this budget is Mr. Obama's first clear demonstration of his long-term governing priorities, then it's hard not to conclude that this spending boom is deliberate. It is an effort to put in place programs and spending commitments that will require vast new tax increases and give the political class a claim on far more private American wealth.

 - Wall Street Journal, 02/03/10

I keep wondering when all the folks who actually voted for "Hope and Change" start to get nervous and have a bad case of buyer's remorse.

The budget came out on Monday.  It's scary.  It makes me physically nervous and anxious when I think about it for longer than 2.1 seconds. Are you nauseated yet?

Do you remember this promise from the Obama Campaign:

"Under my plan, no family making less than $250,000 a year will see any form of tax increase - not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes." (Sept 08 Town Hall meeting in Dover)

Well, not that anyone's surprised, but taxes are going up.  WAY UP.  The only way to support Obama's spending plans is to increase taxes. He's going back on his word (again).

There are some great articles (linked below) talking about what the budget really means.  It basically means we will pay more...whether you make above $250k or not.  Here are some snippets:

Say goodbye to the Charitable Donation Deduction (people will STOP giving!).

Say goodbye to your marginal tax rate; it's going up.

Say goodbye to your investment earnings...the Capital Gains tax rate is almost DOUBLING!

Say hello to the Death Tax. [Sidenote: I heard a great discussion on the Michael Medved show a few weeks ago about this.  It literally blew me mind. The Federal Government believes they deserve a double dip on your earnings.  Once you die, they want to tax your entire estate AGAIN...and to the tune of 55%.  This WILL get its own post.]

Say goodbye to the College and Tuition Tax Credit....(This is $4k) GONE!

Say goodbye to the State-Sales Tax Deduction...GONE!  (this is a big one for my fellow Washingtonians)

People. Listen Up. Stay informed.  Talk to your friends.  Get the word out.

You are about to empty your pockets and hand over your hard-earned cash-o-lah to the government.

Sources and Goooood Material:
http://online.wsj.com/article/SB10001424052748704107204575039671922399114.html
http://thehill.com/homenews/administration/79161-presidents-budget-seeks-an-end-to-tax-break-for-the-middle-class
http://www.rushlimbaugh.com/home/daily/site_020210/content/01125106.guest.html
http://stossel.blogs.foxbusiness.com/2010/01/20/obamas-broken-promises/
http://blog.heritage.org/2010/02/01/morning-bell-the-obama-budget-higher-taxes-higher-spending-and-more-debt/