The Obama Deficit Lie

President Barack Obama and Democratic Congressional leaders have hypocritically promised since taken office in January that are going to be “deficit hawks”. We have not even reached the one-year anniversary of the Inauguration and the same Democratic leaders are raising the debt ceiling by $1.8 trillion. The national debt is already nearing $12.1 trillion and the economic geniuses in DC have realized that their historic deficit spending has made it imperative to raise the ceiling.

The federal deficit for last fiscal year that ended at the end of September was around $1.4 trillion. To put that into perspective, the federal budget for all of 2008 was $2.9 trillion. To be fair, and to prevent my left-leaning friends from hyperventilating, some of that deficit belongs to President Bush, but in the first 2 months of this fiscal year the Obama administration has spent $296.7 billion in the red. Project that out for the next 12 months and the 2010 federal deficit will be about $1.8 trillion. Of course we have to consider that the “emergency” stimulus spending has not really even started to be spent.

Based on President Obama’s penchant for socialist government, you can guarantee his response to the crippling deficit and ever-increasing debt will be to raise taxes. His tax increases will be “targeted” towards only the “rich”, but it will soon become apparent that the definition of rich will be continually redefined until the majority of the middle class will be hit as well. Of course the net result of his tax hikes will be an even bigger hit to the economy than his disastrous policies have already been. "There is no such thing as government money - only taxpayer money." William Weld

The bureaucrats in Washington have expelled so much hot air making promises about deficits, bailouts, Afghanistan, Guantanamo, and health care that if I believed in the global warming hoax, I would be worried about a real life Day After Tomorrow. Thank God the carbon dioxide being spewed out in DC has no effect on our climate. Unfortunately the idiotic economic policies coming out of Washington will have lasting effects that our children and grandchildren will feel. To borrow a line from the President’s campaign, “It is time for Change!”

President Obama, The $4 Trillion Man

Earlier this week, President Obama addressed both chambers of Congress to discuss the economy and his plans for the coming years of his administration. During his speech and throughout his campaign, the President promised to end the era of earmarks and deficit spending. He went as far to promise to go line by line through any spending measure and publicize all earmark spending and which congressman had requested it. Just one month into his administration, we have seen massive pork barrel spending and non-stop “the sky is falling” rhetoric.

The ink from President Obama’s pen had not had time to dry on the $800 billion “stimulus” bill, before House Speaker Nancy Pelosi pushed through another $400 billion spending bill. The newest spending bill from Congress contains more than 8000 earmarks. This is on top of the countless earmarks in the “stimulus” bill. The new administration and Congress have signed on to spend more than $1.2 trillion in the first 30 days since the Inauguration. To put that into perspective, that is more than half of the federal budget for 2004, or almost half of what the federal government received in tax revenue for all of 2008. We are more than $1.2 trillion more in debt and we are not even into March yet. Of course, Obama’s breathless supporters in the media would tell us to wait until his budget comes out to see where he has made the cuts to pay for the massive deficit spending, but his budget calls for a more than $1 trillion increase in spending over this years’ budget.

The President has released his budget proposal and it totals over $4 trillion, with about $1.75 trillion in projected deficit spending. This is the largest increase in federal spending in our history. In 2008 the federal budget was a paltry, by comparison, $2.978 trillion with total revenue received at $2.523 trillion. That budget had about $450 billion in deficit spending, but to jump to $1.75 trillion in deficit spending and then claim that you are going to control spending is laughable.

The $4,000,000,000,000.00 budget includes tax increases for those making more than $250,000. My friends in the class envy camp applaud this notion of taxing the rich, but they fail to see that a majority of small businesses will now see tax increases. Allow me to ask one simple question. How will your life improve if some nameless “rich” person is taxed more? The Bill Gates and George Soros’ of the world will not pay any more in taxes; they will simply shift their money around to avoid the taxes. The small business owners are the ones that will bear the brunt of the tax increase. After this plan fails to raise the revenue that the “experts” in Washington project, they will be forced to either raise taxes on the rest of us, after all it is the patriotic thing to do, or hopefully they will see the error of their ways and cut taxes across the board. This budget is equivalent to $11,833 for every American.

President Obama was elected on a platform of hope and change; the first indicators of his administration definition of that campaign slogan are beginning to become clear. They are desperately hoping that the voting public will not notice that the change is the unprecedented spending and power grab in Washington. I believe that the voting public is very aware of what affects their wallets and they have a very long memory when it comes to their own financial well being.

The Return Of The Politics Of Fear

As the debate over the massive spending bill heats up in the Senate, the outrageous rhetoric has stooped to new lows. The $800 billion “stimulus” package that the Democrats pushed through the House of Representatives has continued to expand to more than $900 billion. Instead of fulfilling the promise of “trimming the fat” from government, Senate Majority Leader Harry Reid has overseen the addition of even more pork to already bloated spending bill.

A Rasmussen poll taken this week showed that public support for the bill has shifted dramatically over the past 2 weeks. 2 weeks ago 45% of the public favored the plan compared to 34% opposed to the plan. Now a mere 37% support the measure with 43% firmly opposed to spending billions of taxpayer money on frivolous pet projects that will do nothing to stimulate the economy.

Talk radio and Internet bloggers have combed through the proposal and highlighted numerous line items that the politicians have had much difficulty trying to justify the billions pledged. The American public clogged the phone lines at the Capitol this week voicing their displeasure over the enormity of the spending bill. The reaction to this measure is reminiscent of the Comprehensive Immigration Reform Act of the summer of 2007. As you may recall, the Senate attempted to just push the bill through with very little debate or public scrutiny. The public outcry over the immigration bill doomed it to an early grave.

As public opinion over the “stimulus” plan has soured, the administration and congressional leaders have come out to try to scare the populace into supporting it. House Speaker Nancy Pelosi claimed this week that for every month that they do not pass their “stimulus” package, 500 million Americans would lose their jobs. That number is staggering, especially considering that the U.S. Census bureau projected the U.S. population on New Years Day to be about 305 million. I know that she misspoke, but she said it at least 3 separate times. Surely someone on the Speaker’s staff could have corrected her after the first gaffe. President Obama made the rounds to the network news shows to try to sell the need to pass the proposal now. He even claimed that if the Congress did not pass the bill now, “we may never recover”. The proponents of the massive waste of taxpayer money claim that this is the worst economy since the Great Depression. The trouble is that they are obviously lying. The economy during the Jimmy Carter presidency was by leaps and bounds much worse than it is now. We had double-digit national unemployment and interest rates. Of course, if we continue down this foolish road of frivolous spending we will surely see the return of malaise.

A stimulus bill is needed to turn our sluggish economy around, but it needs to be a measure that will put more of our own money back in our pockets. It should not be a bill that steals more of our money to fund the pet projects of politicians. Action just for the sake of action is folly. I believe that this current bill should be defeated in it’s entirety and Congress should start over with more focus on actual economic stimulus vice more unnecessary spending.

Why Not A Tax Holiday, Instead Of Another Bailout?

The CEO’s of the big three automakers arrived in Washington to continue to beg for billions of taxpayer dollars to help bail them out of their financial woes. At the same time, House Speaker Nancy Pelosi has started talking about another $500 billion “stimulus” package. Cities and states are lining up on Capitol Hill with their hands out claiming that financial ruin is on the horizon without a federal government bailout. Secretary Paulson seems eager to hand out billions, if not trillions, more to any and all corporate takers. By some accounts, the bailout promises of Paulson and Bernanke total $7.7 trillion. It amazes me that very few appear to be asking the obvious question; who is going to pay all of this back?

At least one congressman is appalled by the bailout frenzy that has gripped Washington of late. Texas Representative Louie Gohmert has come up with a cheaper alternative. Gohmert has proposed two options. The first proposal is to make it so no one pays any income tax for 2008. Any income tax that has already been collected would be returned to the taxpayer and they would not pay any income tax for the rest of the year. Gohmert says in his press release, "My idea may sound unconventional, but it is trillions of dollars cheaper than our current course. My proposal actually relies on our nation's founding democratic principles that made us the greatest nation in the world before anyone ever heard of Mr. Henry Paulson!" Gohmert’s philosophy is simple. Why not give the money directly to the consumers who could use it to buy a new car, pay off credit cards, catch up on a mortgage, or make a down payment on a house? We are not talking about a stimulus check of $1000; this would be several thousand dollars for each taxpayer. The estimated tax revenues for 2008 are $1.2 trillion. Contrast that with the promised bailouts of $7.7 trillion, which plan would make more sense?

The Congressman’s second proposal is a bit more realistic. He proposes that we take the $350 billion already allocated for the financial bailout but not yet used, and give everyone a tax holiday for January and February 2009. This would not just be income tax, but also FICA. No one would pay federal income tax or FICA for January and February. Take a gander at your pay stub and calculate how much the government takes from your paycheck for federal income tax and FICA every pay period. How much more money would that inject into your personal budget? It would free up the consumers to pay down debt, make the home renovations they have been delaying, invest, or just take the family vacation that was postponed due to the economy. Surprisingly, the cost for this proposal is below the $350 billion left from the original $700 billion bailout. American Solutions, a conservative think tank, has calculated the numbers and reports that each month the federal government collects $101.6 billion in income taxes, and $65.6 billion in FICA. The 2 month total for Gohmert’s plan is $334.4 billion, a little more than $15 billion less than the Treasury Secretary’s $350 billion.

Representative Gohmert’s proposal of a tax holiday is currently building support in the House, but you can sign the petition to show support for the tax holiday here. Although I wholeheartedly support the tax holiday, I see a few reasons why this will never come to pass. First off, the congressional leadership is too eager to continue the private sector takeover to ever allow them to take control again. Secondly, there would be a tax revolt akin to the Boston Tea Party if the American public ever realized how much money the government took from them each pay period. It is one thing to see empty number on your pay stub, but to hold that money in your hand and then have the government take it away from you is quite another story. Whether or not the tax holiday ever comes to fruition, at least we have one congressman that is willing to think outside the box when it comes to the financial crisis.

Conservatives Need To Get Back To Reagan Basics

Over the past week, there has been a constant parade of political “experts” through the news networks to propose their recommendations to the Republican Party to renew the party. The suggestions have all had a familiar ring to them. The “intellectual” opinion is that the Republicans need to jettison their conservative values and ideals. They believe that conservatism is the reason behind McCain’s defeat and the Democratic takeover of Congress in 2006. They completely disregard any of the other competing forces weighing on the minds of the voters in the past 2 elections.

It will come as no surprise, but I do not agree with the self-proclaimed experts. I believe that the major problem within the Republican Party is not that they are too conservative, but rather that they have neglected their responsibility in educating the voters on what they believe. Of course, then they have to actually govern as conservatives.

It is not enough to say that as a political party we believe in smaller government. The average voter does not care what that we are for a smaller government unless we explain what a smaller government means and why we believe it is the right choice. Some of my Christian friends have asked how I could be a conservative and a Christian at the same time. They believe that my conservative position on the role of government is in contradiction to Biblical teaching to take care of the poor. I believe that as a Christian we should take care of the poor and downtrodden, but I do not believe that it is the government’s responsibility. I believe that the community at large is better at dealing with those in their own communities. Local churches give more food and aid to the homeless and the poor in their communities than the government could ever dream of helping. The sheer size of the bureaucracy of government makes it inefficient in helping the poor. Jesus did teach that we should help the poor, but I have never read in my Bible that as long as we pay our taxes than our responsibility to the poor is done.

We cannot simply say that we are pro-life and expect that the voters will simply accept it and be with us. The age-old axiom, “you are preaching to the choir” holds a lot of truth in this case. Claiming to be the Pro-life party will bring pro-life voters to you, but it does nothing to educate those who may not have a strong position either way. We need to explain why we are pro-life. We need to explain that the procedure known as partial-birth abortion is a horrific and completely unnecessary procedure. I do not know of any medical condition that would require a pre-term baby to be vaginally delivered to the point of leaving the baby partially in the birth canal, and then piercing the live baby’s skull to suck the infant’s brain out to kill the baby. If an expecting mother is in such a bad physical state that she will not survive a normal delivery, how is she protected by inducing labor only to partially deliver the baby as normal before killing it? We need to explain why we are against government funding for abortion and the readily available abortion on demand for any reason. We do not believe inconvenience is a feasible reason for ending a human life.

Campaigning on lower taxes is great, but it needs to be taken to the next level. We need to explain why we believe lower taxes for everyone is the best option for our economy and for our government. We need to educate the American public about taxes. We need to change the debate from a class envy debate to a debate over taxes themselves. Obama was elected claiming that 95% of Americans would receive a tax cut, but the problem is that roughly 40% of Americans do not pay federal income taxes. We need to educate the public about who actually pays taxes and how much they do pay. The top 1% of income earners pays roughly 40% of taxes. We need stop sitting back and letting the Democrats spin a tax cut for all tax payers into an unfair tax cut for the rich. We need to educate the public why an across the board 2% rate cute for someone making $1 million is still a 2% rate cut. It is the same 2% cut that someone making $40,000.

The Republican Party does not need to move away from conservative values and ideals. We need to take a page out of the Reagan notebook and do what Reagan did. Ronald Reagan was known as the “Great Communicator” because of his ability to explain his conservative policies to the American public. We need to get back to taking our case directly to the people. This election has shown the media’s affinity for liberal ideals and candidates. We need to sidestep the mainstream media and take our message to the public.

Socialism Is Not Called Fairness

Millions of dollars have been spent over the course of this presidential campaign season to persuade the voting public that one candidate is better prepared than the other to lead our nation. The campaign promises have ranged from cutting taxes, to raising taxes only on the rich, and to nearly 1 trillion dollars in new spending. Through it all, the mainstream media has exposed themselves as nothing less than political partisan hacks. From Keith Olbermann and Chris Matthews fawning all over the Obama campaign, to the Los Angeles Times reporting that they have a video of Obama toasting the spokesperson for Yassir Arafat in 2003, but not releasing the video. Since the media appears to be intent on carrying Obama into the White House, I thought that I would do their job for them.

On abortion, Senator Barack Obama has an extreme record of voting against the sanctity of life. NARAL, the National Association for the Repeal of Abortion Laws, has awarded Senator Obama a 100% rating based on his voting record while in the U.S. Senate. Obama is on record as saying that his first priority as President will be to make the Freedom Of Choice Act a law. This bill would go a long way in repealing the abortion laws in virtually every state. Obama also voted twice against a bill before the Illinois state senate that would have required that a baby that was born alive after a botched abortion receive medical attention. The existing law allowed these babies to be left to die in the soiled laundry room. In some cases, these babies lived for several hours, fighting for every breath before finally dying alone in the dark. Obama has tried to deflect the criticism of his extremist abortion record, but his voting record is clearly on the side of killing innocent babies.

On taxes, Obama has campaigned around the country on his promise to raise taxes on anyone making more than $250,000. Then over the weekend he made a comment at a rally that anyone making more than $200,000 would see a tax increase. Now this week, both he and Biden have made references to no one making less than $150,000 would see a tax increase. At this rate, by Election Day the figure will be down to $50,000. He has said that he will let the Bush tax cuts expire in 2010. If the tax rates go back to what they were in 2001, then all taxpayers will see a tax increase. Obama has also said that he will raise the capital gains taxes, even though history has shown that raising capital gains taxes causes the revenues received by the Treasury drop. In this economy, why would anyone want to stifle economic growth?

As we found out this week, Obama has a long held belief that the government should spread the wealth around. A few weeks ago, Joe the Plumber became a household name by asking a simple question of Obama. He asked if Obama’s tax plan would increase his taxes if his plumbing business made more than $250,000. Obama’s reply was that he believed that if we “spread the wealth around”, we will al be better off. The Obama campaign’s reply was not to refute his socialist ideals, but to attack Joe the Plumber. Obama has said that McCain calls his proposal socialism, but he calls it fairness. I believe Karl Marx thought it was fair as well and we saw how that turned out. If Obama is elected, I fully expect to see him come on TV in February, channel Bill Clinton and bite his lower lip, and tell us that he really tried to cut taxes, but could not find any way to do it.

Obama has tried to tie McCain to Bush throughout the campaign, but he fails to recognize that he is inextricably tied to Harry Reid and Nancy Pelosi. Reid and Pelosi are presiding over a Congress with the lowest approval rating in at least a century. At times their numbers have dipped into single digits. Their leadership has led a do-nothing Congress into an economic crisis where their party has stood in the way of reforming the 2 major contributing corporations. Obama and his party leadership are on record stating that if they are given the requisite majority, they will bring back the “Fairness Doctrine”. The doctrine simply states that any broadcast must present both sides of every issue. This is a clear and direct attack against conservative talk radio. The left has tried to venture into talk radio with Air America, but that quickly failed. The left has decided that if they cannot compete in the arena of ideas, then they will simply silence their opposition. If they are successful in implementing the “Fairness Doctrine” once again, Rush Limbaugh and Sean Hannity will not disappear from the airwaves, they will simply move into satellite radio where the FCC has no control. That is until the left decides to take over that medium to silence their opposition once again. For all of his rhetoric about change, Obama has voted 96% of the time with his party.

November 4, 2008 will be a historic election day no matter who wins. It is my sincere hope that the American people are intelligent enough to see the difference between empty campaign rhetoric citing change, and proposals that will bring socialism to our doorsteps. Although the media has declared this race over and Obama has already held his first “Presidential address” to the nation, the election is not over until we go vote on Tuesday.

Taxes, Lies, and Distortions

As we head in to the final weeks of the campaign, the candidate’s plans for taxation are becoming clear. Both candidates claim that their tax plan will help the middle class, but which one is best for the country as a whole? Which tax plan will help all Americans achieve the American dream? Which proposal will allow small and large businesses to grow, while helping the employees to keep more of their own money? Which plan will encourage capital investments so that companies can grow? Which candidate truly understands that taking money from one person to redistribute to another is nothing more than socialism? Senator Barack Obama this week proved that he is all in favor of bringing socialism into the forefront of our American economy.

This week while campaigning in Toledo, OH, Obama was asked about his tax proposal of increasing taxes on any business making more than $250,000. A plumber from Toledo informed the candidate that he was in the process of buying a plumbing business that would bring in more than $250,000 a year. He also informed Mr. Obama that he would have to work 10 to 12 hours a day to make his business successful. Obama’s response was very enlightening. He said that his purpose was not to punish the man, but to ensure everyone else behind him had a chance at success. He went on to say that he believed that when you redistribute the wealth around to everyone, then we are all much better off. Please tell me, why does Obama believe that he has the right to tell anyone how much that they may earn?

The Obama campaign claims that the $250,000 mark for business would not affect a vast majority of small businesses. Unfortunately the Small Business Administration standards are a bit different than Obama. As an example, the owner of a Tire Fabric Mill can have up to 1000 employees and still be considered a small business. I am not a mathematician, but in order to stay below the $250,000 mark set by Obama and the owners of the mill would have to pay a paltry $250 per employee. Let us not forget that there is equipment and materials to buy out of that $250,000, plus they need to pay for the utilities. I can hear the whining already, how many Tire Fabric Mills are there in the U.S. So to quiet the incessant whining, let’s look at the numbers for a roofing contractor. According to the same standards from the SBA, a roofing contractor can make up to $14 million and still be considered a small business. How can a company make that much and still be considered “small”? Again, $14 million is not all profit that is the amount of their annual receipts. They still have make payroll, pay liability insurance, buy materials, buy tools, pay for any advertising, pay for company vehicles and their maintenance, and lastly pay the local, state, and federal governments.

Obama is fond of saying that under his plan, 95% of Americans will get a tax cut. Unfortunately only 70% of wage earners actually pay federal income tax. We all pay social security and Medicare taxes, but there are about 30% of the low income wage earners that pay virtually zero federal income tax. He plans on sending them a rebate check for taxes that they never paid. He also plans on raising the Capital Gains tax. Even though history has shown that every time the Capital Gains rate has been cut the revenue into the government coffers has increased. In the 1990’s, when the Clinton Administration raised the rate, tax revenue dropped. Obama is betting that the vast majority of the voting public will blindly accept his proposals without doing any real thinking on the matter. Basically, he believes the voters are either stupid or lazy. Sadly, there are plenty of people willing to display the ignorance on this matter.

Alternative Minimum Tax Hike?

Shortly after the mid term elections last year the newly elected Democratic leadership promised the American taxpayers to “fix” the Alternative Minimum Tax. The AMT is a little known tax that was created almost 40 years ago to force 150 or so wealthy families to pay taxes. These families had not broken any law by not paying taxes, they simply used the tax code to avoid paying any income taxes. The AMT has grown over the 3 plus decades that it has been in existence to include over 3.8 million taxpayers in 2006. The major flaw with the AMT is that it does not take into account inflation or any tax cuts that have been implemented over the years.

I know what many are thinking right now. “This tax does not affect me. I am not in the top 1% or even the top 10% of wage earners.” The sad news is that within the next 3 years at least 26 million more taxpayers will be paying the AMT. The AMT does not take the place of your existing tax rate, it is an additional tax on top of your income tax. Estimates from the Congressional Budget Office, show that nearly every family with a total income of $100,000 will be paying $2000 more in taxes next year. Worse yet, many families with incomes between $75,000 and $100,000 will see a $1000 increase in taxes.

Some Senate Democrats have proposed a plan that would eliminate the AMT but raise taxes on those with more than $500,000 in income. Many politicians up for reelection next year are afraid to back such a plan, because of being seen as proponents of tax increases. Another plan is to simply postpone the effect of the AMT for 2 years, conveniently after the next election, and then work on tax increases to offset any loss of tax revenue from the AMT. Why does the government always expect the taxpayers to do with less money, but never even consider that they should do with less money?

Let’s not forget that the Republicans were in control of Congress for 12 years and failed to do anything about the AMT. They also failed to act on making Bush’s tax cuts, which by the way have caused an increase in tax revenues over the past 6 years. Whatever happened to Republicans being the party of tax cuts and fiscal responsibility? I am not saying the Democrats have been any better about spending since they have been in power. The political promises of last election season that earmark spending would be transparent, has yet to be accomplished. Both political parties have been severely lacking when it comes to tightening the purse strings in Washington. Isn’t any wonder why congressional approval ratings are at historic lows?

Two Petitions to Prevent Tax Increases -- Will the Ron Paul Supporters digg this one?

Regardless of which candidate you are rooting for, you should get on board for this one.

While scanning the ever expanding internet, I ran across two different petitions demanding the Democratic controlled Congress refrain from raising taxes. These are focused on extending the Bush tax cuts that helped our country get out of the Recession of 2000 and have helped spur millions of new jobs and new businesses since 2003. The other is to urge congress to refrain from adding new excise taxes.

Go to Americans for Tax Reform for the petition to extend tax cuts.

And to Citizens Against Government Waste for the petition against excise taxes.