budget

CA Prop 30 - Using Students as Bait

Liberals are masters at messaging and manipulating the legislative process - and a great example of this is the campaign for Prop 30 in California - a “temporary” 1/4 cent increase in the state sales tax and 1% increase in personal income tax for those earning over $250,000/yr - those who can “most afford it,” a direct quote from the proposition.

First, we have the title: “The Schools and Local Public Safety Act of 2012.”  Instead of “Personal and Sales Tax Increase Act of 2012.”

Then the graphics and ads:

yes on prop 30

The hokey music, the wholesome looking school teachers, the all-American apple graphic - it’s all so feel-good! How can you possibly want to DENY these children the teachers that have been laid off over the past few years, the arts and music education?  If you do, you must be a vile human being.

What they’re not telling you:

Legislators have had ample opportunity to cut true wasteful spending, yet they cut things that would gain attention and empathy from the voters: schools and public safety. That way when they come, hat in hand, to ask for a sales tax increase, the understanding electorate will say, “But of course!”

Guess what? It’s still NEW funding.  Adding to what is there before.  If they cut Assembly member benefits or office staff or stopped spending so much on welfare or attempting to build bullet trains, no one would care. But they purposely axed teachers so they would have this excuse to prey on the emotions of low information voters and get what they really want - more money to fund their progressive agenda.

On libertarians, Mitt Romney, and the future of fusionism

Mitt Romney

Over the last few days, I’ve been reading some interesting conversations on Twitter and elsewhere about the role that libertarians will play in the presidential election. There has been a lot of talk about Gary Johnson, the Libertarian Party’s nominee, spoiling the election for Mitt Romney. That has obviously caused some concern by and friction from conservatives, who are saying that a “vote for Johnson is a vote for Obama.”

Before I jump into some points, I’d like to remind my conservative friends that this is not one national race for president, but rather 51 separate races, including the District of Columbia. By my count, Romney has a long road to haul in many battleground states, including Colorado, Ohio, and Virginia. Right now, President Barack Obama holds a substantial advantage in the Electoral College, which is what ultimately matters on election day.

There is a disconnect between conservatives and libertarians. Our conservative friends tend to believe in the concept of “ordered liberty,” a principle perhaps best explained by Russell Kirk. To most libertarians, the concept of ordered liberty is really “soft statism.” As you might imagine, this view doesn’t really have much of an appeal to libertarians.

When it comes down to it, libertarians don’t fit anywhere on the political scale. While many will dumb down our beliefs as “socially liberal” and “fiscally conservative,” there is really much more to the equation. We believe in the sovereignty of the individual. Our view of morality can be best defined by what John Stuart Mill called the “harm principle.”

Barack Obama: Don’t worry about the national debt

Barack Obama with David Letterman

Back during the 2008 campaign, then-candidate Barack Obama told Americans on more than one occasion that they would see a net-spending cut during his first-term in office. But nearly four years, that promise hasn’t come to fruition. In fact, the national debt has grown by more than $5 trillion as spending was increased, as is taught in the Keynesian school, to “prime the pump” of the economy. Obama once said such out of control spending was “unpatriotic.” My, how things have changed.

During an interview on The Late Show on Tuesday night, President Obama told David Letterman that the national debt really isn’t a big deal:

President Obama said that the U.S. does not have to “worry” about its $16 trillion debt in the “short term.” He also could not “remember” what the nation’s total debt figures were when he entered office.

“I don’t know remember what the number was precisely,” Obama told talk show host David Letterman during an interview.

Letterman asked him if Americans should be “scared” of the trillions of dollars it owes to other countries.

“A lot of it we owe to ourselves. Because if you invest in a treasury bill or something like that then essentially you’re loaning the government money. In fact, the majority of it is held by folks who live here, but we don’t have to worry about it short term,” Obama responded.

Mike Lee on Tax Increases

Mike Lee

Utah Senator Mike Lee has been speaking out against proposed tax increases. He makes some great points in this article on the Daily Caller last week.

Lee points out first that it’s a partisan issue. It seems like everything these days in Washington is strictly partisan. The bickering between parties gets old (especially when both parties are saying the same thing), but I don’t think this is typical Republican finger pointing. Lee is one of a select few senators who isn’t utterly useless; he is the type of senator who would call out his Republican colleagues if this weren’t specifically an issue of Democrats being ridiculous.

Despite his would-be willingness for exposing hypocrisy within his party, Lee does make a few points the Republicans would like you to remember as we head toward November.

For example, the pushing of tax increases to push class warfare, or, in Lee’s words, “dividing Americans by income and pitting them against one another.” Lee even goes as far to say that these calls for higher taxes are out of desperation because “the electorate realizes Democrats are out of ideas.”

He also says that the responsibility for fixing budget woes lies with the Congress, not with the American people, and that the proposed tax increases will stifle job growth. He’s right on all accounts, but this is all buzzword stuff that every Republican  regurgitating through November.

Lee is one of the strongest members of the Senate on fiscal issues, and though he included the big buzzwords, he was exactly right when he said, “The proposal does not solve the problem of out-of-control deficits and debt.”

Debt and deficits. There’s the real problem.

Who are the spending cutters?

We’ve recently noted that House Republicans have largely been a disappointment when it comes to cutting spending. Since taking control of the chamber in January 2011, the national debt has increased by over $1.59 trillion and reasonable amendments to bills that would cut spending have been shot down with many Republicans opting not to keep the promise they made to voters in the fall campaign. There is also talk of bringing back earmarks, an untransparent process that is often corrupt.

So why are the spending cutters in the House? The Club for Growth has tracked the 25 votes on amendments that would cut spending and found the consistent budget hawks in the lower chamber (I’m only posting those that score 100%, for sake of space):

House Republicans should get behind the OPTION Act

As you can imagine, there has been a lot of discussion about Rep. Paul Ryan’s budget proposal for the upcoming fiscal year. And while the budget would, if passed, repeal ObamaCare, it doesn’t replace it. This, along with other aspects of the proposal, has been a sticking point for many conservatives.

On Tuesday, Rep. Ryan said that he didn’t include a replacement for ObamaCare, for which costs have doubled, in his budget because there is no consensus amongst House Republicans as to what their model for health care reform should be.

Given all of the problems with ObamaCare, many of which were laid out in an op-ed at the Wall Street Journal by Sen. Ron Johnson (R-WI), proposing such a comprehensive budget proposal without at least some foundation of replacement proposals is odd. It’s even more odd when the budget was unveiled during the second anniversary of the health care reform law and the week before it’s due to come before the Supreme Court.

However, Rep. Paul Broun, MD (R-GA) has introduced the OPTION Act (H.R. 4224), a patient-centered health care reform replacement. According to Broun’s office, the OPTION Act would repeal and replace ObamaCare with a reform package that would protect the interests of patients:

Obama rolls out another budget the Senate won’t pass

As expected, President Barack Obama rolled out his budget proposal for FY 2013, which, as we noted yesterday, comes with a $1.33 trillion budget deficit. As you can imagine, there is a lot to parse through it the proposal, which has been all but declared dead-on-arrival in Congress.

Some of the budget proposals are familiar. President Obama is once again pushing tax hikes on individuals earning more than $250,000 — more than the millionaires and billionaires he so frequently targets. James Pethokoukis has a run down of the tax hikes in the budget:

Obama’s new budget isn’t about economic growth or cutting debt or creating a “built to last” economy. The Obama campaign is built around the idea of reducing inequality. So in his budget, Obama takes the populist whip to the wealthy and to business:

1. The top income rate would be raised to 39.6 percent vs. 35 percent today.

2. Under the “Buffett rule,” no household making over $1 million annually would pay less than 30 percent of their income in taxes.

3. Between now the end of a second Obama term, Obama proposes $707 billion in “net deficit reduction proposals.” Of that amount, only 16 percent is spending cuts.

4. The majority of small business profits would be taxed at 39.6 percent vs. 35 percent today.

5. The capital gains rate would rise to 25.0 percent (including the Obamacare surtax and deduction phase out) from 15 percent today.

6. The double-tax on corporate profits (including dividends) would increase to 64 percent based on the statutory corporate tax rate (58 percent using the effective tax rate), easily the highest among advanced economies.

The death of Baseline Budgeting?

I didn’t put it in my “14 Fixes for our Messed up Country” list, since I thought it was long enough, but one of the things I really think needs to be reformed is the utterly insane institution of “baseline budgeting,” aka “Washington accounting,” aka “DC moonbattery.”

Apparently, though, according to CNS News (no, that’s not a typo) baseline budgeting might be on the ropes:

The House approved a potentially sweeping budget reform Friday that would force federal agencies to justify an annual increase, as opposed to getting an automatic increase under current budget law.

“What we are about to do could be the most responsible financial thing this Congress has done, this House has done in the whole last year,” Rep. Louie Gohmert (R-Texas) said before the vote. “It could be $1.4 trillion in cuts over the next 10 years and all we’re doing is just stopping the automatic increase.”

The Baseline Reform Act of 2012 passed the House by a near party-line vote of 235-177. However, the bill will likely have a difficult time passing the Democrat-controlled Senate.

Under current federal budget law, the amount of money a federal agency will automatically get for the next year is based on the current year’s amount, plus inflation, which is the “baseline” for the next budget year.

Read that last paragraph again, and then ask yourself: where, outside of the federal government, does that sort of accounting work? Do you ever give yourself a budget equal to last year plus inflation automatically? I don’t even think Warren Buffet, as wealthy as he is, does that, nor Mitt Romney. Probably not even Trump, but who really knows what the Donald does.

CBO: Deficit to exceed $1 trillion in 2012

On the campaign trail and during the third presidential debate with Sen. John McCain (R-AZ) in 2008, then-candidate Barack Obama promised that Americans would see a “net-spending cut” during his presidency.

The claim was met with a boatload of skepticism given that Obama was proposing massive expansions in healthcare and non-defense discretionary spending; however, we all crossed our fingers that he would follow through, but we didn’t hold our breath.

The skepticism proved to be justified. Just a couple of months after coming into office, President Barack Obama told Americans that under his budget that there would be trillion dollar deficits as far as the eye can see.

He wasn’t kidding. The Congressional Budget Office released its budget report for this current fiscal year yesterday, predicting yet another trillion dollar budget deficit and unemployment hovering around 9%:

The Congressional Budget Office on Tuesday predicted the deficit will rise to $1.08 trillion in 2012.

The office also projected the jobless rate would rise to 8.9 percent by the end of 2012, and to 9.2 percent in 2013.

These are much dimmer forecasts than in CBO’s last report in August, when the office projected a $973 billion deficit. The report reflects weaker corporate tax revenue and the extension for two months of the payroll tax holiday.
[…]
If the CBO estimate is correct, it would mean that the United States recorded a deficit of more than $1 trillion for every year of Obama’s first term.

Tea Party Debt Commission booted from Senate hearing room

Our friends at FreedomWorks had hoped yesterday to release the findings of the Tea Party Debt Commission at the Russell Senate Office Building in Washington. Despite being sponsored by Sen. Mike Lee (R-UT), Senate Democrats shut down the event, forcing them move to nearby Hillsdale College.

Congress has not passed a budget — one of its most basic functions — in 933 days, including two years of overwhelming Democratic Party majorities in both chambers while also controlling the presidency. FreedomWorks President Matt Kibbe and Sen. Lee were understandably frustrated by the actions of Senate Democrats, but were undeterred (as you can see in the video above).

In a statement from FreedomWorks, Kibbe said:

“The Senate hasn’t been able to pass a budget resolution three years running. They have been unable to do their job, and now the Rules Committee is trying to prevent the American people from doing it for them,” said Matt Kibbe, president of FreedomWorks


The views and opinions expressed by individual authors are not necessarily those of other authors, advertisers, developers or editors at United Liberty.