state of the union

Obama to welcome new Congress by proposing billions in new taxes

Obama's $320 tax hike SOTU

President Obama will propose $320 billion in new tax increases over ten years during his seventh State of the Union address on Tuesday night. After historic Republican victories during the 2014 midterm elections, which gave Republicans the largest majority in the House in decades and a majority in the Senate for the first time since Obama became president, Obama is set to reject those results and charge full steam ahead with his one-sided liberal agenda.

Americans for Tax Reform, an organization which pressures elected officials not to raise taxes, highlights the five major tax hikes Obama will propose tomorrow night:

1. Capital Gains Rate Hike: raises capital gains and dividends tax rate from 23.8% today (20% plus 3.8% Obamacare surtax) to 28% (including the Obamacare surtax).

The capital gains tax has not been that high since President Clinton signed a rate cut in 1997.

It would represent a massive hike in the rate since Obama took office. When he was sworn in, the rate was 15%. He proposes to nearly double it to 28% in the twilight of his administration.

2. Stealth increase in the death tax rate from 40% to nearly 60%.

Under current law, when you inherit an asset your basis in the asset is the higher of the fair market value at the time of death or the decedent’s original basis. Almost always, the fair market value is higher.

Under the Obama proposal, when you inherit an asset your basis will simply be the decedent’s original basis.

Jon Stewart Is In Denial

I’ve always admired Jon Stewart’s willingness to question his own side, and to demand substantive answers from his guests. In his recent interview with House Minority Leader Nancy Pelosi (D-CA), however, he seemed to be arguing with himself. After asking how Democrats can make a stronger case for the competence of government, Stewart lamented “…because on our end, it looks like it’s a bit chaotic.”

From his hilarious ripping of the NSA to pressing Pelosi on why healthcare.gov is such a mess, (to which she replied “I don’t know”) his subtle skepticism about certain government initiatives while believing others to be essential has always puzzled me. It seems obvious that his aversion to concentrated power in the hands of the rich, would be difficult to achieve while entrusting the people they’ve paid to prevent it.

He touched on this Thursday with a question that not only highlighted a lack of awareness on the part of Pelosi but hints at a growing disillusionment among Stewart and many on the left:

“Is it possible that the people within the system don’t have enough distance from it to see…These corporations lobby to get all kinds of arcane things put into the regulations that makes it harder for these small businesses…Can our congress maybe not see the corruption inherent in that?”

Obama wants to restrict guns in Nashville, Beretta wants to make them

President Obama was in Nashville yesterday paying a visit to McGavock High School on the heels of Tuesday’s State of the Union address. It’s no accident he chose this school at this time, reeling as McGavock still is after a recent shooting there.

Given Obama’s focus on gun control in Tuesday’s speech — even going so far as to suggest he will work around Congress if they refuse to pass legislation that restricts 2nd Amendment rights — it’s a very focused move to test the temperature of a community that may be ready for the discussion in a way they haven’t been in the past. Tragedy has a way of doing that:

“It’s a tragedy, a terrible tragedy,” White House Press Secretary Jay Carney told reporters on Air Force One. “The president will obviously speak about matters of education at the event, but I think you can expect he will have something to say about the tragedy at the top of his remarks.”

The shooting that left 15-year-old Kevin Barbee dead happened Tuesday. Another teenager was playing with a pistol when it discharged, striking Barbee in the face.

Then again, given a recent decision to expand into the state by firearm manufacturer Beretta, he may have more of an uphill climb than he suspects. Economic tragedy has a way of doing that:

Obama’s State of the Union proposals would cost $40 billion

Barack Obama

The proposals outlined in President Barack Obama’s 2014 State of the Union address would cost taxpayers at least $40 billion, according to an analysis by the National Taxpayers Union Foundation.

““Even though the President largely reiterated or reframed issues that have long been on his party’s current agenda, the proposals for new federal expenditures he outlined last night would still add up to a hefty price tag,” said Demian Brady, Director of Research at the National Taxpayers Union Foundation. ”Moreover, his push for new mandates, regulation, and tax hikes, particularly on energy, will give taxpayers and business owners plenty to be wary of.”

Of the 29 proposals outlined in the speech by President Obama, only one would reduce spending, according to the analysis, while 12 would increase spending. The costs of 16 proposals couldn’t be quantified.

The most costly proposal outlined by President Obama was the Senate version of immigration reform — the Border Security, Economic Opportunity, and Immigration Modernization Act — which would cost $20.2 billion each year. Extention of federal unemployment benefits was the second-most costly item, at $12.8 billion.

President Obama’s universal pre-K proposal is would cost $3.5 billion each year, making it the third-most costly item in his State of the Union address.

The only proposal that would cut spending is the FHA Solvency Act, a measure that President Obama supports. This bill, which would protect taxpayers from bearing the cost of another housing crisis, would reduce federal outlays by $103 million, according to the National Taxpayers Union Foundation.

Cost of Obama’s State of the Union Address? $83.4 billion

You mad, bro?

President Barack Obama’s State of the Union address was filled with promises and various other costly legislative items at a time when budget deficits are still running high. According to the National Taxpayers Union, President Obama’s agenda would cost taxpayers $83.4 billion per year:

In President Obama’s most expensive and widest ranging State of the Union Address yet, his proposals weighed in at $83.4 billion worth of quantifiable agenda items, according to National Taxpayers Union Foundation’s (NTUF’s) annual line-by-line analysis of the speech. This figure could grow much higher depending on what the President aims to do to avoid the sequester. In either case, if the President intends to follow through on his promise that his speech would not “add a dime to the deficit,” individuals and businesses may be facing another round of tax increases.

“The speech gave the President the opportunity to preview his forthcoming budget,” said NTUF Director of Research Demian Brady. “And although he said his agenda items would not increase the deficit, he spent far more time detailing new spending initiatives than how they would be ‘paid for.’”

If the sequester plan that the White House has put forward were passed, it would raise the cost of the spending proposals to $100.4 billion. The most costly program that President Obama wants enacted is his cap-and-trade plan, which would cost $56.5 billion each year. NTU also notes that more than half of the proposals mentioned by President Obama in the State of the Union address “could not be quantified.”

You can see the costs of each proposal here.

Rand Paul gives a solid, substantive response to the State of the Union

Rand Paul gives the Tea Party response

President Obama’s State of the Union address was nothing new.  The President continued the same leftist rhetoric he used during his inaugural address, calling for even more spending and government.  As Jason wrote, he absurdly claimed that he has CUT spending, attacked the sequestration plan that he himself proposed, and called for an increase in the minimum wage would would prove disastrous to job creation.  In short, it was more of the same - big government, high taxes, and spending money we don’t have.

The official Republican response was fairly lackluster.  Marco Rubio is a gifted speaker, but his speech was big on platitudes and slogans and small on substance. The real response came from Senator Rand Paul.  It’s no secret that Senator Paul is a favorite of mine and of many libertarian-leaning folks, so there was much anticipation that he would offer a clear vision apart from both Obama and Rubio.  For the most part, he did just that.

To begin, Paul went strongly after the President and laid out a clear idea of what he believes America is really all about:

Tonight, the President told the nation he disagrees. President Obama believes government is the solution: More government, more taxes, more debt.

What the President fails to grasp is that the American system that rewards hard work is what made America so prosperous.

What America needs is not Robin Hood but Adam Smith. In the year we won our independence, Adam Smith described what creates the Wealth of Nations.

Another speech from Obama, another huge disappointment

Obama gives State of the Union

Last night during a joint session of Congress, President Barack Obama gave his fifth the State of the Union address where he laid out his agenda for the next year. As was anticipated, the speech carried over the Leftist themes of last month’s inaugural address and was more aggressive in tone.

Despite recent GDP numbers showing that the economy contracted in the last quarter of 2012, President Obama started off the hour long speech by repeat a familiar line, explaining that “[t]ogether, we have cleared away the rubble of crisis, and can say with renewed confidence that the state of our union is stronger.”

After a couple of shots at Congress, President Obama spent a few minutes discussing the sequester, claiming that “both parties have worked together to reduce the deficit by more than $2.5 trillion – mostly through spending cuts, but also by raising tax rates on the wealthiest 1 percent of Americans.” Obama claimed, “we are more than halfway towards the goal of $4 trillion in deficit reduction that economists say we need to stabilize our finances.”

If only that were true. In Cato Institute’s response to the State of the Union address, Michael Tanner explained, “Let’s be absolutely clear — there have been no spending cuts under this President.”

In 2010, the first year that this President was responsible for the budget, the federal government spent $3.4 trillion,” noted Tanner. “Last year, the federal government spent $3.5 trillion, and for the first four of last year, we’re spending at a fast pace than the first four months of last year.”

Obama’s Revisionist State of the Union, Pt. 1

On Tuesday night Barack Obama, America’s class warrior-in-chief, gave a rambling, divisive campaign speech thinly disguised as a State of the Union Address. It was short on facts and truth, but with a heaping helping of blame, obfuscation and denial of any responsibility he bears for the current mess in which the nation finds itself. This was an exercise in unadulterated narcissism, plain and simple, with very little reference to what makes America great. In this meandering diatribe, Obama used the word “I” an astounding forty-five times, “my” eighteen times, “fair share” four times, “millionaires” twice and “shared sacrifice” twice. By contrast, he used the word “freedom” once, “liberty” once, and “personal responsibility” exactly zero times. There were more than two dozen examples of Obama telling us what we should and shouldn’t do. It was all quite nauseating.

As a public service, I will once again break down the SOTU and correct the many errors and omissions contained therein. I can’t cover everything, but I’ll try to hit the high points.

“Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded.”

SOTU: Obama wants to cut deficit while “investing”

If you were looking for a substantive discussion of the problems facing the United States, last night’s State of the Union address was a let down.

President Barack Obama spent 62 minutes speaking in mostly generalities and explaining to us how great government spending is, but also warning the Congress that he will veto bills containing earmarks – special projects that are inserted into legislation that go bypass the normal budget process. President Obama also pledged to take measures to cut spending by enacting a five-year freeze on non-defense discretionary spending. While he may consider this to be some great feat, Obama’s proposal will only save $400 billion during that time. This is a drop in the bucket compared to the $6 trillion in budget deficits projected by the Congressional Budget Office.

Obama noted in his speech that non-defense discretionary spending represents a relatively small portion of the budget – around 12 percent, using his numbers, and added that “we have to stop pretending that cutting this kind of spending alone will be enough.”

State of the Union Live-Blog

Doug Mataconis, Brett Bittner, Mike Hassinger, Tom Knighton and Jason Pye will be live-blogging President Barack Obama’s State of the Union address and the Republican response given by Rep. Paul Ryan (R-WI). We’ll kick things off around 8:30pm (EST).

Our friends at the Cato Institute are also live-blogging this evening.

You can full text of President Obama’s prepared speech here. Excerpts from Rep. Ryan’s speech are available here.

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