Taxpayers

In the 50-Year War on Poverty, Bureaucrats Have Won While Both Taxpayers and Poor People Have Lost

We know the welfare state is good news for people inside government. Lots of bureaucrats are required, after all, to oversee a plethora of redistribution programs.

Walter Williams refers to these paper pushers as poverty pimps, and there’s even a ranking showing which states have the greatest number of these folks who profit by creating dependency.

But does anybody else benefit from welfare programs?

Robert Rector of the Heritage Foundation explains in the Washington Times that the War on Poverty certainly hasn’t been a success for taxpayers or poor people. Instead, it’s created a costly web of dependency.

This year marks the 50th anniversary of President Lyndon Johnson’s launch of the War on Poverty. …Since then, the taxpayers have spent $22 trillion on Johnson’s war. Adjusted for inflation, that’s three times the cost of all military wars since the American Revolution. Last year, government spent $943 billion providing cash, food, housing and medical care to poor and low-income Americans. …More than 100 million people, or one third of Americans, received some type of welfare aid, at an average cost of $9,000 per recipient.

Here are some of the unpleasant details.

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.

A Single-Payer Health Care System Would Put Us in More Debt

spending

When Sen. Bernie Sanders (D-VT) suggested that a single-payer system is the “cure for America’s ailing health care,” he suggested that ObamaCare was a small step in comparison to the reform he envisions. And what would this reform be, you ask.

The subsidized program that places the health care monopoly in the hands of the government.

Thomas Sowell pointed out that the reason why the single-payer system still sounds appealing to some is that people are being fooled into thinking that they are getting something for nothing. Health care at no cost for every single American, subsidized by taxpayer dollars is their goal, and the ObamaCare failure might be just the type of blessing that Congress is looking for.

But before we continue, have you ever asked yourself whether single-payer system supporters understand or even realize that subsidized health care is not free?

According to a report released by the National Taxpayers Union Foundation, during 113th Congress’ first six months, some lawmakers have been much more interested in pushing for the singe-payer health care system than introducing budget cuts. All legislation introduced during the first six months in both the House and the Senate would increase spending by $1.74 trillion. Cuts introduced by Congress would only amount to $453 billion.

House Republican proposes spending bill that would delay ObamaCare

Editor’s note: This post has been updated to reflect the Club for Growth and FreedomWorks’ endorsements of Graves’ plan.

Amid growing concerns that House Republicans will be unable to find the votes to pass a Continuing Resolution to before the end of the month, Rep. Tom Graves (R-GA) has proposed a measure that would keep the government open while also delaying implementation of ObamaCare until 2015.

House Republicans leaders tried some legislative trickery by proposing a Continuing Resolution that wouldn’t defund ObamaCare. Division in the party’s ranks caused the leaders to delay a vote on the measure and threaten the cancelation of the September recess.

“After weeks of working with and listening to members on how to approach the government funding deadline, it’s clear that House Republicans are united around two goals: keeping the government open and protecting our constituents from the harmful effects of Obamacare,” said Graves, a member of the House Appropriations Committee. “Today, my 42 cosponsors and I are putting forward a plan that achieves both goals.”

Graves says the plan is “straightforward.” The measure funds the government a post-sequester levels, with the exception of defense and national security, while keeping true to House Republicans’ desire to delay and defund ObamaCare.

Expect the Farm Bill to cost a lot more than advertised

With pressure in the Senate to pass the Farm Bill this week (they approved cloture this morning) and showmanship killing any consideration of further amendments, things aren’t looking good for reformers. This leaves taxpayers on the hook for an expanded crop insurance program with incredibly few taxpayer protections built in.

The Senate lauds this as progress, claiming $24 billion in savings over ten years. But a simple breakdown makes it clear that these supposed savings will never be realized. Luckily, the American Enterprise Institute has a great infographic presenting the numbers as they are likely to look over the next ten years. Instead of finding $24.4 billion in savings, the AEI graphic shows $31.2 billion of increased spending, which they rightly term a “bait-and-switch” for the taxpayer.

So where do these costs come from? The answer is the Agriculture Risk Coverage provision, a proposed “shallow loss” program that would make up the difference for revenue not covered by crop insurance. The program works with crop insurance to guarantee revenues, basically ensuring farmers 89 percent of their average revenue over the last five years. So if prices fall or your yield decreases, ARC will smooth over the difference.

Bob McDonnell’s Tax Hike Ends 2016 Bid Before It Starts

Bob McDonnell

Back in 2010, Virginia Gov. Bob McDonnell was thought to be the next big conservative star. After Barack Obama carried 6-point in there in 2008, many believed the Commonwealth was slipping away from Republicans. McDonnell, however, was able to restore hope for the GOP in 2009 when he defeated Creigh Deeds in the gubernatorial election.

McDonnell immediately became a key Republican spokesman. He gave the GOP’s response to the State of the Union address in 2010 and signed legislation — the Virginia Healthcare Freedom Act — that sought to nullify ObamaCare. Despite taking on President Obama in a purple state, McDonnell managed to maintain a 62% approval rating deep into 2011 and was one of the names most frequently mentioned to run alongside Mitt Romney in the 2012 election cycle.

There has been dissatisfaction with McDonnell from conservatives for some time, though much of this is related to how he has handled social issues. But McDonnell lit a flame under fiscal conservatives last month when he proposed an overhaul to Virginia’s transportation tax.

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.

FreedomWorks launches robust Congressional Scorecard and Key Votes

FreedomWorks Vote Track/Scorecard

FreedomWorks has done it again. One of the most well known, hardest working grassroots organizations in Washington has come up with some great tools in the last couple of years. Freedom Connector, a social networking site launched last year by FreedomWorks, provides users with an easy way to meet like-minded activists in their area and plan events.

The organization has also put together FreePAC, events that bring activists together to hear speakers and gain training to take back home to put to use during an election year or on ballot initiatives. The first FreePAC, held in July, was a resounding success, the second event, which will take place this weekend in Cincinnati, Ohio is also sure to impress.

But FreedomWorks has come up with yet another useful tool, a vote tracker, for activists and concerned voters who are interested in tracking votes in Congress on economic issues, perhaps the most important matter facing the United States.The vote tracker also includes a scorecard so voters can see if their representatives and senators in Washington have the best interests of taxpayers at heart.

Why We Shouldn’t Focus Primarily on the National Debt

National Debt Clock

Earlier this week, as the Democratic National Convention was getting underway, the U.S. national debt hit $16 trillion. Politicians – particularly the Republicans – went crazy online posting on social networks about how we should resist the Democrats and their desire to run the debt up even higher.

As if Republicans in Washington are much different.

The irony, of course, is that so many of the Republicans screaming about the debt are big contributors to (and causes of) it. But while we should definitely be concerned about debt, focusing primarily on it as our problem opens the door for raising taxes. Our national debt isn’t our primary problem; it’s just a symptom of a much, much bigger problem: spending.

If we control spending, we control debt. For far too long, spending has been out of control, and the result is an out of control debt.

We have an annual deficit (because of excessive spending), and the fight in Washington is over a fraction of that deficit. Republicans push for huge deficits, but their huge deficits are slightly smaller than what the Democrats want.

Dan Mitchell recently asked the question, “Does the $16 trillion debt really matter?” That’s a great article from Dan, well worth your time for a thorough read. In short, yes, it does. But focusing on the debt as the disease isn’t the answer.

White House analyst warned against Solyndra loan

Solyndra

Don’t look now, but the Solyndra scandal is coming back up in the media. The now-defunct, politically-connected green energy company was given a sweetheart $500+ million loan from the Obama Administration back in 2009. By August 2011, Solyndra had filed for bankruptcy, leaving taxpayers on the hook for millions.

Supporters of heavily subsidized green energy projects downplayed cronyism, which runs rampant in the Obama Administration. But new e-mails show that a White House analyst warned that giving taxpayer money Solyndra would be a big mistake (emphasis mine):

As the Obama administration moved last year to bail out Solyndra, the embattled flagship of the president’s initiative to promote alternative energy, a White House budget analyst calculated that millions of taxpayer dollars might be saved by cutting the government’s losses, shuttering the company immediately and selling its assets, according to a congressional investigation.

Even so, senior officials in the White House’s Office of Management and Budget did not discourage the Energy Department from proceeding with its plan to restructure a federal loan to Solyndra — a move that put private investors ahead of taxpayers for repayment if the company closed, the investigation by Republicans on the House Energy and Commerce Committee found.


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