Schaumburg Succumbs to a Property Tax

It is with sadness that we all recently learned of The Village of Schaumburg’s decision to levy a property tax to meet the current budgetary shortfall. Schaumburg as not had a property tax since its formation in 1956. My family moved to Schaumburg in the early sixties and this is where I grew up. I still consider Schaumburg my hometown. Skokie is now the only major suburban Chicago community that does not levy a property tax.

 Village leaders say they had to implement this tax in large part because of a significant decline in retail revenues during this great recession. You see Schaumburg is considered the Retail Mecca of the Midwest. Woodfield Mall, one of the largest malls in North America, anchors its beautiful skyline. Rolling out from the mall are numerous shopping centers (that include big box retailers), car dealers, furniture retailers (IKEA comes to mind), and restaurants.
With a projected $17.6 million General Fund deficit, Schaumburg has decided to levy a tax of 8.1% of the 2009 property tax bill. The Village manager and his staff recommended the property tax levy to the full Village board. There are other ways for Schaumburg to get out of its budget quandary, some of which were ruled out because market conditions are not favorable. That is the arrogance of government.

 First, the Village should sell off the Convention Center and Hotel. Some consultant recommended that they build the Convention Center and that it would pay for itself. Baloney. The private sector does a much better job than any governmental entity at running hotel businesses. Government should not be involved in enterprise.

 Second, the Village should sell off the Schaumburg Flyers baseball stadium. Minor league baseball is much more profitable than the majors. Fans enjoy the natural play of the sport and any team ownership worth their salt is able to increase their fan base and profitability. Sell it to the baseball team owners, perhaps on a long-term contract. Ownership of a baseball stadium is not the role of government.

 Third, re-evaluate the village’s master plan and zoning laws around the Woodfield Mall area. The village should allow for high-rise residential development. This can provide a base of retail consumers for that area. The net effect of this would be greater support of the existing businesses and attraction of new business. In turn, tax revenues will increase. While the housing market is not yet fully recovered, in time it will improve. Demographic population changes will fuel the increase in popularity of condominium dwellings.

 Fourth, join the other five Northwest Suburban townships in forming a new county (Lincoln or Reagan) thereby telling Crook County to go stuff it. Cook County and its daddy, Chicago, are the most corrupt units of government in the State of Illinois. Its fair time that the municipal leaders of the Northwest Suburban region wake up and sever all ties to this unit of government. Not only has Crook county levied a large retail tax (part of which was recently rolled back), but its method of assessing commercial property makes these property taxes a huge burden on businesses in the Northwest Suburban region.

 Schaumburg can survive without a village property tax by taking the steps mentioned above. The community has a lot to offer. It has a solid library district, a strong park district, and quality schools, which are a part of elementary school district 54 and high school district 211. These government entities survive just fine with their tax revenue. Schaumburg should be able to do the same.

 A property tax levy will only hasten the departure of businesses in Schaumburg to more tax advantaged areas outside of Crook County. The Village should concentrate on providing basic services and not try to build a real estate fiefdom.

Political Musings

Global Warming…yeah, right.
While the eco-topians hammered out a non-deal in Copenhagen, 18-24 inches of snow fell on Washington, DC. Meanwhile the eco-preacher from Tennessee, Al Gore, continues his pattern of false statistics and scientific measures. To these global alarmists the Global Warming is a religion and Gore is their pastor. I wonder what flavor kool-aid they drink?

Obamao-Care
The U.S. Senate marches on towards passage of the health care legislation. Apparently they have the votes and will pass the Senate version by Christmas Day. This legislation will burden Americans with increased taxes and add greatly to the federal deficit. Republican reform measures were all ignored, including: insurance portability, tort reform, importation of prescription drugs, and expansion of Medical Savings accounts. All of which are true reform. Instead, smarmy Harry Reid, has stuffed the legislation with “earmarks” to buy off legislators. Should the conference committee piece together a final measure that gains passage, the legislation will be re-visited after the 2010 elections.

Double-Dip Recession?
With the incredible tax burden that is festering due to a huge stimulus package that has failed, Obamao-Care, and the prospects of some form of Cap and Crunch (the economy), it is likely that we will see a double-dip recession. The weight of this troika of the iron fist of government will hurt small businesses and independent business people. Because of the new mandates and tax increases the self-employed and underemployed will rise as small businesses get pounded. Watch for the unemployment rate to remain unchanged. Also, watch for the “contingent workforce”, as it is called in Private Equity circles to rise. It is possible that many will be moved from the payrolls into a role of skilled temporary workers as a result of the socialist-democrat legislative agenda.

Does Government do Anything Right?
As the Party of Government (POG’s) increases the level of government workers and their benefits you have to wonder why? Do they do anything right? Consider:
· Amtrak continues to run in the red.
· The U.S. Postal Service will have a $3.8 billion loss this year and is projected to lose $8.0 billion next year.
· Fannie and Freddie are near insolvent and continue to be a dumping ground for political has-beens.
· The government cannot get the flu vaccine distributed in a timely fashion and when it does it is found that numerous batches do not have sufficient strength to ward off the current strain.
· Education. Most of the public schools in this country are terrible and produce those that graduate with an education that cannot compete with the rest of the world. Shameful.
It seems to me that government service attracts mediocrity while private industry attracts the best and the brightest. That is not to say that there are exceptional people working for governmental institutions. It is just that government bureaucracies do not create a culture of excellence. Government needs to be shrunk desperately.

Secular Religionistas
Why is it that all the secular religionists have to weigh in on all matter of public policy? Can’t they just shut up and tend to their flocks? They should concentrate on making their followers better people.

Liberal Union Leadership
These goons continue to speak out and lobby on all types of legislation. Very little of which has anything to do with matters important to their membership. They should negotiate on behalf of their members, NOT try to represent all Americans. The healthcare legislation is a case in point. They are pushing this monstrosity, yet in the Senate bill they are going to get hosed. The bill will heavily tax the “Cadillac” healthcare benefits they negotiated for their membership. No wonder union membership continues to decline. Its leaders are trying to get their 15 minutes of fame in the National political arena instead of negotiating for their membership.
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Towards a Vibrant Independent Sector in Illinois

John F. Kennedy said in his inaugural address, “Ask not what your country can do for you, but what you can do for your country”.


Karl Marx opined in his book, Das Kapital, that capitalism would fail as soon as the people learned to vote themselves money from the treasury.

The reason I juxtapose these two ideas is that we have moved far away from the former and closer to the latter. In essence we have become an entitlement society. Because of this attitude, many Americans have relied on the largess of government to support themselves and the institutions they belong to. It’s time to get many of these snouts out of the treasury trough. And ask people to become more self-reliant.

Illinois should take the lead in developing a vibrant Independent Sector. Less reliance on government to solve our problems will go along way in solving the states current fiscal crisis. Americans are the most generous people on earth. Illinoisans are no exception. Isn’t time we reward that generosity and build a strong Independent Sector? This is vital to creating a transfer of reliance on money in the treasury to an Independent Sector that solves problems locally and in a more efficient manner.

One way to make this change is to initiate a tax deduction for charitable contributions on the Illinois Income Tax Return. Currently, the state form IL-1040 has a “Step 10” in wish you can donate in any amount to a list of causes delineated on the form. You are not allowed to deduct this generosity. Instead you reduce your refund or increase the amount you owe should you choose to make a donation. Why not change this completely and allow Illinois taxpayers a deduction of all charitable contributions by reducing their adjustable gross income by the amount they donate. Cap the amount at an even $5000.00.

A “form Ch” could be created to itemize these charitable donations. Of course the donations would only be allowed to registered charities in the state of Illinois. The state legislature could set up the process by which this is accomplished. The “form Ch” could also be a means for recognized charities to raise funds, similar to the ones listed in “Step 10” do now. The state should charge a fee for such collection and distribution to the charity. A taxpayer would get the full benefit of reducing their taxable gross income through their generosity.

It is vital that Illinois create an environment for a vibrant Independent Sector. A charitable deduction for the Illinois taxpayer would go a long way towards achieving that. During these tough economic times it is important to wean the so-called independent agencies off the government teet and bring them into a truly independent status. The consequence would be to develop less reliance on government largess and more self-sufficiency.

The Seaweed Amendment

Last week when the President delivered his Afghan War speech, I, like many of the cadets in the audience at West Point, began to doze off. I fell into a dreamlike state………



During the late hours of the night the U.S. House of Representatives met to discuss amendments to the healthcare legislation.

 Congressman: “Madam Speaker”

 Speaker: “For what purpose does the gentleman from Kentucky rise?”



Congressman Slimnon Pikkens from Kentucky adjusted his blue tie and headed down to the well to address his colleagues in the House.

 Congressman Pikkens: “Madam Speaker I have an amendment to the Obamao-Care legislation which I have submitted for consideration by this body.”

 Speaker: “You have six minutes, sir.”

 Congressman Pikkens: “Thank you.” “Madam Speaker, Ladies and Gentlemen of the House. I submit to you an amendment to this historic healthcare legislation which I will call the Seaweed Amendment.”

 “Said amendment is a tip of our beret to our friends across the Pacific Ocean, our Japanese allies.” “Under this amendment every man and women 21 years of age and older shall keep their waist size no greater than 35.5 inches in diameter.”

 “Furthermore, an annual measurement will take place on September 15th of every year.” “The significance of this date is the birth date of our only 300 plus pound President, William Howard Taft."
 “The net effect of this amendment will keep health care costs down and provide ample focus for all Americans to watch their girth while maintaining a healthy lifestyle.”

 Speaker: “Thank you, Congressman Pickens.” “Is there debate on the matter before us?”

Speaker: “Hearing none we will move toward a vote.” “On a voice vote the ayes have it.” “The amendment passes.”

I suddenly awoke from my slumber, arose from the chair, and headed to the junk drawer in the kitchen. I pulled out a tailor measure. 'Twas some swag I had received from a men’s clothing store when purchasing a couple of Geoffrey Beene shirts many years ago. I proceeded to measure my waist. Damn, 36 inches. I thought, “I’m going to have to contribute to that “Taft Fund” for the oversized.”

Then through the fogginess in my mind I realized it was only a dream. But could something like this happen as the Socialist Democrat agenda marches on?


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Prison Reform??

From time to time the subject of prison reform comes up on the political radar, here in Illinois. Usually from the left, the angle is to provide more “benefits” for the inmates. The type of reform we do not need is Governor Quinn’s early release of thousands of prisoners. Nor do we need to house Gitmo enemy combatants in the Thomson Correctional Center.

Governor Quinn’s decision to grant early release to thousands of inmates is a slap in the face to law enforcement officials that built cases against these criminals. It is also a middle finger in the face of the jurors and the judges that sentenced them. If you do the crime you should do the time. Not get an early release because of supposed overcrowding.

The sale of the Level 1 (maximum security) Thomson Correctional Center to the feds should be allowed to go through. The state has not been able to fund this facility nor can it. Illinois needs the dough. Sell it to the feds, but they can keep the terrorists. To see Little Dicky Durbin standing side by side with Governor Quinn, poo pooing the Illinois Congressional delegations concern over moving the terrorists from Gitmo to Northern Illinois was a sight to behold. Little Dicky, who has called our troops unmentionable names wants to give quarter to individuals who would surely shoot our troops, given the chance. This guy is a blowhard, “joke” of a US Senator.

If there is such overcrowding in Illinois prisons, build more prisons. Yes, I know, Illinois doesn’t have the money. Find the money. De-fund all the unnecessary programs that exist and the discretionary funds provided to various state agencies. The state needs to prioritize its spending. It is far better to keep criminals off the street and families safe, then it is to fund some special artsy fartsy project.

Here are a few ideas for restructuring our states prison system.
(1) Build a level 4 (medium security) correctional center in the City of Chicago to relieve some of the overcrowding. There are plenty of areas in the city in which to build as more and more manufacturing companies bail out of the city. One site that comes to mind is the 17-acre site that RTC, a plastics corporation, will be vacating soon. It is located in the South Lawndale neighborhood.
(2) Begin to separate the prisoners by assigning them to prisons that house criminals with like offenses (i.e.: Murders Row; Robbers, Burglars, and Thieves; Gangland; etc.)
(3) Those convicted of minor drug offenses should be given a choice by the Judge of going to a “boot camp” type rehab facility or one of the Level 7 (low minimum security) work camp or correctional center.
(4) A separate facility might house those convicted of unlawful discharge of a firearm with intent to harm. Such a criminal act should get an automatic 25-year sentence.

Prison reform involves a lot more than letting prisoners loose before they serve their full amount of time or selling a prison to the feds. It will involve hard work and innovative solutions to get the job done. Hopefully the next Governor of Illinois can roll up his sleeves and get the job done. Making the state of Illinois safer for all law-abiding citizens should be a top priority.

Communication Breakdown. It Won't be the Same!

If last Tuesday’s (11/3) elections are any indication, both the Democrats and the Republicans have much to do bring back their luster. Both parties have begun to fracture. The elephants have gotten loose in the Republican tent, have run around knocking into the center pole and the tent has collapsed. Democrats have begun to spar with one another over ObamaCare, Cap and Trade (aka, Cap and Crunch the economy), and Bank and Finance legislation. All of this dissension has led to a growing independent voter movement.

The Republican Party has lost its luster as it departed from the Reagan Revolution into a borrow and spend political model. A kind of Jude Wanniski “Santa Claus Theory” on steroids. Promise them the moon and figure out how to pay for it later. Thus, the move away from the party to a declared independent status.

Democrats, on the other hand, have become the party of government (the direct opposite of the GOP, hence the POG). Over the decades since Jimmy “The Cracker” Carter, people have left the party in droves. Again, more often than not, they have moved to an entirely independent position.

This independent position is where political battles will be fought and won in the new decade soon to begin. Moreover such fracture in the two party system will lead to more third party movements and their eventual success. Much of this success will occur on the Congressional level as many voters identify with neither political party brand. Will either party go the way of the Whigs? It’s possible. The Whig party was destroyed over the issue of slavery. Founded in 1833 by Henry Clay and John Quincy Adams they felt that congress should hold more power over the executive branch. They were also very protectionist, which could have also led to their demise.

The current fracture or communication breakdown may lead to the four political parties in every congressional district as the next decade draws near. After re-apportionment the party breakdown will be:
Socialist Democrats—think Speaker Nancy Pelosi, Senator Bernie Sanders (I-VT), and our President, Barrack H. Obama.
Traditional Democrats—think union rank and file of the trade unions, Teamsters, and UAW. The laborers, SEIU, and AFSME will cast their lot with the Socialist Democrats.
Republicans—chosen on the basis of family tradition, country club and generational wealth. A kind of Fraternity/Sorority operation. Think Senator Olympia Snowe (R-ME).
Reaganites—chosen on the basis of economic freedom, strong national defense, and limited government.

The communication breakdown is already here. And when it takes root, it won’t be the same.

Obama-Care Must be Sent to the Infirmary

Not long ago, an old friend of mine sent me a video pertaining to the so-called public option portion of Obama-Care. In the cartoonish video it stated that a government funded health care system could be very efficiently run. It provided proof of governments ability to run programs by mentioning social security and the postal system, to name two. I nearly fell off my chair in laughter. The Postal System has a deficit in the billions and Social Security is nothing more than a giant Ponzi scheme. If a government run health care system is the latent intent of Obama-Care then it needs to be sent to the infirmary.

It seems the democrats are greatly divided over putting in the public option with Speaker Pelosi (D-CA) and Senate Leader Reid (D-NV) pushing for it and more moderate party members like Max Baucus (D-MT) prefer to opt out on that element. Meanwhile the Obama administration "dithers". The democrat written health care legislation needs to be dumped. The public option is basically an incremental step towards government control.

The Nobel Prize (1974) winning economist F.A. Hayek, wrote in his fine book, The Road to Serfdom, "Our freedom of choice in a competitive society rests on the fact that, if one person refuses to satisfy our wishes, we can turn to another. But if we face a monopolist we are at his mercy." The current health care bill working its way through Congress places us on the slippery slope towards a governmental monopoly. Should it pass, it will put not only our health care system into tailspin, but will severely damage our already fragile economy.

The outstanding Republican Congressman Paul Ryan (WI-1st), offered up the "Patients Choice Act of 2009" earlier this year. It had many good elements in it. One portion of it made little sense to me. It proposed to eliminate the tax exemption offered to employers that provide health insurance to their employees. In its place would be a $2300 individual tax credit and a $5700 family tax credit. With these monies, an individual or family were free to select their own health care or to apply it to whatever their employer was offering. Now there is no duty by employers to offer health insurance, but those companies that wish to hire the best talent ought to have the ability to offer it. And get a tax exemption for it. The self-employed ought to be able to have that same tax benefit.

In order to provide a competitive environment for health insurance a number of components need to be incorporated in any legislation coming out of Congress. They are:

• Tax credit for all out of pocket medical expenses including for elderly care.
• Portability. We should be able to move from one plan to another based on any change in employment status.
• Insurance plans should be offered across state lines. This will provided needed competition.
• Medical tort reform. Cap the awards on pain and suffering.
• Health Savings Accounts (HSA) should be expanded further. This alone will provide the basis for a three-tier health insurance paradigm. Level one--basic preventative health care, check-ups, working with our physicians to establish healthy lives. The payment for these would be out of pocket or through our HSA's. Level two--emergency care and accidental health insurance. Level three--catastrophic health insurance for live changing medical care.

The present health care system is so clogged that it needs an angioplasty. It needs to be invigorated with more competition to lower costs. Yes indeed, it needs reform. What it doesn't need, is the time of reform that the Obama-Care orderlies are working up. This type of Obama-Care needs to be sent to the infirmary, indefinitely.

We Need a Strong Governor for Illinois

I recently received a campaign letter dated 10-12-2009 from former Governor Jim Edgar (R), endorsing Kirk Dillard in the Republican gubernatorial primary. Governor Edgar (served 1991-1999) was the last decent Governor we had. During his administration a good deal of lard was cut from the state budget and he produced a budget surplus. Since then we have had nothing but shame heaped upon us. I'm proud to say that I voted for him thrice (including once in the primary for his second term as opposed to following the Chicago precinct model, "vote early, vote often"). Governor Edgar is well respected by many Illinoisans, rightfully so. His endorsement of Dillard carries a great deal of weight, particularly in a crowded primary field. As much as I respect former Governor Edgar, I have to decline.

State Senator Kirk Dillard is a solid conservative and has toiled in the government trenches for years. He has been in the Illinois State Senate since December 1993, sixteen years. During that time he has sponsored and helped pass a number of important pieces of legislation. He touts his experience as a key reason to vote for him for Governor. I disagree. That long service in government is not what Illinois needs right now. Illinois needs fresh ideas and fresh eyes on the problems it faces. Kirk Dillard's experience needs to remain in the State Senate to serve as floor leader for the next Governor of Illinois....

Adam Andrzejewski.

Adam Andrzejewski (pronounced And-G-F-Ski) is pushing hard for transparency in government. He is seeking to require all units of government to electronically post where all the taxpayer dollars go. Additionally, Adam will make use of the veto pen. My impression is that it will be one of those imprinted BIC pens rather than the more expensive legislative bill signing pens. Adam is the candidate to be counted on to cut bogus state programs and agency discretionary funds (he calls them "shoe boxes"). Such cuts are something I'm afraid other candidates will not do.

You know what I mean. Nudge, Nudge. Wink, Wink. Senator A wants funds for a bike pathway in his district and Senator B wants funds for a new obelisk in the local town square. They get together to support each others discretionary projects in the usual Chicago method; "you scratch my wallet, I'll scratch yours" and the funds are appropriated accordingly. Later we citizens learn it's a bike path to nowhere and the obelisk looks like a dog named Politico pinched a steamy loaf on a slab of granite.

Adam, as Governor of Illinois will not stand for this, er, crap. Andrzejewski will place fresh eyes on the problems Illinois' faces. He will put forward new ideas to reinvigorate the Illinois economy. As an entrepreneur, Adam knows how to meet a payroll and knows what high hurdles small businesses must face here in Illinois. Unlike other candidates Adam is not part of the modern day aristocracy, that is to say, he is not an attorney.

Adam Andrzejewski is like you and I. Small business people trying to provide for our families in a tough Illinois economic environment. Andrzejewski will provide sunlight on Illinois Government. This will induce a nice sanitizing effect. When the time is right, he will sunset redundant programs, goofy spending and hidden slush funds.

Most Importantly, Adam Adrzejewski will set in motion a strong economic environment that will create jobs and opportunities for business growth and entrepreneurship. This is exactly what Illinois needs.

Adam Andrzejewski for Illinois Governor 2010.

Political Musings

Huckabee 2012 ??
No Way! Conservative commentator, Tom Roeser posited this question in a recent blog on his site, TomRoeser.com. Mr. Roeser is an excellent wordsmith and I have to admit that I agree with him 90% of the time. On this notion of Huckabee in 2012, we depart. I do not think Huckabee has the stones to cut government as it must be. In fact, in my estimation, I do not believe any of the top tier candidates Romney, Palin or Huckabee would be capable of making the necessary cuts. Perhaps former Colorado Governor, Bill Owens or current Indiana Governor, Mitch Daniels would have the tenacity to make cuts to the profligate federal spending.

CATO Institute
The CATO institute, a free-market oriented think tank in Washington, D.C., has come out with a plan to downsize the Federal government. CATO proposes to eliminate the Department of Education, a good portion of the Department of Agriculture, and the Department of Housing and Urban Development (HUD). I have long advocated the elimination of the Department of Education, ever since President Jimmy "The Cracker" Carter created it. The Department of Agriculture is another matter. CATO proposes to gut most of the department moving most of its functions to the states. For the most part I agree. Where I disagree, is the "Legacy" National Parks. They should be left in Federal Hands. The smaller, so-called National Parks that have been created by US Senators and Congressman seeking to gain favor with the ecotopians, should be left in state hands or as CATO proposes private land trusts. HUD can go and after reading CATO's proposal it makes more sense.

$100 Oil is still Coming
In my last post I said it was on the way. Now the US Dollar is getting pounded even more. Commodity prices are on the rise. As the rest of the world is beginning to show signs of recovery from the Bankers Flu (swine flu, if you wish), the US still putters along while the Obama administration does nothing.

Charity begins in Your Community!
Even as we all struggle in this troubled economy, please remember to give to those organizations in your community whose mission is to help the less fortunate. Even if you only have clothing items or other materials, it is important that we continue to help the "Independent Sector" grow.

100 Dollar Oil !!

Yes. It is coming to a gas pump near you, the pricing impact of $100 per barrel OIL. It will hit us by 2Q 2010 and will negatively effect our troubled economy in a big way.

As of this writing oil is sitting at $73.96/bbl. The economies in other countries seem to be showing some signs of recovery. In particular, the emerging economies of the BRIC (Brazil, Russia, India and China) are again on a forward growth path. Consequently, demand for oil is rising and the price is rising along side this increased demand. Not only will we feel a price impact at the pump, but prices for other products derived from our petro-chemical industries will also rise. We will certainly feel it in the plastic products we buy and other distillate products we use.

What has our government in Washington, DC done since Oil hit the $147/bbl mark last year? Not much. Oh, there was some elements of the so-called stimulus plan that may help, a little. But for the most part all that has emanated from Washington, DC has been a lot of hot air. [Now if only we could harness this hot air, we could heat the Capitol building for a decade]. Since oil prices dropped below $60/bbl it has been business as usual. Now they are on the rise.

Washington should lead by example and convert all government vehicles to alternative energy sources. Since the Post Office is running such a significant deficit, this should be the first quasi-agency to go alternative. All of their trucks and delivery vehicles could convert to CNG (compressed natural gas) or LNG (liquid natural gas) as a fuel source.

Additional tax incentives should be put in place to encourage private sector businesses to convert to alternative fuel sources thereby reducing our reliance on foreign oil. To sit and emit hot air on this issue will only cause greater harm to our country.

Chicago Loses Olympic Bid

Chicago did not even make it to the medal round in its bid to win the 2016 Summer Olympic games.

Much has been said and written over Chicago's failure to win the bid. Here in Chicago we were caught flat footed when tossed in the first round of voting. Rio de Janiero, Brazil had a more impassioned and better bid. They took the gold home.

Could Chicago have won the bid? Yes. With a much more impassioned and targeted plea to the International Olympic Committee (IOC) meeting in Copenhagen, Denmark. Was it President Obama's fault as many of the talking heads blame? No. He gave a nice talk pitching Chicago on behalf of the United States. I disagree with the boneheads that argue he should not have made the trip, citing he had more important things to do. Hey folks, the President doesn't sit in coach twiddling his thumbs waiting to touch down. No, he is working the phones, meeting with key staff, and conducting the business of the USA.

First Lady, Michelle Obama, gave the most impassioned plea and knocked the ball out of the park. In the process, saving Chicago's overall bid presentation. If it weren't for her, Chicago would not have even got the 18 votes in the first round. Mayor Daley gave a boring Chicago-centric speech. The type of parochial effort you would hear by a Chicago ward boss.

Did they play a great game? NO.

If the Chicago 2016 committee wanted to give 110% effort (a type of effort required to win the gold in the games) they would have targeted their appeal to the IOC members. You see, 42 voting members of the IOC have participated in the games, many of which have won medals. The Chicago presentation should have made with these members in mind. A little less feeding of political egos and a lot more Olympic athletes making presentations. The athlete presentations should have included US and non-US members of past Olympic teams. The ultimate goal being how Chicago would best benefit the Olympic movement. Having more focus on the International sporting events that the Chicago Metropolitan area has successfully hosted would have greatly aided the overall presentation. All of this would have sealed the deal.

I am not sure Rio is ready. It has far more problems to solve before 2016. Hopefully they can get them resolved before the games begin. In the end, it was Rio that played a much better game.

2016 Olympics in Chicago

Good Luck to the Chicago 2016 Olympic Committee!!!



As a former middle-long distance runner in high school and college I am extremely supportive of Chicago's effort to land the 2016 Olympic Games.



I wish the entire bid team the best success towards landing the Olympic Games in 2016 in Chicago. The entire metropolitan area would greatly benefit by having the Olympics here and the principles of the Olympic movement shared by all those that compete and attend. To those critics who feel the games might be a financial boondoggle, I say bull pockey. Chicagoans know how to turn a buck!! And my feeling is that the 2016 games, if hosted by Chicago, will be one of the most successful ever.



Good luck to President Obama and the lovely First Lady, Michelle Obama, in their presentations. And to Mayor Daley and his presentation team in their tremendous efforts to put Chicago on the international stage in a most positive way.

Social Security: Our Sovereign Wealth Fund

As addressed in an earlier post, I felt that the Social Security is one of the main issues that would need to be given priority by the new administration. Now Social Security is percolating to the top of the issue docket. The recent news by the Associated Press that the system will see a $10 million dollar deficit in 2010 due to a number of older Americans seeking benefits as a result of layoffs and business closures in this troubled economy, will surely bring the issue to a boil. Add to that a recent discussion on MSN--money which stated that seniors will not see a cost of living increase in their monthly checks. Plus the mention of it in Steve Forbes Fact and Comment column in Forbes magazine. Social Security will soon be the lead issue in Americans minds.

Forbes in his excellent column states that things would be different now, had FDR accepted the Clark Amendment to the Social Security legislation enacted in 1935. The amendment would have given Americans a choice between the public option (Social Security) or a private insurance plan.

While Social Security has become the third rail in American politics, it merits robust discussion which will move it toward beneficial reforms. I once thought it should be a voluntary, private system. It seems to me that Social Security should be a requirement as part of our social safety net. With the recent Madoff scandal and greedy Wall Street bankers robbing and pillaging funds and their subsequent theft of taxpayer dollars in the form of bailouts, Americans are a little fearful of where they put their retirement funds. The financial mess we find ourselves in is one giant burr in the American saddle.

Social Security should be reformed and transformed into Our Sovereign Wealth Fund. Yes, it is a supplemental retirement fund. That was the original legislative intent behind it. Further steps need to be taken to strengthen the system.

Social Security is for all American citizens. All should be included without regard to income level. The following reforms should be implemented for a solid Sovereign Wealth Fund to be created benefiting us all:

1. Lower the payroll taxes to 5% for the employee and the employer. Self-employed Americans should pay no more than 10%.
2. Limit the payout (remember it is a supplemental retirement fund).
3. Similar to a 401K program, the system should allow people to select different investment programs to beef up their monies placed into the fund.
4. The Social Security Administration should not just invest in US Treasuries, but also invest in other debt, equities and real estate to provide growth and income in the fund. Congress should place strict risk restraints on the fund's investment officers.
5. Move the entire system out of the orbit of the Congressional cookie monsters. Put it in a "lock box" and keep the Potomac Pirates' mitts out of the cookie jar.
6. Everyone working in America should pay in. American citizens would receive benefits based on the funds they invested into the system. There should be no income level cut-off (currently at $106,000). Call this the Buffet tax, if you get my drift.
7. The payout from social security to retires should not be subject to federal income taxation. Retirees receiving social security payments should also be allowed to earn as much income outside of Social Security without penalty.

All of these reforms will strengthen Our Sovereign Wealth Fund: Social Security. Feds nailed Bernie Madoff on his Ponzi scheme, it is now our turn to nail the Feds on their Ponzi scheme. Lets takeover Social Security and create Our Sovereign Wealth Fund.

Obama's False Recovery

Despite the early signs of a mild recovery as in the stock market run up and one good month of rebounding indicators, the economy has a long forward stroll before reaching full recovery. There are too many hurdles in the way. The small signs are creating a false recovery.

First, a SIDEBAR: Contrary to #39 Jimmy "the Cracker" Carter's view, as an American I am free to criticize our President without being viewed as a hater. I happen to like President Obama and when feeling a touch of spirituality, I pray for him and that of his wonderful family's good health and prosperity. I do not like his policies. The problem with old #39 is that he not only has lust in his heart, he suffers from an embarrassing malady known as athlete's tongue.

Now back to #44's false recovery. While the economic prognosticators are singing to the tune of "Happy days are here again", there are a number of things churning underneath the economic surface which tell us that all is not well. Consider the following economic items:

1. With most banks paying only 1.5% on savings there is a big shortage of income.
2. From all news accounts the job outlook is still dismal.
3. While inventories have dwindled down, thereby increasing industrial production, factories are only operating at 60% capacity.
4. The huge run up in spending by both the borrow and spend Republicans and the tax and spend Obamacrats is unsustainable without an increase of growth and income, including from point one above.
5. Commercial real estate is a problem with many construction and mortgage loans coming up for re-finance in 2010 and 2011. With vacancies up and very little absorption in the near future, this poses a severe economic problem.
6. More Bank failures are on the horizon due to non-preforming loans across all asset classes.
7. Credit markets have not thoroughly thawed.
8. In a number of states home values are still declining, including Illinois which has seen an 11.8% decline.
9. There is still a large number of homeowners seeking to downsize and that number will continue to rise as the baby boomers age towards retirement.
10. The current government stats indicate that the economy grew at a modest 3% last month, but we need more than twice that to pay for all the bailouts, stimuli and earmarks that have been rolled-out over the last nine months.

Without the removal of all of these hurdles, we will have a terrible false recovery. There are a five things that President Obama can do to enable the economy to move towards a full recovery. The first two will have, dare I say it, a stimulative effect.

1. Make permanent the Bush tax cuts. Take a step further, widen the income level for lower tax bracket and lower the rate of the top bracket to 30%. More funds in Americans pockets will trigger savings and investment as well as consumer spending.
2. Reduce the capital gains tax to 10%. This will create greater velocity in the investment markets.

The last three items are a little outside the box.

3. Recalibrate our immigration process. Despite what the America haters suggest, people from every corner of the earth still desire to come to the United States. Let them. Especially if they are hard working and seek to assimilate to the richly American way of life.

4. Remember the Reagan policy of constructive engagement? Engage Cuba to move towards democratic capitalism. Soon the Castro brothers will be taking a dirt bath and there will be a leadership vacuum which will create an opportunity for our country to export products to that island nation 90 miles from Miami.

5. Create an Allianza de Progresso with Mexico, Central and South America. Generate strong economic growth in our Western Hemisphere. These countries are our neighbors, we should be doing more unfettered trade with them.

Obama's false recovery could be turned into a robust recovery following the ideas above.

NO Progressive Income Tax for Illinois

Recently Illinois Comptroller, Dan Hynes, announced his candidacy for Illinois Governor. As part of his announcement he released a twenty page document entitled Leading Illinois Forward: The Hynes Plan for Tax Fairness & Fiscal Prosperity. This is an excellent read for policy wonks. It contains a number of great ideas to bring Illinois back to fiscal sanity. One idea that is NOT good, is his proposed progressive income tax for Illinois Taxpayers.

Currently, Illinoisans pay a flat 3.5% on their income. I believe this is too much. It should be lowered back down to 2% as it was before the Edgar administration raised it to its current level. Under Hynes' plan there would be a top rate of 7.5%. Luckily, the voters in Illinois would have to approve an amendment to put a progressive state income tax system in place. A progressive tax system would be another spike in Illinois already troublesome business and employment environment.

According to a CNBC report, Illinois ranked 25 out of 50 states in "America's Top States for Business 2009". In a state with Illinois' population, resources, talent, and amenities, that is shameful. Adding insult to injury Illinois ranks 43rd in Business friendliness and 38th in Cost of Business. Illinois does not need to continue its business and manufacturing decline by instituting a progressive income tax system. One does not need to be an Nobel Laureate in Economics to understand that capital (derived by income) is key to business development and growth.

To Hynes' credit, in his budget blueprint he offers a number of cuts that make incredible sense. How often do we here politicians bellow about cutting government spending, but do not hear a peep about what cuts they would make. Hynes' puts his ideas to paper. In addition he proposes a number of revenue enhancing ideas that are intriguing. Now, I like Dan Hynes. And in the interest of full disclosure, I did vote for him for Illinois Comptroller in 2006, wandering off the (R) reservation. It was a political chit I felt I owed to his family for their help in my Eagle Scout service project (a voter registration drive) three decades ago.

Dan Hynes is dreadfully wrong in his desire to bring Illinois a progressive Income Tax system. Such a system would only hurt Illinois's already feeble business and employment outlook. What is needed, is lower taxes on businesses and individuals. This would create a stronger environment for business retention as well as business creation and growth. Consequently, employment growth would follow beating down Illinois' already high 11% unemployment rate.

Please. NO Progressive Income Tax system for Illinois!!!!

Illinois Gaming Law needs a Re-set

Recently, the DuPage County Board acted judiciously and correctly in outlawing (forbidding) video poker terminals within the unincorporated areas in DuPage county.

Under the new "Capital Bill" signed by Governor Quinn, the new Video Gaming Act allows for 5 video poker machines per liquor establishment, truck stop, and Veterans / Fraternal club. The Illinois Gaming Board (IBG) has yet to promulgate rules and regulations for this new gaming activity. The Governor was foolish for accepting this amendment to the Capital bill.

The door has just been opened for organized crime to strengthen its position in Illinois. It remains to be seen whether we will be seeing dead bodies in car trunks out at O'Hare as turf wars develop as a result of this new gambling. Oh, I'm sure the IBG will put together strict rules about who can be involved in the poker terminals, but lets face it unless their enforcement offices are funded properly, it won't be little mice jumping through the loopholes, it will be Illinois bison lumbering through any loopholes. The Illinois legislature should have the stones to dump this insidious legislation. Granted, any municipality or county can opt out of the law,but too many will be salivating over the projected revenues that video poker supposedly will bring in.

There is only so many gambling dollars available for people to spend on this entertainment. The legislature would be wise to strengthen its current gaming venues instead of creating additional ones to take dollars away from these. Currently Illinois has nine Riverboats with a tenth one to birth in the Des Plaines river in Des Plaines. Why not enhance the current law and regulations to allow them to expand a little. Increase the number of table games allowed, including the phenomenally popular Texas Hold 'Em. Additionally, allow the casinos to put in more slots. The casinos should also be allowed to put in separate (in every way, ventilation, etc.) smoking facilities. Such small improvements may very well enhance the states take of gambling revenues without resorting to video poker which will increase the cost of the IBG's enforcement budget.

Another area that current gaming law needs to be re-set is allowing some of the race tracks to have slots. In other states they are called racinos. Now that the tenth casino license has been granted, Illinois should amend the law to allow thirteen casinos, three additional ones should be granted to Arlington Park, Hawthorne and Fairmount Park race tracks. Though, they should be smaller in size than the riverboats it would help enormously in making Illinois a great thoroughbred racing state rivaling neighboring Kentucky. Such a law change would also render the ridiculous "Impact Fee" legislation currently tied up in the courts as moot.

There should be strong competition for the public gaming entertainment dollars among the current gaming venues. It is apparent that any increase in gaming will hurt current operations. It is imperative to build upon what Illinois has, not create more problems across a multitude of venues. The Illinois legislature needs to re-set the Illinois Gaming Law in its next legislative session.

Illinois Budget Crisis

Governor Quinn is an honest and decent fellow. An affable, reform minded politician; after all he, long ago, led the charge toward dumping Illinois' convoluted cumulative voting system. Under such a system, voters elected three state representatives from each legislative district. The theory was that the minority party would have a representative to present their viewpoint. Imagine how this played in the City of Chicago?? Nonetheless, Quinn's leadership helped reduce government by leading Illinois voter's towards dumping this system. That was then, this is now.

Now Governor proposes a budget that both increases government spending and seeks to increase taxes. Perhaps it is time to drop the "Reform" label. The Governor's proposed "temporary" increase in the personal income tax as well as increase the state's business tax is the wrong way to move Illinois forward.

First, to increase taxes during troubled economic times is antithetical to any type of pro-growth policies. A raise in taxes will only continue the decades long slide in Illinois' manufacturing base. Additionally, we will see a continued exodus of retirees to more sunny and tax favorable climates. Neither are a good way to grow Illinois.

Second, all the political posturing about how certain groups of needy citizens are going to get hurt more as budget cuts in social services ensue, is a bunch of nonsense. As the Republican leadership in the Illinois legislature so ably point out, the money is there for these social services to be carried out. The Republicans are also pushing for urgently needed reforms to avoid future budget crisis's. These reforms need to happen now!

Finally, there are other items that can be cut from this budget that would not adversely impact basic governmental functions. Since tax dollars are fungible, The Governor would do well to veto the capital improvement bill, send it back to the legislature and ask the politicos to prioritize the projects. Ask them to save some taxpayer dough.

It is imperative that the politicians in Springfield begin to build a better Illinois during these tough economic times. The state politicos need to build a strong business environment to attract business and industry as well as create home grown businesses. Job creation should be the top goal of our politicians. The first step towards that end is to create a favorable tax climate.

Another area that Illinois needs to strengthen is its vibrant Independent Sector. One avenue to do that is to actually cut funding to social service agencies that are not directly part of Illinois government (ie: grants,special earmarks, etc.). At the same time provide a tax credit to businesses and individuals that make donations/contributions to charitable organizations that provide social services. This would be a great way to build up the Independent Sector while at the same time de-fund the Poverty Industry.

Should the Governor follow the road map above he could regain his Reform label once again. Failing to do so would relegate Illinois to a third rate state.

Stimulus Plan: Good Idea Gone Bad

The American Recovery and Reimbursement Act of 2009 has ended up being a standard Tax and Spend liberal social welfare bill. With only approximately 12% ($111 billion) going towards actual infrastructure spending. the balance of the legislation ended up being more transfer payments. What could have been a solid piece of legislation with a mix of tax cuts and incentives as well as much needed infrastructure spending ended up being a good idea gone bad.

The first mistake the Obama administration made is painting a broad picture of what they liked and then abdicating Leadership to a Pelosi, Obey, Frank, and Reid cabal of socialist tendencies. This massive measure of $787 billion will weigh the US Taxpayer down for many years to come.

Infrastructure Bonds
An opportunity to significantly improve this nations roads, highways, bridges, ports and waterways was lost. Instead, the vast majority of the monies were allocated to social welfare spending. Consequently, fewer jobs will be created. What the administration and the legislature could have done is create an Infrastructure Bond (similar to the War Bonds sold during WWII) to fund significant re-building and urgently needed new infrastructure projects.

Now, there will be political battles being fought among the states to see which projects will be funded, tightening the federal grip over the states. How will these funds be divided and who will make that decision??? Will states get a pro-rata share of the funds appropriated or will it be solely based on who can exercise the raw political power? It remains to be seen.

I for one will be checking closely on the web-site www.recovery.gov to see where the money will be going.

Sleeper Issues Will Advance in 2009

Once the political denizens dispatch the TARP and "Stimulus" issues in Q1 of 2009, there will be three sleeper issues that will advance to the forefront during the new President's first 100 days. Among them will be Immigration, Social Security, and Mexico.

Immigration
This will be the number one issue to deal with as we march further into 2009. Pressure will mount as increasing immigration costs accrue to states along the USA Southern border (CA, AZ, NM and TX) amid declining revenues. Watch for Senator John McCain (R-AZ) to pick up the issue and run with it. Republicans should listen to his more reasoned and balanced approach on this matter. A top to bottom examination of the whole immigration process is needed here. What follows are a few ideas that should be considered as plan in formulated.

• Create a guest worker program for the approximately 12 million "illegals" that includes a path to US citizenship.
• Re-calibrate the immigration visas granted on a nation by nation basis, substantially reducing visa's of all kinds for those coming from middle Eastern countries.
• Develop a separate deportation / prison system for those convicted of crimes while here on visa's or illegally. There is no reason for the states to house and pay for these deviants. It is a Federal problem and should be treated as such. Call this the modified "Savage" (Micheal) plan. This will tie in nicely to a stimulus plan. Develop a federal prison in Duluth, MN for those immigrants hailing from Mexico and Latin America convicted of crimes. At the same time develop a federal prison near Deming, NM for all other immigrants convicted of crimes. Of course none of these criminals can be US citizens.

It is very important that Republicans do not cast their lot with the Xenophobic wing of the party. Instead create a welcoming Reaganesque land of opportunity type of measure with strong punishments to those who disobey US laws. A kind of "peace through strength" / "trust, but verify" immigration opportunity plan.

Social Security

This has long been the third rail of American politics, particularly in recent years with the Democrats usual demagoguery on this issue. It is very important for Republicans to remind all Americans that Social Security is supplemental retirement money and not the whole retirement fund enchilada. When FDR created the system in 1935 that was all it was meant to be. It is part of the safety net and much needed when faced with the theft of some citizens money by scoundrels like Bernie Madoff. A few must needed changes that have to be folded into the system would be:

1. Include Members of Congress, federal workers, and those that make over the current threshold. Put a maximum monthly payout for all retired citizens no matter how much they paid into the system. Call the difference the "Buffet" tax.
2. Decrease the payroll tax to 5% for both the employee and employer portions. Also, the self-employed would only be taxed at a total10% level. This will free up money for stimulating the economy.
3. The 5% paid into the system by those immigrants here on "worker visas" would be credited to an account for them under a worker ID number, but would only be transferred back to them under social security when they become US citizens. Otherwise payments made into the system by these workers would be a cost of doing business in the USA.

All other great ideas put forward by the think-tanks and Congressional representatives should be placed on the table for full discussion. It is important to not only keep the system solvent, but to create a successful fall-back plan for all Americans as they move forward in rebuilding their nest eggs after the recent dismal economic performance.

Mexico??? Yes, Mexico!!!

This is the number three issue, rising with a bullet! This past week the Mexican peso got pounded and will continue its free-fall as we move through this business quarter. Consequently, this narco-democracy is on the verge of falling into collapse. Should that happen, expect a tsunami of human misery to cross our borders. The President should immediately dispatch an emissary to Mexico City to meet with its government to purchase a large amount of Oil to fill our Strategic Petroleum Reserve. This will help the Mexican government shore up its budget short-fall before it collapses into total chaos and we will be able to get the oil at reasonable cost ($42.00 per barrel) before its next rise.

Senator Cornyn (R-TX), Sen. Hutchinson (R-TX), Sen. Martinez (R-FL) and Sen. McCain (R-TX) would do well to press the Obama administration on this serious matter. With the recent trade agreements between Russia and Cuba it becomes imperative that we begin to pay very close attention to our neighbors to the South. Not since the Kennedy administration has there been any concerted focus on our hemisphere. The Bush #2 administration is the first since that time that actually tried to make things happen in our Earthly neighborhood. The world is changing dramatically and as we draw down efforts in the Middle-East, the focus should be on our friends in Latin America.

While there is a whole host of issues that will likely rise during 2009, these three issues above will peculate to the top. Republicans would do well to assemble congressional teams to meet the challenges head on in anticipation of a strong come-back in 2010. Strong action on these matters will help set the table for a solid majority in the next decade.

Reject the OPR Stimulus Plan

The stimulus plan offered up by Congress is not that of the President-elect Obama's, but that of Obey (D-WI), Pelosi (D-CA), and Rangel (D-NY). While, Mr. Obama and his economic team have provided some broad strokes, this plan is purely a liberal democrat plan--the OPR stimulus plan. David Boehner (R-OH), House minority leader, almost had it correct in calling it the "OMG" stimulus package. Republicans would do well to reject 70% to 80% of this hodge-podge of social welfare, transfer payment and useless spending provisions of the measure. Republicans must offer a substitute measure and get a vote on it.

How is this Change???
Much of the measure, as released by David Obey's (D-WI) Appropriation committee, is the same old stale crap on a paper plate served up by the liberal cabal during the Reagan years to the tune of $825 billion dollars. Charlie Rangel's (D-NY) Ways and Means committee has offered some compelling tax cuts that actually will provide some stimulus to a weakened economy. The only aspects of the plan that will have a stimulative effect, from a Keynesian economic point of view, are the proposed $122 billion dollars of spending on roads, bridges, mass transit, waterways and the energy grid. One could throw in the $102 billion proposed for "workers" in a further strengthening of the existing safety-net during these tough economic times. The rest of the proposal reads like an appropriation measure that had not yet been met during earlier administrations going back to the Great Society of President Lyndon Johnson. How is this Change??? Unless the Obama team offers up some real change, it could become apparent that the left-wing of the democrat party will attempt to ride roughshod over the West-wing. And this mutant bird will not fly.

What Republicans Must Do!!!
Congressional Republicans must offer up a substitute measure and get a vote on it!! Think 2010.....

1. Go along with much of the democrat Ways and Means committee provisions regarding business taxation (ie: bonus depreciation, five year carry back provision, and an increase in small business expensing).
2. The Education credits and first-time home buyer provisions will have a stimulative effect as well.
3. Lower the capital gains tax to 10%. This can be strongly stimulative through incentive to take risk and create jobs.
4. Create an expensing provision that allows Research and Development expenditures to be expended at 120% of actual costs. This will reward both small and large businesses for their ingenuity and provide an incentive to risk taking that will create additional jobs.
5. Reduce the top corporate tax rate to 25%. Better to free-up capital for private-sector jobs than to create governmental employment for piggies to wallow in.
6. Reduce the payroll tax to 5%, both the employee and employer parts of this tax. This will provide a strong stimulus and also move the whole social security system re-tooling to front and center.

The OPR Stimulus plan offers very little in the way of stimulus that will create employment and economic growth. It will be far better for the Republicans to embrace a plan filled with lower taxes and other tax incentives to get capital flowing and unleash the entrepreneurial spirit of America. This is the only way out of our current economic doldrums. Press hard on these pro-growth policies. Let the young President Obama be the final arbitrator that makes the determination of what is good, bad and ugly in the overall package. And with some "audacity of hope" we might have another "seven fat years" similar to the Reagan era.

Time to Add another Illinois County

With the State of Illinois greatly embarrassed by the antics of the current Governor, as well as his impeachment trial ready to begin later this month, it is high time for the six townships of Northwest Cook County to finally secede from Cook and form a new county. The impetus for this is the continued corruption that oozes out of Cook. The six Northwest Townships (Barrington, Palatine, Wheeling, Hanover, Schaumburg and Elk Grove) should separate themselves from the conflagration of graft and theft of public confidence from a corrupt and practically bankrupt Cook County.

Should some or all of the Northern Townships wish to join them, all the better.

There are a number of reasons why it is important to give this full consideration during these tough economic times not the least of which are:

1. High taxes will continue to chase business and commerce from the Northwest Suburbs.
2. Since Cook County is dominated by the "pay to play" Chicago politicians, short shrift has always been given to the Northwest Suburbs and various public infrastructure projects.
3. Municipalities in the Northwest Suburbs may be forced to pay higher interest rates on bonds due to the Cook County corruption machine.
4. Now is the time for Northwest Suburban businesses to wake up and sever the ties to Cook County and its use of their tax dollars to fund Chicago based largess.

There will be a number of considerations to develop a new county; not the least of which would be its naming. I would suggest either Lincoln or Reagan both of which would be proud names for a county that would have the highest valuation outside of that of Chicago. Another matter that would need to be discussed would be the transfer of current Cook County assets within the six township area to the newly formed county. In order to foster growth and job creation I would recommend reducing the number of property classifications and the corresponding assessed valuation. They could be as few as five: Commercial [(office, retail, restaurants, etc.)--30%], Industrial [22%], Residential [20%], Agriculture [12%], and Vacant undeveloped land [35%]--to encourage development.

Its time for Northwest Suburbanites to wake-up and smell the Starbucks before more and more of their hard earned incomes are picked from their wallets by Chicago politicians seeking to line their own. Start the process Now to form a new county in Illinois.