Saturday, January 31, 2009

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.

Sunday, January 18, 2009

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.

Thursday, January 8, 2009

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.