Monday, November 8, 2010

Election 2010 Aftermath

The historic results of the 2010 mid-term elections have given the nation hope that the socialist policies of the current administration can be turned back. Come January 2011 the U.S. House of Representatives will be in firm control of the Republicans with as many as 245 members. Additionally, the Republicans will have 47 members meaning no longer will Democrats be able to break any filibusters. It is possible the Republicans may be able to have a defacto majority on many key issues, as there are many more Democrats up for re-election in 2012.


Abraham Lincoln once said, “ Leadership is, at times, a painful burden”. This is what the Republicans in the 112th Congress must be prepared to do; provide leadership on a full range of issues. First, is getting the economy back in full health. The majority must prioritize, engage, and execute these matters as quickly as possible.

Win. Win. Compromise!

Both sides have carved out their positions on the extension of the Bush tax cuts. President Obama has left the door open a little by saying he would look at a short-term extension for some income levels. While Senator Orrin Hatch has tipped the Republican’s hand by stating that he would be open to a temporary extension of three years.

The measure they should negotiate and pass in the lame duck session should be an extension of the “tax cuts” and expansion of the brackets of Obama’s “middle-class”. Additionally, pass Obama’s proposed quasi-accelerated cost recovery that would allow businesses write off major capital purchases instead of depreciated those assets over their useful life.

This is the type of compromise that can be achieved. It would allow Republicans a victory going into 112th Congressional season. It would allow Obama to save some face and get the economy rolling again. Politically it would be a draw. Both sides would have bragging rights before the real battles begin at the turn of the year.

The Battles Begin in January

Health Care Reform. Republicans and the few pro-growth Democrats left standing, should immediately move to dump Obama-care. Repeal, reform, and re-submit the legislation making it simple and free-market oriented. This is what many Americans had on their minds when they went to the polls. Speaker-elect, John Boehner, will need to work hard to guide this new improved legislation through under the threat of veto. Pass it. Let President Obama veto it if he dares.

Cut Government Spending. While Senator-elect, Rand Paul (R-KY), has already proposed an across the board cut of five percent which is laudable, more needs to be done. Republicans need to muster the will to cut deeper in order to get the nation’s balance sheet back in the black. Take out the budget axe and get it done 112th.

Social Security. It must be reformed and reinvigorated for it to survive. Newly elected Representatives and Senators should think outside the box to get the job done. Do it now, well in advance of the 2012 elections.

The Pledge. Republicans must adhere to all of the principles laid out in their “Pledge to America”. First, all of the economic matters must be dispensed with in order to have prosperity moving forward.

Important pieces of legislation will be worked on in the new 112th Congress. It is incumbent upon our newly elected officials to work diligently to turn around the specious policies passed by the Obama, Pelosi, and Reid troika. It will take considerable tenaciousness and courage. Which leads to another famous quote by Abraham Lincoln, “Courage is loss through disuse”.

Tuesday, November 2, 2010

Election Day 2010 Observations

The U.S. Senate

It’s possible that the Delaware Senate seat will not be needed for Republicans to wrestle control of that deliberative body. The Republican candidate will not lose because she is the conservative witch of the east, as the dead-tree media will lead you to believe. She will lose because she became winy during the final week of the campaign and did not hold her opponent, the bearded Marxist, Mr. Coons, feet to the fire.

Based on polls in the closing days of the election, I am inclined to believe that the Senate will be comprised of 50 Democrats and 50 Republicans with crazy Uncle Joe Biden casting the deciding vote on important issues.

Campaigns’ Closing Days
Did you notice that President Obama and V.P. Biden spent much of the closing days of the campaign in deep blue states. This is a strong indication that the dems are in deep doo doo. Normally, a party’s base would have already been secured. From there the campaign would then circle out to marginal areas to secure close races. The internal polls must have showed something different.

2012
Believe it or not, the campaign for President begins the day after today’s election. Obama is already down six electoral votes from the 2008 contest, based upon census estimates. Texas alone is expected to gain four congressional seats. Consequently, four additional electoral votes for 2012 will be added to Texas’ 34. California on the other hand will not gain any for the first time in decades. Should Obama run for re-election the swing states he won in 2008 would be major battlegrounds in 2012.

Re-apportionment
If it turns out to be a Republican Tsunami today, you can almost bank on the fact that the Republicans will control the House for the next decade. Many states will elect Republican governors today and help them with split or fully controlled legislatures. This is the democrat’s worse nightmare. The Republicans are likely to put in play more geographically reasonable re-districting maps. Gone will be the gerrymandered districts that the Democrats love to carve out.

It will all be fun to watch, read, and listen to tonight.

Monday, October 25, 2010

Vote Early or Vote on Tuesday, November 2nd, 2010

The Two Most Important Constitutional Offices in Illinois


In order for Illinois to be place on a prosperous path, the two most important offices we will make selections for are Governor and State Treasurer. Working in tandem these two office holders are positioned to have the greatest impact on the quality of the business environment in Illinois. The creation of a strong business environment will make way for a prosperous future. Additionally, these two offices hold the key to getting Illinois on firmer financial footing.

For Governor


Bill Brady (Republican) will make a great governor. He will hold the line on taxes and make the necessary cuts in spending to whip the state in shape. Brady is a businessman from the downstate farm belt. Both qualify as solid positives. He will create a business environment for economic growth thereby once again positioning Illinois as the economic engine that can drive the Midwest.

For Treasurer

Dan Rutherford (Republican). State Senator Dan Rutherford has a solid business background. He has served as a skilled legislator known for getting things done. A workhorse, not a show horse as many of his democrat counterparts are. He will work hard to watch that the taxpayer funds are spent wisely.

The U.S. Senate Dilemma

When young I felt that a U.S. Senator was an office of high honor, but over the last couple decades my faith in that body has diminished greatly. It is filled with blowhards and too many members of our American aristocracy (lawyers). It has taken on the attributes of a “House of Lords”. Its importance these days is limited to approving judges and other Executive branch appointments through confirmation. It is the U.S. House of Representatives where the real work gets done. But we must vote for a U.S. Senator this election.


Six-Month Term

Mark Kirk (Republican). He would be an able Senator, somewhere between a Chuck Percy and a Peter Fitzgerald. Kirk is solid on defense and fiscally responsible. Should the Republicans make big gains he could be steered rightward toward needed tax cuts. His opponent would be a disaster for Illinois and our Nation.

Unexpired (Two-month) Term

Mike Labno (Libertarian). If you have some doubts about Mark Kirk and his squishiness then this vote is for you. You can be certain that Labno will do no harm and probably be of some help pushing back on the lame-duck socialist-democrat agenda. This vote will serve notice to Kirk that he is on notice. Should he fall back and vote for such things as “Cap and Tax” he will risk banishment to the political wilderness when he stands for re-election.

My Legislative Trifecta

Illinois Congressional District 14

Randy Hultgren (Republican). He will serve the district well. Hultgren will be a solid vote for lower taxes and significant budget cuts. Should he win, he will be part of the largest freshman class of congress in recent memory. You can count him to listen to and work on behalf of his constituents.

State Senate District 25

State Senator Chris Lauzen (Republican). A solid conservative that has served his district well. Always responsive to constituent inquiries. He needs to be returned to get the states fiscal house in order.

State Representative District 49

State Representative Timothy Schmitz (Republican). Not one for self-aggrandizement, Schmitz is a solid legislator that serves the district exceptionally well. Return him to office.

A Must Vote
Illinois State Comptroller
Julie Fox (Libertarian). She has the necessary accounting background to serve our state capably.

All the tea in China could not make me vote for Topinka. Ol’ Judy is nothing more than a donkey in elephant clothing, if you get my drift. After what she and her cronies did to Jack Ryan to give rise to an obscure State Senator named Obama, she needs to be retired from politics forever.


2010 Elections Will Get Our State and Nation Back on the Road to Prosperity.

Get out and vote. The right vote will put Illinois and our country in position for a prosperous future.

Monday, October 18, 2010

The Importance of the 2010 Election

The importance of this year’s election cannot be understated. The 2010 general election ranks much higher than any other election in this decade. Not only will voters be able to take a stand against profligate government spending, but will make a determination as to whether tax and budget cutters will make it into the halls of power. Consequently, moving our state and nation on the road to solvency.


Another great effect of this year’s election is how the reapportionment map will be drawn. After the dust has settled post November 2, 2010, legislators and the Governor will begin the careful negotiation of how the states legislative and congressional districts will be drawn.

Based on Census estimates coming out of Washington, D.C., Illinois stands to loose another Congressional seat. Based on tentative census figures the big gainers will be Texas (+4) and Florida (+2). Other states that will gain a seat will be AZ, GA, NV, SC, UT, and WA. Joining Illinois’ with projected loss of one seat will be our neighbors Iowa and Missouri. Others with a projected one-seat loss will be LA, MA, MI, MO, NJ and PA. The biggest losers will be Ohio and New York, both with a projected loss of two seats.

It remains to be seen whether that seat will come out rural Illinois or the City of Chicago. Based on past growth patterns, it is unlikely any seat will be poached from suburban Chicago. If one examines the current map there are two congressional districts that are egregious examples of gerrymandering. District 17 in Western Illinois floats from the Quad Cities area down the Mississippi River down to the Illinois towns outside of St. Louis, MO, then juts over to the Springfield, Illinois area. Currently Phil Hare (D) represents the 17th district. The other gerrymandered district is district 4 in the City of Chicago and inner suburbs. Imagine a giant horseshoe with large clubs at the tips. Louis Gutierrez (D) represents the 4th District. A young child could have drawn both of these districts much better than the legislature did ten years ago. This has to be improved.

I am inclined to believe that the seat should come out of the City of Chicago. Population growth has been greater in the suburbs. People have moved out of the city to the suburbs for decades. The Congressional map should be drawn accordingly.

The 2010 Election is very important, as we will make a choice between fiscal sanity or traveling further down the road to serfdom. We will also determine what type of legislature we will have for years to come based on the reapportionment issue that looms large on the horizon.

Monday, October 11, 2010

Fixing The Housing Crisis

                                         Have you had your stimuli today?


The Housing Mess Must be Fixed, Now!!

According to Realtytrac.com there is close to 2 million homes in various stages of foreclosure. In Illinois alone, one in every 314 housing units is in foreclosure. The national average is one in every 381 units. That is astounding. Currently, a number of lending institutions have sidelined their foreclosure process due to clerical missteps. The fact remains we have a terrible housing crisis on our hands. What is Congress’ answer to the problem? A financial re-regulation act. Not the solution.


One source I visited with indicated that the housing mess would not abate until 2013. That comes from someone in the real estate business for over twenty years and quite successful. Others have said maybe 2015. Now that is a serious problem.

In order to move towards a great housing recovery three economic components are urgently needed; job growth, income growth, and population growth are what are necessary to lift the crisis. Given the current administration’s policies and congress’ inaction, the lack of recovery will be further prolonged.

Stimulate Job Growth
(1) Cut corporate taxes to free up monies for investment and hiring.


(2) Cut personal income taxes and spread the brackets.


(3) Cut the payroll tax to 5% for employees and employers. Financial planners encourage people to pay themselves first often floating a goal of 10% of ones gross pay. Why should working people be compelled to put more than that into the ponzi scheme know as Social Security?

The tax cuts during the Kennedy years and the Reagan years had a stimulative effect on the overall economy. The same could be done during these hard economic times.

Income Growth
The tremendous effect of the tax cuts would spur stronger economic growth, create more jobs and cause incomes to rise. It becomes basic supply and demand classical economic equation. As more job openings are created there will be more demand for the best hires. Consequently, incomes will be bid up. The tax cuts alone will allow people to have greater disposable incomes.

Population Growth / Immigration Reform
While it is true that there has been a baby boomlet over the past few years, we will have to wait another twenty-five years before those youngsters enter into the housing market. We probably don’t want to wait that long for a housing market recovery. What is needed is top to bottom immigration reform. Begin by protecting our borders, which is in our National Security interests. Beyond that we need to re-examine who gets granted visas. Provide the undocumented incentives to: a) either become US citizens, or b) obtain the proper work visa. Correlating consequences should be made for those who do not abide. All criminals must go.

Until we turn around our moribund education system we need to attract the best and the brightest from other lands. In this regard we offer incentives to attract those highly skilled immigrants. Put them on a fast track to US citizenship if they invest in a house. Create a little demand for housing.

This trifecta of solid economic moves will have a healing effect on our current housing crisis. If acted upon in an urgent manner, perhaps we can see the housing market recover before 2013.

Wednesday, September 29, 2010

Will Republicans Gain Veto-Proof Majorities

Over a year ago I commented on a discussion thread on Politico.com, engaging in some drive-by commentary, that the Republicans would gain 47 seats during the 2010 election cycle. The lefties, liberals, and eco-topians jumped on my punditry with comments like:

What planet are you on?
What have you been smoking?
Brought your lap-top to the bar, again, ehh?
Hey Rip, where have you been?

Hope and Change springs eternal. Who is hee-hawing now? The election landscape has changed so dramatically that some are asking whether a veto-proof majority looms. It may be possible in the House of Representatives, but unlikely in the Senate. For a veto-proof majority the Republicans would have to win 290 seats in the House and hold 67 seats in the Senate.

Nothing the current administration has done to fight the economic malaise (a Carter phrase, since this is the second term he never had) has worked. The unemployment still hovers around 9%. The housing mess gets worse, exacerbated by little income growth and no employment growth. Stimulus. What Stimulus? The only thing that has been stimulated is the wallets of the various cronies, interest groups and fellow travelers of the Obama administration and their congressional allies.

We have reached the tipping point. As the party of government (Democrats) battles to preserve the paychecks of their apparatchiks in government; meanwhile the government of the people (Republicans) push back, offering tax cuts and spending cuts in an effort to turn the economy around. A political war is breaking out between the entrepreneurial class and the ruling class.

The question remains whether the Republican’s have the stones to offer meaningful cuts as in slicing department budgets by 25% or eliminating whole departments. We shall see. The “mad as hell” voter is out there and ready to pull the lever for any politician that will get us back to fiscal sanity. Now that would have a greater simulative effect by throwing the tax and spend rascals out.

The Obama administration continues to throw fuel on the American public’s dissatisfaction with its policies by offering up another stimulus package. If the first one failed, why would voters support another? This administration is pulling out all the stops to really put its allies in Congress on the defensive. The administrations policies have energized the opposition. The only question is the depth of Republican takeover of Congress, come November. Veto proof majorities may not be possible during this election cycle, but if there is no improvement in the economy, the American public will not put up with it. These are very interesting political times.

Wednesday, September 22, 2010

Political Musings v4

The Silly Season Begins


It’s the silly season. We political animals incur an extra adrenaline rush as we inch towards Election Day. Unlike, Chris Mathews who has the tingle up/down his leg. He probably just sprung a leak in his depends.


The political signs pop up like weeds across the Illinois prairie. Relentless political radio and television ads appear. And the robo-calls fill the voice mailbox. Thank goodness it will all be over after that first Tuesday in November.

Chicago 2011 Mayoral Race

Chicago Mayor, Richard M. Daley’s amazing announcement that he would not seek re-election sent shockwaves through the Illinois political establishment. There are really only two candidates that could successfully run the City of Chicago and maintain its status as a World Class City. Both have the business background and managerial experience to deal with Chicago’s myriad challenges and problems. They are: the Mayor’s brother, former U.S. Commerce Department Chief, William Daley (D) or former Helene Curtis President and CEO, Ronald Gidwitz (R). Either one of these fine gentlemen have the resume and leadership capabilities to move the city forward. All other candidates will only be a single A player. A world-class city such as Chicago needs a major league player to keep its prominence.

Budget Cut. Revenue Raise.

Here is a Budget Cut that we could all support. Cut the salary of all U.S. Representatives and U.S. Senators by $174,000. They clearly have not been up to the task over the last decade, in view of the current economic environment we currently find ourselves in. They do not deserve the pay.


A Revenue Raise that there would be little objection to--Lobbyists would need to obtain a license for 100 large. There are too many lobbyists in Washington, D.C. This would weed out some of them.

The Island Paradise of Cuba

Fidel Castro recently announce that Cuba’s economic model is not working. What is he to do? Use the Obama model? It doesn’t appear there will be any change in store for the destitute citizens of Cuba.


Tired of the Obama Presidency???

More and more Americans are growing weary of this President and his policies. He is more an arrogant Professor than the leader of the free world. He will be able to improve his golf game beginning in January 2013. Like two failed


Democrat Presidents before him, Mr. Obama will go the way of LBJ and decide not to seek another term, announcing his intention to spend more time with his family. Or he will be hustled away in a landslide victory for his Republican opponent, similar to Carter in 1980. The writing is clearly on the wall.

Note to the Honorable John Boehner, M.C.

Freezing spending at 2008 budget levels is unacceptable. Meaningful cuts are the greater necessity. Begin by eliminating and/or slashing whole departments. Such action will be the only way to secure our nation from economic ruin.

Monday, March 15, 2010

Political Musings v3

Schaumburg Drive-By


This week’s drive-by shooting in Schaumburg, a relatively quiet suburb Northwest of Chicago should be a clarion call for tougher sentencing for handgun violence. What should come with a conviction of “the unlawful discharge of a firearm, with intent to harm” is a minimum 25-year sentence with no parole. That should be a strong enough deterrent to the gangbangers, criminals and crooks who seek to hurt decent law abiding citizens here in Illinois.

Presidential Race 2012

Most of us look forward to the November elections this year where we will be able to vote out the rascals who have been part of the economic mess our nation finds itself in. Immediately thereafter there will be many that will be jockeying for position for the 2012 Presidential campaign. I will be looking for a candidate, who as President will have the chutzpah to offer a balanced budget with wholesale cuts to specific departments. He or She could then present it to Congress during a State of Union Address as follows:

“Distinguished Supreme Court Justices, Vice-President, Senators, Members of Congress, ladies and gentlemen:”


"The State of our Union is fair. We can do better! Tonight I am submitting my budget and governmental re-organization plan for your consideration. In it, my administration has provided 2500 specific cuts to get our nations budget in balance. Additionally, we have provided ten specific tax cuts to stimulate the economy."


"This budget will provide a solid foundation toward helping the United States of America retain its singular position as the beacon of Free Enterprise in the World."


"Thank you, God Bless you and God Bless the United States."

With that, the President would walk down from the rostrum and into the crowd of dignitaries and begin fist bumping the Republicans, Libertarians, and pro-growth Democrats.

Spending Limitation Amendment

The great Indiana Congressman Mike Pence (R-IN) along with the solid free-market Congressman Jeb Hensarling (R-TX) have introduced an amendment to the US Constitution that would limit federal spending to 20% of economic output. This is a terrific idea that would need to be ratified by 34 states after passage by 2/3 of both the US House and US Senate. This Spending Limitation amendment would constrain the legislative branch from its profligate spending.

Recent Letter for the US Census Bureau

Did you get the letter from the US Census Bureau announcing that the 2010 Census form will be arriving in the mail?? I know the US Post Office is hurting, but what a waste of money. Another question, shouldn’t the official language of the United States be English?? This Census form letter advises people to go to the US Census Bureau web site in several different languages. Ridiculous!

Sunday, February 7, 2010

Four Illinois Reforms

The Illinois primary election has all but concluded and still there is not a declared victor in the race for the Republican nomination for Governor. As provisional and absentee ballots are fully counted, a winner between State Senator Bill Brady and State Senator Kirk Dillard will emerge. It is more than likely that this will be a Republican year and the new governor will have significant challenges before him. There are four reforms that he should work on to make a better Illinois.



Illinois Pension Fund Reform
During the Republican primary campaign much was said and written about Illinois pension fund reform. There are too many people that have wallowed in the public trough throughout their adult life only to retire with bountiful benefits on the taxpayer’s dime. This has to end. Double dipping and layering of pension benefits must end if Illinois is to get back to fiscal sanity. The system must be reformed. Beneficiaries should only get 75% of their average public earnings as a state employee. The politicians have gamed the system and are guilty of taxpayer abuse.


Forensic Audit of State Expenditures
A forensic audit of all state expenditures is needed. This was one of the hallmarks of Adam Andrzejewski’s terrific campaign for the Republican nomination for governor. The new governor ought to heed his advice. Taken a step further, he ought to appoint Mr. Andrzejewski as head of a commission that can study state spending and make recommendations on cuts that have to be made as well as finding greater efficiencies in state government. Think the Grace Commission during the Reagan era. It made thousands of recommendations to root out governmental waste and fraud on the federal level. An “Andrzejewski Commission” on the state level could do the same.


Citizen Legislature
This is an idea whose time has come. The great political columnist and talk show host, Thomas Roeser, floated this idea in a recent column. It makes superb sense. My political education was received in the tumbleweed landscape of New Mexico politics. In New Mexico they have a citizen legislature. That is to say that legislators serve part-time and have regular occupations. During election years (even numbered years) the legislature met for 30 days. In odd numbered years the legislature met for 60 days. The interesting facet to this was that if a piece of legislation did not gain passage by both chambers, it died. Prompting the bill sponsor to introduce it in the next year. At the time legislators received only $75 per Diem for legislative matters. Illinois ought to dump the full-time legislative process and begin anew with a part-time legislature. When it is not in session we will all be safe.


Judges Should Be Appointed
This past primary season we witnessed a number of television ads touting the judicial temperament of judges running for the appellate court. I found this demeaning. The Governor should appoint Judges at this level and above. Local judges could continue to run for office. This was a heated discussion during the founding of our nation. The new governor should engage our modern day aristocracy (the legal community) to figure out away this can be achieved. One only has to look at the election of the democrat’s Scott Lee Cohen to the nomination of Lieutenant Governor to see that the voters do not have the necessary time to study judicial nominations. Let the legal community provide judgeship recommendations to our Governor.


Aside from the tremendous budgetary issues a new Governor will have to face, he will need to move forward on a number of reforms to create a solid economic environment here in Illinois. Our new governor should also consider the four reforms above.











Tuesday, January 26, 2010

Pondering the February 2nd Illinois GOP Primary

The State of Illinois has almost deeper problems than the good old USA. We are a week away from the GOP primary on February 2, 2010. As the euphoria wears off from the Senator-elect, Scott Brown, victory in Massachusetts, the Illinois GOP has some huge mountains to climb before that same type of victory can be duplicated here. Just as in Massachusetts, there is a growing movement that seeks to throw out the incumbents during this election cycle. To a certain extent, I agree. My sentiment is that we should follow in the footsteps of our fellow Americans in Massachusetts and throw out the establishment within the party brands. It is time to send the old guard on a barge down the Mississippi River into the delta where they can retire in splendor to spin yarns about election battles of years past, won and lost. With that thought, here is where I have cast my votes (through early voting) for contested primary races.



Governor: Adam Andrzejewski
He is an entrepreneur who has met a payroll and is intent on shaking the Springfield combine up with new ideas. He is NOT part of the modern day aristocracy, a lawyer. To those who say that he is not experienced enough is a true canard. Anyone who puts together a successful business enterprise is quite capable of running Illinois State Government. Adam is such a person. As Abraham Lincoln once said “The dogmas of the quiet past, are inadequate to the stormy present.” With that in mind, it is time to throw out the old and bring in new, fresh leadership to dramatically change state government.


Lieutenant Governor: Jason Plummer
Young and full of energy. Just the type of person that can assist the Governor’s team in weeding out wasteful spending and bringing in fiscal sanity to an over bloated state government.


U.S. Senate: Patrick Hughes
We are on the verge of an election revolution across the United States. He would joint the conservative block in the U.S. Senate and work for additional tax cuts and reduce government spending.


U.S. Congress—14th District: Randy Hultgren
He is the better of the two GOP candidates in replacing Congressman Foster.
More seasoned than Ethan Hastert, Hultgren will represent this district well. He most assuredly will take a stand against the porky earmarks that Congress has attached to legislation for the last decade.


State Comptroller: William Kelly
He would be a valued member of a GOP team that will shake up state government and push for transparency. Not to mention he could add a little pizzazz to the overall GOP ticket.


State Senate—25th: State Senator Chris Lauzen
Part of the fab five elected to the state Senate in the 1990’s. He has always been responsive with his constituents. You can count on Chris to cut through the budget nonsense and work with a new Republican Governor to get the State of Illinois on firmer financial footing.


While I have already voted, I encourage you to request a Republican ballot in this Tuesday’s Illinois Primary and exercise your franchise.

Monday, January 11, 2010

CUT TAXES NOW!!

December’s jobs report was not good. With the unemployment rate still stagnate at 10%, the economy is still sputtering. A number of labor economists point to the real unemployment rate sitting at 17% to 20% when you include discouraged workers and the under-employed.


To add to this weak situation, larger firms like United Parcel Service (UPS) have announced significant layoffs forthcoming. UPS can be considered an indicator of how well the economy it doing. If package shipments are up it’s a good sign that the economy is improving or robust. Currently, it does not look good.

The Keynesians in power seek to push through another stimulus package. President Obama is emphasizing “green jobs” as part of that package. The first stimulus did not work very well. What makes them think a second one will? It won’t.

In order to effectively stimulate the economy, CUT TAXES NOW!

To those who will argue that a tax cutting policy will only add to the deficit, phooey. Perhaps in the short run that might be the case, but in the long run the revenues will increase as job growth and income growth rise as a result of significant tax cuts.

Tax cuts worked during the Kennedy administration in the 1960’s. They worked during the Reagan administration in the 1980’s. They worked during the Clinton administration during the 1990’s. Even the Bush tax cuts helped an economy mired in recession at the start of this century.

Four simple tax cuts are urgently needed now.

1. Cut the payroll tax (FICA) to 5%. Employees have this tax taken out of their paycheck. A cut would put more money in their pocket for saving and spending. Employers pay this amount too. A cut would free up more cash for their business operations.

2. Spread the Marginal Tax rates for the Federal Income Tax. Make the adjustment retroactive to January 1, 2010 allowing for more take home pay. The rates should be adjusted as follows:

Rate-- Single Income-- Married Income
10%-- Up to 20,000---- Up to 40,000
15%-- 20K to 45,000-- 40K to 90,000
20%-- 45K to 90,000-- 90K to 180,000
25%-- 90K to 180,000- 180K to 360,000
30%-- 180K and UP--- 360K and UP

3. Cut the Capital Gains Tax to 10%

4. Reduce taxes across the board for small business owners.

All of these tax cuts taken together will provide plenty of capital to get the economy rolling again. Spending will not. It is through economic growth and income growth that produce the revenue stream to retire government debt. The alternative would be the Keynesian exacta of Death through Taxes.

Wednesday, January 6, 2010

Mr. Steele Needs New Advisors

I have a great deal of respect and admiration for Michael Steele, the GOP Party Chairman. His recent pronouncements that it is unlikely that the Republicans will pick up enough seats to gain control of the US House of Representatives, is mind boggling. Mr. Steele is a smart man. Could it be that he is just gaming the media? It would not surprise me. Grab headlines in the dead tree media, on the toob, and over the digital media space with a view that runs counter to the conventional wisdom. Play the expectations game. Fire up the Republican base counting on them to prove him wrong. Very interesting strateegery.


More likely, he has a staff of Potomac politicos that don’t wander too far from the beltway. Out here in the heartland, the people are greatly upset with the politicians in Washington, D.C. Both the Democrat and Republican brands are deeply tarnished. Should congress continue to ignore the wishes of the people there will be electoral revolutions at the ballot box come November 2, 2010.


Mr. Steele needs to fire his current crop of political advisors, as this is not the first time they have gotten the GOP in hot water through their silly advice. Remember the “litmus test” trial balloon that was floated over the summer? They promptly removed from discussion. There were ten points which I list below, annotated of course.

(1) We support smaller government, smaller national debt, lower deficits and lower taxes by opposing bills like Obama's "stimulus" bill;

Yes. I recall during the Reagan area, former Congressman Manuel Lujan, Jr. (R-1st-NM) running ads in which he stated, “We need to move to a smaller, leaner government.” This is a very good thing.

(2) We support market-based health care reform and oppose Obama-style government run health care;

Yes. Free Market competition will produce lower costs.

(2) We support market-based energy reforms by opposing cap and trade legislation;

YES. Incorporate the “Pickens Plan” into any energy plan.

(4) We support workers' right to secret ballot by opposing card check;

YES. Why give the Big Unions more political power and the opportunity for retribution to those who do not support them.

(5) We support legal immigration and assimilation into American society by opposing amnesty for illegal immigrants;

A qualified NO. Protect our borders. Revise current immigration “quota’s”. Reform the visa granting process. Provide a process by which those already in the country can obtain citizenship. The Fed’s lax policy has led to the illegal problem and they need to be held accountable for it. Federal Prisons for those convicted of crimes.

(6) We support victory in Iraq and Afghanistan by supporting military-recommended troop surges;

YES. With a change in overall strategy. No more “Nation Building”. Like the Israeli Mosad, hunt down the terrorists and give them a dirt bath.

(7) We support containment of Iran and North Korea, particularly effective action to eliminate their nuclear weapons threat;

YES. If we fail to achieve results with respect to Iran, Israel will act. We must engage fully with China to get Korea to back down.

(8) We support retention of the Defense of Marriage Act;

YES.

(9) We support protecting the lives of vulnerable persons by opposing health care rationing and denial of health care and government funding of abortion; and

YES. Without Life there is no future!

(10) We support the right to keep and bear arms by opposing government restrictions on gun ownership.

YES. Furthermore, we need conceal / carry in Illinois.

While a litmus test sounds appealing, all it produces is a bunch of clones. A more diversity of opinion generally produces great ideas that can move the country forward.


Mr. Steele needs to spend less time along the frozen Potomac with his political consultant friends. He needs to venture into the heartland and really see what is on people’s minds. He could then see that it is possible that the Republicans could pick up 47 seats during this years midterm election. This would give the GOP control of the house (225 seats) and the Democrats will once again be in the minority (208 seats).