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”.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Monday, November 8, 2010
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.
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.
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.
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.
Monday, December 21, 2009
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.
P9FN9R57XG4C
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.
P9FN9R57XG4C
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