Saturday, December 24, 2011


The latest statistics revel that 53% of Americans pay all federal income taxes. Not only is this a small majority it is an alarming wake up call.

There is a clear choice in the next election no matter who the Republican candidate. The choice is between an entitlement society or a merit based society. The entitlement worshipers believe in a Keynesian approach to economics and a concept called "social justice".

First let us look at the economics. Obama and other liberals believe that if the government gives people money (let's say a $600 'tax credit') the recipients will stimulate the economy by spending that money resulting in more production, more jobs, and therefore, more employment. They believe the government produces economic growth through stimulating the economy.

The truth is the government produces nothing. It just redistributes. The $600 the government in the above example gave away came from producers. The government took the $600 out of the economy and redistributed it to someone who, in effect, is mooching off the producers. Again, redistribution takes from producers and gives to moochers. It is a zero sum game. And that is not he worst part of government stimulus.

Look at the incentives created by redistribution. The moocher is incented to not produce and to rely on the government for more handouts (the moocher is entitled to compensation rather working or not, health care, food, housing, education, childcare, etc.). Businesses are even created to sponge off the moochers who are sponging off the producers. Producers are incented to produce less (there are not rewarded for MERIT) since the government takes their production and gives it away to moochers. Bottom line, both moocher and producer are incented to work less (THE MERIT BASED SOCIETY IS DEAD). This is why socialism fails time and time again even though it appears so appealing to moochers, and of course, to those who want power to rule over moochers (unions, welfare pimps, many lawyers, big government capitalistic cronies like GE/green energy gurus/Warren Buffett, and socialist politicians).

Let's break this down into a simpler example. What if there were two farmers, and only two, in an economic market? What if farmer A decided to retire and draw unemployment while farmer B continued to work? Where would the unemployment come from? (I hope this isn't getting too complex!) It comes from farmer B, right? And how about incentives? Farmer A has successfully, at least for a little while, become a MOOCHER. Farmer B, meanwhile, has lost all incentive to work hard as a PRODUCER since his extra effort has no MERIT BASED REWARD and is redistributed to farmer A. Doesn't work, right? This economic market will not continue to grow and prosper. And if it doesn't work on a small scale like this example just guess how much it doesn't work in a complex $3.5 Trillion economy like the US (3Q US GDP growth was pathetic at 1.8%). Or how about worldwide? Just look at Europe. The MOOCHERS are rioting in the streets because their ENTITLEMENTS are threatened. Meanwhile, the entitlement pimps claim a merit based approach is just plain greed.

Now let's look at this thing called "social justice" since it is used as justification for most entitlements. Just plain old "justice" means to be fair in making judgments based on facts and the truth. Justice favors no one and treats everyone equal. To put any descriptor on the front of justice is to attempt to sell "injustice". It is simply used to favor someone or some group. "Social Justice" in most cases is an attempt to redistribute or take from one group and give to a "favored" group. This is theft whether it is done by a blindfolded scoundrel in an alley or by Washington politicians doing the biding of a majority of voting moochers.

Liberals use the "Social Justice" theme to favor their voters. These voters may be black, Hispanic (anything but white even though the hypocritical Liberal elite is mostly white), gay, lesbian, transgender, female (anything but male even though most of the hypocritical Liberal elite leaders are white), unemployed, illegal, members of labor unions (anyone but the producers), etc., etc. The size and number of groups varies based on the number of votes required by the pimping politicians. Liberals invented "social justice" when the term welfare became unpopular (remember Bill Clinton double crossed them). Social justice arguments are aimed at those 47% that don't pay taxes, and the Liberal elite who live off them.

So who could be against "social justice"? The answer is simple. Anyone who believes in "justice". These would be most of the 53% that are producing and paying taxes.

While we all agree there are real situations where true welfare assistance is needed in our society. This assistance is provided generously by Americans. It is clearly best handled at local levels whether by churches, local care organizations, or local government. Big government entitlement pimps are doing everything possible to drive local organizations out of the practice of assisting those in need. This is criminal, and what is really sad, it hurts those in need the most. No one has suffered more by the entitlement society than minorities and the poor.

Think MERIT BASED IN 2012,


Friday, December 23, 2011

What A Shameful Week In American Politics

This past week the American federal debt rose to $15.2 trillion, a big milestone.  Why?  Because our Gross Domestic Product (all the goods and services this country produces) is $15.1 Trillion.  Yep, our debt is over 100% of our GDP.  That is only supposed to happen in places like Italy and Greece.  Maybe France.

But not worry, Americans.  Obama has saved our economy by extending the "Payroll Tax Holiday".  Obviously that is the case are the media would not have given this legislation such attention.  If fact all the smart folks say that Obama was so brilliant in how he handled this major crisis that it just might insure his re-election.  Must be a really big deal, huh?

Let's take a look.  The law extends the payroll tax cut, set to expire on Dec. 31, through Feb. 29.  That means workers will only pay 4.2% on the first $110,100 of their wages into Social Security. That is 2 percentage points below the normal 6.2% rate.

If the payroll tax cut is extended for all of 2012 -- which both parties say they want and will work to do when they return from their Christmas recess -- workers would reduce what they pay into their retirement funds from several hundred dollars if they're low-income to more than $2,000 if they earn six figures.

Estimated cost of a two-month extension: $21 billion.  If extended for one year:  $126 billion will not be available for social security funding.  Ain't that great!

The proposed extension of the payroll tax holiday is touted by the idiot in the White House to prevent a hit to our anemic economic recovery. The White House and members of Congress have sold the end of the holiday as a tax increase on the middle class. In fact, this Social Security payroll tax is actually an investment into one’s retirement account. Promoting continued reduced payment into Social Security is the same as telling folks to borrow from their retirement and spend the money now.  Obama used the story of a woman who said if she did not get the $20 per week "tax cut" she would not be able to have pizza with her daughters each week.  She is happy to trade off her retirement for pizza?

Shame on any citizen who buys into the idiot pitch that the opponents of extending this underfunding of future security just want to increase tax rates for the middle class. Greater shame on those immoral politicians who make that claim. Similarly, replacing the billions of dollars (approximately $126 billion/year) that don’t come to Social Security from workers paychecks by funds the government has to borrow to cover its huge deficit is bad policy. Surely there are better initiatives to support economic growth (how about permanent tax cuts paid for by reduced government spending?).  Bottom line the politicians continue to rob our social security system to buy votes.

The passed legislation also extended jobless benefits: Emergency federal unemployment benefits, also scheduled to expire on Dec. 31, will be extended through February. Without that extension, an estimated 1.8 million jobless workers in January would have run out of benefits, which average $296 a week.  Obama claims this extension some how creates jobs by giving the unemployed money to spend.

With the dramatic decrease in unemployment from 9% to 8.6% you would think we will not need this provision.  Oh, I forgot.   The reduction in unemployment numbers were because of the way we count.  Over 300,000 people left the workforce last month and only 120,000 people took new jobs.  Since we don't count those that left the workforce our employment percentage goes up and unemployment percentage goes down.  Got that?  Obama doesn't get into weeds like this.

Estimated cost: $8.4 billion.

Next comes the extension of  the "Doc fix": The new law prevents a scheduled 27% cut in payments to Medicare physicians for the first two months of next year.  The American Medical Association has noted that even with the regular intervention by Congress, Medicare payments lag 20% behind the cost of caring for seniors. 
Many in Congress would like to pass a permanent doc fix, but the biggest stumbling block to doing so is figuring how to pay for the estimated $300 billion cost over the first decade.  So the politicians just sneak it by the public one little piece at a time.  This is a perfect example of what happens when the government takes over an industry. Medicare and medicaid are a mess, and Obamacare is even worse. The continuation of these programs as they are will doom this nation to bankruptcy, and soon.

Estimated cost: $3.6 billion.

The last item in the legislation is a congressional push to force the President to expedite his decision on whether to allow construction of the 1,700-mile Keystone oil pipeline.  The Obama administration has said that if forced to make a decision before the election Obama will decide against the pipeline.  Why doesn't Obama want to make a decision now?  If he approves the pipeline HE LOSES HIS CONTRIBUTIONS FROM  ENVIRONMENTALISTS.  If he disapproves the pipeline HE LOSES HIS CONTRIBUTIONS FROM THE AFL/CIO LABOR UNIONS.  Surprise, surprise it is about idiot in chief's re-election.

And of course the pols argued and argued about HOW TO PAY FOR THESE EXTENSIONS.  What did they settle on?  The law calls on mortgage financing giants Fannie Mae and Freddie Mac to charge lenders more to guarantee repayment of new loans. Fannie and Freddie play a central role in destroying the housing market by purchasing mortgages from banks and bundling them into mortgage-backed securities (and getting taxpayer bailouts when their corrupted strategies don't work).  New housing starts in the US are at an all time (since they started keeping records in 1963) record low in 2011 at about 325,000.  To economically recover we need them to be over 700,000.  So let's raise the cost of buying a new home so a lady can take her daughters out to have pizza.  Makes complete sense doesn't it.

Estimated to raise: $36 billion over 10 years.  Note how we always spend the money now and pay for it over 10 to 20 years.

What didn't make the cut?  Not every expiring tax provision is accounted for in the new law. Left out was any action on a host of other "temporary" tax breaks that expire this year. These include the research and development credit for businesses and a state and local sales tax deduction for individuals.

Also left out was the usual fix to protect the middle class from getting hit by the Alternative Minimum Tax when they file their taxes for 2012.  I don't know about you but every year I am unable to write off my mortgage interest and some other deductions because the AMT kicks in.  Enough said about the big tax loopholes for the rich.

And then to top things off.  Obama's media is quoting "unnamed sources" who are wanting to fire John Boehner, Republican Speaker of the House.  I have a better suggestion.  DITCH MITCH!  Fire Mitch McConnell, the Republican Senate Minority Leader, who sided with Obama, Reid, and Pelosi against the House Republicans in supporting this insanity.

Bottom line:  What a shameful week.

Think about it,


Thursday, December 22, 2011

The Idiot In The White House

I just watched an idiot on television. He was speaking to the American Public from the White House. He said that most Democrats and Republicans in the Senate passed a bill to stop a tax increase on 160 million Americans that he would sign. He said it is being held up by a faction of Republicans in the House. The idiot in chief said the average American would have their taxes raised by $1,000 on an annual basis. The idiot then said that would result in taking $40 per week from their paychecks. Any school child would tell you that $40 per week is over $2,000 per year. This guy doesn't even have his math right, much less the facts.

This President did not mention the difference between the House and the Senate is the House wants to pass the Payroll Tax Holiday for ONE YEAR VERSUS THE SENATE VERSION OF TWO MONTHS. The President shamelessly claims he and the Senate want to extend the tax holiday and the House does not. This is completely untrue.

What is the truth?

The first truth is the "Payroll Tax Holiday" is an Obama scheme to get votes by weakening our Social Security System which is going bankrupt. This ploy weakens Social Security, increases our national debt, and creates a tax cut that has to be taken away at some future date. Additionally, this creates no new jobs whatsoever. No employer is going to add employees because the employee gets an $80 per month tax holiday. Also, hidden in the rhetoric is an extension of unemployment required because of the Obama economy. Also, hidden is the "Doctor's Fix" which must be passed periodically because Medicare and Obamacare are so screwed up. Overall these provisions increase our national deficit by ONE QUARTER OF A TRILLION DOLLARS.

The second truth is if the President and Congress want to cut taxpayers taxes they should do it permanently, and they should offset that tax cut by cutting government spending as not to increase the deficit. Social Security deductions should not be the means for a tax cut. A twelve month extension means we have to face the music by reinstating the Payroll Taxes at the same time the Bush tax cuts expire. Both of course, come due after the 2012 election.

The third truth is the reason this issue is getting so much press time is the Congress once again has put off doing its business until the 11th hour. The Democratic controlled Senate has not passed a budget now for 3 years, and obviously will not pass a budget until after the 2012 election. In fact a Democratic controlled government may never pass another budget. This same Senate put off extending the Payroll Tax Holiday until the last day they were in Washington before they left for a 30 Holiday vacation. Meanwhile the Payroll Tax terminates January 1. The bill they passed for a meager 60 day extension does not give employers time to change their payroll systems before January 1, and then requires them to change again possibly after 60 days. If the Senate had passed their bill earlier they would have plenty of time to engage the House in negotiations to get a quality piece of legislation instead of the 60 day hodgepodge they approved.

The fourth truth is the only bigger idiot than Obama and Reid is a Republican. Senate minority leader Mitch McConnell led his Republican Senators into a massive political trap for Republicans by voting for the 60 day mess, and then leaving Washington while timidly suggesting the House Republicans should drop their principles and go along as he and his colleagues did.

The fifth truth is the American electorate can be tricked by political maneuvers as practiced by Obama, Reid, and Pelosi and supported by the main stream media. They pull political stunts like the Payroll Tax Holiday (robbing social security funding) while claiming they are only putting $40 per week (bad math) in needy American pockets only to be challenged by a fragment of radical Republicans in the House who are only interested in politics. Bottom line: The electorate has been convinced the Republican led Tea Party Radicals are only interested in political games while Obama and his democrats are only interested in cutting taxes for middle class Americans. In other words BLACK IS WHITE, AND WHITE IS BLACK. UP IS DOWN, AND DOWN IS UP.

Interestly the press doesn't talk about "truth" anymore.  They talk about sophisticated things like "optics".  I call these "deceptions".

Don’t think about this too much because it will drive you crazy,