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Friday, October 30, 2009

A Liberal Believes the Constitution impedes their progress

Taken from the Media Research Center: Newsweek Despairs 'Checks and Balances' Impede ObamaCare
By: Brent Baker

'Anna Quindlen defended President Obama from liberal complaints he's not enacting liberal policies fast enough as she explained that he's “saddled” by the “incremental” constitutional structure, but she fretted: “Universal health care is the area in which the gap between what's needed and what's likely is most glaring, and the limitations of the president's power most apparent.” Not hesitating to share her opinion, Quindlen despaired:
It is dispiriting to watch the cheerleaders of American exceptionalism pound their chests and insist that our citizens do not need the kind of system that virtually every other developed nation finds workable....
[workable for who? Socialist?] As elected officials posture and temporize, families are bankrupted by health-care costs and forgo treatment they can't afford. Statistical measures of the national health, from life expectancy to infant mortality, continue to be substandard [that my friend is propaganda]. And because we have that system of checks and balances, in which movement usually happens slowly and sporadically, a great need for sweeping reform [she means doing away with a republic democracy] may be met with a jury-rigged bill neither sufficiently deep nor broad, which perhaps someday will give way to a better one, and then eventually a truly good one.Framing her piece in the November 2 edition of the magazine, “Hope Springs Eternal: Assessing a Young Presidency,” Quindlen proposed: This is a country that often has transformational ambitions but is saddled with an incremental [Constitutional] system, a nation built on revolution, then engineered so the revolutionary can rarely take hold. Checks and balances: that's how we learn about it in social-studies class, and in theory it is meant to guard against a despotic executive, a wild-eyed legislature, an overweening judiciary. And it's also meant to safeguard the rights of the individual...But what our system has meant during the poisonous partisan civil war that has paralyzed Washington in recent years is that very little of the big stuff gets done. It simply can't.' [my comments in brackets]


This a liberal. She thinks that the constitution is getting the the way of the President doing his job. Huh? That is what it is suppose to do. It is intented to prevent people like Obama from taking over this country like Hugo Chavez did his country of Venezuela. To me this person and the people like her are enemies of the state. They were born in America (maybe?) but they do not like the America we grew up in. They do not like the way our government was created to operate. This is treason. Ask any of the liberal leaders where do they get the Constitiional authority to cram this healthcare bill down our throats and they can't answer you. There is no authority to do what they are doing. They are trying to take over the country illegally, usurp the Constitution that they swore to defend and establish a different form of government without our consent. It is time to arrest them, try them and put them and everyone who physically supported or openly encouraged them (TV, Newspapers, etc.) behind bars. If Obama signs this bill then they have knowingly and willingly acted in an unconstitutional behavior and should be removed from office and punished.

Nubby

Thursday, October 29, 2009

The Real Solution to America's Problems

The early fathers gave us a free Republic and told us to “keep it if we could”. We are not doing so well are we? Another founder stated that our form of government was “for a Christian people and would work for no other”. Five of the early states prior to the Federal Constitution had state constitutions that required their leaders be Christians. This was easy to do at the time with so much of the population being Christian. Term limits were not required for leaders who met these standards. These were men who could pretty much be trusted to put God and country first.

Now Christians (real ones) are in the minority. We got our priorities backwards and now we are paying for it. A godless people require endless rules and laws to dictate how they should live. A Christian people do not need this because they have the law of God written in their hearts. Here we are trying to do what the godless do, makes rules and laws to compensate for our lack of a Godly life and fulfilling God’s will. We are all called to lead people to Christ, to teach them the meaning of being in Christ and eternal life with Christ. Our failure to do this has resulted in the government we have today. Many want to rework the Constitution to fix the problems, clarify the areas that have be abused by the left. Before we rewrite or add to the Constitution we need to first turn back to God, repent and learn to do His will and He will restore our country. Nothing else here is going to work.

The current problem in the USA is not all the socialistic, anti-God stuff going on. That is the symptom of the real problem. The problem starts with Christians who haven't done what God has called them to do. We are to make disciples. We are to teach others who are also willing to teach and pass on the teachings of Jesus. We are to win the world for Christ not hand it over to Satan and his disciples who are willing to do anything to be in control. If we are outnumbered by non-christians then we have failed to do what God called us to do.

If we were winning other to Christ, teaching them what it means to be in Christ then this country would still have solid Christian values. As a majority we would have Christian morals and finally true Christian leaders. There would be no debate about out of wedlock children, abortion, homosexuals or otherwise. By our own failure to do what God has called us to do we are reaping what we have sown and now we are crying about it. It is time to repent and turn from our selfish, comfort loving ways and get into God's program. Then God will deal with this abomination (Obamanation) in response to our repentance and turning from our wicked ways. We need people to be discipled (win them to Christ and teach them) and those willing to disciple (leaders, teachers, men of faith). Most of all we need to understand who we are in Christ and God's purpose for our lives. American Christians apparently don't want to know because it will interfere with their comfortable lifestyle. We need to pray for revival from God (not the annual tent meeting kind created by man). Pray for the power of God to fall from heaven and fill His people with the desire to do anything necessary to make this nation a nation of true Christian people. The Bill of Rights and the Constitution are good documents but they don't replace the people. The people need to change, repent, seek God and then we will have all our freedoms once again.

Prophets of doom think it is the end of the world. Lets repent first and then see what God will do. Maybe it is not the end yet. I would hate to stand before God and find out He wanted us to turn the country back before He returned and we failed because we thought it wasn't worth trying.

Nubby

Tuesday, October 27, 2009

The real results of taxing a business

The recent article "BEHIND NEW YORK'S SMALL-BUSINESS DROP" shows the reality behind taxing business. New York's democratic mayor increased fees and property taxes on nearly everyone and the end results is many business are shutting down. Some are trying to sell out and move. The old adage "whatever you tax you get less of it" still applys. Tax small business, especially in a recession, and they have no way to make up the difference. They can't raise prices because nobody will buy. They can't lay off people because then the work cannot get done. If they do lay off people then the quality of work will suffer. So it is easier to just shut the doors and quit and get in the soup kitchen line like everybody else.

When a business closes then the property value drops, rent space goes vacant. The property owner has less income and the city get less tax money. Property values drop and the city get less money. The business is no longer selling anything so there is less sales tax collected and the city get less money again. An intelligent person would think that if taxing businesses becomes a losing endevor then maybe the city should stop and try something else. If tax increases decreases small businesses then maybe you should try a tax cut and see what happens. Duh!

I stated in a previous post that a tax cut can actually increase government revenues. Maybe its time for New York to do a reality check and quit doing what doesn't work.

Nubby


See the article at:
http://www.ncpa.org/sub/dpd/index.php?Article_ID=18603

Sunday, October 25, 2009

March 2009

Dealing with A deficit



To most common sense people the way you deal with a deficit in your income is to first quit spending. Especially quit spending money you don’t have. You quit doing things that cost money like going out to eat at expensive (or any) restaurants, going to movies and taking trips you don’t need to take.

Second you start replacing necessary things with less expensive item, like eating hamburger instead of steak. You buy regular foods instead of the higher price organics. You use coupons to purchase necessities like toilet paper, food staples, etc.

Third you start unloading things. You have a yard sale. You put your third car up for sale. You put your gas guzzler on sale. You even put your fishing boat up for sale when you really get desperate.

This is common sense stuff you can do to make it through difficult times. You do whatever it takes to economize and save money until good times return.

Our government does not have this ability. The thing they need the most and have yet to create is a Senate and House Committee of Common Sense. The Committee of Common Sense would see the obvious things that government should and can do.

The Committee of Common Sense would find ways to eliminate spending, like buying nothing new for any non essential government department. Of course every department in the government thinks they are non-essential. Now there are some departments that we know are really essential, like the FBI, Flight Controllers and so on. But there are many that are completely non-essential. The Committee of Common Sense could propose shutting down all suspected non-essential departments for one month. The department that receives the most complaints from citizens (not employees calling from home) for not being open gets to stay open the next month. The bottom 25% of the departments receiving little or no complaints at all will be closed. If more than 25% receive no complaints for being close then they all will be closed and we will save approximately $55 billion dollars a year in salaries alone.

The Committee of Common Sense would see all those empty buildings not being used by the closed non-essential departments and would put them up for sale immediately. All the money from these sales would go back into the Social Security fund which was robbed by the non-common sense arm of the government, thus giving back to the people the money they were told would be going into a trust fund which in fact could not be trusted because it was run by the government.

Now The Committee of Common Sense could really begin to whittle down the rest of government waste. Announce a 5% across the board personnel cuts in every department. This will be to eliminate any deadwood and lazy individuals that do not produce any real work. As soon as that 5% is gone announce that there will be another 5% cut, of anyone who spend too much time talking, sloughing off, doing makeup (male or female) or any other non-productive activity. This is to strike the fear of God into them which the rest of us experience every time there is a down turn in the economy. Third The Committee of Common Sense should announce another cut will be coming soon. Now the remaining 90% of the federal workforce should be energized and adequately productive to do the work that the laid off 10% wasn’t doing anyway. This will save another $16 billion a year.

The Committee of Common Sense should now equalize the benefits and retirement programs of the government with the rest of the working force. Much of the excuse for having such benefits is that it is the only way to get employee to work for lower pay than what the public sector is receiving. I agree to some extent but for the holidays, extra vacation days, above reasonable retirement and job security that is not even comparable, only the laziest of people are drawn to government jobs not the higher quality workers who actually produce something of value.

Once when trying to hire a Veteran Administration nurse for a salary substantially more than what she was making with the VA, the private practice administrator begin to list all the responsibilities that went along with the increased salary. The nurse kinda paled thinking of all that work she would have to do in comparison to her same titled job at the VA, and then she slowly got up from the interviewer’s desk and said “I think I will stay where I am” and left. A job in the real world was too much for her.

A friend of mine took a government job after being laid off from a major corporation.  She was a very industrious person who was used to working hard for a full eight hours a day. After six months on the job she couldn't stand it anymore. The laziness, the people who didn't care about the quality of thier work or have any sense of urgency about it was driving her crazy. These are the ones who want the security, the extr holidays and benefits of a government job.

My own experience of dealing with government employees with the Social Security Administration, the Immigration Department (former name), the beloved IRS and of course The Transportation and Security Administration has proven that it is not drawing the highest qualified people to these job but the minimally qualified people who need the job security because they could not maintain a job anywhere in the public sector.

Enough of that subject. The Committee of Common Sense should recommend that we require taxes only for the necessities of the federal government. This would eliminate programs that the federal government would not have if they actually adhered to the Constitution. Eliminate the Department of Education. That is a local issue. Nowhere in the Constitution do I read that education is the responsibility of the Federal Government. It is therefore the responsibility of each individual State. If the state you’re in doesn’t do a good job you are free to go elsewhere.

When education is fully controlled by the Federal Government only people with a socialist mentality want to be in charge. They will try to dictate what will be taught in our schools (socialism) and thus destroy our current Constitutional, Free Enterprise system.

No more money to the Arts. There are enough evil rich (including liberals) out there to support all the arts needed if the artist is good enough to deserve it. It works in the music industry, books, TV and theaters. It should work for the rest of the artist too.

No more money to PBS TV or radio. They have enough marathon care-athons and gimme-athons to raise all the money they need. There are a lot of independent TV and radio stations that have to raise money and do quite well without government support.

The Committee of Common Sense should be able to understand that the economy is a living, growing entity. It is not a stagnant fix sum of money. Otherwise we would still be dealing with money limits from the Early 1900’s. The economy has grown, expanded and created all the new wealth needed to support all the people wanting to work and make something of their lives and for the lives of others. Set a goal to get the economy growing and reach its maximum growth.

The Committee of Common Sense should also see that like other countries (i.e. Ireland) if you lower your business tax rate to the single digits that economic growth will explode. Even with lower single digit tax rates the tax revenues have increased because more money is flowing through the system and the speed of money (the number of times money exchanges hands for goods and services) increases. Therefore all the money the government needs is generated off the ever increasing economy.

The United States could also grow if we reduced our tax rate to single digits or converted to the FairTax system of a sales tax which would remove all business taxes and put the burden on a retail sales tax, which is fair to everyone. I would expect our economy to grow enough to pay off this horrendous debt our current gum brained leaders are putting upon us. The only real solution to our current problem is not government spending but to create a positive atmosphere of open markets where growth is encouraged to the maximum. Without great growth and speedy growth in the economy we will never overcome this debt and it will destroy us. The United States cannot exist under such a burden.



Socialist should not qualify for public office



The Committee of Common Sense should also recognize that socialism is not the way to go. It is opposed to free markets, free speech and most of our Constitution. Many of the current liberal leaders have bought the pie in the sky version of Marxism that if government just takes control and unifies everything then we will have this wonderful utopia where everyone is equal and everyone has everything equal. It is fantasy. It only works on Startrek. It is the dream of 1960 dope smokers. It is the dream of college students who have no experience in the real world who sit around study halls thinking of what the perfect world should be. In the unreal world of their non-experience Marxism sounds like a perfect solution. In our case Obama hasn’t graduated from his freshman college fantasies. Many professors on campuses all over the US push Marxism as the way to shape the world. Those professors were the one sitting around in 1960 and ....... well you know.

In reality Marxism is a death wave. To make it work everyone must be on board. Everyone must buy into the system. To them it is so important to start teaching our children as young as possible (i.e. Bill Ayers, the hero of education) so they will be taught how to grow into the socialist system. That is what we are seeing now in today’s schools. It’s not about true education, it all about thinking, the way they want your children to think so their ideas of socialist fantasy will work. That is why they cannot allow conservative thought on school campuses. They have found how to control the main stream media and now they will find a way to quiet the opposition media. Free speech will be eliminated eventually unless we resist the socialist onslaught to our system of government.

The down to earth problem is not everyone will buy into their dream world. Not everyone is willing to give up their freedom and individualism, the kind of individualism that built great factories, the individualism that started companies with huge success and provided jobs for thousands upon thousands of people.

Then finally the worst of all is religion. Essentially Marxism is godless and requires man to worship man. We will be required to worship the government of man. The government shall be our god. It is no different than when man builds a statue of stone and then tells us to give it our homage. We should fall before this stone statue and recognize it as supreme. It will supply all our needs. It will tell us what we can and cannot do. It will tell us what is right and what is wrong. But instead of a statue it is stone buildings, bricks and mortar, steel and glass. The people contained with these buildings of worship are supposed to contain all the wisdom and knowledge we need. They will usher in the new age (is it Aquarius?), our utopia. What do Marxist do when people don't buy in to their ideas?  Oh yes, what about those pesky Christians and the conservative thinkers and those people who believe in freedom and choice, what about those? To truly bring about this wonderful new world they will be required to conform. In Russia and in China they also had to deal with this problem. The answer was simple to them, it was reconditioning camps to begin with and later, elimination. Communism/Socialism has killed over 100 million people since 1921. It may not be over yet. Communism is simply socialism with enforcement, socialism with an army. The easiest way to eliminate opposition and stay in power is to kill (eliminate) the ones who resist. That is the way it has always been and that is what will happen if we continue to allow this current regime to reign.

Now it is no different than when a super religious person begins to use government to force his religious beliefs on other. Marxism is a fantasy and in practice it is a religion for atheists and other. Its teachings should be treated as a religion and not be allowed to be incorporated in any part of our government or shape policy. If we make it though this period of literal enemy control of our government maybe we can make that change.

Therefore The Committee of Common Sense should ban anyone who supports and believes in socialism or communism from serving in office because you cannot swear an oath to the Constitution on one hand and the support a Marxist system that is directly in contradiction with it on the other. Yes we should have exchanges of free ideas in the United States. Yes we should have freedom of speech, but when a person begins to act out those ideas and wants to hold a position of power in our federal government to try to effect policy changes, that should be a no-no. If I acted out a plan to overthrow our constitutional government I would be charged with treason. I would be tried and executed. It is no different if you elected to an office. If your plan is to radically change and overthrow our form of government then you are a traitor and should be tried for it. Clear and simple.


The Downward step



In the immediate crisis’ we are now facing with the bailouts, the recession (that the media help to create), mortgage crisis, oil crisis (depending on the day of the month) and lending crisis, there is one overhanging thought that really bothers me. The democrats were basically responsible for this entire mess. They created the Community Reinvestment Act. They supported the lowering of standards to get loans for people who couldn’t afford loans and weren’t qualified. They resisted efforts by Bush and McCain in 2002, 2005 to increase regulations over Fannie Mae and Freddie Mac. When it all came crashing down they blamed too little regulation (when we wanted more), they blamed capitalism (when it was government intervention) and they blamed conservatives (with the media’s help to sell the idea) for the debacle they created. Our President says only government can save us now. But government was the original problem and is still the problem not the solution.

Now that Obama has taken over and with a sympathetic congress I fear the worst could happen. What if this debacle is what they wanted? For what they plan to do is logically the wrong thing to do, but they are going to it anyway, you have to ask why? Why continue doing things that only add to the problem (like going into more and more debt, destroying health care, etc.) unless you have another plan. It would seem to me that the lefties want this country to fail, why?

If our country went into such a terrible financial collapse under trillions and trillions of dollars of debt, with inflation and super unemployment to boot, it would create the worst crisis the country ever faced. (Karl Marx taught that socialist instigators should use crisis to effect change "Create a crisis if you have to" sound familiar?) Then our wonderful messiah president could step forward and declare that we are in a state of emergency, that the government needs control over every phase of the economy, small businesses, big businesses, banks, ballparks and every hot dog stands. Things will be so bad that we need to suspend the Constitution and declare a state of martial law to get things under control. The left wing Democrats in congress will cheer and 53% of voters, people who got stimulus checks but didn’t pay taxes will support it and we will no longer be America. In one sweeping move Reid and Polisi would create an emergency bill to supersede the Constitution and that would be it. Overnight we would become the Nationalist States of America run by the Supreme B.H. Obama.

This is not to far from how Hitler got into power. With Germany in economic disaster the poor, the unemployed, the dishearten workers had no problem voting him to be the supreme ruler over Germany and we know the rest.

I could see in less than two years, before the next elections, before we could have a chance to effect a change, we could have the Grand Supreme Obama, leader of the Nationalist States of America. Savior of the new world.

I am not an economist, but I did stay at Holiday Inn once

I also studied a little bit of economics many years ago and it was that particular study that changed my political views forever. I wanted to share a little of the principles I’ve learned for those who may not have had an opportunity to read or study a little of the basics. Others might do a better job explaining but this is my take on the subject.

Did you ever wonder what the “trickledown” effect is”? “Trickledown is a real phenomenon. It is going to happen whether you believe it or not. It can be good or it can be bad but it will happen to you. If you have a choice you want it to be good. Liberals mock the term as if it were some sort of disease or a bad ghost story because they want us to depend on a controlling government, but here a simple explanation.

The foundation of our capitalist economy is based on providing goods and services for one another. The productive worker produces something that another person needs or wants and in return the other person will pay for it out of their wages for which they provided some goods or a service for someone else.

Let me put it this way. On payday the production worker collects his check and goes out to buys goods or services from other people. Perhaps he will go out to dinner at a local restaurant, to a movie or shopping with his family. Perhaps he pays someone to cut his grass or wash his car. A portion of the money he spends goes towards the salary or wages of another person, the waitress, the gardener, the usher at the movies, the cashier at the grocery store or the clerk at the mall. Every dollar he is paid for his productive work and then spends is multiplied. It paid his wages plus it will pay a portion of the wages or salaries of other’s.

These people who received wages from his money will also spend money at the grocery store, the mall and other places so the money is again multiplied. A portion of what they spend will pay wages to more people. Over the course of time the dollar that was paid to the production worker was multiplied to pay a portion of people’s wages several times over. That one dollar earned and spent in the overall economy became two dollars in wages for many people. This is the “trickledown effect”. The more money I spend the more money is multiplied and passed on to others.

The same principle applies in reverse. Take away a dollar from the production worker and you removed a dollar not only from him but the people who would have received the “trickledown effect” from his dollar. Take away a dollar and you actually multiply the loss of a dollar in wages several times over. That is why it is said for every production job you lose, you will lose two or three service jobs. When one factory worker gets laid off two or more people actually lose their jobs. In a small town when a factory is closed the whole town is drastically affected by the loss. Many stores, shops and theaters may all close with it.

If you increase a workers’ wages his spending increases and the amount he spends is multiplied. For every dollar you add to his wages and you add several dollars to the economy. The economy grows and everybody gets a piece of the action. That brings us to the point about taxes increases and tax cuts.

When you cut taxes and give someone, anyone, more money to spend, then those extra dollars spent are multiplied as before and but now taxes are also collected on the multiplied dollars. As proven with the John F Kennedy tax cuts, The Reagan tax cuts and the Bush tax cuts, the revenue in tax collections actually increases when taxes are cut. The government had more money with tax cuts than with tax increases. The problem is they just keep spending more. In the Reagan years revenues increased twofold but congressional spending increased fourfold.

When you increase taxes on anyone, on a production worker, a white collar worker or even an “evil greedy rich” person, you remove a dollar from the productive economic system and its loss is multiplied two or three times over. A tax increase of a dollar removes the spending of that dollar from the economy no matter where it comes from, the rich, middle income or low income. It hurts everyone, beginning in your local economy.

The liberal mindset thinks that for every dollar they collect in taxes it produces one and one-half dollars in production. That is according to the Keynesian theory and I do stress the word theory (It is theory because it has never happened in the real world). In actuality the government does nothing toward real productive work and the results from previous tax increases show that for every dollar taken from citizens by taxation it produces about $0.80 of value, a net loss to the economy.

Liberals decry the trickledown theory as a hoax or smoke and mirrors. But the socialist tax collectors are actually using the same trickledown theory when they say they will create jobs by increasing taxes. Somehow they believe, when they take a dollar through the force of taxation, they can run it through a level of bureaucracy and waste and produce more than a dollar of value to the economy by giving it to someone who may produce nothing at all. This is not a practical working model for economic growth.

If an investor or a business is taxed, it is money taken away from businesses and that will lose jobs or wages as a direct result of the tax. When those jobs are lost then spending stops and the negative trickledown effect will take away even more jobs.

On the other hand a healthy tax cut will increase the spending of dollars and that money will be multiplied several times over. The production worker spends whatever he can because his wages limit his spending. The rich man spend whatever he wants because he has higher limits but either way the more dollars they spend will cause an increase in the economy and create more jobs and more money for everyone.

The rich man spends his money on a more expensive car, eats in finer restaurants, goes to upscale malls but he is still spending his money and it is still trickling down to the employees who work at the mall, the grocery store, the gardener, and the restaurants and so on.

A government stimulus versus a tax cut. The government stimulus package of 2008 didn’t really work because it was a short burst of income but nothing to follow it up (See WSJ article below). You can’t expand business based on a one time surge. Trickle down can’t create jobs with a onetime burst. You need a long term growth. A long term increase in spending dollars is needed for business to forecast a spending trend and then they will start expanding their businesses. A specific long term spending increase that will grow the economy for everyone is a tax cut for all who pay taxes. The rich, the middle class, everyone. Tax cuts do trickle down. We all benefit no matter what our income level.

You don’t want to tax someone’s money and take it away from them. You want them to spend it so it will multiply and everyone will have a share of it.

Taxing a business has a similar effect. In a small business it will mean less money is available and the owner has to cut expenses or raise prices. In hard times it is difficult to raise prices so they look in other areas to cut. Usually hard cost (rent, electricity, fuel) cannot be changed and suppliers will be passing on the taxes in their prices so the most flexible area to cut cost is in labor. You can cut back on salaries or in the number of employees. Now the employees have less to spend and some have nothing at all. Either way the dollars removed by a tax increase will have a negative trickledown effect. Everybody loses.

In general all business taxes are passed on to the consumer through lower wages or higher cost products and services. If a business sells a product for a dollar and he makes a 10% profit then he makes 10 cents. If his tax increased 10 cents then he can sell the product for $1.10 or make less profit. If he is competing for investment dollars he needs to maintain his profit margin or investor will go elsewhere with their money. So he is forced to cut cost (jobs) or raise prices. Raising prices may mean he will sell less because people can’t afford it. If he cuts jobs you lose. If he raises prices you lose. If he can’t sell enough to stay in business you lose. If you lower taxes then he can lower cost, lower prices, increase profit, do more business, retain investments and then add more jobs. It is really simply.

“The revenue cost of eliminating the corporate tax wouldn't be any more than their proposed $355 billion in new spending, and we guarantee its ‘multiplier’ effects on growth would be far greater. Research by Mr. Obama's own White House chief economist, Christina Romer, has shown that every $1 in tax cuts can increase output by as much as $3. “(Wall Street Journal 1/26/09)

The current stimulus plan proposes taking money from individuals and redistributing to others and that will “ripple out” into the system and grow the economy. When you look at the scheme what they are doing is taxing you, skimming some off the top to give to non-productive people (government employees, etc.) then slowly (depending on approval of projects) put the money back into the system and hope the trickledown effect is working. So the stimulus plan actually defers the working of the trickledown effect by processing the tax (a time consuming process) and giving back to favored groups the amount left over. After months the money begins to trickle to the rest of us.

If you have a tax cut today the money would begin to trickle down immediately and multiples itself right away.

Ideally we would pay taxes for only what we really need (the founder’s intent) and the rest would be for the people and businesses to have a robust economy. In a robust economy everyone who wants to work will have a job. Everyone will contribute to the greater good by being productive workers and voluntarily donating what is needed to the poor and helpless. The government should only require what is necessary and no more.

For many months a lot of people in the big medias groups were crying “recession, recession” when we were actually not in a recession but in a slowdown. The effect of that is to cause people to hold on to their dollars so they won’t spend them and the result is a real trickledown recession like we are having today (even without the Wall Street bust). It is much like when the news announces there will be a paper shortage or a water shortage. People run down to the store and buy all the paper or water in sight and lo and behold there is a shortage. Fear always makes things worst. In times of difficulty we need people who bring courage not fear, people who tell the truth and not exaggerate the bad news. We need real leaders, courageous leaders who will cut taxes, cut government spending and America and our economy will do just fine.

So require of your congressman or senator; Cut TAXES, Cut government SPENDING, pay off the overwhelming DEBT and free America from an overburdening government.


Nubby

Note:
Taxes are good for things that are a necessity in our lives. We have police because we all need protection. We need firemen because they have the training and equipment to take care of us. Nationally we want protection from foreign sources so having a good military is also a necessity. If you can imagine each of us trying drill our own wells for water and dumping our sewage it make sense to have our local government provide these services. These are things that we want and need and we are willing to pay taxes for them. There are the things we need government for, but we do not need government to become our master and tax us into slavery. We do not need government to decide who has too much wealth and then take it away to give to those who are not willing to work on their own.


Why Permanent Tax Cuts Are the Best Stimulus

Short-term fiscal policies fail to promote long-term growth.


By JOHN B. TAYLOR (excerpts form the WSJ)
The incoming Obama administration and congressional Democrats are now considering a second fiscal stimulus package, estimated at more than $500 billion, to follow the Economic Stimulus Act of 2008. As they do, much can be learned by examining the first.

The major part of the first stimulus package was the $115 billion, temporary rebate payment program targeted to individuals and families that phased out as incomes rose. Most of the rebate checks were mailed or directly deposited during May, June and July...........................................................

After years of study and debate, theories based on the permanent-income model led many economists to conclude that discretionary fiscal policy actions, such as temporary rebates, are not a good policy tool. Rather, fiscal policy should focus on the "automatic stabilizers" (the tendency for tax revenues to decline in a recession and transfer payments such as unemployment compensation to increase in a recession), which are built into the tax-and-transfer system, and on more permanent fiscal changes that will positively affect the long-term growth of the economy.

Why did that consensus seem to break down during the public debates about the fiscal stimulus early this year? One reason may have been the apparent success of the rebate payments in 2001. However, those rebate payments were the first installment of more permanent, multiyear tax cuts passed that same year. Hence, they were not temporary.....................................

Some who promoted the first stimulus package have reacted to its failure by saying that we must now switch to large increases in government spending to stimulate demand. But government spending does not address the causes of the weak economy, which has been pulled down by a housing slump, a financial crisis and a bout of high energy prices, and where expectations of future income and employment growth are low.

The theory that a short-run government spending stimulus will jump-start the economy is based on old-fashioned, largely static Keynesian theories. These approaches do not adequately account for the complex dynamics of a modern international economy, or for expectations of the future that are now built into decisions in virtually every market.

Mr. Taylor, undersecretary of Treasury for international affairs 2001-2005, is a senior fellow at the Hoover Institution and a professor of economics at Stanford University.

Read the whole article at Wall Street Journal Online, 11/25/08






Friday, October 23, 2009

From George Will's Column (10/23/2009):

"Barack Obama has now established Mills' Social Security COLA as the capstone to the architecture of the entitlement culture that is modern liberalism's crowning achievement: It is an entitlement to which you are entitled even when you are not entitled to it. Obama says 57 million Americans -- every Social Security beneficiary and some other recipients of federal entitlements -- are entitled to $250 apiece to assuage the disappointment of having not been injured by inflation. Because the cost of living declined 4 percent last year, the 57 million are not entitled to the actual COLA, but they evidently are going to be declared entitled to monetary consolation for the misfortune of not experiencing misfortune."
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"But about one thing, they should relax. A president who cannot resist dispensing a semi-COLA after the cost of living declines will not really fund a substantial portion of the new health care entitlement by cutting more than $400 billion from Medicare. "

If everybody buys this baith and switch then the math works like this: If you accept Obama's gift of $250 (out of your own pocket of course) and you feel good about this generosity and support his health care plan then perhaps you will not notice the $7015 per person that will be taken out of medicare.

Nubby

Wednesday, October 14, 2009

If you are one of those who thinks they will get free health care and only the rich or businesses will be paying more then forget it. Several things will happen when all this takes effect.

1. People will pay more for less. we started with 280 million who did have insurance and 30 million people who did not have health insurance. We destroy the current system and only add 15 million. The other 15 million still are not covered. The cost for the 15 million who are added will be spread among the 285 million who had insurance they were happy with. That means people will have to pay more or have less. About 6% increase in cost will be the likely scenario.

2. If health care cost 6% more then a family will spend 6% less on goods and services that would create jobs for everybody else. Considering the speed of money factor that would be about a 10-15% decrease in the economy. Hence higher unemployment. According to the Democrats method of increasing taxes every time they need to make up for losses then those who are working will be required to pay more for the loss in revenue because of higher unemployment. Thus the family has even less and the cycle continues until somebody realizes that this government is destroying us and puts a stop to it. It would be best not to even let it start.

3. Businesses will have 8-15% increase in cost. That is an expense that will be covered one way or another. That means they will have to increase prices to everyone including the poor. Or they will decrease their labor force and layoff workers to cover cost. So those who think this is all free will eventually be paying for it in the end because they cannot get a job, or buy food and other basic necessities because prices went up.

4. You have to ask the question, why is the government taking over our healthcare? They told us the sole purpose was to insure the uninsured. To help the poor folks who can't afford it. Their answer for this is to destroy the current system, replace it with a European style socialist system (that has failed over and over everywhere it is used) taking over 18% of the American economy. And then only half of the uninsured will be covered. The answer is they are not interested in in the uninsured, they are interested in getting government control of that 18% of the economy that affects the lives of every American. If you don't toe the line on healthcare the IRS will come after with a vengence. Every average American is a potential criminal. Just make a mistake on your income tax and see how many times you will audited. Speak out aginst the government now and they will be watching you. Only 50% of Americans pay taxes. Now everyone will be obligated to pay them for health care. They will own you. Slavery is back in America.