American Elephants


Your Taxes Are Going Up, And That’s Only The Beginning. by The Elephant's Child

I wish you a Happy New Year in spite of an upcoming year that is not promising.

We dropped over the fiscal cliff at Midnight, and then the Senate passed their 157 page fiscal cliff bill which everybody passed without reading it. Didn’t anyone learn a lesson about passing unread bills? Obama is triumphal because he accomplished his two main goals. He stuck it to the Republicans and can now call it ‘a tax cut’ that he delivered to the middle class (Don’t fall for that pathetic meme), and he forced Republicans to forgo their insistence on not raising taxes.

Republicans want to keep taxes low for everyone, because low taxes will help the economy to grow. New layoffs have been coming at a furious rate as more small businesses let workers go, or shift more of their workforce to part-time to avoid the massive fines imposed by ObamaCare on those companies who have more than 50 workers. People and businesses respond to incentives. The rich will rearrange their finances, or move to a location more friendly to capital. Businesses will invest in more labor-saving devices — more telephone trees, robotic voices, more automated check-out stands, more factory innovations that save the cost of labor and it’s benefits. And although taxes will go up, the revenue will not yield as much as expected.

Republicans recognize government jobs as just another expense that will require increased taxes from the public, and yes, the middle class. They believe in smaller, less complicated government that regards its tasks as those enumerated in the Constitution, rather than one that feels it’s role is regulating our showers, our lightbulbs, our appliances. (Did you know there are new regulations for dishwashers that reduce energy and reduce the amount of water used from 6.5 gallons down to 5 gallons. This will, of course dramatically raise the cost of a dishwasher, and you will not have it long enough to realize any savings in either water or electricity).

Republicans don’t believe that it is the government’s task to control health care, nor to tell the healthcare industry just what care they may give to a patient. Republicans believe a lot of stuff that is very hard to explain in short slogans or clever bumper stickers. They think deeply about their philosophy, the meaning of the Constitution, and the maintenance of liberty.

Democrats believe in the maintenance of power. Theirs. They want to win.

Their fondest desire is to end the Republican party and all its influences. Including the U.S. Constitution, singularly restrictive on what powers are granted to the government by the American people. Democrats don’t like those restrictions that Republicans are always nattering about.

Obama has not the slightest intention of cutting back on spending in any way. He doesn’t see any reason for doing so. Economist Alan Reynolds remarked that “Barack Obama does not understand economics and refuses to listen to anyone who does.”

The nonpartisan Congressional Budget Office puts it this way:

“With the population aging and health care costs per person likely to keep growing faster than the economy (gross domestic product), the United States cannot sustain the federal spending programs that are now in place with the federal taxes (as a share of GDP) that it has been accustomed to paying.” $1 in spending cuts ($15 billion) for every $41 billion in tax increases ($620 billion).

The compliant (suck-up) media has accepted the Obama narrative that it it’s only Republican rigidity that makes negotiations so difficult and leads to deadlock, because Republicans want to protect the rich. This means that there is even less incentive for Obama and Congressional Democrats to engage in genuine bargaining. But the media has not performed their job as government watchdog for many years.

We are not getting a genuine debate that we deserve. The president is lying about having cut a trillion dollars from the budget. He increased it by a trillion. The President is playing ugly Chicago politics in the national arena. And Chicago, the murder capital of the country, is the nation’s most dysfunctional city. Obama’s already overbearing arrogance will swell even more. No leadership. No understanding.

You can’t have Big Government and low taxes. Doesn’t work. The president will have to come after the middle class, because that’s where the money is. The payroll tax returns. They’re already talking about your 401-ks as a source of revenue. More to come.

About these ads

2 Comments so far
Leave a comment

The really iconic example of the disrespect that the two parties have for American taxpayers is the generous slice of bacon slipped into the American Taxpayer Relief Act of 2012: the extension and — even worse — the retroactive reinstatement of the US$ 1 per gallon federal blenders tax credit for biodiesel.

http://www.biodiesel.org/news/biodiesel-news/news-display/2013/01/02/congress-votes-to-reinstate-biodiesel-tax-incentive

Note that U.S. biodiesel producers nonetheless (thanks to the federal blending mandate, not to mention state-level subsidies and mandates) managed to churn out around 1 billion gallons of biodiesel in 2012.

That means that the industry will get a $1 billion windfall … not for producing anything more, but just for being. That $1 billion is a real cost to the Treasury, which will have to be made up by other taxpayers in order to balance the books. And an additional $1 billion will be lost through the tax credit as a result of sales in 2013.

Who do we have to thank for this? A bipartisan group led by Senators Maria Cantwell (D-Washington) and Charles Grassley (R-Iowa), as well as House representatives Aaron Schock (R-Ill) and Collin Peterson (D-Minn).

This is so outrageous, I am spitting nails.

Comment by Subsidy Eye

Write your members of Congress, let them know. Seriously, they get very out-of-touch with their constituents. Or better yet call their offices.

Comment by The Elephant's Child




Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



Follow

Get every new post delivered to your Inbox.

Join 6,691 other followers

%d bloggers like this: