Filed under: Bureaucracy, Capitalism, Democrat Corruption, Economics, Economy, Foreign Policy, Free Markets, National Security, Progressivism, Regulation, The United States | Tags: $2.7 Trillion Tax Increase, Obama's Budget Plan, Subsidizing Billionaires
Progressives have a vision of money circulating through the economy, creating offspring wherever it goes. I find it very odd, but that’s what they get out of Keynesian economics. You give somebody food stamps, and the grocery store pays their providers and their sales clerks, and the clerks and providers buy other stuff, and so on and on, and somehow it grows and multiplies on the trip.
They are not very good at math either, which shows up clearly in their spending and budgeting. President Obama has released the final budget plan of his lame duck presidency and it will be ignored by Congress, as it should be. He wants to expand the federal government which is already obese, and he wants big tax hikes to pay for it.
But 70% of federal spending amounts to taking money from one set of pockets and putting it into another pocket. In spite of their constant claims of fighting income inequality, very little of this money goes to help the poor. There is housing assistance, food stamps, welfare programs and Medicaid — programs that comprise only 25% of all the payments to individuals.
It all starts with an enormous $2.7 trillion tax increase over ten years. This is on top of the increases Obama has pushed over previous years. In ObamaCare, the tax hikes totaled $1.2 trillion over a decade, and then right after his re-election in 2012, he demanded a $600 billion tax hike on upper-income earners as the price for not imposing bigger hikes on the middle class. If he were to get away with this disgraceful budget, it would add somewhere around $4 to $5 trillion over a decade or at least $400 billion each and every year. Of course the standard reply is a trillion here, a trillion there, and pretty soon you’re talking real money! So why shouldn’t we tax the one percent even more? What we want — is to tax everybody less.
The federal government is not thrifty, nor is it a careful or honest custodian of the money they collect. Government waste is an ongoing scandal. There are somewhere around 45 different job training programs in as many different departments that are remarkably good at failing to increase employment. Excess regulation wraps businesses in a web of expense and wasted time in compliance. And there is less money and less confidence for expanding or hiring or growing. Top that off with higher taxes — and what you get is the kind of sluggish economy we have today.
The more sluggish the economy, the more the Progressives will try to fix it — with more regulation and probably more taxes. There does not seem to be an agency of the federal government that has not been politicized under this president, and the scandals mount.
Obama’s budget relies on “deep and unsustainable reductions in defense spending to make the deficit look smaller than it would otherwise be given his policies.” Defense spending is already at historically low levels, but then Obama sees little need for defense spending. He firmly believes that Iran would never use a nuclear weapon, though what they want with those intercontinental ballistic missiles is a puzzlement.
Mr. Obama does insist that “one of the greatest challenges of our time is climate change”and he wants to double funding for clean energy research and development by 2020. I’m sure that a 50 percent increase in funding for the EPA will go over well.
Environmental organizations raise bundles of money by featuring baby animals, starting with harp seals, and settling finally on polar bears. Baby polar bears are cute, and American are suckers for cute animals, but the polar bears are not endangered but are thriving. Federal funding for subsidies and grants are a rich source of money for big investors.
Al Gore’s global warming activism has increased his net worth from $700,000 in 2000 to an estimated $172 million by 2015. “He has also had a remarkable record of investing in companies right before they get huge grants from the federal government.”
The billionaire Elon Musk is chairman “of a number of companies such as Tesla Motors and Solar City which rake in billions in green energy subsidies. In 2014, Musk received $1.4 billion from Nevada taxpayers to build a ‘gigafactory’ for his electric car company Tesla Motors.” The MSRP for a Tesla is reportedly over $100,000. SolarCity also got a large payout to move to Nevada. When Nevada changed the way it subsidized solar power in a way that didn’t favor Musk or SolarCity, the company pulled out of the state.”
Tesla also sells lithium ion-battery Powerwalls for a mere $7,340 to store electricity for homes. The original intention of a Powerwall was to make rooftop solar panels economically viable for consumers. Powerwalls are estimated to take approximately 40 years to pay for themselves. Naturally, Tesla only offers five to 10 year warranties and predicts they will last for only 15 years.
Nice work if you can get it, though I cannot understand why taxpayers should be subsidizing billionaires’ playthings. That’s what hedge funds and angel investors do, not what the federal government should be doing with taxpayer money.
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