Tag Archives: Tax the rich

Misinterpreting Obama’s Tax Mandate

Obama-tax-the-richI have written before regarding Obama’s legitimate claim to a mandate for raising taxes on the “rich.” He made no secret of his plan to raise taxes during the campaign and voters — who for the most part know they won’t be paying the increased taxes — thought it was a fine idea and re–elected him.

This is a bad situation nationally, but potentially a good situation locally. That’s because locally–elected Democrats appear to be falling prey to what Alan Greenspan called “irrational exuberance.” They’re interpreting Obama’s mandate for national taxes as permission to increase local taxes, too.

Four of our local Prince William County, VA Board of Supervisors have presented budget proposals for the next fiscal year. And try as I might to avoid stereotyping these worthy public servants, dang if the Democrats don’t want to raise taxes, while the Republicans want to cut taxes.

All we need to be just like Washington is Warren Buffett, plutocrat with a guilty conscience, standing in front of the government center begging someone to raise his taxes.

Here’s where local Democrats are making their big mistake. PWC doesn’t face a “fiscal cliff” or any other kind of precipitous drop–off, because county budgets must balance every year. Spendacrats nationally — both Democrats & Republicans — have fought a balanced budget amendment to the Constitution. Consequently we have obese government that borrows almost 50 cents of every dollar it spends.

Voters get much more government than they pay for, hence Obama’s mandate.

Local balanced budgets serve to inhibit Democrat tax increase fever; since taxpayers must pay for all the government they receive, the same year they receive it.

Local Democrats who forget this will give Republicans and conservatives an opportunity to begin our political comeback.

I outlined Republican Chairman Corey Stewart’s budget a couple of weeks ago. In a nutshell Stewart would cut the average property tax bill by $132 next year. He saves $941,000.00 by eliminating supervisor’s ability to make charitable donations to private organizations with our tax dollars.

Stewart also ends the practice of subsidizing individual supervisor’s entertainment preferences by cutting all “arts” grants. He eliminates funding for Legal Services of Northern VA, ending the odd practice of the county funding the same group that often sues it. And he cuts money for programs Richmond orders, but doesn’t see fit to fund.

Total cuts amount to $9 million.

On the other hand, Democrat John Jenkins wants to boost county spending by $19 million and increase the average property tax bill by $408 (average assessed value is $310,000, so individual mileage will vary).

Evidently Democrat Frank Principi wants to do everything Jenkins does plus more. (It’s hard to be specific, Principi does not put particulars on his website and his office refused to answer an email query.) Principi would raise property tax bills an average of $447, so he can stimulate county spending by $44 million.

Jenkins wants to continue to play Santa Claus for charities with tax money, fund “arts” groups that can’t make it on their own, serve as free entertainment director for seniors, fund all the groups that Stewart cuts and keep neighborhood libraries open six days a week, to name but a few.

But “arts” spending is naturally not what Jenkins emphasizes. Local Democrats are not into disarmament as much as national Democrats, so he concentrates on the additional tax money that will be used to hire 25 new police officers and 25 to 30 new fire and rescue employees, because who could be against paying taxes for public safety?

I like cops and have had excellent experiences with the fire department. But that doesn’t stop me from asking if these additions are needed, which is one reason I’m no longer a Democrat. From 2010 to 2011 overall crime in the county decreased 6.7 percent and violent crime decreased 20.7 percent.

Now I certainly don’t want to penalize success, and the department is doing an excellent job, so let’s look at overall calls for service, which are often a leading indicator of future crime increases.

Well, nothing there either. Since between 2010 and 2011 the call for service total was essentially unchanged. Meanwhile, population increased by about 11,000 residents. Simply matching population growth could justify the addition of almost 12 officers.

The department added two in 2011, so one could support adding an additional 10 officers at a cost of approximately $1.2 million — not 25 at a cost of $3.1 million.

The situation with fire and rescue is similar. Calls for service increased 3 percent from 2011 to 2012, as did the population. But you don’t add fire and rescue the same way you do police officers, because for every paid fireman there are two volunteers. Since total fire and rescue is three times that of the police department, it makes more sense to add seven firemen at a cost of $770,000, instead of 25 at $2.75 million. The total for both comes to about $2 million in additional spending.

Jenkins could pay for all of these new government employees without raising taxes a penny if he simply embraced some of Stewart’s cuts. But local, like national, Democrats are not in the spending cut business. So it’s no wonder Jenkins was an integral part of the board that doubled PWC spending between 2000 and 2006.

Government grows because politicians aren’t spending their own money. The money Jenkins and Principi want to spend is free, because it’s yours. The only restraint on Democrats is the fact property taxes are paid by all property owners. There are no “one percenters” to gouge and Democrats are unable to embezzle from the future by borrowing, the way they do in Washington, DC.

And that’s the difference between the Obama mandate and local reality.

Still, it’s always so amusing when a local Democrat expresses concern about a taxpayer’s pocketbook.

During a recent board discussion of legislative priorities, Principi wanted the state to extend the Earned Income Tax Credit, because he wanted to “keep more money in the pockets of our citizens.”

Evidently because if the state took the money, Principi wouldn’t be able to get at it.

Conservatives Need to Kick GOP, Democrats Over Cliff – Replace with Tea Partiers

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It’s time conservatives think about pushing the GOP machine over the cliff they are helping Democrats hurl America over and replace them with Tea Party conservative leaders. The moderate RINOs are nothing more than Democrats in cheap Republican clothing.

Seriously people, is John Boehner a Republican, is he a conservative, or a fence-straddling Democrat who sticks his cigarette in the wind to see which way the wind blows the smoke so he can decide which deal will keep him in power?

When conservative House members refuse to vote in lockstep with Reps Boehner, Cantor and McCarthy, they are politically  purged from Congressional meetings.

Reps Tim Huelskamp of Kansas and Michigan’s Justin Amash refused to vote with House Speaker John Boehner on key votes during the past two years. The punishment: losing their seats on the House Budget Committee chaired by Rep. Paul Ryan along with Reps. Walter Jones of North Carolina and David Schweikert of Arizona are losing their seats on the House Financial Services Committee.

Huelskamp said:

I think it’s the worst form of petty, vindictive politics that a member is removed from a committee when he votes his conscience and he votes his district… [but these People go behind closed doors. They [the GOP Establishment] don’t talk to your constituents. They don’t care about your constituents. All they care about is raw political power.

As America is headed over a cliff, Speaker Boehner and his Republican Democrats (moderates) are pushing conservative party leadership under a bus. TEA party conservatives need to take over the GOP.

The Republican Party’s authentic conservative base is the tea party who want America restored, not the likes of John Boehner who seems only concerned about keeping his job.

Moderates must go! Their preference to compromise America’s economic stability by making deals with Obama that increase America’s debt. Republicans in the House of Representatives caved to the $2.4 trillion debt ceiling hike and now they are willing to raise taxes by $800 billion.

Next: The GOP refuses to hammer home tax hikes and government spending truths: Tax increases, disguised as getting even with the rich, will hike taxes on the Middle Class.

 Thomas Sowell explains this:

The actual tax increase plans being proposed by Obama do not start with people who have an income of a million dollars a year. They start with people with incomes of $250,000 and up. That is more than most people make, but it is far short of a million dollars, and miles away from a billion dollars. How many of the people who stand to get hit with Obama’s higher tax rate plan are in fact either millionaires or billionaires? According to the Internal Revenue Service, there are more than 2,700,000 people who earn $250,000 a year or more — and fewer than one-tenth of them earn a million dollars or more. So more than nine-tenths of the people who would be hit with the higher taxes supposedly aimed at “millionaires and billionaires” are neither.

Hey, what’s another $800 billion? We’ll just borrow the money from China so taxpayers can experience that joyous funding of Arab Spring and enemy nations who hate our guts and want us all dead.

The GOP machine has become a bunch of liberal Democrats whose only care is reelection. If that’s false, they would have pulled out all the stops and fought Democrats excessive spending over the last four years, not to mention 20 years of over-the-top Clinton housing loans to the poor.

Is the GOP serious about restoration? They certainly didn’t nominate a conservative presidential candidate.

Furthermore, GOP leadership has sat back and allowed Obama to demonize  Republicans as greedy, rich fat cats, while Obama and Democrats falsely argue that raising taxes increases revenue. Unfortunately, Obama’s Trotsky ploy is winning the argument with his downtrodden 99% invention just as well as it won the election.

After Reagan left office, the establishment crumbled.  The GOP hurled conservatism over a cliff in favor of becoming Democrats in cheap GOP suits. In fact,  GOP leadership has become so liberally Democrat, it looks like the Democrat Party’s behind.

Tea partiers must take over GOP leadership. Conservatives must take up the restorative mantle and change America back to America. W need to push the GOP machine over a cliff, because authentic Conservatives will be be bullied by Democrats.

Conservatives must elect authentic fiscal Conservatives to the House in the 2014 mid-term elections. If we don’t, Nancy Pelosi will ride back in on her broom and her Flying Monkeys will have full control.

John Boehner, even your compromises can’t afford the bucket of water to melt that power.

America that needs leadership fighting unconstitutional administrative government, but today’s GOP lacks the Democrat’s dog-fighting spirit that knows how to go for the jugular and rip votes out of the necks of Republican candidates. Republicans leaders have become dogs who rolls over and submit to robbers invading the House, and Republicans allow those thieves to steal everything without a fight.

Worse:  Both parties are beginning to look like one of loyalists with conservative voters as the the new generation of colonists trying to save liberty from tyranny.

 

 

 

The truth is we conservative need to become the new generation of colonists fighting to save the Republic.

“Mr. Nice Guy” politicians refuse to stand up to Barack Obama and shove his Marxist “spread the wealth,” “fair share” policies back in his face, exposing his destructive plans to the nation. But the GOP hasn’t acted manly since Reagan and William F. Buckley. Republican leaders allow Obama and his administration to double-deal the race card demagoguery against Republicans, wealthy Americans, property and business owners, and basically anyone who has something Obama’s “poor” do not have and are told they are entitled to have by equal fair sharing.

Where is the leadership willing to stand up and rip open the lie behind those polices? Tea party conservatives.

But we can’t forget these leaders are being thrown under the bus because they  stand up against Obama and fight GOP corruption:  Governor Sarah Palin jailed Alaskan GOP leaders for corruption, Michele Bachmann exposed Hillary Clinton top aid Huma Abedin for connections to the Muslim Brotherhood and was trounced by the GOP for protecting national security. Let’s not forget tea party candidate Allen West, whom the GOP never bothered to stand up for as Democrats extinguished West’s district.

Do we need more proof the Tea Party needs to take over before America becomes a nation run by one monarchical party assuming divine rights until the Constitution is obsolete?

Moderates are handing America over to Democrat Trotsyites hell-bent on removing traditional conservative founding values, morals, independence, liberty, constitutional rights, while hurling America over the economic fiscal cliff we cannot climb up and out of.

The GOP has fantastic Tea Party leaders capable of moving this country in the right direction, but Speaker Boehner and his cronies trample them. They’ve turned on conservatives while enabling Democrat leftists to push America into socialist-control.

Moderateness must stop if America is to endure; that can only happen if conservatives shove RINOs over the cliff and elect authentic fiscal conservatives to the House in 2014.

If we don’t fight liberal Republicans and leftists, Obama will enact the “Dreams of My Father” and we can kiss our American lives goodbye.

11 Deceptions About the Tax Debate

Below are the Whitehouse.gov’s “11 Facts About the Tax Debate.”  As usual, they are out of context, disproportioned, deceptive, and out right false briefing points.  Here are just a few reasons why they are nothing more than election year red herrings.  (A fitting expression for such socialist ideals.) WH.gov points are in italics.

1.     Nearly $1 Trillion would be added to our deficit over 10 years under the Republicans’ proposal to continue tax cuts exclusively to households making more than $250,000 a year and to the wealthiest estates.

Only 1 Trillion in 10 years?  That sure is a better than Obama’s plan strapping us with over 10 Trillion more debt in the past 4 years, and much more in the next 10.  Republican tax cuts to those who are producing jobs realistically stimulate the economy.  History tells us that lower tax rates produce greater employment thus greater tax revenue 100% of the time!  Are 100% to 0% not good enough odds?

2.     Only 2 percent of American households will benefit from the Republicans’ proposal to extend tax cuts for those with incomes higher than $250,00 a year.

Actually 100% of Americans will benefit.  Those 2% are the ones investing in America and want to do more so more people can be employed, pay taxes, spend and invest.  All studies of history and economic models show that the sweet spot is about 17% across the board.  I.e. a flat tax of 17% produces the maximum revenue by allowing maximum employment and investment.  Thus we’re killing our selves by trying to squeeze more money than we can afford, which kills our ability to earn more.

3.     Under President Obama’s proposal, only the wealthiest 3 in 1,000 estates would owe any estate tax.

So only the wealthiest 0.3% will pay estate taxes?  He’s bragging about this?  Notice he doesn’t compare it to a Republican plan; a sure sign they have a better idea.

4.     Over the past 4 years, a typical family making $50,000 a year has received tax cuts totaling $3,600 – more if they are putting a child through college.

The White House fails to mention that our average income decreased 3.02% from 2008 to 2010.  For a $50K household, a loss of 3.2% is $1,600.

Inflation due to the Fed creating money, “monetizing the debt,” “QE3,” “printing money,” “digitizing money,” you name it.  Inflation was 4.46% in 2011 alone.  That has lowered the value of $50K by $2,238.

Those two factors alone add up to $3,830.  So even if your “tax decrease” was real, your average $50K family lost $283 per year.  Does the WH call these bragging rights?

They also fail to mention that he’s just Nationalized ALL student loans, (so he can forgive a great proportion of them).  That will cost “average” taxpayers more money.  So there are several ways we all pay for other people’s children to go to school.  Obama said, “those making under $250,000 won’t see a tax increase.”  Yup, they just won’t see it.

5.     5 million families would no longer be eligible for the child tax credit under the Republicans’ tax proposal.

Truth be known, both parties support a modification to the Child Tax Credit.  It is due to expire, so the debate is only which plan to adopt.

Additionally, the Treasury Department reports that illegal immigrants filing tax returns using the Individual Tax Identification Number are receiving more than $1.5 billion each year from the federal government through the Child Tax Credit and the Additional Child Tax Credit.  Need a fix?

6.     Because Republican proposals cut the Earned Income Tax Credit, nearly 6 million working families with children would see their taxes increase – averaging $500 apiece.

The WH has cherry picked only the most conservative of many Republican plans.  Many, if not most, do not affect this Credit.  In support of those that do, this Credit pays able people for not working.  We have enough of that.  What is not mentioned is that this proposal also abolishes tax code exemptions and credits for the rich and big business.  Everyone who is able needs to pay something.  It keeps us all responsibly involved in government.

7.     The President’s plan includes almost $700 billion in tax credits to help middle class families pay for health insurance over the next 10 years through the Affordable Care Act.

Somehow we’re to believe we aren’t going to pay the $700 billion.  That $700,000,000,000 comes from taxes.  How many will loose jobs because companies are forced to cut employment or go bankrupt because they have to pay fines, (oops “taxes,” oh no “fees,” wait “taxes,” whatever)?  They’ll have to pay much more just to employ people.  That isn’t going to help employment or the tax base.

Thus Obama Care will increase the number of folks relying on taxes to support them and pay for their healthcare, thus driving that 700 billion estimate off the scale.  This is a “Cloward and Piven” plan, plain and simple.  “Overload the economic system through escalating the need for entitlements by the increased tax load to fund them.  Mr. Obama once taught the Cloward and Piven’s strategy to collapse capitalism.  Now he’s implementing it.

It has become common to name a Law the opposite of its worst feature to mask its true identity, i.e. ”The Federal Reserve” which is private and has no reserves.  Would you vote for the “Unaffordable but Compassionate Care Act”?

8.     The top 2 percent of households, with and average of $800,000, would see additional tax cuts under the Republican plan.

… as would most income brackets.  These wealthy people are already in the highest tax bracket.  This misleading information only mentions the cuts and not the main part of the plan that drastically removes tax exemptions in the first place.  Most Republican restructuring is designed not only to simplify taxes and reduce exemptions, but also to incite job creators.  Read the bills!

9.     Under the President’s plan, income tax rates for high income households would return to the same tax rates as in the ‘90s.  During that period, the United States created 23 million jobs and ran a budget surplus.

Remember the 17% rule?  Higher tax rates actually produce less revenue than lower rates above 17%.  When Bush lowered the tax rate in 2003, the tax revenue actually increased due to greater employment and higher wages.  Even Obama agreed to extend them for that reason.

It isn’t trickle down, it is flow down, and the government needs to be at the bottom of the flow, not the top.  Under the Republican plan everyone’s effective tax rate would be reduced, causing greater employment thus more tax revenue.  Businesses would be incented to locate and operate here in the US rather than overseas.

The government doesn’t create jobs, the people do.  Even government jobs are created out of the people’s tax dollars.  The government doesn’t build anything; we do, to include the government.  When the government uses our money to build inefficient, ineffective, failing, or just plain fraudulent institutions, we pay the price.

For example, the 90s is when the Liberals were most influential at inflating the housing bubble by incentives to lend to those who couldn’t afford those loans and eventually penalizing lenders that did not.  That escalated inflated prices that eventually had to burst.

10.     The President’s plan would continue the 10 percent tax bracket, which allows everyone to pay a 10 percent tax rate on their first $8,900 in income (or $17,800 for married couples).

Notice there is no mention of a Republican plan here, because under the Republican plan, middle-income families of four pay no taxes on the first $39,000 of its income.

So the President is bragging about doing nothing?  I have to admit, doing nothing has been one of his least problematic qualities.

11.     The Republicans plan eliminates the American Opportunity Tax Credit, meaning 11 million families and students paying for college would see an average tax increase of $1,000 each.

Actually there is no tax increase involved.  It means that the $1,000 credit for having a child in college expires December 31st 2012.  Both parties have competing plans for an amended version.  Reality always sounds a little different than WH talking points.

So shall we talk about unemployment?  How about why businesses move jobs overseas?  How about Agenda 21, (disguised as “Sustainable Development)?  Can we discuss how many more doctors will be created under Obama care?  How about illegal aliens; Homeland Security that considers “we the people” a greater threat than rife illegal boarder crossings?  Let’s discuss why the US prosecutes innocent supporters of the GOP (i.e. Gibson guitar), while allowing anything black, or Muslim, or alien, or Occupy movements go unprosecuted, (per stated administration policy).  How ‘bout that Medicare?  Social Security?  Where do those fit in your list to debate?

Barack Obama was right about “Hope & Change.”  Never has America hoped for change more than now.

God bless America.

Luxury Tax 2.0 – Obama’s War on Prosperity

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President Obama keeps asking “Do you want to return to the failed policies of the past?” At the same time he is urging us to envy those who have worked very hard and risked their own capital to make the American dream come true.

An examination of that question might be in order. Those who are not willing to just blindly accept what they hear, but are of reasonable mind might wish to examine the facts. His plea is not a new one, it is one we have tried before, with disastrous results.

The politics of envy got a thorough trial under George Herbert Walker Bush (41). In fact it worked out so well, it cost him his job along with 200,000 other poor unfortunates. Philosopher George Santayana put it so well, “Those who cannot remember the past are condemned to repeat it.” Either the current administration does not remember the “Luxury Tax” or they are banking on the fact that the public does not.

To refresh our memories, after his famous 1988 campaign quote “read my lips, no new taxes”, in 1990 under enormous pressure from the Democrats in congress, President Bush acquiesced and signed the “punish the rich for being rich” luxury tax bill. That bill greatly increased taxes on things like yachts, airplanes and expensive jewelry. The Democrats said it would increase revenues and if folks could afford to buy yachts, they should cough up some of that cash to help the poor and unemployed. The actual effect though, as one might guess, is that people quit buying yachts, or bought them offshore. The net effect was that revenues went down, and 200,000 people who worked in the boat building industry lost their jobs. Ultimately it cost Bush the 1992 election.

What so many people fail to grasp is “The Law of Unintended Consequences.” Everything we do has consequences but so many want a life without adverse consequences to anything. It just isn’t possible. The law of unintended consequences is a offshoot of the law of cause and effect. If one hits one’s self in the head with a hammer, one’s head will hurt. Cause (hitting your head), effect (head hurts).

The law of unintended consequences comes into play when ideas which sound, on the surface like good ideas meant only for the benefit of people, are implemented without any thought to what the actual outcome might be. For example everyone wants clean air. We probably have the cleanest air in the world now, but under the guise of cleaner air the EPA has put in place regulations which are closing coal fired power plants all across the nation, 57 this year and 175 by 2016. In the US 42% of our electricity comes from coal fired generators. That means that in exchange for making our air an infinitesimal amount cleaner we are going to not only sacrifice 8.5% of our coal fired generating capacity with nothing to replace it, but we are going to put thousands and thousands of people out of work. All of this while energy consumption continues to grow. As the power plants shut down, so do the coal mines, the coal haulers, the coal mining suppliers, and the coal rail haulers.

In addition to reducing our capacity for electrical generation, we will also increase the cost of electricity by at least a factor of two. So Grandma, who was worried about Paul Ryan throwing her off a cliff by trying to save social security, can just fry in her apartment because she can’t afford to pay the electric bill.

As the cost of energy increases, so does the cost of everything else. Farmers and manufacturers must pass this added cost on to consumers. Meanwhile, lets add some additional tax and regulatory burden to those manufacturers as well, because they are the evil rich and we have to get them. No one ever explains why we have to get them, we just do. It’s the fair thing, no matter what it costs the rest of us.

Raise Tax on the Rich; the Rich Flee

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President Obama keeps telling us that ‘the rich’ need to pay their fair share. But what happens when those who earn and have accumulated great wealth reach their breaking point?

In France we can watch this ‘tax the rich’ scheme in play. Their new Socialist Prime Minister Jean-Marc Ayrault promised the voters he would stave off austerity programs by increasing taxes on the super-rich to 75% on all earnings over One Million Euros.  As the new government’s tax programs are proposed the wealthy are making their feelings known as an ever increasing number of rich make plans to leave the country.

Great Britain’s Prime Minister David Cameron stirred the pot last week when he announced that the UK would roll out the welcome mat for those rich who wanted to leave:

“If the French go ahead with a 75 per cent top rate of tax we will roll out the red carpet and welcome more French businesses to Britain and they can pay tax in Britain and pay for our health service and schools and everything else.”

Interest in luxury homes in the London area has increased 30% in the past three months. Realtors have also noted an improved market in the Switzerland area as the rich tell tax consultants they’d rather pay Swiss taxes than French.

If the Democrat mantra of tax the rich continues it will be even more important to watch the events of France. How will they pay for programs that are meant to benefit poor and middle class based on income from increased taxes on the wealthy if the rich decide to move to greener pastures? Wealthy families are not bound by countries or continents and will continue their jet set lifestyle based in whatever area they feel most welcome.

Once again we are reminded of The Iron Lady Margaret Thatcher’s famous words, “Socialist governments do make a financial mess… The trouble is that eventually you run out of other people’s money.”

 

 

 

Jon Lovitz Nails Obama on Hannity

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By now, most readers know about Jon Lovitz’s tirade against President Obama’s “Tax the Rich” philosophy.  His opinion on this matter has been so popular that he’s been asked to discuss it on cable news several times now.  In one of his more articulate appearances, he explains to Sean Hannity that as a “rich business owner”, his employees get paid, but more often than not, he “doesn’t make a dime”.  It’s a pretty thought provoking look at an issue that America likes talking about, but doesn’t seem to like resolving.  Stick around for the end, when Lovitz asks Sean “if he’s from Kenya”.

Obama’s Marxist 2012 Reelection Campaign

Barack Obama’s 2012 taxpayer-funded reelection campaign contains many elements, including massive doses of class warfare and racially-divisive rhetoric, (think, ” If I had a son he’d look just like Trayvon”) massive misinformation about the viability of taxpayer-funded green energy programs, the always-loved-by-the-far-left-radicals hate-speech directed at anyone in America who is successful (think taxing anyone making over $250k) with that last aspect also including the misinformation-laden Obama 2012 war on big oil companies. Barack Obama’s current 2012 reelection campaign rhetoric shows America a man who must attempt to distract American voters from looking at his dismal record during his historic failure of a first [and only] term as president of the United States of America.

What most Americans do not seem to be able to grasp today is the fact that Obama’s current campaign rhetoric follows very closely with another centuries-old form of using misinformation to nudge public perceptions campaign, that of one Karl Marx, the founder of what has now known worldwide as Marxism.

Marxism, according to Bing Dictionary is defined as: a: the political and economic theories of Karl Marx and Friedrich Engels, in which class struggle is a central element in the analysis of social change in Western societies, and b:  political ideology based on the theories of Karl Marx and Friedrich Engels. (emphasis added)

There it is, Obama2012 defined in one simple sentence: Class struggle being promoted as a main element in a drive to effect social change. This also goes hand in glove with Obama’s Hope and Change campaign of 2008, where he promised to “fundamentally transform America” and where he told Joe the plumber that we must “spread the wealth around.”

 In yet another taxpayer-funded campaign speech last week, Obama continued his call for Karl Marx-inspired wealth redistribution in his continuing war on big oil companies, as Larry Kudlow explains:

“Once again this week, the president was out on the campaign trail bashing and oil and gas companies. And he continued to spread major falsehoods about this industry, which I guess is the polite way to put it.

 Obama is obsessed with oil and gas. He is a prisoner of the left-wing environmental groups. And really, he’s extending his leftist class-warfare attack from rich people to successful oil and gas producers.”
“What seems to have Obama especially steamed is the fact that the conventional-energy companies are profitable. Especially the five largest. So he wants to tax them. He then wants to redistribute their income to his favorite green-energy firms. Sound familiar? I don’t know which is more important to the president — the fact that he hates fossil fuel, or the fact that he hates success. Or that he wants an energy-entitlement state.” (emphasis added)
Enabled by the media-misfits of today, Barack Obama is being given a pass by political operatives posing as reporters on Obama’s obvious implementation of Marxist policies to transform America. Anyone who points out the definition of Marxism, and it’s obvious direct correlation of Barack Obama’s ideology in policy-making being based on the teachings of Karl Marx as a way to fundamentally transform a nation… are immediately labeled  as a right-wing extremist or other nasty Left-wing catch-phrases dug up from third grade name-calling contests.
Karl Marx is quoted from The Communist Manifesto he authored, as stating,  “The Communists disdain to conceal their views and aims. They openly declare that their ends can be attained only by the forcible overthrow of all existing social conditions. Let the ruling classes tremble at a communist revolution. The proletarians have nothing to lose but their chains. They have a world to win. Working Men of All Countries, Unite!”  This last sentence  has been used frequently by Obama-Union-Operative Andy Stern, the head of SEIU and President Barack Obama’s most frequent White House guest, as stated during a discussion about his planned globalization of SEIU. In case our readers are not familar with just who Andy Stern truly is, along with his Obama connections and Marxist ideology, read this.
In summary, Barack Obama’s proven Marxist ideology has been evident for anyone actually interesting in vetting this man as a candidate for U.S. President during the 2008 presidential elections. That simply did not happen, by design. The media has steadfastly chosen to ignore these facts and still does today to the detriment of America. In the immortal words of the truth-telling Andrew Breitbart, may God rest his soul, “we fully intend to vet Barack Obama in the 2012 elections.” Barack Obama is a Marxist bent on transforming America by destroying her capitalistic system and free markets, empowering a statist central government over it’s people, while taking from one class of citizens to redistribute it to another to buy votes and power. This is right out in the open for all to see in one aspect or another, in every taxpayer-funded speech Obama gives today. All you have to do is listen for it.
The revolution made progress, not by its immediate tragicomic achievements but by the creation of a powerful, united counter-revolution, an opponent in combat with whom the party of overthrow ripened into a really revolutionary party.”  Karl Marx- 1850 from Class Struggle in France .

 

Is General Motors Truly Back on Top of Auto World?

General Motors Corporation recently laid claim to being the world’s largest automaker, as headlined in The Detroit News  last month.  “General Motors Co. says it sold more than 9 million cars and trucks worldwide last year — a 7.6 percent increase that allowed the company to reclaim the title of world’s largest automaker.” After GM posted it’s profits and sales figures boasting of reclaiming to be the world’s largest automaker, German manufacturer Volkswagon released a statement saying that when trucks are added into the equation, that Volkswagon, not GM took over the title as largest automaker in the world.  Also of note is the fact that the massive earthquake and subsequent tsunami that struck Japan last march disrupted Toyota’s manufacturing and distribution systems, and after Toyota was back up to speed, flooding in Thailand forced key parts suppliers to suspend shipments, opening the door for other manufacturers to overtake Toyota’s title of world’s top automaker that it had held since overtaking GM in 2008.

Motor Trend published Volkswagon’s claims as follows: (emphasis added)

Now Volkswagen is disputing the claims and suggesting that it bested GM last  year. According to Automotive News, Volkswagen’s 8.16-million figure  doesn’t include sales from commercial  truck divisions MAN and Scania. Once those figures are added, it will  significantly bolster VW’s annual sales tally.

On top of that, GM’s sales figure was padded with about one million sales by  Chinese automakers SAIC Motor Corp. and Wuling Motors Co. — companies with which  GM has joint ventures, but in which the American company does not have a  controlling stake. If those sales were excluded and VW’s truck figures added,  Volkswagen would probably steal the global sales crown from GM.

2011 Automotive Company U.S. sales  fast facts:

GM- U.S. sales rose by 13% over 2010 numbers,  while Volkswagon’s U.S. sales rose by 23.3%.  Chrysler sales rose by 26%, and Ford’s sales rose by 11% over 2010. Imports BMW and Merceces Benz were also up 13%,  according to KHSLTV.

GM’s Chevy volt sales took a nosedive from  previously reported anemic sales due to the reports of the car exploding in a fireball during testing. GM sold 7700 Volts in 2011 and only 603 volts were sold in Jan. 2012. This was well short of stated goals of 10,000 in 2011 and has forced GM to walk back there stated goal of selling 45,000 Volts in 2012.

Due to under-performing GM stock prices, the U.S. taxpayer is currently estimated to be on the hook for almost $24 billion dollars in losses.

GM Avoids Paying Taxes on Profits thanks to Obama and Geitner adding illegal exemptions into TARP deal. Pay-to-Play 101.

GM to date has not mentioned the total of $45 billion dollars in tax write-offs given to them in the Obama/Geitner TARP deal. The Harvard Law School Forum  published the following little-know facts  about GM’s deal:

New GM has the factories, offices, designs and some of the workers that Old GM had. It also acquired some $18 billion worth of its NOLs (the losses themselves were $45 billion). It could not use them to reduce its corporate income tax liability immediately – it earned no income against which to apply them. But in 2010 New GM did finally turn a profit. Presumably, it will now start using its NOL’s (net operating losses) to avoid its corporate tax. (emphasis added)

The problem lies within certain “notices” written by the Treasury where GM/U.S. Treasury will not have to abide by  tax laws that other companies who sell stock do.

To solve this problem, the Treasury issued a series of “Notices.” The Sec. 382 rules, it declared, simply did not apply to itself. When it sold its shares in New GM, its buyers might increase their ownership stake by 50 percentage points, but they would not trigger the Sec. 382 limits. The tax code offered no exception for government-owned shares, and the Treasury did not purport to find one. Instead, it just declared that the law did not apply. Treasury issued several similar “Notices” for AIG and Citigroup. Through the TARP transactions, both of these firms experienced ownership changes over 50%. By law, they lost their NOLs. By “Notice,” the Treasury announced that it would let them keep the losses. (that allows GM and the Obama-supporting UAW, to avoid paying approx. $45 billion dollars in taxes.)

In an article titled  Can the Treasury Exempt its Own Companies from Tax? The $45 Billion GM NOL Carryforward, the author of the above-linked report worked with Eric B.Rasmussan to expose just how the U.S. Treasury and the Obama administration illegally gave the GM Unions tax exempt status as the GM bailout moved forward: (emphasis added for clarity)

 We do not address the wisdom of the bailouts. Neither do we ask whether giving a multi-billion-dollar tax break to an automobile or financial company makes sense. Instead, we focus on the propriety of the Treasury’s manufacturing a tax break. We find two aspects of the transaction especially troubling:

  • a. The GM Notice transfers a large amount of money to one of the largest contributors to the administration’s party, the UAW. The UAW was merely an unsecured creditor to GM – yet through the reorganization it emerged with a much larger equity stake than its interest warranted. Through this Notice, the government now transferred vast sums of money to it.

 

  • b. The GM Notice hides the real cost of the TARP bailout. Involving as it does very complex provisions of the corporate tax code, the Notice escapes virtually all public scrutiny. Yet at root it cuts the firm’s future taxable income by $45 billion. The true total cost of the TARP transactions does not involve only the direct outlay; it also includes the $45 billion in future income that the Treasury freed from tax.

Finally the report further states that in order to avoid public outcry about the huge transfer of cash to the Obama-supporting UAW, they did it through a legally unauthorized exemption.

Had the administration given such a large amount of cash to the UAW, the public would have complained massively. The administration gave it through a legally unauthorized Sec. 382 exemption, and no one noticed.

We conclude the article by exploring procedural reforms Congress might adopt to prevent a recurrence of what happened with GM. We urge it to give legislators standing to contest in court any tax benefits that the Treasury provides.

Understanding these truths about how the Obama administration and the Treasury have transferred billions of taxpayer dollars to the crony-capitalists at GM and the UAW also debunks the rosy picture the media is painting about GM’s current boasting of a planned $10 billion dollars in profits in 2012. The stock held by the U.S. Treasury, bought and paid for with tax dollars is currently worth about half of what it needs to be to break even and recuperate the bailout cash. When Obama and the Liberal Democrats preach about evil corporations and successful business owners not paying their fair share of taxes today, they somehow refuse to mention GM and their $45 billion-dollar tax  exemption gift that was given to them as a down-payment for the United Auto Workers reelect Obama 2012 campaign.

Footnotes: Do Americans want four more years of  these types of taxpayer abuse and Liberal crony-capitalism? Barack Obama claims to have saved a million autoworker jobs while refusing to discuss how much it cost the taxpayer in real-time total dollars. While Obama-supporting Union workers at GM rake in record salaries and benefits, along with huge bonuses, the rest of America is stuck dealing with skyrocketing energy prices and an overall massive increase in the cost of everyday necessities, while the average wage increase for 2011 was a measly 1.9%, according to this BLS report.  Unemployment is still  stubbornly high , and now the Obama-led Democrats want to hand out another extension of  an already record high time limit of federal U/E benefits at taxpayer expense. America is being systemically collapsed under the weight of trillions of dollars in debt, and now we will soon see Obama and company raise the debt limit another trillion-plus dollars. The big news last week was that GM is the “largest” automaker in the world, (which is debunked here) and the “new GM success” is being used to promote Obama’s reelection. Had Ford Motor Company got a $45 billion-dollar tax exemption, ( like GM)  their profits would in fact, surpass GM’s 2011 earnings by tens of billions od dollars.  It is about time the American people demand an end to big corporations such as GM being allowed to steal billions of taxpayer dollars in order to give them to reelect Obama cronies and assorted union bed-pals. That starts with defeating Barack Obama in 2012.

Lets Give the Liberals the Tax Hikes They Demand: Thanksgiving Edition

As the sweet aroma of Mom’s pumpkin pie fills the home this Thanksgiving morning, and with the turkey all set to go into the oven, I decided to take the time out to give thanks to Rich Mitchell and the CDN staff for giving me the platform to share my conservative news and opinion articles today. The following is my contribution to the CDN mission by producing some out-of-the-box ideas on the most important issue facing Americans in the coming year: How to reduce our massive national debt, and how to unlock the current Congressional stalemate by giving the Democrats the tax hikes they so fiercely demand. Happy Thanksgiving from all of us here at CDN. Enjoy your day. 

It is once again time to call the Liberal Democrat’s bluff. Let’s give them the tax increases they so heartily demand, but on their own stated ideological terms. Liberals have certain planks in their ideology that must be used in the tax increase debate up in Congress. This proposed tax increase leglislation has to include such lovely-sounding Liberal catch-phrases of wealth redistribution, social justice, equal justice, and President Obama’s personal favorite, community service. (while keeping in mind the Democrat’s past history of reneging on promised cuts in federal spending.)

Let’s start out by taking Wolf Blitzer’s often-asked question of whether GOP Presidential candidates would accept a 10 to 1 ratio of budget cuts to tax increase dollars. The GOP must call the Liberal media’s bluff and accept that scenario… in an intelligent, yet very simple way. Draw up the bill in the House of Representatives immediately that says yes, the GOP will accept $10 dollars in budget cuts for every single dollar in increases taxes. That is straight forward and simple enough, even for the mathematically challenged Democrats and President Obama to understand.  Now that we have agreed to Wolf Blitzer’s leftist-parroted demands for those tax increases during the current recession, let’s take it one step further in appeasing the Liberals. Let’s add the Liberal/OWS ideological planks of equal justice, social justice, wealth redistribution and community service into the new tax increase bill shall we? 

Introducing HR-2011-The Liberal Tax Increase Bill of 2011- (NOT an actual bill in congress)

Bill Sponsored by DJ Redman  No Co-sponsors to date.

Section 1-A: Equal Justice for all in the form of tax increases. 

Equal justice means just what the title says. Equal treatment for all Americans, regardless of race, national origin, income status, or political affiliation. Therefore, in keeping with the Liberal ideology of “equal justice for all” the tax increases will be applied to every adult of working age in America.( whether they actually work or not) Section 1-A of the Liberal tax increase bill of 2011,may also be referred to as, “Equal justice in paying your fair share in America.” In this section there will be a means tested chart for how much new taxes will be levied on every person in the USA, illegals included, regardless of private sector income. Welfare checks, rent subsidies, WIC coupons, utility bill payments, food stamps and every other hidden government pay- for- not- working entitlement program will be taxed before checks/payments will be sent out. Equal justice, as in everyone paying their fair share as outlined in this section should really have the support of every debt-spending Liberal in Congress, hands down. If the workers of America have to pay more taxes on their hard-earned wealth, making the non-workers pay taxes on their government handouts should also make the Unions quite happy. Millionaire Union Chiefs could say they are working hard to protect the workers in America by supporting tax increases on the freeloaders and non-producers of our society who unfairly burden their working class Union members. This section will do wonders for the entitlement class in America as they will be able to now stand up and be counted as actual taxpayers, instead of a 100% parasitic drain on society. 

Section 1-B of the Liberal Tax Increase Bill of 2011 will include several measures of the Liberals beloved “Social Justice” plank.  

Section 1-B will include mandatory work for welfare reforms built upon the 1994 GOP Welfare reform plan that reduced the number of people on welfare by 50% by the year 1998. Social justice demands that the welfare class do their part in society to reduce our national debt and rebuild America. Work for welfare will also have the added benefit of restoring some self-respect into the welfare class, so that when they scurry to their mailbox for their government entitlement ”paychecks” as they like to call them, they will have the added pleasure of knowing that they have actually earned that money. Social Justice will be well-served in this action, by evening out the class warfare of today that is being caused by 50% of the population demanding that the working class support them. True Social Justice demands that the working class be represented equally, not just the racial politics-driven minorities, the poor, or the illegal aliens in America. 

Section 1–C of the Liberal Tax Increase Bill of 2011 will also include a healthy dose of the wealth redistribution that President Obama has pushed his Democrats to achieve for 3 straight years. As in any “Social Justice, and Equal Justice” driven wealth redistributive policies, there has to be fairness across the economic spectrum. This has to start with sections 1-A and 1-B, where everyone not only shares in the wealth created by the citizenry, but also must include the sharing of the debt that the very government they have elected has created. There is no justice of any form inherent in the Liberal ideology of sharing in the wealth while refusing to share in the debt at the same time, period. Every single adult in America will share in our debt, one way or the other. This is a true form of Social Justice, so it should receive 100% Democratic support. In order to not infuriate the welfare class, we will use a long standing Democratic budgetary trick in not calling it a welfare tax. Let’s instead label it “Processing Fees to Improve America” on all unearned entitlement check stubs. That way, Democrats can stand up in Congress and tell their voting base that they did not, in fact raise taxes on them. (wink) Section 1-C simply states that every adult in America will now share in our national debt, not just the working class and job-creating business class. 

Section 2 of the Liberal Tax Increase Bill of 2011 will contain  penalties  provisions that simply states that any elected official found to be in violation of the 10 to 1 budget cuts to tax increases ratio in this bill, (as Democrats did when they increased spending by $480 billion after promising President Reagan $280 billion in cuts) will face an immediate Bernie Madoff-style trial after being suspended from Congress. For every dollar they are found to be increasing in spending instead of cutting, they will forfeit $10 dollars of their personal wealth, most of which they have acquired through illegal insider trading and ripping off the taxpayers to begin with. Every elected official who’s signature is found to be on any spending bill breaking the 10 to 1 budget cuts to tax increases provisions in this bill will share equally in paying off the illegal increased spending. How;s that for “Equal Justice” Congress ? We the people will now be able to hold elected officials responsible for their debt-spending thanks to the Liberal tax Increase bill of 2011. In the case of elected members of Congress found guilty of  increasing spending under this new law, and who can not afford to repay the citizenry the full amount, see section 3.

Section -2-A of the Liberal Tax Increase Bill of 2011 will include a very healthy dose of Barack Obama’s ideological roots that propelled him into politics in the first place: Community service. Any elected official found to be in violation of section 2, and can not repay the citizenry  for the illegal spending increases outlines in this bill will be mandated to perform community service to pay off their debt to society at a rate of 1 hour for every dollar they owe the American public. With the massive increases of manpower derived from this penalty phase,  politicians caught lying to the American people and not making the agreed upon budget cuts,  will be mandated to do everything Barack Obama says his fake jobs bill would do:  We will rebuild all of our bridges, roadways, and schools with this new-found free labor. We will send our convicted politicians into the downtrodden slums and ghettos to clean them up, giving Barack Obama and his Democrats the “urban renewal” they so desire, and it won’t cost the taxpayers one thin dime in labor. We can also have criminal politicians save the Post Office from the government and labor-union caused bankruptcy crisis they are currently under, by having them sort and deliver mail as part of their community service. Democrats have always been the champions of imprisoned felons rights groups, so we shall also mandate that all prisoners do extensive community service as part of the new social justice programs in HR 2011, thereby supplying America with an estimated annual 500 million free man-hours of labor to rebuild America.  Felonious members of Congress will be working side by side with the convicted murderers, rapists, Occupy Wall Street vermin, welfare class, and convicted illegal drug cartel members in the ultimate form of their beloved Social Justice.  

*HR-2011 is reported to have national bi-partisan support, according to several ex-members of Congress, unnamed sources,and distant friends of ex-Congressional aides, all of whom who wish to remain anonymous for personal and national security reasons.

*HR-2011 is estimated to cut our national debt by over $4 trillion dollars a year by the newly formed *Common Sense Home Budgetarians/Working Taxpayers of America Foundation.

*Yes these statements are made in humor, using fictitious group’s names to make the point of how our government uses their government-funded non-profit puppet organizations statistics and unnamed sources to claim bi-partisan support, budgetary savings etc.