Tag: Social Security

American Jobs Act: Fact or Fiction?

President Barack Obama and Warren Buffett in t...
Image via Wikipedia

I listened to Obama’s American Jobs Act speech last night and I must confess; I was impressed.  It was very well written.  Whoever wrote it did a brilliant job.  It was well paced, full of catchy and patriotic slogans, and designed to appeal to the masses.  Unfortunately, it was also total BS!  It was the same old progressive liberal “song and dance” in new clothing … just like I predicted it would be.  Much of it sounds so good on the surface and shallow-thinkers will tout its fairness and praise Obama for his efforts. 

The plan Obama laid out Thursday night in his speech would cost nearly $450 billion and would increase and extend a payroll tax cut for workers that goes to Social Security. It also provides a tax cut to employers. You can argue that some of this will help in the short-term, but most of Obama’s proposals actually stand very little chance of ever being implemented, at least without the backing of congressional Republicans.  And, that may not be very likely!

The truth is Obama is trying to set up a “win-win” scenario for his re-election campaign: 

  • Win v.1: If Congress passes his plan, Obama will be seen as the hero who saved the day (at least until the problems in his plan become clear some time down the road).  I am sure he is betting this will happen after November 2012.
  • Win v.2: If congress does not pass his plan, he can point to them and say, “See, I tried to do something to save the day and the republicans would not work with me.  It is their fault.  And in this version, the problems with his plan never truly surface.

What are the problems with his Obama’s job plan you might ask.  There are plenty.  First, let’s examine a few of the claims he make in his speech:

Obama claim #1: Everything in this bill will be paid for.

The Facts: Nowhere did Obama say exactly how he would pay for the measures contained in his nearly $450 billion American Jobs Act.  All he said was that he would send his proposed specifics in a week to the new congressional super committee charged with finding budget savings. White House aides have suggested that the new short-term deficit spending to stimulate job creation would be paid for in the future but they did not say what would be cut or what revenues they would use. So in reality, Obama’s jobs plan is simply a “promissory note” from a president and lawmakers who will probably not be in office when the bills come due. Any future Congress could simply decide not to pay that bill. So there is no kind of guarantee his program (that clearly will increase annual deficits in the short-term) will ever be paid for in the long-term.

Obama claim #2: Everything in this proposal has been supported by both Democrats and Republicans, including many who sit here tonight.”

The facts: Obama’s proposed cut in the Social Security payroll tax would seem likely to receive significant Republican support. However, Obama proposes paying for the plan in part with tax increases that have already generated very strong Republican opposition.

Obama again proposes to end Bush-era tax cuts for the wealthiest Americans (which he has defined as couples earning over $250,000 a year or people earning over $200,000 a year), saying that the wealthy need to pay “their fair share.”  This should come as no surprise to anyone since it has been the liberal’s standard modus operandi for decades.  In his speech, Obama even mentioned his good buddy, Warren Buffett, who according to this speech, asked Obama to remove a loop-hole that Buffett uses to avoid paying taxes so he can also “pay his fair share.”   So does Warren Buffett actually have to take advantage of the loop-hole?  Why is Warren Buffett’s company, Berkshire Hathaway, involved in a legal battle with the IRS now to avoid paying $1 billion in back taxes … if Warren Buffett so truly wants to pay his fair share?  Who gets to decide what that “fair Share” is?  Progressive-liberal radicals? What a bunch of Bull Shit!

I am not wealthy!  I am not even upper middle class! But, even I can see the “wrong” in liberals wanting to “steal” the hard –earned money of successful people and “redistributing” it to their voters. When the government starts taking the property of its citizens in the name of some perceived and mutable notion of “fair,” then that government has just lost its right to exist!

But what are the facts surrounding the idea of the wealthy paying their fair share? The facts are that the wealthy already do pay their fair share! The top 5 percent of wage earners in this country (this includes all income, not just wages, but excludes Social Security) pay 53.25 % of all income taxes, the top 10 % pay 64.89 % of all taxes, the top 25 % pay 82.9 % of all taxes, the top 50 % pay 96.03 % of all taxes, and the top 1 percent is paying more than ten times the federal income taxes than the bottom 50 percent.

How about the bottom 50 percent of wage earners (which, by the way, includes me)? We pay 3.97 % of all income taxes. In addition, an estimated 43.4 percent of Americans do not even pay federal income tax. Shouldn’t Obama be asking for that 43.4 percent and the bottom 50 percent to pay their “fair share”?

This is why Tea Party members say no to new taxes and work to curb the government’s out-of-control spending; and why many Republicans have adamantly blocked what they view as new taxes without first making real and needed cuts in wasteful government spending. As recently as last month, House Republicans refused to go along with any deal to raise the government’s borrowing authority that included new revenues, or taxes.

Obama claim #3: The American Jobs Act will not add to the deficit.

The Facts: It simply not true that this program will not raise the deficit over the next year or two.  That is because most of Obama’s envisioned spending cuts and tax increases will have to come later on down the road out of fear that, if enacted now, they will jeopardize the fragile “recovery.”  Deficits are calculated over each year. The accumulation of years of deficit spending has produced a national debt headed toward $15 trillion. Maybe Obama simply meant to say that he hoped his programs would not further increase the national debt.

Obama claim #4: The American Jobs Act meets the urgent need to create jobs right away.

The Facts: Obama’s plan meets his need to make the government even bigger and more powerful. And, not all the president’s major proposals are likely to yield quick job growth if adopted. One such proposal is to set up a new national infrastructure bank to raise private capital for roads, rail, bridges, airports and waterways. Even supporters of such a bank doubt it could have much impact on jobs in the next two years because it takes time to set up. The idea will run into opposition from most conservatives because such a bank would simply give the federal government way too much power. It makes much more sense to divide money among already existing state infrastructure banks, but that is not in keeping with the socialist agenda … is it?

So how would you describe Obama’s speech?  I am not a big fan of Karl Rove, but I do like how he described Obama’s speech using 12 words in a recent article on FoxNews.com.  Here are just a few of them:

  • Presumptuous: According to Rove, during the speech Obama demanded no less than 17 times that Congress immediately pass a bill no one has seen.  I did not count, but I did hear that phrase used many times.
  • Mind-boggling: Obama wants to again steal hundreds of billions from Social Security for another stimulus. Wait a minute … isn’t that supposed to be what the liberal democrats accuse the Tea Party of wanting to do … destroy social security?
  • Arrogant: Obama refused to consult with anyone about his plan in advance?  Well, we all know he is pretty arrogant
  • Unnecessary: Yep!  Should have watched a football game or Jeopardy! 
  • Completely political: What did you expect?
How about cutting back on some government waste, redundancy, and inefficiency to pay for some of your American Jobs Act programs.  Again just a few examples:
  • 342 economic development programs
  • 130 programs serving the disabled
  • 130 programs serving at-risk youth
  • 90 early childhood development programs
  • 75 programs funding international education, cultural, and training exchange activities
  • 72 federal programs dedicated to assuring safe water
  • 50 homeless assistance programs
  • 45 federal agencies conducting federal criminal investigations

Related articles

Deficit concerns loom over Obama’s jobs package (cbsnews.com)

The American Jobs Act: Rhetoric & Attacking Incentive Lives On (247wallst.com)

Obama Presents American Jobs Act (Video) (lezgetreal.com)

Support Mark Devol for Congress in 2010

I have known Mark Devol and his wife, Becky, for many years.  I taught their two girls karate for several years when they were younger.  Mark and Becky DeVol are both solid conservative Americans!  Mark is running for Congress in 2010 in the Third District of Tennessee.

Mark is a millwright and runs his own company, Devol Millwork.  He has, on occasion, employed some of the young men who passed through my dojo.  Becky is the treasurer for the Andersonville Volunteer Fire Department and home schooled their two daughters … who are now both junior volunteer firefighters.

Here are some of the positons Mark DeVol takes on his campaign website:

Government Reform

Mark supports Congressional Term Limits.  He supports reducing the size of the federal governmen, and generating  federal revenue through a Fair Tax.

Mark supports the creation of a 10th Amendment Commission to review the constitutionality of all federal agencies and programs under Section 8, and … returning the powers and responsibilities left to the states back to the states.  

He also supports the bill sponsored by John Shadeeg of Arizona that states that all bills introduced in the U.S. Congress must include a statement setting forth the specific constitutional authority under which the proposed law is being enacted.  Such a measure would force a continual re-examination of the role of the federal government and would certainly go along ways toward curtailing the evermore intrusive reach of the federal government.

Under Section 8 of the U.S. Constitution, Congress has the power to do 18 specific things.  They are:

  • To lay and collect Taxes
  • To borrow Money
  • To regulate Commerce
  • To establish a uniform Rule of Naturalization
  • To establish uniform Laws of Bankruptcies
  • To coin Money
  • To establish Post Offices
  • To promote the progress of Science and useful Arts
  • To establish a Courts system inferior to the Supreme Court
  • To declare War
  • To provide and  maintain a Military
  • To make all Laws necessary and proper for carrying into Execution the foregoing Powers

Mark believes the federal government should stick to doing just that.  

For my part, I find that I strongly agree with his position …

Homeland Security

Mark believes that the primary function of the federal government is to protect its citizens by providing for a strong national defense  

…. I absolutely agree!

Immigration

Congress is charged with the responcibility of securing the borders of this country and  Mark DeVol thinks they should do just that.  

I agree but would also like to see that tied to no amnesty for illegal immigrants … and temporary worker permits for honest migrant workers!

Energy

Mark supports energy independence and achieving this by increasing nuclear energy production, oil production and building modern oil refineries while our scientists work to continue developing alternative energy sources.  

Makes sense to me ….

Budget and the Economy

Mark supports a budget balanced by utilizing fiscally conservative principles, lowering taxes, and letting the American people decide where to spend their money  ….  Can I get an Amen!

Education

According to Mark, our education system must be able to meet the demands of a rapiding growing and prosprous economy.  He says that the fundamental concepts of  personal finance, basic economics, personal responsibility, and self-governence must be taught … all students must be given the right tools to succeed!  

 … sounds much better than teaching them to put condoms on a banana or that God is a myth to me!

Mark also supports increased salary and bonus for effective teachers and Tort reform  

Health Care

Mark points to Cover TN as a good  example of what works in health care.  He supports making all medical expenses tax exempt, allowing the purchase of health insurance on the free market, eliminating state mandates and allow purchasing of catastrophic insurance, allowing medicare patients to utilize their health savings accounts and to have optional coverage, and Tort reform

….  again, this just make too much sense!  But there is always someone one looking for handouts!

Social Security  

Mark wants to protect citizens who have paid into and rely on social security.  According to Mark, future generations should be educated to develop the financial skills and discipline to fund their own retirement

… can I please get another Amen!

I like it!  No political double talk … just sound American Principles and Values being reintroduced and put back to work!  

These are the very same Values and Principles that originally made this Country great … and that the enlightened progressive  left-wing liberals (or whatever you want to call them) have tried so hard to stamp out … rugged individuality, personal responsibility, freedom of opportunity, and the true American liberty to succeed …  or fail … with the freedom to try again!  

For more information about Mark Devol and his campaign, please visit his website at www.devol2010.com