Republicans have stumbled onto an exceedingly rare instance where good policy and good politics intertwine, the Cut, Cap, and Balance act. That is; cut spending, cap the amount on future spending, and amend the constitution to require a balanced budget, like they do in all but 1 state.

 

It is good policy because it not only meets the current debt ceiling challenge but prevents its reoccurrence. It also good policy because a law requiring spending limits eliminates the need for the good faith and discretion so routinely ignored for the sake of short term, both party and personal, political gains.

 

The bad news is yes, we have become so entrenched in the corrupt spoils system of governance that the nation has reached the point where the assumption of good faith and discretion in our elected representation is a lost cause.

 

The good news is our constitution provides remedies to mandate by law that which we can longer trust to sound judgment and prudent representation.

 

CCB is good politics because it finally reduces the left right argument to its essence and forces a vote.  That choice is the moderate liberal status quo of limitless government, or a conservative path to fiscal restraint and limited government.    

 

I admire President Obama just as much for threatening CCB veto as I do the House GOP for its introduction. In doing so, right before an election for his own political survival mind you, he is stating loud and clear that he is

·          against spending cuts

·          against restraining future spending

·          against a balanced federal budget

 

As a bonus, he has also made his intentions to raise taxes crystal clear, repeatedly.  Now, if the GOP is as bold in their political follow-through as they are in their policy initiative, they should nail Obama to the planks he himself inserted into the Democrat platform, early, often, relentlessly, and loudly.   If the GOP can't make lemonade from those Obama lemons they are hopeless.

 

The interesting debate is not between left and right because it's the same old worn out blather; the right calls for lower taxes and less spending and the left, too smart but gutless to actually defend higher taxes and more spending, calls them senior-killing, kid-starving, racist, homophobes.  Whatever. This is getting almost as tedious as it is predictable.  Somebody tell these idiots no one uses record players anymore, and their insistence in replaying the broken ones indicates immaturity with a tinge of dementia, or maybe Tourettes disorder.

 

The more interesting debate is between the establishment GOP and the TEA party.  The challenge to the former is in perpetuating the status quo without appearing to, or walking the status quo walk while talking the TEA party talk.  The challenge to the TEA wing is holding their ground, which seems to well met so far.  Funny how stiff a spine can be when reinforced by a firm core of principles backed up by a constitution.

 

Speaking of core principles, can anyone offer a clue about the foundational principles of progressivism, not so much regarding what they are but rather if there are any, beyond a bastardized American version of Marxism, because let’s face it, that philosophy is about as old as the phonograph, without the successful track record.

 

by Winks

Okay, so I'm not writing much original copy here, but the power of this data needs no preface or epilogue.  So much for liberal class warfare. 


FROM THE OFFICE OF PUBLIC AFFAIRS

The individual income tax is highly progressive – a small group of higher-income taxpayers pay most of the individual income taxes each year. 

• In 2001, the latest year of available data, the top 5 percent of taxpayers paid more than one-half (53.3 percent) of all individual income taxes, but reported roughly one-third (32.0 percent) of income. 

• The top 1 percent of taxpayers paid 33.9 percent of all individual income taxes in 2001.   This group of taxpayers has paid more than 30 percent of individual income taxes since 1995.  Moreover, since 1990 this group’s tax share has grown faster than their income share.  

• Taxpayers who rank in the top 50 percent of taxpayers by income pay virtually all individual income taxes.  In all years since 1990, taxpayers in this group have paid over 90 percent of all individual income taxes.  In 2000 and 2001, this group paid over 96 percent of the total.   

• The President’s tax cuts have shifted a larger share of the individual income taxes paid to higher income taxpayers.   In 2004, when most of the tax cut provisions are fully in effect (e.g., lower tax rates, the $1,000 child credit, marriage penalty relief), the projected tax share for lower-income taxpayers will fall, while the tax share for higher-income taxpayers will rise. 

• The share of taxes paid by the bottom 50 percent of taxpayers will fall from 4.1 percent to 3.6 percent.  
  
• The share of taxes paid by the top 1 percent of taxpayers will rise from 30.5 percent to 32.3 percent.   

• The average tax rate for the bottom 50 percent of taxpayers falls by 16 percent as compared to a 12 percent decline for taxpayers in the top 1 percent. 

Now, go to the link to see the tables for the truth about the Bush tax cuts.  And the Obamanistas keep carping about "shared sacrifice"?  The "evil rich" need to pay more?  Really?

http://www.treasury.gov/press-center/press-releases/Pages/js1287.aspx

My tradition of dusting off and sharing this story from a few years ago continues.  Have a nice long weekend everybody...

by Winks

GE has once more been in the press alot lately, after the hysterical left-wing media discovered that they reported net profit of $14 billion, but, OMG, paid no Federal income taxes.  Those evil, greedy corporations have screwed us yet again!  We demand hearings!  We demand justice!  We demand.... We demand...

Okay, comrades, calm down now and read on.

Well, yes, it is certainly appalling to think that billions in profit can go untaxed, but that's our tax code and understanding it can put things in perspective (although it won't make you feel any better). This "perversity" as some call it in t...he code, is a favorite of the left because it provides great talking points for "greedy corporation" rhetoric. Problem is, the angst is badly misplaced.

The ability of corporations to avoid taxes through loss carry-forwards has been around for decades....and all companies, large and small can take advantage of it. It's not overly-complex to apply (you can do it with Turbo-Tax) and the concept is actually quite simple. What it says is that if a compnay loses money in one or more years (consecutively), it can carry those losses forward for purposes of deferring income tax liability in future profitable years. So, in 2008-09 GE Capital lost billions in its finance unit for the same reason all the other lenders did: Risky lending in housing. Fast forward to 2010 and GE is profitable again due to growth in its non-finance units, but guess what: the loss carry-forwards were sitting there waiting, and because of the enormity of the losses, were more than enough to offset taxes that would have been otherwise owed on the profits earned last year. In fact, it wouldn't surprise me if they have LCF this year as well.

Now, it's easy to demonize GE as "greedy" for this travesty, but this isn't driven by corporate greed. I happen to think GE is corrupt in many other ways, but in this instance it is only using the code to its advantage, same as all American corporations do when they incur heavy losses. Did greed play a role in fashioning the code? Could very well have, but that's not the argument. It does help make the case though that reforming the tax code must be a key element in getting control of our finances....and I'm not talking about raising taxes. I'm talking about lowering the rate and ending the deductions and exemptions...which are simply mechanisms for picking winners and losers and rewarding Congressmen with lifetime tenure in office. THIS we MUST correct if we are ever going to fix the mess we're in.

Perhaps the best way to really grasp the true scope of our spending problem is the fact that  

The countdown to the shutdown looms and the questions on the minds of millions remains; what if the government shuts down - - and nobody notices?

It appears the political Gods want to keep the ping-pong game that is Wisconsin politics going for the time being. As they say, you can't make this up.  

Continuing our string of historic elections Wisconsin has yet another tomorrow.   Here in Milwaukee  we are about to find out whether money or experience matters most in the County Executive race to replace now Governor Walker. Inherited-not-earned gazillionaire, drunk driver, parking ticket scofflaw, tax-evader Chris Abele is up against former State Rep Jeff Stone whose worst criticism is a voting record similar to that of Scott Walker. 

It is becoming increasingly clear that Obama has determined his re-election all depends on how much he can emulate George W Bush between now and November 2012.