The Largest Tax Increase Since World War II

Fully going over the fiscal cliff would be the largest tax increase since World War II, according to the Tax Foundation and will result in the highest top tax rates in decades. They’ve composed a chart tracking marginal rates since 1954. Take a look at the end, and the size of the jump projected in tax rates:

Read more here.

Let’s hear it for another $60 billion infrastructure ‘stimulus’

All projects shovel ready, one would assume – or at least almost ready to be shovel ready:

The legislation would provide an immediate $50 billion investment in America’s roads, bridges and airports, and transit systems and establish a $10 billion national infrastructure bank to leverage private and public capital for longer-term infrastructure projects.

“This legislation will create hundreds of thousands of construction jobs rebuilding our roads, bridges and infrastructure,” said Majority Leader Harry Reid, D-Nev.

The measure would be financed by a 0.7 percentage point surcharge on income over $1 million.

The announcement by Senate Democrats came the day after Republicans scuttled a pared-back jobs measure designed to boost hiring of teachers and first responders.

That plan failed on a 50-50 test vote that fell well short of the 60 needed to break a filibuster. Two Democrats abandoned Obama on the vote and two more who voted with the president said they couldn’t support the underlying Obama plan unless it’s changed.

Some Republicans are getting nervous, believing that voting down Obama’s jobs bill piecemeal in this fashion will backfire with the public. I doubt it. The voters aren’t buying it anymore after nearly a trillion spent on stimulus projects in 2009 and nothing really to show for it.

Obama has shot his wad on “stimulating” the economy with massive handouts to his labor allies. Another $60 billion in wasted money hasn’t a chance of passing, nor will the public hold it against the GOP for opposing the plan.

The Sugar Daddy Has Run Out of Sugar; Now We Need New Leaders

Barack Obama’s big government policies continue to fail. He should put a link to the national debt clock on his BlackBerry. The gears on that clock have nearly exploded during his administration. Yesterday’s terrible job numbers should not be a surprise because it all goes back to our debt. Our dangerously unsustainable debt is wiping out our jobs, crippling our economic growth, and jeopardizing our position in the global economy as the leader of the free world.

As a governor, I had to deal with facts, even unpleasant ones. I dealt with the world as it is, not as I wished it to be. The “elite” political class in this country with their heads in the sand had better face some unpleasant facts about the world as it is. They’ve run out of money and no amount of accounting gimmicks or happy talk will change this reality. Those of us who live in the real world could see this day coming.

Back in January 2009, as governor of Alaska, I announced: “We also have to be mindful about the effect of the stimulus package on the national debt and the future economic health of the country. We won’t achieve long-term stability if we continue borrowing massive sums from foreign countries and remain dependent on foreign sources of oil and gas.” Then I urged President Obama to veto the stimulus bill because it was loaded with absolutely useless pork and unfunded mandates. Everyone knows my early and vocal opposition to that mother of all unfunded mandates known as Obamacare starting back in August 2009, and many recall my objections to the Federal Reserves’ inflationary games with our currency known as QE2 from November 2010. It’s a matter of public record that I did not go to Harvard Law School, but I can add.

The same “experts” who got us into this mess are now telling us that the only way out of our debt crisis is to “increase revenue,” but not by creating more jobs and therefore a larger tax base; no, they want to “increase revenue” by raising taxes on job creators who are taxed enough already! As Margaret Thatcher said, “The trouble with socialism is that eventually you run out of other people’s money.” That’s where we are now. Hard working taxpayers have been big government’s Sugar Daddy for far too long, and now we’re out of sugar. We don’t want big government, we can’t afford it, and we are unwilling to pay for it.

This debt ceiling debate is the perfect time to do what must be done. We must cut. Yes, I’m for a balanced budget amendment and for enforceable spending caps. But first and foremost we must cut spending, not “strike a deal” that allows politicians to raise more debt! See, Washington is addicted to OPM – Other People’s Money. And like any junkie, they will lie, steal, and cheat to fund their addiction. We must cut them off and cut government down to size.

To paraphrase Hemingway, people go broke slowly and then all at once. We’ve been slowly going broke for years, but now it’s happening all at once as the world’s capital markets are demanding action from us, yet Obama assumes we’ll just go borrow another cup of sugar from some increasingly impatient neighbor. We cannot knock on anyone’s door anymore. And we don’t have any time to wait for Washington to start behaving responsibly. We’ll be Greece before these D.C. politicians’ false promises are over. We must force government to live within its means, just as every business and household does.

We can’t close our $1.5 trillion deficit overnight, but we must get as close as we can as soon as we can. Little nibbles here and there over 10 years (spun to sound like they’re huge budget cuts) aren’t anywhere near enough. I know from experience that cutting government spending isn’t easy. As governor, I made the largest veto cuts in my state’s history, and I didn’t make many friends doing it. But we will never recover, we will never get free of devastating debt, unless we make tough choices now. We don’t hear talk like this from leaders in D.C. or from those running for office because they say what they think we want to hear rather than what must be said.

Read more here.

I know … let’s spend some more money!

Yesterday the CBO rocked the news cycle by releasing new estimates on our future fiscal situation. It wasn’t pretty, though that shouldn’t come as a shock to you. The CBO released what is being referred to as a more “politically-realistic alternative scenario.” So these numbers are based on what the CBO expects to happen in the future: the Bush tax cuts will be extended and Medicare spending will not be cut.

So what was the result of these new numbers?

Federal debt as a share of our GDP will be 109% by 2021. By the year 2035, it will be closer to 190% of GDP.

Wow. How in the world did we get to this point? Well Barack Obama surely didn’t help. His own stimulus plan managed to nearly DOUBLE our debt. The Washington Examiner reports:

The 2011 Long-Term Budget Outlook, released Wednesday morning, reports that the “the combination of automatic budgetary responses” and Obama’s stimulus “had a profound impact on the federal budget.” According to CBO projections, before Obama’s stimulus became law, federal debt equaled 36 percent of GDP and was projected to decline slightly over the next few years. Instead, thanks in large part to the stimulus, debt reached 62 percent of GDP by 2010.

So in the wake of this news about our debt, what are the Democrats planning to do? They have two ideas.

#1: Spend more money. No, this is not a joke. A headline from Reuters, not from the Onion, reads: Democrats call for new spending in US debt deal. Yesterday, Democrats in the Senate called on Joe Biden to include “new economic stimulus spending” in his deficit reduction talks. You just read the information above … Barack Obama’s grand stimulus plan nearly DOUBLED our debt, and what do we have to show for it?

#2: Increase taxes. Because the CBO numbers assume that the Bush tax cuts will be extended, the Democrats immediately claim that if it wasn’t for the Bush tax cuts, these CBO estimates wouldn’t be nearly as dire. Guess what, they would be. According to the CBO’s own alternative scenario, even if the Bush tax cuts are extended along with the Alternative Minimum Tax, “federal revenues as a share of GDP will still exceed the post-war average by the decade’s end.” Even if the Democrats managed to repeal the Bush tax cuts, therefore increasing taxes on millions of Americans … would that solve our debt crisis? Of course not!

Marylands Owe’Malley wants all your money

Pain at the pump. If you think gas prices are high now, there is a plan that could push them even higher.

WJZ-TV Political Reporter Pat Warren tells us a hike in the gas tax could be just down the road.

A failed effort to increase the state tax on gasoline during the regular General Assembly session doesn’t mean the idea has gone away. The prospect of another bill may be proposed in a special session.

That’s right. Governor Martin O’Malley held a roundtable discussion on the transportation trust fund on Friday. And wouldn’t you know it, the gas tax came up.

This is where the rubber meets the road, and the wheel, and the axle and sometimes the muffler.

A plan to raise the state gas tax to cover road construction and repair was shot down in the General Assembly this session. As voters watched the price of gasoline go up and up, lawmakers backed off a plan to add their 12 cents to the existing 23.5 cents Marylanders already pay.

But that may not be the end of it. A special session in the fall could give the General Assembly another chance to pass it. But it may still be a long shot.

“There is one tax that the business community universally supports and that doesn’t matter what slice of it where you are and that is the gas tax. And there is one tax that the general public universally and unanimously opposes regardless of black neighborhood, white neighborhood, north, south, east and west and that is the gas tax,” O’Malley said.

But then, thousands of miles of bumpy roads could cause taxpayers to soften.

“I guess it depends on how much we’re talking,” said Katy Johnson. “It might be worth it. The roads definitely need to be improved.”

The money the state collects from the gas tax goes into the transportation trust fund, but that fund has been steadily depleted to cover budget deficits and put us on a bad road.

Read more here.

‘Cut it or Shut it!’: Tea Party Says No to Budget Compromise at DC Rally Today

Jenny Beth Martin looked out on the rain-dampened crowd along Constitution Avenue and pointed over her shoulder at the Capitol.

“They heard us, but they’re not listening!” Martin, a tea party leader, told members of the movement that helped put Republicans in charge of the House last November.

The crowd booed.

Four months after the historic election, the populist force that helped drive Republicans to power is finding that its clout on Capitol Hill isn’t automatic.

What brings you out today, one tea party member was asked. “Saving our country, obviously.”

Sensitive talks over how many billions of dollars to cut from this year‘s federal budget have strayed far below the Republicans’ campaign promise to slash $100 billion. Rather than standing firm and allowing parts of the government to shut down until enough lawmakers came around, House Speaker John Boehner was doing exactly what the tea partiers thought they had elected Republicans to avoid: negotiating with President Barack Obama and Senate Democrats over spending cuts.

“Cut it or shut it!” chanted the crowd outside the Capitol on Thursday.

“I’m not talking about $5 billion or $6 billion or $10 billion. I’m talking about $100 billion,” said one tea party activist (seen in the picture above), speaking of the budget cuts. According to the AP, $10 billion has been cut so far.

Among those not balking were some of the 87 freshmen Republicans, who more than anyone in the House owe their seats to the tea party juggernaut.

Read more here.

More for the Moochers

For those of you who are clamoring for smaller government, this statistic isn’t going to sit well with you. For those of you who are concerned that we will never again see the days of a society based on self reliance, this statistic isn’t going to sit well with you. For those of you who are worried about our spending levels, this statistic isn’t going to sit well with you. Here’s how large and inefficient our government has become, benefiting only the moochers of society …

There are 77 federal programs that provide benefits specifically to poor and low-income Americans.

How many different “benefits” can we provide for the “poor” in America? Housing subsidies, heating subsidies, food stamps, healthcare .. where does it end? The fact is that it is not going to end; it is only going to grow larger and consume us. This, from the Republican Study Committee.

… combined state and federal welfare spending has almost doubled since 1996. Since President Lyndon Johnson declared a War on Poverty in 1964, Americans have spent around $16 trillion on means-tested welfare. We will spend another $10 trillion over the next decade based on recent projections.

What do we have to show for this spending? “Even with all these resources devoted to assistance for the poor, poverty is higher today than it was in the 1970s.” Beyond the poor, poor pitiful poor .. entitlement spending will cripple us. No, I’m not being dramatic, I’m being realistic. After reading the following statistic, you should be marching on Washington with pitchforks, demanding that our politicians do something about entitlement spending. If they know that your vote depends on their cuts to entitlement spending rather than their continued efforts to maintain the status quo, then you may be able to get somewhere. But you are going to have to demand it. So here we go with some facts from the Cato Institute..

The vast majority of future debt is driven neither by defense nor discretionary programs but by so-called entitlement programs, three in particular: Social Security, Medicare, and Medicaid. In fact, by 2050, those three programs alone are expected to consume every penny that the federal government raises in taxes. That means that everything else that the government does, from domestic programs to national defense, including paying interest on the federal debt, will have to be paid for through still more debt, or else government will have to raise taxes to astronomical levels. As the full burden of entitlement programs kicks in, the federal government will consume more than 40 percent of GDP by the middle of the century. Again, half of that will be for Social Security, Medicare, and Medicaid.

How old will your children be in 2050? If you are nurturing an infant right now, that child will be 39 years old … the prime of life … in 2050. Think about that. Do you want your children to grow up to be productive members of society? Do you think that they will want every last penny of their taxes going toward the funding of the moocher society?

“ANARCHISTS” IN LONDON

Did you see what was going on in London over the weekend? There were demonstrations and quite a few riots in the streets. The people who participated in these riots were, for the most part, young, and they called themselves “anarchists.” A few of them — a very few of them — actually had an idea of what they were protesting. For the most part, this was simply a bunch of young people rioting in demonstrating because somebody gave them an excuse to do so. Many of these kids are just a few years away from being totally dependent on their mommies for their food, their shelter their clothing, and whatever other nurturing they managed to get. Many of them now look at the government as a substitute for their mommies, and their upset that the government is telling them that, for the most part the gravy train is pretty much over.

It’s also interesting to note, if you happen to see some pictures or videos of the demonstrations, the preponderance of communist and socialist flags and slogans in the crowd. Not surprising. It goes with the territory.

So these kids have their excuse to demonstrate, to put on their hoodies and their masks so they can break windows and start fires. But just what was that excuse? Well, it seems that the government of Great Britain has been spending more than it is taking in and they are now in debt to the tune of $1.4 trillion. That, of course, pales to the $14 trillion that the United States owes. Nonetheless, they’re laying off government workers in Great Britain and they’re cutting spending.

Obama calling for more infrastructure spending

WASHINGTON (AP) – Vowing to find new ways to stimulate the sputtering economy, President Barack Obama will call for long-term investments in the nation’s roads, railways and runways that would cost at least $50 billion.

The infrastructure investments are one part of a package of targeted proposals the White House is expected to announce in hopes of jump-starting the economy ahead of the November election. Obama will outline the infrastructure proposal Monday at a Labor Day event in Milwaukee.

While the proposal calls for investments over six years, the White House said spending would be front-loaded with an initial $50 billion to help create jobs in the near future.

The goals of the infrastructure plan include: rebuilding 150,000 miles of roads; constructing and maintaining 4,000 miles of railways, enough to go coast-to-coast; and rehabilitating or reconstructing 150 miles of airport runways, while also installing a new air navigation system designed to reduce travel times and delays.

Obama will also call for the creation of a permanent infrastructure bank that would focus on funding national and regional infrastructure projects.

Administration officials wouldn’t say what the total cost of the infrastructure investments would be, but did say the initial $50 billion represents a significant percentage. Officials said the White House would consider closing a number of special tax breaks for oil and gas companies to pay for the proposal.

Read more here.