President Obama is trying to re-write history when he says that his tax program is the same as Bill Clinton supported "when 23 million jobs were created."
It's not that way at all. Clinton's 1993 increase of personal income taxes on the top bracket to 39.6% had a very negative effect on the economy. It was only after Clinton's 1997 cut the capital gains tax - the opposite of what Obama proposes - that job growth really piled up.
When Clinton took office he did all the wrong things. He raised taxes sharply, hiking the top bracket from 35% to 39.6% and raised taxes on gasoline. The result was that the economy, which had been recovering, staggered. GDP growth dropped to 0.7% in Clinton's first quarter (down from 4.3% in Bush's last quarter) and stayed around 2% for the rest of 1993. Personal income rose 6.3% in 1992 under Bush but slowed to 4.1% under Clinton in 1993.
The tax increases Clinton passed failed to generate the revenue he had expected. The tax paradox set in. Martin Feldstein, former Chairman of the Council of Economic Advisors, summed it up in his Wall Street Journal article, "What the '93 Tax Increase Really Did," published on October 26, 1995. He said taxpayers reduced their incomes when they saw the tax hikes coming. Feldstein writes that "the Treasury lost two-thirds of the extra revenue that would have been collected if taxpayers had not changed their behavior." Because of Clinton's tax hikes, real personal income fell by $25 billion. High income taxpayers, facing the prospect of a tax increase reported 8.5% less taxable income in 1993 than they would have if their tax rates had not changed. The tax paradox!
Then Clinton got wiped out in the Congressional elections of 1994, losing control of the Senate and the House - the first time the Republicans had run the House in forty years!
Clinton suddenly saw the error of his ways and began to hold down spending and push for a tax cut. In 1997, he and the Republican Congress combined to cut capital gains taxes from 28% (the rate to which Bush had increased it) to 20%. The result was electrifying! Real wage growth was 6.5% in the four years after the tax cut compared to minuscule wage growth of 0.8% over the four years after Clinton's tax increase!
And the tax paradox was again evident: lower rates produced higher revenues! In 1996, the year before the capital gains cut, the tax collected revenues of only $66 billion. In the four years after the cut, they averaged $100 billion a year. But, what was more important was the surge in economic activity that the capital gains tax cut generated. In 1996, before the tax cut, there were $261 billion in capital gains in America. In the three years after the cut, capital gains rose to an average of $440 billion. The increased tax collections and the greater economic activity were such that they pushed the budget into a surplus for the first time since the 1950s.
These facts may be "inconvenient truths" for Obama to face but they are the facts!
Tuesday, July 10, 2012
Mr. Obama keeps attacking Republicans for refusing to pass his latest
stimulus-spending splurge. He seems to have forgotten that less than two years
ago the GOP won a landslide midterm election by promising voters they would end
the avalanche of spending and debt.
The only jobs plan that has any chance of passing the House and Senate before the election is a bill to cancel all tax increases in 2013. With White House support, this would fly through the House and Senate and eliminate one major antigrowth headwind, as even some Keynesian economists and the Congressional Budget Office are telling the President.
The dilemma for the White House is that calling off next year's tax increase would undercut Mr. Obama's re-election theme of redistributing income. His liberal base has become so obsessed with the politics of envy that it is demanding higher taxes no matter the economic or political costs.
The question for Senate Democrats is whether they want to jeopardize their personal futures, and their majority, by jumping off the same tax cliff. With the House poised to pass an extension of the tax rates for at least one year, Senate Democrats have to decide if they want to vote before Election Day to wallop an already weak economy with a giant tax increase.
The only jobs plan that has any chance of passing the House and Senate before the election is a bill to cancel all tax increases in 2013. With White House support, this would fly through the House and Senate and eliminate one major antigrowth headwind, as even some Keynesian economists and the Congressional Budget Office are telling the President.
The dilemma for the White House is that calling off next year's tax increase would undercut Mr. Obama's re-election theme of redistributing income. His liberal base has become so obsessed with the politics of envy that it is demanding higher taxes no matter the economic or political costs.
The question for Senate Democrats is whether they want to jeopardize their personal futures, and their majority, by jumping off the same tax cliff. With the House poised to pass an extension of the tax rates for at least one year, Senate Democrats have to decide if they want to vote before Election Day to wallop an already weak economy with a giant tax increase.
Tuesday, July 3, 2012
Just the Facts
It's no news that lack of affordability is the main reason many small business owners don't offer health coverage to their employees. It's not that they don't want to provide it -- they do. But unlike big businesses, small firms continue to face premium rates that are unpredictable in nearly every sense -- except for the guarantee that they will always increase.
That's why June 28 was a day for the small business history books. The Supreme Court ruling to uphold the Affordable Care Act protects a number of benefits that are helping offset small businesses' costs as they brave the tumultuous health coverage market. Provisions such as rate review and Medical Loss Ratio (MLR) have already resulted in lower premium costs and cash back for small employers. Millions of small businesses in 42 states will get rebates for part of their coverage costs in August because their insurers failed to spend 80 percent of their premium dollars on patient care and quality improvement as required by the MLR rule.
On top of that, the law's health insurance tax credits for small business owners with fewer than 25 full-time employees are helping hundreds of thousands of entrepreneurs who offer coverage save money on their health care costs. With those savings, they are reinvesting in their businesses and even creating new jobs. Now that the law's fate is no longer up in the air, eligible small business owners can look forward to 2014 when the maximum amount of the tax credit increases from 35 percent of their premium costs to 50 percent. And companies with with fewer than 50 employees are NOT REQUIRED to pay for health insurance for their employees, and if you have less than 25 you will get a tax credit to help pay if you choose.
So what's wrong with that. The fear campaign continues by the Republicans.
The answer is really simple the Republicans believe health insurance should not be provided by the goverment and every country in the world does now.
That's why June 28 was a day for the small business history books. The Supreme Court ruling to uphold the Affordable Care Act protects a number of benefits that are helping offset small businesses' costs as they brave the tumultuous health coverage market. Provisions such as rate review and Medical Loss Ratio (MLR) have already resulted in lower premium costs and cash back for small employers. Millions of small businesses in 42 states will get rebates for part of their coverage costs in August because their insurers failed to spend 80 percent of their premium dollars on patient care and quality improvement as required by the MLR rule.
On top of that, the law's health insurance tax credits for small business owners with fewer than 25 full-time employees are helping hundreds of thousands of entrepreneurs who offer coverage save money on their health care costs. With those savings, they are reinvesting in their businesses and even creating new jobs. Now that the law's fate is no longer up in the air, eligible small business owners can look forward to 2014 when the maximum amount of the tax credit increases from 35 percent of their premium costs to 50 percent. And companies with with fewer than 50 employees are NOT REQUIRED to pay for health insurance for their employees, and if you have less than 25 you will get a tax credit to help pay if you choose.
So what's wrong with that. The fear campaign continues by the Republicans.
The answer is really simple the Republicans believe health insurance should not be provided by the goverment and every country in the world does now.
Monday, July 2, 2012
Been doing some Reading!
The first forty years after WW 2 the financial sector was 10% of GDP and 12% to 15% of corporate profits. Bankers were paid a little more than average workers. 2006 financial sector became 16% of GDP and 40% of corporate profit and financial professionals were being paid more than anyone else.
Example Merrill Lynch in 2008 generated 100 BILLION in revenue and paid 80 BILLION to its workers. At the same time Merrill lost almost 15 billion and left a trail of empty houses and huge losses for its investors like pension funds for regular people.
More than half the stock trades now are held for less than 11 SECONDS.
Now trading is done by huge trading desks soley for speculation and those large positions often work large seesaws in the market place. New regulations are designed to stop such behavior! But of course the Republican party will tell they are not needed while they are collecting large donations from these banks.
Few people realize that federal taxes of all kinds are roughly 15% of GDP is the lowest since 1950.
Allowing the Bush tax cuts for all to expire on schedule would nearly balance the budget. Why isn't anybody talking that way. American's are so convinced we are over taxed now it's because the scorched earth Republican talk about taxes has stopped all sensible solutions.
Example Merrill Lynch in 2008 generated 100 BILLION in revenue and paid 80 BILLION to its workers. At the same time Merrill lost almost 15 billion and left a trail of empty houses and huge losses for its investors like pension funds for regular people.
More than half the stock trades now are held for less than 11 SECONDS.
Now trading is done by huge trading desks soley for speculation and those large positions often work large seesaws in the market place. New regulations are designed to stop such behavior! But of course the Republican party will tell they are not needed while they are collecting large donations from these banks.
Few people realize that federal taxes of all kinds are roughly 15% of GDP is the lowest since 1950.
Allowing the Bush tax cuts for all to expire on schedule would nearly balance the budget. Why isn't anybody talking that way. American's are so convinced we are over taxed now it's because the scorched earth Republican talk about taxes has stopped all sensible solutions.
Sunday, July 1, 2012
Saturday, June 30, 2012
OBAMA lISTEN UP BE BIG
If we can just get a few big things right today — a Simpson-Bowles-like grand bargain on spending and tax reform that unleashes entrepreneurship, a deal on immigration that allows the most energetic and smartest immigrants to enrich our country and a plan on energy that allows us to tap all these new sources in environmentally safe ways — no one could touch us as a country. Connect the dots for people, Mr. President — be the guy taking the risk to offer that big plan for American renewal, and Romney will never be able to beat you.
Friday, June 29, 2012
How a Leading Analyst Sees the Ruling
Erick Erickson is fundamental reading for conservatives. This is, in my view, an outstanding analysis of Roberts' ruling.
Dear RedState Reader,
As you have no doubt heard by now, the Supreme Court largely upheld Obamacare with Chief Justice John Roberts writing the majority 5 to 4 decision. Even Justice Kennedy called for the whole law to be thrown out, but John Roberts saved it.
Having gone through the opinion, I am not going to beat up on John Roberts. I am disappointed, but I want to make a few points. John Roberts is playing at a different game than the rest of us. We’re on poker. He’s on chess.
First, I get the strong sense from a few anecdotal stories about Roberts over the past few months and the way he has written this opinion that he very, very much was concerned about keeping the Supreme Court above the partisan fray and damaging the reputation of the Court long term. It seems to me the left was smart to make a full frontal assault on the Court as it persuaded Roberts.
Second, in writing his opinion, Roberts forces everyone to deal with the issue as a political, not a legal issue. In the past twenty years, Republicans have punted a number of issues to the Supreme Court asking the Court to save us from ourselves. They can’t do that with Roberts. They tried with McCain-Feingold, which was originally upheld. This case is a timely reminder to the GOP that five votes are not a sure thing.
Third, while Roberts has expanded the taxation power, which I don’t really think is a massive expansion from what it was, Roberts has curtailed the commerce clause as an avenue for Congressional overreach. In so doing, he has affirmed the Democrats are massive taxers. In fact, I would argue that this may prevent future mandates in that no one is going to go around campaigning on new massive tax increases. On the upside, I guess we can tax the hell out of abortion now. Likewise, in a 7 to 2 decision, the Court shows a strong majority still recognize the concept of federalism and the restrains of Congress in forcing states to adhere to the whims of the federal government.
Fourth, in forcing us to deal with this politically, the Democrats are going to have a hard time running to November claiming the American people need to vote for them to preserve Obamacare. It remains deeply, deeply unpopular with the American people. If they want to make a vote for them a vote for keeping a massive tax increase, let them try.
Fifth, the decision totally removes a growing left-wing talking point that suddenly they must vote for Obama because of judges. The Supreme Court as a November issue for the left is gone. For the right? That sound you hear is the marching of libertarians into Camp Romney, with noses held, knowing that the libertarian and conservative coalitions must unite to defeat Obama and Obamacare.
Finally, while I am not down on John Roberts like many of you are today, i will be very down on Congressional Republicans if they do not now try to shut down the individual mandate. Force the Democrats on the record about the mandate. Defund Obamacare. This now, by necessity, is a political fight and the GOP sure as hell should fight.
60% of Americans agree with them on the issue. And guess what? The Democrats have been saying for a while that individual pieces of Obamacare are quite popular. With John Roberts’ opinion, the repeal fight takes place on GOP turf, not Democrat turf. The all or nothing repeal has always been better ground for the GOP and now John Roberts has forced everyone onto that ground.
It seems very, very clear to me in reviewing John Roberts’ decision that he is playing a much longer game than us and can afford to with a life tenure. And he probably just handed Mitt Romney the White House.
*A friend points out one other thing — go back to 2009. Olympia Snowe was the deciding vote to get Obamacare out of the Senate Committee. Had she voted no, we’d not be here now.
Read my full thoughts here <http://info.redstate.com/egl40/c2.php?EGPB/175014635/257550/H/N/V/http://www.redstate.com/erick/2012/06/28/im-not-down-on-john-roberts/> .
Sincerely yours,
Erick Erickson
Editor,RedState.com <http://info.redstate.com/egl40/c2.php?EGPB/175014635/257551/H/N/V/http://www.redstate.com/>
Dear RedState Reader,
As you have no doubt heard by now, the Supreme Court largely upheld Obamacare with Chief Justice John Roberts writing the majority 5 to 4 decision. Even Justice Kennedy called for the whole law to be thrown out, but John Roberts saved it.
Having gone through the opinion, I am not going to beat up on John Roberts. I am disappointed, but I want to make a few points. John Roberts is playing at a different game than the rest of us. We’re on poker. He’s on chess.
First, I get the strong sense from a few anecdotal stories about Roberts over the past few months and the way he has written this opinion that he very, very much was concerned about keeping the Supreme Court above the partisan fray and damaging the reputation of the Court long term. It seems to me the left was smart to make a full frontal assault on the Court as it persuaded Roberts.
Second, in writing his opinion, Roberts forces everyone to deal with the issue as a political, not a legal issue. In the past twenty years, Republicans have punted a number of issues to the Supreme Court asking the Court to save us from ourselves. They can’t do that with Roberts. They tried with McCain-Feingold, which was originally upheld. This case is a timely reminder to the GOP that five votes are not a sure thing.
Third, while Roberts has expanded the taxation power, which I don’t really think is a massive expansion from what it was, Roberts has curtailed the commerce clause as an avenue for Congressional overreach. In so doing, he has affirmed the Democrats are massive taxers. In fact, I would argue that this may prevent future mandates in that no one is going to go around campaigning on new massive tax increases. On the upside, I guess we can tax the hell out of abortion now. Likewise, in a 7 to 2 decision, the Court shows a strong majority still recognize the concept of federalism and the restrains of Congress in forcing states to adhere to the whims of the federal government.
Fourth, in forcing us to deal with this politically, the Democrats are going to have a hard time running to November claiming the American people need to vote for them to preserve Obamacare. It remains deeply, deeply unpopular with the American people. If they want to make a vote for them a vote for keeping a massive tax increase, let them try.
Fifth, the decision totally removes a growing left-wing talking point that suddenly they must vote for Obama because of judges. The Supreme Court as a November issue for the left is gone. For the right? That sound you hear is the marching of libertarians into Camp Romney, with noses held, knowing that the libertarian and conservative coalitions must unite to defeat Obama and Obamacare.
Finally, while I am not down on John Roberts like many of you are today, i will be very down on Congressional Republicans if they do not now try to shut down the individual mandate. Force the Democrats on the record about the mandate. Defund Obamacare. This now, by necessity, is a political fight and the GOP sure as hell should fight.
60% of Americans agree with them on the issue. And guess what? The Democrats have been saying for a while that individual pieces of Obamacare are quite popular. With John Roberts’ opinion, the repeal fight takes place on GOP turf, not Democrat turf. The all or nothing repeal has always been better ground for the GOP and now John Roberts has forced everyone onto that ground.
It seems very, very clear to me in reviewing John Roberts’ decision that he is playing a much longer game than us and can afford to with a life tenure. And he probably just handed Mitt Romney the White House.
*A friend points out one other thing — go back to 2009. Olympia Snowe was the deciding vote to get Obamacare out of the Senate Committee. Had she voted no, we’d not be here now.
Read my full thoughts here <http://info.redstate.com/egl40/c2.php?EGPB/175014635/257550/H/N/V/http://www.redstate.com/erick/2012/06/28/im-not-down-on-john-roberts/> .
Sincerely yours,
Erick Erickson
Editor,RedState.com <http://info.redstate.com/egl40/c2.php?EGPB/175014635/257551/H/N/V/http://www.redstate.com/>
Thursday, June 28, 2012
Imagine That! The Dems Raised Taxes
Pelosi famously said that we have to pass the bill to find out what is in it, and now we know. Taxes!
Do you remember that our President, the Senate Leader and the then-Speaker all assured us that they were not raising taxes and that they would in fact lower medical costs. It turns out that the Court, which apparently did "find out what is in it" found taxes. Translation: Obama, Reid and Pelosi lied.
Shocking, isn't it!
There is absolutely no evidence that costs are coming down or that they will go down. The federal government is not well known for its cost effectiveness, and with its takeover of the health care delivery system it is only going to get worse.
My hope is that the Republicans will take this issue and run with it. I trust the markets much more than the Feds, and I think that is a majority view. If Obamacare stands costs will continue to rise and individual choice will be significantly constrained.
Vote the liars out.
Cheers,
Hags
Do you remember that our President, the Senate Leader and the then-Speaker all assured us that they were not raising taxes and that they would in fact lower medical costs. It turns out that the Court, which apparently did "find out what is in it" found taxes. Translation: Obama, Reid and Pelosi lied.
Shocking, isn't it!
There is absolutely no evidence that costs are coming down or that they will go down. The federal government is not well known for its cost effectiveness, and with its takeover of the health care delivery system it is only going to get worse.
My hope is that the Republicans will take this issue and run with it. I trust the markets much more than the Feds, and I think that is a majority view. If Obamacare stands costs will continue to rise and individual choice will be significantly constrained.
Vote the liars out.
Cheers,
Hags
Tuesday, June 26, 2012
WRITE IN CANIDATE?
I'm in the writing mode so hang on. The unfortunate thing about this coming election is that both sides will not examine their rigid ideas. For Mitt evry problem will be solved with lower taxes for the so called "job creators". For Obama it's all about the social programs for his liberal base. For me someone who voted " the hope" it's disappointing. Obama wasted his election on a compromised health care bill that no one likes really. A strong case should have been made for a single payer minimal coverage with a tiered system where people can buy into special premium coverage, a guest worker program no citizenship for hard working immigrants who don't break the law while here, but these of course need compromise, and when you have a Republican party that says our goal is a one term President, what do you expect? If I took a job and a co-worker told me on day 1 his goal was to see me get fired, I would ask why work this person?
A third choice/? But who does a write in hurt the Most? Let me Know?
A third choice/? But who does a write in hurt the Most? Let me Know?
Who is Best for America ?
The reality is " are these two candidates the best we have to offer"? Obama has shown he is over matched for the job. Has chosen poorly what problems to try and solve first, second, and so on! He has chosen poorly on advisors, Cabinet, and for sure Attorney General.
Mitt has no center will say and do anything to get the job. Mitt is a light weight of all lightweights. He can't say or stand for anything untill his handlers have told him what to say. Obama might have a teleprompter to tell him what to say , but Mitt doesn't have a position other than I think it would be cool to be President. Mitt has not grown up in America he was born on third base and thought he hit a triple. Obama raised middle class at best has seen people struggle and knows what it means to start behind the 8-ball. Now Obama has done a poor job, let's not quibble about that. The question is Who is best for everybody? Man I wish we had a third choice!
Mitt has no center will say and do anything to get the job. Mitt is a light weight of all lightweights. He can't say or stand for anything untill his handlers have told him what to say. Obama might have a teleprompter to tell him what to say , but Mitt doesn't have a position other than I think it would be cool to be President. Mitt has not grown up in America he was born on third base and thought he hit a triple. Obama raised middle class at best has seen people struggle and knows what it means to start behind the 8-ball. Now Obama has done a poor job, let's not quibble about that. The question is Who is best for everybody? Man I wish we had a third choice!
Sunday, June 17, 2012
Saturday, June 9, 2012
He is going to change....you hope
Obama is heading for a landslide defeat.
He will not let go of his Liberal/Socialist views, will not despite a mountain of evidence they are failing. Despite a growing discontent of voters, including his base.
His ridiculous class warfare argument is drawing fire from even within his own party. He and his views have been trounced at every election since he became President.
Listening to even a little political news, the obvious question is why? Why not moderate just a little? Talk about easy, if he was even just a little more pro business, pro capitalism, man things would fall right into his lap.
Then this writer had his Eureka moment.
He will, he is going to moderate...triangulate, fire his core staff and reintroduce himself as....Obama the moderate.
Bet's available, any takers?
He will not let go of his Liberal/Socialist views, will not despite a mountain of evidence they are failing. Despite a growing discontent of voters, including his base.
His ridiculous class warfare argument is drawing fire from even within his own party. He and his views have been trounced at every election since he became President.
Listening to even a little political news, the obvious question is why? Why not moderate just a little? Talk about easy, if he was even just a little more pro business, pro capitalism, man things would fall right into his lap.
Then this writer had his Eureka moment.
He will, he is going to moderate...triangulate, fire his core staff and reintroduce himself as....Obama the moderate.
Bet's available, any takers?
The wink, wink President
Must be tough to be Obama. Gotta say one thing but every one knows its not serious (true).
"I'm going to end the war and close Gitmo"! Now we all know that would be foolish, to leave our country exposed, but he got his believers, believing but then wink, wink, never closed Gitmo and extended the Afghan conflict. President drone!
"I believe a marriage is between a man and a woman", but now wink, wink, I really don't think that, we know I don't think that and ...OK, I'm gonna evolve! Besides, the religious are not my base.
"If you like your insurance, you will get to keep your insurance", but...big wink, wink, everyone knows my goal is single payer, government controlled health care and the best way to get there is to legislate a monstrosity, destined to fail, which will allow us to usher in complete government control.
"I'm not a Socialist"! but everyone knows and everything I do is to enlarge government. But wink, wink let's talk about profit and how the private sector is "OK". Granted, even with my amazing wink, wink ability, I'm struggling a lot on this one. Better drag out Billy, he will get it done.....wait...did he just say "sterling record"?
"I'm going to end the war and close Gitmo"! Now we all know that would be foolish, to leave our country exposed, but he got his believers, believing but then wink, wink, never closed Gitmo and extended the Afghan conflict. President drone!
"I believe a marriage is between a man and a woman", but now wink, wink, I really don't think that, we know I don't think that and ...OK, I'm gonna evolve! Besides, the religious are not my base.
"If you like your insurance, you will get to keep your insurance", but...big wink, wink, everyone knows my goal is single payer, government controlled health care and the best way to get there is to legislate a monstrosity, destined to fail, which will allow us to usher in complete government control.
"I'm not a Socialist"! but everyone knows and everything I do is to enlarge government. But wink, wink let's talk about profit and how the private sector is "OK". Granted, even with my amazing wink, wink ability, I'm struggling a lot on this one. Better drag out Billy, he will get it done.....wait...did he just say "sterling record"?
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