Archive

Posts Tagged ‘Spending’

The Big Squeeze…States looking to Internet Sales Tax for Revenue

September 18, 2010 1 comment

With more and more state governments going into the red, they are looking to the internet for generating additional revenue streams.  NBC has an article on the matter with one paragraph that I think sums up the mentality of government and why it is our best interest to limit it’s size.  That paragraph is below (emphasis mine):

Sales taxes or similar levies have always been in place on most online purchases in most states. But they are almost never paid. And with their budgets in crisis, states are more determined than ever to get their share.

This is so typical of government in thinking that your money, your tax dollars are theirs. What they fail to understand is that the lack of sales tax is one of the main reasons why consumers look to the internet for purchases. When the government discourages that, you will see a drop in the activity online and the smaller, independent businesses will be the first to feel the effects.

I would suggest that rather than looking at taxing to close and budgetary gaps in the state governments, they should first look at how they can trim down size and reduce the cost of government. But hey, that is just a little too much common sense for the government.

Congressman Kirk Explains the Cost of Obamacare

October 24, 2009 1 comment

A letter from congressman Mark Kirk (R-Ill.) lays out the specifics of how the Democrats will pay for Obamacare.

Dear Friends,

Knowing of your continued concern for health care reform, I am writing to update you on my work in Congress to protect seniors.

On October 7, 2009, the Congressional Budget Office (CBO) released their score for the Senate Finance health care bill. CBO concluded that the legislation has a total cost of $829 billion over 10 years, imposes $424 billion in new taxes and fees over the first 10 years and has over $400 billion in Medicare cuts. Please see the list below.

MEDICARE CUTS
-$133B Medicare Advantage
   -$128.8B Hospitals
   -$106.3B Inpatient Prospective Payment System
-$22.5B Medicare DSH payments
-$56B Home Health
-$22.2B Medicare Commission
-$22.3B Medicare Improvement Fund
-$19.8B Medicare Part D
-$14.6B Skilled Nursing Facilities
-$23.1B Part B Schedules, Except Physician Services
-$8B CMS Innovation Center
-$11B Hospices
-$4.9B Accountable Care Organizations
-$3B Medical Imaging
-$800M Power Wheel Chairs
-$300M Comparative Effectiveness Medicare Component
-$100M Medigap

In my opinion, we should not be paying for health care on the backs of senior citizens. Click on the image below to view me discussing this issue in more detail. Please feel free to forward this email along to your friends and family, together we can make a difference.

Sincerely,

Congressman Mark Kirk
Member of Congress

NY-23 Race: A Conservative Challenge!

There is a special election that is going to take place in New York district 23 in which conservative principles are being tested, Doug Hoffman needs all the support that we can get. Breaking away from the establishment, Doug Hoffman is gaining ground with his strong conservative perspective. There is a super liberal republican running by the name of Dede Scozzafava and make no mistake about it, she is about a liberal as they come. In fact, she is so liberal, she gives Olympia Snowe and Susan Collins a run for their money. Michelle Malkin sums it up nicely:

“The GOP establishment: Always, always its own worst enemy.”

Then you get Niel Cavuto, who I like when it comes to economics, but for some reason can’t understand his view on the race in new York.

We now have the opportunity to make a stand. We have the chance to say to the Republican Party that we are not going to tolerate them support candidates with liberal views. It is time the standup and realize that the country is conservative.

I like what Jeri says regarding a long term strategy. We need to get away from the short term politics and develop a strategy that will stand the test of time.

Please support Doug Hoffman in his upcoming race.

Government to Increase pay for Doctors too!

I had a good laugh today when I read this article about the government mandating higher pay for doctors under a new proposal from the congress.  This line stood out to me:


“This is a bill that would permanently change the payment system for physicians to a fairer system,” Sen. Debbie Stabenow, D-Mich., said as she introduced the bill.

Anytime the government tells you that it wants to make things fair, run for the hills. Governments do nothing to free markets other than distort them and all decisions are for political gains rather than what is best for the people. Like I said in a previous post, governments do not solve problems, they manage them. If they didn’t then there would be no need for government.

Just a little thing to remember when the government says they want to increase the pay for doctors: Whatever the government giveth, they can taketh away. Don’t believe me? Just ask the CEO of Bank of America!!

Keynesian Economics…the liberal fantasy

The economic picture continues to darken, even though the stock market has come off it’s lows experienced earlier this year. There is still little evidence that the stimulus plans have had any real impact. Unemployment continues to rise month after month and threatens to exceed 10% very soon. Our budget deficits have ballooned out of control and the pace that we are adding to our national debt is quickening. So why is the Obama administration continuing to put it’s faith in an economic belief system (Keynesian Economics) that has been proven wrong? Answer: Liberals never believe that what they are doing is wrong, just that they haven’t been able to do enough of it.

Keyens and his followers believe:

Increases in spending, such as an increase in government outlays, increases total spending by a multiple of that increase. A government could stimulate a great deal of new production with a modest outlay if:

  1. The people who receive this money then spend most on consumption goods and save the rest.
  2. This extra spending allows businesses to hire more people and pay them, which in turn allows a further increase consumer spending.

I read a great article on the Keynesian multiplier effect and how in today’s environment, that multiplier is less than one meaning that the GDP actually shrinks for every dollar that the government spends. From the Wall Street Journal:

“The existing empirical evidence on the response of real gross domestic product to added government spending and tax changes is thin. In ongoing research, we use long-term U.S. macroeconomic data to contribute to the evidence. The results mostly favor tax rate reductions over increases in government spending as a means to increase GDP.”…Read the rest of the article.

This shift to spending more and more money by an inefficient and irresponsible entity (the federal government) will only lead to higher and higher deficits. According to the Heritage Foundation, we will be spending more on welfare in the next year than we spent on the Iraq war under Bush.

We need to get back to our founding principals which is that individuals know how to redistribute wealth more responsibly than the federal government. Cut the tax rates, eliminate the corporate tax, and reign in spending and we will see a period of growth that is unrivaled in modern history.

America…2nd highest corporate tax rate. Still.

September 26, 2009 Leave a comment

Unemployment continues to creep higher and higher with jobs fleeing the United States and the answer could be hiding in plain sight.

From the Tax Foundation:

Washington, DC – Canada, the Czech Republic, Korea, and Sweden all cut their corporate tax rates in 2009, distancing the United States even further from the pack with its combined federal and state rate of 39.1 percent—second only to Japan for the highest corporate tax rate among nations in the Organization for Economic Cooperation and Development (OECD). A Tax Foundation analysis of new OECD data finds that 2009 marks the 12th consecutive year in which the U.S. corporate tax rate is higher than the average rate among non-U.S. OECD nations—and roughly 50 percent higher than that of a mid-ranked country such as Sweden. …Read the rest here

Capital goes where it is treated the best. The business environment that the government has created is the second worst in the world. If you were a company and had a choice to be in the United States or somewhere else around the world, where would you go?

If the government truly wanted to see this economy grow at record pace, they would cut corporate tax rates or do away with them entirely. But wait, we can’t have those greedy businesses stealing earning those pesky profits now can we?