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A Conservative Alternative to Obama’s Permanent Spending Plan

Discussion in 'Political Zone' started by JBond, Jan 27, 2009.

  1. JBond

    JBond Well-Known Member

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    Morning Bell: A Conservative Alternative to Obama’s Permanent Spending Plan

    Posted By Conn Carroll On January 26, 2009 @ 8:26 am In Ongoing Priorities | 29 Comments

    Last Friday [1] we told you that even by the left’s own ideological criteria, President Barack Obama’s [2] trillion dollar spending plan would fail to stimulate the economy because nothing about the massive spending increases in the bill was temporary. This Sunday the Washington Post wrote an editorial essentially agreeing with us:
    ome in Congress and the new administration apparently see the country’s present recession as an opportunity to change the federal government’s spending priorities more generally or simply to reward loyal political constituencies. … t’s risky to make new, multiyear commitments in the middle of a crisis without debate over competing priorities — and without paying for them through some means other than borrowing.

    Helping hire, equip and pay police, a $4 billion item under the bill, might be a good idea, but writing checks to individual households for the same amount would do more to stimulate the economy. Ditto for $16 billion in Pell Grants for college students, $2.1 billion for Head Start and $50 million for the National Endowment for the Arts. All of those ideas may have merit, but why do they belong in an emergency measure aimed to kick-start the economy?

    Fiscal stimulus can be a part of the solution, but only if it is “targeted, timely and temporary.” The efforts so far don’t quite match that description.

    Our only quibble with the Post’s assessment of Obama’s [3] trillion dollar spending plan is that it is not quite stern enough. There is nothing “targeted, timely and temporary” about the massive and permanent spending increases in this bill. And the Post left out some of the most flagrant examples. Among the hundreds of billions of dollars in new spending is hundreds of millions of dollars for contraceptives. Speaker Nancy Pelosi (D-CA) [4] unrepentantly defended this money as stimulus on [5] ABC’s This Week:
    Well, the family planning services reduce cost. They reduce cost. … One of those - one of the initiatives you mentioned, the contraception, will reduce costs to the states and to the federal government.
    Got that? If you want to help stimulate the economy, then Nacny Pelosi believes you should not have any more children. Apparently having less children “will reduce costs to the states and to the federal government.” National Economic Council director Lawrence Summers turned in a similar performance on [6] Meet the Press defending the above mentioned Pell Grants and police hiring as “good investments.” Neither of these stimulus defenders even bothered to claim that these spending increases would be temporary in any way. The deficit for 2009 is already projected to exceed $1 trillion. If deficit fueled government spending was effective, than our economy ought to be inn recovery already. Obviously that is not the case. An alternative is needed.

    The American economy does not rise and fall with the level of aggregate demand or deficit spending. There are normal processes that launch a recovery and drive an economy. These processes involve individuals and businesses responding to opportunities and incentives. Lower marginal tax rates stimulate the economy because they improve the incentives facing individuals and businesses to work, invest, take risks, and seize opportunities. The centerpiece of an[7] effective stimulus policy should involve two elements:
    1. Make the 2001 and 2003 Tax Cuts Permanent: The economy faces a massive tax hike in 2011 when all of the tax relief enacted in 2001 and 2003 expires. It is difficult for the economy to gain its footing when facing the threat of a punitive tax hike.
    2. Reduce Marginal Tax Rates for Individuals and Businesses: Cutting tax rates by 10% for individuals, small businesses and corporations will reduce the cost of doing business in America and make it easier for Americans to create new private sector jobs.
    According to [8] analysis performed at the Center for Data Analysis at The Heritage Foundation using the widely respected Global Insight U.S. Macroeconomic Model, these policy changes would strengthen the economy significantly this year. adopting the Heritage tax proposal would mean that 500,000 more Americans have jobs by the end of 2009, and, by the end of 2010, employment would increase by a million jobs. This two-step tax policy would reduce tax receipts relative to current policy by about $670 billion over five years, a number significantly smaller than Obama’s [9] $850 billion and growing spending plan.
    Quick Hits:
    Article printed from The Foundry: http://blog.heritage.org
    URL to article: http://blog.heritage.org/2009/01/26...lternative-to-obamas-permanent-spending-plan/
    URLs in this post:
    [1] we told you: http://blog.heritage.org/2009/01/23/morning-bell-nothing-temporary-about-this-stimulus-spending/
    [2] trillion dollar spending plan: http://readthestimulus.org/
    [3] trillion dollar spending plan: http://readthestimulus.org/
    [4] unrepentantly defended this money as stimulus: http://www.drudgereport.com/flashpbc.htm
    [5] ABC’s This Week: http://abcnews.go.com/print?id=6725512
    [6] Meet the Press: http://www.msnbc.msn.com/id/28841300/
    [7] effective stimulus policy: http://www.heritage.org/Research/Economy/wm2191.cfm
    [8] analysis: http://www.heritage.org/Research/Economy/wm2191.cfm
    [9] $850 billion and growing spending plan: http://readthestimulus.org/
    [10] allow states like California to regulate automobile greenhouse-gas emissions: http://online.wsj.com/article/SB123293646635914469.html
    [11] bailout: http://online.wsj.com/article/SB123292845938013899.html
    [12] nationalizing the nation’s banking system: http://www.nytimes.com/2009/01/26/business/economy/26banks.html?_r=1&ref=todayspaper
    [13] already naming streets and buildings after President Obama: http://www.usatoday.com/news/nation/2009-01-25-renaming_N.htm
    [14] all-time high: http://www.usatoday.com/news/military/2009-01-25-Roadsidebomb_N.htm
  2. sbark

    sbark Well-Known Member Zone Supporter

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    ....but, but, but.....but then it doenst go thru B.Franks hands, so then he cannot skim 1%, but but but.........then Acorn doenst get 5%.......

    Barney Frank.......says Obama's mandate is to control businesses, because conservative economics of letting the market work have demonstrably failed

    "I sit on a man's back, choking him and making him carry me, and yet assure myself and others that I am very sorry for him and wish to ease his lot by all possible means -- except by getting off his back." - Count Leo Tolstoy
  3. silverbear

    silverbear Semi-Official Loose Cannon

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    Oh Gawd, another dinosaur who still thinks that trickle-down is the way to go... :D
  4. JBond

    JBond Well-Known Member

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    Oh Gawd, another person who used to play with dinosaurs as a child looking for a handout...:D

    Learn how to pay your own way and we will not have so many issues with each other.
  5. zrinkill

    zrinkill Diamond surrounded by trash

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    Good article Jbond ...... I agree with most of it.
  6. DFWJC

    DFWJC Well-Known Member Zone Supporter

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    Without the additional comments, I do agree with this insight. This package is far too overreaching for my taste.

    If it passes as proposed, I would just have to congratulate Obama for expanding his power base...because he and his team are not even making an effort to hide their intentions. It's disturbing...
  7. Route 66

    Route 66 Well-Known Member

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    Their bill, called the Economic Recovery and Middle-Class Tax Relief Act of 2009, promises a host of tax-cutting measures. It includes a 5 percent "across the board" income tax cut; an increase in the child tax credit from $1,000 to $5,000; a freeze on capital gains and dividends tax rates at 15 percent; and a number of other measures targeted toward businesses.
  8. JBond

    JBond Well-Known Member

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    I would like to know how increasing the capital gains tax will promote investment and growth.

    Where did you get that information from?
  9. sbark

    sbark Well-Known Member Zone Supporter

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    Everyone on the left blasted GW on his spending habits for past 8 yrs.......and yet Obama goes triple.....and its all fine and dandy.....

    If Obama's STD, Acorn and Envrio Wacko payoffs are going to resurect the economy..........

    why didnt GW Govt spending keep us out of a economic downturn.....????
    Why has not 700% growth in SS, Medicare/Caid kept us out of a downturn???

    Every Liberal City/State in an economic cesspool is a micro-cosm of what the USA Economy will look by election year 2010......

    Seems to me Obama would not want any GOP votes.......he should crave full credit for this bill........this bill that will save the USA Econ.......

    Or is he like Clinton......worried about Legacy with no poltical cover to hide under.........
  10. sbark

    sbark Well-Known Member Zone Supporter

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    You cannot reason a man out of something that he did not reason his way into." -- Jonathan Swift

    Liberal - Used to mean : "Free from narrow prejudice; open minded, especially, open to the reception of new ideas or proposals of reform.". Now means "Full of hatred for past Ideas, and completely intolerant of the people that still believe in them. Socialist." Most liberal arguments basically boil down to "Shut up in the name of open-mindedness and free speech!". The liberal observes evils in society, and then attempts to remedy the problem with an even greater evil. (ala Atlas Shrug's)
  11. ChldsPlay

    ChldsPlay Well-Known Member

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    That would be insanely stupid. It can't be correct. There should be no child tax credit, and certainly not a 500% increase. My sister would be getting like a $20,000 tax refund, and she doesn't pay taxes.

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