President Obama’s bus tour appears to be falling flat in terms of winning over any converts to his reckless tax-and-spend policies. And no surprise, he continues to blame the current state of the American economy on everyone (and everything) he can think of – except himself, of course.
Just “a run of bad luck” Obama recently opined at a town hall meeting. It was the weather (Japan’s tsunami), the “Arab Spring” (which he applauded when it was occurring), European chaos, and on and on. And even two and a half years into his presidency, he’s still attempting to blame his predecessor:
“We do have a serious problem in terms of debt and deficit, and much of it I inherited,” he said, in spite of the fact that he and his fellow Democrats held the Presidency, the House, and the Senate for the first two years of his administration. With Obamacare and the “stimulus” debacles, Obama and his Democrat majority rammed through more spending and debt than the first 40 American Presidents combined. And we are now hearing rumblings of yet another “stimulus” program.
Meanwhile, Obama continues to demonize and denigrate the one group of people who might actually be able to do something to get America’s economy moving again: business owners. Obama seems unable to get through any speech without attacking “millionaires and billionaires” – he even tried to make owning a corporate jet sound somehow like a badge of shame.
Naturally, Obama’s criticism of “the rich” is invariably accompanied by a call for these “wealthiest Americans” to pay their “fair share” in taxes – “close the loopholes” he says. But Obama conveniently ignores the fact that the top tier of income earners already pay a hugely unfair share of all taxes, while the bottom 51% of working Americans benefit from the biggest “loophole” of all – they pay NO Federal Income Tax whatsoever.
But attempting to foment hostility and animosity toward those who achieve is nothing new for Democrats. “Class warfare” – pitting one group of Americans against another – has been a primary tactic of Democrats going back to the days of FDR. Democrats even attempt to stoke anger toward the Tea Party, calling them “terrorists” and other equally despicable terms. Seems that demanding the government live within its means and stay out of our lives is now a “radical” stance.
Unfortunately, promoting class envy can be effective with a certain segment of the populace, especially among those who not only pay little or no taxes, but are getting all sorts of government handouts. And that number is growing – we have an official unemployment rate of 9.2% (the real number is over 18% if you include discouraged and part time workers). There are over 45 million people on food stamps, an all time record. And Obama’s only “solution” is to extend unemployment benefits even further, which only exacerbates the problem – employers frequently have applicants turn down job offers, explaining that “I can make more money staying on food stamps and unemployment.”
But it is private sector businesses, large and small, that hire workers, produce products, and make our economy function. And the Democrats’ same old song of “tax the rich – spend more money we don’t have” is not playing well with them. Because unlike the economically illiterate Obama, entrepreneurs understand what it takes to get the country moving again:
We need to cut taxes on business, yet Obama wants to tax businesses even more. But raising tax rates on business, ANY business, stifles growth, forcing employers to cut staff, and putting more people on the unemployment roles. Tax hikes also raise the cost of goods and services to the consumer, creating even more inflation than we already have. Raise taxes on an Exxon or a General Mills, and you pay more at the pump or the grocery store – it really is as simple as that. Besides, if raising tax revenue is your goal, then cutting tax rates (whether income, capital gains, or regulatory fees) is the way to go. It invariably yields increased tax receipts, due to the growth of the economy.
We also need to cut regulation, which has gotten completely out of control – California just announced a bill to ban flat sheets in hotels. Sounds insane, and it is, but Democrats never met a regulation they didn’t love, no matter how silly, stupid, or just plain crazy. And new regulations are inevitably followed by an increase in the number of bureaucrats needed to enforce them. A lot of them.
According to Investors Business Daily, “while the [private sector] economy is struggling to grow and create jobs, the Federal regulatory business is booming” with so many new government jobs being created that “more people working for [regulatory agencies] than McDonald’s, Ford, Disney and Boeing combined.” Instead of cutting onerous regulations, the Obama Administration created 75 major new rules in just 26 months, costing the private sector over $40 Billion, more than any president in history, according to James Gattuso of the Heritage Foundation.
And finally, we need to cut spending. Drastically. Because if we don’t, we will be faced with an economic Armageddon that will make our current woes seem insignificant by comparison. But genuine cuts, (not “reductions in the rate of growth”) will mean a whole lot of government parasites (including an army of overpaid government union members) will have to take a hit, and Democrats would rather eat broken glass than stop funding their built-in voting base.
Then again, we could just keep singing the same old Democrat song…