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EDITOR OF REDSTATE

Bipartisan Mendacity

If House Republicans vote for the bipartisan compromise, they should be driven into the street by the tea party movement and horsewhipped — metaphorically speaking. In reality, they should be primaried.

What started out as $38.5 billion in cuts, turned into around $14 billion in cuts and a bunch of accounting gimmicks. Each new day brings new disgusting revelations. According to the Congressional Budget Office, “total federal outlays will still rise by approximately $177 billion.” Yes, that says “rise” not “decrease.”

More startling, the Congressional Budget Office reports that the deficit will only be cut by $352 million. That’s million with an “m”. The budget deficit will be $1.6 trillion this year.

Republicans who vote for this compromise are lying to the American people that they get how serious the problem is. The one silver lining is that this will hopefully radicalize freshman Republicans against anymore leadership deals.

But it’s not just Republican mendacity the republic must be worried about. Barack Obama spoke yesterday in a speech filled with lies, half-truths, and enough class warfare rhetoric to make Karl Marx blush. The mendacity of Obama’s class warfare is designed to distract from the fact that under Obama, gas prices have risen more than 100% from when he took office, food prices have gone up, and every dollar every American brings home buys less and less.

The man started his speech praising the free market and the rugged individualism of the American people, while ignoring that under his Presidency more Americans are on food stamps than at any time in American history and it is the Obama administration, not the free market, that is picking winners and losers in the marketplace.

Paul Ryan, on the Mark Levin Show last night, called Obama “a pyromanic in a field of straw men.” Obama’s mendacity goes deep — even to the point of lying about the national debt.

According to Mark Knoller at CBS News, “Even if every provision of President Obama’s deficit reduction plan is enacted – and he concedes it won’t be – there still won’t be a balanced budget on the horizon. And the National Debt will continue to expand by trillions of dollars.”

Knoller continued, “The Obama plan is designed to reduce deficit spending over the next 12 years by $4 trillion dollars. If every penny of that $4 trillion in deficits is eliminated, the government’s own budget projections show that trillions of dollars more in deficits would remain in place.”

Taking Mr. Obama at his word, a dangerous thing to do, if his plan involves three times the spending cuts as tax increases, he is still talking about a $1 trillion tax increase. In defense of taxing the rich, Mr. Obama said

As a country that values fairness, wealthier individuals have traditionally born a greater share of this burden than the middle class or those less fortunate.  This is not because we begrudge those who’ve done well – we rightly celebrate their success.  Rather, it is a basic reflection of our belief that those who have benefitted most from our way of life can afford to give a bit more back.  Moreover, this belief has not hindered the success of those at the top of the income scale, who continue to do better and better with each passing year.

Let’s break this down:

As a country that values fairness, wealthier individuals have traditionally born a greater share of this burden than the middle class or those less fortunate.

If all Americans were taxed at 10%, people making $1,000,000.00 would pay $100,000.00 in taxes. People making $100,000 a year would pay $10,000.00 in taxes. In other words, if all Americans were treated equally, the rich would still pay more.

But wait, it gets better. Right now, the wealthiest 1% bring home 19.6% of all income in America and pay over 40% of all taxes. The wealthiest 5% pay 60% of all taxes in the country. Suddenly we’re claiming they need to pay more?

But wait, it gets even better.

Moreover, this belief has not hindered the success of those at the top of the income scale, who continue to do better and better with each passing year.

Actually, the people Barack Obama is referring to pay relatively low income taxes, and not because of tax cuts, but because they derive the bulk of their wealth from sources other than a regular salary. They make their money with investments impacted by capital gains taxes and through tax reduction strategies.

The people who will get impacted by this increase are the working stiffs who own small businesses. Obama, not ever having a real job in the private sector, might not realize it, but the bulk of businesses in this country are S-corporations, LLC’s, partnerships, and sole proprietorships. These people see the profit from their businesses flow through to their personal income taxes, unlike Warren Buffet.

Meanwhile, in his 5,600 words, Obama avoided using the word “entitlement” and dodged substantive entitlement reform.

When neither Republican leaders nor Democratic leaders can be honest with what they are cutting, how much they are cutting, or what reforms they want to do, we’re sunk. This is just another reason why returning power to the states and the people is critical for the success of this country.

Washington is failing us. The people and the states can do better.

COMMENTS

  • nickel

    I think the time has come to realize we are being played by both sides of a one party hydra. There are those who are members of the political class and then there are the rest of us and it is now apparent that while the political class might have ones with a “D” after their names and others with an “R”. The truth is they have much more in common with each other than they do with us. Primary every one that votes for this bill and if that doesn’t clean them out do it again until we get control back. We clearly can’t trust Tammy Fae Boenner any more than we can trust Barack Obama.

  • nickel

    I think the time has come to realize we are being played by both sides of a one party hydra. There are those who are members of the political class and then there are the rest of us and it is now apparent that while the political class might have ones with a “D” after their names and others with an “R”. The truth is they have much more in common with each other than they do with us. Primary every one that votes for this bill and if that doesn’t clean them out do it again until we get control back. We clearly can’t trust Tammy Fae Boenner any more than we can trust Barack Obama.

  • popster

    “good for the Nation”, so far it means appeasement for the masses so we can get back to lining our pockets.

  • weekendcowboy

    The FAIRTax is a national consumption (sales) tax which has no deductions and no loopholes! Everyone (I mean rich and poor) pays according to how much they consume (buy). No gimmicks or special interests!
    Everyone (rich and poor) also gets a monthly prebate (check) which is just enough to pay expenses if you are poor or out of work. No questions or forms to fill out!
    The FAIRTax takes the politics out of where the government money comes from and where it is spent! That is why it is FAIR to all!
    Let’s get behind the FAIRTax and push it!

  • kingscairn

    snookered again ….. when will you learn ?

    RINO’s and gullible children should not be taken seriously and you’d better get it together real soon or it’s over – plain and simple…..we can’t be playin catch up when the marxists plans are 40 years in the making !

  • johncox

    It is worse than is stated. The rich won’t pay additional taxes; they really don’t pay tax, they pass it along as a cost of business.

    I am a CPA, tax attorney and investment adviser – for 30 years. You cannot tax the rich to get to prosperity. The rich own the farms, the factories and the means of production as well as major service providers.

    Keep raising their taxes and they increase their prices. This only widens the income gap; they raise prices, they report more income, they pay more tax but they net the same. Meanwhile, the working man or woman who has to purchase goods pays the higher price and suffers a loss in living standards.

    Government does well as it has more money to allocate and thus more power. That is what increased taxes are all about.

    For centuries America has been a place where average or poor people can move up because of freedom and that wealthy or government has less control. That has changed as politicians have gotten into more control and wealthy interests have bought them.

    The answer is to get money out of politics; reduce the size of legislative districts so that people have more power and money is not a factor.

  • nubsnstubs

    “Rather, it is a basic reflection of our belief that those who have benefitted most from our way of life can afford to give a bit more back.”
    When this guy spews that kind of crap “our belief”, he’s not speaking for me. If they choose to give up more, that’s fine, but to try to make them feel guilty about having more isn’t right. In my 65 years, I’ve never heard a president put down and belittle Americans like this guy. we are definately on an opposite course than we should be… Jerry (in Tucson)

  • http://theminorityreportblog.com Repair_Man_Jack

    John,

    Not to bug you, but this question might be up your alley: If deplreciation allowances and depletion allowances were deemed to be ‘Tax Code Expenditures” and thus eliminated, would anyone with an IQ>6 and an option go out of their way to hire Americans?

  • ag8tor

    the FairTax will never see the light of day. You have to understand one major thought, the people in DC both R & D don’t give a damn about you and me! They are there for one purpose, to stay there as long as possible. They will never allow such things as a FairTax because it takes away their power base. They would not have as much control over the flow of revenue created by these taxes. I see this as a pipe dream similar to term limits. Not going to happen since the people that would vote on it are the ones it would limit. If they actually cared about what you and I need there would be more done about the gas pricing situation. Maybe one day there will arise congessmen with actual spines that will stand up and say “Enough already”. It will not however come from this group of over- paid egotistical millionaires. They are so far removed from reality that they have no idea of what problems the everyday American faces. Truly a sad time in the USA. God help us!

  • gazill

    understand the Fair Tax, my hackles went up when I read that “everyone gets a monthly prebate.” From who? The government? That just introduces an opening for the government to again skew towards distribution (well, you make X amount so you don’t “need” a prebate).

  • 4suramcan

    both parties sold us out long ago. They’re doing just enough to keep a full scale revolution in check. Answer, kick them all out and start over.

  • Dave_in_Fla

    After a full day of realizing that the GOP leadership either sold us out or was conned, then listening to the analysis of Obama’s ridiculous speech yesterday, I tuned out and watched TV.

    The 11 o’clock news came on and the top story was Obama’s speech. This is the sum total of information that was fed to the low information voters last night:

    “President Obama gave a speech today addressing the looming debt crisis. He proposed plans that will reduce the deficit by 4 TRILLION DOLLARS” … end of segment, move on to the latest traffic accident.

    I am trying hard to not use profanity, but I really want to. I am seriously thinking about becoming an ex-pat.

  • Ausonius

    As is the Wall Street Journal: read this editorial by the editors:

    http://online.wsj.com/article/SB10001424052748703730104576260911986870054.html?mod=WSJ_Opinion_LEADTop

    An excerpt:

    “……President Obama’s extraordinary response to Paul Ryan’s budget yesterday?with its blistering partisanship and multiple distortions?was the kind Presidents usually outsource to some junior lieutenant. Mr. Obama’s fundamentally political document would have been unusual even for a Vice President in the fervor of a campaign.

    The immediate political goal was to inoculate the White House from criticism that it is not serious about the fiscal crisis, after ignoring its own deficit commission last year and tossing off a $3.73 trillion budget in February that increased spending amid a record deficit of $1.65 trillion. Mr. Obama was chased to George Washington University yesterday because Mr. Ryan and the Republicans outflanked him on fiscal discipline and are now setting the national political agenda.

    Mr. Obama did not deign to propose an alternative to rival Mr. Ryan’s plan, even as he categorically rejected all its reform ideas, repeatedly vilifying them as essentially un-American. “Their vision is less about reducing the deficit than it is about changing the basic social compact in America,” he said, supposedly pitting “children with autism or Down’s syndrome” against “every millionaire and billionaire in our society.” The President was not attempting to join the debate Mr. Ryan has started, but to close it off just as it begins and banish House GOP ideas to political Siberia.

    Mr. Obama then packaged his poison in the rhetoric of bipartisanship?which “starts,” he said, “by being honest about what’s causing our deficit.” The speech he chose to deliver was dishonest even by modern political standards.”

    The greatest irony of our era: in the so-called Information Age, with the “Infobahn” at practically everyone’s fingertips, we have more people who are UNinformed, MISinformed, and DISinformed than ever before: the last two conditions perpetrated by politicians on BOTH sides of the aisle.

    The Terror of Preserving and Increasing the Power of the Status Quo is now in full view for those with eyes to see and ears to hear.

  • Next93

    The way I understand it is that the rebate is calculated by figuring the tax that would be levied if you spent every penny of a salary at the “poverty level”. The idea is that the poor end up being made whole on the federal sales tax.

    The “fair” part comes from the fact that every wage earner gets the same check, every month. Bill Gates, Warren Buffet, you, me, the kid working at Mickey-D’s, all get the same amount. So the government is taken out of the business of deciding who is more “deserving” of money other people have earned.

  • edintexas

    That alleged provision (I don’t know if it is included in whatever FAIRTax proposals are extant) sounds exactly like the current disguised welfare provision which purports to give “tax refunds” to people who owe no Federal Income Tax.

    It strikes me that if there is such a provision, then it would be a reaction to placing the tax on everything, including food and rents. Why else would there be a “pre-bate” of the presumably about to be owed tax for everyday living?

  • eddiethegeek

    If any GOP representative votes “aye” on this budget deal, he or she should immediately be primaried. Boehner is not the solution, he is the problem. I am absolutely livid that $350 million is the best Boehner could negotiate. We have a deficit that equals $350 million EVERY TWO HOURS.

    So if all the hard work and hard-earned money that many of us devoted to last year’s campaign only nets us spending cuts equal to TWO HOURS’ worth of deficit, then we have been played, badly. But it is not time to give up, it is time to rise up and run against these fools. If we love the USA, we need to TAKE IT BACK!

  • edintexas

    For those “rich” who are not engaged in business, but have income from investments, they will simply switch their investments to tax exempt investments. It has happened before and will again.

  • stacyarena

    Until we have a majority in The Senate & we have the White House, we cannot expect huge victories, y’all… Expecting the Dems to just roll over when they are still in a position of power is foolhardy & mighty DEFEATING to what SHOULD be our #1 Goal, winning a GOP Landslide in 2012 so that we can actually put a DENT in the absolute MESS Liberal Governance has inflicted upon America. It’s too bad the Libertarians & the TEA people are such impatient hotheads that expect government to change when we ONLY control ONE 1/2 of ONE 1/3 of it. Can you say arrogant? I can.

  • johnt

    When the Titanic went down it didn’t matter how much you paid for your ticket, what deck you were on, or whether you happened to work for the NY Times.
    Back in the real world China is busy forming it’s own alliances, looking at alternative currency arrangements, and helping to bury the dollar. I can almost hear Obama panting in erotic anticipation.

  • msctex

    I am now officially a Ryan fan. That’s a truly great line.

  • alreadyexists

    Given the timidity of the Republican leadership in the House, it is unlikely that there will be any serious improvement in the fiscal crisis during the next two years. However, the good news is that all Ponzi schemes must fail eventually and when it does, it won’t matter that our elected politicians have been inept. The house of cards will collapse and then we will rebuild.

    How best to make use of our time and resources in the interim? Should we all run down to the seashore and start throwing up sandbags in order to hold back the tsunami? Or should we head for the hills, hunker down, and wait until the wave has completed its devastation and retreated back into the sea? The more Congress pontificates and dithers, the more difficult it is to choose the first option.

  • skorrent1

    Leaving the current tax law in place amounts to a “tax cut for the rich”, while allowing it to expire imposes a “tax increase on the middle class”. Does anyone with an IQ above room temperature not comprehend the duplicity?

  • adair

    So pathetically true.

  • Steve Fonda

    Some of the GOP folks may have their votes influenced by the calendar. In some states, the primary filing deadlines may have already passed for this year. In New Jersey, the deadline was this past Monday (4/11/11).

    This gives them the opportunity to vote for the budget scam, and any others, and assume that the “rubes/voters” will forget by the time it matters again.

    Could be that I’m just a little too cynical, but I don’t really think so…

  • Old_Dominion

    easy job with a Democratic Senate and a Democratic White House, but for the love of all that is holy, how can we agree to budget cuts that don’t actually cut spending?

  • cestmoi312

    Leaving the current tax law in place amounts to a ?tax cut for the rich?, while allowing it to expire imposes a ?tax increase on the middle class?. Does anyone with an IQ above room temperature not comprehend the duplicity?

    Spot On!

    Oh! But if Bush had said that!

  • adair

    that bothers me. Who will control the dispensing? How will whatever department remain (if it ever is) non-partisan?

    Who determines how much is “just enough to pay expenses if you are poor or out of work?” No questions or forms?

    Which government handles this .. Federal or State?

    What author explains this in detail in 5th-grade-level English? I would like to be able to read and understand it. The sales tax approach is appealing, although 23% or whatever I read some time ago seems excessive.

    The Flat Tax, calculated on a postcard, went from 15% to 17% in such a short time after it was suggested in the 90′s. Now, doesn’t the government think it needs revenue of 20+% of GDP to operate?

  • adair

    Obama’s advisors/teleprompter-writers have seen the enthusiasm we have for the guys who are challenging … kickin’ a$$ … takin’ it to ‘em … straight talkin’ …aggressively confronting …

    They obviously have sat around and figured out that Indecisive Boy needs to look tough in order to succeed. Just another of the Many Faces of Obama.

  • rec0n

    For more info on Fair Tax http://www.fairtax.org/site/PageServer I stumbled across it yesterday and found it helpful

  • rec0n

    For more info on Fair Tax http://www.fairtax.org/site/PageServer I stumbled across it yesterday and found it helpful

  • Ausonius

    and everywhere else, as the inflation in energy percolates throughout the economy.

    Even the dullest voter might still make a connection between prattle for “green energy for the future” and the present reality at your local supermarkets and gas stations.

    “Might,” because you will always have true believers who suck all the poisoned honey offered by their Fearless Leaders.

    There were Communists in the Russian government positive that Stalin did not know about the horrors being perpetrated in his name: “If only Stalin knew…” Willing idiots! We see their parallels in the Democrat Party and in the Leftist Prattletariat in the media.

  • baxtersdad

    He had his chance. He failed. If he won’t lead WE WILL! I will give $1,000 dollars to the campaign of the first Tea Partier to stand against our RINO “leader”!!!!

  • Flagstaff

    **Washington is failing us. The people and the states can do better.**

    Is it any wonder? The federal government has been trying to do what fifty states are supposed to do for themselves, and it refuses to do what it’s constitutionally obligated to do (protect our borders) because it’s stretched too thin.

  • red_oakster

    Hensarling? This is too indiscriminate and it tends to undercut Erick’s often strong arguments because this one gives politicians the pretext to ignore him.

  • acat

    The reatings reflect votes on certain bills. It’s possible, like “teaching to the test”, to get a good ACU rating without actually *doing* anything other than voting the right way. Consider John McCain in a campaign year, eh?

    The ACU rating is fine to use as a confirming data source, that is, it’s a good source to determine if someone (thinking specifically of Dashele here) is playing games, press releases back home with a conservative tone, but a low ACU rating… something stinks.

    The ACU rating is not as useful to find an activist conservative congressperson since it doesn’t indicate much on bill sponsorship, committee tweaks to legislation, etc. etc. I wouldn’t say that Hensarling is “all that” as a conservative based solely on an ACU rating. Orrin Hatch, for example, usually has a decent ACU rating, but .. would you rank him in the same class as DeMint?

    All that said, primarying Ryan or Hensarling would only make sense if they’re not actively pushing conservative positions. If they are, then the Tea Partiers in their district would do better spending their time primarying the squish who’s been in office for years in the next district over…

    Mew

  • http://theminorityreportblog.com Repair_Man_Jack

    People don’t understand how dumb they are doing it. Then they get shown pictures a month later….(perhaps with a blackmail notice attached).

  • red_oakster

    My real point is that Erick’s call to primary the 75% of the caucus that voted for the bill today is too indiscriminate to take seriously. I just think this one was a wild pitch.

  • pompey

    …..if you are making a serious point about Obama’s speech,,,,,,don’t bother. Balanced national budgets do not advance socialism.Increased government dependency advances socialism.Dogs don’t meow and cats don’t bark…. what did you expect the man to say?
    The American voter is a hoot; they elect a socialist president then fain shock when he governs like a socialist……..sober up!

  • controse

    personal income tax first. Then we’ll talk about a national sales tax and not before.

  • PatriotForLiberty

    We wondered where McConnell has been during all of this and then today it was reported in a story about Pelosi:

    “In fact, Democratic and Republican sources tell POLITICO, none of the power brokers wanted her in the room. They feared that her presence and her defense of liberal values would have made it impossible for Obama to cut a deal with Boehner. The sources say Senate Minority Leader Mitch McConnell of Kentucky also was excluded so the White House could justify keeping Pelosi out.”

    http://www.politico.com/news/stories/0411/53151.html#ixzz1JYUvRteE

    Discouraging if true.