Last Thursday, President Obama gave a speech before a joint session of Congress in order to promote his newest campaign ideas: spend more, tax more.
Sound familiar?
That's because every single idea in this new "plan" is a rehash of the same failed policies this administration has already tried. And look where it's gotten us.
President Obama has called for Congress to "pass this bill" more than four dozen times since his 30 minute speech.
Before the speech, he said everything in the "plan" would be paid for. What does that sound like? To most Americans, that sounds like the ideas included won't cost taxpayers any money, or that our President has a plan of offset cuts in order to pay for the plan. Neither of which is what he meant.
What he meant by "everything in this bill will be paid for" was that the money would be borrowed from China, immediately, and then raise half a trillion in new taxes
And where do you think that extra half trillion will come from?
Why YOU of course!
And not just taxing the rich, oh no. Hiking their taxes, and taxes on corporations, won't amount to an extra half trillion. The tax hikes President Obama targeted were specific to the oil industry, and removing their tax credit (which is also enjoyed by other manufacturing companies, including the film industry) will net $2 billion. Raising corporate taxes will get around $300 MILLION. Yes, million.
So there's $2.3 billion. The President then needs an additional $444.7 billion in order to pay for this new stimulus plan. Note: all revenue from corporate taxes for the fiscal year 2011 amounted to $192 billion. And remember that this $447 billion is on top of everything collected.
In order to close the $444.7 billion dollar gap, President Obama would have to hike taxes on the wealthy tocrippling levels, or, hike taxes on everyone.
Crippling levels will come.
The President expects to raise $400 billion over 10 years from limiting deductions for people making over $200,000 or families making over $250,000. How's that for encouraging people to just live together and not get married?
Considering if you took every penny of income from every millionaire and billionaire (and let's pretend they would stay in the country to allow it) you would only get $1.3 trillion dollars, increasing taxes by $400 billion over ten years so that he can spend that money on temporary make-work jobs will harm the economy far more than he anticipates.
President Obama's plan to pay for his new stimulus bill is to RAISE TAXES. There is NO WAY this bill can be paid for by taxing the wealthy alone, AND HE KNOWS THAT. What he is planning to do to our economy just to benefit his union pals is nearly CRIMINAL.
Conservative Action Alerts believes that our economy can be saved without massive spending and taxes. CLICK HERE to FAX Congress and tell them that President Obama's ideas have already been tried and have FAILED. Tell them to enact policies that cost NOTHING and have proven to work in the past. Right now we need solutions, not higher taxes.
Even though we were promised new ideas in this speech, there wasn't a single one. All we got were ideas that have been forced down our throats over the past two and a half years of this administration and resulted in 9.1% unemployment, over 20 million Americans unemployed or unable to find fulltime employment, and nearly 5 million more who have given up looking for work all together. This speech encompassed ALL of these past failed ideas:
- $175 billion - An extension of the payroll tax cut
- $70 billion - Employer payroll tax cut
- $62 billion - A year's extension of unemployment benefits
- $50 billion - Handouts to unions for road, rail and bridge construction
- $35 billion - Handouts to public school teacher unions
- $25 billion - School construction and reconstruction
- $15 billion - Vacant property rehabilitation
- $10 billion - Infrastructure bank
- $5 billion - Handouts to community colleges
- ??? - $4,000 tax credit to businesses who hire the long term unemployed
- Grand Total: $447 billion
- $400 billion - Tax hikes on job creators, small business owners and families
- $2 billion - Close oil company tax breaks
- $300 million - Tax corporations more
- $44.7 billion - ???
The taxes will be made permanent, but these jobs will only last a year or so.
The payroll tax credit is already in place, it's a temporary tax that will probably be made permanent now that it's been cut. It's the tax that pays the Social Security trust fund. Uh, remember how Social Security is bankrupt? Less money in that fund illustrates just how much of a Ponzi scheme the whole entitlement is.
Being that the credit is already in place, and the unemployment rate has not dropped, why would extending it fare any better? Obama claimed the average family would get $1500 dollars "right into your pocket." Which is an absolute...mischaracterization. That $1500 is spread out over the year, which amounts to $125 each month. If you get paid every other week, that's about $57 a paycheck. Not exactly a massive amount of new wealth to go spend, and since families are opting to pay off their debts or save for the future now instead of spend...this will do nothing to stimulate the economy.
It stems for a belief that people will be rushing out to spend the money right away in stores, which will then hire. But that's not what has been happening, and since this is a temporary tax, and businesses aren't stupid, they know it will go away some day, and the assumed spending will stop - so why hire? Plus with the threat of Dodd-Frank and Obamacare regulations in a couple years, how is $57 a paycheck going to help businesses?
The payroll tax cut for businesses would help, as well as the tax credit for hiring the unemployed if the regulatory and tax threat didn't loom in the distance. The tax credit for businesses hiring the unemployed was tried last year, the HIRE Act. I think we all know how well that worked.
Unemployment benefits do not create jobs. That money is taken from the businesses who would be hiring and given to people who aren't working. It's circular spending at best.
All the spending on "shovel ready" construction was tried in 2009 AND 2010. When the money runs out, the job is ended. When the construction ends, the job ends as well. There's no sustained employment from this spending.
The same goes for union teachers. The money is given to schools to hire more teachers or prevent layoffs? When the money runs out the state can't afford those teachers anymore so they're laid off. How does that create lasting jobs? It will cause another economic slump once the money runs out, exactly like what happened with Stimulus I.
President Obama's plan to pay for his new stimulus bill is to RAISE TAXES. There is NO WAY this bill can be paid for by taxing the wealthy alone, AND HE KNOWS THAT. What he is planning to do to our economy just to benefit his union pals is nearly CRIMINAL.
Conservative Action Alerts believes that our economy can be saved without massive spending and taxes. CLICK HERE to FAX Congress and tell them that President Obama's ideas have already been tried and have FAILED. Tell them to enact policies that cost NOTHING and have proven to work in the past. Right now we need solutions, not higher taxes.
If this additional porkulus is passed - and even worse - if President Obama gets re-elected, then in a couple more years, when these policies fail again, we're going to have to pass another one of these failures. How many times will the Obama Administration and liberals try the same things over and over again before they realize their ideas don't work?
How many more of these failures can the American people afford?
There are ideas sitting in the Senate right now that could ACTUALLY get people back to work AND create long-lasting jobs. And better yet - it doesn't cost taxpayers a DIME.
In 2013 and 2014 Dodd-Frank and Obamacare will smack employers with higher taxes and crippling regulations. Businesses know this, but they don't know what exact regulations are included in these bills. Why hire when you have no idea what's coming? All they know is what's written in the bill, but it is the job of federal regulators to actually write the regulations. So it's anyone's guess what the regulations will actually be.
Just removing these two uncertainties would help businesses a lot. Making the Bush Tax cuts for the upper class (which includes small businesses) permanent so they know what their tax rate will be in 2013 would also free up a lot of uncertainty.
Neither of these two, free, plans were included in President Obama's speech.
Passing the three free trade agreements, cleanly, will also hundreds of thousands of jobs. Also free.
Returning the drilling permit process back to 2008 levels will get people in the Gulf Coast back to work and create thousands of jobs. Opening up new sources of oil exploration will not only create HUNDREDS OF THOUSANDS OF JOBS but also reduce our dependence on foreign oil and thus, reducing government spending. Also a freeidea.
All ideas the Senate could act on. Except the free trade agreements, President Obama needs to actually release them to Congress.
President Obama is not about creating jobs for Americans. The only jobs he wants to create are for his union pals.
Americans need ideas that don't add to the debt and don't increase taxes. Just such proposals exist but are being ignored by the President and his liberal cronies.
Doing nothing would be better for the American people than passing President Obama's speech. We cannot let this plan pass. Please Fax every Member of Congress now and enact real job creating ideas.
Sincerely,
Conservative Action Alerts
P. S. Our country is in desperate need of jobs. The only plan President Obama has will KILL JOBS. Please CLICK HERE to FAX every Member of the U.S. Congress to tell them to pass REAL job creating ideas and not another stimulus!
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