Category Archives: Economist Dan Mitchell

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor, cartoon included)

Senator Pryor pictured below:

Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

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What Are the Dangers of Too Much Debt?

Published on Mar 20, 2012

Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What can the U.S. government do today to prevent a crisis from happening when interest rates go up?

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We got to cut wasteful spending out of the government and here is another fine suggestion from the Heritage Foundation.

Todd Thurman

March 12, 2013 at 5:40 pm

Newscom

The massive spending bill, or continuing resolution, released by the Senate this week continues spending on programs which are inappropriate or wasteful and fails to adopt good policies in many areas. Here’s a rundown of some of the worst offenders in the Senate bill:

Consumer Product Safety Commission (CPSC). Unlike the budget passed by the House, the Senate bill seeks to restore government spending to fund the failed CPSC product safety database. CPSC decision making with respect to the database has previously been called “arbitrary and capricious” by the courts.

Since it was implemented in 2011, manufacturers have shown that the CPSC database is seriously flawed. The database allows the public to submit unproven claims of harm with the CPSC and gives manufacturers only 10 days to challenge these claims; however, the CPSC itself has final authority to publish reports of such claims, even if they are disproved by the manufacturer. The accuracy of the CPSC reports is thus seriously questionable, and is a one-stop shop for tort lawyers seeking new clients or seeking “evidence” for their current lawsuits.

Furthermore, last October, in Company Doe v. Inez Tenenbaum, a federal court in Maryland overturned a decision of the CPSC to publish a report as “arbitrary and capricious,” because the CPSC report was “misleading and fail[ed] to relate[] to the [manufacturer’s] product in any way.” Indeed, the CPSC database is a concrete example of government waste: It is a shame that the Senate bill seeks to restore government spending to publishing misleading claims that damage business growth and likely lead to additional frivolous lawsuits.

—Andrew Kloster, Legal Fellow

The third-most viewed post in the history of this blog, with more than 22,000 views, is this set of cartoons showing how the welfare state begins and how it ends.

A similar theme can be found in this great new cartoon from Chuck Asay.

And just in case you think Asay is being unfair, keep in mind that folks like Obama and Pelosi actually have claimed that more unemployment benefits is “stimulus.” Yes, you read correctly. Subsidizing unemployment is good for growth to these strange ideologues.

Asay’s cartoon is so good that it may dethrone my previous top choice. Though sometimes I am most impressed by this one showing why parasites shouldn’t kill their host animal.

I’d be curious to know which one all of you think is most effective.

And since Asay’s work is almost always worth sharing, you can find more of my top picks hereherehere, and here.

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The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, lowcostsqueegees@yahoo.com www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

Related posts:

Mark Pryor responds to me concerning Debt Ceiling email (Part 1)

The problem with the debt ceiling is very clear to me. We need to get serious about cutting federal spending. I am so upset about it that I have emailed over 100 emails to Senator Pryor concerning specific spending suggestions. I get emails from back from Senator Pryor like the one below. This means that […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 164)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 164) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 163)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 163) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 162)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 162) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Capitol Tours with Senator Mark Pryor

Three very good video tours below from Senator Mark Pryor. Published on Jun 13, 2012 by SenatorPryor Episode 1: Arkansans in the Capitol Published on Jul 9, 2012 by SenatorPryor Episode 2: The Crypt and the Old Supreme Court Published on Aug 20, 2012 by SenatorPryor Episode 3: The Senate Chamber If you want to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 161)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 161) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Mark Pryor responds to my email

Senator Mark Pryor wants our ideas on how to cut federal spending and I sent them to him but he didn’t take any of my suggestions. However, he did take time to get back to me today, but I am not too impressed with Senator Pryor’s response. I gave him hundreds of ideas about how […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 160)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 160) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 159)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 159) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 158)

Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to do so in the future. On May 11, 2011,  I emailed to […]

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (“Thirsty Thursday”, Open letter to Senator Pryor)

Office of the Majority Whip | Balanced Budget Amendment Video In 1995, Congress nearly passed a constitutional amendment mandating a balanced budget. The Balanced Budget Amendment would have forced the federal government to live within its means. This Balanced Budget Amendment failed by one vote. 16 years later, Congress has the chance to get it […]

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (“Thirsty Thursday”, Open letter to Senator Pryor)

Sadly Senator Pryor has voted against the Balanced Budget Amendment over and over in his long time in the Senate. Senator Pryor: “There are a lot of people who think a balanced-budget amendment solves all the fiscal problems. I completely disagree.” (Peter Urban, Pryor Tilts Balanced Budget, Southwest Times Record, 11/17/11) Dear Senator Pryor, Why […]

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (“Thirsty Thursday”, Open letter to Senator Pryor)

Mark Levin and Senator Hatch discuss the balanced budget amendment and it’s importance. Uploaded by loveconstitution on Jan 28, 2011 Mark Levin interviews Senator Hatch 1/27/2011 about the balanced budget amendment. Mark is very excited about the balanced budget amendment being proposed by Senator Orin Hatch and John Cornyn and he discusses the amendment with […]

Will Senator Pryor be re-elected in 2014? (Part 4)(Royal Wedding Part 5)

Dr. Jay Barth with Hendrix College comments on our latest poll results on Arkansas politics (clip from Talkbusiness) Talk Business reported today in the article “Poll Shows Beebe Strength, Pryor Shaky,” the following: A new Talk Business-Hendrix College Poll shows Gov. Mike Beebe (D) maintaining his high job approval rating, while Sen. Mark Pryor (D) […]

Will Senator Pryor be re-elected in 2014? Part 3 (The Conspirator Part 16)

U.S. Sen. Mark Pryor at the 2009 Democratic Party Jefferson Jackson Dinner, Arkansas’s largest annual political event. Mark Pryor is up for re-election to the Senate in 2014. It is my opinion that the only reason he did not have an opponent in 2008 was because the Republicans in Arkansas did not want to go […]

Will Senator Pryor be re-elected or not? (Part 3)

Michael Tanner, a senior fellow at the CATO institute, explains that the rate of return on social security will be much lower for todays youth. Steve Brawner wrote in his article “Tiptoeing toward the third rail,” (Arkansas News Bureau, Jan 9,): Social Security has long been considered the “third rail” for American politicians, meaning it’s […]

Will Senator Pryor be re-elected or not? Part 2

HALT:HaltingArkansasLiberalswithTruth.com   CBS — October 19, 2010 — New York Times’ Jeff Zeleny talks to Jan Crawford about the state of Democrats in the South… Are they a dying species? In the article “Southern Democrat much closer to extinction after GOP wave,” (Washington Times, Nov 4, 2010), Ben Evans notes: After this week’s elections, the […]

Will Senator Pryor be re-elected or not? Part 1

HALT:HaltingArkansasLiberalswithTruth.com Roland Martin appears on Rick’s List with Rick Sanchez and the Best Political Team on television (Candy Crowley, John King, Jeffery Toobin, Ed Rollins, Gloria Borger and Victoria Toensing) to discuss day two of the Elena Kagan Supreme Court confirmation hearings. During the analysis, Senator Graham and Elena Kagan had an interesting exchange over […]

Obama’s welfare state creates dependency (be more prompt with tax return next year we almost ran out of welfare money)

President Obama has really cranked up the welfare state (Bush really never slowed it down either) and I think this cartoon below is really appropriate.

A Real-Life Example of How Government Handouts Create Life-Sapping Dependency

February 7, 2013 by Dan Mitchell

Remember Julia, the mythical moocher created by the Obama campaign to show the joys of government dependency? As illustrated by this Ramirez cartoon, Julia symbolizes the entitlement mentality.

Unfortunately, there are many real-life Julias.

I wrote a couple of years ago about Olga, a Greek woman who petulantly believed that government was responsible for her empty life.

But we don’t know any details about Olga other than her desire to mooch, so the best real-world examples of Julia may be from England. We have Natalija, a Lithuanian immigrant who has quickly learned bad habits of dependency, and Danny and Gina, two native-born scroungers.

Natalija, Danny, and Gina all decided to get a free ride from taxpayers, largely because overly generous handouts meant that they could enjoy higher living standards by staying at home and watching TV rather than living productive lives.

And if these info-graphics are any indication, there must be lots of people in the United Kingdom who make similar calculations.

No wonder English employers sometime have a hard time filling slots. Why climb the economic ladder when government is providing a comfy hammock?

Unfortunately, the same misguided policies exist in the United States. I shared a remarkable chart last year showing that a household would be better off with $29,000 of income rather than $69,000 of income because of the combined impact of both taxes and redistribution programs.

Now, courtesy of some first-rate journalism by a local television station, we have a powerful example exposing how the system operates. We learn the story of Kristina, who chooses to earn less money in order to keep the taxpayer-funded gravy train rolling.

We’ve all heard the line that America is becoming an entitlement society or welfare state, with half of U.S. households now receiving some type of government benefit. But a CBS 21 News investigation has taken that stat one step further to show you how much people are actually getting for free. A few years ago, reporter Chris Papst worked with a single mom who had two children. She turned down a raise because she said the extra money would decrease her government benefits. It was hard to understand why she did that, until Chris started working on this story. “You do what you have to do as a single mom,” explained Kristina Cogan. “And that’s what I did.” ……she admits living a life off the government can be comfortable. “If you’re going to get something for free, are you going to work for it?” Cogan explained. “It kind of like sucks you in.”

Here are some of the horrific details.

For this story, CBS 21 researched what government programs are available to a single mother of two making $19,000 a year. What we found was incredible. Our family would be eligible for $14,976 in free day care, another $13,400 for Head Start and Early Head Start, $7,148 in housing vouchers, $6,500 for weatherization projects, $400 to pay heating bills, $480 a year for a cell phone, with an extra $230 for a land line, and $182 in free legal advice. The family would get more than $6,028 in food assistance and another $6,045 in medical assistance. The mother is eligible for $5,500 in Pell Grants for school with an additional $12,000 for the Education Opportunity Grant; SMART Grant; and TEACH Grant. Our family would also get $6,800 in tax credits, and $1,900 in withholding would be returned. Add it up and this family can get $81,589 in free assistance.

There’s nothing in the story to suggest that Ms. Cogan is utilizing all these programs, but the plethora of available goodies certainly helps to explain why so many people decide it’s easier to be moochers rather than producers.

Which also explains why the welfare state is a recipe for ever-increasing dependency, as shown by this famous set of cartoons.

Which also causes a sluggish economy, as illustrated by this Chuck Asay cartoon.

No wonder the share of households taking something from the government has been increasing. And no wonder the poverty rate stopped falling once the government’s so-called War on Poverty began.

P.S. Most stories about welfare are pathetic, as we see from this dependency contest featuring the “Connecticut Kid” vs the “English Loafer.” But the welfare state also breeds more bizarre behaviors.

P.P.S. Are you subsidizing bad behavior? Click here to see a map revealing which states offer the most extravagant welfare benefits.

P.P.P.S. Share this video to help others understand the high cost of the welfare state.

Open letter to President Obama (Part 364)

(This letter was emailed to White House on 12-20-12.)

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

I truly do wonder how smart our elected representatives are in Washington. Mr President I know you are a Harvard graduate and these comments I guess are really aimed at my Republican friends mostly. I got up on 12-20-12 and read this article below from the Heritage Foundation with the reference to Charlie Brown getting fooled by Lucy again when he runs up and tries  to kick the football and of course she moves it again.

Liberals in Congress have always tried to fool conservatives by promising future cuts if they provide higher taxes now. (This article below appeared on www.heritage.org on 12-20-12.)

Obama’s “Lucy Move the Football” Fiscal Cliff Plan Still Not Balanced

Alison Acosta Fraser

December 18, 2012 at 3:25 pm

Volleys of negotiating counter-offers are coming in faster now that Christmas break and the looming fiscal cliff are just around the corner.

While there is much unsatisfactory with Speaker of the House John Boehner’s (R–OH) Sunday night proposal, let us not forget that the reason we are watching this needless, high stakes drama unfold is due to President Obama’s intractable insistence on tax increases on America’s high earners. After all, he and Congress could simply and quickly pass a bill to extend all current policies and avoid the fiscal cliff entirely—if he wanted to. No, this is really about hiking taxes on high earners. Thus the charade of deficit reduction continues.

Obama’s latest counteroffer is no more acceptable than his first offer. Short on details concerning actual spending reductions, especially on entitlements, it is replete with his requisite tax hikes and (we are shocked) new stimulus spending. The cherry on top is an extension of the debt limit for two years, essentially handing over authority to raise it to the President.

Right.

The President originally called for around $800 billion in tax hikes on America’s “highest” earners—those earning $250,000 and up. A ridiculous demand when the economy is still struggling under his big spending and regulatory policies, and one which would squarely hit smaller businesses. You know, the ones who actually create jobs.

Yet, just like Lucy and the football, when Boehner and company offered up $800 billion in tax hikes, Obama quickly doubled his demand to $1.5 trillion in tax hikes—again, all from the highest earners. They, he tells us, can afford to pay a little more. Never mind, of course, that the top 1 percent of earners already pay 37 percent of all income taxes. Somehow we are to believe this is a “balanced approach.”

Obama pitches all this on the pretext that we can simply go back to the tax rates we had under Clinton. Wrong! His dirty little tax secret is that he has already hiked taxes on high earners under Obamacare. First the law added a surtax of 0.9 percent in addition to the Medicare payroll tax on those earning over $250,000. For the first time ever, Obamacare will apply this higher rate of 3.8 percent to investment income on January 1. Obama won’t tell you that going back to Clinton-era tax rates will actually result in higher taxes on wages, dividends, and capital gains.

They say if you want less of something, then tax it. For Obama, this works fine on financial transactions, carbon emissions, driving, and junk food. But evidently, for him, not so much on a strong vibrant economy. And those Clinton boom years? They weren’t ushered in after the Clinton tax hikeonly after the Clinton–Gingrich tax cut!

Rather than working with Republicans on tax proposals that will actually grow the economy, Obama is now simply fighting over his definition of “high income” while we are left to wonder how much this $1.2 trillion tax hike will slow the economy.

As for the $1.2 trillion spending reductions, the only reason they are there is because Boehner insisted on them. But $100 billion in cuts would whack the defense budget, which is already reeling from earlier budget cuts. Yet the real spending and debt crisis comes from unaffordable entitlement programs. While Obama is insisting on balance on the tax side, he is sorely lacking in leadership here. As a recent Washington Post editorial opined:

Elections do have consequences, and Mr. Obama ran on a clear platform of increasing taxes on the wealthy. But he was clear on something else, too: Deficit reduction must be “balanced,” including spending cuts as well as tax increases. Since 60 percent of the federal budget goes to entitlement programs such as Medicare, Medicaid and Social Security, there’s no way to achieve balance without slowing the rate of increase of those programs.

We know Obama is open to changing the inflation calculation and slowing the benefit growth in Social Security. But what else? What about the proposals in his own budget, which would increase premiums on Medicare? He could easily broaden his proposals with additional uncontroversial steps to begin the process of strengthening and reining in Social Security and Medicare. All he needs to do is lead.

Some polls may show that Americans think taxes should be part of a deficit deal; but what the polls do not always show is their utter distrust that Washington would use new revenues to actually reduce the deficit. Here, Obama does not let them down. He reportedly wants $80 billion in new spending on infrastructure and unemployment benefits.

In exchange for all of this, he wants to raise the debt limit by enough to fuel his big spending goals for two years. This is utterly unacceptable. Americans know you cannot reduce the deficit when you plan to actually spend more. Americans also know that when Washington lifts the debt limit, it will not control spending. The debt limit puts the very pressure lawmakers need to account for out-of-control spending and make vital course corrections to bring spending under control, lest we face a Euro-style debt crisis in the future.

White House Press Secretary Jay Carney is actually insisting that “[t]he President’s proposal is the only proposal we have seen that achieves the balance that is so necessary.” Balance, evidently, is in the eyes of the beholder. As the Post noted, 60 percent of the budget stems from entitlements.

In just 13 short years—by the time today’s kindergarteners enter college—entitlements and interest on the debt will eat up all tax revenues. A truly balanced approach must start where the problem starts—with substantive reforms to entitlements. While the President maintains that you cannot cut your way to prosperity, you certainly cannot tax your way there.

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Below is a speech by George W. Bush honoring Milton Friedman:

Milton Friedman Honored for Lifetime Achievements 2002/5/9

Milton Friedman said that getting George Bush I to be his vice president was his biggest mistake because he knew that Bush was not a true conservative and sure enough George Bush did raise taxes when he later became President. I wonder if Jeb Bush has the same genes as his father.

What we need is some people in Washington that are brave enough to say that we have taken too much of the american people’s money and we have to make the painful spending cuts in order to balance the budget and not ask for any more tax increases!!!! Arkansas’ congressman Rick Crawford has also made the Charlie Brown mistake.

Even though America’s fiscal problem is entirely the result of too much government spending, I wrote earlier this year that there were all sorts of scenarios where I would agree to a tax increase.

But I then pointed out that all of those scenarios were total fantasies and that it would be more realistic to envision me playing center field for the New York Yankees.

The fundamental problem is that politicians never follow through on promises to reduce spending – even if you use the dishonest Washington definition that a spending cut occurs whenever the budget doesn’t rise as fast as previously planned.

And to make matters worse, they always seem to want class-warfare tax hikes that do heavy economic damage rather than the loophole closers that at least get rid of some of the inefficient corruption in the tax code.

That’s why I like the anti-tax pledge of Americans for Tax Reform. You don’t solve America’s fiscal problems by saying no to all tax increases, but at least you don’t move in the wrong direction at a faster rate.

Notwithstanding the principled and pragmatic arguments against putting tax increases on the table, some Republicans – in a triumph of hope over experience – are preemptively acquiescing to tax hikes.

Here’s what Jeb Bush said.

Jeb Bush, the former Florida governor, said Friday that he could back a broad deficit plan that increased taxes, a stance that puts him at odds with other prominent Republicans. Bush told a House panel he could get behind a plan that combined 10 dollars in spending cuts for every dollar of new revenue… “The problem is the 10 never materializes,” [Congressman Paul] Ryan said after Bush said he could support a revenue-increasing deficit deal. Norquist also has criticized deficit deals crafted in 1982 and 1990 – the latter agreed to by then-President George H.W. Bush, Jeb’s father – for failing to deliver on the spending side.

Kudos to Paul Ryan for making the obvious point about make-believe spending cuts. And Grover is correct about the failure of previous budget deals.

Indeed, I cited a New York Times column that inadvertently revealed that the only budget deal that worked was the 1997 pact that cut taxes rather than raised them.

Jeb Bush isn’t the only apostate. Here’s what Senator Graham had to say.

Sen. Lindsey Graham (R-S.C.) said Tuesday he believed Republicans should consider eliminating loopholes in the tax code even if they aren’t replaced by additional tax cuts, a move that would break with an anti-tax pledge many GOP lawmakers have signed with activist Grover Norquist. “When you eliminate a deduction, it’s OK with me to use some of that money to get us out of debt. That’s where I disagree with the pledge,” Graham told ABC News. …”I’m willing to move my party, or try to, on the tax issue. I need someone on the Democratic side being willing to move their party on structural changes to entitlements.” Graham said, for instance, he would support a plan that included $4 in spending cuts for every $1 in tax increases. During a Republican debate last August, all eight Republican candidates in attendance said they would reject a proposal to trade $10 in spending cuts for even $1 in tax increases.

In some sense, Senator Graham’s comments are reasonable. With real spending cuts and less-damaging forms of tax hikes, an acceptable deal is possible. But only in Fantasia, not in Washington.

In the real world, all that Senator Graham has done is to move the debate slightly to the left.

I’ve noted that tax increases are political poison for the Republican Party, but I don’t lose sleep worrying about the GOP.

But I do have nightmares about government getting even bigger, and that’s why I don’t want tax increases on the table. I don’t even want them in the room. Or the house. Or the neighborhood.

That’s why Jeb Bush and Lindsey Graham are the newest winners of the Charlie Brown Award. They’ve put blood in the water. I wonder if they’ll act surprised when hungry sharks show up looking for a meal?

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In 1982 the Democrats promised future spending cuts if Ronald Reagan would agree to a tax increase, but you guessed it, the taxes were increased and the spending cuts never came. THE REAL PROBLEM IS NOT THAT WE DON’T HAVE ENOUGH TAXES BUT WE DON’T WANT TO CUT SPENDING!!!

Washington Could Learn a Lot from a Drug Addict

Concerning spending cuts Reagan believed, that members of Congress “wouldn’t lie to him when he should have known better.” However, can you believe a drug addict when he tells you he is not ever going to do his habit again? Congress is addicted to spending too much money.  Lee Edwards wrote in his article “Golden Years” about Ronald Reagan:

Sometimes Reagan went along with a pragamatist like chief of staff James Baker, who persuaded the president to accept the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), which turned out to be the great tax increase of 1982 — $98 billion over the next three years. That was too much for eighty-nine House Republicans (including second-term Congressman Newt Gingrich of Georgia) or for prominent conservative organizations from the American Conservative Union like the Conservative Caucus and the U.S. Chamber of Commerce, which all opposed the measure.

Baker assured his boss that Congress would approve three dollars in spending cuts for every dollar of tax increase. To Reagan, TEFRA looked like a pretty good “70 percent” deal. But Congress wound up cutting less than twenty-seven cents for every new tax dollar. What had seemed to be an acceptable 70-30 compromise turned out to be a 30-70 surrender. Ed Meese described TEFRA as “the greatest domestic error of the Reagan administration,” although it did leave untouched the individual tax rate reductions approved the previous year. (TEFRA was built on a series of business and excise taxes plus the removal of business tax deductions.)[xxx]

The basic problem was that Reagan believed, as Lyn Nofziger put it, that members of Congress “wouldn’t lie to him when he should have known better.”[xxxi] As a result of TEFRA, Reagan learned to “trust but verify,” whether he was dealing with a Speaker of the House or a president of the Soviet Union.

______________

_____________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

President Obama is spending like crazy (Obama running off European socialism cliff)

How sad is this editorial cartoon below.

The European Lemming

October 23, 2011 by Dan Mitchell

This cartoon says it all.

You can find some additional great Ramirez cartoons here, here, and here.

d

Open letter to President Obama (Part 362)

Does Government Have a Revenue or Spending Problem?

People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too much spending, or too little tax revenue? Economics professor Antony Davies examines the data and concludes that the root cause of the debt is too much government spending.

____________

(This letter was emailed to White House on 12-12-12.)

President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

When you try and tax and spend too much then the business community will try and relocate to another state. That is exactly what is happening in California today. We need to lower taxes if we want to grow the economy.

Over the years, I’ve shared some outrageous examples of overpaid bureaucrats.

Hopefully we’re all disgusted when insiders rig the system to rip off taxpayers. And I suspect you’re not surprised to see that the worst example on that list comes from California, which is in a race with Illinois to see which state can become the Greece of America.

Well, the Golden State has a new über-bureaucrat. Here are some of the jaw-dropping details from a Bloomberg report.

The numbers are even larger in California, where a state psychiatrist was paid $822,000, a highway patrol officer collected $484,000 in pay and pension benefits and 17 employees got checks of more than $200,000 for unused vacation and leave. The best-paid staff in other states earned far less for the same work, according to the data.

Wow, $822,000 for a state psychiatrist. Not bad for government work. So what is Governor Jerry Brown doing to fix the mess? As you might expect, he’s part of the problem.

…the state’s highest-paid employees make far more than comparable workers elsewhere in almost all job and wage categories, from public safety to health care, base pay to overtime. …California has set a pattern of lax management, inefficient operations and out-of-control costs. …In California, Governor Jerry Brown hasn’t curbed overtime expenses that lead the 12 largest states or limited payments for accumulated vacation time that allowed one employee to collect $609,000 at retirement in 2011. …Last year, Brown waived a cap on accrued leave for prison guards while granting them additional paid days off. California’s liability for the unused leave of its state workers has more than doubled in eight years, to $3.9 billion in 2011, from $1.4 billion in 2003, according to the state’s annual financial reports. …The per-worker costs of delivering services in California vastly exceed those even in New York, New Jersey, Illinois and Ohio.

Actually, it’s not just that he’s part of the problem. He’s making things worse, having seduced voters into approving a ballot measure to dramatically increase the tax burden on the upper-income taxpayers.

I suppose the silver lining to that dark cloud is that many bureaucrats now rank as part of the top 1 percent, so they’ll have to recycle some of their loot back to the political vultures in Sacramento.

Cartoon California Promised Land

But the biggest impact of the tax hike – as shown in the Ramirez cartoon – will be to accelerate the shift of entrepreneurs, investors, and small business owners to states that don’t steal as much. Indeed, a study from the Manhattan Institute looks at the exodus to lower-tax states.

The data also reveal the motives that drive individuals and businesses to leave California. One of these, of course, is work. …Taxation also appears to be a factor, especially as it contributes to the business climate and, in turn, jobs. Most of the destination states favored by Californians have lower taxes. States that have gained the most at California’s expense are rated as having better business climates. The data suggest that many cost drivers—taxes, regulations, the high price of housing and commercial real estate, costly electricity, union power, and high labor costs—are prompting businesses to locate outside California, thus helping to drive the exodus.

Yet another example of why tax competition is such an important force for economic liberalization. It punishes governments that are too greedy and gives taxpayers a chance to protect their property from the looter class.

___________

_____________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

Altruism and Ayn Rand

There are lots of articles on the subject of Ayn Rand’s view and how it was hard for a Christian to embrace all of it.

I’m in Monaco for the 10th forum of the Convention of Independent Financial Advisors, a Swiss-based NGO that focuses on promoting an ethical and productive environment for private investment. I moderated a couple of panels on interesting topics, including the European fiscal crisis.

Matthieu Ricard

But I want to focus on the comments of another speaker, Monsieur Matthieu Ricard, a French-born Buddhist monk. As you can see from his Wikipedia entry, he’s a very impressive individual. In addition to his other accomplishments, he serves as the French translator for the Dalai Lama.

During one of the dinners, we got into a fascinating conversation about the Buddhist concept of altruism (or at least one strain of that tradition) and Ayn Rand’s concept of selfishness, both as general ideas and as they relate to happiness.

At the risk of sounding un-libertarian, I’m siding with the monk.

Even though I’m a big fan of Ayn Rand and periodically give away copies of Atlas Shrugged to unwary young people, I’ve always been puzzled by the Randian hostility to altruism.

Yes, coercive altruism is wrong. Indeed, it’s not even altruism, particularly if you think (like Michael Gerson or Barack Obama) it’s noble or selfless to forcibly give away other people’s money.

But Rand seemed to think (and some Randians definitely think) that voluntary acts of charity and compassion are somehow wrong. In some sense, these folks take an ultra-homo economicus view that people are relentless utility maximizers based on self interest.

If this is a correct interpretation of Randianism (perhaps I should say Objectivism?), then I think it is inadequate. Yes, people want money, and almost everybody would like more money, but I’m guessing that it is non-monetary things that make people happiest.

I don’t want to sound too warm and fuzzy and ruin my image, but aren’t children, friends, family, and love the things that make the world go ’round for most of us? Yes, we also value achievement, but even that can be unrelated to pecuniary considerations.

These are amateur ramblings on my part, and I’ve probably done a poor job of describing the views of Randians and Monsieur Ricard. Moreover, I’m sure that very intelligent people have examined this issue in a much more sophisticated fashion.

For a fiscal policy wonk like me, though, this conference and this encounter forced me to give some thought to how you can be a big fan of Ayn Rand while also feeling good about holding open doors for little old ladies.

Obamacare will self-destruct!!! (Funny cartoons on Obamacare!!!)

Obamacare will self-destruct!!!!

We have a very interesting question from a reader in Nebraska. Is Obamacare such a cluster-you-know-what that the law will self-destruct?

Well, I’ve already explained why I’m optimistic about the possibility of turning Obamacare lemons into free-market lemonade.

Simply stated, the law took a healthcare system that already was a mess because of government intervention and subsidies and it doubled down on that misguided approach!

And since it’s highly unlikely that more government is the solution to problems created by government in the first place, I think we’ll have great fun being able to highlight all the bad consequences of Obamacare and make a principled case for pro-market reform (meaning not only Medicaid reform and Medicare reform, but also tax reform to help deal with the third-party payer crisis).

That being said, I don’t think Obamacare will collapse on its own. We’re going to have to give it a push. A big push.

This is because legislation will be required to undo all the taxes and subsidies in the law. And even though we have the bizarre situation of the Obama Administration deciding to deliberately ignore a legal requirement to impose an employer mandate beginning in 2014, we’ll also need legislation to undo both the individual and the employer mandate.

In other words, the fact that the law won’t achieve any of its goals (such as lower costs and universal insurance coverage) won’t cause the bad policy to disappear.

But it will make the law even more unpopular – particularly if we do our job.

That’s why we should relentlessly highlight examples of wasteful Obamacare spending. The Washington Post, for instance, is reporting on “the extreme measures states are taking to get young people signed up for Obamacare programs.”

And when even the Washington Post thinks politicians and bureaucrats are going above and beyond in their efforts to waste money, you know it’s something especially foolish. But when you’re trying to trick young people into signing up for insurance policies designed to subsidize richer seniors, you don’t really have much choice.

Oregon might do branded coffee cups, for example, whereas Seattle is looking at doing outreach at music festivals. It only makes sense, then, that Kentucky would be doing outreach at multiple bourbon festivals across the state.

From a big picture perspective, this type of waste in just a penny or two on the dollar, but it’s very symbolic of a law that is poorly designed and unworkable.

I also think political cartoonists are very helpful allies since they’re so effective at illustrating some of the worst parts of Obamacare. So let’s wrap up this post with a new batch of cartoons.

We’ll start with a couple that skirt the edge of appropriateness by playing off the recent airline crash in San Francisco. The first one is by Steve Breen.

Obamacare Cartoon July 15 1

And the second one is by Eric Allie.

Obamacare Cartoon July 15 2

The donkey pilot blaming the elephant passenger is a good touch, and you find that theme in this Gary Varvel gem.

Obamacare Cartoon July 15 3

Let’s close with a great Rick McKee cartoon that focuses on exploding costs, a message near and dear to my heart.

Obamacare Cartoon July 15 4

One final warning. We’re not guaranteed of victory simply because Obamacare is leading to bad results. The statists are going to try and seize control of the narrative by asserting that the higher costs and greater inefficiencies could be fixed by squandering more money in the short run and imposing a single-payer system in the long run.

That’s a very perverse example of Mitchell’s Law and it surely doesn’t make sense to normal people. But it’s an approach that plays to the worst instincts of politicians, many of who will grab any excuse to increase the size and scope of Washington.

 

Related posts:

Obamacare may be scarier than you think!!!!

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Obamacare will grow government like nothing ever has in our country’s history!!!

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Dying laughing at Obamacare

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‘Why Indiana Shouldn’t Fall for Obamacare’s Medicaid Expansion’

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If Obamacare is so wonderful then why are so many people trying to get exemptions?

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Reason’s Peter Suderman highlights six reasons why states should refuse to implement any part of ObamaCare

Jacque Martin asks CATO Institute Michael Cannon about Obamacare Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. Jacque Martin […]

Dan Mitchell on Obamacare (includes cartoons on Obamacare)

Some very good points by Dan Mitchell of the Cato Institute on Obamacare: Why We Should Be Optimistic about Repealing Obamacare and Fixing the Healthcare System April 10, 2013 by Dan Mitchell I’m going to make an assertion that seems utterly absurd. The enactment of Obamacare may have been good news. Before sending a team of medical […]

Obama up to his Chicago style politics and tricks with Obamacare

Nic Horton Medicaid Expansion will “Cost Almost Double than Doing Nothing” part I It is amazing to me that Repubican lawmakers are considering taking President Obama’s advice on anything in light of this article below. March 25, 2013 4:26PM Here’s Your Free Health Care. Would You Care to Vote? By Michael F. Cannon Share Tweet […]

Will President Obama keep his word concerning Obamacare?

A Red-Ink Train Wreck: The Real Fiscal Cost of Government-Run Healthcare Uploaded on Nov 9, 2009 This CF&P Foundation video explains why healthcare proposals in Washington will result in bloated government and higher deficits. This mini-documentary exposes the pervasive inaccuracy of congressional forecasts and succinctly lists 12 reasons why Obamacare will be a budget buster. […]

Republicans in Arkansas messing up by endorsing Obamacare

  Enlarge image Credit Nathan Vandiver / KUAR Michael Cannon of the Cato Institute told lawmakers March 19, 2013 that abandoning plans to partner with the federal government on a health insurance exchange would both benefit the state and reduce the power of the Affordable Care Act. __________________ I am very pleased with the Republican lawmakers in […]

Dan Mitchell shows how ignoring the Laffer Curve is like running a stop sign!!!!

Dan Mitchell shows how ignoring the Laffer Curve is like running a stop sign!!!!

I’m thinking of inventing a game, sort of a fiscal version of Pin the Tail on the Donkey.

Only the way it will work is that there will be a map of the world and the winner will be the blindfolded person who puts their pin closest to a nation such asAustralia or Switzerland that has a relatively low risk of long-run fiscal collapse.

That won’t be an easy game to win since we have data from the BISOECD, and IMF showing that government is growing far too fast in the vast majority of nations.

We also know that many states and cities suffer from the same problems.

A handful of local governments already have hit the fiscal brick wall, with many of them (gee, what a surprise) from California.

The most spectacular mess, though, is about to happen in Michigan.

The Washington Post reports that Detroit is on the verge of fiscal collapse.

After decades of sad and spectacular decline, it has come to this for Detroit: The city is $19 billion in debt and on the edge of becoming the nation’s largest municipal bankruptcy. An emergency manager says the city can make good on only a sliver of what it owes — in many cases just pennies on the dollar.

This is a dog-bites-man story. Detroit’s problems are the completely predictable result of excessive government. Just as statism explains the problems of Greece. And the problems of California. And the problems of Cyprus. And theproblems of Illinois.

I could continue with a long list of profligate governments, but you get the idea. Some of these governments are collapsing at a quicker pace and some at a slower pace. But all of them are in deep trouble because they don’t follow my Golden Rule about restraining the burden of government spending so that it grows slower than the private sector.

Detroit obviously is an example of a government that is collapsing sooner rather than later.

Why? Simply stated, as the size and scope of the public sector increased, that created very destructive economic and political dynamics.

More and more people got lured into the wagon of government dependency, which puts an ever-increasing burden on a shrinking pool of producers.

Meanwhile, organized interest groups such as government bureaucrats used their political muscle to extract absurdly excessive compensation packages, putting an even larger burden of the dwindling supply of taxpayers.

But that’s not the main focus of this post. Instead, I want to highlight a particular excerpt from the article and make a point about how too many people are blindly – perhaps willfully – ignorant of the Laffer Curve.

Check out this sentence.

Property tax collections are down 20 percent and income tax collections are down by more than a third in just the past five years — despite some of the highest tax rates in the state.

This is a classic “Fox Butterfield mistake,” which occurs when someone fails to recognize a cause-effect relationship. In this case, the reporter should have recognized that tax collections are down because Detroit has very high tax rates.

The city has a lot more problems than just high tax rates, of course, but can there be any doubt that productive people have very little incentive to earn and report taxable income in Detroit?

And that’s the essential insight of the Laffer Curve. Politicians can’t – or at least shouldn’t – assume that a 20 percent increase in tax rates will lead to a 20 percent increase in tax revenue. They also have to consider the degree to which a higher tax rate will cause a change in taxable income.

In some cases, higher tax rates will discourage people from earning more taxable income.

In some cases, higher tax rates will discourage people from reporting all the income they earn.

In some cases, higher tax rates will encourage people to utilize tax loopholes to shrink their taxable income.

In some cases, higher tax rates will encourage migration, thus causing taxable income to disappear.

Here’s my three-part video series on the Laffer Curve. Much of this is common sense, though it needs to be mandatory viewing for elected officials (as well as the bureaucrats at the Joint Committee on Taxation).

The Laffer Curve, Part I: Understanding the Theory

Uploaded by on Jan 28, 2008

The Laffer Curve charts a relationship between tax rates and tax revenue. While the theory behind the Laffer Curve is widely accepted, the concept has become very controversial because politicians on both sides of the debate exaggerate. This video shows the middle ground between those who claim “all tax cuts pay for themselves” and those who claim tax policy has no impact on economic performance. This video, focusing on the theory of the Laffer Curve, is Part I of a three-part series. Part II reviews evidence of Laffer-Curve responses. Part III discusses how the revenue-estimating process in Washington can be improved. For more information please visit the Center for Freedom and Prosperity’s web site: http://www.freedomandprosperity.org

Part 2

Part 3

P.S. Just in case it’s not clear from the videos, we don’t want to be at the revenue-maximizing point on the Laffer Curve.

P.P.S. Amazingly, even the bureaucrats at the IMF recognize that there’s a point when taxes are so onerous that further increases don’t generate revenue.

P.P.P.S. At least CPAs understand the Laffer Curve, probably because they help their clients reduce their tax exposure to greedy governments.

P.P.P.P.S. I offered a Laffer Curve lesson to President Obama, but I doubt it had any impact.

Related posts:

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Dan Mitchell looks at Obama’s tax record

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Dan Mitchell: “Romney is Right that You Can Lower Tax Rates and Reduce Tax Preferences without Hurting the Middle Class”

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The Laffer Curve Wreaks Havoc in the United Kingdom

I got to hear Arthur Laffer speak back in 1981 and he predicted what would happen in the next few years with the Reagan tax cuts and he was right with every prediction. The Laffer Curve Wreaks Havoc in the United Kingdom July 1, 2012 by Dan Mitchell Back in 2010, I excoriated the new […]

Dan Mitchell: Maryland to Texas, but Not Okay to Move from the United States to Singapore?

You can’t blame someone for leaving one state for another if they have a better an opportunity to make money. Maryland to Texas, but Not Okay to Move from the United States to Singapore? July 12, 2012 by Dan Mitchell I’ve commented before about entrepreneurs, investors, and small business owners migrating from high tax states such […]

Liberals act like the Laffer Curve does not exist.

Raising taxes will not work. Liberals act like the Laffer Curve does not exist. The Laffer Curve Shows that Tax Increases Are a Very Bad Idea – even if They Generate More Tax Revenue April 10, 2012 by Dan Mitchell The Laffer Curve is a graphical representation of the relationship between tax rates, tax revenue, and […]

Dan Mitchell shows why soak-the-rich tax policy does not work

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President Obama and government spending (GSA Govt waste tip of iceberg)

I wish President Obama would try to cut spending instead of increasing spending and our debt.

One of my first blog posts back in 2009 featured a column about the Social Security Administration squandering $750,000 on a “conference” at a fancy golf resort in Arizona.

This is why I’m not surprised the GSA pissed away a lot of money at a Las Vegas resort. This is what people do when they spend other people’s money. Heck, this cartoon shows it better than I can say it.

Here’s a small sampling of similar outrages.

The bureaucrats involved in all these outrages should be fired, or perhaps even charged with crimes such as malfeasance, but this cartoon reminds us that the real problem is the political class which appropriates the money that is then wasted by bureaucracies.

This cartoon was authored by Michael Ramirez, and you may know he is one of my favorites. To understand why,  see here, here, here, hereherehere, here, and here.

And this cartoon reminds us that every dollar of waste that gets publicized is just the tip of the iceberg.

I’m not familiar with Steve Breen, but he does lots of work like this, I’m sure I’ll be featuring more of his cartoons.

Thinking about all this waste, fraud, and abuse is a bit depressing, so let’s try to feel better by thinking about the ways that foreign governments squander taxpayer money, such as the UK government funding sex trips to Amsterdam, the Greek government rewarding pedophiles with disability handouts,  or the European Commission financing penile implants for senior politicians and bureaucrats.

d

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor, cartoon included)

Senator Pryor pictured below:

Why do I keep writing and email Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here, here,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

_______________

What Can We Cut to Balance the Budget

Published on Oct 16, 2012

If the U.S. government cut all government services except Social Security, Medicare, Medicaid, and payments on the debt, federal spending would still outpace revenues. Prof. Antony Davies argues that there are not specific cuts that will enable government to balance the budget. He says, “Nothing less than a redesign will solve this problem.” That redesign should begin by determining what the proper role of government is.

__________________

We got to cut wasteful spending out of the government and here is another fine suggestion from the Heritage Foundation.

Todd Thurman

March 12, 2013 at 5:40 pm

Newscom

The massive spending bill, or continuing resolution, released by the Senate this week continues spending on programs which are inappropriate or wasteful and fails to adopt good policies in many areas. Here’s a rundown of some of the worst offenders in the Senate bill:

Energy. The Senate CR continues to fund a failed energy policy that empowers Washington bureaucrats instead of American families and businesses. Though it does cut some programs minimally, it does the equivalent of removing a used napkin from a full trash can. There’s much more waste that needs to be removed. For example, section 1203 reduces Department of Energy (DOE) funding by $44 million when more than $5.3 billion could be cut. The $44 million is equivalent to 0.8 percent of what should be cut.

Perhaps most egregious is the meager $11 million cut from the $1.8 billion request for Office of Energy Efficiency and Renewable Energy. In total, the DOE budget funds applied-research programs on conventional fuels, renewable energy sources, and nuclear energy that the private sector should be undertaking. American families and business are far better equipped than government to determine what types of energy technologies work for them. Eliminating these programs alone would save $3 billion in taxpayer money and help to return energy choice back to Americans.

Though the bill cuts $10 million from nuclear energy spending, based on the 2013 request, it would still fund over $150 million for nuclear waste disposal and management programs. None of this funding would go toward Yucca Mountain, the waste repository mandated by the Nuclear Waste Policy Act, as amended. Given the complete lack of any nuclear waste disposal or management policy by the Administration and its insistence on terminating the Yucca project, there is little justification for this spending. Instead, Congress should provide $40 million for the Nuclear Regulatory Commission to finish its review of the DOE’s Yucca Mountain permit application.

—Jack Spencer, Senior Research Fellow, Nuclear Energy, and Nick Loris, Herbert and Joyce Morgan Fellow

Last year, I made fun of the Washington Post for biased reporting when they used the world “slash” to describe a budget proposal that would have trimmed $6 billion out of a giant $3,800 billion budget.

I wrote that this was the budgetary equivalent of “going on a diet by leaving a couple of french fries in the bottom of the bag after bingeing on three Big Mac meals at McDonald’s.” A couple of other bloggers then had some fun by doing the exact calculations of what this would mean.

Now we have a cartoon version of Washington budgeting, authored by Gary Varvel.

Keep in mind, though, that this cartoon actually is inaccurate because it implicitly accepts the dishonest Washington definition of a budget cut (having spending grow, but not as fast as previously planned).

Every budget plan, even the very admirable proposals put forth by Sen. Rand Paul and the House Republican Study Committee, merely restrains the growth of federal spending.

So the cartoon should show Uncle Same with some clippers, simply seeking to keep the weed from growing even faster.

And if we replaced Uncle Sam with Barack Obama, instead of scissors or clippers, he’d be holding fertilizer.

_______________

The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, lowcostsqueegees@yahoo.com www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

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