Think tank tells states to raise taxes

The Center on Budget and Policy Priorities has built a reputation as a reliable, if not always coherent, provider of talking points for big-government politicians.

Their current advice, in favor of tax hikes rather than spending cuts, fills the bill nicely:

In particular, the government spending that would be reduced if direct spending programs are cut is often concentrated among local businesses…. By contrast, the spending by individuals and businesses that would be affected by tax increases often is less concentrated among local producers — since part of the decline in purchases that would occur if taxes were raised would be a decline in the purchase of goods produced out of state. Thus, more of the reduction in purchases that results from tax increases than from government budget cuts falls on out-of-state goods (relative to in-state goods), lessening the adverse impact of a tax increase on the state economy. Reductions in direct government spending consequently could have a larger adverse impact on a state's economy than tax increases, which have a stronger adverse impact on out-of-state goods and services.

This is complete nonsense, but expect to hear something much like it very soon from the tax-and-spend crowd in Frankfort.

The truth is that taxation can't benefit an economy as much as leaving money in the economy where it was produced because the bureaucracy that has nothing to do with the production of wealth has to take its cut before any of the money gets re-distributed and re-circulated.

Common sense.

President Obama loves his people

Just discovered the election of Barack Obama has so terrified the gouging gougers in the produce industry that they have dropped the price of large grapefruit forty cents at Walmart.

Thank you, Benevolent Leader.


Actually, there are very serious consequences for a nation who holds its politicians is such a state of worship. It opens the door to great loss of personal freedoms.

Gotta stop welfare abuse somehow

Michigan is trying again to limit how much of their welfare budget goes to buying illicit drugs. A new bill would require drug testing of welfare recipients every six months and require the recipient to pay for the test.

Michigan passed a similar bill back in 1999 but it was found to be unconstitutional because it mandated random drug tests. Kentucky failed to pass a similar bill last session with the same unconstitutional provision. A Kentucky bill for 2009 repairs that problem by making the drug tests subject to a finding of probable cause.

Tax increases won't get it done in Kentucky

President-elect Barack Obama and Kentucky Gov. Steve Beshear have all kinds of tax increase plans for you.

You won't read about it in Tuesday's newspapers, but we got more evidence Monday to suggest tax increases will not solve what in Kentucky is simply an overspending problem.

And Kentucky's spending cuts in the area of lottery advertising seem to have not resulted in lower revenues there either. We should make deeper cuts in the Kentucky Lottery's advertising budget as soon as possible.

Who needs pickpockets? We have Jack Conway

Attorney General Jack Conway is supposed to be the top law enforcement officer in the state. That's not working out so well for taxpayers who don't like to get ripped off by legislators who abuse contracts with other government entities.

Back before the election, Conway was dragging his feet on investigating a money-for-nothing scandal involving Sen. Joey Pendleton.

Conway can not deny that he has known about this issue at least since April. Further, he can not deny participating in Sen. Pendleton's re-election campaign. Only now is he claiming to be investigating the matter.

This looks strangely like that good old boy system we used to hear so much about.

Republican Party of Kentucky Chairman Steve Robertson weighed in with this: "The most troubling aspect of this situation is that Jack Conway had one story before the election and another story after the election. It is a shame that this state’s chief law enforcement officer engaged in a political cover-up and hid the truth from the voters of Kentucky."

A moment in the reinvention of the GOP

Just saw native Kentuckian Diane Sawyer go blank when Bill O'Reilly asked her on Good Morning America who the head of the Republican National Committee is. The point he was making in asking her the question was that "no one knows" who heads the Republican Party, the party has no message, and that "there is no leadership."

"Catastrophic circumstance," Senator Williams?

Just as national Republicans have had their heads handed to them two elections in a row for playing footsie with big spenders, Senate President David Williams told the Louisville Courier Journal that he might be open to a tax increase:

"Asked if he has ruled out supporting a cigarette tax increase, Williams said, "I'm not going to get involved in a discussion about ruling out anything. I've never signed a no-tax pledge in my life because you could have some catastrophic circumstance that would require additional revenue.""

What does that even mean? I thought we all agreed that catastrophic circumstances were exactly the wrong time to raise taxes.

The only way Kentucky is going to get out of any fiscal holes with tax increases is if Frankfort continues its smoke-and-mirrors routine. And we have to know by now we can't keep doing that.

Williams has been one of the few voices of reason on Kentucky's public employee benefits disaster. Let's hope he doesn't mar that record with any more talk about raising taxes.

HELL NO!

Apparently Nancy Pelosi and Harry Reid want to expand the banking bailout to the car industry:

"It is our hope that the actions that Congress has taken, and that the Administration may take, will restore the preeminence of our domestic manufacturing industry so that it can emerge as a global, competitive leader in fuel efficiency and in new and path-breaking energy-efficient technologies that protect our environment."

It's time for Sen. Jim "Beanball" Bunning to start his 2010 re-election campaign with a little Capitol Hill headhunting.

Obama's specifics: I liked the fluff better

Now that he has been elected president, Barack Obama can't get away with just promising to make the sky blue and to make his wife proud to be an American: he's shifting to making detailed policy prescriptions. Hold on tight:

Of course, the one missing piece from this mounting disaster is a big tax increase. Nevertheless, these are precisely the wrong things to be doing. Deep tax cuts are the way to stimulate us out of this. The same old borrow-and-spend tricks will only prolong the agony.

Obama's political future depends on his ability to either stimulate the economy or deflect blame while doing nothing that would really help. At least at first, he appears to be opting for the latter.

Don't leave town yet, Gov. Beshear

Gov. Steve Beshear is heading out for a vacation next week just as a transitioning President-elect Barack Obama goes to work on pushing through his plan to bankrupt the coal industry.

Better call your guy, Governor.

In the early stages of Obama letdown syndrome

Obama Win Causes Obsessive Supporters To Realize How Empty Their Lives Are

Did you get the late-breaking memo?

A friend just pointed out ridiculously coordinated media coverage about the dramatic drop in the Dow Jones Industrial Average since Barack Obama was elected two days ago.

Earlier this afternoon the headline "Stocks tumble, lose 10 percent since election day" may have given someone the impression markets were not entirely comfortable with the new president-elect.

Can't have that.

If you do a Google search of that headline, you will see every media outlet who carried the AP article made the same change. I didn't do a screen capture of the original article, but the screen capture below certainly suggests everyone got the memo.

Now there's a great plan

California is back in the news with Gov. Arnold Schwarzenegger's proposal to raise taxes by $4.7 billion "to get our budget back on track, invigorate our economy and generate jobs for the state's unemployed."

Stopping government takeover of private sector

Lexington's Warren Rogers went to bat a few years ago to stop the government takeover of Kentucky American Water Company. Now he is back, as Chairman of Kentucky Club for Growth, battling the federal effort to usurp private sector jobs.

This morning, Rogers debated Kentucky AFL-CIO President Bill Londrigan. To Londrigan's credit, the union thug did not scream or utter any profanities during the entire debate.

The discussion primarily was about the card check provision of the Employee Free Choice Act which would increase union intimidation of workers. Interesting, Rogers pointed out a provision that is even worse than that:

For more coverage, go here.

Will work for massive pension boost

Expect to see Sen. David Boswell retire now that his bid to either get hired in the Beshear administration or go to Congress have failed. Had he been able to get a state executive branch job, he would have been able to artificially increase the state pension you will pay him. Since he couldn't, his pension payments are set to go down on January 1 if he is still in the Senate.

Thinkin' about goin' to Washington anyway

She's not talking, but it's looking like we could soon have a Sen. Sarah Palin from Alaska.

Sen. Ted Stevens appears to have been narrowly re-elected despite his felony convictions. His ouster would create a very interesting opportunity for Gov. Palin.

She could help keep Sen. Mitch McConnell in line while she gains that critical Washington experience.

Well, okay, there is this

The chairman of the economics department at George Mason University in Virginia has one pretty good reason free-marketeers shouldn't commit suicide just yet:

5 November 2008

Editor, Washington Times

Dear Editor:

Re "Obama wins presidency" (November 5): to all persons who understand that freer markets bring greater prosperity, I offer a reason to applaud Obama's defeat of McCain.

A President McCain would have followed Bush's script: singing paeans to free markets while simultaneously meddling and spending in harmful ways. Nevertheless - with popular attention on the song rather than on the substance - the problems caused by these intrusions would have been blamed on "free market fundamentalism" or even laissez-faire capitalism. At least Pres. Obama's destructive policies will not unjustly give capitalism a bad name.

Sincerely,
Donald J. Boudreaux
Chairman, Department of Economics

Score one for laissez-faire capitalism maybe not getting blamed for the next failure caused by government manipulation. By that reasoning, we can wonder what kind of financial market fix President John Kerry would have been able to get away with if he couldn't blame the problem on free markets.

And in other news...

The most important Kentucky race of 2008 just really gets started today.

The most important man in Washington

President-elect Barack Obama will have one person standing in the way off his agenda next year. That person, of course, is Senate Minority Leader Mitch McConnell of Kentucky.

That's because Senate Democrats fell short of a filibuster-proof 60 votes. Sen. McConnell knows better than anyone how to tie up bad bills in the Senate. That means a rough road ahead for tax increases and some of the new spending programs Obama has in mind. Unfortunately, Obama won't need Congress to take over the mainstream media with a new Fairness Doctrine.

Starting in January, Sen. McConnell is America's firewall.

Anyone want a ten-bagger?

If you still think Sen. John McCain can win and want to put your money where your mouth is, you might be able to turn $100 into a quick $1000.

Just go to Intrade.com.