Monday, April 06, 2009
Sunday, April 05, 2009
Leland does the math
Obamanomics 101
By Leland Conway
Uh-oh, the ideological left is bragging about President Obama’s big “middle class” tax cut that has just taken effect. Specifically, they are touting what they think it will do for Kentucky. One left leaning website made the optimistic claim that the thirteen additional dollars per week we’ll start seeing in our paychecks will put $800 million dollars back into Kentucky’s economy this year.
On its surface, the potential for an $800 million dollar economic boon sounds like a big deal, until you actually do the math.
First, the legislature in Frankfort just raised cigarette and alcohol taxes. The talking heads parroted the numbers given to them by politicians bragging that it will raise an additional $180 million in tax revenue. So we can cut that optimistic cash infusion from $800 million down to $620 million.
Then, the legislature in Frankfort raised the gas tax. They will tell you that this was not a tax increase, that they merely “froze” the rate at its current level. Don’t buy it. According to Kentucky law, the gas tax was supposed to be a percentage fixed to the wholesale price. Now that gas prices have dropped, they changed the law to their advantage. When prices go back up, and President Obama promises that they will, they’ll just “unfreeze” it again and continue to reap the benefits. Legislators boasted that this shenanigan would bring in an additional $120 million dollars in revenue. Now we can lower our tax cut projection to $500 million.
Next, the federal government is seriously considering cap and trade legislation to wage war against mythical global warming. The U.S. Department of Energy’s own estimates put the lower end cost of this dangerous legislation to each family at $700 additional dollars per year. (In reality, the higher energy costs and other charges will actually cost the average American family upwards of $3100 additional dollars per year.) Using the same whacked out math formula that the aforementioned liberal website used to arrive at the $800 million dollar cash infusion, we can now assume a cost to the commonwealth of an additional $840 million if cap and trade legislation passes. That makes the “middle class” tax cut now worth negative $340 million to Kentuckians.
Ouch.
Don’t blame me; I’m simply using their own math formula and government estimates – which are both overly optimistic. But I’m not done yet. As TV Salesman Billy Mays would say “But wait, there’s more!”
What they are claiming is a tax cut, is actually not a tax cut at all. It’s a tax credit. There is a big difference. A tax cut gives us some of our money back – end of story. This tax credit is actually considered by the government to be taxable income next year for some people. So after they’ve drained our pockets and given us a measly $13 per week, they’ll tax it back. Wow…a tax on a tax cut. Can this get any better?
Using their math formula again, that’s another $80 million dollar hit. Suddenly, Obama’s economic policies which some are claiming will give Kentuckians back $800 million dollars of their own hard earned money, has become a net $420 million dollar loss. Wow.
What started out as bragging about a tax cut becomes a complete charade when you take into account the real effect of Obamanomics, especially here in Kentucky, where we stand to be hit hardest by Obama’s anti-coal rhetoric and coinciding soaring energy costs. Bottom line folks, hold onto your wallets. President Obama, Congress and the Kentucky Legislature are going to cut our taxes until we can’t afford to live.
By Leland Conway
Uh-oh, the ideological left is bragging about President Obama’s big “middle class” tax cut that has just taken effect. Specifically, they are touting what they think it will do for Kentucky. One left leaning website made the optimistic claim that the thirteen additional dollars per week we’ll start seeing in our paychecks will put $800 million dollars back into Kentucky’s economy this year.
On its surface, the potential for an $800 million dollar economic boon sounds like a big deal, until you actually do the math.
First, the legislature in Frankfort just raised cigarette and alcohol taxes. The talking heads parroted the numbers given to them by politicians bragging that it will raise an additional $180 million in tax revenue. So we can cut that optimistic cash infusion from $800 million down to $620 million.
Then, the legislature in Frankfort raised the gas tax. They will tell you that this was not a tax increase, that they merely “froze” the rate at its current level. Don’t buy it. According to Kentucky law, the gas tax was supposed to be a percentage fixed to the wholesale price. Now that gas prices have dropped, they changed the law to their advantage. When prices go back up, and President Obama promises that they will, they’ll just “unfreeze” it again and continue to reap the benefits. Legislators boasted that this shenanigan would bring in an additional $120 million dollars in revenue. Now we can lower our tax cut projection to $500 million.
Next, the federal government is seriously considering cap and trade legislation to wage war against mythical global warming. The U.S. Department of Energy’s own estimates put the lower end cost of this dangerous legislation to each family at $700 additional dollars per year. (In reality, the higher energy costs and other charges will actually cost the average American family upwards of $3100 additional dollars per year.) Using the same whacked out math formula that the aforementioned liberal website used to arrive at the $800 million dollar cash infusion, we can now assume a cost to the commonwealth of an additional $840 million if cap and trade legislation passes. That makes the “middle class” tax cut now worth negative $340 million to Kentuckians.
Ouch.
Don’t blame me; I’m simply using their own math formula and government estimates – which are both overly optimistic. But I’m not done yet. As TV Salesman Billy Mays would say “But wait, there’s more!”
What they are claiming is a tax cut, is actually not a tax cut at all. It’s a tax credit. There is a big difference. A tax cut gives us some of our money back – end of story. This tax credit is actually considered by the government to be taxable income next year for some people. So after they’ve drained our pockets and given us a measly $13 per week, they’ll tax it back. Wow…a tax on a tax cut. Can this get any better?
Using their math formula again, that’s another $80 million dollar hit. Suddenly, Obama’s economic policies which some are claiming will give Kentuckians back $800 million dollars of their own hard earned money, has become a net $420 million dollar loss. Wow.
What started out as bragging about a tax cut becomes a complete charade when you take into account the real effect of Obamanomics, especially here in Kentucky, where we stand to be hit hardest by Obama’s anti-coal rhetoric and coinciding soaring energy costs. Bottom line folks, hold onto your wallets. President Obama, Congress and the Kentucky Legislature are going to cut our taxes until we can’t afford to live.
Tea Party revolution won't be televised
If you can't get the mainstream media to cover your political movement, you just might have to do the job yourself.
Click here to see one outstanding example.
There are more Tea Parties coming. See here and here. Please help spread the word!
Click here to see one outstanding example.
There are more Tea Parties coming. See here and here. Please help spread the word!
Saturday, April 04, 2009
Gotta be kidding alert
As hard as it is to believe, some people think President Barack Obama isn't far enough to the left.
Friday, April 03, 2009
Congressman Mike Pence
U.S. Rep. Mike Pence (R-Indiana) said Rep. Brett Guthrie -- who introduced him -- is the first freshman congressman to chair a subcommittee in the House since Richard Nixon.
Pence thanked Bunning for standing up to the bailouts.
"I'm encouraged. I believe we are on the verge of a great American awakening."
"We walked away from our principles and the American people walked away from us."
"We need to be willing to fight for freedom and free markets."
He got a big applause when he said not one Republican voted for Obama's budget.
"We lost the vote, but I think we won the argument."
"We can't ask hard working families who played by the rules and paid their mortgages to bailout the irresponsible ones."
"The American people don't want to know 'what's in it for me,' they want to know what's in it for America."
Pence talked about a man who had lost his job but came to thank Pence the next day for voting against the banking bailout. He quoted the man as saying "I can get another job, but I can't get another country."
"This administration is poised to take away the rights of health care workers who oppose abortions."
"We've got to recognize that our current crisis is more than economic and financial. It's a moral crisis."
"If the foundations of personal responsibility fail, how can our nation stand?"
"The good and great people of this nation will rally to our cause."
Rousing speech. Very well recieved.
Pence thanked Bunning for standing up to the bailouts.
"I'm encouraged. I believe we are on the verge of a great American awakening."
"We walked away from our principles and the American people walked away from us."
"We need to be willing to fight for freedom and free markets."
He got a big applause when he said not one Republican voted for Obama's budget.
"We lost the vote, but I think we won the argument."
"We can't ask hard working families who played by the rules and paid their mortgages to bailout the irresponsible ones."
"The American people don't want to know 'what's in it for me,' they want to know what's in it for America."
Pence talked about a man who had lost his job but came to thank Pence the next day for voting against the banking bailout. He quoted the man as saying "I can get another job, but I can't get another country."
"This administration is poised to take away the rights of health care workers who oppose abortions."
"We've got to recognize that our current crisis is more than economic and financial. It's a moral crisis."
"If the foundations of personal responsibility fail, how can our nation stand?"
"The good and great people of this nation will rally to our cause."
Rousing speech. Very well recieved.
Trey Grayson speaks
Secretary of State Trey Grayson began his speech by thanking Senator Jim Bunning, calling him a mentor and friend, and wishing him well in his 2010 race.
Jim Bunning speaks
Sen. Jim Bunning said "Believe me, the bailout plans are not helping the economy get back on track. They are not."
"It's a mess and the new Secretary of the Treasury is making it a bigger mess. And the Chairman of the Federal Reserve is out of control."
Bunning is giving an economics lecture like he did in Richmond and the audience is hanging on every word. (I'm really not exaggerating.)
Bunning got applause while explaining that the Obama Spendathon is not going to help.
Bunning explained that the Obama cap and trade tax on energy will increase costs for everyone.
"You all know me pretty well and how I vote in the U.S. Senate. I'm not anyone's puppet. I'm my own man."
(Pretty big applause here.)
"I am running for a third term in the United States Senate. I know it will be a battle but I am ready for the fight of my life. I vow to you I will do my darndest to represent you in the manner you deserve to be represented and I will do my darndest to kick Danny Mongiardo's butt."
Great speech. Wrong butt.
"It's a mess and the new Secretary of the Treasury is making it a bigger mess. And the Chairman of the Federal Reserve is out of control."
Bunning is giving an economics lecture like he did in Richmond and the audience is hanging on every word. (I'm really not exaggerating.)
Bunning got applause while explaining that the Obama Spendathon is not going to help.
Bunning explained that the Obama cap and trade tax on energy will increase costs for everyone.
"You all know me pretty well and how I vote in the U.S. Senate. I'm not anyone's puppet. I'm my own man."
(Pretty big applause here.)
"I am running for a third term in the United States Senate. I know it will be a battle but I am ready for the fight of my life. I vow to you I will do my darndest to represent you in the manner you deserve to be represented and I will do my darndest to kick Danny Mongiardo's butt."
Great speech. Wrong butt.
David Williams speaks
Senate President David Williams started out speaking about the education initiatives that have come out of the Senate the last few years. Got wide applause when he mentioned getting rid of the bogus CATS program.
Williams said he understands that a lot of people are unhappy with the Senate's actions during the last budget. Then he ran off the same list of tax cuts over the last few years that he has talked about in other venues. Nice tactic, but doesn't really help much since we have continued spending well beyond our means.
He's also using the same line about being on the campaign bus next year for the U.S. Senate race but not knowing in what capacity he will be on the bus, an obvious plug for his rumored primary challenge to Sen. Bunning.
Williams got polite applause from the audience when he finished speaking.
Williams said he understands that a lot of people are unhappy with the Senate's actions during the last budget. Then he ran off the same list of tax cuts over the last few years that he has talked about in other venues. Nice tactic, but doesn't really help much since we have continued spending well beyond our means.
He's also using the same line about being on the campaign bus next year for the U.S. Senate race but not knowing in what capacity he will be on the bus, an obvious plug for his rumored primary challenge to Sen. Bunning.
Williams got polite applause from the audience when he finished speaking.
Innes takes on the establishment and wins
The Bluegrass Institute's Richard Innes has been one of the primary drivers behind starting to clear the deadwood out of our education bureaucracy in Kentucky.
His latest posts (here and here) are definitely worth checking out if you care about improving Kentucky's public schools.
His latest posts (here and here) are definitely worth checking out if you care about improving Kentucky's public schools.
Jefferson Co. Lincoln Dinner
I'm in Louisville for the GOP Lincoln Dinner. Should be interesting. Stay tuned for updates.
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Sen. Mitch McConnell sent the same stupid letter he has sent to every other Lincoln Dinner I've been to this year congratulating Kentucky Republicans for keeping taxes low in Frankfort. It's way past time to update your letter, Senator.
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Sen. Mitch McConnell sent the same stupid letter he has sent to every other Lincoln Dinner I've been to this year congratulating Kentucky Republicans for keeping taxes low in Frankfort. It's way past time to update your letter, Senator.
Thursday, April 02, 2009
As Obama spends, we brew tea
I will be on the Kruser Radio Show (WVLK 590 AM) Friday at 12:30 talking about the upcoming Bluegrass Tax Liberation Day in Lexington and the April 11 Tea Party in Richmond.
Also trying to get something going in Frankfort, Bowling Green, Elizabethtown, and in Eastern Kentucky.
This is in addition to the various Tax Day Tea Parties on April 15.
Also trying to get something going in Frankfort, Bowling Green, Elizabethtown, and in Eastern Kentucky.
This is in addition to the various Tax Day Tea Parties on April 15.
Another federal investigation for Jim Newberry
Lexington Mayor Jim Newberry gets pretty squeamish when someone tries to ask him about the waste, fraud, and abuse going on at the Fayette County Detention Center.
Looks like he has another one creeping and crawling his way.
Jail officials have been notified of an Internal Revenue Service probe into the facility related to illegal inmate labor practices. Newberry continues to have no comment.
Lexington jail Director Ron Bishop keeps tightening his inner circle for closed door meetings, but he still hasn't found my best source.
Now they care about money
The Lexington Herald Leader sat on their hands while Kentucky governments spent us to the brink (here and here, just for starters), but when the self-sufficient and profitable University of Kentucky Athletic Department spends a few bucks to get the best available coach in the nation, they run an online poll like this:
It bears repeating that John Calipari isn't being paid with taxpayer dollars. Some of our bureaucrats and politicians who are paid far less waste much more.
Incidentally, a Yahoo.com online poll suggests very strongly that a national audience gives the Calipari hire a thumbs up. The Herald Leader's great ideas like making government bigger and diminishing Kentucky's business competitiveness can't begin to compare to this kind of return on investment.
Wednesday, April 01, 2009
Sign the petition
Free trade makes people freer, wealthier, and promotes peace.
Great essay and free trade petition right here. Check it out and sign it!
Great essay and free trade petition right here. Check it out and sign it!
Thanks a lot, Ben and John!
Remember back in January when Reps. Ben Chandler and John Yarmuth voted to expand SCHIP by raising the federal cigarette tax?
We don't have any idea yet how much the government expansion will cost us, but we have an idea about the damage our two guys will do to Kentucky's state budget.
It is April Fools, but this very unfunny joke is on all the rest of us.
We don't have any idea yet how much the government expansion will cost us, but we have an idea about the damage our two guys will do to Kentucky's state budget.
It is April Fools, but this very unfunny joke is on all the rest of us.
Another wild homeschool story
A family from Germany is seeking political asylum in Tennessee so they can homeschool their children, a practice that's been illegal in their home country since Hitler made it so in 1937.
They might have come to Kentucky for our still-substantial homeschooling freedoms. But our political, tax, and fiscal situations make us less stable than our neighbors to the south.
Thanks to NightWriter for passing this along.
Tuesday, March 31, 2009
Like compromising with a grizzly bear
Former DNC Chairman Howard Dean's political organization is trying to sneak socialized medicine through in America by offering to allow American "the freedom to choose" between their private plan and a government plan like Medicare.
Don't take the bait. This will look great until the expanded Medicare program figures out that covering the only sickest people is too expensive. When the government program gets a politically unstoppable constituency built up, they will come after everyone else.
Don't take the bait. This will look great until the expanded Medicare program figures out that covering the only sickest people is too expensive. When the government program gets a politically unstoppable constituency built up, they will come after everyone else.
Obamanation pays its taxes
The Tax Foundation has out a new report showing that, if you count the projected budget deficit, Americans will spend more time working to pay taxes than ever before.
Tax Freedom Day is May 29.
By the way, Tax Freedom Day without the deficit is April 13. This is earlier than last year because incomes -- and tax receipts -- are down. That does us no good, of course, because spending keeps going up.
Kentucky's Tax Freedom Day is this Friday, April 3. It's also earlier than last year. It also doesn't help anything.
Lowering dependency on government isn't on the agenda, but that would help a lot.
Tax Freedom Day is May 29.
By the way, Tax Freedom Day without the deficit is April 13. This is earlier than last year because incomes -- and tax receipts -- are down. That does us no good, of course, because spending keeps going up.
Kentucky's Tax Freedom Day is this Friday, April 3. It's also earlier than last year. It also doesn't help anything.
Lowering dependency on government isn't on the agenda, but that would help a lot.
Picking two points and hammering them home
The Kentucky Club for Growth's Andy Hightower has a great way of putting things:
Andy jumps all over both of them right here.
"It's the most irresponsible thing our leadership regularly practices, and it's apparently killing people."He's talking about, of course, the $30 billion public employee benefits disaster in Frankfort. There are really two points that matter in this discussion: that benefits are too high for government employees and that even that would be okay if we had properly funded them for the last few decades.
Andy jumps all over both of them right here.
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