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2/7/2008
Time to get our heads out of the sand. The Bush budget
This reader says you and I have our heads in the sand about President Bush’s proposed budget: I've waited two days for you and your readers to comment on Bush's $3 trillion budget, which includes a $400 billion deficit. This is the Republican's answer to smaller government? This is the Republican's answer to fiscal responsibility? He not only has saddled Americans with a $9 trillion dollar debt, he has the arrogance to not make any attempt to try to balance it before he finally leaves office.
Talk about tax and spend. He spends but gives tax breaks to his corporate and rich buddies. (Exxon again reports record profits.) And you all just sit at his feet, looking adoringly up at him like he's some hero. The interest alone on this debt is the second largest line item on the budget, ahead of defense, and without any additional funding for his damn war.
Time for you and your readers to take your heads out of the sand and see what's going on.
Ok Dave, so let’s talk about the budget. Tons and tons to talk about. And likewise, tons to disagree on. And disagree we will.
(FoxPolitics.net addresses primarily state and local policy and politics, not the weather, not sports, not crime, and typically, not national politics. But, Dave, you asked…)
So first, Exxon. (Oh the stuff that tries men’s souls…) Just for the record (as I’ve written in the past), Exxon Mobil nearly always earns more money than any other company on the Fortune 500. But that’s because it’s the largest company in the world! Their gross profit margin ranks well behind that of financial institutions, pharmaceutical companies and tobacco conglomerates. And measure profit per employee and “big oil” doesn’t come even within fumes of the top of the list.
Now, second, the war. We are in a war to protect the safety and security of this country from those that would threaten our very core beliefs and way of life. Please, let’s not make the war the subject of ongoing comments. I agree, defense spending must not be exempt from serious scrutiny. Of course the war is a huge budget issue, but so too are critical social and economic policy differences. Let’s not make this particular discussion about the war.
Third. The Constitution of the United States of America. 220½ years ago, our forefathers defined what was to be done by government, but more important, what was not to be done by government, and more important still, meant that everything else was to be left to individuals to accomplish for themselves and others. What do you think the government should do for you?
Fourth. Taxes. We simply will not agree on this. Tax filers in the bottom 50% of income pay only 3% of all federal income taxes. Tax filers in the bottom 32% of income pay no federal income tax. Nada. Nix. Zip. How can anyone possibly whine about lowering taxes for low-income taxpayers, when half the nation is paying little or no taxes? And how do those paying no taxes appreciate the cost of adding more and more services and programs paid for by the federal government? Paid for by me! Increase taxes you say? The top 1% of filers pay almost 40% of the nation’s federal income taxes. I ask you, how much higher would you like that to go? How many more health care programs, education fixes, retirement funds, police departments, must I fund for the benefit of my neighbor – and to the detriment of the economy?
We are simply not going to agree.
Fifth. The stimulus package you and your fellow lefties are whining for. (Well, lots of folks, left and right are whining for it.) I’d whine only because it might just help the Republicans in November if the economy isn’t perceived to have tanked. Terrible short term thinking. Forget I said that. Here’s the point. It’s a blatant feel good giveaway and is $148 billion that shouldn’t be in this budget.
Sixth. Medicare and Medicaid spending. Already we’re hearing Washington math about this – that the President’s budget cuts these entitlements. No way. It slows their increase to over 5%, still almost double projected inflation rates.
Seventh. Drunken sailors. President Bush and the Congress (and we constituents, I dare remind you) have spent like drunken sailors the last 7 years. War included or excluded. Mr. Bush absolutely did not present nearly the spending cuts necessary to get this country even headed toward the path of fiscal responsibility. So what if he had? You’d be whining even louder!
The New York Post hits the nail on the head about this deficit business. It certainly didn't take long before Democrats pounced: Here he goes again, turning "record surpluses into record deficits," Senate Majority Leader Harry Reid teased. Senate Budget Chairman Kent Conrad decried "deficit-financed tax cuts tilted to benefit the wealthy."
There's plenty of spending blame to go around, but the proposed monster deficit will let Democrats paint Bush as the reckless one.
The president, they'll claim, is putting the country into hock - just so his wealthy friends can enjoy big tax breaks. [Sounds like what you're saying, Dave.]
That's nonsense, of course. But just watch: It will soon serve as a new rationale for the Dems to push tax hikes.
… The good news: Congress has no intention of enacting Bush's budget.
The bad news: Democrats will likely bloat spending even more.
Now. what will you and the Democrats in Congress do differently (and the Republicans, for that matter, save a cadre of dedicated true fiscal conservatives and constitutionalists) to fix this budget and continue this $14 trillion economic machine that is the U.S. of A.?
COMMENTS
I have an idea. The Congress and the President should follow the Constitution... you know.. that "g*dd*mn piece of paper" that all elected official swear to uphold, protect and defend?
The Constitution is very explicit on what Congress may or may not do. Simply flip your little pocket-Constitution to Article 1 Section 8.
"The Congress shall have Power...
1) To borrow money on the credit of the United States;
2) To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;
3) To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
4) To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
5) To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
6) To establish Post Offices and Post Roads;
7) To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
8) To constitute Tribunals inferior to the supreme Court;
9) To define and punish Piracies and Felonies committed on the high Seas, and Offenses against the Law of Nations;
10) To declare War, grant Letters of Marque and Reprisal, and make Rules concerning Captures on Land and Water;
11) To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two Years;
12) To provide and maintain a Navy;
13) To make Rules for the Government and Regulation of the land and naval Forces;
14) To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrections and repel Invasions;
15) To provide for organizing, arming, and disciplining the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Appointment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;
16) To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) .... And
17) To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.
So:
The Federal Reserve should be abolished since the Constitution explicitly states that legal tender should be coined in gold or silver. The Constitution doesn't say anything about printing money out of thin air.
Let's bring all the troops home. The war was never declared thus the war is 100% unconstitutional and illegal. That will save trillions of dollars in the long run. In order to fight terrorism, Congress should grant letters of marque and reprisal, thus authorizing private US citizens to go out and kill Iraqis on their own dime. Just don't ask ME to pay for it, but if you want to donate to the cause, go right ahead!
Social Security, Medicaid and Medicare are all 100% unconstitutional since nothing about redistribution of wealth is mentioned in the Constitution. That will save trillions of dollars in the long run.
Abolish all the departments that aren't mentioned in the Constitution. Like the Department of Education, Department of Labor, Department of Homeland Security, Environment Protection Agency, Department of Energy, and so on and so forth. That will save hundreds of billions if not trillions of dollars.
Abolish the income tax, and instead enact a CONSTITUTIONAL tax which are apportioned among the states. Repeal the 16th amendment.
And that's just the beginning.
Stephen Flynn (Wed Feb 07 10:50:32 2008)
Jo,
just a bit of a response here regarding Exxon. (I have other comments but don't have the time). Refer to this B-school article which shows how Exxon (and some but not all) oil companies understate their profits. It stands to reason that Exxon's profits rise when the world oil prices rise regardless of Exxon's ability or desire to produce more oil. The profit to sales ratio is artificially understated. The same happened during the oil embargos in the 1970s and the windfall profits tax addressed it. oil companies who do not spend money on new energy sources (especially renewable) should not get tax breaks. The oil companies do get them and in spades. Once the tax breaks are eliminated should there be a windfall profits tax because the oil company wisely invested in oil fields, a non-renewable resource and can ride the world price up? That is a larger question.
dave allen (Thu Feb 07 07:24:18 2008)
I really wish I felt the "War on Terror" was more than a slogan for what's going on in the Middle East. For a country that went to war to rid itself of occupation in the 18th century, we are now the occupiers of the 21st. How that can create friends and influence people is beyond me. How does makng most of the world furious at us improve our security? Are we still looking for the master-mind of 9-11, in *Iraq*? Saddam is dead. I know that an incredible civil war will take place in Iraq if we leave, and I wish I could really believe that by having our sons and daughters being killed and maimed in Iraq we are eliminating more death and destruction in the United States, but what evidence is there that is the case? There's no way to prove that one way or another. And it's hard to not believe that the amount of money being spent in Iraq could not be better spent on other things. Too simple? Maybe.
Jim Perry (Thu Feb 07 07:39:13 2008)
From a disenchanted "self-proclaimed righty":
Drunken Sailors indeed. My party deceived me (Republican President / Republican Congress), and the pork rolled right through Washington. Less government? Yeah - in everybody else's district, but I've got to "take care of my people" (read: buy my re-election with pet projects / funding / programs).
When the possibility of Black Tuesday popped up last month what was the first thing all the investors & money types did? Look to WASHINGTON for help! Lower the prime, Tax Rebates ... GOVERNMENT - PROTECT ME!
Republicans/Democrats, the difference? Better suits.
Jeff Riedl (Thu Feb 07 08:16:21 2008)
WE made a big mistake by not doing what we did with the immigration bill to all of the budgets. Fight for conservative principles.
Bob (Thu Feb 07 08:50:10)
Jo: You hit it right on the head. In my new book due out in a couple months, I devouted considerable space to the same subject dealing the the Oil Companies and their profits, etc. You are completely right.
John Hyland (Thu Feb 07 08:53:18 2008)
I grow tired of all the Paulites & similar screaming about the constitution. The reason is because they are not really about following the constitution but about distorting & contorting the constitution to say their beliefs are not just a good idea (whether they are or not) but constitutional.
First, the claim the constitution declares our money must be based on gold & silver is not there. In Article I, Section 10 it places such a restriction on the States and to argue this also applies to the Federal government also means that the Federal government can not enter into treaties with foreign governments, which is of course absurd.
In fact, I would argue the Fed is definitely constitutional as the Federal Govt is charged with regulating the value of US currency.
As far as the war goes, what happened in 2002? What is the "Joint Resolution to Authorize the Use of United States Armed Forces Against Iraq" sounds like congressional permission to go to war to me.
I detest the income tax as much as anyone, but when I read the constitution lo & behold it is there! Amendment 16 states: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration." I support you in your quest to repeal it, but not to call it unconstitutional. How can the constitution be unconstitutional?
Also, reading the constitution I see the word cabinet once, but no specification what offices the cabinet should consist of. That is, the constitution does not dictate or limit cabinet offices. Hmmm, maybe all cabinet offices are unconstitutional?
Where I am open is on the topics of wealth redistribution.
Marcus Auerlius (Thu Feb 07 09:25:49 2008)
Rather than beat this long dead horse, I would like to submit a bit of cynical, libertarian commentary. (Insomuch as I don't consider Libertarian a dirty word)
The long and the short of it is none of this will ever change as much as we would like to see the Constitution followed even vaguely. Government is the beast that it is because we all have ingrained it as such. As Frank Lasee said at the last HOTV MYL, we ask for more than we are willing to pay for and, as legislators, we are compelled to give it to you. (I'm paraphrasing, hence the lack of quotes.)
To be honest, the news of the $3T budget came along and I didn't even bat an eyelash at it. That's just how disenfranchised I am regarding the whole situation. And I know I'm not the only one that thinks like that.
I know, I know--I'm whining about the system and not proposing any solutions--while technically that makes me about as good as most other Joe and Jane American. Honestly, I don't have any. Not any feasible ones anyway. Massive, borderline revolutionary, system and MIND-SET change will be needed before visible change will occur. But as they say, "The only way to eat an elephant is bite by bite."
Now who wants the first bite...?
Adam Delikowski (Thu Feb 07 10:06:10 2008)
The reason why we have such huge budgets is because we citizens , through our elected representatives, like what we get. Otherwise we'd throw the representatives out. And why such huge deficits? because we like what we get that we don't have to pay for. And sadly to say the spend and not tax was primarily Reagan and Bush II. If we had to actually pay taxes to support the budget you can bet the budget would be smaller. If we actually had to be drafted to maintain the strength of our military you can bet we wouldn't be in Iraq. No dear public, the fault lies not in the stars but ourselves.
dave allen (Fri Feb 08 07:59:55 2008)
Thanks for the great post, Jo, and to the many responders. I agree with some but not all.
But what I have not heard is a mention of the corrupt political system that is driving all of these government (read: political) decisions.
You are all intelligent folks, but what makes you totally ignore that these tax breaks -- and non-breaks and pork spending and subsidies and higher taxes and all of the other things you complain about -- are being driven by the cash that changes hands between the fat cats and the politicians?
Perhaps you wouldn’t like the results a clean political system would bring us, but I’m sick and tired of my government representatives working for me and taking money from them, the fat cats. Maybe you’re one of the fat cats and the rest of us are standing in your way, who knows. But look where the system got Mexico.
Some of you are business owners, and I’m sure that you would not tolerate an employee taking money from vendors on the side and feeding them your corporate assets. Nor would I when I owned my own company.
But that’s exactly what we have in our corrupt political system, and we are facing massive unnecessary taxes as a result. Our whole democracy is at risk while our politicians play us for fools. We/you can’t complain about high taxes and totally ignore the catalyst, the cash flow. Our companies would not survive under this scenario, and neither will our country.
At 70 I don’t think I’ll have to worry much longer, but I worry about my kids and grandkids. Will the inevitable anarchy occur in their lifetime? My advice is to get behind public financing of campaigns, clean up the system, and then fight the battle clean and fair.
See www.WiCleanElections.org for details.
Jack Lohman (Fri Feb 08 12:08:54 2008)
Everyone, watch the online videos, "America: Freedom to Fascism", "Big Sugar", and The Future of Food". You'll see that there is absolutely NO difference between the parties, except their names.
emilymatthews (Fri Feb 08 15:17:09 2008)
Why would there be a difference between the parties, Emily? They are owned by the same special interests... :-)
That aside, where are the videos posted?
Jack Lohman (Fri Feb 08 15:59:09 2008)
Fiscal responsibility should be the goal of both political parties if we are really provide for national security. The spending for Iraq has exceeded the cost of even World War II and we actually won that war.
The funds appropriated for defense have gone to private contractors in the name of support for the troops. When it comes to support for the troops the Bush Administration has repeatedly ignored both the toops and their families.
This entire budget is a trick to redistribute tax dollars to places like China. Because of the financial crisis the budget will create foreign governments can own the national debt. This is by far the biggest threat to national security.
Wake up and smell the coffee and stop the diversion of tax dollars to subsidize large corporations at the expense of US citizens.
If we take the money being speant on the war we could build the reserves of social security and bring affordable health care to our own citizens instead of the Iraqi Oil Cartel.
The budget is a big ruse so the government will be too broke to address the true national priorties of the the citizens.
Jim Flading (Sun Feb 10 16:14:53 2008)
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