Tax the rich, pay for 1 percent of budget

The tax debate rages on, with the more liberal Democrats in Washington insisting on raising taxes for the rich (less liberal Democrats say they’re open to at least a temporary extension of the current tax rates for all). After four years of jacking up federal spending, congressional Democrats and President Obama now want you to believe that they’ve become fiscal hawks because they want to raise tax rates on 2 percent of Americans.

To which The Economist magazine says, hooey:

The irony in this drama is that the money at stake is, in the larger scheme, trivial. Raising taxes on the top 2% of households, as Mr Obama proposes, would bring in $34 billion next year: enough to cover nine days’ worth of the deficit. Indeed, the problem with the tax debate is not that Democrats and Republicans disagree, but that they mostly agree. Democrats think 98% of Americans should not pay higher taxes; the Republicans say 100% should not.

In a budget of $3.5 trillion, $34 billion comes out to a little less than 1 percent. Heck, it’s only a fraction of the annual interest payment on our national debt, and wouldn’t even cover the budget of eight separate federal departments: Defense, Health and Human Services, Transportation, Veterans Affairs, State, Housing and Urban Development, Education and Homeland Security.

The big money is in a middle-class tax hike, for the simple reason that — contrary to what Democrats want you to believe — the middle class receives about three-quarters of the savings from the Bush tax cuts.

Cutting the deficit will also take more than the Republican proposal to return non-security spending to 2008 levels. The impact of that plan would be larger than “taxing the rich” and might inspire some economic confidence rather than sapping it, but those cuts alone would still be woefully inadequate. The broader plan they’re expected to roll out Thursday had better be more impressive than that.

The deficit will shrink to some degree as the economy recovers and more people get back to working and paying taxes. As former Congressman J.C. Watts has said, “We don’t need more taxes, we need more taxpayers!”

To get the rest of the way there, “taxing the rich” won’t come close to sufficing. If you favor tax hikes to close the budget gap, you better be prepared for everyone’s taxes to rise.

Don’t believe anyone who tells you otherwise.

199 comments Add your comment

barking frog

September 21st, 2010
8:37 pm

I guess it’s the ‘fair’ thing that is causing such a problem
with the nominal tax increase for the wealthy. If the tax
cuts expire that problem will be solved. Anyone check
the Obama tax cuts that were included in the stimulus?

USMC Dawg

September 21st, 2010
8:37 pm

Linda,

Thank you for the kind words, and I was going to compliment you for your clarity and articulation on matters surrounding the Housing crisis…(and in general).

I like reading your comments…

barking frog

September 21st, 2010
8:39 pm

Iraq had WMD’s but they were disguised as airliners
and eluded detection.

khc

September 21st, 2010
8:44 pm

appreciate your service, but i was drafted in 69 and so i had a glimpse of what you have seen….while our military efforts are valiant they can be misdirected…..so i guess you are re upping for all the atrocities in africa and elsewhere….sorry can’t join you as age has relegated me to the sidelines ….have not seen a rush to the service by those on the right that likely share your views

USMC Dawg

September 21st, 2010
8:46 pm

Actually md,

There is a story that was not verified through the media that the Russian Federal Security Service (FSB), the new name for the KGB, rushed to get the WMD’s that EVERYONE saw via satellite out of Iraq days before the initial invasion.

And further more, the FSB, is on record of helping Saddam Hussein usurp the UN’s blockade sell Billions of dollar$ of oil behind the backs of the UN.

Linda

September 21st, 2010
8:47 pm

Old Man @ 7:39, With all due respect, you are one of the most misinformed people I have encountered on a blog, ever. There is absolutely nothing you said that has any merit with regards to the housing dilemma. You did not even bother to visit the web sites that were offered to you above before you opened your mouth.
Without revealing my personal info, I can state that I have been in the “business” for decades. I watched the most successful, strictest residential real estate lending practice morph into chaos. It started in the ’90s & Clinton BRAGGED about his adm.’s participation in his ‘02 autobiography. You should educate yourself with the info available on the internet.

fair and imbalanced

September 21st, 2010
8:48 pm

Kyle,

When you signed the Republican cult oath, was it witnessed?

khc

September 21st, 2010
8:51 pm

linda, think you are wrong. it’s past my bedtime, but there are many stories out there that suggest fannie and freddy came to the party late…..the repubs were in charge from 2001 on , why didn’t they but the brakes on….one answer ……i know folks in real estate and they will acknowledge they knew we were heading for a wreck, yet were happy to collect the commissions……night all

USMC Dawg

September 21st, 2010
8:52 pm

Yeah barking frog… it is all a Video Game to you, I guess.

Go have another bong hit and hot pocket. I’ll hit “reset” for you.

USMC Dawg

September 21st, 2010
8:56 pm

khc….

“hit the brakes”?????
Did you not see my post above with a link that documents that the Republicans and BUSH tried to hit the brakes, but the usual suspects would didn’t want it… Barney Frank, Maxine Waters, that nut from GA-Cynthia McKinney, Congressional BLACK caucus, Congressional HISPANIC caucus… What are you talking about?
I was and am now in the industry. I saw it first hand.

fair and imbalanced

September 21st, 2010
8:56 pm

Linda:

So its Clinton’s fault, but we shouldn’t blame Bush for anything because that was almost 2 years ago! You are an idiot.

khc

September 21st, 2010
9:05 pm

last post dawg,

so bush had both chambers and could not beat barney or maxine……they pushed the dems into supporting iraq, reigning in freddie and fannie was tougher? you’re nuts…..something does not compute…..by the way, how many questionable loans did you pass on to the taxpayers…..

USMC Dawg

September 21st, 2010
9:05 pm

fair and imbalanced

I did not see that Linda blamed only Clinton, but he, or his policies, also contributed to this mess.

What about the likes of Maxine Waters, Barney Frank, and Cynthia McKinney? I guess your intellectual dishonesty won’t let you address them.

I guess you are in the “HATE GEORGE BUSH” crowd who doesn’t like “hate speech”.

You certainly do sound imbalanced…

Linda

September 21st, 2010
9:06 pm

khc @ 8:51, Then how do you explain the statements in the 2 websites posted by Usmc Dawg @ 6:30 or mine at 6:48? Click on them & revisit history.

Old Man

September 21st, 2010
9:08 pm

Enter your comments here

USMC Dawg

September 21st, 2010
9:08 pm

khc,

Hit the rack.

We obviously disagree.

Have a good night.

I am glad that we are in a country where we can disagree and then go to sleep. God speed.

USMC Dawg

September 21st, 2010
9:09 pm

Old Man

Did you get into the bottle? “Enter your comments here”

I am just kidding

Linda

September 21st, 2010
9:29 pm

fair & imbalanced @ 8:56, I have been on this blog for hours & have been respectful & civil to everyone with whom I have engaged. I have backed up my claims with websites. You are a liar by accusing me of blaming Clinton alone for the world-wide economic crisis. Can you read & comprehend text? Can you click on websites? Continuing to blame Bush for every malady that has furthered our economic recession is not only disingenuous but destructive to solving our crisis & moving forward. Calling me an idiot displays just how desperate liberals like you become when they cannot offer intelligent counter arguments & are so small & so immature that they resort to childish renditions of bullying. You will be in my prayers tonight.

USMC Dawg

September 21st, 2010
9:36 pm

Amen Linda,

Very well said.

Old Man

September 21st, 2010
9:49 pm

Linda, all I need to do is listen to 95.5 FM or 750 AM or any other of its affiliates, 24/7, coast to coast to have an”informed’ opinion exactly like your recitation of republican/fox/rightwing talking points. They say the same thing over and over just like the other stations play the same tired old crappy songs over and over. I’m not sure which stations repeat themselves more!

But I don’t live in fantasy land. If you’re so successful, tell us what your business is. BTW, consulting, freelance, sales, MLM, “my own small business,” and independent contractor, among others are just buzzwords for “unemployed.” I don’t want to know to compete with you, I want to know what successful business would allow me to blog on the AJC all day.

I don’t need another right-wing opinion piece to “prove” that Barney Frank created the housing crisis. I have worked many years for a bank that underwrites loans all day every day and has for many decades. Fannie and Freddie lend the funds for a minority of home loans. Most of the mortgage investors are private (at least through my bank, which is really large). Neither you nor I know where the funds originate and we are not allowed to know pursuant to federal law that predates Bush 1.

And in my observation, a small minority of Fannie and Freddie loans have defaulted. You can google fannie/freddie myth for citations to both public and private records to show this. But a person like you would believe Sean Hannity before believing a non-partisan Ivy League PhD with no commercial interest in the matter.

As for Hillary & Kerry voting for Iraq, neither was elected president either. I’m not loyal to a political party, only the US, unlike you people who put the republican right wing ahead of your country.

And khc, I don’t mean to be tough on our vets, but it takes far more tax from my pocket than any other entitlement program the right-wing bashes day in and day out (like social security and medicare). It’s the same logic the right-wing uses about welfare mother’s, crack babies, and silly jingoism like “personal responsibility.”

Now, name a right-wing talker or republican who actually served! John Kerry got purple hearts and the right wing bashed him for it, wearing silly purple bandaids on their faces at the RNC. Here’s a photo from this proud display of American patriotism, probably a picture of Linda:
http://www.balloon-juice.com/2008/12/15/dyslexics-of-the-world-untie/

Linda

September 21st, 2010
9:49 pm

USMC Dawg @ 9:36, I LOVE those capital letters! The corp deserves to be capitalized in every way! Stand out!
Thank you for taking my back tonight. You are so special! My husband of 34 yrs. will be appreciative & will get a few laughs tomorrow when he reads these posts.

barking frog

September 21st, 2010
9:50 pm

USMC Dawg 8:52 What Hit the world trade center twin
towers? weapons of minor destruction?

USMC Dawg

September 21st, 2010
10:03 pm

Thanks Linda, It was actually VERY easy to take your back tonight.
Your comments are intellectually honest and articulate.

@”barfing frog”
Take it easy on that bong of yours and get off of the junk food diet of Hot Pockets and Pogey bait.
I am for legalizing drugs, but that does not mean that I advocate their comsumption.

“Hey Dude, where’s my car?”

barking frog

September 21st, 2010
10:07 pm

USMC Dawg 10:03 Good answer to my 9:50.

barking frog

September 21st, 2010
10:09 pm

USMC Dawg, What does Dawg stand for?

USMC Dawg

September 21st, 2010
10:09 pm

I thought you would like that.

barking frog

September 21st, 2010
10:14 pm

USMC Dawg 10:03 What do you expect to do
with legalized drugs? Wear them?

USMC Dawg

September 21st, 2010
10:22 pm

No, just take the control out of the hands of organized (and unorganized) crime.

Get those Balck men out of jail that are incarcerated for selling or smoking a nickel bag.

Also, tax the heck out of them (the drugs). But the main issue is the crime.

If you want to “smoke drugs” (as my Drill Instructor used to say), then you are going to smoke pot regardless if it is legal or illegal. Let’s atleast take the crime out of it and make money for the education and aftercare.

But let’s zero out the crime like we did by ending “Prohibition”

barking frog

September 21st, 2010
10:28 pm

USMC Dawg 10:22 If you are thinking of marijuana
only, your plan might work. Other drugs might create
consequences much worse than ‘crime’.

Linda

September 21st, 2010
10:35 pm

Old Man @ 9:49, Lord, help me if my primary source of information in 2010 was from the radio.
I didn’t say I was successful.
Maybe I work for the SEC & spend my entire day blogging rather than watching porn, which is a step above my supposedly co-workers. Maybe I work for the zoo & blog while the animals are asleep, which explains why the snake got loose. Maybe I work for the EPA & can’t wait to faze out these 25 cent incandescent light bulbs & replace them with $5 bulbs full of mercury that can’t be placed in the dumps. Maybe I’m the avowed Communist Van Jones that Obama appointed as the Green Czar.
Maybe I’m retired & can spend my time any way I want.
My situation is private & none of your business.
If you work for a bank, then you must agree that:
* banks never specialized in long-term mortgage loans
* savings & loans have not specialized in mortgage loans since the ’80s
Since you work for a bank, you probably don’t know that:
* mortgage companies specialize in mortgage loans
* mortgage companies have NO money to lend: no deposits
* mortgage companies sell their loans on the secondary market
* almost all mortgages were written according to Fannie Mae guidelines, whether Fannie Mae bought them or not
I reiterate what I said earlier: You are the most misinformed person I have ever run across on any blog, ever. Do you know how much money the fed. govt. has given to Fannie & Freddie? Do you understand that they were quasi-government agencies & are now in receivership because of management that cooked the books & bad loans? Do you understand that they are again out of money? Do you understand that they guarantee almost 90% of the new mortgage loans being made in the US today? Do you understand that the American taxpayers are on the hook for trillions (yes, I said trillions) of dollars of loans that they are holding?
I don’t have the time to educate you. You need to research what you are talking about.

USMC Dawg

September 21st, 2010
10:42 pm

barking frog:

What consequences do you think would come about?

Sure, I know it sounds delusional, but think about it.

If someone wants to do”fill in the blank drug” now, what is stopping them?

If you wanted to do some coke, you would do some coke. Is there anything stopping that now.

And think about what happened with Prohibition. Once they legalized alcohol, the crime VANISHED into thin air.

What do you think?

USMC Dawg

September 21st, 2010
10:50 pm

Linda,

Do you have any sisters? Just kidding.

Old Man, I offer you my shoulder to cry on if you need it, hey no funny stuff, okay.

Linda, I give you the score of 10 on that one.

Bravo!

barking frog

September 21st, 2010
10:52 pm

USMC Dawg 10:42 The main thing that is stopping a lot
of drug use is illegality. Legal hard drugs would
escalate the use drastically and the resulting
damage to society of increased medical costs and
crime to obtain the drug cost would be hard to
absorb. I believe a person has the right to do with
their body what they will and a totally free
society is desirable but it would take a toll
I don’t think we would want to pay.

USMC Dawg

September 21st, 2010
11:02 pm

barking frog,

I disagree with your belief that people are not using drugs because of illegality.
Actually statistics show that people ARE using HARD drugs now eventhough they are illegal.
Also, when Prohibition of Alcohol ended, a weird thing happened. Consumption DECREASED.
I personally think the same situation would occur with drugs.
If you travel to Southeast Asia, you will periodically see the Opium smoker on the sidewalk.
They are few in number because when the mother with child in tow walk past the Opium addict on the sidewalk they say “see, that is the consequence of smoking Opium”. They don’t need laws.

paleo-neo-Carlinst

September 22nd, 2010
7:29 am

got to the grown-up table late (was reprimanding the kids on CT’s blog). no comment on the politics of raising taxes or budget deficits, but I believe the term “taking one for the team” is a sports metaphor. for example, if a team is in need of baserunners and a batter allows himself to be hit by a pitch, he “takes one for the team” (endure the pain of a fastball in the ribs). it is about sacrifice, not compromising one’s ideals or values. if the wonderful 2% (”rich”) truly care about America it will “take one for the team”. I also agree that the DoD needs to “take one for the team” and the Congress (eschew pork) needs to “take one for the team” but does anyone think these two beasts will “sacrifice” for the greater good. let’s face it folks; $250,000.00 year is the new middle class. the old middle class is now the working poor or below the Mendoza/poverty line (another baseball metaphor), and as I said, the beast needs to be fed so it just looks to the next level on the food chain. and as I noted on CT’s blog, we are not talking about “new” taxes. we are talking about allowing tax cuts to expire. whether they produce revenue or not, the Bush tax cuts failed to curtail spending, and the deficit needs to be dealt with.

Guy Incognito

September 22nd, 2010
7:29 am

In case anyone is still baffled why Milton Co must be allowed to leave FuCo.

“Fulton County: Four workers stole $183,000!!!!!!!!!!!!!!!!!!!!!
County says employees used credit card, and other means to bilk (North Fulton) taxpayers.”

DEWSTARPATH

September 22nd, 2010
8:15 am

barking frog – September 21st, 2010
8:39 pm

“Iraq had WMD’s but they were disguised as airliners
and eluded detection.”

– (1) Fifteen of the nineteen hijackers were from
Saudi Arabia – not Iraq. No connection in terms of
nationality were ever uncovered (Saddam did offer
compensation to the families of the hijackers, though).

– (2) All of the planes were tracked by ATC towers
in the Northeast, and even had voice communication
with the cockpits (even after the cockpit doors were
breached).

– (3) Passenger planes are not typically used as
“weapons”. A more accurate description, IMO, would be
“improvised explosive devices (IED’s)”.

carlosgvv

September 22nd, 2010
8:20 am

What if we just had a national sales tax and did away with income taxes?
Would that be fair?

landry

September 22nd, 2010
8:46 am

How very Christian of the rich to throw a tantrum over 36% vs. 39 %, while the poor suffer.

Jefferson

September 22nd, 2010
9:05 am

Its going to happen, plan ahead.

jm

September 22nd, 2010
9:23 am

As I asked on Jay Bookman’s blog:

Three questions for those who aren’t opposed to raising taxes, or are just fiscally liberal:

1. What tax rate is too high a tax rate for the top income bracket? Is there one?
2. Since taxation is necessary to operate the government, but taxation is fundamentally the confiscation of wealth of one sort or another, what amount of government as a % of GDP is enough or too big? Is government ever too big?
3. Since there isn’t any “social security fund” to pay future retirees, demonstrating that the government fundamentally doesn’t have the ability to “save”, would you support a gradual transition over decades to “mandatory savings in personal accounts” with high regulations (to protect workers / savers / etc) so that your savings are yours, that cannot be taken by the government and spent, and that you can pass on to your children if you don’t need them for whatever reason?

Just wondering what those opposed to fiscal conservatism think about this,. Or do they think about this?

Jefferson

September 22nd, 2010
10:48 am

jm,

I don’t make the rules and rates have been much higher back in the 20’s, 30’s.

1. 50%
2. It is not a confiscation, it is an obligation. The more you have, the more you have to lose. Gov’t is to provide services and protect your safety, property and freedoms. But to answer your question – I haven’t thought seriously about such a ratio.
3.The numbers exist in the black, to stay out of the red use the Reagan approach and raise rates on younger workers, blow the ceiling away for earnings. This is not “your” money, it is a social program to help the american society.

Revenues have to increase if we are to pay the debts, I thought fiscal conservatives pay their debts and obligations. The people with the most always cry the loudest.

MoneyTalks

September 22nd, 2010
10:48 am

“Don’t believe anyone who tells you otherwise”.

Don’t worry Kyle I won’t, i’ll take your word for it.

Peter

September 22nd, 2010
11:41 am

Kyle when you finish kiss @ssing to the rich…..why don’t you write about the WASTE we have in the jail system……

Write about the Jerk who was to be put to death for killing in cold blood over a robbery, but decided to try to take things into his own hands, and tried to commit suicide jail.

Now he gets a stay of execution to see if he is mentally fit to die ?

What a waste of Taxpayers money…… Grant him his wish……

Let him kill himself, and save us some money !

When are Republican’s going to look at the real problems ?

jgo

September 22nd, 2010
3:24 pm

Fair and ethical would be if no one were extorted, if the local, state, and federal governments had to beg for donations. A reasonable compromise might be if government extortions amounted to no more than 10% of earners’ incomes (not 11% per capita as it is now) or retail purchases. When the Fed was created and income extortion imposed federally (some states had income extortion earlier), earnest denials were made in congress that the top bracket earners would ever face a rate as high as 9%.

What has changed as far as federal debt is that the over-spending has gone up and up and up and up. In previous times, after a war, spending was restrained and federal debt was paid off within a decade or two (and usually within 5 years), but not since FDR. As a result of the creation of a multitude of unconstitutional programs, foreign adventurism, and pork at undreamed of levels, all bets have been off.

The only effective solution would be to make it impossible for the federal government to float so much debt. By eliminating the Federal Reserve, they would no longer be able to monetize government debt and extort us all by inflation, i.e. by making our earnings worth less. By eliminating income extortion, we could make plain to the federal government that our tolerance for over-spending and over-taxing and their attempts to divide the citizenry along socialist lines is finite. By consistently rejecting congress-critters who vote for pork and unconstitutional programs — a re-election rate of 5% instead of 95% — candidates would eventually get the message.

Oh, and Democratics are not “liberal”; they are leftists (and not very democratic, come to think of it). Some (like Obama, Reid, Sanders, Frank, Waters and Pelosi) are more extremely flaming radical than others.

“Another signifiant development in the art of verbal cleansing has been changing the names used to describe people who espouse government intervention in the economy and society, as most intellectuals tend to do. In the United States, such people changed their own designation more than once during the course of the 20th century. At the beginning of that century, such people calld themselves ‘Progressives’. However, by the 1920s, experience had led American voters to repudiate ‘Progressivism’ and to elect national governments with a very different philosophy throughout that entire decade. When the Great Depression of the 1930s again brought to power people with the government intervention philosophy — many of whom had served in the ‘Progressive’ Woodrow Wilson administration — they now changed their name to ‘liberals’, escaping the connotations of their earlier incarnation, much as people escape financial debts through bankruptcy. The long reign of ‘liberalism’ in the United States — which lasted, with few interruptions, from president Franklin D. Roosevelt’s [FDR's] New Deal in the 1930s through president Lydon B. Johnson’s Great Society of the 1960s — ultimately ended with ‘liberalism’ being so discredited that later presidential and other political candidates with long records of ‘liberalism’ rejected that label or rejected labeling altogether as somehow misleading or unworthy. by the end of the 20th century, many ‘liberals’ began calling themselves ‘progressives’, thus escaping the connotations which ‘liberalism’ had acquired over the years, but which connotations no longer applied [in the minds of many] to the word ‘progressive’, which was from an era too far in the past for most people to associate any experience with that word.” — Thomas Sowell 2010 _Intellectuals & Society_ pp141-142

jgo

September 22nd, 2010
3:51 pm

JDW wrote: “Actually I located a call center in Ireland during that time period. The main drivers were as I said before wages, benefits and skill set. In fact in the case of Ireland those were the factors thare really drove the growth. Tax rates were on the list but not near the top.”

Thank you for acknowledging that it is about cheap, more easily brow-beaten labor with marginally acceptable capabilities. Increased ability to get away with age discrimination is just icing on the cake. That’s the same thing that has driven the off-shoring to India and Red China and Ghana, and worsened both domestic bodyshopping and cross-border bodyshopping.

Phiroz Vandrevala, VP of Tata, confessed the same thing back in 2006, a $20K to $30K under-cutting of US compensation levels. The recent totalization agreement reported in India’s media in July but not reported in the USA, would up the difference to the range $28K to $43K.

So, a bright US citizen STEM worker, after getting through tougher univesity subject-matter than most, and completing more credit-hours than most, finds himself/herself under-cut by $35K. Isn’t that close to the current median income in the USA? That means that he’s likely to be unemployed for long periods, and not paying back student loans, nor, through his contributions to the economy, paying back US tax-victims’ subsidies to state and local education.

That sounds like an extremely short-sighted approach.

jgo

September 22nd, 2010
4:23 pm

JDW wrote: “the only real successful administration of the last 30 years”

There have been no successful administrations, no successful congresses in the last 65 years… maybe not even in the last 100 years.

Of course, “success” depends on one’s goals. I supposed you can say you “succeed” at being a thug (increasing regulations, taxes, concentration of power, violations of individual rights, violations of oaths of office to uphold the US constitution…) if you’re a thug (and regardless of whether call yourself a Democratic or Republican thug). So, many Republican and Democratic admins and congress-critters have “succeeded” at this over the last century.

If you’re an honest, peaceful, generous, charitable person you can “succeed” at generally increasing liberty, and individual rights including respect for life and property, and quality of living. No administration or congress has succeeded at this over the last century.

Ah, but perhaps you’re cherry-picking your decades. Let’s see, 30 years: Reagan, Bush, Clinton, Bush, Obama. Nope, no successes there on an admin by admin basis. Reagan failed to eliminate the unconstitutional departments of educationism and energy, for instance, failed to eliminate the Socialist Insecurity Abomination, Medicare and Medicaid. Congress passed one tax-relief bill, and 13 extortion increases during the Reagan admin. There were no improvements in immigration law over that time, but only a series of worsenings of the flood with repeated amnesties, proliferation and expansion of already excessive visa programs. There has been a partial recovery in the form of moderating crime rates, which had gotten much worse in the 1960s and 1970s. We’ve had a long, shallow economic depression and notably dysfunctional job markets since 1987 (though Lester Thurow wrote in 1980 that unemployment has been elevated back to the late 1920s), and bodyshopping has soared since the early 1980s. We have half as many petroleum refineries as we did in 1982, no new nuclear power plants, and very few coal-fired power plants, though effective scrubbers and other clean coal tech has been deployed since the 1960s. The Saturn was a bust (just as the Cruze promises to be, and what are these slightly insulting over-priced made-in-GA Kia things? Where are our inexpensive air-cars?!).

jgo

September 22nd, 2010
4:57 pm

KW wrote: “in the best-case scenario (which budget projections for future years always are), they will increase spending at the same rate as the too-quick pace we saw during the Bush years.”

I have to agree that during the Bush, Clinton, Bush, Reagan, Carter, Ford, Nixon, LBJ and Kennedy admins, federal spending was both excessive and increasing/accelerating at a too-quick pace. Any non-negative “pace” of increase is “too-quick” once you’ve surpassed reasonable spending levels. But we must remember that all spending bills originate in the House of Representatives, and that there is no obligation for presidents to spend all money appropriated (though there is a dishonest amendment dodge that the senate abuses to originate spending). Presidents also used to regularly veto unconstitutional and exessive spending bills. “Shutting down the government” because the houses have not agreed on appropriations is a GOOD thing and should also happen far more often.

In a positive, moderate scenario, federal spending would decrease by 10% per year for 6 or 8 years until it got within constitutional and reasonable territory, and then hold steady at those dollar amounts.
In the best case scenario, they would cut federal government spending by 40% this year, and 20%-25% the next, then gradually reduce spending by 10%, 5%… until steadying at reasonable levels.

Otherwise, we see government increasing spending by 2% or 5% or 7% or 40% or whatever per year, which, being increased monetized debt, has increased inflation, which they abuse as their pretext to increase spending even faster…

“The [Socialist Insecurity] outlays that they [FDR, et al.] predicted [for] 1980 were $1.3 billion. They missed it by $290 billion.” — Michael Ramirez of the Memphis Commercial Dispatch 1997-01-01 “The News Hour with Jim Lehrer”

“The mere fact that Congress, by the appropriations process, has made available specified sums for the various programs and functions of the government is not a mandate that such funds must be fully expended.” — Franklin Delano Roosevelt (FDR)

“Franklin Roosevelt [FDR] ran & was elected in 1932 on a platform of slashing gov’t spending by 25% & balancing the budget. Roosevelt denounced Hoover for ‘the greatest spending administration in peace times in all our history’. He asked voters ‘very simply to assign to me the task of reducing the annual operating expenses of your national gov’t’.” — David T. Beito 1989 _TaxPayers in Revolt_ pg 163 (quoted in James Dale Davidson & William Rees-Mogg 1994 _The Great Reckoning_ pg 423)

“Back in the 19th century, when the Republican party was considered to be more liberal than the Democratic party, Jews were Republicans… By 1940, 90% of American Jews voted for [FDR].” — Thomas Sowell 1981 _Ethnic America_ pg 95

“I accuse the [Hoover] Administration of being the greatest spending Administration in peace-time in all American history — one which piled bureau on bureau, commission on commission, & has failed to anticipate the dire needs or reduced earning power of the people. Bureaus & bureaucrats have been retained at the expense of the tax payer… We are spending altogether too much money for gov’t services which are neither practical nor necessary. In addition to this, we are attempting too many functions & we need a simplification of what the Federal gov’t is giving to the people.” — Franklin Delano Roosevelt (FDR) 1932 (quoted in Garet Garrett 1953/1992 “The Revolution Was” _The People’s Pottage_ pg 15)

jgo

September 22nd, 2010
5:57 pm

John wrote: “Add to that the [executives] who abuse the H1B Visa program. The program was intended to fill positions that couldn’t be filled with US workers….not to replace US workers with lowered salaried foreign workers.”

What they said was they neeeeded to bring in the “best and brightest”, the “pre-eminent”, the “super-stars”. Of course, before that, they (NSF) much more quietly said that they wanted to depress compensation in the USA for people with PhDs by flooding the job market, and that they knew this would discourage US citizens from getting PhDs but so what… and much more loudly predicted terrrrible talent short-falls with numbers which suspiciously varied.

What they DID, which reveals what they intended, was bring in hundreds of thousands of cheap, easily brow-beaten labor who were not especially bright, not especially well-educated (hundreds without the equivalent of US high school diplomas, thousands without the equivalent of US bachelor’s degree), not especially highly-skilled, and not remotely as well-paid as would be appropriate for anyone considered “best” or “brightest”.

Meanwhile, recruiting within the USA has grown extremely dysfunctional since the hatching of the H-1B as automated resume parsers have been deployed to scan resumes and dump the mangled scraps into data-bases, never to be seen by hiring managers; e-mail addresses, phone numbers, street addresses and contact names are being redacted from job ads; series of phone screenings with trivial pursuit quiz-games aimed at declaring all US applicants “unqualified” (see the Cohen and Grigsby videos as this major law firm teaches the techniques; of course Fragomen et al. another major law firm was also an eager player, and the immigration lawyer association declared that such dishonesty is all just part of the way this game of charades is played)…

They made certain the enabling legislation was crafted in such a way that there were no effective minimum skill, intelligence, knowledge and education standards; no effective requirements to match local market compensation for the education, skills, experience, etc. of the worker; no requirement to “test the market” for presence of able and willing US talent to do the job at local market compensation; and no consideration of the ability to relocate US talent within the USA (so that a firm even a mere 20 miles from one of the country’s best engineering colleges or 400 miles from several of them can still declare that they are unable to find “local” engineers even though there’s actually a plentiful supply).

So, what we got were bozos and terrorists like Faisal Shahzad, facilitated off-shoring, 21% fraud rates in the applications for these visas, and a teeny tiny fraction of a percent who might have actually merited being admitted (only we’ll never know because of all the sand thrown in our faces).

Even the unrestricted “Einstein visa”, the O visa, has been abused to bring in sleazy “actresses” who supposedly possess, ahem, “exceptional talent”.

US Department of Labor’s Strategic Plan for 2006 through 2011, on page 35 states: “H-1B workers may be hired even when a qualified U.S. worker wants the job, and a U.S. worker can be displaced from the job in favor of the foreign worker.”

2000-04-24 Joel Stewart _Immigration Daily_ “Legal Rejection of US Workers”: “even in a depressed economy, employers who favor aliens have an arsenal of legal means to reject all U.S. workers who apply.”

Larry Lebowitz [talking about the PERM process for people who already have H-1B or L-1 or J-1 visas and are applying for a green card]: And our goal is clearly NOT to find a qualified and interested U.S. worker. And, you know, that in a sense that sounds funny, ahh, but it’s what we’re trying to do here. We are complying with the law fully, ahh, but our objective is to get this person a green card, and to get through the labor certification process. So certainly we are not going to try to find a place [at which to advertise the job] where the applicants are going to be the most numerous. We’re going to try to find a place where, again, we’re complying with the law, and hoping, and likely, not to find qualified and interested worker applicants. So that’s the process that we will go through with you from the beginning onward… what 3 options are we going to select [for advertising the job]…
Jan Barton: The employer is obligated to review all of the resumes that are received in response to all of the ads… What we mean by if they’re interested, if they don’t like the salary [perhaps because you've set it a little lower than local market compensation levels], if they don’t like the work location, they’re not interested. Or if they just don’t like the job itself, they’re not interested. Um, those are ways we can disqualify them and get them out of the market, and focus on the ones who might be more qualified. If it gets to the point where they’re, somebody’s looking like they’re very qualified, we ask them to have the manager of that specific position step in and go over the qualifications with them. If necessary schedule an interview, go through the whole process to find a legal basis to [come up with a pretext to] disqualify them for this particular position. In most cases that doesn’t seem to be a problem… you can eliminate them…
Alex C?: That… is another incentive… 30 days of recruiting, 30 days of waiting… to get the thing final… The longer you leave it out there waiting, the more you are exposed to people possibly seeing something from the paper 6 weeks ago and saying, “Wait a minute, I qualify”.