Fiscal Crisis Bill Is Full Of Special-Interest Tax Breaks

In another of those, "You have to pass it to know what's in it", last-minute deals Congress passed a bill to prevent the U.S. from going over the "Fiscal Cliff".  The Bill, it was claimed, would spare spare the middle class from tax hikes.

 

The bill was however, loaded special-interest tax breaks!  That's correct.  The Administration added more than 50 'temporary tax breaks worth more than $75 billion.

 

These tax breaks went to Hollywood, Puerto Rican rum makers, alternatibve energy and General Electric., among many others. A sampling foillows:

• Allows motorsport race tracks to more quickly write off improvement costs. (value  $78 million)
• Allows TV and film producers to write off the first $15 million in production costs inside the U.S. (value $248 million)
• Allows for 50 percent tax credit for expenses related to railroad track maintenance through 2013 (valued $331 million
• Allows for increased tax rebates to Puerto Rico and the Virgin Islands from a tax on rum imported into the United States. (vaalue $222 million /10 years) 
• Allows for a credit of up to $2,500 for buying electric-powered vehicles was expanded to include electric-powered motorcycles, at a cost of $7 million.  
• Allows a tax credit for the production of wind, solar and other renewable energy. (value $12.2 billion)
• Allows for a large number of tax credits for research and development,
• Another provision allows exelerated write-off for the costs of expandsion of restaurants and other retailers.

 

Sen. Bob Corker, R-TN voted for the bill and desribed it as a "terrible vote to have to take.  The package is a reminder of why we need tax reform to do away with those loopholes."

 

Sen. John McCain, R -AZ also voted for the bill stated,"It's hard to think of anything that could feed the cynicism of the American people more than larding up must-pass emergency legislation with giveaways to special interests and campaign contributors,"

 

It has been noted that the tax breaks in the package were already in the law, and were merely extended for another year by Tuesday's vote.

 

McCain quipped, "They were just crammed into the bill literally in the middle of the night. The American people deserve better and we have now earned their well deserved disdain about the way we do business."

 

So we increased taxes on the so called rich so we could give to the administrations friends -- And Obams
a wants to up the tax the same group again

 

 

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In Washington, The Goal Is Control Of Private Wealth

By Austin Hill
Are the President and the Congress trying to send our economy in to a recession?

They’re probably not trying to, no. But with the current governing philosophy in Washington, a recession has become an acceptable means to a necessary end. And the intended “end” doesn’t necessarily entail economic growth and prosperity.

That sounds harsh, I know. But think it through with me. Because as the nation’s media has been obsessed about the “fiscal cliff” and whether or not the President and congressional Republicans will work out an agreement to forestall it, insufficient attention has been paid to how the President and congressional Democrats have augmented their agenda in the past couple of weeks. Journalist Ron Scherer was, as far as I can tell, the first to catch on, with a story he published at Yahoo! News and in the Christian Science Monitor.

Sherer noted in a November 30th news story that in the midst of the “fiscal cliff” tax rate negotiations, President Obama had added a little extra talking point to his campaign for higher taxes on “rich” people. While promoting his tax hike plan in Ohio that day, he slipped in a little “oh, and by the way let’s do another $255 billion stimulus package.” Scherer surmised that the President was proposing more stimulus spending as a means of “offsetting” the impact of his own proposed tax hikes.

But what, precisely, would need to be “offset,” if President Obama’s tax hike agenda prevails? The President just completed a successful re-election campaign claiming that raising taxes on “rich people” would be good for the economy, yet it now appears that he wants more stimulus spending as a means of saving our economy from his own economic policies. This would seem to be, at the very least, a tacit admission from the President that raising taxes on individual people – even those awful “rich people” among us – does, indeed cause a slowdown in economic activity, and may very well bring about a recession.

So what if officials in our government chose to pursue neither of these agendas? That is, what if we did not deploy governmental power to confiscate greater proportions of wealth from private individuals (that is, what if the government didn’t raise income taxes), and what if our government didn’t spend more tax dollars to “stimulate” the economy? If the tax hikes were eliminated, then perhaps the need for a stimulating “offset” would be eliminated, as well.

That’s a plausible idea, if the country’s agenda is economic growth and prosperity. But that is not the agenda of President Obama and his party. By taking more money away from “rich”people and by spending more money on “stimulus projects,” the President is able to control more wealth that is currently in possession of private individuals, and then re-distribute that wealth to people whom he believes are deserving of it and spend it on things that are important to him.

Shortly after the President began his new stimulus push, former Democratic National Committee Chairman (and former presidential candidate) Howard Dean made some extraordinary remarks of his own about the economy. In an interview at MSNBC, Dean stated that he wants the across-the-board income tax increases entailed in the “fiscal cliff” scenario, and welcomed the resulting outcome. “Will it cause a problem?” he asked rhetorically. “Yes. There will be a short recession, and it will be painful.” Yet despite this “painful recession” that Dean believes will ensue, he nonetheless expressed exuberance for the higher tax rates and the cuts in military spending that will result as well.

That was an amazing admission. For Dean, it seems that a recession is an acceptable means to the intended end: government control of private wealth. In this scenario, it doesn’t matter so much that working individuals and families often lose jobs, careers, and homes in recessions. Those are unfortunate things, sure, but when the goal is government control of the economy, personal prosperity ceases to be a priority.

If this sounds far too conspiratorial, consider the report last week about the President’s squabble with non-profit charities. In a December 13th news story, the Washington Post reported that the Obama Administration was leveling a threat to the leaders of high-profile charity groups: either publicly support the President’s tax hike plan, or face the possibility that the President will seek to reduce tax deductions for charitable contributions.

We’re talking here about long-standing, reputable groups like the American Red Cross, United Way, the Salvation Army, and World Vision. And yes, if charitable donors couldn’t deduct the amount they donate from their income taxes, they probably wouldn’t donate as much – which would hurt charitable groups. But again, the goal of the Administration is controlling private wealth, and the prosperity of private individuals and organizations is not a priority.

A majority of Americans seem oblivious to the President’s economic control agenda in Washington -either that, or they’re comfortable with it. Multiple polls show the President is regarded as more trustworthy on economic issues than his political opponents in Congress are right now. And pollster Scott Rasmussen of Rasmussen Reports recently found that only 54% of Americans still believe that economic prosperity is more important than economic “fairness” (“fairness” being the promise of politicians who seek to control private wealth and re-distribute it).

Will America return to a pathway of prosperity? Or have we resigned ourselves to the President’s will for our lives?


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Job Creation Nation: America Faces Harsh Realities In 2013

by Austin Hill
The political conventions have passed, the August jobs report is out, and many Americans are said to be “giving up hope.”

So how can we jumpstart our greatest engine of economic growth – the American small business market – and get our economy growing again?

Regardless of which presidential candidate wins this November, in 2013 Americans will have to focus on saving, and expanding, the small business marketplace. The sector of our economy that makes up nearly 60% of the entire American private sector workforce, and creates between 60 and 80% of all new jobs, has been under attack over the past few years by politicians who have created lots of bad laws.

And if Americans are serious about expanding actual employment (rather than merely expanding government welfare and entitlement programs), then we will have to make better choices at the ballot box, and hold our elected leaders responsible for making serious changes. To start, let’s consider consider this harsh reality: the so-called “fiscal cliff” is real, and President Obama’s proposed solution to it is potentially lethal.

Under current federal law, both income tax rates and Social Security tax rates are set to rise dramatically on January 1st of 2013. Along with these tax increases, a dramatic reduction in government services will take hold at the same time.

This confluence of private citizens having more of their money taken away (higher taxes), and a reduction of government services (which means that private citizens will have to fill the gap and spend more of their own money) is expected to trigger a new recession next year. As a means of preventing a “double dip,” both Republicans and Democrats in the Congress have proposed that taxation rates be frozen where they are at, and held steady in 2013.

But President Obama has insisted that taxes should be raised on so-called “rich people” next year, and has refused to do what most economists and many members of his party have said is the one thing that could save us from another downturn.

And with the President polling as well as he is, it seems apparent that millions of Americans are far more excited about his “make the rich pay” rhetoric than they are aware of the consequences of his proposals. Obama supporters may get their wish in November, but it will come at a painful price – a price that all of us will pay.

And here’s another harsh reality: Americans need to get comfortable with other people’s financial successes. Since the early days of his first presidential campaign in 2007, Barack Obama has been pouring fuel on the fires of resentment and envy towards the wealthy. As a political strategy this has worked well for the President, but as government policy this has been bad for all of us.

The President’s tax-hike push is a perfect example, as many of America’s small businesses are set-up under the I.R.S. code as “Sub-chapter S” corporations. These are businesses wherein the company profits are reported to the I.R.S. directly as personal income by the business owners and are subject to personal income tax rates – and many of these business owners are being targeted by President Obama for an income tax-hike.

If the President gets his wish, and the government begins confiscating more money from the owners of Sub-chapter S corporations, by definition this leaves less money in these corporations for hiring and expansion. Thus Americans have a choice to make – do we want to employ our President for another four years so he can satiate the hatred some of us have towards “the rich” and take away more of their money? Or would we like private business owners to have money available to employ more of us? From the way things appear right now, we probably can’t do both.

And here’s harsh reality number three: Americans have to stop Obamacare from wiping-out small businesses. A central feature of this law is the mandate that businesses provide healthcare insurance to their workers. It sounds great – workers will now be “guaranteed” health insurance – but once again, the “make somebody else pay” approach is heaping more weight on the shoulders of small business owners.

Americans must decide how serious they are about job creation – even if it means that some jobs won’t include health benefits. If we honestly want employers to employ more, we must force the Congress and the President to fix this devastating component of Obamacare next year.

And here’s yet another harsh reality: Americans must stop making small businesses a scapegoat on illegal immigration. Roughly two-thirds of Americans want our national borders secured and a coherent immigration policy, yet for over a decade Washington has refused to do the former and has scarcely attempted the latter.

Amid the frustration, businesses have become the target of Americans’ wrath. If business owners would simply quit hiring illegals -so the reasoning goes -the illegals would go away.

Mitt Romney has pledged that, if elected, he will seek to require American employers and workers to register with the federal government’s “e-verify” website, as a means of policing the problem. But this adds even more bureaucratic burdens to small business owners, and ignores our failed immigration policies and un-secured borders.

Do we want politicians who merely tell us what we want to hear? Or do we want leaders in our government who can actually enable businesses to grow? Americans must become more discerning-and face some harsh realities.
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