Republicans Should Capitalize on Obama Budget to Nowhere

Class warfare has become a central theme of the Obama campaign.  In his 2013 budget released earlier this week, President Obama proposed major tax hikes on the wealthiest Americans – those making $200,000 per year or families making over $250,000.  Indeed, the “debt reduction” that the president claims is dependent largely on these tax increases alone. Class warfare and raising taxes on the rich may be beneficial to his political campaign, but it is bad for the economy as it merely redistributes wealth, not create it.  The Republican nominee needs to be committed to capitalism and battle the President’s class warfare, big government, Keynesian economic rhetoric using free-market principles, stressing economic growth, job creation, and wealth creation through lower taxes, less regulation, and smaller government.  Despite what the President claims, his budget does not promote growth and has the potential to be a weak spot that Republicans can capitalize on.

Included in the President’s proposal is around $1.5 trillion in new revenue coming from tax hikes on the wealthy and corporations.  These tax raises take various forms; a 9% raise in capital gains tax rates, the dividends rate jumps 25% from 15-40%, the carried interest tax on investment partnerships rise from 15 to 39.6%, and the estate tax rises to 40%.  In addition, the budget calls for allowing the Bush-era tax cuts to expire, raising the top-level income tax rates to 39.6%.  Then there’s the new “Warren Buffet Rule“, which requires all those making more than $1 million per year pay at least 30% of their gross income in taxes.

English: President Barack Obama signs the Tax ...

Obama signing The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010

Perhaps the most damning, however, is the tax hike on businesses; Obama has yet to announce his new corporate tax rates, but included in the budget is a “financial crisis responsibility fee” on large banks that amounts to $61 billion, taxing energy companies $30 billion over a decade by ending tax cuts, $148 billion in new taxes on multinational corporations, and another $87 billion by changing how businesses value their inventory. Continue reading

CNBC versus the GOP

Last night the GOP candidates went into hostile Michigan to face a hostile set of moderators who were booed into sticking to economic issues by the crowd after an unfair detour against Herman Cain.  In all, the night turned into somewhat of a circus.  Hopefully, the GOP will shun CNBC in the future, as this was the worst and most unprofessional case of moderation we have seen.    But aside from that, let’s get to the winners and losers.  First up…

It floored me when they tried to ask if companies should be making a profit or growing jobs.  Excuse me, but how the heck do you create jobs if you aren’t making a profit?? Gingrich’s response was beautiful. Watching the moderator rolling her eyes when Gingrich said a 30 second answer on healthcare was ridiculous was fun to watch.  But my favorite answer of Gingrich’s was on education, where he offered a real life example of a real life solution that addresses the issue of education that is getting exponentially expensive with much cheaper results.  As someone who works full-time, is a full-time grad student and has been in college for a decade following various business and religious pursuits, I connected with Gingrich’s answer and could not agree more.  This morning Neil Boortz in a morning phonecall to WOKV implied that Republicans needed to worry about who could beat Obama, not who would be the best President speaking of Newt Gingrich.  Bull.  Gingrich keeps winning debates because he is the smartest man on that stage.  And he made a joke out of those bombastic, rude moderators.

Rick Santorum did well.  This doesn’t mean anything, he still can’t win.  But he did highlight his leadership on things like medical savings accounts and gave viewers no reason to mark him down.  He has struggled in debates, but performed well last night.  Ron Paul also did a good job.  He avoided saying anything outlandish and produced a solid, constitutionalist approach.  Bachmann did well, but was once again forgettable.  Huntsman also did pretty well, though his attempt at “answer this in 30 seconds?” humor sounded like a lame, screwed up retelling of a good joke.

Mitt Romney needs to understand his precarious position.  He is stuck at 30%.  The rest of the GOP voters are looking for not-Mitt-Romney as their candidate.  His smoothness, economic savvy, and gaffe free debate performances have gotten him this far (along with a great deal of establishment money).  He needs to figure out how to get himself the rest of the way.  He has to find a way to make Social Conservatives trust him. Mitt, if you are listening, make a major statement in favor of state personhood amendments.  Consider that step one to breaking into the 40s in the polls.

Herman Cain also has hit a roadblock, but it is a policy roadblock.  I think many viewers were left with the feeling that if nuclear missiles were airborne from China heading for the US, President Cain would be on the phone with the Chinese President telling him how his bold plan, the 9-9-9 plan, could solve their problems by growing China’s economy.  9-9-9 is to Herman Cain what Windex was to Tula’s family in My Big Fat Greek Wedding.  This one dimensionalism will leave him open to a Gingrich rise.  On the other hand, Cain did very well defending himself against accusations which are more and more looking like racist smears from the Axelrod/Democrat machine.

Rick, Rick, Rick.  By the way, if you want to see the sexism of the left, just watch how long Perry’s crash and burn stays in the media cycle and blogosphere compared to a Palin or Bachmann gaffe.  Talk about not being ready for primetime.  I think Perry likes to start talking and get rolling, and that’s why he sometimes forgets what he was talking about mid-sentence.  No excuses.  You are running for President of the United States.  Running before you secure the ball is how you lose games.  Running your mouth before you have your answer and grasp on the issues is what makes Presidents say stupid things.  E.g. Barack Obama talking about police officers who arrested his professor friend.

Time to thin the herd

All is not lost!  Yes, it was an ugly night for several GOP candidates.  Newt’s frustration with the format is certainly understandable.  It made for great television, but it was a bad debate.  However, there were some glimmers of hope, starting with the Vegas Champ…

Newt Gingrich.  I didn’t give Newt the win last time because I didn’t think his campaign would see a boost.  After this debate, I think it will.  Newt once again is the adult in the room.  He puts himself above the fray and really acts as a second moderator.  Voters should give Newt a second look.  Give Newt seven debates with Barack Obama and Obama might even drop out of the race before November.  I would love to see these debates as more candidates drop out and more time is given.  Newt has been so supportive of other candidates that his questions of other candidates carried a great deal of weight and were therefore more devastating.  Cain will not survive the 999 barrage, look for Newt to pick up steam.  Newt’s statement on faith put him squarely in the majority of conservative thought.  Newt’s biggest slip up was on appearing weak on states rights.  Another candidate who performed well, but likely won’t see much change because of it was…

Mitt Romney.  Romney was once again the big punching bag, and once again hit back.  He continued to defend his healthcare program as a state program and did pretty well.  But here Newt hit him hard on the big government aspect of it.    Romney kept his cool when being shouted down by Rick Santorum and talked over by Rick Perry.  Romney screwed up on Cain’s 999 plan trying to argue that Cain’s plan would add federal taxes to state taxes.  Excuse me, Mr. Romney, but you already pay bushels of apples and oranges.  Don’t feel bad, every candidate but Cain and Newt seemed to forget that 999 would eliminate our current tax code.  In the end, especially with no Huntsman, Romney’s got his support base solidified and did nothing to hurt that. Unfortunately, this is the last good report on a candidate performance in this review.  Although, it wasn’t terrible for everyone, especially…

Michele Bachmann.  Michele, Michele, Michele.  First, Obama took us to Libya, THEN, he took us into Africa!  Oops, Libya is in Africa.  But again, if Joe Biden can be VP, we shouldn’t be too hard on Bachmann for her frequent misspeaks.  Aside from that, she did well in another forgettable performance/turned stump speech.   As a tax litigation attorney though, I am disappointed in her evaluation of Cain’s 999 plan.  A VAT because every corporation in the manufacturing process pays 9%?  What does our current corporate tax do?  Same thing.  Shame on you Michele.  But most people won’t figure that out, so you’re good.  We will see if the media picks up on Bachmann’s idea of a $1 poor tax.  Bachmann won’t see any uptick from this debate.  Another candidate with no uptick or downtick…

Ron Paul. Paul is good on state’s rights.  The other candidates would do well to learn some things from him.  On the other hand, we heard a lot of the same platitudes and fuzzy one liners that leave us scratching our heads about if Paul actually has a viable plan.  Get rid of the income tax?  Oh, ok.  Is that like repealing Medicare part D?  Would be nice, but not a priority?  Paul came out with a new economic plan that cuts a trillion in spending.  Worth taking a look at, but didn’t get much play last night.  He will maintain his small support base, but with his vagueness and legend over substance approach this debate won’t give him a bump.  But at least he won’t lose support, like…

Herman Cain.  Cain gave the media some pretty good quotes last night.  Would he shut down Guantanamo to negotiate with terrorists?  Kinda sounded like it.  Apples and Oranges?  Cain, that is simply not Washington speak.  Cain looked amateurish.    He is an amateur though, so he may get a pass for the inability to articulate his 999 plan in a way that Americans can understand and latch on to.  Fortunately, his opponents weren’t much better.  In fact, only Newt seemed to have a clue how 999 works, but he wasn’t about to throw Cain a bone.  Cain right now is riding on populism, but poor debate performances can sink that ship (Bachmann, Perry).  In fact, I think it did sink two ships last night, starting with…

Rick Santorum.  Rick continues to be an advocate for the family.  He continues to present strong conservatism.  But his discussion with Romney early on just set a bad tone.  He reminded me of an angry teenager.  It was unprofessional and amateurish.  It’s been good to have Santorum in these debates for the most part, but after last night he needs to drop out and endorse a social conservative who can still beat Romney.  You’re not going to win, Rick Santorum.  At this point you are hurting more than helping.  But at least Santorum did better than…

Rick Perry.  Geez.  I don’t want to sound politically incorrect, but Perry seemed…slow.  Can we still use that term?  When Romney was answering and Perry was slowly drawling over him and droning on, I couldn’t help but laugh.  But it got worse as the night went on.  Perry, who gave instate tuition to illegals and opposes a full border fence, went after Romney for hiring a landscaping company that hired illegal aliens.  And that wasn’t the only 2008 unfair attack that Perry dug up.  Even when Perry made a good point (We need to uh, look at, uh the…darn, which amendment was it again?  Oh yeah, tenth amendment for uh…issues) it was lost in translation.  Perry was put in his place over and over.  It was a complete dud.  Even his distancing from Pastor Jeffers was not believable.  The best we got from Perry was a promise that next week he will have a tax plan. The good news is that even Rick Perry had a better week than…

Barack Obama.  Rumor has it, after a bunch of his tour supplies were stolen, that his teleprompter is currently being interrogated by Iranian sponsored Al Qaida terrorists in Mexico.  Although, there have also been alleged sightings of his teleprompter in Zuccoti park, smoking a joint and displaying a message about being overworked and underpaid.

Welcome to the top, Herman Cain

The most recent debate is over, and Herman Cain is discovering what Rick Perry felt like when he was the front runner.  The way the debate went, there was clear recognition of Cain, Romney and Perry as front runners.  The other candidates almost seemed to be helping in the vetting process as though they were seeking to help Americans choose from one of those top three.   So here goes, the latest debate in retrospect.  And the winner is…

Romney back in the driver seat

Mitt Romney.  Mitt Romney had some good news today.  He picked up an endorsement from Chris Christie, which is huge.  He also had some bad news.  Rush Limbaugh questioned Romney’s conservatism compared to other candidates and gave the death knell that took down Mitch Daniels, Tim Pawlenty and Jon Huntsman.  Rush called him the Republican establishment candidate.  Still, Romney was his usual comfortable self.  His adopting the Trump doctrine on China will help build that portion of his base.  Cain did Romney a huge favor by asking him about his 59 point plan and giving him the chance to explain it and expound on it.  In fact, the questioning session turned into an opportunity for the other candidates to seem to vet the apparent front runner candidate.  Romney’s own question to Michele Bachmann was very gracious and showed the kind of class that simply makes Romney likeable.  Romney’s answer on Dodd Frank was pure gold.  He was polished and Presidential.  Romney still has to get a little bit stronger on his conservative stances and lose a bit of that obvious shine in order to pick up more of the anti-politician minded rightwing, especially the TEA party.  But for this debate, Romney managed to edge out…

Newt Gingrich.  Newt Gingrich is the best debater.  As the best debater, Newt spewed pure common sense.  His best was when he bluntly spoke about how absolutely stupid the debt commission is.  His answers put him above the fray and he maintained his mantra that any candidate on that stage would be better than Obama.  However, Newt did not get enough face time.  He took no arrows, shot no arrows at the other candidates, but simply did not have enough chances to speak to make a difference.  Newt has won several of these debates, but winning these debates is not enough for him at this point.  He must so completely knock each debate out of the park that everytime a front runner falls he is there to pick up the pieces.  In this case, he did not even mention his campaign’s new contract with America.  It was a lost opportunity.   So far he has not accomplished what he needs to do in these debates.  I can’t give him first, no matter how well deserved.  But as a representative of the Social Conservative flavor of this party, he did outperform…

Cain has his work cut out for him

Herman Cain.  Cain’s 9 9 9 plan finally got the inspection it deserved.  A striking moment was when Rick Santorum polled the audience on who wanted a new 9% sales tax, and who thought a 9% flat income tax would stay at 9%.  Not a single hand in the audience was visible.  Santorum hit the nail on the head.  The result is Cain will be in trouble after this debate.  He must now find a way to explain his plan in a way that resonates with Americans.  He made a good start when he talked about how the 9% sales tax would replace a 15% payroll tax, which of course we all pay.  If he can hit that point and solve the question of how to prevent future Presidents from turning his 9 9 9 plan into a 35 35 35 plan, he can salvage his front runner (by my calculations) status.  Cain took a huge hit on the federal reserve when Paul questioned him too.  Later when he spoke about fixing the Fed, Paul made easy work out of Cain.  Still, his likeability level and pure down home realness will keep him afloat for at least one more round.  At this point, if Cain falters I predict voters will finally give Newt Gingrich a second look.  Another candidate they might be looking at is…

Rick Santorum.  Rick Santorum did very well.  He made a key point when he said he did not support the bailout.  He called out Cain’s 9 9 9 plan and struck a very strong blow on it.  He exposed Cain’s naivete beautifully.  But that was the extent of Santorum’s stunning performance.  Like Gingrich, he simply did not get enough other face time to make a huge difference.  No one is afraid of him becoming the front runner any time soon, so there wasn’t much interest in him among the debate moderators.  While Santorum did not make a strong case for himself as President, he certainly gave voters a lot to think about with the latest rising star in Herman Cain.  That may be his purpose at this point.  There is very little chance of his campaign being successful.  Almost as little chance as…

Jon Huntsman.  Jon Huntsman did not do bad for the most part.  His answer on China will not connect with Americans and for a good reason.  Being nice to China does not sell when as Romney pointed out we are already losing to them because they are cheating.  Two debates ago I said Huntsman’s campaign is over.  Nothing changed with the debate tonight.  Feeling our pain because he helped run the family business and was a good governor is so cliche at this point, it’s really forgettable.  But not as forgettable as…

Michele Bachmann.  Michele Bachmann did well.  She spoke on Obama’s failures and conservatism.  But mostly she was forgettable.  At one point, it sounded like she said she raised 28 children, 22 foster and 5 biological.  I could understand, with that many kids, how easy it would be to get the math wrong.  But it’s not good when that’s what sticks out in my mind.  No highlights, no major gaffes, and in fact her role in Congress became even more forgettable when Gingrich asked why the House has not made any move to repeal Dodd Frank or Sarbanes Oxley.  I was left wondering where her actual leadership has manifested itself.  The exchange with Romney was her one saving grace, proving that at least she is not one dimensional unlike…

Popularity off the debate stage won't save these candidates from earning low marks in this debate.

Ron Paul.  Ron Paul did ok.  He made it pretty clear he isn’t a fan of the fed.  But on the fed, especially Bernanke, Newt stole his thunder.  What else did Paul speak about?  Again, another forgettable candidate.  Paul fans, don’t hate me for saying that.  Step outside of the movement for a minute and ask yourself if he truly made a splash.  Did we hear anything new about Ron Paul that would make us want to make him in charge of everything the President of the United States is responsible for?  No, but I’d be happy to see him head up the Fed audit once we get a President who has that as a priority (which apparently is not Herman Cain).  But even Ron Paul did better than…

Rick Perry.  Rick Perry came across as a something between a walking cliche and a deer in the headlights.  He simply does not debate well.  He again was slow in his responses and his wording did not connect.  He came across as very unprepared once again.  His good answers were copies of other candidates, and his bad answers seemed to drag on with his drawl.  I’ve said before that I would love to see Newt Gingrich debate Obama.  I would not love to see Perry debate Obama.  I’m not sure I would be able to watch.  Can Perry turn things around?  Possibly.  I’m not ready to give him the Dead Candidate Walking title along with Huntsman just yet.

How Will Palin’s Proposal to Elimnate the Corporate Tax Effect the Repubican Presidential Field

Bookmark and Share   Although she is not a candidate for President, at least not yet, and despite Mitt Romney’s now nearly 6 year’s of continuous for President and Rick Perry’s overnight rise to presidential popularity, Sarah Palin remains the biggest influence on and in the G.O.P. field to date. Despite Romney’s money and frontrunner status, regardless of Michele Bachmann’s win in the Iowa Straw Poll and Rick Perry’s last minute entry into the race, Sarah Palin still remains the elephant in the room.  Her Labor Day weekend speech in Iowa was probably more watched than the campaign announcements to run of all the other declared presidential candidates combined. Additionally a significant number of Americans continue to refuse to consider any of the existing presidential candidates unless Sarah Palin makes it official that she will not run.

So her every move continues to be monitored under a microscope of media scrutiny and the eyes of an electorate that Palin seems to polarize more than the average politician. As such, even though Palin did not use her Saturday speech at the TEA Party Nation rally in Indianola, Iowa to announce her presidential candidacy, it still had a dramatic effect on the existing field of G.O.P. presidential candidates. Many Republicans and practically all TEA movement members will compare all the other candidates to Palin and the remarks she made in her speech.

Many voters will in fact heed her advice to “properly vet” all the candidates and to also question how accountable they will be to the big money financial donors who contribute heavily to their campaigns.

But one of the most immediate effects of Palin’s speech will be seen during this Wednesday’s presidential debate.

Although this debate is sponsored in large part by MSNBC or as I like to call them, the Mostly Slanted News Bias Company, even their most brain-dead, drone-like on air personalities should be able to see that a most natural question to ask the candidates that comes from Palin’s speech is whether or not they agree with her proposal to eliminate all corporate taxes.  The question is practically a mandatory one, and the answers that the candidates give to it are critically important that will say much about their ideological purity.

In explaining one aspect of her plan to restore us to a strong and a free market economy, Palin proposed that as one part of her “plan” for America, she would eliminate the corportate tax. It was a bold proposal and not necessarily an easy one to make a majority of Americans to initially support. In this day of class warfare and widespread liberal attempts to make corporations the boogeyman, a proposal that would eliminate a tax on them will certainly not be popular.

The fact that Palin did make the proposal could be an indication that she in fact will not be a candidate for President. People who are not seeking votes tend to be more willing to speak the truths that may be unpopular. But whether Palin is to run or not, her proposal has placed the existing G.O.P. field in a bit of a quandary.

In truth, eliminating the corporate tax will dramatically change the existing economic paradigm. Not only will it transform the tax industry and shift the focus of ,and reduce the need for, CPA firms, tax attorneys, and corporate tax attorneys, but it will also direct the aim of corporate leaders to move from avoiding taxes to maximizing income. In case those on the left don’t understand what maximizing income means, it is called making a profit and it’s a good thing.

But in addition to that, eliminating the corporate tax would almost certainly reduce prices on everything. The elimination of the corporate tax would allow companies to begin lowering prices in order to make them more competitive and to insure they do not to lose a significant market share. Furthermore, and probably foremost, as Sarah Palin pointed out in her speech;

“Did you know our rates are higher than China and communist Cuba? This doesn’t generate as much revenue as you would think, though, because many big corporations skirt federal taxes because they have the friends in D.C. who right the rules for the rest of us. This makes us less competitive and restrains our engine of prosperity. Heck, some businesses spend more time trying to figure out how to hide their profits than they do in generating more profits so that they can expand and hire more of us. So, to make America the most attractive and competitive place to do business, to set up shop here and hire people here, to attract capital from all over the globe that will lead to an explosion of growth, instead of chasing industry offshore, I propose to eliminate all federal corporate income tax. And hear me out on this. This is how we create millions of high-paying jobs. This is how we increase opportunity and prosperity for all.”

Palin’s proposal makes sense but leadership will be required to make the logic of it hit home with voters. Apparently, Sarah Palin is ready to lead on the issue.

If she intends to lead on the issue as an elected politician or as a private citizen is still in doubt, but whatever her decision is, she has forced the current field of declared candidates to decide between being an elected leader who is willing to speak the truth be it popular or not, or if they will be typical politicians more concerned with politics than policy.

Bookmark and Share
%d bloggers like this: