Obama: Please Give to my Super-Pac

Obama’s Change of Heart

The President may be getting nervous about November.  In a change of direction for his campaign, Obama is no longer decrying outside influences and the horrors of super-pac funding.  He is fully embracing it.  Despite previous complaints about outside corporate influence and campaign finance laws, Obama is now opening the doors and begging supporters to fund super-pacs that support him, and can also take unlimited corporate donations.

Obama had tried to appear saintly in 2008 when he went back on a campaign promise and decided to not accept public funds for his campaign. Instead he relied on small donations that require far less tracking and reporting.  The result though was that many donations came from potentially illegal sources.

This time around, Obama is hoping that his supporters will funnel funds to his super-pacs.  He has good reason to bet on corporate financing.  Obama has bailed out several companies, catered to unions, and funneled public funds to private companies like Solyndra.  In the case of Solyndra, Obama had the federal loan reworked so that when the company went under, his supporter got his money back and the taxpayers were left holding the bag.  After three years of crony capitalism, Obama is ready to call in the favors.

 

Newt’s rebirth: Romney’s innocence: Cain’s oops

Give Newt a chance?

That seems to be the message coming from GOP grassroots following another commanding debate performance in Nevada.  Newt Gingrich is announcing on his Facebook page that contributions over the last four days have exceeded what he took in for the entire month of July.

With some of this campaign cash, Newt is making moves in New Hampshire and hopes to hit other early states as well.

To date, Newt Gingrich’s campaign was slowed by an apathetic start, low fundraising, and staff defections.  The general mood towards Newt Gingrich has been that everyone will admit he is the smartest man in the room, but nobody thinks he can get elected.  Un-electability has cost him financial support in a catch 22 situation where he has found it hard to raise the sort of excitement that gets people to fork over even small donations.  In many cases people like Newt in theory, but can think of better things to spend their cash on.

Newt also has the misfortune of having a public record far longer than any other candidate out there.  From the Clinton impeachment to his three wives, Newt has plenty of baggage.  However, none of this baggage is fresh.  This could prove to be an advantage over candidates who have made much more recent slip ups that are fresh in people’s minds.

Romney’s Illegal Aliens

Rick Perry may have made a critical error in attacking Mitt Romney for “hiring illegal aliens”.  This was a flimsy charge when it was made in 2008 and has not become any more serious since then.  Such a mean spirited attack on such a baseless charge is not what Republicans want to see candidates doing to each other.  Perry may be believing some of the religious conservative hype coming from his side of the ring: that getting rid of Romney is as high a priority as getting rid of Obama. 

Most conservatives would rather see Obama go, even if it means electing someone not as socially conservative.  Romney is not going to go down over this illegal immigration charge, and for a good reason.  Romney didn’t hire illegal aliens.

In fact, as an accountant myself, I would wager that under the criteria given by Rick Perry I could discover illegal aliens that Rick Perry has “hired”.  Romney hired a legal US company to perform services for him.  That company broke the law and hired illegal aliens without Romney’s knowledge or direction.  When Romney found out, he gave them one chance to fix it and then fired them.

So, has Rick Perry eaten at any restaurants along the border?  Has he ever used the services of any company that hired illegal aliens?  Give me unfettered access to his check books and credit records and I can easily find you the illegal aliens Perry has “hired” by this criteria.

Besides, did Nannygate in the Clinton administration change one voter’s mind?  Stick to the Issues, Rick Perry.

Cain talking himself out of contention

For two straight debates, 9-9-9 has played a significant role in tax discussion.  Cain is tapping the anti-IRS Fairtax group in the country with step one on the way to a national sales tax.  But the Fairtax has always overpromised on things it could not deliver.  9-9-9 actually makes the Fairtax look pretty good.  Cain has lucked out so far since no candidate attacking his plan seems to understand his plan.  But eventually word will get out on some of the real flaws in it, such as the basis for the 9% corporate tax.

The 9% corporate tax is on gross minus purchases.  For service  intensive industries such as consulting firms, temp agencies, and other such businesses, that 9% tax could easily turn into an effective 90% tax or even higher.  How?  Picture a company that makes $1.1 million gross per year.  They are a consulting firm with $100,000 in expenses and $900,000 in payroll costs resulting in $100,000 in profit.  Under Cain’s plan, it they leave the $100,000 profit in the business, they will be taxed on 9% of $1 million, or $90,000.  Of course, $90,000 tax on $100,000 net profit is a 90% corporate tax.

Now Cain has made another misstep on abortion.  At the same time, he practically handed out endorsements to his two biggest competitors, Mitt Romney and Newt Gingrich.

Cain continues to establish his amateur status and lack of political savvy.  Some voters will find that endearing, especially in our polished political world.  Others will start questioning just how much they can trust Cain to hold the line on important principles and give fast, correct answers in one of the most demanding jobs on the planet.

Social Conservatives Split As Predicted

Months ago, I laid the framework for next year’s primary election with my blog entitled “The Neapolitan Party“.  In it, my theory was that Republican voters would fall on three lines, Social Conservative, Fiscal Conservative, and Libertarian.  Cain’s rise and Perry’s fall is continued proof that this template is accurate.  It also is bad news for Mitt Romney.

An untrained eye might see Perry’s recent fall in the polls and Romney reclaiming front runner status as great news for the Romney campaign.  But the numbers tell a different story.  Romney is not losing or gaining votes from Social Conservatives.  Perry and Cain are moving these votes back and forth.  Eventually the race will come down to Romney and the top Social Conservative.  At this point, that top Social Conservative will likely win.

Can Romney increase his support among Social Conservatives enough to win?

Romney will get Huntsman’s voters when Huntsman drops out of the race.  Paul and Johnson voters  will either go to Romney, stay home, or vote third party.  But the rest of the candidates are passing support back and forth between them based on who has the best chance of beating Obama.  This is why Santorum and Gingrich continue to fail to gain traction.  When they drop out, their votes will go to the top Social Conservative.

Romney’s best hope may be for Perry to regain his momentum.  With the attacks leveled by Bachmann and Santorum against Rick Perry, some of their jaded supporters may gravitate to Romney if and when they fall out of the race.  Others will see Perry’s illegal immigration stances and choose Romney as the lesser of two evils.  However, I believe that Romney may not be able to recoup enough supporters from other Social Conservatives unless he seriously steps up his Social Conservative message.  Romney has done well to endorse TEA party objectives and move more to the right socially, but trust is still an issue.  On the other hand, Cain is a very likeable and trustable candidate.  Libertarians are wary of him because he used to be a board member of a Federal Reserve bank.  But the libertarians who would not vote for Cain because of that have far more reasons to not vote for any other viable candidate.

The other factor that could change this would be last minute polling of who would beat Obama.  If it comes down to Cain and Romney, but polls show that Romney would have a better chance of beating Obama, that could be a game changer.

Cain’s Florida Shocker

The value of the Florida straw poll was increased dramatically when Governor Rick Scott suggested that the winner of the Florida straw poll would also be the winner of the Presidency.  Scott’s prediction is not outlandish.  The Orlando event and debate was huge, in an area that represents the swing difference between the conservative north Florida and more liberal areas of the south.  The poll represents the party interests as many GOP and TEA party groups throughout the state made appearances.  And it would be almost impossible to imagine a 2012 candidate in the general election winning the Presidency without carrying Florida.

But who thought Herman Cain would win the Florida straw poll?

Rick Perry was the favorite going into the straw poll.  Perry also stayed behind and continued to work the crowd after the other candidates left.  Perry bought breakfasts and schmoozed.  He understood how crucial this poll was.  But in the end, Cain did twice as well as Perry in the straw poll.  While Romney continues to poll well in many northern states, Cain’s victory will at the very least cause undecided voters to take a second look.

While this may not change the scene too much for Herman Cain, it certainly is a tough blow to Rick Perry.  Perry struggled in the debate, blaming his performance on lack of sleep.  Perry also made a huge blunder by suggesting what amounted to a claim that if you don’t support instate tuition discounts for illegal aliens you don’t have a heart.  Even pro-amnesty Republicans will have a hard time swallowing that one.  So far the debate performances have not had much effect on the perceived standings of the candidates.  This time, Perry is feeling the painful fallout.

Interestingly, Ron Paul did not do well.  Typically his straw poll numbers are inflated, but not in Florida.  Bachmann did terrible and Huntsman barely registered.

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