The $100,000 Raise

Picture this, tomorrow you march into your boss’s office and demand a $100,000 raise.  What do you think?  Would you walk out of that office with a job?  What if you demanded a $2,000 or $3,000 raise?  Perhaps that is more likely.  But it should be no shock that companies have been laying of tens of thousands of workers now that Obamacare is the permanent law of the land.

Starting in 2014, companies with 50 or more employees  must offer their employees corporate health insurance plans, or employee #50 will cost the company an additional $100,000-$150,000 in taxes.  That’s $2,000-$3,000 per person.  So if you are employee #50, you may want to brush up your resume.  In fact, if you are employee 50-100 you may be starting to sweat just a little bit.

So why won’t companies simply offer their employees health insurance?  Probably because with a price tag of $16,000 per family for a corporate plan, it simply isn’t economical.  Companies could pay their employees the $5,000 or so for a private plan through a defined contribution benefit package as Sears, Darden Restaurants and others are opting to do, but that does not save them from the $100,000+ tax.  Imagine being able to get money from your company to go out and buy your very own tailored healthcare plan where single men don’t have to pay for maternity and women don’t have to insure against testicular cancer.  Unfortunately, the insurance lobby was able to convince Obama that personal choice is a bad idea.

I’ve heard a lot of people suggest that companies who are laying off en masse are doing so only to protest the Obama re-election.  Yes, that’s right, companies are intentionally hurting themselves to show Obama how upset they are.  Really??  That would be like suggesting a pro-choice lesbian would get knocked up and have a baby to protest a Romney win.

It’s more like this, if a company can’t afford to pay $16,000 per family in health insurance coverage, they just might lay off 200 workers in order to save between $400,000 and $600,000.  By the way, most small businesses with 5o employees can’t afford  $100,000 in additional taxes.

If you think companies are just bitter and that is why job losses are up 78,000 since the election, consider this: with Obamacare companies just saved $156 million by laying off those 78,000 workers.  Obama is incentivizing layoffs by taxing employment.

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Change? Obama Worse than Bush

The verdict is in, and Barack Obama did not produce the change he promised.  In fact, as he blames all his ills on the last 8 years, it is interesting to compare the Bush years to the Obama years.  Consider the following:

Average Annual Increase in Public Debt (in millions):

Bush: $543,818        Obama: $1,497,601

Total Increase in Public Debt (in millions):

Bush (8 years): $4,217,261   Obama (4 years): $5,990,407

Average Annual Unemployment (Also see here):

Bush: 5.26%                    Obama: 9.2%

Median Household Incomes:

January, 2009: $55,198       August, 2012: $50,678

The Average Annual Price of Gas (not even including 2012):

Bush: $2.14                     Obama: $2.89

Cost of Higher Education (adj. for inflation, not even including 2012):

Bush 2008: $16,661     Obama 2011: $18,497

But isn’t health insurance cheaper now with Obamacare?  No.  In 2012 the amount a family with employer provided coverage pays in annual premiums has increased to about $16,000.  For families with private individual plans, the amount is up to $5,615.  And before you ask why families don’t all just switch to private individual plans, remember that Obamacare taxes medium-large businesses up to $3,000 per employee that they don’t cover.

But we know Obama has handled the economy terribly.  The other thing people elected Obama for was to end the wars.  Obama promised to close Gitmo, which didn’t happen, and to end the war in Iraq.  He ended the war in Iraq by sticking to Bush’s timeline, but that wasn’t the whole story.  Obama intended to continue the war and leave troops in Iraq, but Biden could not negotiate simple immunity for our troops.  Don’t look now, but the Afghanistan war isn’t ending in 2014.  The administration is already negotiating to keep up to 25,000 troops in Afghanistan after 2014.

Let’s look at war by the numbers.

Involvement in Major Foreign Conflicts:

Bush: 2 countries           Obama: 3 countries

Military Spending as % of GDP:

Bush, 2008: 4.4%          Obama, 2011: 4.7%

Average Annual War Spending:

Bush: $99.3 Billion       Obama: $155.1 Billion

Obama boasts of ending the war in Iraq, but how is the peace President doing in Afghanistan?

Average Annual Troop Deaths:

Bush: 606                        Obama: 445

Iraq:  528                         66

Afghanistan: 78              379

But what about Bush’s handling of Katrina?  Surely Obama has done better than that, right?  Former NYC Mayor Guiliani says no.

What about taxes?  Obama boasts about cutting people’s taxes, but most of the tax hikes he passed don’t go into effect until next year.  Obamacare has 20 different tax hikes in it, and many of those affect the poor and the sick.

But Obama saved the auto industry, right?  Actually, the only Detroit major that survived was Ford.  Ford didn’t take Obama’s bailout.  Chrysler did, and is now owned by an Italian company called Fiat.  GM took Obama’s bailout and is now owned by the taxpayers.  This was after Obama spent billions to bailout the unions before letting the two companies go through bankruptcy.  If that’s Obama saving the auto industry, I hope he doesn’t do me any favors.

Add these factors to Benghazi, Fast and Furious, the Black Panther polling case, Solyndra, and the other various scandals and overreaches of the Obama administration, and there is no reason to re-elect Obama.  Except of course if you got an Obama phone and are afraid of losing it.

How Obama Could Still Win:

Several states in play are ties or tossups in the latest polls.  In some, Obama is leading by 3-5%, but 3-5% are either undecided or going third party.  Obama can still win, even with his horrible statistics, if people vote third party or stay home.

I know many out there are voting third party or not voting to protest Romney.  I, like you, am a very libertarian leaning constitutionalist.  I’d love to see us out of the Middle East.  I’d love to see government spending cut in half.  I’d love to see us hold to our 10th amendment.  But Mitt Romney is NOT Barack Obama.

If anything, Mitt Romney is far closer to Reagan.  Despite being hailed as a conservative hero, Reagan is not as conservative as I would have preferred.  In fact, many Ron Paul and Gary Johnson voters would probably not vote for Reagan either.  But Mitt Romney is not the candidate you should be protesting.  You should be protesting Barack Obama.

Consider your goals and which candidate will get us there:

Less involvement in the Middle East: Mitt Romney has a comprehensive energy plan that gets America using its own resources to lower our dependence on OPEC.  Obama spent billions of your tax dollars on green energy companies that went bankrupt, and we are no closer to independence from foreign oil.

Simpler, fairer tax system: Romney’s plan reduces rates in order to remove loopholes and deductions based on the government’s definition of what a good citizen looks like without raising taxes.  Obama’s plan is higher taxes, more redistribution and a more complex tax system designed to pick winners and losers.

Foreign wars: Obama has proven himself to be an interventionalist.  He is not the peace President people hoped for.  He hasn’t closed Gitmo.  He only left Iraq because he was too incompetent to negotiate a way to stay there.  But he is already negotiating to keep 25,000 troops in Afghanistan.  Romney’s approach is to show the kind of strength Reagan did.  What major war did we fight when Reagan was President?  The Cold War, where we sat across the ocean from each other and didn’t pull the trigger for eight years.  Finally, the Soviet Union collapsed under their economic system.

More personal freedom and responsibility: Nothing took us backwards further as a nation than Obamacare.  Obamacare mandates that every American buy private health insurance or pay a tax.  Obamacare takes deciding power away from doctors and patients and gives it to the government.  If you protest Romney, Obamacare is here to stay.  If you vote to protest Obama, we have a shot at repealing this monstrous tax on the sick and the poor.

Does My Vote Count?

If you are thinking of voting third party or not voting because Romney is not as conservative as you’d like, you could be part of the margin that gives Obama four more years to take us down the path towards socialism at hyperspeed.  So where does Romney need your vote the most:

Virginia, North Carolina, Ohio, Pennsylvania, New Hampshire, Florida, Nevada, Colorado, Indiana, Iowa, Wisconsin, Michigan, New Mexico, Arizona.

But believe it or not, he also needs you in Oregon, Minnesota, Connecticut, New Jersey, and Maine. If nothing else, vote to tell the liberals in your state that they do not have a mandate.  The country is changing and is leaning to the right.  You will never get the conservative, limited government you want if you let the country fall off the socialist cliff because the most conservative candidate who can win is not conservative enough for you.

When you walk into the voting booth, consider what you want America to look like in 2016.  Do you want to move forward the way Obama does?  Do you really want four more years of this?

No Silver Lining – Obamacare Taxes the Poor

We passed the bill, and even now we are still finding out what is in it.  When Nancy Pelosi said we had to pass the 2,700 page healthcare bill to find out what was in it, that’s because nobody really knew.  Turns out they missed something big.  If a state can’t pay the $2 billion to set up a state run health insurance exchange and passes on that portion of the law, the federal government cannot provide the poor in that state with health insurance tax credits.  In other words, if states spend their limited resources on teachers, roads, police, firemen, and libraries instead of building one of Obama’s bureaucratic insurance exchanges, the poor not only don’t get help buying health insurance, but then have to pay the penalty tax for not buying health insurance.

If $695 in penalty taxes is enough to bankrupt a homeless person, than you can count Obama’s claim that no one would ever face bankruptcy for medical reasons again as one more broken promise.

There is a provision for the federal government to set up a national exchange for states who don’t or can’t spend the money to build their own.  However, a simple mistake in the law, or possibly an intentional penalty, only allows for federal tax credits to individuals in states with state run exchanges.  Perhaps Obama thought that by the time the law was implemented states would be able to shell out an additional $2 billion to pay for it.

Personally, I support Governor Scott’s decision to use that $2 billion to keep Florida from having to lay off teachers in our already hurting school districts.

Add this unforced error to Obamacare and there are few silver linings left for most Americans. Families can keep their kids on their health insurance up to age 26, but in many cases these “kids” are either old enough to be out on their own or are still students and could actually get student health insurance plans for far cheaper than the cost of being added on to their parent’s plan.  At the same time, the cost of adding 25 year olds to family plans has helped raise rates for everyone.  There is the tax credit for small businesses, but a tax credit for businesses with 15 or fewer employees who make less than $50,000 but can still afford to provide health insurance and pay an accountant who knows how to figure the credit are few and far in between.

When the health insurance taxes are fully implemented and the price of health insurance shoots high enough, no one will get health insurance until they get sick.  In states that can’t afford exchanges, the poor won’t get insurance either.  The very problem Obamacare sought to fix, that of middle class and poor “free-loaders” who either can’t afford insurance or decide not to buy it, will be made infinitely worse by Obamacare.

One more thing to add to this mess is that many states can’t afford the Medicaid expansion either.  Liberals are scratching their heads trying to figure out why states would forgo more Medicaid money.  But it’s like this: picture if someone with a million dollars in debt invited you to have steak dinner with him at the most expensive restaurant in town.  The two stipulations are this, first you have to pay half, second you have to then do the same thing for every dinner for the rest of your life.  And if this man with a million dollars of debt can no longer afford his half, you’re stuck with it.  Would you accept the offer of “free” steak?  State’s can’t afford their half of the Medicaid expansion, and they certainly know Uncle Sam can’t afford his share either.

In the end, Obamacare is bad news for the majority of Americans.

Obama’s Class Warfare Targets Middle Class

By now, the country is used to the rich being the easy target of the left.  When a tiny percentage of the country pays the vast majority of the tax burden, it is easy to target that tiny majority as the evil villains who only have what they have because the government paved the roads between their dorm and class room.  This allows Democrats to come out in favor of massive tax increases while not losing elections.  The only people who are affected by taxes on the rich, other than the rich, are those bitter clinger Americans who still believe in the American dream and foolishly think they could also earn more than $200,000 some day.

So what does Obama do when the Supreme Court reveals that the Obamacare tax hike is in fact a tax hike?  What does he do when the numbers are tabulated and we discover that the majority of people affected by Obamacare are not the evil rich, but in fact are the angelic middle class?  Well, it’s time to do some re-branding.

Meet the evil middle class.  While making more than 400% of the poverty level, they still would rather pay an annual $695 per person tax than shell out $695+ per month for health insurance.  These are the “free-loaders”.  They are the people who supposedly can afford to spend 10% or more of their income on health insurance but choose not to.  As a result, when they get sick we all foot the bill.

The problem is that Obamacare is designed to vastly expand the evil, free-loading middle class.  First, the Obamacare tax is $695 per adult, making it far cheaper than overly taxed Obamacare approved insurance.  Second, the $2,000 and $3,000 taxes on businesses for not insuring their employees is far cheaper than the overly taxed Obamacare approved corporate insurance plans.  Third, you don’t have to have insurance.  Under Obamacare, you can skip getting insurance right up until the doctor hands you the bill for the expensive operation you just had.

The CBO predicts that 20 million people will lose their insurance because of the Obamacare tax.  I’m proposing that it will be more than that.  Ask any American if they would like to save upwards of $8,000 a year, minus $695, by simply dropping their already frustrating insurance plan and just buying insurance as needed when they get sick.  Obama is about to discover just how evil, and smart, the middle class really is.

All of this may end up being an academic exercise.  The evil middle class free-loaders, like the rich free-loaders, will find pay the Obamacare penalty tax in order to avoid paying the more hefty Obamacare tax embedded in insurance rates.  But the real crippler for Obamacare taxes will be states who refuse to pay the Medicaid tax mandate involved with fully implementing Obamacare.  Obamacare is, as Kagan described it, a boatload of federal money to increase state Medicaid programs.  But that boatload isn’t nearly sufficient to meet the needs of expanded Obamacare Medicaid state programs.  States like Florida who refuse to partner with Obama on the vast Medicaid expansion now have no threat of losing their current Medicaid dollars.  Losing the cooperation of the states will make Obamacare even more unworkable.

Obama promised no new taxes for people making less than $200,000.  He lied.  Obamacare is a tax on the middle class.  Now that this has been made supremely official, Obama must figure out how to continue to wage his war on the middle class and somehow still get the middle class to vote for him.  Misinformation seems to be his best bet.  That’s why many Americans still think Obamacare has anything to do with being free or universal.

Romney May Not Get All 50

Gingrich Shows Some Fight

Don’t count him out yet.  Newt Gingrich is fighting for his slice of Romney’s 50 Florida delegates.  According to RNC rules, no state can hold a winner takes all primary before April 1, 2012.  Florida was warned of this back in December.  This means that Newt could cut into the 50 delegates that Romney is expecting from his Florida win.  If this works for Newt, Romney’s delegate lead will be cut about in half.  But Newt faces an uphill battle, fighting an RNC and RPOF stuffed full of Romney supporters.

Romney Supporters as Annoying as Paul’s?

After the Florida primary, it might have been nice for there to be some healing in the state after one of the most negative campaigns in Florida’s primary history.  Instead, the theme from Romney’s supporters is that Newt should stop whining about the negative campaigning and his supporters should fall in line with the presumptive nominee.

If you think that is bad, Romney’s number one cheerleader, Ann Coulter, is now praising Romneycare as a constitutional, conservative solution to healthcare.  In fact, Coulter is now saying that “The problem isn’t health insurance mandates.”  Perhaps someone should tell that to Pam Bondi, Florida Attorney General and Romney supporter who is leading the fight against Obamacare in the courts based on the health insurance mandate.

Don’t get me wrong, I get the whole “states have the constitutional authority to take away your rights, the fed doesn’t” argument, but that doesn’t mean I’m going to agree that Romneycare was a good idea.  Perhaps Coulter is trying to set up the future conversations for the presumptive nominee.  But are most Americans going to be ok with the argument that it as ok for Romney to take away their rights and force them to buy health insurance because it was on a state level?  Personally, I’d like to see less government intrusion in my life on every level.  Coulter used to feel the same way.  What happened?

If Romney wants to win in 2012, he has to get his supporters to change their message.  Romney needs to start focusing on Obama and reassuring conservatives that he is in fact principally opposed to Obamacare and the health insurance mandate, not simply offering it pandering lip service.  And for goodness sakes, he has to stop making Newt supporters his enemies.  He’ll have quite enough enemies in the general election without turning off fellow conservatives.

Capitalism a Casualty of Campaign

What is happening to the Republican field?  It made some sense when Cain was attacked for being a businessman with no foreign policy experience and no political experience.  That was perhaps a fair shot at an outsider businessman candidate.

Then came the attacks on Newt for having Freddie Mac as a client.  Newt not only had Freddie as a client, but his firm made over a million dollars.  Suddenly, it was like Newt himself had caused the economic collapse.  Reasonable conservatives told me that this was insurmountable.  How could Newt, a high level business consultant, have Freddie Mac as a client?  His fellow candidates tried to make it sound like Newt was on their payroll.  Suddenly populism had overtaken the Republican party.

Then came the attacks on Romney for his time at Bain Capital.  Romney’s company created new businesses, reorganized and saved businesses, and occasionally tried to save businesses and failed.  As with any free American enterprise, Bain Capital sometimes downsized and let people go.  Romney’s opponents have seized on this, especially with the ignorant populist anti-wall street sentiment in the country today, and have tried to use this against Romney.  They have painted him as an out of touch, insanely rich “Mr. Burns” who would go in, take over small companies, and fire everyone just to make a buck.  Here’s an idea, how about a millionaire’s surtax on evil rich people like Romney?  Oops, we just became liberals.

I know, political rhetoric is political rhetoric.  You say whatever it takes to win.  But then came the really disappointing moment.  GOP rivals jumped on Romney’s statement that he likes to be able to fire people.  Romney was not saying that he likes to randomly fire people, or likes to fire employees like Bain Capital did.  Huntsman attacked Romney directly for the comment, while Newt released a video exploiting workers who had been fired as a result of Bain Capital’s work.  Romney was actually talking about the ability to not have to buy insurance, or to drop an insurance company that isn’t serving his needs.  But what does context matter in politics?  Shame on them for this line of attack.  You know it’s bad when you are attacking a moderate Republican, and even Ron Paul is standing up for the moderate.  In fact, my hat is off to Ron Paul for defending Romney against this dishonest line of attack.  Newt also eventually came to Romney’s defense about the misquote.

Newt at this point will likely lose Florida, which means he will lose the primary.  Up until this week, at least he had the opportunity to exit with his head held high.  Up to now he had run a very honest, positive campaign.  When he did go negative, it was with honesty.  His best shot at salvaging the honor in his campaign at this point is a humble apology for attacking Romney for being a capitalist.

One final note, may the best capitalist win.  Since when has populism won over conservatives?  Heck, what’s the point?  If Newt is evil for having Freddie Mac as a paying client and Romney is evil for what he did with Bain Capital, then we need to re-elect Obama.  Imagine if Trump had stayed in the race.

 

Editors note: correction from the originally posted article.  Newt did defend Romney against the attack based on his statement about firing insurance companies.  However Newt has attacked Romney for the jobs lost through Bain Capital.

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