Obama’s Automatic Tax Increases
Obama’s Automatic Tax Increases
President Obama wants to empower unelected bureaucrats to raise your taxes.
That’s the upshot of his plan to reduce the deficit. What he laid out last week was light on specifics, heavy on partisan rhetoric — and even heavier on ideas to increase taxes.
Obama did promise to reduce the federal deficit by $4 trillion over the next 12 years. Yet he won’t be accountable for enforcing most of these promised savings, because he won’t be president when most of them kick in.
His proposed “debt failsafe trigger”: “If, by 2014, our debt is not projected to fall as a share of the economy — or if Congress has failed to act — my plan will require us to come together and make up the additional savings with more spending cuts and more spending reductions in the tax code.” This idea would empower unelected officials to increase taxes during the budget process.
Cato’s Dan Mitchell describes the Obama idea as follows: “If politicians in Washington spend too much and cause more red ink, which happens on a routine basis, Obama wants a provision that automatically would raise taxes on the American people.” Of course, the president is smart enough to delay the automatic tax increases until after the next presidential election. He knows that increasing taxes is political death to presidential candidates.
The People’s Budget
Congressional “progressives” have rolled out their own budget. Reps. Raul Grijalva (D-Ariz.) and Keith Ellison (D-Minn.) have produced a plan that drives spending through the roof, taxes every possible economic activity, expands ObamaCare and dismantles our military. The plan would send members of the Army, Navy, Air Force and Marines into the unemployment lines while lining the pockets of unions with trillions in new government contracts.
If you thought President Obama’s policies were hostile to business, get a load of the People’s Budget. It would kill the Bush tax cuts, muscle through a massive increase in estate taxes, tax job creators at high rates, attack capital gains/dividends, limit deductions for the hated rich, impose a surtax on banks (because they have lots of money), tax Wall Street “speculators,” increase taxes on energy producers, and tax all corporate foreign earnings.
In short, if you believe in capitalism, and the People’s Budget gets signed into law, you may want to pack up your stuff and flee to a country that isn’t hostile to the idea of free enterprise. And you thought socialism was dead.
Sen. Daniel Akaka (D-Hawaii) is at it again. He has introduced S. 675, the Native Hawaiian Government Reorganization Act of 2011 and passed it out of the Senate Indian Affairs Committee without any hearings.
This legislation is an attempt to set up an unconstitutional race-based government to receive federal money and create programs to benefit people who fit a racial classification of “Native Hawaiian.” Sen. Akaka rationalized it thus: “two decades ago, the United States apologized to Native Hawaiians for its participation in the overthrow of the Kingdom of Hawaii and committed to a process of reconciliation.”
The problem is that a good percentage of Native Hawaiians don’t want the U.S. government designating Native Hawaiian leaders to enrich themselves in the name of “reconciliation.” And let’s not forget that setting up a race-based government entity would violate the Constitution.
Rep. Joe Pitts (R-Penn.) was able to pass legislation, H.R. 1217, in the House to repeal some mandatory funding for ObamaCare on a 236-189 vote. The bill eliminates what Pitts calls an “ObamaCare slush fund” for $17.8 billion in spending over at the Department of Health and Human Services. The president has pledged to veto this idea.
Said Pitts: “This is no time to allow bureaucrats to dole out taxpayer money at will.” The Pitts’ bill would at least chip away at a law needs to be repealed altogether.
Corporate Welfare for Rum Producers
Some tea party groups are attacking the Rum Cover Over Program, which takes federal excise taxes collected from rum production and returns the revenues to the territories that produce rum with little to no strings attached. This redistribution of wealth — which would cost taxpayers about $7 billion over the next 10 years, according to tea party groups — should be ended.