Payroll Tax Cut Details

Posted on December 20, 2011 | 6 comments

So, I get the hinge.  The Democrats in the Senate won a vote to extend the payroll tax cut for 2 months.  The House GOP doesn’t like that bill and wants to vote on one of their own.  They want the tax cut to be longer than 2 months, more like a year:

The fourth-ranking House Republican argued Tuesday that a two-month extension of the payroll tax cut “would do more harm than good.”

Now, in so far as we can reduce the tax burden for a s long as we can, I resonate with the good Mr. Hensarling, Rep from Texas.  What I don’t understand however, is why even such a relatively short extension of a year is thought to be THAT much better.  If you’re gonna end the tax, end the tax.  A temporary reduction is just as random and unpredictable if it’s 2 months or 12.

I’m a little disappointed in both parties over this one.

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Posted in Economy, Politics: National

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Do Democrats Lie?

Posted on December 20, 2011 | 4 comments

Most certainly, however, I am sure they are not alone.  But I can’t blame ’em.  Really.  They’re just a victim of the tribalism going on in Washington.

So, specifically, Democrats labelled Paul Ryan’s Medicare plan as one that would “end Medicare as we know it.”  And they defend this statement thusly:

“The very definition of the Medicare program is a national health insurance program for seniors which House Republicans would abolish under their budget,” the Democratic Congressional Campaign Committee said in an earlier rebuttal of Politifact’s analysis of the Ryan plan.

And additionally:

“It seems foolish to have to parse the meaning of the word ‘end,’ but if there’s a program, and it’s replaced with a different program, proponents brought an end to the original program,” liberal blogger Steve Benen wrote at the Washington Monthly. “That’s what the verb means.”

Okay, but the silliness is obvious.  Using this logic any time any program is changed, even by the slightest bit, the old existing plan would “end” and the new plan, complete with all it’s new language, would be the new plan.

Wanna change the test scoring system in public education?  Well, go ahead, but be aware that you are “ending public education as we know it”.

Wanna increase the speed limit on I-40 from 60 to 65?  Okay, but be prepared to defend how you are “ending the federal interstate program as we know it.”

Absurd, truly.

And I am not alone.  Politifact has named the Democrats charge the “Lie of the Year”.

Republicans muscled a budget through the House of Representatives in April that they said would take an important step toward reducing the federal deficit. Introduced by U.S. Rep. Paul Ryan of Wisconsin, the plan kept Medicare intact for people 55 or older, but dramatically changed the program for everyone else by privatizing it and providing government subsidies.

Democrats pounced. Just four days after the party-line vote, the Democratic Congressional Campaign Committee released a Web ad that said seniors will have to pay $12,500 more for health care “because Republicans voted to end Medicare.”

Rep. Steve Israel of New York, head of the DCCC, appeared on cable news shows and declared that Republicans voted to “terminate Medicare.” A Web video from the Agenda Project, a liberal group, said the plan would leave the country “without Medicare” and showed a Ryan look-alike pushing an old woman in a wheelchair off a cliff. And just last month, House Minority Leader Nancy Pelosi sent a fundraising appeal that said: “House Republicans’ vote to end Medicare is a shameful act of betrayal.”

After two years of being pounded by Republicans with often false charges about the 2010 health care law, the Democrats were turning the tables.

PolitiFact debunked the Medicare charge in nine separate fact-checks rated False or Pants on Fire, most often in attacks leveled against Republican House members.

Now, PolitiFact has chosen the Democrats’ claim as the 2011 Lie of the Year.

Go read the whole thing.  There are worse things to do on December 20th.

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Posted in Government, Health Care, Politics: National

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Hello world!

Posted on December 20, 2011 | 1 comment

Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!

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Greed, Capitalism And Charity

Posted on December 19, 2011 | 2 comments

In the same way that the Left characterizes climate skeptics as loons, educational reformers as child haters and minimum wage advocates as haters of the poor, the Left characterizes free-market capitalists as greedy bastards.  Any support shown for a system that rewards the successful is immediately attacked as shilling for the rich.

Wanna reduce taxes on corporations because corporations will move to where there are lower taxes?  You support corporate welfare.  Wanna create laws that allow businesses to hire, and then fire, the most qualified and least productive?  Then you don’t care about the poor and disenfranchised.

With all the tribalism in today’s politics you can’t get the concept through the noise.  You’re unable to penetrate the distinction between “my side” and “your side”.  It’s more important to win than it is to create a viable path forward.  I see this often in corporate America.  I see competing managers championing their idea to the detriment of the team.  I feel I’m witnessing the same thing here in our politicians.  It’s more important to “win the debate” than to actually be right.

Because of this, because the Left vilifies all those who want to create a system that rewards the producers while removing the ability to destroy value from the ineffective managers, we will never be able to have a reasonable debate that typically successful people are reasonable people who, as it turns out, love other people:

The donor whose $350 million gift will be critical in building Cornell University’s new high-tech graduate school on Roosevelt Island is Atlantic Philanthropies, whose founder, Charles F. Feeney, is a Cornell alumnus who made billions of dollars through the Duty Free Shoppers Group.

Mr. Feeney, 80, has spent much of the last three decades giving away his fortune, with large gifts to universities all over the world and an unusual degree of anonymity. Cornell officials revealed in 2007 that he had given some $600 million to the university over the years, yet nothing on its Ithaca campus — where he graduated from the School of Hotel Management in 1956 — bears Mr. Feeney’s name.

The $350 million gift, the largest in the university’s history, was announced on Friday, but the donor was not named. Officials at Atlantic Philanthropies confirmed on Monday evening that it was Mr. Feeney, a native of Elizabeth, N.J., who is known for his frugality — he flies coach, owns neither a home nor a car, and wears a $15 watch — as well as his philanthropic generosity, particularly to medical research.

It turns out that capital, in the hands of the skilled, produces significant value to all the world.  And, as a reward, the capitalist acquires significant wealth as well.  And then, in the end, he often gives that wealth away.  As if to say, “I have come, I have made a difference and now it is time for me to give it all back.”

 

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Posted in Economics, Life

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Democrats Discover What A Tax Increase Is

Posted on December 18, 2011 | 2 comments

A long time ago President Bush lowered the marginal federal tax rate.  However, he was only able to do it through reconciliation.  This meant, of course, that they were not permanent; they would have to expire.  Since then we’ve been engaged in class warfare as the Left screams to reset the rate for the richest 1%.  As Republicans work to prevent the tax increase, all the rage from the Democrats was that this wasn’t a tax hike, it was simply allowing the tax to go back to where it previously was.

Now, in an admittedly bizarre twist of fate, we have the Democrats bemoaning the fact if the the House doesn’t pass the most recent tax bill, it would be a tax hike on the middle class:

“The bipartisan compromise passed in the Senate yesterday received 89 votes, including 39 Republican votes, and Speaker Boehner himself just yesterday called it a ‘good deal’ and a ‘victory,’ ” the White House communications director, Dan Pfeiffer, said in a statement.

“If House Republicans refuse to pass this bipartisan bill to extend the payroll tax cut,” Mr. Pfeiffer said, “there will be a significant tax increase on 160 million hard-working Americans in 13 days that would damage the economy and job growth.”

As I mentioned, this is bizarro world and I happen to agree with the Democrats.  If the bill fails and the payroll taxes are reset, it would represent a tax hike on America.

I’m just glad that the Democrats finally agree with me.

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Posted in Government, Politics: National

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Arrests At Occupy Raleigh

Posted on December 18, 2011 | Leave a comment

Occupy Raleigh welcomed a sister Occupy group today to the City of Oaks; Walkupy.  Together, the two groups planned to march from the Capital to the Occupy Raleigh camp some blocks away.  During the march, 6 or 7 members of Walkupy were arrested:

RALEIGH — Six protesters taking part in an anti-Wall Street march were arrested as they spilled over the sidewalks and into downtown streets late Saturday afternoon.

The group of up to 50 protesters attracted police attention as they chanted and wove through several streets. As the group marched west on Hillsborough Street, police told them to stay on the sidewalks, according to a statement Raleigh police issued tonight.

Police said despite being ordered several times to disperse, some of the group refused. Police said they warned protesters they would be arrested if they didn’t comply.

More and more the Occupy movement is proving itself to be nothing more than some lefty hippie left-over protest group.  More interested in “self” than in goals.  More proud of being arrested than in generating results.

Too bad really  Too bad.

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Posted in Idiots on Parade, Lobby/PAC, Politics: National, Politics: North Carolina

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Free Market Fail

Posted on December 17, 2011 | Leave a comment

The market isn’t perfect.  It’s a system kinda predicated on failures.  As capital in the hands of the incompetent isn’t used to it’s potential, that capital will flow to it’s best use.

However, some of the failures are mind boggling.

ANDERSLOV, Sweden — Several blond residents of a southern Swedish town were left with green hair after an unusual reaction between the water supply and the shower system of a number of new homes.

Authorities began investigating when a number of inhabitants of Anderslov complained that their hair suddenly turned green, Swedish newspaper Skanskan reported.

They tested the water supply in several homes to see if there was a high level of copper — known to turn hair green — but recorded only normal levels of the metal.

However, when hot water was left in the houses’ water systems overnight, the amount of copper in it was found to increase to five or 10 times the normal amount.

Investigators concluded that the hot water must have peeled copper from the pipes and water heaters. The copper then was absorbed into the water, causing the shock hair color change when residents showered.

The problem was found to be worst in new homes, where pipes lacked coatings.

Now, we can get into the benefits of state mandated housing regulations or private managed regulating agencies.  Either way, the solution to the copper in the water problem can’t be this:

Residents were told wash their hair in cold water or live in an older house to avoid the problem.

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Posted in Economy, Government

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Democrats and Republicans: How They Are the Same

Posted on December 17, 2011 | Leave a comment

Last night I spent some time over at alan.com.  Alan Colmes is a liberal commentator on Fox.  He has his own radio show that I enjoy and his blog and chat room are both exceptional.  In fact, it’s because of Alan that I started TarheelRed.  Anyway, so, I was chattin’ up the locals and, as you would expect, found myself in the minority on many topics.

We discussed taxes, education, labor, Presidential politics and even Iran.  The banter was back and forth, very quick and not unpleasant.  It’s hard and frustrating, to be sure, being the only Voice of Reason in a room full of Liberals, but hey, good times.

As I left I had two takeaways:

  1. Democrats and Republicans are very nearly the same.
  2. Very few people understand Liberty

I think that all people, from the Left and the Right, want good things to happen to people.  I think all people wanna help people when they need that help.  I think all people feel that everyone should contribute to society.  I think we’re all on agreement there.  And it goes even further.

Both Republicans and Democrats want to coerce man to cast aside their wicked ways.

The vehicle for the Republicans is Religion.  Via faith and God, the Right attempts to coerce people into doing good things.  The vehicle for the Democrats is the State.  Via laws and guns, the Left attempts to coerce people into doing good things.

We were discussing education.  I tried to make the case that given we ALL want a great educational system, up to and including college, we should work towards building a system that works.  I was immediately accused of wanting to privatize education.  When I admitted that would be preferable I also ceded the argument for the sake of discussion and said we could keep it public.  Even in a public setting, we have room for reform.  For example, disband the unions and allow administrations to hire and fire based on merit.  Provide bonuses and pay increases based on performance.

The response?

I hate teachers and don’t wanna educate the poor.  Why don’t I want the whole country to be educated?  It’s for my own good.  Even evil capitalists want and need educated children and adults.

The premise?

People, left to their own devices, will not find it within themselves to provide an educational experience that satisfies the needs of the society.  And so the Leftist enacts laws, the Conservative pulls on faith, all in an attempt to coerce people into doing what is deemed to be in their self interest.

The folks felt that even college education ought to be free.

I asked them if my neighbor to the west was unable to provide college tuition for his daughter, would I be within my rights to knock on the door of my neighbor to the east and demand money and time from him, by force of gun or sword, in order to provide tuition for my neighbor’s daughter.

They laughed and considered me extreme.

I then asked what real difference is there in THAT scenario and the one where a bunch of people vote to take my eastern neighbors money via the state.  I mentioned that they had a confused sense of Liberty.

Which brings me to point number 2 and perhaps the quote of the year:

Liberty Schmiberty

Sadly, I had to acknowledge that neither the Democrat nor the Republican are interested in Liberty.  Rather, only forcing their brand of charity through their approved vehicle of coercion.

Liberty Schmiberty indeed.

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Posted in Faith, Government, Idiots on Parade, Liberty

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Fannie And Freddie CEOs Charged With Fraud

Posted on December 16, 2011 | Leave a comment

I have long held the belief that Fannie and Freddie were leading charge when it came to the housing boom and then bust.  Certainly there were other actors with fault viably assigned, but Fannie and Freddie were the agencies that led the way.

So hearing that they are being charged with fraud is a bit of vindication:

The Securities and Exchange Commission today brought civil fraud charges against six former top executives at Fannie Mae and Freddie Mac, saying they misled the government and taxpayers about risky subprime loans the mortgage giants held when the housing bubble bust.

And for what are they accused of:

“Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, SEC’s enforcement director. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk.”

And to what extent?

According to the lawsuit, Fannie told investors in 2007 that it had roughly $4.8 billion worth of subprime loans on its books, or just 0.2 percent of its portfolio. The SEC says that Fannie actually had about $43 billion worth of products targeted to borrowers with weak credit, or 11 percent of its holdings.

Mudd told a congressional panel in March 2007 that Fannie’s subprime business represented less than “2 percent of our book.” He also said the company held subprime mortgages “very carefully.”

Freddie told investors in 2006 that it held between $2 billion and $6 billion of subprime mortgages on its books. The SEC says its holdings were actually closer to $141 billion, or 10 percent of its portfolio in 2006, and $244 billion, or 14 percent, by 2008.

In a May 2007 speech in New York, Syron said Freddie had “basically no subprime exposure,” according to the suit.

Yikes.

And how big of a player are they in the market today?

Fannie and Freddie buy home loans from banks and other lenders, package them into bonds with a guarantee against default and then sell them to investors around the world. The two own or guarantee about half of U.S. mortgages, or nearly 31 million loans.

Half.  The two agencies own or guarantee HALF of ALL the mortgages in the US.

And they lied.

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Posted in Economy, Government

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Obama And His Anti Business Administration

Posted on December 16, 2011 | 2 comments

Add another one to the mix:

The Federal Trade Commission has informed Minneapolis-based manufacturer Graco that it is challenging the the company’s planned acquisition of a unit of Illinois Tool Works, saying the proposed deal would hurt competition and lead to higher prices.

The agency said it is seeking to maintain competition in markets for key industrial finishing equipment and has issued an administrative complaint against Graco, Illinois Tool Works and ITW Finishing seeking to stop the proposed $650 million cash deal.

Graco announced the proposed acquisition last April. The companies make industrial liquid finishing equipment, which is used to apply finishes to manufactured products like cars, wood cabinets and appliances.

The FTC said the proposed deal would lead to reduced innovation for the North American manufacturers who rely on this equipment.

“Liquid finishing equipment is critical to manufacturers,” Richard Feinstein, director of the FTC’s Bureau of Competition, said in a release. Only three significant competitors sell and service it in North America, with Graco and ITW together dominating this field.”

Obama says that he loves capitalism.  He acts like he doesn’t.

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Posted in Economy, Government, Politics: National

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