Tag Archives: Deficit

FL senator Marco Rubio: “We need more taxpayers, not more taxes”

Florida Senator Marco Rubio
Florida Senator Marco Rubio

If there is anyone I like almost as much as Michele Bachmann, it’s Marco Rubio. And boy, can this guy do an interview.

On the Sean Hannity show: (7 minutes)

And on the Rush Limbaugh radio show: (11 minutes)

He’s William Lane Craig-esque. He just talks about the issues without one hem or haw. Not an uh or an ah to be heard. It’s uncanny. Hmmn. Look at that picture up there. He looks very intense. Do you think he might be some sort of conservative super-android designed by the U.S. Military in a secret base under a mountain in Colorado? I’m not sure.

I actually heard him interviewed on the Hugh Hewitt show on Tuesday night. Hugh played the interview back-to-back in two consecutive hours, and then his producer Duane Patterson posted the full transcript. This one was the best interview of all. Hugh does a great interview, and he was blown away by Marco Rubio.

Excerpt:

HH: Now the President is betting, obviously, that he can turn a conservative message into a toxic one for 2012. Your old colleague from the Florida House, Adam Hasner, is running for Senate down there, a lot like Josh Mandel in Ohio, and Ted Cruz in Texas, they’re running as real conservatives with very much a Rubio-like message from 2010. Will that work in this environment of demagoguery from the White House?

MR: Yeah, it will work, because the common sense of the American people is powerful, and I think that too many people here in Washington walk around thinking well, we can spin it this way, or we can use our allies in the media to confuse people and make them not believe their own eyes. But the truth is that we’re way past that today. The ability of people to get information from multiple sources in real time, the ability of us to communicate directly to our constituents, to go on programs such as yours and talk about the reality of what we’re facing, is something that wasn’t around not that long ago, and it’s incumbent upon us who feel passionate about this to go out there and make clear to the people what our choices are. And this is not a complicated issue. It’s very, very simple. The United States spends more money than it takes in, and it’s not generating enough revenue for its government to pay down the debt. So we have to figure out how do we stop spending more money than we take in? We need a balanced budget amendment. We need a spending cap. And we need real reductions in spending starting right now. And what do we do to get more revenue in the hands of government so it can pay down its debt and not grow its government? Well, you’re not going to do that through tax increases. You’re going to do that through new taxpayers, that is getting people back to work, getting people hired and working, so these people will pay taxes, and then we can use that revenue to pay down the debt. That’s what we need. And you’re not going to create new taxpayers, you’re not going to create economic growth and jobs in America if you’re running around threatening to raise taxes.

HH: Do you think the President understands the underlying economics, Senator Rubio, and is just demagoguing it? Or is he fundamentally misinformed about how capitalism works?

MR: I think there are three things going on here. Number one, I think he’s a prisoner to extremist elements in his own base who not only, they don’t care that the taxes don’t solve any problems. They want their pound of flesh. They want to punish somebody, they want class warfare. That’s what they believe in. And this is their chance to do it, and they’re putting pressure on him to do that. So I think that’s his first problem. His second problem is that I think he’s surrounded by a bunch of people who philosophically do not believe fully in the free enterprise system, and in fact, they’d like to see government play a greater role. And they see this downturn in the economy, and crisis such as this, as an opportunity to exert more government involvement in our economy. And that’s the second problem. And his third problem is a level of incompetence. I think the President, quite frankly, is not up to the job. And if you look at every measure of quality of life in America today, unemployment is higher. The debt is higher. The only thing lower is the value of your home. If you look at every measurable economic thing in America today, they are all worse than they were the day he took over. Two and a half years into his presidency, things continue to get worse, not better, and it’s because the President is incompetent in his job as president. He is not, he doesn’t know what he’s doing.

I think he’s going to be President one day. And I agree with him on Obama’s competence. The man is not qualified in any way, shape or form to run a lemonade stand, much less to be the President of the most powerful country on the planet. I would like to see a Marco Rubio/Allen West ticket in 2020, after the two Michele Bachmann terms are done.

 

Taxing the rich at 100% doesn’t cover Obama’s 1.6 trillion dollar deficit

An amazing, must-read article from Arthur C. Brooks, president of the American Enterprise Institute. He writes about the national debt problem.

Excerpt:

The practical answer to this problem involves common sense. What do most of America’s families do when they find they are overspending? They don’t send the kids out to get part-time jobs in order to increase family revenues–they cut back on their spending. Why? Because that’s what works to solve the problem.

The government can learn from families. In fact, the data show that when countries are trying to find their way out of a debt crisis, the more they rely on tax increases as opposed to spending cuts, the more likely they are to fail. My colleagues Kevin Hassett, Andrew Biggs, and Matt Jensen studied 21 developed countries that have attempted fiscal consolidation over the last 37 years. Some succeeded and returned to economic health; -others failed.

On average, failed attempts to close budget gaps relied 53 percent on tax increases and 47 percent on spending cuts. Successful consolidations averaged 85 percent spending cuts and 15 percent tax increases. Some of the most successful financial comebacks–like Finland’s in the late 1990s–involved more than 100 percent spending cuts, so that taxes could be lowered. The spending cuts by the successful countries centered on entitlements and government personnel.

Now let’s look at the moral argument against raising taxes. Why does the president want to increase America’s tax burden? You may think it’s just a way to increase revenues and reduce the deficit. But even the president knows he can’t solve the fiscal crisis by helping himself to bigger and bigger chunks of the income of America’s most successful people. Even if individuals earning more than $200,000 were taxed at a 100 percent marginal rate–and we confiscated their passports so they could not flee–the take would come to $1.27 trillion, or just 77 percent of this year’s deficit.

For the administration, it’s not about the money–as we have heard again and again, it’s about “fairness.” The president believes that we will be a better nation if we redistribute more money from those who have more to those who have less. How much more do we need to redistribute until our system is fair?

As you ponder this question, remember the facts: The wealthiest 5 percent of Americans already account for 59 percent of federal income taxes. Nearly half of our citizens pay no federal income taxes at all–yet two-thirds of us believe that everybody should at least pay something, even if just to remind ourselves that government isn’t free. The Tax Foundation reports that the percentage of Americans who are net takers from the tax system is nearing 70 percent.

Arthur C. Brooks is an expert in making moral arguments for the free market. He is a Christian, and has debated against Jim Wallis on Christianity and economics. I think we have to take his advice (elsewhere in the article) where

Green energy firm run by Obama fundraiser gets $535M loan guarantee

Obama Unemployment Stimulus Graph
Obama Unemployment Stimulus Graph

From the Daily Caller. (H/T Doug Ross)

Excerpt:

Solyndra, Inc. was supposed to have showcased the effectiveness of the Obama administration’s stimulus and green jobs initiatives, but instead it has become the center of congressional attention for waste, fraud and abuse of such programs.

According to a Feb. 17 letter signed by Energy and Commerce Committee Chairman Fred Upton, Michigan Republican, and Oversight Subcommittee Chairman Cliff Stearns, Florida Republican, to Energy Secretary Steven Chu, the Fremont, Calif.-based solar panel manufacturer should never have received a $535 million loan guarantee from the stimulus.*

The company became the first recipient of an Energy Department loan guarantee under the stimulus in March 2009, which was intended to “finance construction of the first phase of the company’s new manufacturing facility” for photovoltaic solar panels.

The Energy Department estimated in a March 20, 2009 press release that the loan guarantee would create 3,000 construction jobs and a further 1,000 jobs after the plant opened.

And President Barack Obama and Vice President Joseph Biden each personally showcased Solyndra as an example of how stimulus dollars were at work creating jobs, during appearances at the company over the course of the following year.

Biden personally announced the closure of Solyndra’s $535 million loan guarantee in a Sept. 9, 2009 speech, delivered via closed-circuit television, on the occasion of the groundbreaking of the plant.

The vice president justified the federal government’s investment in Solyndra in front of employees and other dignitaries, including Secretary Chu and former Calif. Gov. Arnold Schwartzenegger, saying the jobs the company intended to create would “serve as a foundation for a stronger American economy.”

“These jobs are the jobs that are going to define the 21st century that will allow America to compete and to lead like we did in the 20th century,” Biden said.

According to Biden’s speech, the $535 million loan guarantee was a smaller part of the $30 billion of stimulus money the administration planned to spend as part of its Green Jobs Initiative.

Obama made similar claims in a May 26, 2010 speech at the plant, but the 1,000 jobs he and Biden touted in their respective speeches failed to materialize.

Instead, Solyndra announced on Nov. 3 it planned to postpone expanding the plant, which put the taxpayers on the hook to the tune of $390.5 million taxpayers**, or 73 percent of the total loan guarantee, according to the Wall Street Journal.

It also announced that it no longer planned to hire the 1,000 workers that Obama and Biden had touted in their speeches and that it planned to close one of its older factories and planned to lay-off 135 temporary or contract workers and 40 full-time employees.

A closer look at the company shows it has never turned a profit since it was founded in 2005, according to its Securities and Exchange Commission (SEC) filings.

And Solyndra’s auditor declared that “the company has suffered recurring losses, negative cash flows since inception and has a net stockholders’ deficit that, among other factors, [that] raise substantial doubt about its ability to continue as a growing concern” in a March 2010 amendment to its SEC registration statement.

“While we understand the purpose of the Loan Guarantee Program is to help private companies engaging in clean energy products to obtain financing by providing loan guarantees, subsequent events raise questions about Solyndra was the right candidate to receive a loan guarantee in excess of half a billion dollars,” Upton and Stearns wrote.

A June 2010 Wall Street Journal report indicating that Solyndra’s majority owner, Oklahoma billionaire George Kaiser, was a major fundraiser for the 2008 Obama-Biden campaign has stimulus opponents such as Citizens Against Government Waste crying foul.

What did we get for spending nearly a trillion dollars on stimulus? We got 9% unemployment. But Obama’s political cronies got a big raise.

Economics in One Lesson

Perhaps it is time to review Henry Hazlitt’s Economics in One Lesson, chapter 4, entitled “Public Works Mean Taxes”.

Excerpt:

Therefore, for every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, television technicians, clothing workers, farmers.

And consider Chapter 5 as well, entitled “Taxes Discourage Production”.

In our modern world there is never the same percentage of income tax levied on everybody. The great burden of income taxes is imposed on a minor percentage of the nation’s income; and these income taxes have to be supplemented by taxes of other kinds. These taxes inevitably affect the actions and incentives of those from whom they are taken. When a corporation loses a hundred cents of every dollar it loses, and is permitted to keep only fifty-two cents of every dollar it gains, and when it cannot adequately offset its years of losses against its years of gains, its policies are affected. It does not expand its operations, or it expands only those attended with a minimum of risk. People who recognize this situation are deterred from starting new enterprises. Thus old employers do not give more employment, or not as much more as they might have; and others decide not to become employers at all. Improved machinery and better-equipped factories come into existence much more slowly than they otherwise would. The result in the long run is that consumers are prevented from getting better and cheaper products to the extent that they otherwise would, and that real wages are held down, compared with what they might have been.

There is a similar effect when personal incomes are taxed 50, 60 or 70 percent. People begin to ask themselves why they should work six, eight or nine months of the entire year for the government, and only six, four or three months for themselves and their families. If they lose the whole dollar when they lose, but can keep only a fraction of it when they win, they decide that it is foolish to take risks with their capital. In addition, the capital available for risk-taking itself shrinks enormously. It is being taxed away before it can be accumulated. In brief, capital to provide new private jobs is first prevented from coming into existence, and the part that does come into existence is then discouraged from starting new enterprises. The government spenders create the very problem of unemployment that they profess to solve.

George W. Bush cut taxes in his first term and created 1 million NEW JOBS. Obama transfered BILLIONS from the private sector to the public sector, where government waste is rampant. Government spending is a job killer. Obama might be a nice man, but he is just wrong on economics and business. What we should have done is elected someone who doesn’t repeat the mistakes made in other countries, like in Japan where massive government spending failed to stimulate the economy. And we shouldn’t enact single-payer health care, because it’s not working in Canada. The wait times to see doctors in Canada are increasing. We should only imitate the successes of other countries, like the free trade agreements in Chile or the flat tax in Lithuania or the private retirement accounts in Chile or the low tax rates of Hong Kong. We have to decide, as a nation, whether we want jobs and prosperity, or rhetoric and feelings.