Tag Archives: Secularism

Obama’s federal budget: thinking beyond stage one

House Republican Leader John Boehner
House Republican Leader John Boehner

Everyone who reads Thomas Sowell knows that the most important question to ask when talking about any economic proposal is “And Then What Happens?” That was the point of his one-two punch of introductory books on economics, “Basic Economics: A Citizen’s Guide to the Economy” and “Applied Economics: Thinking Beyond Stage One”. Don’t examine the intentions of the proposal. Examine the incentives it creates.

But this idea goes back even earlier to Henry Hazlitt, who wrote about it in “Economics in One Lesson”. (The link goes to a statement of the “one lesson”)

…the whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence:

The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

Well, what are the long-term effects of Obama’s federal budget, for all groups?

Congressman John Boehner has a breakdown of some of the budget numbers on his blog.

The President’s budget calls for $1.4 trillion in new taxes that will affect every American.  There’s a $646 billion “cap and trade” energy tax; a $636 billion tax on income and small businesses; new  taxes on investors by raising capital gains and dividend rates; a resurrection of the death tax; and a reduction in charitable deductions which will result in $4 billion less in donations each year to charities across America.

But it’s worse than that. A while back, I wrote about how Obama wanted to discriminate against religious schools by denying them renovation funds. In the budget, he continues his anti-religious trend by de-funding private charities. This is the part that Christians who voted for Obama need to pay attention to, because this matters to us.

Boehner notes:

The proposed reduction in charitable deductions is especially troubling, since it would hurt charities at a time when American families are struggling and in need of assistance.

But remember, when government expands, the state becomes more secular. The capabilities and influence of private religious groups decreases as the state de-funds them and takes over their duties. Instead of people depending on their neighbors’ charity, they now depend on the state. Instead of letting workers decide where to give charity, workers are forced to fund secular government programs.

Boehner cites this Wall Street Journal piece:

According to the Center on Philanthropy at Indiana University, total itemized contributions from the highest income households would have dropped 4.8% — or $3.87 billion — in 2006 if the Obama policy had been in place.  That year, Americans gave $186.6 billion to charity, more than 40% from those in the highest tax bracket.  A back of the envelope calculation by the Tax Policy Center, a left-of-center think tank, estimates the Obama plan will reduce annual giving by 2%, or some $9 billion.

Before Obama’s budget, you might have given charity to a Crisis Pregnancy Center. Now that money could be spent by the government on coerced abortions abroad. Before Obama’s budget, you might have given charity to support William Lane Craig’s web site Reasonable Faith. Now that money could be spent destroying human embryos. Elections matter.

Representative Mike Pence
Representative Mike Pence

Congressman Mike Pence goes over the budget numbers on his blog.

The following is a summary of the Administration’s plans to increase taxes by $1.4 trillion over the next ten years.

Taxing Small Businesses: In 2010, the President’s budget will increase taxes on all taxpayers that earn more than $250,000. The majority of the burden for this $637 billion tax increase will be borne by small businesses that pay taxes as individuals. Small businesses create 60 to 80 percent of all new jobs in America. These new taxes will stifle job creation and economic growth in the midst of a recession.

Taxing Energy Consumers: The budget also proposes to raise taxes by $646 billion on consumers of oil, coal, and natural gas through a complicated “cap and tax” program that will increase the cost of energy for every American. These carbon-based fuels provide about 85% of all energy output in the U.S. This new tax will increase the cost of energy by up to $3,128 per household annually, taking more money out of the pockets of hard working families struggling to pay their bills each month.

Taxing Investors Part I: Under the President’s budget, taxes on capital gains and dividends would increase from 15 to 20 percent, increasing taxes on investors by $338 billion over ten years. These taxes would directly affect investors and shareholders, including many 401k holders and pension funds, most impacted by the declining stock market and would further discourage investments during a time when new investments are essential to jumpstarting our economy.

Taxing Charitable Giving: The budget also caps the value of itemized deductions at 28% for those with an income over $250,000 (married) and $200,000 (single), which will reduce charitable giving by $9 billion a year. The current economic crisis has severely damaged charitable organization’s ability to provide for people who are most affected by the recession, and the budget would leave these charities with at least a $9 billion deficit.

Taxing Death: The budget reinstates the death tax scheduled to be fully repealed in 2010. According to the Joint Committee on Taxation, the death tax has “broad economic effects” and one study has found that the death tax is responsible for lowering overall employment by 1.5 million jobs.

Taxing Investors Part II: The budget would more than double taxes on carried interest, increasing taxes up from the capital gains rate (15%) to the income tax rate (35%). Carried interest is interest gained on profits from investments and is generally used to pay investment fund managers based on the fund’s performance for investors. This tax hike is yet another attack on profit, private equities, and investments in the middle of a recession.

High taxes and big spending is not good for business, and therefore not good for job growth. I predict double-digit unemployment (around 12%) by year’s end as a result of this socialist budget.

Already, Gateway Pundit is reporting that Caterpillar has laid off 2,454 employees, with more layoffs on the way. Hot Air has video on the layoffs here: Obama saying that his bailout will reduce layoffs, and the CEO saying that the bailout will not prevent layoffs.

Ooops.

Why Obama’s big government socialism leads to secularism

I have been browsing on a few forums, including forums that discuss Christian apologetics. Imagine my surprise when I encountered pro-Obama, pro-socialism statements by people who are supposed to be informed about these issues.

Well, I found an article over at Mercator Net, (an Australian web site), which might be useful for Christians who are sympathetic with Obama’s pacifism, redistribution of wealth and creeping fascism. I want to argue that his policies are inconsistent with Christianity.

First of all, the article notes that Obama did gain a significant number of votes  from religious Christians.

In 2008, according to CNN exit polls, Obama won forty-three percent of the presidential vote among voters who attend religious services once a week or more, up from Senator John Kerry’s thirty-nine percent in 2004. Obama did especially well with Black and Latino believers. But he also made real inroads among traditional white Catholics, according to a recent article by John Green in First Things.

The article describes Obama’s spending, (which I discussed here), and then comments on the significance of that spending for religious institutions, like churches and charities.

To fund his bold efforts to revive the American economy and expand the welfare state, Obama is proposing to spend a staggering $3.6 trillion in the 2010 fiscal year. Obama’s revolutionary agenda would push federal, state, and local spending to approximately 40 percent of Gross Domestic Product, up from about 33 percent in 2000. It would also put the size of government in the United States within reach of Europe, where government spending currently makes up 46 percent of GDP.

Why is this significant for the vitality of religion in America? A recent study of 33 countries around the world by Anthony Gill and Erik Lundsgaarde, political scientists at the University of Washington, indicates that there is an inverse relationship between state welfare spending and religiosity. Specifically, they found that countries with larger welfare states had markedly lower levels of religious attendance, had higher rates of citizens indicating no religious affiliation whatsoever, and their people took less comfort in religion in general. In their words, “Countries with higher levels of per capita welfare have a proclivity for less religious participation and tend to have higher percentages of non-religious individuals.”

The article goes on to explain the chain of casusation from big government to secularization. Read the whole thing.

But this should be no surprise when you recall Nobel prize winning economist F. A. Hayek’s thesis in his landmark book “The Road to Serfdom”. His thesis is that the natural endpoint to all systems of government that control the means of production is fascism.

Fascism is a left-wing ideology, in which the state substitutes its own values, meanings and purposes for the values, meanings and purposes of individuals. There is no such thing as fascism on the right, because people on the right are free market capitalists who prefer small government and individual liberty.

To see how fascism destroys individual liberty and freedom of conscience, consider:

  • Obama’s plan to force hospital workers to perform abortions against their conscience
  • Obama’s forcing of taxpayers to pay for abortions here and abroad against their conscience
  • Obama’s forcing of taxpayers to pay for embryonic stem cell research against their conscience
  • Obama’s forcing of students to attend government run schools instead of private schools of their choice
  • Obama’s discrimination against religious schools in his spendulus bill
  • Obama’s plan to force some workers to join unions against their will and fun left-wing union political activism against their will
  • Obama’s forcing individuals to let Washington run their health-care

I could go on. And on. And on and on and on. But the point is that electing a socialist put us on the road to fascism. As IBD notes, socialists want to force-feed (podcast audio) their worldview onto an unwilling populace by any means – from government-run schools to news media.

I think that Christians need to do a much better job of understanding how our religious liberty hangs on small government and the free market. And remember: this crisis that Obama is “fixing”: it’s the Democrats who caused it, while Republicans tried to stop it.

Democrats vote to discriminate against students of faith

Did you know that Obama’s massive stimulus bill contains a provision that “prohibits renovation money for schools that allow religious groups to meet on campus”? Jay Sekulow of the ACLJ describes the provision here. According to this Fox News story, Senator James “Jim” Demint (R. – SC), proposed an amendment to the pork-filled bill to remove the anti-religious provision. However, Demint reported that the amendment failed in the Senate 43-54, with almost all Republicans voting for religious liberty, and almost all the Democrats voting against it. The provision had previously passed in the Democrat-controlled House, with every Republican voting against it.

I think this defeat is a helpful reminder to people of faith about the role of government-run schools, and teacher’s unions, in imposing secular-leftist values on the next generation. I recently finished reading Jonah Goldberg’s book “Liberal Fascism”, in which the author explains what the word fascist really means. Fascism is the political philosophy that seeks to undermine individual goals and values, including religious and entrepreneurial values, and to substitute the values of the society, as expressed by the party in power.

A common thread in fascist regimes is the effort to separate children from parents at a young age, so that adult teachers can impose the state’s values on the children when they are least able to resist them. That is why, accoring to the Guardian, the National Socialist party abolished homeschooling in fascist Germany in 1938. (A review of Goldberg’s book by Canadian author Denyse O’Leary is here). My favorite quote from Goldberg’s book is about the role of government-run schools in a fascist state:

Hence a phalanx of progressive reformers saw the home as the front line in the war to transform men into compliant social organs. Often the answer was to get the children out of the home as soon as possible. An archipelago of agencies, commissions, and bureaus sprang up overnight to take the place of the anti-organic, contra-evolutionary influences of the family. The home could no longer be seen as an island, separate and sovereign from the rest of society. John Dewey helped create kindergartens in American for precisely this purpose — to help shape the apples before they fell from the tree — while at the other end of the educational process stood reformers like Wilson, who summarized the progressive attitude perfectly when, as president of Princeton, he told an audience, “Our problem is not merely to help the students to adjust themselves to world life … [but] to make them as unlike their fathers as possible.”

The United States is also heading in this direction. In California, Human Events reported that homeschooling was effectively banned by an activist court. Dinesh D’Souza frankly explains why the left is so intent on keeping control of the schools here. He notes that secular people do not form families and do not have children, because it is too much of a constraint on their autonomy. Instead, D’Souza writes, secularists simply seize control of the children of religious parents, and pass their values on to the children in the mandatory government-run schools.

This plan has become so successful, that even young evangelicals are abandoning their faith at the ballot box. Phyllis Schlafly recently noted that 32% of young evangelicals voted for Obama in 2008, compared to 16% of them who voted for Kerry in 2004. Some of this slide to the left is due to parents focusing too much on entertainment and material gain. But a large portion of the blame should be pinned on the government-run schools and universities. USA Today notes that 70% of Protestant Christians abandon their faith by age 23.

Once you understand that the secular left has an interest in separating children from their parents, you begin to see why they support policies that transfer more familial responsibilities to the state. Higher taxes ensure that mothers must work, so that the child’s vulnerable pre-school years may be spent with government-certified instructors in day care. The emphasis on sex-education in the government-run schools leads young people into behaviors that later undermine marital stability. And, as Stephen Baskerville argues, the state encourages divorces to make business for itself.

I’ve argued here that Democrats favor secularizing government-run schools in order to undermine the faith of children. This is something that people of faith, who want to pass on their worldview and values to their children, need to think about. If you voted for Obama for nationalized health care, taxing of the rich, stopping global warming, etc., then now may be a good time to think again. Do a little studying about what conservatives believe – you may find out that conservatism is more consistent with the goals of faith-based voters than you had first thought.

By the way, as Ezra Levant reports, it happens in Canada, too. Often.

UPDATE: Wow, Ezra Levant is really mad at the University of Calgary for censoring pro-life students! National Post story is here.