Tag Archives: Spending

Keith Hennessey and Howard Dean debate health care reform on CNBC

You need to click through to see the video. (11 minutes long)

It’s a great little debate! I recommend watching it.

HINT: Somebody won, and somebody lost. And it’s obvious.

About Keith Hennessey

Keith Hennessey is the former Assistant to the U.S. President for Economic Policy and Director of the U.S. National Economic Council. He was appointed to the position in November 2007 by President George W. Bush, and served until the end of Bush’s second term in office. Mr. Hennessey served in the White House since August 2002, when he was appointed to his previous position of Deputy Assistant to the U.S. President for Economic Policy and Deputy Director of the U.S. National Economic Council.

Hennessey holds a B.S. in Mathematics and Political Science from Stanford University as well as a Master of Public Policy from the John F. Kennedy School of Government at Harvard. The title of his Harvard public policy thesis was Unintended Consequences: Critical Assumptions in the Clinton Health Plan.

About Howard Dean

Yeaarrrrrrghhh! He makes Al Franken look like an even-tempered centrist.

How do Democrat policies stimulate the economy?

Consider this Washington Times article to see how it works. (H/T Gateway Pundit)

Excerpt:

The Obama administration revealed last week that as much as $16.1 million from the stimulus program is going to save the San Francisco Bay Area habitat of, among other things, the endangered salt marsh harvest mouse.

That has revived Republican criticism that the pet project was an “invisible earmark” in the massive spending bill for Mrs. Pelosi, whose San Francisco district abuts the Bay, and epitomizes what Republicans say is the failure of stimulus spending so far to help an economy still shedding jobs.

“Lo and behold, the government has announced that the mouse is getting its money after all,” House Minority Leader John A. Boehner, Ohio Republican, said, standing beside a poster of the furry varmint. “Speaker Pelosi must be so proud.”

Mrs. Pelosi’s office was quick to dismiss the criticism.

My preferred stimulus was to spend under $400 billion and to temporarily suspend the employer portion of payroll taxes, so that American employees would go on sale. When people have jobs, then they are comfortable spending money. But Obama and Pelosi preferred to spend the money on mice. American workers or mice? Which one stimulates the economy?

Earlier this week I wrote about how well the first two stimulus bills worked, and how the Democrats would like to pass a third stimulus bill.

Raising taxes

Democrats also think that raising taxes on businesses and individuals will stimulate the economy. See, when the unemployment rate goes to 9.5%, and everyone has to pay more for electricity and gas, then Democrats believe that people will spend more.

Consider this article from Politico which lists some of the ideas they are considering. (H/T Michelle Malkin)

Excerpt:

— Broaden the 1.45-percent Medicare tax on earned income to “passive income,” which could include money from capital gains, rental properties and businesses that do not require direct participation. This could raise $100 billion.

— Levy a five-percent surtax on individuals who earn more than $500,000 and couples that make $1 million.

— Tax health benefits at a higher level than had been considered. Two scenarios are in play. Taxing plans worth more than $20,300 for a family and $8,300 for an individual could raise $240 billion. Increasing the cut-off to plans worth more than $25,000 would bring $90 billion.

— Capping the tax break on itemized deductions at 28 percent, as President Barack Obama had proposed, or freezing the top deduction rate at 35 percent when the Bush tax cuts expire in 2010. The first scenario would raise $168 billion, while the second would collect $90 billion.

— Issue tax credit bonds to pay for the proposed Medicaid expansion, raising $75 billion.

— Charge fees to pharmaceutical manufacturers, bringing in as much as $20 billion, and insurance providers, raising $75 billion.

– Raise taxes on sodas and sugary drinks. A 3-cent hike could pick up $30 billion, and a 10-cent hike could make $100 billion. This one already appears out of favor: Many senators have specifically ruled out the sugar tax, and a Senate Democratic source said it was the one option that was clearly not gaining traction with committee members.

Try to think about what effect this will have on the person who rents you your apartment, who supplies your employer with capital, or who pays your salary. Try to think about whether you will pay more or less for the goods and services you need when the people who provide them are attacked by the government. Try to think about what effect increased borrowing will have on the prosperity of your children.

Obama’s federal aid overwhelmingly given to Democrat-supporting counties

USA Today reports. (H/T Gateway Pundit)

Excerpt:

Billions of dollars in federal aid delivered directly to the local level to help revive the economy have gone overwhelmingly to places that supported President Obama in last year’s presidential election.

That aid — about $17 billion — is the first piece of the administration’s massive stimulus package that can be tracked locally. Much of it has followed a well-worn path to places that regularly collect a bigger share of federal grants and contracts, guided by formulas that have been in place for decades and leave little room for manipulation.

“There’s no politics at work when it comes to spending for the recovery,” White House spokesman Robert Gibbs says.

Counties that supported Obama last year have reaped twice as much money per person from the administration’s $787 billion economic stimulus package as those that voted for his Republican rival, Sen. John McCain, a USA TODAY analysis of government disclosure and accounting records shows. That money includes aid to repair military bases, improve public housing and help students pay for college.

The reports show the 872 counties that supported Obama received about $69 per person, on average. The 2,234 that supported McCain received about $34.

This reminds of Obama’s doings in Chicago.

$18 Million Dollar Contract goes to Democrat-supporting IT firm

David Freddoso broke a story today about an $18 million dollar IT contract awarded to a firm that donates exclusively to Democrat House Majority Leader Steny Hoyer. (H/T Hot Air)

Here is an excerpt from the Washington Examiner story:

ABC reports this morning that the Maryland firm Smartronix has won what seems like an enormous $18 million contract to re-design the Recovery.gov website. Approximately $9.5 million would be spent by January in order to make “Recovery 2.0” out of the site that is supposed to track the spending of federal stimulus funds in detail.

Smartronix, a medium-sized Maryland-based firm (over 500 employees) founded in 1995, boasts a large number of government clients, mostly military. The company appears to have just one important political connection: according to FEC records, Smartronix president, Mohammed Javaid, vice president Alan Parris, and partner John Parris have together given $19,000 to House Majority Leader Steny Hoyer (D) since 1999. There is no record of a Smartronix employee contributing to any other federal politician.

UPDATE: Smartronix got $260 million in other federal contracts

Smartronix has received more than $260 million in federal contracts since the year 2000, with the top awarding agencies being the U.S. Navy, Federal Technology Service, U.S. Air Force, U.S. Minerals Management Service, and the Office of Policy, Management and Budget (not clear which department or agency issued this contract), according to USASpending.gov.

Nearly $180 million of the contracts awarded to Smartronix during the period 2000-2009 were awarded on less-than-competitive basis, including $21 million for non-competitive awards. Another $33 million was awarded in competitive processes in which Smartronix was the sole bidder.

And one of my co-workers noticed that this even got posted on SlashDot with 341 comments so far!

The Republican response

House Republicans released this new ad about the staggering 9.5% unemployment rate.

H/T Gateway Pundit.