American Business Has Sold Its Soul to the Devil: Exhibit A- Obama Warns Companies Not to Book Events in Las VegasGovernment is filled with people who couldn't get a job in the private sector. Why on earth would we put them in charge of our economy? If they knew anything about running a business, they'd be running a business. George W. Bush was a failure at virtually everything he ever did in the business world- except buying the Texas Rangers. He succeeded at that because of his family connections and wealth. Anyone could make money buying a baseball team- if you have the connections and millions of dollars necessary to buy one in the first place. Then Bush proved his lack of business skills by running our country into the ground, ruining our economy, and increasing our debt dramatically.
Did we learn our lesson. Heck no. We followed up Bush with the only guy on earth who knows less about business- Barack Obama. The new President may be an eloquent speaker, but he knows ZERO about business- unless you think protesting about racism is a business. With all due respect to Al Sharpton and Jesse Jackson, who turned protesting about racism into a lucrative business, it bears no resemblance to running the United States economy. Obama believes spending trillions and wasting trillions on pork, handouts and entitlements to reward his voters is the way to end a depression. He believes bigger government and bigger spending is the way to create jobs- even though in his entire life, he has NEVER before created a job. He believes driving the national debt to ever-higher levels is the way to avoid bankruptcy. He believes in times of economic crisis, instead of tightening the budget, we should spend irresponsibly. He believes that handing out government jobs is the way to improve the economy- even though the fact that the federal government spends too much on government employees is a major reason we are in this crisis in the first place.
We have handed power to a man ignorant of the simple rules of economics. That is no surprise- afterall, he was my classmate at Columbia University. He studied political science, but never took a business or economic course in his life. No wonder a man that stars at politics, can fail so miserably at running an economy. I attended those same political science classes at Columbia University. Never was running a business (or an economy) explained or discussed. We are in serious trouble folks.
Now you may understand why government's decisions make no sense when it comes to running a business. Take Obama's comments to a big audience on Tuesday suggesting that companies that take taxpayer money shouldn't hold meetings in Las Vegas. The result? Multiple cancelled Vegas meetings and conventions in just hours after his comments. So now Obama thinks he knows how and where business executives should spend their money? He will micromanage- from the White House- even the decisions about where meetings should be held by corporate America.
Perhaps Obama doesn't understand that Las Vegas is the symbol of America across the world. It is the convention and meeting capital of America. It is the tourist capital of America. The newspaper USA Today only a few years ago called Las Vegas “the economic engine of America.” That could be why Nevada has been the fastest growing state in America for 20 of the last 22 years. That could be why the Census Bureau predicted recently that Nevada would remain the single fastest growing state in all of America for the next 25 years. Yet Obama expects corporations to cancel their trips, meetings and conventions in Las Vegas? Obama wants to jumpstart the U.S. economy by ruining the Las Vegas economy?
As a result Goldman Sachs has already changed a 3-day business conference from Las Vegas to San Francisco. Here's a great example of the common sense and wisdom of government- the average hotel room rate in Las Vegas is $274 per night; in San Francisco the average room rate is $361. I'm certain the cost of everything else is higher in San Francisco too. But the more important issue isn't wasted dollars- it's freedom. Don't executives have the right to hold meetings and conventions where-ever they choose? Don't companies have a right to reward their best employees and biggest producers with expensive trips to desirable places like Las Vegas? Isn't that how you motivate employees, thereby creating more sales and higher revenues?
Obviously that's no longer the case with politicians running the show. Obviously the rules of business have dramatically changed if we let politicians make snap decisions based on public perception in far-away Washington D.C. This is what you get when you sell your soul to the devil- government runs your life; runs your business; micromanages every decision; and makes horrible and costly decisions based on politics and public perception- not the realities of economics. What if cancelling a Las Vegas event costs a company an extra million dollars (or two) in cancellation fees? What if switching from Las Vegas to New York or San Francisco costs millions more in higher hotel room and airfare rates?
What if this decision, multiplied thousands of times throughout across corporate America, costs the American economy billions of dollars? What if the tourism industry is ruined as corporations cancel all their conventions because they are afraid of what Obama will say? How many millions of jobs will be lost? What if thousands of middle-class Las Vegas hotel service union employees lose their jobs as a result of Obama's edict? What if hundreds of cabdrivers lose their jobs? What if hotels in Las Vegas go broke? What about the investors, banks, hedge funds and shareholders who will lose their investments in those hotels? Doesn't that affect the American economy?
What if hotels across the country go bankrupt because companies are afraid to spend money rewarding their best employees- because of Obama's edict and public perception? What if that destroys motivation and as a result sales go down? How will that affect the economy? If we all stop going to Las Vegas, or spending money on tourism or conventions, what happens to the economy? Does government ever think of these things? Does government ever think before it speaks?
It's no wonder that everything government touches fails. Do you like the way Amtrak is run? How about the DMV? Anyone bound out of bed in the morning excited to get to your appointment at the DMV? Do you love dealing with the IRS? How about welfare- anyone out there think welfare has been run well? Anyone proud of the way our returning wounded warriors were treated by Walter Reed Hospital? Let's not forget that government ran the Iraq war. Great job fellows! The same people are now trying to destroy the economy of the fastest growing city in America for the past 25 years. To Big Brother, Las Vegas is no longer an “acceptable” place to spend your money. This is what happens when you give power to government. Big Brother is filled with people who know nothing about business; who know nothing about economics; who know nothing about incentivizing top producers and salespersons; and often it is filled with bureaucrats who couldn't get a job in the private sector.
The CEO's of American business are learning a valuable lesson. In the long run it will be a profitable lesson. In the short term it will prove disastrous. The lesson is to never again accept a dollar from government. It's the same lesson that welfare recipients across the country should have learned long ago. Once you are dependent on government, it is hard to break the deadly addiction. It comes with strings- dangerous and deadly strings. Once you open that door, you have Big Brother as the boss calling your shots. Now many of the biggest banks and companies on Wall Street are stuck with government as an unwanted partner. The gang that can't shoot straight is now in charge of American business. God help us all- we have sold our souls to the devil.
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com
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Welcome to Obamaville! Obama Bankrupts America with $9.7 Trillion on Bailouts and Stimulus, as CBO Confirms the Best Choice is to do Nothing.For weeks I've been interviewed nonstop in the media about President Obama's Economic Stimulus Plan. Again and again, even conservative hosts said to me, “Well we have to do something. What would you do?” My answer is that sometimes the best choice is to do nothing. The response from talk show hosts and experts was always the same, “Huh? Are you mad? Do nothing?”
Well sometimes no decision is better than a rush-to-judgment. Sometimes “do no harm” is more important (and more successful) than “do something at all costs.” Shouldn't we have learned that lesson from our decision to invade Iraq to stop Saddam Hussein from using his Weapons of Mass Destruction (that never existed)? Why rush our decisions? Why rush multi-billion or multi-trillion dollar decisions that could make or break our entire American economy? Why not step back, breathe deep, listen to economists on both sides of the argument and slowly, deliberately make decisions after months of deliberations and debate.
Didn't we already rush a trillion dollar decision only a few months ago with the bailout? Did that work out well? The bailout can only be described as a disaster. Didn't we hear the same arguments from politicians? That “without the bailout the economy will crater?” Well we rushed to judgment with the bailout because of the hysteria. The result- we've wasted trillions of taxpayer dollars, dramatically increased our deficit and national debt, damaged (if not destroyed) capitalism and free markets, and the result is…NOTHING. The bailouts have not improved the economy, the job losses, or the credit freeze.
The bailout money has been spent (or should I say wasted); the economy is in free fall; the stock market has continued its decline; real estate values have continued to melt away; jobs are being lost by the hundreds of thousands per month; and the companies that we gave the money to, in many cases already need more money- much more. And what have these companies done with the money? Paid it out in million dollar bonuses to executives that oversaw the disaster in the first place. Bravo! Quite a job that Congress has done once again! This just proves the folly of allowing politicians to control our lives; confiscate our money; transfer money from one group to another (a surefire conflict of interest); or make decisions on our behalf.
This bailout travesty proves the accuracy of what my friends at the Congressional Effect Fund have found. They have studied the effects of Congress on our economy for almost 50 years now. They have proven that whenever Congress is in session for the past half century, the stock market is up 1.7%. When Congress is in recess (NOT in session) the U.S. stock market is up 17.6%. Do you get it? Politicians do damage to our economy every time they open their mouths…every time they make a decision…every time they pass a bill. It turns out that doing NOTHING is in fact preferable to allowing politicians provide a solution. If only politicians took a Hippocratic oath- ABOVE ALL ELSE, DO NO HARM. Based on historical data, this would mean doing absolutely nothing.
Well occasionally even I need a little positive reinforcement. I got it on Friday from the CBO (Congressional Budget Office). The CBO is made up of economists, math whiz kids, and policy wonks that understand numbers like no one else on the planet. Unlike politicians, the CBO simply reports the facts- without lies, distortion, cherry-picking stats to support conclusions, hype, promotion or propaganda in order to sell something to the American people. The CBO just does the math and reports the facts. This must scare the heck out of politicians like Obama and his team of spend-a-holics.
The CBO reported on Friday that my gut instincts were right all along. The CBO's non-partisan numbers prove that President Obama's economic stimulus package will do no good…and actually cause more harm than if we did absolutely nothing. The CBO reports that the stimulus bills now before the House and Senate might provide a small amount of short-term economic uptick, and add a few jobs, but by 2011 the effects would be nil. Yet the damage is long lasting- the CBO reports that this new trillion dollars in spending will dangerously increase debt to the point where it will lead to a LOWER GDP (Gross Domestic Product) over the next decade than if the government did nothing. The CBO further reported that the real cost of this bill is hidden- because the interest or “service” on the debt will add hundreds of millions, if not billions, to the true cost. Further, in the long run, all this government borrowing and spending will cost the private sector billions of dollars in available capital- thereby killing jobs and damaging GDP.
This is exactly what I've been saying and arguing for weeks on FOX News and hundreds of national and local radio stations across the USA. Perhaps we should put a common-sense S.O.B. (son of a butcher), small businessman, and citizen politician in charge of the economy. It could not be worse than the fools (and tax cheats) currently in charge.
But even the straight-talking CBO left out an important part of the picture: INFLATION. The Fed has had the printing presses working overtime since Fall to print all the money to pay for all these bailouts and handouts. The result will be catastrophic double-digit inflation within two years. Once again government, just like under FDR, has found a way to make things worse and extend the economic crisis, and turn a deep recession into a full-scale depression. Perhaps even the CBO didn't have the heart to pass along this much bad news all at once.
FDR's toxic solution was more government intervention; more spending; more debt; more taxes; and more laws hurting the private sector while strengthening labor unions. Obama's solution is exactly the same. With his trillion dollar stimulus plan (I call it The Obama Socialist Agenda”), Obama will hire hundreds of thousands of new federal employees- all members of government employee unions; hire at least 100,000 new teachers- all members of teachers unions; pass Card Check legislation making it easier for private sector employees to be intimidated and coerced into unionizing; and handout $200 billion dollars of stimulus funding to states- to keep millions of state and local government employee union members from being fired, downsized or having salaries and pensions reduced. All of this will insure that Democrats remain the majority party for years to come. But as far as helping the American economy…
This is all economic suicide for America. It will turn a deep recession into a long depression- just as FDR did in the 1930's. Do you know how we got out of the Great Depression? Only World War II ended a more than decade-long depression (1929-1940). By the way, for those who have forgotten history, unemployment rates were in the teens as late as the 1940's- almost as high as when FDR took over the Presidency from Hoover.
But the worst part of Obama's socialist stimulus giveaway is being ignored by the biased-liberal media. All of these government union jobs being proposed by Obama will NEVER go away. The economic stimulus will only pay for them for 2 years. After that, the stimulus money is gone- but we still have a huge bill left over to pay for these bloated government employee salaries, pensions, and health care benefits for LIFE. As of now- before any new government jobs are created- USA Today recently reported that the federal government retirement system has an unfunded liability of $5.3 trillion- including $1.2 trillion for retiree health benefits. This is just the UNFUNDED portion. Does anyone understand the “Perfect Storm” of debt headed straight for taxpayers? Now Obama will hire hundreds of thousands of additional government employees- who will all require salaries for the next 25 years; then pensions and medical care for another 25 years after they retire. America will be buried under debt for decades to come. The only solution will be 80% (or higher) tax rates on our children or grandchildren. That will leave them broke, desperate, fearful and beholden to government for survival- making them prime candidates to support bigger government and vote Democratic.
The short-term results of all this spending? If not the kind of disaster we experienced during the Great Depression, we can certainly expect the kind of misery we experienced under President Jimmy Carter- sky-high interest rates, sky-high inflation, and dramatically higher taxes on the very people who could get us out of this depression- business owners, job creators and high income taxpayers. Welcome to Obamaville.
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book will be released by John Wiley & Sons this Spring entitled, “The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.” The book is available for pre-sale at Amazon.com. Wayne also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of Wayne's views, commentaries, or to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com
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This issue ties in with every aspect of the Obama Socialist Agenda- bailouts, handouts, economic stimulus packages, giving too much power to The Federal Reserveâ€¦let's not forget tax cuts to people that don't pay taxes.
This Obama agenda isn't about saving the American economy. Rather it is about putting Big Brother in control of our lives. It's about the Nanny State- big government intrusion into every aspect of our lives, in order to "protect" us. It's about destroying capitalism and tearing down the U.S. economy to build a new economic system based on rewarding the "right kind" of Americans- those who support Obama and his agenda.
It's about bribery- Obama is buying votes for a generation- thereby guaranteeing the liberal big government, tax and spend, big union, radical environmental agenda controls every aspect of our lives for decades to come.
It's about Socialismâ€¦it's about "group think"â€¦the collective good of society instead of the individual. It's about rewarding the non-productive members of society (Obama's voters), and punishing the taxpayers- the group that creates the jobs, owns the businesses, owns the property, and pays the actual taxes. Just as he told "Joe The Plumber" during the Presidential campaign, Obama wants to punish this group because these Americans tend to vote Conservative.
It's about making the Federal Reserve more powerful so that it can print money endlessly to pay for Obama's reckless spending, even if inflation rises to double-digits and the value of the dollar descends towards zero.
It's about building an economy that rewards Obama's supporters- big unions, government employee unions, teachers unions, auto unions, lawyers unions (otherwise known as The Bar Association), lobbyists, and environmentalists.
And of course the biggest goal of allâ€¦it's about controlling the banks, who will decide what people and what projects get funding for the next 4 or 8 years of an Obama administration.
This is the greatest, most manipulative VOTE BUYING SCHEME in political history. Just as the New Deal cemented Democratic control of national politics for a half century- this Obama agenda is The New Deal IIâ€¦on steroids!
â€¦think long and hard and deeply about what caused this economic tsunami: Too much government spending. Too many handouts. Too much wasted spending on failing public schools- orchestrated by greedy teachers unions. Too many government employees with bloated salaries, pensions and health benefits. Too much deficit. Too much debt. Too many promises by government with blank checks- paid for by taxpayers.
Too many government rules that forced banks to loan billions to low income Americans who couldn't and shouldn't have qualified for mortgagesâ€¦all in the name of equality and "fairness."
Too many government bureaucrats like Barney Frank, Chris Dodd and Chuck Schumer with oversight over Fannie Mae, Freddie Mac, Wall Street, Bernie Madoff, and the banking system- while these same politicians were the biggest beneficiaries of contributions from those very companies and sectors.
And now think of what Obama's solution really consists of- MORE of all of the above. He proposes far more spending to get us out of bankruptcy. He proposes giving state and local governments billions of dollars to reward them for spending far too much- virtually guaranteeing they'll do it again. He wants to make government far more important. He wants to give more power to Barney Frank and his friends. Friends like Congressman Chsarles Rangel who oversees tax policy but conveniently "forgot" to pay his own taxes. Or new Treasury Secretary Tim Geithner who creates tax policy, but conveniently "forgot" to pay his own Social Security taxes. He wants to create more regulations- even though government regulations contributed to the current crisis (and certainly didn't prevent it). How could more of the things that caused this mess possibly be the solution?
Thinkâ€¦think about the beneficiaries of every aspect of this plan: The economic stimulus package is about buying the votes of the 40% of Americans who will get a tax cut checkâ€¦but never paid any taxes in the first place. Obama is betting that they will gladly vote Democrat for many years to come. Wouldn't you be thankful if someone gave you a check for doing nothing?
It's about giving away $200 billion to state & local governments- to lock up the votes of government employee union members for a generation- by making sure that government employees not only keep their jobs, but get pay raises while the rest of us in the private sector struggle to survive in a depression.
It's about handing out tens of billions of dollars to a failing education system OWNED by teachers unions who couldn't care less about the kidsâ€¦and prove it every day with lower test scores and higher drop out rates. Why reward failure? To buy the votes of millions of teachers union members for a generation.
It's about giving away billions of dollars to failing auto companies in order to reward the auto unions that supported Obamaâ€¦and buy the votes of auto workers earning $150,000 (or more) in annual salaries, pensions & benefits to drill rivets into fenders of cars so over-priced that no one wants to buy them anymore. But you can bet that Obama will make sure union contracts are protected- at all costs.
It's about handing out jobs to construction workers- also union membersâ€¦in order to guarantee that those millions of workers vote Democrat for a generation. And if they're not union members, Obama will pass the Card Check legislation that bans secret ballots, to ensure that every possible worker becomes a union member- even if forced by violence or intimidation.
Finally, the Obama agenda is about a government takeover of banks so that Big Brother is in control of who gets loans. You can bet that the Obama bureaucrats put in charge of banks will use politics as their guide to make every decision- directing the banks' money to union members, union-funded projects, environmentally-correct projects, politically- correct projects, and any projects where Obama's friends stand to profit.
Ladies & gentleman we have sold out. We have sold our souls to the devilâ€¦and the devil is big government. Obama doesn't want to help you- he wants you to desperately crave the government's help. He wants you hopeless, helpless, aimless, and clueless, thereby dependent on government to survive. He wants to slip socialism by youâ€¦and destroy capitalism while we're in crisis- while you're scared and weak, and he hopes you won't even notice. Not as long as he sends you a check, takes over your bank, protects your mortgage (even if he has to ask government to break the legal contract), educates your children at government-run schools, and gives you a job. And once his plan is complete, he'll own you and your vote for life. But look at the price you'll pay- every aspect of your life will be dominated and determined by Big Brother.
Author Ayn Rand predicted it all many decades ago in "The Nature of Government":
"We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force. "
Give Obama credit for the deception. His brilliant team of handlers and publicists show the mainstream media images of his beautiful wife and childrenâ€¦his wonderful familyâ€¦and they have him quote the Founding Fathersâ€¦and talk about choosing a new church for his family. He talks about tax cuts as a big part of his stimulus plan, never mentioning that the cuts don't go to the people that actually pay most of the taxes. All the while these nice images and perfectly orchestrated sound bites play in the media, Obama is busy destroying capitalismâ€¦stomping on the Constitutionâ€¦and re-distributing the wealth. Karl Marx could not have come up with a more effective plan.
This is a brutal, calculating, manipulative, vicious coup- a takeover of the capitalist systemâ€¦a high-jacking of the electorate through briberyâ€¦under the stress of crisis. This is about turning the whole country into one big Chicagoâ€¦controlled by big unionsâ€¦teachers unionsâ€¦environmental lobbyists who want to tax you to death to prevent a global warming disaster that isn't proven to exist (we are more likely to be experiencing "global cooling"). But no matterâ€¦Big Brother is in control and taking action on your behalfâ€¦protecting youâ€¦keeping you safe and employedâ€¦and protecting you from global warming doom & gloom. Remember if draconian global warming rules, regulations and taxes destroy millions of private sector jobsâ€¦all the better for the Obama agenda. Obama will create millions of government jobs to replace them- making big government even more powerful and beloved.
All these radical liberal groups are out to destroy capitalism simply because they're no good at it. They've failed in the current system, so their goal is tearing it down to create a new economic system (or "world order") where they can succeedâ€¦because they are in control and they make the rules. By applying the right pressure- ie the bribes of trillion dollar government bailouts and programs up for grabs, they've even gotten big business to go along with the plan.
This my friends is the Socialist Utopiaâ€¦the liberal version of the "Stepford Wives." And it took the perfect boob to open the door- George W. Bush, the compassionate conservative who poisoned the Republican brand; caused conservatives to hide in embarrassment and shame; and allowed Obama to exist because of Bush's own incompetence, arrogance, reckless disregard for excessive government spending, and record-setting expansion of government. Now Obama is here to "rescue" us. Not that he's ever been in businessâ€¦not that he's ever taken an economics classâ€¦not that he's ever created a job. But simply because Obama is the Anti-Bush, he now commands the American economy and the free world.
In response, we are all stepping off the cliff like lemmingsâ€¦following a Pied Piperâ€¦falling to our deathsâ€¦destroying capitalismâ€¦giving up our freedomsâ€¦sacrificing our children's futureâ€¦wrecking our economyâ€¦punishing the taxpayersâ€¦and rewarding those who failed in the capitalist system- who happen to support Obama.
Historian and political statesmen Alexis De Tocqueville's words have finally come true:
"The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money."
Some of us can still see what is happening. Some of us are willing to stand up to the bullies. Some of us are willing to still support capitalism. Some of us are willing to lead the loyal opposition. I'm Proud to call myself a Libertarian, Fiscal Conservative, Capitalist, Small Businessman, Home-School Dad, Citizen Politician, Son of a Butcherâ€¦and The ANTI-Obama.
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book is released by John Wiley & Sons in May entitled, "The Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts." He also happens to be Barack Obama's college classmate (Columbia University Class of '83). For more of his views, commentaries and to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com
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Obama's solution for this economic tsunami is more government spending in the form of more bailouts; a massive trillion dollar (or close to it) economic stimulus package; and tax cuts offered to people that never paid taxes in the first place. What is so interesting about this Obama game plan, is that it proves that we have once again elected a President that is either ignorant or oblivious to the United States Constitution. Nothing in the Constitution authorizes any of this kind of federal government intervention. Virtually the entire Obama economic game plan is unconstitutional.
I, on the other hand, offer today an economic stimulus plan that is unlike any ever offered before. Instead of raising taxes on the successful Americans who pay most of the taxes and create virtually all of the jobs, I actually want to give taxpayers a one-year â€śIncome Tax Vacation.â€ť Yes, I want to suspend income taxes for 2009 and tell the I.R.S. to take the year off. I can hear the liberal, big-government, tax and spenders screaming right now. But before I explain the details of my plan, let's debunk a few great, big, fat liberal lies about taxes.
Liberal tax and spenders complain that we cannot possibly allow the Bush tax cuts to become permanent. Why? The federal government cannot afford it. The cost? About $400 billion per year. Until recently, that sounded like a lot of money. But not after the events of the last few months- now we all realize that $400 billion is chump change. How is it possible that we can afford to spend $80 billion on a bailout for one company AIG, but $400 billion in tax cuts for millions of hard-working American taxpayers is unaffordable? How is it possible we could spend almost $50 billion (and counting) on a bailout for the failed Big 3 automakers, but $400 billion in tax cuts for millions of taxpayers is unaffordable? How is it possible that our new President Obama could giveaway almost one trillion dollars in an economic stimulus package without hesitation, but $400 billion in tax cuts for the taxpayers is unaffordable? How is it possible that we could giveaway $7 trillion in total bailouts, but $400 billion in tax cuts is unaffordable and unimaginable?
Obama campaigned for President on the theme that extending Bush's tax cuts would be unaffordable and irresponsible. Yet now it turns out that when Obama wants to spend a cool trillion dollars on his pet project, it's available, reasonable, and necessary. Big fat liberal lie number one is debunked.
But the second line of reasoning by liberal tax and spenders is even more of a whopper. They say that a tax cut is a â€śgiveaway to the richâ€ť and that it's â€śunfairâ€ť and â€śgreedy.â€ť Really? How can it be a giveaway when it's our money in the first place? The very definition of a giveaway is when government is giving away my money to other people who didn't earn it. Now that's a giveaway. The real giveaway is Obama offering a â€śtax cutâ€ť to the 40% of Americans who paid no taxes last year. The real giveaway is the millions of people (virtually all Obama supporters) who are on welfare, Medicaid, food stamps, aid to dependent children, housing assistance, free school breakfasts and lunches, the list goes on and on. That's a giveaway. Big fat liberal lie number two is debunked.
Liberals like Obama call tax cuts â€śspending.â€ť He claims that tax cuts add to the budget deficit. That's a blatant lie. Letting people keep more of their own money does not increase government spending. It isn't the government's money in the first place- it belongs to the taxpayers. So therefore it shouldn't be in the budget in the first place. How can you grab less of my money and claim that increased your budget deficit?
If someone stole your car, then had a change of heart and gave you the four tires back, would that be a â€śgiveawayâ€ť to you? Would you feel like a welfare recipient because someone gave you back part of what they took from you in the first place? Would you thank them for being so generous and â€śfair?â€ť Would you say they increased the spending in their personal budget by giving you back 4 of your own tires that they just stole? I think not. That's how millions of our most productive Americans feel when government says it adds to the budget deficit to allow us to keep more of our own money.
You mean when President Obama spends a trillion dollars on infrastructure building, that isn't called â€śgovernment spending?â€ť That doesn't add to the budget deficit? When Obama spends a trillion dollars giving money away to people that didn't pay taxes in the first place, that isn't called â€śgovernment spending?â€ť That doesn't add to the budget deficit? But letting taxpayers like you or me keep more of our own money- the one item that isn't spending at all- that is blamed for busting the budget? Wow, those liberal tax and spenders certainly have a way with words. Big fat liberal lie number three is debunked.
And as far as the â€śG wordâ€ť greedy- well that's the biggest, fattest lie of all. You mean it's greedy to want to keep more of your own money, but it's not greedy to ask government to give you someone else's money? Big fat liberal lie number four is debunked.
Now into this picture of big fat lies enters Barack Obama with his first big act as President- an almost trillion dollar stimulus plan (which I predict after only a few months in office, he'll expand dramatically to far above one trillion dollars). He wants to build infrastructure with a large portion of it- highways, bridges, schools. By the way, many of these projects that he calls â€śnecessaryâ€ť are a bunch of fat, lard, pork and waste that until today used to be called EARMARKS. Now they will be packaged up in an economic stimulus package and called â€śnecessary for the survival of America.â€ť That's how politicians play with words to deceive the American public.
With the rest of the stimulus package Obama will send government checks to millions of Americans- many of whom never paid taxes in the first place; many millions of others have steady jobs and their income is no worse than last year (this category includes anyone that works for government). So why give them a check? The people who need the check are small business owners who are struggling because consumers have stopped buying. But none of the checks will go to them- they made too much money on last year's tax return. Obama has disqualified them.
Oh and just for good measure, Obama will spend a bunch of leftover money on creating 600,000 new government jobs that will bankrupt taxpayers not just today, but for many decades to come. Remember that those 600,000 new government employees require bloated salaries, pensions and health benefits for the next 50 years. This is Obama's version of Economics 101: Massive Spending + Debt added to More Massive Spending + Debt = Economic Recovery. Good luck to all of us. We'll need it.
But here's my version of an economic stimulus plan:
Let's give American taxpayers (ie those who actually do pay the taxes) a one-year tax VACATION. Yes, I want to suspend all federal income taxes for individuals for one year. Once again, Obama and his tax and spend friends will howl that we can't afford it. Really? The entire amount of income tax paid by individuals each year in the United States of America is about $1.3 trillion dollars. So as expensive as my idea sounds to suspend federal income taxes for a year, it's actually about the same cost as Obama's economic stimulus plan. It's also only a tiny fraction of the $7 trillion dollars the federal government has given away in bailout monies to rich, fat- cat corporations and bankers. It's far less than the $2 trillion or so in cash that the Federal Reserve has simply printed to put liquidity into the banking system.
But like all liberal tax and spenders, Obama doesn't want to simply let us all keep our own tax money for one year. Government wouldn't get enough credit for that. Obama wants government to meddle in our lives. Obama wants to be able to give our money away in the form of a government check- to make all of us dependent on government. He wants to take it from us (in the form of taxes), and then give it back (to some of us), so we're all awed by the power and generosity of government. He wants to choose winners and losers, by giving it back to whomever he decides is worthy. He wants to give the money away to people who did not pay taxes in the first place (his voters).
My plan chooses to give the trillion dollars or so away to the people that paid all the taxes in the first place. My plan simply allows the taxpayers to keep their own money- without ever getting government (or government checks) involved. For one year, you get to keep ALL of your own money. How's that for simple? My plan has no middleman (government) grabbing your tax money first and taking his cut. You just keep it all for a year. This is certainly no giveaway, considering that the money is going to the people that earned it- taxpayers.
But there are two problems for Obama and his liberal friends. First, most of the savings would go to the top 20% of earners, simply because that's who pays most of the taxes. How unfair. The people who actually pay the taxes would gain the benefit. And since they own virtually all the businesses in America, they'd pump the money back into their businesses, or create new ones- thereby creating millions of new jobs. That just makes too much sense for government.
Secondly, Obama's & Company would be petrified that my Income Tax Vacation would set a precedent. They'd be petrified that maybe if we all paid no income taxes for a year, we'd actually start to like it. Taxpayers might notice how much better their lives have become without income taxes. They might notice that all that extra tax money they keep improves their quality of life. And they might notice that nothing is missing from their lives- that we all get along just fine without those taxes. Obama & Company would be petrified that we'd all start to notice that the federal government could actually survive without collecting our income taxes. We might all demand that income taxes never be reinstated. Wow, how that thought must really frighten big-government liberals. They must wake up in the middle of the night sweating profusely. My version of the economic stimulus plan is the Liberal Nightmare.
Please keep in mind that my idea, unlike President-elect Obama's stimulus package, actually rewards and incentivizes the American citizens that fund virtually all the businesses in America; that create virtually all the jobs; that buy the luxury goods; that invest in the things that make our economy go and grow- stocks, bonds, real estate, investment property, small business. This is the group you want to motivate and stimulate. The American economy would start humming again. Americans would go back to work. Now that's an economic jolt. That's an economic stimulus. Put the money in the hands of those that create it in the first place. Put it in the hands of the same people that know what to do with it, in order to make more money.
Do you realize Obama's plan gives away money to everyone but this very group that I'm talking about above. Obama's plan takes the money from the taxpayers, and gives it back to everyone BUT the small business owners and job creators. Taxpayers like me rarely receive stimulus checks. I always earn too much. Isn't that amazing? I'm part of that heroic group that creates the jobs, and pays most of the taxes that pay for all these big government programs and overpaid government employees. But when it comes to stimulating the economy, I'm the last guy government wants to stimulate. Well, there are millions of Wayne Roots. We're the ones that government ought to be helping- or rather, not hurting. You should always help the people that stand the best chance of helping and uplifting millions of others.
But that is only Part One of my economic stimulus package. That's the first trillion dollars or so. We all know Obama's stimulus plan will be doubled or tripled or quadrupled. If not in 2009, certainly in 2010, you can count on Obama coming back for more, and more, and more. Because no matter how much he gives away, it will never be enough. So here are a few more ideas to motivate and stimulate the producers and earners and taxpayers and small business owners who make America go and grow. As opposed to Obama's wasted trillions, the ideas below will actually make money for the government. This is my Economic Stimulus Plan:
#1) The centerpiece of my plan is the One Year Federal Income Tax Vacation. We've already discussed this key idea in detail above. Now to the all-important corollaries.
#2) I propose a 5 year Capital Gains Tax phase out. Anyone who invests in America (stocks, bonds, homes, commercial real estate, small businesses, etc) deserves a reward for his/her risk- especially in today's frightening economic environment. I suggest phasing out capital gains taxes over a 5-year period. Any capital gains earned after one year = 15% tax rate, after two years = 10% tax rate, after three years = 7.5% tax rate, after 4 years = 5% rate, after 5 years = ZERO capital gains tax rate. My idea is simple: buy a piece of America and hold it for 5 years, and any profits earned are yours to keep- tax free. This is perhaps the most crucial moment in the history of America to encourage, motivate and stimulate risk (otherwise known as investment in America). My plan will unleash the greatest economic expansion and explosion in world history.
#3) I propose the elimination of all capital gains taxes on investments, dividends, and interest for Americans age 55 and older. The point of this idea is to reward older Americans who are entering their retirement years and allow them (after a lifetime of hard work) to retire on half the amount of savings (because they owe no taxes on their assets- the very things they'll live on for the rest of their lives). But it's the aftershocks of this idea that will help the American economy recover. With this kind of a reward, think of the trillions of dollars that older Americans will spend on investing in America- knowing that the big payoff will come from what they are leaving their children and grandchildren.
#4) I propose a business income tax cut. Corporate income tax rates in America are the 2nd highest in the industrialized world. Obama wonders why businesses are moving jobs offshore? We must cut corporate income taxes to 20% (or lower) to remain competitive and encourage big business to not move offshore, or ship jobs outside the USA.
But more importantly, to encourage the formation and success of small businesses- the economic engine of America- we must lower the income tax rate for small business to 10%. This tax reduction, combined with the 5 year capital gains tax phase-out discussed above, will encourage an incredible tsunami of investment into small business. That creates millions of new jobs and turns the deepest recession of our lifetimes into an economic renaissance.
#5) I propose cutting capital gains taxes on the profits from the sale of any American's principle residence to ZERO. To liberal tax and spenders who scoff at this idea, it was your hero Bill Clinton, back in the 1990's, who cut the cap gains tax on the sale of principle residences to zero on the first $500,000 of profit. But (as usual) this tax cut wasn't indexed to inflation. Today, with indexing for inflation, it would be far higher. If the idea was good enough for Clinton, it's good enough for me. But I'm adding a creative twist- I'm proposing infinity as the limit for your real estate investing success, profit and prosperity. Any American that invests (and risks) his or her hard-earned money in a principle residence and holds for a minimum of 2 years, gets to keep any and all profits. Buying your home is the single biggest risk of most American's lives. Why should government get a big chunk of our profits? What was their risk?
Pass this law and watch the housing market explode. Watch people who wouldn't even think of risking their money to buy a home yesterday, rush with both fists and both feet to buy a home tomorrow. The Home Industry is perhaps the most important business in America. As goes housing, so goes the American economy. If people feel their home is appreciating they feel rich, and they spend (on anything and everything). If they don't, they don't. This idea is how you get the economy moving again.
#6) To encourage the creation of millions of new jobs and the hiring of millions of Americans currently out of work, I propose a $7500 tax credit that goes directly to any employer who hires a new full-time employee during the next 3 years, increasing to $10,000 if the person they hire was out of work at the time. Government spending and hiring will not get us out of this recession (or depression). Only private industry and entrepreneurs will get us out of trouble. This is how you motivate private industry and small business to create jobs.
#7) If and when income taxes are reinstated (and unfortunately you know they will be), I propose a national flat tax with only two rates: 15% and 10%. But here's the creative catch. I call it a REVERSE FLAT TAX to encourage and motivate productivity and success. I propose a flat tax rate of 15% on any and all income up to $500,000 per year; then a 10% flat tax on any and all income above $500,000. That's it.
Does anyone in government ever think of why American business is successful? The biggest businesses in this country are successful because, the more their employees' make, the more they let them keep. Whether the industry is stocks, investment banking, real estate, insurance, mortgages, automobiles, retail sales, or even Hollywood talent agents- the best salespersons and producers (called â€śRainmakersâ€ť) receive the highest compensation. Those who produce and earn the least, receive the lowest compensation. That's the way all successful businesses are run. You reward the 10% of employees at the top who always create 80% of the revenues (and success). They build your business from the top down. It's always been that way, always will.
But the American tax system is built backwards. We punish success. We punish the job creators. We punish the daring innovators and risk-takers. Don't we want to encourage someone to take their million dollars out of the bank, or out from under the mattress, to invest in stocks or start a business? Under the present income tax system, the more you make, the more the federal government takes from you, the less you keep. Now, that makes no sense whatsoever.
Why would we want to discourage success and achievement? The federal government should want to motivate America's best and brightest. It's certainly in their best interest to incentivize you and me to want to work 24/7; to want you and me to build more businesses; to want you and me to hire more employees; to want you and me to risk and invest more money; to want you and me to make more money. Greed, in fact, is good. Greed is what motivates us to serve others because when we make customers happy, they'll reward us greatly. Greed is good for America. Greed is good for the federal government. Greed is good for tax and spend liberals like Obama. The greedier I am; the more willing that I'll be to risk my capital; and as a result, the more tax money that will eventually flow to the government.
My Reverse Flat Tax finally solves that problem. Our tax system has operated backwards since inception. It does not motivate or reward success. To the contrary, it punishes success, creativity, ingenuity, and productivity. Once again, by restructuring the income tax system to emulate the most successful business models in America, we are treating government like a business; a business with common sense.
Because the proposed tax rate up to $500,000 is a flat 15%, my plan is â€śfair.â€ť It treats virtually every America who earns anything from zero to $500,000 in the exact same way. All taxpayers, including lower income earners, get a low rate of taxation. No one can complain. Almost every American is in the same boat, except those who strive or risk to do even better. You can only win with my plan. There are no losers. There are winners, and even bigger winners. That's as fair as any tax system can get. Everyone does well, and there's an opportunity to do even better.
For those who argue that not enough tax revenues will flow to the government from my Reverse Flat Tax, that's the whole point. We have to first cut government spending dramatically and then we won't
need the same high level of taxation. Then we can afford to let the American people keep more of their own money in the first place. In my new book, â€śThe Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cutsâ€ť I will lay out in detail my plan for cutting government spending dramatically.
This is my Economic Stimulus Plan to get America going and growing again. Does it cost trillions of dollars? Sure it does. So do all of Obama's plans. So do all of Congress' plans. But my plan puts the money directly in the hands of the taxpayers, instead of diverting it through a middleman (called
government). My plan is based on business models that are proven successful over centuries. My plan is based on incentivizing all Americans to risk and invest and build. Mine is based on running the federal government (for the first time) like a business. Mine is based on allowing taxpayers to keep more of their own money, without depending on government to pick winners and losers. Mine chooses only one winner- the American taxpayer. Mine is THE GREATEST ECONOMIC STIMULUS PLAN EVER.
Wayne Allyn Root was the 2008 Libertarian Vice Presidential candidate. His new book is released by John Wiley & Sons in May entitled, â€śThe Conscience of a Libertarian: Empowering the Citizen Revolution with God, Guns, Gambling & Tax Cuts.â€ť For more of his views, commentaries and to watch his many media interviews, please visit his web site at: www.ROOTforAmerica.com
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Root referred to Obama's â€śWhistle Stop Tourâ€ť as the â€śWhistle Past the Grave Tourâ€ť because while Obama smiles and waves, our economy is heading downhill towards a depression. On FOX News, Root called Obama â€śa President who understands nothing about the Constitution- virtually everything he is recommending from bailouts, to stimulus package, to tax cuts for people who don't pay taxes- is unconstitutional.â€ť
Root continued, â€śOur economic crisis has been caused by crippling debt and bloated government spending. Obama's recipe for this crisis is more debt and more government spending. You cannot spend your way out of bankruptcy.â€ť
Root's own economic stimulus plan will be the centerpiece of his upcoming book (released in May by John Wiley & Sons). Root favors a one year suspension of personal income taxes. He calls it an Income Tax Vacation. Root explains, â€śMy plan rewards the people who create all the jobs and pay all the taxes in the first place. It allows American taxpayers and small business owners to simply keep more of their own money- and cut out the middleman (the government). When taxpayers are able to keep all their money for one year, the result will be the greatest economic recovery of all time. My plan puts the money in the hands of the its rightful owners- the people that earned it, and the people that know how to use it to invest in stocks, real estate, small business and the creation of jobs. It's time to save the group that truly is too big to fail- taxpayers, business owners, and job creators. The reason Obama is against this idea is he's afraid the taxpayers might find out that government wastes their money and can run just fine without it. He's afraid that taxpayers might actually like it and demand an end to income taxes.â€ť
To his critics who say his idea is too expensive, Root says, â€śIf we can afford $1 trillion for Obama's stimulus plan, we can certainly afford the $1.3 trillion it costs to suspend income taxes. Why can we afford to hand out trillions of dollars to fat-cat corporations, banks, Wall Street brokerage houses, auto companies, unions and people that don't pay any taxes, but it's considered too expensive to give the people that actually pay the taxes a one year vacation? This is the CHANGE that Obama should have brought to Washington. Instead he's bringing the same old 'big government, tax and spend, punish the successful people' policies that have failed miserably so many times in the past.â€ť
Root calls himself "the only politician in the country with the guts to stand up for the people that pay all the taxes in the first place- taxpayers and small business owners." Root a lifelong Republican turned Libertarian calls the Republican Party "gutless, rudderless and leaderless."
Please visit Wayne's Website to see these and many other FOX News and FOX Business appearances by Wayne, as well as hear Wayne's latest appearance on â€śSavage Nationâ€ť with Michael Savage: www.RootForAmerica.com
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