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When the people fear the government, there is tyranny; When the government fears the people, there is liberty.  ~ Thomas Jefferson

 

Entries from September 9th, 2010

WI Moms keeping “Made in America” alive.

September 9th, 2010 · Wisconsin

Fox Valley, Wisconsin – Local mom’s make custom purses and baby ‘must haves’ to beat the economy.  Why can’t our Government follow their lead and make “Made In America” mean something again?

 I give a lot of credit to these ladies.  2 of them have full time jobs and 1 a full time stay at home mom.  How do they find the time to sew?

 Good luck to them.  You can visit their site at http://rosebudcreations.com and keep “Made in America” alive.

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Tax Contradictions: Obama says the economy needs a tax cut—and a tax increase.

September 9th, 2010 · Dissention, Economy, Obama's Scheme, Selling Out the US, Taxes

After 20 months and more than $1 trillion down the Keynesian drain, President Obama is discovering the virtue of tax cuts. Pass the smelling salts, we just fainted.

Yesterday the President proposed a $180 billion plan that includes a permanent research and development tax credit and a tax write-off for all business capital purchases in 2011. These are both sensible ideas that would counteract at least some of the damage from Mr. Obama’s looming tax increase. John McCain could sue for plagiarism because versions of both ideas were part of his 2008 campaign platform.

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The White House will deny it, but it’s important to understand what a conceptual switcheroo this is. Mr. Obama’s economic policies to date have been based on the belief that government can drive growth by handing out checks to consumers, who will then spend the money and increase what economists call aggregate demand. Missing was any attempt to spur incentives for business or individuals to invest and take more risks. Even if this policy reversal is motivated by election desperation, it is still a tacit admission of the failure of its growth model.

The biggest short-term boost would come from allowing business expensing of capital purchases—investment in new plant, equipment, computers, technology and so on—in a single year. Such spending is currently written off over three to 20 years depending on the industry and an estimate of how long that the asset’s value depreciates. But especially in our information age with its premium on human capital, it makes less sense to depreciate one type of investment at a faster rate than another.

Immediate expensing would provide a powerful incentive for businesses to spend some of that $2 trillion or so in retained earnings that they are now hoarding out of fear and uncertainty. Labor will also benefit because encouraging capital investment makes American workers more productive on the job, which is the catalyst for higher wages.

When President Bush allowed large and small businesses to write-off 50% of their capital expenditures as part of his 2003 tax cut, business spending on equipment and software rose to $1.06 trillion by the end of 2004 from $821 billion in mid-2002, a near 30% rise, according to tax economist Steve Entin. U.S. employment grew for 46 straight months, with almost eight million net new jobs created.

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Capitol Hill employees owed $9.3 million in back taxes last year

September 9th, 2010 · Accountability, Corruption, Democrats, Taxes

By T.W. Farnam- Thursday, September 9, 2010; 12:17 PM

Capitol Hill employees owed $9.3 million in overdue taxes at the end of last year, a sliver of the $1 billion owed by federal workers nationwide but one with potential political ramifications for members of Congress.

The debt among Hill employees has risen at a faster rate than the overall tax debt on the government’s books, according to Internal Revenue Service data. It comes at a time when some Republican members are pushing for the firings of government workers who owe the IRS and President Obama has urged a crackdown on delinquent government contractors.

The IRS data does not identify delinquent taxpayers by name, party affiliation or job title and does not indicate whether any members of Congress are among the scofflaws. It shows 638 employees, or about 4 percent, of the 18,000 Hill workers owe money, a slightly higher percentage than the 3 percent delinquency rate among all returns filed nationwide.

The average unpaid tax bill is $12,787 among the Senate’s delinquent taxpayers and $15,498 among those working in the House.

IRS debt among government workers has surfaced as a political issue repeatedly over the years, most recently when Rep. Jason Chaffetz (R-Utah) introduced legislation this year to fire federal workers who owe back taxes unless they have entered into a payment plan. Eight Republicans co-sponsored the bill. No Democrats have signed on, and some have said firings would reduce the government’s prospects of being paid.

“If you’re on the federal payroll and you’re not paying your taxes, you should be fired,” Chaffetz said in an interview. He said the policy should apply across the board and “there should be no special exemptions.”

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Another reason Obama and the Dems should have thought thing through before just passing reform bills.

September 9th, 2010 · Accountability, Democrats, Government Control, Obama's Scheme, Selling Out the US, Treason, Unemployment

Financial overhaul’s unexpected fallout: Closing of D.C.’s Small Savers day care

By Lisa Rein Washington Post Staff Writer
Wednesday, September 8, 2010; 10:47 PM

Washington’s battle for regulatory reform wasn’t supposed to have this kind of collateral damage.

President Obama and Congress fought Wall Street for a year to push through a law to reform the country’s banks. But now they’re facing another fight they never expected – steps from the White House – against the toddler set and their high-octane parents.

The new law is threatening the existence of the Small Savers Child Development Center, which has operated for 24 years in the basement of the Office of Thrift Supervision at 1700 G St. NW. The bank watchdog that failed to police the country’s savings and loans is being closed – and its property dissolved. That means Small Savers has to go, too.

Small Savers parents – who include White House staffers, World Bankers, lobbyists, lawyers and journalists - have quickly become a lobbying juggernaut to save the small Washington institution under G Street.

“It will be a real tragedy if the financial crisis and the whole great economic soap opera claimed this day care center, too,” said Leon Wieseltier, literary editor of the New Republic magazine, whose 8-year-old son spent “four very happy and rich years” at Small Savers. “It may turn out the only thing working [in the building] was the day care center.”

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Most Americans object to planned Islamic center near Ground Zero, poll finds

September 9th, 2010 · Selling Out the US, Terrorist Attack, Treason

By Jon Cohen and Kyle Dropp Washington Post Staff Writers
Thursday, September 9, 2010; 3:06 AM

Most Americans say the planned Muslim community center and place of worship should not be built in Lower Manhattan, with the sensitive locale being their overwhelming objection, according to a new Washington Post-ABC News poll.

Two-thirds of those polled object to the prospective Cordoba House complex near the site of the former twin towers, including a slim majority who express strongly negative views. Eighty-two percent of those who oppose the construction say it’s because of the location, although 14 percent (9 percent of all Americans) say they would oppose such building anywhere in the country.

The new results come alongside increasingly critical public views of Islam: 49 percent of all Americans say they have generally unfavorable opinions of Islam, compared with 37 percent who say they have favorable ones. That’s the most negative split on the question in Post-ABC polls dating to October 2001.

Nearly a third of all Americans see mainstream Islam as encouraging violence, little changed from recent years. More, a slim majority, say it’s a peaceful religion.

“Whatever faith or God they believe in, I think most people are decent,” Susan Deal, 45, of Walbridge, Ohio said in a follow-up interview.

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Political controversy over Islam tarnishes 9/11 anniversary: How quickly we forget.

September 9th, 2010 · Deception, Democrats, Ethics, Homeland Security, National Security, Non-Transparency, Obama's Scheme, Selling Out the US, Terrorism from Within, Terrorist Attack, Treason

Islamic protesters burned US Flag and chanted "Death to America."

By Dan Balz and Jon Cohen Washington Post Staff Writers
Thursday, September 9, 2010; 12:02 AM

For almost a decade, the annual commemoration of the terrorist attacks of Sept. 11, 2001, has been seen as a day of national unity and sober remembrance. This year, contentious issues of religious freedom and national identity threaten to color the ninth anniversary of those tragic events.

Controversies over calls to burn the Koran and an ongoing debate over a proposed mosque and Islamic cultural center near Ground Zero in New York are drawing particular attention as the anniversary nears, sparking questions about how 9/11 became so politicized.

Islamic Radicals did THIS!

The reality is that, with rare exceptions, the meaning of those attacks has rarely been free of political overtones or debate. Common ground in the months after the attacks quickly gave way to partisan division over combating terrorism. What may be different this year is that earlier debates about who was “strong” in the fight against terrorism and who was not have been supplanted by questions about Islam and religious freedom.

Terry Jones, the pastor of a small church in Florida, wants to build a bonfire out of copies of the Koran on Saturday. That has brought condemnation across the spectrum. Army Gen. David H. Petraeus, commander of U.S. forces in Afghanistan, has warned that images of Islam’s holy book in flames could endanger the lives of U.S. forces. Both the White House and conservatives such as former Alaska governor Sarah Palin have criticized Jones’s plan.

But experts on public opinion say the controversy does not represent a significant new shift in attitudes. Andrew Kohut, president of the Pew Research Center, said fresh signs of a backlash against Muslims are not showing up broadly in national surveys. “Attitudes are mixed and not as positive as they were eight years ago,” he said, “but there’s no sign of an upswing in anti-Muslim fervor.”

Jones may epitomize the ease with which someone on the political fringe can draw attention and spark controversy. The debate over the proposed Islamic center represents more genuine divisions in the country over the limits of religious freedom and the sacred nature of the ground around where the World Trade Center once stood.

A new Washington Post-ABC News poll finds that two-thirds of Americans oppose building the Islamic center near the former site of the twin towers. Four in five of those opposed say their opposition is strictly because of the location. But 14 percent of the opponents (or 9 percent of all Americans) say they would oppose building it anywhere in the country.

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Karzai seeks to limit role of U.S. corruption investigators like Obama and Ft. Hood

September 9th, 2010 · Corruption, Deception, Foreign Policy, Government Control, Homeland Security, National Security, Selling Out the US, Treason, War on Terrorism

By Rajiv Chandrasekaran Washington Post Staff Writer
Thursday, September 9, 2010; 12:05 AM

Afghan President Hamid Karzai intends to impose rules restricting international involvement in anti-corruption investigations, a move that U.S. officials fear will hobble efforts to address the endemic graft that threatens support for his administration in Afghanistan and the United States.

Karzai wants to circumscribe the role of American and other foreign law enforcement specialists in two key anti-corruption organizations in the Interior Ministry by not allowing them to have direct involvement in investigations.

“The management will be Afghan, and the decision-makers will be Afghan, and the investigators will be Afghan,” Mohammad Umer Daudzai, Karzai’s chief of staff, said in a telephone interview Wednesday. Foreign advisers, most of whom work for the U.S. Justice Department, will be limited to “training and coaching, but not decision-making,” he said.

Concern about Karzai’s willingness to root out corruption has emerged as a flashpoint in the U.S.-Afghan relationship, with American officials arguing that he has not done enough to demand accountability and Karzai maintaining that the problem has been fueled by the influx of billions of dollars in foreign assistance.

The planned changes have alarmed U.S. officials in Kabul and Washington and prompted efforts to try to persuade Karzai and his advisers to soften the restrictions.

“What he’s proposing would effectively neuter these two bodies,” said a U.S. official involved in Afghanistan policy.

Daudzai said Karzai also plans to prevent the U.S. government from influencing the selection and augmenting the salaries of the Afghan investigators and prosecutors who serve in the two groups.

In June, U.S. officials involved in anti-corruption investigations told The Washington Post that senior officials in Karzai’s government had derailed investigations of politically connected Afghans. “Above a certain level, people are being very well-protected,” one senior U.S. official told The Post.

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CBO Update

September 9th, 2010 · CBO Update

The following has been added to CBO’s Web site:

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