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Entries Tagged as 'Where did the money go?'

Senate spending bill contains thousands of earmarks

December 15th, 2010 · Accountability, Congress, Corruption, Democrats, Dissention, Economy, Ethics, Federal Spending, Fraud Alert, Greed, Non-Transparency, Republicans, Selling Out the US, Tax Dollars, Taxes, Terrorism from Within

By Philip Rucker and Paul Kane Washington Post Staff Writers
Wednesday, December 15, 2010; 12:00 AM

Weeks after swearing off earmarks, many senators stand to gain tens of millions of dollars for pet projects in a massive spending bill that could be their last chance at the money before a more conservative Congress begins next month.

The $1.2 trillion bill, released on Tuesday, includes more than 6,000 earmarks totaling $8 billion, an amount that many lawmakers decried as an irresponsible binge following a midterm election in which many voters demanded that the government cut spending.

“The American people said just 42 days ago, ‘Enough!’ . . . Are we tone deaf? Are we stricken with amnesia?” Sen. John McCain (R-Ariz.), a leading earmark critic, said on the Senate floor, flipping through the 1,924-page bill as he pounded his desk.

The bill includes $18 million for two nonprofits associated with deceased Democrats, the late Sen. Edward M. Kennedy and Rep. John P. Murtha; $349,000 for swine waste management in North Carolina; and $6 million for a rural Iowa school program named after Sen. Tom Harkin (D-Iowa).

Senate Minority Leader Mitch McConnell (R-Ky.) epitomizes the conflicted nature of the debate. Formerly a member of the committee that doles out earmarks, McConnell reluctantly embraced a moratorium on the practice last month to send a signal that Republicans are serious about curbing spending.

Yet the legislation includes provisions requested this year by McConnell, including $650,000 for a genetic technology center at the University of Kentucky, according to an analysis of the bill by Taxpayers for Common Sense, a nonpartisan watchdog.

Saying he was now “vigorously in opposition” to the legislation, McConnell said Tuesday that rushed consideration of the bill “here on Christmas Eve” compelled him to try to block the bill through a filibuster. “I’m going to vote against things that arguably would benefit my state. I do not think this is the appropriate way to run the Senate,” he said.

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Harry Reid’s Holiday Jam: What the Senate wants to pass while you’re not paying attention.

December 15th, 2010 · Deception, Democrats, Ethics, Federal Spending, Greed, Non-Transparency, Selling Out the US, Senate, Tax Dollars, Taxes, Terrorism from Within, Treason

Reid's Holiday Message to the American People.

In the famous formulation often attributed to George Washington, the U.S. Senate is the saucer designed to cool the drink before it becomes law. In Majority Leader Harry Reid’s rush to beat the looming expiration of the 111th Congress, the Senate has become the express lane to jam through changes in military rules, a giant spending bill and even an arms treaty—and all with virtually no deliberation. Why are Republicans putting up with it?

The lame duck Congress was supposed to limp out of town this Friday, but yesterday Mr. Reid announced that in the dwindling days before Christmas he plans to pass the bipartisan tax deal, the New Start arms treaty with Russia, the immigration Dream Act, a “lands bill,” and a bill to let gays serve openly in the military. Oh, and yesterday he also dropped on his colleagues a 1,924-page, $1.1 trillion omnibus spending bill for fiscal 2011 that no one but a few Appropriators have read, if even they have.

Any one of these issues could warrant at least a week of debate if the Senate were playing its designated constitutional role. But the New Start pact and spending bill in particular deserve at least eight or nine legislative days of debate, with opportunities for Senators to educate the public and offer amendments. As it is, most Americans are preoccupied with their busy holiday lives and have no idea that the world’s greatest deliberative body isn’t deliberating at all.

The rush for New Start is a special affront to Senate prerogatives under the Constitution, which requires a two-thirds vote for ratification precisely to guarantee a considered debate. The Administration claims that failure to ratify the treaty in two weeks will offend the Russians, though the Russians have said they feel no such urgency. GOP leaders have given Mr. Reid dates in either January or February to bring the treaty to the floor, and upwards of a dozen Republicans seem to be leaning in favor of the pact.

At a minimum the GOP ought to insist on a debate that is long enough to clarify the U.S. understanding of the treaty. That’s especially important on missile defenses because the pact’s preamble includes the major blunder of re-linking offensive and defensive weapons. At the time the pact was negotiated, the Russians claimed this language meant they could leave the treaty if the U.S. developed new missile defenses. In remarks at the time, U.S. officials did not forcefully counter that claim.

The Obama Administration has since said the Russians are wrong, but the Senate must make this absolutely clear during the ratification debate. GOP Senators John McCain and Jon Kyl are preparing a formal “understanding” to accompany the treaty that would stipulate that specific future U.S. missile defense plans aren’t part of the deal.

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Reid threatens to keep Congress into next year: New spending bill totals $575.13 million per page

December 15th, 2010 · Deception, Democrats, Ethics, Federal Spending, Greed, Selling Out the US, Senate, Tax Dollars, Taxes, Terrorism from Within

Reid salutes th American People.

By Stephen Dinan The Washington Times Tuesday, December 14, 2010

Forget about going quietly into the night.

Senate Democrats on Tuesday unveiled a broad agenda for an end-of-session sprint that, in other years, could be a whole year’s worth of activity — ranging from an arms-reduction treaty with Russia to a major immigration bill to overturning the ban on gay troops.

And that’s not to mention the nearly 2,000-page, $1.1 trillion massive spending bill Senate Democrats said they’ll try to push through. The bill contains hundreds of pork-barrel spending projects and new rules governing everything from airport baggage to detainees at the prison at Guantanamo Bay, Cuba.

“We’re not through. Congress ends on Jan. 4,” said Senate Majority Leader Harry Reid, Nevada Democrat.

The omnibus spending bill is likely to get the most attention, spanning 1,924 pages and spending an average of $575.13 million per page.

It stands in contrast to the House, which last week passed a streamlined bill freezing fiscal 2011 government spending at 2010′s level. The Senate bill, though, boosts spending by $16 billion — a tough sell at a time when deficits and debt already are dominating the policy debate in Washington.

In some cases the spending bill not only rejects President Obama’s proposed cuts, it actually boosts spending. For example, Mr. Obama earlier this year told Congress to cut funding for the health and welfare package targeting Mississippi’s Delta region, which in 2010 received about $26 million. But the Senate bill includes funding and actually increases it to nearly $35 million in 2011.

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Nancy Pelosi’s Unwelcome Christmas Gift: Increase Taxes quickly before new session of Congress.

December 2nd, 2010 · Change of Power, Deception, Democrats, Dissention, Economy, Ethics, Federal Spending, Greed, Non-Transparency, Selling Out the US, Taxes, Terrorism from Within

A couple earning $80,000 could lose hundreds per month if the Bush tax rates aren’t extended.

By KARL ROVE

After ignoring congressional Republicans for 22 months and 10 days, President Obama hosted a “come together, right now” session with them Tuesday. The topic: the Bush tax cuts—on income, capital gains and dividends—that are set to expire at the stroke of midnight, Dec. 31.

The atmospherics at the White House on Tuesday were good, but the meeting isn’t likely to produce a quick agreement on substance. A lot of attention has been paid to congressional Republicans, whose strong desire to preserve the Bush rates is apparent. Less attention has been paid to the Democrats—among whom there is no consensus about what to do.

OpinionJournal.com Columnist John Fund on the tax debate within the Democratic caucus, and on the fight for key committee chairmanships in the House.

Thanks to her dogmatic rigidity and unquenchable passion for class warfare, House Speaker Nancy Pelosi continues insisting on extending the Bush tax cuts only for those who make less than $250,000. Mrs. Pelosi doesn’t have the votes to pass her proposal using a special House rule, the suspension calendar, which requires a supermajority and does not permit amendments. She might well lose if the bill proceeds through normal House rules—Democrats could join with Republicans to offer an amendment allowing an up-or-down vote on extending all the Bush-era tax cuts, which could pass.

Even if Mrs. Pelosi’s measure cleared the House, Senate Majority Leader Harry Reid has apparently signaled it can’t pass the Senate. All 42 Republican senators support extending all Bush-era tax cuts, depriving Mr. Reid of the 60 votes needed to invoke cloture. And there are Senate Democrats who also oppose raising taxes.

Since neither Mr. Obama nor Mr. Reid seem willing to force her to back down, Congress could go home without stopping the largest tax increase in the nation’s history.

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Obama Commission’s final deficit report preserves controversial spending cuts & tax increases

December 2nd, 2010 · Deception, Democrats, Economy, Ethics, Federal Spending, Government Control, Greed, Non-Transparency, Selling Out the US, Taxes, Terrorism from Within

By Lori Montgomery and Brady Dennis Washington Post Staff Writers
Wednesday, December 1, 2010; 3:48 PM

The leaders of President Obama’s fiscal commission released a final report Wednesday that is full of political dynamite, recommending sharp cuts in military spending, a higher retirement age and reforms that could cost the average taxpayer an extra $1,700 a year.

But as commission co-chairmen Erskine Bowles and Alan K. Simpson unveiled the plan at a Capitol Hill hearing, it was unclear whether they would be able to build a convincing bipartisan consensus before the panel’s 18 members – 12 of them sitting lawmakers – are scheduled to vote on the report Friday.

The White House continued Wednesday to reserve judgment on the commission’s work, which is intended to help shape the administration’s next budget request, due out in February.

“The president looks forward to reviewing their work at the conclusion of their votes … and evaluating their proposals and their votes as we move forward and put together a budget of our own for next year,” said White House press secretary Robert Gibbs. “So let me not get too far out on the commission until they’ve had a chance to complete their work.”

Two panel members – Sen. Kent Conrad (D-N.D.) and Sen. Judd Gregg (R-N.H.) – immediately came out in strong support, saying that although they don’t like everything in the package, it charts a responsible path away from the abyss of rising debt and potential fiscal crisis.

“America is in danger. And we can either look the other way, hope somebody else does something, or we can act,” Conrad said. “I’m going to support this plan and support it strongly. Because I don’t see another alternative. I just don’t.”

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Even after their defeat, Democrats keep insisting on a tax increase.

December 2nd, 2010 · Democrats, Government Control, Greed, Non-Transparency, Selling Out the US, Taxes, Terrorism from Within

‘It is not a sensible way to run a country to have this magnitude of tax issues left to annual uncertainty,” said Treasury Secretary Tim Geithner earlier this month, and he’s certainly right about that. But at the current moment the single biggest obstacle to more certainty is his boss, President Obama, who still refuses to compromise on the tax increase set to whack the economy in a mere 30 days.

After meeting with Congressional leaders yesterday, Mr. Obama dispatched Mr. Geithner and budget director Jacob Lew to negotiate a deal. Yet the President is still holding out against even a temporary extension of the 2001 and 2003 tax rates. Republicans won 63 House seats running against those tax increases, but Mr. Obama still seems under the spell of the dead enders led by soon-to-be-former House Speaker Nancy Pelosi.

The magnitude of the looming tax increase ought to snap him out of this hypnosis. If the Democrats who still run Capitol Hill for another month fail to act, tens of millions of American households will see their paychecks shrink immediately in the New Year.

OpinionJournal.com Columnist John Fund on the tax debate within the Democratic caucus, and on the fight for key committee chairmanships in the House.

Capital gains and dividend tax rates will climb to 20% and 39.6%, respectively, from 15%, and the top two income tax rates will climb to 38% and 41% (including deduction phaseouts), from 33% and 35%. The typical family with an income between $40,000 and $75,000 a year will pay as much as $2,000 more in 2011, as the 10% tax rate bracket and the $1,000 per child tax credit vanish.

This could have been resolved months ago, except that the White House and Congressional Democrats insist that some taxes must be raised. Mr. Obama wants the lower rates to expire on incomes of $200,000 for individuals and $250,000 for couples. Dozens of Democrats revolted against that in the campaign, so the latest gambit, courtesy of New York Senator Chuck Schumer, would raise that threshold to $1 million.

Republicans shouldn’t be suckered into raising taxes on anyone, especially not on small business job creators. The U.S. corporate tax rate of 39% (a combination of state average and federal rates) is already about 15 percentage points above the international average, and for the first time in a generation the personal rate of 41% would rise above the average of our overseas rivals. That’s all before the 3.8% surtax on investment income arrives in 2013, courtesy of ObamaCare.

Because most nations tax their companies at a business rate lower than the personal rate, the Tax Foundation says the Obama plan would mean that many Subchapter S corporations in the U.S. would pay “virtually the highest tax rates in the world on their business income.” In other words, the after-tax rate of return on investment in the U.S. would fall relative to investing in Europe or Asia. This is an invitation to outsource more jobs. The U.S. should be cutting tax rates to become more competitive, as President Obama’s deficit reduction commission and tax reform advisory panel have recommended.

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Obama administration gives billions in stimulus money without environmental safeguards

November 29th, 2010 · Accountability, Deception, Democrats, Economy, Environment, Federal Spending, Obama's Scheme, Selling Out the US, Stimulus

By Kristen Lombardi and John Solomon – Center for Public Integrity
Sunday, November 28, 2010; 9:41 PM

In the name of job creation and clean energy, the Obama administration has doled out about $2 billion in stimulus money to some of the nation’s biggest polluters while granting them exemptions from a basic form of environmental oversight, a Center for Public Integrity investigation has found.

The administration has awarded more than 179,000 “categorical exclusions” to stimulus projects funded by federal agencies, freeing the projects from review under the National Environmental Policy Act, or NEPA. Officials said they did not consider companies’ pollution records in deciding whether to grant the waivers. They said that creating jobs quickly was an important part of the stimulus plan, and that past environmental violations should not disqualify a company from pursuing federal contracts for unrelated projects.

The projects include:

- An electrical-grid upgrade project in Kansas led by Westar Energy, the state’s largest coal-burning utility, which settled a major air pollution case by paying half a billion dollars in penalties and remediation costs. The Energy Department granted the NEPA waiver to Westar’s project, funded by a $19 million stimulus grant that was approved on the same day the settlement became official. Westar considers its “smart grid” project to be “our basic,standard, above-ground upgrade,” said Brad Loveless, the company’s environmental director. “From everybody’s perspective, there really wasn’t the potential for smart grid to have environmental problems.”

- A wind farm project in Texas, as well as an electrical-grid upgrade project in five additional states, undertaken by Duke Energy. The department granted the NEPA waiver to both Duke projects, funded by a combined $226 million in stimulus grants, even as the energy corporation continues its decade-long defense against two of the largest air pollution cases involving coal utilities in the nation’s history. “We’re basically adding communication infrastructure on top of what is already there so it is not disturbing the environment,” Duke’s Paige Layne said.

- A project to create clean-burning biofuel from seaweed led by chemical giant DuPont, which received $8.9 million in stimulus funds in February. That amount nearly equals the environmental fine DuPont paid in 2005 for hiding the dangers of its toxic chemical known as C8 from federal regulators for two decades. In a statement, DuPont stressed that it “has not applied for an environmental exclusion” for its project, but rather is “following the necessary process set forth by the Department of Energy.” It concludes, “Each project that we work on includes, by our own policy, a comprehensive and individualized product stewardship program.”

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Fed lowers economic expectations for 2011

November 24th, 2010 · Deception, Dissention, Economy, Federal Spending, Non-Transparency, Obama's Scheme, Selling Out the US, Tax Dollars

By Neil Irwin Washington Post Staff Writer
Wednesday, November 24, 2010; 12:40 AM

Unemployment is set to remain higher for longer than previously thought, according to new projections from the Federal Reserve that would mean more than 10 million Americans remain jobless through the 2012 elections – even as a separate report shows corporate profits reaching their highest levels ever.

Top Federal Reserve officials project that the unemployment rate, now 9.6 percent, will fall only to about 9 percent at the end of 2011 and about 8 percent when the next presidential election arrives, in late 2012. The central bankers had envisioned a more rapid decline in joblessness in their previous forecasts, prepared in June.

The sober economic forecast comes despite signs that the recovery is picking up slightly. The Commerce Department said Tuesday that gross domestic product rose at a 2.5 percent annual rate in the three months ending in September, not 2 percent as earlier estimated. And there have been solid readings in recent weeks on job creation, manufacturing and retail.

The apparent contradiction reflects the brutal math that faces a nation trying claw out of a deep recession: Moderate growth, which would be fine in normal times, will do little to bring down sky-high joblessness, a reality reflected in the Fed’s forecasts.

Even as conditions are likely to remain miserable for job seekers for years to come, an extraordinary bounce-back is underway in the nation’s corporate sector, with profits rebounding 28 percent over the past year to an all-time high in the third quarter.

Businesses’ spending on compensation for employees, by contrast, rose only 7.6 percent.

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Government made $125 billion in improper payments last year

November 22nd, 2010 · Deception, Economy, Federal Spending, Government

By Ed O’Keefe Washington Post Staff Writer
Wednesday, November 17, 2010; 7:57 PM

The federal government’s improper payments totaled about $125 billion in fiscal 2010 as unemployment insurance and Medicaid payments increased, officials said Tuesday. But agencies also recovered about $687 million mistakenly paid to delinquent government contractors and beneficiaries.

The government’s total improper payment amount climbed $15 billion from the previous year, according to statistics from the Office of Management and Budget. The payments included about 89,000 checks for $250 each sent to dead or incarcerated people as part of the economic stimulus program.

“This is an unfortunate result of the recession and of basic math: the more that is paid out, the more paid out in error even if the overall rate declines,” OMB Deputy Director Jeffrey Zients wrote Tuesday on his blog.

The overall payment error rate dropped to 5.49 percent in fiscal 2010, down from 5.65 percent the previous year. The drop means the government avoided making about $3.8 billion in improper payments, OMB said.

President Obama wants agencies to recoup at least $2 billion in improper payments by the end of fiscal 2012. In order to do so, he ordered the establishment of a government-wide “do not pay” database to stop payments made to dead or incarcerated people and debarred or suspended contracting firms. He also signed a law in July that penalizes agencies for failing to do so.

“We’re right on target – in fact, as we look at the numbers, we’re ahead of schedule,” OMB Controller Danny Werfel said Tuesday.

Eight of the 10 largest government programs that account for most of the government’s improper payments reported lower error rates last fiscal year, Werfel said. The Labor Department’s unemployment insurance program and the Social Security Administration’s old age survivor benefits program made more improper payments, he said.

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Obama’s deficit commission proposing to reduce the annual cost-of-living increases in Social Security.

November 10th, 2010 · Deception, Greed, Non-Transparency, Obama Nominees, Obama's Scheme, Selling Out the US, Social Security

By ANDREW TAYLOR – The Associated Press
Wednesday, November 10, 2010; 1:24 PM

WASHINGTON — Leaders of President Barack Obama‘s bipartisan deficit commission on Wednesday proposed reducing the annual cost-of-living increases in Social Security, part of a bold plan to control $1 trillion-plus budget deficits.

The proposal also would set a tough target for curbing the growth of Medicare and recommends looking at eliminating popular tax breaks, such as mortgage interest deduction.

As proposed, the plan by Chairman Erskine Bowles and former Sen. Alan Simpson, R-Wyo., doesn’t look like it can win support from 14 of the commission’s 18 members to force a debate in Congress. Bowles is a Democrat and was former President Bill Clinton‘s White House chief of staff.

Cuts to Social Security and Medicare are making some liberals on the panel recoil. And conservative Republicans are having difficulty with options on how to raise tax revenue. The plan also calls for cuts in farm subsidies, foreign aid and the Pentagon’s budget.

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