Obama gave a speech today touting a “new beginning” (I don’t even want to know what that means) to the Muslim World.  It was, as usual, a great speech.  Understanding.  Mutual respect.  Freedom of religion.  Women’s rights.  Good stuff.  I was fine until this part: “Summit on Entrepreneurship.”  That’s where my eyeballs started to bleed. I began to wonder why Obama is such a fan of Entrepreneurship in the Muslim world.  Maybe he believes it’s a uniquely Muslim phenomenon.

Make no mistake.  The Government has staged a hostile takeover of three major facets of our nation’s economy:

First, our financial sector is already firmly in Government’s hands.

Second, our manufacturing and energy sector is on its way.  How?  Let me connect the dots:

• Government Bails out GM and Chrysler.–CHECK
• Government asks GM CEO (employee of GM for 30 years) to step down.–CHECK
• Government converts its GM and Chrysler assets into Preferred Stock (which means it has voting rights…it didn’t have to do that, it could have just issued bonds)–CHECK
• Government owns over half the voting rights of GM and Chrysler–CHECK
• THEN the Government send them into Bankruptcy (couldn’t have done that BEFORE owning them, that would be CRAZY).
• Government creates a brand new division of GM to build little munchkin cars that noone (currently) wants to buy.–CHECK
• Government Motors then decides to spin off Hummer, the most gas-guzzling of the gas guzzling cars to another company–in China–for a profit–CHECK.
• Government then begins pushing HARD an “energy” plan which would (by Obama’s own admission) drive gas prices WAY up–COMING SOON
• The people of the United States like good citizens are then encouraged even more (through EXTRA tax incentives on top of the ones that are already in place) to buy the little piece of junk munchkin cars–call it “The People’s Car”–because they can’t afford a gallon of fricking gasoline–GOD HELP US ALL.

Result? Federal Government has taken over the energy industry and a huge chunk of the manufacturing sector–which narrows down further the ability for anyone to compete with the Government, therefore ENTREPRENEURSHIP in the energy and manufacturing sector goes away.  Noone can find a decent job that doesn’t involve dealing with the Federal Government.  And guess what…at the Government’s OWN admission, carbon emissions planet-wide doesn’t go down ONE BIT for decades…DECADES.

Next is Health Care:

• Government spends $19 billion on creating a system where doctors (many who are entrepreneurs) are bribed into putting their patients’ medical information on a DHHS managed database.–CHECK
• Government creates a “Nationwide Exchange” where people can compare plans…all of which will be forced to accept pre-existing conditions without exclusions.
• The private plans on the “Exchange” become too expensive, because (as happened in NY and other states) guaranteed issue results in noone buying insurance until they desperately need it…for a “pre-existing” condition.
• Government steps in to fix this “crisis” by creating a “Public Option” where tax-subsidized plan options are made available to compete with private plans…Those who can’t afford it are given a “hardship exemption” so they get it for free. (OH, and by they way, now it’s against the law NOT to get ANY coverage)
• Doctors (small business owners) who have stopped accepting coverage from Medicare and Medicaid will now be forced by law to do so, along with accepting “Public Option” patients.
• Finally, it becomes against the law to pay cash for medical treatment, because the DHHS can’t control it, so for “safety reasons” all transactions will be made through Government insurance coverage or maybe one or two (”bailed out”) insurance companies who will provide benefits to a few Government-owned companies in the Financial, Manufacturing, or Energy/Utilities sectors.

The result? The Federal Government has destroyed any aspect of Entrepreneurship in the Health Care sector and instead has full operational and informational control over your health care through the handy dandy DHHS database.  So whether you’re covered by a DHHS “public option” or benefits through a company (which will likely be owned by the Federal Government), your health care will be finely controlled by Bureaucrats in the Department of Labor and the DHHS.

Why am I telling you all of this?  What can we do?  They ignored us on the Financial sector, they’ve been ignoring and are continuing to ignore us on Manufacturing and Energy.  They will ignore us on Health Care as well.

I’m becoming more and more convinced that the only option left is for 37 states to call for another Constitutional Convention to create an amendment to clarify the tenth one.

But if that seems to extreme, at least understand this.  If we don’t act locally, starting RIGHT NOW…

Next is housing and education.  Then it’s all over…

My heart goes out to the folks in Italy.  Many will be celebrating an albeit humble Easter.  Chin up, Italians; the US is donating $50,000 in emergency aid.  Some pretty funny comments after the article.  I piratically like the following:

“$50,000? Is that a typo? Why don’t we just send them some DVDs or an iPod?”

“ACORN got $4.17 billion dollars in the so-called “stimulus plan”.

Meanwhile, you’ve probably already read about the $900M in aid to rebuild Gaza.  Overall pledges from over 40 countries were $5B.  Hmmm.  So 2.5% of the donors paid 18% of the aid.  Interesting.  Sounds familiar (hat tip TaxProfBlog via Brain Terminal:

“Top 1% earned 19% of Income, Paid 28% of All Federal Taxes in 2006.”

While I’m sure this isn’t the most unbiased of sources, Hamas is planning on building a military staff college.  Wonder where they got the money to do that?  Guess they didn’t get Obama’s memo and good faith efforts to achieve peace through nonproliferation.

I’ve been thinking about what the Loudoun County Government Administrator said last year about county taxes.  He said that the issue isn’t how high the taxes should be, rather how much taxes loudoun residents would pay.

In a recent public forum regarding the Loudoun County budget, the majority of the “public” at the forum seemed to be in favor of higher taxes.  In fact, they applauded it.  Flash back to 2004 when Loudoun County Board of Supervisors member created:

“Loudoun Legacy Fund to provide citizens the opportunity to voluntarily contribute funds above and beyond the taxes levied on real estate.

Through the Legacy Fund, individuals, businesses, estates, trusts and any other entity may make voluntary contributions and may designate those contributions to any of the agencies and departments of the Loudoun County Government, such as Parks, Recreation and Community Services; Economic Development; the Loudoun County Public Schools; and the Loudoun Public Library; and for projects such as road improvements and land easements. “

The website even provides who the check should be written out to and the address where the check should be sent.  Given the latest hoopla (a technical term) for and about higher taxes for Loudoun County residents, you’d think that this Legacy Fund was being used to the fullest, right?  Think again.  I was advised this week via voice mail from the Loudoun County Board of Supervisors that the Legacy Fund was shut down for lack of use and interest.  If that doesn’t provide market research or proof of what Loudoun residents think of higher taxes, I don’t know what does.

Loudouners, get ready to pay more taxes.  If your a fiscal conservative, shut your mouth, as these tax increases are for The Children.  I understand that during tonight’s public forum on the budget, resounding applause was the response to mentions of increase in taxes to benefit the most glorious of all recipients–The Children.  So, higher taxes are needed in order to sustain the current level of funding for education in Loudoun.  Let me see if get this straight.  Am I to believe from the Loudoun County Government that for past xx number of years (any number will do here) the education budget is the most efficient and provided the most benefit with the least tax dollars?  I don’t buy it.  I just don’t.  How did we not spend to our means and tax dollars at that time.  We need to tighten our belts, not steal the clothes off our taxpayers backs!  Who are these people!?!  Am I the only who is completely disappointed with the county government and their lack of fiscal creativity or honesty.  WTF?  I hope my son doesn’t pick up this government’s bad habits!

Well, I say to those who support paying higher taxes–you are more than willing to pay higher taxes and you can go ahead and pay my share.  It’s called the Legacy Fund.

Apparently the real victory for Mr. Maldonado, the Republican who broke ranks to end the “crisis” (by raising taxes by almost $13billion) was a provision to create (or potentially create, subject to a referendum, of course) an “open primary” system.

A proposed constitutional amendment would go before voters in June 2010 instituting a “top-two” primary system, which would effectively eliminate party primary ballots, erase candidate party labels in primary elections and allow voters to choose the two candidates - of whatever party - who would compete in the general election.

An open primary would dissolve the current political primary system, and has the potential to seriously erode party power and change the entire landscape of state politics.

The measure was the work of Republican state Sen. Abel Maldonado of Santa Maria (Santa Barbara County), the swing vote Democrats needed to push through state budget legislation Thursday morning. That vote earned him the wrath of his party.

So, in other words, Maldonado has cut a deal whereas while earning the wrath of his party he weakens the party, therefore weakening the party’s ability to affect his reelection (by pushing an alternative in the primary). How “courageous” of Maldonado to cut a deal to protect his job, and how “bi-partisan” of all the other legislators to agree to protect their jobs from “party politics.”

Meanwhile, about $26 billion dollars of the Stimulus Package will be coming California’s way. Wonder how much of that will given BACK to Californians in a tax cut? Anyone want to guess?

The bill was finally posted in its “final” form late last night at about 11pm Eastern.  This is the $48 hours that we have to look at this thing?  They’re voting today…less than 18 hours after the final version of the bill was posted.  The NTU emailed me this morning with a summary of some of the non-stimulating stimulus:

• $24 million for USDA buildings and rent
• $176 million for renovating Agricultural Research Service buildings
• $290 million for flood prevention activities
• $50 million for watershed rehabilitation
• $1.4 billion for wastewater disposal programs
• $295 million for administrative expenses associated with food stamp program
• $1 billion for the 2010 Census
• $200 million for public computer centers at community colleges and libraries
• $650 million for the DTV converter box coupon program
• $360 million for construction of NIST buildings
• $830 million for NOAA research and facilities
• $2 billion for Byrne JAG program
• $10 million to combat Mexican gunrunners
• $125 million for rural communities to combat drug crimes
• $1 billion for the COPS program
• $1 billion for NASA
• $300 million to purchase scientific instruments for colleges and museums
• $400 million for equipment and facilities at the NSF
• $3.7 billion to conduct “green” renovations on military bases
• $375 million for Mississippi River projects
• $10 million for urban canals
• $5 billion for weatherizing buildings
• $2 billion to develop advanced batteries for hybrid cars
• $3.4 billion for fossil energy research (possibly including an earmark for FutureGen)
• $5.1 billion for environmental cleanup around military bases
• $5.5 billion for “green” federal buildings
• $300 million for “green” cars for federal employees
• $20 million for IT upgrades at the Small Business Administration
• $200 million to design and furnish DHS headquarters
• $98 million earmark for a polar icebreaker
• $210 million for State and local fire stations
• $125 million to restore trails and abandoned mines
• $146 million for trail maintenance at National Park Service sites
• $140 million for volcano monitoring systems
• $600 million for the EPA Superfund environmental cleanup program
• $200 million to clean up leaking underground storage tanks
• $500 million for forest health and wildfire prevention
• $25 million for the Smithsonian Institution
• $50 million for the National Endowment for the Arts
• $1.2 billion for “youth activities” (for “youth” up to 24 years old)
• $500 million earmark for NIH facilities in Bethesda, MD
• $1 billion for Head Start
• $32 million for home-delivered nutrition services
• $160 million for volunteer programs at the Corporation for National and Community Service
• $500 million earmark for the SSA National Computer Center in MD
• $220 million for the International Boundary and Water Commission, U.S. and Mexico
• $8 billion for high-speed railway (including an earmark for Harry Reid’s LA to Las Vegas MagLev)
• $1.3 billion for Amtrak

Name one of these items (totaling over 50 billion dollars) that actually do anything to stimulate the economy? If these spending items are not worthy of making it on their own weight, then they certainly don’t need to be a part of a stimulus package. And this list is just a tip of the iceberg. A real stimulus package would be a tax break to the top 1%, but don’t get me started on that.

(If you don’t think a tax break to the top 1% would have a more drastic effect on our economy as a whole than ANYTHING in this $800 billion crap sandwich, then go study economics. Even John Meynard Keynes would have trouble disagreeing with this statement, and he’s the so-called “father” of this twisted sort of  “demand-side” philosophy that’s dominating the progressive mindset these days.)

But the real problem is that Congress wants to get this to President’s desk on Monday…before giving us a chance to realize how laden with nonsense it really is.

The Washington Post reports that “Daschle Owed Back Taxes That Exceeded $128,000″ over 3 years.  (I wish I was making enough to owe that much in taxes over 3 years!)  The reporter has the audacity (of hope, I suppose) to say that it may pose an obstacle to his confirmation as DHHS Secretary.  I really don’t know what Washington Post is basing that on.  It certainly didn’t hinder our current Treasury Secretary’s confirmation.

But, if companies go overseas to avoid paying taxes, then that is double plus ungood.

This is how the referendum will be worded:

QUESTION:  Shall Loudoun County, Virginia, be authorized to levy a tax, pursuant to Virginia Code Section 58.1-3833(A), on food and beverages sold for human consumption by restaurants and on prepared foods sold ready for human consumption by grocery stores and convenience stores, in an amount not to exceed 4% of the amount charged for such food and beverages, to be used exclusively for school construction projects and school construction debt service?
(     )  YES

(     )  NO

The way it should read is this:

Question: Shall Loudoun County while facing a downturn in our economy, make that downturn even worse by a) making Loudoun County residents and visitors to our county pay MORE for their meal out and b) making sure that restaurants have less money in their pockets to pay their employees. This money is to be used “for the children” though, so even though there really won’t be any extra money, and could potentially make our debt even worse with the added possibilities of closing restaurants, you should feel better that we “care” enough to raise taxes on the hospitality industry in Loudoun.
( ) YES
( ) NO

Anyone that thinks that our Real Estate taxes are going to somehow be miraculously lowered by creating a meals tax is in a dream world. It doesn’t work; it’s never worked. Look at Maryland.

Vote “NO” for the love of God, and for more information please the site for Loudoun Taxpayers for Accountable Government.

Nancy Pelosi wrote last week in the USA Today that “we” (meaning the Congress, of course–she certainly doesn’t mean “We the People”) need to do more.  Another stimulus package.  And it appears that Bernanke is going to support it, even though the Bush Administration has been “cool” to the idea (meaning they will eventually support it, but only after trying to sound like Fiscal Conservatives).

FOR THE LOVE OF GOD STOP!!!

There is NO evidence that the economy will even be slightly “stimulated” by more action by the Fed or Congress.  Their meddling has INCREASED uncertainty, not decreased it, and everything looks obviously like it’s been thrown against the wall to see what’ll stick.

The dirty little secret here, and the thing that noone is willing to say out loud:

“Middle Class” stimulus does not “stimulate” the economy.  The “trickle up” theory has WAY less evidence behind it than the “trickle down” theory.  Tax cuts on the top 1% increase revenues to the government and create jobs.  Tax hikes on the top 1% do the opposite.  Tax cuts to the Middle Class decrease revenues to the Government and have little effect on jobs.

Maybe it’s not “fair” but it’s the facts.

Bernanke’s support of a fiscal stimulus package further proves that he has no confidence that a monetary stimulus package will have any effect at all.  And of course it won’t.  One commentar on MarketWatch called a Bernanke speech, “The ULTIMATE sell signal.”  He’s not far from the truth.

I received this from the Jordanian:

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that’s what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. ‘Since you are all such good customers,’ he said, ‘I’m going to reduce the cost of your daily beer by $20.’ Drinks for the ten now cost just $80.

The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’ They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man’s bill by
roughly the same amount, and he proceeded to work out the amounts each should pay.

And so:

The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33% savings).
The seventh now paid $5 instead of $7 (28% savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).

Each of the six was better off than before And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.

‘I only got a dollar out of the $20′, declared the sixth man. He pointed to the tenth man,’ but he got $10!’

‘Yeah, that’s right’, exclaimed the fifth man. ‘I only saved a dollar, too. It’s unfair that he got ten times more than I!’

‘That’s true!!’ shouted the seventh man. ‘Why should he get $10 back when I got only two? The wealthy get all the breaks!’

‘Wait a minute,’ yelled the first four men in unison. ‘We didn’t get anything at all. The system exploits the poor!’

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.