Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Deficit

Despite Stock Market Gains, Public Pension Plans Fall Further Behind

This article first appeared at TheNewAmerican.com on Thursday, September 25, 2014:

 

In its latest report on public pension plans, Moody’s announced on Thursday that, despite recent historic gains in the stock market, those plans’ liabilities are increasing even more quickly. Reporting on the 25 largest public defined benefit pension plans in the country, Moody’s Global Credit Research estimates that those plans are now $2 trillion short of where they need to be to pay out all the benefits promised to their beneficiaries. This has occurred despite record gains in the stock market, which,

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California Governor Being Challenged by Republican Upstart in November

This article first appeared at TheNewAmerican.com on Tuesday, September 23, 2014:

English: Photo of California Attorney General ...

California Governor Jerry Brown

In response to a challenge posed by his Republican opponent for the governorship in November, California Governor Jerry Brown said:

A lot of people forget the mess that California was in just four years ago. There were 1 million jobs that had been lost. Our budget deficit was astronomical: 27 billion. We hadn’t had a budget on time in probably 10 years.

Brown’s challenger is Republican Neel Kashkari, a practicing Hindu born of Indian parents with a background as a Bush appointee and a former executive with Goldman Sachs. While his political positions on key issues qualify him as a RINO — Republican in Name Only — he is already closing the gap on the once-invincible California governor.

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House Slashes IRS Enforcement Budget Almost 25 Percent

This article first appeared at TheNewAmerican.com on Wednesday, July 16, 2014:

English: Anti-United States Internal Revenue S...

Earlier this week the House of Representatives took up the Financial Services and General Government Appropriations Act to fund the government for the next 12 months. In the process it took advantage of the opportunity to savage the IRS by cutting its funding severely, specifically its enforcement budget dedicated to “assisting” taxpayers to stay in compliance with its 74,000-page tax code.

Thanks to Lois Lerner (former director of the Exempt Organizations Unit of the IRS and potential future inhabitant of a federal penitentiary for her role in ordering the illegal scrutinizing and delaying of conservative groups’ applications for tax-exempt status and then covering up those orders by conveniently losing potentially incriminating e-mails), members of the House had a field day piling on amendments to the bill. Along the way they relieved themselves of some of the frustrations they have felt as the IRS has rebuffed and stalled them during various House committee investigations into those matters.

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The New Third Rail: Cutting Government Spending

This article was first published by The McAlvany Intelligence Advisor on Monday, July 14, 2014:

 

Historical government spending in the United S...

Historical government spending in the United States from 1902 to 2010

Back in February the Congressional Budget Office (CBO) estimated that the deficit for the 2014 fiscal year would be $514 billion, or about 3 percent of the total economic output of the country. Since this was a nearly 27 percent drop from last year, the implication is that all is well, nothing to see here, move along please. After all, the perception has been that the White House has been spending money faster than at any time in history, running up deficits and the national debt to staggering levels. Half a trillion? Is that all? Pocket change!

Greg Valliere, the chief political strategist for the Potomac Research Group, said at the time that this guaranteed that there would be no pressure for any sort of entitlement reform this year. Jack Lew, Obama’s Treasury Secretary, said the numbers bought some time: “We have a little time to deal with the long term.”

Last week both the White House and the CBO revised downward even further the expected deficit, with Obama taking full credit for the result:

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Eric Cantor Handily Defeated by Virtually Unknown College Professor

Eric Cantor headshot

In a primary election that Paul Rothenberg, a non-partisan political analyst, called “the political version of the San Francisco earthquake,” House Majority Leader Eric Cantor (R-Va.) lost overwhelmingly to obscure economics professor Dave Brat. This is the first time since 1899 that a House Majority Leader has lost his reelection bid in his party’s primary. Despite being outspent by Cantor by more than 25-to-1, Brat breezed to victory on Tuesday, capturing 55 percent of the vote to Cantor’s 44 percent.

Virtually ignored by establishment Republican groups like Club for Growth and Heritage Action, Bart won by basing his campaign on

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New Jersey Governor Christie’s Lipstick Problem

English: , U.S. Attorney, Governor-elect of Ne...

(Photo credit: Wikipedia)

This article was first published by The McAlvany Intelligence Advisor on Friday, May 23, 2014:

Thanks to the current age of skepticism, aided and abetted by the internet, the “lipstick” strategy being used by Chris Christie is about to fail, revealing instead the economic pig that New Jersey has become during his administration.

Back in March 2012, Christie touted his budget that would only balance if a miracle occurred:

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NJ Gov. Christie’s Conservative Light is Dimming

Chris Christie

Chris Christie (Photo credit: Gage Skidmore)

Less than six months into his second term New Jersey Governor Chris Christie is having an increasingly difficult time pushing the New Jersey “comeback” theme that gained him reelection in January. This is in addition to the Bridge Gate scandal that has already seen five of his top lieutenants resign or be fired, with three investigations continuing into the matter.

First of all there’s the $807 million budget shortfall in his $33 billion budget that must be filled by the end of June. Then there’s the state’s credit rating which has been downgraded three times so far this year (it’s only May!) and

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Obama’s New Budget Raises Taxes and Increases the National Debt

OBAMA: COMMUNIST PRESIDENT OF THE UNITED STATES

(Photo credit: SS&SS)

This article first appeared at the McAlvany Intelligence Advisor on Monday, April 29, 2014:

The Congressional Budget Office, in introducing its latest analysis of President Obama’s proposed budget, could just as easily have quoted Robert Welch, the founder of the John Birch Society, who said back in 1974 that the future would bring:

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Congressional Budget Office Confirms Obama’s Continuing Attack on the Middle Class

Saul Alinsky

Saul Alinsky (Photo credit: Wikipedia)

Robert Klein, a nationally renowned accountant who has written widely on taxes for many respected journals, was astonished to learn how much the taxes on his wealthy clients jumped just in the last year:

For [my] clients in the 39.6% tax bracket … their average federal income tax liability was $436,000, $51,000 greater than their 2012 tax liability … an average increase [of] 13.3%…

 

In summary, if you were in the 39.6% tax bracket in 2013, the 4.5% increase in your tax bracket, combined with additional income-tax liability resulting from additional tax on Medicare wages, a loss of itemized and personal exemption deductions, a 5% surcharge on long-term capital gains and qualified dividends, and the 3.8% tax on net investment income, reduced your spendable income considerably.

 

The damage was [even] greater for those subject to state income tax to the extent that unfavorable state tax law changes took effect in 2013.

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Despite Denials, the City of Vallejo is Headed for its Second Bankruptcy

Back in February, 2008, Vallejo, California, was in desperate shape. Councilwoman Stephanie Gomes saw what was coming: “Our financial situation is getting worse every single day. No [one] wants to declare bankruptcy, but if you’re facing insolvency, you have no choice….” Two months later her council voted 7-0 to declare Chapter 9 bankruptcy. In that two month period the city’s budget shortfall ballooned from $9 million to $15 million despite cuts to museums, libraries, senior centers and other publicly supported services like road repair. Now, according to Moody’s Investors Service, the city is

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Standard & Poor’s Downgrades Puerto Rican debt to junk status

Now that credit rating agency Standard & Poor’s has ended the suspense by announcing that it is cutting Puerto Rico’s $70 billion worth of general obligation bonds to junk status, questions about the island’s economic future abound. Will Fitch and Moody’s follow suit

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Rosy CBO Report Leaves out Critical Factors

At first reading the latest report on the government budget and the economy released on Tuesday by the Congressional Budget Office (CBO) is all sunshine and roses. In its summary of the 182-page report the CBO noted that deficits this year (from last October to next September) will be even lower than initially estimated, dropping to $514 billion, down from $680 billion last year and $1.1 trillion in 2012. And, in the very short run at least, further declines in deficits are expected through 2015, perhaps touching a low of

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Obama Executive Order to Force Americans to buy Government Bonds

Halfway through his State of the Union message Tuesday night, the president announced he was unilaterally going to fix another perceived problem through an executive order: mandating a requirement that all employers not already offering retirement plans start doing so. Said the president:

Let’s do more to help Americans save for retirement.

Today, most workers don’t have a pension. A Social Security check often isn’t enough on its own. And while the stock market has doubled over the last five years, that doesn’t help folks who don’t have 401(k)s.

That’s why, tomorrow, I will direct the Treasury to

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Highland Park, Michigan, is Teetering on the Brink of Bankruptcy

The final straw for Highland Park, Michigan, may have arrived in the form of a letter from Fifth Third Bank last month announcing it is ending its monthly checks that have provided life support for the city inside of Detroit for the last three years. One of three banks sending checks to the city, Fifth Third said in its letter dated December 12 that it is

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How to bankrupt a city: lessons from Scranton, Pennsylvania

This article first appeared at The McAlvany Intelligence Advisor on Friday, January 17th, 2014:

Poor Mert Gavin. He’s the owner of Mert’s Piano Bar in downtown Scranton, Pennsylvania, and between the pending 10% “drinking” tax and the extension of parking meter hours in front of his bar to 6PM, he’s finding that his customers are going home after work instead of stopping by for a cold one:

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Controversial Harvard Professors predict high inflation and defaults for the US

The two Harvard professors who made themselves famous, and then infamous, are at it again, now predicting that America will soon be forced to

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America’s Economic Freedom Slide Continues, says the Heritage Foundation

The latest Index of Economic Freedom released by the Heritage Foundation and the Wall Street Journal shows just how successful the Bush and Obama administrations have been in their seeming attempts to turn the United States into a third world economy. The index shows

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Ryan-Murray debt agreement gives away sequester cuts, sells out tea party conservatives

In announcing the budget agreement hashed out during secret negotiations over the past two weeks, Rep. Paul Ryan (R-Wis.) said:

I’m proud of this agreement. It reduces the deficit without raising taxes. And it cuts spending in a smarter way. It’s a firm step in the right direction…

This was for public consumption. In fact, now that the agreement has passed the House and will likely shortly pass the Senate, it will

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Judge declares Detroit bankrupt, gives OK to cut pensions and burn creditors

In the opening to his hour-long statement to a packed courthouse on Tuesday, federal bankruptcy court Judge Steven Rhodes said:

It is indeed a momentous day. We have here a judicial finding that this once proud and prosperous city can’t pay its debts. It’s insolvent.

It’s eligible for bankruptcy. At the same time it has an opportunity for a fresh start.

He reeled off the list of problems the city is facing:

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The Implosion of the Social Security Disability Ponzi Scheme Accelerates

Fresh data just released by the trustees of the Social Security Administration show that the number of people receiving benefits from the Disability Insurance Trust Fund has exploded over the last five years, reducing the surplus in that fund from $216 billion in 2008 to just over $100 billion in 2013. There were 7.4 million recipients in January 2009, but as of October 2013, there are nearly 9 million beneficiaries, not including

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.