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: Spending

The Kansas Referendum on Reagan’s Tax Cut Policies

This article was published at The McAlvany Intelligence Advisor on Wednesday, September 24, 2014:

Big government liberals and high spending politicians have converged on Kansas, seeing an opportunity to discredit not only Ronald Reagan’s tax policies but to get even with the Tea Party, which took out a number of “moderate” Republicans in the state Senate over the last two election cycles.

Gov. Sam Brownback (pictured above), a supporter of less government and lower taxes, was able to ride the conservative wave that resulted in tax reform that not only increased an individual taxpayer’s standard deduction from $4,500 to $5,500 but also

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Foreign Affairs: Give Away Free Money!

This article first appeared at the McAlvany Intelligence Advisor on Friday, August 29, 2014:

Foreign Affairs

Foreign Affairs

What happens when a college professor meets up with a graduate student from Oxford University, intending to solve the world’s economic problems? What happens when they consider that the previous attempts to revive the economy have failed and their recommendation is to do more of the same?

The title of their resultant article in Foreign Affairs – the premier publication of the Council on Foreign Relations – explains it all:

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Article in CFR Magazine: Give Away Money to Stimulate Economy

This article first appeared at TheNewAmerican.com on Thursday, August 28, 2014:

 

Los Angeles Police Department (LAPD) Bell 206 ...

Mark Blythe, a professor at Brown University, and Eric Lonergan, a hedge fund manager living in London, have conjured the ultimate solution to a stagnant economy: Central banks should give away free money.

These two authors of a lengthy and allegedly erudite article in the September/October 2014 issue of Foreign Affairs, published by the Council on Foreign Relations (CFR), appear to be living in an alternate universe, as their suggestion, if it were fully implemented, would push the world’s economy back to the Dark Ages.

The article, entitled “Print Less but Transfer More: Why Central Banks Should Give Money Directly to the People,” rests on the false assumption that

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Welfare State Costs Taxpayers More Than $2 Trillion a Year

This article first appeared at TheNewAmerican.com on Wednesday, August 6, 2014:

 

Following the release of the latest budgetary statement from the U.S. Treasury, Ali Meyer dove into the statistical morass of charts and graphs to determine just how much the welfare state is paying out in benefits. Meyer, writing at CNS News, concluded that beneficiaries received over $2 trillion from the American taxpayer last year, or almost

 

Tea Party Protest, Washington D.C. September 1...

Taxpayers protesting

60 percent of all federal government spending. This included “means-tested” benefits — which require incomes to be below a certain level to quality for them — as well as “non-means tested” benefits such as Medicare, Social Security, unemployment insurance, workers’ compensation and the like.

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Santa Clara’s Field of Dreams

This article was first published at The McAlvany Intelligence Advisor on Monday, July 21, 2014:

Cover of "Field of Dreams (Widescreen Two...

Ray Kinsella, meet the Mayor of Santa Clara, California, home of the brand new Levi’s Stadium where the San Francisco 49ers are scheduled to play their home games starting this fall. And where, it is predicted, their fans will come to watch.

Whether enough of them will is an open question.

Already nearly a third of the 49ers’ season ticket holders have

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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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Tax Cuts of Kansas Already Improving the State’s Economy

This article was first published at TheNewAmerican.com on Monday, July 14, 2014:

Kansas City Skyline 1

Kansas City, Missouri’s Skyline

When Kansas Governor Sam Brownback signed into law the first of several reductions in his state’s income taxes back in May 2012, he wrote:

Our new pro-growth tax policy will be like a shot of adrenaline into the heart of the Kansas economy. It will pave the way to the creation of tens of thousands of new jobs, bring tens of thousands of people to Kansas, and help make our state the best place in America to start and grow a small business.

By cutting the top tax bracket by 25 percent and eliminating taxes on small businesses altogether, he expected great things to happen:

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Katrina Mayor Fails to Make Worst 10 Mayors list

This article first appeared at The McAlvany Intelligence Advisor on Friday, July 11, 2014:

U.S. President George W. Bush and Nagin meet t...

U.S. President George W. Bush and Nagin meet the week after Hurricane Katrina, September 2, 2005.

When his sentence of 10 years in federal prison for corruption while mayor of New Orleans was announced on Wednesday, some wondered if Ray Nagin would make it into the top ten most corrupt mayors in history.

No way.

He might have done better if the court was giving out prizes for play-acting innocence or for hypocrisy. When he learned where he was going to be spending the next 10 years, Nagin claimed he was framed:

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Texas Beats California: No Income Tax, Booming Economy, Friendly Folks

This article was first published at TheNewAmerican.com on Tuesday, July 8, 2014:

texas our texas

Texas, Our Texas!

Following Toyota’s announcement April 28 that it would be consolidating its three American business headquarters and moving them from California to a new $300-million campus in Plano, Texas, the debate over why has heated up once again. Toyota follows Occidental Petroleum (which is leaving Los Angeles for Houston, after being there for a hundred years), Raytheon (which is moving its El Segundo headquarters to McKinney, Texas), and Legal Zoom (the largest legal-issues website in the world, which has already moved from Los Angeles to Austin). In the past 18 months more than 50 companies have made the same decision to move from California to Texas.

Some say it’s because of the lower cost of living in Texas. The cost of living in Plano is about a third lower than in the Los Angeles-Long Beach area where Toyota is currently located. As calculated by the Dallas-based conservative think tank National Center for Policy Analysis, “People of all incomes will save in Texas,” according to Pamela Villarreal, a senior fellow at the institute. Some will save a little; others will save a lot by moving to Texas to keep their jobs with Toyota. As Villarreal explained, the calculation takes into account property taxes “which are pretty high in Texas” — about twice what they are in California for equivalently priced homes. Once real estate taxes are factored in, a single woman in Texas making $75,000 a year will have about $14,000 more in discretionary income than she would if she lived in California, but married workers making $150,000 a year who move from California to Texas would not see as dramatic a jump in discretionary income.

The Manhattan Institute says it makes sense for California companies to make the move to Texas, owing to California’s high taxes, oppressive regulations, expensive electricity, union influence, and the high cost of labor. According to the U.S. Energy Information Administration (EIA), the cost per kilowatt-hour for commercial establishments in California is 13.11 cents while it’s only 8.2 cents in Texas — a saving of almost 40 percent. For industrial users, the savings are even greater: 10.72 cents per KWH in California versus just 5.86 cents in Texas. That cuts a heavy user’s energy bill in Texas nearly in half. Advantage: Texas

The advantage enjoyed by Texas is reflected in the states’ comparative economic growth rates: nearly four percent last year in Texas versus half that in California. In job growth, Texas regained the jobs it lost during the Great Recession by May of 2011 while California just made it back to even by May of this year — a three-year difference in favor of Texas. Since May 2011, Texas has added more than a million new jobs, while California has added barely 25,000 new jobs since this past May. Advantage: Texas

According to the blog 24/7 Wall Street, Texas ranks eighth among the country’s most quickly growing states with GDP growth jumping by $1.5 trillion in 2013. Its population continues to grow as well, with unemployment below the national average. California is well off the pace. Advantage: Texas

Bradley Allen, a pediatric heart surgeon in Paso Robles, just announced his candidacy for Congress in California’s 24th district, and in the process noted the difference between California and Texas in an opinion article at the Wall Street Journal: “Texas has no state income tax, while California’s 13.3% marginal rate is the highest in the country. Electricity rates are about 50%-88% higher compared to Texas due to the Golden State’s renewable-energy mandate, and its gas is 70-80 cents per gallon more expensive because of taxes.” Advantage: Texas

Allen’s opponent is incumbent Lois Capps, who sports a dismal Freedom Index rating of just 21 out of 100 on constitutional issues. Out of California’s 53 congressional districts, 18 of them have FI ratings of 20 or lower, while just one has an FI rating of 80 or higher. In Texas, by contrast, just three representatives have a rating of 20 or less out of the state’s 36 districts, with one, Rep. Steve Stockman, holding an FI rating of 95. Advantage: Texas

One of the best measures of the difference between the two states is just how much a Californian would have to pay to move his family to Texas. In November 2012, a Californian living in San Francisco would pay $1,693 to rent a 20-foot U-Haul truck and drive it San Antonio. On the other hand, a Texan in San Antonio moving to San Francisco would pay just $893 for the same truck. (Since then the numbers have become even more favorable: A Californian moving his family on August 1 from San Francisco to San Antonio would have to pay $1,890 for the same truck while a Texan moving the other way would pay only $737.) Advantage: Texas

However, David Horsey, writing for the Baltimore Sun, noted that Californians moving to Texas will leave an awful lot behind:

California has Silicon Valley and Hollywood. Texas has oil and gas.

California has Barbara Boxer and Nancy Pelosi. Texas has Ted Cruz and Louie Gohmert.

In California, billionaires get taxed more to pay for programs for the poor. In Texas, billionaires get to keep their money, and the poor go without health care.

[California Governor Jerry] Brown got voters to approve a tax hike to balance the budget and fund education. [Texas Governor Rick] Perry balanced the budget by slashing spending on education.

In lots of places in California, it’s tough to live on a middle class family budget. In lots of places in Texas, it’s hard to live outside a church-going, football-loving, white, heterosexual lifestyle.

Absence of snarky, politically correct, bitter liberals. Advantage: Texas.

 

Mississippi Corruption’s Impact on Morality

This article was first published at the McAlvany Intelligence Advisor on Monday, June 23, 2014:

Satan's Super Congress / Committee - Cartoon

The latest study on state corruption within the U.S. is by two college professors. It defines corruption as the “misuse of public office for private gain,” and it shows Mississippi at the very top of the list. This is fine as far as it goes, but they fail to connect the dots: As goes political corruption, so goes moral decline.

The study, entitled “The Impact of Public Officials’ Corruption on the Size and Allocation of U.S. State Spending” published in the May/June issue of Public Administration Review, confined itself to political corruption: bribery, extortion, graft, cronyism, and embezzlement. They left out nepotism. They also left out any analysis of how the citizens of the states fared

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Mississippi is the most Corrupt state, says a new study

Mississippi state welcome sign

Based on the number of convictions for violating federal corruption laws, Mississippi – a state with just 3 million citizens – ranks at the very top of the list of all states, according to a recent study. Two college professors published their report in the May/June issue of Public Administration Review.

Their study said the high level of corruption in the state resulted in high state spending on projects most likely to be “bribe-generating” like capital improvements and highway construction, while leaving more socially beneficial projects like schools and health facilities behind. It also noted

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The President’s Latest Plan to Flood Colleges with New Students

 

College Students Spending Time Outside

College Students Spending Time Outside (Photo credit: York College of PA)

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, June 18, 2014: 

Mr. Obama has never been very good at math or in getting his facts straight. His misunderstanding of basic laws of economics, however, is breathtaking. Last week, on Tumblr, he announced his latest plans to make it easier for high school graduates to borrow their way into college. First he’ll cap their debt repayments at 10 percent of disposable income. Second, if they default after 20 years, their debts will be forgiven.

Often in error but never in doubt, the president said:

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The War on Poverty Continues to be a War on the Family

This article first appeared at The McAlvany Intelligence Advisor on Friday, June 6, 2014:

 

Family 1

In less than three months, the War on Poverty announced by then-President Lyndon Johnson in August 1964 will be 50 years old. There ought to be some victors in this war that has cost the American taxpayer more than $17 trillion. And indeed, there are: the initial program, the Economic Opportunity Act, was funded by (in today’s diluted money) $178 billion. Today, there are 126 federal welfare programs and numerous state ones spewing forth taxpayer monies at the rate of a trillion dollars a year. That means government jobs for millions to monitor, track, follow, and spend, and then request additional funds for next year.

But what about the intended beneficiaries? How are they doing?

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Oklahoma is the next state to Affirm gold and silver as Legal Tender

1907 Double Eagle, Liberty Head, Obverse

1907 Double Eagle, Liberty Head, Obverse (Photo credit: Wikipedia)

On Wednesday, June 4, Oklahoma joined Utah, Texas and Louisiana in affirming that gold and silver coins are (as they always have been under the Constitution) legal tender in the payment of debts in the state. On the surface this seems almost silly: affirming a right that already exists in Article I, Section 10 of the U.S. Constitution. But it is much more than that.

 

Senate Bill 862 which Oklahoma Governor Mary Fallin signed into law this week says:

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Despite the 50-year War on Poverty, more than one in five Children Remain in Poverty

Money Dollar

If further proof is needed that the so-called War on Poverty continues to fail, the latest report from the Census Bureau has just provided it: 21.3 percent of children under the age of 18 – more than one in five – are living in poverty. In 1964, the year that then-President Lyndon Johnson declared the federal government’s war on poverty, that percentage was 22.7 percent.

The news from the Census Bureau provides additional evidence of the war’s failure:

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Defense Department Announces Latest Presidential Helicopter Contract

UTC Sikorsky logo

UTC Sikorsky logo (Photo credit: Wikipedia)

It didn’t take long for the skeptics to scoff at the costs of the latest effort to upgrade the fleet of presidential helicopters announced by the Defense Department on Wednesday, May 7. They say the $1.2 billion contract awarded to Sikorsky Aircraft Corporation will be just the beginning.

There are at least two reasons to be skeptical: the open-ended nature of the White House requirements and recent history. The Department of Defense outlined its requirements, stating that Marine Helicopter Squadron One which currently operates 19 presidential helicopters, must provide

 

Safe and timely transportation for the President and Vice President of the United States, heads of state and others as directed by the White House Military Office.

In addition, each aircraft must be equipped with various self-defense features such as bullet-proof glass and body panels and specialized communications equipment that allows the president to maintain “critical command functions” while airborne. Each needs to be large enough to carry up to 14 passengers and several thousand pounds of baggage while being small enough to operate from the White House lawn.

Each must have a minimum range of 300 miles and carry a full complement of defensive countermeasures to thwart heat-seeking and radar-directed missiles and also be hardened against an EMP (electromagnetic pulse), either from an enemy or from the sun. It must be able to send and receive encrypted communications and hold secure teleconferences while in flight.

And each must have air-conditioning and a toilet.

Under the contract Sikorsky promises to deliver two prototypes by 2016, with another 21 fully operational aircraft six years later.

Several questions arise. First,

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Michigan Senator wants to close “Tax Inversion” Loophole

United States Senate election in Michigan, 2002

United States Senate election in Michigan, 2002 (Photo credit: Wikipedia)

The recent bid by pharmaceutical giant Pfizer to acquire British-based drug maker AstraZeneca has given the senior senator from Michigan, Carl Levin, just the opening he has been seeking: to offer his bill prevent such “tax inversions” from taking place. Said Levin:

It’s become increasingly clear that a loophole in our tax laws allowing these inversions threatens to devastate federal tax receipts.

We have to close that loophole.

If the deal between Pfizer and AstraZeneca (currently in doubt) actually takes place, the tax inversion would allow Pfizer to consider Great Britain as

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How much is a Trillion Dollars, anyway?

Historical government spending in the United S...

Historical government spending in the United States from 1902 to 2010 (Photo credit: Wikipedia)

Wayne Crews has a problem. For years now he has been updating the Competitive Enterprise Institute’s “Ten Thousand Commandments” but the numbers, despite his best efforts, are simply beyond human comprehension.

 

But he continues to try, nevertheless. He says that the regulatory state takes

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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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Fed Transcripts from 2008 Reveal Experts to be Clueless and Confused

English: President Barack Obama confers with F...

President Barack Obama confers with Federal Reserve Chairman Ben Bernanke following their meeting at the White House. (Photo credit: Wikipedia)

Followers of the Fed have carefully analyzed the 1,865 pages of transcripts it released in February of its eight regularly scheduled meetings and six emergency meetings in 2008 and have concluded that these experts were clueless and unaware of the opening economic abyss yawning before them. Even the New York Times was forced to admit, following its review of the documents, that

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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.