Obama and GOP Tax Cuts Deal – Progressives in Democrat Party Clearly Upset with President!

Obama moves to middle on Tax Cut Deal - photo European Press Agency via WSJ

From the AP: President Obama and the GOP have brokered a deal that included keeping all the Bush Tax cuts, plus additional tax cuts offered by the President for two years, with an extension of the unemployment benefits for over 2 million people in 26 states that expired this month. One has to give credit where credit is due, Obama and the GOP worked together, regardless of where one stands on the ideological scale of Democrat vis a vis Republican, the move by both camps to ensure the continued aid to the unemployed while taking the burden off businesses in order to begin hiring shows compromise is alive in D.C. In fact, the President offering to put more on the table for American’s working class in the form of a cut in the Social Security payroll deduction. Therefore, kudos to Obama for taking the steps necessary to at least, temporarily , move into the middle of the road, and to the GOP for meeting the President on common ground.

Not every member of the political class is excited about this “new deal”, with left wing Progressives clearly upset with the Presidents willingness to work for the people rather than the Progressive Party. NPR reports that Progressives within the Democrat Party are against any type of deal that takes away from their mantra “Tax the Rich”. Bernie Sanders of Vermont (who is a Socialist, not a Democrat) is threatening to filibuster while “Progressive Democrats in the House wrote a letter of opposition”. One Adam Green, who is with an organization called the “Progressive Change Committee, went blathering on about the President appearing “weak” in the wake of his coming to an agreement with the GOP. The latest round of “no’s” from Progressives who have held sway over the American public with the election of Pelosi and other hard-left Progressives in 2006. With this mini-tantrum, one can better understand the gap that exists between the Democrats and the Progressives, who should, in all fairness, should move to form their own political party, and leave the Democrat party to fend for themselves in the political arena. The problem with that scenario, Progressives do not do well unless they hide behind a brand as they are socialists who merely mask themselves as Democrats. Perhaps in the best case, those Unions would do best to join with the Progressives and do everyone in the U.S.A. a favor by taking up their actual “brand” instead of co-opting some other.

Progressives and Tea Party members differ in that the Tea Party, although most closely aligned with the Republican Party ideologically, does not pull any punches in warnings to both parties regarding the purity of the Constitution and fiscal responsibility. The Progressives on the other hand, speak for the Democrats, which, even if there were one Democrat left standing in the Senate or the House, that elected official should call them out, and tell them to shut up and speak for themselves. The formation of additional parties would serve the Republic in that these parties would offer more choices to the American people, and push the two older, dominant political parties to be a tad more honest.

Perhaps the most intriguing aspect of the “tax deal” package is the fact that it is not permanent, and is set to expire in 2012. This sets up an “us versus them” clear line in sand over economics between President Obama, who will campaign for reelection and growing field of Republican contenders. Progressives, for some unimaginable reason, believe the “tax the rich” mantra is a “winner” with the public, and while it may have appeared to work in the last election, it is a risk to believe it would work a second time. First, the last election was not necessarily about “taxing the rich” and some pie-eyed idea that the American public was welcoming Progressive (socialism) with open arms. What the more likely rise of the Party can be attributed to are those on the hard left and in the middle, afflicted with Bush Derangement Syndrome, voting in order to rid the nation of any Republican (including McCain). However, now as a consequence, they are experiencing buyers remorse. (The Progressives appear to have missed that development with the 2010 election.)

Should the tax cuts work, the economy begin to see a positive reversal, the job market improve, which is, historically, highly probable, then it would be a folly to campaign on “taxing the rich” who, any one of those GOP candidates would be able to say – “are providing the jobs American’s need”. They would have the proverbial proof in the pudding. Obama literally fell on the political sword for the American public in working with the GOP, and brought to light the reality of the Progressives as the “Party of No”. As Obama has clear Progressive leanings, the decision to meet in the middle to save the nation from ruin, puts him on the road to being less Carteresque. The tax cuts aside, there are myriad issues one can pick that still places the President in the ideological Progressive camp, and although one may agree to disagree on any of those points (legion), it is important for Conservatives to acknowledge that President Obama indeed broke rank and, as of this moment, should be applauded for the action. It will not diminish the fortunes of the GOP field of contenders for the Top Job in 2012 given the big picture.

One may call his move political expediency (saving one’s own hide), or what have you, however, regardless of motive, (which unless one is a mind-reader, there is no way to determine what the man is thinking), give him his due. One can also add courage to that list if one is a follower of the Beck school of thought, who has claimed that the President is in danger from “Progressives” within his own sphere that may attempt to physically harm Obama. Either or, today, the President deserves a pat on the back for stepping up.


Side note: Historically, one has to concede that Beck has a point as far as Progressives throughout history using any means possible to further Socialism, however, those murders, assassinations, concentration camps, etc., were part of the early to mid 20th century, pre-information age. One would hope, the consistent bungling of Progressives in the House and Senate, coupled with their current ability to hide nothing, (even state secrets from junior hackers who should retire to their mothers basements in Australia), would render any “plots” against the president (other than protests and strongly worded letters of condemnations and perhaps another wiki leak or two directly aimed at Obama instead of potential Progressive opposition in the form of current target, Hillary Clinton) useless.

As Clock Runs Out on Tax Cuts and Unemployment Benefits, Obama and Democrats in Senate Move to Middle.

Growing Public Disgust of Big Government pushing Politicians to Choose Will of the People

With unemployment benefits for those who have been collecting for 99 weeks expiring this month, and the unemployment rate jumping to 9.8%, the need to reassure businesses and economic stability in an extension of the Bush tax cuts, took shape in the Senate this weekend when Senate Democrats joined with Republicans in blocking a “middle class tax-cut” only bill, that the Congress and Obama administration had hoped for. Several key Democrats joined with Republicans to advance a “simple majority vote” to overcome a filibuster. Durbin (D-IL), Harkin (D-IA) and Rockefeller (D-WV) also voted against the so-called “millionaires tax”. (New York Times)

On Sunday’s talk show circuit, it appeared that a deal would be reached between Senate Republicans and the Obama administration that involved a trade-off for a 2-year extension of the tax cuts for another extension of unemployment assistance for those whose benefits expired. . This signaled, for the first time, a move to the middle by the Obama administration, who has been taking hits from the hard left over several issues including the extension of tax cuts at any level.

Although it may be argued that with a new GOP controlled House and increased clout in the Senate set to take the reins in January will push Obama to concede points on the tax cuts, it is also possible that the President could stand firm in Progressive ideology and refuse to budge. It is most possible that a chess game is being played out with America’s fortunes and basis needs of millions of jobless American’s in a compromise between the political think of both parties in order to avoid what would be a more than a mere public relations disaster.

That said, with the increased clout of the fiscal conservative Tea Party and a growing interest and acceptance of the Constitutionally based, fiscal conservative group by American’s, both major political parties would be best served to pay attention and work towards putting the U.S. Financial House in order above all else. With the 2012 elections on the horizon, and the White House at stake, Obama, who appears, at this point, unelectable for a second term, and a majority of Democrat Senators up for reelection, a move to compromise would, at the very least, possibly save proverbial political hides that otherwise would be ousted. The Republican’s, however, are not out of the woods, as those such as Susan Collins (D-ME), voted against a ban on earmarks, with 6 other Republican’s breaking ranks with the Party. (Alternately 7 Democrats, including Claire McCaskill (D-MO) who sponsored the bill to ban earmarks broke ranks with the Democrats.) It appears to be a case of “those who get it” and “those who don’t – the “it” being the millions of American’s who have had it with government spending, the sheer size of the federal government and the political futures of each Senator and Congressional Representative.

A ban on earmarks, many of which are frivolous at best, would go a long way towards paying for the unemployment extension which is badly needed for those who are about to lose their benefits in states that signed on for Federal aid in extending Unemployment benefits to 99 weeks, including Massachusetts. Interestingly, those States that did not accept the Federal Aid in extensions, have lower unemployment rates (see U.S. Bureau of Labor Statistics as of October 2010). A map from the Center for Budget and Policy Priorities, shown below outlines the benefits offered by all states. However, those States that did accept the aid, such as California and Massachusetts, have higher percentages of individuals on the “public dole” than those that did not, some might argue by sheer volume of population coupled with the state’s high dollar “give-away” programs, as well as impending bankruptcy, makes it imperative to continue to fund those programs. That said, it is also true, that those states also have higher corporate tax rates (8% plus) (Tax foundation tables here), literally sending job creators running for the border appear to be on the list, for the most part, of those states seeking Federal assistance. One would think, at some point, those that are elected to run both the State and Federal governments, would get the bigger picture - Lower corporate tax rates, equal less unemployment. The Progressives who would have tax increases across the board (mainly academics, students, certain elected officials and the professional press), apparently do not grasp the premise that tax cuts offer incentives for corporations (which these same people feel are the root of all evil), to hire people (who in turn pay taxes, in order to prop-up the entitlement programs favored by the same ivory tower idealists.).


Map of States Taking Fedederal Aid for Unemployment Benefits - image Center for Budget and Policy Priorities


Although the aforementioned may hold sway with the President and even share his ideology, surely at some point, the light bulb must turn on, and understanding of how a simple economic principle which has been successful since the nation was founded (few to no taxes and a limited Federal Government), would continue to work as long as the Federal Government and those same progressives, keep their nose out of economics and stick to their chosen fields; union bosses, professional anarchists and teachers.

For a rousing take on State Government versus the Unions see Video Below where NJ Govenor, Chris Christie (R), takes on the Teachers unions (Unions = Progressive Doctrine) who cost taxpayers millions.

House Dems Vote To Kill Business in Political Stunt Expected to Prompt December 15th Market Crash – The New “Red Menace”

Food lines in Utopia read article Communist Food Lines

From The Hill: Yesterday the House of Representatives voted 234-188 on extending the Bush Tax cuts to those who earn under $250,000, leaving business on the hook for paying higher taxes in 2011. The vote, with Speaker Nancy Pelosi (soon to be Minority Leader), closed the voting process with her approval, receiving somewhat tepid applause. 20 Democrats voted with the Republicans in opposition. In simple terms, with business seeing tax increases coming down the pike at a rapid pace, they will simply not hire, extending the misery of more than 15,000,000 people who are unemployed. Some businesses may just pickup and move to more “tax friendly’ countries, or close entirely, adding additional claims to unemployment rolls. Could they have voted to extend the tax cuts, in whole or in part, in the last 5 years that Nancy Pelosi has controlled the Congress? Absolutely, they certainly had the time to do so, but it was not politically convenient to extend part or all or none of the tax cuts, or write new legislation during that period.

Perhaps Ms. Pelosi feels that it will be easier to blame Republicans coming into office in 2011, for the new taxes that will be paid by all American’s, thereby tarnishing the Republicans (who have not yet taken the majority) with the brush of having voted against the middle class, in the hopes of reviving their own political fortunes in 2012. When one looks at the reality of the political process, and the short time between elections, Pelosi and her cohorts are already announcing, in some cases, their intent to run for reelection, in the hopes of gaining back control of the Government. However, no matter how hard they will attempt to spin this one, the fact of the matter is, without the employers, and without the employed, all government funding will cease to exist.
The utopian ideology shared by the Speaker and the administration so enamored of an “equitable social “share the wealth” option, perhaps forgot, ignored, or were simply ignorant of the fact that the model where the government controls industry, retail, food, insurance, and the like, has not worked – on a large scale in a country bigger than say Austria. Russia collapsed under the system, with worker standing in line for bread and simples supplies. Capitalism, which, last time anyone looked still was the guiding principle behind American economics, allows for individuals to create businesses at will, hire people, pay taxes, and keep the payroll going, to both the individual , the corporation (small or large) and the federal and state governments. By raising taxes on struggling businesses, many of which, like GE (who owns NBC and MSNBC) received bailouts by the Fed (Washington Post), will have the effect of instituting a dnr on the nations Federal income.

How bad can it get? US News and World Report, notes that without the full Bush Tax Cuts the market is set to crash in two short weeks. Should the market crash, as predicted, that will wipe out life savings, stall and or kill business, and leave the nation in a state similar to the 1930’s, with one exception. In the 30’s there were not millions of people who were used to receiving SNAP (food stamp credit cards), Fuel Assistance, Welfare, Social Security Disability for the inability to speak English, and a host of other programs which are controlled by the same party whose level of incompetence appears to have no boundaries. In the 1930’s, people received handouts from the government in the form of workfare, and yes, there were riots in the street, most notably by those whose political ideology most closely matched the current Speaker and the Administration – it was politely dubbed “The Red Menace”. Therefore, the New Red Menace lies in the Administration, the Current Congress, and their Unions. The rioters may come, indeed, but the blame will be placed, not as intended, but rather on those who were unable to provide – the current administration.


To recap – there is a direct correlation between giving businesses and the middle class tax cuts, and the ability to offer “aid” to the homeless, banks, and Europe - it works, splendidly - however when one places 90% of the tax burden on those earning 250,000 plus, one is treated to a depression. In the 1970’s, industries moved south, “the Sun Belt”, not for the climate, but for the tax rates, leaving those tax and spend Northern States (most notably Massachusetts) and their high corporate tax rates, without industry to pay for the increased entitlements. People left in droves for states where jobs were available, and taxes were lower, and over the years, instead of figuring out this simple equation, the need for Governors such as Dukakis and Patrick to tax and then add more programs which are unsustainable due to lack of a)corporations and b) taxpayers continues unabated.

This is the result: In Georgia hundreds of people waited in line to receive fuel assistance as the temperatures dropped below 30, the agency which receives federal funding had to turn people away. Those people standing in line were there for fuel assistance, spoke to the heart of the problem: (AJC):

“We have assistance for food, we have assistance for clothing, but we don’t have assistance for diapers,” she said. “That’s my biggest struggle right now.”

Therefore, we have millions upon millions who are getting their food and clothing from the State (Fed) now, (not to mention housing, cell phones, cars, Triple A (see Massachusetts), looking for additional funds to heat their homes.

Sooner than later, the practice of trying to buy the votes of these virtual “welfare slaves”, will come to a bad end – when there are no taxpayers, or few taxpayers left to support both those recipients and the government who misleads them into believing that the cash comes from the Federal Government. - they should be thanking taxpayers, not Nancy Pelosi, for their ability to stay for years on the “public dole”.

What if the market does crash on the 15th of December? American’s will survive, we’ve done it before, and we will do so again. However, the Progressives will not learn, they will continue to push for a version of Soviet Russia that has been immortalized as successful in their minds, eschewing fact for a fictional utopia of bread and soup lines and badly built appliances, generational apartment living (as there will be no home ownership except for those “elite” who are at the top of the political class.
Which is why, historically, the nation will recover, the prosperity will return, and those ideologies will sit by on the sidelines, the university professors, the actors, actresses, GE, NBC, MSNBC, Manhattan socialites, and ponder how to bring back their brand of sanity to the “world”, in another 40 years or so.

Just a note of moderation: During the past few year certain talk show hosts have predicted one catastrophe after another, the last was the possibility that the mid-terms might not take place if there were an emergency– that did not happen, obviously. Therefore, what American’s do have is the power of the ballot box, and the ability to see through the vain and the stupid, and the uninformed and the greedy, in order to affect the change necessary to restore the nation, at least temporarily. When listening to zealots, be the politicians, professors, high school teachers, union reps, the President or a right wing talk show host consistently predicating disaster, keep in mind who benefits: The politicians maintain their jobs and power, the professors maintain the same, the teachers are fed by the unions (not quite as elite as the others) and that talk show host is making millions scaring the heck of out anyone who takes their word as “gospel”.

Debunking: it has never been this bad:

Nationwide bombings and riots in the 1920’s
List of riots (Union) in the 1930’s
Progressive education in the 1930’s, leads to 40’s backlash
Photo essay (brilliant) of the 1930’s food lines, poverty, et. al

Of import:
U.S. Population in the 1930’s
U.S. Population in 2010

Adjust for inflation

Something to ponder:

In the last census, the U.S. Population stood at approximately 308.4 million (figure US News/US Census), of which approximately 50% pay no taxes. Compare to the US of 1930 of 122,775,046, of which even the lowest income level paid 5% to the federal till. (Tax Foundation)


Note: Congress had 5 years under Nancy Pelosi to tweak or fix, with her Tax Men, Charles Rangel (censored) and Richard Neal (D-MA2) the tax code, however, they waited until the most inopportune time for American’s thinking of their own political hides.

Scott Brown Blast Dems for Allowing Unemployement Benefits to Laspe for Millions Dec. 1, Rousing Speech (Video)

Senator Scott Brown, (R-MA) image NYDaily News

On the 30th of November, 6 hours before the 99 week extension for unemployment benefits were due to lapse, Senator Scott Brown (R-MA) gave a rousing speech on the inability of the Senate under the direction of current Majority Leader Harry Reid (D-NV), to get anything done. Brown’s proposal to extend benefits to those 2 million unemployed, who had, as of yesterday, lost their benefits, was simple, do not add to the debt, use discretionary funding (funding available to those sitting Senators). Brown, who takes heat from both the right and the left, is standing firm on this issue. Massachusetts has not seen leadership and initiative by a single politician of this ilk who stands for the people of the Commonwealth and the nation, since John F. Kennedy became a State Senator. Kudos to the Junior Senator from Massachusetts. For those families who are going to go through unimaginable hardship in Massachusetts, one might suggest calling the office of John Kerry in Washington (202) 224-2742 and asking him to vote with Senator Brown and stop partisan stonewalling in order to get those families immediate aid. While leaving a message, include the tax cuts that are expiring and without which businesses are not hiring, perhaps Kerry would like to join Senator Brown on that critical issues as well. Senator Kerry, who is facing re-election in 2014, should, for once, cross party lines, and agree to extend all tax cuts to get business moving (or emulate John F. Kennedy) and cut unnecessary spending in order to fund unemployment.

Richard Neal (D-MA2) Plans to Run for Re-Election in 2012 – Despite Possible Redistricting and Loss of Congressional District

Richard Neal(D-MA2) and John Olver (D-MA1), May have to run for new combined district seat in 2012 - photo Springfield Republican.

From: Masslive.com (Springfield Republican) – Congressman Richard Neal (D-MA2) announced yesterday that he would seek re-election to Congress in 2012. Neal has held the seat since 1989 and faced his first challenge in 2010 in Republican Tom Wesley, a political newcomer who garnered 40% of the vote in the district, exceeding pundit’s expectations showing Neal as powerhouse taking 75% of the vote. There will be several challengers to Neal’s seat in 2012, however, that will depend upon the Commonwealth’s redistricting due to a significant loss in population forcing the loss of a Congressional seat. As of this time, it is unclear which district will be lost in the state, with some speculation that the 1st and 2nd districts will be merged, having the lowest populations.

Massachusetts has lost population consistent with increased taxes and joins other similarly high tax states in losing seats. From urbangrounds.com via Washington Examiner:

New York and Ohio are likely to lose two seats each, while Illinois, Iowa, Louisiana, Massachusetts, Michigan, Missouri, New Jersey, and Pennsylvania will be down one apiece. The average top state personal income tax rate in these loser states: 6.05 percent.

Therefore, Neal, who had been vying for the top slot on the Ways and Means Committee prior to the Nov. 2nd election which saw an historical power shift in the House, with Democrat losses the highest since the 1930’s, is now relegated to “ranking member”, with the possibility of the current district, east of Springfield, being merged with part of the 3rd district held by McGovern, leaving the 1st District alive and well under the direction of John Olver who will face an in party challenge from Berkshire Register of Deeds and former state Sen. Andrea F. Nuciforo Jr., a Pittsfield lawyer, is running for the 2012 Democratic nomination for the seat and has a fund-raising event scheduled for Thursday.

With the possibility of the District Loss, Neal may have to face a three way primary challenge against fellow Congressman John Olver (D-MA1) and Nucifero. Neal, a former schoolteacher, first ran for elected office in 1984 and won the seat as Mayor of Springfield, he was elected to the Congress upon the retirement of Democrat Edward Boland, facing no opposition in 1989. Neal, who has been dubbed “Nancy Pelosi’s and Irelands Tax-Man on the Hill” votes straight party line 98% of the time. In the waning hours of the 111th Congress, Neal and other House Democrats plan to force a vote on tax cuts, proposing the Progressive model of increasing taxes on all businesses and income over $250,000 while negotiations between the White House and Senior members of the House and Senate are still taking place. A purely political stunt designed to embarrass the incoming majority. The Bush Tax Cuts are set to expire on the 1st of January, with an across the board increase in taxes for all Americans. The Democrats in both Houses and the Administration appear to be stalling and allowing these tax increases to go through, which will, in all likelihood extend the current economic crisis. The blame will rest solely on those who failed to move this issue forward over the past two years, and, Neal, who held a high ranking seat on the Ways and Means Committee, had the power to do so.

Unemployment Benefits Extended for up to 2 Years end for up to 2 Million this Week in 26 States, Including Massachusetts – the Downward Spiral

The Downward Spiral of Tax and Spend and Regulate Policies

FromYahoo Finance: the Federal government’s 73 weeks of unemployment aid to 26 of the 50 United States will end this week leaving families out in the cold. The Federal Aid to States was offered under the “Recovery Act” (otherwise known as “Stimulus Bill”), where states would be eligible for extended benefits if they “split the bill” with the Fed. Apparently 26 of the States that signed on, including Massachusetts, will drop the benefits once the Federal portion of aid ceases according to Yahoo Finance. Massachusetts, already cash strapped and bleeding taxpayers for years, so much so that they are losing a Congressional Seat in 2012, is in a tenuous position to cover any State benefits once the Fed either hits the debt ceiling and/or runs out of taxpayers as well. An interesting read on Ubran Grounds shows a direct connect between states that have a high tax rate and those taxpayers pulling up stakes and moving elsewhere.

Leading the charge in “How to Collect Unemployment in Massachusetts” is the Massachusetts AFLCIO. A “packet” of information on the Unions website (here) guides members on the ins and outs of the Massachusetts unemployment system – also worth the read.

Massachusetts residents who are left paying taxes (including those who received unemployment benefits or are receiving unemployment benefits), will, in all likelihood, face a decrease in payroll at the first of the year, due to an increase in tax rates. In the past two years, the Obama administration and both houses of Congress failed to address the Bush Tax Cuts, which are now expired. In a meeting yesterday between the President and representatives from the Republican and Democrats in both Houses resulted in a decisions to appoint “negotiators” for both sides of the aisle before voting in either house to extend the Bush Tax Cuts either in whole or in part. .

Why would the decision to put off a vote and “negotiate” a “deal” between Geithner (Obama’s choice), and Representatives of both Political Parties matter to those forced to try and find a job in any state, let alone those who are now losing extended benefits? Those tax cuts, and other factors of “economic uncertainty” for both small and large employees are forcing firms to hold back on adding jobs. It is that simple. Extend the tax cuts and revoke some of the programs instituted under the Obama administration that have hamstrung employers (article from Cato Institute reprinted from Investors Business Daily) , and the jobs reappear. As it stands now, employers have no idea of what their bottom line will be, therefore, zero hiring is the result. As the Democrats, Republicans and Obama Administration play politics, the worse off those sitting in Massachusetts (or other states) are going to be unless the job market improves.

What is suggested when looking at the human element when it comes to those who are about to face an end to unemployment compensation is to read the comments under the Yahoo article Here . Not everyone collecting unemployment compensation on extended benefits are doing so by “union guidelines”, rather, individuals who have worked their entire adults lives, first, upon losing a job, tightened belts, ran through savings, including 401k’s, and then, still unable to find employment, at a significant reduction in wages, (If, in some cases, that individual would even be considered due to being “overqualified”), in order to jump to unemployment compensation as a last resort. Not everyone who will be faced with this adversity has played the system, knowingly or with a little help from “organized labor”.

Unfortunately, those in power in the Commonwealth, and elsewhere, appear to have no inkling as to what will happen once the public through runs dry and the Fed and State revenues are depleted. SNAP (a credit card used at convenience stores, supermarkets, etc., which replaced Food Stamps) will not be sustainable at current levels (See: MA Billion Dollar 2010 Disbursements.) Additionally as Massachusetts is the 7th largest destination for those entering the country (illegally or not), those seeking entitlements might find themselves better off returning from whence they came. Those of us left behind holding a job (so far) should be kind to our neighbors, and offer assistance to local faith based groups that feed the hungry. It is the people, exceptional ordinary American Citizens, not the government who lives off the people, that will rise to the occasion.