Massachusetts – Commonwealth May Cut Services as Tax Revenues Fall Short for the 4th Straight Month - Harry Reid promises the nation higher taxes - to compensate for National Debt

Tax Increeases Likelyy? - John Boehner, all partisanship aside with President Obama, in like mind - Boehner announces will work with President on tax increases and budget cuts. - Image CBS News

One may have missed the monthly report from the State of Massachusetts Budget office with the hoopla surrounding the general election the day before the monthly report was released, however, The Boston Globe, has reported that the that tax collections for October, were off by $48 Million dollars.

Apparently the glowing reports that Massachusetts was in full recovery, were a bit inflated, considering that the State Budget has lost, this year, $250 million in tax revenue according to Governor Deval Patrick’s administration. Secretary of Finance and Administration, Jay Gonzales, noted that there would have to be cuts made in order to meet budget expectations. Currently there is a hiring freeze at the State Level, and Gonzales suggested that due to the economy , “ businesses are “in a holding pattern right now and not making the types of investment in their businesses they might otherwise make” due to the uncertainly over how and where Congress might make budget cuts. (Wicked Local – Wareham)

Those businesses were not hiring because of the weight of regulations and the cost to comply with regulations that were pending, the tax increases that are pending as a result of the expiring Bush Tax Cuts, and that was prior to the re-election of President Obama. What is most disconcerting is that for the past 8 years, everything that is Massachusetts politics has been exported nationwide – and if Massachusetts is in trouble, then one can imagine what is happening elsewhere. That said, it remains to be seen how many more businesses will either pack up and head for states that are more “tax-friendly” now that government taxes are a certainty (See Speaker of the House John Boehnerwho has promised to work with the President to make the cuts and raise the taxes necessary to bring the spending under control. Boehner has suggested these cuts will be across the board, so that every single household will be impacted Should the President and Congress not extend the Bush Tax Cuts, but rather load taxpayers, both corporate and individual with additional taxes, those who are working will be tightening belts that are already stretched to the breaking point. In addition, the Senate Majority Leader, Harry Reid (NV) has stated that the President’s reelection is a mandate to raise taxes. With the Senate in full control of the Democrats, and the House Republican's ready to play ball with the administration – the promise of higher taxes, and according to Reuter’s news, the President will be able to expand the reach of government, one can expect to be living in a rather larger version of the Bay State.

What happens with higher taxes and regulations that are stifling businesses is an example of Massachusetts' year long, month after month, increasing revenue shortages. Therefore, businesses in general will be less likely to hire, there will be higher unemployment and as a result of less tax revenue as businesses close and individuals are out of work or underemployed, then those that depend on everyone from food, to transportation and communications (cell phones) will be in for a rude awakening. Those whose jobs are dependent upon the government will also be subject to cuts, eventually.

Of course, this scenario could be avoided should the President take a sharp turn to the center right and extend the Bush Tax Cuts, go further and cut the corporate tax rate, and give incentives to those companies coming back to the U.S. in cutting their regulatory dilemma. For example he might exempt certain business from the mandated health care reform law, as he did for several unions and states.

One has to sift through the partisan rhetoric, to get to the simple math, when one has no income of their own (any Government) and spends like crazy (the Government) then one is going to run out of money and be unable to continue to be as generous to those who depend on the them (the government).

Sharon Angle Takes Nevada Primary – Set to Oust Harry Reid – Women Dominate from Arkansas to California

Sharron Angle will take on Reid in Nevada - image Examiner.com

In May of 2009, Sharron Angle formed an exploratory Committee for the State of Nevada Seat held by Harry Reid. - yesterday Ms. Angle won a three way contest to become the Republican candidate in Nevada. Engle, who is an anti-tax conservative, will face incumbent Harry Reid, the current Senate Majority Speaker in November. Reid has noted that he is pleased it is Angle he must face which appears to be false bravado, given Reid's popularity is close to House Speaker, Nancy Pelosi’s. Apparently, Reid plans to capitalize on Ms. Angles “extreme views” on taxes, adhering to the U.S. Constitution, and eliminating bloated, dysfunctional and irrelevant bureaucracies within the Federal Government. Reid plans to go heavy on the attack ads, according to the Las Vegas Sun: “On Tuesday, Reid’s advisers telegraphed their coming campaign, saying Angle’s “dangerous ideas are wrong for Nevada.” Once her victory was apparent, the Nevada Democratic Party issued a news release: “Sharron’s ‘Wacky’ Angles: Dangerous Ideas Nevada Can’t Afford.”

It’s all about the “Tea Party” – Angle who has embraced the Tea Party philosophy of less government, fewer taxes, self-reliance and a healthy respect of the Constitution from the beginning, does have some interesting ideas about how to cut waste and spending. That said, how Ms. Angle’s views may seem right at home, when compared to Reid’s mono-rail plans, or the fact that Nevada is faced with some of the nation’s highest foreclosures as well as unemployment. For this reason alone, Angle is seen by Reid as an easy target (and the media and pundits are following suit). Angle has the endorsement of the Club for Growth, which is a fiscal conservative organization, and the Tea Party has a strong base in Nevada. Counting the Tea Party candidate out before the race begins is a bit naive on anyone’s part. Reid, at this point, is going the road of Tom Daschle – one can, this being a Nevada race, bet the House on that one – Reid’s proposed Negative advertising should work well for Angle. (See how well that worked for Coakley in Massachusetts.) As the economy shows no signs of improving in the near future (See the possibility of a double-dip recession, which will herald double digit inflation (already taking place when one looks at fuel and food – See late 1970’s and Jimmy Carter) , the Nevada battle should be interesting to say the least.
To learn more about Angle visit: SharronAngle.com

Over in Arkansas, Blanche Lincoln won the Democrat primary, proving that the extreme views of organized labor and Move-on.org are somewhat marginalized outside of the White House. (Pay attention here, Senator Reid). It was a race where either candidate stands to lose in November against Republican, John Boozman . The latest polling has had Boozman leading either Lincoln or the rejected Halter by double digits. Lincoln was supported by former Arkansas native son, President Bill Clinton, while Halter enjoyed the endorsement of the SEIU and again, Move-on.org, otherwise known as the George Soros Foundation. The deep rift in the Democrat Party (Socialists – i.e. Progressives – versus – mainstream viewpoint Democrats) is showing itself across the nation. See the recent special election in PA-12th, where the Democrat ran on Republican Issues, distancing himself as much as possible from the White House).

In California both Meg Witman and Carly Fiorina won their respective primaries. Fiorina will face embattled incumbent Barbara Boxer - as headlined in the Chronicle articles Fiorina Poised to Make History.

It is good to be a Conservative Woman, (including Blue Dog Blanche Lincoln, who just happens to be on the wrong side of the aisle in the upcoming election.)

Note to former Goldwater Girl, Hillary Clinton, the road to 2012 is paved in history.

Polls Indicate Problems for Embattled Democrats Nationwide

It may still be early to project the outcome of the 2010 general election, yet there appears to be a certain change in the wind according to polls taken across the country. A May 20th Quinnipiac Polls gives Republican Christopher Christie a substantial lead over Democrat Governor Corzine by a 45-38 margin. In New York, The Marist Poll wonders if Paterson’s approval ratings have a bottom. Newly announced, (papers filed yesterday) New York Republican gubernatorial candidate, Rick Lazio, bests Paterson in the another Marist Poll by 3 points. In Massachusetts, incumbent Governor Deval Patrick, has an approval rating only slightly higher than Patterson’s. Christie Mihos, a fiscal conservative, is the first Republican to announce a run against Patrick.

In Connecticut, Senator Chris Dodd, is anxiously waiting for results from the latest Quinnipiac poll due out today. The last poll indicated a 33% approval rating, with Republican, Rob Simmons besting Dodd in early polling. In Nevada, Senate Majority Leader, Harry Reid, could be easily replaced – the latest poll by Mason-Dixon shows that Reid has a 38% approval rating. Currently, his republican opposition is anti-tax, conservative Sharron Angle.

The current trend towards embattled Democrat Incumbents, most of whom mentioned here are rather high-profile, however, that said, the economy will be the driving factor in the 2010 race. With a Legislature controlled by the Democrat party since 2006, and the White House spending faster than money can be printed, those independents that bought the “middle class tax cut” and make up the majority of the electorate, will push the line in Vegas , which, in all likelihood, stands to favor a Republican resurgence.

Field of Contenders for Dodd’s (CT-D) Senate Seat Widens - Wife’s Income under Scrutiny

Beleaguered Senator, Chris Dodd, who played a pivotal role in the Freddie Mac and Fannie Mae disaster, precursor to the housing and banking crisis, (along with Congressman Barney Frank (MA-D), is facing an increasing field of contenders for his Senate seat. Thomas C. Foley(R), former Ambassador to Ireland is expected to announce his candidacy soon, according to the Harford Courant. Rob Simmons and Sam Caligiuri, have already indicated they will seek the office in 2010, with Simmons having fared well (16 point advantage) in an early poll against Dodd. Dodd is considered extremely vulnerable in 2010, along with other key Democrats, including Senate Majority Leader Harry Reid.

The Courant’s is now focusing on Dodd’s finances, releasing an article today on Dodd’s wife, Jackie Clegg Dodd. Dodd, who apparently cries poor (citing problems with mortgages), legally listed his wife’s income from several boards as “over $1,000” – this is from a financial disclosure report to the U.S. Senate. . Ms. Clegg-Dodd’s income, including cash and stocks, is reported to be $500,000 annually. (Relevancy - Charactor)

The increased scrutiny of Dodd, to include his wife, and the constant criticism from the editorial pages of the Nutmeg State’s Capital Newspaper indicate that baring divine intervention, Dodd will be seeking employment outside the U.S. Senate come 2010.

GOP Threatens Early Rally in the Northeast while Obama’s Strongly Approves Remain Stagnant at 35%

New York’s 20th Congressional District has made quite a few headlines lately - over a special election to replace Kirstin Gillibrand, Clinton’s Senate replacement on March 31. The general consensus is that as the district trended Democrat in the last two elections (2006 & 2008), therefore, a Republican would have difficult time obtaining the seat. Additionally, some media analysts note that pressure is being placed on GOP Chair, Michael Steele to deliver the seat.
Firstly, Kristen Gillibrand obtained the seat by running as a more-than-moderate gun-toting, fiscally conservative Democrat against a Republican, John Sweeney, who battled last minute reports of scandalous domestic violence. Once Ms. Gillibrand ascended to the Senate, however, she changed her stance on gun-control and voted for the unpopular Stimulus package. The choice for the 20th congressional district at that time was either a moderate-Republican leaning Democrat or a scandalized Republican. Secondly, Times have changed, but the 20th voter make-up remains fairly conssitant, as of November 2008 - Republicans maintained over 196,000 registered Republicans to the approximately 125,000 registered 20th congressional Democrats.

The Upstate New York Press sheds some light on this particular race – with the Poughkeepsie Journal endorsing Republican Tedisco and the Daily Oneonta Star defends Tedisco and closes the article by reminding readers that the 20th has sent one Democrat to the House – Gillibrand. Additionally, the AIG bonus fiasco is becoming a factor, with Tedisco calling for the resignation of Treasury Secretary Geithner (Schenectady Daily Gazette) - sure to appeal to fiscal conservatives as well as moderate democrats in the district.

The AIG Scandal is also affecting CT Senator Chris Dodd – The Nutmeg State’s leading paper, The Hartford Courant, lead web story Sunday shouts: ”GOP's Simmons Positions Himself As The Anti-Dodd”. The article praises Simmons, while listing Dodd’s less noteworthy accomplishments: the move of his family to Iowa during his failed run for the Democrat Presidential Primary, ownership in a cottage in Ireland, a questionable refinancing of two of his mortgages, and most recently, his role in the AIG bonus brouhaha. It is a bit early to count Dodd out, according to the Courant, “National Democratic operatives figure there's still mileage left in a strategy that links Simmons to President Bush, an approach that worked for them in 2006.”

The DNC strategy of linking Republican’s (or any candidate for that matter) to President George W. Bush, may not be the best decision, considering the current “highly approve” rating enjoyed by President Barack Obama has sunk to 35% in Rasmussen’s Daily Tracking Poll for Sunday, March 22, 2009 The Wall Street Journal’s recent analysis of Obama’s current poll numbers, indicate that he is less popular than George Bush was given the same period of time in office. Should the trend continue into 2009, any politician affiliated with the sitting President may enjoy a similar experience to those suffered by his/her Republican counterparts in 2006 and 2008.

Map of 2010 Races - Republican Governors Association

There are 39 Gubernatorial Races in 2009 and 2010, of those, 11 are held by Democrat Incumbents (states to watch, MA and VA), all House of Representatives seats are up for grabs (expect Barney Frank (D-MA) to face a Challnger), and 36 Senate Seats are in play including Dodd, Reid, Burris, and Feingold, some of whom are considered “safe”. With history generally ruling out, Obama may end up facing two houses similar to Clinton’s – a Senate and House run by Republicans. The Northeast, once gain, may lead by firing the “shot heard round the world”.