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  • Morning Bell: Temporary Tax Cuts, Permanent Spending, and "Trillion Dollar Deficits for Years to Come"

    One of the biggest challenges President-elect Barack Obama faces in the years to come is how to both enact “swift and bold” changes to public policy while still blaming President Bush for everything that is bad about the economy. Hence Obama’s press conference yesterday where he anesthetized Americans to the likelihood of “trillion dollar deficits for years to come.” Of course, Obama quickly blamed others for the massive shortfall, explaining: “When the American people spoke last November, they were demanding change – change in policies that helped deliver the worst economic crisis that we’ve seen since the Great Depression.“But then Obama completely failed to explain how his administration would rein in these deficits. The New York Times reports:

    Mr. Obama declined to say on Tuesday whether the budget that his administration submits to Congress in February would be larger than the $3.1 trillion budget that President Bush submitted for the current fiscal year. He also did not offer any specific examples of how spending could be controlled, saying only that his advisers had been scouring the budget looking for programs that could be eliminated.

    Scariest of all, is that Obama’s deficit warnings did not include any of the costs of his own trillion dollar stimulus plan. As we documented yesterday, Obama’s plan does contain some tax cuts, but only temporary cuts that have a proven track record of being completely ineffective at stimulating the economy.

    In contrast to his very temporary tax cuts, Obama’s plan has hundreds of billions of dollars in new spending, the majority of which is destined to become permanent increases in federal spending. On Saturday, Obama promised to create 600,000 new government employees. Those salaries and lifetime government funded pensions will be with us forever. His proposed expansion of unemployment insurance to part-time workers will also be a permanent new government expenditure, as will the plan’s proposal to expand Medicaid benefits to out-of-work Americans.

    The Democrats in Congress are also eager to include expansion of Medicare eligibility in any stimulus package. And then we haven’t even talked about Obama’s health care plan which will create a government run health care plan much like Medicare that any American can enroll in. Obama’s health care plan will force tens of millions of Americans out of their current coverage and into the government’s one-size-fits-all solution. The cost to taxpayers: $452 billion per year, or more than $6 trillion over a 10-year period.

    Rep. Paul Ryan (R-WI) had it right when he told the Wall Street Journal: “Those aren’t stimulus. Those are ideological accomplishments in the guise of economic stimulus.” The left has always wanted to permanently expand the size of the federal government and they know this recession is a great opportunity to accomplish that task. As Obama’s chief of staff Rahm Emanuel recently said, “You never allow a serious crisis to go to waste.”

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    12 Responses to Morning Bell: Temporary Tax Cuts, Permanent Spending, and "Trillion Dollar Deficits for Years to Come"

    1. LVKen7@Gmail.com - says:

      If I was in a Car Accident

      I would blame the driver.

      BuSh is the Driver

      SO HE SHOULD BE BLAMED.

      The HF may try to pass the BLAME

      OFF to others,

      but it is ALL – BuSh, BuSh, BuSh.

    2. Cris NY.NY says:

      LV Ken, are you ok? Whats wrong? Please get hold of yourself. You really need to study up on Political theory and research current events and our economic history. Paulson, may very with be a jerk off and Bush is responsible for him, however 99% of our current fiscal turmoil is the result of the Democrats and their idiot Community Reinvestment Act.

    3. Spiritof76, New Hamp says:

      LVKen is an example of US Constitutional ignorance but flush with political rhetoric devoid of facts that has delivered this nation to bankruptcy. Wait a year or so. You won't be able to buy anything with the useless dollar bills in your wallet.

      US Congress is the sole authority for spending. Look up the Community Reinvestment Act of 1979 (Carter and Democrat Congress debacle)is the bottom line reason for the financial collapse. Barney Frank and Dodd stood in the way of any reform of Fannie Mae or Freddie Mac. Both those banks soaked up all non-performing debts due to the CRA act. 22% of all loans that were written as late as 2004 were bad debts.

      Read the Constitution. We will need it in a couple of years when we get rid of the socialism fever that is gripping us now.

    4. ella quinn kinsto says:

      i agree cris. bush is not the blame.the democrats are. our new president will not be a good president at all.let the ones who voted him in get enough of him.the democrats are pitful.

    5. Ken, Santa Barbara says:

      Reading the MB gives me cause to hope just like reading these comments gives me cause to hope. I hope that Jim finds himself and that Chris finds more than just the community reinvestment act to bring light to his point of view. It is not one thing or one person causing this rift.

      As for the Morning Bell I may have less hope for conservative thinking than when I originally began this subscription. We can't begin to heal or to connect until these boring trite maligning jabs at one another cease. The perception is that it is a nondescript entity heretofore to known as "that one" the left the neo-cons or in Jim's eye Homos that represent the divide. I'm unsure as to whether or not to be surprised that the MB would allow the use of "homo" or the comment as a whole with that demeaning verbiage.

      I maintain you get rid of the leaders that can only incite the masses but not properly inform them and the masses will hunker down and do what they have longed to do, work hard to own or rent in a neighborhood of their liking raise a family and enjoy themselves and their surroundings and govern themselves with their new found or manifest moral fabric. We of the middle class have no real enemies or beefs from within. Name me one poor Heritage fellow, talk show host, or tenured politician and I will show you a so called leader who doesn't have a clue as to what we want and is only kidding himself while lying to those who look to them for representation and guidance.

      "Nobody is right if everybody is wrong."

    6. Conn Carroll Conn Carroll says:

      Dear Santa Barbara Ken-

      I write MB personally every morning so I was surprised to see accuse us of using the term "homo". I have never used that word in my professional or private life.

      We encourage people to make comments even if they are critical of Heritage and conservatives, but at least get your facts straight.

    7. Ireland says:

      LVKen7@Gmail.com

      Don't you have a job? Or are you one of those awaiting the next liberal handout. You’re always to first to post your liberal diatribe. Have they lost interest in your opinions on Moveon.org, the Daily Kos and the Huffington Post?

      I never see you’re repugnance with Governor Rod Blagojevich and you never acknowledge liberal corruption, only you're distaste for President Bush. We get it, you don't like him, so move on. Most politicians are corrupt, both parties, so take your blinders off and stop token the doobie it’s rotting your brain as the cell continue to die a slow and painful death.

    8. ella quinn kinsto says:

      conservatives are right about most everything.most of them are true good people with moral values.heritage is great.

    9. Hozro1, Oregon says:

      Once again everyone and their dog is blaming Bush for what the Congress spends!

      America has numerous concerns ahead of us, and pointing fingers and empty promises solve nothing.

      If we "Socialize Medice", (called Government regulated medical paracctices including what drugs may be used, at what age will be the cut offs for heart by-pass surgeries, knee and hip replacements, etc,?

      If everyone gets a "fair share" of the pie, not only will the piece be small, but who's going to bake the pies after that?

      As the FBI figures show, even crime pays, as an investment, more than the Stock Market, but not if the Government ran it!

      Many, many companies are down sizing at this time, by laying off their "older" employees. Don't have to pay retirement that way. My suggestion for private companies, schools and government bodies is to fire the top fifteen people in the company (the highest, of the highest earners-they all ready have mony set aside to see them through) and then move everyone else up at their current wage, in a wage freeze, for the top fifteen.

      Another suggestion is to have all of Congress immediately switch from their private retirement to Social Security, and truely represent those they serve.

      Following the same line of thought, when you are no longer elected to Congress, your pay check stops, and then you, again, will truely represent those whom you serve!

      Hozro

    10. Ken, Santa Barbara says:

      01/21/09

      Conn Carol

      The fact that the comment by Jim was pulled by HF after I commented on its poor taste is a plus. I don't make up what I read in the comments. There is no harm in your writing in or to the MB but you should read the publication and in this case sooner. My comment stands in this article because it was an objection to narrow minded bigoted commentary..

      Your never do wrong MB did publish that comment from Jim and it was wrong. I am not surprised the MB did not take a stand on any part of this issue. Please direct inquiries and directives of factual correctness and reported bigotry to the MB. The statement directly above the submit button covers there policy.

      Ken

    11. gurt, bert says:

      I agree sans your last sentence. The substance you are reffering to actually promotes new brain growth. It is probably going to be the most rapidly increasing area of medical research once people like you take their blinders off.

    12. Pingback: Morning Bell: The Definition of Economic Insanity | Step Down Obama

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