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  • Morning Bell: A Conservative Alternative to Obama's Permanent Spending Plan

    Last Friday we told you that even by the left’s own ideological criteria, President Barack Obama’s trillion dollar spending plan would fail to stimulate the economy because nothing about the massive spending increases in the bill was temporary. This Sunday the Washington Post wrote an editorial essentially agreeing with us:

    [S]ome in Congress and the new administration apparently see the country’s present recession as an opportunity to change the federal government’s spending priorities more generally or simply to reward loyal political constituencies. … [I]t’s risky to make new, multiyear commitments in the middle of a crisis without debate over competing priorities — and without paying for them through some means other than borrowing.

    Helping hire, equip and pay police, a $4 billion item under the bill, might be a good idea, but writing checks to individual households for the same amount would do more to stimulate the economy. Ditto for $16 billion in Pell Grants for college students, $2.1 billion for Head Start and $50 million for the National Endowment for the Arts. All of those ideas may have merit, but why do they belong in an emergency measure aimed to kick-start the economy?

    Fiscal stimulus can be a part of the solution, but only if it is “targeted, timely and temporary.” The efforts so far don’t quite match that description.

    Our only quibble with the Post’s assessment of Obama’s trillion dollar spending plan is that it is not quite stern enough. There is nothing “targeted, timely and temporary” about the massive and permanent spending increases in this bill. And the Post left out some of the most flagrant examples. Among the hundreds of billions of dollars in new spending is hundreds of millions of dollars for contraceptives. Speaker Nancy Pelosi (D-CA) unrepentantly defended this money as stimulus on ABC’s This Week:

    Well, the family planning services reduce cost. They reduce cost. … One of those – one of the initiatives you mentioned, the contraception, will reduce costs to the states and to the federal government.

    Got that? If you want to help stimulate the economy, then Nacny Pelosi believes you should not have any more children. Apparently having less children “will reduce costs to the states and to the federal government.” National Economic Council director Lawrence Summers turned in a similar performance on Meet the Press defending the above mentioned Pell Grants and police hiring as “good investments.” Neither of these stimulus defenders even bothered to claim that these spending increases would be temporary in any way. The deficit for 2009 is already projected to exceed $1 trillion. If deficit fueled government spending was effective, than our economy ought to be inn recovery already. Obviously that is not the case. An alternative is needed.

    The American economy does not rise and fall with the level of aggregate demand or deficit spending. There are normal processes that launch a recovery and drive an economy. These processes involve individuals and businesses responding to opportunities and incentives. Lower marginal tax rates stimulate the economy because they improve the incentives facing individuals and businesses to work, invest, take risks, and seize opportunities. The centerpiece of an effective stimulus policy should involve two elements:

    1. Make the 2001 and 2003 Tax Cuts Permanent: The economy faces a massive tax hike in 2011 when all of the tax relief enacted in 2001 and 2003 expires. It is difficult for the economy to gain its footing when facing the threat of a punitive tax hike.
    2. Reduce Marginal Tax Rates for Individuals and Businesses: Cutting tax rates by 10% for individuals, small businesses and corporations will reduce the cost of doing business in America and make it easier for Americans to create new private sector jobs.

    According to analysis performed at the Center for Data Analysis at The Heritage Foundation using the widely respected Global Insight U.S. Macroeconomic Model, these policy changes would strengthen the economy significantly this year. adopting the Heritage tax proposal would mean that 500,000 more Americans have jobs by the end of 2009, and, by the end of 2010, employment would increase by a million jobs. This two-step tax policy would reduce tax receipts relative to current policy by about $670 billion over five years, a number significantly smaller than Obama’s $850 billion and growing spending plan.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    34 Responses to Morning Bell: A Conservative Alternative to Obama's Permanent Spending Plan

    1. Georgina, www.simply says:

      We need to get back to what is truly important in life: faith, family, friends, community, and responsibility. Responsibility to be productive members of society and not to expect the government to pay for the personal choices that we make. Somewhere along the way, America left that path and selfishness and greed led the way. Having more and better became our goal. Look where this has taken us.

    2. John Theobald, Marie says:

      The problem with your analysis is it makes perfect sense and does not align well at all with the progressive agenda being foisted upon our Country by Larry, Curly and Moe (Obama, Pelosi and Reid). You presume there are reasonable people in positions of power willing to listen and act appropriately and out of a sense of duty. You forget what Obama tells us … "I won!!"

      To his credit, Obama is telling us all it will get worse before it gets better. Apparently it takes a degree from Harvard to state the obvious for some folks.

      Thomas Jefferson wrote:

      "The democracy will cease to exist when you take away from those who are willing to work and give to those who would not."

      Apparently the Progressives amongst us read more than the Conservatives.

    3. Dave32507 Pensacol says:

      Get over it, This is a new era, America has been reborn, the majority of real Americans have chosen a new path for OUR Republic, The Democratic majority, represents the ideals and values of the majority of Americans. The threats and terrorist tactics of the Regan/Bush regime is over. America will no longer tolerate the terrorist activity of the fanatical religious fundamentalist fringe. This is a NEW America, love it or leave it, because we are here to stay!!! We are the majority, We are secular, We are socialist, We are the People, We are the embodiment of our Revolution of 1776 and yes our revolution continues. WE are the Government of the People, by the People ,for the PEOPLE.

    4. Don Miller, Houston says:

      You are assuming that Obama and the rest are actually interested in boosting the economy. I would like to suggest that they are more inclined to produce measures that will keep their party in power. And a poor economy is helping them push through their agenda.

    5. Sid Williams - Alaba says:

      Each and every time Nancy Pelosi opens her mouth, which I am certain is difficult with all the Botox, she reinforces my conclusion that she is a complete idiot, and that she has no business having any power to do anything remotely related to governing our once great nation. It is the completely out of touch, uninformed, self-serving and transparently dishonest individuals like her that have gotten us into this mess.

    6. Bart Husky Rosharon says:

      Why is everything upside down, what use to be right and moral has know decended to unjust and judgemental. What was immoral and wrong has been elevated to policy and exceptable procedure. I am not political(I have to work for a living)i've never posted anything in my life. Thus, I will state this observation. I remember a time when in America it was a sense of pride to work hard (not 40 hours) but 60 or 80 a week achieveing your american dream. It seems now that is gone, now it's in style to live on a government check and work harder almost to find a glitch in the system.

      Why are liberals, always so interested in the death of American pride. Through all of this BS I have observed one glaring truth. America is ran by gangsters and the act of accepting personal responsibility is taught to be sacreligious. As always the great and heroic working man gets to finanace it all.

    7. James F. McLane Sr. says:

      All the money should go back to the people it came from THE TAXPAYER It's our money, And if we had it this country wouldn't

      be in this condition to begin with.

      Thank You

      Jim Mclane Sr.

    8. Mac Moore, Los Angel says:

      Excellent stuff! Everyone knows that the most efficient method of infusing or difusing capital into the market is, simply, tax management. You don't need multi-million dollar managers, bureacrats or watch-dog agencies to administer tax increases or decreases. Not only is it efficient, it is perfect, in that it allows the citizens, not central planners or bureacrats, to pick the winners and losers in the markets, which eliminates dead-end spending on useless projects.

      Unfortunately, this Administration was built on Populism, not Pragmatism. Glib trumps substance in today's Washington. We will be treated to absurd, feel-good pork-barrel, ideological projects and enterprises with no sunsets in sight. This Administration is all about using the tax code to mete out an ideological agenda that sees freedom as an over-rated obstacle in the pursuit of their vision of equality.

      Scary stuff. How did such a dummy become president? Or, are we that dumb, too?

    9. Rosemary E. Lloyd, E says:

      I disagree strongly with "dave32507" RE: Pres. Obama. This man does NOT represent my philosophy nor my views. This man espouses baby-killing and is known to be the most pro-abortion president in our nation's history. And what really bakes my cake is that some of MY money, the money I "donate" in taxes, will go to helping countries give advice to and provide abortions to women overseas. And my money will go toward FOCA, the bill that will make abortion rampant and will result in the slaughter of millions of innocent unborn babies. I cannot, do not and will not support such a president. Sadly, I can't do anything about where my tax "donations" go. But if this is the direction in which our country is headed, then GOD HELP US. 2012 cannot come soon enough and I pray daily that this man does NOT get a 2nd term.

    10. Mark Y. Durango,Co says:

      That Pelosi, what a winner.The next thing she'll want is to limit us to one male child.Does that sound familiar?

    11. Tom Calvert, Wilming says:

      How about 13 trillion dollar stimulous without increasing the national debt? That is the amount our corporations have abroad that they cannot bring home without paying huge corporate taxes. US corporations pay virtually the highest corporate taxes in the world hence they invest that money abroad instead of here. If the politicians (both parties) want to cure the economic problem all they have to do is pass the FAIRTAX but the pols lose their power because they can no longer give "Tax Breaks" to buy votes and favors. Only vote for Congress members that favor the FAIRTAX.

    12. Kent, Virginia says:

      During the Reagan Years there was a billboard in new York City that continually ticked off the rising national debt. The Democrats mantra then was "it's Ronnie's fault" as they continued to spend and spend. All during George W's two terms Congress kept spending and spending and blamed the rising deficit on "W's War." Now, after encouraging poor lending policies beginning in the Clinton years, our Congress is plunging the National Debt into the trillions to bail out the banks and mortgage bundlers! With no one left to blame but themselves, Congress now says the way for us to get out of financial depression is spend even more money. Remarkable! These Liberal Fascists are feeding us Mao-lite! We need term limits for all public representatives and a board of review for Federal Judges. Get ALL the career politicians and demi-gods of the courts away from their positions of power, reduce the size of Federal Government and delegate more power to the states.

      That would be real change for American taxpayers.

    13. HMFoote says:

      The real issue here is gaining back the confidence of the conservatives in our country.We have allowed ourselves to be definded by the left and the media and it appears that the republican elected officials are taking a feather duster to a GUNFIGHT.

    14. Jerry, Colorado says:

      We know what to do (tax reform). The question is how to do it. Trusting the politicians in DC to reform tax law will only result in the same disappointment that we've seen in the past. The only "reform" they know is higher taxes and more government control of our lives.

      The question is how? Constitutional convention?

      How about repeal of the 16th and 17th amendments?

    15. jacksmith says:

      The Economic Downturn:

      My fellow Humanbeings it's only temporary. Don't be scared. Scared is what the evil doers want you to be. This severe economic downturn was not unforeseen. Many of us tried to warn everyone that we could years ago. And we did our humble best to head it off, and limit it's destruction. But their were some very powerful, and Evil forces at play that limited our ability to completely stop this economic downturn before it happened.

      Fear not my fellow humanbeings. Your future, and the future of the World is very BRIGHT! now. :-)

      The World has continued to be blest with excellent leaders who have brilliantly handled the dangers, and complexity's of our geopolitical challenges. And with the help of the world, America has now elected a new President (President Barack Obama), and a government who stands ready to lock arms with the rest of the World's leadership in solidarity towards a better World for all.

      President Obama's choice of Cabinet, and advisers has been nothing short of brilliant. And his performance has been excellent. I believe President Obama stands ready to do whatever he has to do to see the American people, and the World through this crisis.

      So spend, but spend wisely. Trade with each other, but trade wisely. Live, work and enjoy the majesty, and miracle of your existence in the community of humankind. This is a great time to be alive. :-)

      It is not an accident that humanity exist on a small blue planet tucked in the safest corner of the universe. A planet with a constant source of warmth and energy from the sun. A planet surrounded buy a forcefield we call an atmosphere. And an atmosphere that keeps in the things we need to survive, and keeps out most of the things that could harm us. :-)

      It is not an accident that the mass and orbits of the planets, moons, asteroids, and other heavenly body's are perfectly aligned to harmlessly deflect the larger objects that could hurt us away by gravity. Deflecting danger into outer space. Or into the sun.

      The sun still shines on us. And our future is GOOD! This economic downturn is just a little darkness before the dawn.

      Things are going to be GREAT! That is what you have chosen. The new Renaissance has begun.

      God bless all of us

      Jacksmith — Working Class :-)

    16. Norma, Mo. says:

      The views of Dave32507 do not represent this country. I have the priviledge of having been born here and I am proud to be an American. We are mostly independent, hard working people which is why this country is great. Sadly, what Obama, Pelosi, and Reed are doing will take us down the road of socialism and destroy this country if we do not do something about it. Vote them out of office at the first opportunity!!!!!!!!!!!!!!!

    17. Michael Auer,FT.Myer says:

      I am reminded of a time in the past when a country became so caught up in their Leader that they did not stop to think about what he was saying and after a short time they came to believe that what he was saying was true. This led to a World War. Please tell me that this great country is not following that path. Slow down America. We have the knowledge to solve our problems. Obama is hoping that no one will read and study these stimulus proposals and just rush them thru because the sky is falling. Thank God for the Heritage group!!! I am spreading the word about your web site…

    18. Darrel Baird, Kent says:

      New America ? Look up The Mayflower Campact .Read the Federalist and Anti Federalist papers .You might want to read The Jefferson Letters.This very situation tha we have now is addressed . In these documents.No ,This isn't new, we just never learn.

    19. Mike, Hickory, NC says:

      The Leftist/Socialist government elitist spending plans and machinations of both a Leftist/Socialist government elitist Obama and a Leftist/Socialist government elitist-controlled Congress are actually based upon, derived from, and leading further into things which are actually found among the "planks", etc, of Marxist Communism/Socialism in all it's aliases, forms, and misleading myths.

      That includes the misleading myth that making the 2001 and 2003 tax cuts permenent and reducing marginal tax rates for individuals and businesses (quote) "would reduce tax receipts".

      The fact is that reducing taxes for individuals and businesses is already repeatedly proven to practically always increase tax receipts, not "reduce" them, even if that appears to be "a paradox" to Democrats including (the late) President John F. Kennedy when he said that "It appears to be a paradox that cutting marginal tax rates increases government tax receipts rather than reducing them".

      Indeed, what happened soon after JFK said that? Significantly large tax cuts for individuals, etc, were enacted in 1964, soon after President Kennedy's assassination in November 1963, and again proved that such tax cuts practically always increase government tax receipts in proportion to how "large" they are or are not and how "across the board" they are or are not!

      Therefore, to say that making the 2001 and 2003 tax cuts permenent and reducing marginal tax rates for individuals and businesses (quote) "would reduce tax receipts" is to either deliberately jump, at worst, or unwittingly "fall", at best, down into the pit of propagandizing accordingly for that myth, in spite of the fact that tax cuts for individuals and businesses have practically always proved, and will practically always prove beneficial to government tax receipts, in proportion to their "size" and how "across the board" they are or are not.

    20. Darvin Dowdy Hous says:

      To think that Obama/Pelosi & Reid want to stimulate the economy is ludicrous. They want power. And they've got it. They care nothing for what Republicans or HF says. You're in denial if you think otherwise. DD

    21. Spiritof76, New Hamp says:

      The trillions of dollars of debt being piled by the US Congress in the name of stimulus package is a case of child abuse. But then, what do you expect from Pelosi and Obama whose abortion policies tantamount to infanticide. Mr. Obama voted to let the infants that happen to be born out of botched abortion procedure die. Pelosi claimed that contraceptives (which includes abortion) would be beneficial in reducing demand and therefore its inclusion in the stimulus package was justifiable. What is next? How about accelerating the ends of senior citizens? That would certainly save a lot in Medicare and SS costs.

    22. Ann Williams, Michig says:

      This is a great website, and there are others as well, but what can 1 person do to make a difference. Most of the time it is said, "you can't do anything about it – it's out of your hands". I have voted faithfully my whole voting life, and my vote doesn't seem to make a difference. 46 million people "no" to elect Obama. Can't our voices be heard?

    23. Gikas Xabelas Katy T says:

      obama-pelosi-reed and the rest of the gangsters

      that take over my country make your vote count

      2012 is round the corner so vote them out and

      evry one of the liberals

    24. Gikas Xabelas Katy T says:

      obama-pelosi-reed and the rest of the gangsters

      that take over my country. people make your vote count

      2012 is round the corner so vote them out and

      evry one of the liberals

    25. John Theobald, Marie says:


      Write your congressman and Senators … silence is our worst enemy.

      Thomas Jefferson wrote:

      "I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them."

    26. The voice of reason says:

      The money given to bailout financial institutions will

      be a waste If these institutions do not stop farming jobs out

      to other countries. When I call the Bank of America,

      American Express and major airlines the call centers are

      all In India and other countries these operators can barley

      speak english but they have jobs that should be here In

      The united states. This has to be addressed and stopped!

      If we intend on changing this financial crisis !

    27. Eileen Berger says:

      BUT …. what can we do to stop this craziness?????

    28. Dennis Social Circle says:

      What can one say??? The ignorant lead by the dumb has elected this mess. They can not think passed the spend on their noses. If I managed my home finances like this I would be in ajil by now. It is just common sence that one can not borrow his or her way out of debt. The dems have long said the "guvernemnt" will take care of us. That might work if enough people want and "will" work. It is more to ones likeing to stay at home and do nothing and then fuss because the "guvernment" did not give what they wanted.

      We need to get abck to the basics of what got this country started and become a sucess, work for what you get and the be very thrifty with what you earn.

    29. isaac pentlin says:

      I fear what will happen in the Obama Presidency. The government by the media and the Social Eletes for the american people will ruin the principals of this country. President Obama is

      a showboat with an extreme ego and the DNC will control him for a while I predict. And the media will fertilize his unfulfilled legasy. The black elete americans will continue to lobby to have the advantage over non black elete americans. This will prove that there is no social and economic disadvantage-just lobbying for advantage.

    30. Ardell Nagle Rexburg says:

      I have heard about a tax incentive for business to create jobs. That's a good idea but what about those greedy business owners that will pocket the savings. This is one of the things that got us into this mess. There should be a way to monitor this behavior.

      All this money that congress wants, give it back to the taxpayer. Let us spend the money. It will improve the economy faster than any plan either side has. Of course they don't want to do that because we wouldn't be under their thumb. They want more government not less.

      They need to start to listen to the people again. During the first bailout people called their senators and said no, well they listened a little, but passed it anyway. Well we need to speak a little louder. Let them know that their jobs are on the line.

    31. James Lawrenceville says:

      I agree that this is not stimulus but yet the far-left agenda.What can we do to stop this.Vote in 2yrs for true conservatives not the fake ones that have infiltrated the Republican party looking for votes when it was popular.They have ruined a good thing and that includes Bush,though I thank him for our safety.Support those who believe in the fair-tax.That is the way to bring us jobs.We have the 2nd highest corp tax rate.A o% rate would even be better than Irelands rate.Wow what a concept.Please educate yourselfs and go to fairtax.org.Also Dave from P-Cola.Check out the constitution.It's a fascinating document when read as well as Thomas Jefferson's believes.

    32. Francis O'Hare, says:

      Republican conservatives allowed bad things to happen at a time when we needed a voice– I was a contributing Republican for many years but when the Bush people became strange I decided it was time to get out and I joined the Independent Party.

      The remaining Conservative Republicans now must gird their loins and get back to the real basics of what we should be doing and voicing. We must have a moral foundation based on our Christian principles and the rest will follow. Forget about trying to be popular, that is for people whose feet are in mid air with no founding and have no moral values.Stick to what we once were, if you claim to be an old fashioned Conservative otherwise, just be the usual crooked politician

    33. The proposed Stim. p says:

      It now look's like the U.S. as I know it has been lost for what remains the rest of my life.

      All courts in this great land will become liberal.

      This alone will sink us all.

    34. Danny FLA says:

      Someone: once said, that there are two sets of books/ I would clearify that there are really two sets, but The rules that those who we put in power/ are the rules, that is in their books only! And what reflects the hope, the quality-and the Freedom We have Treasured is NOT in the copie- they study. If you cannot see the wisdom in A True America, Then it won't hurt too much -as history repeats itself-You only have to know a little History of Tyranny, and the pits full of those who suffered dispair, and of course demise.

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