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  • Morning Bell: "They Should Scrub It"

    There are two competing story lines developing on the Trillion Dollar Debt Plan. The first is that the bill passed by the House is basically a sound spending plan that only needs a few minor changes in the Senate before it can be passed and single-handedly save the entire U.S. economy from total collapse. So National Economic Council Director Lawrence Summers tells the USA Today, “We’re focused on the pie, not the crumbs. The president is prepared to compromise but our focus is on the fact that the American economy badly needs help.” President Barack Obama was also on message last night telling ABC News: “The overwhelming bulk of the package is sound. Most of the programs that have been criticized as part of this package amount to less than 1% of the overall package.” That is the official White House version of events. Then there is the truth.

    The truth is that the vast majority Obama’s Trillion Dollar Debt Plan has nothing to do with stimulating the economy and everything to do with permanently redistributing spending and power away from the private sector and toward government. That is why the plan is costlier than the Iraq and Afghanistan wars combined. That is why it is larger than the entire GDP of India. That is why the plan will send our debt-to-GDP levels to unprecedented heights. Remember, only 15% of the spending in this debt plan goes to infrastructure. So where does the rest of the money go? Obama’s Trillion Dollar Debt Plan doubles the size of the entire Education Department and according to the New York Times, expands government health care spending in a way that fundamentally “rewrit[es] the social contract with the poor in ways [the left] have long yearned to do.”

    As conservative stalwart Sen. Tom Coburn (R-OK) writes in today’s Wall Street Journal: “As a nation, we got into this mess by spending and investing money that didn’t exist. We won’t get out of it by doing more of the same.” Coburn is not alone in this assessment. The Washington Post reports today that Senate Democratic leaders have conceded they do not have the votes to pass the stimulus bill as currently written. And it is not just because conservatives like Sen. Coburn object. Moderate Senators Ben Nelson (D-NE) and Susan Collins (R-ME) are also not happy with the core of the Trillion Dollar Debt Plan. Nelson says he and Collins have identified “tens of billions” in cuts they will ask Obama to remove. But Sen. Olympia Snowe (R-ME) had an even more honest assessment of the bill telling the Post that “many of the provisions were jammed into the legislation by members of the Appropriations Committee who were ‘trying to short-circuit the normal legislative process.’” Snowe concluded: “They should scrub it.”

    There is an alternative. Sen. Jim DeMint (R-SC) has an idea he calls The American Option. Instead of permanently expanding the size and power of Washington, DeMint’s idea would free American entrepreneurs from their stifling tax burdens and allow them to create millions of new private sector jobs. The American Option would create rapid growth in wages and business incomes by reducing business taxes from 35% to 25%; reducing the estate tax to 15%; keeping the tax rates on dividends and capital gains at 15%; reducing individual tax rates to three levels and permanently repealing the Alternative Minimum Tax (AMT). According to a study by the Center for Data Analysis this policy would increase employment by a half million jobs in 2009 and by 1.3 million jobs in 2010, and create 4.8 million jobs between 2009 and 2012. By contrast, the Congressional Budget Office estimates that the Trillion Dollar Debt Plan will only create 1.2 million to 3.6 million jobs, one in five of which will be a government job.

    Commenting on the rapidly shrinking support for the Trillion Dollar Debt Plan, Majority Whip Dick Durbin (D-IL) predicted that “100 decisions” will be “made between now and when we deliver the bill to the president’s desk.” Let’s hope our Senator’s choose freedom and small government over Washington control over the economy and trillion dollar deficits for years to come.

    Quick Hits:

    • Iran fired its first satellite into orbit Tuesday, proving that once their nuclear program is complete they will have the ability to send warheads halfway around the globe.
    • In her first day of intensive diplomacy yesterday, Secretary of State Hillary Rodham Clinton had pointed words about Iranian behavior.
    • North Korea has been moving what appear to be components of a long-range missile to a launching site.
    • Sen. Barbara Boxer (D-CA) unveiled a set of principles that will guide their efforts to regulate the entire economy in the name of stopping global warming.
    • According to Rasmussen Reports, the percentage of Americans who believe Congress is doing a poor job jumped 7 points last week.
    Posted in Ongoing Priorities [slideshow_deploy]

    35 Responses to Morning Bell: "They Should Scrub It"

    1. J.C. Hughes, Texas says:

      As a staunch conservative, Obama has my empathy. It’s not folks like myself he needs to worry about. Rather, his concern should be with the people holding him up as some all powerful savior. These same individuals will one day be his crucifier after they tire of the man. Essentially, it’ll be a love affair gone bad over selfish desires and money.

    2. Brad Raffensperger, says:

      Senator Olympia Snowe is on target. The Pelosi stimulus plan needs to be scrubbed completely. $1Trillion will put us in the poorhouse. Free us up to do what we Americans do best, create jobs and new businesses when we are allowed to release our creative energy and ingenious spirits. Lower all taxes, encourage investment into American manufacturing.

      Senator DeMint has solid ideas for a solid recovery.

    3. Ozzy6900, CT says:

      The "Stimulus Plan" (as proposed) is shear nonsense. The Government cannot stimulate the economy because in order to do that, the Government would need to become a part of the economy. That is not what the Government is there for. The Government needs to basically, step back and let Capitalism take over. The Government needs only make sure that the insured funds are backed by enough capitol so that the Public won't "run on the banks" again. Every Government intervention to the economy results in a regression. The past is clear and the failure of other Governments is a warning not to do this again.

    4. Dwana Townsend-Banke says:

      I was very happy to see Dashal bow out of the nomination, however I am disappointed that the President of the United States would allow Geithner the position. Seems to be a double standard in Washington these days, where as Politicians are not held accountable for their behaviors such as tax evasion as would the general population. I think Pres. Obama should have set an example with the Geithner nomination, thus setting the tone of his administration.

      Not bashing President Obama at this time, but from my perspective and many other Americans, something smells in Washington. I think more American are more in tune to the news and don't like what they are seeing or hearing. Giving the guy a chance to do the right things.

      I say scratch the whole Bailout deal and start all over. It may take a month or two to get it right, but better to have a sound program than the one that is being proposed right now.

      Last night during his interview, he called for all companies that have received financial aid through the various bills to freeze annual increases. What ever happened to free enterprise system and rewarding your best employees? I am not talking in the form of bonuses, I am speaking of traditional annual increases to a base salary maybe 2%.

      The only way for us to get out of this mess in my opinion is in the form of deep tax cuts, putting money into every household and small business. I say no more spending.

    5. Jack Lohman says:

      I am not expert on how to spend simulus money, but I am expert enough to know that I do not want campaign cash flowing in the process. Or ever, for that matter. I want politicians working for the best interest of the public, not the special interests that fund their elections. Only public funding of campaigns will accomplish that.

      Jack Lohman
      http://MoneyedPoliticians.net

    6. Don Heitzman, Dallas says:

      I think conservatives in Congress have an opportunity to more powerfully change the debate about the priorities in this bill.

      I keep hearing that the cost of this stimulus is MORE THAN the cost of the Iraq and Afganistan wars. But I do not hear anything about the amount in the bill that is dedicated to protecting our homeland. If the Democrats' priority is to surrender to the terrorists abroad, then certainly they want to spend those resources protecting us at home. Why is there nothing here for missle defense, streamlining container security,and securing the borders?

      It is a logical argument.

    7. H. Adams, Texas says:

      It's hard to fault Obama – he's never met a payroll, has never been required to find customers for his business, has been in government or government related jobs most of his career – his entire point of view is from the government side. And now, he has surrounded himself with a cabinet of career politicians. Did anybody really expect something constructive out of his plan? He has no concept of how business works or how money moves around. What's ashame is that the GOP leaders drifted so far from the party's roots and became so partisan that they allowed such a naive person to become electable. Frankly, I say it's time to vote out every incumbent be they a D or an R, or at least term limit all federal office holders. Fresh blood and ideas never hurt any organization. Have a nice day.

    8. Dennis A. Social Cir says:

      This whole thing stinks. We can not survive this debt. The only way to make this country work is less taxes and more jobs. I am not a "rocket scientist" but I know you can not borrow your way out of debt. THE DEMS ARE DETERMINED TO GIVE US A SOCIALIST GOVERNMENT. To many depend on the "guvernment" for everything now, this has to stop. The working people can not pay enough taxes to keep this going. I beleve the wrong bunch has been elected and we need to throw them out and get a new bunch.

    9. Michael in New York says:

      This bill is conceived in political liberal demagoguery, its Obey and Pelosi’s long awaited list of liberal projects and funding. The Senate, thanks to the Republicans has stopped this spending bill in its tracks, and will give it a hard look. The public knows this is loaded with PORK, and more PORK and it need to be cleaned, re written completely. The politicians have not been able to give a reward risk assessment to this package, and indeed the risks are huge. We need to keep in mind the impact of a $2Trillion deficit and $2 trillion national debt will have on the contusing weakening of our dollar, and future costs including interest. Reckless spending is much different than economic stimulation. But, the democrats must do something, and this is their plan to fix the world. On another point, today Obama will limit executive compensation to no more than $500,000 to firms that use TARP monies. This is great news indeed, because all those Wall Street kids that were doing ecstasy and voted for Obama will now get what they planted, a move towards socialism. The government will now be the capitalist watch dog, yet the government cannot even manage their own affairs. Mr. Obama failed to mention the impact of the sub prime mortgage complements of Fannie and Freddie, who created theses toxic assets. It will be a long, long 4 years.

    10. Danny FLA says:

      Anyone: Who even not in political actions, to serve The American People-Who Would create a tremendous spending bill- that would not help the The Problem, that allready has the Country, The people in chains, is not in touch with the Heartbeat of the general population.What Was created before, by this same action-either should dismiss, such actions/ or Tell us what are the Real plans they would foster upon us.?

    11. Norman k., Oakland, says:

      If the Business sector has all of the answers, why are we in this Mess?

    12. henry USA says:

      Get Rid of Obama. How can we. The ignorant already voted for him. is there a way to stop him.

    13. Peter Asher .. Orego says:

      For $ 820 billion we could do one, easy to administrate act that would:

      Instantly jump start the economy to the tune of 6% GDP.

      Create absolute additional tax revenue equal to the median income tax paid on $850 billion plus the additional tax revenue generated by a high monetary velocity rebound of the economy.

      End all homeowner foreclosures for a year and resurrect mark-to-market values of mortgage debt.

      Increase mortgage capital and eliminate the need for refinancing, thereby freeing up all available mortgage funds for resuscitating the nearly dead housing industry.

      How? Go to http://takeamericaforward.com/

    14. Derek, Las Vegas Nev says:

      Why delay the TV changeover..?? Oh I forgot… the drones who voted for the Messiah would be without the propaganda networks NBC, CBS, ABC etc

      and of course the brainwashing would be interrupted.How thoughtful of our beloved leader.

    15. Rev. Richard A. Bolland, 1608 NW 78th Street, Kansas City, MO 64118 says:

      The Heritage Foundation really needs to look at the source(s) of the money which is going to be spent. Are we merely printing it or some of it? What is the inflationary result of that down the road? Are we borrowing all of it or some of it from places like China or Dubai? What does it mean when we owe so much to countries which are not particularly friendly to us…especially China. No one seems to be covering this critical aspect of this story. Where’s the money coming from and what does the source of the money mean for our nation’s future?

    16. H L PUCKETT VA, says:

      I AGREE WITH BRAD RAFFENSPERGER, WE HAVE TO MUCH GOVERNMENT AS IT IS, WE NEED TO DOWNSIZE THE FEDERAL GOVERNMENT ,SCRUB THE WHOLE TRILLION DOLLAR DEBT PLAN.FORGET IT ALTOGETHER AND SEE WHAT HAPPENS.MORE SPENDING IN THE PRIVATE SECTOR, REDUCE BUSINESS TAXES ( I WAS A SMALL BUSINESS I KNOW SOMETHING ABOUT THAT, AFTER I PAID TAXES ON MY SMALL INCOME NOT A LOT LEFT TO LIVE ON AND UPGRADE MY BUSINESS. OBAMA IS NOT QUALIFIED FOR THE OFFICE HE NOW HOLDS, HE IS LIKE A KID IN A CANDY FACTORY.

    17. cgsc.student57 says:

      President Obama has only been in office for 15-days. The debt which we are in did not occur overnight; therefore, we should not expect a stimulus package to provide an immediately resolution. I am not completely sure what a stimulus plan should consist of in order to pull us out of the debt. However, I am completely aware that it will take a matter of time and multiple revisions before we will get a consensus among party leadership. President Obama was elected into office because the public agreed we needed “Change.” Did we really believe someone who advocated “CHANGE” would come into office and not be criticized? WE as a nation created the debt, we as a nation VOTED for CHANGE, and now WE as a nation need to work together to help overcome the existing tragic turmoil we have created. I have read several reports that criticizes President Obama’s stimulus bill; however, it is not just his bill. It is a bill directed to support the economy, our nation. If I am not mistaken, he did not personally draft the proposed “stimulus” bill although he has influence to what should be addressed. The proposed stimulus bill was written and will be revised by many leaders prior to it reaching the desk of the President of the United States to be signed into law. Additionally, reports I have read and heard several reports that the stimulus bill is wasteful spending and that it costs more than that of the Iraq and Afghanistan wars combined. I would like to know how much capital has been allocated within the stimulus package for troop support, homeland security and Veteran’s affairs. Are these issues less important than “pork” spending or is it just less entertaining?

    18. Marshall Hill-Michig says:

      The Postal Service is planning to cut one day of

      Delivery! Then we as the United States Government

      should cut their Budjet by 15% and give that money

      to US Citizens as the First part of the Stimulis!

      Following that with Permanent Tax Relief!

    19. Bob R, Geologist, Tu says:

      I continue to be a concerned scientist that our politicians are about to adopt a Policy involving the spending of trillions, ostensively to save our planet from AGW (Anthropogenic Global Warming)when it has absolutely NO SCIENTIFIC BASIS for

      making the effort. This would be mankind's alltime greatest blunder to rectify a nonexistent problem.

    20. Schulz, Washington, says:

      All tax problems would be solved and more funds released to stimulate the economy if the nation would adopt a flat tax. A 15% flat income tax for every individual above the poverty line and every corporation with no deductions or write offs would simplify and ease collection. More funds would come in, more funds would be redily available in the economy and fewer prople would get into tax trouble. Heritage ought to work unilaterally for a flat tax.

    21. Spiritof76, New Hamp says:

      It is unbelievable that some of the posts above blame the private enterprise for the mess that we are in and exhort us that we should give Obama chance as he is trying to solve our recession problems.

      Private enterprise in this country is regulated and harangued with laws enacted to get more votes. The major reason for our mess today is the CRA (Community Reinvestment Act). The US Congress, particularly the Democrats dictated that the lenders provide loans to people and businesses that can not repay the loan. Fully 22% of the new loans were directed to the worthless borrowers under the direction of the US Congress. Then, they made sure that those loans are bought out by FreddieMac and Fannie Mae. The housing prices were artificially forced up resulting in a bubble. When the housing prices fell as a result of drop in demand, the shaky mortgages got into trouble and all the risky securities were exposed. The government created private corporation climate for profit while the taxpayers were forced to underwrite their risks.

      Get rid of Freddie and Fannie. Get rid of CRA immediately.

      The US government is bankrupt. It can not meet all the debts that it has assumed- $10 Trillion budget deficit, $50 Trillion in Soc. Security, Medicare. Comrade Obama wants to nationalize the banks, nationalize health care and nationalize energy production. People that post here expecting that the proposed massive spending by government (money that they don't have) to stimulate the economy should think again. You are allowing the government to pile that debt on our children and grandchildren. Chinese are hinting that they would stop buying our 30-year treasury notes. What we will have will be inflation like the one that existed in late 1970. It will require the interest rate to skyrocket and will make the recession a depression with a healthy double digit unemployment.

      Stop your partisanship and think as an American, first. The government is destroying not only the economy but is also assuming more and more power. It is not what our founders fought for. Please wake up before we entirely lose our nation.

    22. HR Waltner, Duluth, says:

      I agree! They should shelve this whole bailout plan and let the free market stabilize our economy. No nation has ever spent its way out of a recession. Are there any sane people left in Washington, D.C. I seriously doubt it!

    23. sher308 chester,md says:

      i am so ashamed of the way the president spoke on tv. to say ,i screwed up.they sure are dumming down office.

    24. ella quinn kinsto says:

      I agree with spiritof 76 we need to wake up before we are destroyed by obama and his adminstration.I fear for all of us.On glenn beck today a lady said obama and the demcorats were going to take over like in socialism.It was a slip of her tounge.she meant it. That is what they are going to do.We have to stop this.

    25. ella quinn kinsto says:

      I agree with ozzy also.

    26. J.C. Hughes, Texas says:

      I concur with Spirit of 76. But I also offer my condolences as the damage, whatever the cause, is done. Now it's time to figure a way to revive an ischemic horse. This requires the right type of transfusion. Additional taxes are incompatible with survival. And altough I respect Shultz DC's proposed flat tax, I firmly believe any taxation of personal income is totally wrong. Yes, I do pay my fair share. But taxes should be consumer based as in the Fair tax. In addition, rather than states going to the feds for a handout, it should be the other way around. The purpose of federal government should be to secure the states against all enemies. According to Maslow's hierarcy of NEEDS, this would allow the states' free markets to prosper bringing more tax revenue to, you guess who!

    27. Big Dave, Laguna Nig says:

      Like I said before Obama was ushered into office by the mainstream media…Obama is a socialist, do not expect anything different than socialist policies, which have never worked in any country they have been tried. He has the opportunity to be a great president if he would just mimic Reagan,and uphold Reagan's conservative policies. Unfortunately Obama is not "smart" enough, regardless of his intelligence. If he was smart he would know that just because he is a "different" socialist, his socialist policies will be a disaster just as they have been in every single country where socialism raised its ugly head. Obama's presidency will be a disaster for this country, which is racing full speed toward socialism, turning its collective back on FREEDOM! You will all be sorry, you will all pay the highest price possible, and none of you have the guts to do anything about it. Guess that includes me too. There are no more George Washingtons, no more Thomas Jeffersons,certainly no more Paul Reveres, the left has trashed them all and has completely taken over. As the Beatles say…BACK IN THE USSR!

    28. sandra toporoff brooklyn new york says:

      reduce taxes, reduce interest rates on mortgages ,stop off shore taxes, go to the people experts who want to help.tell Pelosi and Maxcine Walters, Barney Frank to talk to jimmy Carter who work for homes for Habitat last thought, we should investigate these people who are power crazy and want to destory this country if they dont get what they want
      Select them for cabinate offices so they will be investgated quickly

    29. cynthia overland, sa says:

      I am against this stimulus package and every conservative knows why. I am always suspicious of any politician Or salesman who tells me I only have today to make up my mind. This national "emergency" is a hoax. Notice that as each day goes by, more and more citizens are becoming informed about the details in this boon doggle and the phones in DC are ringing off the hook!! An informed and energized electorate is a politician/socialist's worst nightmare!! We may prevail after all.

    30. Mary Catterton Apple says:

      Here's a thought. Rather than the proposed plan, let's just give every American one million bucks. There are roughly one hundred million Americans. My plan falls far short of the trillions Obama/Reid are proposing.

      One must prove that they are American citizens which will solve the illegal immigrant issue at the same time, for they'll have to become citizens the old fashioned way.

      When you receive your check, you can blow it, invest it, save it… your choice. But a once in a lifetime deal. The remainder of the money ought to just about pay off most of the national debt.

    31. LJ Kreimer Missouri says:

      Somebody needs to say it, these people I.E. Prince Reed, Princess Piloci, & the holy one Lord Obama need to be run out of town before they can make this bad situation any worse.

    32. JP, Texas says:

      How does the general public obtain copies of the various bills, or stimilus plans to review for pork, etc?

    33. EC, Knoxville,TN says:

      The saying goes: 'Living on borrowed time'. We all understand that basically this saying refers to faith mainly. I fail to grasp any understanding on any part of this bill that does not address the major components of tax revenue as we know it on its basic form: The employers who hires and the employee who works. So, the less workers because of not many employers (who wants to invest on tax infested country), therefore the less tax revenue. This is how I see it.

      Again, this is on its basic form, we all know that other form of tax revenues, (fuel, property, sales and so on) comprise the total revenue. But all dependent on the basic form originating from employment.

      My point is, why 'borrow' when there is no income and already in debt? Therefore, don't call this Bill a stimulus package when in fact is a SPENDING BILL.

      Would anyone one of you willingly will bind again into debt when you have just declared bankruptcy and no feasible income in sight?

      This is the first time President Obama has not lied when he says that "things will get worse before they get better" or "the worse crisis since the Great Depression". He is right, because the Fundamentals of Tax Revenue and good ol' common sense have been ignored by passing this Bill into Law.

      And by the way, any permanent program that will be spawn from this fraud will not be able to be revoked; example: Social Security, Medicare and the list go on.

      Also let's not forget the ultimate crowd pleaser: "Immigration Reform"

      And President Obama has just been in office 15 days…

      Now, "Living on borrowed time" has a much sinister meaning

    34. Dave Schraub, Coates says:

      I agree with the spirit of 76, the reason we're in this mess is because the population, that has been dumbed down by the government school system. They have been taught the answer is in the government. The private sector always functions best without government involvement. With this bailout they will obtain control of the private sector, and we all know what they do best, is to destroy anything they touch,I.E. social security, schools,fanny mae, freddy mac. The first stimulus package was fanny mae, and freddy mac. Affirmative action at its finest. As for the dems thinking about America first, that will never happen, because they have an agenda. That is to destroy the greatness of the USA, and bring us down to the level of the rest of the world. You can't compromise with people that want to destroy you and your way of life.

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