Posted on 01/28/2009 4:04:31 AM PST by Kaslin
“A national debt if it is not excessive,” Alexander Hamilton advised, “will be to us a national blessing.”
Today, Hamilton must be turning over in his grave. Congress is moving forward with an economic stimulus plan that will swell this fiscal year’s deficit to roughly $2 trillion, or an astounding 13 percent of GDP. Adjust those dollars for inflation, and even our nation’s earliest and most iconic proponent of a national debt would cringe at the danger we are creating for our economy and for future generations.
As it hammers out the final details of the stimulus bill, Congress should pay more than lip service to Hamilton’s words. We must reconcile the nation’s need for quick action with the need for prudent policies designed to spur sustainable job creation here in America. That means not only tax relief for working families but in particular for the small businesses, entrepreneurs and self-employed that create well over half of the jobs in our country. Given the choice, Americans would prefer a permanent job in the private sector to temporary work courtesy of the taxpayer dime.
Unfortunately, the stimulus bill that has emerged falls hopelessly short of the mark, crippled by non-stimulative spending and insufficient tax cuts. How can we expect Republicans to vote on a bill that spends $4 on grass for the National Mall for every $1 in tax relief to small businesses?
Two weeks ago, after the House GOP hosted a hearing on the stimulus with former Massachusetts governor Mitt Romney and former eBay CEO Meg Whitman, we sent the president-elect a letter detailing our findings. Today House GOP leadership met with President Obama to outline more of our ideas and concerns.
House Republican leaders conveyed our desire to work with him and the Democrat majority to improve the stimulus package. But with a watchful eye toward the ballooning deficit, we made clear that we strongly oppose any wasteful spending that disregards the genuine path to economic growth and only establishes the need for future tax increases.
Nor will we quietly swallow the $219 billion House Democrats have proposed in infrastructure and so-called discretionary spending that the Congressional Budget Office says won’t be spent by Oct. 1, 2010. That’s because House Republicans have different ideas over how we stem unemployment and promote lasting job growth. We are inherently skeptical of promises that three million sustainable jobs will fall from the sky like manna simply by spending hundreds of billions.
In the end, it is businesses - driven to innovate, invest and grow – that will regenerate the millions of sustainable jobs we so desperately need. The stimulus must take bold steps to encourage work, investment and business expansion, something that government spending too often fails to provide.
These are some of the remedies the House GOP proposed to President Obama on Friday:
• Small businesses, entrepreneurs and the self-employed employ about half of all Americans, yet they can be subject to tax rates that siphon away one-third of their income. We support allowing small businesses to reduce their tax liability by a minimum of 10 percent. This will immediately free up funds for small businesses to retain and hire new employees.
• Rather than a one-time tax break, we also want tax cuts for families that pack lasting punch. We propose to cut the lower marginal income tax rates, providing all taxpaying families with a minimum increase in income of approximately $500 per year.
• For the unemployed, we want to dispense with the taxes the federal government levies on unemployment benefits. Individuals between jobs should be able to focus on providing for their families.
• Also critical will be addressing the housing crisis. The real-estate market is paralyzed as potential buyers wait on the sidelines for prices to find their bottom. In order to encourage responsible buyers to enter the market and stabilize prices, we propose a home-buyer’s credit for those buyers who can make a minimum down-payment. As home prices stabilize, complex securities tied to mortgages can also finally find a level that clears the market.
Finally, we must ensure that vast government spending doesn’t lead to rampant inflation in the future. At $825 billion, this Democrat stimulus proposal causes us great concern. While the Fed remains rightfully concentrated on fighting deflation, uncontrolled spending and borrowing will most ultimately lead to inflation if the spigot is not turned off in time. That could trigger a flight of foreign capital and a steep drop in the purchasing power of the dollar for the American consumer. As interests rates rise to keep foreigners financing our debt, the pain dealt to businesses and families alike promises to be sharp.
Alexander Hamilton expressed his views at a critical juncture for our young nation. Over two centuries later, at another critical time for America, his words still resonate.
First off, I've contacted my reps, & I urge everyone to do so:
Briefly:
House Republican Leader John A. Boehner and his No. 2, Whip Eric Cantor urged Republican House members today to oppose the democrat's trillion dollar spending binge.
UPDATE: Read the Stimulus posted this atrocity.
UPDATE 2: Here's a good article from Roll Call:
Democrats’ Stimulus Mired in Invalidated Ideas From the 1930s
Minority Leader John Boehner released a list of the--
Top 20 Fast Facts About the House Democrats' Trillion Dollar Spending Plan
You won't be hearing any of this from the Obamedia so pay particular attention.
Your children and grandchildren will be paying for this
Confiscating money from sucessful people and businesses and giving it to demonstrably unsucessful people and businesses to “save” the economy makes sense only to a politician.
The real goal is for demonrats to be in charge of everything forever.
13% of GDP is far beyond the max safe zone. Nobody should be foolish enough to believe the REAL number is anywhere near 13% of GDP. It's more likely between 17%-20% of GDP, and with GDP likely see further erosion, it can soar into unthinkable amounts.
Fasten your seatbelts and assume the crash position. Forget any hopes of a rough landing.
In addition to all of the above,the “leaders”in D.C.should expect GREATLY reduced federal revenues for 2008 and beyond. Many moderate and upper income people have sold stock at a loss,have greatly reduced interest income and otherwise reduce their tax liability as best they can. And,of course,the unemployed pay no income taxes.
In fact don’t even hope to survive the crash. Say your last prayers and make peace with God. It’s going to be an instant mass burial.
Thats what I mean. The GDP will be well below what they are hoping for, which means the national debt will be a much higher percentage of GDP- disastrous. Obama is going to have to borrow (seize would be better) ALL of Soro’s money and Opra’s too, plus a few others.
In fact seizing Soro's and Oprahs money is a good idea. Doesn't the needs of the many outweigh the excessive greed of the very few? Why should we all suffer when those who always call for sacrifice can be made to live like the rest of us "commoners" with only a few million to live on?
We are in deep slit here.
I’m glad to see a little spine by the Republicans but where was this prudence during the Bush years.
It will take awhile to having my banging their drum again, at least loudly.
thank you
when your kids screwed up- badly
but then, later, took your lessons to heart and tried to do the right thing
did you withold your support and encouragement or keep it lukewarm at best
and remind them they had screwed up in the past?
That is what I read in comments from Republicans who could urge the GOP now, today, to do the right thing on this single TRILLION DOLLAR boondoggle
who instead say “screw you, what did you do for me BACK THEN?”
“when your kids screwed up- badly
but then, later, took your lessons to heart and tried to do the right thing
did you withold your support and encouragement or keep it lukewarm at best”
I’m not convinced yet. They haven’t done anything yet, really. Let’s see how they respond.
Every leader needed to be expunged, that was not a great start in my mind.
90% of the new spending in the “bailout bill” has ZERO Constitutional basis. This cannot be “fixed”.
The US Senate needs to put together a GOP FILIBUSTER... (points #1-#4) FR: - by WOSG
Obama's Porkulus - “This is not change you can believe in,” said Sen. Jim DeMint (R - SC)
“A national debt if it is not excessive,” Alexander Hamilton advised, “will be to us a national blessing.”
Today, Hamilton must be turning over in his grave. Congress is moving forward with an economic stimulus plan...
Oh, please. I've been watching this political dance for 35 years, and it's always the same.
When Republicans are the minority, they show some spine, but when they're the majority, they either do nothing or act like Democrats.
FReepers make remarks about blacks being on the Democrat 'plantation', but conservatives live on the one run by the Republicans.
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