HEADLINES

Thursday, April 22, 2010

Fwd: MyHeritage.org: Enough with the VAT talk

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April 22, 2010 | By Amanda J. Reinecker

Enough with the VAT talk

Some liberals in Congress want to pay for their massive new spending with a value-added tax, a sort of national sales tax on the price of goods at each stage of production. While popular in Europe, such a tax is a bad idea for the United States. And a significant number of lawmakers and even White House officials seem to agree.

Last week, Sen. John McCain (R-AZ) led a brigade of 85 Senators in a vote denouncing a VAT in America. McCain's non-binding sense of the Senate resolution accurately stated that a VAT would "cripple families on fixed income and only further push back America's economic recovery." Better still, McCain's floor remarks cited Heritage Foundation tax expert J.D. Foster.

Not long after the Senate vote, White House Press Secretary Robert Gibbs insisted that a national consumer tax "wasn't something that the president had under consideration." So far so good.

But President Obama seems to be singing from a different song sheet. In an interview Wednesday, the President indicated that a value-added tax on Americans is still on the table for consideration. A VAT " is something that has worked for some countries," he said. "It's something that would be novel for the United States."

President Obama has stated that his first priority is to figure out how to reduce wasteful spending and reduce the deficit, so he is willing to consider all options. But research by Heritage experts and countless economists reveals that a VAT would actually invite greater spending and economic turmoil, especially as it would be levied in addition to all other taxes.

Imposing a VAT is critical to the left's "Glut the Beast" strategy, argues Foster, Heritage's Norman B. Ture senior fellow in economic policy. He explains the liberal strategy:

First, raise spending as fast as possible. Here, Mr. Obama and his allies have been notably successful. As a share of our economy, federal spending is up almost a quarter since 2008. The recent passage of Obamacare promises to keep government spending rising rapidly for decades.

In addition, a value-added tax is less detectable to the consumer, yet very costly. Economist Thomas Sowell explains in his book Basic Economics that "the less visible a tax is, the more revenue can be collected without resistance or electoral retribution by the voters." So naturally, the heavy spenders in Congress support this option.

The left's support of a VAT comes as no surprise to some. Former House Majority Leader Dick Armey (R-TX) says he "always believed" the Democrats would add a VAT when they won control of the White House and both Chambers of Congress. "Why?" he asks. "Because they've got glutinous spending habits, and they want to spend more, and they need to raise money to do it."

There's no question that the VAT would generate massive new revenues for the federal government. But even the largest tax hikes, which are always harmful to the economy, cannot counter the increasing rate of federal spending, particularly on programs like Social Security and Medicare. In addition, the more money we give to the government, the more we depend on it to give back. And, let's face it, this is never an even trade.

Reducing federal spending and reducing dependency on government are the only workable solutions to lower the deficit and restore prosperity. And a value-added tax does neither.

Lawmakers submit to Obamacare — accidentally

If it's good enough for the American people, it should be good enough for Washington lawmakers, right? Maybe.

In their haste to pass Obama's healthcare overhaul, liberals in Congress overlooked one detail—they have inadvertently made themselves ineligible for the top-notch health care plans previously available to them through the Federal Employees Health Benefits Program, and instead have accidentally subjected themselves to the disastrous effects of Obamacare.

The Congressional Research Service released a report detailing the provisions in Obama's healthcare reform bill that would require members of Congress and their staffs to surrender their FEHBP coverage in exchange for nationalized insurance. This would leave Congress in an interesting quandary: since the federal exchange will not take effect until 2014, the members and their staff would be left without insurance until then.

» Read the ongoing Side Effects series on Heritage's Foundry blog for more stories like this

Jerry Markon of the Washington Post writes: "The confusion was one of several potential problems that congressional Republicans and health-care experts have raised over how the landmark legislation affects members of Congress and their staffs."

Devonia Smith points out in the Washington Examiner that "the law puts Congress in the same boat they built for the rest of America, without a clue what the new health care reform will mean to them."

But Congress needn't have worried: the Office of Personnel Management released a statement this week citing a "drafting error" in the bill, which did not specify the date at which lawmakers will be required to relinquish their current insurance plans. Because of this oversight, members of Congress will be able to keep their current FEHBP plans until 2014—news that was received with sighs of relief[w1] .

And even when the federal exchanges do come into existence, a whole slew of exemptions built into the language of the bill excuses many federal employees and even White House staff from having to participate.

This is just one example of the dangers of rushing to pass poorly designed, unpopular legislation. The fact that Congress can't even manage its own health care plan does not bode well for American citizens. Though they may have found a way to finagle their way out of this predicament, they are still leaving the American citizens with a sloppy, substandard health care program.

— Eva Brates

> Other Heritage work of note

  • Contrary to what many on the left are saying about the financial reform plan that is being debated in the Senate, it would not put an end to bailouts, nor would it allow for poorly managed firms to fail in the free market. Quite the opposite, in fact. The bill is loaded with tight regulatory reforms on firms that it considers "systematically important", including the authority to close financial firms when the government believes they are failing. The Heritage Foundation's James Gattuso explains: "The regulators would have almost unfettered discretion to decide which ones to close, […] and broad authority to decide how to handle the affairs of the firm after it is seized."
  • Is green the new black? That's what many Washington lawmakers would like us to think. What Obama won't tell us is that these "green" energy sources are costly—not just in dollars, but in existing American jobs. Do we really want to emulate the European countries that have already gone that route? "Spain already has a clean-energy economy, with thousands of wind turbines and solar panels covering the landscape. It also has 19 percent unemployment, nearly twice the U.S. level," writes Heritage's Ben Lieberman.

    The reality is that many on the left have used environmentalism as a way to demonize free markets, writes Heritage's Conn Carroll. Studies have shown that greater affluence inevitably leads to a cleaner, safer environment.  "New research from the National Bureau of Economic Research shows — over the last 40 years — a strong connection between the worldwide march toward greater economic freedom and the massive reduction in poverty."

> In other news

  • California today starts spending federal taxpayer dollars on a "cash-for-appliances" program that incentivizes the purchase of energy-efficient refrigerators and washing machines. Like cash for clunkers, this encourages the destruction of perfectly good equipment in order to replace it. This, as Heritage's Conn Carroll pointed out, is the broken windows fallacy.
  • With Justice John Paul Stevens set to retire from the Supreme Court this summer, President Barack Obama have an opportunity to make a second nomination to the high bench in less than two years. Who will it be? The New York Times profiles potential pick Diane P. Wood, a Clinton appointee to the Seventh Circuit Court of Appeals.

Amanda Reinecker is a writer for MyHeritage.org—a website for members and supporters of The Heritage Foundation. Nathaniel Ward, the Editor of MyHeritage.org, and Eva Brates, a Heritage Foundation intern, contributed to this report.



Fwd: ObamaCare's Big Surprises for the Uninsured

  

Fix Health Care Policy

 

ObamaCare's Big Surprises for the Uninsured
 

The recently signed health-care legislation will have lasting consequences on health care in America. The massive two-piece package includes federal control of benefits, increased taxes, mandates on employers and individuals, and an expansion of costly and inefficient entitlements.

This represents a federal takeover of the U.S. health care system on the pretext of meeting the needs of the millions of Americans who are currently uninsured. However, in a recent paper, Heritage's Kathryn Nix writes:

The Scoop

Obamacare Implementation Timeline 
 
Outside the Beltway: Utah's Successes Highlight Federalism's Benefits
 
The Obama Budget Plan: Taxes and Rationing
 
There is Nothing Conservative about This President
 
Graphic: Medicare, Medicaid and Social Security Consume All Tax Revenues by 2052 

"This 'reform' will result in less choice and competition for health care consumers and, although more Americans will be 'covered,' the quality of this coverage will decrease.  Moreover, certain provisions of the new laws will make obtaining health insurance less desirable by increasing costs, causing even more Americans to drop or lose coverage."

According to the Congressional Budget Office, the new law will provide coverage to 32 million by 2019, but will still leave 24 million Americans uninsured. This is a far cry from universal coverage. For those who become newly insured, Nix argues ObamaCare falls short of fulfilling its promises to the uninsured because it:

Dumps millions into Medicaid. "In order to cover low-income uninsured citizens, Obamacare expands eligibility for Medicaid…[which] is a low-performing, low-quality federal program that fails to meet the needs of its beneficiaries. For example, Medicaid's failure to cover the cost to providers of seeing Medicaid patients has greatly reduced the number of doctors who will see Medicaid patients."

Will raise premiums, discouraging coverage. "A guaranteed-issue provision will allow Americans to wait until they are sick to seek out insurance, causing insurance premiums to soar. The individual mandate is intended to combat this by forcing Americans into the insurance market before they are sick. However, since the individual mandate penalty will be significantly less expensive than the cost of an insurance plan, this provision will not achieve universal coverage, and insurance risk pools will begin to consist more exclusively of only those who need insurance the most: the sick and the elderly. Younger, healthier Americans will likely choose to pay the penalty, purchasing insurance only if needed."

Will cause millions to lose their current coverage. "The ranks of the currently uninsured will not simply be reduced by the new law. Rather, as millions of Americans find themselves newly covered, a substantial number will also find that they will lose the coverage they currently carry as a result of the health care overhaul. According to the CBO, 8–9 million Americans that currently receive employer-sponsored coverage will lose it. Of these, 1–2 million would go from receiving coverage from an employer to obtaining coverage through the exchanges."

Resorting to mandates, government handouts and poorly functioning entitlement programs to increase coverage will do nothing to improve the health care quality of the uninsured. Though millions Americans will gain coverage, it will not necessarily be the private coverage they want, and it will come at a high cost. Heritage already projects a huge expansion in Medicaid.

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Fwd: Pelosi Calls Press Conference to Unveil $140,000 Light Fixtures in House Cafeteria




Today's Headlines

Thursday, April 22, 2010


Pelosi Calls Press Conference to Unveil $140,000 Light Fixtures in House Cafeteria
(CNSNews.com)
– House Speaker Nancy Pelosi called a Capitol Hill press conference on Wednesday to unveil new light fixtures in the House cafeteria. The light fixtures cost $140,000 and will take around 10 years to pay off in saved energy.

Democrat Congressman: America's Fossil Fuel Use Is 'Sinful'
(CNSNews.com)
– Rep. Emanuel Cleaver (D-Mo.) said on Wednesday that it is "sinful" for Americans to use the amount of fossil fuels they do. Cleaver, a United Methodist pastor, also said the Bible commands people to be good stewards of the Earth, which he said mankind is not doing.

Congressman's Earth Day Message: Trees Along Streets Make Better Drivers
(CNSNews.com)
– In a speech to the Alliance for Community Trees on Wednesday, Rep. Earl Blumenauer (D-Ore.) said that more trees lining urban streets "retards speeding." "I don't know if it's calming or it changes the visual impact on them, but it changes driving behavior and makes those communities safer."

Obama Won't Rule Out Value Added Tax, Which Would Hit All Income Levels
Washington (CNSNews.com)
– On Wednesday, White House Press Secretary Robert Gibbs repeated his assertion, first made on Monday, that President Obama is not currently considering a value added tax. But Gibbs did not give a definitive answer when reporters pressed him on whether the president would rule out a VAT if a fiscal commission appointed by the president recommends it.

Dick Armey: Democrats Will Impose Value Added Tax On Top of All Other Taxes
(CNSNews.com)
– Economist and former House Majority Leader Dick Armey (R-Texas) told CNSNews.com he "always believed" that Democrats would impose a Value Added Tax (VAT) on top of all existing, current taxes when they took control of the House, Senate and White House. Armey described the VAT as the most "insidious tax of all."

DHS Official Says Underwear Bomber Might Have Raised A Red Flag After He Arrived in Detroit
(CNSNews.com)
– A Department of Homeland Security official told a Senate panel on Wednesday that the Christmas Day bomber probably would have raised a red flag on his arrival in the United States. The committee called the hearing to find out what changes the Obama administration has made since the Nigerian man tried to detonate a bomb hidden in his underwear on Northwest Airlines Flight 253 as it neared the airport in Detroit on Dec. 25, 2009.

Sen. Leahy Wants Obama to Nominate A Justice Who Will Move Supreme Court to the Left
Washington (CNSNews.com)
– Senate Judiciary Chairman Patrick Leahy (D-Vt.) wants President Obama's next court appointee to move the court in a different direction. "We have right now a very, very activist, conservative activist, Supreme Court," Leahy told reporters after he and other senators met with President Obama Wednesday. "I think this does not reflect the American people but reflects more of a partisan agenda. I would hope that the president's nominee can get us back away from that."

Activists Claim Free Speech Victory As 'Leaving Islam' Ads Return to Buses
(CNSNews.com)
– A public transit authority in Florida has reversed a decision to take down banner advertisements on buses that offer help to Muslims wanting to leave their faith. The decision came after the group initiating the ad campaign threatened a lawsuit, claiming breach of contract and violation of First Amendment rights.

ENDA Could Open 'Every Classroom in America' to Cross-Dressing Teachers, Conservative Group Says
(CNSNews.com)
- Homosexual activists are pressuring the House to pass the Employment Non-Discrimination Act (ENDA). They want a vote on the bill as early as this week. A conservative group warns the bill could bar employers from firing transsexuals, cross-dressers or men who think of themselves as women.
 


CNSNEWS.COM VIDEO

Actress Sigourney Weaver Criticizes President Obama
(CNSNews.com)
- Actress Sigourney Weaver, best known for her roles in the films Avatar, Aliens, and Ghostbusters, says President Obama's offshore oil drilling proposal is a step backward. "I just think there's too much at risk between the fishing industry and the tourism industry, you know? We have such magnificent coastlines and I think it's, I think, again, it's stepping backward."

James Cameron: Climate Change 'As Great As The Threat' U.S. Faced in World War II
(CNSNews.com)
- Academy Award-winning Director James Cameron says climate change is "as great as the threat" the United States faced in World War II. He made the comment last week during a panel discussion about environmental policy on Capitol Hill.


OTHER CNSNEWS.COM HEADLINES

U.S. Military Jury in Baghdad Clears Navy SEAL in Prisoner Abuse Case

Sour Economy Cited for Drop in Motorcyclist Deaths
Obama Brings His War on Wall Street to New York on Thursday
Schools Urge Parents, Don't Take Your Kid to Work on Thursday
Mexico City Offers Bike-Share Program As Part of Clean-Air Campaign
Many International Flights Resume, But Ash Forces Closures in Sweden and Norway
Israel Rejects Obama's Demand to Stop New Housing Construction in Jerusalem
No More Burning Rivers, but Earth Day Brings New Threats
Arizona Immigration Debate Forces McCain to Move to the Right
Whale Capsizes Canoe, Drowning Man in Cape Cod
Iran's President Ahmadinejad Visits Zimbabwe
See-Through Toaster Coming This Spring
Hillary Clinton Reaffirms U.S. Commitment to Defense of Europe

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NEWSPAPER ROUNDUP:

Senior official quits Amnesty International over its ties to a former Gitmo detainee
Boston proposes wind turbine that could power 800 homes
Pelosi tells Reid: Immigration bill before climate change is 'fine'
With or without Congress, carbon curbs are coming, says Obama climate adviser
Sens. Durbin, Lugar urge halt to illegal student deportations
Boy who punched schoolmate won't be deported
Colorado voters may be asked to expand gambling to aid universities
Boulder County launches aggressive campaign to stop energy wasters
Democrats' budget plan adds $3.9 trillion more government debt over 5 years
Pro-life groups plan offensive against their former allies, pro-life House Dems
Canadian immigration authorities tap into sensitive U.S. government databases
New York Mayor Bloomberg defends Wall Street
Specter blasted for attacking his challenger's Navy service
Blue Cross of RI reports $100 million loss in 2009
Gov. Chris Christie says N.J. school budget defeats should serve as 'wake up call'
Jury rules nurse didn't violate rights of woman barred from partner's room
Counties using federal grant money to buy, sell foreclosed homes
U-Maryland officials produce video of student's beating by police


COMMENTARY

Taxes and Voting
By Walter E. Williams
According to the Tax Policy Center, a Washington, D.C., research organization, nearly half of U.S. households will pay no federal income taxes for 2009. That's up from the Tax Foundation's 2006 estimate that 41 percent of the American population, or 121 million Americans, were completely outside the federal income tax system. Here's my perhaps politically incorrect question: If one has no financial stake in our country, how much of a say-so should he have in its management?

 


Fwd: Budget Bulletin: How Washington Is Spending Your Taxes in 2010



  

The Heritage Foundation
Budget Bulletin
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Recent Updates
Obamacare: Impact on Taxpayers
Think Tax Day Is Expensive This Year? Just wait.

Tax Day Or Pay Day

Featured Research

How Washington Is Spending Your Taxes in 2010

By Brian Riedl

Taxpayers filing their 1040s are likely wondering just where all their hard-earned tax dollars are going, anyway.

Washington will spend $31,406 per household in 2010 — the highest level in American history (adjusted for inflation). It will collect $18,276 per household in taxes. The remaining $13,130 represents this year's staggering budget deficit per household, which, along with all prior government debt, will be dumped in the laps of our children.

Government spending has increased by $5,000 per household since 2008, and nearly $10,000 per household over the past decade. Yet there is no free lunch: If spending is not reined in, then eventually taxes must also rise by $10,000 per household.

Washington will spend this $31,406 per household as follows:

>> Click here to read Brian Riedl's full report

Chart of the Week

Get more charts with Heritage's Federal Revenue and Spending Book of Charts

About The Heritage Foundation
Founded in 1973, The Heritage Foundation is a research and educational institute - a think tank - whose mission is to formulate and promote conservative public policies based on the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.

The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400

Fwd: Earth Day Special Report: Networks Hide the Decline in Credibility of Climate Change Science


The Balance Sheet
Apr 22, 2010
Vol. 6 No. 16

Earth Day Special Report: Networks Hide the Decline in Credibility of Climate Change Science 
For years the global warming alarmists' mantra has been "the science is settled." But a recent series of shocking disclosures about climate science has shaken the credibility of that claim. The Business & Media Institute found that the networks reported ClimateGate and other alarmist scandals in less than 10 percent of global warming coverage.

Read the Executive Summary
Read the Full Report

Obama's Amused. We Are Not.
The president dismisses your concerns and laughs at your protests as he piles on the taxes.

An Incurious Media or a Four-Leaf-Clover President
Obama is lucky journalists don't want to make him look bad.

 

You can also find Dan Gainor's commentary on The Fox Forum.


You can also check out BMI's editorial cartoon: Bottom Lines by Glenn Foden.


 

 
                                  

Fwd: Morning Bell: Economic Freedom Will Save the Earth


Morning Bell
04/22/2010

Economic Freedom Will Save the Earth

The New York City sightseeing company Gray Line is promoting an "Earth Week" package of day trips that includes visits to "green spots" like the botanical gardens and flower shopping at Chelsea Market. The fact that these tours will be taken on buses running on fossil fuels does not sit well with the first Earth Day national coordinator Denis Hayes who tells The New York Times what he thinks of such green consumerism: "This ridiculous perverted marketing has cheapened the concept of what is really green. It is tragic."

The left in this country has always considered it "tragic" when people make money in this country, and the plight of the earth is just one of many justifications they have used over the years to demonize free markets. Back in the 70s,
President Barack Obama's Director for Science and Technology Policy John Holdren even came up with a formula to measure capitalism's evil impact on the environment: I=PAT, which means that environmental impact is equal to population multiplied by affluence multiplied by technology. Thus according to the left, protecting the planet requires fewer people, less wealth and simpler technology. But this is just flat wrong. In fact, studies clearly show that important indicators of environmental quality actually improve as incomes and levels of consumption go up.

But this begs the question: what are the best policies that promote economic growth? Economic freedom. New research from the
National Bureau of Economic Research shows — over the last 40 years — a strong connection between the worldwide march toward greater economic freedom and the massive reduction in poverty. And our own Index of Economic Freedom demonstrates empirically that today's successful economies are not necessarily geographically large or richly blessed with natural resources. Instead, the proven path to stimulating economic growth is to advance economic freedom by promoting policies that generate a virtuous cycle of innovation, vibrant economic expansion, and more opportunities for people.

Specifically, the expansion of trade and the protection of property rights are fundamental to ensuring economic growth and environmental improvement. A recent

Fwd: MRC Alert: MSNBC Suspends Donny Deutsch for Daring to Critique Olbermann, Did Nothing After Racially Tinged 'Coconut' Slur



 

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MRC CyberAlert

A daily compilation edited by Brent H. Baker, CyberAlert items are drawn from daily BiasAlert posts and distributed by the Media Research Center's News Analysis Division, the leader since 1987 in documenting, exposing and neutralizing liberal media bias.

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Tracking Liberal Media Bias Since 1996
Thursday April 22, 2010 @ 09:28 AM EDT

1. MSNBC Suspends Donny Deutsch for Daring to Critique Olbermann, Did Nothing After Racially Tinged 'Coconut' Slur
MSNBC on Wednesday suspended host Donny Deutsch in the wake of a segment on Tuesday about what role hosts such as Keith Olbermann and Ed Schultz play in making this country "America the angry." During the piece, Deutsch played a clip of an Olbermann rant and didn't defend Schultz when conservative radio host Hugh Hewitt attacked the "the biggest hate mongers in television." However, in February, when Deutsch dismissed Hispanic senatorial hopeful Marco Rubio as a "coconut," a term that the New York Times described as meaning "brown on the outside and white on the inside," MSNBC took no action.

2. CBS: 'Encouraging News,' GOP 'Changing Their Tone' on Dem Financial Reform Plan
Cheering some Republican support for Democratic financial reform legislation on Wednesday, CBS Early Show co-host Maggie Rodriguez declared: "encouraging news out of Washington, that after a week or so of attacking this financial bill that the Democrats are proposing to regulate Wall Street, Republicans are changing their tone and they seem to be wanting to come on board." On Tuesday, the Early Show had on disgraced ex-New York Governor Eliot Spitzer to discuss financial reform. Co-host Harry Smith introduced him as "the sheriff of Wall Street."

3. No Surprise: NY Times Readership Easily Most Liberal of Any 'Objective' News Outlet
A study on where people of different political persuasions get their news finds that the New York Times' readership is the most liberal of any cited news outlet that holds itself out as an "objective" news source: "Readers of the New York Times print edition are substantially more liberal than those of USA Today or the Wall Street Journal."

4. Video Compilation: The Media Crashing the Tea Party
Over the past year since its inception, the media have worked hard to discredit and denigrate the tea party movement. News organizations employed various strategies, from dismissing the protests as astroturf, to using derogatory nicknames for participants, and finally labeling it as a violent extremist fringe. In their futile attempt to get something to stick, the media have become increasingly desperate and irresponsible in their coverage. In the Media Research Center's special report, 'TV's Tea Party Travesty,' MRC Research Director Rich Noyes focused in on the slanted coverage of the tea parties by ABC, CBS, and NBC over the past year.

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