Some jokester said last night that a joint session of Congress is when all the liberals bring their joints to Congress. I thought it was amusing.
About the speech, well, I have to say the president was fiery. But as I expected it was all based on philosophy government having a direct guiding hand in getting economic progress going. He has whiffed twice before, yet he is asking for a 3rd try withh same recipe. Last time he asked and got almost a trillion dollars to stimulate the economy. It didn't work. Country is on teh edge of another recession. The presidnet is now asking almost half a trillion dollars for same projects. Money that he didn't know where it was coming from last night, yet he told us that his plan was paid for right off the bat. The president's plan is mostly a subsidy to his base and to placate union leadership who lately have not had good thing to say about his job.
The payroll tax, better known to all of us as FICA, reduction was part of last December tax compromise when it was reduced from 6.2 percent to 4.2 percent. It is supposed to expire this coming December. Remember, FICA funds retirees and disabilities trusts funds. It also funds Medicare. The president's proposal calls for tax to be lowered to 3.1 percent. For employers, the proposal would halve the employer’s share of the payroll tax temporarily – to 3.1% from the current 6.2% – on the first $5 million of a firm’s payroll in 2012. About 98% of firms have payrolls of $5 million or less, the White House said in materials distributed before the speech. Here are two facts: the tax reduction is temporary and president didn't bother to explain teh impact to Social Security trust fund, which will force the Treasury to borrow to make up for sizable deficit-negative cost to the taxpayers of such a plan. The president proposed money for repairing and updating schools. Last time I looked, the school year just started. Therefore, those jobs won't be ready until next summer. Somehow, the president forgot that we need jobs now. Unemployment benefits although helpful short term, they don't create jobs. It just a band aid. What small businesses and large corporations want is certainty. How on earth does the president think companies create hiring plan whenin a year the tax reduction will expire again. Businesses have short and long term plan. The president seems to be more interested in a short plan that gets him re-elected. 2013? Tax increase for everyone.
Just after Mr. Obama assumed the presidency January/2009, he gave 2 speeches about economic recovery. To the Wall St crowd he told them it was up to them to get the economy going. He switched his rhetoric by telling his base that it is up to government to help guide us out of the economic crisis. You don't believe? Its all there on YouTube. Unfortunately, my job doesn't allow me to access those type of sites. Otherwise, I would post link. I think it was during the French Revolution that the idea was born that creating a myth convinces the population. In this case, the president has created this myth that by taxing the rich our economic problems will be solved.
The president lost credibility in his speech by having Jeffrey Immelt, whose GE company is the poster for outsourcing jobs overseas and not paying taxes, seat next to Mrs Obama last night. He further lost credibility by sayin the following:
Right now, Warren Buffet pays a lower tax rate than his secretary – an outrage he has asked us to fix. We need a tax code where everyone gets a fair shake, and everybody pays their fair share. And I believe the vast majority of wealthy Americans and CEOs are willing to do just that, if it helps the economy grow and gets our fiscal house in order.
I guess it must be unknown to the president that capital gains taxes, like Mr Buffet pays, and personal income taxes, which Mr. Bufett secretary pays, are two separate type of taxes. You can't use them as an apples and apples comparison for case he is trying to make. Unless this isall an attempt to get all Americans into class warfare. For a uniter he portrayed himself during '08 presidential campaign, he is surely divisive to me.
It has become very clear President Obama needs to have a Democratic Congress or an uncheck system to be "successul". Reagan had tough Speaker Tip O'Neill to conduct business with during a period of 6-8 percent economic growth. Yet, he was able to get his economic recovery policies, tax reductions, and budget deficit passed thru. Bill Clinton dealt not only with Newt Gingrich, but a Republican Congress most of his administration. Clinton was a great salesman ofhis policies. The president spent a good amount of time last night admonishing Congress. Last time I checked, Democrats have the leadership of the Senate. Did the president intend to throw his fellow Democrats under the bus last night? Be weary of someone telling you to buy something today because it won't be there tomorrow. Passing something for the sake of it won't do us any good. We can't afford to continue to throw money to bottomless pits and not get benefits for it. I'm sorry if that doesn't satisfy the president.