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Spending


When President Bush announced his economic stimulus in January, he bragged that his package was the “right size” and would “boost” the economy. It sure has led to “higher consumer spending,” but not where Bush had probably hoped. The adult pornography industry reports that has seen a huge uptick in business thanks to Bush’s package.

Of  course, this is also a great opportunity to bring back one of my favorite videos from ht

digg story

Stop Chuck Grassley

For more what Chuck Grassley is trying to do, click here to read more.

Even though it was inevitable that the Democrats would get the cloture vote that Harry Reid was seeking on the Foreclosure Prevention Act of 2008 (aka: Housing Bailout Bill), I have to admit that I was quite surprised to see it get the overwhelming support that it did.

The final vote on H.R. 3221 was 83 yea’s, 9 nay’s, and then there were 8 member of the Senate who were either running for President, recovering from surgery, or simply didn’t want to show the American people that they had a pair and stand up for what is right.

Regardless of how this vote turned out, there are 9 members of the Senate who deserve our thanks and gratitude for standing up and speaking out against this horrible piece of legislation.

Senators who have a pair:

 

Senator John Barrasso, Wyoming

John Barrasso

Senator Christopher Bond, Missouri

Christopher Bond

Senator James Bunning, Kentucky

James Bunning

Senator Michael Crapo, Idaho

Michael Crapo

Senator Jim DeMint, South Carolina

Jim DeMint

Senator John Ensign, Nevada

John Ensign

Senator Michael Enzi, Wyoming

Michael Enzi

Senator Jon Kyl, Arizona

John Kyl

Senator David Vitter, Louisiana

David Vitter

 

And then there are those Senators who simply don’t get it:

Akaka (D-HI)
Alexander (R-TN)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Biden (D-DE)
Bingaman (D-NM)
Boxer (D-CA)
Brown (D-OH)
Burr (R-NC)
Byrd (D-WV)
Cantwell (D-WA)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Chambliss (R-GA)
Cochran (R-MS)
Coleman (R-MN)

Collins (R-ME)
Conrad (D-ND)
Corker (R-TN)
Cornyn (R-TX)

Craig (R-ID)
Dodd (D-CT)
Dole (R-NC)
Domenici (R-NM)
Dorgan (D-ND)
Durbin (D-IL)
Feingold (D-WI)
Feinstein (D-CA)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hagel (R-NE)
Harkin (D-IA)
Hatch (R-UT)
Hutchison (R-TX)
Inouye (D-HI)
Isakson (R-GA)
Johnson (D-SD)
Kerry (D-MA)
Klobuchar (D-MN)
Kohl (D-WI)
Landrieu (D-LA)
Lautenberg (D-NJ)
Leahy (D-VT)
Levin (D-MI)
Lieberman (ID-CT)
Lincoln (D-AR)
Lugar (R-IN)
Martinez (R-FL)
McCaskill (D-MO)
McConnell (R-KY)
Menendez (D-NJ)
Mikulski (D-MD)
Murkowski (R-AK)
Murray (D-WA)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Reed (D-RI)
Reid (D-NV)
Roberts (R-KS)
Rockefeller (D-WV)
Salazar (D-CO)
Sanders (I-VT)
Schumer (D-NY)
Sessions (R-AL)
Shelby (R-AL)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)

Stabenow (D-MI)
Stevens (R-AK)
Sununu (R-NH)

Tester (D-MT)
Thune (R-SD)
Voinovich (R-OH)
Warner (R-VA)

Webb (D-VA)
Whitehouse (D-RI)
Wicker (R-MS)
Wyden (D-OR)

 

 

Blogs covering this:

http://www.clubforgrowth.org/2008/06/senate_key_vote_doddshelby_hou.php

http://usmegatrends.blogspot.com/2008/06/is-there-goat-in-house.html

http://www.mathies.com/weblog/?p=1319

http://rubechat.kfan.com/forums/thread/3139831.aspx

http://senatus.wordpress.com/2008/06/24/another-emergency-spending-bill-possible-housing-bill-may-be-pushed-back/

http://www.courant.com/news/politics/hc-sns-ap-congress-housing,0,2396621.story?track=rss

http://thekansascitian.blogspot.com/2008/06/senate-housing-bailout-further-erodes.html

If you’re covering the post-cloture segments of the Housing Bailout Bill, let me know, I’d be more than happy to add your link to the list.

Sadly, its one of our own that has come up with one of the most ludicrous amendments to what is already seen by many as one horrible package of legislation.

It’s none other than Senator Chuck Grassley of Iowa that has developed the language that would essentially open the door to online merchants like Ebay, Amazon, Google Checkout, etc. reporting all of their transaction activity to the government.

First of all, it’s important to note that this provision was packaged in the Housing Bill, which has absolutely nothing to do with online merchants. The provision was buried amongst 600+ pages of legislation, making it more likely to be overlooked by tired Hill staffers. For those who haven’t read the language, here it is (source):

Payment Card and Third Party Network Information Reporting. The proposal requires information reporting on payment card and third party network transactions. Payment settlement entities, including merchant acquiring banks and third party settlement organizations, or third party payment facilitators acting on their behalf, will be required to report the annual gross amount of reportable transactions to the IRS and to the participating payee. Reportable transactions include any payment card transaction and any third party network transaction. Participating payees include persons who accept a payment card as payment and third party networks who accept payment from a third party settlement organization in settlement of transactions. A payment card means any card issued pursuant to an agreement or arrangement which provides for standards and mechanisms for settling the transactions. Use of an account number or other indicia associated with a payment card will be treated in the same manner as a payment card. A de minimis exception for transactions of $10,000 or less and 200 transactions or less applies to payments by third party settlement organizations. The proposal applies to returns for calendar years beginning after December 31, 2010. Back-up withholding provisions apply to amounts paid after December 31, 2011. This proposal is estimated to raise $9.802 billion over ten years.

It’s quite clear to see the many problems that could be created if this piece of legislation was enacted.

Of course, after this was exposed, Kate Szostak, a staffer on the Banking Committee quickly tried to kill any doubts and/or concerns people had with the legislation:

“This is not a controversial provision or a new one. Republicans and Democrats on the Senate Finance Committee have supported it for months, and it has been included in the Administration’s budget proposal for years. This provision simply requires banks–not small businesses–to report sales transactions to the IRS each year and to merchants at the end of each day. It makes the tax system fair for everyone, without burdening small businesses and without putting consumers’ privacy rights at risk.”

With all due respect to Kate, this is indeed a very controversial provision that could greatly effect how business is done online.

For example, let’s say I sell 500 widgets on Ebay every month and at the end of each month, $20,000 or so is transferred into my bank account. Stop. That is basically what is going to be reported to the IRS and filed away under your EIN or SSN and it should be no surprise that they are going to be there at the end of the year waiting for you to pay taxes on it.

However, if you’re a business owner, there is much more to this equation than the IRS would be seeing. Nowhere in this reporting would Ebay or the IRS have any idea how much each of these widgets cost you. Sure, you might have had $20,000 transferred to your account, but what if you had to spend $19,500 on acquisition and shipping of the widgets?

This number has to first be deducted from the $20,000 before any accurate representation of income can be generated. When you tack on other things like operating costs, it’s even easier to see how the IRS is going to have skewed numbers.

I’m sure many of you are now asking, so what, you’ll report all of this on your tax forms and pay taxes based on that.

The reality is that even if this is the case, with the IRS having all of this data, they are going to be looking harder than ever for anyone that is cheating the system. Any discrepancy on either end could potentially throw up a red flag and lead to an audit. No matter what criteria they create, there is always going to be a discrepancy in numbers, simply because each small business operates in a different way, having different pricing structures, sales models, operating costs, exposure, etc.

With this legislation, I don’t see how the IRS would be able to operate without a major expansion, and that’s just to cover the oversight of this data. There are many other arguments that people have brought up over this legislation, including privacy concerns and other important logistics, but for some reason, some of our elected officials don’t want to bring this up for more debate and are hoping to end discussion of this in the next 48 hours.

So, that’s where we come in and help disseminate information exposing America’s #1 R.I.N.O., Senator Chuck Grassley.

Here are some other bloggers that are also covering this topic, and have made excellent posts.

http://techliberation.com/2008/06/23/senate-housing-bill-to-require-collecting-of-online-payment-information/

http://blogs.courant.com/on_background/2008/06/credit-card-tracking-slipped-i.html

http://www.infowars.com/?p=2785

http://papundits.wordpress.com/2008/06/24/housing-bailout-bill-new-provision-report

http://osispeaks.com/

http://fetchingjen.blogspot.com/

http://www.oregonconservative.com

http://www.conservativerecord.com

It seems like $300,000,000,000 is the magic number these days in Washington.

First Congress wanted to allocate $300billion for a mortgage bailout, and now they want allocate another $300billion of YOUR money to subsidizing farmers and a variety of other state pet-projects.

Even though President Bush had promised a veto on this legislation, the House continued to charge ahead at full speed, passing the Farm Bill and all the pork attached.

From CNN.com:

“This bill has been under consideration for a long, long time, and yet still we have earmarks that have been ‘air dropped’ into the legislation,” said Arizona GOP Rep. Jeff Flake.

So what exactly is included in this package? Here is just a taste:

The bill also contains a few home-state projects, including tax breaks for Kentucky racehorse owners, extra help for farmers in Hawaii and Alaska and dollars for salmon fishermen in the Pacific Northwest.

Sadly, this is only the tip of the iceberg.

In the coming days, I’ll try to get a more complete list of some of the additional pet-projects that are included in this enormous package, as well as who requested them.

Unfortunately, the vote in the House was 318-106, which means that there is already enough likely-’yays’ for a veto override. However, if 28 of the 100 Republicans who voted for the Farm Bill would grow a pair and focus on principle, and not the outcome in November, then maybe people would start to see the Republican Party as one that is actually unified behind a set of core values.

Welcome to campaign 2008.

Today President Bush gave an address from the Rose Garden at the White House where he held nothing back in expressing his frustration with the current Congress and their inability to work issues out, instead just resulting in using political tactics to block key programs.

Particularly, President Bush used this criticism to address the financial crisis facing the United States (courtesy of CNN.com):

“I repeatedly submitted proposal to help address the problems. Time after time, Congress chose to block them,” he said.

Bush called on Congress to send him sensible and effective bills to keep the country moving forward before taking questions from reporters.

I really hope this isn’t President Bush’s way of saying that he would hope for more bailouts of corporations and individuals who are facing financial troubles.

It was after all, President Bush who pushed hard for Congress to agree on a stimulus package, which in the opinion of many conservatives was an extremely wasteful idea that will probably have little impact on the economy.

However, in the same press conference, President Bush also went after Congress for even considering passing the Farm Bill, which has become even heavier in farm subsidies, increasing the burden on the American taxpayer.

Finally, President Bush made the effort to try and set the tone for Congress as his Presidency winds down:

Bush asked Congress to focus on four areas: energy, food prices, mortgage payments and student loans. The president urged Congress to pass legislation that would lead to more affordable and reliable energy at home.

While I give President Bush credit for calling out Congress, these directives sound almost exactly like the pitch the Democrats were giving the American people when they cleaned up shop in the 2006 elections.

Calling out Congress is extremely important when the country is in financial turmoil, but I think it’s also extremely important that when the President speaks, that he has more substance and addresses the real problems that are at hand.

Instead of telling Congress to address these issues, President Bush should have told Congress what specific things he would like to see, what he would be open to signing, and what things he isn’t going to cave in on.

This is his last term and he has absolutely nothing to lose.

I would argue that this is probably one of the few opportunities where the Republicans didn’t have to cave into the pressures of the Democrats, in fear of losing political points.

Before President Bush leaves office, I’d love for him to tell Congress that he will only support packages that are based on substance and real need for ALL Americans, not just small populations, or special interests. While it wont be the most popular action in his presidency, it will set a tone that Republicans can and will stand up to frivolous spending, and actually try and use fiscal restraint to try and get this countries economy back on track.

Bailouts, subsidies and pork-projects aren’t going to fix the economy, however prudence and cutbacks will put us on the right course.

I’ve made many posts here regarding my opposition to an alarming trend that I’ve seen growing rampantly here in Washington, a trend that all Americans will pay for, but only a few will reap the benefits of - government bailouts.

While the unorthodox treatment that Bear Stearns got from the Federal Reserve a few weeks ago was enough to cause short-term chaos in financial markets across the globe, the more troubling bailout, without a doubt, is one aimed at the mortgage markets.

Anyone who has received some sort of formal education understands that you shouldn’t borrow more money than you can afford, and more importantly shouldn’t sign a contract where you aren’t 100% confident of the specified terms and/or rates.

Even so, the government has felt the need to take responsibility for the actions of these irresponsible borrowers, and seems to think that using taxpayer money to stabilize these loans is going to be the best approach to preventing more long-term economic turmoil.

While I haven’t seen seen one good bailout proposal, I’m pleased to see that there are concerned citizens who are rallying against this showing of fiscal irresponsibility by both a select group consumers and the government.

What’s even more pleasing is that many of these people who are rallying against these bailouts aren’t usual suspects.

The impressive part of this movement isn’t the families with the 2.5 kids, white picket fence in the suburbs, etc, who have made smart financial decisions and are usually the first to rally against foolish government intervention. Sure, many of them are on board with opposing these bailouts, as they should be, but the really impressive thing is the number of renters who are following what is happening and realizing that they are getting screwed more than any other group of people.

A few weeks ago, FreedomWorks launched a site called AngryRenter.com, with the goal of bringing attention to how renters are being affected by these ridiculous bailouts.

Keep in mind that renters, for a variety of reasons, have chosen not to buy homes. For many, they are waiting for the market to get better, for others they are waiting until they have more money and for some, they just don’t want to deal with the responsibility.

(here is a great video by Peter Suderman summing things up)

Regardless of their rationale, is their any argument that can justify sticking the burden of covering these bad mortgages on people who don’t even have them? There is absolutely no argument for that.

Of course, the early results of AngryRenter.com clearly show that this is now an issue that has upset many, and if Congress wants to prevent their less than stellar approval rating from reaching new depths, they might want to pay attention.

In only a few weeks, AngryRenter.com has already gathered nearly 12,000 signers to their petition, and I don’t see any reason why that number wont grow exponentially in the near future.

I urge everyone to check out the site, sign the petition and even forward it on to your friends.

It’s tough to get Congress to pay attention to even the biggest issues sometimes, but when you present them with tens of thousands of names, they usually wake up… at least the good ones do.

Since today is Earth Day, I figured that I would take this opportunity to make a post that is political in nature, but also addresses a bigger challenge that the United States is facing.

Obviously there is enormous support behind the movement that is striving to eradicate global warming and I give them a lot of credit. They have done a great job mobilizing and I have no doubt that their reach is now into the millions.

I’m not going to try and argue against global warming. I’m not a scientist nor will I try to pretend that I am.

But what I will continually argue against is the use of government mandates to try and address global warming and the other ecological problems we’re facing.

Even those mandates that have been praised by many on the Left (like those relating to Ethanol), have only later been proven to be more harmful to the environment than the products they were aiming to replace.

Furthermore, CNN.com is even reporting that this energy-by-corn-ogasm has also created problems for world food prices:

Those battling global warming by promoting biofuels may unintentionally be adding to skyrocketing world food prices, creating what one expert calls “a silent tsunami” in developing nations.

The rising prices are “threatening to plunge more than 100 million people on every continent into hunger,” Josette Sheeran, executive director of the United Nations’ World Food Program, said on the agency’s Web site Tuesday.

The article continues:

Producing fuel from plant crops is supposed to be greener than drilling for oil, and biofuels generally burn cleaner, too. But the global biofuels industry now stands accused of a list of side effects that are said to be damaging lives, especially of the world’s poorest people.

The drive for more biofuels means more investment is going into those crops, meaning less land and less investment going in for food crops, causing a massive conflict and resulting in rising prices, which is having a huge negative impact, especially on developing countries,” said Clare Oxborrow, food campaigner for Friends of the Earth.

Is this really a trend that we want to see continue?

As it stands now, the United States has used corn as the save-all-product, when in reality it is something that is just over-subsidized and keeps better, healthier and cheaper products from coming into the United States in higher quantities. Furthermore, it drives up the prices of things like sugar – courtesy of some unfair government regulations.

I think the track record for government mandates on all of these energy and eco-projects have shown to be complete failures that have wasted tons of money and left the environment worse than it was originally.

The answer to me seems simple: government mandates simply don’t work.

I’m sure I’ve just upset a lot of environmentalists out there, but I truly believe that choice could be the best solution for making the environment better – not the government.

Just look at the environmental movement that is sweeping across the country today.

These people aren’t motivated by government mandates, but instead are motivated by knowing that they can do something that will help make the world a better place, and for some there is also the added benefit of knowing that they can save some money.

If there were no mandates in the next 10 years, would the environmentalist progression slow down? I don’t think so.

This movement is growing on its own, so why should the government get in the way of that?

With fuel prices soaring, I’ve even seen many far-right conservatives purchase hybrid vehicles, simply because they are more economical.

Furthermore, I don’t see any reason why any homes built in the future won’t be made to be as energy efficient as possible.

Even those who think that global warming is a complete myth and nothing should be done, will still buy into the efficiency argument, simply because it is more economical.

I think that all of this will lead to a mentality shift amongst the next generation, who will also see the advantages of being Earth conscious, and be able to make these decisions on their own.

CNN.com has a few pages showing how people can “go green,” without having the government telling them how to do it. I urge everyone to check these out and consider some of the options.

Even I, DC Republican, have started to adapt some of these “green ideas” into my world.

I don’t do it because I’m a raging environmentalist, but because I see no harm in making the world a cleaner, greener place, while saving myself some money at the same time.
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Just when I thought that there was no Alaskan who could be less of a fiscal conservative than Senator Ted Stevens, the pitfalls of another Alaskan, Congressman Don Young are brought back into the spotlight, this time with the likely prospect of intervention from the Department of Justice.

Without a doubt, the actions of Congressman Young are far more appalling and apprehensible than any of the ridiculous earmarks that Senator Stevens has tried to push through Congress.

Here is a brief recap from CNN.com illustrating the problem Congressman Young now finds himself facing:

WASHINGTON (CNN) — The Senate voted Thursday to seek a federal investigation into a 2005 earmark on a highway funding bill that was altered after Congress approved the measure but before President Bush signed it.

Earmarks are requests for money by a specific legislator, usually for her or his constituency, added onto often-unrelated government spending bills.

The $10 million earmark — originally designated for improvements to Interstate 75 in Lee and Collier Counties in Florida — was changed to put the money intoRepresentative Don Young building an interchange in Lee County, an apparent violation of congressional rules.

The staff of Rep. Don Young made the changes, the Alaska Republican’s spokeswoman said Tuesday, saying the staff had “fixed” a mistake in the original bill.

A proposal put forward by Sen. Barbara Boxer, D-California, to direct the Justice Department to investigate passed the Senate by a vote of 63-29.

Without a doubt, Congressman Young is in deep, and he’s known this for awhile.

Unlike bad earmarks from Senator Stevens that were for Alaska, this earmark was a pet project for Daniel J. Aronoff, a well known real-estate developer that helped Congressman Young raise $40,000 just a few days before the measure was introduced on the house floor.

It’s sad to think that even after all of these scandals, there are still Congressman (particularly Republicans) who are willing to do whatever they can to add to their war-chest. He wasn’t the first and probably wont be the last.

What’s even more appalling, is the response that one of Arnoff’s consultants gave the New York Times:

“We were looking for a lot of money,” said the consultant, Joe Mazurkiewicz. “We evidently made a very good impression on Congressman Young, and thanks to a lot of great work from Congressman Young, we got $81 million to expand Interstate 75 and $10 million for the Coconut Road interchange.”

Aside from this being a bold reply, I think it makes it quite clear that Congressman Young probably wasn’t the only member of Congress helping Mr. Arnoff get the projects that he needs.

Looking at what is being presented, and Congressman Young’s continuous “no comment” replies, I don’t see any way that he will get out of this. In fact, even though I am a Republican, if he is found guilty, I hope that the he has the book thrown at him. I’m guessing Senator Coburn probably agrees with me as well.

Congressman Young isn’t a rookie to Washington. In fact, he’s been here longer than I have been alive. As any member, hill staffer and lobbyist knows, there is a simple procedure in place to correct a bill that has already been passed by the House and Senate.

It’s called a “concurrent resolution.”

This isn’t an unknown process, in fact, I would argue that it is probably one of the most widely used processes amongst both bodies, especially when there are bills that have multiple earmarks and/or provisions. Regardless of how his staff tries to sugarcoat this, the procedure for correcting these bills is known and there is no way around the process, regardless of chairmanships and/or status.

Of course, one cant help but notice the timing of this.

This was something that happened in 2005, but for some reason it took over two years for major action to be requested? The Democrats have obviously been waiting and holding onto this one, and their timing is perfect.

For weeks, there has been virtually no talk of Republicans on the news, simply because John McCain has had smooth sailing after Mike Huckabee finally left the race. This means that all of the political coverage has been of Senators Clinton and Obama beating each other up, which has played a toll on mobilizing Democrats.

However, now the Republicans are back in the hot seat, and I wouldn’t be surprised if the Democrats are able to use this a catalyst to raise a good deal of money for their candidates.

As unfortunate at it is, I think that this could very well be the straw that breaks the back of the NRCC… they just are having a horrible year.

Here is a site that I urge everyone who is interested and/or concerned with the latest actions and proposals to bailout certain segments of the housing market to visit.

Below is a brief overview of what this site is about:

This site is dedicated to stopping the government’s planned bailout of the housing market. A bailout requires responsible Americans to pay for the acts of greedy bankers, mortgage brokers, flippers, and over-extended homeowners. In other words, the government wants you to pay for the blunders of others who knew, or should have known, better.

Equally as important, a bailout would permanently price out of the housing market all those responsible Americans who have been patiently saving to buy a house that they can actually afford. The current housing correction is necessary to correct for the historic run up in housing prices over the past decade, which has pushed the price of housing beyond affordability. By bailing out the housing market, the government will prevent housing prices from returning to affordable levels and thereby ensure that young families will not be able to achieve homeownership.

A government bailout of the housing market is both fiscally and morally irresponsible; it is an unfair subsidy being paid to the wealthy (bankers), the greedy (mortgage brokers, flippers, and yes some homeowners), and the incautious (some homeowners), with little or no benefit to those paying the bill (taxpayers).

With the help of more bloggers, I think that this site could become an extremely important resource for sharing information about the real effects of a government bailout in the mortgage markets.

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