AP Headlines 18th Ethics Complaint Faced by Palin -- Fails To Mention Each Bogus Charge Was Defeated  

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Apparently the media simply cannot help itself. The media attacks on Sarah Palin continued today. The AP reported that Palin is facing another ethics charge- the 18th charge against her. But, for some odd reason the AP forgot to mention that Governor Palin has defeated every bogus ethics complaint filed against her.It's funny how that works, huh?

The irony is that with each continued attack the media complex is building Palin into the Conservative hero they have worked so hard to tear down. With every negative story, with each slanderous attack the left only serves to foster her burgeoning iconic status among those on the right looking for a fresh face and new voice on the political landscape.

US Deficit Tops $1,000,000,000,000 For First Time  

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What happens when voracious spending exceeds revenues taken in by the Treasury?! A BOOMING federal deficit that has now topped $1 trillion for the first time ever.

The national debt is the total of what we owe ($11.4 trillion) as a nation to investors, mainly China. The deficit is the annual amount that is being added to the national debt.
Interest payments alone on the national debt is over $450 billion a year. This is nothing more than a gigantic Ponzi Scheme Team Obama and the Dems are saddling us with.


The US has already spent more than a TRILLION dollars than it expects to receive this year in revenue, and we have almost three full months left to go. The Wall Street Journal wonders whether that will hinder Barack Obama in getting his big-government spending plans through Congress, and whether Congress has the will to address runaway deficits at all.

In spite of the booming deficit, government spending is on the rise to address the worst financial crisis since the Great Depression and an unemployment rate that has climbed to 9.5 percent. Remember, if government spending got us out of recessions, why would we ever have recessions? We’d just spend our way out of everything.

To my democratic friends, please tell me again about the promises of fiscal reform and stimulus. Perhaps this time you can use an illustration to help explain just how well the massive spending plans are working. Allow me to start by showing you my illustration as provided by the WSJ. It explains government spending and receipts between this year and last:

As HotAir notes: Obama will claim, of course, that he inherited this deficit from George Bush, but as I’ve pointed out a number of times, it’s simply not true. Bush did not get a chance to address the FY2009 budget, as the Democrats in Congress kept postponing budgeting for FY09 until Bush left office. Even more critically, Congress spends the money, and since January 2007, Congress has been controlled by the Democrats — including then-Senator Barack Obama. Bush did approve the TARP funding and the Fannie/Freddie bailout — with considerable pressure from Congressional Democrats to do so — but a look at the right-hand side of the above graphic shows that spending significantly increased from FY08 to FY09 even without the bailouts. Most of the increase came from the “Other” category: non-defense discretionary spending, and the rest from entitlement expansion.

Barack Obama’s domestic agenda promises to make all of these conditions even worse. He wants to create a massive expansion of Medicare’s purview, which will greatly increase the entitlement burden that already threatens to undermine the stability of America’s currency and credit. On top of that, Obama wants to impose an energy-rationing system that will make the recession even worse, lowering receipts from almost all categories except the “other” category as DC reaps the taxes it imposes on energy producers. And on top of that, Obama wants to force American companies to pay taxes on foreign profits — almost alone among Western nations — that will force multinationals to reorganize overseas to avoid the competitive disadvantage Obama’s policies impose.

Those receipts will keep declining, and the spending will continue to increase. We will look at the $1,000,000,000,000 barrier with nostalgia in a very short period of time.

Perspective: By historical standards, the 2009 deficit — at 13% or more of the country’s gross domestic product — would be the U.S.’s biggest since the end of World War II in 1945, when it reached 21.5%.

California's Budget: The Promise of a Failed Government  

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It was 1967 when Ronald Reagan said:

"The time has come for us to decide whether collectively we can afford everything and anything we think of simply because we think of it. The time has come to run a check to see if all the services government provides were in answer to demands or were just goodies dreamed up for our supposed betterment. The time has come to match outgo to income, instead of always doing it the other way around."

It's now 2009 and the time has come.
Californians are fed up with the ineptitude and wasteful spending of a state legislature dominated by a majority party that would rather defend cheaters, ignore rampant abuses and scams than to enact reasonable and common sense reforms to save money.

What’s become apparent from California’s failure to rein in spending and streamline programs is that business cannot and should not, continue as usual. The buck stopped 26 billion dollars ago. The process of growing government and its programs without any sensible cost controls is unsustainable. Republicans have been shouting that warning for a long time now.

The Democrat’s promise of a government that does everything for everyone is nothing but a worthless IOU – and an expensive, destructive one at that. Sacramento has become a place where the Democrats work for only two constituencies: those who desire public assistance, and unions. Democrats respond like puppets to the needs of the one and the demands of the other and legitimate taxpaying citizens have been ignored.

And who pays for all this? Reluctantly, the taxpayer. California has one of the highest personal income tax rates and the highest sales tax rate in the country. Corporate taxes are way above the national average. State government regularly extracts weighty sums from California taxpayers and for what? Do we have better educated children? Do we have roads, transportation and schools that are the envy of the country like we used to? No.

California languishes near the bottom of most national rankings. Democrats will say the problem is that we’re not investing enough money in those areas, but the evidence says otherwise. Forty years ago, the state spent $1240 for every resident in the state, in today’s inflation-adjusted dollars. Now, we spend more than double that amount – $3200 per person – and quality of life has plummeted.

When will Democrats understand that government must be accountable to the people who support it? Senate Republicans repeatedly offer common sense reforms that would put people back to work and ultimately generate the necessary revenue to support programs Democrats want.

Republicans want people who need services and assistance to get it. By refusing to eliminate fraud, waste and abuse in social programs, Democrats essentially limit the number of families that can receive help.

Currently only 22 percent of CalWORKS recipients meet federal minimum work requirements. Without a 50 percent work participation rate, California faces penalties that could cost upwards of $180 million. The cost of In-Home Support Services doubled in the past decade and costs about 5.4 billion annually. The program has virtually no oversight. It is forecast to grow by 8 percent a year through 2014. That’s irresponsible, and we simply cannot afford it in these economic times.

It’s time to make sensible reforms to ensure taxpayer dollars are spent efficiently, and eliminate fraud. California citizens demand and deserve that.

Uh-Oh: GAO Report says Electric Cars Won’t Reduce Carbon Emissions  

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As Democrats and the Global Warming Alarmists continue pushing to get more plug-in cars on the road, a report by the GAO now says the push for conversion to plug-in electric cars will do nothing to stop carbon emissions. In fact, the problem could be made worse as demand goes up at coal-fired electrical plants. Plus, the need for batteries may just have the US changing the dictators to which we’re chained, as IBD reports:

It’s a beautiful theory — highways full of electric cars emitting no greenhouse gases or pollutants after being plugged into an outlet in our garages overnight. The problem, according to a new Government Accountability Office report, is that the effort may only shift the problem somewhere else.

“If you are using coal-fired power plants, and half the country’s electricity comes from coal-powered plants, are you just trading one greenhouse gas emitter for another?” asks Mark Gaffigan, co-author of the GAO report. The report itself notes: “Reductions in CO2 emissions depend on generating electricity used to charge the vehicles from lower-emission sources of energy.”

The GAO report says a plug-in compact car, if recharged at an outlet drawing its power from coal, provides a carbon dioxide savings of only 4% to 5%. If the feeling of saving the environment from driving an electric car causes people to drive more, that small amount of savings vanishes entirely.

This misses another point as well, one HotAir.com mentioned during the campaign. Obama wants the US to decrease its electrical demand over the next several years as a means of conservation as we switch away from coal and other fossil fuels as a source for power. Transferring cars from gasoline to electricity would vastly increase demand for power at the outlet, which would conflict with the decrease Obama wants to mandate. The result would be prices skyrocketing even higher, and people unable to use their vehicles from a lack of ability to pay for recharging them.

Of course, we have a source for electricity in abundance: nuclear power. IBD suggests that a program to rapidly expand our nuclear-power generation could fill the gap while generating zero carbon emissions. The Obama administration and the Democrats don’t want that, though. They shut down the Yucca Mountain nuclear storage facility, which would have recycled used fuel rods into material for more nuclear power, giving us an almost-completely renewing resource for decades into the future.

The GAO also points out that electric cars would have the US trading one set of dictators for another in order to power our cars. The batteries for electric vehicles are lithium-ion, and for the experimental production levels in the US at this moment, we have enough lithium resources to keep pace. However, once we start building electric cars in mass numbers, we will quickly run through our proven stores of lithium. We would most likely have to do business with Hugo Chavez lackey Evo Morales of Bolivia, where half of the world’s proven stores of lithium reside. Even if we didn’t buy directly from the leftist leader, Morales has the ability to set the global price — just as Saudi Arabia and OPEC do with oil.

Plug-in electrics just trade one carbon source for another, one dictator for another, and deliver a lower-standard vehicle. It’s about as lose-lose as it gets, at least without nuclear power to fuel it.

[Video] Sarah Palin Resigns as Alaska's Governor  

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Sarah Palin, the former Republican vice-presidential candidate who electrified the GOP campaign last year, will resign as Alaska's governor later this month.

She built strong support among conservative
Republicans as John McCain's running mate last year, and now says she will step down in three weeks because she can contribute more away from politics.

As you can imagine there is a great deal of speculation as to the reasons behind her decision, but in the clip below you can hear her in her own words. The crux of her logic seems to be that she’s quitting because it’s in Alaska’s best interest, not her own. If it turns out this was nothing more than a way of clearing her schedule to start early on running for president, her primary opponents will never let her hear the end of it.



Update via HotAir: Real Clear Politics has video of Mitchell’s report, including the detail that Palin’s allegedly told her top backers to go ahead and commit to other candidates for 2012. Bill Kristol thinks resigning now could actually be a bold gambit to free herself up for an intense presidential campaign, but I think she’s following more of a Nixonian strategy here. I.e. it could be she’s burned out on politics and dispirited by all the garbage she’s put up with and wants to get away at an opportune moment.

Then again, perhaps she's simply a mother of five who has decided instead of cranking through the political wheelhouse for another term, she wants to take the time to be with her family and her youngest son Trig who suffers from Down Syndrome.

One thing is for sure, her announcement leaves a great deal of questions and speculation.

Pelosi-Reid Congress Increase Travel Costs By 50% During Recession  

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The Pelosi-Reid Congress is not only spending more of your money and giving themselves raises and bonuses they are also spending more on exotic excursions than ever before. The Wall Street Journal reported:

Spending by lawmakers on taxpayer-financed trips abroad has risen sharply in recent years, a Wall Street Journal analysis of travel records shows, involving everything from war-zone visits to trips to exotic spots such as the Galápagos Islands.

The spending on overseas travel is up almost tenfold since 1995, and has nearly tripled since 2001, according to the Journal analysis of 60,000 travel records. Hundreds of lawmakers traveled overseas in 2008 at a cost of about $13 million. That's a 50% jump since Democrats took control of Congress two years ago.

The cost of so-called congressional delegations, known among lawmakers as "codels," has risen nearly 70% since 2005, when an influence-peddling scandal led to a ban on travel funded by lobbyists, according to the data.
Of course, this would only be shocking news if the reverse was true.

Exit Thought:
Aren't these the same hypocrites who scolded auto execs for taking private jets to DC?!

[Video] Rep. Tom McCLintock (R-CA) Deconstructs Cap & Trade  

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The following is a speech given on the House floor last Friday by California Rep. Tom McClintock, after the passage of the Waxman-Markey Cap-and-Trade bill. The speech is insightful, well constructed, and makes a comparison to the history of the Great Depression many of us have not heard before.

McClintock first discusses California's climate change legislation of 2007 and how it drastically deepened the state's financial woes, and then compares cap-and-trade to the disastrous Smoot-Hawley Tariff that sent the country into the Great Depression. It also doesn't hurt that he casually rips apart the claims of global warming alarmists used as a reason to support the bill.




You can see transcripts of his other speeches here.

Meltdown 101: California's budgetary troubles  

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California began its new fiscal year at midnight, and celebrated by taking billions in budget solutions off the table.

So how exactly did California get into this mess, and what are state lawmakers and Gov. Arnold Schwarzenegger doing to try to get out of it? The
Associated Press gets most of the questions and answers right:

Q: How big is the state's budgetary mess?
A: California's $24.3 billion deficit is roughly a quarter of the general fund, which is the state's main bank account for paying its daily expenses. For perspective, lawmakers could eliminate all funding for state prisons and the higher education system and still not save nearly enough money to address the shortfall.


The budget gap is the biggest of any state.


Q: How did the state get into this mess?
A:
California's problem is partly of its own making. (pay close attention to the first part of the answer)

Lawmakers and voters have agreed to higher levels of spending over the years without identifying a dedicated funding source. Over time, that means the state's general fund has had more obligations than it can afford to pay.

Because of caps on local property taxes adopted three decades ago, the state budget has come to rely heavily on revenue from capital gains and personal income taxes. Both have plunged over the past two years.

The state has its highest jobless rate (11.5 percent) in modern times, and personal income has declined statewide for the first time since the Great Depression. As a result, personal income tax revenue coming to the state plunged 34 percent for the first five months of the year.

During an unusual February session, Schwarzenegger and lawmakers thought they had solved the budget deficit through the middle of 2010. Since then, rapidly declining tax revenue put that budget package out of balance shortly after Schwarzenegger signed it, leading to the current deficit.

Q: When the federal government can't balance its budget, it just operates with a deficit. Can't California do the same thing?
A: No. Under its constitution, California must balance its budget every year. The federal government also can print money, something states cannot do. The main options available to states in lean economic times are spending cuts, tax hikes and borrowing money.


Q: What happens if California can't balance its budget?
A: The state controller will begin issuing IOUs to college students who are expecting grants, welfare recipients, and private companies that contract with the state to provide a wide array of services. Counties that administer social services also would not get paid, nor would taxpayers who are still expecting refunds.

The IOUs are intended as a cash-saving move until lawmakers pass a balanced budget.
In normal years, California can take out short-term loans so it has enough cash to pay its bills until spring, when the bulk of its tax revenue starts flowing. This year, it expects to need $7 billion to $9 billion in such loans, but the state treasurer's office says it will not even try to sell those bonds unless lawmakers balance the budget.

Lenders are unlikely to go along with such loans if California has a $24 billion deficit and no credible plan to close the shortfall, because they will be worried that the state will not be able to meet its financial obligations. That has led to the immediate cash crisis.

Q: Are there any other ways Californians will be affected?
A: Lack of a balanced budget is likely to mean higher lending costs to pay back all sorts of bonds that already have been approved, which lead to difficult budget decisions in the future about more spending cuts or tax increases. For example, a credit rating downgrade on $53.3 billion of unsold infrastructure bonds would increase long-term borrowing costs by $7.5 billion.
Schwarzenegger also has ordered 235,000 state workers to take three days off a month without pay if there is no balanced budget by Wednesday, a move that would reduce available staff at state offices. The three furlough days will reduce the workers' pay by 14 percent.

As of Tuesday afternoon, Democrats and Republicans remained at an impasse. Democrats want to moderate Schwarzenegger's cuts to welfare and health care programs for the poor, but Republicans refuse to go along with tax increases to make up the difference.

Q: Is there anything California can do to avoid this problem in the future?
The AP's answer is that California has had problems with balancing its budget for many years, in part because of its dependence on personal income tax and capital gains taxes, which rely on a rising stock market.

As we have pointed out time and time and time again, California does not have a revenue problem it has a spending problem.

Remember: If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.

CA Speaker of the Assembly Equates Free Speech to Terrorism  

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California’s Speaker of the Assembly, Karen Bass is at it again.

The same Speaker who issued pay hikes in the midst of a crumbling economy...
The same Speaker who said you voted against $16 BILLION in tax hikes because
you didn't know any better...

Yes that leader of the Assembly is now showing the brilliance of her leadership by equating your free right to speech to terrorism.
In an interview with the Los Angeles Times, Bass responded to a question about conservative talk radio by calling show hosts terrorists, and openly wondering why we allow people to call politicians and give their opinions (via The Corner):

How do you think conservative talk radio has affected the Legislature’s work?

The Republicans were essentially threatened and terrorized against voting for revenue. Now [some] are facing recalls. They operate under a terrorist threat: “You vote for revenue and your career is over.” I don’t know why we allow that kind of terrorism to exist. I guess it’s about free speech, but it’s extremely unfair.Funny, how dominant political parties tend to tar their marginalized opponents as "
traitors" and "terrorists." Actually, it's not funny at all.

As Chris Reed notes, Bass would prefer a state full of sheep who just dutifully accept tax hikes and union payoffs. Earth to Karen: This is a democracy. If you want an obedient public, move to Pyongyang.

Usually, politicians are smart enough to at least pay lip service to getting feedback from their constituents. Instead, Bass calls them “terrorists” for … what? Calling their representatives and telling them not to raise taxes even higher, in the state with the sixth-highest per capita tax burden in the nation? Expressing their opinions? Telling politicians they won’t get their support if they vote for a tax hike? That’s democracy, not terrorism.

The First Amendment guarantees the right to petition the government for redress of grievances, even apart from the “free speech” issues Bass casually discards. Elected politicians are accountable to the people who elect them in a free society. Politicians do not acquire lordly status when they go to the Assembly, or anywhere else.

Exit Thought: The irony does not escape us that from Bass' perspective, when Republican members listen to their constituents it's terrorism, but when Democrats listen to their union budget bullying buddies, it's free speech.

Then again if I spent my Sunday evenings listen to
eloquent speeches challenging my "budget priorities", I might get grumpy too.
Hat tip: Hotair.com

[Video] Assemblywoman Strickland on Priorities and CA's Budget  

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Sunday night Assembly Democrats passed a $23.4 billion package of cuts, tax and fee increases, and accounting tricks designed to close a gaping hole in the budget for the fiscal year that starts Wednesday. On Monday, the California Senate followed suit acting upon the same package of legislative measures.

While the Democratic majority vote solution is comprised of some cuts in state spending, the measures also raises taxes and fees to the tune of $2 BILLION.
The majority plan hikes taxes on on cigarettes; creates a new tax on oil production and raises or imposes new fees on property insurance policies, vehicle registration and drivers licenses.

During Sunday nights debate, Assemblywoman Audra Strickland (R-Thousand Oaks) presented this speech in which she challenged the Democrats' on their stance that their most important constituents are the poor, sick and aged.

video

Governor Arnold Schwarzenegger made it clear this morning he won’t sign the package of taxes and cuts approved by Assembly Democrats Sunday night as a way of balancing the state budget.

The Triumvirate of Taxation  

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Powerhouse California, a nation-state of 33 million with a budget larger than most small countries, has again been brought to its knees in a life-or-death struggle for financial survival. So how did it come to this?

On Friday the WSJ printed a brilliant Op-Ed entitled the Albany-Trenton-Sacramento Disease which plainly explains how California as well as New York and New Jersey have found themselves in their current financial debacles.

In short the article shows how the real-life experience of progressive governance in California, New Jersey and New York has resulted in devastating budget deficits as the bills for years of tax-and-spend governance come due. These states have been models of "progressive" policies that are supposed to create wealth: high tax rates on the rich, lots of government "investments," heavy unionization and a large government role in health care. Yet they have proven exactly the opposite.

A decade ago all three states were among America's most prosperous. Today, all three are drowning in a sea of red ink. Here's a few quick lessons to be learned as noted by the WSJ:

Government spending as economic stimulus. State-local spending per capita is $12,505 in New York (second highest after Alaska), $10,136 per person in California (fourth) and $9,574 in New Jersey (seventh).

Has all this public sector "investment" translated into jobs? Not quite. California had the nation's third highest jobless rate in May (11.5%). New Jersey and New York had below average unemployment rates in May compared to the national average of 9.4%, but one reason is that so many discouraged workers have left those states. From 1998-2007, which included two booms on Wall Street, New York and New Jersey ranked 36th and 31st in job creation. From 2000 to 2007, the New Jersey Business & Industry Association calculates that nine out of 10 new Garden State jobs were in the government.

Soak the rich. Mr. Obama plans to pay for his government investments through higher tax rates on the top 1% and 2% of taxpayers. Our troika of liberal states are champions at soaking the rich. The state-local income tax burden, according to the Tax Foundation, is the highest in the nation in New York, second highest in California and sixth in New Jersey. New York City boasts the highest business tax rate, 17.6%, according to a study by the American Legislative Exchange Council. Seven of the 10 highest property tax counties in America are located in New Jersey.

Instead of balanced budgets, these high taxes have produced record red ink. California's deficit for 2010 is projected at $33.9 billion, New Jersey's $7 billion and New York's $17.9 billion, despite multiple tax increases this decade. The Manhattan Institute finds that three-quarters of the loss in revenues this year in Albany is a result of reduced income tax payments by rich people even though the state keeps raising taxes on high earners.

As we've noted, study after study after study; example after example; time and again show the same thing: Increasing taxes hurts the economy and decreases revenues to the treasury.

Powerful unions. In all three states where organized labor is king, the middle class is getting creamed. The unionized share of the workforce is 20% in California, 19% in New Jersey and 27% in New York compared to 13% across the country. All three are non-right-to-work states, have super-minimum wage requirements and provide among the nation's most generous public-employee pensions.

Workers in these paradises are indeed uniting -- by leaving. New York ranks first, California second and New Jersey third in moving vans leaving the state. A study by the National Institute for Labor Relations Research found that over the past decade these and other high-union states (mostly in the Northeast) had one-third the job growth of states with low union penetration.

Sadly, these formerly rich states - the envy of the nation - are now known for job losses, booming deficits and debt, wage stagnation, out-migration and laughing-stock legislatures. The lesson is actually simple and surprisingly uncomplicated: Higher taxes never solve budget deficits.

New Heritage Video: Cap & Tax Won’t Save the Earth  

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For all the latest research and commentary from Heritage visit the Cap and Trade Rapid Response page.

Food for Thought...
Even the EPA admits Cap & Trade will hurt the economy...
Even Obama admits Cap & Trade will cause energy costs to skyrocket.
The initiative will cost American families approximately $700 to $1,400 dollars each year.
Congressman Dingell admitted that cap and trade is a tax-- a Great Big tax!
Cap & Trade will be one of the biggest spending items in the federal government’s history.

The Assault on Wealth & The Related Consequences.  

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That some should be rich shows that others may become rich, and hence, is just encouragement to industry and enterprise.” - Abraham Lincoln

As you dig into this post, we ask that you bare with us for a brief moment. To illustrate a broader point with extensive applications, we will use the example of a bill winding its way through the California Legislature.

In a few days the California Senate will hear AB 474 authored by Assemblyman Blumenfield (D-Woodland). In essence, the measure authorizes city governments to create a government-run loan program, to pay for water efficiency improvements. This legislation builds on a bill enacted last year which allowed local governments to provide upfront loans for energy efficiency improvements (ie. solar panels, dual pane windows ect).

Here's the problem. Government should not be in the lending business when the private sector can provide loans if a market for such loans exists. If a market existed -- if demand were evident -- the private sector would, and should, be involved. It isn’t.

However, there is an even larger issue at hand. Every expansion of government is, in essence, an impingement on freedom and in certain instances - the free market. Milton Friedman and his intellectual forebears in the Austrian School famously argued that free-market capitalism, in which people engage in largely ungoverned commercial activity that places them in active competition with each other, produces maximal prosperity for all levels of society in the aggregate.

What seems to be too often overlooked is that private wealth generation is indeed a necessary component of social-welfare programs run by the government. It not only produces jobs, it creates a pool of money to provide the capital stock that produces the goods and services that all may consume. And not only that. The government’s ability to provide social services is almost entirely dependent on the wealth produced by the private market, since the more there is, the more money will be available to the government for redistributive purposes.

Those who work to get rich are not doing so because they are seeking to provide enhanced tax receipts for the government, or to make it easier for government to do what elected officials and unelected bureaucrats think is best. They are, rather, fulfilling basic human desires—to excel, to succeed, to best the other person, to show the old man. Those desires provide the drive. The drive provides the wealth. The wealth provides the ancillary benefit for others. And the act of wealth creation itself creates opportunities for others. Americans pursue business and wealth for their own reasons, and we should be deeply hesitant to throw those out with the proverbial bathwater. The unintended consequences of such action could be catastrophic - especially as government grows in its desire to provide more "benefits" and "programs."


Legislation the likes of AB 474 are merely a small example of how across the nation politicians continue to pursue political policies that hamper the growth of wealth and prosperity by squeezing out the private sector and/or implementing punishing tax schemes which drive out business and costs jobs. Government can and should do better... but the people must demand it.

Exit Thought:
As Milton Friendman eloquently notes in this video clip, "So that the record of history is absolutely crystal clear: that there is no alternative way so far discovered of improving the lot of the ordinary people that can hold a candle to the productive activities that are unleashed by a free enterprise system."

[Video] CA Senator Roy Ashburn on Dems Budget Proposal  

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Facing a $24 billion deficit, on Wednesday Democrats put up votes for their budget proposals including a bill containing $11 billion in spending cuts. The measures required two-thirds majorities to pass fell short in both chambers on mostly party-line votes, with Republicans holding the line saying the reductions did not go far enough.

Clearly $11 billion in cuts does not match the $24 billion deficit, so Democrats also proposed $1.9 billion in tax increases on oil extraction, tobacco and car registrations, but those were not put up for a vote Wednesday.

The following video clip is from Senator Roy Ashburn's (R-Bakersfield) Senate Floor speech during Wednesday's budget debate:


Senator Roy Ashburn from CA Senate GOP on Vimeo.



Balancing the budget and preserving state services can be achieved by doing precisely what the voters have asked us to do -- cut wasteful spending and stop uncontrolled government growth. California, more than any other state, is dependent on road transportation and increasing gas prices will do more to hurt families than cuts in government services.

As the family budget goes south, so goes our businesses, our economy and ultimately our state's fiscal solvency.


Remember: California doesn't have a revenue problem, it has a spending problem. If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.

California Budget: The Gas Tax Cometh  

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The Golden State still faces a $24 BILLION deficit and is now only 8 days away from simply running out of cash. Yet as if to prove they learned nothing from the voters rejection of $16 BILLION in tax hikes, Democrats are seeking:


$830 million in a new oil severance tax,
$1 billion in tobacco taxes, $76 million in fire fees,
$125 million in vehicle license fee increases for state park passes and
$80 million in corporate loopholes.

Let's take a few moments to examine what a new "oil severance tax" would cost California families. Keep in mind that Californians are already the highest taxed families in the nation and they already pay 35.3 cents in state taxes per gallon of gasoline.

Gasoline prices passed the $3 mark, becoming the highest in the continental United States.

While Californians are already feeling the pain at the pump, Democrats plan to place a 9.9% tax on oil translating into an addition 17 cents per gallon of gasoline.

At a time when we have over 2 million unemployed Californians and with foreclosure notices at 203 per day, our families need solutions not more ways on how to take their money.

For the last seven straight weeks gas prices have risen over 56%. It is the fastest rate increase ever. Taking more money away from families though higher taxes is not the solution, nor should it be the answer to every problem.

$1 Increase In A Barrel Of Oil = 2.4 Cent Increase In The Gallon Of Gasoline

The gasoline rise is like a tax we feel very painfully every time we go to a gas station,’ said Ed Leamer, director of the UCLA Anderson Forecast. For consumers struggling to regain their confidence, ‘it adds uncertainty. It will tend to retard the economic recovery and make it less powerful.’”

Instead of returning to a government limited in size and scope; instead of pursuing policies that stimulate economic growth and prosperity; instead of listening to the people of California who said NO MORE TAXES, NO MORE BORROWING, the democrats budget solution is simple: Raise Taxes.

The goal is to increase revenues by several billion to help bridge the state's projected $24 billion budget gap. Noreen Evans, chairwoman of the joint conference committee, said the goal is to pass some or all of the revenue-raising proposals. ‘The problem is that this economic crisis was caused by an enormous and rapid drop in revenues, so to ignore the need for new revenues is irresponsible,’ said Evans, D-Santa Rosa.”

Remember: It was just February when the Legislature passed $12 BILLION in new taxes. California doesn't have a revenue problem, it has a spending problem. If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.

Maine Lights the Way for Economic Reform  

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Across the nation states are drowning in a sea of red - even our once "golden state" of California still faces a $24 BILLION deficit.

Sadly, while facing deficits and rising unemployment many of those states continue to pursue failed tax and spend policies.

As previously noted, taxation has been under the microscope ever since Adam Smith first distilled the principles of good and bad taxation in the 18th century. Two hundred years of evidence later the science is clear: high taxes don't work. The reasons for this failure of higher taxation is simple: (1) Higher taxes destroy incentives to work. (2) Higher taxes destroy enterprise.

But at last it would seem there's a place in America where tax cutting to promote growth and attract jobs is back in fashion. Who would have thought it would be Maine? The WSJ reports:

This month the Democratic legislature and Governor John Baldacci broke with Obamanomics and enacted a sweeping tax reform that is almost, but not quite, a flat tax. The new law junks the state's graduated income tax structure with a top rate of 8.5% and replaces it with a simple 6.5% flat rate tax on almost everyone. Those with earnings above $250,000 will pay a surtax rate of 0.35%, for a 6.85% rate. Maine's tax rate will fall to 20th from seventh highest among the states. To offset the lower rates and a larger family deduction, the plan cuts the state budget by some $300 million to $5.8 billion, closes tax loopholes and expands the 5% state sales tax to services that have been exempt, such as ski lift tickets.

This is a big income tax cut, especially given that so many other states in the Northeast and East -- Maryland, Massachusetts, New Jersey and New York -- have been increasing rates.

The current economy has brought many states to a crossroads. Lawmakers can push spending – and taxes – thereby burying families, businesses, and the economy in a painful European-style economic hole, or they can make the difficult but necessary decisions to return the size of government to its 1980s and 1990s level.

Instead of asking how they can best tax Americans, lawmakers should take responsibility for the escalating spending trends that have put the nation in this difficult position.
It's time for a return to a low tax policy that creates jobs and stimulates economies.

A Study in Contrasts: Obama on Iran versus Reagan On Poland  

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A study in pure contrasts Via GatewayPundit, Sean Hannity compared and contrasted Barack Obama's weak response to the Iranian democracy protests to Ronald Reagan's support of Polish freedom fighters back in 1981.


"You can protect your liberties in this world only by protecting the other man's freedom. You can be free only if I am free."
- Clarence Darrow


Reagan understood America. He understood freedom, liberty and human rights.
Obama is no Reagan.

UPDATE: Do you need more proof?
The Obama White House just invited representatives from the killer Iranian regime to July 4th celebrations.

First Gallup, Now Rasmussen: Obama Approval Rating Lowest of Presidency  

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Take your pick - both from our Polls of Hope & Change. If you prefer Gallup, they have him at a 58% approval rating, which is their lowest reading since Obama took office. Rasmussen does his Approval Index, which consists of taking the number of folks who strongly approve of the way the president is doing, and subtracting the number of people who strongly disapprove. Obama has never had a negative Approval Index rating . . . until today.


The Rasmussen Reports daily Presidential Tracking Poll for Sunday shows that 32% of the nation's voters now Strongly Approve of the way that Barack Obama is performing his role as President. Thirty-four percent (34%) Strongly Disapprove giving Obama a Presidential Approval Index rating of -2. That’s the President’s lowest rating to date and the first time the Presidential Approval Index has fallen below zero for Obama.

How Obama thinks that taking over GM and Chrysler, nationalizing health care, and imposing a huge new energy tax will improve these numbers is beyond me. Then again, that conundrum is for his supporters to figure out, isn't it.

[Video] "In 2010, Freedom is at Stake"  

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Via The Patriot Room, could the GOP be onto something with their new ad?

The new video ad, entitled The Comeback Starts in 2010, lays some nice groundwork and sets up the issues for next year. They split screen Carter and Obama and sprinkle GM, AIG, and the bailouts on top and ask if we want more of that. They they have Reagan speaking, as if from heaven itself, with his words and the light falling on the faces of hopeful Americans, urging us to muster our strength to fight to defend our freedom. Wrap up with a crowd cheering USA!, USA!, USA!, and you can't help but think the GOP may be onto something. Because Americans have been cheering USA! at rallies far longer than they have been chanting O-ba-ma.



Remember: The natural state of man is freedom. Every expansion of government - whether it be authored by Democrats or Republicans, is an impingement on the freedom of the individual. The responsible person takes their freedom very seriously, they guard it from all oppressors, they extend their vigilance to the rest of their society as a loss of liberty to any member of a society can, and often does revert back unto them.

Now is the time to make your choice. You can choose to be a responsible person with your freedom, give the time and energy that preserving that freedom demands, or you can choose to not, be irresponsible with your freedom, and risk losing it.

“Guard with jealous attention the public liberty. Suspect everyone who approaches that jewel.”
- Patrick Henry

Iran: Above Obama's Pay Grade?  

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President Obama has been presented with a golden opportunity to do the right thing. Recently, presidential elections were held in Iran. The United States had supported Mir Hossein Mousavi to unseat Mahmoud Ahmadinejad. When the final results of the election were tallied, Ahmadinejad supposedly won. Mousavi cried "foul" and insisted that Ahmadinejad and his followers had stolen the election.

Currently, massive protests have been occurring in Tehran, claiming that the Iranian election process was undermined by Ahmadinejad. Some of these protests have turned violent, with seven people killed just this past Monday, by anti-riot police or Mahmoud Ahmadinejad supporters. More protests are planned, and they could take a deadly turn, too. Aside from organizing anti-regime demonstrations, Mousavi and his followers want a new presidential election to be held. And Mousavi and his supporters are looking for international support.




Support from the United States. Support from President Barack Obama.

The phone is indeed ringing at 3 a.m., and President Barack Obama is nowhere to be found.

Meanwhile, people are being brutalized and murdered by the regime in Tehran.

Obama has stated "It is up to Iranians to make decisions about who Iran's leaders will be. We respect Iranian sovereignty and want to avoid the United States being the issue inside of Iran." President Obama recently elaborated on his position, saying
he doesn't want to "meddle" in Iranian affairs.

Does not the President of the United States have an obligation to protect the United States and our best interests? Yes. Obama took an oath of office that stated such. But in this case, Obama is silent. The President of the United States SHOULD be speaking up - in support of the protesters and Mousavi. After all, the only way to have any chance of addressing the nuclear threat that Iran presents is with a regime change. A regime change that could come from within Iran itself.

The Obama Administration had supported Mousavi prior to the elections - now they have left him out to dry. Obama has a great opportunity - to support a regime change in Iran without any military intervention whatsoever. All he has to do is use his self proclaimed gift of "oratory".


Obama has no problem when it comes to "meddling" in the auto industry. The banking industry. The health care industry. Yet, when it comes to an issue that could greatly help the United States AND the people of Iran, Obama doesn't want to "meddle."
And the phone is still ringing...


UPDATE: Rep. Pence On Iran: Reagan Didn't Tell Gorbachev “That Wall is None of Our Business”

Obamacare: The Promise of Failure  

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Michael Ramirez of IBD Editorials gives Barack Obama’s health-care reform an examination — and discovers that Dr. Obama has the directions backwards on transplantation. The idea is to transplant what works to replace what doesn’t, but Dr. Obama intends to take the worst of government-run health care and drop it into a living, functioning American health-care system:

There can be little doubt that Barack Obama's promise to fix the U.S. health care system was an important ingredient in his recent triumph over John McCain. However, while a majority of voters obviously favor some sort of reform, it isn't at all clear that they understand what the President and his health advisors have planned for them. It therefore becomes, in part, our job to keep informed and inform others.

As NRO points out, the basis in public opinion for a politically successful opposition to the Democrats’ health-care plans is as follows:

Any liberal plan will either raise most people’s taxes or raise the deficit, possibly both. Any liberal plan will either impose rationing right away or set the stage for rationing in a few years. And almost any liberal plan will disrupt the existing health-care arrangements of millions of Americans and replace them with something that could well be worse. It could, for example, throw many millions of Americans out of their private insurance and into a public plan, where they might find that their doctors don’t want to see them anymore. (Some Democrats promise “Medicare for all,” but “Medicaid for all” is at least as likely.)

Via HotAir.com:
What works in the US is free-market economics. We have a model for successful, plentiful, and inexpensive health care — in fact, a few of them. Lasik and cosmetic surgery specialties do not get insurance coverage or Medicare, and so patients must pay directly for the services. That not only forces consumers to choose carefully when selecting a practitioner, it also forces providers to become cost efficient. The demand and the lower overhead in billings drives doctors into the specialties, so there is no artificial shortage of providers, as a look at any town’s billboards or Yellow Pages will make plain.

Instead of trying to reinvent the broken wheel of statism, we should focus on reforming the rest of the health-care system so that it works more like Lasik and cosmetic surgery, whose markets function properly.

[VIDEO] California's Budget Bully & Higher Taxes  

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California's revenues are plunging amid recession, rising unemployment and the prolonged housing crisis, and this time around the state is unable to borrow its way out of its immediate financial trouble by issuing debt at low cost because of its $24 BILLION budget gap.

Our Golden State will run out of cash within weeks if it does not balance its books, leaving it little option but to postpone a variety of payments, according to State Controller John Chiang, who estimated last week that California was "less than 50 days away from a meltdown of state government."


As we've
said previously, lawmakers are finally coming face to face with the financial reckoning that they have put off time and again through band-aid budgets and budgetary shell games.

And as Democratic Legislative Leadership begins to cobble together a budget held together with HIGHER TAXES, it is becoming increasinlgly clear why they are not willing to cut the excessive spending:


video

As noted by the Sacramento Citizen Blog, California unions want the legislators to sign statements of support for up to $44 BILLION in new or higher taxes on the wealthy, oil companies, tobacco and other industries, products and people.

Remember: California doesn't have a revenue problem, it has a spending problem. If, since 1990, state spending increases had been held to the inflation rate plus population growth, the state would have a $15 billion surplus instead of a $42 billion budget deficit.

Gallup: “Conservatives” Are Single-Largest Ideological Group  

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From our "Polls of Hope & Change," we bring you the latest numbers from Gallup.

Thus far in 2009, "conservatives" comprise the largest ideological group in the United States, with nearly twice as many Americans saying they are conservative as those claiming to be liberal. 40% of Americans interviewed in national Gallup Poll surveys describe their political views as conservative, 35% as moderate, and 21% as liberal.

This represents a slight increase for conservatism in the U.S. since 2008, returning it to a level last seen in 2004. The 21% calling themselves liberal is in line with findings throughout this decade, but is up from the 1990s.


These annual figures are based on multiple national Gallup surveys conducted each year, in some cases encompassing more than 40,000 interviews. The 2009 data are based on 10 separate surveys conducted from January through May. Thus, the margins of error around each year's figures are quite small, and changes of only two percentage points are statistically significant.

To measure political ideology, Gallup asks Americans to say whether their political views are very conservative, conservative, moderate, liberal, or very liberal. As has been the case each year since 1992, very few Americans define themselves at the extremes of the political spectrum. However, "Conservatives" are still the single largest ideological group.
While we know that historically women are more likely than men to be Democratic in their political orientation, it's interesting to note that according to Gallup, conservatism outweighs liberalism among both genders.

Perhaps the sleeping giant is awakening from its slumber.

Exit Question: What are your thoughts on why conservatism is being scorned when in reality conservatism is more favorable than liberalism.

Criticism Grows Regarding Obama's Silence on Iran  

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Ahmadinejad is speaking out after re-election, making new threats against the West as he plans his victory rally. Meanwhile Obama's silence on the Iranian election is drawing greater criticism.

Mitt Romney today
said that the election in Iran was a "fraud" and called on Barack Obama to denounce the Iranian regime. Joe Lieberman did, too, saying: "I would hope that President Obama and members of both parties in Congress will speak out, loudly and clearly, about what is happening in Iran right now, and unambiguously express their solidarity with the brave Iranians who went to the polls in the hope of change and who are now looking to the outside world for strength and support."

Joe Biden, meanwhile, said that it was too soon to know the actual results of the Iranian election, but added that there was "real doubt" about the legitimacy of balloting and said: "There's an awful lot of questions about how this election was run."

That's an improvement over the Robert Gibbs and Hillary Clinton statements, but not nearly as forceful as a statement -- or even a short speech -- from Obama would be.

UPDATE: Regime thugs are beating reporters on the streets of Tehran in an attempt to force reporters out of the country. However, Allahpundit posts a video clip of a CNN producer in Iran, who says:

A number of students came up to me today and said that they want to appeal to President Obama. They said, "Is he going to accept this result? Because if he does we are doomed."

Watch the video and read Allahpundit's take here.

California Senate Golden Rule: Do Unto Others  

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The following article is courtesy of our friends at The Sacramento Citizen who made the report yesterday afternoon:

...The Sacramento Citizen has now learned that in an effort to show that State Government is suffering alongside the average Joe, Senators will move to issue a 5% pay cut to [Capitol] staff as well as potentially limit health benefits.

California remains in the throws of a $24.3 billion hole for the fiscal year that begins July 1. The Legislature has 2,136 employees and a total, annualized budget of about $132.7 million. A five percent pay cut applied to all Capitol staff would result in approximately $5 million savings, 1/48000th of the current deficit.

It is unclear if the Assembly will take similar actions. If pursued by the Senate alone, the budget savings would have an even smaller impact.

Perhaps most intriguing is the ironic twist that comes when one looks at what budgetary items are not on the proposed chopping block for the Nation's highest paid state legislators.

Not on the cut list:
· Senator's full pay of $116,208 per year...
· Senator's
tax free per diem of $35,000 annually...
· Senator's cars provided at taxpayer expense...

· Senator's gas cards provided at taxpayer expense...

· Flights to and from district offices provided at taxpayer expense...

· Number of legislative proposals allowed to be introduced

(According to the non-partisan Legislative Analysts Office in 2001-02 the cost of producing a bill was $17,890. The LAO now says they are no longer comfortable with that number but has not yet updated it)...

No area of government, including the state work force should be immune from budgetary cuts. Unfortunately the latest effort would appear to be little more than another example of the sham reforms and false choices being presented by lawmakers to close the State's $24.3 BILLION budget deficit.


According
to State Controller John Chiang, without immediate solutions from the governor and legislature, California is less than 50 days away from a meltdown of state government. Lawmakers must be constantly reviewing government operations to make sure they are as efficient as possible, and that includes taking a long hard look at themselves and their standing in light of the current budget deficit.

The underlying point is one that everyone can agree upon. Our Legislature continues to show that they are unwilling to make the same sacrifices that either (a) they force upon others and (b) that private industry must make to survive. If you agree and believe that those who represent you should make sacrifices just like everyone else, you can find and contact your State Senator HERE.