8.06.2010

Rep. Tom McClintock on the Constiutionality of the Prop 8 Ruling and CA's Budget Process (Video)

On Thursday, Congressman Tom McClintock (R-Rocklin), appeared on Sacramento's News10 to discuss the recent Proposition 8 ruling, California's state budget process, and the Big 5 process. All of which, as he says, stand in opposition to what is authorized by the Constitution.

In the following interview, McClintock notes that the authors of the Bill of Rights would be shocked by Judge Vaughn Walker's opinion that traditional marriage is an affront to the bill:



"Fortunately, the American Founders realize the enormous damage that could be done by feeble reasoning on the bench. That's why they built in a series of checks and balances in the appellate process and it's now being called into play."
- Tom McClintock

Dream Crusher: State Inspectors Shut Down 7 Year Old's Lemonade Stand

There’s no business that’s too small for government to torture.”
- John Stossel

As we previously noted, the average American is covered by a vast web of rules and regulations, endless policies and programs, all emanating from a central government, mostly the work of agencies and bureaucracies that for all intents and purposes operate outside the consent of the governed.

One of the direct results of this rising leviathan is most often realized by small-business owners and entrepreneurs who gripe about licensing requirements or heavy-handed regulations that drive them into the red. So when you hear that officials in Multnomah County have shut down an enterprise for operating without a license, you might just sigh and say, there they go again.

Except this entrepreneur was a 7-year-old named Julie Murphy. Her business was a lemonade stand at the monthly art fair in Northeast Portland. The government regulation she violated? Failing to get a $120 temporary restaurant license.

According to the report, turns out that kids' lemonade stands -- those constants of summertime -- are supposed to get a permit in Oregon, particularly at big events that happen to be patrolled regularly by county health inspectors.

In this instance the inspectors asked for the $120 permit and then threatened little Julie and her mom with a $500 fine.

Uttering a line that echoes the growing sentiment of all Americans, Julie's mom said, “It’s gotten to the point where they need to be in all of our decisions. They don’t trust us to make good choices on our own.”

As the economy continues to struggle, bureaucrats and government agencies will continue to desperately seek out every possible revenue source available. Sadly that means we are bound to see more stories like this which only further illustrate a government that has grown too large and too detached from those whom it is meant to serve.

We leave you with the following James Madison quote:

“I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments of those in power than by violent and sudden usurpations."

UPDATE: Apparently this story is far from over. The crew over at Reason's Hit and Run blog note that the "Lemonade Revolt" has now begun.

Democrat Pat Caddell: “We Are Headed For A Tidal Wave In November” (Video)

Some video clips need no additional commentary... and this falls within that category.

Watch as Democrat and one-time Obama supporter Pat Caddell discusses the coming November tidal wave, the growing fraction within the democratic party, healthcare and more...

Hat tip: Flopping Aces

8.05.2010

Failure of USPS Illustrates the Power of Free Enterprise

We were pondering the recent news that the U.S. Postal Service reported a $3.5 billion loss in its most recent quarter. According to the postal service, the quarterly loss was the fourteenth in the last sixteen quarters.

All of which further illustrates the point that there isn't one thing (outside of war) that government does better than the private sector....



Which brings us to the latest article by John Stossel in which he appropriately notes that free enterprise does everything better. Why? Because if private companies don't do things efficiently, they lose money and die. Unlike government, they cannot compel payment through the power to tax. In fact, Stossel continues, even when a private company operates a public facility under contract to government, it must perform. If it doesn't, it will be "fired"—its contract won't be renewed. Government is never fired.

View this article.

Report From Bizarro World: "Right Now, Taxes are at Unsustainably Low Levels."

"Right now, taxes are at unsustainably low levels."

That's the message from the Washington Post's Ezra Klein, who adds:
Reform will have to get them somewhat higher. But if we end up asking Congress to choose between the current tax code with the Bush tax cuts and a reformed tax code without them, the latter will look like a huge tax hike. That'll make reform more difficult to pass, or it'll force us to pass a reform that doesn't raise any more money than the tax code with the Bush tax cuts. As you can see from the Center for Budget and Policy Priority's debt graph above, that's not a good situation.
More here.

What passes for wisdom in DC is simply beyond us. As noted by the crew at Reason, let's go with this thought experiment: Let's re-title the piece "Right now, government expenditures are at unsustainably high levels."

Which they are. Since the 1950s, federal revenue as a percentage of GDP has clustered around 18 percent, despite endless attempts to squeeze more money out of the economy and into government coffers. The great variable in the federal balance sheet has been spending, not revenue. Debt comes from spending more than you have, not from having too little. Does anyone really believe that the feds (or the states, who have similarly overspent for years) have been frugal or wise or cheap in their spending decisions since the Truman administration?

Another thought experiment: Pretend you live in a world where the government raises taxes by 100 percent and that hike has no effect on economic activity (yes, a dream world inhabited by all too many people). So the government gets oodles and oodles more money. How many years do you think it would be before the government was once again broke? One or two? Three or four? Five?

Spending is the problem, not "revenue" my friends. And cutting spending is the solution, not increasing taxes.

8.04.2010

Prop 8 and the Question of Where Ultimate Constitutional Authority Resides

A federal judge has overturned California's same-sex marriage ban Wednesday in a landmark case that could eventually land before the U.S. Supreme Court to decide if gays have a constitutional right to marry in America.

The AP notes that despite the favorable ruling for same-sex couples, gay marriage will not be allowed to resume. That's because the judge said he wants to decide whether his order should be suspended while the proponents pursue their appeal in the 9th U.S. Circuit Court of Appeals. The judge ordered both sides to submit written arguments by Aug. 6 on the issue.

And so the Prop 8 debate will continue.

Two years ago we wrote an article entitled Prop 8 and the Undermining of a Democracy. In that article we detailed how Proposition 8, while dealing with marriage, is also about the fundamental question of where ultimate constitutional authority rests. In light of today's ruling, we felt it was appropriate to revisit part of that post:


Let’s think big picture people. Yes Prop 8 is in part about marriage, but it is certainly also about the fundamental question of where ultimate constitutional authority rests. Our system of government has always been a system of winners and losers. Each election victory also means an election defeat -- yet by attempting to overturn that system we wrest control from the general populace and place power in the hands of a select few. And such action has severe consequences.

If the consolidation of power is allowed in such a way as to undermine the representative nature of our government, substituting the will of a few judges on the substance of the law for the will of the people or the representatives elected by the people -- then elections mean nothing, then laws are no longer being made by the representatives of the people, they are being forged by an oligarchy answering to no one except their own whims, their own will, their own judgment. That then is a threat to our system of constitutional self-government.

Alan Keyes rightly noted that 'if a handful of individuals responding to the clamorings of a small minority can substitute their judgment of right conduct for the judgment of the representatives of the people, can impose their dictates as laws, even upon those who are, according to the Constitution, the right fount and source of law, then our republic is dead, and our freedom is gone.'

In the case of the California state Supreme Court the will of four judges was imposed on the almost 34 million people who live in the state. Proposition 8 was more than just a marriage defense amendment, it was a direct and legitimate response to the litigiousness of America – and a movement to ensure our representative form of democracy.

It is not the business of the government of the United States or any of the several states to impose the will of a few on the many without the consent of the many. If the people of California want to define marriage as a union between only a man and a woman, that is their right and no group or organization has the right to force that issue through the court system.

To trod down that road, is to shed our freedoms along the way.

EXIT NOTE: For your convenience we have rounded up some of the early takes from various think tanks you might find worthy of note. You can find them here, here, here and here.

Washing away profits: Clorox Co. Loses Net Income to Taxes?

Ah the wonder of liberal economic policies, harming the poor, the middle class and washing away profits from business.

In what may prove to be a frightening foreshadowing of profit statements to come, Clorox Co. — maker of numerous household cleaning products — reports that it’s net income was nearly flat despite a one percent rise in revenue. The reason? Taxes.

Household products maker Clorox Co. said Tuesday that its fourth-quarter net income was nearly flat, even though its revenue rose 1 percent, because it paid higher taxes and had smaller margins than a year earlier.
The laundry giant said that it earned $171 million in the last three months and had revenue of $1.52 billion last quarter. Clorox also reports that it expects to earn enough to keep in line with estimates.

So, sales have not been hurt by this recession for Clorox Co., at least. That is a good thing. But that its tax burden went up so much as to flatten its net income is unconscionable.

Businesses are in business to make money not forever break even. Breaking even is no incentive to push for higher achievement and invites sloth and eventual disinterest. Taxes change the incentives for people to work hard, save, invest and be entrepreneurial, the bedrock of a prosperous society - a fact the current administration seems to not yet understand.

Without innovation and a return on the effort our economy will stagnate even further. As that happens tax receipts fall.

As noted by Cato, for those of us who care about prosperity more than politics, what really matters is that the economy is soon going to be hit with higher tax rates on productive behavior. It’s unclear whether that’s good for the President’s poll numbers, but it’s definitely bad for America.

8.03.2010

GALLUP: Obama Hits Record-Low 41 Percent Approval

The latest USAToday/Gallup poll shows President Obama’s job approval rating at 41 percent, a historic low. The down-tick is driven in large measure by decreased support for the president’s handling of the war in Iraq, and especially the war in Afghanistan:

Public support for President Obama’s Afghanistan war policy has plummeted amid a rising U.S. death toll and the unauthorized release of classified military documents, a USA TODAY/Gallup Poll shows.

Support for Obama’s management of the war fell to 36%, down from 48% in a February poll. Now, a record 43% also say it was a mistake to go to war there after the terrorist attacks in 2001.

The decline in support contributed to the lowest approval ratings of Obama’s presidency. Amid a lengthy recession, more Americans support his handling of the economy (39%) than the war.

Even Obama’s handling of the
war in Iraq received record-low approval, despite a drawdown of 90,000 troops and the planned, on-schedule end of U.S. combat operations there this month.

More
here.

Crushing California: CA Dems Budget Plan To Increase Vehicle License Fee & Income Taxes

Facing a $19 billion budget gap, California's Democratic lawmakers are expected to release a revised budget plan that increases Californian's vehicle license fee, income tax, and creates a new oil severance tax.

As noted yesterday, California's Democratic lawmakers are expected to release an updated budget proposal Tuesday for tackling the $19.1 billion deficit.

Many elements from the earlier "framework" will remain, including rolling back $2 billion in corporate tax benefits and creating a new oil severance tax.

According to reports, the new plan offered by Dems also comes complete with a new twist: an increase in the income tax and vehicle license fee lawmakers say would be offset by federal tax deductions for most residents. The sales tax would be lowered under the plan, which Bee colleague Susan Ferriss wrote about
here.

The Democrats' proposal may not include the kind of overhaul to the state's pension system that Schwarzenegger is demanding as a condition for his signature on any budget agreement.

That plan is expected to be introduced mid-afternoon, following meetings of the Assembly and Senate Democratic caucuses.

The plan doesn't signal a swift end to the 34-day budget impasse -- Republicans have said they are a no-go on some of the major components, including the oil tax.

Simply put: Every tax increase represents and increase in the size and scope of government and a corresponding decrease in freedom and individual responsibility. And as we've noted time and again, California lawmakers seem to have missed the memo. They have forgotten that taxes change the incentives for people to work hard, save, invest and be entrepreneurial, the bedrock of a prosperous society.

All in all, California is a prime example of why tax hikes fail.

8.02.2010

Gallup: GOP Leads Generic Ballot

From our "Polls of Hope and Change" files we bring you the latest numbers from Gallup. After a two-week surge by Democrats, Republicans have regained their lead on Gallup’s generic congressional ballot. According to Gallup, registered voters now favor the GOP by a five-point margin, 48 percent to 43 percent.

Gallup points out in its analysis that the five-point edge is “not statistically significant,” but it does represent a “return to the prevailing 2010 pattern, seen since mid-March, whereby Republicans were tied or held a slight advantage over Democrats in most Gallup Daily tracking weekly averages.”

Republicans’ resurgence this past week could simply represent a return to the prior norm, but may also have been spurred by the Afghanistan war documents leak, the federal judge’s ruling that blocked the implementation of certain aspects of the Arizona immigration law, and perhaps ethics investigations into two powerful senior Democratic members of the House, Charlie Rangel and Maxine Waters.

If Republicans can keep up these numbers among registered voters, Gallup predicts that there could be “major seat gains” for the party in November. President Obama’s approval rating, it adds, remains flat at 45 percent.

True to Form: CA Dems Propose Raising Income Taxes to Close $19 Billion Budget Gap

It was only early 2009 that legislators, who had mismanaged state finances into a $42 billion deficit, voted to impose California's highest-ever tax increase, ostensibly to balance the budget. A few months later, last May, they asked voters to extend those two-year historic tax increases for two additional years. Voters, of course, soundly rejected the idea.

The message sent by the voters was clear: Enough is enough. It's time for Government - Democrats and Republicans alike - to live within their means.
Tax hikes never solve budget deficits, now is time to reform the system and make it work for the people - not against them.

Apparently those on the left either didn't get the memo, or just flat out ignored it.


Now true to form, California's Democratic leaders are ready to do what they do best: increase your taxes. Bloomberg reports that Democratic leadership plans to unveil a budget proposal to erase a $19.1 billion deficit as early as next week that will likely include a hike in the personal income-tax rate.

As we've said time and again, taxes are a poor substitute for doing the heavy lifting of re-thinking, reorganizing, and re-prioritizing government. But the Democrats have made it clear that is work they refuse to do.

Addressing the Golden State's debt requires "bold leadership." California's families can't simply choose to stop budgeting and spend without consequences. Sacramento shouldn't be able to either.


Remember: By the way, the next time someone complains about budget cuts or says we need higher taxes, show them these charts.

Cavuto: Now Deficits Matter! (Video)

House Democratic leaders are launching an eleventh-hour bid to get on offense on jobs and the economy before they face voters in the November midterms. Their plan: When it comes to the economy, spending, and deficit, find religion... fast.

After running reckless and wild with their spending, bringing the United States closer to the economic crisis being felt across Europe, it would seem some on the left have suddenly "found religion" on deficit spending... Cavuto addresses the point:


Newer Posts Older Posts