Cynical Synapse

Tue, 18 Oct 2011

Smoke and Mirrors Bus Tour: Tax Cuts That Aren’t

Filed under: Congress, Deceit, Economy, Employment, Government, Language, Politics, President, Stimulus, Taxes, Unemployment — cynicalsynapse @ 8:24 pm

Pres. Obama and his stealth bus

Pres. Obama has been traveling around North Carolina and Virginia in his Stealth Bus, the all-black $1.1 million Canadian-American customized luxery coach, the Death Star of the roads. Republicans claim the trip is a taxpayer-funded campaign tour, a charge the White House denies. Let’s face it, anything a politician—of any party or persuasion—does or says in public has a campaign element to it. So, all you Republicans who felt Pres. Bush got chastised by the media for everything he did, get over it, stop pointing at Obama, sit down, and stop saying “but, but, but…”

Features in the American Jobs Act, uncannily similar to 2009’s $720 billion Stimulus, seems like a half-hearted attempt, at only $448 billion. More troubling is the fact it’s not really a new idea and, if Big Stimulus didn’t work, why would anyone think Baby Stimulus will? Maybe that’s why Senate Democrats didn’t take up Obama’s bill, but saw their own version defeated last week. Even so, it gives the President political mileage: “100 percent of Republicans in the Senate voted against it [the Jobs bill]. That doesn’t make any sense, does it?”

Pres. Obama in Jamestown NC

One of the points in Obama’s jobs plan is payroll tax cuts, intended to put more money into workers’ pockets and encourage employers to hire at reduced costs. What the President doesn’t tout is he wants to extend the current worker tax cut, due to expire at the end of the year, and increase it from 2% to 3.1%. That’s just half of the normal 6.2%. He’s already blaming Republicans if this doesn’t happen and he can just see jobs withering away from less money in your pocket.

Fact Check: First, the current extra pocket money is not making it into the economy as most people pay down debt or save it. Something else no one is talking about is the payroll tax holiday reduces contributions to the Social Security Trust Fund. Has anyone forgotten the dire predictions for the immenent collapse of Social Security?

Wizard of Oz

Smoke and mirrors: here are a few coins for your pocket today, but they won’t be there when you retire. In this case, paying it forward doesn’t make any sense to me. In his speech in Jamestown NC today, Mr. Obama obfuscated the matter (emphasis added):

So don’t be bamboozled. (Laughter.) Don’t fall for this notion that somehow the jobs act is proposing to raise your taxes. It’s just not true. Under this—here’s what will happen. If we don’t pass the American Jobs Act, if we do not pass the provision in there that extends the payroll tax cut that we passed in December, most people here, your taxes will go up by $1,000. So voting no against the jobs bill is voting in favor of middle-class families’ income taxes going up. And that’s a fact. Don’t take my word for it—all the reporters here, they can check on the facts on this thing. That’s the truth.

Are any reporters fact-checking the only payroll taxes the Federal government collects are Social Security (FICA) and Medicare?
 

Previously on Obama’s jobs bill:

Fri, 23 Sep 2011

Obama Grandstands for Stimulus 2.0 Jobs Bill

Filed under: Budget, Economy, Employment, Government, Politics, President, Take action — cynicalsynapse @ 10:50 am

Obama pushing his jobs bill in Cincinatti

Pres. Barack Obama was in Cincinatti yesterday to push for passing his jobs bill, which is really just the Stimulus on diet pills. At $447 billion, Obama’s proposal is just over half the $850 billion economic stimulus package of 2009. Like the original Stimulus bill, Obama’s jobs bill focuses on infrastructure.

Behind us stands the Brent Spence Bridge. It’s located on one of the busiest trucking routes in North America. It sees about 150,000 vehicles cross over every day. And it’s in such poor condition that it has been labeled functionally obsolete. Functionally obsolete. It’s safe to drive on, but it was not designed to accommodate today’s traffic, which can stretch for a mile.

If the Brent Spence bridge is in such bad shape, why didn’t it get fixed by the original stimulus bill? Why is Obama advocating for it as part of his jobs bill? Could it be, oh, I don’t know, the bridge links House Speaker John Boehner’s (R-OH-8) district with Kentucky, Senate Minority Leader Mitch McConnell’s home? Why, yes; yes it does. In his remarks, Obama said:

Mr. Boehner, Mr. McConnell, help us rebuild this bridge. Help us rebuild America. Help us put this country back to work.

will code for food

Obama’s jobs plan focuses on construction, which had 13.5% unemployment in August, compared to 9.1% overall. The the President talks about putting unemployed construction workers back to work. Unfortunately, his jobs bill won’t help the right people. Jobs grew over the last year in every construction sector except residential; they’re not the ones who build bridges. And what about all the unemployed in other industries? Less than chickenfeed for them.

Considering its questionable effect, Big Stimulus was very costly with little benefit. Unemployment was at 7.3% before enacting the stimulus bill; it’s 9.1% today. The government reports stimulus saved or added about 2.4 million jobs which means taxpayers spent $288,000 on each of them. That equates to 976 weeks (almost 19 years!) of unemployment benefits at the averge US amount of $295 per week. Seriously?

Tell your Senators and Congressperson we cannot afford Stimulus 2.0. It’s too costly and it won’t fix unemployment.
 

Previously on the stimulus bill:

Fri, 09 Sep 2011

Déjà Vu: Obama’s Jobs Plan is Just Stimulus 2.0

Filed under: Budget, Business, Congress, Economy, Employment, Government, Life, Politics, President, Stimulus — cynicalsynapse @ 5:00 pm

the new homeless

Déjà vu is the feeling of experiencing what’s going on now repeats some previous similar event or activity. President Obama’s jobs speech to Congress, in an 8 September 2011 joint sesssion, feels like that. Some other concepts that come to mind:

  • “Those that fail to learn from history, are doomed to repeat it.”
    Winston Churchill
  • “If you always do what you’ve always done, you’ll always get what you’ve always got.”
    Henry Ford
  • “Hope is not a method.”
    Gordon R. Sullivan
  • “You can’t have your cake and eat it too.”
    John Heywood

The size of Obama’s proposed $447 billion jobs bill is over half that of 2009’s stimulus bill. Like its predecessor, the jobs bill includes tax cuts designed to spur private sector jobs and give working class people more take-home pay so they can spend it and create a need for more workers. It also includes money for education and infrastructure projects, just like the stimulus bill. Counterintuitively, both the stimulus and jobs bills also called for extended unemployment benefits.

Pres. Obama makes his jobs bill speech

Obama urged Congress to pass his jobs bill, pointing out it includes proposals from both parties and will be fully paid for:

There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans—including many who sit here tonight. And everything in this bill will be paid for. Everything.

With no plan for where the bill’s nearly a half trillion dollar cost will come from, Mr. Obama tasked the bipartisan deficit reduction supercommittee to pay for jobs on top of the deficit reduction they’re already charged with. Since unemployment is now 9.1%, compared to less than 8 (7.6%) prior to 2009’s stimulus package, why does anyone think “Stimulus Lite” will work? If they do, they’re part of the Chain of Fools (meaning no disrespect to Miss Aretha).
 

Previously on the stimulus bill:

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