The War Against the Producers

Stimulus, stimulus and not a drop...

A "stimulus" of nearly a trillion dollars was proposed, without which we were told, unemployment would skyrocket and credit would tighten further. Six months later -- unemployment having risen even higher than the administration's forecast of what would have been the case had their stimulus package not been implemented -- now the same proponents of massive borrowing demand a second stimulus to accomplish what the first 'successful' borrowing apparently did not. If you fail, then try the same thing to fail even bigger the second time -- while calling for more success to follow the earlier success?

The Larger Agenda

Note here I mean something quite different from the accustomed notion of "accomplish." You see, I think the point was never much to build more bike paths on borrowed money or just bail out GM, but rather more to reengineer the tax code, as part of a grander vision of creating a new equality of result in America.

Soon we will all end up after each April 15 about making the same, driving the same sort of cars and using the same sort of mass transit, living in about the same sorts of houses, and having about the same sorts of "'they' will take care of it for me" philosophies -- all overseen by brilliant, but highly ranked and exempt Platonic Guardians who suffer on our behalf as they jet and limo at breakneck speed ensuring our welfare.

Gorging "the Beast"

We are beginning to sense the debate is not about "stimulus" (politicians did not even read the various bills that they rammed through and care little about the fiscal impact from them). Rather, we are witnessing an inversion of Reagan's sort of playing chicken, once called "starve the beast" (which I thought was a wrong notion), a philosophy of cutting taxes to cut revenue to starve the federal government's excessive spending in the face of spiraling deficits.

Under Obama's "gorge the beast" version, America will simply write so many bounced checks, run up such an enormous $10 trillion debt, that taxes will have to rise on "them"-- and wasn't this really the point of it all anyway: to "spread the wealth around" and "never let a crisis go to waste"?  Since new programs never shrink, but, like Johnson grass, grow with impunity, and since Democrats, even more so than wasteful Republicans, don't worry about deficits, taxes must escalate to avoid catastrophe.

The Bad Guys

Ponder a simple fact: The Obama administration is dispersing income lavishly to those who do not pay taxes and it will have to be paid for by those who do. For all the talk of that awful percentile who make over $200,000, this administration has not distinguished the hyper-rich 1% that make untold money (e.g., the Buffets, Soroses, Turners, Gateses, Kerrys, Gores, etc), from the much more demonized, larger 5% of the population whose income does not come from investments and insider influence and deal-making, but rather from providing more tangible goods and services -- the family doctor, the plumbing contractor, the small lumber company owner, the car dealer, the local family-held insurance company, the airline pilot, the car-leasing firm, the patent attorney, etc.

"Their Fair Share"

Last fall we heard that this percentile was unpatriotic, did not wish to spread the wealth around, and had made off like bandits under Bush. But the fact is, to quote Mayor Gavin Newsome's "like it or not," they are precisely those who decide most dynamically whether to hire, fire, expand, contract, buy/sell goods, etc.

And the results of the Obama war against them are threefold: 1) in major key states, the productive minority's state income taxes will near or exceed 10%; their federal rates will go to 40%; the abolition of caps on FICA will ensure 15% plus of most of their income will go for new Medicare and Social Security bites; and they may well be eligible for a newly proposed punitive health-care surcharge tax of 4-6%.