Taxes

How is John McCain not a conservative? Let Joe Scarborough count the ways. The Morning Joe host thundered out a bill of particulars today that was nothing less than an indictment of McCain's lack of conservative credentials.

It was Mika Brzezinski's reference to Bob Novak's column of today, questioning McCain's conservatism, that sparked Scarborough's outburst.

View video here.

Covering Hillary's tricked-up "victory" event for a Dem Florida primary that was not supposed to be contested, even MSNBC co-anchor Keith Olbermann eventually got bored and pulled away.

But before he did, the junior senator from New York began to lay out her plans for America. Though sheer ennui eventually drove MSNBC off, the network hung in for enough of Clinton's "victory" speech to give us a taste for what might rightly be called "Hillary's Manifesto."

Warning: remove small children and sensitive pets from room before viewing video here.

In Joy Behar’s fantasy world, an automatic tax increase for nearly all income taxpayers are simply "taking back tax cuts to the rich." And if one calls it a tax increase, one is engaging in "double speak." On the January 29 edition of "The View," the co-hosts chatted about President Bush’s last State of the Union and co-host Joy Behar added this comment on the president’s tax hike veto pledge.

Video (45 secs): Windows (2.64 MB), plus MP3 audio (325 kB).

"There was one point where he says, you know, ‘no- we will not-’ basically he’s saying we’re not going to take back our tax cuts to the rich. Which he interprets as ‘tax increases.’ Just because you’re taking it back, he says it’s an increase. See that double speak I don’t care for."

"Uncivil Discourse: Bush pressures Dems to fall in line for his final year."

That's how Newsweek.com teases a Richard Wolffe Web Exclusive analysis of President George W. Bush's final State of the Union address. Wolffe lamented the bitter partisanship in Washington, noting that the Bush-Pelosi-Boehner agreement on an economic stimulus plan was "the rare exception" of "respect and cooperation" that "is hard to find in the halls of Congress at the end of the Bush era."

Too bad, Wolffe gripes, that President Bush used his final State of the Union to chide Congress for failing to make tax cuts permanent (emphasis mine):

“In Heat of Battle, Darman Put Taxes Back on the Table,” read the Saturday “Business” section headline over the “appreciation” piece, by veteran Washington Post reporter Steven Mufson, on the legacy of Richard Darman, the budget director who in 1990 arranged the deal which undermined George Bush's “read my lips: no new taxes” pledge. Darman passed away Friday, at age 64, after battling leukemia. Mufson hailed how Darman's deal, “along with the first Clinton budget...balanced the federal government's books for a decade,” and empathized with how Darman had confronted “the dilemma of contemporary U.S. politics: Republicans have taken taxes off the fiscal table, no matter how sensible they might be.”

Mufson, who currently covers energy for the Post but back in 1990 covered economic policy, presumed the Reagan tax cuts of nine years earlier caused a “budget mess” which had to be fixed in 1990, asserting that “many people thought it was fitting that Darman was at the center of these talks because of his role in drafting the big 1981 Reagan tax cuts.” Mufson quoted David Stockman, the infamous Reagan back-stabber, as quoting Darman: “I don't know which is worse, winning now and fixing up the budget mess later, or losing now and facing a political mess immediately.” But the “fixing” didn't occur for a decade, leading Mufson to postulate:

That summed up not only the Darman dilemma but also the dilemma of contemporary U.S. politics: Republicans have taken taxes off the fiscal table, no matter how sensible they might be. That makes compromise difficult and it could be bad policy, too. In addition to raising revenue, the small gasoline tax increase that conservative Republicans were able to purge from the final 1990 deal "might have been good energy and environmental policy," Darman said in a talk last March.

The biggest news out of last night's GOP debate could be the hit taken by John McCain's reputation for straight talk.

For whatever reason, McCain chose to deny the undeniable: that on more than one occasion he has admitted not understanding the economy as well as he should. When the debate ended it took MSNBC no time to document the record. And a bit later, in the post-debate coffee klatsch, Chris Matthews and Howard Fineman unloaded on the Arizona senator for his fudging.

View video here.

Liberal Maryland Gov. Martin O'Malley (D) is in trouble with the voters who elected nearly 15 months ago. In a state that is deep blue in presidential elections and has a 2:1 Democratic registration advantage, the former local Irish rocker is getting a chorus of boos from voters with poll numbers in the mid to high 30s. One major factor: the tax-hiking special legislative session he called in fall 2007.

Not to worry, Governor, the Washington Post has got your back. Here's the headline for the top Metro section story in my January 23 Maryland Home Edition of the Post:

"On O'Malley's To-Do List: Rebuild Public Image"

It becomes apparent, however, that rebuilding O'Malley's positive press is high on the Post's agenda. Reporter John Wagner wrote of O'Malley's plan to take "modest steps" towards fulfilling what O'Malley insists is "protecting our priorities." Wagner takes care to focus on how a slowing economy could prove an obstacle to O'Malley's policy goals, but fails to address concerns that O'Malley's tax hikes could be part of compounding the problem by disincentivizing business from expanding or moving to the state:

In an article (HT Jim Taranto at Best of the Web) describing Ireland's emergence as an European Union powerhouse ("Entrepreneurship Takes Off in Ireland"), reporter James Flanigan of the New York Times simply could not bring himself to specifically identify one of the main reasons for the country's success (bolds are mine):

Ireland is now alive with enthusiasm for entrepreneurs, who seemingly rank just below rock stars in popularity.

..... The relatively new emphasis on entrepreneurs in Ireland is the culmination of nearly four decades of government policies that have lifted the economy from centuries of poverty to modern prosperity.

The change began when Ireland entered the European Union in 1973. In subsequent years, the government rewrote its tax policies to attract foreign investment by American corporations, made all education free through the university level and changed tax rates and used direct equity investment to encourage Irish people to set up their own businesses.

“The change came in the 1990s,” said James Murphy, founder and managing director of Lifes2Good, a marketer of drugstore products for muscle aches, hair loss and other maladies. “Taxes and interest rates came down, and all of a sudden we believed in ourselves.”

So tax rates "changed," eh? And we learn in the next paragraph that "taxes and interest rates came down," as if by some external supernatural force.

Are you noticing a chronic case of word avoidance?

During a live interview on Friday's American Morning, Fred Thompson lived up to his reputation as the GOP presidential candidate most willing to challenge the media, as the former Senator complained to CNN anchor John Roberts that the show used a clip of him joking about Fed Chair Ben Bernanke to make it appear Thompson was not interested in a stimulus package for the economy. Thompson: "You sit there and you take an hour's worth of tape, of course, and we have a little fun every once in a while, and sometimes you guys pick that out and have a little fun with it yourself..." When Roberts suggested he was being "dismissive" of a stimulus package, Thompson continued: "You know better than that. ... From time to time, things come up, and I poke fun at it... And you guys pick it out, you know, and leave it lying out there. We proceeded to talk about the economy and talk about a stimulus package, which I've been talking about for two or three days, but if this is your highlight event, it's your highlight event." (Transcript follows)

Class warfare seeped into the January 18 edition of "Today." Upon interviewing Treasury Secretary Henry Paulson on the Bush administration’s proposed economic stimulus package and rebates, Matt Lauer pitched the liberal "tax cuts for the rich" line inquiring "you're not going to give rebates to the rich here, correct?"Secretary Paulson declined to answer the question saying he does not "want to get ahead of the president."

Just as he did yesterday, Matt Lauer asked again if the media’s gloomy economic news is a "self fulfilling prophecy."

"Do you ever worry that the media, we get the ‘r’ word on our lips, recession and we chant it and that eventually it becomes a self-fulfilling prophecy, the consumers of TV and the media hear it and they are also consumers of the economy and they spend themselves into a recession or don't spend themselves?"

On Wednesday's The Situation Room on CNN, during the roundtable segment, Jack Cafferty charged that Hillary Clinton's recent contention that she would be best prepared to deal with a terrorist attack amounted to "the same boogeyman fearmongering garbage we've had from the Bush administration for the last five years." He added that "it isn't the terrorists that are going to take this country down. We're doing a good job of that all by ourselves." (Transcript follows)

Cafferty also lamented that Republican candidates were talking about issues like abortion, same-sex marriage, and the Confederate flag, which he called "the same crap that we hear every election cycle." He went on to recommend both spending cuts and tax increases to improve the economy. Notably, Cafferty's reference to the Confederate flag gave an impression that he saw one of the candidates pushing the issue, when in reality, as reported by CNN's John King at about 4:30 p.m., the discussion of the Confederate flag consisted of a few people protesting outside, and a man in John McCain's town hall meeting audience bringing up the subject and complaining about the Arizona Senator's opposition to the flag's display above South Carolina's state capitol, with McCain defiantly standing by his opposition. Cafferty also neglected to mention that McCain has been talking about fighting against wasteful spending, which is consistent with some of what Cafferty was pushing for.

The VRWC rides again, but this time it's apparently going after a Republican . . .

Mike Huckabee went on Morning Joe today and toyed with suggesting a "conspiracy" composed of the "Washington power circles" was out to get him. At 7:41 AM ET, the former Arkansas governor was discussing his efforts in South Carolina with Joe Scarborough and Mika Brzezinski.

View video here.

After reputedly being the victim of rough politics in 2000 at the brass-knuckled hands of the Bush campaign, John McCain has pledged to eschew such tactics. But in the opening segment of today's Morning Joe, host Joe Scarborough called McCain out for honoring that pledge in the breach, accusing him of "dirty campaigning."

JOE SCARBOROUGH: Very interesting. A John McCain mailer went out. John McCain was attacked in 2000, and he was going to be very positive. This is a McCain mailer that went out . . . He attacked Mitt Romney. He said Mitt Romney funded taxpayer-funded abortions. Calls Massachusetts "Taxachussetts," criticizes him for not supporting the Bush tax cuts.

Paul Krugman clearly isn't lacking in chutzpah.

His January 11, 2008 New York Times column ("The Comeback Continent"; HT Tom Maguire via Instapundit) is yet another in a seemingly endless series of attempts by economic statists to convince people in the US that we need to be more like Europe -- specifically Western Europe -- and less like the growth-driven, market-based capitalists that we still largely are.

Here is part of what Krugman wrote in a remarkably fact-free column:

.... tales of a moribund Europe are greatly exaggerated.

..... I don’t want to exaggerate the good news. Europe continues to have many economic problems. But who doesn’t? The fact is that Europe’s economy looks a lot better now — both in absolute terms and compared with our economy — than it did a decade ago.

In an article about the status of Massachusetts's health care system on January 6, Associated Press Writer Steve LeBlanc seemed to be auditioning for a spot at the BBC.

Until just a few years ago, when the cost, sanitation, treatment and other problems at the British National Health service (NHS) became so obvious that they could not be ignored, the BBC could be counted on to give glowing reports on the NHS, regardless of the reality.

LeBlanc's opening paragraphs, carried in the Worcester Telegram & Gazette, could have been taken straight from 1990s-and-prior BBC missives:

Massachusetts is facing a daunting goal as it enters the second year of its grand experiment of extending health care coverage to nearly all citizens - reining in spiraling costs that could threaten the landmark law.

"The sustainability of reform depends on our ability to restrain or constrain or moderate the increase in costs," said Jon Kingsdale, executive director of the Health Insurance Connector Authority, which oversees the health care law.

"That's going to take a huge concerted effort by all players in the health care area," he added.

For Massachusetts residents deemed able to afford health care, but refuse, that means facing new monthly fines that could total as much as $912 for individuals and $1,824 for couples by the end of the year.

It took a couple of tries, but CNN "American Morning" co-anchor John Roberts got Democratic presidential hopeful Barack Obama to admit what people probably already knew - Obama wants to raise taxes.

Obama appeared in an interview with Roberts on the January 9 "American Morning" fresh off his second place finish in the New Hampshire Democratic primary. He told Roberts high taxes were in the best interest of the American economy.

"Well, I think that there's no doubt that letting the Bush tax cuts on the top 1 percent lapse would not have, I think, a significant impact on the economy, but would bolster our fiscal situation," Obama said. "We continue to run big deficits - our national debt has increased drastically. That is not good for our long-term economic security."

California Gov. Arnold Schwarzenegger (R) is proposing a new insurance surcharge to plug a budget gap that conservative critics are calling a tax. And objectively speaking, it really is a tax. But the L.A. Times was careful to avoid attributing the T-word to the idea.

Here's the teaser from the Times Web site's front page:

Gov. urges levy on insuranceBy Marc Lifsher and Evan HalperPlan calls for 1.25% assessment on all residential and commercial property policies to fund firefighting. Foes call it a tax.

Here's the header, subhead, and lede from the January 9 article:

A few months after cheering Martin O'Malley's successful push for tax hikes, the Washington Post's John Wagner is lamenting the Democratic governor may have to settle for a "modest" agenda in 2008 due to budget constraints.

Don't hold your breath for similar concern about everyday Marylanders and how they may have to settle for more modest spending thanks to tax hikes, particularly a boost in the sales tax to six percent from five percent.

Here's the opening few paragraphs from John Wagner's January 7 article, "O'Malley May Set Modest Agenda":

Well, the New York Times certainly can't be accused of excessive free market idolization. Peter Goodman breaks off from his gloomy economic assessments to cheer for regulation in Sunday's Week in Review story "The Free Market: A False Idol After All?"

In Goodman's telling, there is no question mark, stating the argument against the free market in simplistic liberal terms, right down to echoing the Reagan-era pejorative of "trickle down economics."

A hard-hitting subscription-only editorial in the Wall Street Journal today needs some reinforcement.

That's because Californians relying on Old Media for their news about the Golden State's dire financial situation are being conditioned to believe that only a tax increase will solve the state's problems.

The latest offering in that regard is a Field poll covered at the San Jose Mercury News and the San Francisco Chronicle, headlined "Many voters think deficit fix will require higher taxes" and "Voters resigned to higher taxes to solve budget crisis," respectively. Those headlines conveniently obscure the fact that the margin of those believing that tax increases are necessary vs. those who think that the answer is totally in spending cuts is only 48%-43%.

Here is some of what the Journal had to say:

Congressional "Pay-As-You-Go" budgeting translates to perpetually bigger government

Originally published on December 21st by Human Events. 

The New Seal of the Federal Government

Want to ensure the growth of government?  Forever?

The media does, and they have with Liberals devised the perfect way to do it.  It is the "pay-as-you-go" Congressional budgeting rule -- Pay-Go.  It requires every move that Congress makes be "budget neutral"; every new spending initiative must be paid for - no more deficit spending.

How could anyone, Conservatives especially, not be enraptured with such a concept?

When Larry Summers suggested in early 2005 that, as paraphrased by Slate's William Saletan, "innate differences between the sexes might help explain why relatively few women become professional scientists or engineers," the outcry was immediate, furious, and went to saturation level virtually overnight. The controversy ultimately led to his resignation a year later as Harvard President.

On Wednesday, Mr. Summers, a Democrat who was once Treasury Secretary under Bill Clinton, made a recommendation in his area of expertise -- that is, that a tax cut would be a good idea to protect against a possible recession. (Yours truly doesn't believe that a recession is anywhere near occurring. But hey, I've said since May, and several times since [here, here, and here, among others] that a tax cut is needed anyway to keep the economy chugging along at a good rate. So if panicked pols want to enact a tax cut for the wrong reason, I'll take it.)

Old Media reaction to Summers has been virtual silence.

It's a Christmas tradition: Times Watch has selected its worst Quotes of the Year from The New York Times for 2007. Here's a sampling of the categories and some of the most bizarre examples of liberal bias. For all the quotes, plus the picks of our Times-dissecting judges for their "favorite" quote of the year, visit Times Watch.

Oh, Those Awful Conservatives 

"Could adversity temper a jurisprudence that critics of the chief justice have discerned as bloodless and unduly distant from the messy reality of the lives of ordinary people who fail to file their appeals on time?" -- Supreme Court reporter Linda Greenhouse's August 1 "Supreme Court Memo," the day after Chief Justice John Roberts suffered a seizure at his house.

 

Barely four years after California's historic recall of sitting Governor Gray Davis and Arnold Schwarzenegger's landslide election to replace him, the Golden State is, again, in a budget crunch of its own making.

Oh, it's not as bad as the Gray days -- yet. The $35 billion budget deficit Davis papered over long enough to win reelection in 2002 over Bill Simon, with the help of the state's ignorant and non-inquisitive news media, is 2-1/2 times higher than the $14 billion gap the state is facing over the next 18 months.

The state's Old Media, as would be expected, is moaning about cuts that might have to be made, obsessing over the possibility that "universal health care" might be derailed, and of course giving visibility to anyone and everyone who thinks even more taxes will solve the problem.

As has been the case for well over a decade, nobody that I know of in California's Old Media is considering the idea that the state is paying the price for failing to sufficiently go along with the rest of the country in aggressively reducing welfare rolls. But the numbers support the idea that if the state had done what the rest of the country has "somehow" done without visible suffering, it would be in a much better situation.

(A table and graphs illustrating the situation are after the jump.)

You know all that nonsense the media have been spewing that the Bush tax cuts caused the rich to get richer and the poor to get poorer?

Well, the Internal Revenue Service and the Congressional Budget Office have published tax and income numbers for 2005, and the press couldn't be any more wrong.

In fact, it's almost as if the media get their data from Democrat presidential candidates, and disseminate it without the slightest effort whatsover to vet or verify its veracity.

As reported by the Wall Street Journal Monday (emphasis added throughout):

The market is good for corn farmers right now. Corn prices are reaching highs because of the increased demand for food and as of late, the increased demand for corn-based ethanol.

The price of corn is at an 11-year high. Its $4.38-a-bushel price tag is fueling food inflation, according to the December 17 "CBS Evening News."

However, that's contrary to what CNN Chief Medical Correspondent Dr. Sanjay Gupta told viewers on the December 18 "American Morning." It is the low price of corn, he said, that has prompted the need for San Francisco Mayor Gavin Newsom to impose a "sugary drink tax," specifically drinks sweetened with high-fructose corn syrup.

"[I]f you look at the history of this substance, ["American Morning" co-anchor] Kiran [Chetry] - I think this is very important - we subsidize a lot of corn production in this country," Gupta said. "We've been subsidizing it for a long time to support the corn farmers, which is a good thing. If there is a problem in all of this, it is that maybe we make too much corn and some of that corn gets turned into this high-fructose corn syrup."

On Sunday's This Week, ABC's George Stephanopoulos pressed former Federal Reserve Chairman Alan Greenspan to agree on the wisdom of raising taxes. Stephanopoulos wondered “what would be wrong with letting the tax cuts for the top one percent expire?” and suggested that to “shore up” Social Security and Medicate that Congress “limit the tax cuts.”

Citing a Congressional Budget Office study, “which was just stunning to me,” Stephanopoulos recounted how “it said that in the last two years -- from 2003 to 2005 -- the increase in income for the top one percent exceeded the total income of the bottom 20 percent. Given that, what would be wrong with letting the tax cuts for the top one percent expire and plowing that money into education?” Following up, Stephanopoulos proposed: “If you have long-term problems in Medicare and then also in Social Security, wouldn't it make sense to, in addition to limiting them as I know you would like to do, to limit the tax cuts and shore up the programs in that way?” Stephanopoulos started the interview by summarizing John Edwards' claim that “average Americans are not winning in this current economy and the policies that we've been following for a long time are part of the reason.” Greenspan retorted: “His remedies will make it worse.”

This is up on Drudge at the moment:

Yes, the viciousness is being directed at Democrats for not being spendthrift enough.

It's too early to tell whether President Bush and congressional Republicans have outmaneuvered the Democratic congressional majority, but it's looking that way. Old Media doesn't like it, and their inability to successfully buck up their side, one bit.

In the Washington Post's "Dems Blaming Each Other For Failures," Jonathan Weisman and Paul Kane are clearly critical:

After speaking against the death tax last week, "View" co-host Whoopi Goldberg said "people are very annoyed" with her and reliably left Joy Behar attacked with her pro-tax liberal spin. The December 12 edition of "The View" featured country star and politically conservative guest co-host Sara Evans, who also spoke out against the death tax.

Similar to her previous statement on the issue, Goldberg said "I just feel like...I’ve worked very hard...this is something I want to give to my kid and she should be able to accept it." After Whoopi called it a "double tax" Sara Evans exclaimed "I totally agree with you!"

Joy Behar, in using the typical left wing class warfare propaganda claimed that "the very, very rich, not only don’t have to pay it, but get tax cuts." As she has done before, Behar gets her facts wrong. In 2005, the top one percent (those making $364,657 or more) paid 39.4 percent, but earned only 21.2 percent of the wealth.

Whoopi Goldberg did call out Joy Behar exclaiming that the wealthiest Americans are "pay ing 50 percent of their income. It’s not like they’re not paying."

Video (50 secs): Windows Media (1.55 MB) or MP3 audio (384 kB).

The entire transcript is below.

Hillary Clinton's performance in her interview with Maria "Money Honey" Bartiromo of CNBC last week was so bad that she must have sent a double (stop shivering at the thought, will ya?).

After all, the genuine Smartest Woman in the World couldn't possibly have said the things she said, as noted at Rush Limbaugh's site last Thursday. It got so bad that Bartiromo, who seemingly has barely cracked a smile since George Bush became president, felt compelled to challenge her.

Here is one of the choice offerings Mrs. Clinton served up:

(There are ) lots of people who come on your show who, you know, are gung-ho, protect the tax cuts for the wealthiest of Americans, that will not work if the economy slows down. You need to get money in the pockets of tens of hundreds of millions of Americans, and that's what I intend to do.