Obama Calls for Dems and GOP to Cooperate, Wants to Keep Governing against the Will of the People

Posted by PITHOCRATES - January 1st, 2011

Liberals Always Call for Bipartisanship when they Lose Elections

When Nancy Pelosi and her Democrats won in the 2006 midterm elections, it was the end of conservatism.  They said so.  When Obama won in 2008, he advised those across the aisle that elections have consequences (see The roots of Obama’s demise by Marc A. Thiessen posted 10/25/2010 on The Washington Post). 

The decline of the Obama presidency can be traced to a meeting at the White House just three days after the inauguration, when the new president gathered congressional leaders of both parties to discuss his proposed economic stimulus. House Republican Whip Eric Cantor gave President Obama a list of modest proposals for the bill. Obama said he would consider the GOP ideas, but told the assembled Republicans that “elections have consequences” and “I won.” Backed by the largest congressional majorities in decades, the president was not terribly interested in giving ground to his vanquished adversaries.

When the far left lies and tricks voters to elect them, they confuse that for a mandate.  When the truth of their policies comes out, though, they lose subsequent elections.  Then demand that Republicans work with them.  For the best interests of the American people.  Unlike Nancy Pelosi.  Or President Obama.

When liberal Democrats have the majority in Congress, bipartisanship means that Republicans should accept being the Democrats’ bitch.  When they’re out of power, it means something completely different.  That Republicans shouldn’t govern like Democrats.  Governing roughshod all over the opposition party.  Why?  “Because,” they say.  Pouting.  (They really don’t have anything better.  They just HATE not having power.)

It was Always about Growing Government, not Improving the Economy

And as the new year begins, President Obama is giving us a Bill Clinton wag of the finger (figuratively), telling us to play nice.  Which is what bullies typically do when they lost their power to bully (see Obama: Dems, GOP must cooperate in new year by Julie Pace, Associated Press, posted 1/1/2011 on Yahoo! News).

In his weekly radio and Internet address, Obama said Saturday that lawmakers must return to Washington next week prepared to make serious decisions about how to grow the economy in the short run and stay competitive in the future.

“I’m willing to work with anyone of either party who’s got a good idea and the commitment to see it through,” Obama said. “And we should all expect you to hold us accountable for our progress or our failure to deliver.”

Not quite the ‘thanks but no thanks’ he told the Republicans 3 days after his inauguration.  And all that talk about jobs being job one?  And that laser like focus on jobs?  It was all bull [deleted expletive].  Unemployment went up after his stimulus plan to keep unemployment under 8%.  It’s still flirting with 10% some 2 years later.  But the size of government spending exploded.  Which is what the Left wants.  It’s what they always want.  So they got what they wanted.  The only problem is that some of their supporters believed they were trying to improve the economy.

The Public Sector’s Message to the Taxpayers:  Let Them Eat Cake

The liberal left comprises approximately 20% of the population.  That’s why it’s hard for them to win elections.  Especially after they’ve exploded government spending following an election win.  And that spending is bankrupting the country.  Our states.  And our cities.

A big chunk of that spending goes to support the public sector.  Public sector unions have made public sector jobs very cushy.  No one in the private sector comes close to their wage and benefit packages.  And no one in the private sector enjoys job security like they have in the public sector.  Until now.  In Wisconsin, the Republicans are in power.  And the public sector is getting nervous (see Wisconsin State Workers Fret, as G.O.P. Takes Over by Monica Davey posted 1/1/2011 on The New York Times)

But it’s just not in Wisconsin.  Public sector unions are nervous wherever Republicans have ascended to power.  Because they worry that the good times may come to an end.  And they may have to live like the rest of us.  Some are even predicting that we may see a little European rioting here in the United States (see Topic A: What will be 2011’s biggest political surprise? by Ed Rogers posted 1/2/2011 on The Washington Post).

The biggest political surprise in 2011 may come in the form of the shock produced by public-sector labor strikes and demonstrations that could stray into civil disorder as state and local governments cut budgets. Government workers could be laid off by the thousands, and millions of the beneficiaries of government-supplied salaries, pensions and benefits could see reductions in pay and program allowances they have been told to expect.

The same kind of protests that have rocked Paris, London and Rome could erupt in California, New York and Illinois.

When European Socialism cuts back on pensions, college tuition assistance, health care, etc., the beneficiaries of European Socialism burn cities.  And this anarchy may be coming to a city near you.

The schism between the governed and those governing could become greater than ever as the government tries to protect itself for its own sake and not for the public good. The millions of Americans who have lost jobs or face increasing economic uncertainty resent the relative posterity and security that government now provides for itself. President Obama will say he is for more “stimulus,” but even the money-making printing presses in Washington are at their limits.

It’s a master-slave mentality.  The masters are the public sector.  The slaves are the taxpayers.  And the masters have lost touch with reality.  They laugh at the poor suffering masses struggling to pay their taxes.  When advised of the taxpayer’s plight what do they say?  “Let them eat cake.”  (A reference to what Marie Antoinette reportedly said during the French Revolution.  While the upper classes had food, the lower classes were to be satisfied with oven scrapings.)

Pennsylvania Liquor Stores a Microcosm of Public Sectors Everywhere

Of course, the poor, suffering taxpayers would probably not be in such a foul mood if it wasn’t for the value they were getting for those high taxes.  That public sector sucks.  As any enterprise without competition does.  Why give a damn about what you’re doing if you’re the only caterer in town?

In Pennsylvania, you can only buy wine and liquor in a government store.  And the service stinks to high heaven.  The good people of Pennsylvania want to privatize their booze.  But the public sector union oppose privatization (see A Push to Privatize Pennsylvania Liquor Stores by Julie Pace, Associated Press, posted 12/31/2010 on The New York Times).

Like prisoners in the gulag, consumers here can only fantasize about buying their wine and liquor in a competitive free market. The Commonwealth of Pennsylvania has run the liquor stores for eight decades, a relic of the post-Prohibition era, when government thought controlling the sale of alcohol would limit consumption.

The legislature has consistently dismissed talk of privatizing the system, mainly because of opposition from the union representing the store workers and from groups like Mothers Against Drunk Driving and conservative teetotalers, all influential in the state.

And what’s the recourse for an angry people?

“This is insane!” said Bill Conrad, 68, a retired electrical engineer. “People are going to New York and Jersey” to buy alcohol.

And there it is.  Competition makes everything better.  Should you be lucky enough to live close to the state border.  Where I live, I can go to most any party store, some drugstores, even some supermarkets.  And you know what?  I can go to anyone and buy whatever I want whenever I want.  Private stores have competition so they have an incentive to keep their shelves stocked.  And their doors open for customers.

If you want to get an idea about how Obamacare will be, you can look at the liquor stores in Pennsylvania.  That’s what happens when the governments tries to run anything.

The Taxpayers Message to the Public Sector Employees:  Get a Job

The Democrats took a shellacking at the 2010 midterm elections.  The people have rejected their Big Government liberal agenda.  And they know it.  So they’re now trying to shame the Republicans into working with them to keep their Big Government dreams alive.  It’s either that or they have to figure out a way to get rid of those pesky elections.

But the public sector is bankrupting the country.  And the people paying the taxes to support that public sector are saying enough is enough.  They don’t like making sacrifices in their own life so others in government can live a better life.  Especially when they have to settle for such rotten service from the public sector they’re paying more and more to fund.

Their message to these pampered public sector employees?  The same parents have been telling their kids for ages.  Get a job.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

LESSONS LEARNED #34: “Sure, until you win the lotto you’re all for sticking it to the rich.” -Old Pithy

Posted by PITHOCRATES - October 7th, 2010

Buddy Can You Spare a Dime

In the old days, we used to jail people who didn’t pay their debts.  Even in the United States.  A couple of signers of the Declaration of Independence even served time in a debtors’ prison.  We took it seriously.  Honoring your debts.  For those who didn’t, they found themselves inside a jail until they did.  Or until they died.

We jailed some people over small sums.  The severity of the punishment (broken families, disease, starvation, privation, physical abuse, etc.) was often extreme in comparison to the size of the debt owed.  In time we would move away from such barbaric justice.  No, in the modern, caring world, we don’t torment those who are down on their luck and find themselves penniless.  You see, the modern world is a caring world.  We abhor the sufferings of our fellow man.  So we show them kindness.  Charity.  We forgive them their debts and help them rebuild their lives.  Well, most of us do.

If you find yourself owing the IRS, you better pay up.  For they will send you to prison.  And take whatever you have.  They will destroy your life.  And your family.  Because they want to make something perfectly clear.  You don’t f*ck with the IRS.  They play to keep.  All the time.

The War on Alcohol

The 18th Amendment prohibited “the manufacture, sale, or transportation of intoxicating liquors within, the importation thereof into, or the exportation thereof from the United States and all territory subject to the jurisdiction thereof for beverage purposes.”  The government may have shut down supply, but the market remained.  Enter criminal gangs.  Who furnished the supply to meet the demand.

None did it better than Al Capone.  His gang ruled Chicago.  People admired him.  After all, he wasn’t hurting anyone.  He was just giving the people what they wanted.  A way to relax and blow off steam.  Like we do today when we enjoy an alcoholic beverage with our friends.  But the gang violence grew.  The pictures following the Saint Valentine’s Day Massacre were just too gruesome.  Soon thereafter the FBI branded Scarface as public enemy #1.

Bootlegging, prostitution, murder, extortion…Capone broke a lot of laws.  But he crossed the line.  He committed a crime that was so heinous that it would land him ultimately in Alcatraz, America’s most secured federal prison.  That crime?  Income tax evasion.

On the Road Again

Willie Nelson is a big time Democrat.  He’s into saving the environment.  Animal rights.  Legalizing marijuana.  Helping the farmers.  And he’s a regular peacenik.  So you’d think he’d be a big fan of Big Government.  Well, yes and no. 

He became very wealthy by the 1980s.  And like a good Democrat, he tried to shield some of that wealth from the IRS.  He parked some of it in some talk shelters.  Then came along Ronald Reagan.  He understood what Andrew Mellon understood (Secretary of the Treasury for Warren G. Harding).  High tax rates made rich people hide their money.  Lower tax rates encouraged rich people to invest their money.  When Mellon cut the tax rates wealthy people paid more taxes and less wealthy people paid fewer taxes.  The progressive tax system worked even better at lower tax rates.  Tax revenue increased as the wealthy invested their money instead of finding creative ways to hide it.  It worked for Reagan, too.  He even closed tax shelters as a further incentive for the wealthy to invest their money to grow the economy and create jobs.  That worked, too.  Savvy wealthy people everywhere were putting Americans back to work.  Only one small problem.  The not so savvy wealthy were caught unawares.

Willie Nelson didn’t move his money from his tax shelters.  When Reagan disallowed those shelters, his money sat there accruing federal taxes.  And interest and penalties.  He blamed and sued his accountants.  The accountants countered that they only did the accounting and taxes.  They were not investment advisors.  Anyway, the IRS seized his assets.  He went on the road again and often to pay off his tax bill.  His total bill came to about 16 million in back taxes, interest and penalties.  Which he paid.  As he no doubt would have from the get-go if he had sought appropriate counsel to help him negotiate the 1,000+ page U.S. tax code.

Easy Money – For the IRS

There are many stories like Willie Nelson’s.  Even Treasury Secretary Timothy Geithner, the smartest man in America, couldn’t figure out his own taxes.  (But we were to excuse him for this because no one else was as qualified as he was to write and administer the U.S. tax code).  But it’s not only the not-so-savvy celebrity rich and the intellectually challenged intellectuals who have trouble with the U.S. tax code.  The poorest of the poor who never had money can sometimes run afoul of the IRS.

Playing the lotto.  Millions do.  Most lose.  And they’re lucky that they do.  Many lotto winners have their lives take a turn for the worse.  Friends and relatives you don’t know are reacquainting themselves with you.  Well, not you so much as your new found wealth.  Con men target you.  Charities.  Neighbors.  Some spend the money fast.  Or recklessly.  Develop drug addictions.  Get robbed.  Even murdered.  There are a lot of stories out there.  Just search the Internet.

When you win the lotto, you can take a lump-sum payment.  Or you can take a series of payments.  Either way the IRS taxes this as income.  And the amount of these payouts will most probably push you in the highest income tax bracket during the period of these payouts.  So the IRS likes lotto winners.  Your odds of winning are slim to none but someone always wins.  And that’s a tax bonanza for the IRS.  Not-so-savvy people who become rich overnight.  The full force and power of the U.S. government falling on some poor schmuck who probably never had a tax liability in his or her life.  Money just doesn’t get any easier. 

Capital Gain or Income?

Some may sell the rights to their future payments.  It’s sort of like selling a rental property.  For example, take a house that rents for $1,000 per month and sells for $150,000.   The buyer gets those future rent payments.  The seller gets the money back that they paid for the house and, hopefully, a capital gain (i.e., they sell the house for more than they paid for it).  The seller pays a capital gains tax on their capital gain.  They do not pay any further income tax on the rental income that the buyer now collects.

Some lotto winners see selling their rights to future payments in the same light.  And that they should only pay a one-time capitals gain tax (at a lower capital gains tax rate) in lieu of the higher income tax rate.  The IRS begs to differ.  And they usually get their way.

Sadly, some buyers advised those selling their rights that they could pay the lower capital gains tax rate.  Which they did.  And faced heavy tax bills for back taxes, interest and penalties as a consequence.  Once again, easy money for the IRS.  You can search the Internet for stories like these, too.

Pay or Else

Whether a gangster, a celebrity, a Democrat brainiac or a low-income lotto winner, we all share something in common.  Whatever our politics, when it comes to our money, we all try to avoid paying our ‘fair share’ of taxes.  We may demand that other rich people pay their taxes, but we will do everything we can to avoid paying our taxes.  But we play a dangerous game when we do.  For those who do and lose, they learn a painful lesson.

You don’t f*ck with the IRS.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,