April 15-16, 2007
Apr 15 01:44 Cutting Through the Clutter Apr 15 09:56 They've Noticed Apr 15 18:03 Why Is Iraq Unwinnable? Apr 15 22:42 I Stand Corrected Apr 16 01:36 Join the Free For All Apr 16 02:17 Guess Who Came For Dinner Apr 16 10:42 We Should Feel Lucky???
Prior Years: 2006
Cutting Through the Clutter
If Fred Thompson keeps this up, he'll put himself in a very strong position to win the White House. The 'this' that I'm talking about is this WSJ op-ed. Let's start with my favorite line in the op-ed:
Those who say they want a "more progressive" tax system should be asked one question:It feels great to have a man as articulate as Sen. Thompson being our tax cut advocate. Thompson has framed the issue in such a way that the Democrats who respond will start from a position of playing defense. It's easy to sell tax cuts. It's something that people can understand without having majored in economics. (My apologies, King. I wish more politicians majored in econ.) To have a chance at winning the argument for tax increases requires alot of work intellectually. Even then, people likely won't respond favorably to tax increases.
Are you really interested in tax rates that benefit the economy and raise revenue--or are you interested in redistributing income for political reasons?
Next let's look at the body of the case Sen. Thompson makes for cutting taxes:
In fact, Treasury statistics show that tax revenues have soared and the budget deficit has been shrinking faster than even the optimists projected. Since the first tax cuts were passed, when I was in the Senate, the budget deficit has been cut in half.Last year, the budget deficit came in at $248 billion. This year, it's projected to fall another $50+ billion. What's so difficult to figure out about the effect tax cuts have on the economy? It's also worth remembering that the Bush tax cuts helped lessen the severity of the last recession. Without the tax cuts, the recession would've been much longer and more severe.
Remarkably, this has happened despite the financial trauma of 9/11 and the cost of the War on Terror. The deficit, compared to the entire economy, is well below the average for the last 35 years and, at this rate, the budget will be in surplus by 2010.
Fact: President Bush inherited a shrinking economy. I don't know if it was technically in a recession but I know it wasn't growing very fast.
The fact that the deficit has shrunk is remarkable, especially considering the fact that President Bush is paying for the Iraq War, some serious upgrades in our homeland security infrastructure and while Congress is spending like drunken sailors.
Let's also take a lesson from recent history. The supposed record Clinton economic record didn't happen until the 'Great Lakes Governors' started cutting taxes in Ohio, Michigan, Massachusetts and Wisconsin. The Voinovich recovery stabilized Ohio's economy. William Weld's tax cuts strengthened the economy and gave him the flexibility to experiment with welfare reform. John Engler's tax cuts gave Michigan great prosperity. They also allowed him to reform Michigan's education funding mechanism. Tommy Thompson's tax cuts gave Wisconsin a vibrant economy. It isn't coincidence that additional revenues came streaming in, allowing Thompson to become the leading innovator in welfare reform.
In other words, tax cuts increase revenues whenever they're tried. Finally, let's focus on the economics lesson Sen. Thompson gives to the Democrats:
The reason for this outcome is that, because of lower rates, money is being invested in our economy instead of being sheltered from the taxman. Greater investment has created overall economic strength. Job growth is robust, overcoming trouble in the housing sector; and the personal incomes of Americans at every income level are higher than they've ever been.You'd think they'd learn but they don't. Like the MNGOP commercial says about Democrats and tax increases: They can't help themselves. The only way to 'cure' this problem is to never let them get into a position to increase taxes. That means activists from sea to shining sea, from border to border need to get active in getting the word out that our prosperity is at risk with the next election. It's time that we all went on the offensive. It's time we took lessons from Sen. Thompson in doing just that.
Posted Sunday, April 15, 2007 1:45 AM
Comment 1 by Gem Hudson at 15-Apr-07 11:59 AM
It is no longer political. You know. As Adam in the Garden of Eden went out all by himself and naturally kept all that he had done. All that Adam done. He kept. So that all that the one manufacture. The one sells all that the one producted and once sold, he who has the gold just made the money but spend all the more without making all that much of the money. You are not only going out of business. You are out of business. Economics problems are people's problems.
They've Noticed
I predicted Friday that the MNGOP internet commercial would make its way around the internet by the end of the weekend. That prediction is fulfilled by this Pi-Press article.
I didn't speak out much on the Tax Rally Day event at the Capitol, though, which I should've done. Here's the link to KSTP's article on the rally. Here's a portion of the article:
A big crowd showed up to the capitol, a lot people on opposite ends of the political spectrum, each hoping to bring attention to their causes. Hundreds of people were calling for state lawmakers to keep taxes down and a limit on government spending.From what Andy & others have posted, the "big crowd" was pretty one-sided. A few environutters showed up to protest but 7,000 people showed up to protest the DFL's tax increases. I'll guarantee that the tax protesters got the legislators' attention. I'd doubt that the environutters had even a marginal impact.
"I'm just trying to get some of my money back, we know how to spend it better than the government does," Eric Granlund said, who was protesting tax increases.
The rally comes as the DFL controlled legislature is considering a number of bills that include tax hikes.
As I posted here, we don't need tax increases right now. In fact, with the Minnesota economy slowing down, tax increases of any sort will throw our economy into a recession. What we need to prevent that imminent recession are tax cuts.
Like I said last night, we need all GOP activists & their neighbors & their co-workers & their relatives to call their legislators. We need them to tell legislators, especially the most liberal legislators, that we need tax cuts. We need MOBsters to be the leaders of the tax cut movement.
We need to point to the impact that tax cuts had in Michigan & Wisconsin in the 1990's. We need to point to the impact that the Bush tax cuts had in making the last recession the shallowest recession in recent history. When the Engler & Thompson tax cuts got rolling, they led to reforms of the Michigan education funding mechanism & Thompson's welfare reforms. Let's compare that record of a booming economy to Jennifer Granholm's pathetic & getting worse economy in Michigan now.
It's time to hold the DFL's feet to the fire for lying to us about taxes. It's time WE THE PEOPLE told our 'leaders' how to keep our economy strong. That means we become genuine activists.
Now get out there & change our little corner of the world.
Posted Sunday, April 15, 2007 9:56 AM
No comments.
Why Is Iraq Unwinnable?
I'm really getting sick of hearing that Iraq isn't winnable, that it isn't worth any more American lives. The people who've adopted that mantra have typically been those who have the least amount of expertise in this area. That seems to be the case with this Boston Globe article, written by Steven Simon. He's trying to sound fair and balanced but he's anything but that. Here's a taste of fair and balanced:
The Democrats, who recognize that victory in Iraq is unachievable, have reason on their side. They must craft a solution that pulls centrist Republicans with them to avoid the "Who lost Iraq?" curse and achieve a course correction that saves lives and limits the damage to America's strategic position. All of Iraq's neighbors, and most Iraqis, want Washington to specify when US forces will leave. Sometime between now and the end of time, as Jon Stewart parodied the administration's position, isn't specific enough. The Democrats, however, go too far in the opposite direction. A complete drawdown by March 2008, per the Senate, or September 2008, as the House prefers, is too soon.Mr. Simon assumes that Iraq is a lost cause because that's what he's been told by the NY Times, the parent company of the Globe, and by the Washington Post. He's obviously ignored what Brian Williams said while embedded with troops in Ramadi. He's obviously ignored what John McCain said from Baghdad. He obviously didn't read Fred Kagan dissecting Joe Biden's op-ed.
If Mr. Simon had read Kagan's article, he might've actually been able to base his opinions on facts, rather than the latest talking points from the NY Times or the Beltway echochamber. That's part of the problem. I'd bet that Simon wouldn't think about reading anything from the Weekly Standard.
Until both sides in the domestic political debate are ready to acknowledge all these realities, a political consensus on Iraq will remain elusive. It is up to the moderates in both parties to bring that consensus about.Name me a Democrat moderate not named Lieberman. Awhile back, I talked with a friend of mine about foreign policy. My friend said that the biggest reason for the divide on foreign policy being so wide was because of a lack of Scoop Jacksons, Pat Moynihans & JFK's. I totally agree. How do you reach consensus with a political party whose goal is to unilaterally and unadvisedly declare defeat? The obvious answer is that you don't. You defeat them politically in 2008 so you can do what's right.
Posted Sunday, April 15, 2007 6:04 PM
No comments.
I Stand Corrected
Earlier this weekend, I wrote something about John Breaux's likely candidacy for governor in Louisiana, saying that the fix was in. I now stand corrected. Jim Addison from Wizbang Politics writes that John Breaux announced that he won't seek the governor's office. Here's what Sen. Breaux said:
"I said I would be guided by the attorney general's opinion, and therefore will not be a candidate for governor," said the Democrat, who represented Louisiana for 32 years in Congress.That might be the most honorable decision that a Louisiana Democrat has ever made. In fact, I'd bet that it is.
Jim makes a great point in his post:
Breaux is the only Democrat considered able to compete with Bobby Jindal, so this is a big boost to the Jindal campaign.Jim, I totally agree. Count this as a GOP pickup in 2008.
Posted Sunday, April 15, 2007 10:50 PM
No comments.
Join the Free For All
The St. Cloud Times has posted my Your Turn editorial. Follow this link if you want to read the editorial. I'd also encourage you to create an account with the Times so you can comment on this & other editorials.
The subject of this Your Turn editorial is the DFL's tax increases, their spending increases & the effect both policies will have on Minnesota's economy.
I'd also strongly encourage people to take advantage of the Times' Right Now feature. Using Right Now, you can instantaneously write a 150 word 'letter to the editor' or LTE. If I understand it correctly, your 'Right Now' editorial is posted immediately.
I expect alot of criticism from the 'other side of the aisle' on this because I pointed out some pretty unpopular DFL policies/legislation. Welcome to the jungle, right? I can take it. The day I can't take a liberal's bloviating is the day I need to hang up politics. Thankfully, that day is nowhere in sight.
Posted Monday, April 16, 2007 1:36 AM
No comments.
Guess Who Came For Dinner
Senate candidate Al Franken paid a visit to the Kandiyohi County DFL Bean Feed fundraiser Saturday night. Here's some details from the article:
The Kandiyohi County DFL Bean Feed fundraiser drew more than 150 people to the Kandiyohi Community Center Saturday evening, raising more than $6,000. "It was our best bean feed fundraiser ever," said David Moody, Kandiyohi County DFL treasurer. He went on to say that the funds raised Saturday markedly eclipsed the local DFL's previous record.Here's an interesting Frankenquote:
Before coming to Saturday's fundraiser, Franken participated in a candidate debate in Granite Falls and later had coffee with Johnson in Willmar. Although Franken said he didn't get a chance to mingle with too many locals during his coffee break, "talking to Dean is a good substitute," he said.I'm curious what Mr. Franken means by that. Does he mean that talking with Dean Johnson, who sands off the truth, who can't remember if he asked a Minnesota Supreme Court justice about the issue of gay marriage, is a good substitute for talking with actual honest people? Or does Franken think that talking with Dean Johnson is the only way he'll impress west central voters?
Posted Monday, April 16, 2007 2:18 AM
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We Should Feel Lucky???
The Strib's Conrad Defiebre has written an article that is as insulting to people's intelligence as anything that Nick Coleman has written.
The new tax won in a landslide, attracting 116,000 more votes than that era's tax-averse Republican governor, Theodore (Tightwad Ted) Christianson. Months later, motorists started paying an extra 2 cents a gallon at the pump, the equivalent of 23 cents today.First of all, Mr. Defiebre accusing Tim Pawlenty of being a tightwad is laughable. The other thing that Mr. Defiebre doesn't say is that politicians have raided the transportation trust fund for other pet projects, that they've shortchanged the transportation needs. Shame on them for that. That's the price we pay for irresponsible politicians paying for their pet pork projects with money that was supposed to pay for roads.
Today the state's gasoline levy, at 20 cents a gallon, is not only lower than it was in the beginning, adjusted for inflation, but also lower than it has ever been in the intervening 82 years. But now, despite Gov. Tim Pawlenty's outspoken opposition, the state is poised to increase the gas tax for the first time in 19 years.
One possible reason: Minnesotans' historic support for transportation funding was echoed in November when 240,000 more citizens voted to earmark vehicle sales taxes for transportation than to reelect Pawlenty, Christianson's ideological descendant.
"There's a huge unmet need out there," said Margaret Donahoe, lobbyist for the Minnesota Transportation Alliance. "We think the gas tax makes the most sense because it is constitutionally dedicated for roads. I can't think of anything that's more of a user fee."Well, you certainly can't argue with what a lobbyist says. God knows that they wouldn't lie to anyone just to get what they want. The first thing that I'd ask is who pays Ms. Donahoe's salary. I just googled the MTA Here's what I found in the description:
A member-based coalition of groups, businesses, labor and local governments concerned about surface transportation in the state.In other words, it's partially funded by taxpayers, partially funded by construction companies. the organization advocates the spending of even more taxpayer dollars for roads. That's what I'd call a racket. Taxpayers paying for people to recommend spending even more taxpayer money.
Based on that information, I wouldn't trust Ms. Donahoe's recommendations without verifying a few things first. I think the old Reagan saying of "Trust but verify" fits there pretty well. What I find curious is that the Strib's 'reporter' would ask a lobbyist to tell us what we need. An advocate will always tell you that they need more than they're getting. That isn't reporting. That's citing people who issue talking points to politicians.
Pawlenty has suggested that if legislators want to raise the gas tax, they should consult the voters via another constitutional-amendment referendum. That couldn't happen until the next general election, in November 2008.Sen. Murphy, You're telling us that we're dealing with a Mount Everest-like disaster if we don't act immediately? What is that statement based on? Ms. Donahoe's saying so?
"We can't wait that long," said Sen. Steve Murphy, DFL-Red Wing, chief sponsor of the Senate transportation funding bill. "This is the Mount Everest of all budget areas in this state. Unless we all start climbing that mountain together, we're never going to get to the top."
Forgive me if I'm just a bit skeptical of Sen. Murphy's opinion. He's the guy that told us that he wasn't " trying to fool anyone ", that "there's a lot of taxes in this bill." Anyone that wants to pass a bill with "lots of taxes" in it when we're running a surplus is someone that I'm suspicious of.
Originally posted Monday, April 16, 2007, revised 14-May 10:45 PM
Comment 1 by Bill Kuisle at 16-Apr-07 10:52 PM
The unmet needs that the transportation folks are talking about are a joke. They asked every state DOT district, county, city and transit system to list every conceivable project they could dream up and then to estimate it's cost. This would be like giving social services everything they want. It would be like asking every college in the state what their needs are and then without scrutinizing it, say it is a must to have. There has been no independent scrutiny of these projects on the list and a good majority probably should not happen at this time and may never be needed.
Bill Kuisle
Former Chair of the MN House Transportation Finance Committee.
