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Monday, July 16, 2012

Mitt Romney’s defense budget target is lofty


March 19, 2012|By Michael Kranish


WASHINGTON - It is one of Mitt Romney’s most striking anecdotes. The US Navy, he says, has fewer ships today than in 1917, and the US Air Force is smaller than it was in 1947. Notwithstanding that today’s fleets are far beyond the capability of those from yesteryear, Romney says it is evidence that America’s military dominance is at risk.
Romney’s solution is one of the most far-ranging, expensive, and perhaps least understood of his campaign. He has vowed to commit at least 4 percent of the nation’s gross domestic product - $4 out of every $100 in the nation’s economy - to “core’’ defense spending, not including many war expenses.
The cost appears to be far greater than when Romney first broached the idea several years ago, when the nation was spending closer to 4 percent of GDP on defense. Under next year’s budget, defense spending is projected to be about 3.2 percent - yet Romney has stuck by his 4 percent vow. Put another way, that means Romney proposes spending 61 percent more than Obama at the end of a decade-long cycle, according to the libertarian Cato Institute.
Enacting such an increase at the same time that Romney wants to slash taxes and balance the budget could cost trillions of dollars and require huge cuts in domestic programs. As Romney’s website puts it matter-of-factly, “This will not be a cost-free process.’’
An examination of Romney’s plan, however, shows how difficult it will be for him to achieve his goal. Even some of Romney’s advisers, while saying the Pentagon increases are essential, said in interviews that political and budgetary issues would probably make it impossible for Romney to increase defense spending to 4 percent of GDP in a first year - and tough even in a fourth year - of a presidency.
“No president in the next administration could take the defense budget to 4 percent in the next year,’’ said Mackenzie Eaglen, a scholar at the conservative American Enterprise Institute who has advised Romney on the issue. “That’s not a hard number and anybody would be crazy to suggest it is. It would have to be a very slow ramp-up and they would be hard-pressed to even achieve a 4 percent base budget by the end of the first term.’’
James Jay Carafano, a defense expert at the conservative Heritage Foundation, said that even if everyone agreed on the first day of a Romney presidency to the 4 percent proposal, it probably wouldn’t be possible for several years due to lack of manufacturing capabilities. “If you look at the state of our industrial base, you couldn’t spend 4 percent on the military if you wanted to,’’ Carafano said. “People couldn’t build the ships and planes fast enough.’’
Romney has not been clear about when he would reach his goal of spending at least 4 percent of the nation’s economy on defense. His website describes a “floor of 4 percent’’ as a “goal.’’ His spokeswoman, Andrea Saul, said via e-mail that 4 percent is a “target.’’
In a statement, Saul said, “For his first term, Governor Romney has committed to reversing Obama-era defense cuts,’’ which she said would be “offset by cuts to other parts of the budget.’’ That suggests that Romney would not get to his target until a prospective second term.
Beyond the question of how and when Romney could achieve his goal is the broader debate about whether the nation’s military dominance is at risk, a subject that could be a major dividing line in a general election campaign.
Romney is correct in noting that core defense spending is slated to fall as a percentage of GDP if war costs are not included, analysts said. Obama has proposed a 2013 Pentagon budget of $525 billion, a $6 billion cut from a year earlier, according to the Office of Management and Budget. Romney has vowed to restore the cuts and increase spending.
But Obama campaign officials said that calculating the spending as a percentage of the nation’s economy does not tell the whole story, noting that, after next year, the defense budget is slated to increase in dollar terms.
“Thanks to the president and his foreign policy accomplishments, our nation is stronger and more secure than it was when he took office. The bottom line remains the same - we have the strongest military in the world and that won’t change,’’ Obama campaign spokesman Kara Carscaden said. She said that Romney’s proposal for spending 4 percent of GDP on defense is an “arbitrary’’ figure that shows he is “pandering to his Republican base . . . without giving a reason for the increase.’’
But Romney has said the military need is paramount. He has said the Pentagon is so devastated by cutbacks that the country risks losing its status as the preeminent power in the world. Indeed, a Gallup Poll released last week found that only 54 percent of those surveyed believe the United States has the world’s leading military, the lowest ranking in 13 years.
While proposing the increased spending, Romney has portrayed himself as perhaps the most hawkish candidate in the field.
He has vowed that Iran won’t have a nuclear weapon if he is president, and has questioned Obama’s timetable for withdrawing US troops from Afghanistan.
Speaking to voters recently in Michigan, Romney said that Obama’s cuts would leave the military decimated, citing as proof a comparison to decades ago.
“I’m not willing to pass on an America where the military has been shrunk by this president - where we’ve gone from the capacity to fight two wars down to only one - with a Navy that’s smaller, with an Air Force that’s smaller,’’ Romney said. “I mean, do you know the state of our military? I mean, do you realize we have fewer ships in our Navy than any time since 1917, and yet this president wants to slow down the purchases of ships? Do you know our Air Force is older and smaller than any time since 1947, when it was formed?’’
Politifact, the Pulitzer-winning fact check website, recently gave Romney’s assertion that the military is being decimated its lowest “truth-o-meter’’ rating: “pants on fire.’’
While the site did not quibble with the ship and plane numbers that Romney cited, it echoed a number of independent analysts in noting that today’s sophisticated fleets can’t be compared to those of many years ago.
“Romney’s numbers simply don’t add up,’’ said Paul Pillar, the CIA’s former national intelligence officer for the Near East and South Asia.
Like a number of analysts, Pillar questioned how Romney can increase defense spending so dramatically while also promising to slash the deficit.
Christopher Preble, who analyzes defense issues for the Cato Institute and has studied Romney’s defense proposal, said it is misleading for Romney to suggest that the US military strength is at risk by comparing today’s military to that of long ago.
“We are spending roughly half of the military spending in the world. So presumably he is looking at polls and I guess expects that people will reward him for pledging to maintain a military second to none, skipping past the unfortunate truth that we already are,’’ Preble said. “At a minimum it is misleading and it does raise questions about the governor’s understanding of this problem.’’
Romney, in citing his figures on ships and planes, relied upon a report written by Eaglen, who outlined the information in a 2010 study that she wrote for the Heritage Foundation. Her study said that the Navy had 245 ships at the end of 1916 and had 283 in 2009.
It is not, of course, an apples-to-apples comparison. The Navy of 1916 did not even contain a category for aircraft carriers, while the current fleet has 11.
Asked in an interview if it made sense for Romney to compare today’s fleet to the number of ships from nearly a century ago in making his argument for increased military spending, Eaglen said that it is appropriate as long as context is provided.
She said it should be obvious that ships and crew are more capable than years ago, but said it is also true that more ships are needed to cover the earth’s waters.
“One ship, one aircraft, or one brigade can only be in one place at one time around the world,’’ she said. “So even with sophisticated technologies and people in the military, numbers still matter. A lot of deterring is achieved through physical presence of these assets. Quantity has a quality all its own.’’
Romney, on his campaign website, suggests that the current fleet should be expanded by 44 ships, although he does not commit himself to that number.
Similarly, Romney said the country needs to increase the number of aircraft as well as military personnel, all of which would require heavy new expenditures.
Romney’s challenge could be even greater if Congress fails to pass legislation this year that reverses further cuts that are slated to go into effect.
Under a process known as sequestration, the defense budget could be cut over a 10-year period beginning next January by about $500 billion, which Defense Secretary Leon Panetta has opposed on grounds it would have a “serious impact’’ on maintaining national security.
Those cuts are slated to be automatic because last year’s congressional supercommittee on the deficit failed to reach a budget deal.
The matter could wind up being one of the first issues faced by whoever is elected president this November.


 




Democrats Mock GOP For Protecting Own Health Care In Repeal Vote

Posted:  Updated: 07/16/2012 10:13 am

IF IT's SUNDAY.....IT's MEET THE PRESS



Visit NBCNews.com for breaking news, world news, and news about the economy



Meet the Press

Romney adviser talks about the business of outsourcing

  Romney campaign’s senior adviser, Ed Gillespie, tells NBC’s David Gregory that Mitt Romney thinks businesses “should be free to make decisions in the interest of their shareholders.”

Roundtable debates Romney’s business background

  President of Americans for Tax Reform Grover Norquist, NAACP President Ben Jealous, GOP strategist Mike Murphy, Democratic strategist Hilary Rosen, and the Washington Post's Bob Woodward discuss the strengths and liabilities of Mitt Romney’s time at Bain Capital.

Meet the Press

Obama campaign on the attack

  Assistant Democratic Leader Sen. Dick Durbin says Mitt Romney needs to provide greater disclosure of his financial statements and Assistant Republican Leader Sen. Jon Kyl argues the attacks from the Obama campaign are baseless.
Meet the Press

Child sex abuse scandal tarnishes Paterno legacy

  NBC Sports’ Bob Costas weighs in on the fallout of the Penn State scandal and how it will affect Joe Paterno’s legacy and the school's football program.

PRESS Pass: Sigourney Weaver on 'Political Animals'

The actress discusses her latest character's resemblance to Secretary of State Hillary Clinton.

Sunday, July 15, 2012



Chronicling Mitt's Mendacity, Vol. XXV

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Getty Images


After more than six months of marveling at Mitt Romney's propensity for falsehoods, I have to admit it was unsettling to see his campaign's new attack ad, launched yesterday. The spot accuses President Obama of making "untrue" claims about Romney shipping jobs overseas -- Obama's claims are actually quite credible -- and concludes that the president is running a "dishonest campaign."
Think about that for a moment. The candidate whose entire campaign has been built on one falsehood after another, the candidate whose dishonesty is routinely characterized as "almost pathological," the candidate whose near-constant lying puts him in a league of his own among modern politicians, is complaining that his rival is taking liberties with the facts.
There's dishonesty in politics, and then there's meta-dishonesty in politics.
Romney's spokesperson this week declared, "America deserves ... a president who's willing to tell the truth." That seems more than fair. Perhaps the Romney camp can reevaluate that demand after reading the 25th installment of my weekly series, chronicling Mitt's mendacity.
1. In an interview with Fox Business Network's Neil Cavuto, Romney insisted, "Obamacare is killing jobs."
There is literally no evidence to support this claim in any way.
2. In the same interview, Romney, asked about his tax returns, said, "We have of course released all of the financial statements that are required by law and then released two years of tax returns."
Actually, he's only released his tax returns for one full year. Two years wouldn't be enough, but it'd be an improvement.
3. Romney also told Cavuto, of the existing disclosure, "So tax information is there and other financial disclosure is there."
I wish that were true, but the whole point of the recent controversy is that "other financial disclosure" isn't there. We learned about his shell corporation in Bermuda based on one year's tax returns, but we don't know what other disclosures exist because Romney has kept previous returns hidden from the public.
4. Also on Fox Business, Romney said his tax disclosures include "the same information" John Kerry released during his 2004 campaign.
That's plainly false. During his presidential run eight years ago, Kerry released five years of tax returns, and during his Senate campaigns, made a habit of releasing several years' worth of tax documents as part of a commitment to disclosure.
5. Criticizing President Obama's tax-cut plan, Romney said the proposal constitutes "a massive tax increase."
Well, that's obviously a subjective matter, but in reality, 98% of Americans would get a tax cut under the plan. [Update: Commenter VeryVerySad reminds of an important point: 100% of Americans would get a tax cut, but 2% of Americans would pay slightly more on income above $250,000.]
6. Attacking the same plan, Romney said the White House plan "is the sort of thing only an extreme liberal could come up with."
"Extreme liberals" aren't the only people who can think of middle-class tax cut, and there's really nothing "extreme" at all about the president's proposal.
7. At a town-hall meeting in Grand Junction, Colorado, Romney claimed Obama is "putting money into energy companies, solar and wind energy companies that end up making their products outside the United States."
Every aspect to this claim is patently untrue.
8. At the same event, Romney claimed, "This president has increased the rate of new major regulations by about threefold over his predecessor."
That's false. Obama approved fewer regulations in his first three years in office than Bush did in his first three years.
9. Romney added, "I'm going to look at all the programs we have in government and ask this question: Is this program so critical to America that it's worth borrowing money from China to pay for it?"
At a minimum, that's misleading. The implication here is that U.S. debt is financed by the Chinese, but this isn't true -- China only holds about 8% of the nation's debt.
10. Romney went on to say he's "going to get rid of ObamaCare" so the government won't have to borrow more money.
According to the nonpartisan Congressional Budget Office, the Affordable Care Act will save over $100 billion over the next decade, and over $1 trillion in the decade after that. Romney has it backwards -- we would need to borrow more money if he does "get rid of Obamacare."
11. He added that "dreams are being crushed when taxes go up and up and up on job creators."
Taxes haven't gone up; they've gone down. In fact, Americans' federal tax burden has down and down and down, reaching a 30-year low after Obama cut taxes in 2009.
12. At the same event, Romney said the Affordable Care Act "cuts Medicare by $500 billion."
Romney says this a lot. He's not telling the truth.
13. He also said "no, no, no" to the notion that he would "cut" Medicare.
Romney endorsed Paul Ryan's House Republican Budget plan, which ends the Medicare program and replaces it with a private voucher scheme.
14. In response to a question about the tax code, Romney argued, "For me ... this campaign is about the middle class, and about the poor. It's not about the rich. The rich are going to do fine, whosever elected."
First, Romney intends to give the wealthy a massive tax cut (while they keep their existing massive tax cut). Second, Romney said in February he's "not concerned about the very poor."
15. In his speech to the NAACP, Romney went off-script and said, "You know, there was a survey of the Chamber of Commerce. They carried out a survey of their members, about 1,500 surveyed. And they asked him what effect Obama care would have on their plans and three-quarters of them said it would make them less likely to hire people."
That's not what happened. The Chamber, a pro-Republican lobbying institution heavily invested in helping Romney, put up an unscientific online survey. Treating this as a legitimate poll of businesses is fundamentally dishonest.
16. Responding to an interview the president did with CBS, Romney argued, "President Obama believes that millions of Americans have lost their homes, their jobs and their livelihood because he failed to tell a good story."
Based on what Obama actually said, there is no universe in which that makes any sense at all.
17. Romney's campaign claimed that health care premiums "are $4,893 higher per family than President Obama promised" in 2008.
The claim is both deeply foolish and completely untrue.
18. In a speech in New Hampshire, responding to the new jobs report, Romney complained, "The highest corporate tax rates in the world do not create jobs."
American corporations do not pay the highest tax rates in the world.
19. Describing economic policies that would improve matters, Romney added, "Opening up new markets in Latin America. The president hasn't done that in three and a half years -- no new trade agreements."
I don't know why Romney keeps telling this lie, but he does.
20. In the same speech, Romney added, "Failing to effectively crack down on China for cheating and stealing American jobs -- that has not helped."
Obama has already cracked down on China in ways Romney doesn't seem to understand.
21. Romney went on to say, "The president's policies have not gotten America working again."
22. Asked about his lack of specific ideas on the economy, Romney argued, "I don't think I've seen any from the president that -- that show what he's planning on doing."
Romney doesn't have to like the American Jobs Act, but he shouldn't get away with brazenly lying about its existence.
23. In response to a reporter's question about health care, Romney said, "You know, I've spoken about health care from the day we passed it in -- in Massachusetts and people said, is this something that you'd apply at the federal level? And I said no."
He's clearly not telling the truth.
24. Commenting on his plans to eliminate the deficit, Romney argued, "What I describe in my plan is a series of changes to programs and elimination of programs which save more and more money over time, so we're able to get America to a balanced budget in eight to 10 years -- not in the first year, but eight to 10 years."
There's overwhelming evidence to the contrary. Romney says his plan "can't be scored," but independent budget analysts have found his agenda would make the deficit bigger, not smaller, and add trillions to the national debt.
25. At a fundraiser in Montana, Romney told supporters, "The great majority of small business -- 54% of American workers work in businesses taxed as individuals. So when the president wants to raise taxes on individuals as he's proposed from 35% to 40%, he kills jobs. If your priority is crushing people, vote for him."
Only about 3% of American small businesses would be affected by the higher rate, and there is literally no evidence to suggest Clinton-era top rates on the wealthy "kills jobs."
In conclusion, Jay Rosen argued yesterday that Romney and his team appear to be running a "post-truth" campaign, working under the assumption that the media isn't equipped to report the lies. It's a story that's "too big to tell."
It's a fair point, and with just 115 days until the election, it's a dynamic well worth watching.

Wildfire threatens dozens of homes in Northern California


A wildfire burning in a steep canyon between the towns of Colfax and Foresthill in Placer County, Calif., destroyed one home, threatened 170 more and injured nine firefighters, the Los Angeles Times reported, citing fire officials.
Cal Fire officials said Saturday that the Robbers Fire has burned 1,950 acres since igniting Wednesday afternoon, and was 20 percent contained. More than 1,900 firefighters are fighting the fire.
Gov. Jerry Brown on Friday called in more firefighters and the California National Guard to help battle the fire.
Officials said they fire had moved into a rural subdivision Saturday evening known as Brushy Canyon, and three strike teams were being deployed to protect homes in the area, NBC station KCRA reported.
The area is in Placer County, west of Lake Tahoe.
Ken Pimlott, the state fire director, said a two-year reprieve from wildfires in the region appears to be over.
"The exceptionally dry winter has set the stage for a more active fire season this year, and we're seeing fire activity now that we would typically not see until late August," he said in a statement.
This article includes reporting by NBC station KCRA of Sacramento and The Associated Press.

Good clean fun at the Boryeong Mud Festival

14
hours
ago


Lee Jae-Won / Reuters
A tourist reacts as he plays in mud during the opening day of the Boryeong Mud Festival at Daecheon beach in Boryeong, about 190 km (118 miles) southwest of Seoul, on July 14. About 2 to 3 million domestic and international tourists visit the beach during the annual festival, according to the festival organisation.

JEON HEON-KYUN / EPA
Festival visitors are covered with mud during the 15th Boryeong Mud Festival on Daecheon beach in Boryeong City, 190km west of Seoul, South Korea, on July 15. During the festival period, tourists flock to the area to experience the beneficial properties of the Boryeong mud, as well as for entertainment. Fully immersed in the mud, visitors enjoy mud wrestling, mud sliding and even swimming in the mud mega tub. Boryeong Mud Festival runs from July 14 until the 24.

JEON HEON-KYUN / EPA
Festival visitors are covered with mud during the 15th Boryeong Mud Festival on Daecheon beach in Boryeong City, 190km west of Seoul, South Korea, July 15 2012.

Saturday, July 14, 2012

Five major ObamaCare taxes that will hit your wallet in 2013

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    June 28, 2012: Supporters of President Barack Obama's health care law celebrate outside the Supreme Court in Washington. (AP)
While the individual mandate tax gets most of the attention, the ObamaCare law actually contains 20 new or higher taxes on the American people. These taxes are gradually phased in over the years 2010 (with its 10 percent “tanning tax”) to 2018 (when the tax on comprehensive health insurance plans kicks in.)
Six months from now, in January 2013, five major ObamaCare taxes will come into force:

1. The ObamaCare Medical Device Manufacturing Tax

This 2.3 percent tax on medical device makers will raise the price of (for example) every pacemaker, prosthetic limb, stent, and operating table. Can you remind us, Mr. President, how taxing medical devices will reduce the cost of health care? The tax is particularly destructive because it is levied on gross sales and even targets companies who haven’t turned a profit yet.
These are often small, scrappy companies with less than 20 employees who pioneer the next generation of life-prolonging devices. In addition to raising the cost of health care, this $20 billion tax over the next ten years will not help the country’s jobs outlook, as the industry employs nearly 400,000 Americans. Several companies have already responded to the looming tax by cutting research and development budgets and laying off workers.

2. The ObamaCare High Medical Bills Tax

This onerous tax provision will hit Americans facing the highest out-of-pocket medical bills. Currently, Americans are allowed to deduct medical expenses on their 1040 form to the extent the costs exceed 7.5 percent of one’s adjusted gross income.
The new ObamaCare provision will raise that threshold to 10 percent, subjecting patients to a higher tax bill. This tax will hit pre-retirement seniors the hardest. Over the next ten years, affected Americans will pony up a minimum total of $15 billion in taxes thanks to this provision.

3. The ObamaCare Flexible Spending Account Cap 

The 24 million Americans who have Flexible Spending Accounts will face a new federally imposed $2,500 annual cap. These pre-tax accounts, which currently have no federal limit, are used to purchase everything from contact lenses to children’s braces. With the cost of braces being as high as $7,200, this tax provision will play an unwelcome role in everyday kitchen-table health care decisions.
The cap will also affect families with special-needs children, whose tuition can be covered using FSA funds. Special-needs tuition can cost up to $14,000 per child per year. This cruel tax provision will limit the options available to such families, all so that the federal government can squeeze an additional $13 billion out of taxpayer pockets over the next ten years.
The targeting of FSAs by President Obama and congressional Democrats is no accident. The progressive left has never been fond of the consumer-driven accounts, which serve as a small roadblock in their long-term drive for a one-size-fits-all government health care bureaucracy.
For further proof, note the ObamaCare “medicine cabinet tax” which since 2011 has barred the 13.5 million Americans with Health Savings Accounts from purchasing over-the-counter medicines with pre-tax funds.

4. The ObamaCare Surtax on Investment Income

Under current law, the capital gains tax rate for all Americans rises from 15 to 20 percent in 2013, while the top dividend rate rises from 15 to 39.6 percent. The new ObamaCare surtax takes the top capital gains rate to 23.8 percent and top dividend rate to 43.4 percent. The tax will take a minimum of $123 billion out of taxpayer pockets over the next ten years.
And, last but not least...

5. The ObamaCare Medicare Payroll Tax increase

This tax soaks employers to the tune of $86 billion over the next ten years.
As you can understand, there is a reason why the authors of ObamaCare wrote the law in such a way that the most brutal tax increases take effect conveniently after the 2012 election.  It’s the same reason President Obama, congressional Democrats, and the mainstream media conveniently neglect to mention these taxes and prefer that you simply “move on” after the Supreme Court ruling.
John Kartch is director of communications at Americans for Tax Reform. Follow him on Twitter @JohnKartch.


The MPS Cast of Characters

Posted by Tengrain May 16th, 2012
We are frequently asked for a cheat-sheet of all our favorite players. So, just because we love the Scissorheads best of all, here is the list. It will probably be updated frequently.
  • Admiral Weiner – George Will
  • The Aquah Budha = Rand Paul
  • Blam-Blam = Dick Cheney, from when he shot the old guy in the face
  • Black Walnut = Herman Cain. He gave himself this nickname, btw.
  • Blue-eyed Snidely Whiplash Wannabee = Paul Ryan
  • The Boreal Narcissus = Sarah Palin, also known as Mooselini
  • Boss Hogg = Former MS Governor Haley Barbour; married to Madame Hogg
  • Brisket® = Bristol Palin; the ® is because she registered her name as a trademark.
  • Chimpy McStagger = President George Dubya Bush
  • Chinless Mitch = Mitch McConnell
  • Dancin’ Dave = David Gregory, so named because famously, he got on stage and danced while Turdblossom rapped. The horror, the horror!
  • Doughy Pantload = Jonah Goldberg; not mine, but by universal acclaim
  • Frothy = Rick Santorum; also sometimes called Pope Sanctimonious I
  • Gomer = Mike Huckabee, secret squirrel frier; married to The Gomerette
  • Grandpa Walnuts = Senator John McCain
  • The Human Hindenburg = Rush Limbaugh
  • Junkie Limbaugh = Rush Limbaugh
  • Malkkkin = Michele Malkkkin
  • Mistress Condi = Condoleeza Rice, whom we suspect of being a secret dominatrix. Her slave is The Worm Hadley.
  • Mooselini = Sarah Palin, also sometimes The Boreal Narcissus
  • Newticles = Newt Gingrich
  • Orange Crush = John Boehner because of his peculiar color. Also known as Weepy
  • Our Lady of the Immaculate Cheesecake = Katherine Jean Lopez
  • Peggington Noonington = Peggy Noonan
  • Petunia (and Pals) = Gretchen Carlson and the Fox and Friends cast of buffoons and circus freaks
  • Pope Sanctimonious I = Rick Santorum; also sometimes called Frothy
  • Saint Ronnie = Ronald Reagan
  • SoyBlo = Meghan McCain; short for Soylent Blonde
  • Traitor Joe = Joe Lieberman
  • Turdblossom = Karl Rove, not mine: Chimpy McStagger nicknamed him this.
  • Tweety = Chris Matthews
  • Uncle Goldbug = Ron Paul, because of his stance on hard money
  • Weepy = John Boehner, who cries a lot; sometimes known as Weepy McDrunky because, well, he’s a notorious drunk; also sometimes known as the Orange Crush because of his peculiar color.
  • Willard, The Willard Mechanism = Willard Mitt Romney
  • The Worm Hadley = former national security advisor Stephan Hadley, whom we suspect was the submissive to Mistress Condi’s dominatrix.

Don't be fooled, Americans are starting to embrace ObamaCare

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    June 28, 2012: President Barack Obama speaks in the East Room of the White House in Washington after the Supreme Court ruled on his health care legislation. (AP2012)
Watching President Obama's response to Thursday's Supreme Court decision upholding the constitutionality of his health care reform law, I could not help but think how different things would be if he had given the same speech two years ago.
He began his remarks from the White House by saying the Court had “reaffirmed a fundamental principle that here in America -- in the wealthiest nation on Earth -- no illness or accident should lead to any family's financial ruin.”
Reaffirmed?
If you ask most Americans, they will tell you the president and his party never made that point in the first place. All the talk was about “Cornhusker Kickbacks” and “Chicago-style politics,” to win votes in Congress. GOP critics hammered the plan as a “big government takeover” and “socialism.”
But with last week’s Supreme Court ruling in favor of the health care plan public opinion on the plan is starting to become more favorable.
On Sunday Reuters released a poll showing 48 percent of registered voters now back the bill. That is up five percent since the ruling. That includes a bump in support among independent voters from 27 percent to 38 percent.  And even opposition among Republicans, who overwhelmingly hate it, went down five percentage points from 86 percent to 81 percent.
And those numbers are likely to keep rising. Also, GOP critics are now on the defensive. They have to talk about specific benefits in the law and how they could do better if they repeal the law.
That is going to be hard for Republicans once Americans personally start reaping the benefit of the law.
Here are a couple of reasons why I say this:

First, the parts of the president's health care law that have already been implemented are actually very popular. And Americans tell pollsters they don't want to see them taken away.
Clear majorities of people say they want insurance companies to cover those with pre-existing conditions, they want children to be able to stay on their parent's health insurance until they are 26 or find a job, they don't want insurance companies dropping people's coverage when they get sick or hiking up their premiums. If you poll senior citizens and ask them if they like saving money on their prescription drugs, they say they do.
Second, while it is not a majority there is still a significant percentage of Americans people who say they oppose the law because they think it doesn't go far enough. They wanted a public option or single payer.
For example, a New York Times/CBS News poll released in early June found that 37 percent of Americans believed the law went too far, while 27 percent said not far enough and 25 percent said about right.
When you delve deeper into the numbers 26 percent of those in opposition thought the law was about right or wanted the government to go even further – they wanted a Medicare type program to cover all Americans regardless of age.

One of the main reasons for opposition to the bill was the mandate for everyone to have health insurance or pay a tax/penalty equal to cost of an insurance premium.
Mitt Romney understood the necessity of the individual mandate when he was governor of Massachusetts. That is why he made it the centerpiece of RomneyCare.
Though he disowned it during the 2012 GOP primaries, RomneyCare has been a monumental success. The Bay State currently has the best insurance coverage rate of any state in the union – with 100 percent of all children in the state covered and 98 percent of all residents.
The Obama campaign would be wise to point this out as they message their health care victory between now and November.
The Court’s decision also means that the other good provisions of the Affordable Care Act will be allowed to stand.
As the president pointed out in his speech, 13 million Americans or their employers who provide health insurance will be receiving a rebate check from their insurance companies this summer. The new law requires insurers to spend 80 percent of their money on insurance and not on administrative overhead and bonuses to their CEOs.
Seniors citizens will also receive a discount on their prescription drugs, which the president noted has already saved more than 5 million Medicare beneficiaries about $600 each. By 2020, the law will fully close the Medicare part D coverage gap – commonly known as "the donut hole" – saving seniors even more money.
Americans enrolled in Medicare Part C – or Medicare Advantage -- have seen their premiums lowered by 16 percent since 2010, giving seniors access to inexpensive, quality health care. Their premiums will continue to be lowered once the law is fully implemented.
People concerned about fraud in Medicare should also applaud the Court’s decision. Due to new enforcement powers given to the Departments of Justice and Health and Human Services, $4.1 billion in fraudulent Medicare claims were stopped in 2011. This constitutes the largest sum ever recovered in a single year from individuals and companies attempting to defraud the American taxpayers. Look for a continued reduction in the incidence of Medicare fraud in the coming years.
Now that the president has demonstrated that he is willing to explain the benefits of the law to the American people, those numbers are pliable – they can be moved between now and the election.
Chief Justice John Roberts has not only given ObamaCare the imprimatur of constitutionality, he has given the president license to brag about his bill on the campaign trail.
Juan Williams is a Fox News political analyst. He is the author of several books including "Enough: The Phony Leaders, Dead-End Movements, and Culture of Failure That Are Undermining Black America--and What We Can Do About It" and "Muzzled: The Assault on Honest Debate.


ObamaCare ruling destroys perfectly good teaching tool for tax professors

Published June 29, 2012


As Father Guido Sarducci used to remind us, everything you remember from college can be taught in 5 minutes.
And he wasn't kidding.
Within those 5 minutes are little sparks of knowledge.  They originate from a good teacher who imparted upon us something so simple yet profound that it made an indelible mark on our memory, causing us to never forget it.
One of these sparks I recall from law school came from a professor who taught his students how to identify when a tax occurs: “A tax occurs on a transfer of money.  Picture a government hand.  There are times when a buyer transfers money to a seller, interrupted by the government hand grabbing the money in the middle, taking out its share then handing the balance to the seller.”
This definition of a tax occurring only on a transfer of money has served me well because the definition has never failed me.
A review of Black’s Law Dictionary’s definition of tax shows a variety of taxes, all of them first requiring a transfer of money or value:  Income tax, payroll tax, consumption tax, estate tax, capital gains tax, gift tax, franchise tax, gross receipts tax, severance tax, tariffs, excise taxes on fuel, liquor and cigarettes, licenses and surcharges all involve obvious transfers of money.
User fees tax the transfer to the consumer of that which is being used.
Ad Valorem taxes in manufacturing are levied upon the transfer of a product whose value has been increased.
Even real estate taxes, a form of ad valorem, occur when realty is transferred (though more insidious than others in that the transfer is then taxed each year, the amount of tax rising and falling with the value of the property which is tied to the transfer of money being gained or lost).  Real estate taxes are also user fees assessed for the transfer of benefits like snow removal, garbage removal, etc.
Every tax has at its core the prerequisite of a transfer of money or value.
Thanks to the ObamaCare ruling, not transferring money or value may now be taxed, the precise opposite of what a tax has been in the history of jurisprudence.
The dissent laments the scant words used by Chief Justice Roberts on the issue, and all that can be found is the following, surely to win this year’s circuitous argument award:

“Sustaining the mandate as a tax depends only on whether Congress has properly exercised its taxing power to encourage purchasing health insurance, not whether it can.” [Emphasis in the original]
In other words, Congress did it, therefore we assume they can do it.  Can you say, unchecked power?
What is left out of that analysis is what a tax “is.”  Let’s break Roberts' argument down.  The question of “whether Congress properly exercised its taxing power” was answered in the affirmative by the Chief Justice based upon nothing more than the collection agent being the IRS. As the Chief Justice said specifically, he is not deciding the issue of whether Congress “can” do this; he’s merely recognizing they did.
Why leave open the issue of whether the Congress “can” do this?  Because that would require defining what a tax “is.”  This clearly not being a tax (as Roberts ironically finds in the first part of the decision to avoid the Anti-Injunction Act) the answer would have been that Congress clearly “cannot” do what they did.  Roberts’ reasoning can be stated thusly:  “Congress did it, therefore it is done.”
The most succinct words from the dissent about this is an affirmation that what Congress and the Chief Justice have done has never been done before, centered on this being a penalty not a tax (exactly as the Obama administration contended, and as Roberts found in the beginning of this schizophrenic decision that finds on one issue this is a penalty an on another issue it is a tax):
We never have classified as a tax an exaction imposed for violation of the law, and so too, we never have classified as a tax an exaction described in the legislation itself as a penalty.
While the definition of tax and how to identify a tax has now been set upon its head, far more damage has been done to individual liberty.
Congress may now tax you for not doing what it wants you to do. Somehow, that’s not a penalty so long as the IRS collects the money.  It is a tax.
The Democrats who constructed this new power suffer from the “Good King” delusion.  They see their ends – universal health care – as so good that it justifies giving themselves the power to retard liberty and direct individual behavior.
The problem, of course, is never with the “Good King,” rather the “Next King.”  What sort of behavior will the Next King, the one we don’t know yet, compel us to do with this new power to direct our behavior against our will?
Tommy De Seno is editor of JustifiedRight.com and  is a practicing attorney. He writes frequently for Ricochet.com