Wednesday, January 21, 2015


President Obama's defiant State of the Union speech was classic Democratic strategy: never retreat, never compromise, and never give the opposing side the chance to claim victory. The fact is, for all the media nonsense about working together, nothing of real substance will get done because the President doesn't WANT to work with Republicans. You can't issue four veto threats, call for more tax increases after the voters repudiated them, and then pretend to 'reach across the isle.' What a joke.

No, Mr. Obama and his fellow Democrats want gridlock so they can continue to blame the GOP.

That's why the President told so many whoppers in the speech. When you declare something so that isn't, you know one thing: other folks won't agree with you. For example, the idea that the last decade has seen the warmest temperatures is statistically suspect and has been debunked by satelitte readings (see previous post below). The claim that women can legally receive unequal pay for equal work has been an out and out falsehood since 1963.

But the biggest lie that Democrats have been exploiting for years, and the one Obama predictably went back to as well, is the notion of the rich not paying their fair share. Doesn't matter whether it's the Tax Policy Center, the IRS, or the CBO, the data are clear and have been for decades: the wealthy pay a disproportionate amount of all taxes collected. The WSJ chart below highlights income quintiles (top 20%, bottom 20%, etc.) and what each pay in total federal taxes. Even it's front loaded, but if you look at just income taxes, well...then the top 1% pay nearly 40% of taxes collected and the bottom 47% (remember Mitt Romney?) pay nothing. that fair?

Of course, none of this explains why median incomes have fallen or why income inequality has widened during the Obama presidency. All it points out is that it's not due to tax policy. But if you're really looking to sock it to the fortunate few, the answer is not to regulate or tax them--it is to quit subsidizing them. Eliminate corporate bailouts, esp. on Wall Street; end renewable energy subsidies and, yes, farm programs for the well-to-do; stop the export-import bank from being reauthorized and say 'no' to Pentagon bloat and to publicly funded stadiums for billionaire owners. Finally, tell the Fed to let the cost of money for big banks rise to market levels so middle class savers can get a decent return on their savings.

Oops...just one problem. These are all polices supported by those very same Democratic politicians denouncing the top 1%. Well, isn't that 'rich.'

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