Tag Archives: Capitol Hill Daily

Has Obama Finally Gone Too Far?

By Floyd Brown

Obama Feeds America SC Has Obama Finally Gone Too Far?

Obama is having great political success by opposing wealth accumulation.

He’s doing it by attacking the rich. You might be a victim yourself!

According to the president, it’s unfair that some Americans have been able to stash away more money than others.

Now, based on information obtained by Capitol Hill Daily, President Obama’s latest move is likely to infuriate you.

His fiscal year 2014 budget – to be released this week – will target tax deductions associated with popular Individual Retirement Accounts, or IRAs.

These accounts are used by millions of Americans to reduce current taxes and augment retirement savings.

Under Obama’s proposed changes, a tax-preferred retirement account shouldn’t produce more than $205,000 per year.

Obama also wants to heap other major tax increases on the wealthy. (To him, the significant tax increases that were passed as part of the Fiscal Cliff deal in January weren’t steep enough.)

He’s demanding that Congress raise additional taxes and stop people from stashing away (what he considers to be) too much money.

Of course, this is just the beginning of the government’s latest actions to swipe money out from under us…

They’re Robbing Grandma, Too

The budget also includes significant cuts in Social Security benefits.

The cuts to Social Security include a sly reform called a “chained CPI.” This would change the numbers used to calculate the annual cost-of-living adjustment.

You see, the government currently uses the Consumer Price Index (CPI) to measure inflation. According to the Department of Labor, the CPI measures how much the cost of a “market basket of consumer goods” changes over time. That basket includes things like food, clothing, computers, and other consumer goods.

The new chained CPI adjusts the traditional CPI for potential changes in goods purchased as a result of price increases.

For example, with a chained CPI, the Labor Department would suppose that – if the cost of fish increases – you’ll likely choose to eat chicken instead. And when chicken prices go up, these all-knowing federal employees speculate that you might (again) choose a less expensive alternative.

As a result, they’re constantly changing the basket of goods to minimize the appearance and effects of inflation on government finances.

Yet this same deceitful move proliferates the impact of price increases on grandma’s social security check.

It Gets Worse: The Buried Taxes of Inflation

If you use U.S. dollars, then your money is taxed by inflation.

Here’s how…

If inflation is running at 3% – and you don’t get a 3% raise – you’re making less money in real terms by the end of the year.

Your money buys you less food, less gas, less real estate, and less anything than it did at the start of the year.

Translation? You’re literally poorer.

And not only are you paying more in prices, but you’re paying higher taxes on these goods, too…

That’s because inflation relentlessly pushes taxes up. When prices increase, the sales tax on all goods sold goes up as well.

When real estate prices rise, real estate taxes go up. When prices on imported goods increase, the duties and fees on these goods grow, too.

Makes sense, right? Well, it gets more complicated than that…

What most Americans

Source: FULL ARTICLE at Western Journalism

Washington, DC’s “Grand Bargains” Empty Your Wallet

By Floyd Brown

empty wallet SC Washington, DCs Grand Bargains Empty Your Wallet

Up on Capitol Hill, Congress has developed its own language. A language foreign to most Americans. Some common words have a totally different meaning up here.  If you closely watch the news or subscribe to specialty publications, you may know the definitions of these words. Otherwise, you can listen all day and never really know what is happening.

The language includes words like: mark-up, sequester, rules, third rail, or fiscal cliff.

My goal here at Capitol Hill Daily is to get you beyond the terminology and get you to the significance of any issue for you as an individual.

One of these terms so often used on Capitol Hill is “Grand Bargain.” Speaker of the House John Boehner desperately wanted a Grand Bargain to result from the fiscal cliff crisis. He failed miserably.

A Grand Bargain results when a President, House Majority Leader, and Speaker of the House of different parties come together to solve a major problem through accommodation and bipartisanship. The last Grand Bargain we remember was when Senate Leader Tom Daschle, House Speaker Denny Hastert, and President George W. Bush locked arms and pushed through the Medicare prescription drug benefit.

The media in Washington loves to cover a Grand Bargain. Grand Bargains offer the intrigue of secret negotiations. A Grand Bargain is never done out in the open. This type of inside-Washington horse trading could never happen if people could watch as their ox is being gored.

Now to have a real Grand Bargain, the people can only learn the specifics through coordinated leaks of favorable information; and then legislation, thousands of pages in length, magically appears and passes late that same night. God forbid someone actually read the bill or have full knowledge of what is happening.

Grand Bargains totally avoid the legislative process as it should happen. The regular order of business is straightforward.  A bill is introduced. Hearings are held about the proposal. The bill is debated in committee; then if the bill passes in committee, it is sent to the full Congress for a vote. This process takes months. Grand Bargains happen in hours and days.

Recently, Barack Obama has been pounding his teleprompter in the cause of a Grand Bargain.  His bargain would “avoid sequester,” “raise revenue,” “reform programs,” and “keep the recovery moving ahead.”

This time, roles are reversed; and John Boehner is ignoring Obama’s calls for a Grand Bargain.

Obama is worried about how the sequestering or cutting one trillion dollars from projected spending growth, which is automatic, will affect his favorite constituencies and the weak recovery. Republicans on the other hand are still hurting from the political whipping Obama unleashed on them during the fiscal cliff crisis. While they too don’t like to see the budget growth slowed, their willingness to raise taxes late last year has left them with unhappy constituents and a severe popularity problem. They aren’t about to raise taxes again.

So dreams of any Grand Bargain won’t come true. Instead, expect the automatic cuts to happen. And expect Barack Obama to be mad as a hornet …read more
Source: FULL ARTICLE at Western Journalism