Freedom Line Blog

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez. 

View more of Michael Ramirez’s cartoons on CFIF’s website here.

Human Events kindly provides the full text of Senator Marco Rubio’s speech at last night Jack Kemp Foundation ceremony bestowing on him its annual Leadership Award.

While the entire speech is a must-read, a passage on a specific health care reform struck this conservative as especially attractive:

In addition to promoting Flexible Savings Accounts, we should create a health insurance system that focuses on empowering people, not bureaucracy. People should be able to buy a health care plan that fits their needs and budget, from any company in America that is willing to sell it to them. And they should be able to buy it with tax free money, just like their employers buy it for many of them now.

That is, until Obamacare fully kicks in.  Since Obamacare’s regulations on employers only apply to full-time workers, there is a regulatory incentive to minimize the amount of full-time workers one employs.  In order to avoid either the stiff compliance costs or the steep penalties for failing to comply, employers are likely to increase the trend of laying-off workers, scaling back hours, or using contract workers in order to avoid the profit-killing expense of paying for all of Obamacare’s new required benefits.

Because of the entirely predictable response to Obamacare’s mandates, millions of American workers are likely to be caught in an employment trap where they work just enough at two or more jobs not to qualify as full-time employees with benefits.  If Republicans are unable to repeal Obamacare, then fixing the tax code to allow independent workers to buy affordable health plans with pre-tax dollars is one of the next best moves.  Marco Rubio seems poised to lead that charge.

Greta Van Susteren has the transcript of Rep. Paul Ryan’s keynote address to the Jack Kemp Foundation last night.  For fans of Kemp and his notion of The American Idea (i.e. broad-based economic growth, equal opportunity, and cultural renewal), Ryan’s speech is an inspiring formulation of Kemp’s program for the 21^st century.  An excerpt:

Americans are a compassionate people. And there’s a consensus in this country about our obligations to the most vulnerable. Those obligations are beyond dispute. The real debate is how best we can meet them. It’s whether they are better met by private groups or by government – by voluntary action or by government action.

And I would add that it’s about finding the most cost-effective way to meet those obligations so that they are financially sustainable.  This is critically important for at least three reasons.  First, it means that promises made to today’s beneficiaries can be kept.  Second, it means that tomorrow’s taxpayers won’t be left with the short end of the stick, being made to pay more than they receive in benefits.  And third, it frees up money; both in the federal budget for other worthy spending, and as a greater share of income retained by taxpayers.  Long-term federal entitlements are the real social contracts in our nation, and Americans owe it to ourselves – through our elected representatives – to reform the entitlement system to ensure its stability and fundamental fairness.

NBC News quotes U.S. Senator-Elect Heidi Heitkamp (D-ND) from a campaign debate on what she would say to President Barack Obama about his energy policy:

“You’re wrong on energy. You’re headed in the wrong direction. You made bad decisions,” she said, according to The Associated Press. “You promised that you would promote clean coal technologies, that you would be a champion of coal, and you haven’t done it.” She also urged the president to replace Energy Secretary Steven Chu and EPA administrator Lisa Jackson.

Certainly, that kind of independence helped Heitkamp eke out a win in a state Mitt Romney won by 20 points.  Now that she’s earned the right to speak her mind in the U.S. Senate, let’s see if she’s willing to make good on her promise.  With the coal industry staring at death by a thousand regulations, the sooner the better.

Forget the fiscal cliff negotiations.  If you’re a high-earning worker wondering if your taxes will go up in January, Reuters spotlights two new taxes coming your way courtesy of Obamacare:

The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.

The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.

The tax applies to a broad range of investment securities ranging from stocks and bonds to commodity securities and specialized derivatives.

The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.

Released late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals.

…

Together, the two taxes are estimated to raise $317.7 billion over 10 years, according to a Joint Committee on Taxation analysis released in June.

These two new taxes take effect January 1, regardless of whether President Barack Obama and Congressional Republicans agree to raise other taxes on high-earning Americans.

As the saying goes, if you want less of something, tax it.  You’d think liberals could see that taxing high-earners into extinction very quickly guts the very social programs Big Government types love.

I have always had extremely mixed feelings about Newt Gingrich, admiring much about him and being appalled by much about him. Usually, when he is NOT directly in the political arena he makes more sense commenting on the arena than he does as an actor in the arena. So it is with the passage quoted by Ashton below.

Here is the key part of that quotation: “At any point they wanted to, the President and the Congress could reduce the “cliff” to a series of foothills by breaking the problem into ten or twenty component parts. They could then focus on solving each problem on its own merits and out in the open with public hearings, public understanding and public involvement.”

Gingrich is absolutely right on this. Maybe he learned from his mistakes as speaker, when he repeatedly tried to put big packages together rather than break things into, yes, component parts. Not that it was all Gingrich’s fault, and not that I had much of an audience then, but as a leadership press secretary I talked myself blue in the face (I wasn’t important enough to have the ear of somebody who could do anything about it, I guess) complaining that we kept forcing all-or-nothing, edge-of-cliff battles rather than fighting and winning discrete skirmishes where we could stake out the high ground and dominate the field.

In fact, Republicans in 1995 were winning the budget battles until Gingrich let Bill Thomas talk him into including a tiny little Medicare “fix” in what had been a clean fight over Appropriations. Once that happened, Clinton was able to unleash his “Mediscare” campaign and seize the upper hand.

Way back in the early 1990s, New Orleans Mayor Sidney Barthelemy wanted to push through major tax reforms and other changes, and he put them into one huge package. At Gambit Weekly, we urged him to break it down into component parts and present a menu to the voters. He didn’t, and his initiative lost big. He came back the next time and did it our way, and got almost everything he wanted. And that’s what usually happens: Give citizens a chance to look at things in chewable bites, and common sense often wins. Try to make them swallow something massive, and they can’t grasp the whole thing, so they buy the liberal media narrative, whatever it is.

Anyway, I’m rambling here, but the point is that whatever Gingrich’s history — some of it excellent as speaker, some of it awful — he is right on target in the remarks cited above, and he should be listened to. Actually, I have a version of the “component part” idea waiting for this week’s column, already written.  Messrs. Boehner and McConnell really should take Gingrich’s advice.

Newt Gingrich nails the messaging misdirection being pushed by the fiscal cliff talk dominating Washington, D.C., right now:

The Left, both the politicians and the news media, have created a mythical threat which can only be solved by Republicans surrendering their principles and abandoning their allies.

Yet the fiscal cliff is entirely a manufactured threat.

The same people who are now negotiating worked two years ago to create the mess which they say is such a threat.

At any point they wanted to, the President and the Congress could reduce the “cliff” to a series of foothills by breaking the problem into ten or twenty component parts.

They could then focus on solving each problem on its own merits and out in the open with public hearings, public understanding and public involvement.

Public understanding, however, would limit the level of waste, favoritism, and special interests which could be funded.

That is exactly the opposite of what the Washington establishment wants.

Which is why the political process is so broken in our nation’s capitol.