Fiscal Cliff Deal: $1 in Spending Cuts for Every $41 in Tax Increases

According to the Congressional Budget Office, the last-minute fiscal cliff deal reached by congressional leaders and President Barack Obama cuts only $15 billion in spending while increasing tax revenues by $620 billion—a 41:1 ratio of tax increases to spending cuts.

When Presidents Ronald Reagan and George H.W. Bush increased taxes in return for spending cuts—cuts that never ultimately came—they did so at ratios of 1:3 and 1:2.

“In 1982, President Reagan was promised $3 in spending cuts for every $1 in tax hikes,” Americans for Tax Reform says of those two incidents. “The tax hikes went through, but the spending cuts did not
materialize. President Reagan later said that signing onto this deal was the biggest mistake of his presidency.

"In 1990, President George H.W. Bush agreed to $2 in spending cuts for every $1 in tax hikes. The tax hikes went through, and we are still paying them today. Not a single penny of the promised spending cuts actually happened.”

CBO: 'Fiscal cliff' deal carries $4 trillion price tag over next decade

The Senate deal to avoid the "fiscal cliff" will add roughly $4 trillion to the deficit when compared to current law, according to new numbers from the Congressional Budget Office (CBO).

The CBO determined Tuesday that the package, hammered out late Monday evening by Vice President Biden and Senate Minority Leader Mitch McConnell (R-Ky.) would — over the next decade — come with a $3.9 trillion price tag.

The agreement, which is pending before the House after passing in a 89-8 Senate vote early Tuesday, would extend lower tax rates on annual household income under $450,000 and postpone automatic spending cuts for two months.

The extension of lower tax rates for a bulk of the nation's taxpayers and the addition of a permanent patch to the alternative minimum tax would add roughly $3.6 trillion to the deficit over the next decade, the CBO said. Other individual, business, and energy tax extenders would add another $76 billion. The extension of unemployment benefits would cost roughly $30 billion, and the so-called "doc fix" would tally another $25 billion through fiscal 2022.

The CBO says the budget agreement will lead to an overall increase in spending of about $330 billion over 10 years.

The combination of tax hikes and spending cuts that make up the fiscal cliff — if allowed to proceed — would improve the nation's deficit, but economic experts on both sides warn its dramatic impact would push the nation back into a recession if allowed to take effect in 2013.

http://thehill.com/blogs/on-the-money/economy/275095-cbo-fiscal-cliff-deal-carries-4-trillion-price-tag

Fiscal Cliff Deal: Hollywood Gets Tax Incentive Extension

The Senate passed legislation meant to end the "fiscal cliff" crisis in the wee hours of the morning. And it seems Hollywood's rigorous backing of President Barack Obama and his Democrat peers in the waning months of 2012 paid off.

Section 317 of the freshly approved legislation includes an extension for "special expensing rules for certain film and television productions." Congress first enacted production tax incentives favorable to the domestic entertainment industry in 2004, and extended them in 2008, but the deal was meant to expire in 2011.
The fiscal cliff deal extends the tax incentives through 2013--even as payroll taxes rise on ordinary Americans.

The original tax incentive applied to productions costing less than $15 million to make ($20 million in low-income areas). The 2008 extension applies to all films, up to a deduction of $15 million (or $20 million in low-income areas). The incentive is especially generous to television series; it applies to each TV episode.

Hollywood players routinely beg the government to raise their taxes so they can pay their "fair share."

Yet the industry moves new productions to places where existing tax breaks help its bottom line. That means plenty of shows and films are shot in states like New Mexico, which feature highly favorable tax rates, as well as destinations north of the border with similar perks.

Now Hollywood has used its clout to ensure that its generous tax incentives will continue in a time of fiscal crisis.

http://www.breitbart.com/Big-Hollywood/2013/01/01/hollywood-loophole-fiscal-cliff

The Greed Of An Obama Generation

So, this is what we get: no deal on spending cuts, a pay raise for Congress, and taxes for “the wealthy.” Are you kidding?!

1. Our tax dollars are paying for Congress to authorize more spending. There are two members of Congress currently seeking to rescind the pay raise, but I can guarantee the raise will stick.

2. No deal on spending cuts. No surprise there. Without giving money to their constituents, Democrats can’t get votes. As my Dad says: “Don’t give your drug-addicted uncle more money.” The more money you give to an addict, the more money they will spend. The government is addicted to spending, and they will not stop.

3. Higher taxes on “the rich.” Taking every penny from the wealthier among us would not make a dent in our debt, especially if we spend more–as Obama plans on doing. So, if it won’t make a dent, why raise taxes? To please the greedy, envious people who voted for him. Many who voted for Obama see him as Robin Hood; stealing from the evil rich, and giving back to the poor. What they don’t realize is that he is stealing from everyone, and giving to himself. This tax hike is a show for his constituents; it accomplishes nothing.
4. In addition to that, taking more money from “the rich” will only hurt us. With less money, the wealthy–otherwise known as job creators–will not invest, they will not hire, and the economy will tank again.
If you’re looking at this and thinking that it’s not much of a deal, you’re correct. The Democrats’ effort to avert the fiscal cliff is an effort to save themselves by placating a greedy generation. We still have politicians willing to push back. We need to support those people; lift them up, and elect those who would do the same.

We are still in a place where a turnaround is very possible, if we act. If we keep getting “deals” like the one we got today, greed will destroy us. Jacques Cousteau said it best: ”If we go on the way we have, the fault is our greed and if we are not willing to change, we will disappear from the face of the globe, to be replaced by the insect.”

http://lastresistance.com/904/the-greed-of-an-obama-generation/

Obama's New Economic Normal: Seven Devastating Facts

America is entering a new economic normal, a reality where almost everything that should be going up is going down, and everything that should be going down is going up.

The United States begins 2013 in uncharted economic waters; America has never been here before.
Consider, for example, these seven “firsts” for the U.S. economy:

1. All-time record annual average gas price: In 2012, the average cost of a gallon of gas eclipsed the previous record by nine cents, bringing the annual average to $3.60.

2. All-time record food stamp participation: As of last month, for the first time in American history, 47,710,324 individuals -- roughly one out of every seven people living in the United States -- now receive food stamps.

3. All-time high youth unemployment: In the last four years, average youth unemployment eclipsed the previous record rising to 17.5% -- the highest ever in recorded U.S. history.

4. All-time high number of Americans no longer in the labor force: Never before in U.S. history have so many been sidelined from the workforce. Today, a record 88,921,000 Americans are no longer a part of the U.S. labor force.

5. All-time record number of Americans collecting disability: Medical advancements and technological innovations have increased life expectancy and made workplaces safer. Still, the number of Americans collecting Social Security Disability Insurance (SSDI) has skyrocketed in the last four years. Today, a record 8,827,795 individuals collect a disability check averaging $1,130.34 a month.

6. All-time record number of Americans living in poverty: According to the U.S. Census Bureau, a record 46.2 million people in America are living in poverty, the highest number in the 53 years that the Census Bureau has collected the figure.

7. All-time record U.S. debt: The last four years have exploded the U.S. debt to levels never seen before in American history. Presently, the United States is $16,400,000,000,000 in debt.
Will America continue on its present economic trajectory in 2013? Here’s hoping not.

http://www.breitbart.com/Big-Government/2012/12/31/Obama-s-New-Economic-Normal-Seven-Devastating-Facts

Why the Journal News was Wrong About Publishing Gun Owner Information

In the aftermath of the Journal News' recent publication of the identity of every handgun license in two counties, their claim that it would be good for starting a dialog on gun ownership is proving to be very wrong. There is discussion, not about guns, but about privacy and what constitutes responsible use of public information. On a personal level, I feel far more vulnerable as a non-gun owner than I did a week ago. It is now easier to find me and target my home and family.

The defense the Journal News offers hinges on the fact that the data was public. But what the editors do not distinguish is the difference between making information available and crossing the line and aggregating that information. The JN is not an almanac. They did not report news. They made it.

Here's why.

I am a real estate broker. I am also a member of the Multiple Listing Service and have access to that database. The MLS has records of every home in 5 counties via a direct link to public records. Just by knowing your name or address, I can typically tell you what you paid for your home, what mortgages have been recorded on it, and if there are other liens or judgements on the property. It is all in public records, but the non licensed person would only have access to that information by going to the county clerk or paying a website, which can be pricey.

If I were to exploit my access to this information and publish on my blog, for example, everyone in Westchester with a mechanics lien or mortgage default, the backlash would be justifiably significant. My job is to use that information to serve clients, not enrich myself by distributing it. Information can be abused. Access does not make it right to aggregate.

I'll repeat that: access to public data does not make it right to aggregate and mass distribute that information.

In a society where property records and property ownership are transparent, that access to public records is a public good. However, that doesn't mean that access gives me or anyone else the right to distribute that information to anyone who would not otherwise seek it through the regular channels. All that does is feed the least common denominator who neither went to the clerk's office nor paid a reputable source for it. The same goes for gun records.

The cynical side of me makes me wonder if this was all just a ploy to be relevant. I haven't subscribed to the Journal News in years and stopped frequenting their website when they introduced the paywall. Now the publication is discussed coast to coast. Unfortunately, the discussion is not about gun ownership. It is about the paper's decision to distribute the data.

In an era where we all hope and pray that the 26 lost souls in Newtown did not die in vain, that is a very sad thing indeed. In light of their promise to publish the data on Putnam County, we should also remind them that their job is to report news, not be the news.

Just one last thing: I may not be in the database of handgun licensees (for now), but we do have a 95 pound German Shepherd.

http://bedford.patch.com/blog_posts/why-the-journal-news-was-wrong-about-publishing-gun-owner-information

Let’s Be Frank (O’Brien)

‘In essence, if you are Catholic in this country, you no longer can own a company,” Frank O’Brien explains.

O’Brien, a St. Louis refractory distributor, is one of more than 40 plaintiffs in a suit against the federal Department of Health and Human Services over its mandate requiring employers to provide workers with insurance that covers contraception, abortion-inducing drugs, and sterilization. This controversial Obamacare regulation threatens the religious liberty not only of Catholics trying to live according to their faith but also of evangelicals and others who object to any of these policies.

“By means of this law, the Obama administration has mandated that no Catholic can own a business and provide health insurance to their employees without incurring crippling fines,” O’Brien says. And it’s not only Catholics the administration’s regulation would keep inside churches. This posture is one that the Department of Justice has been defending in court, arguing that an individual makes a choice to put these religious-liberty claims aside when he decides to run a company. “Once someone starts a ‘secular’ business, he categorically loses any right to run that business in accordance with his conscience,” explains Kyle Duncan of the Becket Fund for Religious Liberty. “The business owner simply leaves her First Amendment rights at home when she goes to work at the business she built. Kosher butchers around the country must be shocked to find that they now run ‘secular’ businesses. On this view of the world, even a seller of Bibles is ‘secular.’” Among others fighting for their religious liberty in the courts on account of the HHS mandate is Mardel, an affiliate of the evangelical-run arts-and-crafts chain Hobby Lobby. Mardel sells Bibles and other Christian material, “but because it makes a profit, the government has now declared it ‘secular,’” Duncan points out.

The legal battle has been a roller-coaster ride, with some procedural victories for religious entities, including the Archdiocese of New York and Wheaton College. A three-judge panel has granted O’Brien’s Christy Industries temporary relief from having to implement the policy; this means that, for now, he’s spared from the crippling fines that come with noncompliance. O’Brien filed his lawsuit in March, and his request was dismissed in September. The temporary injunction issued in late November “marked the first time a Court of
Appeals has weighed in to any extent on an HHS-mandate case,” his lawyer, Francis J. Manion, of the American Center for Law and Justice, has noted. The injunction has given at least momentary hope to others, such as the Hobby Lobby arts-and-crafts chain. “It is a step in the right direction — only that,” O’Brien says. He emphasizes that the relief it provides is merely temporary. Without the injunction, he notes, “we must provide insurance for things that I and my church find abhorrent.”

Election-year rhetoric erroneously framed this debate about religious liberty and the nature of freedom as a war on women. With the passage of the season, O’Brien has the opportunity to inject a dose of sober truth into the public discourse on the matter. “The opposition posits that those on my side are trying to deny the right of anyone to use birth control,” he says. “We simply don’t want to be forced to pay for it, be a party to it.” A legal win for O’Brien is not going to affect access to contraceptives in the United States; his lawsuit is not a stealthy pro-life strategy to curb legal abortion. “I don’t want to know what my employees do in the privacy of their bedrooms,” he explains. “But when I am forced to pay for what they do there, I am brought into their bedroom.”

Even in the midst of a fight that could affect their livelihood, the O’Brien family is keeping things in perspective. “My wife and I started out poor,” he recalls. “So far, the worst that they can do to us is bankrupt us. We were happy when we were poor, and we would still be happy if we became poor again.” The O’Briens have faced worse — even this year. “Other than not understanding the other side’s logic on this issue, we don’t get too emotionally involved. Our 32-year-old daughter died of melanoma this year. Emotionally that was and is a much bigger issue for us.”

Still, the federal government shouldn’t be forcing the O’Briens to make a choice between paying exorbitant fines that will bankrupt them and violating their religious convictions. Frank O’Brien’s freedom to live by his faith in the public square is a freedom that everyone has a stake in defending.

“I believe that God gave me everything,” O’Brien tells me. “I will be judged as to how good a steward I was of the gifts that I have. A person should be the same person in church on Sunday that he is in his business on Monday. Each of us was given free will. I and my companies respect the right of others to have their own beliefs.”

O’Brien didn’t qualify for any of the relatively arbitrary exceptions to the HHS mandate, so he acted early to request relief. In a brilliant election-year move, the administration gave religious nonprofit organizations a little more time to figure out how to “accommodate” themselves to the mandate, to use the administration’s word — i.e., how to violate their conscience. One judge recently ordered HHS to report every 60 days until religious nonprofits have fully accommodated themselves to the mandate. If Catholic and evangelicals schools, among others, manage to win some legal relief, the Frank O’Briens of the country will still have a long, expensive battle on their hands.

“Regardless of anyone’s beliefs, I think that our customers will find it beneficial to do business with a firm that will treat them the way that firm wishes to be treated,” O’Brien tells me. It’s not a bad attitude to have in business. Good moral characters build healthy moral climates — not a bad thing, including in the economic realm where O’Brien and the Greens of Hobby Lobby operate. A little more good stewardship might keep us from future fiscal-cliff watches over Christmas.

“I see myself as just an individual struggling to be good,” O’Brien says. “I am not the smartest or most hard-working person I know. God gave me the opportunity to be the steward of my companies during my lifetime. I am simply trying to follow His will, as my conscience and church direct, to the best of my ability.”
Frank O’Brien can be a source of inspiration for those of us who tend to compartmentalize and keep our religious beliefs private. He’s got integrity in spades, challenging himself daily to live his faith authentically. This is someone to do business with! If our federal government doesn’t shut him down.

http://www.nationalreview.com/articles/336633/let-s-be-frank-o-brien-kathryn-jean-lope

P.C. P.E.: How the 'Participation Trophy' Culture Has Softened Our Kids

Once again, the politically correct mindset, which has led to the general decline of our nation's academic standards, seems to want to deprive this generation of its last chance to actually learn something of value in school. Apparently this view holds that by requiring zero percent of activity during P.E., none in the class will “feel” left behind or unnecessarily discouraged by the fact that fellow students may posses a talent or predisposition for athletics that a little Tommy or Sally lacks. As guided by a long-held tenet of the left, the playing field is being leveled by removing incrementally any and all games or potential activities that may expose a student to the harsh realities of the cold cruel world.

For example, not long ago, dodge ball was the school yard bully. Sent to permanent time out by several states in 2001, the most iconic of all school-time activities was deemed by many experts as cruel, dangerous, and counter-productive. They said the game destroyed self esteem and created an unfair hierarchy on the playground which trickled into the halls and loomed over the classrooms. The spin continued as they asked what are the physical benefits when the less-skilled and less-athletic of the lot are always eliminated first and, as a result, forced to sit idly on the sidelines?

Among these experts and their like-minded peers, nurture and not nature was, and is still, central to their philosophy. To be clear, no one wants to see a child get injured by the hand of a fellow classmate, but for most children, attempting to avoid a large red ball hurling at them should be instinctive. Moreover, the game is simple and the endless attempt to manipulate the rules so as to promote equal results cannot always protect a child from a negative experience or guarantee a “fun” time. In fact, what many of these experts fail to accept is that their inability to control outcomes reveals a their frustration with basic human nature because metaphorically speaking, in dodgeball, as in life, getting hit is inevitable. The ball stings and the experience is painful. You may be out of the game for a bit, but in the next round, there lies opportunity. We are Americans, and we are eternal optimists. The individual’s experience and his reaction to it reveals the differences which makes that person who that person is. For example, some will seek to improve, some will look to retreat, and some will continue to win. The idea of winners and losers, as put forth by most in academia, has no place in today’s schools nor in those of the future.
What these educators fail to see through the clouds of political correctness hovering over their ivory towers is that as games are played, character is developed and an awareness of one's self is learned. The lessons can be both tough and humiliating but on the other hand, they may also be instructive and necessary. Who could have imagined such a simple game could teach so much?

By denying a young student the raw opportunities to experience success and failure, to cope and adapt with adversity, or to lead and support a classmate, we will have to accept that individuals will no longer be telling personal stories because everyone’s will be the same.

As dodge balls disappeared from playgrounds, the apparent “victory” ignited a period of enlightenment that continues to this day. In what can only be described as a perpetual meeting of the minds, educators, child psychologists, federal bureaucrats, and many more of our best and brightest academics continue to band together to eliminate any traces of what could be considered a traditional P.E. curriculum or a typical hour of recess. For example, if a student is unable to jump rope, eliminate the rope and have him/her now simply jump in place. If a student is prone to being “it” in freeze tag, ban the game completely. If a student is hurt while running during recess, institute a “no running during recess” policy. There is no need to practice or attempt to improve, the adults minding the store will simply lower the standard. Moreover, what is happening in today's P.E. classes is that the priority seems to be for teachers to focus their time on collecting names, taking roll, and making sure everyone is included. Fortunately, there are certain P.E. teachers who still subscribe to a classic curriculum and, for that, we should all be thankful.
Ultimately, the "participation trophy" philosophy has crept further into our culture and now seems to be pervasive in many of our schools. This mentality is toxic. Gym and recess are the last hope to let kids be kids without liberals projecting their misguided beliefs onto a new generation. P.E. and recess have always been more than simply getting your cardio level to the acceptable federal standard or “feeling included.” It is a way to be introduced to participatory athletics, discover latent talents, and develop a healthy appreciation for the benefits of healthy competition. If a kid scrapes a knee, always gets picked last for games or first for teams, so be it.

On the playground or in the classroom, as in life, success is earned and not guaranteed. Despite their claims of advancing our children’s physical development with modern methods, proponents of political correctness have guaranteed, as evidenced by the statistics, that our children are more obese, less motivated, and will have a full trophy case.

Gym class has always been more than just about physical activity. It is about sports, and sports are about competition. A point further, what are sports and competition supposed to teach us? The answer is different for all of us. It is, however, an answer children need to learn on their own and without adults running interference.

http://www.breitbart.com/Breitbart-Sports/2012/12/29/Politically-incorrect-PE

From Glenn Beck:

This time of year, a lot of people look back over the past twelve months and evaluate some of the big moments of their life. Where did things go wrong? Where did things go right? What could I have done better? What were some of the unexpected surprises along the way? I could spend some time with you today looking back at 2012 - it was an incredibly eventful year - but I don’t feel like looking back today. On this New Years Day, I want to look forward to the future.

In 2013, all of us are going to have to make a commitment to stand up for our principles. Politicians and liberal pundits are saying that the President and his progressive agenda were given a mandate in November. The White House wants to “increase revenue” (AKA raise taxes), but they don’t want to take a serious look at the root of the problem: out of control federal spending. But WE know these problems aren’t going to be solved in Washington D.C., but in individual homes across the country.

And do you want to know the good news? I’m an optimist. I know the American people still have the resolve, the grit, and the willingness to make the hard choices to get through the tough times that are headed our way. Sure the progressives are making their push, but it’s going to be the people who value freedom and liberty that will be the light in the darkness.

In 1776, Thomas Paine wrote:

THESE are the times that try men's souls. The summer soldier and the sunshine patriot will, in this crisis, shrink from the service of their country; but he that stands by it now, deserves the love and thanks of man and woman. Tyranny, like hell, is not easily conquered; yet we have this consolation with us, that the harder the conflict, the more glorious the triumph. What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value. Heaven knows how to put a proper price upon its goods; and it would be strange indeed if so celestial an article as FREEDOM should not be highly rated.

These are the times that try men’s souls, and putting America back on the path of freedom may not be easy - but “the harder the conflict, the more glorious the triumph.”

So in 2013, what do we need to do?

First, you need to make a commitment. It’s going to be harder than ever to stand for liberty, freedom and small government in 2013. You need to be prepared to stand up and stand firm for the things that you know to be true.

Second, we need to align ourselves with like-minded people who really believe in the principles of freedom. If you look to the Constitution as a guide, you’re likely to find some allies. Why can I sit down with an atheist like Penn Jillette and find common ground? Because we both believe in the same basic principles of freedom and liberty that were part of this country's founding. I guarantee you, there are more people in this country who want small government and personal responsibility than those who don’t - you just need to seek them out and find that common ground.

Third, we need to take back the culture. I said it earlier this year - conservatives have all but given up on culture. I’ve been working with my company on some exciting new plans for next year and beyond that will see us injecting new art, music, and entertainment into the cultural sphere. But I can’t do this alone. If you’re a creator or an artist, you need to be out there creating your art, filming your movie, singing your song. And if you’re not an artist, you can support and share the work of people who are putting their work out there.

Fourth, you need to prepare. I am an optimist, but I also know that with the way things are going in Washington, things could get worse before they get better. Please, take the simple steps that you can. Store some extra food and water around the house just in case there is a storm or a natural disaster. Have a go-bag ready. Make sure your family knows a meeting point where you can all regroup in an emergency. I’m not asking you to go crazy, I’m just asking for basic preparedness.

Finally, in 2013 I want you to be an example. Talk to your friends and family about the things that you believe and know to be true. I’m not telling you to dress up like George Washington and go to every single Tea Party rally in your area. I am telling you to engage people who may not agree with you in a cordial and civil way. I am telling you to give money to a charity or your church so that they can handle the problems we don’t want the government involved in. I am telling you embrace personal responsibility. Have honest conversations. As important as it is to ally yourself with like-minded individuals, the biggest challenge we will face in 2013 is waking up the people who have been brainwashed by the progressives on television, in music, and in the classrooms.

If we don’t show our neighbors, and more importantly our children, a better path, then it’s going to be harder to turn things around. But I believe that we can put this country on the right track, and I believe that in 2013 we will.

I hope you and your family have a wonderful 2013.