Congress is now set to approve the Obama Pelosi Reid debt plan, after trimming it down to a measly $789 billion dollars. Don’t worry, though. The total will still be well over a trillion once you factor in interest payments on all of this shiny nw government debt.
The reality is that the bill nothing but earmarks – leftovers from wish lists of days gone by. Since just about nobody has read the bill in it’s entirety, and the only really knowledgeable folks are the Democratic conference committee staff, we’re going to be hearing about waste, fraud, and abuse for years to come.
So, what do we get for our soon to increase tax burden? Well, we don't really know, since the Democrats have broken their promise (surprise, surprise) to post the thing online for 48 hours before holding a vote.
Payroll tax holiday to increase business profitability? Nope. The “average” payroll tax cut amounts to about $13 per week per worker, and drops to $8 per week next year. That’s because Senators Kerry and Reid can’t trust you with your own money. You might fritter it away on food, healthcare, or some other non-approved use, like saving for retirement.
Small business tax relief? Nope. Only about 1% of the total package goes to small business tax relief. On top of that, Forbes reports that the IRS has specifically targeted small and medium businesses for increased audit rates and penalties:
“ Unfortunately, while Congress and the Obama administration have ignored small business, one Washington institution is continuing to focus on the sector: the Internal Revenue Service. In a down economy, the IRS continues to focus on small and medium business, increasing the audit rates of small business, even while reducing audits on big businesses. (This is happening even though audits of small and medium business return far less per dollar to the Treasury than audits of large corporations or wealthy individuals.)”
If you're a small businessman, don't expect to get the same treatment that Democratic bigshots like Charlie Rangel, Timothy Geithner, Tom Daschle, and Hilda Solis received. You're paying the back taxes, interest, penalties, and possibly going to the Hotel Greybar, not just say “I forgot”, and cough up when it's convenient to do so. There's a plan for “Friends of Obama”, and another for everyone else.
What we will wind up with is high speed rail to Harry Reid’s Vegas. Politicians love passenger rail projects; they are nice, new, and, for the first couple of months, shiny. Plus, trains only run when the politicians schedule them, and only go where the politicians want. They also have the added benefit of losing money by the carload, meaning that the built in constituency of union workers will always be voting for more handouts. High speed rail pricetag: $8 billion.
And Nancy Pelosi will get $30 million for a mouse.