Conservative Party: Fiscal Cliff or Not, Higher Taxes Do Not Reduce Debt or Deficits

Dear Conservative Party Members/Supporters:

The Conservative Party understands that America is facing long-term and crippling debt problems that need common sense solutions based on sound economic/budgetary principles. Policies based on emotional political rhetoric and a failed leftist ideology, however, will only add to our growing $16 Trillion national debt, continue running annual deficits and hamper economic recovery.

Raising taxes on the productive elements of American society is counter-productive. That policy actually decreases tax revenues, stifles innovation and increases unemployment. That's because most people earning $250K/year (or more) are small business owners who are the key economic drivers. Even if we doubled income tax rates on those productive people, it would only generate enough revenue to run the government for 90 days.  

Enacting meaningful and sustained spending cuts across the board is the ONLY way to reduce debt and deficits. Base-Line Budgeting and Earmarks must be eliminated. All government programs must be reviewed and reformed, including Social Security, Medicaid and Medicare. Except for Defense and Homeland Security, all departments and agencies must cut spending by at least 5%/year for the next 10 years. Defense and DHS must freeze spending at 2011 levels for the next 10 years. Of course ObamaCare must be repealed or defunded. See CP-USA's Budget Roadmap for more details.

Americans should remember that all tax and spending Bills originate in the House. Not the President. Not the Senate. Since they control the House, Republicans have the power of the purse to defund any program or kill any tax hike. They just don't have the political courage to exercise that power. 

Raising taxes uses an emotional political tool ("fairness") to solve a fiscal problem (deficits). It's like using a rope to push a truck uphill. Meaningful spending cuts, however, are sound fiscal solutions that solve tough fiscal problems. 

Bottom Line: Retain current tax rates; close loopholes and cut spending.  It's better to fall off a $16T cliff now than a $20T cliff later.

---------------------------------

H. Michael Hervey

Chairman

Source: CP-USA

Johnson: $800 billion…or $800 billion?

 

Friends,  
Have you been watching the insanity in Washington about the so-called Fiscal Cliff?

If so, you are seeing the same thing I am:  It is all a concoction by the status quo politicians to distract us from the REAL cliff we are headed for.

To listen to the politicians in both parties, you would believe this is all about taxes.  Somehow, the nation is approaching financial calamity because the government isn’t getting enough of our money.  And the two “sides” have managed to create the illusion that the debate is over how to best increase “revenues”.  (In Washington, of course, increasing revenue means turning more of our dollars into THEIR dollars.)

Here is how the charade is playing out:  President Obama is demanding that the so-called Bush tax cuts be allowed to expire for what he calls the wealthy to produce $800 billion in more “revenue” for the government.  In what only a politician could call a negotiation, the Republican Speaker of the House has countered with an offer to – you guessed it – raise revenues (taxes) by $800 billion.

If this wasn’t so serious, it would be laughable.

The only difference between the two “sides” is what they want to call their plan for the government to suck almost another trillion dollars out of the private economy to finance their wars, their take-over of our health care, and the never-ending erosions of our freedom.

Obama wants to call this money-grab a “rate increase” for the wealthy.  Speaker Boehner wants to call it “closing loopholes”.  I’m not seeing the difference.  The money all ends up coming from the same place.  Ask a school teacher or a construction worker how many “loopholes” they used last year to reduce their tax bill.

So why are the grown men and women in Washington playing this ridiculous parlor game?  It’s simple. They don’t want to talk about the real problem: Government is too big and does too much – and therefore spends too much.  And they certainly don’t want to talk about REAL tax reform, such as scrapping the income tax altogether and replacing it with a consumption tax.  Without their spending and their loopholes and complex rates, the politicians would lose the opportunity to pass out favors to their friends – and that is not something they want to give up, even at the cost of destroying the economy.

Right now, we need to be demanding that the politicians stop the games and deal with the real issues:  Deficit spending as far as the eye can see and a debt that is already more than $16 trillion.  The claim by Obama – and bought into by the Republicans – that we can’t balance the federal budget without raising taxes is nonsense.  Stop the wars, have a serious debate about Medicare and other entitlements,  stop sending borrowed dollars to other countries, and spending can absolutely be brought into line with revenues – without raising taxes on anybody, rich or poor.

Restoring Liberty as a cornerstone of America starts with making government smaller.  And making government smaller starts with drawing a line and stopping the politicians from taking more of our money.  More money for them means more government imposed on us.

I’m ready to draw that line – and I hope you will join me.  Your contribution at www.GaryJohnson2012.com today will let me communicate the message of liberty on behalf of millions of Americans who are not today being heard.  The next three weeks, when the politicians will be making their deals, is critical.

Please go to the www.GaryJohnson2012.com today so that we can give voice to REAL solutions:  Cutting spending, cutting government and saying NO to more taxes.

The politicians in the White House and Congress won’t tell the truth, so we must!
 

Thank you,


Governor Gary Johnson  

GOV. GARY JOHNSON ON MAY JOBLESS NUMBERS: GOVERNMENT KILLING JOBS

Note: Gary Johnson holding a Money Bomb to commemorate his climbing Mt. Everest.  He will also be interviewed on The Daily Show with Jon Stewart.

Santa Fe, NM – Saying the May jobless numbers released Friday are “no surprise, given Washington’s refusal to cut spending and get out of the way of growth,” Libertarian presidential nominee and former New Mexico Governor Gary Johnson today called on Congress and President Obama to “take a break from the campaigning and deal with the fact that the federal government’s bankruptcy is killing American jobs.”

In a statement, Johnson said, “How many more Americans need to lose jobs, give up on finding jobs, or accept being under-employed for Washington to stop wringing their hands and do what obviously needs to be done: Cut government spending in a truly meaningful way, get the feds out of the way of growth, and fix a tax code that does all the wrong things?

“May’s reported 8.2% unemployment rate, while a disturbing number, does not reflect the real job crisis. Outside the Beltway, everyone knows the real jobless rate is much higher, with hundreds of thousands of Americans either giving up their job searches or having to settle for less than they need to support themselves and their families. We have been stimulated to death, with some in Washington calling for even more stimulus. Last year’s budget ‘deal’ that was supposed to cut spending has turned into a massive charade, and we have a level of federal debt that is rapidly heading to Greece-like levels.

“This crisis can be fixed. Imagine an economy where the government is not sucking more than a trillion dollars per year out of the private economy with its reckless deficit spending. Imagine a tax system in which employers and individuals alike pay zero taxes on income. And imagine an environment in which government regulators don’t wake up every day with new ways to kill jobs with unnecessary intrusions into the marketplace.

“With the right leadership and the courage to truly get government and its debt off the back of our real job creators – the private sector – we could see tens of millions of jobs created virtually overnight. Yet, Washington refuses to take the only steps government can take that will actually let America get back to work.”

During Gary Johnson’s two terms as governor of New Mexico, the state added more than 20,000 new private sector jobs, state government payroll was reduced by 1,200 workers, and taxes were reduced 14 times.

ICYMI Chairman Priebus: “Obama’s New Debt Record: Why We Can’t Afford a Second Term”

Excerpts from Red State

By Reince Priebus

March 19, 2012       

"As of today, the president who promised to cut the deficit in half has now racked up more new debt than any of his predecessors-and in less time.

"In 2008, Obama said 'I don't want to wake up four years from now and find out that our children's future was mortgaged by another mountain of debt.' But four years later, that's exactly what's he's waking up to.

"Instead of cutting the deficit in half, as promised, the president did the opposite. He created four record budget deficits-$1.4 trillion in 2009, $1.3 trillion in 2010, $1.3 trillion in 2011, and it is projected to reach $1.3 trillion in 2012.

"What have we gotten in return? A weak economy. A bloated government. A failed $831 billion stimulus. A job-killing healthcare bill. Loans to failed companies like Solyndra. An embarrassing credit downgrade.

"Today, the debt sits at $15.5 trillion and is greater than the U.S. GDP. Under Obama's budget, by the end of 2022, the total federal debt will reach $25.9 trillion...

"During the 2008 campaign, President Obama called adding $4 trillion to the debt 'irresponsible.' More memorably, he added, 'It's unpatriotic.'

"If $4 trillion in eight years is 'unpatriotic,' what is $4.9 trillion in three years?...

"In his Fiscal Year 2013 budget, the president has no comprehensive plan to cut the deficit. It called for more spending on top of more taxes. He has no plan to save Social Security, Medicare, or Medicaid-the major drivers of the debt...

"We can't afford to 'spend more,' and we cannot afford a second term of Barack Obama...

"Be sure to watch and share the RNC's new video, 'Mountain of Debt.'"

Click Here To Read The Full Op-Ed.

Ron Paul Issues Statement on CBO Debt Report

“The debt should be priority number one”

 

LAKE JACKSON, Texas – 2012 Presidential candidate Ron Paul released the following statement regarding the latest Congressional Budget Office report on the nation’s debt issues. See comments below.

 

“For the fourth year in a row, our federal budget deficit will exceed $1 trillion according to a new report by the Congressional Budget Office. In the report, the CBO tells us that the federal budget ‘remains out of balance throughout the decade’ and that the accumulation of debt, and the inevitable rise in interest rates will continue to increase the cost of financing that debt, digging us deeper into this hole.

 

“This news is the latest in an ongoing problem that I have tried to bring attention to my entire career. And now it seems more people are listening, but the Washington insiders who are supposed to be stewards of the budget are, if anything, only paying lip-service to the idea of getting this very real crisis under control.

 

“The debt should be priority number one, for everybody. It is for me.

 

“It should be a scandal that I am the only presidential candidate who is offering real solutions to our fiscal mess. My ‘Plan to Restore America’ cuts $1 trillion dollars in spending immediately and gets our economy on the way to much needed reform. But my proposal is rarely reported on by the elite media, and rarely even mentioned by my opponents or those who claim to be concerned about the financial health of our nation.

 

“Back in 2010, Chairman of the Joint Chiefs of Staff, Admiral Michael Mullen said that our debt is the greatest threat to our national security. And since he’s said that, things have not improved one bit. I firmly believe in a strong national defense, and I realize that if we do not take decisive action to deal with this debt crisis, we will not have much of a nation left to defend. That is why I offered my plan as a starting point to move toward solving this issue.

 

“There are some who believe we can simply tax ourselves out of this predicament, I disagree. It has been often repeated that Washington does not have a revenue problem, it has a spending problem. So, it doesn’t matter how much we raise taxes, if we do not cure our disease of overspending we will not end the vicious cycle of borrowing and printing well beyond our means.

 

“America is the greatest nation on earth, we have had the largest middle class, the greatest wealth, and greatest number of success stories the world has ever seen. But now we see our middle class shrinking, our wealth diminished, kids are graduating from college with no real job prospects, and we have become the world’s biggest debtor nation.

 

"So what I propose under a Paul presidency, is a path back to prosperity, back to a vibrant middle class, more success stories, greater wealth and opportunity for every American willing to do the work it takes to achieve. I plan to restore America to what it once was, and what it can still be.”

Ron Paul to Again Vote Against Debt-Ceiling Increase!

Paul’s rivals have voted for debt-ceiling increases and/or created a climate that begets more borrowing from foreign sources and taxpayers

 

LAKE JACKSON, Texas – 2012 Republican Presidential candidate Ron Paul is in Washington today, taking a brief hiatus from campaigning in South Carolina, to vote for a House resolution to deny President Obama a $1.2 trillion debt-ceiling increase.

Despite the federal debt now being equal to America’s GDP, Obama wants to exercise his option to again raise the debt ceiling as stipulated in a 2011 budget agreement that creates the mechanism for near-automatic sustained debt pileup.  Ron Paul is the nation’s number-one defender of the rights of taxpayers, who along with their children and grandchildren will trade their hard-earned wages for higher taxes and the coming inflation tax Paul warns about.

The notion that borrowing money from foreign investors and expanding government is necessary, in good times and bad, is a common theme among Paul’s rivals for the Republican nomination.

Newt Gingrich

Newt Gingrich while in the House voted to increase the debt ceiling in 1981 (H.R. 1553), 1983 (H.J. RES. 308), 1984 (H.R. 5953), 1985 (H.J. RES. 372), 1987 (H.J. RES. 324), twice in 1989 (H.R. 3024; H.J. RES 280), and twice in 1990 (H.R. 5350; H.J. RES. 681).

Gingrich also lobbied for Freddie Mac prior to the housing market collapse and lobbied for the individual mandate before the passage of Obamacare.  The resulting costly housing bailouts for lenders and GSEs that the Congress, and Presidents Bush and Obama approved have made debt-ceiling increases even more likely.

Specifically, Gingrich’s lobbying for Freddie Mac stymied a quicker housing recovery by ensuring that a market-wide price correction never occurred.  Rather, payments to his lobbying clients were his priority.  With lenders buoyed by Gingrich practices that support mal-investment, homeowners facing foreclosure lost the opportunity to renegotiate directly with lenders because the terms were pre-set by agreements between politicians doling out tax dollars and lenders holding the foreclosed at bay.  Unquestionably, the housing bailout for lenders – disguised as relief for homeowners – occurred because insider lobbying created it and borrowing was the funding mechanism.

Also regarding the former House Speaker, the growth in government Obamacare is causing thanks to Gingrich’s support for the individual mandate makes future debt increases certain as Americans discover that Washington traded the doctor-patient relationship for an unsustainable, entitlement program that will naturally require more borrowing to contain.

Lastly on Gingrich, he supported TARP – a transfer of overseas wealth to several large U.S. financial institutions.  TARP is a key driver of borrowing and debt, necessitating increased limits on borrowing.

If Gingrich were to continue with his spendthrift habits as a lobbyist – or worse, as President – there would be sanctioned increases in the debt ceiling and a climate of borrowing, simply to grow government, will thrive.

Rick Santorum

Rick Santorum while in the Senate voted to increase the debt ceiling in 1997 (H.R. 2015), 2002 (S. 2578), 2003 (H.J. Res. 51), 2004 (S. 2986), and 2006 (H.J. Res. 47).  Despite his deflections on the matter, Santorum is in fact a debt-hiker.

What’s more, in 2004 Santorum worked hard getting 10,000 votes to help Arlen Specter defeat fiscal conservative Pat Toomey in a race for a Pennsylvania U.S. Senate seat.  To be sure, Santorum has said in the past that he is “no longer a deficit hawk,” which bodes poorly for the American taxpayer left on the hook when Washington spends away the future.

In addition to voting in favor of increasing the debt ceiling, Santorum is antagonistic toward Right to Work protections that keep industry strong.  If Santorum supports the interest of organized labor above those of employers and individual workers, industries with a high instance of union membership will remain weak and always be candidates for bailouts.  More bailouts mean more borrowing, unless the U.S. Government has accumulated a sovereign wealth fund, linking Santorum’s hostility toward Right to Work laws with a culture of endless borrowing.

Santorum also supported TARP, contributing to his profile as someone willing to spend hundreds of billions of dollars in borrowed money when the opportunity arises.

Mitt Romney

As a left-moderate Massachusetts governor, Mitt Romney was the architect of a costly health care program that Obama gleefully calls the basis for Obamacare.  On a national scale, the President’s Romneycare inspired entitlement will require borrowing from foreign sources as the program becomes unglued from its presumed cost projections and spirals into insolvency.

As private employers continue to abandon their healthcare policies and direct workers toward single-payer exchanges, the federal government will institute a national healthcare system.  The private sector economy will weaken and revenue to pay for health exchanges will decline.  With the tax base further stressed, Washington will then shift to paying providers using borrowed money to meet annual requirements.

There is no logical reason to believe that Romney will succeed in repealing or defunding Obamacare if the program, in effect, is modeled on his own despite his declarations to do so.  In fact, Romney will fail to win over Republicans, independents, and disaffected Democrats if he gains the nomination because Obama’s highest achievement, popular with progressives, is in effect Romneycare.  Obama will be re-elected, he will levy threats about social security checks going un-mailed, and the borrowing culture will persist.

Lastly on Romney, he too supported TARP as a means of propping up the U.S. economy and preventing an economic calamity.  Neither happened, yet hundreds of billions of dollars were spent on this venture with the blessing of ostensible private-sector cheerleader Romney.

Ron Paul 2012 Campaign Position

“Ron Paul is taking the lead among his competitors in fighting for the interests of present and future taxpayers.  He’s going to Washington to reiterate his longstanding opposition to increasing Washington’s credit card limit merely to advance the status quo, to grow government, and to postpone the hard choices found in his ‘Plan to Restore America,’” said Ron Paul 2012 National Campaign Chairman Jesse Benton.

“Voters want to know exactly where Ron Paul’s rivals stand on the issue not only of directly increasing the debt through voting.  They want to know if their records illustrate longstanding contributions to an atmosphere that encourages borrowing in the first place.  One need only look to the records of Dr. Paul’s competitors Newt Gingrich, Rick Santorum, and Mitt Romney for an answer to this question,” added Mr. Benton.