Obama Buffet Tax Menu - Jobs Bill

Warren Buffett's Buffet

Bottom Line at Top: "Kill Jobs Bill"

Taxes on the Menu.... Time to Buy More Union Votes!

More Bailouts for Union Pension & Retirement Funds....

Obama urged Congress to pony up roughly $200 billion in taxpayer money to "provide more jobs for teachers [and] more jobs for construction workers" and "more money to carry out other state and local activities" like many unfunded states' pension liabilities like the ones in Illinois some experts peg at $3 trillion or that California has factored in as estimated liabilities up to $3 trillion, on the optimism of the assumptions made according to State Public Fund experts on unfunded states' pension liabilities like the California Public Employees' Retirement System (CalPERS) that provides retirement and health benefit services to more than 1.6 million Union members... Hello, General Motors Union Pensions Bailout!

AFL-CIO Union Management.... 

Special guests - AFL-CIO President Richard Trumka and Union Thug;   Antonio Villaraigosa (Left) Current Los Angeles Mayor, Former Union Organizer; Mark Mallory (Right) Cincinnati Mayor, Union Promoter are watching carefully as President Obama delivers his "Nationalized Federal Pro-Union Jobs Bill" Address to Congress.

Obama inviting his Union Bosses to sit in the "front row seats" to his Address to Congress, Obama urged Congress to spend more money even after handing out hundreds of billions of dollars for similar purposes as part of the 2009 stimulus package, as well as a score and more billion dollars again in 2010. 

 

Antonio Villaraigosa

These vast contributions to the coffers of state and local governments, though pitched as a jobs bill, are in reality the latest in a series of bailouts for debt-ridden state and local governments. They are of special benefit to states in the Blue Regions of the Country where the president's most fervent supporters reside. Antonio Villaraigosa sought to gain titular sovereign control of the second largest unionized school districts, the Los Angeles Unified School District, with final say on all decisions and he failed. Diversity also means future voters with a breakdown by ethnic group, 73% of its students were of Hispanic origin and 11% of its students were African American. White American students comprise 9% of the student population, while Asian American students comprise 4%; students of Filipino origin form 2% of the student population. Native Americans and Pacific Islanders together are less than 1%. LAUSD served 694,288 students, and had 45,473 teachers and 38,494 other employees. It cost $10,514.37/yr. per student to educate them. The total Los Angeles City School District budget for 2009-2010 is $7.3 billion. Only the New York City Department of Education has a larger student population and budget.

In Cincinnati, Ohio, Mayor Mark Mallory is mired in dubious political activities concerning the misappropriation of the legislative power of council by Mayor to keep Union members, 44 police officers, on the street. Not only is Mayor Mallory hurting the city fiscally, he is usurping the authority of council granted in the city charter.  In order to get more Union jobs, Mallory and the Obama Administration want to buy votes by building more bridges in the Cincinnati where many residents see no need, except to raise more Federal income taxes and to charge new toll road bridge use taxes which comes back to Washington, DC. A heavy Union members voter block in Ohio is really needed for Obama to win there in 2012 too!
     
In many Blue States, legislators have done what the Washington politicians do by running up extraordinary state debts. Nationwide, state debt is running around $3 trillion. If unfunded pension liabilities are factored in, estimated liabilities leap forward by Trillions plus, depending on the degree of optimism of the assumptions made by fund actuaries figuring pension returns and payouts.

The Bond Market.... 

The bond market has reacted accordingly. In a new study at Harvard's Program on Education Policy and Governance, why the Obama administration is so interested in helping out the Blue States with legislatures is that they are heavily Democratic and have a voter base of a highly unionized public-sector work force. They must pay interest rates that are often an extra half a percentage point higher than Red States. 

Specifically, a 20 percentage-point increment in either the Democratic share of the state legislature or a comparable increase in the share of the public work force that is unionized drives up interest rates by nearly a half a percentage point on a five-year security note. That amount is nontrivial. In Obama's home state of Illinois, it is costing Illinois intrastate governments over $700 million annually. The impact of these political factors on interest rates is in addition to the impact of standard economic factors, such as a state's unemployment rate, its gross domestic product growth, and its debt-to-GDP ratio, all of which are themselves shaped in part by the left-leaning state's political climate. 

In short, the bond market has concluded that: the more unionized the state and the bluer its political coloring, the riskier it is to hold bonds marketed by that state. 

Federal rescue of states is a dramatic departure from past practice. State bankruptcies date back to the 1840s when, amid a financial crisis, Pennsylvania, Michigan, Illinois and five other states discovered they had invested too heavily in infrastructure. The last state bankruptcy was in Arkansas during the 1930s. But overall the instances were few; in each case the federal government refused to come up with a fix.

Bankrupt states paid the price, but for the country as a whole, a system of fiscally sovereign states has proven incredibly beneficial to the nation's economic well-being. 

Tell Obama - "NO MORE BAIL-OUTS".... 

Federal fiscal bailouts put our federal system at risk. In essence, the national government is acting as if states are too big to fail. In the next financial crisis, the federal government may decide that states need to be treated like General Motors or, at least, be given ever bigger handouts of the kind the Obama administration seems committed to making.

~  REMEMBER... 

VOTE 2012!  ~