To save us all some time, I have borrowed Erick Erickson's summary of Obama's SOTU (State of the Union) speech; and am adding the response from Average Joe, a typical US citizen.
Raise Taxes:
• “I have proposed a fee on the biggest banks.”
AJ: Targeting "bigness" is bad for business. and Who do you think pays those fees?
• “finally slash the tax breaks for companies that ship our jobs overseas”
AJ: Government minimum wage policies lead to this loss of jobs. Tax policy is not a solution. Eliminating wage interference is.
• “But at a time of record deficits, we will not continue tax cuts for oil companies, investment fund managers, and those making over $250,000 a year.”
AJ: These companies and individuals already pay higher than average taxes. To make it more difficult for them to hire people does not serve your jobs purpose.
Tax Cuts With Strings – Targeted, Not broad-based cuts:
• “new small business tax credit”
AJ: So, I have to downsize my business to qualify for credits? Why not give all businesses a credit?
• “eliminate all capital gains taxes on small business investment”
AJ: This makes no sense: Are you trying to make all businesses small?
• “provide a tax incentive for all businesses, large and small, to invest in new plants and equipment”
AJ: A good economy is all the incentive needed. No sense in adding tax complexity to it.
• “give rebates to Americans who make their homes more energy efficient”
AJ: Efficiency is its own reward. Giving rebates only subsidizes the window companies, and forces prices higher.
• “give those tax breaks to companies that create jobs in the United States of America”
AJ: An economy that creates jobs is one that is increasingly productive. Tax policy can only shift money from one pocket to the other.
• “That’s why we’re nearly doubling the child care tax credit”
AJ: How does subsidizing the child care outfits help the economy? It just raises the cost for everyone who does not "qualify" for this credit.
• “expanding the tax credit for those who start a nest egg”
AJ: Here's an idea, let people keep what they earn. That will get a lot of nest eggs going.
• “give families a $10,000 tax credit for four years of college and increase Pell Grants”
AJ: The cost of college tuition is already high enough. If everybody (but the so called "rich") has an extra 10,000 to play with, the cost of college will go up 10,000 dollars to keep pace with it. Supply and Demand.
• “we will extend our middle-class tax cuts”
AJ: Great! How do I get into this so-called "middle class"? Or do you really mean 95% of us, which amounts to a tax cut for less than half of us, and a free bag of money for the rest?
Regulation
• “We can’t allow financial institutions to take risks that threaten the whole economy”
AJ: Actually, they are the only ones who can deal with risk. But you must let them pay for their mistakes, too.
• “Require lobbyists to disclose each contact they make on behalf of a client with my Administration or Congress.”
AJ: Great, who's going to manage that database. The department of lobbyist review? Sounds like a good way to build your enemies list to me.
• “And it’s time to put strict limits on the contributions that lobbyists give to candidates for federal office.”
AJ: Limiting contributions? Didn't we just have an object lesson in freedom of speech this week?
• “urging Democrats and Republicans to pass a bill that helps to right this wrong [the Supreme Court ruling]”
I can think of a lot of bad law that came out of the Supreme Court. This is one they got right.
• “We are going to crack down on violations of equal pay laws – so that women get equal pay for an equal day’s work.”
AJ: This is a straw man, but a good way to get half your constituents mad at the other half.
Spending - General:
• “We need to encourage American innovation” (through “investment”)
AJ: How about stopping the spending so that capital can be released to the private companies that drive innovation?
• “launching a National Export Initiative that will help farmers and small businesses increase their exports, and reform export controls consistent with national security”
AJ: Sounds like another federal department to me. Let's get rid of a few hundred failed initiatives before adding more, shall we?
• “we will step up re-financing so that homeowners can move into more affordable mortgages.”
AJ: Why are you in the financing business? Mortgages should cost exactly what they have to in free market and fair competition.
• “jobs must be our number one focus in 2010, and that is why I am calling for a new jobs bill tonight.”
AJ: You called for a stimulus, and got Nancy Pelosi's Christmas list. Calling for a jobs bill will have a similar destructive result.
Spending Freeze and Reform
• “Starting in 2011, we are prepared to freeze government spending for three years. Spending related to our national security, Medicare, Medicaid, and Social Security will not be affected. But all other discretionary government programs will.”
AJ: A freeze at this historically high spending rate will continue the bankruptcy path we started on last year. How about dropping it 35% and then freezing it?
• “calling on Congress to publish all earmark requests on a single website before there’s a vote”
AJ: Sure, we can put it on C-Span.org
Spending - Education
• “When we renew the Elementary and Secondary Education Act, we will work with Congress to expand these reforms to all fifty states”
AJ: Of all the hare-brained things GWB came up with, you had to embrace this one. No child allowed to succeed.
• “urge the Senate to follow the House and pass a bill that will revitalize our community colleges”
AJ: This will remove community colleges one more step from accountability to their communities. Not a good idea.
• “And let’s tell another one million students that when they graduate, they will be required:
o “to pay only ten percent of their income on student loans,
AJ: Given that college age kids are the dumbest demographic when it comes to voting, it's not surprising you would try to bribe them.
o “and all of their debt will be forgiven after twenty years – and forgiven after ten years if they choose a career in public service.”
AJ: That means stringing the loan office along for 15 years, make payments for five, and then ditch the thing. Sounds like a good long term economics plan (for some).
Healthcare (Spending, Regulation and Taxes)
• “And it is precisely to relieve the burden on middle-class families that we still need health insurance reform.”
AJ: This puzzles me. Forcing my company to drop health insurance so that I will need to buy it on my own, putting me on rationing, and forcing my parents to face death panels relieves my burden how?
National Security
• We will have all of our combat troops out of Iraq by the end of this August.
AJ: Finally! A war that was over in 9 months. 8 years later, we come home. Bravo.
• “We will support the Iraqi government as they hold elections, and continue to partner with the Iraqi people to promote regional peace and prosperity. But make no mistake: this war is ending, and all of our troops are coming home.”
AJ: Send Al Gore's lawyers to oversee the elections. That will stir up some patriotism.
• “To reduce our stockpiles and launchers, while ensuring our deterrent, the United States and Russia are completing negotiations on the farthest-reaching arms control treaty in nearly two decades.”
AJ: Like with farm subsidies, you are incentivising the Russians to not do what they weren't inclined to do in the first place. Brilliant, if you are Russian.
• “That is why North Korea now faces increased isolation, and stronger sanctions – sanctions that are being vigorously enforced.”
AJ: My five year old does tantrums better than Kim Jong Il. Sanctions don't seem to stop him.
• “And as Iran’s leaders continue to ignore their obligations, there should be no doubt: they, too, will face growing consequences.”
AJ: So we'll keep letting the Russians sell them what they need? This sounds like a good deal for the Russians too.
• “This year, I will work with Congress and our military to finally repeal the law that denies gay Americans the right to serve the country they love because of who they are.”
AJ: So much for an all volunteer Army. I hope there's enough for a batallion.,
Immigration
• “And we should continue the work of fixing our broken immigration system – to secure our borders, enforce our laws, and ensure that everyone who plays by the rules can contribute to our economy and enrich our nations.”
AJ: Oh, okay, I agree with that one. That's one.
AJ: Are we done here? That's it? Wow. One idea we can embrace. Well. It's a start....
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