Sunday, July 31, 2011

Soak the Rich, Week 13

Senator Sherrod Brown (D-OH) has a Progressive’s grasp of economics: corporations are evil, and bureaucrats could micromanage the world to perfection with just a little more money. Though Sherrod – like President Obama – isn’t specific about his approach to sustainable big government, what if we used the class-warrior’s dream scenario of doubled corporate income taxes and fully “reclaimed” CEO pay? Starting with just the 2011 deficit of $1.62 trillion, how fast could we balance the budget with a little extra from the kings of the S&P 500 index?

Shown below: the 2011 federal budget deficit, and the 5.894% slice that would result from dramatically increasing taxes on twenty-six of America’s largest employers (view source workbook). That’s a reduction from $1,620,000,000,000 to $1,524,512,443,940.

Even if soaking a few hundred more corporations could cover the remaining 94.106% of the 2011 deficit, would it be worth it?

Of course it would! As any Progressive will tell you, raising taxes on The Rich has no negative effects. Among the things that won’t happen if Sherrod Brown and President Obama tax their way to the chart above:

  • None of the corporations’ 5,241,561 employees will lose their jobs.
  • None of the corporations’ products or services – health insurance, prescription drugs, medical devices, food at supermarkets & restaurants, gasoline, business & consumer lending, construction equipment, air travel, shipping, national defense, cell phone service, broadband access, fast food, the thousands of items available at Amazon.com & Wal-Mart, toothpaste, diapers, detergent, baby soap, Band-Aids, movies, television, newspapers, computer software, iPods, laptops, servers, networking equipment, etc. – will get more expensive.
  • None of the funds or individuals holding the corporations’ 64,042,800,000 shares of stock will be ruined… unless they deserve it!
  • None of the world’s entrepreneurs or executives will stop investing in American businesses.

It’s a good thing raising taxes is an all-around win... otherwise, Ohioans would need to start looking for a senator with more sense than Sherrod Brown!

"Like" Soak the Rich on Facebook, and follow me on Twitter: @jasonahart

Cross-posted at that hero.

Saturday, July 30, 2011

Bi-Partisanship Redefined

On Friday, the current occupant of the White House made a plea/threat to the GOP, under the guise of "Bi-Partianship." And yet he has essentially called all Republican deficit reduction/debt ceiling plans dead on arrival. Pretending to be the "adult in the room," Obama fails to talk about the failure of the Senate to advance a budget, a deficit reduction plan or debt ceiling plan that has passed the Senate. In essence, Obama is a back seat driver, criticizing everyone else's work. It's clear to me that Obama wants to transfer ownership of the economy to the GOP. That's understandable given the multiple failures due to Obamanomics - historic deficits, debt, historic weak economic growth coming out of a deep recession, and low job creation resulting in high unemployment. Obama wants both parties to work together, saying that "putting party first is over." And yet his "grassroots election group" Organizing For (against?) America emailed the following comments a few hours after the call for the two parties working together.

2012


Imagine you got to be a fly on the wall in a closed meeting of the House Republicans yesterday.

Would you hear sober talk of the solemn responsibility our representatives have? Or empathy for those having a tough time in this economy?

No. You'd hear one freshman Republican tell his colleagues to "put on your helmet, buckle your chinstrap, and knock the sh** out of 'em."

This group thinks holding our economy captive is a game.

But right now Congress is running out of time to reach a resolution to this debt crisis before Tuesday's deadline -- or put our economy and American jobs at risk. President Obama has called on both sides to compromise and get this thing done -- and he's asked all Americans to contact their representatives and tell them to do their jobs.

"If you want to see a bipartisan compromise -- a bill that can pass both houses of Congress and that I can sign -- let your members of Congress know," the President said this morning. "Make a phone call. Send an email. Tweet. Keep the pressure on Washington, and we can get past this."

So let's do this.

If Congress fails to act, millions of seniors may have to go without the Social Security checks they rely on. Veterans may not be able to get their benefits. We could lose our AAA credit rating.

President Obama has made it clear from the beginning that he will work with Republicans and Democrats to find a balanced, responsible approach to dealing with the nation's debt.

What's not clear is whether the fringe ideological faction on the other side refuses to come to the table because they're genuinely unwilling to give an inch, or just because they think they can benefit politically from appearing that way. Either way, they need to be reminded that Americans know the stakes and want them to compromise and get the job done.
------------------------------------------------------------------------------------------------------------------------------------------------
The American people elected the current House to a job. They are doing their job against great odds (no control of Senate, White House). This might be the defining moment of our generation. If we cannot confront our out of control spending and put America back on a path to fiscal responsibility, when will we ever do it? Obama repeatedly says that the government needs to "Live within it's means." What does that really mean when Obama is looking for a higher credit limit on the American (paid for by taxpayers) credit card? Enough with the rhetoric Obama. Enough with pretending that the GOP is the problem. YOU are the problem.

Friday, July 29, 2011

House Passes ANOTHER Debt Ceiling Bill

Not that it matters to the handout-junkies and bureaucracy-lovers who make up the Democratic Party's base, but the House has passed a second bill to extend the federal debt ceiling. In case you've forgotten, the House is controlled by the Grand Old Party of No, and the world is going to end if the debt ceiling isn't raised by Tuesday.

Here's the president's Treasury Secretary on the need for an extension that runs through Obama's reelection campaign:

"The most important thing is that we remove this threat of default from the country for the next 18 months," Geithner said in an interview with CNN's "State of the Union" program. "You want to take this out of politics."

Emphasis mine; this could be the Freudian slip of the year. Democrats don't want to take the politics out of the debt ceiling fight - they want to take the debt ceiling fight out of the nation's political conversation. Eventually, voters will realize President Obama's fix is higher taxes, and Senator Reid's fix is gutting the military.

Isn't it funny how, time and again, the adults in Washington demand policies identical to the far left's? Let's review:

  • World ends without debt ceiling increase
  • House Republicans pass Cut, Cap & Balance bill
  • Reid, Obama say Cut, Cap & Balance is DOA
  • Obama pushes for tax hikes
  • Reid suggests slashing defense spending
  • House Republicans pass Budget Control Act of 2011
  • Reid, Obama say Budget Control Act of 2011 is DOA

As I said this morning, compromising sucks when the other side is nuts, but this is what House Republicans have to deal with.

A debt ceiling compromise beats the prospect of a second Obama term by a landslide the size of Texas. I'm glad Congressman Stivers, my representative in the House, voted for the Budget Control Act of 2011. I'm glad Speaker Boehner, my parents' representative, worked to create a bill the shameless demagogues in the Senate and White House might be forced to pass.

Official releases on the Budget Control Act of 2011 follow. From Stivers:

“I supported Speaker Boehner’s bill because it cuts spending and changes the way that Washington works. It puts caps on spending and moves America toward a balanced budget. A default could result in economic disaster including higher costs for car, student and business loans as well as mortgages; it could result in lower stock prices; higher gasoline and import costs and higher unemployment. This scenario is unacceptable and moving forward Members of both parties need to work together toward reaching an agreement on the debt ceiling to prevent a default.”

From Boehner:

Thanks in part to your support, this evening the House passed an important bill to cut trillions in spending and end our debt limit crisis.

It’s the second time in the last two weeks that the People’s House has spoken. Twice now, we’ve passed legislation to cut trillions in government spending, avoid a job-crushing national default, and advance the cause of a balanced budget amendment to the Constitution.

In contrast, Washington Democrats have done nothing. They refuse to put a plan on the table. In fact, it’s been 821 days since the Democrat-run Senate has passed a budget.

Let me be clear, our bill isn’t perfect, but it’s a positive step forward, carefully negotiated in a good faith effort to find a solution to the current crisis.

Now it is time for the Senate to act. The Senate must pass the House bill and send it to the President for him to sign into law. There is no excuse for inaction.

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Boneheadedness

Since I cheered on Speaker Boehner a week ago, I feel compelled to offer some support to Congressman Jordan today - although, to paraphrase a great motivator, my support and a nickel will get you a hot cup of jack squat.

In the debt ceiling debate the GOP is fighting demagogues who live and breathe class warfare, and would sing the virtues of increased spending to the point of bankruptcy. It's understandable that, given the circumstances, tensions have been high between conservative Republican Study Committee (RSC) leader Jim Jordan and Speaker Boehner.

Was it dumb for an RSC staffer to send out a list of Republicans targeted for supporting Boehner? Probably; I've seen some annoyingly divisive GOP vs. GOP messaging the past couple of days. But, I doubt it would be easier for Boehner to sell a compromise if Jordan and fellow conservatives were quick to abandon Cut, Cap & Balance.

I can say confidently that feeding anonymous quotes like these to reporters is a bad call:

Two Republican sources deeply involved in configuring new Ohio congressional districts confirmed to The Dispatch today that Jordan's disloyalty to Boehner has put him in jeopardy of being zeroed out of a district.

"Jim Jordan's boneheadedness has kind of informed everybody's thinking," said one of the sources, both of whom spoke only on condition of anonymity. "The easiest option for everybody has presented itself."

[...]

"He doesn't know it, but he solved a problem for Republican line-drawers by (figuratively) standing up and saying, 'I'm a jerk and I deserve to be punished,' " said one of the sources.

[...]

"The downside of being in an uber-safe district is you often don't develop the strategic skills you need to survive in the arena and in this case that is going to be painfully evident to Jim Jordan."

Are there really two GOP insiders who don't realize this plays perfectly into the leftist narrative of principled conservatives as extremist cranks? Fortunately, Boehner and Jordan appear capable of acting like adults after the RSC email debacle:

"Jim Jordan and I may not always agree on strategy, but we are friends and allies, and the word retribution is not in my vocabulary," Boehner said. "I look forward to continuing to serve with him in the U.S. House after the redistricting process in Ohio is complete."

Meghan Snyder, Jordan's spokeswoman, said, "We would hope that standing strong in favor of lowering spending and balancing the federal budget would not be a reason to eliminate the district of a sitting member of Congress."

Yes, compromising sucks when the other side is nuts, but the Senate and the White House would be happy to keep spending until the whole contraption caves in. Let's not rush to shoot ourselves in the foot while Harry Reid and Barack Obama have America's military over a barrel!

[Update: Corrected a (boneheaded?) typo in paragraph two.]

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Wednesday, July 27, 2011

A Tale of Two Ballot Measures

With yesterday’s news that the Secretary of State has certified more than 425,000 signatures supporting The Healthcare Freedom Amendment, it’s official – the November ballot will include a referendum on Obamacare’s key mandate. This is excellent news for Ohioans, and less-excellent news for Progressive advocates of big government.

The amendment, championed by the Ohio Liberty Council and other conservative groups, has found support among Ohio’s GOP establishment – which is finally recognizing the old Democrat-lite agenda as a dead end. In addition to being unaffordable, guaranteeing rationed care, and limiting Ohioans’ health care choices, Obamacare is plainly unconstitutional. Unless you believe (as Sherrod Brown does) that “interstate commerce” means “Washington can decide what you do or do not buy; when, where, and from whom.”

But those reasons don’t explain Republican support for The Healthcare Freedom Amendment! No, according to the Dispatch, “The measure was supported by the state Republican Party as a possible GOP counterweight to the Democrat-backed referendum on Senate Bill 5.”

Ok… let’s go down that road. Progress Ohio and the usual array of mathematically-impaired leftists insist Obamacare is good and necessary legislation, while Senate Bill 5 is the work of hateful extremists. Need proof? Just look at the campaigns behind the two ballot issues:

  • Socialized medicine is a long-time goal of Progressives, therefore opposition to Obamacare is evil. Senate Bill 5 changes a law passed by Democrats in 1983, therefore Senate Bill 5 is evil.
  • The Health Care Freedom Amendment has support extending beyond Ohio: astroturf! All government unions march to a nationally financed and centrally-organized drum: solidarity!
  • Wealthy people sometimes donate to tea party groups – those capitalist swine! Union bosses pay themselves six figures in member dues – those martyrs for workers’ rights!
  • Obamacare was written by a few Democrats and lobbyists before being rammed through using flagrant bribes, as all legislation guiding the lives of 308,000,000 people should be. Senate Bill 5 was passed with GOP maneuvering, which is obviously far worse.

Shall we start a collection for train tickets so the InnoProgPolicy Ohio scholars can depart our cloud of backwardness when The Healthcare Freedom Amendment passes and the SB 5 referendum fails?

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Westerville Begs for Bargaining Reform

The Columbus Dispatch reports on sacrifices made by unionized employees of Westerville City Schools:

Teachers were expected to receive a 1.75 percent cost-of-living increase in addition to step increases this school year under the association’s current two-year contract.

Williams said the members also agreed to delay receiving some of their pay to the next fiscal year, which would shift $1 million in compensation to the 2013 fiscal year.

Starting from a contract that was completely untenable, the union has agreed to “givebacks” which do nothing to address long-term budget issues. The Westerville Education Association deserves credit for some flexibility, but context is everything. In this case, union concessions are a prelude to major tax initiatives:

The variations: a 0.5 percent earned-income tax and $10 million levy; a 0.75 percent earned-income tax and $7.3 million levy; and a 0.75 percent earned-income tax and a $5 million levy. The proposals would generate between $22 million and $25.5 million a year.

Teaching is a difficult job. I don’t think I could do it, and I can’t imagine a salary that would make me try. I have great respect for good teachers… but are Westerville’s compensation rates sustainable? According to public records, 376 Westerville City Schools employees – more than 21% – were paid $75,000 or greater in 2010.

Without a steep tax hike, the Westerville City School District has a bleak future:

Depending on the tax issue board members choose, the district will need to cut from $13 million to $16 million in anticipated expenses to keep the budget in the black through the 2014-15 school year.

Interim Treasurer Steve Huzicko said the district faces a projected $3.1 million shortfall this school year and about $24 million in 2012-13.

This year’s troubles are nothing compared to Westerville’s coming budget disaster. Ohio can’t afford to throw money at local governments any longer, and Washington certainly can’t afford to throw money at Ohio, so what option does the district have? For a taste of the leftist outrage when you suggest pay cuts for the highest-paid teachers and administrators, refer to my extremely cautious Columbus City Schools analysis.

This is what Senate Bill 5 is about. Current privileges granted to government unions make it easy for politicians to promise too much, and much too difficult for taxpayers to do anything about it.

Tax hikes are required to fulfill commitments squeezed out of elected officials, so the unions will fight for higher taxes. Treating good teachers the same as bad maintains the facade of “solidarity,” so that’s what the unions do. Simple reforms to empower taxpayers will limit union clout, so union front groups will continue demonizing reformers as “attacking workers’ rights.”

Hard work, but at least it pays well.

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Tuesday, July 26, 2011

O'Keefe Sting: Job & Family Services Response

After watching last week's Project Veritas sting video, I contacted officials in Franklin County, Marion County, and Madison County for details. Though I haven't heard back from Marion or Madison County, here's the response (in bold) from a Franklin County Department of Job & Family Services spokesman:

Does the Franklin County Department of Job and Family Services have a policy regarding the reporting of admitted felonies?

FCDJFS must abide by confidentiality laws for the federal and state programs administered. Since the application was for Medicaid, the Medicaid federal regulations 42 CFR § 431.300, 42 CFR § 431.302, 42 CFR § 431.305, 42 CFR § 431.306 and 42 CFR § 435.945 are the guideline on releasing information about applicants or recipients.

Did Traci Daniels report her conversation with the purported drug smugglers to a supervisor, the Sheriff's Department, or CPD?

Yes.

If so, to whom did she report the conversation in question, and what measures were taken in response?

She reported this to her supervisor. The supervisor reviewed the situation and tried to gather additional information to take further action and follow up, but there was no address or telephone number provided for contact of this fictitious individual.

What measures have been taken or will be taken as a result of the video posted at http://www.youtube.com/watch?v=szhFgyl589w ?

Franklin County Job and Family Services has interviewed all individuals highlighted in the video to garner an understanding of the entire incident. As a result of the interviews, we have recommended discipline for two individuals.

We are interviewing all front door staff and eligibility screeners to insure a consistent practice and process. Following that, we will also interview all Medicaid staff, including supervisors, regarding practices and processes. These interviews will aid in a gap analysis and help identify areas of weakness. From theses findings, we will revamp our training in this area to strengthen understanding of the allowable activities. All staff will be required to attend the revamped training. Our interviews began July 22, 2011.

If an official response has already been published, could you provide me with a copy or let me know where to find one?

None has been published.

Today The Columbus Dispatch reported the suspension of both Traci Daniels and her supervisor. This follows last week's report that Job & Family Services workers throughout the state will receive training in response to the O'Keefe video. So long as the training focuses on not assisting professed criminals, it should be a worthwhile exercise!

Follow me on Twitter: @jasonahart

Cross-posted at that hero.

Monday, July 25, 2011

SB5 and the Politics of Envy

Have you ever read an entire newspaper article simply to confirm its title wasn’t a typo? I did yesterday, upon seeing the Thomas Suddes editorial “Ohioans don’t favor SB5, but a campaign of envy could save it” on the Columbus Dispatch website.

A campaign of envy is the reason many Ohioans opposed Senate Bill 5 in the recent Quinnipiac poll. Since the bill's earliest drafts, unions have framed it as an “attack” on “workers’ rights” by corporate lackeys. It’s lame and it’s dishonest, but hey, if you’re paid six figures for conducting class warfare you might as well go whole-hog!

But a couple of other numbers in the poll suggest there may be ways to woo Ohioans to vote yes to uphold SB 5. Example: Under SB 5, public employees must pay at least 15 percent of the cost of their health-care premiums. Of voters Quinnipiac polled, 60 percent said they support that. Likewise, 56 percent of those polled said they support replacing automatic, longevity-based pay increases with merit pay. And 60 percent of those polled believe Ohio’s budget problems are “very serious.”

Spend fifteen seconds reading past the union battle-cry, and it's clear Senate Bill 5 represents commonsense reforms that will empower taxpayers at the expense of union bosses. Surely, a man who resides in Ohio and writes about politics for a living would know that - which is why the editorial's title must have been a mistake...

That is, if the “Yes on SB 5″ campaign can mobilize the politics of envy – say, in attacks on public-employee pensions, notably “double-dipping,” health plans and automatic pay increases – and tie those costs to the local taxes Ohioans have to pay, SB 5 might well survive – though political civility in Ohio, what’s left of it, certainly wouldn’t.

I know it's only Monday, but Ohio's papers would be pressed to publish a more ridiculous sentence this week. Here are a dozen union talking points that make heated, hypocritical (refer to union boss pay) use of the very tactic Suddes projects onto SB 5 supporters. If you can bear it, muddle through the editorial's closing line again. Senate Bill 5, which limits the power of professional agitators whose job is to fight for more expensive government, is a threat to political civility. Tell us another, Professor Suddes!

Follow me on Twitter: @jasonahart

Cross-posted at that hero.

Sunday, July 24, 2011

Three Months of Soaking the Rich

Forget trickle-down economics, it’s time for a tax-hike tsunami! As JFK liked to say when hawking government spending, “a rising tide lifts all the boats.” Stupid Reaganomics treat individual citizens as “boats,” which is wrong and probably racist. Senator Sherrod Brown (D-OH) has a Progressive’s grasp of economics: Washington is blameless, corporations are evil, and bureaucrats need more money to adjust the level of all boats appropriately.

Though Sherrod – like President Obama – isn’t specific about his assuredly non-socialist methodology, what if we used the class-warrior’s dream scenario of doubled corporate income taxes and fully “reclaimed” CEO pay? Starting with just the 2011 deficit of $1.62 trillion, how fast could we balance the budget with a little extra from the kings of the S&P 500 index?

Pictured above: the 2011 deficit bucket, and the 5.783% drop that would result from dramatically increasing taxes on twenty-four of America’s largest employers (view source workbook). That’s a reduction from $1,620,000,000,000 to $1,526,319,144,240. Even if soaking a few hundred more corporations could cover the remaining 94.217%, would it be worth it?

Of course it would! As any Progressive will tell you, raising taxes on The Rich has no negative effects. Among the things that won’t happen if Sherrod Brown and President Obama tax their way to the chart above:

  • None of the corporations’ 5,037,561 employees will lose their jobs.
  • None of the corporations’ products or services – health insurance, prescription drugs, medical devices, food at supermarkets & restaurants, gasoline, business & consumer lending, construction equipment, air travel, shipping, cell phone service, broadband access, fast food, the thousands of items available at Amazon.com & Wal-Mart, toothpaste, diapers, detergent, baby soap, Band-Aids, movies, television, newspapers, computer software, iPods, laptops, servers, networking equipment, etc. – will get more expensive.
  • None of the funds or individuals holding the corporations’ 63,350,800,000 shares of stock will be ruined… unless they deserve it!
  • None of the world’s entrepreneurs or executives will stop investing in American businesses.

It’s a good thing raising taxes is an all-around win… otherwise, Ohioans would need to start looking for a senator with more sense than Sherrod Brown!

Follow me on Twitter: @jasonahart

Cross-posted at that hero.

Friday, July 22, 2011

Boehner's got Backbone

You'd never mistake me for an unbiased observer of John Boehner - as I've admitted, I'm a fan - but the guy has spent an awful lot of time in Washington. That makes it difficult to remain confident in the congressman's ability to wrangle with President Obama, King of Class Warfare, over spending cuts vs. tax hikes.

Conservatives, take heart! The president sees the debt ceiling debate as a terrific excuse to raise taxes amid his spending binge, but Speaker Boehner remains a steady advocate of smaller government:

"I can tell that you [House Majority Leader Eric] Cantor and I were very disappointed in this call for higher revenue," Boehner said. "Secondly, they refuse to get serious about cutting spending and making the tough choices that are facing our country on entitlement reform. That's the bottom line. I take the same oath of office as the president of the United States. I've got the same responsibilities as the president of the United States. And I think that's for both of us to do what's in the best interest of our country. And I can tell you that it's not in the best interest of our country to raise taxes during this difficult economy and it is not in the best interest of our country to ignore the serious spending challenges that we face."

This is what it's all about, folks. We can't afford the handouts politicians have promised their various constituencies. Are we going to rid the tax code of loopholes and prune the federal government back to saner dimensions? Or will the Democrats win, treating anyone who dares to succeed as fertilizer for a bureaucratic thicket from sea to shining sea?

Two reminders for Progressive eggheads who will cry that the GOP is preventing a grand bargain because they have no ideas: House Republicans passed a budget months ago. Senate Democrats haven't bothered to write one for over two years. If big government works so well, why are its official champions so incompetent?

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Thursday, July 21, 2011

SB5 and the Dayton "Ring of Fire"


In previous posts (here and here) I have talked about the economic reality of Ohio's Senate Bill 5. The most interesting issue is that the education unions don't believe in the "Shared Sacrifice" "our" President calls for. In all school districts I have analyzed, there is a wide gap between many school employees/teachers salary and benefits and the average Ohioan who is paying for the lush compensation the teachers enjoy. Unlike private sector jobs, there is no one at the bargaining table speaking for the taxpayer.


As I have noted in the past, "my" Senator, Sherrod Brown claims to be "passionate about fighting for the middle class." Apparently, he is an advocate for the middle class so long as they belong to unions. In a speech to FOP in Canton, Brown said "a pretty small group of radicals is attacking the collective bargaining abilities in Ohio and other parts of the country. Actually, 32% of Ohioans support SB5, and that is before the public is educated on the facts about SB5.


This post will focus on the Dayton area schools. It's a message similar to the prior posts on this subject. Average Ohioans are paying the bill for these generous compensation packages. While the middle class has felt the economic pain of the recession and weak recovery, teachers seem to be doing just fine. Below are charts that use data from the Buckeye Institute. With respect to the charts, the Buckeye Institute notes that "For those non-teachers working more than 185 days per year, the pro-rated pay calculation (Chart 3) does not apply.


































































Don't be fooled into this being an "attack on unions" by Conservatives. Similar actions have been taken in New York, Connecticut, Massachusetts, Democratic controlled Atlanta and Chicago. Sherrod Brown can liken reform minded politicians and citizens to Hitler, Stalin, and Mubarak, but the underlying motivation behind SB5 is to deal with the growing tax burden by the growing cost of education. Don't you think the ultimate employer of the education unions (the taxpayer) should have a say in the amount they are paid?

The Man Who Would be Czar

The Consumer Financial Protection Bureau (CFPB) created by last summer’s Dodd-Frank “Wall Street Reform and Consumer Protection” bill is scheduled to open its doors today, but there’s a bump in the road: those accursed Republicans won’t let Obama place its Director!

The choice of former Ohio Attorney General Richard Cordray to head a new federal consumer-protection agency did not pacify Senate Republicans, who vowed to fight his nomination until President Barack Obama agrees to revise the powers of the bureau.

Lucky timing for the president, who can only avoid for so long the Democrats’ refusal to produce a budget, let alone try to balance it. An array of talking heads appear content to treat the creation of another federal agency as pragmatism in action, supporting big government until the Wile E. Coyote “splat” goes up at the foot of the cliff.

Why is the G-No-P fighting the CFPB, aside from their deep-seated racism? Using one decent idea – simplified credit card and mortgage paperwork – as sugar, Democrats are pushing a permanent, ill-defined bureaucracy about which we can be sure of only two things:

  1. The CFPB will spend bushels of money.
  2. Some or all of the CFPB’s rules will have severe consequences.

It’s Obamacare all over again… demagogue an issue, torch a strawman opposed to all regulation, and write 2,000 pages of red tape behind closed doors. The media cheers a noble cause, while more serious problems (in this case, Fannie, Freddie, and mandates in the name of social justice) continue pushing us toward the abyss.

At least we know Richard Cordray is a moderate; once during his term as Attorney General he refused to make a ruckus over an obvious racket:

“We believe these lawsuits do not have any legal merit whatsoever,” Cordray said during a news conference today. “We will not be joining these lawsuits.”

Naturally, the suit Cordray deemed meritless was the states’ challenge to the “Patient Protection and Affordable Care Act,” otherwise known was Obamacare. Cordray’s give-no-quarter approach to private industry – coupled with an inclination to let the federal government trample citizens while wasting trillions – will fit in nicely when President Obama appoints him during the next Congressional recess!

Not convinced that skepticism of Czar Cordray’s new agency is warranted? I can’t think of a better argument against the CFPB than simply repeating the primary co-sponsors’ names: Barney Frank. Chris Dodd. Thanks, Mr. President, but no thanks.

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Tuesday, July 19, 2011

O'Keefe Does Ohio

Conservative muckraker James O’Keefe’s team at Project Veritas released their latest video on Sunday, and whatever you think of O’Keefe, it’s worth watching. Why? Because Ohio’s Medicaid bureaucracy was targeted, and the results are not pretty.

Imagine two guys walk into a county office inquiring about Medicaid coverage. Now imagine they explain to staff their concerns over getting government handouts while dealing drugs, driving an $800,000 car, and whoring out their underage sister. It's a little painful to watch, but makes an incredibly powerful point when peppered with out-of-control Medicaid spending figures from the Dispatch.

As Hot Air and The Blaze have noted, O’Keefe’s tactics remain somewhat creepy. His emulation of leftists’ personal attacks causes very real grief for the individuals caught on tape – not to mention obvious questions about editing. That said, if your response to a drug dealer looking for public funds isn’t to laugh in their face and call a supervisor, you’re doing something wrong.

I’ve contacted county officials in Columbus, Marion, and London for their responses. If the video’s targets promptly reported the Veritas guys to their supervisors and/or local police, good news: sometimes, government works! If not, this is another arrow to the heart of Progressive arguments that can be boiled down to “MORE.”

The video follows, with uncut footage of the Columbus sting at the end of the 10-minute piece.



As for the entirely predictable response from Media Matters, Talking Points Memo, et al, of course O’Keefe is going to exaggerate the importance of his footage. That hardly invalidates his criticism, if the Franklin County, Marion County, and Madison County Departments of Job and Family Services advised the Project Veritas scammers and did nothing to prevent them from acquiring Medicaid funds. Of course, leftist outlets will shriek desperately about O’Keefe’s political agenda if doing so serves their own!

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Monday, July 18, 2011

Sherrod Brown, Social Security and Medicare

I am often amused when I read the material I receive from "my" Senator Sherrod Brown, who is tied for first as the most liberal in the U.S. Senate. The most recent email from "my" Progressive Senator is so pathetic, it's funny. Here is the meat of his email:














If Brown had taken the time to read the Social Security Trustees report, he would have read the following:

"Social Security owes $9.1 trillion more in benefits than it will receive in taxes. The 2011 number consists of $2.6 trillion to repay the special-issue bonds in the trust fund and $6.5 trillion to pay benefits after the trust fund is exhausted in 2036." Maybe Brown could ask his President to stop spending incoming Social Security tax receipts on green cars, infrastructure and his other "winning the future" boondoggles.

On Medicare, don't forget that Obamacare, supported by Brown cuts half of a trillion dollars from Medicare to pay for Obamacare. Does that have an impact on "the most vulnerable citizens?" Also, from the Medicare Trustees report we are told "Medicare will start running out of money in 2024 -- five years earlier than projected last year -- as a result of the sluggish economy, the program's trustees reported today. Maybe Brown could also ask his President to stop spending incoming Medicare tax receipts on Obama's pet projects.

The most amusing comment from "my" Senator is his comment that "We can't force our most vulnerable citizens to pay for the deficits created by the right." Hello? Maybe he can sell this to senior citizens, but it's is a massive stretch of the truth.




















Deficits created by the right? You decide! It's seems like Brown want to ignore the spending by the Obama administration, because Brown is a partner in crime with Obama on spending. When politicians play the blame game, it's time to hold them accountable for their lies. Sherrod Brown needs to held accountable next year. Let's make him a one term Senator.

Sunday, July 17, 2011

Soak the Rich, Week 11

Senator Sherrod Brown (D-OH) insists we can balance the 2011 federal budget’s $1.62 trillion deficit by raising taxes on America’s most successful employers, so I’ve been calculating the results of punishing evil corporations and their fat-cat CEOs. Starting with the ten largest companies in the S&P 500 index and moving to the least-Progressive villains after that, how far have twenty-two applications of Sherrod’s Sure-Fire Budget Oil brought us?

Though Sherrod – like President Obama – isn’t specific about his assuredly non-socialist methodology, my figures use the class-warrior’s dream scenario of doubled corporate income taxes and fully “reclaimed” CEO pay. If these extreme measures (view Excel summary) won’t work, Ohioans might want to start looking for a senator with more sense than Sherrod Brown!

Pictured above: the 2011 deficit bucket, and the 5.722% drop that would result from dramatically increasing taxes on twenty-two of America’s largest employers. That’s a reduction from $1,620,000,000,000 to $1,527,310,227,110. Even if soaking a few hundred more corporations could cover the remaining 94.278%, would it be worth it?

Of course it would! As any Progressive will tell you, raising taxes on The Rich has no negative effects. Among the things that won’t happen if Sherrod Brown and President Obama tax their way to the chart above:

  • None of the corporations’ 4,951,660 employees will lose their jobs.
  • None of the corporations’ products or services – health insurance, prescription drugs, medical devices, food at supermarkets & restaurants, gasoline, business & consumer lending, construction equipment, air travel, shipping, cell phone service, broadband access, fast food, the thousands of items available at Amazon.com & Wal-Mart, toothpaste, diapers, detergent, baby soap, Band-Aids, computer software, iPods, laptops, servers, networking equipment, etc. – will get more expensive.
  • None of the funds or individuals holding the corporations’ 61,759,800,000 shares of stock will be ruined… unless they deserve it!
  • None of the world’s entrepreneurs or executives will stop investing in American businesses.

It’s a good thing raising taxes is an all-around win; soaking The Rich is the only idea Senator Brown and President Obama have got, and we’re stuck with them until January 2013.

Catch all the Soak the Rich fun on Facebook!

Cross-posted at that hero.

Monday, July 11, 2011

Don't You Love It When Politicians Suggest You are Uninformed?

Yesterday, Obama had a press conference to discuss the "progress" of the debt ceiling talks with our representatives. After a "question" from the media suggesting that the GOP is not cooperating with the process of raising the debt limit, Obama went into a "education mode." We need to realize that we are uninformed. To understand the disconnect from reality, you have to experience it as it was delivered.



According to Obama, the American people are not paying attention to what is going in Washington. If the American people are not paying attention, how does Obama explain the beat down in November of 2011? Obama said "We're paid to be worried about" what is going in Washington. If that is correct, the American people should ask for their money back. Unlike the American people, Obama continues to live beyond his means and wants the American people to make a large payment on the governments credit card so he can spend even more.

What is most interesting is Obamas thoughts on the debt ceiling and the tax increases he wants to clean up the fiscal mess he has made. Here are two actual excerpts from previous comments made by the Spender-in-Chief. I agree with both comments.

President Obama himself voted against raising the debt ceiling in 2006 saying:

“The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.”

In August 2009, on a visit to Elkhart, Indiana to tout his stimulus plan, Obama sat down for an interview with NBC’s Chuck Todd, and was conveyed a simple request from Elkhart resident Scott Ferguson:

“Explain how raising taxes on anyone during a deep recession is going to help with the economy Obama agreed with Ferguson’s premise – raising taxes in a recession is a bad idea. “First of all, he’s right. Normally, you don’t raise taxes in a recession, which is why we haven’t and why we’ve instead cut taxes. So I guess what I’d say to Scott is – his economics are right. You don’t raise taxes in a recession. We haven’t raised taxes in a recession.”

Now that we are deeper in debt than when these two comments were made, Obama wants both a raise in the debt ceiling and to raise taxes. He wants the American people, particularly the most productive people to bail him out of his disastrous economic policies and his inability to "live within his means." The problem isn't the people who are not in the room, it't the people who are in the room.

Sen. Brown Responds to CAIR Criticism

On June 8th I read about a 06/05 banquet hosted by the Council on American-Islamic Relations (CAIR) Ohio chapter’s Columbus office. Noticing that Senator Sherrod Brown (D-OH) gave some kind of statement – and knowing CAIR’s sketchy history – I emailed CAIR-Ohio and Brown’s office for details. Specifically, I wanted to know whether my senator had attended the event and if I could see a copy of his remarks.

A phone call, several more emails, and three weeks later, a staffer informed me Senator Brown did not attend the event... but made no mention of the statement he provided. Again I replied to request a copy of his remarks. No response. Last Tuesday I sent yet another email, this time linking to the story on CAIR-Ohio’s site and highlighting the portion in question -

CAIR’s contributions to the community were recognized in proclamations from U.S. Sen. Sherrod Brown, D-Ohio, the Ohio House of Representatives and from representatives of the mayor and City Council of Columbus.

No dice. My assumption? Senator Brown’s remarks supported CAIR’s perpetual misdirection campaign, wherein widespread Muslim support for jihad and sharia law are ignored because “Islamophobia” is a more palatable topic.

Thursday I badgered Sherrod for supporting an event keynoted by a leader from a mosque neck-deep in jihadist associations:

Suddenly, my questions warranted a response... but not via The Twitters. Friday evening I was emailed the following from the general Senator_Brown@brown.senate.gov mailbox; see for yourself whether my concerns about Sherrod’s catering to CAIR-Ohio are misplaced!

Dear Mr. Hart:

Thank you for getting in touch with me about the United States Department of Justice’s handling of certain individuals and groups.

Our nation is at war with terrorism. Any group or individual who exploits our nation’s freedoms to propagate extremism or support internationally recognized terrorist organizations must be brought to justice.

In 2004, the Justice Department considered and rejected criminal charges against the Council on American-Islamic Relations (CAIR). Senior Justice Department officials reportedly decided not to include CAIR and other groups in a case in which Dallas-based prosecutors were preparing to indict the Holy Land Foundation for providing material support to Hamas.

Last year, the Justice Department’s Criminal Division declined prosecution of Omar Ahmad, co-founder of CAIR. Since that time, House Homeland Security Committee Chairman Peter King has requested information from Attorney General Eric Holder about why the Justice Department is not seeking an indictment of CAIR, the North American Islamic Trust, and the Islamic Society of North America.

While I do not sit on the Senate Committee on the Judiciary or the Senate Committee on Homeland Security and Government Affairs, I will continue to monitor Representative King’s investigation. Should this issue come before the full Senate, I will keep your thoughts in mind.

Thank you again for getting in touch with me.

Sincerely,
Sherrod Brown
United States Senator

Cross-posted at that hero.

Sunday, July 10, 2011

Soak the Rich, Week 10

Senator Sherrod Brown (D-OH) insists we can balance the 2011 federal budget’s $1.62 trillion deficit by raising taxes on America’s most successful employers, so I’ve been calculating the results of punishing evil corporations and their fat-cat CEOs. Starting with the ten largest companies in the S&P 500 index and moving to the least-Progressive villains after that, how far have twenty applications of Sherrod’s Sure-Fire Budget Oil brought us?

Though Sherrod – like President Obama – isn’t specific about his assuredly non-socialist methodology, my figures use the class-warrior’s dream scenario of doubled corporate income taxes and fully “reclaimed” CEO pay. If these extreme measures (view Excel summary) won’t work, Ohioans might want to start looking for a senator with more sense than Sherrod Brown!

Pictured above: the 2011 deficit bucket, and the 5.642% drop that would result from dramatically increasing taxes on twenty of America’s largest employers. That’s a reduction from $1,620,000,000,000 to $1,528,603,943,210. Even if soaking a few hundred more corporations could cover the remaining 94.358%, would it be worth it?

Of course it would! As any Progressive will tell you, raising taxes on The Rich has no negative effects. Among the things that won’t happen if Sherrod Brown and President Obama tax their way to the chart above:

  • None of the corporations’ 4,921,660 employees will lose their jobs.
  • None of the corporations’ products or services – health insurance, prescription drugs, medical devices, business & consumer lending, gasoline, construction equipment, air travel, shipping, cell phone service, broadband access, fast food, the thousands of items available at Amazon.com & Wal-Mart, toothpaste, diapers, detergent, baby soap, Band-Aids, computer software, iPods, laptops, servers, networking equipment, etc. – will get more expensive.
  • None of the funds or individuals holding the corporations’ 61,229,800,000 shares of stock will be ruined… unless they deserve it!
  • None of the world’s entrepreneurs or executives will stop investing in American businesses.

It’s a good thing raising taxes is an all-around win; soaking The Rich is the only idea Senator Brown and President Obama have got, and we’re stuck with them until January 2013.

Catch all the Soak the Rich fun on Facebook, and find me on Twitter at @jasonahart!

Cross-posted at that hero.

Thursday, July 7, 2011

Communists Accidentally Correct

It's not encouraging when Communist Party USA is the authoritative source for news about your senator. Last month PeoplesWorld.org fawned over an otherwise unreported 06/05 banquet featuring remarks from Senator Sherrod Brown (D-OH):

"We're trying to build understanding about Islam, build understanding within our community, and bring people together."

CAIR's contributions to the community were recognized in proclamations from U.S. Sen. Sherrod Brown, D-Ohio, the Ohio House of Representatives and from representatives of the mayor and City Council of Columbus.

Understandable that no reputable outlets would cover this, right? Senators endorse all kinds of events, and Islam is just another interest group ripe for the pandering. Generally, though, I'd prefer my senators avoid shindigs keynoted by terror apologists:

The speakers for the event were Imam Johari Abdul-Malik, Director of Outreach of Dar Al-Hijrah Islamic Center in Washington, D.C. [...]

Emphasis mine, to highlight the mosque attended by a veritable Who's Who of Muslim terrorists, including two of the 9/11 bombers and Fort Hood jihadist Nidal Hasan. If Islam in America is such a rich, diverse tapestry, why would a Muslim group in Columbus invite a dishonest PR rep from Dar Al-Hijrah as their headliner? Abdul-Malik seems an odd traveling salesman for interfaith dialogue, given his mosque's decades-long history of connections to Hamas and other sponsors of terrorism.

Senator Brown's site includes no news item or press release about the Columbus Council on American-Islamic Relations (CAIR) event; his staff inform me the senator provided a statement but did not attend. Even if CAIR's national chapter is an unindicted co-conspirator in a Hamas funding trial, it's no wonder Sherrod likes the cut of CAIR-Ohio's jib:

Speakers and a video about CAIR's activities stressed the importance of educating the public about Islam. Less than two-fifths of Americans are personally acquainted with any Muslim, and right-wing forces cynically exploit this lack of first-hand knowledge about Islam to press their own political agendas.

The Communist Party's story title (unaltered in the version posted on CAIR-Ohio's website) reflects this spin on the event: "Banquet speakers see politics behind Islamophobia." So it turns out we agree! There are politics aplenty behind "Islamophobia," a word used to silence any critic of Islam or the professional victims at CAIR. Likewise, "Islamophobia" is a handy bludgeon for Progressives like Sherrod Brown, whose careers would be impossible if fewer minorities were convinced of rampant conservative bigotry.

In unrelated news, a recent study of 100 random American mosques found that 81% carried texts advocating violence (above and beyond the violence found in Islam's scriptures). Reality is unkind to CAIR: the more Americans learn about Islam, the less influence sharia apologists will have!

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Wednesday, July 6, 2011

Extremely Expensive Signatures

Last Friday the Dayton Daily News reported the huge number of signatures submitted on petitions for the repeal of Senate Bill 5:

We Are Ohio, the campaign against Senate Bill 5 — the public employee collective bargaining reform package — delivered a truckload of petitions on Wednesday that were signed by a reported 1.3 million Ohioans. Only 231,147 valid signatures are needed to qualify for the Nov. 8 ballot.

Or, to hear the AFSCME tell it:

Leading the parade is “We Are Ohio,” a citizen-driven, community-based, bipartisan coalition. Last week, the group announced that 714,137 signatures had been collected, exceeding the 231,149 requirement to place a citizen’s veto on the ballot.

Ballot initiatives always crow about being "citizen-driven" and "bipartisan," however inaccurate the statement might be. It's unseemly to say, for instance, "we spent big bucks pestering voters to sign petitions supporting our privileged status." Nonetheless, the sheer mass of signatures reported July 1st lends credibility to the AFSCME's claim that We Are Ohio isn't a garden variety special interest front.

At least, it would if union records weren't public information. The unions strive to paint the same picture as Democrat candidates in every election: it's The People versus the corporations! Stand in solidarity with your working brethren against the wealthy special interests! As my several regular readers already know, Ohio's public unions are wealthy special interests (view Excel source).

Listen to arguments from the unions themselves - money and power are evil, according to the OEA and AFSCME. Oddly, in all the months I've been writing about public unions, I've seen no excuse for union employee pay other than "I know corporations are, but what am I?" I'm also waiting for the news story where the dozens of union employees paid six figures with member dues chip in to save a bunch of teachers' jobs. Solidarity?

With a little context, the 1.3 million signatures reportedly collected by the unions become much less impressive. Based on 2010 union reports unless otherwise noted, here's what the staffing looks like at the unions listed in the chart above:

  • Ohio Education Association: 235 employees, paid an average of $96,183
  • AFSCME Local 4 (Ohio Association of Public School Employees): 60 employees, paid an average of $93,442
  • AFSCME Local 11 (Ohio Civil Service Employees Association): 86 employees, paid an average of $67,625 (as of Fiscal 2009)
  • AFSCME Council 8: 86 employees, paid an average of $64,966

How much energy do you think union employees have devoted to anything besides Senate Bill 5 since February? How many signatures would you expect 450+ full-time employees to collect in several months? What if those 450 full-time employees were assisted by tens of thousands of union members for whom all political news was filtered through the union lens?

Follow me on Twitter: @jasonahart

Cross-posted at that hero and Columbus Tea Party.

Words Without Meaning from the Spender-in-Chief











I heard the current occupant of the White House say (for at least the 3rd time) that "We need to live within our means." This coming from a President that is on track for his third trillion dollar budget deficit. However, Obama's definition of "living within our means" is to have people pay more in taxes. If Obama had an economic advisor with a brain, he would know that we don't have a revenue problem. We have a spending problem. Imagine if a family member was spending more than they earned, what would you tell them to do? "Spend less" is the answer. But noooooooo, Obama wants to protect the nanny state he has created. I would be willing to pay more in taxes to get American on the right path, but I am not willing to pay more in taxes when it's going to feed a budget monster that needs to go on a serious fiscal diet.


Tuesday, July 5, 2011

Kasich Ends World

Did you feel a rumbling last Thursday? The earth shook as Ohio’s budget – spending cuts! lower taxes! – was signed into law.

Earth, as seen from Policy Matters Ohio HQ

On the bright side, the Kasich budget’s disastrous final passage gave Ohio leftists an opportunity to talk about what they hate most: tax cuts. Unlike The Columbus Dispatch, where political bias varies by writer, topic, and day of the week, The New York Times gave predictable support to big-government advocates:

Mr. Kasich said at the news conference that the budget restored fiscal responsibility to Ohio by closing an $8 billion budget gap. But his opponents argue that it accomplished that through deep cuts in spending on schools and local governments, which will be hard pressed to make up the difference. It also repeals the estate tax in 2013, which applies to the most affluent Ohioans and is another important revenue source for local governments.

Forget for a second how much a free citizen ought to despise “the most affluent,” and remember what the estate tax is. Dare to make more money than Progressives think your loved ones deserve, and the government takes a portion of your wealth when you die – even if you paid taxes on wages and paid taxes again when those wages earned you investment income. This sounds bad; is there no one brave enough to defend triple-taxation in the interest of more government spending?!

“There are clear winners and losers in this budget,” said Wendy Patton, senior associate at Policy Matters Ohio, a liberal economic research group in Columbus. “Wealthy families and businesses benefit. School kids and communities don’t.”

Policy Matters Ohio, reliable champions of class warfare, released a study in June about why death taxes on the rich are so important. Synopsis: leftists know best how Ohioans’ money should be spent.

The Times also quoted Senator Seitz, one of several Ohio GOP figures who often votes with the Evil Conservative block but rarely misses a chance to undermine conservative policies:

“It’s easy to spend other people’s money, and that is essentially what this budget does,” he said. “Local governments will likely be in a position to ask voters for additional resources. It’s pay me now or pay me later.”

Actually it’s “pay the state so Columbus bean-counters can shovel money to local governments as they see fit, or pay your local government as local voters see fit.” Plus, what government budget in the history of government hasn’t spent other people’s money?

Seitz, like self-proclaimed moderate Republicans throughout Ohio and the nation, puts the “central government” in “centrist.” Sadly for the well-funded heroes at Policy Matters Ohio, Progress Ohio, Innovation Ohio, and all the other leftist institutions that would see more power in the hands of bureaucrats, Seitz voted for the budget when it counted. He’ll share the blame when Ohio goes belly-up without an omnipotent government leading the way!

Follow me on Twitter: @jasonahart

Cross-posted at that hero.

Sunday, July 3, 2011

Soak the Rich, Week 9

Senator Sherrod Brown (D-OH) insists we can balance a 2011 budget deficit of $1.62 trillion by raising taxes on America’s most successful employers. In the spirit of bipartisanship, I've been calculating the results of punishing evil corporations and their fat-cat CEOs. After nine weeks and 18 of the largest companies in the S&P 500 index, where has Sherrod's Sure-Fire Budget Oil gotten us?

Though Senator Brown and President Obama aren’t specific about their assuredly non-socialist methodology, I've taken a leap to doubled corporate income taxes and fully “reclaimed” CEO pay. If these extreme measures (view Excel summary) won’t work, Ohioans might want to start looking for a senator with more sense than Sherrod Brown!

By dramatically increasing taxes on eighteen of America’s largest companies, we could reduce the 2011 U.S. budget deficit from $1,620,000,000,000 to $1,530,313,629,220. That’s a 5.536% slice of a single year’s deficit pie. Even if soaking a few hundred more employers could cover the remaining 94.464% of the 2011 deficit, would it be worth it?

Of course it would! As any Progressive will tell you, raising taxes on The Rich has no negative effects. Among the things that won’t happen if Sherrod Brown taxes his way to the chart above:

  • None of the corporations’ 4,798,660 employees will lose their jobs.
  • None of the corporations' products or services – health insurance, prescription drugs, medical devices, business & consumer lending, gasoline, construction equipment, air travel, cell phone service, broadband access, fast food, the thousands of items available at Amazon.com & Wal-Mart, toothpaste, diapers, detergent, baby soap, Band-Aids, computer software, iPods, laptops, servers, networking equipment, etc. – will get more expensive.
  • None of the funds or individuals holding the corporations’ 59,813,800,000 shares of stock will be ruined… unless they deserve it!
  • None of the world’s entrepreneurs or executives will stop investing in American businesses.

It’s a good thing raising taxes is an all-around win, because Sherrod Brown is our only hope and soaking The Rich is his only idea.

Follow me on Twitter: @jasonahart

Cross-posted at that hero.

Saturday, July 2, 2011

SB5 and the Cincinnati "Ring of Fire."

In a previous post, I talked about the economic reality behind Ohio's Senate Bill 5. The most critical issue from my perspective is the fact that the salaries of and benefits enjoyed by school district employees and teachers appear to be very generous. To have the average Ohioan, who makes around $40,000 for a full years worth of work pay for these salaries and benefits from his tax dollars is outrageous. When Sherrod Brown says that he is "passionate about fighting for the middle class, is he talking about the whole middle class, or only those who are unionized and contribute to his reelection?


Unlike private sector employee who negotiate (if he can negotiate) with his employer for salary and benefits (which are paid of of profits), school district employees and teachers salary and benefits are paid for by the taxpayer. My question in this debate is "Who is at the negotiating table representing the taxpayer?"

This week, I will focus on the Cincinnati school districts. As mentioned in the past post, Obama talks about this process as an "Assault on Unions," and Sherrod Brown added that "Hitler didn't want unions, Stalin didn't want unions, (former Egyptian President Hosni) Mubarak didn't want independent unions." That's what the Democratic party wants you to think about SB5 and other state initiatives across the country, because it's a system that has funneled more and more money into the education unions so they can help get more Democrats elected to help keep the money machine running.

A Wall Street Journal article shows the argument to be a canard.

Here are some excerpts from the article:

In New York, the state's largest public-worker union agreed to a salary freeze and other give-backs earlier this week in exchange for a no-layoff pledge.

Connecticut is poised to lay off thousands (7,500) of people after unions rejected a similar deal.
And in New Jersey, the Democrat-controlled Legislature this week passed comprehensive cuts to pensions and health-care benefits pushed by Republican Gov. Chris Christie.

The article also outlines the issues at hand: The financial crisis laid bare a simmering resentment private-sector workers had been feeling toward their neighbors on the government payroll, who had been rewarded in prosperous years with pension boosts and pay increases.



The Wall Street Journal also reported:

Heavily Democratic Massachusetts on Friday became the latest state to curtail public workers' collective-bargaining rights, as lawmakers approved a $30.6 billion budget that gives cities and towns greater leeway to force employees to pay more for their health care. House Speaker Robert A. DeLeo, a Democrat, said after Friday's vote that "this common-sense reform will save $100 million for cities and towns.

What is most instrumental that this isn't a political attack is the fact that Rahm Emanuel's handpicked school board voted to cancel the 4% raise for members of the Chicago Teachers Union. The move was justified by a school budget deficit put at more than $700 million. Remember that Emanuel was Obama's Chief of Staff for over two years,

Below are charts that use data from the Buckeye Institute. To see a larger, more clear chart, click on the graphs. With respect to these charts, the Buckeye Institute notes that "For those non-teachers working for more than 185 days per year, the pro-rated pay calculation does not apply.











Note: The vertical axis was truncated. The Cincinnati City Schools have 63 employees that make over $100,000. I limited the vertical axis so you can see the details of the other school systems in the Cincinnati area.











Highest Salary in the District










Annual Equivalent Salary based on Highest Salary in the District










Lifetime Pension Liability Estimate for Highest Salary










If you want to know why Liberal/Progressive Democrats are so ticked off with SB5, look at the largest contributors to Democrats - it's unions! They are afraid that reforms similar to SB5 will give public employees the option to not join a union, cutting some of the funds for unions to get special treatment by elected Democrats. I know I don't want my tax dollars essentially making political contributions to Democrats. This in addition to maintaining the generous salaries and benefits that the unions have won from Democratic politicians. It's time to have give the average Ohioan get a break from paying for these compensation packages. SB5 gives school districts the tools to provide this break.

Yea or Nea, you will have the opportunity to express your opinion on the SB5 referendum.