Two weeks ago, the Department of Labor released their latest unemployment numbers which put the current unemployment level at 10.2%.  You may remember, in a recent blog, I mentioned that there was more behind the 10.2% figure than one would hope and that the actual number is closer to 17.5% because the calculation does not account those individuals who have given up on finding work or those who are underemployed, such as individuals working part time but looking for full-time work.

According to a review by the Wall Street Journal there are a number of inconsistencies in the way the number of jobs ‘saved or created’ are calculated by the White House in regards to its Stimulus package. 

Take these examples for instance:

“A Kentucky shoe-store owner claimed to have created or saved nine jobs with an $889.60 contract to supply work boots to the Army Corps of Engineers. The owner said he supplied nine pairs of boots and that the mistake arose from confusion over the government form.”

“As many as 86% of the jobs estimated by recipients of Head Start grants could have been inaccurately reported, according to the Department of Health and Human Services. The department said 277 of the 1,601 reports it had received were being reviewed after being contacted by the Journal. Those reports claimed 7,753 jobs created or saved out of a total of 8,997 reported.

"Holy moly, that's not right," Teresa Cox, executive director of the Mid-Willamette Valley Community Action Agency in Salem, Ore., said of her organization's report. It indicated that 205 jobs were created or saved with the agency's $397,761 federal grant. The money, she said, was used for pay raises.”

“Stetson University in DeLand, Fla., counted every part-time work-study position funded by the stimulus, and, in some cases, more than one work-study position held by the same student. That led to the university reporting that it had created or saved 483 jobs with a $193,469 grant for its work-study program. University spokeswoman Cindi Brownfield said the campus has since realized that the actual jobs number should have been written as the full-time equivalent of the jobs -- probably between 18 and 30.”

Factoid of the Day: The Pelosi government run health care plan creates a new 2.5% tax on all medical devices not sold through a retail establishment. That means a new 2.5% tax on everything from wheelchairs and hospital gowns, to artificial organs. And that lowers health care costs how?

Tea Party: Yesterday on Capitol Hill, we Republicans held a press conference on the west front of the Capitol to oppose the Pelosi Health Plan.  The “Tea Party” people seized on this as an opportunity to express the grass roots opposition to what the Wall Street Journal has called the worst bill since World War II. They started sending their e-mails just a few days ago.

And boy did they deliver.   I would estimate that there were 25,000 people in the crowd all chanting “kill the bill; kill the bill.” There are those on the left who would dismiss this movement as a bunch of kooks and fringe players. They do so at their peril.  I talked to corporate CEOs, Doctors, an investment banker with an MBA, and many other educated people of accomplishment. I would not they say they are angry, but rather, they are filled with resolve. No one paid them to be here, and it should be noted that this event was at 12:00 noon on a Thursday. They just do not want this country to follow the path of collectivism that Pelosi and Obama espouse.  They know it doesn’t work,  and I agree with them.

Another interesting thing to note, is that there is no office for the 'Tea Party.'  In fact, there is no centralization at all. It is completely organic, spontaneous, and organized only through the Internet.  It is just individuals making an individual decision to fight for freedom without any central direction or control, which I might add, is exactly the opposite of how Obama and Pelosi think health care (and many other things) should work.  This movement really is emblematic of the power and dignity of the individual over the power and control of the collective.

And it is that individual choice and right that we are fighting for.  Here is a picture I took of the crowd from my vantage point on the steps of the Capitol.  If you would like to see more photos, log onto my facebook page by clicking here .  The crowd was stretched out over such a wide area that I could not even begin to capture it all without a fish-eye lens, which I don’t have. But hopefully you will get the flavor.

As of this moment, the Democratic leadership still does not have enough votes to pass the bill. Tomorrow, the President will travel to Capitol Hill to meet with Democrats and try to talk enough of them into voting for it. They have scheduled a vote for Saturday, after the President works it some more.

As I write you this from my office in the Longworth Building, I can hear thousands of people outside chanting “kill the bill; kill the bill.” I know that my Democratic colleagues can hear them too.  Let’s hope they listen.

Stimulus Factoid: States, cities, and private companies from around the country are applying to get some of the $850 billion ‘non-stimulus package’ signed by the President last month. Many of the applications are unbelievable. West Virginia is applying for $380,350 to contact 160 landowners and encourage them to grow shiitake mushrooms and ginseng. By the way, that’s $2,377 per call to each landowner.

Omnibus Factoid: There’s $1.8 million to study and manage the odor from “swine manure” in Iowa. Look, I could never think of stuff like this to make it up. This is proof that sometimes, fact is stranger than fiction.

On the eve of this historic Inauguration, it is easy to recognize the impact this event will have on American History. Since the founding of our great Republic, Americans have always relished our most sacred of traditions…freedom. This is yet another display which will be viewed all across the globe, and allows us, as Americans, to display our commitment to our founding virtues.

I encourage all Americans to welcome our new Commander – in – Chief and President, Barack Obama. We may not always agree on policy, but we are united by our American tradition, culture, and patriotism.

May God Bless this President and May God Bless America.

We all care about the environment, but passing legislation like the Warner-Lieberman Climate Change bill will have very little effect on global warming.  However, the effect on a struggling economy would be devastating.

You have heard and will continue to hear Democrats talk about the unemployment rate and the need to pass extended unemployment benefits; all the while they will attempt to pass economy killing legislation.

They are either severely misguided in their judgment or this is just part of their plan to move everyone over to a government sponsored society.

You knew this day would come….Tax day. 

I have routinely supplied you with facts about the inadequacies of our tax code, but some of these might startle you.

• This year, 100% of the income the average American earns from January 1st to April 22nd (113 days) will go to pay federal, state, and local taxes in 2008, according to the Tax Foundation.  Therefore, April 23rd will be “Tax Freedom Day,” the day on which the average American will start working for anything besides taxes.  74 days of work this year will just be for paying federal taxes.
• Americans still spend more time working to pay taxes to all levels of government than they spend working to pay medical expenses, put food on their tables, and buy clothing combined.

If nothing is done, and Congress takes no action, by 2011 you can expect the following tax increase:

• The marginal income tax rates will increase as follows:

                --35% bracket will increase to 39.6%
                --33% bracket will increase to 36%
                --28% bracket will increase to 31%
                --25% bracket will increase to 28%
                --10% and 15% brackets will condense to 15%

• The capital gains rates for individuals will increase from 15% and 0% to 20% and 10%.
• Dividends will no longer be taxed at the capital gains rates for individuals, thereby increasing the double taxation of dividends by as much as 62%.
• The standard deduction for couples as a percentage of the standard deduction for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The top end of the 15% marginal income tax bracket for couples as a percentage of the top end for singles will decrease from 200% to 167%--restoring the marriage penalty.
• The child tax credit will decrease from $1,000 to $500.
• The “death” tax using the “stepped up” basis will return with a 55% maximum rate (including surtax) and a $1 million exemption, after years of decreasing “death” tax rates, increasing exemptions, and one year using the “carryover” basis to calculate the tax due.

Happy Tax Day! (note: heavy sarcasm)

Congressman Jeb Hensarling (R-TX) Chairman of the Republican Study Committee just offered an amendment for a one year moratorium on earmarks For the FY 2009 Budget.  It was quickly defeated along party lines. The vote was 16 ayes 21 noes, with 2 members not voting.

See below for a video of my argument in favor of the moratorium.

The President has an opportunity to send a clear message to Washington and its obsession with spending. 

Before the recess, Congress hurriedly sent the omnibus appropriations bill to the President littered with roughly 9,000 earmarks.  To no one’s surprise, many of these earmarks were not included in the text of the bill, but rather tucked away in the committee report, bypassing the new earmark rules.

On December 18, The Congressional Research Service (CRS), the nonpartisan research arm of Congress, stated that earmarks placed into committee reports do not have the force of law. 

Technically speaking, Committee Reports do not carry the force of law, and the President is not constitutionally required to enforce any language other than that of the legislative text, and in this case he should not..

Earlier this year, President Bush and Democratic Leaders agreed to cut earmarks to less than 7,000.  The Democratic Congress has clearly failed on their end of the deal. 

The President must hold up his end of the deal and send a signal to Washington and the American people that fiscal recklessness will no longer be tolerated.