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)

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.