Tonight, Rep. John Murtha (D-PA) will be hosting a gala dinner tonight at the Ritz-Carlton Hotel in Pentagon City for defense industry lobbyists who have received and who hope to receive millions of dollars worth of earmarks in FY 2009 appropriations bills.

Mr. Murtha will be joined by Reps. James Moran (D-VA) and Peter Visclosky (D-IN).  All are well known for their “Earmark for a Contribution” prowess.  Last year Roll Call found that these three members funneled millions of earmarked tax dollars to firms whose executives subsequently contributed hundreds of thousands of dollars to their campaign funds. 

This event has not gone unnoticed, RedState.com called initial attention to the soire, and they have now teamed up with the National Taxpayers Union, Americans for Prosperity, and Citizens Against Government Waste to hold a rally outside the event in defense of the taxpayer.

I would not be surprised if this is the first of many protests by the public who is fed up with the pork barrel politics of Washington.  

Last week, the House Republican Steering Committee decided against naming Jeff Flake (R-AZ) to the Appropriation committee. I am very disappointed to see this decision. If we are ever going to control spending in Washington, we will need to change the culture of the Appropriations Committee. Members who request to be on the Appropriations Committee usually do so because they want to spend money and that breeds a culture of spending and spenders. For example, I never wanted to be on that committee because I don't want to spend money. Neither does Jeff Flake. He wants to save money, not spend it. Jeff would probably not have been able to change much all by himself even if he had gotten the appointment. But he would have been a canary in the earmark mine shaft and it would have been a start. We would have begun the process of changing that culture to one that looks for spending to eliminate rather than earmarks to hand out.

Next year, there will be several Republican vacancies on the Appropriations Committee because of retirements. Apparently, Republican Conference leadership is not yet ready to fully embrace fiscal conservatism, the elimination of earmarks and lower spending. They will have another opportunity to change the culture in the next Congress. Maybe they will be ready then.

I hope so.

An article published in yesterday's Congressional Quarterly detailed the disparities of the current earmarking process.  I will spare you each and every minute detail, but I did feel that the research made a solid conclusion…the earmark process is not fair even if you overlook the abuses and overspending.

Acccording to the research done by CQ and Taxpayers for Common Sense, the winners of the process are almost all members of the Appropriations committee, and they tend to be boastful of their pork, no matter how egregious.  15% of House Members serve on the Appropriations Committee, yet that 15% receives 49% of the solo-sponsored earmark dollars and cosponsors 32% of shared projects.

From these numbers it seems to me that now more than ever we need to hold the Appropriations Committee accountable for its actions.  In my mind we need a change and an immediate moratorium on earmarks so that the process can be reformed to make it fair, equitable, and fiscally sound.

By now, I am sure you are well aware of the outrage that has engulfed the nation regarding Berkeley City Council’s criticism of the Marine Corps and their recruiting station in Berkeley California.

Those of you that frequently read my blog know that I have taken the lead in calling for earmark reform. The Semper Fi Act is intended to show the City of Berkeley that their actions have consequences. There is no reason for the rest of us, outside the city of Berkeley, to subsidize their imprudent actions with our taxpayer funds.

The City of Berkeley stands to lose $2 million worth of earmarks.  The most egregious is $243,000 for the organization Chez Panisse to create gourmet organic school lunches in the Berkeley School District.  Chez Panisse is dedicated to “environmental harmony” and their menu features "Comt cheese souffl with mche salad," "Meyer lemon clairs with huckleberry coulis;" and "Chicory salad with creamy anchovy vinaigrette and olive toast."

I want to remind you that this is for the Berkeley Public School District.  This is an earmark that we should certainly strip if they had done nothing against the Marine Corps.

This earmark by itself is particularly egregious and the American taxpayer should not be required to foot the bill.

The Roger Clemens Congressional hearing just ended here on Capitol Hill after four hours of nail biting testimony.

Why is Congress spending time on baseball?  We have a deficit that is now heading back up over $400 billion. We have unsustainable programs in Social Security and Medicare. We have no control over our immigration policies and radical terrorists around the world who want to kill us.

The why is clear. It's great spectacle and generates lots of publicity and attention for members of Congress. But Major League Baseball is a private enterprise, albeit one with a federally granted monopoly. The products alleged to have been used are legal with a prescription.

It seems to me that this is an issue for baseball to work out in its own rules to please its customers, the fans. It is not something that rises to the level of Congressional investigations.

But gee, if we didn't do this people might spend more time looking at earmarks and overspending. Now we wouldn't want that would we?

I have received many comments and emails in response to the Semper Fi Act that I introduced into the House of Representatives last week.  I feel that it is necessary to give you an update on what has happened since my posting last week.

The nation has literally erupted in protest in reaction to the decision from the Berkeley City Council telling the Marines that their recruiting office is not welcome in their city, and if recruiters choose to stay, they do so as “uninvited and unwelcome intruders”.

Last night, the City Council met once again and decided to rescind the letter to the Marine Corps.  This is an ineffectual attempt at appeasing the situation and I have no intention of rescinding the Semper Fi Act (H.R. 5222). To say that the Marines are welcome but they strongly object to the recruitment of young people into the Marine Corps is ridiculous. It's like saying I love hamburgers but strongly oppose them if they are cooked and made out of meat.  Furthermore, according to press accounts, the radical anti-war group Code Pink will still be granted use of the parking space in front of the recruiting office once a week for six months and a free sound permit for protesting once a week.

Even with this toothless change, the Berkeley City Council continues to indicate that they have a disdain for and lack of appreciation for the Marine Corps, and the service they provide to the country.

You might have heard about Berkeley’s City Council's recent vote to tell the Marines to close their recruiting station in the city. With this vote, they told the Marines that their recruiting office is not welcome in their city, and if recruiters choose to stay, they do so as an uninvited and unwelcome intruders.

In response to this, I will be introducing the “Semper Fi Act” in the House of Representatives.  This act rescinds all of the funding contained in the FY 2008 Omnibus Appropriations Act for the City of Berkeley, CA and transfers those funds to the Marines for recruiting

During the meeting, the City Council also voted to give protest group Code Pink a parking space in front of the recruiting office once a week for six months and a free sound permit for protesting once a week. According to the City Council agenda, they "Encourage all people to avoid cooperation with the Marine Corps recruiting station, and applaud residents and organizations such as Code Pink, that may volunteer to impede, passively or actively, by nonviolent means, the work of any military recruiting office located in the City of Berkeley."

The Marine Corps has been protecting Americans and our freedoms for 233 years.  Americans understand and appreciate that. You don’t have to join the Marine Corps, or even like it, but you should at the very least let the Marines do their job and respect them for it.

The action by the Berkeley City Council indicates that they have a disdain for and do not appreciate Marines for what they do and have done for this country, our democracy, and our freedoms.  If they have so little respect and understanding of that, there is no reason for the rest of us, outside the city of Berkeley, to subsidize their actions with our taxpayer funds.

In light of the debate over the economic stimulus package, many people have forgotten about the impending danger of major tax increases.  Below are some of the tax increases you will get if Congress does nothing.  These increases will be automatic unless Congress does something to stop them. 

This is yet another reason why I opposed the stimulus package.  Making the current tax rates permanent is more important than any one time wealth redistribution that is disguised as a rebate.

2008:

• The exemption for the Alternative Minimum Tax (AMT) will decrease from $44,350 to $33,750 for single filers and from $66,250 to $45,000 for married couples filing jointly.
• Taxpayers will not be allowed to deduct their state and local general sales taxes from their federal income tax. 
• Taxpayers will not be able to adjust their income for qualified tuition and related expenses.
• Businesses will not be able to claim a tax credit for research, experimentation, and development activities.
• First-time homebuyers in the nation’s capital will no longer be able to claim a tax credit.

2009:

• Taxpayers will no longer be able to claim a tax credit for certain residential energy efficient property, a tax credit for the construction of new energy efficient homes, or a tax deduction for energy efficient commercial building property.

2010:

• The Section 179 business expensing cap will decrease from $128,000 (plus inflation after 2008) to $25,000, and the starting point for the phase-out of this deduction will decrease from $510,000 (plus inflation after 2008) to $100,000.

2011:

•   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. 

Today, the Institute of Policy Innovation (IPI) awarded “A’s” in Tax Policy 101 to thirty-five members of the House.  Not coincidentally these thirty-five members all voted against the “stimulus package” that passed the House on January 29.  Yours truly was among them.  In fact, I was the only one to speak out against the package on the floor.  You can find the ten Democrats and the twenty-five Republicans that also voted against it below.

Brian Baird (D-WA)
Marion Berry (D-AR)
Allen Boyd (D-FL)
Paul Broun (R-GA)
Michael Burgess (R-TX)
John Campbell (R-CA)
Howard Coble (R-NC)
Jim Cooper (D-TN)
Barbara Cubin (R-WY)
Tom Davis (R-VA)
Nathan Deal (R-GA)
Jeff Flake (R-AZ)
Randy Forbes (R-VA)
Phil Gingrey (R-GA)
Louie Gohmert (R-TX)
Virgil Goode (R-VA)
Duncan Hunter (R-CA)
Tim Johnson (R-IL)
Marcy Kaptur (D-OH)
Jack Kingston (R-GA)
John Linder (R-GA)
Ron Paul (R-TX)
Collin Peterson (D-MN)
Ted Poe (R-TX)
Tom Price (R-GA)
Dana Rohrabacher (R-CA)
Ed Royce (R-CA)
Loretta Sanchez (D-CA)
James Sensenbrenner (R-WI)
John Shadegg (R-AZ)
Adam Smith (D-WA)
Tom Tancredo (R-CO)
Gene Taylor (D-MS)
Lynn Westmoreland (R-GA)
Robert Wexler (D-FL)

The President released his budget for Fiscal Year 2009 today.  If it seems like we’ve just finished the whole budget charade, it’s because we did.  Anyhow, I have not had a chance to read the whole thing yet, but here is link if you would like to read up. 

Please check back, updates will be forthcoming.

Last week the House approved a so-called “economic stimulus” package.  I opposed this bill in part because it will send checks to those who don’t pay any income tax…and yes that includes the millions of people who file fraudulent tax returns in order to take advantage of the Earned Income Tax Credit (EITC).

The EITC is a fraud infested program that sends people a check of up to $4,716 if they claim they made less than $12,590 last year (single filer).  Statistically, roughly 1/4 to 1/3 of these EITC returns are based on phony or falsified claims.  The IRS estimates that between 27 and 32 percent of EITC dollars claimed are fraudulent.

Think about it, 22-millon EITC returns were filed in 2006; which generated checks from the government totaling $43.7 billion. If you run the numbers, you will find that 1/3 of 22-million is 7.3 million.  That’s 7.3 million claims a year that are a scam.  The cost to the taxpayer is somewhere in the area of $11-billion to $14.6 billion.

Under this “bipartisan plan” checks will be sent to those who make $3,000 or more per year.  These people don’t pay income tax and the people that do disclose their income, it’s for only one reason….to file for an EITC check.  Now, under this plan, they will get a bonus of $300 each—including fraudulent returns.

The IRS also estimated that 15% of all tax fraud that occurs is filed by prison inmates!  In 2004, over 18,000 of these claims were detected. 

The government should not be sending money to people who don’t pay income taxes. This won’t stimulate the economy, and the only thing happening here is an attempt at a “political stimulus”, attempting to shore up the miserable approval ratings of this Congress.