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H.R. 3962 - Midnight Madness

 Well they did it. Late, last Saturday night, just before midnight, Congress passed H.R. 3962 with Speaker Pelosi breaking her own promises of transparency, and ramming the bill through without giving her peers or constituents for whom she works, the chance to actually read the 2000 page monstrous bill carefully.


So with H.R. 3962 on it's way to the Senate, what exactly does it's passing in the house mean for us.

Let's take a look at some of its key provisions.


Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages.


Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.


Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.


Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)


Cap on FSAs (Page 325): FSAs would face an annual cap of $2500.


Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.


Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.


Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to the general public.


Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.


Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act


Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.


Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.


Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.


In addition, the nonpartisan Joint Committee on Taxation reported that the House version of the health care bill specifies that those who don’t buy health insurance and do not pay the fine of about 2.5% of their income for failing to do so can face a penalty of up to five years in prison!

The bill describes the penalties as follows:

  • Section 7203 - misdemeanor willful failure to pay is punishable by a fine of up to $25,000 and/or imprisonment of up to one year.

  • Section 7201 - felony willful evasion is punishable by a fine of up to $250,000 and/or imprisonment of up to five years.”

Are they kidding? Hard working, Americans may face the possibility of jail time just for not having health insurance?

A recent analysis by the Congressional Budget Office reported that the lowest-cost family non-group plan under HR 3862 (the Pelosi bill) would cost American families $15,000 by 2016.”

But wait, there is good news. Obama's bill would provide a subsidy to help pay for this, for families making $65,000 after they have paid out a measly 12% of their household income for mandatory health insurance. That's $7800!

Now that's change we all can get behind!

There's a link to H.R. 3962 on the home page. I encourage everyone to take some time and at least scan through some of this obnoxiously long bill. This bill addresses way more than just providing Americans with affordable health care. It is a total intrusion into the lives of hard working Americans. It's just one more way for this administration to control every aspect of our lives.

Yes, our current health care system can use some reform, but it is still the best health care in the world. Health care reform should be exactly that! Health care reform. It shouldn't be a back door for government to control every aspect of our lives. Lets slow it down a little, and do what's right for America, not the politicians and special interests.

1984 - It's almost here

"Very rarely did we communicate through the press anything that we didn't absolutely control,"

                                                                                      -Anita Dunn

 

 The White House this week announced that it was starting a more aggressive strategy aimed at pushing back hard against stories that are inaccurate or unflattering.

 

Sunday, White House communications director Anita Dunn blasted Fox News, calling it “a vehicle for Republican Party propaganda.”

 
Fox News is an important voice in American politics – but just don’t call it fair and balanced, claimed top White House aides this Sunday

“Obama considers Fox News not a news organization so much as it has a perspective,” said White House chief of staff Rahm Emanuel this week on CNN’s “State of the Union.” He also added that it’s a different take compared with other news outlets.

David Axelrod told ABC this week that “Fox News is really not news. It’s pushing a point of view.”

Anita Dunn said, “Fox is widely viewed as a part of the Republican Party: take their talking points and put them on the air, take their opposition research and put it on the air. And that’s fine. But let’s not pretend they’re a news organization like CNN is.”

 

Are these people kidding me?

 

Iran is closer to getting a nuclear bomb than it has ever been before…


Unemployment is close to 10%...


We have troops over in Afghanistan dying while the president can’t make up his mind as if he should follow the advice of his generals on the ground…


Health care reform is getting nowhere fast…


And all this White House can come up with is “we don’t like it when people don’t agree with us.”

 

Please! Let’s face it. This white House is the biggest bunch of thin skinned, cry babies this country has ever seen!

They seem to be more engaged in controlling what people say and think, rather than actually solving any of the most pressing problems facing this nation today. As a matter of fact, that’s all this administration seems to be interested in… controlling as many aspects of our lives as they can get away with.

 

That’s what they’re all about…control.


They’re trying to control what we eat, what we drink, what we drive, what we get paid, what we think, how we get our information.

 

Are you starting to see a disturbing pattern here? Does the Orwellian vision this administration has for the nation’s future scare you yet?

 

Yes we can….


Change….

 

Read the book 1984. It looks a lot like 2009.

 

Two of my favorite political philosophers, Mao Zedong and Mother Teresa -- not often coupled with each together, but the two people that I turn to most. 

                                                                                                     -Anita Dunn

                                                      White House Communications Director

Obama's Promises

“I want to hold our government accountable. I want you to hold me accountable.”

                                                     -Barack Obama

 

Obama has been in office for 267 days. That’s almost 9 months. What has he done since then? Just like all other politicians, Obama has made lots of promises on the campaign trail. But how many of them was he really sincere about? How many of them contain any kind of real substance? How many of them does he intend on keeping, and how many of them has he kept so far?

 

The people at the St. Petersburg Times have taken care of that for us. They have come up with something called the Obameter. It’s a web site that tracks the progress of Obama’s campaign promises, and with over 500 of them there’s a lot to keep track of.

 

Let’s take a look at some of his promises that are currently in the works.

 

Sign the Employee Free Choice Act:

Obama is a cosponsor and strong advocate of the Employee Free Choice Act, a bipartisan effort to make the unionization process more transparent and increase penalties on companies that violate employee rights.

 

Sounds like a good idea, right? Not so fast Mr. President… On the cover, this looks like a good bill, but there’s just one small problem. Card Check. Right now, employees vote for unionization by a process called a secret ballot election. Under Card Check, an employer would no longer have the right to insist on a secret ballot election if the union receives more than 50 percent of signed cards from employees. I’m sure his special interest buddies, like organized labor like this, but is it really good for America?

 

 

Increase the size of the Army and Marine Corps:

Obama says he plans on increasing the size of the Army by 65,000 troops and the Marine Corps by 27,000 troops. He says increasing our end strength will help units retrain and re–equip properly between deployments and decrease the strain on military families.

 

Really? How does he plan on doing this when he consistently shows his lack of concern for our troops over seas? Who in their right minds would sign up under a Commander in Chief that won’t act quickly and decisively by giving our fighting men and women the support they need?

 

Secure the borders:

Supports “additional personnel, infrastructure and technology on the border and at our ports of entry.”

 

Just last week Sheriff Joe Arpaio was stripped of his authority to arrest suspected illegal immigrants based solely on their immigration status by the Department of Homeland Security. Who is he supporting?

 

Push for a college football playoff system:

Will throw his weight around to lobby for a college football playoff system, which he said would only add three weeks to the season.

 

Now there’s something we can all get behind!

 

Improve climate change data records:

Will strengthen baseline climate observations and climate data records to ensure that there are long-term and accurate climate records. He says he will not use climate change research data for political objectives.

 

Come on… There is already plenty of good, accurate, solid data out there that the president and his Nobel Peace Prize winning buddies like Al Gore and Jimmy Carter continue to ignore because it doesn't’t support their own political agendas. Current data consistently shows the global temperature is in fact cooling, not rising. If the facts don’t support their agenda’s, they just simply re-write them.

 

Reduce dependence on foreign oil:

Will cut US oil consumption of foreign oil by 2.5 million barrels per day, take 50 million cars worth of pollution off the road, and save American consumers more than $50 billion at the gas pump.

 

That sounds great! Then how about we start doing some off shore drilling and some drilling in ANWAR? How about we start using some of our natural gas resources? America is the Saudi Arabia of natural gas. Let’s try some real solutions instead of taking over the auto industry and trying to force Americans to buy vehicles they don’t want to drive.

 

Let’s look at some of the promises broken…

 

End income tax for seniors making less than $50,000

Will eliminate all income taxation of seniors making less than $50,000 a year, eliminating taxes for some 7 million seniors, saving them an average of $1,400 a year.

 

Well it wasn’t part of the tax cuts in the economic stimulus bill known as the American Recovery and Reinvestment Act, nor was it in Obama’s first budget outline.

 

Allow five days of public comment before signing bills:

To reduce bills rushed through Congress and to the president before the public has the opportunity to review them.

 

Here are the eleven bills the president has signed since he’s been in office. You be the judge.

 

Public Law

Date Presented

Date Signed

Posted (Linked) for Comment?

Five Days?

P.L. 111-2, The Lilly Ledbetter Fair Pay Act of 2009

1/28/2009

1/29/2009

1/29/2009

No

P.L. 111-3, The Children’s Health Insurance Program Reauthorization Act of 2009

2/4/2009

2/4/2009

2/1/2009

No

P.L. 111-4, The DTV Delay Act

2/9/2009

2/11/2009

2/5/2009

Yes and No

P.L. 111-5, The American Recovery and Reinvestment Act of 2009

2/16/2009

2/17/2009

2/13/2009

No

P.L. 111-6, Making further continuing appropriations for fiscal year 2009, and for other purposes

3/6/2009

3/6/2009

No

n/a

P.L. 111-7, A bill to designate the facility of the United States Postal Service located at 2105 East Cook Street in Springfield, Illinois, as the “Colonel John H. Wilson, Jr. Post Office Building”

2/26/09

3/9/2009

No

n/a

P.L. 111-8, The Omnibus Appropriations Act, 2009

3/11/2009

3/11/2009

3/6/2009

No

P.L. 111-9, To extend certain immigration programs

3/18/2009

3/20/2009

No

n/a

P.L. 111-10, To provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958, and for other purposes

3/19/2009

3/20/2009

No

n/a

P.L. 111-11, The Omnibus Public Land Management Act of 2009

3/30/2009

3/30/2009

3/30/2009

No

P.L. 111-12, The Federal Aviation Administration Extension Act of 2009

3/24/2009

3/30/2009

No

n/a

 

 

Tougher rules against revolving door for lobbyist and former officials:

No political appointees in an Obama administration will be permitted to work on regulations or contracts directly related to their prior employer for two years.

 

Well, as has been frequently displayed in the Obama White House, there is an exception to every rule. Namely, William Lynn, a former lobbyist for Raytheon, who if confirmed, would be the top operations manager at the Pentagon. Or Jocelyn Frye. She’s the director of policy and projects in the Office of the First Lady. She was a former lobbyist for the National Partnership for Women and Families from 2001 to 2008. Then there’s Cecilia Munoz, who is now the director of intergovernmental affairs in the Executive Office of the President. She manages the White House’s relationships with state and local governments. She formerly lobbied for the National Council of La Raza, a Hispanic civil rights group between 1998 and 2008.

 

Allow penalty-free hardship withdrawals from retirement accounts in 2008 and 2009:

Has called for legislation that would allow withdrawals of 15% up to $10,000 from retirement accounts without penalty.

 

We really like this one! It would allow cash strapped workers to take money from their retirement accounts without the usual 10% penalty on top of regular taxes. The problem is it hasn't been included in the economic stimulus bill. It hasn't been part of Obama’s budget outline either. It’s just vanished…

 

Create a $3,000 tax credit for companies that add jobs:

Existing businesses would receive a $3,000 refundable tax credit for each additional full-time employee hired.

 

Great! We need to create more jobs! Too bad this promise wasn’t part of the American Recovery and Reinvestment Act of 2009. Maybe they’re just waiting for all those new “green jobs” they’ve been talking about to just grow and start to blossom.

 

Now, let’s take a look at some of the promises kept…

 

Sign the UN Convention on the Rights of Persons with Disabilities:

This is the first human rights treaty approved by the UN in the 21st century and a vital foundation for respecting the rights of people with disabilities worldwide.

 

Right… the UN is in the fore front of promoting human rights.

 

Direct military leaders to end the war in Iraq:

On “my first day in office, I will give the military a new mission; ending this war."

 

That makes a great bumper sticker. How about a plan and some resources to go along with that directive?

 

Give a speech at a major Islamic forum in the first 100 days of his administration:

We need to make it clear that we are not at war with Islam, and that we need their help to defeat the prophets of hate and violence...

 

I don’t know about you, but I’m sure the people of the Middle East that didn’t have the chance to vote for Obama appreciate that and the apology tour he went on at the beginning of his administration.

 

Grant Americans unrestricted rights to visit family and send money to Cuba:


It’s no wonder Fidel Castro loves this guy!

 

Establish an Energy Partnership for the Americas:

This will help Latin American and Caribbean nations become more energy independent and promote sustainable growth for the region.

 

It’s no wonder Jugo Chaves loves this guy!


Support increased funding for the NEA:


Was there ever any doubt?

 

Add another Space Shuttle Flight:

Use the private sector to improve spaceflight:

Partner to enhance the potential of the International Space Station:

Explore whether the International Space Station can operate after 2016:


All admirable objectives and well deserving of the president’s time. But, don’t you think there are just a few more pressing problems facing our nation today that should have maybe got his attention and action first?

 

Appoint the nation’s first Chief Technology Officer:

Will appoint the nation’s first CTO to ensure that our government and all of its agencies have the right infrastructure, policies and services for the 21st century.

 

Just what we needed…Another Czar!

 

Appoint at least one republican to the cabinet:


Thanks a lot.

 

Get his daughters a puppy:

The pledge is Sasha and Malia will get their dog, win or lose.

 

You can find a link to a report card on all of the president’s campaign promises on our home page. The president has made a lot of promises to a lot of people. Has his time in office been well placed, or has he just been wasting time? Is he looking out for we the people, is he pursuing some hidden global agenda or is he just looking out for the special interest that got him into office?

 

What do you think?

 

Support Our Troops Now

"Failure to gain the initiative and reverse insurgent momentum in the near-term (next 12 months) -- while Afghan security capacity matures -- risks an outcome where defeating the insurgency is no longer possible."

                                                 --US General Stanley McChrystal

 

 

On March 27 the president announced a "comprehensive, new strategy" aimed at preventing the Taliban or Al Qaeda from going unchallenged or establishing a base for terrorists "who want to kill as many of our people as they possibly can."

But a few days later he said he is not prepared to offer a decision on troop levels until he decides on the mission for Afghanistan.

That was back in March. Not much has changed since then except more American Troops have died on foreign soil.

"Until I'm satisfied that we've got the right strategy I'm not going to be sending some young man or woman over there -- beyond what we already have," Obama said in an interview that aired on NBC's "Meet the Press" back in March.

The president feels he’s justified in not sending any more young people over to what seems likely to be a certain defeat, based on the current path he and his administration are strolling down.

But what about the young people already over there? Are they justified when they expect their Commander in Chief to support them? Are they justified when they expect their Commander in Chief to heed the advice of his General, a General he himself appointed to take over operations in Afghanistan?

The Obama administration previously told General McChrystal to delay presenting his force recommendation until he was asked for it.

Sen. John McCain was quoted saying, "What I really don't understand ... is why you would tell your general in the field not to send his recommendations for the troop levels that are needed in order to implement a strategy which, according to the chairman of the Joint Chiefs of Staff, was formulated last March.”

"Any leader, I think, would want to get the maximum amount of information from your people you have given positions of responsibility."

In his assessment of the situation, General McChrystal warned that more troops are needed within the next year or the war "will likely result in failure."

President Obama seems to heed the advice and opinions of others more than he acts on the recommendations of his General in charge.

President Obama attended a series of high-level meetings on Afghanistan with a one-on-one talk with NATO's Secretary General. The NATO chief said that turning the tide in Afghanistan requires a change in tactics. He wants to focus equally on winning support from Afghan civilians. The two discussed strategy and, the request from the top U.S. commander for thousands more.

President Obama said "We both agree that it is absolutely critical that we are successful in dismantling, disrupting, destroying the Al-Qaeda Network." 

Nice sound bite.

Then how about listening to the people you have placed in charge on just how to go about accomplishing that?

The White House says the President wants to decide on a new strategy "before" he makes a decision on sending more troops. The President's top advisors don't all agree on a strategy. Some want more troops while others want a new focus for the ones that are already there. Whatever the final decision, the next step will be to convince congress, where many Democrats are reluctant to commit more soldiers to an increasingly unpopular war.


Britain
's top general in Afghanistan has backed General McChrystal call for more troops.


Lieutenant-General Jim Dutton, the deputy commander of NATO’s International Security Assistance Force, told The Times newspaper that victory was a matter of "straightforward force ratios".

 

"If you want to achieve long-term stability, and therefore a lack of terrorism potential in an area, you need to be doing more than simply patrolling the skies," Dutton said.

 

He said he supported US General Stanley McChrystal's request for a troop buildup in the country to counter the Taliban insurgency.


Dutton said the ideal ratio of civilians to security forces was 50:1. In Afghanistan that would mean 560,000 Afghan and international soldiers for an estimated population of 28 million. There are now more than 100,000 NATO-led troops and 174,000 Afghan security forces.


The president should stop taking advice from politicians and diplomats, and start listening and acting on the recommendations of the Generals on the ground. This is a winnable war. We should be in it to win! Our troops should be given all the resources they need to make this a quick and decisive victory. We should not allow our Politician’s to turn this into another Vietnam!


Support Our Troops or Bring Them Home Now!

Obamacare - Taxes For All

Now that the various healthcare plans are being reduced to print, the financial details are emerging and with them a fundamental conclusion is becoming evident: The Obama plan is a giant tax increase for much of the American people (not just the rich).

Start with the mandate that falls on those whose welfare is the supposed object of the entire program — the uninsured. According to the Congressional Budget Office, the average uninsured person or family will have to pay between 15 and 20 percent of his or their total income on health insurance (counting premiums, deductibles and co-payments) before any of the subsidy in the Baucus bill kicks in. Even in the more generous House bill, the tab that the uninsured must pay is very, very high.

Most uninsured would likely be quite happy to avoid paying this much of their income for health insurance. But they will be forced to shell out the money under the program. Others would want catastrophic coverage (which for the young would likely not be too costly) but the Obama program requires comprehensive insurance that is costly to satisfy the government requirement.

Having spent the entire campaign speaking about “affordable” coverage, it turns out the program is not at all affordable, but a massive new tax on the average uninsured American.

Then there is the tax on health insurance premiums that is to finance about a quarter of the subsidy for the uninsured. This tax, billed as only to be levied on “gold-plated” policies, will, in fact, reach down to the average American. The Baucus bill specifies that the tax of 35 percent would be put on all premiums over $8,000 for an individual and on proportionately higher premiums for families. Current estimates are that about one-tenth of the current health insurance policies would be taxable. But the $8,000 premium level that will trigger coverage is not indexed for inflation, let alone for medical inflation, which typically runs twice as high. ObamaCare will take effect in 2013. By then, the percentage of Americans subject to the tax will doubtless expand dramatically. Indeed, this trigger is a new Alternative Minimum Tax waiting to happen. As inflation pushes more and more Americans into tax eligibility, it will become a universal health insurance excise tax of 35 percent. While the tax will be imposed on health insurers and employers, it will, obviously, be passed along to the policyholders.

So if you are insured, you will increasingly have to pay 35 percent more for the privilege. And if you are uninsured, you will have to pay one-fifth of your income in premiums, deductibles and co-payments before any subsidy kicks in.

And then there is the final piece of the puzzle — the $500 billion cut in Medicare that will pay for the bulk of the subsidy under the bill. We are literally slicing services to the elderly in order to transfer healthcare to others. Obama’s claim that only “waste and inefficiency” in Medicare will be cut is, at best, disingenuous. Most of the cuts will be in reimbursement for doctors and hospitals. That will lead to less care, shorter office visits, fewer tests, fewer surgeries and less care. And it will lead to fewer doctors. As a result, a survey by the Investor’s Business Daily indicates that 45 percent of all doctors would “consider retiring or closing their practices” if the Obama bill passes. The result will be a greater scarcity of medical services, even as the patient load expands by at least 30 million people.

Each of these fiscal pieces is movable. The left will pressure Obama to increase the subsidy to the uninsured. But that will necessitate raising the Medicare cut borne by the elderly or increasing the tax on health insurance policies — or adding to the deficit. Any of these options will alienate moderate senators. Balancing these competing priorities only works if the taxpayers don’t know what is going on.

If the average middle-income American family realizes that it will have to pay one-third more for health insurance or the uninsured learn that they will have to pay a fifth of their income to get insurance, they will make their dissatisfaction felt by their Democratic senators.

All of which begs the fundamental question: How willing are Democratic congressmen to commit political suicide? Are they willing to lose the elderly and to antagonize the uninsured as the health insurance cops chase them around the block? When does JFK’s comment kick in: “Sometimes party loyalty asks too much”?

By Dick Morris
09.23.2009

Published on TheHill.com September 22, 2009

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