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Pass the video around, the election is on April 5, 2011.
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Taxes, earmarks, federal pay freezes and government expenditures are all topics of discussion these days and I continue to hear one loud, annoying concentrated chorus from the left; tax the rich.... earmark bans are only a drop in the bucket so why bother, spending freezes for federal workers will only save a couple billion and only save $50 billion over 10 years...etc, etc, etc..In the late 1980s, one of us, Richard Vedder, and Lowell Gallaway of Ohio University co-authored a often-cited research paper for the congressional Joint Economic Committee (known as the $1.58 study) that found that every new dollar of new taxes led to more than one dollar of new spending by Congress. Subsequent revisions of the study over the next decade found similar results.
We've updated the research. Using standard statistical analyses that introduce variables to control for business-cycle fluctuations, wars and inflation, we found that over the entire post World War II era through 2009 each dollar of new tax revenue was associated with $1.17 of new spending. Politicians spend the money as fast as it comes in—and a little bit more.
We also looked at different time periods (e.g., 1947-2009 vs. 1959-2009), different financial data (fiscal year federal budget data, as well as calendar year National Income and Product Account data from the Bureau of Economic Analysis), different lag structures (e.g., relating taxes one year to spending change the following year to allow for the time it takes bureaucracies to spend money), different control variables, etc. The alternative models produce different estimates of the tax-spend relationship—between $1.05 and $1.81. But no matter how we configured the data and no matter what variables we examined, higher tax collections never resulted in less spending.
The number of federal workers making more than $150,000 a year has grown ten-fold in the past five years and doubled since Mr. Obama took office, according to a USA Today study earlier this month. Since 2000, federal pay and benefits have increased 3 percent annually above inflation, compared with 0.8 percent for private sector workers, according to data cited by the newspaper.
This will save $2 billion over the remainder of this fiscal year, $28 billion in cumulative savings over the next five years, and more than $60 billion over the next 10 years. The freeze will apply to all civilian federal employees, including those in various alternative pay plans and those working at the Department of Defense – but not military personnel.
If Congress endorses the idea, the freeze would save $2 billion in 2011 and roughly $6 billion a year over the next 10 years – a drop in the bucket of the federal budget deficit, which is expected to top $1 trillion this year and next year....
In his press conference, Obama claimed that the move would save the government $28 billion over five years. Taking that number at face value, that would represent a sixth-tenths of one percent reduction in the projected $4.52 trillion deficit over that same period (2011 through 2015). It would be the equivalent of a person who expects to rack up $10,000 of of credit card debt over the next five years touting the fact that he's found a way to reduce his expenses by $60 over that time period. In football terms, it would be like a kickoff return that gains about a half of a yard.
Freezing non-defense discretionary spending at current levels would therefore only produce a total savings of $35 billion in 2015. That year, the budget deficit is expected to be around $760 billion. Saving $35 billion would solve less than 5 percent of the problem.(End side note)
Democratic Party officials are blasting out emails accusing the Senate's second ranking Republican of backtracking on his pledge not to seek earmarks, but a closer look by CNN shows their accusations appear unfounded.
$200 million project to provide drinking water for an Indian tribe in Senate Minority Whip Jon Kyl's home state of Arizona.
Dan DuBray, a spokesman for the Bureau of Relocation, part of the Interior Department, says the $200 million was part of a settlement they negotiated with the tribe, and that everyone agreed it was a good idea to pair it with the black farmers' legislation, because by law settlements such as this must be approved by Congress.
"We don't see it as an earmark at all," said Dan DuBray.
Also included in the 272-page legislation are settlements for other Native American groups outside Kyl's state of Arizona: Montana's Crow Tribe and New Mexico's Taos Pueblo and Pojoaque River Basin communities. Democrats Max Baucus (Montana) and Jeff Bingaman (New Mexico) championed funding for those projects.

A Hail Mary pass is a sports term for a football team, desperate to score before the time runs out and they throw a long pass, praying their own team member catches it and scores.Analysis
As we reported last week in an Ask FactCheck item on this subject, the claim that money from foreign corporations is funding Chamber of Commerce attack ads originated with a Democratic-leaning organization headed by John Podesta, former chief of staff for President Bill Clinton. That report noted that the chamber took in foreign dues (without reporting the amount) and then said that the chamber is "likely skirting longstanding campaign finance law" against foreign spending in U.S. elections. The word "likely" made clear the author was engaging in speculation, which the chamber flatly denied. Tita Freeman, the chamber’s vice president of communications and strategy, told us that money the chamber takes in from foreign corporations "is not used for political ads."
Now others have challenged the claim. The New York Times reported:
New York Times, Oct. 8: [T]here is little evidence that what the chamber does in collecting overseas dues is improper or even unusual, according to both liberal and conservative election-law lawyers and campaign finance documents.
In fact, the controversy over the Chamber of Commerce financing may say more about the Washington spin cycle — where an Internet blog posting can be quickly picked up by like-minded groups and become political fodder for the president himself — than it does about the vagaries of campaign finance.
The Times reported, for example, that U.S. subsidiaries of corporations based overseas have set up more than 160 political action committees. The Federal Election Commission states that this is perfectly legal so long as U.S. residents make the decisions and provide all the funds. The Times also noted that groups such as the AFL-CIO and the Sierra Club also have international affiliations. The AFL-CIO has pledged to spend $53 million on the midterm elections, mainly supporting Democrats.
Nevertheless, the Democratic National Committee repeated the foreign-money claim in an ad it released to weekend news shows. It was played on CBS’ "Face the Nation."
It’s certainly true that millions are being spent without public disclosure, and that much of the money is coming from corporations taking advantage of a Supreme Court ruling easing restrictions on political spending. But using foreign funds to finance political ads is still a legal violation. Accusing anybody of violating the law is a serious matter requiring serious evidence to back it up. So far Democrats have produced none.
Democrats expressing reservations have worked on behalf of moderate candidates with business backing. They recalled past attacks on former President Clinton and Vice President Al Gore for receiving foreign money and warned that White House charges now could lead to GOP reprisals, particularly if Republicans gain control of the House.
"The White House may reap the whirlwind," said one top Democratic staffer. "What are we going to do next year if a Republican Congress is making baseless claims about President Obama? We'll want the media to hold them accountable to the facts and the evidence."
The Democratic staffer and a handful of other prominent Democrats spoke on condition of anonymity because of the political sensitivity of the topic.
Yet while Obama is trying to tie Republicans and some of their backers to the specter of foreign interference in U.S. elections, an examination of the evidence provides little support for the claims.Pamela Geller says "Finally":
"We have no idea if the Chamber or any 501(c) organization as defined by the IRS code, is taking foreign money for the purposes of playing politics," said Dave Levinthal of the Center for Responsive Politics. "Saying that that foreign money is actually going toward attack ads or any type of messaging in the political realm, you just don't know. It's speculation and nothing more."
Some funding for the Chamber of Commerce does come from foreign companies and foreign-based Chamber affiliates (called "AmChams") similar in operations of some international nonprofit groups and labor unions.
Chamber of Commerce director of media relations J.P. Fielder said that money goes to the group's general fund and then to the international division, keeping it away from any political activities.
"No foreign money is used to fund our political activities," the Chamber said in a statement, citing the rules established by Congress more than a century ago.
"We are seeing an attempt to demonize specific groups and distract Americans from a failed economic agenda," said the Chamber's vice president for government affairs Bruce Josten of the charges.
Finally.
I have been calling for a special prosecutor for years, ever since I exposed the millions Obama received from Muslim nations, Hamas-controlled Gaza and other foreign countries.