Insight Offered

As the reincarnation of Bull Moose Teddy continues his never-ending campaign tour around the nation embracing the rhetoric of class divisiveness while simultaneously stifling any real opportunity for economic growth, we get this analysis of his latest wagon load of bread to be dispensed to the crowds gathered hungrily before the Circus Maximus.

Read this analysis of what the Great One proposes and what is suggested as a better alternative:

Payroll Tax Cut Extension Less Effective Than Simple Handout

Understanding the complexities of our progressive tax system is difficult. Some things simply can't be comprehended by the common man. So here's what that analysis covered and maybe a bit of what is between the lines.

The Payroll Tax Cut which the President wants extended is a reduction in your Social Security contributions. It was instituted last year and you probably didn't notice it unless you read about it in the news. You certainly would have had a tough time seeing it in your paycheck. Did you notice how the economy boomed as a result? Did you notice the huge drop in unemployment through the year? Did you create a couple of jobs yourself with all of that left-over cash?

Of course none of that happened. What did happen with some degree of certainty is that cash which should have flowed into the Social Security fund didn't. That means that payments to recipients were drawn from general revenues and the date certain of SS insolvency was moved closer.

The analysis points out that to get the $1000 or so which the President promises, an individual actually must be working! If you aren't working in the first place you don't get any cash to spend under any circumstances. So it really doesn't do much for his devoted followers.

What is much better, the loyal budget analysts suggest, is the trick the Messiah applied the previous year. That was rye bread for the hungry crowd compared to the stodgy old white bread of a payroll tax reduction. It was a direct payment of a chunk of cash. The requirement for actually doing any work was eliminated for the recipients of 2009. Much better in terms of appealing to his voter base. Yes, a direct payment without a linkage to actual earnings first is a much better stimulus. Imagine all the economic boosting that is going to do.

Meanwhile, we've got a loyal neighbor and trade partner next door who is simply begging to sell us their oil. We get oil from our hemisphere. We reduce dependence upon the Middle East and Venezuela. We acquire the product rather than China (who isn't on our side.) We get an instant 20,000 very nicely paid engineering and construction jobs in the heartland. We put our refineries to work. We make an existing pipeline route which has been moving product through the region more productive and we do it safely as proven by the record of the current Keystone pipe.

Surely you know how our leader would view that sort of win-win action. "Let them eat windmills...."