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E-News 9/23/11

The Week Just Past: More Tax Increases from the White House

The President’s Dubious Deficit Reduction Number

President Obama’s ‘Soak the ‘Rich’ Tax

The “Buffet Tax”: An American Jobs Killer

Solyndra Must Have Been More “Shovel-Ready”

President Obama is Right to Support Middle East Negotiations in U.N.

U.S. Naval Academy Advances Cybersecurity Curriculum

The WeekJust Past: More Tax Increases from the White House

“For the first time since he submitted his unsatisfactory 2012 Budget proposal (rejected by the Senate 97-0) to Congress last winter, President Obama this week released a deficit-reduction proposal that was actually written down on paper. 

“The White House claims that the plan represents a ‘balanced approach’ that will increase the federal deficit initially by $300 billion in fiscal year 2012 (to pay for his ‘jobs plan’), but will reduce deficits by $3.2 trillion over the next decade,

“I have to say that claim is extremely misleading. In fact, when you strip away the budgetary gimmicks, the President’s plan achieves less than half the overall deficit reduction he is claiming, and is as wildly unbalanced as his February budget proposal.  It is basically a political manifesto!

“In his speech at the White House early this week, the President’s said his plan ‘cuts $2 for every dollar in new revenues.’  In reality, the scheme reduces the deficit by raising taxes $11 for every $1 in spending cuts.  Despite this massive tax increase, however, the President’s plan still fails to get deficits under control. Over the 10-year life of his proposal, the President still adds to the deficit by a total of $6.4 trillion by 2021 and the gross federal debt reaches nearly $25 trillion!

“We have got to get our economy moving again and the reality is thatan extra $1.5 trillion of tax increases on America’s families and small businesses is going to do very little to address America’s jobs crisis.

“Small businessmen and women everywhere they tell me about their fear of higher taxes.  And, they repeatedly say that ‘government needs to get out of the way!  

“President Obama had it right when he declared in 2009 that ‘you don’t raise taxes in the middle of a recession.’  I only wish the President Obama of 2011 would consult with the President Obama of 2009.”

                                                        Rodney Frelinghuysen

Recommended Reading: The President’s Dubious Deficit Reduction Number: The White House claims to have come up with $4 trillion in deficit reduction is misleading. The more accurate amount is barely half that, including about $1 trillion in domestic and security spending cuts already agreed to as part of the debt ceiling deal, and $1.5 trillion in tax increases on the wealthy. The administration gives itself credit for another $1 trillion by counting savings — already incorporated in any realistic base line — from winding down military operations in Iraq and Afghanistan.  Read the Washington Post story here.

President Obama’s ‘Soak the ‘Rich’ Tax

President Obama has unveiled another “millionaire tax,” which White House insiders are calling “the Buffett tax.”  But millionaires and billionaires would not be the only people tapped by the President’s proposal.  To name a few:

·        Airline passengers would see their federal security fees double from $5 to $10 for a nonstop round-trip flight and triple to $15 by 2017;

·        Federal workers would face an additional 1.2 percentage point deduction from their paychecks to contribute $21 billion more for their pensions;

·        Military retirees would pay a $200 fee upon turning 65 to have the government pay their out-of-pocket Medicare expenses. They'd also pay more for non-generic prescription drugs.

Administration budget documents describe these fees as budget “savings.”

Read the Wall Street Journal’s editorial, “The Buffett Alternative Tax” here.

More on the “Buffet Tax”: An American Jobs Killer

Former President Bill Clinton says now is not the time to hike taxes.  “I personally don’t believe we ought to be raising taxes ... This has been a dead flat economy.”

President Clinton understands that a tax increase now would just be another jobs-killer.  A “soak the rich” plan makes no sense in under current economic conditions. Soaking the only people left with disposable income to spend and keep working Americans working is one of the dumber things you can do at a time when you need the “rich” to spend more, not less. 

Read Charles Gasparino in the Monday New York Post, “How the Buffett Tax Will Kill Jobs”

Noted With Interest: Solyndra Must Have Been More “Shovel-Ready”

While President Obama is “campaigning” for more funds to repair bridges, roads and highways, it should be noted that there were 35 states that received less stimulus money in the 2009 so-called “stimulus” bill for their “shovel-ready” road, highway, and bridge projects than solar power company Solyndra got in the form of a guaranteed loan for its “green jobs” project.

President Obama is Right to Support Middle East Negotiations in U.N.

Palestinian President Mahmoud Abbas is on the brink of ignoring a range of international warnings by taking his bid for recognition of a Palestinian state to the United Nations Security Council. In doing so, he is violating prior agreements with the government of Israel and eroding the trust of all those in the Middle East who understand these complex agreements are the basis for future peace.

“A resolution to this age old conflict will only be achieved by direct negotiations.  It cannot be imposed from the outside,” Rodney said.  “I applaud the Obama Administration’s commitment to veto any resolution that includes a unilateral declaration of statehood that could short-circuit a genuine and lasting two-state solution.  It is time for the leadership of the Palestinian Authority to forgo their U.N. public relations campaign and return to the negotiating table without preconditions.”

Rodney observed that Congress is not inclined to sit idly by as the Palestinians refuse to renounce terrorism and recognize the legitimacy of the Israeli state. He predicted that the U.S. will likely reconsider its assistance program for the PA and other aspects of U.S.-Palestinian relations should the Palestinians choose to move forward in requesting a vote on statehood.

U.S. Naval Academy Advances Cybersecurity Curriculum

For the last several years, Rodney has served on the Board of Visitors of the United States Naval Academy.  The USNA’s freshman class will be the first “plebe” class of any military academy to have “cybersecurity” on its core curriculum, highlighting the importance of cyberwarfare as an emerging area of potential expertise for academy students.

The changes also support other cybersecurity work in progress at Annapolis that, like other branches of the armed forces and federal agencies in general, is making security of its IT infrastructure a top priority.

Each year, Rodney nominates many promising candidates for admission to the various service academies. High school students who wish to attend one of our nation's military academies – the United States Military Academy, the United States Naval Academy, the United States Air Force Academy, the United States Coast Guard Academy and the United States Merchant Marine Academy - should first speak with their guidance counselor.

For more information, visit:

http://frelinghuysen.house.gov/index.cfm?sectionid=46&sectiontree=7,46

Please feel free to call (973) 984-0711 if you have any specific questions.

For information on specific service academies, visit:

United States Naval Academy (Annapolis):

http://www.usna.edu/admissions/

United States Military Academy (West Point):

http://admissions.usma.edu/

United States Air Force Academy (Colorado Springs):

http://www.academyadmissions.com/

United States Coast Guard Academy (New London):

http://www.cga.edu/display.aspx?id=2904

United States Merchant Marine Academy (Kings Point):

http://www.usmma.edu/admissions/