Barack H. Obama: The H stands for Handout

The Democratic Party's nominee for President and junior Senator from Illinois Barack H. Obama has suffered unmercifully on the web for his middle name.

Principal and Policy believes that the H stands for Handout. Consider the following:

- Subsidies to cover the $100 per vehicle cost to install flexible-fuel tanks that can run on biofuels
- Provide generous tax incentives to help automakers upgrade their existing plants in order to accommodate the demands of producing more fuel-efficient vehicles.
- Subsidies to auto manufacturers to partially defray legacy health care costs, but only if the manufacturers are willing to invest the savings right back into the production of more fuel-efficient cars and trucks.
- tax credits ($7000!!!) to consumers for the purchase of hybrid and ultra-efficient vehicles
- restore cuts to public housing operating subsidies
- income-related federal subsidies to individuals and families who do not qualify for Medicaid or SCHIP but need assistance to buy into the new public health plan or purchase a private health care plan.
- provide $4 billion in retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers
- Everyone will be able buy into a new national health insurance plan -- If you cannot afford this insurance, you will receive a subsidy to pay for it. If you have children, they will be covered.
- we will reduce costs for business and their workers by picking up the tab for some of the most expensive illnesses and conditions.
- Earned Income Tax Credit - will double the number of single workers who receive the EITC and triple the benefit for full-time workers making the minimum wage, from the $175 they get today to $555.
- expand the Child Tax Credit to an additional 600,000 more Americans, who would receive $1,000 per child.
- provide an income tax cut of up to $500 per person - or $1,000 for each working family - to offset the payroll tax that they're already paying.
- give retired folks the same kind of relief - no retiree making less than $50,000 each year will have to pay income tax. This will eliminate income taxes for about 7 million Americans, at a savings rate of roughly $1,400 each year. And 22 million seniors won't even have to file a return and hire an expensive tax preparer.
- universal homeowners' tax credit - I'll create a mortgage interest credit so that both itemizers and non-itemizers get a break. This will immediately benefit 10 million homeowners in America. The vast majority of these are folks who make under $50,000 per year, who will get a break of 10 percent of their mortgage interest rate. For most middle class families, this will add up to about $500 each year.
- I will launch a Clean Technologies Venture Capital Fund that will provide $10 billion a year for five years to get the most promising clean energy technologies off the ground.

It is tempting to believe that ol' Handout never met a subsidy he didn't like. But, I did find three he would cut:

- end to subsidies for oil and gas companies (is this a tax increase?)
- eliminate subsidies to the private insurance Medicare Advantage program
- eliminate subsidies to private lenders in all federal student loans

Well, that might be some savings.... but I am not sure it will offset that long list of subsidies above.

Principle and Policy cannot afford Barack Handout Obama.

Barack Obama: The Anti-Democrat?

Principal and Policy finds it mildly ironic that Senator Barack Obama (D - Illinois) would be the presidential nominee of the Democratic Party given his enthusiastic support of Senate Bill 1926.

Obama has been promoting SB 1926 since the Ohio primaries, but even as recently as today at a GM Plant in Janesville Wisconsin he said:

For our economy, our safety, and our workers, we have to rebuild America. I’m proposing a National Infrastructure Reinvestment Bank that will invest $60 billion over ten years. This investment will multiply into almost half a trillion dollars of additional infrastructure spending and generate nearly two million new jobs – many of them in the construction industry that’s been hard hit by this housing crisis. The repairs will be determined not by politics, but by what will maximize our safety and homeland security; what will keep our environment clean and our economy strong. And we’ll fund this bank by ending this war in Iraq. It’s time to stop spending billions of dollars a week trying to put Iraq back together and start spending the money on putting America back together instead.”

SB 1926 is summarized as follows:

An independent agency of the Federal government administratively similar to the Federal Deposit Insurance Corporation (FDIC). The "Bank" would have some strange banking powers: the ability to conduct hearings, issue subpoenas, obtain information from any other federal agency simply by asking (other agencies are required to comply), accept for funding any infrastructure project with a Federal price tag of $75 million or more (the list of possibilities goes on for two pages), unilateral authority to determine the appropriate Federal share of spending for every project accepted, to act as a centralized entity to provide financing for qualified infrastructure projects; to issue general purpose infrastructure bonds, and to provide direct subsidies to qualified infrastructure projects from amounts made available from the issuance of such bonds; to issue project-based infrastructure bonds for the financing of specific qualified infrastructure projects; to provide loan guarantees to State or local governments issuing debt to finance qualified infra
structure projects, under rules prescribed by the Board, in a manner similar to that described in chapter 6 of title 23, United States Code; to issue loans, at varying interest rates, including very low interest rates, to qualified project sponsors for qualified projects; to leverage resources and stimulate public and private investment in infrastructure; and to encourage States to create additional opportunities for the financing of infrastructure projects.

Here's what you didn't read:
- NO votes on these projects in Congress
- NO votes on these projects in the Senate
- NO opportunity for the President to concur or veto.
- NO opportunity for the Congress and Senate to sustain or override a veto.
- NO method for the "loans" to be paid back

This is simply the most ANTI-DEMOCRATIC proposed legislation that Principal and Policy is aware of.

Given that the Bank can issue debt in that name of the taxpayers, it is also likely unconstitutional given Article 1, Section 9 which states in part

No money shall be drawn from the treasury, but in consequence of appropriations made by law; and a regular statement and account of receipts and expenditures of all public money shall be published from time to time.

So the question is: Does Obama believe in Democracy or Not?

Lexington: McCain's Waterloo?

This blogger has been frustrated throughout the primary season by Senator McCain's (R - Arizona) lack of specificity regarding his policy proposals. Recently the senior Senator from Arizona has become much more specific about his energy plans. The Senator's website contains the following quote:

"In recent days I have set before the American people an energy plan, the Lexington Project -- named for the town where Americans asserted their independence once before. And let it begin today with this commitment: In a world of hostile and unstable suppliers of oil, this nation will achieve strategic independence by 2025."

Since energy independence is such a critical issue, let's look at some of the specifics the Senator has put forward:
1) A $5,000 tax credit for each and every customer who buys a zero carbon emission car, For other vehicles, a graduated tax credit will apply so that the lower the carbon emissions, the higher the tax credit.

2)A $300 million prize should be awarded for the development of a battery package that has the size, capacity, cost and power to leapfrog the commercially available plug-in hybrids or electric cars.

3)American automakers have committed to make 50 percent of their cars FFVs by 2012. John McCain calls on automakers to make a more rapid and complete switch to FFVs.

4) John McCain Believes Alcohol-Based Fuels Hold Great Promise

5) eliminate mandates, subsidies, tariffs and price supports that focus exclusively on corn-based ethanol

6) John McCain Will Effectively Enforce Existing CAFE Standards. John McCain has long supported CAFE standards - the mileage requirements that automobile manufacturers' cars must meet. Some carmakers ignore these standards, pay a small financial penalty, and add it to the price of their cars. John McCain believes that the penalties for not following these standards must be effective enough to compel all carmakers to produce fuel-efficient vehicles.

7) John McCain Will Commit $2 Billion Annually To Advancing Clean Coal Technologies and commit significant federal resources to the science, research and development that advance this critical technology.

8) John McCain Will Put His Administration On Track To Construct 45 New Nuclear Power Plants By 2030 With The Ultimate Goal Of Eventually Constructing 100 New Plants.

9) A Permanent Tax Credit Equal To 10 Percent Of Wages Spent On R and D.

10) John McCain Will Encourage The Market For Alternative, Low Carbon Fuels Such As Wind, Hydro And Solar Power. To develop an even-handed system of tax credits .

11) John McCain will greening the Federal Government

12)Electricity Grid And Metering Improvements To Save Energy.

13) reform the laws and regulations governing the oil futures market

14) John McCain Does Not Support A Windfall Profits Tax.

Of course the 15th point is Senator McCain's cap-and-trade system for CO2 emissions.

Of course this plan reflects an inherent distrust of market mechanisms. It is largely a waste of money that will do little but create new special interest groups. The most offensive issue is the plank to give buyers a $5K discount on their new cars at taxpayer expense. What a crock. Why should people who like the car they have or cannot afford the cost of a new 0-emission car subsidize cars for those who do want one and can afford them. Another $2 billion to line the pockets of coal barons, a $300 million prize for some lucky battery maker, a 10% tax credit for firms that engage in R and D, cap-and-trade, etc, etc, etc. This is a list to make any Progressive Democrat salivate.

The only plank the Principle and Policy agrees with is Number 4. That's right, Principle and Policy joins John McCain in believing that alcohol-based fuels hold great promise. At least that didn't cost us any tax money.

Senator McCain - I liked it better when you weren't so specific.

Obama's Ridiculous Rhetoric on the Islamic Republic

Senator Barack Obama, the Democratic Parties nominee for the Office of President of the United States, apparently is ill informed as to international affairs with respect to Islamic Republic of Iran and their nuclear ambitions. Here is the junior Senator from Illinois' issue proclamation from his campaign website:

Obama is the only major candidate who supports tough, direct presidential diplomacy with Iran without preconditions. Now is the time to pressure Iran directly to change their troubling behavior. Obama would offer the Iranian regime a choice. If Iran abandons its nuclear program and support for terrorism, we will offer incentives like membership in the World Trade Organization, economic investments, and a move toward normal diplomatic relations. If Iran continues its troubling behavior, we will step up our economic pressure and political isolation. Seeking this kind of comprehensive settlement with Iran is our best way to make progress.

But, this is exactly the approach followed by the E-3 (U.K., France, Germany), the E-3/EU (add the Eu foreign minister), and the permament members of the UN Security Council plus Germany (P5+1; the E-3 plus USA, China, and Russia). The story can rehashed with a simple search on any news service, I used CNN.

On March 11, 2005 CNN reported that the U.S. had dropped its objections to Iran applying for WTO membership read the story here
As CNN reported on August 5th 2005:

cooperation on nuclear matters would be enhanced between Iran and the EU-3 -- Britain, France and Germany -- allowing Iran access to the international nuclear technologies market. The EU-3 also would "fully support long-term co-operation in the civil nuclear field between Iran and Russia," the summary said.
In February, Russia signed a deal with Iran to transfer nuclear fuel to Iran's $800 million power plant reactor in the southern city of Bushehr and move the spent fuel back to Russia.

Despite this Iran resumed nuclear enrichment just three days later on August 8th, 2005. On January 6th, 2006 CNN reported that Iran had removed UN IAEA seals from its facilities and resumed nuclear research activities. Russia stepped into the fold. Russia offered to supply nuclear fuel for Iran's power generation facilities and in late February 2006 Iran rejected this offer. Despite reports in January that the U.S. and EU-3 had given up negotiating with Iran, in June of 2006 EU foreign minister Javier Solanna was dispatched to Tehran with an offer from the five permanent members of the UN security council plus Germany (Thus, this is the EU 3, USA, China and Russia). Iran refused to discuss the offer and pressed ahead with its enrichment program bringing on line at least 3000 centrifuges. Almost two years later, in July 2008, the P5+1 tried again. But, Iran refuses to halt its enrichment activities. According to news reports on CNN, Iran now has over 4,000 centrifuges and is planning to bring the total to 6,000 soon. Sanctions enacted by the UN Security Council have had no effect on the Iranians nuclear ambitions.

So the question for Senator Obama is: While will this work now when it hasn't worked for the last 4 years? It cannot be that adding a direct voice for the US at the table will change the dynamic. The Iranians apparently WANT the capability to enrich Uranium and are unwilling to negotiate that right away. Carrots and sticks have not worked for the Europeans, the Russians, or the UN Security Council. Why does Obama believe they will work now?

Because of his charming personality? Or maybe because of his rock star status in Europe?

If Senator Obama wants to be President, he will need to articulate a strategy for dealing with Iran that is something more than what has been tried and failed for the past four years. Principal and Policy bets he will not be up to the task.