Americans for Prosperity, AFP, assessment of president Obama’s recovery plan

As a member of the national “grass roots” Americans for Prosperity I just received a synopsis of president Obama’s programs from AFP president Tim Phillips that I share with Juice readers below. For those not familiar with AFP we are strong supporters of limited government and free markets.
Following are the biggest boondoggles and their price tags:

“Continuing Resolution” legislation to fund existing federal programs at $410 billion — an 8.7% increase in spending over the last year which is the biggest increase on domestic spending since the Carter Administration. Currently being debated this week and next.

Obama/Pelosi Housing Bailout at $275 billion. Proposed now and will be debated within days.

Bank Bailout at estimated $1 trillion.  Details of this new Bank Bailout are still fuzzy but the numbers are huge. Debate to begin within weeks.

Nationalized Health Care proposal is to be announced this Thursday.  The President is saying his “health care reform…will not wait another year.” We know what that means.  Hundreds of billions more of your money and less individual health care choice for you. So far, the Obama/Pelosi agenda has been all spending while taking our nation to historic debt levels.  Last night, we saw the first big Obama/Pelosi tax increase. And it is genuinely massive — try $1.2 trillion over the next decade on ENERGY, the one sector of the economy where prices are lower at the moment.

President Obama and Speaker Pelosi are now championing a “Cap and Trade” scheme that will ration energy while increasing taxes. A version of this proposal was introduced last year as the Warner/Lieberman Cap and Trade bill.  Here are the key details from last year’s legislation that are the basis for the Obama/Pelosi plan:

$1.2 TRILLION Tax Increase over 7 years on gasoline, home energy and really all energy in next decade. Source:  Congressional Budget Office, April 10, 2008

This tax would cost the economy 3 to 4 million jobs according to an analysis by the American Council on Capital Formation the average family would lose over $4,000 per year in purchasing power (and remember the Pelosi/Obama tax cut was only $800 per couple).

Gasoline prices would increase anywhere from 77 to 145 percent–that means prices of about $2 a gallon now would go up to $3.50 or even $5 a gallon. In addition, the Washington Post has reported that President Obama’s budget will also include income tax increases. More on that once we have the details tomorrow.

The numbers are staggering. But there is more. Under the Obama/Pelosi “Cap and Trade” scheme, for the first time the federal government will literally ration energy — deciding how much energy should be available and at what cost to families and businesses. The impact on our families and economy will be disastrous.

Gilbert comment. Folks. While there is no quick and easy fix to the current recession in our country, Republicans had suggested:

1) a permanent 5% tax cut in all marginal income tax levels

2) cut the corporate tax rate from 35% to 25%

3) no extra spending and no earmarks

4) make the dividend and capital gains tax of 15% permanent

5) repeal the AMT permanently

6) repeal mandatory withdrawals from IRA’s at 70 years of age

7) make all withdrawals from IRA’s tax free in 2009.

I simply disagree that the “New Deal Heavy” is the answer to any recovery.

Larry Gilbert, Member AFP

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