Saturday, December 18, 2010

Reforming Healthcare Reform

The hopes and dreams of conservatives around the nation came to fruition, at least partially, on Monday as President Obama’s healthcare bill finally found resistance from the judicial branch. With another lawsuit backed by twenty states hitting the docket, Obamacare is no longer looking unstoppable. It will ultimately be heading to the Supreme Court where conservative appointees outnumber liberals by a slim 5-4 margin.

Does this mean that we can expect to see Obamacare on the trash heap of failed legislation in the near future? I believe it does. The political groundswell that has been growing in the conservative ranks has Democrats running for the bipartisan cooperation, they abandoned when Obama came into office.

If Obama’s reach across the aisle last week to strike a deal with Republicans on tax cuts is any indication, the next two years could be very interesting indeed. Obama now seems to understand what is at stake: he is fighting not only for political capital and his (failed) platform, but also for his legacy. If his presidency ended today, he would be remembered for failing to live up to his outlandish campaign promises, while burdening us, the American taxpayers, with trillions of dollars of debt, faster and greater than all presidents before him….combined!

Many conservatives are doing one of two things right now: gloating about the possible repeal of Obamacare or calling Obama weak for reaching across the aisle. I will do neither; instead I’m concerned about what this means for the next two years.

With Obama’s platform seemingly crumbling beneath his feet, America is highly vulnerable to rash action by a potentially desperate man. If rolling out Democratic champion Bill Clinton doesn’t signal desperation, I don’t know what does. Don’t misunderstand me: I commend Obama for doing the right thing by cutting a deal with Republicans on extending the tax cuts. Liberals’ inability to do that very thing cost them dearly at the polls in last month’s elections and more importantly cost American taxpayers millions in wasted time.

Like I said, I’m concerned about what comes next. Obama simply doesn’t have the political experience to weather the massive bruising that he has taken in the last six months. After the LBJ and Nixon scandals and fiascos, we had Jimmy Carter, who was supposed to bring “change” to the country in a way no president had ever done. He planned to create universal healthcare, pull troops out of foreign conflicts, and rebuild a staggering economy. Sound familiar? Instead, Carter created a massive deficit, perhaps the most detrimental foreign policy in American history, and was unable to deliver health care reform. When Obama came into office, he was already being billed as a savior, a messiah. Two years from now, he may only be remembered for mobilizing an army of angry conservatives.

My advice to Obama is this: listen to we the people. Mr. President, when you were elected, you were not given free reign to install your agenda wholesale. However, an election is merely a proving ground for further discussion. Right now Americans care about one thing: the economy. Create jobs and your legacy may be preserved. I consider myself to be reasonably open-minded, but I’m not empty-minded. I will support Obama as the president but I will not support him when he does something contrary to what I believe to be right. I will support him because he may be the only person with the power to unite our nation. I will support him because I’m not in the business of rooting against America. When the time comes, I will likely vote against him because I do not believe he represents the best we have to offer. But until then, join with me in saying a prayer for our President. He is facing great opportunity and great risk with America’s future lying in the balance.

Source: "Big Government" via Glen in Google Reader

Obama Relishes End to Military Ban on Gays

WASHINGTON (AP) — President Barack Obama is praising senators as they near passage of legislation that would overturn the military ban on openly gay troops.

Obama says that policy undermines U.S. national security and violates “the very ideals” that members of the armed services risk their lives to defend.

A final Senate vote is set for 3 p.m. Saturday after a test vote in the morning set the stage to send the measure to Obama to sign.

The president says ending the ban will mean that “thousands of patriotic Americans” won’t be forced to leave the military “despite years of exemplary performance, because they happen to be gay.”

He also says many thousands more won’t be “asked to live a lie in order to serve the country they love.”

Source: "The Blaze" via Glen in Google Reader

Reaganomics 2.0 in the Drivers Seat

On a historic night this past Thursday, a new Tea Party Republican Congress completely transformed U.S. economic policy. Elections matter, and so do their ideas. Smaller government, low taxes, and less spending were key election themes in the Republican landslide. And those themes triumphed this week as a large tax-cut bill finally passed the House and a monstrosity of a spending bill was defeated in the Senate.

In one fell swoop, Obamanomics is out the window. Reaganomics 2.0 is now in the driver’s seat.

Perhaps the most amazing part of the story was the work of Mitch McConnell and John McCain (among others) to kill the 2,000-page, $1.2 trillion omnibus spending bill in the Senate, along with its 6,600 earmarks totaling $8 billion. This budget monster dripped with contempt for voters and taxpayers. But business as usual was overturned.

I had an inkling of this when Sen. McCain told me in a CNBC interview earlier that night that, if need be, he would favor a government shutdown over passage of the spending bill. And now, under a short-term continuing resolution, the whole current-services budget baseline can be lowered by anchoring it to 2008 spending.

Hundreds of billions of dollars can be saved, producing a smaller government that will be, in effect, a tax cut for the private economy. And the symbolism of overturning massive spending only two years after Obama’s debt-laden stimulus package is enormously important.

Of course, the tax deal is far from perfect. But low tax rates will be preserved for personal incomes, capital gains, dividends, and estates. This is pro-growth and pro-capital formation, and it’s a confidence builder, too.

Tax cuts for businesses, which are new to this bill, may prove more effective than most people think. And while the payroll tax cut has only a small labor incentive, it is not nothing.

Yes, there’s too much spending in the tax bill, as some cranky conservatives keep reminding us. However, it’s only about 12 percent of the total $857 billion legislation. Unemployment benefits come to $56 billion, the refundable tax credits are about $44 billion, and the utterly stupid ethanol subsidy is about $5 billion.

Meanwhile, 88 percent of the bill goes to tax cuts — where people get to keep their own money and where there are some significant incentive-effects on the supply-side.

It’s not a panacea. Hopefully broad-based flat-tax reform will materialize in the next few years, along with entitlement reform and deep spending cuts. But it is worth noting that late Thursday night, according to the Washington Post, negotiators removed more than 70 temporary programs from the bill.

For those conservatives who are still complaining, I urge you to reconsider the importance of marginal tax-rate incentives for the economy. Tax-rate increases will depress growth and worsen the budget deficit. There’s no way America’s financial position will improve without economic growth, nurtured by low tax-rate incentives. And if the compromise tax plan had been defeated, the economy would have been held hostage for as much as six months, before the implementation of some kind of new plan to extend the Bush tax cuts through the complicated budget process.

In this sense, the tax-cut compromise does far more good than bad. A new batch of statistics shows recent economic improvement: rising retail sales and industrial production, a jump in the Index of Leading Indicators, and lower jobless claims. The trick here is to nurture the new economic improvement, not snuff it out with higher taxes.

In the new session of Congress — which will feature a true Tea Party GOP conservative majority — new spending-limit policies can fill in the blanks left by the tax deal. But if President Obama has the acumen to see that a pro-growth economic policy is tied to low tax rates, the GOP should take great care not to cede that message and lose the economic-growth high ground.

A great battle will be joined over the spending, taxing, and regulatory mandates of Obamacare, which is probably the biggest job-killer of all. Conservative reformers in the new Congress will force this fight, along with tax, spending, entitlement, and monetary reform. Behind all this, however, the new Tea Party GOP must maintain a message of economic growth and prosperity.

Crankiness is no substitute.

Source: "Big Government" via Glen in Google Reader

The Dream Dies: Senate Rejects Immigration Bill

From AFP:

The US Senate on Saturday blocked a White House-backed bill to offer a path to citizenship to young undocumented immigrants who attend college or enroll in the military.

Lawmakers voted 55-41, largely along party lines, to end debate on the Development, Relief and Education for Alien Minors (DREAM) Act, falling short of the 60 needed to do so and effectively killing the legislation.

Some of President Barack Obama’s Democratic allies sided with most Republicans to defeat the measure, which opponents had charged amounted to amnesty.

Supporters of the bill, a top priority of Democratic Senate Majority Leader Harry Reid, said it was wrong to punish people brought to the United States by undocumented parents and emphasized that the legislation included safeguards and set high hurdles to citizenship.

Read the whole thing here.

Source: "Big Government" via Glen in Google Reader

Helping Bright Kids Succeed Should Be A No-Brainer

It may not be a mere coincidence that, as the government has proceeded to further shift, over recent years, to an economy based on consumption of goods, our education system has continued to decline. The basic Keynesian view of stimulus- that if the government gives people and institutions money, there will be more consumption and improvement in service, and, consequently, growth and progress- has proven to be a faulty model for both the general economy and education as well.

A recent article in The Economist, examined a new study, released by the McKinsey consulting group, which focused on how to improve school systems. The authors of the study found that centralized government investment in education yields good results in still developing countries in which all children do not attend school. Yet, in those in which all children are required to be educated, the same government investment has not proven to be effective. For example, the article demonstrates that, between 2000 and 2007, both America and Britain increased spending on schools by 21% and 37%, respectively. Yet, in both of these countries, reading, math, and science skills standards dropped.

In fact, the study indicates that many poorer countries, without the benefit of the spending bug, fared much better on student achievement.  The McKinsey researchers concluded that, in these countries, what makes a difference in improving education is not money, but the awareness that different types of schools need different types of reforms. In other words, a “one size fits all” model does not work. It appears that when education is dependent upon the federal government, standards suffer.

For countries such as the United States, which is considered to be, educationally, “beyond the basics,” the authors assert that choosing better teachers and treating educators like a true profession are steps to take to raise educational standards. Of course, “true professions” are found in the private sector, and those professionals in the private sector who are motivated, innovative, and contribute positively to their field, are rewarded with raises in salary, while others, who do not contribute in a meaningful way, are shown the door.

It is certainly sobering news to know that the billions of dollars spent on education, even through No Child Left Behind, have not “stimulated” learning among American students. And, understandably, these results underscore concern about those children struggling to master basic literacy and math skills.

However, for this moment in time, consider what these results mean to children at the other “end” of the achievement spectrum, those who are capable of achieving considerably beyond their grade level, those who are able to explore, create, and innovate at levels beyond the others of their chronological age group.

When skills standards drop, few educators and politicians will be concerned about the students with high abilities who experience less and less challenge, as the standards decline, so that public education becomes almost meaningless to them. The parents of these high ability, also known as “gifted,” children and adolescents must find ways to provide an educational environment that meets their academic, social, and emotional needs.

Imagine being a parent of one of these children. You know your child is quite bright. Each day, you see your child growing more frustrated in school. He is angry that he has to sit on the rug in his classroom every morning, while the other children are taught to say the date and describe the weather, when he is already reading Harry Potter. She is frustrated because the other students in her class are learning to add two-digit numbers, when she has already figured out multiplication. And a nine-year old with interest in unicellular organisms fits in better with high schoolers than with other kids his age.

According to the National Association for Gifted Children (NAGC), as of 2009, there were approximately three million children with talents and abilities in the gifted range in the United States. Yet, twenty states in the nation have either no mandate at all to program for high ability students, or unfunded mandates for specialized curricula. In addition, most teacher training curricula does not require coursework on gifted learners, and teacher in-service training often does not require education for teachers regarding identification of, and appropriate teaching methods for, these students.

Understandably, the NAGC bemoans the fact that these high ability children- our future innovators and producers- seem to get passed over. As school budgets tighten, “gifted” programs are frequently the first ones cut. Yet, while organizations that represent the interests of gifted children do support them in a variety of educational settings, even they continue to primarily promote federal or state mandates to fund public school programming, rather than school choice and vouchers for parents who choose alternative educational settings.

If we look at the politics associated with this case of leaving one of our nation’s greatest resources to fend for themselves, we see vicious cycles of liberal thinking in the works.

First, we cannot ignore that there is somewhat of a “taboo” against children with high abilities: that, somehow, providing for the academic needs of these children is unfair, or socially unjust. It often seems that the prevailing mindset is that these children do not need special attention because they already have more of what other students need. This myth regarding the intellectually rich harkens to the liberal irritation with the financially rich. The liberal solution, as we have clearly seen in the recent tax rate extension debate, is that the government must take from those who have more and redistribute it to those who have less. Sound familiar?

To illustrate, these are actual accounts of public school teacher responses- from data from my private practice- to parents of high ability learners who request differentiated instruction for their children:

  • “If you just wait a few years, the other children will catch up to him.”
  • “Perhaps if you stop reading to her at home, she won’t go so far ahead.”
  • “Don’t let him read ahead in the book. That’s why he’s not as interested in what we’re doing in class.”
  • “Her problem is that she finishes everything early. If she’s going to do that, she needs to learn how to wait there at her desk until all the other children are finished.”
  • “He’s the only one in the class who came up with that idea. I’m wondering if there’s something wrong with his thought processes.”
  • “Your daughter corrected my spelling in class. I think you should teach her not to be rude to her teacher.”
  • “We believe all the children in our school are gifted.”

Let’s make one thing clear. All children are special and deserving. All children should have their educational needs met. But, not all children are intellectually gifted. Kids with high abilities and talents have special needs and one of them is a curriculum that keeps pace with their higher levels of achievement. In a traditional school setting, this means that they need a differentiated program within a classroom, or acceleration to advanced grade levels. Forty-five minutes per week of a “gifted,” pull-out class does not satisfy the need since, amazingly, these kids are gifted the rest of the week, too!

To achieve differentiation for high-ability children, teachers need to be trained to teach at multiple grade levels, perhaps within the same classroom. Does this sound difficult? It sure does, and that’s why these teachers should get paid more.

Which brings us to another vicious cycle of liberal thinking: the issue of teachers’ unions’ adamant opposition to merit pay for teachers who have specialized training, those who are willing to perform multi-level teaching, and who do it well. Not surprisingly, many states with very liberal state governments and high levels of teacher union control, do not have mandates for programming for high ability learners.

In a recent op-ed in the Wall Street Journal, outgoing New York City Board of Education chancellor, Joel Klein urged that we “stop protecting ineffective teachers and stop basing lay-offs on a last in/first out rule.” He noted that this status-quo way of operating often causes us to lose some of our most talented and motivated young teachers.

President Obama has stated that he wants to reform education so that our country can produce innovators who can compete in the global economy. In addition, he has said that he is in favor of merit pay for teachers whose students perform well. However, we also know that he has a mutually dependent relationship with the teachers’ unions, and has come out clearly against vouchers for alternative education.

So, how are these high ability children getting educated these days, when more and more education dollars are being redistributed, apparently unsuccessfully, to programs that serve to raise some children to very basic standards of achievement?

According to Hoagies’ Gifted, a resource website for parents of gifted children, most gifted children are homeschooled, if you consider that even those high ability learners who attend public school are homeschooled part-time. Many parents, in fact, have found that home education allows their children to work at their own pace, to have more time for exploratory projects, and to socialize with other high ability learners in home school associations. True, parents of these students are footing the bill for curricula themselves, but with online learning and community resources that welcome homeschoolers, it’s a lot more satisfying to live with a very energetic, high ability child who is engaged, successful, and happy, than one who is frustrated, depressed, or even underachieving in school. Homeschooling is not for all families, but it represents a creative and independent way to resolve a problem that others are waiting for the government to solve.

Indeed, high ability homeschoolers have been using online learning as an educational method for quite some time. In an article in The Foundry, from the Heritage Foundation, Michael Wille asked why all students are not using virtual learning to individualize their academic programs.

The article quoted Katherine Mangu-Ward, in Reason Magazine, who highlighted some creative ways charter schools and virtual education companies are using online learning to enhance and customize students’ curricula. Wille noted, however, not surprisingly, that teachers’ unions are opposed to allowing parents this educational option for their children. Specifically, the National Education Association, in its “official” policy statement on charter schools, states that there “should be an absolute prohibition against the granting of charters for the purpose of homeschooling, including online charter schools that seek to provide homeschooling over the internet.”

But, Joel Klein begs to differ with the NEA. He urged schools to “innovate, as every successful sector of our economy does. The classroom model we have used since the 19th century…is obsolete. We should be making the most of new technology and programs that help teachers deliver personalized instruction and allow students to learn at their own pace.”

As Michael Wille concluded, in light of the fact that academic improvement has not been achieved with “stimulus” from the government, the best way to “improve student performance anywhere in the country is to support policy options that promote parental choice in education.”

Some of the country’s brightest students are succeeding only because their parents are taking upon themselves the costs of educational options outside of public education. And it seems more parents of children with a variety of needs are doing the same. Parental choice is the best way to make sure no child is left behind.

Source: "Big Government" via Glen in Google Reader

Obama Talks Competitiveness as Japan Cuts its Corporate Tax Rate

This week, President Obama held a summit in Washington, D.C., with top CEOs to discuss a variety of economic topics.  Among them was U.S. competitiveness in the global economy, with Obama describing the issue upfront as an “overarching theme,” and with the message being sent that competitiveness impacts domestic job creation.

Obama’s comments were timely, because on Tuesday, it emerged that Japan, which currently maintains the highest corporate tax rate of any O.E.C.D. (i.e., developed) nation, will cut its corporate income tax by “5 percentage points in a bid to shore up its sluggish economy,” according to the New York Times.

Currently, Japan’s corporate tax rate is about 40 percent, slightly higher than but roughly the same rate as the U.S. rate.

However, Japanese leaders aim to cut the tax rate in order to make the country more competitive, internationally, provoke new investment and boost job creation.  Japan is worried about its unemployment rate of 5.1 percent–a figure of envy to most in Europe and the U.S., where unemployment is running substantially higher.

The fact that Japan’s corporate tax rate, post-cut, will remain higher than that of South Korea (24 percent) or Germany (29 percent) however has some figures skeptical as to whether the plan will work.  In addition, Japan may raise its consumption tax rate to offset the cut, which could minimize positive effects that would otherwise flow from it.

Despite this, speculation abounds that the cut will improve Japan’s standing as against the U.S., where discussion surrounding tax cuts is currently focused on individual rates, as opposed to corporate rates.  Once Japan’s cut has been implemented, the U.S. will become the O.E.C.D. nation with the highest corporate rates, which unlike most countries taxes the income of Americans and American companies worldwide.

The Obama administration meanwhile continues to pursue the nixing of tax policies originally put in place to enable American companies to compete globally, given these two substantial disadvantages.

Observers say that Obama remains personally committed to curtailing a tax credit known as the “dual capacity tax credit,” which prevents double taxation of U.S. companies with foreign offices.  Recently, Obama and congressional allies have sought to limit the availability of this tax credit to oil and gas firms, specifically.

During 2009, Obama had pursued a more broad-based curtailment plan that would have affected other tax provisions designed to enable U.S. companies to compete against, say, German, Korean or British firms who are subject to a more favorable tax regime, and limited the availability of tax credits to firms in many industries seeking to avoid double taxation.

It remains to be seen what the precise effect of Japan’s proposed cut will be, but for now, it appears that the U.S. is set to move into the top spot in terms of high corporate taxes.

Source: "Big Government" via Glen in Google Reader

Joe Budden Says Thought Of Slaughterhouse/ Eminem Deal Is 'Scary'

'It's scary to even fathom being on a record with Eminem or Royce or Crook or Joell,' MC tells Sway on 'RapFix Live.'
By Jayson Rodriguez, with reporting by Sway Calloway


Joe Budden
Photo: Rich Sancho/ MTV News

New Jersey-bred rapper Joe Budden's acclaimed Mood Muzik series and the Slaughterhouse project have earned him a rep for his lyrical skills. But in spite of his credentials, Budden said lining up next to esteemed MCs is a nerve-racking experience.

When pressed about his group Slaughterhouse (Budden, Royce Da 5'9", Crooked I and Joell Ortiz) potentially signing a deal with Eminem, Budden explained how daunting that thought is for him.

"It's scary to even fathom being on a record with Eminem or Royce or Crook or Joell," he told Sway during his appearance on "RapFix Live." "Just four guys who, when they wanna [black out they can]."

He compared the theoretical lineup to a real experience he had on his recently released Mood Muzik 4: A Turn 4 the Worst.

The track "Remember the Titans" featured Lloyd Banks, Fabolous and Royce. They announced the lineup prior to recording and releasing the song online. Fans had plenty of comments, and one in particular caused Royce to have one of those moments Budden fears.

"I've rapped with Fab a bunch of times," Budden said. "It was my first time getting with [Lloyd Banks]. And I always rap with Royce, so I just kind of know. But a bunch of fans said something that really ticked Royce off, like, 'You don't belong on that song.' And they seemed to think it was pretty funny. In my head, I'm like, 'Oh my god, Why are you making this incredible, incredible MC angry, to where now [he has] a point to prove?' So, Royce goes on there and tore that beat apart just like I knew he would. But that whole thing is scary to me."

Related Videos Related Artists

Source: "Eminem In The News" via Glen in Google Reader

Saturday Open Thread: DREAM Edition

The Senate is likely to vote today on the DREAM Act, which would provide a ‘path to citizenship’ to individuals who entered the country illegally as children.

Source: "Big Government" via Glen in Google Reader

Friday, December 17, 2010

Obama Signs Extension of Bush Tax Cuts

From the Associated Press:


President Barack Obama signed into law a huge, holiday-season tax bill extending cuts for all Americans on Friday, saluting a new spirit of political compromise as Republicans applauded and liberals seethed. The benefits range from tax cuts for millionaires and the middle class to longer-term help for the jobless.

The most significant tax legislation in nearly a decade will avert big increases that would have hit millions of people starting in two weeks on New Year’s Day. Declared Obama: “We are here with some good news for the American people this holiday season.”

“This is progress and that’s what they sent us here to achieve,” Obama said as a rare bipartisan assembly of lawmakers looked on at the White House.

The package retains Bush-era tax rates for all taxpayers, including the wealthiest Americans, a provision Obama and congressional liberals opposed. It also offers 13 months of extended benefits to the unemployed and attempts to stimulate the economy with a Social Security payroll tax cut for all workers.

At a cost of $858 billion over two years, the deal contains provisions dear to both Democrats and Republicans. It represents the most money that Obama was likely to have been able to dedicate over the next year to the slowly recovering economy. Yet it also increases the federal deficit at a time when the country is growing increasingly anxious about the red ink.

Dramatic both as an economic and a political accomplishment, the agreement sets the stage for Obama’s new relationship with Congress in the aftermath of a midterm election wave that devastated Democrats and stripped them of control of the House.

Read the whole thing here.

Source: "Big Government" via Glen in Google Reader

Busybodies, Babes, and Bacon: Presenting Reason.tv’s Nanny of the Year!

They touch our lives in so many ways, and now Reason.tv acknowledges those who tell us that if it looks good, tastes good, or feels good, it should be illegal.

Live (to tape) from the fourth floor of the Sepulveda Center in Los Angeles, California—it’s the 2010 Nanny of the Year Awards!

Over the past year, Reason.tv has recognized plenty of busybodies who relish minding other people’s business, but who deserves to succeed 2009’s winner (Meddlin’ Mike Bloomberg), and take home the 2010 Nanny?

Will it be the heartland mayor who sacked the Lingerie Football League? The Peach State pol who sued a man for growing vegetables in his own yard? A member of the food police?

Remember, it’s a dishonor just to be nominated. So get your awards season started off right, and tune in to the only black-tie ceremony that delivers busybodies, bikini babes, and bacon!

Approximately 1.53 minutes.

“Reason.tv’s 2010 Nanny of the Year Awards” is written and produced by Ted Balaker, who also hosts. Animation: Austin Bragg; Camera: Zach Weissmueller and Hawk Jensen; Voice Over: Rin Palmer

To learn more about our nominees and to watch more Nanny of the Month (and Year) videos, go here.

Scroll down for downloadable versions of this and all our videos, and subscribe to Reason.tv’s YouTube channel to receive automatic notification when new content is posted.

Source: "Big Government" via Glen in Google Reader

Backdoor Regulation Harming Consumers…Again!

Folks in need of cash often depend on a federal tax refund to help them through a tough time.  Prior to this year, they might go to a tax preparer like H&R Block to get their returns completed.  Since it might take several weeks to get a refund, H&R Block and many other tax preparation services would offer the client a loan against their federal tax refund.  A bank would fund that loan, because the bank would have the refund signed over to it, and IRS refunds are guaranteed by the Federal Government.

But now, President Obama’s Nanny State is quashing these loans, forcing those folks into more expensive options.

Refund Anticipation Loans (RALs) have APR’s of around 100%, meaning that a $2,000 refund might cost the client $100 while waiting three weeks or so for their refund.  Nanny Statists and ignorant consumer activist groups like the Consumer Federation of America decide that’s just too much to pay for a loan.

Because, after all, they need to decide for us.

Normally, when the tax return is finished, it is sent electronically to the IRS, which gives it a quick once-over to verify income, dependents, exemptions, and other basic facts.    Then the IRS would provide a “debt indicator”, which would indicate to the prospective lending bank whether the client had outstanding back taxes due or other liens.  If so, the bank would know not to make the loan.  If the debt indicator were clear, then it electronically approves the return for a loan.  The bank, knowing there is no risk, makes the loan.

However, the IRS will not provide the debt indicator this year.

Why?  It’s what we call “backdoor regulation”.

No legislation is necessary.

No voting by the public is necessary.

The Obama Administration just does it because it can.  Last I heard, this is more akin to a dictatorship than a democracy.  Especially since nobody asked the IRS to “protect” the consumer.

Now, with a credit option removed, those in need of a loan will have to try other options. Guess what?  All of those options are more expensive.

When — WHEN — will government learn the most basic economic principle of supply and demand?  If you remove supply, demand does not vanish.  Instead, people are forced into more expensive options.  Honestly, did they forget about Prohibition?

Meanwhile, by removing this source of income for tax preparers, what do you think those businesses do?  Do you think they hire more people since revenues are getting cut?  Or do you think they cut staff?

Source: "Big Government" via Glen in Google Reader

Union Leader Clears Up Misconceptions About Tenure: Fog A Mirror, Job for Life

Teacher union leaders have been known to bark back when their strongest job protection – tenure – is referred to as a job for life.

Typical rebuttals include: “It’s a necessary protection from overzealous administrators,” or “it’s critical to maintain academic freedom.”
But in a recent blog post, United Federation of Teachers honcho Jeff Kaufman sticks his foot in his mouth when he attempts to clear up misconceptions about how tenure is granted in New York City. The blog, titled “Is tenure a strike issue?” is in response to the city Department of Education’s call to overhaul the process, and reveals that some union leaders may be willing to fight for the currently ineffective system at any cost.
“Despite current misconceptions tenure is not ‘given’ by the DOE. The only legal requirement for tenure is actually time; three years for teachers. After a three year period, within license, of being on payroll and the DOE has done nothing to stop the clock, you are automatically granted tenure,” Kaufman writes. “In fact you can be theoretically rated unsatisfactory for each of the three years and still get tenure if the DOE doesn’t fire you or cause you to extend your probation.”
I believe that Kaufman’s musings are clear evidence that the UFT and its affiliated locals are keenly aware that the current tenure process in NYC is flawed. The fact that Kaufman and his UFT brethren continue to defend that process, regardless of the problems it creates for improving student instruction, only further exposes the union’s already obvious selfish interests.
Kaufman leaves his readers with a little nugget to ponder, possibly foreshadowing serious resistance to the city’s promised tenure reform. He reflects on the good old days with former UFT President Randi Weingarten, who now heads the union’s national affiliate – the American Federation of Teachers.
“So, is tenure a strike issue? I am reminded of one of my first arguments with Randi Weingarten in the early days of the Bloomberg administration at a Chapter Leaders’ retreat. After making it clear how a strike or job action was almost never justified I asked her whether there was ‘any’ strike issue,” Kaufman writes. “She thought for a moment and said, ‘Yeah, tenure.’”
Kaufman’s lesson on how easy it actually is for teachers to be granted tenure in New York City only solidifies our support for DOE officials working to protect the interests of students by injecting some sanity into the process. We continue to be amazed by union insiders like Kaufman, who knowingly fight to maintain a tenure system that costs taxpayers millions each year at the expense of student learning.
His conclusion is clear – if you can fog up a mirror, you can have a job seemingly for life. It says a lot about the mentality of labor leaders, and quickly erodes any credibility they might have left with the public.

Source: "Big Government" via Glen in Google Reader

Senate Republicans to FCC: No net neutrality

Next week, the Federal Communications Commission (FCC) is anticipated to try to push through net neutrality regulations in the course of its December 21 meeting.  But as a letter released this week by thirty Republican senators makes clear, key members of the legislative branch are having none of it, and will force a confrontation on the Senate floor if the FCC proceeds.

In the letter, according to the Washington Examiner, Sens. John Ensign, R-Nev., Kay Bailey Hutchison, R-Texas, John McCain, R-Ariz., Kit Bond, R-Mo., Judd Gregg, R-N.H., Michael Enzi, R-Wyo., Mitch McConnell, R-Ky., Jim DeMint, R-S.C., James Risch, R-Idaho, Mike Johanns, R-Neb., John Thune, R-S.D., Saxby Chambliss, R-Ga., Roger Wicker, R-Miss., Lamar Alexander, R-Tenn., Robert Bennett, R-Utah, John Barrasso, R-Wyo., Mike Crapo, R-Idaho, Sam Brownback, R-Kansas, Jon Kyl, R-Ariz., John Cornyn, R-Texas, David Vitter, R-La., Orrin Hatch, R-Utah, Tom Coburn, R-Okla., Pat Roberts, R-Kansas, Johnny Isakson, R-Ga., Jim Bunning, R-Ky., Jim Inhofe, R-Okla., Richard Burr, R-N.C., and Chuck Grassley, R-Iowa, state that:

[The FCC has] admitted in published statements that the legal justification for imposing these new regulations is questionable and “has a serious risk of failure in court.” It is very clear that Congress has not granted the Commission the specific statutory authority to do what you are proposing. Whether and how the Internet should be regulated is something that America’s elected representatives in Congress, not the Commission, should determine.

Rep. Fred Upton, who is set to take over the chairmanship of the House Energy and Commerce Committee, which has jurisdiction where net neutrality is concerned, has already signaled his disapproval of the move in a letter to FCC Chairman Julius Genachowski, which reads in part:

The FCC does not have authority to regulate the Internet, and pursuing net neutrality through Title I or reclassification is wholly unacceptable. Our new majority will use rigorous oversight, hearings and legislation to fight the FCC’s overt power grab.

As yet, it is unclear whether either letter will force the FCC to reverse course, but in the wake of Senate Republicans having forced Majority Leader Reid’s hand on the omnibus bill, some observers say they remain hopeful.

Source: "Big Government" via Glen in Google Reader

Reince ‘Shovel Ready’ Priebus Is Not Ready for Prime Time

I don’t really have a particular dog in the fight for RNC Chair. After twenty years in politics, I think well-run individual campaigns are more important to victory than the machinations of a national party organization. The RNC should mostly just raise lots of money, get out the vote and then…get out of the way. Its really kind of a political Hippocratic oath; first, do no harm…to the party’s brand or its candidates.

Still, I’ve been fascinated by Dan Riehl’s coverage of the race and, specifically, the problems swirling around the frontrunner (!?), Reince Priebus. Priebus is GOP Chair in Wisconsin and, along with about three dozen other state chairs, had a pretty good election cycle this November. (Of course, also along with three dozen other state chairs, he had a pretty disastrous cycle in 2008.) Until very recently, he was also on staff at the RNC, serving as General Counsel after steering Michael Steele into the Chairmanship.

On the side, it seems, he also used his legal skills and government and political contacts to secure federal stimulus money for clients. Redstate thinks there is nothing unusual in this, just another lawyer-helping-his-clients situation. Although, as Dan Riehl points out today, his work went quite a bit further than simply advising clients on the stimulus’ impact. And keep in mind, Priebus was the state GOP Chair at this exact time. At the very least, that obvious conflict sets up some pretty funny juxtapositions.

On March 5, 2009, Priebus co-authored a client alert heralding the awarding of $500 million to Wisconsin and noted:

The $529 million in stimulus funds allocated for Wisconsin state and local transportation projects is likely to result in increased opportunities for Wisconsin road, bridge and other transportation contractors, subcontractors and suppliers.

Of course, a little less than a year later he told this to the Stevens Point Journal:

“The stimulus, the jobs bill, all of them — they all create a very small amount of government jobs, but they cost us our future,” Priebus said. “We get very little in return for the massive amount of money that we’re putting toward these government programs.”

I doubt the media would ever do anything with those two quotes. Doubtless, they will also overlook this quote from a pitch also co-authored by Priebus:

If you are interested in learning about other provisions included in The Act, the Michael Best Stimulus and Economic Recovery Team is prepared to assist you in understanding the implications and in developing and implementing a strategy to secure the benefits of this unprecedented legislation. Specifically, we will assist you to identify opportunities, prepare appropriate proposals and make targeted contacts to secure funds.

Well, isn’t that precious.

Within minutes of this story breaking, Priebus or someone at his law firm, began furiously scrubbing all traces of him from the firm’s stimulus work. (Scrubbing…really? Is this 1999? Does Priebus even know about Google cache or WayBack?) He also said the whole thing was a terrible misunderstanding. One of his supporters explained to National Review:

“Some element of the firm must have put out some marketing thing. They’re a general corporation firm. Somehow that erroneously got hooked up to Reince’s personal thing. But he has never been involved in terms of the group that was trying to do that. He hasn’t and won’t. End of story.”

Priebus himself explained it this way:

I’m co chair of the Government Practice Group, so my guess is that I was simply listed

Tight ship they’re running at the Michael Best law firm.

But, nevermind. Let’s take Priebus at his word. Let’s assume he really wasn’t involved in any of this. Let’s give him the benefit of the doubt that his name was mistakenly listed as a co-author on at least 4 stimulus client alerts, that his bio mentioned his work in this area and that he was listed as a point of contact for the overall stimulus practice. Fine, it was all a whole series of multiple mistakes. But, if so, what does that mean?

Well, for starters, it means that for well over a year, neither Priebus nor any of his colleagues noticed that he was mistakenly listed on the firm’s website. Clients received alerts listing him as a co-author. Clients thought he was a point of contact. Remember, he wasn’t some junior associate. He was a leading partner in the firm and the freakin chair of the GOP in the state. That would carry quite a bit of weight, enough, even, to convince a client to use the firm’s services. To assert that he was a prominent player in this practice area when he wasn’t is pretty close to misrepresentation. Did any client sign on with the firm thinking that Priebus, a powerful political operative, was working their case?

Again. No. One. Noticed. This? The law firm doesn’t ask partners listed as a co-author of an alert to review it? None of the other partners ever said, “Whoa, you’ve got Priebus listed here…that’s a mistake, I’m the one handling this”? Neither Priebus nor any of the other partners working on the stimulus front ever bothered to look at the firm’s website? (That could explain why Priebus thinks you can “scrub” a website.)

Besides the Apple-Dumpling-Gang humor in all this, there is something more troubling here and it is highly relevant to the RNC race. A while back, Priebus resigned his staff position at the RNC to prepare for this campaign. He has been working at this for at least a couple months. And yet, he didn’t notice this glaring mistake until it came out in the press.

I always advise candidates running for office to first research themselves. Find out what information is out there about them, what is wrong and what could be damaging. Only then do you research your opponents. You always want to minimize surprises in a campaign. Know what you are dealing with.

Priebus not only doesn’t seem to have done a thorough job of this campaign basic, it doesn’t appear that he did it at all. I mean, the man didn’t even look at his own bio before he threw his hat into the ring for national political office? Really? This is the kind of operative who is the “frontrunner” to be chair of the RNC? I know the GOP is often jokingly called the “stupid” party, but in this case, that would be really unfair to stupid people.

Remember, the chief duty of the RNC chair is to “do no harm” to the party or its candidates. One of the more unfortunate aspects of Steele’s tenure is that he too often became the story. His misstatements, gaffes and mistakes often dominated news coverage of the party. Whole news cycles were wasted trying to explain away his actions. Does the RNC really want to go through that all over again?

Priebus has already been featured on MSNBC saying repeatedly that the US should execute Obama, when he meant to say Osama. Now we learn that for well over a year, his law firm has been publicly crediting him for work he never did. Learning of this mistake, he then tried to cover his tracks by scrubbing the website.

The harm has already been done.

Source: "Big Government" via Glen in Google Reader

Taxpayers Got a Big Christmas Present Yesterday, but It Wasn’t the Tax Bill

There’s a lot of attention being paid to yesterday’s landslide vote in the House to prevent a big tax increase next year. If you’re a glass-half-full optimist, you will be celebrating the good news for taxpayers. If you’re a glass-half empty pessimist, you will be angry because the bill also contains provisions to increase the burden of government spending as well as some utterly corrupt tax loopholes added to the legislation so politicians could get campaign cash from special interest groups.

If you want some unambiguously good news, however, ignore the tax deal and celebrate the fact that Senator Harry Reid had to give up his attempt to enact a pork-filled, $1 trillion-plus spending bill. This “omnibus appropriation” not only had an enormous price tag, it also contained about 6,500 earmarks. As I explained in the New York Post yesterday, earmarks are “…special provisions inserted on behalf of lobbyists to benefit special interests. The lobbyists get big fees, the interest groups get handouts and the politicians get rewarded with contributions from both. It’s a win-win-win for everyone — except the taxpayers who finance this carousel of corruption.”

This sleazy process traditionally has enjoyed bipartisan support, and many Republican Senators initially were planning to support the legislation notwithstanding the voter revolt last month. But the insiders in Washington underestimated voter anger at bloated and wasteful government. Thanks to talk radio, the Internet (including sites like this one), and a handful of honest lawmakers, Reid’s corrupt legislation suddenly became toxic.

The resulting protests convinced GOPers, even the big spenders from the Appropriations Committee, that they could no longer play the old game of swapping earmarks for campaign cash. This is a remarkable development and a huge victory for the Tea Party movement. Here’s part of the Washington Post report on this cheerful development.

Senate Democrats on Thursday abandoned their efforts to approve a comprehensive funding bill for the federal government after Republicans rebelled against its $1.2 trillion cost and the inclusion of nearly 7,000 line-item projects for individual lawmakers. …Instead, a slimmed-down resolution that would fund the government mostly at current levels will come before the Senate, and Reid and Minority Leader Mitch McConnell (R-Ky.) said it will pass by Saturday. …The majority leader’s surrender on the spending bill marked a final rebuke for this Congress to the old-school system of funding the government, in which the barons of the Appropriations Committee decided which states would receive tens of millions of dollars each year. …Almost every Senate Republican had some favor in the bill, but as voter angst about runaway deficits grew before the midterm elections, Republicans turned against the earmark practice.

This is a very positive development heading into next year, but it is not a permanent victory. Some Republicans are true believers in the cause of limited government, but there are still plenty of corrupt big spenders as well as some Bush-style “compassionate conservatives” who think buying votes with other people’s money somehow makes one a caring person.

In other words, fiscal conservatives, libertarians, and Tea Partiers have won an important battle, but this is just one skirmish in a long war. If we want to save America from becoming another Greece, we better make sure that we redouble our efforts next year. Eternal vigilance is the price of liberty.

Source: "Big Government" via Glen in Google Reader

Sightseeing on the Road to Recovery

As we are about to enter year 5 of this ‘Great Recession’, I have been trying to remember how things were before 2007 and over the last few years, take an inventory of what I have seen and heard in my daily and professional life. Pearl Buck famously said, “If you want to understand today, you have to search yesterday.”

So, here is what I’ve found:

Surprisingly, it seems that almost everywhere I look jobs are being offered. ‘Help Wanted’ signs are creeping up both in store fronts and on internet websites. If you know where to look and you have the skills needed for this new economy, there is a job for the taking. I don’t know if unemployment checks are keeping potential workers at home, but there are opportunities out there.

Construction has been virtually nonexistent, while remodeling is certainly in vogue. Just about the only place I see construction anymore, is in very close proximity to one of those American Recovery and Reinvestment Act signs. Infrastructure spending has been the lifeblood of this industry but that can’t continue indefinitely.
What about the consumer? When the market tanked in 2007 and a lot of folks began losing their homes, jobs, and investment accounts, something happened to the American consumer: they stopped spending on things they didn’t need and they started to save.

People are now more conscious than ever about saving money. Clients in my CPA office generally say one of two things to me (or both): How can I make my money work harder for me and how can I keep more of my paycheck every month? I’ve heard these questions a lot over the years, and in good times it was followed with, ‘…because I want to buy a boat/vacation home/etc’. Now, people simply want to keep their homes and hopefully put their kids through college.

Is this a welcome development for the consumer-driven America? Not likely, but it probably should be. Last week I talked about how the Fed is hoping to use propaganda to trick Americans into spending more money in hopes that it will stimulate the economy.

Obviously, that is a bad thing, but I’ll go one step further and say we need to keep saving, and not just because the Fed doesn’t want us to. While housing continues to struggle, we are certainly seeing some signs of recovery in the stock market and there are signs of life for those seeking employment. Fed chairman Ben Bernanke has said that we are looking at a long-term cycle of recession and I am inclined to agree with him.

However, the way out of this recession is not going to be increased consumer spending. More spending will be a sign that recovery is happening, something the government doesn’t seem to understand.

Bear with me for a flashback to your 6th grade science class. When the human body begins to get cold, there is a domino effect of actions that begin to occur. Shivering, goose bumps and chattering teeth are all early warning signs to put some clothes on or move someplace warmer. Eventually, if the body is left unattended, it will begin to shut down non-essential components. The hands and feet are usually the first to go as warm blood is restricted to keeping essential organs operating.

Why the anatomy refresher? Because this is a great image for how a healthy economy should work. There were warning signs in 2006 that highlighted problems, with lending for real estate and other big ticket items. Nothing was done about it. By 2007 banks were firmly entrenched in leveraged lending and derivatives trading; setting themselves up for huge losses. Nothing was done. In 2008 the stock market crashed and our nation reached a point where nothing much could have been done to stop the bleeding. We failed as a society and government to read the warning signs and we didn’t do anything to stop them…But that doesn’t mean we can’t do something about it now. I believe that in the end, this recession will make Americans stronger, wiser and more savvy consumers.

History is the sum total of the things that could have been avoided. -Konrad Adenauer

Source: "Big Government" via Glen in Google Reader

2 Days to Print and 50 Hours to Read: GOP Will Recite Entire Spending Bill on Senate Floor

It took two days to print and it will take even longer to read.

According to The Hill, Senate Republicans are going through with a plan to have the entire omnibus spending bill read on the Senate floor, a feat that won’t be completed for 50 hours. Republicans have vowed to vote against the 1,924-page, $1.1 trillion bill that is loaded with billions in earmarks.

“Senate clerks are expected to read the massive bill in rotating shifts around the clock — taking breaks to drink water and pop throat lozenges  — to keep legislative business on track, according to a Democratic leadership aide,” The Hill reports.

That would mean any Senate business would be stalled until Saturday evening.

“If they bring this up, they’re going to read it. It’ll take them a day or two to read it,” Sen. Jim DeMint (R-SC), who’s been pushing for the recitation, told Fox News. “Again, we’re trying to run out the clock. They should not be able to pass this kind of legislation in a lame-duck Congress.”

“To suggest that we can dual-track an issue as important as the funding of the government with this almost 2,000-page, $1 trillion-plus bill at the same time that we are seriously debating the START treaty is a fantasy,” Sen. Jon Kyl (R-AZ) told reporters Wednesday.

Sen. John Kerry (D-MA) responded by blaming Republicans for dragging their feet.

“The irony, the hypocrisy of us sitting here with them standing up and saying ‘Oh my Gosh, it’s the last minute,’ ” Kerry told The Hill. “It’s the last minute because they haven’t let us do anything. The game plan is usually to keep preventing things from happening.”


Source: "The Blaze" via Glen in Google Reader

Reince ‘Shovel Ready’ Priebus and his Supporters Still Digging Holes

On Wednesday, I wrote about the Reince Priebus stimulus problem.  Yesterday, Redstate, which usually hunts RINOs, decided to carve out some of its valuable real estate to defend Priebus with an overly nuanced post. I wouldn’t exactly call it a glowing endorsement. Heh!

I should note at the outset of this post that I do not have very strong feelings one way or the other about Reince Priebus, who is currently seeking to replace Michael Steele as RNC chairman … Priebus may yet be found to be unsuitable for the job for any number of reasons, but this is not one of them.

But, besides that, it’s purely lawyer-esque and totally off the mark. Reince (Evidently Not Ready for Prime-Time) Priebus started the real furor when he immediately melted-down and had his law firm start scrubbing the website, despite the many screencaps. Are you serious? So much for his crisis management skills. I mean, really?

If there was nothing wrong, why try to hide it? Also, the argument that his firm was simply doing its lawyer-ly duty doesn’t wash. This was about client solicitation. As a partner and high-powered political player, Priebus’ name was listed as key contact and co-author on multiple Stimulus-related documents for a reason. Come on, guys. You have to do better than this, or find non-damaging ambulances to chase. Can you say, profiteering? I knew that you could!

So, what’s Priebus going to do when he next mis-speaks three times, calling for Obama’s execution, to earn Worst Person in the World honors from that idiot, Olbermann? Get Keif to scrub his show archives? Fast-forward to 2 minutes into this video for the audio. This is the guy to replace Steele if you think he’s gaffe prone?

Really?? Oh, okay. As I said on Twitter, Obama in 2012 looks better every time some prominent Republican starts making news.

Most of the furor in the blosophere today concerns whether or not Priebus actually did any work with clients on the stimulus bill or not; this all completely misses the point and illustrates that the people who are circulating this attack don’t really have the slightest clue what it is that lawyers do or what our obligations to our clients are. Which is certainly acceptable under ordinary circumstances; I would not want to know about a day in the life of a lawyer myself if my paycheck did not require me to do so. But in this case, the record really does need to be set straight.

BS. They were soliciting business, not simply servicing clients. And the general counsel of an RNC that was railing against the stimulus had no business being anywhere near a firm looking to enrich itself and its partners, of which Priebus is one, from Stimulus dollars. Not if they want people to believe there are actually principles involved in politics and politicians, today. Is that so much to ask? As an aside, I see the Redtsate post made no mention of this. I wonder why?

It’s also worth noting that during Priebus’ first cycle as the Republican Party of Wisconsin chairman, the party paid his law firm, Michael Best & Friedrich (MBF), $80,000 for unspecified “legal fees.” All payments were made from 10/31/2008-11/13/2008. A review of FEC reports found the only prior RPW payments to MBF occurred in the 2004 election cycle. By that accounting, Priebus’ so called two jobs aren’t separate at all. He seems more interested in using one hand to wash the other, at the expense of taxpayers and donors. There is nothing new in that kind of politics, and very little that’s good for America, or the GOP – especially now.

Source: "Big Government" via Glen in Google Reader

Death Panels Begin: Reaction to FDA’s Decision to Begin Rationing

The Food and Drug Administration’s (FDA) announced yesterday that it would ration the late-stage cancer drug Avastin for breast cancer patients. (Ironically, the same day, the EU announced it would not ration access to Avastin.)  The reaction to the FDA’s decision has been fierce:

Rep. Kay Granger:  “For the 17,500 women across the country who rely on Avastin to survive, I am extremely disappointed the FDA has chosen to take away one of the very few options for the treatment of late-stage breast cancer. To make matters worse, this announcement comes on the same day that European drug regulators approved the continued use of Avastin for women with late-stage breast cancer.  It is troubling that women in Germany and France will soon have access to a life-saving drug, while women in the U.S. will not. I will continue to work in the 112th Congress to ensure doctors and patients continue to have access to every available treatment option.”

Rep. Rodney Alexander:  “As expected, the Obama administration has begun its process of rationing health care with its announcement to remove Avastin from the market for women suffering from metastatic breast cancer. Today’s decision to limit women’s access to a lifesaving treatment is amiss, and indicative of the frightful direction our health care system is headed.

 For the government to deny access to such a viable treatment is a severe intrusion into personal health care decisions that should be left between the patient and the doctor. Given that this drug helps over 17,000 patients manage their disease, it appears this move is merely based on cost cutting and rationing rather than on any real medical grounds.  Avastin has extended the lives of thousands of individuals suffering from this devastating disease. Going forward, they will no longer be afforded that opportunity. This decision represents the first major example of things to come if components of the recent health care overhaul are allowed to continue. I will work with others in the incoming majority to restore the fundamentals of the U.S. health care system.”

Susan B. Komen Foundation for a Cure:  Komen for the Cure’s president, Elizabeth Thompson said that the organization is concerned about the potential impact on women who are benefitting from Avastin if the FDA ultimately removes its approval for the drug for breast cancer treatment. “We want to be sure that women who are using Avastin, and for whom it is working, can continue to have access to it, that their insurers will continue to pay for it and that the drug’s manufacturer, Genentech/Roche, continues making the drug available to women through its patient support programs and considers an expanded access program.”

Sally Pipes, Pacific Research Institute:  “The FDA claims its decision had nothing to do with Avastin’s cost and was based solely on the drug’s medical effectiveness.  This isn’t believable. Every year about 40,000 American women die from breast cancer. Avastin is the last hope for many not to meet that fate. While the drug is costly, it often provides immense benefits to patients.”

Sen. David Vitter:  “With this disappointing decision, the FDA has chosen to place itself between patients and their doctors by rationing access to a life-extending drug.  We can’t allow this government takeover of health care to continue any further. I urge the FDA to consider any forthcoming appeals of this decision and immediately reverse course.”

Reps. Fred Upton, Sue Myrick, Joe Pitts and Phil Gingrey:  “Metastatic breast cancer patients often have limited options for treatment due to the aggressive nature of the disease. Patients in Europe will continue to have access to Avastin, one of the only drugs that treat women with stage IV breast cancers. Today, the European Medicines Agency issued a statement that it has confirmed that the benefits of Avastin in combination with paclitaxel outweigh its risks and that this combination remains a valuable treatment option for patients suffering from metastatic breast cancer.’
However, in this country the Food and Drug Administration (FDA) is withdrawing approval for Avastin to treat late-stage breast cancer. Many in Congress have expressed concerns that the FDA’s review of Avastin would be predicated on its price – not in its effectiveness in treating patients.

Allowing the FDA to factor in the cost of a drug when determining whether that drug should be approved is the first big step towards government rationing. The FDA should only look at the safety and efficacy of a drug.  Allowing the FDA to inject cost into the approval process jeopardizes the care of those nearly 18,000 women who rely on this drug. At a time when Europe is moving away from restricting access to life-saving medications, the FDA appears to be moving in the opposite direction. Last year, the United States Preventive Services Task Force recommended that women under 50 forgo routine mammography screenings. Today, the FDA is withdrawing its approval of a drug that helps prolong the lives of thousands of women living with aggressive breast cancer. Unfortunately, this is only just the beginning. The new health reform law – the so-called Patient Protection and Affordable Care Act – creates 159 new boards, commissions, and agencies that will destroy the doctor-patient relationship and replace it with federal bureaucrats deciding who gets care and what treatments they can receive. 
A doctor making medical decisions with informed patients has been the foundation of our medical system.  The Energy and Commerce Committee is committed to repealing the new health care law and we will hold hearings to hold the FDA accountable for its decision and protect access to treatment for the thousands of women who rely on this drug.”

Jim Martin, 60Plus: The Food and Drug Administration’s decision to “de-label” the drug Avastin will ration the drug from breast cancer patients and create a two-tiered system where the wealthy will have access to the life-extending drug and everyone else will be denied access.  This is wrong and must be repealed. The FDA’s decision is based on cost, pure and simple, and when you deny treatment based on cost it’s called rationing.  Do not be fooled by the rhetoric — this is a direct consequence of passage of President Obama’s health care reform bill.  Denying treatment based upon the cost of the drug opens the door to rationing of other drugs.  60Plus urges the United States Congress to immediately overturn this decision and allow breast cancer patients access to the treatments they need.

Wall Street Journal: Yesterday the Food and Drug Administration moved to revoke its regulatory approval of Avastin for metastatic breast cancer. Withdrawing a cancer treatment is almost never done, and though the decision was expected, that does not make it any less reprehensible.

The FDA said in a statement that it is removing Avastin’s breast cancer indication because the biologic does not provide “a sufficient benefit in slowing disease progression to outweigh the significant risk to patients.” Ponder that “sufficient.” The agency is substituting its own judgments about clinical meaningfulness for those of practicing oncologists and terminally ill cancer patients.

The risks of Avastin are real, but manageable. Clinical trials do not show that the drug extends life overall in the aggregate, but they have shown that it allows women to live longer without their disease getting worse. Avastin improves progression-free survival by about four months on average. Different patients respond differently, and the drug is far more effective in some than in others, for reasons that researchers still do not understand. There aren’t any perfect therapeutic options in end-stage oncology, and Avastin ought to have remained one of them.

Looking at the same data, the European Medicines Agency – the FDA’s counterpart in the European Union – decided on Thursday that it would continue to approve Avastin for breast cancer in combination with chemotherapy. In October, the U.S. National Comprehensive Cancer Network – a consortium of 21 leading cancer centers that issues evidence-based medical guidelines – reaffirmed its position that Avastin is valuable in some cases.

But such finely graded distinctions are not part of the FDA’s bureaucratic culture. The FDA provisionally (and reluctantly) approved Avastin for breast cancer in 2008 under an accelerated process for serious diseases. But the cancer drugs division believes that such flexibility is too friendly to industry and took extraordinary measures to rig the review process against Avastin’s maker, Genentech, as we reported on August 18 in “The Avastin Mugging.”

Genentech is contesting the ruling through a formal FDA appeals mechanism, and Avastin will remain available on an “off label” basis, because it is still approved for other cancers such as those of the lung, kidney and brain. However, private insurers are generally reluctant to reimburse for therapies that are not FDA-approved. .

One depressing implication is what the decision says about health-care financing as government entitlements expand. Avastin is a political target because of its high cost – a  typical course runs as high as $88,000 – and after ObamaCare all medical questions are inevitably political questions too. In September, the FDA and Medicare proposed a “parallel review” process that will allow the two agencies to coordinate market and reimbursement approval. Medicare is also increasingly opening “national coverage determination” reviews that allow a government board to decide if a therapy is “reasonable and necessary.”

Another danger is to the future of medical innovation. Cancer treatment advances incrementally. Every year doctors are better able to pair medicines with the biomarkers pointing to the individuals who are most likely to respond and learn more about tumor angiogenesis, which is the process of cancer growth that Avastin helps to choke off. The FDA’s assault will make it harder to conduct and enroll patients in further clinical studies, to say nothing of its message about the regulatory risk for drugs still in development.

The greatest tragedy will fall on the women who are suffering from an incurable disease and whose caregivers are trying to improve their quality of life in the months they have left. The FDA is taking away one of their only options.

Source: "Big Government" via Glen in Google Reader

Friday Free-for-All: Terror Edition

Today:

In 1973, Palestinians killed 30 people in the Rome airport

In 1981, an American general is kidnapped by the Red Brigade in Italy

In 1983, the IRA bombed Harrods in London, killing 6 people

Happy Holidays!

Source: "Big Government" via Glen in Google Reader

Thursday, December 16, 2010

Dems Gone Wild: Throwing a Lavish Party Before their Work Is Done

For those keeping score at home, the Democrats have pulled the tax-cut extension and still have no idea how to complete a budget. They’ve punted on a number of issues that they claimed were big priorities for them. So…what to do?

Oh yeah, throw a big party!!

Outgoing Appropriations Chair David Obey (D-WI) [rarely have we written a better phrase] took time off from trying to actually pass a budget to throw a big shindig for a dramatically shrinking Democrat staff.

Do you think Santa will grant them their wish?

The decorations do look nice. We’ve been told the shrimp, wine and creme puffs were exquisite. So, please don’t worry this holiday season. Even if Congress is a long way away from completing their jobs…the party will go on.

Merry Christmas.

Source: "Big Government" via Glen in Google Reader

Americans Have It Right: Ditch Tenure, Raise Pay for Effective Teachers

Americans are finally accepting the fact that the nation’s public education system is deeply flawed.
And a new poll reveals that the public is ready to embrace a logical compromise that would effectively address the problem – do away with tenure protection for bad teachers and provide higher salaries for good teachers.
According to the poll, conducted by Stanford University and the Associated Press, 78 percent of respondents believe it should be easier for schools to get rid of ineffective teachers. But 57 percent also believe good teachers deserve better pay.
That means the time is right to start promoting plans to increase the professionalism of K-12 teachers.
As we’ve said in the past, we would strongly consider any plan to significantly increase teacher salaries, as long as schools retain the power to choose the teachers they have on staff from year to year.
That would mean no more tenure, or severe alterations to current state tenure laws.
Professionals are highly compensated employees who are held accountable for their performance and do not bargain collectively. That’s a point that the teachers unions have yet to understand.
In a recent USA Today op-ed, National Education Association President Dennis Van Roekel writes that we need to “respect teachers and treat them like professionals.” But elsewhere in his column, Van Roekel defines a professional teacher as one protected by a strong teachers union and a teacher evaluation system that does not involve student test scores.
The unions can’t have it both ways.
Our view matches that of a majority of Americans: Treating teachers as professionals requires that each teacher be judged as an individual. That means rewarding good teachers with a higher salary, and holding ineffective teachers accountable for their poor performance.
Contrary to the claims of the unions, a ground-breaking new study from the Bill and Melinda Gates Foundation finds that teacher performance can accurately be measured by student scores on standardized tests.
True professionals would not shrink from a rigorous evaluation standard. That’s how the private sector operates and thrives, and the same standard should apply to “professional” teachers.
Lawmakers from across the nation should seize the momentum revealed by this recent poll and repeal tenure laws in exchange for higher teacher salaries. Such a move would also make teaching a more desirable profession for our brightest college graduates. According to Sir Michael Barber, the former education advisor to British Prime Minister Tony Blair, U.S. teachers largely come from the bottom third of their college graduating class.
We agree with the American people that it is time to start treating teachers as professionals. Effective teachers should be well-paid, and the ineffective ones should be weeded out.
This poll shows that Americans are willing to provide higher salaries in exchange for scrapping tenure. That would allow us to really elevate the teaching profession, and rescue it from the self-serving interests of the teacher unions.

Source: "Big Government" via Glen in Google Reader

Layman’s Guide to Obamacare Decision

Judge Henry Hudson’s recent decision in Virginia v. Sebelius rejected the notion that Obamacare’s individual mandate is constitutionally justified as either a regulation of interstate commerce or a tax for the general welfare.

First we will examine the individual mandate as a regulation of interstate commerce, but some basic background of Commerce Clause jurisprudence is in order.  In Perez v. United States (1971), the Supreme Court outlined three kinds of commerce for which Congress could regulate: (1) channels, (2) instrumentalities, and (3) activities which substantially affect interstate commerce.  If you have not seen these terms within the confines of the Constitution it is because they do not appear.  However, this understanding of the commerce clause has been drilled into the minds of attorneys for the last 40 years.  Frankly, Commerce Clause jurisprudence needs a re-examination, regardless of the health care issue.

A century of questionable precedents guides the courts.  One of the most egregious examples of government overreach occurred in Wickard v. Filburn (1942).  A farmer that grew more than his government mandated allotment of wheat, for personal use, was deemed to have substantially affected interstate commerce.  Interestingly, a similar case came up in 2005 involving (pay attention liberals) cultivation of marijuana for personal use in California, and in compliance with state law.  In Gonzalez v. Raich (2005), Justice Clarence Thomas dissented from an opinion confirming the federal government’s regulatory power over personal cultivation and use (yes, you read that correctly).  He rather presciently penned this statement:

If Congress can regulate this under the Commerce Clause, then it can regulate virtually anything – and the Federal Government is no longer one of limited and enumerated powers.

While the Supreme Court has slightly edged away from the expansive view of the Commerce Clause, limiting interstate commerce regulation to “economic activity” in cases like United States v. Lopez (1995) and United States v. Morrison (2005) , the balance still falls heavily in favor of the federal government when regulating interstate commerce, which brings us to the present case.

The government’s case hinges on the third prong of interstate commerce, substantial affect.

No person can guarantee that he will never incur a sudden, unanticipated need for expensive care; and very few persons, absent insurance can guarantee that they will not shift the cost of that care to the rest of society.

The problem with this statement should seem obvious on its face; one cannot prove a negative.  Also of note, the government relies on both Wickard and Gonzales, which tells us where Justice Thomas will stand on the issue (in case anyone was wondering).  Virginia Attorney General Ken Cuccinelli brings the issue back home by pointing out that this is about the individual mandate, and not whether Congress has some role in health insurance policy.

Importantly, it is not the effect on individuals that is presently at issue – it is the authority of Congress to compel anyone to purchase health insurance.

The government counters with the Necessary and Proper Clause, otherwise known as the Elastic Clause.  Essentially, because the individual mandate is necessary for the overall regulatory scheme imposed by Congress it should be deemed constitutional.  This is a rather complicated issue made all the more complex by the numerous inferences utilized over the last century of Commerce Clause jurisprudence (Randy Barnett presents a nice summary at The Volokh Conspiracy).  Needless to say, the government’s view would allow imposition of extra-constitutional provisions to otherwise constitutional regulatory schemes.

At any rate, Judge Hudson boils the issue down to the distinction between activity and inactivity.  In Wickard and Gonzales, individual economic activity resulted in controversy.  Under Obamacare, individual economic inactivity results in controversy.  Government regulation of inactivity would be unprecedented.  Drawing this distinction, Judge Hudson drives a stake into the heart of Obamacare.

Now we can deal with the individual mandate as a tax.  This argument does not hold much water since the government denied the individual mandate was a tax from the beginning.  The argument that it was a tax only emerged after the government realized there were serious constitutional issues.  Judge Hudson rather amusingly points out that Congress grounded Obamacare in interstate commerce regulation, within the very act!

The individual…[mandate] is commercial and economic in nature, and substantially affects interstate commerce….

Additionally, a delineation is made between a tax and a penalty.  Obamacare specifically used the term “tax” for other provisions, but did not for the individual mandate.  The courts deem this deliberate, so the government cannot claim the individual mandate is a tax after the fact.  Furthermore, the individual mandate does not generate revenue (because everyone follows the law, ideally), but rather exacts a penalty for failure to abide by the regulatory scheme.

The government wraps itself in constitutional language and legalese when presenting its case for Obamacare, but none of this fools the discerning eyes of a competent judge.  Consider yourself armed with the fundamental arguments to deflate progressive minds because Judge Hudson’s reasoning will be rehashed by the competent justices on the Supreme Court.

Source: "Big Government" via Glen in Google Reader

New EPA Rules Will Cost American Jobs

A newly released economic impact study finds that the Environmental Protection Agency’s “Tailoring Rule” – a back-door Cap-and-Trade style regulation scheme that limits the greenhouse gases industries can emit – jeopardizes over 130 renewable energy projects, between 11,000 and 26,000 green jobs, and $18 billion in capital investment across the country.

Worse, that is just the Tailoring Rule’s effect on a single industry, biomass. Although biomass is generally considered a carbon neutral and renewable energy resource, the EPA included in it’s list of “most wanted” industries. The economies and renewable energy goals of nearly 30 states could be jeopardized.

The study is neatly summarized here on the National Alliance of Forest Owners’ website, along with comments from people central to the industry. The full study is posted below.


Tailoring-Rule-Economic-Impact-Study

Source: "Big Government" via Glen in Google Reader

Reason.tv: What’s the Biggest Threat to Free Speech? – Gutfeld, Breitbart, Gov. Gary Johnson, Stagliano and More Sound Off

What’s the biggest threat to free speech? Reason.tv asks a cavalcade of politicians, journalists, filmmakers and content creators ranging from former Gov. Gary Johnson (R-N.M.) to Fox News’ Greg Gutfeld to The Atlantic’s Megan McArdle to adult filmmaker John Stagliano to new media magnate Andrew Breitbart to call their shot.

Featured (in order of appearance):

Andy Levy, Fox News’ Red Eye with Greg Gutfeld Gov. Gary Johnson, Our America Initiative

Roger Stone, Political Strategist, Blogger, The StoneZone

John Stagliano, Evil Angel Productions

Cyan Banister, CEO, Zivity.com

Robert Corn-Revere, Davis Wright Tremaine

Kevin D. Williamson, Deputy Managing Editor, National Review

John Tierney, Science Columnist, The New York Times

Robert A. George, Editorial WriterThe New York Post

Kristin Davis, “Manhattan Madam” and NY Gubernatorial Candidate

Andrew BreitbartBig Hollywood/Big Government/Big Journalism

Tunku Varadarajan, Editor, Newsweek InternationalNYU Professor

Rob Kampia, Executive Director, Marijuana Policy Project

Scott Ross, Editor, NBC’s PopcornBiz

S.E. Cupp, New York Daily News and The Daily Caller

Bob Bowdon, Director, The Cartel

Tony Ortega, Editor in Chief, The Village Voice

Fred Smith, President, Competitive Enterprise Institute

Joe Garden, Features Editor, The Onion

John Papola, Producer-Director, “Fear the Boom and Bust”

Megan McArdle, Business and Economics Editor, The Atlantic

Greg Gutfeld, Fox News’ Red Eye with Greg Gutfeld

The interviews were conducted on December 9, 2010, at The Box, a nightclub on Manhattan’s Lower East Side. They took place during a Reason event designed to celebrate our work – and those of others across the political and ideological spectrum – in defense of free expression.

Interviews conducted by Michael C. Moynihan and filmed and edited by Jim Epstein. Approximately 3.30 minutes.

Go to Reason.tv for downloadable version of this video and subscribe to Reason.tv’s YouTube channel to receive automatic notification when new material goes live.

Source: "Big Government" via Glen in Google Reader

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