Taxes and the Economy

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BUSH: Go ahead liberal punks - just try to outspend me!
by Mike Crane

Every so many years the world sees the rise to power of a man who rises to the pinnacle of success in some endeavor. In some cases mankind benefits, sometimes only an elite few benefit.

Thomas Jefferson was just such an event. Thomas Jefferson set the standard that may never be surpassed in the understanding and creation of government - man relationships. Generations have benefited greatly and still are. My grandchildren will benefit from the legacy of Thomas Jefferson if we do not throw it away in our life time.

George Washington was just such an event. George Washington riskedbush spending problems all; fame, fortune and life to create a country in which many generations would have the opportunity to prosper. Many generations have already benefited from the work and sacrifice of this man. My grandchildren will benefit from the legacy of George Washington if we do not throw it away in our life time.

George W. Bush is just such an event. But this is an event of a different nature. George W. Bush will go down in history as the greatest spender of all time. The greatest accumulator of debt for future generations of all time. Unchecked he may preside over the accumulation of more debt than the rest of the entire world combined during his eight years in office.

A record that will hopefully never again be surpassed by any mortal man.

Many generations of Americans will suffer from this accumulation of debt, including your grandchildren and mine. There is no excuse for such fiscal irresponsibility. Please read that again. There is no excuse for such fiscal irresponsibility.

bush spending problemsSome have compared his spending habits as spending like a "drunken sailor." This is so wrong - so misguided - that it should never be used. I have ancestors who did their tour of duty as "drunken sailors." I have friends who did their tour of duty as a "drunken sailor." True - these men wasted their money, maybe they wasted their children's money - but they did not put my grandchildren in debt! George W. Bush is putting all of our grandchildren in debt every day, year after year.

Too many so-called "conservatives" whether they be Republican or Democrats have cowered before President Bush and groveled to fight for their place in the feeding trough of public debt on the credit card in our name. They have accepted their ever larger campaign contributions from special interests and paid lip service to the citizens they are sworn to represent.

There is no excuse for such fiscal irresponsibility.

Just how much debt has George W. Bush  and our current crop of politicians accumulated?

I. National debt by Treasury Department (

09/30/2005        $7,932,709,661,723.50
09/28/2001        $5,807,463,412,200.06

In 4 years - 2.1 Trillion dollars, that is $2,100,000,000,000.00. The bad news, next year will be just as bad or worse!

II. Trade Deficit (


2001 Surplus
2002 Surplus
2003 Surplus
2004 Surplus
2005 Surplus
January (35.2) (29.6) (41.4) (43.1) (58.3)
February (29.4) (32.6) (40.4) (42.1) (61.0)
March (32.7) (31.5) (43.7) (46.0) (55.0)
April (31.5) (34.0) (42.5) (48.3) (57.0)
May (28.0) (34.0) (40.8) (46.0) (55.3)
June (29.5) (35.4) (40.0) (55.8) (58.8)
July (30.1) (34.1) (40.8) (50.1) (57.9)
August (28.4) (36.2) (40.2) (53.5)  
September (30.8) (36.6) (41.3) (51.6)  
October (30.8) (35.0) (41.5) (55.5)  
November (29.7) (39.7) (40.0) (60.3)  
 December (26.6) (43.2) (44.0) (56.4)  

Just adding up the Trade Deficit for the same period 08/2001 - 07/2005 is almost another 2.1 Trillion Dollars, that is $2,076,800,000,000.00. The bad news, this year is headed for another George W. Bush trademark - highest trade deficit for a single year in the history of the world! This year's deficit has exceeded last year's all time highest deficit in the history of the world - every month so far!

Without counting the Federal Pension fund shortage, the Social Security fund shortage, the new corporate Pension fund bailout shortage and the countless other federal fund shortages, just the Treasury Debt and Trade Deficit debt amount to just under 4.2 Trillion Dollars in four years. Over 1 Trillion Dollars a year and counting! That is roughly $14,000.00 of debt - per man, woman, child and murdered unborn baby in the entire country. That is above and beyond the taxes collected and spent.

These are the government's own numbers, not ours.

These are just plain facts. The facts are very simple and plain, George W. Bush is presiding over the greatest accumulation of debt in the history of the world and is the world's all time leading Big Spender!

Butbush is a liberal there is no uproar in Congress from either the Republican or Democratic Parties. In the last 40 years these same two parties, each taking their turn as the controlling party have converted our country from the world's largest creditor nation to the world's largest debtor nation.

If you believe that such spending and debt accumulation can continue - then you should be happy with the current crop of politicians today.

Hopefully you have a better grip on reality. You know - the spending and accumulation of debt can not continue and must end. You know -  from personal experience there are very few ways to handle excessive debt; paying interest, increasing taxes, lowering quality of life, inflation and devaluation. You know - none of these options are positive things. You know -  these are going to be your legacy to your grandchildren if nothing changes. You know - that such irresponsibility is wrong - dead wrong.

You also know that nothing will change until you - the citizens make it change! But the longer we wait, the more that things will have to change!

We need a return to the Principles upon which our country was founded.

This will not be an over night change, it will be a long walk back up the slippery slope of fiscal irresponsibility that we have been sliding on. But every year that we wait we are digging the hole deeper, at least a Trillion Dollars, that is $1,000,000,000,000.00 deeper. Now for the bad news - the Democrats are almost as bad.

Going back to the initial two men mentioned, Thomas Jefferson and George Washington. Both warned us that our greatest enemy would be a growing central government and George Washington warned us about the corruption that would come with the abuse of political parties. Today their warnings, unheeded, have come home to roost.

Way too many in the Republican and Democratic Parties have abandoned our founding Principles, including "limited government" and it is hard to see what will break their collusion with special interests. They have in effect abandoned you - the citizens - and your future generations. Maybe it is time to abandon them until they shape up, if they can.

The article below is from a so-called conservative news source, but all it even suggests is a return to the "undisciplined spending habits" of the Democrats. Much, much more is needed. If you agree please read: Many ask, “Why a Southern Party …?”.

“Nobody made a greater mistake than he who did nothing
because he could only do a little.
Edmund Burke (1729 - 1797)

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GOP 'Spending Spree' Threatens Party's Grip on Power
By Randy Hall Staff Writer/Editor
October 05, 2005

( - Eleven years after Americans routed Democrats at the ballot box over undisciplined spending habits, breaking the party's monopoly on power in Washington, voters may be leaning toward a similar punishment of the Republican Party, with the issue again revolving around the dominant party's spending of taxpayer dollars.

Even some of the GOP's most loyal activist groups are angry and frustrated, complaining about a "spending spree" or a Congress that has gone "whole hog while letting down every hard-working American taxpayer."

A Cybercast News Service analysis of federal spending reveals that non-defense discretionary spending -- which does not include such mandatory items as Social Security and Medicare -- climbed 79 percent between 1994 and 2005. The Clinton administration's $259 billion spent on such items in the fiscal year 1994 budget pales in comparison with the $464 billion in similar expenses by the Bush administration in the fiscal year 2005 budget.

The rate of inflation, meanwhile, as measured by the consumer price index, rose only 33 percent over the same time frame.

Republicans have controlled the U.S. House for all of those 11 years and the Senate for the entire time except for a 17-month stretch in 2001 and 2002. The White House was occupied by Democratic President Bill Clinton for the first six years of the Republican congressional majority, but Republican President George W. Bush has given the GOP a monopoly on power for most of the last five years.

According to a decades-old popular perception, Republicans favor spending on the military or "guns," while Democrats prefer spending on civilian programs or "butter." But Pete Sepp, vice president of communications for the National Taxpayers Union, told Cybercast News Service that the Republican spending philosophy in Congress "can be summed up in two words: guns and butter, with butter getting an even bigger share."

The Republicans are engaged in a "spending spree," according to Sepp, having adopted the practices of the Democratic Congress they ousted in 1994.

The 1994 Republican landslide was fueled by then-U.S. Rep. Newt Gingrich's "Contract With America," the 10-point GOP agenda that included a constitutional amendment requiring a balanced budget. Even though the amendment never passed, the proposal solidified the idea that Republicans were more fiscally prudent.

However, Sepp says Republican leaders no longer feel the same way. "Many Appropriations Committee posts went to senior GOP lawmakers who had spent years playing the compromise game with their Democratic colleagues -- which only perpetuated the 'everyone gets a slice of the pie' mentality."

The change in GOP spending, Sepp added, "had to do with the trappings of incumbency.

"Some Republicans in Congress felt like they had been so deeply frozen out of power that they would do anything to keep it, even though the popular base of support that gave them control of Congress wanted to see real changes in Washington's spending habits," Sepp said.

Citizens Against Government Waste (CAGW), another conservative group that has frequently sided with Republicans, notes on its website that "Congress continues to live in its own unreal world, believing there are no consequences to a steady diet of pork fat.

"Our elected officials have let themselves go whole hog while letting down every hard-working American taxpayer," according to the CAGW web statement.

The federal government had 1,318 pork projects totaling $7.8 billion in 1994, but by 2005, that number had mushroomed to 13,997 projects costing $27.3 billion, CAGW figures show.

Tom Schatz, who heads CAGW, applauded President Bush for his proposal last year to eliminate 65 programs and reduce spending in 63 others, but he noted that Congress ended up abolishing only four programs and cutting spending in 20 others.

"Congress needs to reconsider its dismissive attitude toward the president's budget cuts," Schatz said. "With the federal deficit edging back toward record levels, the president's cuts could help offset hurricane recovery without adding to the enormous debt burden being left to future generations."

During a White House press conference on Tuesday, President Bush again called on Congress to cut spending, this time to help pay for as much hurricane relief as possible.

"I'll work with members of Congress to identify offsets, to free up money for the reconstruction efforts," Bush said. "I will ask them to make even deeper reductions in the mandatory spending programs than are already planned. As Congress completes action on the 2006 appropriations bills, I call on members to make real cuts in non-security spending."

The Concord Coalition, a bipartisan group founded by a deficit hawk -- Republican U.S. Sen. Warren Rudman of New Hampshire - believes the policies of Bush and the congressional leadership represent a "very undisciplined fiscal policy."

"I think where the conservatives fall short is that they won't put revenues on the table," said Robert Bixby, the coalition's executive director. "It's unrealistic to think that we can continue to cut taxes and fund all these new initiatives, and yet, that seems to be where the White House and the congressional leadership are headed."

Bixby pointed to what he said were the benefits of divided government in Washington in the 1990s, when "pay-as-you-go" budget rules and spending caps were enacted.

"My belief is that the Republican Congress and the Democratic president helped check each other and kept the deficit under control. We actually had a surplus for a couple of years" as the Clinton administration came to a close, Bixby said.

"That led to a push for a big tax cut, and after 9/11, the purse strings opened up," he added. "Then the budget rules and caps expired. That 'perfect storm' of events swept away any feeling of fiscal restraint in Washington, and having been sprung from the lock box, the politicians have not been inclined to get back into it."

Budget offsets should include canceling part of the latest highway spending deal or slowing down the implementation of the Medicare prescription drug benefit, Sepp said, adding that Democrats do not appear to pose a viable alternative to the GOP's spending habits. "Democrats have proposed few options for reducing federal spending, especially in the vital area of entitlements," according to Sepp.

"I also think the absolute, concrete lesson from this spending spree is that institutional mechanisms matter," he noted. "Budget process reforms and constitutional requirements for a balanced budget and 'super majorities' for tax hikes may not sound sexy, but they are absolutely vital for encouraging those who talk a good game about limited government to actually follow their words with deeds," Sepp added.

If the GOP fails to take action to resolve the current budget situation, Bixby said the party could be penalized in the mid-term congressional elections next year and in the presidential election of 2008.

"People tend to get mad about deficits when they're mad about other things as well," Sepp said. "So if people are feeling edgy about the economy, if people are feeling edgy about the war and edgy about the price of gasoline, the fact that the government is $400 billion in deficit and running an $8 trillion debt will become more of an issue because it reinforces the impression people have that the government is not managing things very well."


[About the author] - Mike Crane is the 3rd vice-chairman of the Southern Party of Georgia and a candidate for the Georgia State Senate. He has been a leading voice for restoring our Founding Principles, including returning to fiscal responsibility and "limited government." He proposes a referendum for any and all tax increases, "sunset clauses" on all government actions that have the effect of law and establishing FAIR Trade policies as examples of returning government to the citizens and ending special interest influence. He can be contacted by email at: or by phone: 706-374-2640.

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