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I had a hard time getting to sleep last night, since my portable satellite radio batteries were dead; I decided to try to find an AM station to listen to. As I flipped through the tuner all I could find was right wing talk shows complaining about the House Healthcare proposal, that placed a surtax on those making more than $350,000 in adjusted gross income. I recognized all the talking points that the callers were using like “that top 1% they are taxing are paying 40% of income tax and a bottom 10% pays nothing at all.” The callers also used the classic boiler plate line the GOP congressman use "that's a tax on small businesses, they will relocate their businesses.” One would've thought that the listeners were lobbyist for the rich. That small business the republicans keep talking about includes high-income investors and partners in law firms and in the Investment Banks. This is actually a small slice of the taxpayers because according to the Tax Policy Center, the top tax rate has no economical significant effect on entrepreneurship because it would take about a 50% point cut in the top rate to generate a 1% change in entrepreneurial activity, so the increase of 3% and does not seem like a job killer.

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/11/AR2009041101687.htm

Eric Cantor's (R-VA) interview with Chris Wallace Sunday convinced me that the Republican Party does not have an clue. Mr. Cantor said we should give tax incentives to small businesses instead of the stimulus package because it would encourage the small businesses to do more hiring. Hello Mr. Cantor, we have a demand problem. Companies could only hire so many to watch the traffic go by, consumers are saving and banks aren't lending. I see where Governor Perry now wants the stimulus money and Alaska overturned Governor Palin's refusal to take stimulus money. I also see where Goldman Sachs and JP Morgan turned in some record profits benefited by bailout money. Joe Scarborough said the liberals should not look at profits as being evil. Joe misses the point, not all banks were bailed out, those that were, got a benefit that others didn't…. Goldman Sachs and JP Morgan are in the business of making money, not products, so the private sector does not benefit as much.

I was listening to Eliot Spitzer this morning, saying that we're using outdated methods for our economic forecast because we cannot accurately project today's consumer confidence. The consumer of today is refinancing, cutting, spending, and saving at a higher rate than they were just a year ago. The banks will enforce stricter lending practices; businesses will not carry as much inventory and will probably go with a smaller workforce. These are all good practices but it will give the economist fits. The Fed chairman is already predicting a very low growth in this calendar year. Joe Biden may have gotten in trouble for saying that the administration misjudged its economic forecast, but I believe he was correct. Look at all the gloom and doom predictions out there, and they're just going by what they hear, without economic data in front of them. Unless the administration is 100% of economic doom, they don't want to go out there and add fuel to the fire.

The president's policies may be all wrong, but I like what he said the other day,"We can continue to defer tough decisions for another day or step up to our responsibility.” I know, I have been railing about the high cost of Health for over three years; finally someone is stepping up and trying to do something about it. Passing legislation is only the first step, monitoring it and making adjustments will be critical in the first six months.The president also said the other day “those who helped create this mess are leaving it up to one party to clean it up. Thanks OK, I accept the challenge.”(I'm paraphrasing) That's all I ever ask for because the naysayers, skeptics, and the Republicans will be against everything, so if the administration is going to take all the blame, go all out.