Wednesday, November 9, 2011

To: Friends & Supporters

From: Gary L. Bauer


Democrats Demand Higher Taxes

Republican members of the deficit reduction super committee put a $1.2 trillion proposal on the table this week. According to various news reports, the plan represents a significant shift for the GOP members in that it "included, for the first time, new tax revenue to the tune of about $300 billion."

The plan, proposed by Sen. Pat Toomey (R-PA), proposes to cut $700 billion in spending, raises $300 billion through various means, such as selling off federal land, and brings in additional $300 billion in tax revenues. It represents a 2.3-to-1 ratio in terms of spending cuts to tax increases, achieved by limiting deductions while lowering tax rates. Democrats flatly rejected Toomey's proposal.

The Washington Post quotes a Democrat source who said, "It's impossible to net out $250 billion, unless they're willing to raise rates on capital gains and dividends. …They either think we're morons or desperate." I'm going with the former.

There is a reason -- a very good reason -- why we have a separate and lower capital gains tax rate. It is the one major tax policy that can encourage investment and economic growth, and the Democrats are bound and determined to raise it! Raising capital gains taxes might make Democrats feel good, but it is bad economic policy that always results in less investment and lower revenues. Raising capital gains taxes now would be a moronic thing to do!

Election Results

Listening to the liberal news media today you would think that Republicans got skunked in last night's off-year elections. While it's true that there were a few high profile losses, the result was more mixed.

Democrats and their big labor allies are crowing about the lop-sided repeal of an Ohio law limiting collective bargaining rights for public sector employees. Voters rejected the law 61% to 39%. But those same Ohio voters passed an initiative rejecting ObamaCare by an even larger margin -- 66% to 34%.

For whatever reason, Ohio Republicans could not close the deal as they did in Wisconsin, where big labor's recall efforts were beaten back. If there is any lesson to be gleaned from the results in Ohio it is probably that voters do not like overreaching by either party. They don't want big government telling them what they must do with their own money. And they don't like it when it appears as though the middle class is bearing the brunt of cost-cutting measures.

While controlling spending is absolutely essential, Republicans, while fighting the unions, cannot be seen as enemies of policemen, firefighters and teachers. These are honorable, necessary professions that employ many good people who are genuine public servants.

In the gubernatorial races, nothing changed. Democrat Steve Beshear was reelected in Kentucky, while the Republican lieutenant governor succeeded Haley Barbour in Mississippi. In Virginia, the GOP picked up six seats in the state House, winning a historic two-thirds majority. It also appears poised to take control of the state Senate. There will be a recount in one race in which the incumbent Democrat is losing by just 86 votes. (Yes, every vote does matter!)

Obama carried Virginia in 2008, but last night's results led the Washington Post to run a story headlined, "Virginia Elections May Be A Warning Sign For Obama." If the results hold, it would mark the third consecutive year in which Democrats took a beating in the Old Dominion, strongly suggesting that Obama's hopes for a repeat win in 2012 are fading fast.

In Mississippi, a ballot initiative to declare that life begins at conception failed by a wide-margin -- 42% to 58%. It was disappointing to see the pro-life cause suffer such a loss in this conservative state. But pro-life groups were divided on the merits of the initiative, and pro-abortion groups spread a lot of misinformation that confused many voters.

In Arizona, State Sen. Russell Pearce, who spearheaded that state's tough anti-illegal immigration law (SB 1070), lost a recall election to a more moderate Republican.

But in western Pennsylvania, Republicans scored a major upset, taking control of the Westmoreland County Commission for the first time since 1956. Democrats there have a 53% to 37% advantage in voter registration, which makes the GOP win all the more surprising, adding to speculation that the Keystone State may not be securely in Obama's column on Election Day 2012.

"Ain't Gonna Happen"

At his press conference yesterday, Herman Cain once again categorically denied sexually harassing anyone. He even offered to take a lie detector test. (I wonder if his accusers would do the same?)

Cain vowed to continue speaking out against these allegations in order to defend his character and reputation. He also vowed to stay in the race, saying, "As far as these accusations causing me to back off and maybe withdraw from this presidential primary race -- ain't gonna happen."

Unfortunately for Cain and the country, I don't think this sordid story is going away either. When we have so much at stake, when we should be focused on stopping Obama's socialism, we are sidetracked by unsubstantiated scandals. America deserves better.

Is Newt Next?

There is no question that Newt Gingrich's campaign, once written off for dead, is experiencing a rebirth of sorts. Of all the candidates, Newt is the only one whose numbers are going up right now, and several polls have found that Gingrich may be best positioned to capitalize on the conservative vacuum if Cain collapses.

Newt's campaign must be encouraged by a lengthy editorial in today's Wall Street Journal by Dorothy Rabinowitz making the case for "Why Gingrich Could Win." Consider this excerpt:

"Finally, Mr. Gingrich announced that as the Republican nominee he would challenge President Obama to seven Lincoln-Douglas-style debates. 'I think I can represent American exceptionalism, free enterprise, the rights of private property and the Constitution, better than [Obama] can represent class warfare, bureaucratic socialism, weakness in foreign policy, and total confusion in the economy.'"

Tune In Tonight!

The Republican presidential candidates will debate the economy, jobs and the housing crisis tonight at 8:00 PM ET on CNBC.

Media Notice

Tune in tomorrow to Family Talk with my good friend Dr. James Dobson. Tomorrow's show will feature the second part of a conservation between Dr. Dobson, myself, Tony Perkins and Alan Sears regarding threats to religious liberty in America. Click here to listen online or to find station listings.

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