Monday, January 31, 2022
By The Numbers - Wasting Taxpayer Around the World, Killing Freedom Domestically
Saturday, January 29, 2022
January, 2022, Part 9, Political Class Insanity: Self Enrichment Now More Important Than Integrity In Washington
- Some Washington sources are calling for an investigation of Nancy Pelosi’s family insider stock trading.
- The trigger for this interest is that she and her family may have earned up to $30 million on insider stock trades.
- At the same time, she has arrogantly said she opposes any efforts to ban lawmakers from trading stocks while in office.
- The majority of these earnings have come from high tech companies such as Apple, Google, etc., companies that Pelosi has been slow to act on their potential antitrust violations.
- A Congressional aide summed up the problem quite nicely: “The optics are terrible for her, for the party, and for Congress. And it raises serious questions anytime she takes actions or doesn’t act on issues relating to holding these companies accountable.”
- Furthermore, “Sure, it’s a free-market economy, but your average schmuck doesn’t get confidential briefings from government experts chock full of nonpublic information directly related to the price of stocks,” argues Walter Shaub, former director of the US Office of Government Ethics.
- Her office puts forth the stupid argument that Pelosi is not doing insider trading since all of the stock earnings were done by her husband, not her.
- And while she, as Speaker of the House, can significantly affect legislation and has the most access to insider information, over 50 members of Congress are also likely in violation of the STOCK which was supposed to prevent insider trading by members of Congress.
- The problem is that these people, especially Pelosi, are making millions of dollars because of their positions while the fine for violations of the STOCK Act is only $200 and thus, the downside of violating the STOCK Act is minimal vs. the high upside.
- Blake Masters, a candidate running for the Senate from Arizona, gives a nice summary of how disgusting this practice is: “These lawmakers are just out of touch with how normal people view the situation. Members of Congress should not be buying call options on Big Tech companies they’re in charge of regulating, that is ludicrous.”
- Secretary of Energy, Jennfer Granholm, failed to report, as required by the STOCK law, a load of stock transactions she made over the past year or so.
- She may have been guilty of nine violations just in 2021 according to a Biden administration report.
- Apparently, she failed to report these transactions within 45 days of the transaction as required.
- She ludicrously claimed that it was not her fault, that “clerical errors” were involved: “This was an inadvertent clerical oversight on reporting stock sales that ethics officials previously determined did not pose a conflict in her role as Energy Secretary and the Secretary paid the late filing fee,” an Energy Department spokeswoman said of Granholm’s transactions.
- Marie Newman is currently a Congresswoman from Illinois
- Recently the House of Representatives Ethics Office reported that there is “substantial reason to believe “ that the Congresswoman violated Federal law by bribing a potential political opponent not to run against her in the primary.
- It accuses Newman of likely promising a Congressional job to her potential primary opponent, Lymen Chehade, if he stayed out of the primary and supported her candidacy for Congress.
- Newman denied early reports that this was the case, claiming that she had no idea Chehade was planning to run against her.
- But emails were eventually uncovered that showed Newman had indeed had direct communication with Chehade where they discussed having him not run against her in the primary in exchange for a $140,000 a year Congressional job that would have little responsibilities and supervision and that Newman would endorse him for Congress once she decide to leave her Congressional seat.
- According to the Ethics Office, Newman and Chehade actually signed a document with these terms of agreement, a document she then refused to honor after she got elected.
- This refusal resulted in Chehade suing the Congresswoman for breach of contract.
Monday, January 24, 2022
January, 2022, Part 8, Political Class Insanity: Covid Fraud Reaches Maybe $100 Billion, California Taxes Could Go More Crazy, And Whitmer Continues to Be a Failure
It is the beginning of another month which means it is time again to review the latest political class insanity from the American political class. Each month it takes us multiple posts to cover the wasteful spending, incompetent government organizations and employees, government programs that usually make a problem worse than resolving it, inane and idiotic politician comments, etc.
To review past posts on this insanity and idiocy, just click on the first few posts in each month listed to the right of this page. After reviewing just a handful of these insanity posts we think you will agree that we are currently being served by the worst set of American politicians ever to hold office in our entire history.
1) In our last post, we discussed a typical failure of the government and American politicians to protect the wealth of taxpayers when it comes to criminal fraud. An Oregon man conned the Federal government out of millions and millions of covid relief dollars. Fortunately, he was tracked down and plead guilty which led to prison time for him in addition to having to repay the millions of dollars he made off with.
In that post, we assumed that he was not the only person who was conning the Federal government out of covid relief dollars. And apparently we were right and the level of potential fraud is mind boggling:
The Secret Service feels that the covid relief fraud is so bad that it recently named a National Pandemic Fraud Recovery Coordinator to track down the criminals.
The Coordinator will be responsible for coordinating the Secret Service effort to track down fraudsters, an effort that involves a whopping 900 separate investigations.
And these 900 potential fraudulent efforts may involve the Federal government sending out $100 BILLION inappropriately.
If true, that means that every American taxpayer lost about $1,000 each to criminal fraud in the covid relief programs.
And the fraud may have not been restricted to Americans, it is suspected that worldwide criminal enterprises also illegally profited by the Federal government’s inefficiency and stupidity.
So far, the Secret Service has only recovered a few billion dollars in fraud.
Another day, another billion, or 100 billion, dollars lost to fraud and government incompetence. Imagine how much better every taxpayer’s life would be if they had another $1,000 in their wallet. Imagine how many homeless Americans could have been fed or sheltered with that $100 billion. Imagine.
2) And despite continually wasting taxpayer money, the American political class, especially the ones in California, still want to take more and more of their citizens’ hard earned wealth:
The cost of living in California is already sky high with some of the highest tax burdens, highest utility bills and highest gas prices in the land.
The high cost of living is forcing thousands of residents and businesses out of the state to find places where they can keep more of their wealth.
And yet, California politicians do not understand this simple premise: higher and higher taxes equals fewer and fewer taxpayers.
A proposed law in the state legislature would install a so-called single payer health insurance process in the state which would DOUBLE the tax burden of every taxpayer in the state.
That is the conclusion of an analysis done by the Tax Foundation.
The study found that a typical California household would annually pay about $12,250 each to fund this single payer system.
These tax increases would result in an additional $163 billion a year in state government tax revenue, an alltime high.
The top marginal tax rate for the state income tax would be a whopping 18.05%.
The median rate across the country is less than one third of this new proposed rate.
Given that the top marginal tax rate for Federal income taxes is 37%, a high earner in California would be about 55% of their income to just cover state and Federal income taxes.
They would pay additional taxes for property taxes, Social Security and Medicare taxes, gas taxes, etc.
It would probably not be a stretch to say that high earners in California would be paying over 70% of their income in taxes under this new law.
Which means that high earners would be fleeing the state even faster, reducing state government tax revenue even faster which would require more tax rate increases to cover the out of control spending which would drive more people out of the state and the financial death spiral is now in action.
The law would also increase the state payroll tax paid by employers and would put in place a 2.3% gross receipts tax on businesses which would drive more businesses out of the state or out of business.
Unbelievable that grown men and women who happen to be politicians can be that stupid. People and businesses are not going to stay in the state and become economic slaves, handing over 70% of what they earn to the state and Federal governments. The financial death spiral is imminent and these folks in the state legislature obviously don't know what havoc and destruction they are about to bring to the state.
3) Gretchen Whitmer, the governor of Michigan, was one of the most despotic and hypocritical governors in the entire country as it applied to the covid pandemic. She imposed draconian and unnecessary restrictions on Michigan residents and businesses while her husband and she tried to and actually violated the very restrictions she put in place.
And the sad part of her dictatorial approach is that Michigan has constantly had some of the highest covid infection rates in the country, meaning that her approach did not protect her citizens as well as other governors while crushing the state economy and businesses in that state.
However, there was recently a bit of good news out of Michigan as a business owner decided that freedom was better than living under a dictator of a governor, fought the government bureaucracy and won the battle:
The owner of the Iron Pig Smokehouse, Moore Murphy Hospitality LLC, sued Whitmer and the state of Michigan in order to save his business.
Otsego County Judge, Colin Hunter, agreed with the Smokehouse and ruled in favor of the restaurant.
The lawsuit started when Whitmer declared that no state restaurant could serve customers inside their restaurants and limited outdoor dining also.
For a while, the Smokehouse ignored the governor’s decrees and ended up getting multiple citations and incurring heavy fines.
The lawsuit alleged that Whitmer did not have the legal authority to unilaterally impose the shutdowns and restrictions:“In order to have the full force and effect of law, the Michigan Department of Health and Human Services emergency order must draw its authority from a lawful delegation of power.”
A little good news about freedom, a concept that has taken an unnecessary beating from overreaching and hypocritical politicians. Hopefully, freedom decisions like this will start cropping up around the country.
4) Speaking of Whitmer:
Whitmer was one of the Democratic governors who decided to stick covid infected senior citizens into nursing homes and assisted living facilities across the country, a fatal decision that resulted in a tremendous amount of unnecessary deaths.
A recent audit by the state auditor found that Whitmer’s administration probably under reported the number of nursing home deaths by a whopping 30%.
30% represents thousands of lives, many of whom died unnecessarily because of the faulty decision to house covid senior citizens with healthy senior citizens.
Another news report claims that the under count was 42% based on information that the state's health department was required to produce.
So, people unnecessarily died because of Whitmer, and other governors’ stupid decision, and then Whitmer, like New York’s Governor Cuomo, under reported the deaths due to their ineptness in order to make their bad decisions look less bad. Not surprising, bad politicians making bad decisions and then lying about their fatal actions.
That will do it for today: billions of covid relief dollars probably lost to fraud and government incompetence, California politicians are economic idiots, and Gretchen Whitmer lies about covid and loses in court.
Saturday, January 22, 2022
January, 2022, Part 7, Political Class Insanity: Chicago Gets More Violent, The Feds Screw up Another Simple Website and More
It is the beginning of another month which means it is time again to review the latest political class insanity from the American political class. Each month it takes us multiple posts to cover the wasteful spending, incompetent government organizations and employees, government programs that usually make a problem worse than resolving it, inane and idiotic politician comments, etc.
To review past posts on this insanity and idiocy, just click on the first few posts in each month listed to the right of this page. After reviewing just a handful of these insanity posts we think you will agree that we are currently being served by the worst set of American politicians ever to hold office in our entire history.
1) All too often, especially lately, we have reviewed the total failure of the local political class in Chicago to curtail the ever growing violence, homicides, and crime rates in the city. Every year, Chicago leads the country in total murders and 2021 and early 2022 do not show any reason why that despicable distinction should not continue:
In a single, recent weekend, 77 people were shot in Chicago.
Five of those shot died from their wounds.
At least seven of those shot were under the age of 17.
In one situation, a mass shooting occurred when eight people were shot in a short time at the same location.
Local pastor, Donovan Price, of Street Pastors neatly summarized the situation: “Hundreds of people looking around, onlookers, family members, people who are injured. Just another night of mayhem in Chicago, summer night. It shouldn’t be like this, it shouldn’t be like this, but unfortunately, it looks like this may be our summer, definitely going to be our Fourth of July.”
As we have said so many times, a very, very basic function of government is to protect the lives and property of the citizens it serves. Failure to do that basic function means the politicians in charge have failed miserably regardless of how well they perform their other duties. And the situation will not get much better in Chicago in the near future for three reasons:
The current mayor, Lori Lightfoot, has no clue how to fix the problem or she would have done it already.
Her and other local city politicians were big fans of defunding the Chicago police so the police force has fewer resources to handle an ever escalating crime rate.
And finally, the governor is about to sign legislation that strips individual police officers of legal protection which means more police officers will be leaving the force in order to not be put in such a vulnerable legal position and fewer people will join the police force.
Failures of the Illinois and local political class all around.
2) Remember early in the Obama administration when Obama bragged how easy it was going to be to order Obama Care insurance policies on an easy to use government website? Remember what a disaster it was when it was launched:
People could not get access to the site.
People couldn't easily order the insurance they wanted on the site.
The site was so bad from a data security perspective that it exposed millions of Americans to the real danger of identity theft.
The Obama administration had to hire a whole new data systems company to fix the problem after wasting millions and millions of tax dollars on the original company who set up the horrible website.
And remember that was not a difficult website to build, untold thousands of companies around the world were able to easily and effectively set up a similar website to sell services and products. Only the Federal government and the politicians that operate it could screw it up so bad.
But it appears that things have not gotten any better from a computer competency perspective under the Biden administration:
A covid priority of the Biden administration has been to distribute free covid testing kits to every American household that wants them.
Thus, the administration decided they needed a really simple ordering website since they were hawking only one, single product: a free covid test product.
In theory, all a citizen had to do was go to the government website, enter their name and address information, and the website would arrange for a free covid test kit to be sent to their address.
Simple, right, a 12 year old computer nerd could probably set this up in a couple of hours: enter name and address, send file with a name and address to a fulfillment location who picks up a single product, drops it in a package, and takes it to the Post Office to be shipped.
But somehow the Federal government screwed up this simple process.
You see it did not take into account an address with multiple families living at it like an apartment building or a condo.
The system was set up to not send more than one test kit to an address, a good thought so that people would hoard the test kits.
But in an apartment building, many families have the same address but just a different apartment number.
So, for example, if an apartment building was at “10 Main Street'' but had 40 different apartments at that street address, only the first apartment family to order would get their kit.
The government website would ban anyone else from 10 Main Street address from getting a kit even though they lived at a different apartment number but had the same street address.
The simplest of processes and the government could not even get that right. A teenage geek could have developed the same website process in a very short amount of time and gotten it right but not the government and the bureaucrats and politicians that operate. Insane.
3) Many times over the past few years we covered how effective and idiotic many of Bill de Blasio’s actions and plans were when he was the mayor of New York City. The bottom line is that his administration caused many New York residents and businesses to leave the city and crime, especially violent crime and homicides skyrocketed. Garbage wasn’t collected in a timely manner, schools under performed, and other city quality of life factors suffered.
But the violent crime increases were the most troublesome. De Blasio is no longer mayor and a new mayor, Eric Adams, is in charge. In the first few weeks of his administration, he bragged about how safe the NYC subway was and that he traveled to work using the safe subway system. But apparently he now has a different view of how dangerous the city and the subway are:
In a recent press meeting, Adams admitted that he had “trepidations about riding the NYC subway” relative to his personal safety.
His comments come three days after Michelle Go, a NYC subway rider, was pushed into the path of an oncoming train by a homeless man and was killed.
All of a sudden, Adams realizes the dream world he was living in: “Day One, January 1, when I took the train, I saw the homelessness, the yelling, the screaming early in the morning, crimes right outside the platform. We know we have a job to do — and we’re going to do both. We’re going to drive down crime, and we’re going to make sure New Yorkers feel safe in our subway system. And they don’t feel that way now. I don’t feel that way when I take the train every day, or when I’m moving throughout our transportation system.”
Having worked and lived in NYC for a very long time, how was it possible for this new mayor to be that out of touch with the crime reality in the city? Seriously, how do you not know what is going on in the subways, on the streets, in the alleys of the city you just got elected to run? So out of touch.
4) Probably hundreds of times in this blog over the years we have shown how careless and reckless the American political class is with the tax dollars they take from us all. And a recent disclosure in Oregon continues to reinforce this view of incompetence:
A man in Oregon is going to jail for legally obtaining covid relief government funds and using those ill gotten funds to invest in Tesla stock.
He is being forced to repay more than $4 million and forfeit 25 properties and more than 15,000 shares of Tesla stock, stock that is worth about $16 million.
He scammed not one but three government agencies, the Small Business Administration, the Economic Injury Disaster Loans organization, and the Paycheck Protection Program.
He submitted numerous loan applications using the business names and personal identity information of relatives and business associates without their knowledge.
He also submitted false IRS forms.
He submitted for nine government loans of which six were approved which got him over $3.5 million in taxpayer wealth.
He pleaded guilty to bank fraud, money laundering, and identity theft which got him four years in prison, five years probation, and the restitution discussed above.
The good news is that this taxpayer scammer got caught and taxpayer money was recovered. But how many others did the same thing and did not get caught? How many others took the U.S. taxpayer for millions of dollars and then had the good sense to get themselves and their loot out of the country before they got caught? I can guarantee you this Oregon gentleman was not the only scammer and probably balloons of dollars were lost, never to be recovered, by the continued government incompetence.
The political class incompetence rolls on, unimpeded by competence, common sense, and integrity of operation: Chicago continues to be a war zone, the Feds cannot build even a simple procurement website, the new NYC mayor is so out of touch with his own city, and fraud and criminal activity continue to steal hard earned taxpayer wealth via government ineptness.