It's about time!

WSJ: Billions in Bloat Uncovered in Beltway

Strange Tales of the Vampire Congress

Meet the Beltway bloodsuckers. They convene in the dead of night, when most ordinary mortals have left work and let their guard down or are lying asleep in bed. Pale-faced and insatiable, the nocturnal thieves do their nefarious business in backrooms and secret chambers. Their primary victims? Taxpayers, the free market and deliberative democracy.

Democratic leaders have been promising the most ethical, transparent, open and engaged administration for years. Instead, they have delivered a bleak and creepy legislative environment that could double as a "Twilight" movie set.

Read more

Tax Burden of Top 1% Now Exceeds That of Bottom 95%

By Scott A. Hodge

Newly released data from the IRS clearly debunks the conventional Beltway rhetoric that the "rich" are not paying their fair share of taxes.

Indeed, the IRS data shows that in 2007—the most recent data available—the top 1 percent of taxpayers paid 40.4 percent of the total income taxes collected by the federal government. This is the highest percentage in modern history. By contrast, the top 1 percent paid 24.8 percent of the income tax burden in 1987, the year following the 1986 tax reform act.

Remarkably, the share of the tax burden borne by the top 1 percent now exceeds the share paid by the bottom 95 percent of taxpayers combined. In 2007, the bottom 95 percent paid 39.4 percent of the income tax burden. This is down from the 58 percent of the total income tax burden they paid twenty years ago.

To put this in perspective, the top 1 percent is comprised of just 1.4 million taxpayers and they pay a larger share of the income tax burden now than the bottom 134 million taxpayers combined.

Some in Washington say the tax system is still not progressive enough. However, the recent IRS data bolsters the findings of an OECD study released last year showing that the U.S.—not France or Sweden—has the most progressive income tax system among OECD nations. We rely more heavily on the top 10 percent of taxpayers than does any nation and our poor people have the lowest tax burden of those in any nation.

We are definitely overdue for some honesty in the debate over the progressivity of the nation's tax burden before lawmakers enact any new taxes to pay for expanded health care.

Read more and see charts

The latest Treasury brainstorm will retard a banking recovery

More on the adventures of little Timmy Geithner:

Just when you think the political class may have learned something in months of trying to fix the banking system, the ghost of Hank Paulson returns to haunt the Treasury. The latest Beltway blunder -- and it would be a big one -- is the Obama Administration's weekend news leak that it may insist on converting its preferred shares in some of the nation's largest banks into common equity.

See Timmy run: A Backdoor Nationalization

Obama might as well have put up a "Mission Accomplished" sign

While publicly identifying with the nation's have-nots, the Obama administration has been cultivating the Beltway social elite behind the scenes.

Earlier this year, the Obama administration invited top editors of three of Washington's local luxury lifestyle magazines — Capitol File, DC magazine and Washington Life — to a meeting where they discussed, among other things, how President Obama and first lady Michelle Obama can embrace Washington's glittery social scene.

So, while the Obamas have been partying their asses off (well, not COMPLETELY off it appears...Michelle...) which leaves Obama too tired to perform his duties (and in the middle of a global economic meltdown) they are busying themselves with (on our tax dollar) "identifying tastemakers" and trying to push the vibrancy of Washington night life to the forefront.

A crisis is a terrible thing to waste

What Are They Buying?" by Thomas Sowell

What is really going on in Washginton?

No matter how many times President Barack Obama tells us that these "extraordinary times" call for "swift action," the kind of economic policies he is promoting take effect very slowly, no matter how quickly the legislation is rushed through Congress. It is the old Army game of hurry up and wait.

If the Beltway politicians aren't really trying to solve this crisis as quickly as they could, what are they trying to do?

One important clue may be a recent statement by President Obama's chief of staff, Rahm Emmanuel, that "A crisis is a terrible thing to waste."

This is the kind of cynical revelation that sometimes slips out, despite all the political pieties and spin. Crises have long been seen as great opportunities to expand the federal government's power while the people are too scared to object and before any opposition can get organized.

That is why there is such haste to do things that will take effect slowly.

What are the Beltway politicians buying with all the hundreds of billions of dollars they are spending? They are buying what politicians are most interested in-- power.

Be careful what you wish for:

This administration and Congress are now in a position to do what Franklin D. Roosevelt did during the Great Depression of the 1930s-- use a crisis of the times to create new institutions that will last for generations.

To this day, we are still subsidizing millionaires in agriculture because farmers were having a tough time in the 1930s. We have the Federal National Mortgage Association ("Fannie Mae") taking reckless chances in the housing market that have blown up in our faces today, because FDR decided to create a new federal housing agency in 1938.

Who knows what bright ideas this administration will turn into permanent institutions for our children and grandchildren to try to cope with?