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“With nation distracted, Congress robs taxpayers twice”

Washington Examiner:

While the nation was distracted with the Supreme Court’s Obamacare ruling last week, Congress passed a $96 billion double-bailout that only guarantees future bailouts in the years to come.

On Friday afternoon, within half an hour of one another, both the House and Senate voted to reauthorize the nation’s federal transportation funding programs. They then immediately fled town, which is understandable because the legislation is atrocious.

For starters, the bill spends $6 billion bailing out college students by extending the artificially low 3.4 percent interest rate on some subsidized college student loans. The change will save the average student only $7 per month, and the rates will do nothing to drive down the cost of college.

The bill also reauthorizes the Highway Trust Fund, but at higher levels of spending than the related gas tax that is supposed to fund it. To pay the difference, members of Congress did not raise the gas tax — instead, they chose to raid private pensions and flood insurance policies.

Here is how it works: First, they reduced the minimum amount that private corporations must invest in their employees’ defined-benefit pension plans. These contributions are tax deductible, so lower pension contributions will lead to higher corporate profits, which in turn translate to more government revenue. It also means more of a chance that the federal government is going to have to bail these companies out when they cannot meet their pension obligations down the road.

Second, Congress increased the premiums that these employers must pay to the Pension Benefit Guaranty Corporation — the federal entity that bails out private defined-benefit pensions when they fail. Instead of using the higher premiums to improve PBGC’s bottom line, Congress used these new funds to pay for the highway bill and the lower student loan rates.

Finally, Congress increased premiums to the National Flood Insurance Program. And instead of using the money to solidify the flood program, Congress used it — you guessed it — to pay for the highway bill and student loan bailouts instead.

[…]

The saddest part of the whole spectacle was how bipartisan this fleecing of American taxpayers was. In the House, 373 members voted for the bill, whereas only 52 (all Republicans) opposed it. In the Senate, the vote was 74 in favor to 19 against.

Shell games and Ponzi schemes and twilight’s last gleamings.

My advice to all of you on this, our nation’s birthday, is to drink heavily.

 

9 Replies to ““With nation distracted, Congress robs taxpayers twice””

  1. Hrothgar says:

    You have to admit, the lying weaselly Congress-bastards are creative and without shame!

    In lieu of terms limits, how about an amendment that no bill can have a higher word count than the Constitution. Oh, and remember that pre-vote 72 hour posting proposal? I certainly do.

    Happy Birthday America.

    While you’re at it, re-read the Constitution and see what Inalienable Rights you think you still have.

  2. McGehee says:

    Happy Independence Day, everybody.

  3. Hrothgar says:

    “Inalienable” should be “Unalienable”

    Apologies to T Jefferson!

  4. JHoward says:

    You have to admit, the lying weaselly Congress-bastards are creative and without shame!

    A technicality, but we have to admit that they are voting precisely how they, as the craven whores they are, are instructed to vote. My congressliar polls us constantly. There is no backbone or integrity there.

    They are profoundly representative and we got the government we deserved, all our talk in polite circles about liberty and constitutionality and balanced budgets and personal sovereignty notwithstanding. We’re going to bleed this sucker dry before we relent.

    Especially regarding education and healthcare, flagrant shams on meaning as they must surely be whenever dragged through the putrid cesspool that is federal legislature.

  5. SDN says:

    My advice to all of you on this, our nation’s birthday, is to drink heavily.

    “Be wary of strong drink. It can cause you to shoot at tax collectors — and miss.” — Lazarus Long

  6. SDN says:

    JHoward, all I have to say to that report is that George Washington was never referred to as “The Father of His Country” in Lord Cornwallis’ officers mess.

  7. batboy says:

    How about moving your 401(k) money offshore?

    http://sovereign-investor.com/2010/09/21/why-im-taking-my-401k-offshore/

    I’m considering it. But then, I have an EU passport, so I also have the option of fleeing, should things really turn pear-shaped here.

    I think the Eurozone is going to break up, sooner rather than later, and Europe, like an alcoholic hitting bottom, will start to recover just as the worst of The Won hits.

    This likely sounds terribly unpatriotic, but when my national government is nothing more than a nomenklatura, out for its own good alone, surely self-preservation dictates such thoughts and actions?

  8. Ernst Schreiber says:

    Drink Heavily /
    Soudn like good avcidce1!!1

Comments are closed.