Looking Forward And Protecting Your Gains

Yesterday The Washington Examiner posted an article about some of Representative Nancy Pelosi’s plans should she become Speaker of the House. Say what you will about the lady, she wants to protect the Democrat party from themselves.

The article reports:

Democratic leader Rep. Nancy Pelosi, D-Calif., in the midst of fending off a coup to derail her return to the House speakership, is proposing a series of rules changes that could kneecap liberals from pursuing a bold agenda in the new Congress.

Among the many proposed rules changes the incoming majority plans to make in a draft document obtained by the Washington Post, is one backed by Pelosi and Rep. Richard Neal, D-Mass., ranking member of the House Ways and Means Committee, that would “[r]equire a three-fifths supermajority to raise individual income taxes on the lowest-earning 80% of taxpayers.”

The proposed changes also hint at restoring some sort of “reasonable rule” aimed at making sure legislation is paid for, though there isn’t much elaboration.

Below is a chart from Pew Research Center illustrating who pays taxes. The chart is from 2016:

Raising taxes on the lowest 80 percent of taxpayers would theoretically even the tax burden, but it would be another blow against the Middle Class. Keep in mind that one of the signs of a country with a healthy economy is a thriving Middle Class. I would like to see all Americans pay some income tax–everyone needs ‘skin in the game’, but simply raising taxes on the lower 80 percent of Americans makes no sense–it will only slow down the economy and not raise revenue.

The article concludes:

Now, I suppose Democrats technically would have some wiggle room if the new rule were adopted. Because the proposed rule specifies “income taxes” it leaves an opening to raise money in other ways — payroll taxes, VAT taxes, and so on. But politically, that’s really a nonstarter. If Democrats make the 80 percent pledge and end up raising taxes on the middle class, Republicans will be able to effectively campaign against it as a broken promise, and any Democratic candidate trying to claim, “Well, we said income tax, but not payroll tax,” will be scorched.

I mean, I didn’t expect Pelosi to suddenly go full speed ahead with the Sanders agenda, but I also wouldn’t have predicted that she would have cut liberals down right out of the gate.

Representative Pelosi is attempting to protect her party’s chances in the 2020 presidential election. As much as I don’t wish her success, her fellow party members would do well to pay attention to what she is doing–she is trying to protect the future of the party. Older Americans are the majority of the voting population, and generally speaking, they do not support socialism–they have seen too much.

Eroding The Foundations Of Prosperity

The most important foundation of prosperity in America is the two-parent family. Unfortunately, the number of two-parent families has decreased in recent years.

This is a chart from the Pew Research Center posted on December 17, 2015:

On April 10, 2014, The Washington Post reported:

It’s clear in America that family structure and poverty are intertwined: Nearly a third of households headed by single women live below the poverty line. And just six percent of families led by married couples are in the official ranks of the poor. Poverty, meanwhile, touches an astounding 45 percent of children who live without a father.

Recent research by Raj Chetty, Nathaniel Hendron, Patrick Kline, Emmanuel Saez and Nicholas Turner also found that intergenerational income mobility was lower in metropolitan areas with a larger share of single mothers, a bold-faced finding that touched off a new round of public debate over what this relationship means.

But there is another troubling fact regarding the future prosperity of America. On November 2, Bloomberg reported:

Nathan Butcher is 25 and, like many men his age, he isn’t working.

Weary of long days earning minimum wage, he quit his job in a pizzeria in June. He wants new employment but won’t take a gig he’ll hate. So for now, the Pittsburgh native and father to young children is living with his mother and training to become an emergency medical technician, hoping to get on the ladder toward a better life.

Ten years after the Great Recession, 25- to 34-year-old men are lagging in the workforce more than any other age and gender demographic. About 500,000 more would be punching the clock today had their employment rate returned to pre-downturn levels. Many, like Butcher, say they’re in training. Others report disability. All are missing out on a hot labor market and crucial years on the job, ones traditionally filled with the promotions and raises that build the foundation for a career.

The article at Bloomberg includes the following chart:

In October 2015, TIME magazine reported:

For the first time since the Census Bureau began collecting data on higher education attainment, women are more likely to have a bachelor’s degree than men.

Last year, 29.9% of men had a bachelor’s degree, while 30.2% of women did, the bureau reports. A decade prior, in 2005, 28.5% of men had bachelor’s degree, while only 26% of women did.

Young women are driving the change. In the 25-34 age group, 37.5% of women have a bachelor’s degree or higher, while only 29.5% of men do. (Rates of college attainment for men and women in this age group are increasing roughly equally.) But for the over-65 crowd, only 20.3% of women have such degrees, compared to 30.6% of men.

Historically men have been the main providers for their families. Young men have been encouraged to get a good job, get married, and have a family. These ideals have been undermined in recent years by the cultural war against traditional families, traditional roles of men and women, and family values. What has been overlooked by the people fighting traditional values is the role traditional values play in the prosperity of America. The report by Bloomberg is a further indication of the overall decline of our society and the future decline in prosperity.

The Economic Consequences Of Legal And Illegal Immigration

On January 23rd, PEW Research posted an article about the flow of money worldwide. The article noted that in 2016,  $28,126,000,000 was sent from America to Mexico by Mexicans living in the United States.

An article posted at the Colorado Alliance for Immigration Reform explains how this impacts America.

The article reports:

$60 billion dollars are earned by illegal aliens in the U.S. each year. One of Mexico’s largest revenue streams (after exports and oil sales) consists of money sent home by legal immigrants and illegal aliens working in the U.S. Economists say this will help Mexico reduce its $17.8 billion defecit and may bolster the peso. $10 billion dollars (as of 2003) are sent back to Mexico annually, according to the Pew Hispanic Center, reported in an Associated Press article, up $800 million from the previous year. ($9 billion dollars were previously sent back annually, according to a September 25, 2002 NPR report). That figure equals what Mexico earns annually from tourism. This is a massive transfer of wealth from America – essentially from America’s displaced working poor – to Mexico.

A May 28, 2004 study by Bendixen & Associates6 found that legal and illegal immigrants send a total of $30 billion to their home countries on an annual basis. Mexico receives $13.3 billion a year. The largest amount in remittances ($9.6 billion) is sent from California, followed by New York ($3.6 billion), Texas ($3.2 billion) and Florida ($2.5 billion). Of those surveyed by the study, 24% were Latin American-born U.S. citizens, 39% were legal residents, and 32% were illegal aliens. Sixty-one per cent of those surveyed send remittances overseas at least once a month. A typical remittance is between $150 and $250.

This is money earned in the United States, but not added to the United States economy–it is money added to the Mexican economy. It should be noted that these remittances include money earned by both legal and illegal immigrants. In the case of the illegal immigrants, they are not paying taxes to America and often are taking advantage of federal assistance programs (I know illegal aliens are not supposed to be able to take advantage of federal assistance programs, but I personally know of instances where they have been able to do so easily).

It is time to take control of our borders. We need to return to a merit-based immigration system and return to the idea of allowing people to come to America who want to be part of America. Our Constitution is the foundation of our law. If you want to live under something other than the U.S. Constitution,  please go elsewhere. It is time that we brought people in who will add to the general well being of America. That is the only way to ensure the future of our country for our children.