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Dover Residents, it is time for Jobs, change, and David Anderson 12 April, 2011

Posted by David Anderson in Dover, Jobs, Local.
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In this economy, jobs are disappearing and our budgets are tight. This is true of families, businesses, and even governments. We face the challenge of generation. I believe we are up to it. We just need faith, vision, an action plan, and a willingness to work with each other. It is sounds simpler than it is, granted, but we are Americans. We can handle it. My experience serving this great country assures me of this fact.

I am in consultation with an economist to find some innovative ideas to make our city a better place to do business, but it does not take a PH. D in economics to see what we are doing needs to change. Unemployment continued to rise in Dover even when the national trend stabilized. We are now above the national average. My goal over the next year is to make Dover open for business.

I want to turn this city into a viable enterprise zone. I want to see us take advantage of programs that only a city or locality can administer such as the export grants to businesses through the SBA. I would like to see the community reinvestment money mandated by the Federal government from the banks stay here instead of flowing to Wilmington by setting up our own reinvestment fund. I want to see us streamline regulations and paperwork. I want to see us expand our tax credits for businesses that expand or locate here so we stay competitive with other localities in the state.

I am concerned that we are wasting your money instead of putting it in our community. One example is our water system. A top priority needs to be updating the well heads and repairing the leaks. I still believe we should have lined the pipes for a fraction of the cost and time of replacement. Our declining infrastructure is hurting our job creation. When our water system can only operate at 80% design capacity, it keeps industry from locating here. The infiltration in our waste water system or runoff is costing us $1,000,000 a year to pay the county for water that shouldn’t have been in the system.

That is $1,000,000 not helping our community. It could be paying for community police, youth programs, or repairing our streets. Maybe it could be helping us bring jobs here. Instead it is literally being flushed down the sewer.

This has to stop. Please help me stop it next Tuesday April 19th by honoring me with your vote for city council.

Sincerely,

David Anderson

P. S. If you would like to help, go to davidandersonforcouncil.com and contribute or volunteer.

Taxes Matter 1 November, 2009

Posted by David Anderson in Tax Hikes.
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TABOR is back and will be worth watching in two liberal leaning states. Maine and Washington are poised to pass Tax and Spending measures which limit spending growth to population plus inflation. Those will be as interesting and more of a national indicator than even the Governor’s races which have personalities and other issues involved.

NJ, Chris Christie will likely edge out a victory because of fiscal and economic troubles with the state and quite frankly concern that the Democrats will try to impose gay marriage. The reason that Christie may keep Daggett at bay is the marriage issue. Christie would have this race in a runaway except that he refused to discuss specifics about his tax plan. When Daggett came out with a real plan no matter how imperfect, it sent his numbers soaring. Why? Taxes matter.

In Virginia, Craig Deeds killed his campaign this summer when his transportation plan opened him up to tax increase charges. McDonnell has a consistent record of being a full spectrum conservative. The choice was clear.

I think the victory one Tuesday will be a Tea Party victory. It will be one for the restraint of government. Democrats will ignore it at their peril. Republicans must embrace it or the Hoffman and Daggett phenomena will be their peril.

Economy better than He dreamed–really 11 October, 2009

Posted by stoptaxing in Economic Policy, Jobs.
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Vice President Biden must have scaled back his dreams. He says the economic stimulus package worked beyond his wildest dreams. I guess the 15 million Americans without work have bigger dreams like paying the bills and keeping a roof over their head. The VP does not need to worry. He has a 4 year contract that we hope not to renew.

Our Senator Making Us Proud–Not quite 11 October, 2009

Posted by stoptaxing in Healthcare.
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Update Senator Carper to be on Fox News Channel’s Neil Cavuto at 4 P.M Today (Oct. 8 2009) to discuss these comments. Keep up the contacts to his office.

It is great that we have a Senator who is not capable of understanding legislation. At least he smiles and shakes hands well. Maybe that is why he has not introduced much despite all of the problems we face. I think that we should have at least one person in the Senate for Delaware who has a history of understanding issues. We actually have a candidate who served in a think tank. Back to the video.

What interested me is that he said he would probably read the plain English version. He wouldn’t even promise that he would read it. Maybe that was a slip of the tongue–I hope. Who needs to read a bill that would transform the lives of every American anyway. The staff said it is okay. Is that not why you elected the staff? I want to thank Tennessee for bringing the issue to our attention. A reader submitted the actual video link for all to see.

Small Business still on the outside of health reform 1 October, 2009

Posted by David Anderson in Healthcare, Jobs.
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The Baucus draft is better but not even close to helping small business.  It discourages wage increases for American workers and discourages business hiring.  It raises the cost of health insurance. It does give some tax credits to help businesses purchase coverage and provide coops for businesses with fewer than 100 employees. It seems to me that we should start over. Singapore has its 50th anniversary of the best health care in the world this week. It is market based and founded in medisave accounts.

Is it time for a real stimulus bill? 27 August, 2009

Posted by David Anderson in Economic Policy, Energy, Jobs.
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After the fiasco in February, the term stimulus bill is a dirty word. Yet, the recent CBO projections sustained high unemployment and larger deficits makes me think that a proper stimulus bill would be an investment. The projected deficit is up by two million million (trillion) dollars before new programs are taken into account because of poor economic performance. The real unemployment rate is said to be 16%. Instead of speaking about raising energy taxes to pay for global warming concerns, income taxes to pay for health reform, income taxes on the wealthy to pay for whatever, payroll taxes on workers to pay for health reform, and business taxes to pay for an aggressive retread liberal agenda, why not first go for economic stimulus?

I want real economic stimulus not the sham of Christmas, Hanukkah, Kwanzaa, and every Special interest lobbyist birthday rolled into one bill. We know what works. Why don’t we do it?

First let’s stop holding up the oil drilling permits authorized under the Bush Administration and mandated by Congress. It will help create downward pressure on future oil prices and create well paying jobs. It will actually bring money into the government instead of spending money.

Let’s do the same for wind farms. While we are at it, let’s create energy enterprise zones where the manufacture of alternative energy qualifies for investment tax credits. Let’s give a huge reward for the better battery.

Second, Let’s continue the payroll tax credit for another year and make it for both the employee and the employer so that the cost of employment is cheaper.

Third, let’s try cash for appliances without the bureaucracy. Energy efficient appliances would help lower energy prices and stimulate the economy. The Cash for Clunkers program was a great idea to move people to more energy efficient cars, but it was very poor in execution. I would love to see the program done again, but if it is announced too early that would depress car purchases. It is best to let it go.

Fourth, ask the Fed to stop the payment of interest on excess reserves. It is stopping the free flow of money and dampening the vaunted multiplier effect.

Fifth, Just eliminate the income tax, payroll tax, and corporate income tax and implement the FAIR Tax. I know that won’t happen with this Congress. In spite of scores of economists saying it would be the best move possible.

Sixth, barring number 5, reinstate the Reagan era investment tax credit and give small and medium business accelerated depreciation options.

Seventh, Make December of 2009 a tax holiday from personal income and payroll taxes.

Eighth, Give huge prizes for the creation of the Better energy storage system, increasing the efficiency of solar panels to 18%, a more energy efficient way to extract shale oil, and a better nuclear waste recycling system.

Ninth, Extend the first time homebuyers tax credit for 5 years.

Tenth, exempt the first 2% of an interest rate in bonds or CD’s from income taxes.

Eleventh, Declare any county with unemployment and underemployment over 10% an enterprise zone where local businesses that expand will get a 5 year investment tax credit in addition to the general one proposed.

Finally, Break the foreclosure cycle by funding state programs that help people by loaning them money interest free to catch up on mortgage payments once they find a new job. Give the banks more incentive to negotiate by reforming the bankruptcy laws to what they were before Jimmy Carter exempted mortgage terms from being changed. Give the banks tax credits to make up for loses in the voluntary modifications.

These proposals would cost a lot less than anything discussed and could in fact be done with the 250 billion set aside for bank relief that the President is thinking of relinquishing. If you want sustained economic growth, you have to build a supply side strategy into the mix. The current stimulus is based solely on the demand side. You have to do both. It is like trying to fly flapping one wing.

Balance, Cut, and Save 26 August, 2009

Posted by David Anderson in Action Item, Budget, Tax Hikes.
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Here is the newest and soon to be hottest petition on the Internet from Governor Mike Huckabee.

The Constitution starts with “WE THE PEOPLE” and it’s time you start remembering that.

American families on a daily basis make hard choices in order to live within their means.

Why can’t Congress and our federal government do the same?

I urge you to work towards balancing the budget.

I urge you to cut our taxes so families can save more and to cut the wasteful spending that is mortgaging the future of generations of Americans and severely limiting their ability to prosper.

Instead of your own re-election, put families in your district and state first.

I am signing this simple: “BALANCE, CUT, SAVE” petition because I believe it is these three things that you should remember when making decisions about new spending, taxes and health care in the weeks ahead.

If you stick to these guiding lights, you can’t go wrong.

Mr. President and members of Congress, I’ve kept it simple for you:

BALANCE, CUT, SAVE.

That’s what should guide you in your decisions in the week’s ahead. My family can’t afford the decisions you are making on my behalf so I am signing this petition to remind you of what is important:

My Family, My Country And My Freedom.

A Few Questions for Ben Bernanke 25 August, 2009

Posted by David Anderson in Economic Policy.
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Chairman of the Federal Reserve Ben Bernanke has been nominated for a second term. He has a 99% chance of confirmation allowing for a heart attack or complete collapse of the economy. That does not mean he should not be asked to justify a few policies.

The Federal Reserve is paying interest on excess reserves which discourages lending. Then it acts in extraordinary ways to try to pump money into the system such as by purchasing commercial credit. If it went back to not paying interest on excess reserves, the market would correct itself. Why are taxpayers borrowing money at interest to loan to the banks which then do not have to put that money into circulation because they can have a risk free investment where they get paid interest to keep excess reserves (beyond what is required to insure solvency) in the proverbial vault?

It would be nice for him to justify all of the new regulatory powers he requests step by step. The Fed is already the most powerful economic institution in America. Giving it unchecked power directly over the non-banking part of our economy gives a private stock holding corporation direct regulatory enforcement powers.

Who is more likely to be right the CBO or the OMB when it comes to unemployment numbers? The CBO is projecting an average of 9.8% unemployment for next year.

Finally what level of disclosure should the Fed give to the public. There is a move to audit the Federal Reserve. The Chairman opposes it. Fine, what is his counter proposal. We are being asked to give unprecedented powers to a privately held corporation that we don’t even know who all the stockholders are let alone have ever seen its books. Can we at least see the tax money that goes in and leave the rest private?

The good news for the Chairman is that I am not on any Senate committees. It is not that he can not easily answer these questions. It is that he does not desire to answer them. I hope at least one person gives him the opportunity.

Kennedy and Dodd Health Bill Attacks Wages 12 August, 2009

Posted by David Anderson in Economic Policy, Healthcare, Jobs.
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The Senate HELP committee’s version of Health Care Reform is billed “The Affordable Health Choices Act”. It had better be affordable because if it is implemented it may provide a disincentive to many employers paying higher wages. It gives credits to small employers to help with a mandate of coverage. The problem is that it only covers the micro business side. If you hire 50 people instead of 49 or if you have a lot of high flying sales people and well paid mechanics, you may not want to give a raise to that hard working receptionist. The incentive would be to keep some people with low pay to get the money. I didn’t think that Senate Democrats were so angry at the bottom 50%. Weren’t they suppose help the forgotten middle class? Yet they wonder why we get testy.

Fromthe Kaiser Family Foundation.

To qualify for the credit, employers must have fewer than 50 full-time
employees, pay an average wage of less than $50,000, and must pay at
least 60% of employee health expenses. The credit is equal to $1,000
for each employee with single coverage and $2,000 for each employee
with family coverage, adjusted for firm size (phasing out as firm size
increases) and number of months of coverage provided. Bonus payments
are given for each additional 10% of employee health expenses above
60% paid by the employer. Employers may not receive the credit for more
than three consecutive years. Self-employed individuals who do not
receive premium credits for purchasing coverage through the Gateway
are eligible for the credit.

Require employers to offer health coverage to their employees and
contribute at least 60% of the premium cost or pay $750 for each
uninsured full-time employee and $375 for each uninsured part-time
employee who is not offered coverage. For employers subject to the
assessment, the first 25 workers are exempted.

Levin and a New Isolationism 11 August, 2009

Posted by David Anderson in Fair Tax, federal, President Obama, Tax Hikes.
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Some in the administration and the Senate would put America behind a wall of taxation is the new isolationism. The excuse is trying to prevent people from being able to hide income off shore. The truth is the largest forms of tax evasion are local. What this is doing is locking American investors out of the hottest economies in the world. The Levin bill has the backing of the administration which is hungry for new revenue streams.

While it is advertised as punishing countries that use banking laws to shield anonymous investors. Its sweeping language would punish countries that don’t tax dividends and capital gains like Hong Kong and Singapore. It would be a form of economic imperialism. They are responding by threatening to ban U. S. investment. The damage done to their economic system by losing investment of Americans would be far smaller than the damage of hurting both local and global investment by adopting Democratic tax policy.

If other nations follow suit this could be as damaging as Smoot Harwley Act. If we are to ever have a sustained economic recovery, it has to be based upon sound policy not failed ones.

America needs fundamental tax reform designed by clear thinking, real world, economists. We need policies which encourage American production not flight of production. Levin is right that it starts with the tax code. He couldn’t be more wrong about the solution. Maybe would should take a page from the growing economies instead of closing the book on learning.