When are Americans going to stop suffering the politicians' talk in favor of indicting their walk? Obama's and Bush's administrations, in tandem with Congress, have given all new meaning to the term "passing the buck." Each of these political entities has managed to take not a scintilla of responsibility for any of it. And there is no end in sight to the cycle of spending and taxing.

Our elected officials continue to vote up legislation that allocates trillions in subsidies, in what amounts to pure pork disguised as bailouts for unworthy enterprises. What enrages most is the blame game that continues between the political parties' leadership, including the mainstream media according to its party affiliation, with the full participation of the congressmen themselves, who transparently feign outrage over what Wall Street is still getting away with. Meanwhile, these largely incompetent legislators consistently try to disassociate themselves with the outrageous lack of accountability and transparency.

Whither Reform?

Both Illinois Governor Pat Quinn and House Speaker Michael Madigan have said that they'd like to see Illinois politics and government cleaned up before any deficit-closing tax increases are debated.

It's doubtful, of course, that the two men are talking about the same sort of cleanup - with Madigan coming from the old school and Quinn being the reformer for several decades.

Madigan mentioned two targets for reform the other day when talking to public television: the pension systems and the state's Purchasing Act. He didn't elaborate much. A spokesperson said ideas are currently being developed, but Madigan does want some of the state's purchasing reforms from a few years ago applied to the state pension systems.

Quinn, meanwhile, has pushed binding public referenda, campaign-contribution limits, and a whole host of other ideas that are never very popular in Springfield. Good-government groups and some newspapers have made contribution caps their top priority, partly because disgraced former Governor Rod Blagojevich's campaign funding apparatus was so obscene.

So, where does it go from here?

Mike GronstalThe Iowa legislature's budget subcommittees worked this week to craft budgets for various areas of state government that would cut an average of 12 percent after state revenue estimates were lowered by $269.9 million next fiscal year, making layoffs almost a certainty.

Iowa Senate Majority Leader Mike Gronstal called the decline in state revenues "the worst I've ever seen" in 27 years in the legislature and said everything is at risk of being cut.

"I wouldn't say there's anything off the table," said Gronstal (D-Council Bluffs). "These are incredibly challenging times. ... We will do, probably in some cases, across-the-board stuff. We will also make selective cuts."

The River Cities' Reader asked Iowa state legislators from Scott County to answer two questions related to the national popular vote and the deductibility of federal income-tax payments. The deadline to respond was five days after the questions were sent out. All four Republicans responded. Of the five Democrats, only Representative Elesha Gayman responded.

If you paid attention to the Davenport Promise proposal, the arguments in favor of a 1-percent sales tax for school construction in Rock Island County will sound familiar: This is the way we can be competitive with surrounding areas; this is the way to attract and retain residents; this is what we need for the future workforce.

There are three key differences, however: The Rock Island County proposal - which is on the April 7 ballot - is easy to explain and grasp; the vote will be held in a Democratic and union stronghold; and it involves a new tax, rather than shifting an existing one.

The first two factors should work in favor of the referendum, and it will almost certainly get more support than the Promise, which only garnered 39 percent of the vote on March 3.

But the sour economy hasn't put voters in a giving mood. The Illinois General Assembly in 2007 allowed counties to seek a sales-tax increase for school construction; eight of 10 referenda have failed.

The leaders of the Rock Island County Kids First organization - the primary force pushing for the sales-tax increase - said they are concerned about the Promise results, but they also highlighted the differences.

Pat QuinnThe biggest problem with passing Governor Pat Quinn's tax-hike and budget proposals is not that almost every Statehouse interest group opposes them.

The Illinois Federation of Teachers, for instance, sent out a statement before Quinn had even finished his budget address to say that any state legislator who votes for the governor's proposed "pension cuts" would automatically lose the union's endorsement.

State workers are spitting mad about paying more into the pension plan and being forced to take unpaid days off.

Business groups are beside themselves about the tax hikes.

Mayors hate the idea that they won't get their usual 10-percent slice of Quinn's proposed income-tax increase.

These are very serious, almost insurmountable obstacles, of course. But they're not the worst.

The biggest hurdle, by far, is that the governor focused on a problem that he alone wants to deal with, but that nobody else really cares about.

The governor, you already know, wants to raise the state's personal income tax rate from 3 percent to 4.5 percent, but also triple the $2,000 personal exemption so that almost 5 million people will get a tax cut or pay no extra taxes. Quinn claims this is about "tax fairness" as much as it is about raising new money to close the state's $11.5-billion budget deficit.

But, seriously, when was the last time you heard anybody complain about the Illinois income tax?

At just 3 percent, Illinois has the lowest flat tax in the nation. Quinn has pushed this tax-fairness idea for decades, but almost nobody else has. Tripling the personal exemption is just not something that any legislator has ever cared much about.

Since the governor's tax proposal has no real constituency within the General Assembly, he starts out with almost no legislative allies.

Just about every member of the Illinois General Assembly has fervently campaigned to reduce the property-tax burden and increase spending for schools. Also, suburban Cook County and Chicago legislators are hearing loud and constant screams of anger from their voters about their region's super-high sales tax.

There are some very angry everyday people demanding a solution to these festering problems. Yet Quinn's budget and tax-hike proposals do nothing about any of them.

In fact, the governor's proposals may be making the political situation for incumbent legislators far worse than they would be with a more "normal" tax hike and budget fix.

For one, the governor has proposed a relatively tiny education-spending increase. That pretty much guarantees some local school districts, which are also experiencing serious problems in this economy, will have to raise property taxes even higher.

Local governments are strapped in this economy as well and are dying for money. Without help from the state via their usual share of the income-tax hike, they may also have to raise sales or property taxes.

Quinn wants to expand the state sales tax to cover items such as grooming and hygiene products, sweetened tea, and coffee drinks that are currently exempted from the full sales tax rate. That's not really a big thing, but in this sort of environment it could make for big headlines.

And, not surprisingly, legislators aren't particularly thrilled with voting for Quinn's 50-percent income-tax hike and still having to vote for well over a billion dollars in state budget cuts. Quinn's tax-exemption reform proposal took a tax hike that could've raised almost $6 billion down to only about $2.5 billion.

The governor said on Friday that he hoped he could convince the business lobby to support his tax hike by showing them how he's forcing teachers and state workers to pay more into the pension systems. But it's the height of folly to assume that the business lobby will ever get behind a tax hike.

The only groups that can be counted on to reliably support tax hikes are the very groups that Quinn has gone out of his way to whack. Public-school teachers, state workers, and people such as Chicago Mayor Richard M. Daley are absolutely key, and all of them are firmly in the "no" category.

I still think there will be a state tax increase in our near future. I just don't think yet that it'll be this one. Quinn has a horrific fight ahead of him.

Rich Miller also publishes Capitol Fax (a daily political newsletter) and TheCapitolFaxBlog.com.

More budget cuts are on the way in Iowa after the three-member Revenue Estimating Conference (REC) on Friday lowered estimates of state revenues by $129.7 million this fiscal year and $269.9 million next fiscal year.

"The economy continues to falter," said Holly Lyons, director of the Legislative Services Agency's fiscal services division. "We're witnessing more layoffs. We're witnessing reduced hours and furloughs. We may not even be halfway through this recession."

The lowered revenue estimates, combined with the $700-million budget gap the state already had for Fiscal Year 2010, make for a $1.1-billion gap between expenses and revenues over the next 15 months, according to Representative Scott Raecker (R-Urbandale), ranking member of the House Appropriations Committee.

John Maynard KeynesThe British economist John Maynard Keynes (1883-1946) turns out to have been something of a prophet. He once wrote that "practical men," as opposed to theoreticians, "are usually the slaves of some defunct economist." Ironically, the defunct economist who is influencing Barack Obama, his advisers, and his supporters in Washington is Keynes himself.

Like a ghostly presence, Keynes' ideas are hovering over us. The very notion of a government "stimulus" for the economy originated in Keynes' 1936 book The General Theory of Employment, Interest, & Money. In it, Keynes spelled out his theory that government could offset the economic ups and downs of the business cycle with "contracyclical" policies -- that is, by running surpluses when economic activity is vibrant and deficits during slowdowns.

Listening to the congressional debates over pending legislation is almost surreal in its mind-numbing hypocrisy. Both Republicans and Democrats, whether in the Senate or the House, have the supreme audacity to stand at the podium, one after another, and blame each other for a host of earmarks, excessive spending, and lack of oversight, while simultaneously enacting legislation that has countless earmarks, unprecedented excessive spending, and a complete lack of oversight because any regulatory language has no remedy attached.

Imagine for a moment that somewhere in the middle of Texas there was a large foreign military base, say Chinese or Russian. Imagine that thousands of armed foreign troops were constantly patrolling American streets in military vehicles. Imagine they were here under the auspices of "keeping us safe" or "promoting democracy" or "protecting their strategic interests."

Congressman Ron Paul - 14th District, Texas
Imagine that they operated outside of US law, and that the Constitution did not apply to them. Imagine that every now and then they made mistakes or acted on bad information and accidentally killed or terrorized innocent Americans, including women and children, most of the time with little to no repercussions or consequences. Imagine that they set up check points on our soil and routinely searched and ransacked entire neighborhoods of homes. Imagine if Americans were fearful of these foreign troops, and overwhelmingly thought America would be better off without their presence.

Imagine if some Americans were so angry about them being in Texas that they actually joined together to fight them off, in defense of our soil and sovereignty, because leadership in government refused or were unable to do so. Imagine that those Americans were labeled terrorists or insurgents for their defensive actions, and routinely killed, or captured and tortured by the foreign troops on our land. Imagine that the occupiers' attitude was that if they just killed enough Americans, the resistance would stop, but instead, for every American killed, ten more would take up arms against them, resulting in perpetual bloodshed. Imagine if most of the citizens of the foreign land also wanted these troops to return home. Imagine if they elected a leader who promised to bring them home and put an end to this horror.

Imagine if that leader changed his mind once he took office.

The reality is that our military presence on foreign soil is as offensive to the people that live there as armed Chinese troops would be if they were stationed in Texas. We would not stand for it here, but we have had a globe straddling empire and a very intrusive foreign policy for decades that incites a lot of hatred and resentment towards us.

According to our own CIA, our meddling in the Middle East was the prime motivation for the horrific attacks on 9/11. But instead of re-evaluating our foreign policy, we have simply escalated it. We had a right to go after those responsible for 9/11, to be sure, but why do so many Americans feel as if we have a right to a military presence in some 160 countries when we wouldn't stand for even one foreign base on our soil, for any reason? These are not embassies, mind you, these are military installations. The new administration is not materially changing anything about this. Shuffling troops around and playing with semantics does not accomplish the goals of the American people, who simply want our men and women to come home. 50,000 troops left behind in Iraq is not conducive to peace any more than 50,000 Russian soldiers would be in the United States.

Shutting down military bases and ceasing to deal with other nations with threats and violence is not isolationism. It is the opposite. Opening ourselves up to friendship, honest trade and diplomacy is the foreign policy of peace and prosperity. It is the only foreign policy that will not bankrupt us in short order, as our current actions most definitely will. I share the disappointment of the American people in the foreign policy rhetoric coming from the administration. The sad thing is, our foreign policy WILL change eventually, as Rome's did, when all budgetary and monetary tricks to fund it are exhausted.

Orginally published March 9, 2009 at Congressman Ron Paul's House website blog entitled Texas Straight Talk.

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