Senator Clinton, What are You Thinking?
Senator Clinton, what are you thinking? In the "American Dream Initiative", you propose “providing a Baby Bond to each of the 4 million children born in America each year.” Are these American children, or are you really referring to all children born in America each year? Don’t illegal Mexican immigrants already have enough incentive to have children in the U.S.? Teach our children to fish, or just buy them off with another $500 (really $1,000, if you include the additional payment proposed at age 10) helping from the welfare buffet? We are supposed to be rewarding independence and resourcefulness, not setting the expectation that the government’s job is to hand out (other people’s) money. Where will this additional $4,000,000,000 come from every year? Just more of the same contrast between the libs and conservatives; depend on the government to take care of everyone or learn how to be independent. Income redistribution anyone? You are proposing a secure retirement for every American. This is a laudable goal, to be sure. Why then, not release us from the shackles of a Social Security System that has delivered such underwhelming performance? Why pick the American worker’s pocket for the 6.2% demanded by the decrepit, old vestige of the Great Depression and truly deliver something new? In early 2000, a bipartisan commission charged with investigating the agency found a “lack of management accountability” and an agency with "fragmented and uncoordinated administrative arrangement” that rendered the application and appeals process too slow. It’s time for a change. Why must the Democrats continue to champion the old dog? Put it down, and soon.
As noted, you have proposed retirement plans. Will these replace or supplement Social Security? Why have you fought changing the existing system on the grounds that the stock market and other private markets are too volatile and unreliable, yet now you are proposing automatic 401(k) participation? I’m sure you’re aware the funds in most 401(k) plans are invested in just the type of equity and debt instruments you’ve deemed too risky for the average American. Why the change now? It’s about time the Democrats have come around, if, in fact, they have.
Enough about the Bush Administration’s “Tax breaks for the wealthy” already. That repetitive cry has been echoing through the halls of the DNC for years now. The fact is, the wealthy pay most of the taxes, and if you are going to cut taxes, that is where most of the opportunity lies. In 2004, the top 1% of income tax payers paid over 37% of the total federal income tax burden. In the American Dream Initiative, you indicate that Bush has given “special tax breaks to the privileged few” and increased the burden on the middle class. If memory serves, the middle and lower classes got a tax break too. Those in the lowest tax bracket got a 33% tax rate reduction. The next lowest bracket, containing much of the middle class so often quoted in political rhetoric, pays only 53% of their previous rate. In addition, the child tax credit was doubled.
Helping those bound for institutions of higher learning is a vital goal as well. Without a highly educated workforce, we’ve no chance against the Chinese and Indians lapping at our heels. We need scientists and engineers to perform the research that will make sure the products and technologies of tomorrow are developed on our shores. We don’t need so many studying majors such as law and ethnic history studies. Those so educated develop nothing. If the Initiative is to further stimulate the economy (which has been improving very nicely, thank you!), it must provide strong incentives for the study of technical, scientific and mathematics disciplines. You note, correctly, that the cost of higher education has outpaced the ability of many to provide it. How about taking that $1,000 and putting it toward education? It would seem to be $4B better spent each year.
It appears the focus on CEO pay is an excellent attempt to drive a wedge between those at the top and those a bit further down the socio-economic ladder. A tried and true DNC tactic, trotted out once again for all to see. A CEO’s job at most firms is to increase profits and maximize stock price. The increase in stock price will maximize shareholder value. Guess who the shareholders are? Right, they’re the investors in the 401(k) and retirement plans you now seem to be open to considering. Most public companies today have a high percentage of institutional ownership. GE for example, has 56.5% institutional ownership, Microsoft has 57.3% and large institutions claim 51.4% of Ford Motor Co. Public companies already list CEO compensation, if the investor deems it important. With the dawn of the Internet, this type of information is at your fingertips. If the shareholders of a corporation feel they should provide their CEO with a foolishly inflated compensation package, that’s really their business, not the DNC’s. In any case, the SEC released updated rules today requiring more complete displosure regarding an executives total compensation, including stock options.
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