Monthly Archives: February 2010

A Tea Party Plan to Save the U.S. Economy

As Published Monday 2/22/10 at
*America’s #1 Conservative Web Site

By: Wayne Allyn Root

We are not recovering from a recession. The spin, propaganda, and wishful thinking from Obama, Congress and the Fed are wearing thin on the average American. There may be a recovery for big business, due to stimulus and bailouts, but not Main Street, where the average worker and the small business owner live.

What we need is a state of the union for small business owners. I am a small businessman. My friends are almost all small business owners. We all believe that Obama’s prescription for saving the American economy is a disaster. His policies of tax and spend are killing jobs, destroying confidence, and wiping out small businesses. Without a recovery for the little guy, there can be no recovery for the U.S. economy.

So I propose a plan that can save small business . . . direct from the only small businessman-turned 2008 vice presidential nominee. I’m proud to call myself a Reagan libertarian. My hero Ronald Reagan understood small business. That is why he created the largest tax cut in U.S. history — a tax cut aimed squarely at small business. That one brilliant stroke of capitalist incentive ushered in the greatest economic expansion in world history, leading to 25 years of virtually uninterrupted economic success.

There is still time to save America. Ronald Reagan proved that you can turnaround even an economic disaster quickly with a giant tax cut aimed at the most important segment of any economy — small business owners. Here is my simple, common sense five-step plan to motivate small business:

Step 1: Create a one-year national income tax vacation. Liberals will scream that Obama already gave us a giant tax cut, but my plan aims the tax cut squarely at the people who make all the difference in a capitalist society: the taxpayers. My plan allows everyone in America who already pays taxes to keep 100 percent of their own income for one year.

Stand back and watch the economic explosion created when the taxpayers and small business owners spend it (helping retail sales), invest it (helping stocks and real estate), use it to pay down their mortgages (helping banks and ending the foreclosure crisis), and use it to start businesses in record numbers (creating jobs).

The cost of this income tax vacation is a measly $1.2 trillion. Obama spent trillions on bailouts and wasted stimulus, all of which created zero jobs and did nothing to improve the economy (it did reward his voters and contributors, however).

Step 2: Eliminate capital gains taxes permanently. The key to the success of our economy is small business investment. A temporary capital gains cut or elimination will not work. Small business owners and investors need security and certainty.There is only one way to spur small business investment and expansion in the middle of a depression — eliminate capital gains taxes permanently. The capital gains tax elimination would motivate people to invest in a way that will create jobs — exactly what we desperately need them to do. If there are no more taxes on capital gains (and investment income of all kinds) older Americans could afford a much higher quality of life in retirement. Anyone could retire on half the amount of assets because interest, dividends and investments would be tax free. Think of what older Americans would do with that extra money — fueling the economy.

Step 3 Create a small business payroll tax vacation for two years. Employees and employers each pay half of payroll taxes. Under my plan, we would give the business owner a payroll tax vacation — by suspending the employer’s half of the payroll tax for two years.That means for the next two years, it costs far less for any business owner to create a job. Without a penalty for every new employee hired, there would be incentive to hire. This idea also frees up capital — every dollar saved by not having to pay half of each employees’ payroll taxes, can now be used to expand businesses, expand inventory, and buy business supplies and equipment. All of which create jobs.

Step 4 Turn immigration from a drain on the economy into an economic boom.Immigration could be the most important topic of America’s future. Studies prove that immigrants actually fare financially better in this country than native-born Americans. Now, however, illegal immigrants are draining the American economy. They cost taxpayers billions in welfare, free education, and healthcare. Let’s first secure the borders to dramatically reduce future illegal immigration. At the same time let’s offer instant residency and an easy, quick path to citizenship for skilled, educated, and financially secure immigrants, which will help trigger a turnaround to small business and the American economy.

Specifically any immigrant who invests $250,000 into either a home or a small business should be granted instant residency and a path to citizenship. This plan is simple: bring money, skills, and resources to start businesses and create jobs and you will be instantly welcomed into the land of opportunity. When ambitious, educated, skilled, middle class immigrants move to America they will buy millions of homes, thereby ending the housing and foreclosure crisis. They will buy or start new businesses, thereby creating millions of new jobs. They will pay into the payroll tax system, and they will put their money into U.S. banks, thereby ending the banking crisis.

Step 5 Legalize and tax sin to fund healthcare reform. Yes, I’m a proud card-carrying Reagan fiscal conservative. But here’s where I showcase my true libertarian bona fides. We have to stop being busybodies or nannies toward our neighbors. Let people do what they want to do as long as it involves consenting adults, and doesn’t harm anyone. It’s called personal freedom.

Taxes on gambling (and even legal prostitution) fund Nevada’s state government, which enables no income taxes, no business income taxes, no capital gains taxes, no death taxes, and the 16th lowest property taxes in America.

Where’s the down side? Interestingly, Las Vegas also leads the nation in churches per capita. What that proves is that allowing personal freedom does hurt citizens who choose not to indulge in sin. The taxes that gamblers and other “sinners” pay in Nevada allow the rest of us to keep more of our own money and lead a better quality of life.

Studies prove that the legalization of marijuana and online gambling would generate almost $300 billion in new tax revenues. Our government wastes billions enforcing ridiculous laws and bans on personal freedom.

This simple, common sense 5-step plan could quickly turnaround the U.S. economy and save capitalism. It’s time to restore the American Dream. God Bless America.

America: A Big Fat Greek Tragedy

By Wayne Allyn Root, 2008 Libertarian Vice Presidential Nominee

Greece is the insolvent, bankrupt country that threatens to bring down the entire EU (European Union) with its exploding and toxic national debt. But it's just one of the PIGS- Portugal, Italy, Greece and Spain. The EU is damned if they do, damned if they don't. If they choose to bail out Greece in order to save the union, soon they'll have much bigger bankrupt nations to deal with (Portugal and Spain are next in a long Conga line). There isn't enough money in all the world to bail out all of them. The EU is in big trouble.

But the real problem is that Greece isn't the worst Greek tragedy on the horizon. Greece is only "the canary in the coal mine." The United States is one big fat Greek tragedy. We are Greece- SQUARED. All the same problems that plague Greece, plague this country- huge national deficits and debt; high unemployment; gigantic entitlement programs; too many government employees; not enough tax revenues coming in; endless bailouts and stimulus; and pension and healthcare systems (Social Security, Medicare, Medicaid) that threaten to eat every dollar of the budget. Just the interest on our national debt is enough to destroy our economy. It's all a Greek tragedy.

America is Greece- except on a much grander scale. Our economic collapse is still a year or two down the road. Obama is laughing, celebrating, dancing and handing out gifts (stimulus, bailouts, entitlements, corporate welfare) at a big fat Greek wedding...oblivious to the the coming economic Armageddon...oblivious to the madness of his plan- to triple down on spending to save us from insolvency.

But it didn't take Greece to warn America of the impending doom. California is our Greece. I warned long ago that Obama's stimulus plan was a disaster. That handing out $120 billion dollars to state and local governments so that they could prevent layoffs of government employees; hire more teachers and government employees; and actually protect raises for government employees...was pure madness. I pointed out at the time that state and local governments across the USA were bankrupt and insolvent. The only possible solution was massive cuts in government spending and layoffs of government employees (just like the private sector). I pointed out that once the stimulus ran out in 2 years, we'd have the same exact problem...except with more government employee salaries, pensions and health care to pay for. All we did was kick the can down the road a bit. We delayed the inevitable economic disaster- just as Greece has done for decades, just as California has done for years. But the day of reckoning is fast approaching.

California is still insolvent and are most state and local we have more government employee mouths to feed...more pensions to will we pay the even larger bill once the stimulus runs out? Where is the next stimulus coming from? How do we pay back the $2 trillion that the Fed has printed? Where are the tax revenues when everyone is a government employee?

All the king's men...all the countries of the world...all the bankers and Goldman Sachs partners...cannot pay the bills that are coming due for America. The national debt has zoomed past $100 trillion. As a sign of things to come, our December deficit doubled in the past year. Obama's budget pressed the pedal towards Armageddon- by spending more than all the budgets of all the Presidents that came before him, combined.

The old saying goes, "A trillion here and a trillion there...pretty soon we're talking about real money." Well let's give you some perspective of the trouble we are in. Greece owes $300 billion to the banks. That amount...from a tiny country...threatens to bankrupt banks across Europe and bring down the entire EU. Yet Obama spent $800 billion in one stimulus bill last year. That stimulus by the way, created zero jobs. ZERO. He wanted to spend a trillion more on his expansion of government-run healthcare. If $300 billion can bring down the entire EU...and make big European banks insolvent...who can possibly bailout America's $100 trillion tab? Just one state- California- is in similar shape and facing the same kind of economic collapse as Greece.

The lesson we must learn is that government cannot spend taxpayers' money endlessly; that not everyone can work for government; that not everyone can depend on government for survival; that government cannot give raises and bonuses to government employees in a depression; that big pensions and universal healthcare bankrupt nations; that unions are poisonous to the survival of an economy; that "spreading the wealth around" is a failure whenever and wherever it's been tried- Argentina, Greece, California. The socialist experiment is a disaster.

Now we the clock see if we can avoid becoming the next Greek tragedy that pushes the world towards a second Great Depression.

Lessons Obama Should Have Learned From Watching the Super Bowl

The Difference Between Las Vegas and Washington D.C.

By Wayne Allyn Root, 2008 Libertarian Vice Presidential Nominee

I am probably the only politician in America whose day job is Las Vegas oddsmaker. I’ve learned many valuable lessons from sports and sports betting. On Sunday I made a fortune for thousands of my clients by picking the New Orleans Saints’ Super Bowl upset. Obama, Reid and Pelosi might snicker, but they obviously don’t understand the difference between Vegas and Washington D.C. You know what it is? In Vegas the drunks gamble with their own money. Maybe we need a politician in D.C. who understands the psychology of winning; who understands the motivation of risk versus reward; who has the guts to take gambles; and the courage to back his convictions with his own money, instead of the taxpayers’ money.

Here are the lessons Obama should have learned from yesterday’s Super Bowl:

#1) Stop slandering Las Vegas. Ironically Vegas makes people happy… Obama doesn’t. There is something about taking a risk that makes Americans feel alive. We are a nation of gamblers. We all have gambling in our blood. Afterall, we are descended from the greatest risk-takers in world history- immigrants who risked their lives and futures to travel to a new land called America. Those who chose to play it safe, stayed home in Germany, Ireland, Italy, China, Russia or India. We are the descendants of the gamblers. That is why America leads the world in entrepreneurship and small business creation. Americans love to risk, test their skills versus fate, and win their fortune. That could be why Americans love Las Vegas. Try to remember that Mr. President the next time you start to criticize or denigrate Las Vegas.

#2) Taking risks is central to success. The Saints pulled the huge Super Bowl upset by taking a huge gamble. Their onside kick to start the second half was the key play of the game- and one of the most daring calls in Super Bowl history. Obama doesn’t understand how important risk-taking is to success in life. The New Orleans Saints’ Coach Sean Payton only took that risk because he knew he’d be rewarded if he succeeded. He will make millions of dollars in new and bigger contracts and endorsement deals because of that daring gamble. People don’t take risks without rewards.

Obama doesn’t understand that risk-taking (entrepreneurship) is the only way out of this recession. People that take risks with their own money are the lifeblood of America (and the American Dream). They will not take those risks without the proper incentive- the ability to keep more of their own money. Obama must reward and encourage risk-taking by our small business owners, not punish it.

#3) Sports gambling (and all forms of online gaming) needs to be legalized. Our country is bankrupt. We need to use Nevada as a role model for the nation and legalize, regulate and tax “sin,” like any other business. Legalizing medical marijuana and online gaming has the potential to bring in $300 billion in new tax revenues. That could pay down government debts, or allow us to lower taxes for our hardworking American taxpayers.

#4) Don’t blindly follow the media. Obama loves to listen to the media…and to be loved by the media. Too bad for him. The media is almost always wrong. That’s how I’ve managed to pick so many winners in my 25 year career as a Las Vegas oddsmaker. I listen to the “experts” in the media…and whatever they recommend or predict…I go the opposite way. Virtually every expert in the media predicted a Colts victory in the Super Bowl. These same experts could not see any possibility for the Saints to pull an upset. Knowing how pathetic the gut instincts of the media are…I picked the Saints in the upset. Perhaps Obama should stop listening to the media. To the contrary, Obama should do the exact opposite of anything that the media recommends.

#5) Government wastes our money. During the Super Bowl I witnessed a perfect example of why our government is broke and failing…and why only the private sector can save our economy. I saw a TV ad created by the federal government. It was an advertisement for the U.S. Census Bureau. It was stale, stupid and ineffective. But worse, it wasted $2 million of taxpayer money. Yes, that ad cost $2 MM of your money. For what? This is how government wastes your money every hour of every day. It’s easy to waste a million here…and a million there, when it’s not your money. Remember that joke about the difference between Vegas and D.C. This is a perfect example of government bureaucrats gambling and failing miserably with someone else’s money- YOURS.

During the same Super Bowl, I saw edgy TV ads by Snickers, Doritos and (to name a few). I’m betting that those ads will make millions of dollars for those companies. I’m also betting that millions…perhaps tens of millions of men responded by going to the web site. That’s the creativity of American business. That’s free markets at work. Government could never create that kind of success (or profit).

If the TV ads fail…it costs taxpayers nothing. That’s the beauty and bravery of entrepreneurs in the private sector. They are more creative because they are gambling with their own money. And if they fail, it doesn’t cost taxpayers a dime. Not unless our politicians use our money to bail them out. It’s simply unconstitutional for government to bail out private companies who happen to make contributions to the politicians making the loans.

Isn’t it amazing what you can learn from a Super Bowl?

Oh, and one more revelation came from yesterday’s game: After my picking the Saints in one of the biggest upsets in Super Bowl history, it’s now official that I’m having a better year than Obama.

Obama vs. Las Vegas: “BRING IT ON!”

Vegas is the Anti-Obama.

Why This is a Fight Obama Cannot Win.

By Wayne Allyn Root, 2008 Libertarian Vice Presidential Nominee

So now our failing socialist President wants to take on Las Vegas- again. Bad move Mr. Obama. You may have gotten 66 million votes in 2008…but based on recent polls, you’re down to around 40 million hardcore supporters...and dropping fast. On the other hand America loves Vegas. Just mention the word and watch their eyes light up. It’s the way they used to feel about you- Vegas makes them feel young, fresh, fearless, sexy and ready for action. When you think of Vegas you want to take on the world. You and your Obamanation make them feel old, stale, frightened and weak. When you think of Obama’s economy you want to get in bed and hide under the covers. The more you attack Vegas Mr. Obama, the more you remind Americans of what they love (Vegas)…and what they don’t (you).

Pretty much every hard-working, taxpaying, money-making male in this country has recently visited Vegas…is planning a visit to Vegas…or desperately wishes they could visit Vegas. Every time you denigrate, insult or castigate Vegas, it makes them remember the way things were…before you came along. It makes them remember “the good old days” when they had the money for a trip to Sin City. It makes them long for the “good old days” when they actually had the freedom to do what they wanted with their own money. When progressive politicians or government know-it-alls didn’t try to micro-manage every decision, every move of their life. Last I checked Mr. Obama, this is America and we can all go where we want; do what we want; spend our money however we please. Smell that desert air Mr. President? That's the smell of freedom. Your lectures and scolding about Vegas are enough to bring out the rebel in all of us…to unite us to collectively scream “WITH ALL DUE RESPECT MR. PRESIDENT, SCREW YOU."

Talk about beating a dead horse. Talk about digging the hole deeper. Every time you attack Vegas, you just keep reminding us that you think our money belongs to you. It’s obvious that you think you’re our boss. That we elected you to be omnipotent. Well guess what Mr. Obama? Every day more people (the kind that like to let loose in Las Vegas) are realizing what a big mistake it was to elect you President. We don’t want your socialist ideas…your redistribution of our wealth…your power-hungry czars...your Treasury Secretaries who cheat on their taxes, but think we should pay more…or your lectures on what we can or cannot do with our money. You know what we think you should do with those lectures, don't you?

I understand why you choose to attack Vegas. You resent what it represents. Green. Vegas is the real “Green Economy” that Americans love. Cold, hard cash. Risk-taking. Capitalism. Freedom. Rebellion. A vacation from progressive ideas and political correctness. We are the anti-Obama. We represent the very concepts that made America great. This Sunday will be Super Bowl Sunday. But the biggest party won’t be in Miami. It will be right here in Sin City. Las Vegas will be jammed with 300,000 visitors, many of the most beautiful women on the planet, and lots of green. This weekend Vegas will become the epicenter of the “green economy." But there won’t be any global warming enthusiasts here. We don’t need your permission to spend our green, enjoy it, or blow it. We’ll be sure to have a cold drink on you.

Vegas is a state of mind. It’s a whole city that represents individualism, self-reliance, personal responsibility, and limited government. It’s a place where the state constitution bans income taxes, but welcomes guns in the hands of law-abiding citizens. Where men can be men, without worrying about your progressive politically correct rules. It's the way America used to be. A place that 40 million Americans a year visit to do whatever we want with our own money and our own bodies. I’ll bet Obama just hates this place.

This country makes movies about Vegas…sings songs about Vegas…and considers this their favorite place to watch their favorite stars perform (from Elvis to Cher to Bette Midler to Garth Brooks). Vegas makes people happy. The American Dream is the story of Vegas. Take your best shot Obama. We dare you. Keep framing the issue as Vegas versus you. It’s a battle you can’t win. You can only dig your hole deeper.

Personally I think you’re the best thing that ever happened to this city. You’re the gift that keeps on giving. You’ve reminded us all that we still have freedom…that we still have balls…that America is a nation that rewards risk. You’ve awakened the sleeping giant Mr. Obama. The American spirit is alive and well. It’s good to feel alive again. It’s good to know that in America everyone is their own boss. Even the President can’t tell us what to do. Viva Las Vegas.

Obama Lied: Welcome to “the Lawyer Economy.”

If You Need Legal Advice, You Need a Good Lawyer. If You Want to Run an Economy and Create Jobs...Run Away from the Lawyers.

By Wayne Allyn Root, 2008 Libertarian Vice Presidential Nominee

You know what they say about lawyers…their greatest talent is their ability to quote their fees without smiling. Well after watching Obama’s State of the Union speech last week, you can add a new talent to the list: Obama should win an Academy Award for the role of a lawyer lying about the true “state of the union.”

Obama said that his stimulus added 2 million jobs. Really? Where? In some alternate universe? Certainly not in America. We’ve actually lost several million jobs since Obama passed his stimulus plan. There is no hard evidence that any private sector jobs were created. Just another lawyer lie.

Obama said that he was freezing discretionary income to reduce the deficit. Really? So with Obama’s version of math, saving a few billion dollars will cut a $1.6 trillion deficit? Just another lawyer lie.

To further prove my point, only one week after stressing deficit reduction in his State of the Union address, Obama released the biggest budget in U.S. history ($3.8 trillion)- complete with the biggest deficit in U.S. history ($1.6 trillion). Give Obama credit- when he lies, he really lies big!

Obama talked about creating jobs. But the problem is that government doesn’t create jobs. Government spending and record deficits takes money away from the private sector- thereby killing job growth. Obama’s proposed tax increases are in actuality what is stopping business from adding jobs. Just another lawyer lie.

Obama talked about helping small business by making it easier for banks to offer loans. Ask any small business owner- they will tell you that access to bank loans is the smallest piece of the puzzle. Obviously Obama is trying to help small business, without ever actually speaking to a small business owner. Ironically, it is Obama’s universal health care, tax and spend, cap and trade, card check, and expansion of government that are standing in the way of a small business recovery. With friends like Obama, who needs enemies? Just another lawyer lie.

Obama said that any student that takes out student loans and goes to work for government, should have their student loan forgiven. Only in Obama’s radical socialist world does that make sense. Mr. Obama forgot to mention that there are already almost 20 MILLION government employees on the federal, state and local level. And that it is their bloated, obscene salaries, pensions and free health care that is bankrupting America. He forgot to mention that each new government employee adds to our deficit. States have no idea how to pay for their current government employees. Why on earth would anyone want to encourage the hiring of more? Obama is trying to obscure the difference between jobs that cost taxpayers nothing (private sector jobs)…versus jobs that cost taxpayers money and lead to higher taxes and record deficits (government jobs).

Obama said that the recession is over. Well maybe it’s over for Obama’s biggest campaign contributors (who are living on stimulus and bailouts)…but it’s certainly not over on Main Street. We are far from out of this economic Armageddon. And by the way Mr. Obama…it’s not a recession. It’s a depression. Just another lawyer lie.

Obama is living proof of that famous saying…You know what the difference is between a lawyer and a liar? The pronunciation.

Now don’t get me wrong. I like some lawyers. I count lawyers among my best friends. My sister is an attorney. My daughter Dakota intends to get a law degree (which I encourage). My personal attorney is my most trusted advisor. When any of us needs an attorney, we want a good one. But let’s be honest- lawyers are paid to twist the truth around to the point where you no longer recognize it. That’s their job. Creating jobs, running businesses, running an economy- those are all far afield of their areas of expertise.

That explains our problem- our country is being run by lawyers who know nothing about how to run an economy; nothing about how to run a business; nothing about how to motivate small business; nothing about how to create a job; and who now longer recognize the truth.