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Things You Need to Know About the Coming Biden Tax Hikes

By Peter Roff • American Action News

Joe Biden made a lot of promises during his truncated run for the White House. One of them, that he wouldn’t be Donald Trump, he’s kept. The others, most of which were grounded philosophically in the idea he was a moderate Democrat – an image the mainstream media cheerfully did its best to confirm, have gone out the window. 

On economics, on cultural issues, even on foreign policy he’s not just reverting to the positions taken during the Obama years. No, he’s breaking new ground in so many areas it’s clear he’s trying to be a transformational president rather than the caretaker who brought us all together he suggested time and again that he’d be. 

His latest foray into the grand schemes of central planning is his lately-much-discussed infrastructure proposal that’s starting to look like “the green new deal” – which he said repeatedly he wasn’t for – plus a lot of other things. 

What he wants to do is bad enough. How he plans to pay for it is even worse. Now, the whole business is carrying with it an estimated $2 trillion price tag, a figure that is ambitiously modest. It’s going to cost a lot more and, as if the Democrats ever need a reason to do it, he’s going to suggest a slew of new taxes and tax hikes to get the money. 

According to an analysis of the proposal released Tuesday by Americans for Tax Reform, the starting point for Biden will be an increase in the top corporate tax rate from 21 percent to 28 percent alongside the introduction of a 21 percent global minimum tax, an idea beloved by European advocates for enlarging the welfare state to end tax competition between nations. 

If that were not bad enough, he’s also calling for a doubling of the capital gains tax to almost 40 percent, imposing a second death tax by ending step up in basis, and raising the top individual income tax rate to 39.6 percent. 

What he wants is tax reform in reverse. The right way to do it is to broaden the base and cap or eliminate deductions the way Reagan and Trump did it. In both cases that acted as rocket fuel to a moribund U.S. economy. What Biden is proposing to do will choke off growth and reduce incentives to save and invest – making America more like Japan in the process, a big economy with no appreciable growth.

“Biden’s tax hikes,” ATR said, “will hit Main Street small businesses hard. Small businesses that are organized as pass-through entities (sole proprietors, LLCs, S-corps etc.) pay taxes through the individual code and will be hit by Biden’s plan to raise the top income tax rate to 39.6 percent.” 

Moreover, the group said, the increase in the corporate rate – if Biden gets what he is said to want – will cause utility bills to go up. “Utility customers bear the cost of taxes imposed on utility companies. Utility companies pay the corporate income tax. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. When Republicans enacted a corporate tax rate cut, utilities across the country lowered their rates.”

What that means is higher taxes for just about everyone, shattering his promise that those making less than $400,000 a year (even if that’s by household and not individually, a distinction the then-former vice president never made on the campaign trail) “Inclusive of state taxes and the Obamacare 3.8 percent Obamacare tax, Californians would face a capital gains rate of 56.7 percent, New Yorkers would face a capital gains rate of 52.2 percent, New Jerseyans would face a capital gains tax rate of 54.14 percent.” 

That makes it clear why Democrats from those and other high-tax states are adamant about repealing the cap the Trump tax reform put on the deductibility of state and local taxes also called “SALT.”

Without the SALT cap, taxpayers in well-run red states end up subsidizing the inefficiency, bloat, and wasteful spending in the poorly run blue states like New York and Illinois. That may be outrageous but it’s also Biden policy – and what the Democrats stand for. Taking money from the people (and states) that have it and oversee it responsibly to subsidize those who manage what they have poorly if at all.

As ATR points out, the proposed Biden’s corporate tax hike would make the U.S. top rate higher than Communist China’s 25 percent, a nation not thought likely to join in the effort to establish a global minimum corporate tax. What the president is proposing is an incentive for American companies to move to China rather than bring their operations home, something the coronavirus pandemic demonstrated “IRL” might be a good idea whose time has come. 

The Democrats used to criticize the GOP for supporting tax cuts for any reason. Now the worm has turned. Mr. Biden and the Democratic Party are now for higher taxes for any reason, the health of the U.S. economy be damned. His tax plan is a bad policy – bad for everyone, except maybe China.


The GOP Needs A Pro-Growth Message and Pro-Growth Messengers

By Peter Roff • Newsweek

They didn’t call Ronald Reagan “The Great Communicator” just because he knew how to deliver a speech. The fact is, he—more than any president in recent memory—knew how to bring a complex idea to life in ways the public wouldn’t just understand but would embrace.

Sometimes this required some simplifications the media—which continually tried to prove Reagan a dunce—used to distort what he was saying. That’s not to say he didn’t get a few things wrong; every president does. On the big things, however, like the importance of economic growth and how to get it, he was very, very right.

Growth matters. The Republicans who followed Reagan into the White House either didn’t get it or couldn’t explain it. That left the door open for the media and progressives to slander and then dismiss pro-growth measures as deficit-enhancing tax cuts for the wealthy that produced greater income inequality.

The Republicans who tried but failed to follow Reagan into the White House—Bob Dole, John McCainMitt Romney—didn’t make it in part because they didn’t understand the need to explain how growth happens. They never communicated how the right kinds of tax cuts and deregulatory measures would cause economic expansion, leading to rising wages, more jobs and new businesses, making everyone better off while eventually bringing into the U.S. treasury as much revenue or more as the liberals claimed the tax cuts “cost.”

Reagan honed his ability to explain the politics and economics of growth to working Americans over years. As a spokesman for General Electric, he went around the country to the company’s various plants and facilities to talk to employees about the virtues of the free market system. More recent Republicans’ comparative inarticulateness may in part explain why the country appears to be embracing the soft socialism Joe Biden and his congressional colleagues are offering.

Mitch McConnell
Senate Minority Leader Mitch McConnell (R-KY) talks to reporters with Sen. John Thune (R-SD) (L) and Sen. Roy Blunt (R-MO) following the weekly Senate Republican caucus luncheon in the Russell Senate Office Building on Capitol Hill March 16, 2021 in Washington, DC. McConnell warned Senate Democrats not to abolish the filibuster, saying that he would use procedures to turn the Senate into “a 100-car pileup, nothing moving.” CHIP SOMODEVILLA/GETTY IMAGES

Pollster Scott Rasmussen just released a national survey of 1,200 registered voters that found 35 percent of them saying economic fairness was more important than economic growth. The fact that just over a third of the country thinks equality of outcomes deserves more focus than equality of opportunity—a key component of any pro-growth policy—should alarm Republican leaders and growth hawks.

Even when the numbers are broken down by party, the results are disheartening. According to Rasmussen, a third of Republicans now believe fairness is more important than growth. In the Reagan years and throughout the Gingrich era, which saw the first balanced budget in decades alongside a period of continued growth, a number that high would have been inconceivable.

It’s not that the GOP doesn’t believe in fairness. The free market is the fairest system ever conceived for the exchange of goods and services between willing sellers and willing buyers. It’s that they reject—or ought to, anyway—the idea that no matter where anyone starts, we all need to end up in the same place.

It’s really that kind of outcome that’s the most unfair. It presumes that no matter how creative a person is, how hard they work, how good their innovation might be or even how lucky they are, no one should do any better than their neighbor. Identical per capita income for every family—that’s the ticket.

Except it’s not. The progressive politicians’ response to the COVID crisis—shutting down the marketplace state by state while the federal government borrows trillions, inflating the debt while doing nothing to stimulate the economy—leads to disaster. It won’t take too much more of this before the United States starts to resemble Greece, and not in a good way. We’ll be comparatively lucky if it stops there, without the U.S. sliding all the way down into the same space as Venezuela.

There is a bright spot in Rasmussen’s data. “Those respondents who believe focusing on economic growth is the most important rated cutting spending and taxes as the best prescriptions” for doing so, as did those “who would rather focus on economic fairness.” Both sides agree on what needs to be done and, at least by implication, reject the Biden White House’s tax-and-spend plans. This means the growth wing of the GOP has a chance to carry the day—if it’s smart and can find leaders who can explain what is going on in ways the public can understand, even through the filter of the elite media and the opposition’s critique.


Operation Overreach

Biden should spend less time with historians and more with moderates

By Matthew Continetti • The Washington Free Beacon

Getty

A liberal president enters the White House in a time of national crisis. He campaigned as a moderate but soon reveals his intent to govern from the left of the center-left. His bold agenda has plenty of fans among journalists and academics who celebrate the expansion of the welfare state. They write stories and deliver soundbites likening the new chief executive to FDR. The end of Reaganism, they say, is at hand.

I’m referring, of course, to President Barack Obama. Shortly after his election in 2008, Time magazine portrayed him as Dr. New Deal, complete with fedora and cigarette holder. “It would seem that Obama has been studying the 1932 Great Depression campaign of Franklin D. Roosevelt,” wrote E.J. Dionne in his syndicated column. “Conservatism is Dead,” announced the New Republic. “It has been that kind of presidency,” gushed Jon Meacham in 2009. “Barack Obama, moving as he wishes to move, and the world bending itself to him.”

Take a moment to recover from that last bit of purple prose. Then recall that two years after Obama’s victory, Republicans won the House. In 2014, Republicans kept the House and won the Senate. And two years after that, Republicans won complete control of the federal government. Conservatism didn’t die—the New Republic did. (It’s been reborn as a monthly.)

Now the same wonks and historians who compared Obama to the architect of managerial liberalism downplay his tenure in office as overly cautious, modest, and risk-averse. They’ve settled on a new, new FDR: Joe Biden. And Biden is ready to play the part. Even if it means risking Democratic control of Congress.

Biden met recently at the White House with a group of historians who, according to Axios, share his view that “It is time to go even bigger and faster than anyone expected. If that means chucking the filibuster and bipartisanship, so be it.” Biden’s “closest analogues,” Michael Beschloss told the news outlet, are FDR and LBJ. E.J. Dionne says Biden represents “a new disposition through which pragmatic forms of government activism add up to a quiet political revolution.” And Biden “loves the growing narrative that he’s bolder and bigger-thinking than President Obama,” writes Mike Allen. No doubt he does.

You would think that, in the midst of all the pandering and praise, the scholars who talked to Biden might have provided him some actual historical perspective. Every president Biden is said to recall, including Reagan, had to endure numerous setbacks, crises, unforced errors, and unanticipated consequences of their own policies. By 1938, the New Deal was exhausted, the economy hadn’t recovered from the Depression, and FDR won his final two terms largely on the basis of his international stature. LBJ’s landslide in 1964 was followed by a shellacking in 1966 and the collapse of the Democratic coalition in 1968. The GOP lost 26 seats in the House in 1982, forfeited control of the Senate in 1986, and when he left office Reagan handed his vice president a giant deficit, the Savings and Loan debacle, and a zealous special prosecutor.

The historians urging Biden to go big on policy aren’t analysts. They are partisan cheerleaders. If they stepped back, they would see that Biden is weaker than the presidents he admires and that vulnerable Democrats are warning the majority against overreach.

The Biden team gave Axios four reasons the president is ready to ditch the filibuster and push through a $3 trillion infrastructure and green energy bill, changes to election law in the “For the People Act,” and possibly an immigration amnesty. Biden has (1) “full party control of Congress, and a short window to go big,” (2) “party activists” are “egging him on,” (3) “he has strong gathering economic winds at his back,” and (4) “he’s popular in polls.”

But the same evidence could also be read as an argument for caution and restraint. Biden has less support in Congress than any of the presidents he emulates. (Reagan never controlled the House, but often had a majority of conservative Democrats plus Republicans.) At the moment, Biden’s party has 219 seats in the House and 50 in the Senate—meaning he can lose just two votes in the lower chamber and none in the upper one. It’s one thing to enact significant legislation on a partisan majority. It’s something else to enact such legislation on a partisan majority of one during a time when a positive COVID test upsets the whip count.

Nor is following “party activists” a certain route to political success. Economic winds change direction. And while Biden is popular, his disapproval rating in the January Gallup poll was second only to Donald Trump’s. Negative partisanship drives Biden to steamroll the Republicans. It also exposes him to political rebuke.

Some Democrats are beginning to express qualms with various aspects of Biden’s approach. Maine Democrat Jared Golden was the only member of his party to vote against Biden’s American Rescue Plan. Henry Cuellar of Texas was among the first congressmen to draw attention to the crisis on the southern border. Filemon Vela, also of Texas, announced his retirement the other day, a few months after his vote share dropped to 55 percent from 60 percent in 2018. Several House Democrats have said they disagree with Nancy Pelosi’s outrageous plot to expel Iowa Republican Mariannette Miller-Meeks and replace her with Rita Hart, who lost by six votes last year. And West Virginia senator Joe Manchin has yet to cosponsor the election bill at the center of the Democrats’ campaign to end the filibuster.

In these early days, Biden’s presidency has been less a transformation than a continuation of the partisan stalemate that has existed since the end of the Cold War. Parties win elections, misread electoral victories as ideological endorsements, overreach, and pay for it at the polls. The Democrats for whom the bill will come due first are well aware of this dynamic. They may not be as good on television as Jon Meacham or Michael Beschloss, but they have plenty of insight into the aspirations and concerns of swing voters. Biden may want to have them over to the East Room. Before they are out of work.


Democratic Delusion and the Conspiracies that Fuel it

By Peter Roff • American Action News

Maxine Waters GameStop stock hearing short selling
Democratic California Representative Maxine Waters, Chairwoman of the House Financial Services Committee, has pledged to “convene a hearing to examine the recent activity around GameStop” as a “first step in reining in … abusive practices,” like short-selling a way to make money off of stocks that fail.CHIP SOMODEVILLA/GETTY

The Democrats don’t plan to run on their record in the 2022 midterm elections. They plan to go to the voters and argue that Republicans are too crazy and too outside the mainstream to be allowed to return to power in Congress.

Whether that will be enough will depend in part on the health of the U.S. economy. If the Biden-Pelosi-Schumer spending binge and planned tax increases don’t hamper the post-COVID recovery, that might be enough. However, if the economy tanks and the Republicans pull together a realistic program for bringing growth and jobs back and getting spending under control, a GOP-led majority in both chambers is not only possible but likely.

Before you snicker, remember the Republicans came within a hair of winning back control of the House in November 2020 even as Donald Trump was losing. GOP congressional candidates ran ahead of Trump in about 180 of more than 210 winning races, and Republican House candidates won more contested races than Democrats did. A change in control isn’t out of the question by any means, which is why the progressive campaign machine has to do all it can to discredit its opposition in the minds of the electorate.

Enter QAnon, the internet-based wellspring of conspiracies ranging from the sublime to the outrageous—and all of them ridiculous. Unfortunately for the GOP, a few folks who’ve lately been their voters (not to mention a newly elected member of Congress or two) have been caught on social media spreading the conspiracists’ tales.

Up until it filled a narrative need, QAnon was a little more than a curiosity among the relatively few people who were aware of it. The intrigues it promulgated did produce a few notable and even tragic events but, in the main, it drew the attention of the fringe. That is, until its usefulness in painting a picture of the GOP as controlled by radical insurrectionists became clear. After that, the legacy media became the biggest outlet for its tall tales under the guise of reporting.

Up to a point, the strategy of elevating QAnon been a success in that it left GOP leaders in the difficult position of defending their own while repudiating the insanity. It’s a tight rope to walk. What the Democrats must do now is determine whether they can sustain these attacks over two years, and whether they’re insulated enough to avoid serious blowback.

You see, it’s not just the GOP that has a problem with conspiracy kooks. The Democratic Party is full of them too—and they’ve got the reins of power now. Consider that Rep. Maxine Waters, who now chairs an important congressional committee, was first heard of across America when she accused the CIA of being behind the crack epidemic in the nation’s inner cities.

She’s a problem, not that people bring that up much anymore. Maybe the GOP should. Republican leaders might also want to talk a bit about the Democrats who said George Herbert Walker Bush flew to Paris in 1980 to negotiate a secret agreement with the Iranians to keep the hostages until after the election. (Spoiler alert: He didn’t, but it took a congressional investigation to knock that rumor out).

Remember all the things the Democrats said about the Trump campaign colluding with the Russians and the allegations contained in the Steele dossier. They didn’t remain inside the confines of cyberspace; no, they became front-page news and were treated seriously for months until poof, nothing.

In the last few weeks, prompted by another tirade by Sen. Sheldon Whitehouse (D-R.I.), a guy who could have given the late Joe McCarthy some lessons on tactics, social media was abuzz about the supposed “real” circumstances leading to Associate Justice Anthony Kennedy’s decision to step down from the U.S. Supreme Court with a cast of characters including his son, officials of Deutsche Bank, and others appended to numerous tweets.

It’s undeniable, as historian Richard Hofstadter famously wrote back in 1964, that there is a “paranoid style in American politics.” What he and others miss is that it’s not confined to the Right. It’s at least as prevalent on the Left, if not stronger. The difference is that while the GOP’s crazy sometimes becomes unpleasant, the Left’s progressive crazy sometimes becomes law, which is much harder for all of us to deal with. If you doubt me, read the text of H.R. 1 closely.


California Law Harms Veterans and Consumers While Claiming to Protect Them

By George Landrith • Newslooks

California has imposed its “fix” on something that wasn’t broken in the first place.  As a result, veterans who need Telehealth services are being locked out because of California’s imposition of its own version of “net neutrality.”  California now flatly prohibits Internet Service Providers (ISPs) from offering selective free data plans — including Telehealth services to veterans. 

Net Neutrality is always sold as being “fair” and “just” and treating all internet traffic “equally.”  Government imposed net neutrality may sound good in theory, but the reality is it often harms consumers.  In this case, the first and most obviously harmed consumers will include veterans who have lost access to a mobile app called VA Video Connect.  This innovative app allows veterans to receive Telehealth services without incurring data usage charges.  This obviously helps veterans who have been underserved in the past and suffered long delays in obtaining medical help.  This also helps low-income persons the most.  

But in California’s infinite wisdom, this sort of free internet access must be stopped.  Telehealth services are an innovative and efficient way to receive certain important healthcare needs— particularly counseling and initial or followup consultations.  Given that veterans have suffered a backlog and long waiting periods, Telehealth has been an important tool to provide a wide array of healthcare services that work well with virtual visits to the doctor.  Admittedly, Telehealth isn’t a way to have surgery, but many healthcare consultations can be done effectively via Telehealth.  And it speeds quality medical care and counseling to veterans who need it. 

This free data prohibition imposed by the new California law is now becoming a choke point in shutting down free data used in the VA’s Telehealth app.  So veterans in California are locked out.  But this law doesn’t stop at California’s borders.  Even though the law is California’s law, it imposes restrictions on people who do not live or work in California, or have any relationship to the state at all.  And the VA is sounding the alarm. 

Major carriers like AT&T have removed all free data services from its offerings in all 50 states because they believe keeping free data options in the other 49 states would still violate the new California law.  So effectively, we are allowing misguided do-gooders in California to dictate what the nation’s high tech policies will be in every other state in the country.  That’s not only unconstitutional, but it is crazy stupid. 

Nonetheless, this is what the Left calls progress.  For more than a decade I’ve warned of precisely these kinds of “unintended consequences.”  Yet, the Left rolls their eyes and says that they have the intelligence and wisdom to do it right and that we shouldn’t worry about silly hypotheticals. 

Notwithstanding the warnings, the Left has had an almost maniacal drive to impose government regulations on how internet traffic is prioritized.  Most ISPs have a system that prioritizes certain internet traffic that must be top priority to work properly.  For example, a zoom call won’t work properly if it is delayed by even 1 second.  But an email could be delayed by 1 second and not even matter. Or if you’re downloading a movie, a momentary delay won’t impact things because you begin watching the movie while the rest of it downloads.  ISPs know this and since you’re paying them to give you a good internet experience, they have every incentive to get things right and to allocate scarce internet resources to give their customers a high quality experience.  

But the Left and many government regulators confidently claim that giving them the power to set the rules and priorities will yield better results.  But as this situation with veterans and Telemedicine proves, government frequently makes things worse — which is why we shouldn’t reflexively trust government.  There are some things that should be regulated.  But that is not a reasonable or rational argument that government should regulate virtually everything.  

And there is no good reason to have government regulate the flow of internet traffic as virtually no consumer is thinking, “If only the government would regulate the priorities assigned to my email, video downloads, and zoom calls, life would be so much better!”  We may wish for faster speeds and more network investment, but net neutrality won’t do any of that.  It simply puts government in charge of directing internet traffic.  But it does nothing to build more “internet highways” or to increase our connection speeds.

Policy that promotes internet freedom and allows innovative services like VA Video Connect and other free data offerings makes a lot more sense.  Adopting policies that encourage private investment in expanded networks makes sense too.  But having government regulate internet traffic is a horrible idea.  And thanks to California, we now have the rock solid proof!


Democrats Intent on Eliminating Popular Ballot Safety Measure

By Peter Roff • American Action News

Office of U.S. House Speaker via Wikimedia Commons

Congressional Democrats are pitching their H.R. 1 “For the People Act” as a necessary salve for a broken electoral system. If enacted, they claim, the bill’s provisions will fix a broken campaign finance system, protect voting rights, and make the average American feel once again like they can trust the system we use to select our leaders.

Truthfully, it doesn’t do any of those things but they’re hoping no one catches on. Or because they fear being called “racist” or worse for failing to fight “voter suppression,” won’t fight. That’s unfortunate, at least for the GOP – whose strategy to stop the bill depends on the filibuster – because it’s a bad bill that would keep the Democrats in power almost in perpetuity. 

Among its many outrageous provisions is one that would essentially vitiate state laws requiring voters to produce some form of government-issued photo ID before being allowed to vote. To most Americans, that’s a commonsense kind of thing, backed by 75 percent of likely voters in one recent poll. 

Look at the facts. We’re asked to show ID every day, whether we’re trying to get on an airplane, make a bank deposit, or enter a federal government building. Democrats say, without offering a convincing explanation as to why it’s so, that asking the same of voters at a polling place would be racist and constitute voter suppression rather than protect the constitutional guarantee of “one person, one vote.”

The American public isn’t buying the criticism, something Red State Democrats like Joe Manchin of West Virginia, Arizona’s Mark Kelly and Kyrsten Sinema, and Montana’s Jon Tester should be thinking about when Senate Majority Leader Chuck Schumer of New York tries to twist their arms and get them to vote for the bill. There is room for a principled objection to the bill because voters still back the idea that a valid photo ID must be shown before a ballot can be cast by overwhelming margins. 

A recent Rasmussen Reports national telephone and online survey found 75 percent of likely voters agreed voters should have to show a valid driver’s license or some other form of government-issued identification before they could cast a ballot. Less than a quarter of all those surveyed – just 21 percent – said they were opposed. 

When an issue has nearly 80 percent support, a smart politician just stands next to it. As it now stands, on top of the near-universal support it has nationally, 36 states have some form of voter ID law that would be nullified to one degree or another if H.R. 1 – which passed the House with only Democrat support — becomes law. 

In its analysis, Rasmussen reports said, “Support for voter ID laws has actually increased since 2018, when 67 percent (of likely voters surveyed) said voters should be required to show photo identification such as a driver’s license before being allowed to vote.”

Voter ID laws are strongly backed by Republicans, with 89 percent saying they support making people prove who they are before they can cast a ballot alongside 77 percent of non-affiliated voters and, remarkably, 60 percent of Democrats sharing that view. The party in Congress, it seems, is out of touch with its rank and file. 

As to the claim that voter ID laws are discriminatory, Rasmussen Reports says, voters, reject it by a margin of nearly 2-to1 as “60 percent say laws requiring photo identification at the polls don’t discriminate.” Just under a third, 31 percent, said they do while 10 percent were not sure either way.  Unsurprisingly, a bare majority of Democrats – 51 percent – say such laws do discriminate 79 percent of Republicans and 67 percent of independents said they did not.  Somewhat shockingly, the pollster said, “Voters under 40 support voter ID laws more than do older voters” as do most whites (74 percent), blacks (69 percent), and other minorities (82 percent).

The abolition of voter identification requirements is but one of several odious provisions contained within H.R. 1 that would, many analysts have claimed, make it harder to prevent election fraud in the future.

Other provisions contained within the legislation would mandate same-day registration in all 50 states, expand early voting that in some states runs into months rather than weeks or days, and establish rules for handling ballots that would essentially codify the practice of ballot harvesting some states have already made illegal.


Demand would slow down housing market

By Peter Roff • American Action News

The low interest rates we’ve experienced over the past few years have made it possible for millions of Americans to buy new homes, refinance properties, and pull out some equity to ease the pinch caused by the lockdowns.

Families have been able to increase their liquidity and pump billions into the economy when it was desperately needed. Consumers, real estate agents, lenders and mortgage brokers all have benefited. So Thursday’s speech via Facebook by United Whole Mortgage CEO Mat Ishbia, in which he delivered essentially an “ultimatum” to his company’s brokers and partners, seems odd.

Ishbia told brokers they had to make a choice — either work with UWM or else. Anyone working with Quicken Loans/Rocket Mortgage and Fairway Independent Mortgage wouldn’t be getting any more business from him.

Some might call that the hard sell. Others might say it’s the kind of threat that could provoke intervention by federal regulators looking for evidence of restraint of trade. Either way, it’s a bad deal for consumers who have or who planned to capitalize on the current low rates.

Ishbia’s play didn’t go over well among industry observers. Mortgage Bankers Association President and CEO Bob Broeksmit issued a statement that said, “Consumers are best served when they have choices created by a robust, competitive market that offers a multitude of loan prices, products, and service levels. Our mortgage market is extraordinarily competitive, with thousands of lenders, multiple delivery channels, and varying business models. MBA does not condone activities designed to thwart competition in the mortgage market and limit loan options available to borrowers.”

What Ishbia wants amounts to a “publicly traded nonbank,” Inside Mortgage Finance reported, “altering its broker contract, telling third-party salespeople if they violate this ‘representation and warranty’ they must pay the wholesaler damages ranging from $5,000 to $50,000.”

Chris Whalen of Whalen Global Advisors LLC, a frequent contributor to the National Mortgage News, said Ishbia’s demands were a direct result of “mortgage lending volumes slowing” forcing firms to fight over brokers and production.

“Both firms are very dependent upon loan refinance transactions and thus buy loans from mortgage brokers. Rocket Mortgage is best in class at refinance, while UWM is an upstart and bottom feeder in terms of production,” Whalen said.

UWM is “the monkfish of mortgage lending,” Whalen said, adding it compared in some ways to Countrywide Financial, a firm that played a key role in the sub-prime lending crisis more than a decade ago “but with the added fuel of the Fed’s purchases of mortgage paper.”

The story, Whalen predicted, “will end in tears” and placed the blame squarely at the feet of Federal Reserve Chairman Jay Powell and the Federal Open Market Committee. Perhaps, but what is certain is that by trying to force third-party brokers to act as UWM employees, Ishbia is guaranteeing home buyers and mortgage brokers will suffer. The policy he is attempting to put into place will restrict competition, despite the launch in January by Quicken/Rocket of a new national mortgage broker directory backed by an investment of $100 million on its website.

Ishbia’s tactics undermine the goal of mortgage brokerages: to identify the lowest interest rates for borrowers and streamline the mortgage process. With Rocket — an industry leader in the mortgage space — now stripped out of the Rolodex of many brokers, consumers almost surely will be required to pay more.

That will cause the housing market to slow down at a most inconvenient time for buyers, sellers and the country as a whole.


A New Cosby Show? Conservative Fav Rita Cosby Gets New Show on NYC’s WABC

By Peter Roff • American Action News

Veteran Emmy-winning broadcaster Rita Cosby, it was announced Monday, is joining the primetime lineup on WABC 770 AM, the New York City-based station that at one time served as the flagship for the late Rush Limbaugh, whose three-hour daily program changed American radio forever. 

In an interview conducted before the launch, Cosby promised her show would be “a cancel free zone” and invited listeners and fans of all kinds to call in with questions and comments. 

“Rita Cosby is the best in the business, with a tremendous following and incredible background,” John Catsimatidis, CEO of the Red Apple Group and 77 WABC Radio, said. Her new show, which will air weeknights from 10 pm to 12 midnight “will bring a new and exciting dynamic to our important evening programming.”

“Rita’s top-notch interviewing skills, impeccable record in journalism, and deep ability to connect with our listeners,” he added, portends big things for both the show and the station, Catsimatidis continued. The program begins at a time when the future of terrestrial talk radio, at one time an incredibly economically robust industry platform, is undergoing major changes thanks to the proliferation of podcasts, satellite radio, and internet streaming service. 

None of that should pose any problems for Cosby, one of America’s most recognized broadcasters whose successes across various media platforms can be matched by few other journalists. Her work in journalism has taken her around the globe and includes live reporting from the war zone in Afghanistan, from Belgrade in the former Yugoslavia during the NATO bombing, and along the U.S. border with Mexico. Known for her engaging style and headline-making interviews, she has obtained exclusives with more than twenty world leaders, including seven U.S. Presidents and Pope Francis, as well as with entertainment icons Michael Jackson, Tom Hanks, Bruce Willis, and infamous inmates Dr. Jack Kevorkian and David “Son of Sam” Berkowitz, a serial murdered who terrorized New York’s five boroughs beginning in the summer of 1976 through his arrest in August of 1977.

“We are thrilled to have Rita Cosby taking over this important timeslot. Beginning Monday, our evening listeners will get a great dose of the latest news along with powerful and compelling interviews, from one of the country’s most well-regarded broadcasters,” said Chad Lopez, the president of Red Apple Media/77 WABC Radio.

Cosby was named Radio Ink’s 2018 Most Influential Woman Legend of the Year and has won six Gracie Awards in radio, including for Outstanding Host and Outstanding Talk Show. She previously worked at 77 WABC radio, serving as the station’s political editor and as the anchor of weekend and midday talk shows, from 2014 to 2018.

“The Rita Cosby Show” begins at 10 pm on March 15, 2021, and be heard on 770 AM throughout the New York City greater metropolitan area and live on the internet at https://wabcradio.com/.


Like the Lewis and Clark Expedition, Space Exploration Matters

By George Landrith • Newsmax

Like the Lewis and Clark Expedition, Space Exploration Matters

The United States won the Cold War. The world was benefited by the fact that a pro-liberty, pro-human rights nation became the world’s sole superpower. Had that superpower been the former Soviet Union or current China, the world would be a much less free, happy and prosperous place.

Thanos, in the Marvel movies, was the ultimate supervillain. His goal was to kill half of all human life. Of course, Thanos is a make-believe villain. But there are real-life villains who have no problem brutally repressing and killing those they see as their subjects. When evil regimes have power, the people suffer — often horrifically. History proves that.

It is not inconsequential or coincidental that the U.S. also won the race to the moon. Being able to defend yourself from hostile powers has always been easier when you have the high ground and the superior technology. While no battles were fought on the surface of the moon, the technological advances that we obtained by making the trip helped our nation win the Cold War and benefited the entire free world.

This is one of the reasons that space exploration isn’t simply a fun hobby or a matter of national pride. Looking back at history, when Thomas Jefferson was president, it is clear that the Lewis and Clark exploration of America’s vast western frontier (1803-1806) was about a lot more than just mapping the frontier or learning about it. Part of the mission that Jefferson gave them was establishing our national presence in the west so that European powers didn’t claim it as their own and use it as a launch point to attack our young nation. Jefferson wasn’t imagining the risk. Only a few years later, the British did attack America — but not from the western frontier.

In today’s world, space exploration serves many vital national interests. China very much wants to overtake us in space exploration and its motives are not about advancing the cause of mankind. If you don’t believe me, ask one of the critics of China’s repressive and violent domination of Hong Kong.

The good news is that the United States is making important strides to reestablish its leadership role in space and space exploration. We just witnessed a very important test of NASA’s Space Launch System (SLS). It was a successful test and shows that America is once again Earth’s most capable nation in space exploration. We cannot afford to lose the momentum. We need for national leaders to fully support our efforts in space.

One thing that most Americans don’t understand is that as interesting as it has been to watch the development of SpaceX’s Vulcan Heavy and Falcon Heavy, they are limited in their capabilities. In fact, using lift capability as the measure, SpaceX’s options are less than 1/2 as capable as the current SLS and they will be only about 1/3 as capable as the next generation SLS. While it is true that SpaceX has lowered the cost of a generic space launch, the truth is that SLS can get us to the moon and Mars and beyond. Neither the Vulcan nor Falcon have the lift capability to do that.

Moreover, if we were to build the International Space Station (ISS) now, using SLS to send the parts and equipment into space, we could do it with only three launches. Even though each individual launch would be more expensive, SLS’s vastly superior lift capability would make the entire mission far, far less expensive. It took more than 30 launches to build the ISS with less capable space vehicles.

To state that differently, if you were moving across the country, a single trip in a small commuter car would be the cheapest option to make the 2,500 mile drive. But if you were hoping to move more than a few people, you’d quickly find that a larger, more capable vehicle would actually be cheaper to accomplish the mission of getting your belongings and furniture across the country. We all understand this point and would never seriously consider moving a house full of furniture and household belongings across the country in a Honda Civic.

The bottom line is that America needs SLS if we hope to maintain our advantage in space and continue to be the world’s high technology leader. The new Biden Administration and Congress must continue to support America’s leadership in space. It isn’t merely a matter of national pride or a geeky hobby. We, of course, learn so much in science, health, medicine,and technology when we explore. And history has proven over and over that we must always lead in technology and have the high ground if we hope to keep the world’s despots and totalitarians at bay.


Federal Judge: ‘One-Party Control Of The Press And Media Is A Threat To A Viable Democracy’

In a blistering dissent, Judge Laurence Silberman said The New York Times and Washington Post are 'Democratic Party broadsheets.'

By Mollie Hemingway • The Federalist

The control of major media by one political party is a dangerous threat to the country, a federal judge warned in a blistering dissent that called for courts to revisit libel laws that generally protect the press from being held liable for their reporting.

“It should be borne in mind that the first step taken by any potential authoritarian or dictatorial regime is to gain control of communications, particularly the delivery of news,” wrote Judge Laurence Silberman of the D.C. Circuit for the Court of Appeals. “It is fair to conclude, therefore, that one-party control of the press and media is a threat to a viable democracy.”

Silberman argued that it’s time for courts to revisit New York Times v. Sullivan, which has shaped press law in favor of media outlets for more than five decades. The New York Times and the Washington Post “are virtually Democratic Party broadsheets. And the news section of The Wall Street Journal leans in the same direction,” Judge Silberman wrote in his March 19 dissent.

He said that orientation also controls the Associated Press and most large papers in the country, including the Los Angeles Times, Miami Herald, and Boston Globe. “Nearly all television—network and cable—is a Democratic Party trumpet,” Judge Silberman added.

Silicon Valley also has “enormous influence” over the distribution of news and it “similarly filters news delivery in ways favorable to the Democratic Party,” wrote Judge Silberman, highlighting the shocking suppression of stories about Joe Biden and his family when he was running for president.

In that case, Twitter and Facebook censored media outlets that reported accurately about the Biden family’s dealing with foreign entities. Twitter suspended users, including sitting White House press secretary Kayleigh McEnany, for merely sharing accurate information, and prevented people from sharing the information privately on its platform. Facebook said it would censor coverage of the Biden family corruption pending a “fact-check,” an unprecedented privilege given to Biden in the closing days of one of the closest presidential elections in history.

Only a few major media outlets are not controlled by the left, Silberman noted, citing Fox News, where this reporter is a contributor, the New York Post, and The Wall Street Journal. “It should be sobering for those concerned about news bias that these institutions are controlled by a single man and his son. Will a lone holdout remain in what is otherwise a frighteningly orthodox media culture? After all, there are serious efforts to muzzle Fox News,” he wrote. CNN hosts and other leftist activsts are currently on a campaign to deplatform their rival.

“Admittedly, a number of Fox’s commentators lean as far to the right as the commentators and reporters of the mainstream outlets lean to the left,” Silberman wrote in a footnote, in a dig at reporters inserting their extreme partisan views into news stories.

A New York Supreme Court judge last week ruled against The New York Times’ effort to get a defamation suit against it dismissed. The Times had said that its reporters were inserting opinion into news stories, and that opinions are not actionable for defamation. The argument didn’t hold sway with the judge, who critiqued the blending of news and opinion in purported news stories.

Another footnote critiqued the tepid response of some to “big tech’s behavior” censoring conservative speech. Silberman called repression of political speech in large institutions with market power “fundamentally un-American.”

“Some emphasize these companies are private and therefore not subject to the First Amendment. Yet—even if correct— it is not an adequate excuse for big tech’s bias. The First Amendment is more than just a legal provision: It embodies the most important value of American Democracy. Repression of political speech by large institutions with market power therefore is—I say this advisedly—fundamentally un-American,” Silberman wrote.

He then cited Tim Groseclose’s book, “Left Turn: How Liberal Media Bias Distorts the American Mind,” which empirically argued that media bias even a decade ago gave Democrat candidates an 8-10 point advantage. “And now, a decade after this book’s publication, the press and media do not even pretend to be neutral news services.” Silberman noted.

“The First Amendment guarantees a free press to foster a vibrant trade in ideas. But a biased press can distort the marketplace. And when the media has proven its willingness—if not eagerness—to so distort, it is a profound mistake to stand by unjustified legal rules that serve only to enhance the press’ power,” Silberman concluded.


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