e-News 1/23/15

• The State of President Obama’s Union
• A New Tax Season Headache
• “The Keystone Pipeline Illusion”
• Salute: Carmela Lunt
• Salute: William Primus  

 

The State of President Obama’s Union

This week, the President outlined his plans for the year with his State of the Union address – a speech more reminiscent of partisan campaign rhetoric rather than a call for bipartisan cooperation!  Unfortunately, the President’s agenda can be summed up in one phrase: higher taxes to fuel still more government spending.  He missed a chance to tell the American people how he will work with Republicans to advance solutions that actually increase opportunities for all – jobs, better wages, and lower health care and energy costs.

He confidently proclaimed that "the shadows of crisis have passed." Well, if the economic crisis is indeed over, all credit goes to the resiliency of the American people.  They have struggled and persevered in spite of the anti-growth regulations, taxes and other burdens placed on them by Washington. 

And, I hope the President recognizes that we have much work to do. 

Ten years ago, America had a booming economy with low unemployment. Today, the number of Americans working is the same as it was in 1978. Labor force participation is at an all-time low. Many Americans cannot find full-time, employment. Much of this is due to the Obamacare restrictions that make it more advantageous for employers to hire part-time workers rather than full-time workers.  Yes, too many Americans are still out of work, and New Jersey families are struggling with fewer hours and smaller paychecks.  And I note that Barron’s reports "U.S. manufacturing suffered a net loss of two million jobs between 2007 and 2013, hardly a sign of renewal."  Yes, we have much work to do.

Beyond jobs and the economy, I was deeply disappointed that the nation did not hear more about concrete steps the President will propose to address the three greatest threats to America today: radical Islamic terrorism, cyber-sabotage and runaway debt. 

The President said he wants to work with Congress. But to make real progress, we have to focus on finding common ground.  The American people deserve real solutions. House Republicans are going to do all we can to build a healthy economy for working families.  Be assured that as the new Congress gets underway, I am focused on jobs and the economy and keeping our country safe!

Read “GOP Lawmakers Express Hope for Compromise on Trade, Cybersecurity and Taxes” in the Wednesday Wall Street Journal here.

A New Tax Season Headache

This week marked the official start of tax season, the annual – and frustrating – American tradition of sorting through a long and complicated tax code to figure out what you owe to Uncle Sam. 

And this year will be even worse — thanks to Obamacare.  This is the power that the Affordable Care Act gave to the IRS as its gatekeeper and enforcer!   As Bloomberg News reports, not only will every taxpayer need to determine whether they satisfy the individual-mandate requirements, but also “[m]illions who received insurance through Obamacare’s exchanges will have a more complicated set of calculations to complete.”

Many families are in for a rude awakening – They may actually owe money back to the government to repay their Obamacare subsidies if they earned more than originally estimated. And many others will have to pay an Obamacare individual-mandate tax.

One leading accountant tells Bloomberg, “People are going to absolutely be blindsided. . . . It can take someone from getting a refund to owing money.”

But even figuring out what you owe is going to be a much bigger chore than taxpayers are used to.

If you receive Obamacare subsidies, say goodbye to that short 1040-EZ form and say hello to your new stack of IRS forms and worksheets. It’s so bad that one tax-preparation service had to create a new section on its website just to explain all of Obamacare's new rules. 

Read the Bloomberg story here.

“The Keystone Pipeline Illusion”

It’s always been clear that construction of the Keystone Pipeline will not be a panacea for America’s energy challenges, nor will it destroy our environment.

Read Joe Nocera’s thoughtful New York Times column here.

Salute: A heartfelt "goodbye" and "thank you" to Carmela Lunt. “As Founder and Board President of Community Hope, Carmela Lunt helped hundreds of young people and their families, grappling with chronic mental illness, poverty and substance abuse through the incredibly valuable programs she started.  I first worked with Carmela over thirty years ago, helping to fund their first group home up in Dover, and later encouraged Community Hope’s expansion of new services to veterans, especially their remarkable programs at Lyons VA Medical Center. There is no doubt that our community is a better place for her visionary and selfless service.”

Read more about Carmela’s life and work in Lorraine Ash’s Daily Record story here.

Salute: Farewell to William Primus, a former Madison councilman and an influential community leader, advocate for civil rights, and equal employment.  As President of the Urban League of Morris County, Bill established a valuable youth program that allowed me to host dozens of bright young men and women as summer interns in my Washington office, giving them new insights into the public policy process and, I hope, piquing their interest in a life of public service.  He will be missed!