AIG Bonus

Well I suppose I can say Spring Break fever caught me off guard. It has been some time since my last posting but I have been amazed by what I have seen in the news over the past couple of weeks. AIG executives taking massive bonuses then being threatened by Congress with a 90 percent tax, Obama faces criticism even from some democrats over proposed spending, and turbo tax Geithner wants to take over privately owned businesses. These are just a few of the top stories that have been making waves over the past few weeks.

But where to begin? As much as I would like to discuss Geithner’s plan to take over failing companies and control what different executives earn a year, I was so disgusted at the idea of Congress imposing a 90 percent tax on certain individuals that I was almost beginning to feel for the bailout executives. This was primarily who this tax was going to effect. Executives working at companies that had received a government bailout would be taxed so exorbitantly if they took any type of bonus after receiving said bailout.

The most astonishing fact about this entire ordeal is that both Democrats and Republicans were signing on to this idea. If any of these politicians had done their jobs in the first place and read the bailout bill, they would have known that this bill allowed for these annual bonuses to be dispersed. I suppose reading something before they sign onto it just might be too much work for our elected representatives. I wouldn’t want them to do too much for the taxpayer money they supposedly earn every week.

But back to this 90 percent tax. Our politicians would like to fix a mistake they made by imposing an ungodly tax on certain people. It should be noted however, that this tax would supposedly only be imposed against executives who have received a bonus after receiving a bailout. However, once the government imposes any type of tax or fee, getting rid of that tax or fee can be a steep uphill battle. Also coming into question, is the constitutional validity of this act. Congress would be punishing and targeting one small group of people with a tax.

Fortunately, due to the overwhelming criticism drawn from both politicians and American citizens, many of the AIG executives have returned their bonuses without having the government come after them. Public criticism works. The government need not tax their way out of a problem. Which brings me to another thought; Congress would not even be able to tax all of the executives. Many of those receiving the bonuses do not reside in this country and would therefore be able to avoid the tax. Making this motion of a 90 percent tax a mere show for the American taxpayers without getting any actual results.

Steele vs. Rush

Over the past few weeks, I’ve been evaluating the policies of the Obama administration or looking into the policies attempting to save a failing auto industry. However, this week something else caught my eye and anybody who watches the news to any significant extent will have seen or heard about the riff emerging between RNC Chairman Michael Steele and conservative radio host Rush Limbaugh. For those who don’t know, Limbaugh is the most listened to radio host in the nation. He is a staunch conservative and is probably one of the most arrogant people you will ever listen to. Michael Steele just recently became the RNC Chairman under the stress of a failing Republican Party. When elected as Chairman, Steele pledged:

And we will make sure that we work hard to make sure those principles, those
values that have made us the party of Lincoln are part of the issues, are part
of the policies, are part of helping set a new direction for this country. We
will cede no ground to anyone on matters of principle, on matters that matter to
the people of this country.

This has been anything but true for how Steele has acted since he became the chairman of the RNC. I believe he started off well by cleaning out the closet of those who previously held positions in the RNC but I do not think he was yet ready to fill those positions with true conservatives. He may have acted with too much haste in his attempt to reorganize and restructure the now failing party.

The previous two national elections have proven that Republicans need to retrace the steps back to their conservative roots and stop placating the liberals and their ideals. Love him or hate him, Rush represents the hardcore conservative ideas that once made the Republican party so strong during the 80s and 90s. After calling Rush an “entertainer” who makes “ugly” remarks, Steele found that he was biting off far more than he could ever dream of chewing. With an audience of approximately 20 million, Steele realized just how popular Rush has actually remained, despite his “ugly” remarks.

While on the D.L. Hughley show, Steele is quoted as saying:

“Rush Limbaugh is an entertainer. Rush Limbaugh — his whole thing is
entertainment. He has this incendiary — yes, it's ugly.”

A few days later, after realizing what he had done, Steele apologized to Rush by saying:

“I was maybe a little bit inarticulate. … There was no attempt on my part to
diminish his voice or his leadership.”

Saying “his whole thing is entertainment”, does in no way, sound like he thinks of him as a leader. This sudden reversal in opinion by Steele is just one more reason why he is not what the Republican Party needs at this time. He is either as he put it, “inarticulate” when going on national television and criticizing certain people or he lacks a backbone and refuses to stand up for what he actually believes when the pressure is on. Either way, the Republican Party does not need a wishy-washy spineless leader at a time when a serious restructuring and reclaiming of lost values is so desperately needed.

I suppose it is quite early in his tenure as Chairman to be criticizing too harshly, however, these are issues that should be addressed early rather than allowing them fold and build up over time. Steele needs to reevaluate those he is calling heroes and villains of the party. Gov. Charlie Christ, a moderate “Republican” from Florida, should not be held as a potential leader for the conservative movement as Steele has already done. He needs to invest more of his time and praise for Republican leaders that are actually promoting strong conservative beliefs and are not underhandedly adopting liberal agendas. While Rush may be controversial at times and is certainly always arrogant, it would probably benefit Steele to adopt and implement many of the conservative ideas that Rush articulates and advocates.