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Pay cut? Pelosi Says No Way

Pay cut? Pelosi Says No Way
In response to a possible pay cut for Congress as a result of the impending sequester, one House member is none too pleased. Nancy Pelosi says that she is against a Congressional pay cut because it would diminish the "respect" and "dignity" of the work they do. Interesting, because the last time I checked, members of the House like Nancy Pelosi worked for us. We are the ones who elect these representatives to Congress. With that being said, Congress started off this year with worst approval rating in history. At the start of the new Congress, it had an abysmal 14% job approval rating, according to Gallup polling. Generally speaking, Nancy Pelosi is usually the least popular member of the least popular governing body in America. In fact, I remember a study released in January which really highlighted how unpopular Congress is to Americans: "Congress is now less popular than root canals, NFL replacement referees, head lice, the rock band Nickelback, colonoscopies, carnies, traffic jams, cockroaches, Donald Trump, France, Genghis Khan, used-car salesmen and Brussel sprouts." Considering this fact, and the fact that Congress works for us, it doesn't seem all that irrational to approve of a Congressional pay cut. In any other job in the private sector, if you are not achieving your goals or getting the job done, not only would you not get a raise but you would probably be fired. Perhaps its time that the American people got serious about firing some of these ineffective members of Congress if we are truly that unhappy with their performance.

Congressman Ron DeSantis
Congressman Ron DeSantis, of Florida's 6th district, joined Sean by phone in the show's final hour to discuss his bill that is on the floor today which proposes to freeze federal pay increases. "If there's anything President Obama made clear during Tuesday night's State of the Union Address, it's that he's not serious about getting government spending under control," DeSantis explained. "It's hard to imagine justifying such a pay increase when the average federal employee's compensation in Washington D.C. is nearly double the median U.S. household income. My very first piece of legislation since being sworn into office, H.R. 273, will begin to tackle our fiscal deficiencies and Obama's overspending head-on. This bill overturns the president's executive order by continuing the temporary pay freeze that now extends through March for an additional nine months. It also implements a key recommendation of the bipartisan Simpson-Bowles Commission, which recommended a three year pay freeze." For more on DeSantis' Bill, HR 273, please click here.

New Deal?
Democrats in the Senate have come up with another plan for how to save the looming sequester deal. Their plan includes a 30% minimum tax on incomes over $1 million a year, which is said to generate $54 billion in revenue. Another $1 billion would supposedly be raised by imposing a new tax for oil-spill clean up and ending a tax deduction related to business equipment overseas. They are proposing an equal $55 billion in spending cuts in defense and farm subsidies. This is the their grand plan. Let's talk about the new taxes they've proposed, which the Republicans have already said aren't going anywhere. Between the minimum 30% tax rate on millionaires and the new tax and deductions, we are looking at $55 billion in additional revenue over 10 years. So let's say that's about $5.5 billion in additional revenue every year (assuming no changes in economic behavior). Now consider the fact that our federal government spends about $9.7 billion every single day. That means that it would take the federal government less than one day to spend the money raised by this proposed tax. Is this supposed to be meaningful reform?

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