Washington Correspondent Neil W. McCabe Weighs in on Democratic Spending and the 2022 Red Wave

Washington Correspondent Neil W. McCabe Weighs in on Democratic Spending and the 2022 Red Wave

 

Live from Music Row Wednesday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. – host Leahy welcomed the Tennessee Star National Correspondent Neil McCabe to the newsmakers line to discuss where the irresponsible Democratic spending stands on both infrastructure and tax bills and the upcoming red wave of 2022.

Leahy: We are joined now on our newsmaker line by our Washington Correspondent for the Star News Network, Neil McCabe. Good morning, Neil.

McCabe: Michael, very good to be with you, sir.

Leahy: Is there anything in the Democratic dictionary when you go look up infrastructure, is there anything that’s not included in that definition?

McCabe: Yes. Highways, roads, and bridges. (Laughter)

Carmichael: Now that’s funny.

Leahy: That is very good.

Carmichael: Very quick. (Laughter)

Leahy: You just made our day here, Neil. (Laughs) So, Neil, let me ask you this.

McCabe: This is why you bring me on board here. I’m good at my job. This is my function. I deliver the mail.

Leahy: So where is that boondoggle? How many trillion dollars is this infrastructure bill that’s basically a bunch of Democratic slush fund monies for liberal groups. Where does that stand now?

McCabe: I think it’s in really big trouble right now because three big reasons. Number one, the Republican moderates, especially those 10 moderate senators who are going to the White House and meeting with the President they have now come forward and say we’re sick of being used. The president uses us as props, and we were embarrassed and we’ve had no input. And we’re tired of being props. And that took two months.

So that didn’t take long for these guys to figure that out. The second problem is that they’re running out of runway on their calendar. Remember, the Biden administration went with the soft opening. They haven’t had a joint address to Congress yet. Now comes word that Nancy Pelosi the Speaker has invited Biden to speak to a joint session of Congress on April 28. We talked a while ago when I said the earliest it was going to be like this week.

So I wasn’t that far off. The problem is after July 4 nothing gets done until people get back from Labor Day. And then you’ve got the budget crisis because it’s the end of the fiscal year. They don’t have the runway to get done what they needed to do. And one of your clues about that is that at the press conference, Biden said that he was going to put forward his gun legislation after he got infrastructure done because he wanted to do everything at the right time.

And he wanted to schedule everything. He said that the part of presidential leadership is doing everything step by step. And then they panicked and then released their gun agenda and infrastructure isn’t in the bank yet. The third thing that’s going to really hurt that infrastructure bill is the fact that people in Washington are now very much aware that there is severe inflation on the horizon. We’re seeing it in home prices.

We’re seeing it in commodity prices. We’re seeing it in gas prices. There is price inflation. A lot of this rise in the stock market is not attributed to increases in productivity, innovation or future earnings it’s just sheer inflation. And one of the problems that you’re going to run into is that the more you spend like crazy, you’re going to continue to feed that inflation with that big COVID bill that they pushed through.

There was an argument that Trump’s government spending was responsible for that inflation. When Biden pushed through that COVID bill and then now talking about this infrastructure bill and his other spending bill, he is going to own the inflation that is going to come from all of this spending.

Carmichael: Neil, add to that their proposed tax bill, which essentially when you get to the fundamental understanding of the way the Democrats are thinking is they want to spend trillions of dollars from Washington, and they want to suck trillions of dollars from the private sector. So they’re essentially becoming for lack of a better term a kind of a fascist of government where Washington is in league with certain industries in the private sector. And I think the tax bill is also in tremendous trouble. And it should be. What do you think about that?

McCabe: What’s going to kill the tax bill is that everyone knows that there’s a red wave coming. Everyone knows that the polls severely undercounted or underrepresented the strength of Trump, especially with the irregular voters. And they’re sort of the unlikely voters who all showed up. So people are very scared of what Trump is going to be able to do.

Leahy: You mean Biden.

McCabe: I mean, Trump is going to be able to deliver.

Leahy: In the 2022 midterm. Thanks.

McCabe: Everyone everyone knows that Trump is out there. He’s not being treated like an ex-President. Believe me, I’m old enough to remember. Nobody was afraid of ex-President Jimmy Carter. No one was afraid of ex-President George H.W. Bush. Nobody was impeaching George H.W. Bush because they were afraid he was going to run again. Okay, that was clear very quickly. He was never running again. But Trump is active and he is there.

And the Democrats know they have one shot at smash and grab. The problem is if they do a smash and grab tax bill, the thing they have to fix is the limit on the deductibility of property taxes in these states, especially in the Northeast, where the property in California, where the property taxes are so high and that’s capped, I think the cap is what $10,000 from the 2017 tax bill? And that is really hurting the Democratic machines in New Jersey and New York and Massachusetts and Connecticut.

And people, can’t deduct their property taxes anymore. So what you have is what was happening before is the rest of the country was subsidizing the high taxes in the Northeast and these blue states, and they’re desperate to fix that. No Democrat in Colorado or Arizona or New Mexico or Missouri is going to defend cutting the taxes of rich people in New York.

Leahy: Last question for you, Neil from Crom.

Carmichael: I think Neil hit it right on the head on that because that’s called the salt. The state and local taxes. And they’re only about six states that get pounded by state and local taxes. But that’s because the Democrats in those states tax their citizens at such high rates, and especially the rich. And so I’m with you.

They’re not going to be the Democrat senators from the states with relatively low taxes. If they do vote to repeal taxes, give billionaires in high tax states tax breaks then they’ll be facing a rough midterm. Do you know how the Republicans are doing in recruiting candidates for the House and Senate?

McCabe: This is going to be a great recruiting year for Senate races and House races for the Republicans going into these midterms. And remember that with Trump, he wasn’t personally popular, but his policies were. Biden is personally popular, but his program and agenda are not. And if the Republicans focus on the agenda, they will crush the Democrats.

Listen to the third hour here:

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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio.

 

 

 

 

 

Crom Carmichael Explains Infrastructure Spending, Billionaire Special Interests and the Redistribution of Income

Crom Carmichael Explains Infrastructure Spending, Billionaire Special Interests and the Redistribution of Income

 

Live from Music Row Friday morning on The Tennessee Star Report with Michael Patrick Leahy – broadcast on Nashville’s Talk Radio 98.3 and 1510 WLAC weekdays from 5:00 a.m. to 8:00 a.m. –  host Leahy welcomed the original all-star panelist Crom Carmichael to the studio to explain the Biden infrastructure bill, special interests that benefit from it and the difference between a millionaire and a billionaire.

Leahy: Joined as we almost always are every Monday, Wednesday, and Friday at 6:30 by the original all-star panelist Crom Carmichael. Crom, good morning.

Carmichael: Good morning, Michael.

Leahy: Well, they’re going to build an infrastructure, maybe. What are they going to build in Washington Crom?

Carmichael: Well, the infrastructure bill pattern is similar to the so-called $1.9 trillion COVID relief bill. Nine percent of it was for COVID relief and over 90 percent was for other stuff. They just called it that.

Leahy: Gee, I wonder who got the other stuff.

Carmichael: Well, special interests of a whole variety. Now the infrastructure bill, and this is a good question. If I were to say the word infrastructure, what do people think?

Leahy: Bridges, roads, airports.

Carmichael: Highways, things like that. Things that are built to last very long periods of time.

Leahy: 50 years.

Carmichael: Generally you think of something with steel or concrete.

Leahy: Generally.

Carmichael: That’s kind of what you think. Well, less than five of the two-point three trillion is for roads, bridges, and highways.

Leahy: Okay.

Carmichael: Another two percent is for airports and ports.

Leahy: It’s even worse than the COVID bill.

Carmichael: Even worse.

Leahy: It’s only seven percent.

Carmichael: But let’s remember, it’s only seven. Let’s remember that when Biden was the vice president led by Obama to pass an $8 billion shovel-ready bill. No one could ever name anything that was built with eight billion dollars. In fact, Obama even joked, it’s hard to be shovel-ready. I guess there wasn’t any. And then the Democrats laughed because they all knew that the $8 billion for so-called shovel-ready stuff were going to special interests.

And so that’s what’s happened here. Now, the remaining almost 500 billion, now of the two-point three trillion so-called infrastructure bill, less than 25 percent is actually labeled under the category of transportation. Of that 70 billion is for mass transportation relief. Now, excuse me, 80 billion is for mass transportation. Did you know that the COVID relief bill had 70 billion for mass transit?

Leahy: Interesting. I didn’t know that.

Carmichael: But now you’ve got 80 billion on top of the 70 billion. So you now have $150 billion for mass transit. Now, you may recall, in Reagan’s years the mass transit, by the way, is for very isolated areas, and most of them are blue. So this is really a throw down or a throw-up, whatever you want to call it, to big labor.

Leahy: It’s a redistribution of income.

Carmichael: It’s a redistribution of income without the accompanying tax because these are not tied together. They don’t pass together. One can pass and the other can fail and it would still pass, which would drive our federal deficit. Biden has also said that this money is being spent over eight years. So this could be similar to the Keystone pipeline and the projects could be started, and then projects could be defunded.

And so that’s possible. But here’s where the money is being spent, it’s being spent on buying millions of cars. Electronic vehicles. It’s being spent on 500,000 charging stations. It’s being spent on tens of billions of dollars of green stuff. Now, when I say green stuff, the U.S. government doesn’t build anything. It doesn’t make anything. So what you have is you have dozens of billionaire special interests who pull themselves up to the table and have gotten the Democrats. Because Republicans are not going to sign on to this. This is a billionaire’s special interest bill where over one and a half-trillion dollars is going to billionaires.

Leahy: When you say that, be more specific about which billionaires. Billionaires who are making electric vehicles?

Carmichael: Yes. That are making electric vehicles or making the charging stations or making the other things that are so-called green. And so the executive, this is a lot like what we were talking about with Senator Mark Pody who said if you are going to buy condoms under this particular bill, you have to buy a particular brand name.

Leahy: Right. Whoever makes those is the one benefiting.

Carmichael: It’s the one benefiting. That’s the one that had the lobbyist get their name in that bill to force taxpayers to spend more money to buy their products. That’s exactly what is going in here. And this is why big business now is so supportive of Democrats. They don’t want the taxes and they’re going to fight the taxes, and they’ll probably win most of that battle.

But what they are going to get is trillions of dollars of spending, because this is on top of the $1.9 trillion so-called relief bill, which, as we said, is only nine percent of that. So you have 1.7 trillion-plus 2.3 trillion. That’s $4 trillion. Trillion is a number that most of us can’t even talk about.

Leahy: You can’t comprehend how big it is.

Carmichael: And somebody was talking about 100,000 Brazilians. And I asked somebody, is a Brazilian, more than a trillion? (Laughter)

Leahy: Crom, that’s kind of funny.

Carmichael: These words. It used to be a billionaire here or a billionaire there. Now it’s literally a trillion here or a trillion there.

Leahy: And this all began with if you remember that famous statement by former minority leader in the Senate, Everett Dirksen? He said, a billion here or a billionaire there. Sooner or later, it adds up to real money.

Carmichael: And I want to try to put this into context in terms of just the multiples of it. If you have one dollar, that’s not a lot. If you have a thousand dollars, that’s not a lot.

Leahy: No.

Carmichael: But if you add three zeros, it’s a million.

Leahy: That’s a lot.

Carmichael: Okay, well, it’s a lot compared to a thousand.

Leahy: It’s a lot compared to a thousand. It’s for an individual.

Carmichael: Yes, well, the point I’m trying to make is that a person who has a million dollars is in pretty good shape. But if they retire on a million dollars, they’re going to live a modest life in retirement. If you add three zeros to a million you have a billion. Now, that’s way up there.

Leahy: Now that’s real money.

Carmichael: That’s real money. For the average American, that is an astounding amount of money. Add three, zeros to a billion, and you get a trillion.

Leahy: It’s really hard to conceptualize that.

Carmichael: Here’s the key thing. It’s a thousand times more. Just as each one that we’ve talked about is a thousand times more. When you get to where you are at a trillion if we start getting to where we’re throwing around trillions, that leads to hyperinflation. At some point, the jig is up.

Leahy: Aren’t we on a path to hyperinflation though?

Carmichael: It’s interesting. A friend of mine said, you know, the stock market tends to go up more when Democrats are in office than when Republicans are in office. And I scratched my head about that, and I went and looked and it’s true. But Democrats spend a whole lot more money than Republicans do when they’re in charge. And the greater the government spending, the more liquidity there is. And the moral liquidity goes to find places to land which is in the asset class. Now, Democrats claim that they are for the little guy, the opposite is absolutely true.

Leahy: Totally the opposite. There was a congressman from Indiana named Congressman Banks. He was on Tucker Carlson last night, and he said, look, let’s face it. Right now, it’s the Republican Party that’s the party of the middle class and working Americans, not the Democratic Party.

Carmichael: No, no. But this gets a little bit like your Victor Davis Hanson. All of these things, which is the up is down and down is up. Left is right, right is left. This is exactly the same thing. The Democrats have to trick people who are in the middle class or who are lower-income, they have to trick people to vote for them because all of their policies hurt the middle class.

Leahy: And the way they trick them is, they tell lies constantly. And they’re repeated by the mainstream media and Big Tech.

Carmichael: And then they give them a few hundred bucks.

Leahy: Exactly.

Listen to the second hour here:

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Tune in weekdays from 5:00 – 8:00 a.m. to the Tennessee Star Report with Michael Patrick Leahy on Talk Radio 98.3 FM WLAC 1510. Listen online at iHeart Radio.