Sunday, November 17, 2013

When the government shutdown began on Oct. 1, it forced the closing of Head Start facilities in several states, stopping educational services for thousands of low-income kids. So heart-rending was this spectacle that a pair of Texas philanthropists gave $10 million to keep the programs going.

Democratic Rep. Sheila Jackson Lee of Texas appeared at a rally of parents protesting the Head Start closures, holding up a child's chair and declaring, "Here is the empty chair of the next astronaut. Here is the empty chair of a captain in the United States military."

House Republicans were not about to be accused of depriving poor children. They approved a measure to provide funding for Head Start, with one member attesting, "As we work our way out of this government shutdown mess, we shouldn't let some of our most vulnerable citizens, low-income children with no recourse, suffer."

That was not good enough for President Barack Obama, who prevailed in his insistence that the House agree to fund the government across the board through Jan. 15. Amid the bitter quarrel, no one bothered to ask whether Head Start is actually serving the purposes that justify its budget.

Maybe that's because they know the answer is no but aren't willing to face being denounced for cruelty to disadvantaged tots. For decades, Head Start has consistently disappointed anyone who expected it to make a real difference in the fortunes of the poor.

A 2010 study by the Department of Health and Human Services concluded that though there were modest benefits to participating kids, they soon evaporated. "The benefits of access to Head Start at age four are largely absent by first grade for the program population as a whole," it admitted. "For 3-year-olds, there are few sustained benefits."

A federal social program that burns though billions of dollars, year in and year out, despite showing scant value to those it's supposed to help? That may sound like a regrettable anomaly. In fact, as David Muhlhausen documents in his new book, "Do Federal Social Programs Work?" (Praeger), it's pretty much the norm.

The author, a longtime scholar at the conservative Heritage Foundation, appears to have reviewed every study of these undertakings, as evidenced in 47 pages of footnotes. The overwhelming majority, he finds, don't accomplish anything resembling their stated mission, and some even "produce harmful outcomes."

The dismal results might be excused as the price of showing concern for people in genuine need, if not for the fact that these efforts cost so much -- $443 billion in 2011, exceeding 3 percent of gross domestic product.

This book, whose importance is inverse to its likely readership, excludes Social Security, unemployment insurance and veterans' benefits because they must be earned through work.

Muhlhausen concentrates on the Great Society programs enacted in the 1960s under President Lyndon B. Johnson, which were meant to "eradicate the fundamental causes of poverty by providing opportunity to the poor" and "ultimately make redistribution unnecessary." So far, you may have noticed, they have accomplished neither objective.

There was a sound idea behind LBJ's approach, namely that the way to help the disadvantaged was to give them the tools to become prosperous. Head Start would confer a boost in learning that would have a permanent payoff. The Job Corps would equip them with the skills to earn good wages.

Upward Bound would prepare them for college. But the federal government didn't really know how to do these things.

Anything coming out of Heritage will be dismissed by critics as right-wing propaganda, but Muhlhausen backs up his findings with masses of data. He also finds comparable results for Republican social programs aimed at reducing teen sexual activity and strengthening families. His overall conclusions, in any case, are not particularly novel or radical.

Isabel Sawhill, co-director of the liberal Brookings Institution's Center on Children and Families, wrote in 2010 that in the 10 most rigorous assessments of individual federal social programs, "nine of these evaluations found weak or no positive effects." When I contacted Ron Haskins, a welfare expert also at Brookings, he cited a few successful ventures but said, "I generally agree that social programs do not work."

No quantity of stirring words or noble intentions can justify expensive measures that leave little trace behind. Our elected officials generally agree that withholding money from social programs shortchanges the poor. They fail to notice that for the most part, providing money has the same effect.
To paraphrase a famous Mark Twain quote, suppose you passed a farm bill. And suppose you passed a food stamp bill. But I repeat myself.

Hard as it may be to believe, 80 percent of the farm bill being hammered out by the Senate and the House of Representatives is made up not of agriculture programs, but of food stamps. And if that sounds upside down to you, you clearly don’t live “inside the Beltway,” where Orwellian logic is the order of the day.

Why are food stamps rolled into the legislation? They’re included “purely from a political perspective,” Sen. Thad Cochran (R-Miss.), ranking member of the Senate Agriculture, Nutrition, and Forestry Committee, said earlier this year. “It helps get the farm bill passed.”

At least it used to. House members who had tired of this business-as-usual practice rebelled this year, and managed to pass a version of the farm bill that (unlike its Senate counterpart) took food stamps out. When The Washington Post editorialized about the House bill, it listed this among the legislation’s “good points,” adding:

“[F]or the first time in many years, representatives passed agriculture-support programs separately from food stamps, ending the old log-rolling arrangement between urban and rural delegations that insulated both programs from scrutiny on the merits.”

Unfortunately, this is Washington, where most politicians do their hardest work insulating programs from scrutiny on the merits.

Most Americans, however, favor the House’s action. In a “Food Demand Survey” conducted by Oklahoma State University, people asked whether they supported or opposed the following statement: “Separate the food stamp program from the farm bill and debate its merit separately from farm supports and subsidies.” Support came in at 73 percent.

Separation isn’t the only issue though. The entire purpose of separating food stamps from agriculture programs is to achieve real reform. While there’s a lively debate going on regarding food stamp reform, that’s not the case when it comes to other troubling provisions of the farm bill. As has been the case since FDR was president, agriculture policy is a government- run behemoth that would make a Soviet central planner blush.

The most expensive single farm program subsidizes about 62 percent of the premiums that farms pay for crop insurance. Yet instead of finding ways to reduce the load on taxpayers, the House and Senate versions would expand this program.

Or take the sugar program. Sugar prices have generally been double the world price for decades. It’s largely due to the government dictating how much sugar can be sold, and imposing quotas on imports -- quotas designed solely to protect the market share of domestic producers. Every sugar-sweetened product costs more to make, adding to everyone’s grocery bills. Both the House and Senate versions of the farm bill keep the sugar program intact.

Meanwhile, as I’ve detailed in previous columns, the bulk of agriculture subsidies go not to the small, struggling farmers that most Americans envision, but to huge “agri-businesses” with annual incomes well in excess of $1 million.

Yes, the House and Senate are finally dropping the direct payments made for years to farmer of certain commodities, such as corn, cotton, wheat and rice -- subsidies so indefensible, the American Farm Bureau Federation has called for their repeal. But they’re adding new programs that could prove even costlier, such as one that would force taxpayers to cover even minor losses suffered by farmers.

“A farm bill should serve the interests of the American people,” writes Heritage Foundation farm-bill expert Daren Bakst. “This first starts with taking politics out of the bill.” That means considering food stamps separately and making other needed reforms. Raising another bumper crop of subsidies and bad policy is simply unacceptable.

Obama National Security Adviser Susan Rice: "The United States does not accept the legitimacy of continued Israeli settlement activity"

From Jihad Watch / Posted by Robert Spencer

What did she say about the "Palestinian" jihadists' vows to obliterate Israel entirely? What did she say about the genocidal Jew-hating rhetoric regularly featured on "Palestinian" TV?

"Obama national security aide chides Israel over settlements," from Reuters, November 15 (thanks to Jerk Chicken):
President Barack Obama's top national security aide on Thursday blamed Israeli settlement expansion announcements for some of the latest tensions between Israel and the Palestinians as US-brokered peace talks between the two sides have faltered. 
In a speech to a Washington think tank, Susan Rice, Obama's national security adviser, said the United States remained committed to Middle East peacemaking, but made clear that it saw Jewish settlement construction plans as hampering those efforts.
"We have seen increased tensions on the ground. Some of this is a result of recent settlement announcements. So let me reiterate: The United States does not accept the legitimacy of continued Israeli settlement activity," she said....

Saturday, November 16, 2013

Thousands of Doctors Dropped by Insurer After Obamacare Funding Cuts
By Newsmax Wires



UnitedHealth Group has dropped thousands of doctors from its networks in recent weeks, leaving many elderly patients unsure whether they need to switch plans to continue seeing their doctors, the Wall Street Journal reported Saturday.

The insurer said in October that underfunding of Medicare Advantage plans for the elderly could not be fully offset by the company's other healthcare business.

The company also reported spending more healthcare premiums on medical claims in the third quarter, due mainly to government cuts to payments for Medicare Advantage services.

"Medicare Advantage, an alternative to traditional Medicare, combines hospital and doctor coverage and often includes prescription drugs and perks like gym memberships," the Journal explained. "Enrollment has more than doubled since 2004 to 13 million in 2012, which represents about 27 percent of Americans on Medicare.

"The federal government pays private insurers a per-capita fee to manage the benefits. The rate is currently about 12 percent more than the average Medicare patient spends annually. The Obama administration plans to cut those extra payments to insurers by about $150 billion over the next 10 years to help pay" for the Affordable Care Act, or Obamacare.

Some experts told the Journal that they expect enrollment in Medicare Advantage plans to decline sharply if that occurs.

The Journal report said that doctors in at least 10 states were notified of being laid off the plans, some citing "significant changes and pressures in the healthcare environment." According to the notices, the terminations can be appealed within 30 days.

Tyler Mason, a UnitedHealth spokesperson, was not immediately available for comment when reached by Reuters.

At least two state medical societies are seeking temporary restraining orders against UnitedHealth and other state attorney generals are investigating the firm.

Attorneys in Connecticut, acting on behalf of the Hartford and Fairfield County Medical Associations, filed suit Friday after UnitedHealth dropped doctors serving the popular Medicare program, The Courant reported.

Other states expressed similar anger over the changes. In Rhode Island, the state's attorney general and health department director on Friday sent letters to UnitedHealth's New England CEO, asking him to reinstate doctors until a full plan for such a transition could be put in place, Rhode Island Public Radio reported.

Rhode Island Attorney General Peter Kilmartin and Health Department director Michael Fine told United Health that they are concerned the continuity of care will be lost in the shakeup. They also noted that UnitedHealth has not notified customers of the changes, leaving that up to doctors.

But the insurer told the WSJ that its provider networks were always changing and that it expected its Medicare Advantage network to be 85 percent to 90 percent of its current size by the end of 2014.

UnitedHealth is participating in about a dozen new state insurance markets that launched on October 1 to offer subsidized health coverage under Obamacare. The insurer had said previously it planned to withdraw from some markets in 2014 because of the government funding cuts.

Another top health insurer, Aetna Inc , also warned in October that it expected slowing growth in 2014 in its Medicare Advantage plans.

Kerry tells Republican senators: "Ignore anything the Israelis say" about Iran talks

From Jihad Watch / Posted by Robert Spencer


The betrayal of our most reliable ally in the Middle East, a nation on the front lines of the global jihad, continues. "Senators Told to 'Ignore Israel' On Iran," by Elad Benari for Israel National News, November 14:
Republican senators who were briefed on Wednesday about recent talks with Iran were reportedly told to “ignore anything the Israelis say” about the issue, BuzzFeed reports. 
Members of the Senate Banking Committee who spoke to the website after a briefing by Secretary of State John Kerry and lead Iran negotiator Wendy Sherman sharply criticized the presentation.
The briefing came as part of an ongoing appeal by the Obama administration to the Senate to hold off on a new round of sanctions against Iran.
Senator Mark Kirk (R-Il.), a member of the Banking Committee, described the briefing as “very unconvincing” and, in what seems more disturbing, he said it was also “anti-Israeli”.
“I was supposed to disbelieve everything the Israelis had just told me, and I think the Israelis probably have a pretty good intelligence service,” Kirk told BuzzFeed. He added that the Israelis had told him that the “total changes proposed set back the program by 24 days.”
A Senate aide familiar with the meeting told the website that “every time anybody would say anything about what would the Israelis say they’d get cut off and Kerry would say, ‘You have to ignore what they’re telling you, stop listening to the Israelis on this.’”
“They had no details,” the aide told BuzzFeed. “They had no ability to verify anything, to describe anything, to answer basic questions.”...

Obama's Obamcare Fix is His Most Illegal Power Grab Yet

Conn Carroll / Townhall Columnist


Facing a Friday deadline from Democrats in Congress to "fix" Obamacare so that millions of Americans would not lose their current health care plans, President Obama announced Thursday that he was "offering an idea" that would enable more Americans to keep their plans.

Obama's "fix" allows insurance companies to continue selling the same individual health insurance plans they do now, but only to those individuals who currently own such policies, and only for another year. Under previously issued Department of Health and Human Services regulations, insurance companies were barred from selling such plans beginning January 1, 2013.

Mere minutes after Obama made his announcement, former-Democratic National Committee Chairman Howard Dean said on MSNBC, "I wonder if he has the legal authority to do this, since this was a congressional bill that set this up."

The short answer is, "no."

But before we examine why this latest Obama executive action is illegal, let's step back and look at two of his previous transgressions:

DACA

Frustrated by his failure to pass the DREAM Act in Congress, on June 15, 2012, Obama announced his Deferred Action for Childhood Arrivals (DACA) policy for illegal immigrants. Pursuant to a memo signed by then-Department of Homeland Security Secretary Janet Napolitano, Illegal immigrants who came to the United States before they were 16, were younger than 31, had been in the United States for at least 5 years, were either in school or had graduated high school, and had not committed “significant” crimes, could now be given “deferred action” status.

Illegal immigrants who are awarded "deferred action" status are allowed to obtain a work permit, get a Social Security number, and apply for a driver’s license. But Napolitano said the status is temporary and must be renewed every two years.

Nothing in any federal statute grants Obama or Napolitano the legal authority to create such a program. Instead, the Obama administration claimed that presidents have long exercised prosecutorial discretion on immigration enforcement. And it is true. There is a well established history, and case law supporting it, of presidents granting non-enforcement status to for particular groups for foreign policy or humanitarian reasons (like Haiti after a natural disaster).

But these acts of discretion were always done on an ad hoc, case-by-case basis. They were not a wholesale rewrite of immigration law, let alone one that had been recently specifically rejected by Congress.

Employer Mandate

Fast forward to July 2nd of this year, when the Treasury Department announced new regulations that delayed enforcement of Obamacare's employer mandate by a year. Nothing in Obamacare authorizes Obama to do this, in fact the statute very clearly says that the employer mandate must take effect "after Dec. 31, 2013."

So how did Obama justify changing the date with out Congressional approval? He cited a completely separate portion of the Internal Revenue Code, Section 7805(a), which the IRS has used in the past to delay enforcement of new tax laws. But, as I wrote at the time, 7805(a) had never been used on the scale that Obama used it:
IRS has previously used the section to delay a penalty under the 2007 Small Business and Work Opportunity Act and a tax hike in the 2011 Airport and Airway Extension Act.
But both of those delays were for less than a year (six months and one month, respectively), only applied to minor portions of much broader legislation, and were issued the same year the original legislation passed.
By contrast, the Obamacare employer-mandate delay was issued more than three years after the original law passed, will be in effect at least a year (possibly longer), and involves a major cost saving feature [$12 billion] of the underlying legislation.
The Latest Fix
Moving back to the if-you-like-your-plan-you-can-keep-it fix, the Obama administration is again unable to identify anything in Obamacare that gives them this authority, and they couldn't find anything in underlying HHS statutes either. Instead, they are citing a 1985 Supreme Court case, Heckler v. Chaney, which they say gives them the necessary enforcement discretion.

But Heckler v. Chaney had nothing to do with changing existing law. In that case, death row inmates sued the Food and Drug Administration in an effort to force them to apply existing regulations to the use of drugs used for lethal injection. The Court found that the FDA had discretion over how to enforce their existing regulations.

But the latest Obamacare fix is not just a decision not to enforce existing regulations, it creates brand new ones, including a requirement for what insurers must include in their policy cancellation letters.

More importantly though, if Obama can get away with citing Heckler v Chaney to rewrite Obamacare, he can cite it to rewrite any law, at any time he wants, for whatever reason.

From his illegal recess appointments to his illegal Solyndra contract rewrite, this Obamacare rewrite is Obama's most illegal act yet.


You Know You're in a Blue State When...The Last Tax Increase Needs Another Tax Increase to Fix It  
John Ransom / Townhall Columnist

If you get the feeling we’re surrounded by fools, you’re not alone.

Fools crowd about us everywhere. But nowhere do the fools congregate more than in Illinois, both off the lake, upstate in Chicago, and downstate in Springfield where governors go to get indicted.

For example, downstate, in Springfield, the Illinois Legislature in 2011 hiked corporate taxes 30% and income taxes 67% in attempt to stop government pensions from bankrupting the state.

“The corporate income tax will rise from 7.3% to 9.5%, a 30 percent increase, becoming the fourth-highest state corporate income tax in the United States,” said the Tax Foundation at the time, “and the fourth-highest combined national-local corporate income tax in the industrialized world.”

Not only has Illinois not stopped the pension crisis, which now tops $100 billion, but they have turfed the economy, especially the creation of new jobs. And it's new jobs that really create new tax revenues.

The unemployment rate stands at 9.2% in Illinois versus 7.3% in the rest of the country.

People warned Illinois pols at the time that the precipitous rise in taxes would only hurt the economy and chase businesses to other more tax-friendly states.

"It's like living next door to 'The Simpsons', you know the dysfunctional family down the block," quipped Indiana Governor Mitch Daniels, the state just to the east (and south) of Illinois.

And indeed it is.

But business is still booming for the politicos.

Because there is only one thing better than a sock-it-to-the-corporation tax increase.

And that’s an EXEMPTION to the sock-it-to-the-corporation tax increase.

Who needs lobbyists when you have friends like these?

Businesses are lining up in Illinois to ask for special carve-outs and exemptions from the tax, because you know... taxes are bad for business (rimshot!).

Everyone knows that.

Or at least the folks at Navistar and Sears know that.

According to the Wall Street Journal they are amongst the companies that got carve-outs worth $500 million in tax breaks to stay in Illinois, with Office Depot on deck waiting for their carve-out next.

“In addition to Office Depot,” says the WSJ “at least four companies are awaiting word on special tax credits that require legislative approval. A proposal offering Archer Daniels Midland Co. ADM incentives to remain in the state and hire new workers also failed to pass in the special session.”

But that’s only because we have elections coming up.

Why give Office Depot-- or ADM-- for free what politicos can charge them for twice?

Not to be outdone, the fools upstate in Chicago just saw their credit rating from Fitch’s rating service drop, “citing the city's sluggish economy and its inability to find a solution to its union pension obligations,” reports CNBC.
 
In July, Moody’s downgraded Chicago debt saying: “While the onus is on the state to reduce the city's pension obligations, it is the purview of the city to increase revenues to support those obligations. Absent significant growth in the city's operating revenues, escalating pension funding requirements will increasingly strain the city's operating budget, as pension outlays compete with other spending priorities, including debt service and public safety.”

Yeah, like cops are getting laid off. Ha!

In Chicago? Riiiight.

Don’t you know that’s someone’s nephew?

The solution, as Moody’s points out, is more and higher taxes. Politicos have gilded pensions so thoroughly that there is no chance in getting relief from pension spending in Illinois. And that income tax increase passed in 2011 was only supposed to be temporary anyway.

So right on time State Rep. Naomi Jakobsson (D), who represents land of the endless highway, at the intersection of highways US-57 and US-74 has proposed a tax increase that would raise taxes on anyone making more than $18,000 per year.

I think I made more than that in my first job in 1979 (Bellman, Evanston Holiday Inn, pictured below).

Supporters say that the tax would raise “as much as an additional $2.4 billion in revenue under one scenario,” reports the Southern.com.

And you know what that means?

When you’re faced with a $100 billion pension shortfall and you raise $2.4 billion from middle class families, you can do a lot more carve-outs for campaign-friendly corporations.

True, unemployment in Illinois won’t get better, but for a lot fools’ nephews, it won’t get worse either.

Wink.