Didn’t Fluffy Fix’em?

Fluffy obama has poured billion$ after billion$ into two segments of the auto industry-to what end? Both Gov’t Motors and Chrysler are either in bankruptcy or comtemplating entering into it. Without the porkulus payments, they both would have arrived at the same place-only sooner and cheeeeeeeper!! The taxpayers would have “saved” those many billion$!! So, where did the billion$ and billion$ go? They went primarily to shore up the United Auto Workers’ retirement and benefits funds-secondarily, 10% of the Gov’t Motors’ share went to the public bond holders for their 29% share of the company. In any other society, the Fluffy administration would be either guilty of first degree felony theft or first degree fraud!! Tell me the Fluffy plan to control the auto industry ain’t 99% political bu!!$hit….!!

Increasing numbers of Chrysler dealers are disputing the bankrupt automaker’s claim that it selected dealerships for closure on purely economic grounds, and they have filed a suit against the automaker in U.S. bankruptcy court. “My business is being stolen from me under the guise of the bankruptcy laws [and] given to another dealer down the street,” Jim Anderer, owner of Island Jeep in Lindenhurst, N.Y., told Reuters. Like many of the 789 Chrysler dealerships slated for closure, Anderer claims his retail outlet was profitable.
Many of the closed dealers were also major donors to Republican candidates and political action committees, a review of campaign finance data from the Federal Election Commission shows. This has led to accusations that Fluffy obama’s auto task force has been playing political favorites, first by forcing Chrysler into bankruptcy, and then by targeting dealerships for closure that funded Der Fluffmeister’s political enemies.

On The GM Side: The bankruptcy of General Motors now appears inevitable, after a majority of bondholders refused to convert their loans to shares and the Government pledged up to $30 billion more to the company to help it survive the months it will take to restructure. GM is expected to file within days for a Chapter 11 “surgical bankruptcy”, which will lead to it being restructured, perhaps within months.
Under the proposed rapid bankruptcy plan, parts of the company deemed viable would be transferred to a new company that would be majority owned by the US Government. The Center for Automotive Research warned last week that once the GM bankruptcy reached the courts, it could take unexpected turns, with unexpected impacts for overseas operations. In a study released this week, the center warned that a protracted and disorderly bankruptcy of GM and Chrysler could have dire consequences, including immediate loss of 90 per cent of jobs in two car companies, bankruptcy of several parts manufacturers, a gradual gain of market share by Ford, but 70 per cent of former GM production being taken up by imports. The result would be the loss of nearly 2 million jobs in the US economy by the end of next year, compared with about 240,000 direct and indirect jobs if the GM bankruptcy was handled swiftly and smoothly within 90 days.
Once the latest funds are provided, Fluffy will have up to 70 per cent of the new company, taking his total investment to more than $45 billion, one of the biggest bail-outs in history. The Canadian Government will also provide funds and have a small equity stake. As this outright fraud continues to unfold, the United Auto Workers will emerge with just under 20 per cent — roughly half the holding originally proposed after days of negotiations over cutting benefits, closing plants and the union taking over health fund obligations for retired GM workers. Bondholders will have less than 10 per cent and current common stock shareholders less than 1 per cent—if anything. GM shares fell 29¢ to $1.15. The stock has lost 64 per cent this year.
TheFluffy government is bracing for political fallout from the bankruptcy. Not only will it have to deal with job losses in the car industry and throughout the country, as more than 3000 dealerships close, but many state and private pension funds were holders of GM bonds.

Hear The Latest? [Have ya heard the latest in the various states’ quest to “soak-the-rich, Fluffy Style?” So much for the socialist “Fluffy-isms!!” Social engineering and class warfare don’t work; Taxcuts do!! If Maryland had cut their state rate to say 4%… those high earners would be scrambling to find a worthwhile industry, enterprise to invest in, increasing their taxable income while the rates would remain low and would have still paid more dollars into the state treasury!!] Maryland couldn’t balance its budget last year, so the state tried to close the shortfall by fleecing the wealthy-raising the top marginal income-tax rate to 6.25%. Because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%!! Governor Martin O’Malley, a dedicated class warrior, declared that these richest 0.3% of filers were “willing and able to pay their fair share.” The Baltimore Sun predicted the rich would “grin and bear it.”
One year later, nobody’s grinning. Maryland’s “million-dollar filers” are down by 33 percent [1,000]. On those missing returns, the government collects 6.25% of nothing. So far, Millionaires have paid $100 million less in taxes than they did last year-even at higher rates!!
However, this is one reason that depending on the rich to finance government is so ill-advised: Progressive tax rates create mountains of cash during good times that vanish during recessions. For evidence, consult California, New York and New Jersey.
It’s easier than the redistributionists think for the high earners to leave the state. Christopher Summers, president of the Maryland Public Policy Institute, notes: “Marylanders with high incomes typically own second homes in tax friendlier states like Florida, Delaware, South Carolina and Virginia. So it’s easy for them to change their residency.”
All of this means that the burden of paying for bloated government in Annapolis will fall on the middle class. Thanks to the futility of soaking the rich, these working families will now pay Mr. O’Malley’s “fair share.”

Til Nex’Time….