Taypayer Handouts and Ripoffs

Cash for Caulkers Could Seal $12,000 a Home

Under President's proposal, homeowners would be reimbursed for energy-efficient appliances and insulation.

December 9, 2009

CNNMoney.com - President Obama proposed a new program Tuesday that would reimburse homeowners for energy-efficient appliances and insulation, part of a broader plan to stimulate the economy.

The administration didn't provide immediate details, but said it would work with Congress on crafting legislation. Steve Nadel, director at the American Council for an Energy-Efficient Economy, who's advising on the bill, said a homeowner could receive up to $12,000 in rebates.

The proposal is part of the President's larger spending plan, which also includes money for small businesses, renewable energy manufacturing, and infrastructure.

We know energy efficiency "creates jobs, saves money for families, and reduces the pollution that threatens our environment," Obama said.

"With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs."

The program contains two parts: money for homeowners for efficiency projects, and money for companies in the renewable energy and efficiency space.

The plan will likely create a new program where private contractors conduct home energy audits, buy the necessary gear and install it, according to a staffer on the Senate Energy Committee and Nadel at the American Council for an Energy-Efficient Economy.

Big-ticket items like air conditioners, heating systems, washing machines, refrigerators, windows and insulation would likely be covered, Nadel said.

Based on earlier bills, consumers might be eligible for a 50% rebate on both the price of the equipment and the installation, up to $12,000, said Nadel. So far, there is no income restriction on who is eligible. That would mean a household could spend as much as $24,000 on upgrades and get half back.

Homes that take full advantage of the program could see their energy bills drop as much as 20%, he said. The program is expected to cost in the $10 billion range.

It's not clear how the home efficiency plan would be administered - the government may issue rebates to consumers directly, homeowners might get a tax credit, or the program could be run via state agencies.

If consumers have to spend a lot of money up front to get the credit, it could throw a wrench in the works, David Kreutzer, an energy analyst at the Heritage Foundation, told CNN.

"This will not be something that's attractive to people who are having trouble already making their budget payments month to month or week to week," he said.

To keep consumers from having to spend thousands of dollars before getting reimbursed, Nadel said, one idea is to have contractors or big box retailers pay part of the cost up front...

Obama's new spending plan also calls for renewable energy companies to get additional support. That could come in the form of loan guarantees - basically, money the government uses to secure loans for startups.

In the original stimulus bill passed earlier this year, $6 billion was earmarked for such loan guarantees. But then lawmakers took away $2 billion to fund Cash for Clunkers - the popular program that paid people to turn in their old cars.

The $4 billion from the original bill has funded about $40 billion in loans, said the staffer on the Senate Energy Committee. Meanwhile, firms are hoping for another $4 billion in loan guarantees, since they have another $40 billion worth of projects that need funding.

A bill on energy efficiency reimbursements already has supporters in the Senate.

"Not only will [such legislation] increase our energy security and transform our energy infrastructure to a modern, clean and efficient one," Senate Energy Committee Chairman Jeff Bingaman, D-N.M., wrote in a recent op-ed column in the Hill, a Capitol Hill newspaper. "But it also will position the United States to lead in the development of clean energy technologies."

'Cash for Clunker' Appliances Program Launching Next Year

December 30, 2009

AP - Next year may be to appliance buyers what 2009 was to car buyers: time for government rebates.

Modeled after the popular Cash for Clunkers program, which was intended to get cars with low gas mileage off the road, a federal appliance rebate program is launching in early 2010. It offers a boost to people buying energy-efficient clothes washers, refrigerators and other appliances — those that qualify for the federal "Energy Star" designation — and to manufacturers, whose sales fell 10 percent in 2008 and another 12 percent through mid-December this year.

The program has only $300 million, one-tenth as much money as Cash for Clunkers, or about $1 per U.S resident, so it could run out fast. States are receiving roughly the same amount per capita, with California getting the most at $35.2 million, but what's eligible varies by state.

Here's what to keep in mind as you decide whether to swap your washer for that supposedly whisper-quiet model or your old white refrigerator for a shapely stainless-steel number.

WHAT'S MY STATE OFFERING? For state by state information, visit the federal Web site and click on "state appliance rebate program" on the right.

California residents, for example, can get cash back on three types of appliances: $100 for washing machines, $75 for refrigerators, and $50 for room air conditioners. Wisconsin offers rebates on washers and fridges plus $200 for boilers or furnaces, $75 for central air conditioning or geothermal heat pumps, $50 for freezers, and $25 for dishwashers.

(Also in effect through Dec. 31, 2010, is a federal tax credit for 30 percent of the cost up to $1,500 on equipment for a primary residence.)

HOW DO I KNOW IT'S A DEAL? Joe McGuire, president of the Association of Home Appliance Manufacturers, said buying Energy Star appliances can mean hearty power savings. But it's important to make sure you save enough in water and energy bills over time to justify paying for a new unit.

"A good example is a 10-year-old clothes washer," he said. "With Energy Star, you could reduce utility costs by $145 a year and save 5,000 gallons of water a year."

At that rate, a typical $500 to $700 dishwasher would pay for itself in four years. In larger households that use more power and water for laundry, the payoff can come much sooner.

It's probably not worth replacing appliances less than five to seven years old just because rebates are available, unless you plan to upgrade to a far more efficient model. That's because newer appliances are already more efficient. But switching from a top-loading to front-loading clothes washer could in itself cut water use enough to make a purchase worthwhile.

The older the appliance, the greater the possibility of saving money by buying a new one. McGuire says a 20-year-old refrigerator uses three times as much power as Energy Star-approved units made today, some of which run on less than 60 watts.

"You would save over $250 a year on an average 20-year-old refrigerator if you replaced it," McGuire said. "That's about $1,200 over five years. That is real savings to consumers."

The Department of Energy estimates Americans saved more than $19 billion on utilities last year using Energy Star products.

WHEN WILL IT END? Rebates will be available until February 2012 or the money's gone. And Jen Stutsman, a spokeswoman for the Department of Energy, expects the funds to run out fast.

Federal Employees Routinely Make Six Figure Salaries

December 11, 2009

Average pay $30,000 over private sector

USA TODAY - The number of federal workers earning six-figure salaries has exploded during the recession, according to a USA TODAY analysis of federal salary data.

Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession's first 18 months — and that's before overtime pay and bonuses are counted.

Federal workers are enjoying an extraordinary boom time — in pay and hiring — during a recession that has cost 7.3 million jobs in the private sector.

The highest-paid federal employees are doing best of all on salary increases. Defense Department civilian employees earning $150,000 or more increased from 1,868 in December 2007 to 10,100 in June 2009, the most recent figure available.

When the recession started, the Transportation Department had only one person earning a salary of $170,000 or more. Eighteen months later, 1,690 employees had salaries above $170,000.

The trend to six-figure salaries is occurring throughout the federal government, in agencies big and small, high-tech and low-tech. The primary cause: substantial pay raises and new salary rules.

"There's no way to justify this to the American people. It's ridiculous," says Rep. Jason Chaffetz, R-Utah, a first-term lawmaker who is on the House's federal workforce subcommittee.

Jessica Klement, government affairs director for the Federal Managers Association, says the federal workforce is highly paid because the government employs skilled people such as scientists, physicians and lawyers. She says federal employees make 26% less than private workers for comparable jobs.

USA TODAY analyzed the Office of Personnel Management's database that tracks salaries of more than 2 million federal workers. Excluded from OPM's data: the White House, Congress, the Postal Service, intelligence agencies and uniformed military personnel.

The growth in six-figure salaries has pushed the average federal worker's pay to $71,206, compared with $40,331 in the private sector.

Key reasons for the boom in six-figure salaries:

• Pay hikes. Then-president Bush recommended — and Congress approved — across-the-board raises of 3% in January 2008 and 3.9% in January 2009. President Obama has recommended 2% pay raises in January 2010, the smallest since 1975. Most federal workers also get longevity pay hikes — called steps — that average 1.5% per year.


• New pay system. Congress created a new National Security Personnel System for the Defense Department to reward merit, in addition to the across-the-board increases. The merit raises, which started in January 2008, were larger than expected and rewarded high-ranking employees. In October, Congress voted to end the new pay scale by 2012.


• Pay caps eased. Many top civil servants are prohibited from making more than an agency's leader. But if Congress lifts the boss' salary, others get raises, too. When the Federal Aviation Administration chief's salary rose, nearly 1,700 employees' had their salaries lifted above $170,000, too.

"Freedom and initiative are being replaced by ever higher taxation, regulation and centralization of power in Washington. Our economy is now stagnant and our standard of living is declining. Each year government takes a bigger share of our earnings, employs more and more of our people, enacts more rules that strangle our economy, and controls more and more of our lives. In the enjoyment of plenty, have Americans lost the memory of freedom? When citizens are willing to sacrifice their liberty for security, they will have neither liberty nor security and will soon find themselves living under tyranny." - Ellen Sauerbrey, The Spark That Has Triggered Rebellion, American Thinker, September 13, 2009

"Fiscal spending is running wild, and our president predicts a budget deficit of $9 trillion dollars over the next ten years. The Congressional Budget Office (CBO) says spending has to be cut 8% permanently over the next several years. In July alone, federal spending rose 26%, as revenues fell 6%. Corporate tax receipts fell 58%, as individual revenues fell 21%. The official economic contraction is the worst since the great depression. Can you imagine what it really is? 9.4% unemployment is front-page news, but you didn’t hear about the 4.7% loss in salaries and wages of 4.7% for the 12 months ended in June. There are more government employees now than all those employed in manufacturing and construction. How is it that state employees now make 40% more than the average income in non-governmental jobs? What a perversion of government. It is no wonder that the US poverty rate is higher than in Mexico and Turkey." - Bob Chapman, Fairy Tales of Recovery, Reality of More Failures, The International Forecaster, September 3, 2009

"The real Obama agenda is to influence Americans in such a way that society becomes dependent on the government to care for them. For health care, this means, pass anything, knowing that once it has passed, the dependency and complacency of American citizens will ensure it cannot be reversed... Introducing horrendous legislation to increase American dependency not only feeds into liberal ideology, but also expands the liberal voting base. For example, millions of Americans currently rely on Medicare, Social Security, and other government handouts for health care and economic support... Now, instead of striving to become doctors or business leaders, many of our youth have come to rely on and expect the government to care for them. Not only do they hear liberal propaganda on the news and in the classroom, millions have now witnessed and experienced it in their own homes. Cash for Clunkers, extended unemployment, and government bailouts constantly reinforce to Americans that Uncle Sam will pick up the bill... President Obama knows that once health care is expanded, no legislator in the future will be able to reverse this reckless program. Americans will become too complacent to object and eventually dependency will set in. Even President Clinton recently declared that no bill needs to be perfect, it just needs to be passed. In other words, the goal is not good legislation; it is to foster American dependency forever at the expense of American Liberty and economic freedom... The examples of American dependency are becoming endless... Not only will America tax itself into economic poverty, but it will continue to foster dependency in the third world. Americans will become increasingly accustomed to government intervention until politicians control every aspect of your life... America continues to follow this same road to destruction. Despite being the leader in business innovation, economic prosperity, and health care, Americans are duped into accepting tyranny on a daily basis. - Paul Murdock, Where Has the Future Gone?, Campaign for Liberty, November 24, 2009

Those that have prospered from our economic demise have been the politburo-like corporate stockholders of our government officials. In addition, as Main Street plunges into despair, more and more federal bureaucrats are making six figures. In fact, it was recently revealed that the average federal employee now makes $30,000 more than private sector employees. Only in a communist system does the government class prosper while the rest of us wait in bread lines. Now these same bureaucrats are contemplating further bailouts for their corporate banking buddies. Since the initial Bush bailouts and their expansion under President Obama, have come some even more dire threats to our freedom. If we fail to rise to defeat these threats, I am afraid that we will see the pendulum become affixed permanently in the direction of dominion and slavery. - Adam Murdock, You Americans are so Gullible!, Infowars.com, December 13, 2009