Ron Paul argues for earmarks

From: The Los Angeles Times

'It's like a tax credit,' the Texas libertarian tells Fox News. 'If I can give my district any money back, I encourage that.'
By Johanna Neuman
March 15, 2009
Reporting from Washington -- Ron Paul, the Texas congressman who is the darling of the libertarian right, has more earmarks in the pork-laden $410-billion spending bill than any other Republican.

That's not according to the MSM, or the liberal blogosphere. That's what Fox News is reporting..

In an interview Tuesday night with Fox News’ Neil Cavuto, Paul not only defended his own earmarks, he argued that every penny in the federal budget should be earmarked, to improve transparency.

Paul, a fiscal watchdog who said he voted against the bill because he believes federal spending is out of control, acknowledged that $73 million in the bill passed by his colleagues "might be" going to his district on Texas' Gulf Coast for things like the intra-coastal waterway, the Texas City channel and Wallisville Lake. But he was fine with that.

"The principle of the earmark is our responsibility. We're supposed to -- it's like a -- a tax credit. And I vote for all tax credits, no matter how silly they might seem. If I can give you any of your money back, I vote for it. So if I can give my district any money back, I encourage that. But because the budget is out of control, I haven't voted for an appropriation in years -- if ever. . . .

"I don't think the federal government should be doing it. But if they're going to allot the money, I have a responsibility to represent my people. If they say, Hey, look, put in a highway for the district, I put it in.

"I put in all their requests, because I'm their representative."

On Wednesday President Obama unveiled an earmark reform bill of his own.

Paul suggested that doing away with earmarks was a back-door way for the executive branch to gain power over the legislative branch: "The whole idea that you vote against an earmark, you don't save a penny. That just goes to the administration and they get to allocate the funds. . . .

"If you don't earmark something, then somebody else spends it and there's no transparency."

And that, he said, is something Pork Enemy No. 1 Arizona Sen. John McCain just doesn't get.

Cavuto: "But would you argue, then, sir, that, when John McCain was here saying the whole earmark thing itself is what's out of control?"

Paul: "Oh, no, no. He -- he -- he totally misunderstands that. That's grandstanding. If you cut off all the earmarks, it would be 1% of the budget. But, if you vote against all the earmarks, you don't cut one penny. That is what you have to listen to. We're talking about who has the responsibility, the Congress or the executive branch?"

Incidentally, some avid Paul supporters, who rallied to his cause during the presidential campaign, are hoping to draft his son Rand to run for the Senate from Kentucky next year. Rand Paul, a Bowling Green eye surgeon named for libertarian icon Ayn Rand, is considering a run if GOP Sen. Jim Bunning retires, as many Kentucky Republicans hope he will. .

Like father, like son: "We both believe in limited government," Rand Paul said.

Expanded Tax Break Available for 2009 First-Time Homebuyers

The Internal Revenue Service announced that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.