SAVINGS

In the world of politics, particularly when it comes to B. H. Obama, every action that is declared and promoted carries a hidden purpose. This truism is quite evident in today's White House announcement that the anticipated federal employee pay raise for 2011 of 1.2% is not going to happen. The Obama intent is to freeze these automatic raises for a period of two years but to exempt the military from any such freeze.

There could be as many as 2,150,000 civilian federal government employees impacted and all in the executive branch. This "lost" pay raise will, according to Obama, save the American taxpayer close to $6,000,000,000.00 in the next 24 months. This declaration sounds good but it is hardly a "savings". Logic requires that to be considered a "savings" there has to be less money spent than had been expended in the prior budgetary time frame. The Obama plan only holds the line on federal wages so no "savings" is realized. A roll-back on federal salaries would be a potential "savings".

The real purpose of this salary freeze is to give Obama some leverage with members of the House and Senate on the issue of extending only a portion of the Bush income tax rates. These reduced taxed rates are set to expire December 31, 2010. The line from the White House will be, "Look, I did my part and limited the wages of federal employees. This was not a popular move but it was in the best interests of America. Now it is your turn, Republicans and conservatives, to take a little flak, but only from the well-to-do, and cancel the tax breaks for those who make $250,000.00 or more a year."

Weak members of Congress will fall for this line and agree to approve the Obama initiative. Americans who earn $250,000.00 a year will be adversely impacted by a loss in spendable income. The federal employees will not only remain stationary in their income but will also, for the vast majority of them, continue to have a lower federal income tax impact.

Obama needs to be taught a lesson which is that Congress will no longer be his unquestioning ally. The problem is that the "lame-duck" Congress may force at least a pro-Obama compromise.

If our political leaders really want to attack the huge federal deficit, then a small but mandatory wage roll-back is needed which will impact all 2.8 million Americans who draw federal wages, including the military, and all 16.6 million Americans who are state and local government employees.

That would be a "savings", a very unpopular "savings", but a true "savings" for our nation.