human action fall edition

After months of heated debate about raising the debt ceiling, President Obama signed into law the Budget Control Act of 2011 on August 2, 2011. This bill allows a total debt ceiling increase of between $2.1 trillion to $2.4 trillion in two steps. Upon passage of the bill, the debt ceiling was increased by $900 billion. The rest of the increase — $1.2 trillion to $1.5 trillion — will come early next year at the President’s request.

However, one of three things must happen before President Obama gets the second debt ceiling increase:

1) Passage through both chambers of Congress of a balanced budget amendment to the US Constitution; or

2) The newly-created Joint Select Committee on Deficit Reduction, also known as the “Super Committee” presents a deficit reduction proposal that becomes law; or

3) Across-the-board spending cuts are put in place.

Once one of these three criteria is met, the President Obama can request another $1.2 to $1.5 trillion increase in the debt ceiling which only a super majority in Congress could block in a vote of disapproval.

The Balanced Budget AmendmentIf both the House and the Senate pass a balanced budget amendment (BBA), the President would be authorized to request a $1.5 trillion increase in the debt ceiling. The legislation stipulates that once one chamber passes a BBA, the other must take up the same legislation. According to the US Constitution, it would require two-thirds majority in both chambers and then approval by three-fourths (38) of the states before being added to the Constitution. This has been the route taken by all current amendments. The legislation does not specify which BBA must pass, but at FreedomWorks we like Sen. Mike Lee’s BBA with its super majority requirement for tax hikes and a federal spending cap of 18 percent of GDP, which all 47 Senate Republicans support.

Human Action

The Threats We Face in the Super Committee

The 12 members super committee is comprised of 6 Democrats and 6 Republicans, half from the House and half from the Senate.

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The Quarterly Newsletter of the FreedomWorks Community

Continued on page 6

Vol 1 l Iss 2 l FALL 2011

On The Cover“The legislation does not specify which BBA must pass, but at FreedomWorks we like Sen. Mike Lee’s BBA with its super majority requirement...” • 1

Educate & PromoteTop Activists Gather for a FW Boot Camp • 3

Taking ActionFreedomWorks Out-Organizes the Left • 4

Obama’s New RegulationsPutting the Brakes on the EPA • 8

Hot Right NowActivists Target Spending Cuts with Tea Party Debt Commission • 9

A Letter from the PresidentIn the months since our last edition of Human Action, FreedomWorks has been

at the epicenter of numerous grassroots fights for lower taxes, less government, and more freedom. Whether it’s national issues like the debt ceiling and the regulatory authority of President Obama’s EPA, or grassroots events like our activist boot camp and August town halls campaign, we’ve been on the frontlines.

In the debt ceiling debate, we pushed hard for immediate cuts to spending, enforceable spending caps and a Balanced Budget Amendment in exchange for raising the debt ceiling. We called this strategy “Cut, Cap, Balance,” and we joined by a broad coalition of 182 limited government groups fighting for this legislation. In total, 40 Senators, 115 House members and over 240,000 Americans signed the Cut, Cap, Balance Act Pledge.

The Cut, Cap, Balance Act passed the House of Representatives in bipartisan fashion but was tabled in the Democrat-controlled Senate by just five votes.

Eventually, the final debt deal contained some of the framework of Cut, Cap, Balance, but lacked the actual teeth. Our Vice President of Public Policy Max Pappas has a great analysis in the lead story of this edition on the new “super committee” formed in the debt deal.

While we didn’t get Cut, Cap, Balance, the debt ceiling debate once again showed the

power of this movement to change the conversation in Washington. For the first time in recent political history, raising the debt ceiling was not a foregone conclusion. When we made our voices heard, Democrats and Republicans quickly started talking about cutting spending rather than simply using a “clean” vote to raise the debt ceiling.

One of the reasons for our influence is sheer size. FreedomWorks is now a community of 1.4 million members — that’s 200,000 more members just since the summer. It’s a stunning level of growth that would be impossible without your continued support. So from all the staff at FreedomWorks, thank you, and welcome again to another edition of Human Action.

In Liberty,

Matt Kibbe, President and CEO

2 / FreedomWorks H HUMAN ACTION

FreedomWorks Board of DirectorsThe Honorable Dick Armey Chairman, Former House Majority Leader

The Honorable James H. Burnley Venable LLP

Matt Kibbe, President and CEO FreedomWorks

Thomas Knudsen Thomas Publishing Company

Richard J Stephenson Cancer Treatment Centers of America

FreedomWorks Foundation Board of DirectorsThe Honorable Dick Armey Co-ChairmanFormer House Majority Leader

The Honorable C. Boyden Gray Co-ChairmanFormer Ambassador to the EU

Steve Forbes Vice Chairman Forbes, Inc.

Matt Kibbe President and CEO FreedomWorks

Ted Abram American Institute for Full Employment

Robert T.E. Lansing The Westminster Funds

Frank M. Sands, Sr. Sands Capital Management

Senior StaffAdam Brandon Vice President, Communications

Wayne T. Brough, Ph.D. Chief Economist & Vice President, Research

Molly Byrne Vice President, Development

Dean Clancy Legislative Counsel and Vice President, Health Care Policy

Judy Mulcahy Vice President, Operations

Max Pappas Vice President, Public Policy

Russ Walker National Political Director

This summer we hosted our largest four-day activist boot camp with over 150 activists from 30 states gathering for public policy, campaign and media training.

Chief economist Dr. Wayne Brough led a timely discussion on the budget and noted that as Democrats have continually refused to complete their basic governing responsibility — passing a budget — Tea Party activists must demand that Washington cuts spending and shrinks the size of government. Vice President of Health Care Policy Dean Clancy talked about strategies for repealing and replacing ObamaCare with patient-centered solutions and addressed the larger problem of reforming entitlements. Staff Writer Julie Borowski closed the morning’s speeches with a rousing lecture about the importance of auditing the Federal Reserve and stopping the International Monetary Fund from bailing out foreign countries with American taxpayer dollars.

After lunch, Vice President of Communications Adam Brandon discussed how to build relationships with local reporters, answer questions and gain earned media for your group. New Media Director Tabitha Hale also gave an introduction to Twitter, explaining the benefits of this new technology in connecting activists with local bloggers and breaking news before major media outlets.

Day two of our activist boot camp began with FreedomWorks Director of State and Federal Campaigns Brendan Steinhauser’s presentation called “Rules for Patriots”—an intentional riff on liberal activist Saul Alinsky’s famous handbook on progressive grassroots organizing, Rules for Radicals.

Rules for Patriots is also a pocket primer written by FreedomWorks President Matt Kibbe which details the steps necessary for

conservative activists to retake the grassroots from the Left. This primer was just one of the many gifts given to boot camp attendees including: Give Us Liberty: A Tea Party Manifesto, a book by Dick Armey and Matt Kibbe; “Two Years in the Tea Party: A FreedomWorks Retrospective”; numerous educational DVDs and other promotional materials.

New Media Campaigns Coordinator Kristina Ribali discussed the importance of online activism and building out local networks using FreedomConnector. Emphasizing the decentralized nature of

the technology, Ribali encouraged activists to drive the technology at a local level. Campaigns Coordinator David Spielman led a workshop entitled “Campaigning 101”, focusing on the nuts and bolts of running a campaign and emphasizing the importance of doing neighborhood canvassing walks, sign blitzes and distributing campaign materials.

After two days of training, members of the national press talked with our activists about issues that matter locally. Our Utah activists used this opportunity to launch an impromptu protest down the street at the

National Republican Senatorial Committee for the committee’s support of establishment big government incumbent Senator Orrin Hatch. Many local Utah activists have called for a primary challenge to Hatch.

“But underneath the chanting and handmade signs was a carefully orchestrated educational event, an effort by FreedomWorks to incorporate technical dominance and political savvy into a grassroots movement built on passion and theatrics,” wrote Janie Lorber of Roll Call. “The activists were energized — fresh off a ‘boot camp’ organized by FreedomWorks to teach grass-roots conservatives how to advance their agenda on the debt ceiling, health care and environmental regulations. It was capped off with a message to establishment Republicans: Stay out of our backyard.”

In the final day of our activist boot camp, Tea Party-aligned Senators Mike Lee (R-UT) and Rand Paul (R-KY) gave a closed-door update to attendees on their work to implement the ten planks of the Contract From America. The Contract is a grassroots-generated candidate pledge voted on by hundreds of thousands of activists and signed by lawmakers like Sen. Lee and Sen. Paul before the 2010 midterm elections.

Congress citing constitutional authority in legislation and banning earmarks are just two examples where the Contract has already been successful. While there is still much to do, the Senators noted, we’ve made great progress in just one election cycle. 2012, they encouraged, holds even more promise.

FreedomWorks H HUMAN ACTION / 3

Senator Mike Lee speaks with FreedomWorks activists while Senator Rand Paul looks on.

Top Activists Gather For FreedomWorks

Boot Camp

Phil Henry H NEVADA “I founded the White Pine Tea Party, which serves voters in White Pine and Lincoln Counties in rural Eastern Central Nevada. When the Democrats took control of the White House, Senate and House in 2008, I knew I had to get involved in organizing conservative voters in my area. After researching two other national Tea Party organizations, I decided to affiliate our group with FreedomWorks. Many of us serve on the Republican Central Committee for White Pine County as well. We are also affiliated with the Elko Tea Party to our north and the Vegas Valley Tea Party to our south. We look forward to organizing and preparing for a conservative victory in Nevada in 2012.”

“I was raised with a strong sense of patriotism, having lived all over the world as an Air Force wife. After the bank bailouts in the fall of 2008, I was alarmed to see an exponential escalation away from the foundation that this nation was built upon.

Knowing we had to get involved, my husband and I started the Wetumpka Tea Party in March 2009. Over the last 2 1/2 years, we have taken hundreds of southerners on chartered buses to the FreedomWorks 9/12 events in 2009, 2010 and to the 8/28 Restoring Honor Rally last year. Our members, in concert with the Wetumpka Tea Party’s efforts, have been recognized at both the state and national levels.

I count it as a high honor and a well worth the personal sacrifice of time and energy to be part of a grassroots movement that loves this country and want to see its greatness restored.”

Becky Gerritson H ALABAMA

“I live in Slidell, LA where I am involved in the Greater New Orleans Tea Party, the LA Tea Party Federation and the Northshore 912 Group. I am a husband, the father of a son and daughter and have been blessed with six beautiful grandchildren. It is because of these children and all children that I am involved in this effort to restore our country.

In June, I attended the FreedomWorks Boot Camp in Washington, DC. I learned about FreedomConnector and how to organize on local, state and national levels. I plan to use this training to build coalitions of concerned, like-minded citizens in Louisiana. Recently, I assisted in bringing Former Major-ity Leader and Chairman of FreedomWorks Dick Armey to our area. I am proud to be associated with FreedomWorks and the Tea Party Movement.”

Garman Cyprian H LOUISIANA

Local Activists Share Their Stories

Tell us your story!If you’d like to share how your group has made an impact in your state please email a brief description and a photo of yourself to Michael Duncan at [email protected].


FreedomWorks has a community of over one million fans on Facebook! “Like” us today! You can also follow @FreedomWorks on Twitter for the latest alerts and news.

FreedomWorks Out-Organizes the LeftFresh off the debt ceiling fight,

FreedomWorks launched August Action, a new project on our online activist networking platform FreedomConnector designed to organize activists for town hall meetings during Congress’ August recess.

A free August Action kit given to activists included a strategy memo written by FreedomWorks President Matt Kibbe, position papers on various issues, grassroots petitions, and talking points. Thanks to FreedomConnector’s geo-tagging technology, activists could easily find their Representative’s town hall meetings and organize to attend with other activists in their area.

August Action was designed to replicate the success of the August town halls on 2009 when Tea Party activists protested against ObamaCare. Conservative radio host Glenn Beck signed on to the project, officially endorsing it on his program.

“Remember when folks started real-izing the Tea Party movement was for real? One of the biggest turning points was when the Tea Party members started taking over town hall meetings two sum-mers ago,” said Beck live on the air. “They couldn’t ignore it. Your elected officials are home for the August recess, and it’s time to take a little August Action.”

A chance to repeat the success of the 2009 protests against ObamaCare scared many on the political left of what might happen during these August town hall meetings. From USA Today:


“The Tea Party managed to really spook Congress with a really smart, organized effort,” said Justin Ruben, executive director of the progressive group MoveOn.org. “After a week of aggressive town-hall disruptions, they managed to create a narrative about the health care law that stuck.”

Over 100 town hall meetings were organized during our August Action project on FreedomConnector. Activists went armed with their August Action kits

sending pictures, video and action reports back to FreedomWorks to document their experience. FreedomConnector is the preeminent resource for conservative activists — a fact even liberal groups are starting to realize.

“Liberal blog the Daily Kos has linked to FreedomConnector as a source of infor-mation on when and where to find elected officials,” reported National Journal.

Development Coordinator Parissa Sedghi joined FreedomWorks two years ago after graduating from Marymount University. Parissa works to build relationships with our expanding base of committed donors and provide opportunities for them to get involved. An Annapolis native, Parissa is currently enrolled at the University of Maryland where she’s working towards degrees in business and non-profit management. Outside of work and school, Parissa enjoys spending time with her friends and family — especially at the beach.

Meet Our Staff Parissa Sedghi

“Thanks to FreedomConnector’s geo-tagging technology, activists could easily find their Representative’s town hall meetings and organize to attend with other activists in their area.”


The Super CommitteeThe Super Committee and its proposal

will be the topic of debate for much of the rest of 2011 and deserves closer examina-tion. It is an evenly divided bipartisan group, with six Democrats and six Repub-licans, with each party sending three Members from the House and three from the Senate. They are tasked with offering legislation by November 23, 2011, that reduces the deficit over the next 10 years by between $1.2 and $1.5 trillion. Note that in Washington DC lingo, “reduces the deficit” and “cuts spending” are not the same; tax hikes can be counted toward the deficit reduction goals.

If the proposal receives support from a simple majority (7) of the 12 members, it goes straight to a vote in the Senate and the House, without amendments or the option for a filibuster. This simple majority may be achieved with just one person crossing party lines or by a coalition in the middle that moves ahead without the more liberal or more conservative members of the group. If the Committee comes to an agreement, Congress must vote on the Committee’s proposal by December 23, 2011.

If the Committee produces legislation reducing the deficit by $1.2 trillion or more, and the President signs it in to law, he would then be empowered to request a debt limit increase of an equal amount, up to $1.5 trillion. If they agree to an amount less than $1.2 trillion, across the board cuts will make up the difference to $1.2 trillion and the President would be allowed to request a $1.2 trillion debt ceiling increase. In all instances, the President’s debt ceiling increase may only be blocked by a super majority in Congress.

Who is on the Super Committee?HOUSE REPUBLICANS

Rep. Jeb Hensarling (R-Texas) is committee co-chair. He is also the chairman of the House Republican Conference and served on President Obama’s debt commission, which produced a plan he voted against because it included tax increases. A former chairman of the Republican Study Committee, the conservative caucus in the House, Hensarling will be a strong voice for limited government on the panel.

Rep. Dave Camp (R-Mich.) is also the chairman of the powerful House Ways and Means Committee. He, too, served on President Obama’s debt commission and voted against its plan, objecting to the proposed tax hikes and

its failure to address rising health care costs. He should be a strong voice on any tax reforms proposed.

Rep. Fred Upton (R-Mich.) chairs the House Energy and Commerce Committee, which oversees a large portfolio of domestic

economic policy. He has performed well in the few months he has held that chairmanship, but has a long history supporting more spending and bigger government. We need to make sure the “new” Fred Upton shows up for the Committee, not the old one whom the Democrats might hope casts the deciding vote with them.

HOUSE DEMOCRATS

Rep. Chris Van Hollen (D-Md.) is the top Democrat on the Budget Committee, where he was a vocal critic of Budget Committee Chairman Paul Ryan’s budget for cutting too much (we

wanted him to cut more). Van Hollen was also part of the Biden-led debt talks earlier this year. He is a Nancy Pelosi disciple and has been criticized as a partisan political choice — he headed the Democratic Congressional Campaign Committee (DCCC), recruiting and funding Democrats.

Rep. Xavier Becerra (D-Calif.), is a senior member of the House Ways and Means Committee and served on Obama’s Bowles-Simpson debt commission. He is also a member of the far-left Congressional Progressive Caucus, which presented the “People’s Budget” this year. That proposal calls from dramatic tax hikes, including a five new income tax rates between 45% and 49% and death taxes all the way up to 65%.

Rep. James Clyburn (D-S.C.) is the third-ranking Democrat in the House and is considered close to Nancy Pelosi and the left wing in the House. He also participated in the Biden debt reduction talks. He has a long history of opposing reforming entitlements — the primary drivers of our debt — and supporting tax hikes.

SENATE REPUBLICANS

Sen. Pat Toomey (R-Pa.) has a long history as a top advocate for limited government, free markets, and fiscal responsibility. From leading Republican opposition in the House to President Bush’s expensive Medicare Part D entitlement expansion in 2003 to his recent prominence in the debate over raising the debt ceiling, Toomey has been on our side.

Sen. Jon Kyl (R-Ariz.) is the second-ranking Republican in the Senate and was also part of the Biden debt talks, which he left when the Democrats insisted on including tax hikes in their proposal. Kyl is the only member of the Committee not seeking reelection and has been a relatively strong ally of fiscal conservatives throughout his career.

Sen. Rob Portman (R-Ohio) previously served in the House and as White House budget director and trade

The Threats We Face ... continued from page 1

The Super Committee has already begun to hold hearings on deficit reduction.


representative in the Bush administration. He’s viewed as the most moderate of the three Senate Republicans, but has pledged not to raise taxes, preferring pro-growth tax reform that lowers rates and simplifies the code.

SENATE DEMOCRATS

Sen. Patty Murray (D-Wash.) is committee co-chair. Her selection has been criticized because of her overtly partisan position as chair of the Democratic Senatorial Campaign Committee where she recruits candidates who can beat her Republican colleagues and raises the money to do so. This role requires her to regularly ask for money from powerful special interests that have a stake in any government spending.

Sen. John Kerry (D-Mass.), the former presidential candidate, has long been part of the left wing of the Democratic Party in the Senate. With 26 years in the Senate, he brings to the table considerable negotiating experience. As the current chairman of the Senate Foreign Relations committee, it will be interesting to see where he comes down on the debate over cuts to military funding.

Sen. Max Baucus, (D-Mont.) is chairman of the Senate Finance Committee and served on Obama’s debt commission. It’s notable that he voted against that commission’s final recommendations because it cut too deeply into farm subsidies and would have changed entitlements in a way

he found unacceptable. Any serious proposal to reduce deficits must address entitlements, which account for a large share of federal spending.

What if they fail?If the Super Committee does not

agree to a plan, or if they put forward a plan that does not make it in to law by December 23, automatic spending cuts would be triggered — what is referred to as a “sequestration process” inside the Beltway. The cuts would apply to fiscal years 2013-2021 and would be equally split between defense and non-defense programs. Programs exempt from the across the board cut are Social Security, Medicaid, veterans assistance and military pay. Medicare beneficiaries are also exempt, but up to 2 percent of the cuts can come from Medicare payments to providers.

As they negotiate, our focus remains on stopping the Super Committee from raising taxes. We’ve also formed our own Tea Party Debt Commission which you can read about on page 10, to help grassroots activists make their recommendations for spending cuts. To stop the Super Committee from raising taxes, you can call the Super Committee members at the numbers listed on this page.

By Max Pappas — Vice President, Public Policy and Government Affairs

Tell the Super Committee: Don’t Raise Taxes!THE REPUBLICANSRep. Fred Upton (202) 225-3761Rep. Dave Camp (202) 225-3561Rep. Jeb Hensarling (202) 225-3484Sen. Jon Kyl (202) 224-4521Sen. Pat Toomey (202) 224-4254Sen. Rob Portman (202) 224-3353

THE DEMOCRATSRep. James Clyburn (202) 225-3315Rep. Xavier Becerra (202) 225-6235Rep. Chris Van Hollen (202) 225-5341Sen. Patty Murray (202) 224-2621Sen. John Kerry (202) 224-2742Sen. Max Baucus (202) 224-2651

Remember: “In Washington DC lingo, reducing the deficit does not necessarily mean cutting spending

— it could mean raising taxes. We must stop the Super Committee from raising taxes.”

TAKE ACTION!

KEY DATES FOR THE SUPER COMMITTEE:09/16/11: Date by which first Super Committee meeting must be held. 09/22/11: Deadline for Congress to consider a resolution of disapproval for first tranche ($900 billion) of debt limit increase.10/01—12/31/11: Timeframe during which House and Senate must vote on a Balanced Budget Amendment. 10/14/11: Deadline for House and Senate to submit recommendations to Super Committee. 11/23/11: Deadline for Super Committee vote on a plan with the goal (not a requirement) of $1.5 trillion in deficit reduction. 12/02/11: Deadline for Super Committee to submit report and legislation language to the President and Congress. 12/23/11: Deadline for Congressional vote on Super Committee bill. 01/15/12: Date $1.2 trillion of future spending cuts is triggered, if Super Committee bill not enacted. Feb. 2012: Approximate time when the first $900 billion of debt ceiling increase runs out. Feb./Mar. 2012: President expected to use his new authority to increase debt ceiling again by $1.2-$1.5 trillion. Within 15 days Congress will vote on a “resolution of disapproval”. Fall/Winter 2012: Because no meaningful cuts will have taken place, the additional $2.1-$2.4 trillion of borrowing authority from this law runs out, big spenders will want to raise the debt ceiling again. 01/02/13: OMB orders sequestrations for defense and non-defense categories of spending necessary to meet spending cuts required by the “trigger.”


With the economy sputtering and the job market flat, the Obama administration’s Environmental Protection Agency (EPA) is moving forward with an entire slate of new regulations that are sure to increase costs for consumers and fuel unemployment. The EPA’s aggressive regulatory agenda goes well beyond tough new greenhouse gas rules. All told, the agency is pushing over 40 major regulations through the rulemaking process, including a costly new air transport rule, a new air quality standard for ozone, and new standards for mercury and air toxics, among others. The costs of these looming regulations are so substantial that the series of rules is often referred to as the “EPA Train Wreck.” Estimates suggest that at least 1.4 million jobs may be at risk due to the EPA’s overzealous regulation.

The debate over federal spending and the national debt has dominated the media in recent months, but Washington’s regula-tory agenda can be just as devastating to the jittery economy. Indeed, regulations are often referred to as hidden taxes that can impose significant costs on business and hamper job growth. A 2010 study by Professors Mark and Nicole Crain estimated the burden of regulation to be $1.75 trillion, a figure that is sure to rise with the coming tide of EPA regulation. The Obama ad-ministration is mounting an unprecedented regulatory push, from the new rules associat-ed with the implementation of ObamaCare, to the rules required under the Dodd-Frank Wall Street reform legislation, to the costly EPA Train Wreck. Since Obama took office, his administration has already issued 75 major rules, imposing a $40 billion strain on the economy.

Putting the Brakes on the EPA

The EPA’s regulatory agenda will add signifi-cantly to the increasing costs of regulation.

The new standard for ozone — a contributor to smog — is one of the most sweeping regulations currently being developed by the EPA. The agency has ratcheted down the ozone limit from 125 parts per billion (ppb) in the 1970s, when the Clean Air Act was first introduced, to 80 ppb in the 1997 review of the standard. This was further reduced to 75 ppb in 2008. Yet, only two years into the 5-year review cycle, the Obama EPA announced it would once again revise the standard, pushing for somewhere between 70 ppb and 60 ppb. The EPA itself estimates that this new standard could impose up to $90 billion per year in new compliance costs, and will throw hundreds of counties out of compliance with the new law.

In fact, the Congressional Research Service notes that 515 counties (76 percent of all counties with ozone monitors) will not meet a 70 ppb standard, and 650 counties (90 percent of all counties with monitors) will not meet a 60 ppb standard.

And these results vary by region, with areas of the nation reliant on coal for electricity generation feeling more pain. For example, every county in Ohio will be out of compliance with the new standard. Once a county falls out of attainment, states are required to develop a State Implementation Plan (SIP) to ensure that counties take measures meet the new standards. A SIP is a costly new regulatory program that expands the EPA’s authority over permitting decisions and raises costs for both businesses and consumers.

In addition to tightening the ozone standard, the EPA recently issued the Cross-State Air Pollution Rule (CSPAR), which will have a significant and immediate impact on electric utilities in 27 states. The rule was issued ostensibly to reduce down-wind pollution from sulfur dioxide (SO2) and nitrogen oxides (NOx). Upwind states will have to reduce SO2 emissions by 73 percent and NOx emissions by 54 percent from the 2005 levels in order to keep downwind states from falling out of compliance with air pollution standards.

One study estimates that this will cost $150 billion by the year 2015, and the

EPA estimates annual compliance costs of $800 million. In effect,

the EPA is setting up mini

“At best, the EPA is setting the stage for a lengthy legal battle; at worst, the agency is establishing itself as the ultimate arbiter for doing business in America.”


By Wayne T. Brough, Ph.D. — FreedomWorks Vice President of Research

cap-and-trade programs by giving each of the designated states an emissions budget (cap) and allowing utilities to bank and trade emissions. For utilities covered by the rule, the costs can be substantial: they can install new pollution control equipment or switch to cleaner fuels, if available. Given the extremely short timeframe, these changes will not be cheap, and some may not be feasible. For consumers, the costs will be substantial. Estimates suggest electricity prices will increase, on average, by around 12 percent. States that rely on coal-fired electricity generation may see rates increase by 24 percent. These regulations will also have an impact on the nation’s power grid. An “informal” analysis by the Federal Regulatory Energy Commission found that up to 81 gigawatts of power may be shut down — enough electricity to power 50 million homes. This summer’s record-setting heat wave already brought parts of the nation perilously close to rolling blackouts. With the new rules shuttering so many power plants, it’s not clear whether the blackouts would be avoidable during a future peak of electricity usage.

Along with the various other compo-nents of the Train Wreck, the EPA con-tinues its efforts to implement the Obama administration’s costly greenhouse gas regu-lations — despite the fact that Congress has yet to pass legislation addressing this issue. The agency is attempting to use the Clean Air Act to do its bidding, which is quite a stretch. The Clean Air Act was designed to regulate six specific criteria pollutants: par-ticulate matter, ground-level ozone, carbon monoxide, sulfur oxides, nitrogen oxides, and lead. It was never intended to regulate something as ubiquitous as carbon dioxide and other greenhouse gases. The Clean Air Act also specifically targeted power plants, large manufacturers, and other entities that were required to add scrubbers to smoke-stacks and implement other practices to reduce levels of these criteria pollutants.

Regulating greenhouse gases such as carbon dioxide is much more problem-atic because of the wide range of activities that release the gases. The EPA’s control would go well beyond power plants, with small businesses such as pizzerias, bakeries, and others falling under the new regime.

The impact would be substantial and the logistics of compliance unwieldy. The EPA knows this, and has proposed a “tailoring” rule to dial back the damage. But it is not at all clear that such a rule is even legal. The Clean Air Act works by establishing levels of compliance and does not afford the EPA the opportunity to arbitrarily determine who is or is not subject to the new regulations. At best, the EPA is setting the stage for a lengthy legal battle; at worst, the agency is establishing itself as the ultimate arbiter for doing business in America.

This is not to say that clean air and a healthy environment are not important; these are important factors that can add significantly to the quality of life. Yet, an examination of the historical record shows that air quality has improved substantially over the last 30 years, with a 60 percent reduction in the total emissions of the air pollutants regulated by the Clean Air Act. These improvements are even more significant when you consider that, during this same time period, the U.S. population increased by 35 percent and energy consumption increased by almost 25 percent. But at this point, the EPA is chasing smaller and smaller improvements in air quality at higher and higher costs, and the EPA has not demonstrated that there will be benefits that warrant these significant new costs on the economy.

Eliminating excessive regulations and unnecessary compliance costs are key components of any economic recovery. Regulatory reform is imperative to ensure that businesses have the flexibility to expand economic capacity and fuel the recovery. Strengthening the economy will be difficult if employment opportunities are strangled by the red tape of the EPA Train Wreck. Fortunately, some in Congress have taken note. In both the House and Senate, efforts are underway to slow the EPA Train Wreck. Legislation has been introduced to address the economic impact of the EPA’s rules before they can be finalized, and House appropriators are working to slow the EPA’s regulatory machine. However, the White House and the EPA have vowed to stay the course and implement the costly new rules. To make sure that Congress addresses the EPA’s Train Wreck, it is important to become involved and raise concerns with your elected officials. Otherwise, the EPA will continue its quiet drive toward the Train

Wreck that derails the American economy.

Activists Target Spending Cuts with Tea Party Debt CommissionWhether it’s President Obama’s “National Commission on

Fiscal Responsibility and Reform” or the “super committee” formed to reduce the deficit under the debt ceiling deal, politicians have become awfully good at abdicating their constitutional responsibilities in favor of politically convenient distractions.

Americans are getting pretty tired of politicians who spend all their time talking about what they want to do rather than actually doing it. It’s this frustration that led us to partner with Houston Tea Party activist Ryan Hecker in 2010 to create the Contract FROM America, a bottom-up candidate pledge voted on by hundreds of thousands of grassroots activists across America. Instead of Washington dictating policy, average Americans demanded that candidates sign their ten-point plan for fiscal responsibility, limited government and free markets. Their loyalty to the grassroots was in turn rewarded; candidates who signed The Contract were elected to Congress in droves during the 2010 midterm elections.

It’s under this same concept that we are now launching our own Tea Party Debt Commission. Grassroots activists will be able to vote online at www.teapartydebtcommission.com for the cuts they would make to government and the results will be posted live on the site. The Commission will also hold field hearings to hear ideas from local activists and select 12 representatives from key battleground states in the 2012 election. FreedomWorks will not only be aggregating the online votes and organizing the field hearings, but will help grassroots activists present their


findings in Congressional hearings this winter and put pressure on legislators to adopt the Commission’s proposed reforms.

When the media asks, “what would the Tea Party cut,” we will have an answer. When the “super committee” struggles to eliminate wasteful programs, we will do their work for them and hand them a list of our priorities. After all, if you take politics and lobbyists out of the equation, cutting spending is not that difficult. Average citizens balance a budget and set spending

priorities every day.

IN THE NEWS“Allies of the Tea Party movement are

soliciting ideas on how to cut federal spending, as they move on a parallel track to the “super committee” created under the deal to increase the debt limit.” – USA Today

“While the Tea Party movement has led the charge for cutting the national debt, its supporters have often

struggled to explain how, exactly, they would do so. Now some are out to change that, joining a Tea Party debt commission that plans to hold hearings over the summer, in the hopes of delivering recommendations to lawmakers by January.” — The New York Times

“The activists crafted a statement to explain the impetus of the commission, declaring that ‘Washington remains incapable of providing the bold leadership and tough decisions these difficult times demand.’ Just as the Tea Party compelled the Republican party to draft the ‘Contract from America,’ the conservative movement is hoping once again to influence the congressional agenda.”— CBS Evening News

SPECIAL EDITION DVD This Special Edition DVD will NOT be available in stores. It contains the FULL Theatrical Release of ATLAS SHRUGGED Part I which opened in limited release nationwide April 15th, 2011.

Featuring a “Welcome” from Matt Kibbe and “I am John Galt” from the FreedomWorks Staff.

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Over 250 activists gathered in Salt Lake City, UT for the first field hearing of the Tea Party Debt Commission

Investor Spotlight


DENISE MULLIN — GLENN HEAD, NEW YORK

I suppose my email address sums up my passion for liberty and my support of many causes that fight for it: ladyliberdee (dee for Denise). Like so many others, I felt a strong personal independence streak even in my teens and remember debating a high school history teacher on the importance of the individual versus “society”. When I was 18, I was led to Ayn Rand and devoured her major and minor works. Her freedom philosophy, so eloquently articulated, resonated deeply.

Although my career in the financial world took precedence over any early activism, the theme of liberty remained on my mind. I was always grateful that all four of my grandparents had risked all to come to the US and marveled at how my opportunities were so wide because of their bravery. I also sought out bigger career opportunities, moving to NYC from my native Detroit-area. I held a variety of positions with various Wall Street firms in institutional bond sales and trading. Before I retired to raise our family, I was head trader of a bond option desk: a challenging position.

Fast forward to my life during my “second career” as mom to 3 daughters, twins now seniors in high school and our youngest, a sophomore. I moved into homeschooling them after first grade, quickly disappointed in what they had (not) been taught in 2 years. We continued through middle school but finally turned them loose for high school.

When our daughters were very young, my husband Mel and I started to get involved in the liberty movement, first through

supporting the Cato Institute, the policy think-tank. We viewed Cato as our lobbying group for smaller government. After my husband witnessed the terror attacks on Sep11, we moved away from Cato and other “philosophical” think tanks toward more activist, in- the- trenches organizations. We were invited to a FreedomWorks seminar in NYC and came away amazed at its breadth of activities, its cutting-edge technology, the dedication of its efficient

staff and the value that it provides to the nascent Tea Party movement. Although we have not been in a position to become on-the-ground activists, we support FreedomWorks through our donations. We are impressed that the organization continues to evolve and redefine its goals and strategies, a credit to its directors and members. FreedomWorks plays a vital role in supporting real Americans who want real change and more freedom.

The Tea Party phenomenon gives me hope. I used to think that people like my husband and I were a dying breed fighting an unwinnable battle against monstrous government. But the assault upon our liberties has awakened many who never paid attention to “politics” and the atrocious policies coming from our government.

Leave a Legacy of FreedomToday’s freedom fighters know that the FreedomWorks mission is not a short-term project, but rather, a long-term investment in the future of our country. You can help FreedomWorks in the fight against big government by making a contribution that benefits both you and your loved ones all at the same time. Discover how by calling Emilia, our Donor Relations Coordinator at (202) 942–7620.

FreedomFightersThe Legacy Society of FreedomWorks

“FreedomWorks plays a vital role in supporting real Americans who want real

change and more freedom.”

No question, the spending problems in Washington remain huge, but I remain optimistic that over the next few election cycles, we can transform the nature of Congress to reflect our freedom-loving, Constitution-respecting values.

I am counting on that attitude to con-tinue to inspire this fight. What we seek is really simple: a return to Constitutionally- limited government at all levels and lower taxes to support smaller government. The “more freedom” part will flow naturally from smaller government. It IS simple, but we fight a formidable army of liberal elites as well as every stripe of parasite now benefit-ting from government largesse. They will not go quietly, so we are in for the duration.

My favorite economist will always be Milton Friedman. I used his “Free to Choose” series in my homeschool economics class for its simple and elegant presentation of basic, commonsense principles. My favorite Friedman quote: “There can be no freedom without economic freedom.”

Here is my recommendation regarding FreedomWorks: if you are fed up with big and intrusive government, join FreedomWorks and become an activist in any way you can. If you have funds set aside to support the freedom movement, join FreedomWorks and get a powerful bang for your buck. You will be supporting a hostile takeover of the political process and can count yourself among those who stand up for freedom. FreedomWorks provides ideas, training and amazing support to real people fighting the real battle for the future of our beloved country. — Denise

400 North Capitol Street, NW Suite 765 Washington, DC 20001www.FreedomWorks.org

“FreedomWorks, has come to represent the purest of the pure among the conservative, limited-government Tea Party movement…” – U.S. News & World Report

“At the end of the day, economic rules are as strong as the rules of gravity. You cannot indefinitely live beyond your means and spend money you do not have.” — Dick Armey, CNBC

“Other Tea Party groups seemed to be more attuned to, and compelled by, political power…FreedomWorks continues to identify itself as the group that’ll kneecap anyone who goes rogue.”– Slate Magazine

Reaching Millions With Our Message ...

“FreedomWorks, a nonprofit conservative organization based in the nation’s capital that helps train volunteer activists…has provided much of the organization behind the tea party movement.” – CNN

“Kibbe said the next phase of the battle will include a ‘tea party debt commis-sion’ that will work parallel to the new biparti-san committee that will recommend deficit-cutting maneuvers. The ‘commis-sion’ will include field hearings and events in battleground states.” – ABC News

“But FreedomWorks, which helped found and shape the Tea Party movement, sees its [August Action] campaign as the opening salvo in a long battle to secure a place for the Ryan plan in the 2012 debate and the legislative session that will begin in January 2013.” – REUTERS

“This is a spending problem. If you want to fix a spending problem,

If you want to talk about revenue to fix a spending problem you’re just changing the subject.”— Matt Kibbe, Newsmax

you’ve got to cut spending.

FreedomWorks’ Dick Armey, Matt Kibbe and Brendan Steinhauser recently appeared on numerous television and radio shows to discuss the debt deal, super committee and other issues.

human action fall edition

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