American Elephants


Cutting the Corporate Tax Will Create Growth. That’s A Good Thing! by The Elephant's Child

To quote John Steele Gordon this morning “Only the brain dead could see Trump’s tax plan as a negative for the economy.Newsweek: “Trump’s Proposed Tax Plan Could Cost the Government $6 Trillion.” Why am I not surprised? Democrats simply do not understand economics. Allowing the people to keep more of their own money is simply incomprehensible to your standard run-of-the-mill Lefty.

Under the new rules, an individual making $35,000 each year would be able to remove $15,000 from their taxable income through the deduction, leaving just $20,000 for the government to tax.

On top of these tax cuts, Trump is expected to outline his proposal to lower the corporate tax rate from 35 percent to 15 percent. And he will seek to reclassify small, individually-owned businesses that currently file their taxes under the individual code so they are under the corporate tax code instead.

Democrats can only think of the 20% of corporate income that would not be taxed and how can the government possibly get along without that corporate money? Leftist hatred for rich corporations is always a mystifying thing. Everything they wear, eat, use and work with is a product of a large corporation, if they are not government bureaucrats they probably work for a large corporation and they indignantly badmouth corporations and seethe at the exorbitant salaries of American CEOs.

For a business, taxes are just a cost of doing business. Those costs are figured into the price of whatever the business produces, and are paid by the taxpayers who buy the products. If taxes go up, so does the cost of the product. If taxes go down, the business has some extra to expand, to innovate, to create, and the economy grows.

It is very simple, but Democrats do not think in those terms. They want a bigger pile of tax money so they can buy more votes to win elections so they can be in charge. Being in charge means giving nice things to the people, to get their votes, and spreading the wealth around, again so they can be in charge. Being in charge is the goal because they can get rid of all the annoying interference in their goal of a more perfect socialist world where everyone lives in peace and harmony in a world saved from the horrors of global warming and capitalism and guns. Or something like that.

They thought they had glimmers of a real move towards the glorious future with Hillary, and this obnoxious blowhard buffoon smashed it all up and they can’t wait to destroy him or impeach him or put him in prison. They still remain sure that if they can just turn over the right rock, they will find the Russian involvement — in something or other. Good Lord, they are predictable.

From The American Thinker by Thomas Lifson: “Trump tax plan goes for growth”

After President Obama’s two terms of anemic economic growth and huge federal deficits, there is a lot of room for growth in the American economy.  Targeting “seed corn taxes” that obstruct investment is the smart way to spike growth rates, which will bring jobs, increase taxes (in the long run), and swing political approval toward the GOP president and Congress.  It worked for Reagan, and it will work for Trump, if a version of the tax plan becomes law.

The White House briefing and one-page description of President Trump’s plan for tax reform issued yesterday contain the bones of an ambitious plan that could indeed jump-start the economy by lowering corporate income and capital gains tax rates, and by repatriating corporate money held overseas to avoid the punitive 35% levy on overseas profits when they are brought home to the USA.

From Economics21: “No, New York Times: Bush’s Tax Cuts Did Not Disappoint”

Basic economics tells us that if you tax something, you’ll get less of it. True, not all tax cuts are created equal. Successful tax reductions are immediate, permanent, broad-based, and (unlike tax rebates) rely on tax rate reductions to encourage working, saving, and investing. Such well-designed tax policies have a clear record of success.

Nobel Laureate Edward Prescott has shown that much of America’s widening economic advantage over other major economies between the 1970s and 1990s can be traced to America’s decision to lower tax rates while other countries raised them.

Harvard economist Martin Feldstein estimates that a dollar increase in taxes costs the economy 76 cents of growth.

Aside from the constant, furious Democrat insistence of being outraged at anything done by President Trump, they are predictable, predictable predictable. And possibly scared to death that he’ll get his tax plan passed.

Thanks to Obama, America’s corporate tax rate is the highest in the world. Growth has been anemic for 8 long years. A significant cut in the corporate tax rate could raise growth to 3% which is getting closer to the long-term norm —which would create jobs and put those folks who have essentially given up at the idea of working back in business. Hope and growth will do a lot for the country, and the American people.

ADDENDUM: Another contrast in media headlines — Wall Street JournalTrump Unveils Broad Tax-Cut Plan.” The New York Times Tax Overhaul Would Aid Wealthiest.” Like I said Predictable!



Just How Do You Measure “Better Off” Anyway? by The Elephant's Child



This Is A Map of Murders in the United States Of America by The Elephant's Child

I ran across a shocking map yesterday, a map of murders in the United States in 2014. Fifty-four percent of U.S. counties had no murders in 2014—none, zero. Two percent of counties have fifty-one percent of the murders.

The map comes to us from the Crime Prevention Research Center. 2014 is the most recent year where county-level breakdown is available. The United States can be divided up, they say. into three types of places: places where there are no murders, places where there are a few murders and places where there are a lot of murders. The worst 5% of counties contain 47% of the population and account for 68% of murders.

Murders used to be even more concentrated. From 1977 to 2000, on average 73% of counties had zero murders. They suggest that possibly this is related to the opioid epidemic’s spread to more rural areas. You can reach your own conclusions about the areas where murders are concentrated.

Other headlines: from CBS News“Chicago saw more 2016 murders than New York City and Los Angeles combined.” It was one of the most violent years in Chicago history with 762 homicides, and 1,100 more shooting incidents in 2016 than in 2015. New York had 334 homicides in 2016 and Los Angeles 294. Chicago has not only seen a spike in violence, but a spike in attacks on police as well. Chicago police superintendent Eddie Johnson said that anger at police has left criminals “emboldened” to commit violent crimes. It’s clearer to criminals that they have little to fear from the criminal justice system.

From The Daily Caller: “Baltimore is Begging Feds to Step In To Restore Law and Order.” Baltimore’s mayor asked the FBI to send in reinforcements to help the city to get it’s murders under control. “The city already has 101 murders for the year, a number not seen for almost 20 years” the mayor said.

On top of an over 30 percent increase in murders, the city is also experiencing a shortage in police officers. The city is operating with the lowest number of officers in about a decade — 2,500 police officers. Usually, the department has 2,900 officers.

From National Review: Heather MacDonald in an article at City Journal dismantles Hillary Clinton’s debate claims that the criminal justice system is infected with racism and that stop-and-frisk (which Trump has called for reviving) is unconstitutional and ineffective.” Andy McCarthy goes on to explain that the statistical overrepresentation of blacks in the prison population…is caused by patterns of offending. “Federal sentences (and sentences in most states) are computed under race-neutral guidelines that factor in both offense conduct and criminal history. The more crimes one commits, the heavier the sentence for any one crime. This is a recidivism thing, not a race thing.”

Across the pond, “knife crime has soared since Theresa May kerbed police use of stop and search, a tactic that activists condemn as “racist” but which senior officers insist saves black lives.

The year ending December 2016 saw 32,448 criminal offences involving a blade or other sharp weapon take place in Britain, a rise of 14 per cent from the previous year and the biggest knife crime total since 2011.

With five young men having been stabbed to death in London already this year, police warn that these are the first signs of a knife crime epidemic in major UK cities.

Lots to ponder in these articles. Which cities are being run by Democrats? Is the race situation better or worse as a result of former president Barack Obama’s policies? What about the “Black Lives Matter” movement? Heather MacDonald suggests that what has been called “the Ferguson Effect” is real and has caused police officers across the country to pull back a little, which has resulted in a rise in crime.  She reminds us that most police officers went into policing to protect the people from crime and violence, and care about  the people they serve. Her newest book The War on Cops is one of the most important books of the last year.

She was the target of silencing tactics two days in a row last week. The more serious incident took place at Claremont McKenna College at Claremont, California. A Facebook post from the “students of color at the Claremont Colleges

announced grandiosely that “as a community, we CANNOT and WILL NOT allow fascism to have a platform. We stand against all forms of oppression and we refuse to have Mac Donald speak.” A Facebook event titled “Shut Down Anti-Black Fascist Heather Mac Donald” and hosted by “Shut Down Anti-Black Fascists” encouraged students to protest the event because Mac Donald “condemns [the] Black Lives Matter movement,” “supports racist police officers,” and “supports increasing fascist ‘law and order.’”

Poor dumb kids. As Heather said “My supposed fascism consists in trying to give voice to the thousands of law-abiding minority residents of high-crime areas who support the police and are desperate for more law-enforcement protection.”  See Baltimore above. When the county statistics for 2016 become available, looks like the murder rate will climb once again. Spare a moment to honor the Policemen who have lost their lives this year trying to protect the American people. It should not be a thankless job.

 



The Least Diverse Place in America by The Elephant's Child

You have probably noticed, there have been enough riots and demonstrations to prevent the possibility of hearing someone with a differing opinion. They claim to champion diversity, but that’s a lie. They want everyone to hold the same leftist beliefs, and frankly be unaware that there are other ideas. They used to call it “brainwashing.”Does it only matter if it is your college student?



The Problem is Having to Live With The Choices We Made by The Elephant's Child

Former President Barack Obama has returned from his South Seas vacation, ready to resume trying to tear down the administration of his successor. Valerie Jarrett has reportedly been directing the resistance in his absence. Obama, meanwhile, has snagged a $400,000 fee for an hour long speech for a Wall Street firm, and a very large advance for books from Michelle and himself, so funds are not a worry.

It’s a sharp contrast with his own predecessor. George W. Bush gracefully left the limelight to avoid causing problems for his successor, and has refrained from comments on the Obama administration, appearing in public only with his programs of bike trips with recovering vets, and to talk about his new hobby of  painting, apparently inspired by Winston Churchill’s book Painting as a Pastime. President Bush has painted the world leaders with whom he engaged, and more recently, the heroes of the wars who fought under his responsibility in Portraits of Courage: A Commander in Chief’s Tribute to America’s Warriors.

President Bush recognized that history would judge what he had accomplished and where he had failed, and left it in the hands of the historians. Who will argue endlessly.

An ex-president hanging around and trying to run the opposition is something new and not very attractive. Americans are inclined to do some summing-up at the end of an administration, and it’s not often the admiration and attention that one hopes for. By the time a president leaves office, the public is usually thoroughly tired of them and hopeful that the new president can do a better job. Granted, that this year the Democrats, out of office and out of appealing candidates, out of ideas were insanely furious that their expected continuum with Hillary didn’t happen, because they don’t like Trump and cannot understand why Hillary didn’t win.

President Donald Trump has done quite well. His first 100 days have been celebrated by his supporters who are far more pleased than the media wants to acknowledge. His cabinet appointments have been outstanding, are in a position to offer excellent advice, and have hit the ground running. Neil Gorsuch’s appointment to the Supreme Court is a triumph. Nikki Haley has quickly taken charge at the U.N. and is proving to be a star. Syria has been put on notice, and the president is determined to reduce the corporate tax to 15% which will give the economy a boost. The ignorant leftist media is already gasping that the government won’t have any money.

Never fear. Corporations don’t really pay taxes. We do. When a corporation’s taxes are raised, they raise prices for their goods and we pay for it. When they don’t have to raise prices or do more of their business overseas to pay the taxes, their funds go for expanding and innovating and the economy improves. We currently have the highest corporate tax rate in the world, and it has been a drag on the economy. Between 1974 and 2001 average growth in the economy was 3.3%. A return to 3% from the dismal performance of the stagnant Obama economy would mean the economy could expand to $38.3 trillion by 2040.

The weeks of Obama’s vacation have been filled with the scandals of the Obama administration exposed, and they are not pretty. I understand that they want Sasha to finish high school at Sidwell Friends, but trying to occupy the media’s attention may not be wise.



The French, Coming Apart. And the Rest of Us Too? by The Elephant's Child

Christopher Caldwell has a fascinating piece at City Journal about “The French, Coming Apart” He writes about Christophe Guilluy who has spent decades in France as a housing consultant in rapidly changing neighborhoods, studying gentrification, social problems, immigration tensions, deindustrialization, economic decline, ethnic conflict, and changes in politics and the rise of populist parties.  It is a ground-level look, Caldwell says, at the economic, residential, and democratic consequences of globalization in France.

France’s political system is as polarized as our own, this discussion arises in the midst of a French election which has selected Marine Le Pen described as a far-right nationalist or populist and Emmanuel Macron, a representative of France’s elite who is apt to win decisively, but to represent the status quo which is hugely unpopular. Unsurprisingly, immigration is a major issue. President Hollande’s approval rating is down around 6 percent, Macron represents more of the same, apologizes for French colonialism, and is a fierce defender of France’s open immigration system.

A process that Guilluy calls métropolisation has cut French society in two. In 16 dynamic urban areas (Paris, Lyon, Marseille, Aix-en-Provence, Toulouse, Lille, Bordeaux, Nice, Nantes, Strasbourg, Grenoble, Rennes, Rouen, Toulon, Douai-Lens, and Montpellier), the world’s resources have proved a profitable complement to those found in France. These urban areas are home to all the country’s educational and financial institutions, as well as almost all its corporations and the many well-paying jobs that go with them….

Most of France’s small cities, in fact, are in la France périphérique.) Rather, the term measures distance from the functioning parts of the global economy. France’s best-performing urban nodes have arguably never been richer or better-stocked with cultural and retail amenities. But too few such places exist to carry a national economy. When France’s was a national economy, its median workers were well compensated and well protected from illness, age, and other vicissitudes. In a knowledge economy, these workers have largely been exiled from the places where the economy still functions. They have been replaced by immigrants.

Guilluy shows that if French people were willing to do the work in the prosperous urban centers, there would be no place for them to live. It’s an interesting look at French societal problem, but also at British and American developments. Caldwell calls it globalization, but I’m not sure that it isn’t something quite different. Working class Frenchmen no longer exist in Paris. Multiculturalism, artificial intelligence, freedom of speech, political correctness, socialism. Some of the same effects led to Britain leaving the European Union.  70% of Frenchmen tell pollsters that there are too many foreigners in France. Jews are leaving at the rate of around 7,000 a year, fearing for their safety.

I remember reading, years ago, that the globalist NGOs saw the future of America as the people crowded together in very large high-rise cities with connecting roadways, and the land returned to wilderness in between. One wondered where the food would come from, among other things. but this piece brought back that memory. The big cities of the country are becoming unaffordable, with tiny houses, and apartments made of shipping containers, to crowd more people in. My own sleepy suburb has become a high-rise city with affordable living apartments developing all over. Reports of tiny spaces renting for outrageous sums in the Bay Area abound.

It is an interesting piece and both disturbing and thought-provoking. If you want to be provoked into pondering just where we are going, I recommend it. Paul Mirengoff at Power Line writes about it as well, but mostly in reference to the French election.

Makes me wonder if in pursuit of “draining the swamp” in Washington D.C. it wouldn’t be a good idea to move some agencies out to cities across the country. It’s getting way too incestuous back there.



American Indians Are Still Getting a Raw Deal by The Elephant's Child

Keep this in mind when considering health care. The federal government is incapable of doing good health care (except for Congress) and the Indian Health Service is a prime example, along with the VA.




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