Filed under: Domestic Policy, History, Economy, Democrat Corruption, Taxes, Capitalism, Free Markets | Tags: Partisan Politics, Economic Ignoramuses, America's Corporate Taxes
Here’s the difference between Democrats and Republicans —clear and simple.
President Obama has nattered on about “Economic Patriotism” and what they call “Corporate Tax Inversion.” Some corporations are finding it to their advantage to locate their headquarters in a country with significantly lower taxes. Medtronic is acquiring the Irish company Coviden and moving its corporate headquarters to Ireland.
The problem is American corporate taxes — which are the highest, at 35 percent, among the advanced economies in the world. Not only that, but the U.S. also taxes the income that American corporations earn overseas — something no other country does.
Democrats are up in arms. How dare they pick up and move? It’s not even patriotic to not pay taxes in your own country. Democrats intend to make “Economic Patriotism” a major issue in the fall campaign. (Good Democrats all hate big business).
Treasury Secretary Jack Lew, who should know better, has advocated “anti-inversion legislation.” Democrats are afraid that if a few companies do this it will open the floodgates and all sorts of American companies will locate abroad. Corporations who operate in the United States would still pay taxes on all the income earned in the U.S. but they won’t be paying double taxes to a foreign country and to the U.S. That gets very expensive, very fast.
There is, of course a very simple solution. You cut the corporate tax rate back to a rate more in line with other nations — or, gasp, even below. Yes, this is a Republican thing. Republicans like to cut taxes. The result would be a burst of activity from business, hiring, expanding, growing. The economy might even actually recover. It is how we have recovered so quickly from past recessions when Republicans are in charge.
Burger King has purchased Canada’s Tim Horton chain of coffee and donut shops, and plans to move their headquarters to Canada, where tax costs will be 46.4% lower. Canada has lowered their corporate tax rate from 43 percent in 2000 to 26 percent today. How much tax revenue did Canada lose by the dramatic reduction in their corporate tax rate? None. The lower tax rate raises more money.
For Democrats, this simply does not compute.
Secretary Lew said the corporate tax moves would mean that “all other taxpayers —including small businesses and hardworking Americans—will have to shoulder more of the responsibility of maintaining core public functions that everyone, particularly U.S. businesses, depends on.” Sigh. This man is the Secretary of the Treasury!
Lew’s remarks, delivered at an event hosted by the Tax Policy Center in Washington, came the same day Bloomberg News reported that Sen. Charles Schumer (D-NY) will soon introduce a bill that would slash the amount of interest an inverted firm can deduct from its U.S. income from 50 percent to 25 percent.
Filed under: Capitalism, Economy, Education, Energy, Environment, Health Care, Intelligence, Law, National Security, Taxes | Tags: Democrats/Liberals/Progressives, Election 2012, Partisan Politics
We have reached an odd place in current affairs. It seems to me that if Republicans said “Up,” Democrats would pronounce “Down.” Although Republicans may think that what the Democrats are doing is wrong, or ill-advised, or mistaken — they understand what Democrats think and are unsurprised.
Democrats, of course, think that what we claim is wrong, they also think we’re lying, our motives are to harm minorities and the poor, our statistics are just plain false and we only like rich people. They really, really hate us, primarily because we have the temerity to disagree with them. They would prefer that we just go away and quit annoying them.
Am I overreaching here? Am I too suspicious? I need a little help.
Filed under: Capitalism, Democrat Corruption, Economy, Election 2012, News the Media Doesn't Want You to Hear, Politics | Tags: Partisan Politics, Peace and Love?, Why We Are Unloved
Here’s Bill Whittle to explain just how perfectly awful those rascal Republicans are, in case you wondered.
Filed under: Democrat Corruption, Economy, Energy, Progressivism, Taxes | Tags: Harry Reid, Partisan Politics, President Obama
On Friday President Obama was wrapping up a two-day swing through Missouri and Nevada, delivering a speech on clean energy that could give a boost to Senate Majority Leader Harry Reid, who is in a difficult fight for re-election. On Friday, he gave a speech at the University of Nevada, Las Vegas combining policy and politics.
He called on Congress to expand a clean energy tax credit that could pay off in Nevada, where Harry Reid is behind in the polls. Obama told his audience that a $5 billion increase in “clean energy” manufacturing tax credits could generate nearly 40,000 jobs, some of them in Nevada where 14 percent unemployment undermines Reid’s argument that his position as Majority Leader pays dividends to his state.
Reid, bucking for a fifth term, has been pushing hard for solar energy investments in Nevada’s hot climate. More sober analysts point out the experience of Spain, where every green energy job cost over two jobs in the regular economy because of the increased cost of energy. European governments are getting out of the “green energy” business as fast as they can, it has been a financial disaster for them. Britain is still home to true believers, and their economy is still in the tank.
In an interesting coincidence, just hours before Obama arrived in Nevada to hold a fundraiser for Reid, the Departments of Energy and Interior joined Reid in announcing a new “Solar Demonstration Zone” in Nevada where new solar technologies can be tested and developed.
I’m sure it was just coincidental. It would be tacky to use taxpayer money to buy an election for a supporter, wouldn’t it?