Archive for the ‘capitalism’ Category

Obama’s Spending, Debt, Taxes Will Lower America’s Standard of Living

May 14, 2009

Stuart Varney says, “America’s standard of living, especially for Middle Class America, is likely to stagnate or drop due to the Obama administration’s spending and debt.”

Varney is the British economic journalist, currently working for the Fox News Channel.

He said he expects taxes to go up to pay for all the spending and debt and anticipates a recovery.

But he has concerns that the recovery will not return average wage earners to the prosperity they once enjoyed due to new taxes and inflation…..

Taxes: People and Business Flee Higher Rates; Why Can’t Obama, Congress Get That?

May 13, 2009

Other things being equal, would you start a new business in a higher- or lower-tax jurisdiction, and would you prefer to live and invest in a higher- or lower-tax locale?

By Richard Rahn
The Washington Times

If a U.S. business operating globally has to pay a 35 percent (U.S.) corporate tax rate (the second-highest in the world) plus state corporate taxes while its international competitors pay much lower rates, the U.S. company will be at a competitive disadvantage. Rather than provide necessary tax relief, the new Treasury proposals, if enacted, will give American multinational companies two basic choices for the long run – move the company outside the United States to a more tax-friendly jurisdiction, or go out of business and fire the workers.

It will come as no surprise that many of the officials and members of Congress who are behind this piece of economic foolishness come from high-tax states such as New York, Illinois, Michigan and California and seem to be oblivious to the fact that many of their most productive and highly paid residents are in flight to states with no personal income tax, such as Texas, Florida, Tennessee and Nevada.

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California, Britain as Obama’s Canaries in the Mineshaft of Taxes, Spending

May 4, 2009

President Barack Obama has promised that government can solve all social and economic woes and his spending far outweighs his anticipated revenues as far as the eye can see.

Others have tried this before.

Britain has prided itself in its social welfare network and government medical care — but the cost have always  exceeded what Britain had to spend.  Now the government of Gordon Brown is discussing an income tax of 50% on top earners and those same top earners are discussing making their homes elsewhere.

In California, voters burdened by higher taxes are voting with their feet and leaving California and those that stay are not voting for legislature mandated tax increases.

President Obama’s mantra of health care, environment and education spending, while not resisted by a liberal Democrat majority in the House and the Senate may not be as widely embraced in the American countryside as President Obama has always hoped.  People are starting to doubt that more spending, more debt  and more taxation is a good thing — and the tea party gatherings though small are unprecedentated in American politcs and need to be watched.

Obama’s tinkering turned intrusion in industry, banks, and even Wall Street may have far reaching and unexpected repurcussion for the Democrat Party and Mr. Obama himself.

Tea Parties Tell Us: The Real Culture War Is Over Capitalism

April 30, 2009

There is a major cultural schism developing in America. But it’s not over abortion, same-sex marriage or home schooling, as important as these issues are. The new divide centers on free enterprise — the principle at the core of American culture.

By Arthur C. Brooks
The Wall Street Journal

Despite President Barack Obama’s early personal popularity, we can see the beginnings of this schism in the “tea parties” that have sprung up around the country. In these grass-roots protests, hundreds of thousands of ordinary Americans have joined together to make public their opposition to government deficits, unaccountable bureaucratic power, and a sense that the government is too willing to prop up those who engaged in corporate malfeasance and mortgage fraud.

The data support the protesters’ concerns. In a publication with the ironic title, “A New Era of Responsibility,” the president’s budget office reveals average deficits of 4.7% in the five years after this recession is over. The Congressional Budget Office predicts $9.3 trillion in new debt over the coming decade.

And what investments justify our leaving this gargantuan bill for our children and grandchildren to pay? Absurdities, in the view of many — from bailing out General Motors and the United Auto Workers to building an environmentally friendly Frisbee golf course in Austin, Texas. On behalf of corporate welfare, political largess and powerful special interests, government spending will grow continuously in the coming years as a percentage of the economy — as will tax collections.

Still, the tea parties are not based on the cold wonkery of budget data. They are based on an “ethical populism.” The protesters are homeowners who didn’t walk away from their mortgages, small business owners who don’t want corporate welfare and bankers who kept their heads during the frenzy and don’t need bailouts. They were the people who were doing the important things right — and who are now watching elected politicians reward those who did the important things wrong.

Voices in the media, academia, and the government will dismiss this ethical populism as a fringe movement — maybe even dangerous extremism. In truth, free markets, limited government, and entrepreneurship are still a majoritarian taste. In March 2009, the Pew Research Center asked people if we are better off “in a free market economy even though there may be severe ups and downs from time to time.” Fully 70% agreed, versus 20% who disagreed.

Free enterprise is culturally mainstream, for the moment. Asked in a Rasmussen poll conducted this month to choose the better system between capitalism and socialism, 13% of respondents over 40 chose socialism. For those under 30, this percentage rose to 33%. (Republicans were 11 times more likely to prefer capitalism than socialism; Democrats were almost evenly split between the two systems.)

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