Will Obama break an already bent economy? Read this and tell me what you think.?
Obama may break bent economy
By Dick Morris and Eileen McGann
Tuesday, September 23, 2008 – Added 21h ago
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Whatever is left of the economy after the current round of crisis interventions by the Fed could go down the drain if Barack Obama is elected and carries out his plans for sharp increases in taxation. Even if Obama does not understand the linkage, most Americans do and will turn sharply against Obama’s tax plans if John McCain hammers away at the risk they pose for us all.
During the Great Depression, Congress raised taxes sharply in the Revenue Act of 1932. The top rate went from 25 percent to 63 percent. As a result, the real Gross Domestic Product dropped by 13.3 percent and unemployment rose from 15.9 percent to 23.6 percent.
In 1990, the first President Bush famously broke his “read my lips, no new taxes” pledge of 1988 and raised the federal gasoline tax and federal excise taxes, and imposed a 10-percent surtax on the top income bracket, raising its taxes to 31 percent. The recession that followed in 1991-1992 cost him re-election.
It is obvious that increasing capital gains taxes by a minimum of one-third and possibly doubling them, both of which Obama has proposed, would send a signal to investors to keep their money under the mattress. Who would buy stock knowing that the tax on any profits he or she will make is going to go up sharply if Obama becomes president?
Look at what happened just last year in Michigan. Democratic Gov. Jennifer Granholm raised taxes on almost everything. Income taxes shot up 11.5 percent, and the state’s 6 percent sales tax was expanded to dozens of new services, like investment advice, janitorial services, landscaping, ski lifts and carpet cleaning.
The $1.75 billion tax package shook the economy to its foundations. Michigan became the only one of the 50 states with a shrinking gross domestic product. The value of all goods and services produced in the state fell by 0.5 percent, while the national GDP rose by 3.4 percent. The state fell from 23rd in GDP to 35th. Taxes caused a disaster.
In a strong economy, Obama’s proposed tax increases would raise questions. In a weak economy, they portend a catastrophe. It would be like bleeding a sick patient, the medicine of 200 years ago, depriving him of blood even as he needs more, not less, circulating through his arteries.
McCain’s populist rhetoric, including his pledge to fire Securities and Exchange Commission Chairman Christopher Cox is important for a Republican candidate. But his focus should shift to the tax issue. With firms suffering, withering and dying for a lack of capital, tax increases on those who invest would be a horrible mistake.
Americans will realize this obvious fact, and McCain should use it to gain the advantage in discussing the economy.
There is no reason for the economy to work to Obama’s advantage when he is committed to a doctrinaire program of tax increases and spending hikes. McCain can use the issue to run rings around him.
Yes, he hates Milton Friedman Economics Theories.
Is it time to slap some tariffs for oil imports and on companies laying off americans ?
but yet are manufacturing goods overseas to bring back to USA?
Should goods sold in USA now be required to be clearly labeled where each component was made? So that if a good is entirely U.S. made that is the only time it can be classifed made in USA. If its put ogether in USA but of parts from overseas, then it should say built in USA and then list all the countries from where every part came from.
If its built in a U.S. territory but not actually in USA, it should say built in Guam or wherever else….etc…
The reason for a $ 10 a gallon on oil imports effective immediately would be to help the govt help fund innovation for the new green economy…and that money could not be used for any other purpose. The oil tariff would also make sure gas prices stay relatively high and do not drop down to a level where americans get comfortable again and go back to their old driving habits and gas guzzlers etc..
The purpose of the tariff on companies exporting jobs is obvious ..to give them an incentive to not do that.. That money would go strictly to help rebuild infrastructure and the green economy’s infrastructure grid.
I would also recommend shut down all banks in the country for a period of 3 days….at which time they would have to prove that they are economically viable enough to stay in business. After 3 days, only the top 70% of the banks would be allowed to reopen.
I would make the hoarding of gold illegal, and also ban short selling of stocks that are called naked shorts.
A moratorium on credit default swaps would be imposed for 2 months until a new system where these insurance products are treated as insurance and companies doing the insuraing would have to have the normal required capital reserves to back their risk levels.
I would also pass a law that forces banks to only do banks, insurance companies to only do insurance, investment companies to only do that etc… etc.. no commingling of moneys and risks..
no pain ..no gain people.
All banks receiving federal bailout money would have to laon out a certain amount of money to consumers and small businesses every month. The moment they miss the minimum…all bailout money received would be immediately due back immediately.
all automakers receiving bailout money would have to cut salary for the top 10% of their income earners by 20%. the same would be true of all other firms receiving bailout money;
scorpion you have your facts mixed…those are the kinds of policies implemented to get us out of the great depression….they were not the cause. The cause was (gulp) deregulation and tax cuts, greed and corruption and lost of sense of common purpose. sound familiar?
I would then ban HB1 visas
but encourage the education of americans for careers where we have shortages.
then I would seal the borders…..
then tell all illegals who can prove they have been working here in USA for 5 years or longer that they can get amnesty assuming they have not broken any other laws besides being here illegally. To all other illegals, I would tell them they need to go back to their countries and instruct border guards to let them out. They would have 2 months to do this. Then a crackdown would start on all companies hiring illegals…and they owners would face an auto 1 year in jail for every illegal found in their employ plus a $25,000 fine for each one as well. Special rules would govern the agricultural sector and agri companies would be able to shelter their illegals by getting them guest worker status.
you would not care to elaborate would you matt..as far as what specifically about my plan that would not work. The easiest thing to do is to slap a one word tag on ideas and dismiss them. It is highly unintellectual and lazy.
here I am typing words upon words of ideas…and here you come…calling it protectionism saying its bad and you are done. lol
freak boy……why? you make statements of cause and effect without proof or even attempt to back up your point. Once again, the great depression was caused by other factors which had tot do with greed, deregulation, corruption etc… Then steps had to be taken to solve the problem….. you are wrong to assert that tariffs caused the depression when that is something done to get us out of the depression.
regardless, I give good reasons and logic for my proposals….that you do not even address and just ignore..like the need to keep gas prices high so that we move in the right direction The import tariff I mention only applies to american companies to simply make them not close factories here in usa and go build them somewhere else and then bring goods back here. Prove to me why that would be a danger to the country……..dont just label things..give a reasonable plausibe pro or con idea… thats what intelligent debate is about.
Americans are so lazy intellectually. Bumper sticker philosophy is huge with a lot of us. People hear something once or twice and start repeating it…like drill drill baby.
Amen! Someone should forward a link of this page to all our Congress folks. Let them know what we think.
Why aren’t people caring about the future of the US?
I have been thinking about this from an economic standpoint, and we have gained very little.
The US birth mortality rate is lower than that of El Salvador. We are ranked 37th in health care. In terms of income distribution, we are ranked 92nd in the world.
83% of US stocks are owned by 1% of people. The number of Americans living on foodstamps is at 40 million, or 1 out of 5 people.
Only the top 5% of US Household incomes have earned enough additional income to match rapidly rising housing costs.
And for more doom and gloom, China holds over $1 trillion in US securities, perhaps another trillion more. What happens when they demand their money back? Say good bye to your cushy life, we are already the world’s poorest country, and we can be poorer.
The 25% of India with the highest IQ is greater than the population of the United States. China produces 10 engineers to 1 US engineer. The US is only ranked 19th in terms of Internet bandwith penetration.
What doesn’t make sense is that even though in households where men and women are both working, nearly half of them are unable to save for retirement, afford healthcare, or are living paycheck by paycheck.
We have gone from the world’s richest country to the world’s poorest and it amazes me how people in their partisan ways are fighting amongst each other. Do they honestly not care that we as a nation are suffering? US workers are too expensive. A garment worker in China makes 89 cents an hour. And the same worker in Cambodia makes 23 cents an hour. And you wonder why you lost your job.
So why are we not boosting education levels across the board? We put a man on the moon 30 years ago, but we can barely hold our own in this changing economy. Education levels continue to decline and Americans simply aren’t competitive as they used to be. The advantage of being a “US Worker” seems to have disappeared.
Edit: It has been 41 years since we first sent a man on the moon.
Sorry for 2nd typo, it is 1 in 8 Americans living on food stamps.
I wouldn’t say it is because of men. I’ve asked some of my peers in China their opinion and their statement was blunt. “Americans are lazy. A minority continue to work hard. Americans expect everything laid out for them when they come here.”
I pressed him for more and he says “The wealth of America isn’t real. It is all online. Your country doesn’t make tangible wealth aka manufacturing, industry, high tech research, etc.”
Because most people in the USA care more about stuff like what their fav celebs doing, or what new album is out, or anyother dumb thing the media tries to feed to the people.
Ask urself this….what gains more publicity right now….info about the current recession…..or Entertainment Tonight?
What is Your Thoughts? Obama’s Pet Billionaire Groupie Warren Buffett Owes Billions In Back Taxes?
Warren Buffet May Owe A Billion Dollars In Back Taxes
by John Hayward
Posted 08/31/2011 ET
Updated 08/31/2011 ET
Warren Buffett, President Obama’s pet billionaire, spends a great deal of time calling for tax increases on wealthy people. He began a recent New York Times op-ed, entitled “Stop Coddling the Super-Rich,” as follows:
OUR leaders have asked for “shared sacrifice.” But when they did the asking, they spared me. I checked with my mega-rich friends to learn what pain they were expecting. They, too, were left untouched.
While the poor and middle class fight for us in Afghanistan, and while most Americans struggle to make ends meet, we mega-rich continue to get our extraordinary tax breaks. Some of us are investment managers who earn billions from our daily labors but are allowed to classify our income as “carried interest,” thereby getting a bargain 15 percent tax rate. Others own stock index futures for 10 minutes and have 60 percent of their gain taxed at 15 percent, as if they’d been long-term investors.
These and other blessings are showered upon us by legislators in Washington who feel compelled to protect us, much as if we were spotted owls or some other endangered species. It’s nice to have friends in high places.
That’s right, serfs: anything your benevolent “leaders” in Washington allow you to keep is a “blessing” that has been “showered” upon you. All money rightfully belongs to the State. It’s about time you spotted owls got with the program.
Funny thing is, it turns out Buffett was being… shall we say… disingenuous when he claimed his “leaders” never got around to asking for his “shared sacrifice.” His company, Berkshire Hathaway, has been fighting the IRS tooth and nail to avoid paying its federal tax bill for nearly a decade.
How much of the State’s rightful money has this hypocrite been clutching in a white-knuckled death grip? Oh, only about a billion dollars or so. Bill Wilson of Americans for Limited Government tallies up the bill:
Using only publicly-available documents, a certified public accountant (CPA) detailed Berkshire Hathaway’s tax problems to ALG researcher Richard McCarty. Now, the American people have a better idea of how much in back taxes the company could owe Uncle Sam.
According to page 56 of the company report, “At December 31, 2010… net unrecognized tax benefits were $1,005 million”, or about $1 billion. McCarty explained, “Unrecognized tax benefits represent the company’s potential future obligation to the IRS and other taxing authorities. They have to be recorded in the company’s financial statements.”
He added, “The notation means that Berkshire Hathaway’s own auditors have probably said that $1 billion is more likely than not owed to the government.”
On top of this tax bill, figure the value of the time IRS agents have invested trying to collect it – they don’t work cheap, and we pay their salaries – and the resources Buffett’s people have invested fighting back. All of which would have been saved if Buffett simply practiced what he preached, and willingly handed over his fortune to the brilliant and compassionate “leaders” he commands the rest of us to support without resistance.
Warren Buffet is no different from the other liars and frauds orbiting Barack Obama. His hypocrisy just runs billions of dollars deeper. When it comes to “shared sacrifice,” you do the sacrificing, and they do the sharing.
John Hayward is a staff writer for HUMAN EVENTS, and author of the recently published Doctor Zero: Year One. Follow him on Twitter: Doc_0. Contact him by email at firstname.lastname@example.org.
Someone doesn’t understand the difference between Buffet personally being back on taxes and his company’s responsibility to shareholders.
Right now, it’s looking like that “someone” includes John Hayward and you.
Which political system and its business ideals do you prefer?
American corporation: You have 2 cows. You sell one, lease it back to yourself and do an IPO on the 2nd one. You force the 2 cows to produce the milk of 4 cows. You are surprised when 1 cow drops dead. You spin an announcement to the analysts stating you have downsized and are reducing expenses. Your stock goes up.
French corporation: You have 2 cows. You go on strike because you want 3 cows. You go to lunch and drink wine. Life is good.
Japanese corporation: You have 2 cows. You redesign them so they are 1/10 the size of an ordinary cow and produce 20 times the milk. They learn to travel on unbelievably crowded trains. Most are at the top of their class at cow school.
German corporation: You have 2 cows. You engineer them so they are all blond, drink lots of beer, give excellent quality milk, and run a hundred miles an hour. Unfortunately they also demand 13 weeks of vacation per year.
Italian corporation: You have 2 cows but you don’t know where they are. While ambling around, you see a beautiful woman. You break for lunch. Life is good.
Russian corporation: You have 2 cows. You have some vodka. You count them and learn you have 4 cows. You have some more vodka. You count them again and learn you have 8 cows. The Mafia shows up and takes over however many cows you really have.
Taliban corporation: You have all the cows in Afghanistan, which are 2. You don’t milk them because you cannot touch any creature’s private parts. You get $40 million grant from the US government to find alternatives to milk production but use the money to buy weapons.
Canadian corporation: You have 1 cow and 1 bull. The cow speaks English. The bull speaks French. Neither is happy with the other. Bureaucracy mandates duplicity. In disgust, both take life lying down.
Belgian corporation: You have 1 cow. The cow is schizophrenic. Sometimes the cow thinks she’s French, at other times she’s Flemish. The Flemish cow won’t share with the French cow. The French cow wants control of the Flemish cow’s milk. The cow asks permission to be cut in half. The cow dies happy.
Polish corporation: You have 2 bulls. Employees are regularly maimed and killed attempting to milk them.
Iraqi corporation: You have 2 cows. They go into hiding. They send radio tapes of their mooing.
Mexican corporation: You have 2 cows and many bulls. Both cows produce lots of milk for little profit. Most bulls produce little profit for lots of work. They are all ambassadors of their country. Corporate growth is slow. Supervising bulls are too numerous and lack documented degrees in their pasture.
Chinese corporation: You can only have 1 cow. If you end up with 2 cows, 1 will be shot and the government will send you the bill for the bullet.
Florida corporation: You have a black cow and a brown cow. Everyone votes for the best looking one. Some of the people who actually like the brown one best accidentally vote for the black one. Some people vote for both. Some people vote for neither. Some people can’t figure out how to vote at all. Finally, a bunch of guys from out-of-state tell you which one you think is the best-looking cow.
California corporation: You have millions of cows. They make real California cheese. Only 5 speak English. Most are illegals. Arnold likes the ones with the big udders.
Thanks for making my night. Lol
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