Left of left-wing liberals like Obama & Company and Jerry ‘Moonbeam’ Brown, think that raising taxes is some sort of panacea to cure-all the revenue induced ills of government. The real successes result in lowering taxes, not raising them. This is a concept that another Democrat President understood.
John F. Kennedy comprehended it, implemented it and had success with it. To quote JFK……..
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964
According to some news media, the recent lowering of the temporary state sales tax and vehicle registration fees in California (due to Jerry ‘Moonbeam’ Brown’s failure to extend the them) has, in a matter of days, caused an increase in people buying ‘big ticket’ items they perhaps would not have had it been extended again.
It’s such an obvious move (unlike the two Obama administration “stimulus packages’ that failed), that even Bill Clinton ‘gets’ it. According to Politico……..
President Bill Clinton says the nation’s corporate tax rate is “uncompetitive” and called for a lower rate as part of a “mega-deal” to raise the debt ceiling.
It doesn’t make sense anymore — we’ve got an uncompetitive rate. We tax at 35 percent of income, although we only take about 23 percent. So we should cut the rate to 25 percent, or whatever’s competitive, and eliminate a lot of the deductions so that we still get a fair amount, and there’s not so much variance in what the corporations pay.
Let’s face it folks. America is overtaxed and uncompetitive with the world, and that’s just on the Federal level. Figure in a state like California and you add to the misery index for corporations. California has the 2nd highest tax rate, the only one worse is Rhode Island.
Let’s take what President Clinton is talking about and go one step further. Increasing the misery index are the burdensome regulations not only imposed on a Federal level but also on a state level. One could again look at California. Business not only has to deal with Federal OSHA, they also get to deal with CAL OSHA, they don’t only have to deal with the Federal EPA, they have to deal with the onerous California State Water Resources Board. It’s double jeopardy, which frequently results in double costs to businesses.
Finally, I’ll put forth what is going on between Boeing and the National Labor Relations Board. The latter are trying to prevent Boeing from opening a plant in South Carolina, a right to work state (aka non-union). Yes, we now have the Federal Government attempting to overstep their bounds and start telling businesses where they can operate, or not, as the case may be, in an effort to appease their big union backers who appear to own them lock, stock and barrel.
If the United States of America is going to compete with the likes of China and many other countries on the planet, the government needs to wake up and lower taxes, reduce onerous business regulations and stop attempting to interject themselves into the decisions of private business.
If this does not happen soon, I predict many more businesses will be either leaving the country for greener pastures or folding up, crushed by onerous taxes and regulations. I would ask the Obama Administration and others to think about where their campaign donations will come from when their union buddies are out of work?
More insane minds? Time will tell.