Stopping Printing “Mad Money” to Restore The Economy

Higher Taxes-Bad for the Economy, Bad for Business

The U.S. Government seems to think they can solve our debt problem by creating more debt. Monetizing government debt is what third world countries do.  Today in Zimbabwe, for example, the government has printed so much money that the smallest denomination bill you can own is $1 billion – enough to buy a single loaf of bread! 

There is convincing empirical evidence that the rate of inflation is directly tied to the growth in Money Supply. In other words you cannot simply turn on the allegorical printing presses to create “vapor paper” without ominous consequences.

If dollars were as available as sand on the beach, how valuable would they be? The more you have of something the less it is worth. Nothing too complicated about this. A devalued currency reduces your buying power as inflation soars. It is a form of stealing from you.

The last thing an uncertain U.S. economy needs is a large tax increase. For businesses, especially small and medium size, a tax increase in this economy could push many companies into bankruptcy. 

It does not matter if our taxes were quadrupled; there is not enough money in America to bring redemption to the multitude of social problems inflicting our world.  The solution is an expanding tax base. Consider this. Nearly half of our states when combining federal and state income taxes already lead the world in the highest corporate tax rates of any industrialized country.  If Iowa, Pennsylvania and Minnesota were countries they would be the top three highest taxed in the world. Massachusetts, Alaska and New Jersey would be four, five and six.

If you had to put your finger on the best way to expand America’s tax base, it would start with reversing our trade deficit.  Our trade deficit is once again tracking to exceed $800 billion.  It is widely believed that market barriers, manipulations and distortions cost the United States $500 billion annually. I personally believe it is much more.

The corporate taxes paid on these lost sales assuming a 12% pre-tax income and a 40% federal and state combined tax rate would be $24 billion per year.  The U.S. may have a lost a step or two as the world’s leading economic power, but when it comes to taxing our corporations until they flee our shores and taxing the rich until there are rich no more, America is clearly at the front of the line.

Sep 4, 2010 Palm Beach County tax rates climbing, while government services cut amid struggling economy (Sun Sentinel) It amounts to a 1 percent cut in schools' general fund budgets. The district continued its salary freezes for all 21,000 employees.    more...  

Sep 4, 2010 Where N.M. Voters Stand On The Budget and Vouchers (Albuquerque Journal) But even the combination of cuts and tax hikes hasn't been enough, and Gov. The rest of the budget is used for transportation, health, public safety and all other state government services. Survey results for the statewide voter sample have a margin of error of plus or minus 5 percentage points.    more...  

Sep 4, 2010 Pleasant Hill utility tax ballot measure draws support, derision (Contra Costa Times) They argue that the utility tax would provide a steady source of income that the state can't take away. Is that when we go forward and ask?" Currently, the utility tax only applies to intrastate landline phone service, and brings in about $189,000 per year. Wendy Lack, who opposes Measure T,...    more...  

Sep 4, 2010 Democrats say new tax plan would cut Cailfornia deficit without raising taxes (The Sacramento Bee) Democrats originally proposed a 1.65 percent rate. But the Legislative Analyst's Office and other reviewers concluded that the plan would have cost middle-class taxpayers more in fiscal 2011-12. But the same filer would, on average, receive a $112 federal deduction and a $524 reduction in sales...    more...  

Sep 4, 2010 Buyers line up for bids on delinquent property (The Commercial Appeal) Here's how a tax sale works: A landowner doesn't pay his or her taxes and they become delinquent. FRTL of Denver spent $689,000, while College Investments of Meridian, Miss., shelled out almost $390,000, said Tammy Rhoda, deputy tax collector. So far, Mary Essary said, there have been interest...    more...  

Sep 4, 2010 Corn dogs ... and taxes (Pioneer Press) This is not the answer for Minnesota." Horner denied that he would tax those sales and services. Paul." (It's "blatantly untrue" the state aid is paying for sidewalk poetry, said Bob Hume, St. The sidewalk poetry is funded by Public Art St.    more...  

Sep 3, 2010 Democrats running on austerity (Washington Post) President George W. Bush's tax cuts, enacted in 2001 and 2003, are scheduled to expire this year. Senate candidate Robin Carnahan of Missouri is one of several high-profile Democrats who advocate keeping the Bush cuts in place until the economy improves. When you look at the budget dynamics, that...    more...  

Sep 3, 2010 For Democrats, Economy Fuels Election Fears (New York Times) Many are embracing the stimulus package enacted soon after Mr. Giffords.Representative Walt Minnick, Democrat of Idaho, boasts at home that he opposed the stimulus package and Mr. Obama to get more engaged in the fight to end the tax cuts for the wealthy.    more...  

Sep 3, 2010 Dems have few options on economy (Politico) If you’re President Barack Obama, you go out and talk about the economy — in Milwaukee on Monday, Cleveland on Wednesday and at a White House news conference Friday. Why should anything proposed so close to the election be treated any differently? Timing is to politics what location is to...    more...  

Sep 3, 2010 Beaches spot on Jacksonville City Council filled as steep tax hike proposed for area (The Florida Times-Union) Charlie Crist appointed Dick Brown, a former Neptune Beach mayor and Jacksonville City Council member, to the position, making the third change to that council seat in the past year. It was 0.5 mills less than what Jacksonville should have charged Beaches property owners under an interlocal...    more...  

Sep 3, 2010 Despite budget cuts, NJ homeowners still face sky-high property taxes (Asbury Park Press) The bottom line is this: Higher taxes are coming to New Jersey. The property owners are paying dearly. "Loch Arbour is not a wealthy community," McBain said. "We are working-class schlubs, most of us. The borough has entered into several shared services agreements with nearby municipalities,...    more...  

Sep 3, 2010 White House considers pre-midterm package of business tax breaks to spur hiring (Washington Post) Policy staffers are debating a range of options. For example, a payroll-tax holiday - a top priority of many business groups - could be applied only to new hires or extended to current employees. And depending on its form and duration, a payroll-tax holiday could cost more than $300 billion.    more...  

Sep 3, 2010 Would Neumann's plan to eliminate 2011 property taxes work? (The Wisconsin State Journal) No, according to Todd Berry, president of Wisconsin Taxpayers Alliance. Berry said the proposal is really a "tax deferment." Homeowners still have to pay those taxes. This includes older homeowners who have paid off their mortgages.    more...  

Sep 3, 2010 State lawyers win another round in cigarette tax battle (The Buffalo News) The games being played there are mirroring what we do in our casino operations.    more...  

Sep 3, 2010 New tax breaks for business on table (Washington Post) For example, a payroll-tax holiday - a top priority of many business groups - could be applied only to new hires or extended to current employees. It has become a joke."Many economists say Obama's policies have been reasonably effective at pulling the nation back from recession. And depending on...    more...  

Sep 3, 2010 Panel recommends gas tax boost for roads (The State) Nikki Haley, R-Lexington, has said she favors restoring a sales tax on groceries. Tax commission Don Weaver unsuccessfully pushed to keep the two tax exempt. "We're talking about adding a tax to the necessities of life. Groceries were made tax exempt only in 1997. --Charging a 1.25 percent tax...    more...  

Sep 3, 2010 In tax spat, Baker's right (The Boston Globe) Property taxes have continued to do what they usually do - creep up a little every year. Yes, it has hurt state tax revenues, but the fact is, Patrick was guilty of overpromising in 2006. Beacon Hill also ended a property-tax exemption on telephone poles and wires.    more...  

Sep 2, 2010 Abandoned properties saddle county with unwanted surplus (The Indianapolis Star) But as the housing market remains stale -- and the number of properties going to tax sale grows -- that tactic, increasingly, is becoming ineffective. Housing experts say investors who typically would buy and rehab the properties no longer see profit potential in it. When people frequently...    more...  

Sep 2, 2010 Rep. Eddie Bernice Johnson repays Congressional Black Caucus Foundation for scholarships (The Dallas Morning News) Johnson was among the 425 lawmakers voting "aye" that day. From 2002 to 2005, Johnson served on the Black Caucus Foundation's board.    more...  

Sep 2, 2010 Onorato decides to back shale gas extraction tax (Pittsburgh Post-Gazette) But Democratic gubernatorial candidate Dan Onorato thinks his support for an extraction tax on Marcellus Shale gas will be a political plus in his race against Republican Tom Corbett. Mr. Onorato did pledge opposition to increases in the state sales tax, personal income tax and gasoline tax....    more...