Posted by
JDW on Wednesday, October 29, 2008 8:06:11 PM
A couple weeks ago when Sen Obama was in Grand Rapids he was lamenting the loss of many automobile and other manufacturing jobs. He and most people seem to blame greedy corporations; but, maybe we need to look at what kind of business enviroment our politicians like Barack and others have created in the U.S. (and Michigan).
According to a Wall Street Journal article the top 10 states that are losing people and jobs have high taxes and a closed workshop. The top 10 states gaining people and jobs have low taxes and a right to work law. Guess what Michigan has? maybe tax policy matters!!
The same article also stated that if you were to start a business here in the U.S. one would pay $1 billion dollars more in costs here than if you started the same business in Ireland or any other country that has a low corporate tax law. Since the U.S. has a tax rate of 38% most countries in the world have a lower corporate tax rate than us. So corporations are not always stupid and will move to the state or country that is the easiest to do business in.
In 2010, the tax cuts President Bush gave to everybody in 2001 and 2003, will expire. No matter what he says on the campaign trail this year Senator Obama will be raising your taxes, he doesn't want to extend the cuts or make them permanent. When Pres. Kennedy, Reagan, and Bush cut taxes the economy grew, revenues increased, and the stock market went up to record levels in each period. Since the stock market is generally forward looking are we already getting the "President" Obama crash ??
Thomas Jefferson:
Would it not be better to simplify the system of taxation rather than to spread it over such a variety of subjects and pass through so many new hands.
Excessive taxation...will carry reason and reflection to every man's door, and particularly in the hour of election.