Archive for the ‘Fiscal Policy’ Category

The Rain In Spain

October 4, 2011

For seven years, Jeremiah Ekenobaye made a good living in Spain. Now 38, the Nigerian immigrant says he worked as a van driver, obtained his residency permit, and even bought a flat in the fast-growing Madrid suburb of Parla.

Now, on a weekday morning, he is standing on a street corner looking for work. He depends on government handouts of €530 ($702) a month – less than half the amount he needs just to pay his mortgage – and is convinced that the bank is about to repossess the flat where he lives with his wife and three children.

more.

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Tax Burden by Provinces

September 25, 2011

Who is paying taxes in Canada?  Alberta and Ontario are.

read more.

WH Scrambles to Close 15 ‘Green’ Loans

September 19, 2011

God forbid the taxpayers get their money back…

As mandated by the stimulus bill, the Obama administration has until September 30 to “spend” all the funds allocated for the Department of Energy loans program, which guaranteed a $535 million loan to the now defunct solar company Solyndra. The program has already allocated about $8 billion so far, but has an additional $10 billion worth of loans in the works that must be finalized before the end of the month or the money will be reclaimed.

more.

Solyndra Not Sole Firm to Hit Rock Bottom Despite Stimulus Funding

September 17, 2011

At least four other companies have received stimulus funding only to later file for bankruptcy, and two of those were working on alternative energy.

more.

Big Government: Regulation Business, Jobs Booming Under Obama:

August 19, 2011

Hope and change.

If the federal government’s regulatory operation were a business, it would be one of the 50 biggest in the country in terms of revenues, and the third largest in terms of employees, with more people working for it than McDonald’s, Ford, Disney and Boeing combined.

The American Debt Ceiling and Arguments for a Flat Tax

July 27, 2011

In America, the middle class and lower income brackets contribute very little or nothing at all to taxes.  This is radically different from Canada.  In the US, the federal basic tax exemption is around $45k vs Canada’s roughly $10.5k.  State tax exemptions vary drastically, with California at $55k, and Texas not collecting a state income tax.

The simply matter is progressive tax brackets are dangerous.  When the economy is booming it’s rather easy to shift the burden to the wealthy.  But when the recession comes, your tax base dries up.  Think of it this way, a person with an income of 10 million annually suddenly finds the market sour and is now only making 1 million annually.  At first, most people (being jealous bitter little things) say “so what? Poor baby has only a million dollars now.”  But the problem is you just lost 9 million in taxable revenues.  This is how massive government deficits arise during recessions.  You simply don’t have the same wealth to lay the punishing “rich pay their fair share” taxes upon.

Now, the best solution is obviously no income tax and use consumption taxes to finance the government.  Of course, this also requires fiscal restraint and a government that truly understands it’s role is to provide only the most essential of services, and it is not responsible for charity work, moral enforcement, and the like.  Good luck with the leftists elites.  A thousand Grecian style collapses could happen and they still wouldn’t understand.

Failing a consumption only tax system, a flat tax is your next best approach.  However, flat tax revenues will still swing with the fortunes and misfortunes of the rich.  Consumption taxes tend to remain pretty steady.  The requisite fiscal restraint is really the only true barrier.

Finally, do a little research on Texas.  You will find that:

  • Texas has no state income tax.
  • Texas has the strongest economy in the US.
  • Texas responsible for over 50% of all new jobs.
  • Texas has steady state revenues, even in the recession.

And here’s the article that started this post:

As is well known, the president has also drawn his line in the sand; he has insisted that the new revenues needed to close the deficit must be obtained from either raising taxes on affluent individuals or raising corporate taxes. The vulnerable and needy are to be kept free from their share of the tax burden.

more at hoover.org. ht SDA

Thanks Obama.

July 21, 2011

SAO PAULO, July 20 (Reuters) – After three decades spent battling their own debt crises and getting constantly lectured about them by Uncle Sam, many Latin Americans are watching the countdown to a possible default in Washington with a mix of schadenfraude and fear of what a collapse might mean for them.

more.

Canada’s housing bubble deemed close to bursting

June 30, 2011

Canada’s housing market is in a bubble that’s set to burst and prices could plunge by as much as 25 per cent, a major independent research firm warns.

“Housing valuations have lost all touch with fundamentals and household debt is at a record high,” economists at the economic research consultancy Capital Economics say in their most recent Canada Economic Outlook, issued Wednesday.

“Our fear is that, with the housing bubble now close to bursting and commodity prices retreating, Canada will go from leader to laggard.”

The report predicts a fall in house prices by as much as 25 per cent over the next three years.

http://www.cbc.ca/news/business/story/2011/06/29/housing-bubble-capital-economics.html

Canada Post Strike / Lockout and Government Employee Unions

June 23, 2011

Governments should not be involved in any service that is non-essential.  Any service that the government provides should be considered essential to the public interest.  The private sector should duke it amongst themselves providing all non-essential services.

If a service is essential, it should not ever be interrupted.  Government workers should not be allowed to unionize.  Yes, they may wish to work collectively to negotiate and discuss better working arrangements.  However, striking (and therefore interrupting)  a service considered essential to the public should be illegal.  Secondly, workers can simply choose other occupations like most people who don’t like their jobs consider doing.  Thirdly, a little dose of “suck it up” is sometimes appropriate.  Working for a living is always going to suck to some extent.

The government should look seriously hard at all services and apply this logic.  Decommission  all branches of government that are non-essential. Cancel the abilities of unions to hold their fellow citizens hostage.

Fanniegate: Gamechanger For The GOP?

June 8, 2011

http://blogs.the-american-interest.com/wrm/2011/06/07/fanniegate-gamechanger-for-the-gop/

The villains?  An unholy alliance between Wall Street, the Democratic establishment, community organizing groups like ACORN and La Raza, and politicians like Barney Frank, Nancy Pelosi and Henry Cisneros.  (Frank got a cushy job for a lover, Pelosi got a job and layoff protection for a son, Cisneros apparently got a license to mint money bilking Mexican-Americans of their life savings in cheesy housing developments.)