Obama Cuts Obama’s Fault, Part 1
Blaming Bush for everything what a novel approach. But that time is over. It is all on the door of Obama now. Now what will he do, blame any and all cuts on Bush? Obama must have never heard of Trumans little sign “The BUCK STOPS here” that was on his desk. Does Obama have one the reads “PASS the BUCK?”
Problem
Keynesian economics, had this theory worked China would have had no need to maintain a near true laissez-faire, capitalist, system in Hong Kong. Beijing did however realize that in order to move forward economical they would have to have a gateway, Hong Kong.
Statism might work in the mainland but they would have to use the near laissez-faire Hong Kong. However Beijing has caused major problems that they may not be able to continue to prop up using this almost Keynesian system. They have a housing crisis that will make that in America pail. They have built whole cities all they need are residents.
Australian TV Documentary on China’s new Cities and Housing.
Obama and his crew have doubled down on their bet that the government will bring America out of recession. Somehow they did not learn the facts of government intervention and taxing. Taxes are used to control behavior of the populace. Simply put if you want people to do or buy something there are tax breaks and credits. If the ruling class wants the populace not to do or buy something they increase taxes, putting it out of the price reach of most people.
Luxury Tax
Look a few years back at the United States Luxury Tax. It was enacted in 1990; it was a boom for companies outside the United States. But why, taxes were only on the rich. If they bought a yacht they paid a 10% tax on a purchase of $100,000 or more. It is not like they could not afford it.
What they did do was not buy American made boats, and on the occasion that they might buy one it was owned like others though a business or some legal entity in the Caribbean or other place. The lawyers and counties were they domiciled the vessel where the winners. Companies in the United States that made them were the losers. They lost sells and laid-off employees.
The United States expected to rake in about $9 Billion in increased revenue over the first 5 years. It did so well the first that after collecting the very few 10’s of millions of dollars in revenue and paying out all the new unemployment benefits, Congress scraped the tax.
Just look at Senator John Kerry of Massachusetts. The Massachusetts resident bought a beautiful “76-foot New Zealand-built Friendship sloop” which he berthed in Rhode Island to save about $500,000 in taxes. See the Boston Herald article “Sen. John Kerry skips town on sails tax” By Gayle Fee and Laura Raposa.
Related:
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