It appears more and more likely with each passing day that we’ll wind up with an Obama administration. If Obama is elected, we will face a lengthy list of policy proposals that are supposed to help the less fortunate but in fact just kill economic growth. He would expand the welfare roles through tax credits to those who pay no taxes, restrict the freedom of employers to pay workers what they are worth, grant unions and government officials power over workers and business, and put government in the business of …
Barack Obama argues that his tax rebates, many of which will go to households paying no income tax will “offset the payroll tax they pay,” and are, therefore, not welfare. But there are two big problems with this line of argument. First of all, Social Security taxes (the main part of payroll taxes, constituting 6.2% out of the total 7.65%) are supposed to go in a special social security trust fund. The program is supposed to play the role of a retirement investment fund, except that some of the wealthier …
Obama claims that his plan would only hurt 3% of small businesses. But this is highly deceptive. He isn’t lying, but the reports that he cites mean something very specific. They do not mean that 97% of small businesses won’t see higher taxes under Obama’s plan than they see today. Nor do they mean that these businesses would not see higher taxes under Obama’s plan than under McCain’s plan. All the statistic means when is that most businesses would not see higher taxes under Obama’s plan than they would see …
(Newscom) Barack Obama has claimed he would lower taxes on 95% of workers — even though more than 40% of tax filers don’t even pay taxes. What he says is true, but what it really means is that he is reintroducing a massive increase in the welfare state, costing about $30 billion per year. According to the Center for Data Analysis’ microsimulation modeling, Obama would increase the number of tax filers who receive a check from government without paying any taxes, including payroll taxes — people filing just to receive …
Fannie Mae and Freddie Mac were created during the New Deal by the Roosevelt administration in order increase home ownership. With government backing and price controls, the supply of housing was artificially increased, with the funds coming from the taxpayer. Even when Fannie and Freddie were made into government sponsored enterprises (GSEs) in the 1960s, they were still provided the financial support of the Federal Government. Because of their implicit government guarantees, these policy-based suppliers came to dominate the housing market. As GSEs, Fannie and Freddie purchased 44% of subprime …
Time magazine ran a story back in 2007 on “The Case for National Service.” The story described the positions of the candidates for president on expanding “public service” programs. Two of the Democrat candidates favored mandatory community service by all high school students. And two others — Hillary Clinton and Joe Biden — favored creation of a U.S. Public Service Academy for training civil servants. Barack Obama has centered speeches around this idea of public service. He waxes sentimental about what we can each do for our country. All in …
More than 75% of the world’s oil reserves are controlled by national oil companies. Of the world’s top 20 oil-producing firms, 14 are state-run. Those areas where private companies have been able to drill have recently been shrinking, and remaining private companies are facing hostile governments that may try to nationalize them. Meanwhile, Congress, pandering to the least economically sound sentiments of the American public, recently tried to pass a bill to curb oil market speculation. This, lawmakers argued, was the way to get prices down. Speculation is just trading …
Recently, a scandal has broken out that provides great insight into the housing crisis. Countrywide Mortgage brokers have been treating Congress to VIP lending rates. Accepting donations of $100 or more is illegal for these politicians, but scandals like this are not uncommon. The deeper question is why a profit-seeking business like Countrywide would want to offer discount rates to government officials in the first place. It is, of course, because they expect something in return. If government could not offer these businesses any preferential legislation, exemptions from taxes or …
