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« Reply #1 on: December 05, 2016, 04:14:08 PM » |
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________________________________________ The Patriot Post Digest 12-5-2016 From The Federalist Patriot Free Email Subscription ________________________________________
The Carrier deal has opened the door for a healthy discussion on America’s tax policy and two questions that must be answered: Are America’s economic markets actually free? Is global trade free and fair?
Before tackling those questions, let’s stipulate that America’s tax policies are generally unfavorable for business. The federal corporate tax rate is 35% (with another average 4% tacked on by states and local governments), making it the world’s third highest. The global average is 22.5%, and all of our major competitors, from China to Germany to the UK, have rates between 20% and 30%. Ireland’s is just 12.5%. Team Trump-Pence has promised to reduce America’s corporate tax rate to 15%.
Now, to those two questions about free and fair markets and trade.
Unfortunately, much of the criticism of Trump’s Carrier deal is valid. Cronyism is still cronyism when Trump does it.
But any criticism of Trump’s deal should likewise be dealt to each and every state for similar deals. The incentives offered by the state of Indiana to Carrier are really no different from favors dealt by any other state, or sometimes by the federal government (Solyndra, anyone?). Incentives range from educational grants for workforce development and retraining to childcare to site development to actual tax credits per job created to the subsidized price of energy. That’s how our system works. It’s not ideal, but Trump’s only playing the same game.
According to Good Jobs First, which tracks corporate deals and state incentive packages29, for the last two decades, New York State has awarded in excess of $25 billion to businesses through more than 77,000 subsidies. Louisiana follows second in the ranking with $16 billion in subsidies in just over 8,200 awards. The top 10 is rounded out with Michigan, Washington, New Jersey, Indiana, Kentucky, Texas, Oregon and Missouri. But every single state and the District of Columbia incentivizes companies with taxpayer-funded deals.
What about the question regarding trade. Is the global trade market free and fair?
Did you know that 148 of America’s trading partners have tariffs by other names, such as a value-added tax (VAT) or goods and service tax, on their nation’s imports ranging from 2% to 27%? So while America generally refuses to apply tariffs to imports to meet the terms of trade deals, American products are taxed by our competitors. Is that fair?
It’s unfortunate that Trump threatened to use tariffs against American companies if they move jobs offshore. It could be that his threat will keep jobs here, but if it doesn’t and he carries through, it’ll just be a tax on American consumers.
Did you know that in China, more than $15 trillion in assets is produced by 150,000 state-owned enterprises (SOE) employing more than 30 million Chinese citizens? These SOE’s — or “zombie corporations” — have one boss: the Communist Chinese government. If market share is being lost, forced mergers occur. If overhead increases, wages are manipulated, as is their currency. The Chinese not only ignore intellectual property of competitors, once stolen, their communist companies reproduce at a fraction of the cost and send back to America. Is this free or fair trade?
Within America, our governments at the local, state and federal level have interfered with free markets. That’s the current system.
Within the realm of globalism and corporatism, trade deals have been crafted to operate on a sliding scale of variants that permit some to avoid any types of regulations or standards that match those applied within the U.S. That’s the current system.
Trump has announced to the world that these systems are going to be used to protect American jobs first as reforms occur to boost the economy for Americans, not the citizens of the world. Principled policy always looks good on paper, but in America and internationally, it’s not practiced. Trump promised to “drain the swamp” and to overturn the status quo. If Carrier’s any indication, he’s not off to a great start. Then again, the Americans who kept their jobs and anybody who’s rooting for other Americans to keep theirs won’t mind seeing Trump work the art of the deal.
MORE ANALYSIS FROM THE PATRIOT POST
The Bull in the PC China Shop30 — The 2016 election was all about rejecting leftist oppression. Obama’s Costly Forgiveness31 — Latest GAO report on the student loan forgiveness program.
OPINION IN BRIEF
Ken Blackwell: “In September the Public Interest Legal Foundation (PILF) published a report detailing illegal voting in Virginia, a ‘purple’ state whose electors were eagerly sought by both major presidential aspirants. Some state races there have been incredibly close: The 2013 attorney general race was decided for the Democrats by 165 votes out of 2.2 million cast. Yet PILF discovered that in Virginia, too, some jurisdictions had more registered voters than eligible residents. … It found that in just eight of 133 jurisdictions more than 1,000 foreigners had registered and a fifth of them had voted before being dropped from the rolls. The Obama Justice Department has ignored the problem and even sued the state when Florida sought to clean its voter rolls before the 2012 election. At the same time, the department prosecuted plenty of people for other offenses. One suspects that Obama’s DOJ would have shown greater interest if it believed that illegal votes were being cast for Republican candidates.”
SHORT CUTS
The Gipper: “Government is like a baby. It is an alimentary canal with an appetite at one end and a no sense of responsibility at the other.”
Magnanimity: “Don’t forget — I hit Mitt [Romney] pretty hard also, I mean, before the fact. And so I understand how it all works.” —Donald Trump on why he’s considering Romney for secretary of state
Demo-gogues: “I don’t think that people want a new direction. Our values unify us. And our values are about supporting America’s working families.” —Nancy Pelosi on winning the Democrat leadership post again (Boy did she miss the point of the 2016 election.
Color us skeptical: “I don’t think Hillary has any interest in running again.” —Gov. Terry McAuliffe (The Clintons are incapable of avoiding the spotlight32.)
Journalism: “Some Americans have found a new folk hero in a familiar face: Hillary Clinton, comfortably dressed suburban retiree.” —New York Times
And last… “To my knowledge, no one has ever burned a flag at a trade school. I wonder why that is?” —Mike Rowe
Semper Vigilans Fortis Paratus et Fidelis! Managing Editor Nate Jackson
Join us in daily prayer for our Patriots in uniform — Soldiers, Sailors, Airmen, Marines and Coast Guardsmen — standing in harm’s way in defense of Liberty, and for their families.
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