With more and more state governments going into the red, they are looking to the internet for generating additional revenue streams. NBC has an article on the matter with one paragraph that I think sums up the mentality of government and why it is our best interest to limit it’s size. That paragraph is below (emphasis mine):
Sales taxes or similar levies have always been in place on most online purchases in most states. But they are almost never paid. And with their budgets in crisis, states are more determined than ever to get their share.
This is so typical of government in thinking that your money, your tax dollars are theirs. What they fail to understand is that the lack of sales tax is one of the main reasons why consumers look to the internet for purchases. When the government discourages that, you will see a drop in the activity online and the smaller, independent businesses will be the first to feel the effects.
I would suggest that rather than looking at taxing to close and budgetary gaps in the state governments, they should first look at how they can trim down size and reduce the cost of government. But hey, that is just a little too much common sense for the government.
The economic picture continues to darken, even though the stock market has come off it’s lows experienced earlier this year. There is still little evidence that the stimulus plans have had any real impact. Unemployment continues to rise month after month and threatens to exceed 10% very soon. Our budget deficits have ballooned out of control and the pace that we are adding to our national debt is quickening. So why is the Obama administration continuing to put it’s faith in an economic belief system (Keynesian Economics) that has been proven wrong? Answer: Liberals never believe that what they are doing is wrong, just that they haven’t been able to do enough of it.
Keyens and his followers believe:
Increases in spending, such as an increase in government outlays, increases total spending by a multiple of that increase. A government could stimulate a great deal of new production with a modest outlay if:
- The people who receive this money then spend most on consumption goods and save the rest.
- This extra spending allows businesses to hire more people and pay them, which in turn allows a further increase consumer spending.
I read a great article on the Keynesian multiplier effect and how in today’s environment, that multiplier is less than one meaning that the GDP actually shrinks for every dollar that the government spends. From the Wall Street Journal:
“The existing empirical evidence on the response of real gross domestic product to added government spending and tax changes is thin. In ongoing research, we use long-term U.S. macroeconomic data to contribute to the evidence. The results mostly favor tax rate reductions over increases in government spending as a means to increase GDP.”…Read the rest of the article.
This shift to spending more and more money by an inefficient and irresponsible entity (the federal government) will only lead to higher and higher deficits. According to the Heritage Foundation, we will be spending more on welfare in the next year than we spent on the Iraq war under Bush.
We need to get back to our founding principals which is that individuals know how to redistribute wealth more responsibly than the federal government. Cut the tax rates, eliminate the corporate tax, and reign in spending and we will see a period of growth that is unrivaled in modern history.
Just came across this at Yahoo! President Obama now believes that the reason the United States is falling behind in education is that our children don’t spend enough time in school. From the Associated Press:
WASHINGTON – Students beware: The summer vacation you just enjoyed could be sharply curtailed if President Barack Obama gets his way.
Obama says American kids spend too little time in school, putting them at a disadvantage with other students around the globe.
“Now, I know longer school days and school years are not wildly popular ideas,” the president said earlier this year. “Not with Malia and Sasha, not in my family, and probably not in yours. But the challenges of a new century demand more time in the classroom.”
The president, who has a sixth-grader and a third-grader, wants schools to add time to classes, to stay open late and to let kids in on weekends so they have a safe place to go. …Read the rest of the article.
Unfortunately, spending more time in a failed system is not going to fix the problem. The education in the country is going down the tubes for two main reasons in my opinion. First, the teacher’s union has a strangle hold on the education system. It is very difficult to fire a teacher these days even if the performance is poor. The second reason is that teachers today are being taught how to teacher rather than what to teacher. Now this is not true of all teachers out there as there a many, many good ones. However, the two reasons above are a systemic problem and that is what needs to be fixed rather than more time in the classroom.
Unemployment continues to creep higher and higher with jobs fleeing the United States and the answer could be hiding in plain sight.
From the Tax Foundation:
Washington, DC – Canada, the Czech Republic, Korea, and Sweden all cut their corporate tax rates in 2009, distancing the United States even further from the pack with its combined federal and state rate of 39.1 percent—second only to Japan for the highest corporate tax rate among nations in the Organization for Economic Cooperation and Development (OECD). A Tax Foundation analysis of new OECD data finds that 2009 marks the 12th consecutive year in which the U.S. corporate tax rate is higher than the average rate among non-U.S. OECD nations—and roughly 50 percent higher than that of a mid-ranked country such as Sweden. …Read the rest here
Capital goes where it is treated the best. The business environment that the government has created is the second worst in the world. If you were a company and had a choice to be in the United States or somewhere else around the world, where would you go?
If the government truly wanted to see this economy grow at record pace, they would cut corporate tax rates or do away with them entirely. But wait, we can’t have those greedy businesses
stealing earning those pesky profits now can we?
With prisons already bursting at the seams with inmates, the government is set to add to those numbers by the droves. Will these new inhabitants to the prison system be drug dealers, murders or child molesters? Nope, it might be you!
If you make the unforgivable mistake of exercising a little individual freedom and not purchase insurance under Obama’s health plan, then you could be facing jail time.
From the Politico:
Sen. John Ensign (R-Nev.) received a handwritten note Thursday from Joint Committee on Taxation Chief of Staff Tom Barthold confirming the penalty for failing to pay the up to $1,900 fee for not buying health insurance.
Violators could be charged with a misdemeanor and could face up to a year in jail or a $25,000 penalty, Barthold wrote on JCT letterhead. He signed it “Sincerely, Thomas A. Barthold.”
Just one more reason why government and common sense are on the opposite ends of the spectrum. How is that
Hope and change Tyranny working out for you?
Arctic sea ice is making a strong comeback this year and after reaching it’s 2009 minimum, arctic seas has rebounded from previous lows in 2007 and 2008. Current arctic sea ice extent has just recently crossed the 2005 extent for the same day.
This is a significant event as far as the theory of man made global warming goes. We are currently seeing trends reverse themselves all the while we are being bombarded by the AGW alarmists that the world is coming to an end. I particularly like the fake news website that was made to mimic the New York Post (Hat Tip to Watts Up With That) and conjure up many “the sky is falling” type fears. To make matters even worse, there is a renewed effort at both the UN this past week regarding Global Warming and how the world as we know it is about to be radically changed for the worse. If only we could enact a cap and trade system so we can put the brakes on all of the economies of the world, we might just have a chance.
Well I am not buying it and neither should you.
Unfortunately, we are all in big trouble. With the initial stimulus bill clocking in at 1 trillion including interest, the House has just passed an additional $410 Billion spending bill that has 9000 earmarks! On top of that, Obama is planning on dropping another $650 Billion on universal health care. Don’t forget the $700 Billion TARP program with a side of the $275 Billion mortgage bailout by the government. Oh wait, there is more…Tim, the new man at the treasury, has said that we are looking at spending $1.2 Trillion more on the banks, just to get us out of this. Lastly, Obama is going to be seeking an additional $75 Billion for the wars in Iraq and Afghanistan.
I AM FED UP AND TIRED OF THIS BULL CRAP!!!!!!!
The icing on the cake…yep, that is right, Obama wants a cap and trade system that is going to put a burden on every single aspect of life as there is nothing that we can do in this world that does not generate a carbon footprint. Even if you do buy the flimsy and silly argument that man is warming the globe by pumping carbon into the atmosphere (by the way, in the history of the earth, there has been a lot more carbon in the atmosphere and the Earth has been alright) I can’t imagine that you think building fiat currency on the back of carbon is a good thing.
America as we knew it is now going down the drain and the founding fathers are rolling over in their graves as the country moves more and more toward tyranny. Funny how the founders of this great nation knew that the natural tendency of the government would be moving towards tyranny and thus created the single greatest document in the history of civilization to stop it. Have a look at it. It is called the constitution. Last time I looked, I didn’t find government bailouts or universal health care in the constitution. This is a sad day my friend. Stimulated? Far from it.