kiwiman127
Comfortably Moderate
The approach that we should be taking is getting government out of the way of the Private Sector and let them do what they do best...invest, hire and grow the economy.
For investment, things have been great for the investor, yet corporations are sitting on trillions of dollars, investing and hiring overseas. Recently, the US dropped to 5th as far as being competitive. The reasons were such as rising government debt and declining public faith in political leaders and corporate ethics. Considering corporate ethics was one of the three reasons for the US dropping down to 5th, is it really a good idea to give them even more rope?
US drops in ranking of most competitive of world economies - Boston.com
Allow the untaxed repatriation of overseas funds in return for that capital being invested either in hiring new employees or buying new equipment.
As noted in my previous statement, Corporate America is already sitting on trillions in capital and have no interest in investing in America. I guess until the US worker accepts Third World Wages, this will be the trend.
Allow the oil industry to drill again.
And they should go back to capped wells that already have rich oil just sitting there.
A moratorium on new regulations for the next two years.
Tort reform to lower the cost of health care.
Tort reform would lower the cost of health care by less than 2%
Take away the ability of the EPA to enforce new standards without getting Congressional approval.
And the best thing about all those ideas? They won't cost a single thin dime, let alone a half a trillion dollars but will create REAL long term employment.
Our infrastructure needs trillions of dollars in repairs, it has been underfunded for decades. With all the needed repairs, it will take decades to catch up, nothing short-term there. A growing trend worldwide is private investment in infrastructure, in other words the privatization of this country's infrastructure. It's a win-win. Less tax dollars and long-term employment.
First of all, corporations are not sitting on capital because they have no interest in investing in America. They are sitting on it because they are "leery" of investing in America under the present circumstances. You have to keep in mind that businesses invest because they think potential profit to be realized is worth the risk in capital. What the Obama Administration has never seemed to grasp is that each time they proposed Cap & Trade legislation there was a room full of business people somewhere who pushed their chairs back from the table and said "Whoa...what's THAT going to do to the bottom line?" Every time the EPA announced stricter regulations on emissions another room full of business people somewhere winced and said "Wow...do we really want to build our new factory in the United States when our energy costs would be so much lower somewhere else?" Every time they pushed Card Check business leaders someplace asked each other "Is this going to mean we get hit with high priced union wages in six months?" Every time the Justice Department sues a company for building a factory in a right to work State instead of a union friendly State businesses ask themselves "Is this Administration so pro-union that we can't get a fair shake?" And when companies and investors see this Administration reorder how creditors in a bankruptcy are in line to get paid in order to benefit big unions they ask themselves "Can we really trust that this Administration is going to follow the rule of law?"
It's uncertainty over things like this that have kept Private Sector money from being invested. I shake my head over the disconnect that the Obama White House has between their actions and the reactions of the business community. There doesn't seem to be anyone within the President's inner circle that understands how businesses function.
NOW all of a sudden businesses are holding on to capital because of the Obama Administration????
Let's go back into history, what has changed so dramatically? First of all, Cap & Trade was not an Obama concept, it was a GOP concept long before Obama became president. It actually goes back to President Reagan when he signed the Montreal Protocol. George HW proposed cap & trade with the 1990 Clean Air Act. GWB included it in his Clear Skies bill.
Did businesses sit on trillions of capital then? No.
Then there's the dreaded unions excuse. In 1983, 20 percent of the workforce was union, now unions only make up 11.9 percent of the workforce. Did American companies sit on trillions of dollars of capital then? No! But now, despite a record low number of union workers, American companies are sitting on their capital? Yeah, that makes sense.
Finally, there's the Corporate Tax Rate, since WWII the rate bounced around but was mostly in the 45-50%, in the late 80-s-early 90% it dipped to 34% and then settled at 35% in 1993. But the loopholes exploded! According to a GOA report, most corporations don't pay taxes, thanks to all the loopholes. And as far as investors go, they have the lowest Capital Gains rate they have enjoyed when the rate dropped from 20% to 15%.
Finally, let's look at wages in Real Dollars versus Nominal Dollars. Since the 1980's, wage earners have seen very little growth in constant 1982 Real Dollars and in fact in most cases their wages have dropped.
In other words, corporations have never had it so good! Yet, they are sitting on trillions of dollars and are sitting in the corner screaming "we want more", while sapping the American economy. They are in a sense, holding the American economy hostage! That's probably why in the World Economic Forum survey of 15,000 business executives stated as one of the reasons the US has dropped to 5th as far as being competitive on the world stage was,,, corporate ethics.
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