Flawed economics (via to boondoggle is human.)

This is what I have been saying in many blog posts. We simply cannot keep doing the same economic things over and over again when they have failed over and over again. Some have said that is the very definition of insanity.

It is not ethical or moral to have corporations and the wealthy shed their tax burdens while leaving the average wage earners holding the bag. Those who control large sums of money in this country benefit like everyone else from educational systems, roads and bridges, and the work of police, firemen and our soldiers. Calling yourselves, “job creators” does not place a halo on your head or relieve you of your duty to your country, your state, your community and your fellow citizens.

We need to have a tax code that allocates the taxes paid in relation to the excess wealth accumulated and severely limits the amount paid on the base money necessary for basic needs, like food, shelter, education and medical needs.

I like this blogger’s thinking and I wish him well.

James Pilant

Flawed economics Supply-side Economics (see http://bit.ly/e8cvkl for definition and description), founded by Milton Friedman and made policy by Reagan, has been tested over the past 30 years.  It is working for the top 1%; not so much for the rest of us.  The dawned (indeed, dawned) realization is that the vast majority of ordinary consumers – the massive lower middle- and middle-class – are seeing their wages stagnate.  We are witnessing the impact of wage-stagn … Read More

via to boondoggle is human.

Obama To Lower Corporate Tax Rate!

From Reuters

Democrats and Republicans should begin a conversation next year about a broad overhaul of the tax code that would involve lowering rates while eliminating tax breaks for favored groups, President Barack Obama said in an interview broadcast on Friday.

The Republicans now have a majority in the House. Shouldn’t this have been something done during the first two years?

Obama said any effort to streamline the multilayered U.S. tax code would be challenging but if successful, it could set the stage for more robust growth.

Okay guys, I’ve been around the block a few times and when ever someone talks about simplifying the tax code, the middle class is about to get nailed hard. By the way, “robust growth” is a code word for lower corporate taxed and business benefits like subsidies.

Tax reform is an idea backed by many in the business community who say the current corporate tax structure puts American firms at a competitive disadvantage.

For “many in the business world,” read every corporate lobbyist is salivating like a hungry German Shepherd in front of filet mignon.

“Typically, the idea is, simplifying the system, hopefully lowering rates, broadening the base — that’s something that I think most economists think would help us propel economic growth,” Obama told National Public Radio in an interview. “But it’s a very complicated conversation.”

Verbiage – means nothing.

“So what I believe is, is that we’ve got to start that conversation next year. I think we can get some broad bipartisan agreement that it needs to be done. But it’s going to require a lot of hard work to actually make it happen,” he said.

For “work” read continuous concessions stretched out over months so that the lack of backbone, resolve and political intelligence of the Obama White House will be fully revealed.

“Change You Can Believe In.” Yes, in the same way I believe in post-apocalyptic waste lands.

Explain this to me. For decades large corporations have been directly evading, off shoring their corporate headquarters, sometimes just not paying taxes, and blackmailing every State, county and city humanly possible to cut their taxes, so we reward them with lower rates?

And here I am again trying to teach business ethics to my students who will observe the real life machinations of our President, which means, I get to say, “Okay, do the right thing, everyone from the President on down will reward the other guys, but you still be good.”

Then I get to go into “good for your soul” argument which is pretty much all I got left at that point.

Writing a business ethics web blog under this Presidency has all the benefits of being a medieval flagellant.

James Pilant