“The time for austerity is not today,” White House Chief of Staff Jacob Lew declared on the February 12 Meet the Press, providing an apt motto for President Barack Obama’s latest budget proposal, which foresees trillions of dollars in deficit spending, phony spending cuts, genuine tax hikes, and a refusal to address budget-busting entitlements. In other words, it’s a typical Washington budget proposal.
“If you make more than $1 million a year, you should not pay less than 30 percent in taxes,” asserted President Obama in his State of the Union speech. For those with predominantly investment income, that would effectively double their capital gains tax rate from the current 15 percent rate, producing a triple negative impact on U.S. economic growth and job creation by reducing the incentive for domestic investment, increasing the incentive to move more jobs and capital overseas, and directly reducing the amount of capital available in the private sector by way of greater transfers of income to the government.
The report from The New York Times on Wednesday about the foreclosure settlement reached between five big banks and 49 states’ attorneys general made it appear that justice was being served. The $26 billion to be paid out to some 2 million homeowners (former and current) “could provide relief” to them under the terms of the settlement. It would also remove a cloud of uncertainty from the banks’ liability and might help in “halting the housing market’s downward slide.”
A new report published by the World Bank has come to a spellbinding conclusion: High government spending and large public sectors substantially diminish economic growth. In fact, a slew of establishment economists and organizations have come to a similar conclusion. Daniel J. Mitchell, senior fellow at the Cato Institute, explained in a recent article that the era of socialism is over, and the field of economics is migrating toward a more laissez-faire ideology, where governmental authority is weakened and economies become more privatized.
Well, he didn’t make Time magazine’s “Person of the Year.” But Warren Buffett did make the cover of the magazine last month. The picture showed him smiling an impish grin. The article inside explained why.
American dependence on government has soared to an all-time high under the Obama administration, spiking 23 percent in just two years, according to a new study by the Heritage Foundation. The conservative research group’s 2012 "Index of Dependence on Government" revealed that 67 million Americans are now banking on some federal program, including programs related to healthcare, housing, welfare, education subsidies, and other government programs that were "traditionally provided to needy people by local organizations and families."
Federal Reserve Chairman Ben Bernanke told lawmakers this week that the government’s borrowing was at “clearly unsustainable” levels, warning that its wild budget deficits increase the possibility of a sudden fiscal crisis which is creeping “ever closer.” The central bank chief also said Washington’s exploding debts would crowd out private-sector investment with damaging consequences for the economy.
Big Brother is set to adopt a new form of surveillance after a bill passed by Congress will require the Federal Aviation Administration (FAA) to open U.S. airspace to drone flights under a new four-year plan. The bill, which passed the House last week and received bipartisan approval in the Senate on Monday, will convert radar to an air traffic control system based on GPS technology, shifting the country to an age where satellites are central to air traffic control and unmanned drones glide freely throughout U.S. airspace.
San Francisco, as even casual observers of the political scene know, is one of the most liberal cities in the country. Many of its citizens fear big business — but not big government — and speak lovingly of locally owned small businesses. Its Mayor, Edwin M. Lee, recently announced a $1.5-million fund to assist small businesses.
In a recent editorial entitled “Regulation without Representation,” Investors Business Daily pointed out that a new federal rule or regulation is published every two hours, 24 hours a day, 365 days a year. But most of them escape the notice of Congress. Congress itself passes fewer than 200 in each session, the rest are promulgated by agencies in the Executive Branch in contravention of explicit instructions in the Constitution.