In The Midst Of Our Recession, Democrats Making America Less Competitive In The World Market
When it comes to global economics, the three most influential policies a country has over its stance in a world market are taxes, trade policies and labor costs. Taxes, in particular, are important when it comes to where businesses choose to do business. Obviously, all other considerations being equal, internationally-mobile companies are going to choose the friendliest tax environments they can find. Lower tax rates mean more business. Higher tax rates mean less business.
That’s a simplification, but generally it holds true.
Also, internally a nation’s taxes impact the strength and productivity of an economy. Economies burdened with higher taxes are less resilient because they carry more government overhead. Vice-versa for lower-tax nations.
Now, given these realities, this observation emailed in by a reader is pretty scary:
I just saw the Germany is working on dropping their top tax rate from 45% to 35% to stimulate their economy.
In the US, president BO is going to let ours go from 35% to 39.6% when the Bush cuts expire.
The reader is correct. German Chancellor Angela Merkel just won re-election and will be forming a coalition government with the nation’s resurgent and free market (by European standards) Free Democrat Party which campaigned on the very tax cuts the reader is referring to above.
So even as Obama and his Democrats dig our nation into ever deeper holes of debt, and put our economy on the path to shouldering even heavier tax burdens, our international competitors are undercutting us with better tax rates.
America is on its way down, I’m afraid, and the liberals seem to be gleefully minding the tiller.
