I thought President Obama would wait at least until his third year in office to raise taxes.Â Well, I was wrong.Â He’s not even waiting until his third month in office to propose hiking those “fees” the government takes from us:
President Obama is putting the finishing touches on an ambitious first budget that seeks to cut the federal deficit in half over the next four years, primarily by raising taxes on business and the wealthy and by slashing spending on the wars in Iraq and Afghanistan, administration officials said.
Raising taxes on business? That’s a great way to encourage them to expand and bring on more employees, you know something that might help during economic hard times.
Well, we currently have “the second-highest combined federal-state corporate tax rate among industrialized countries.” Maybe the president just wants America to be Number One.
The economic forecasts are gloomy despite the hastily passed stimulus package; and we haven’t seen what new regulations are hidden in the stimulus package. I doubt that anyone has read the entire bill even yet.
The best way out of this mess is the German Economic Miracle way: suspend regulations. All regulations. Make it easy to start new companies. Let ingenuity work to allocate capital.
And if taxes on ingenuity aren’t so high, it could do its work better.