World peace first, global tax next

Recognizing the obvious — that taxes and regulations imposed by this government push American jobs overseas — House Speaker Nancy Pelosi wishes to tax the world.

U.S. Rep. Peter DeFazio (D-Ore.) has introduced legislation to levy a tax on all stock and related financial transactions, including futures contracts and options.  The levy would start small, as they always do, at one quarter of one percent.   As proposed, the levy would give Congress another $150 billion per year in spending money.

The problem, however, is that in the absence of a “global nation,” business takes flight from overly burdensome taxes and regulation.  Even the Left has come to recognize that.  Her solution, therefore, is to try to head business flight off by extending the tax abroad.  ”I believe that the transaction tax still has a great deal of merit,” said Pelosi, but “the concern that many of us or others have had is that it will send…transactions overseas.”  The remedy, therefore, is a global transactions tax, “something we would do in conjunction with other…nations.”  That tax would have “really minimal impact on the transaction, but a tremendous impact on helping us meet our needs,” she said. 

This, then, is the next round for Big Government politicians: Impose costly laws and regulations throughout the industralized world and then form a tax-and-regulate pact to hold business hostage.

All of these costs, and those to come from actions such as those by the Obama Administration’s Environmental Protection Agency to declare carbon dioxide from cars, power plants and other sources to be a pollutant dangerous to the health of Americans.  What will follow is a costly series of regulations that energy producers, for example, will pass through to consumers.  This Administration and this Congress, therefore, will tax directly and tax indirectly.  Rich or not, you’ll pay.

Frankly, if I owned a business, I’d not hire and take no significant risk until I knew how far this Administration and Congress intend to go to make American business the tax collector for the statists in Washington.

As Barack Obama picks up his Nobel Peace Prize, he’ll have to point out that what he’s achieved for world peace, he’ll soon achieve for the world economy, too.

21 comments Add your comment

david wayne osedach

December 8th, 2009
9:07 am

World peace first? No I’d have to say global economy first. People have to have food on their table before they are concerned about carbon footprint taxes.

Last Straw

December 8th, 2009
9:14 am

It’s a world gone mad when reckless debtors and lenders are bailed out and treated like royalty and savers and responsibly run businesses are taxed even before the investment. For what little wealth we have left these days, this is a wealth tax on the middle class savers and businesses. We have worked so hard to be responsible, save and invest. We will be taxed on our savings before we can even invest it. As bait to lure investors into the trap, some in Congress are proposing an insignificant exemption for our accounts. How long will that exemption last? How long will that “tiny” tax of 0.25% last before it rises to 2.0%? Even with the temporary exemption, the hidden cost increases will cost multiples more than the tax itself. Fund managers will not be exempt when they buy stock for us. The tax will be passed onto us. All of the modern day financial business competition, trading volume and liquidity have made investing so much cheaper the last 15 years. This tax will put a stop to all of that and expenses will immediately rise to literally remove several percent from our annual yield even if markets drop. Yes, we will be taxed even when we lose money. We will be taxed before we even make money. What a novel concept. Broker fees will increase by many times as most brokers will fail as trading activity vanishes. The bid-ask spread will increase by at least 50 times. That and other expenses will reduce compounding. Investors will not realize one half of their retirement. Government studies from other countries show real applications of the transaction tax produces net Negative revenue ($150B my foot), huge job losses, and economic growth reversal. Having easily available knowledge of this can only mean some in Congress propose destruction of the economy, jobs, businesses and the middle class.

samuel

December 8th, 2009
9:20 am

Jim, you forgot to mention that American jobs, particularly manufacturing jobs, have been outsourced overseas since the administration of your hero, Ronald Reagan. And companies did this after the huge tax cut Reagan got passed in his first year in office (1981). Jim, you have a computer, and anytime you need it serviced, chances are you’ll talk to someone in India. George W. Bush cut taxes twice while in office, and it didn’t stop Dell Computers from outsourcing jobs to India. So your typical conservative complaints about taxes make no sense. Try talking about the military again, because that’s your area of expertise.

samuel

December 8th, 2009
9:54 am

Jim, I appreciate the fact that you’re a Vietnam veteran. My grandfather was a World War II veteran and my uncle is, like you, a Vietnam veteran. But, on any subject other than the military, you’re just plain wrong.

Chris Broe

December 8th, 2009
10:22 am

Nice piece, Jim Wooten! Too bad this* isn’t a complete sentence, but I’m not going to nit-pick. This is hard hitting. After the public gets wind of this, I don’t know if Obama has any choice but to resign, effective noon tommorrow.

Your close is very powerful, Jim. You correctly indict Obama for his war-mongering, nation-building scheme in Iraq and lay the blame where it belongs for the fumbling in Afghanistan which allowed the 911 conpirators to escape. Obama never served in a battlefront so his incompetence during the last eight years of war is almost understandable, but he shouldn’t have received the peace prize. Your insight into geo-political back door deals and other corrupt Nobel Prize Committee machinations is eye opening, sir.

A+

Now, you’ve got my attention about global taxes. If the whole world is going, uh, world, then taxes might go world, too.

* All of these costs, and those to come from actions such as those by the Obama Administration’s Environmental Protection Agency to declare carbon dioxide from cars, power plants and other sources to be a pollutant dangerous to the health of Americans.

Ragnar Danneskjöld

December 8th, 2009
10:58 am

Well-argued. Our leftist brothers fail to appreciate that all of their efforts to subvert human freedom come with an economic cost. If they only had the sense to get the government out of the way.

Jake

December 8th, 2009
11:05 am

C Broe – Even you have to admit giving the Nobel to a man who committed more than 50,000 troops to an illegal war in a an illegally invaded formerly sovereign nation is a first. Perhaps in future years they will consider posthumous awards for Hitler and Genghis Khan! If I remember corectly they were big on sending troops into sovereign nations too.

Freedom Line Blog » Morning Links

December 8th, 2009
11:33 am

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Jimbo

December 8th, 2009
1:57 pm

what about drug testing for welfare? A couple dollars will save thousands per year for each rejected. Thousands X Thousands.
obozo and piglosi are idoits.

Jess

December 8th, 2009
5:53 pm

Absolutely nothing this admin. and congress does anymore surprises me. It scares the hell out of me but it doesn’t surprise me.

Jesus luvs Cannabis

December 8th, 2009
11:14 pm

Free the weed, free your mind, super-size your freedoms

Tom Turner

December 9th, 2009
9:38 am

Seems to me a Republican got the Nobel Peace Prize for bombing civilians in Asia and propping up dictators in South America. How conveniently we forget.

Linda

December 9th, 2009
1:22 pm

“In the absence of a global nation…”
Isn’t that the purpose of the Kyoto Treaty?

Joan

December 9th, 2009
1:34 pm

Since we have the second highest corporate tax rate in the world, and since unions cause our labor costs to be unrealistically high, I don’t blame corporations for outsourcing their production. If Pelosi tries to tag a tax on what they are doing outside the United States, be prepared for even more corporations to simply move their corporate headquarters to a friendlier tax environment. There are lots of people in the world who will work for non union wages and be happy to do it.

Producer

December 9th, 2009
1:35 pm

American jobs have been outsourced because American labor, thanks to the unions, is horrendously over priced. Assembly line jobs at $50 an hour? Full salaries for life even after retirement? Sitting on your backside not working and getting full salary? Please. I’d go overseas too. American labor is no longer competitive.

jconservative

December 9th, 2009
3:42 pm

If you will remember, Pat Buchanan ran for the Republican nomination in 1992 against the incumbent George H W Bush primarily on the issue of American manufacturing jobs going overseas.

Trickle-down economics was the idea that if you cut taxes, then those with the tax savings would invest and create/expand businesses and put more Americans to work. But what really happened was that those with tax cuts put the money in their pocket, closed American factories & opened new factories overseas. Bottom line, we cut taxes so American businesses could employ workers in Mexico, Indonesia & Bangladesh.
(I was in textiles & this is the three places many textile jobs went.)

But some good news. We are now seeing foreign companies with large American markets invest in factories in the US, in particular, the southern US with its right to work laws. Hence, KIA, Mercedes, Hyundai & others across the southeast. Somewhere in all this should be a couple of lessons to be learned. But as I have said previously, history teaches that peoples & governments do not learn from history.
Apparently the US of A will not be an exception.

Al Bundy

December 9th, 2009
5:25 pm

“Deficits don’t matter!” At least when republicans are in leadership.

arnold

December 10th, 2009
10:49 am

Do you ever wonder why, since 12/8/09, you’ve only caused 17 comments on your opinions prior to this one? I would like to read some constructive conservative opinions. Yours seem to be a vitriolic waste of time and space.

Peter

December 10th, 2009
1:39 pm

How interesting the Republican’s who started the WARS, are calling for peace……that is a pleasant change !

Redneck Convert (R--and proud of it)

December 10th, 2009
3:43 pm

Well, there ain’t much tax to be made from a bunch of foreigners making 19 cents a hour on jobs that use to be ours. Seems to me there’s only one thing to do. Cut the wages of Americans to 19 cents a hour. That way these bigshots will keep the jobs right here and not ship them overseas. And get their tax cuts besides. Danged unions!

Have a good day everybody.

Hard Right Hook

December 11th, 2009
3:24 pm

Peter

December 10th, 2009
1:39 pm
How interesting the Republican’s who started the WARS, are calling for peace……that is a pleasant change !

Somebody had to fight the dirty SOB’s. Your hero Slick Willie was busy in the Oval Office after Bin Laden was handed to him & he decided to do nothing.

So the limp-wristers left the heavy lifting to someone else……….as usual.